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)
Scott C. Goebel, 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, 2008 |
Item 1. Reports to Stockholders
(Fidelity Investment logo)(registered trademark)
Fidelity® Advisor
Diversified International
Fund - Class A, Class T, Class B
and Class C
Semiannual Report
April 30, 2008
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | Ned Johnson's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
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. |
Proxy Voting Results | <Click Here> | |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com(search for proxy voting results) or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
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 LLC or an affiliated company.
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.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
Continuation of a credit squeeze, flat consumer spending and a potential recession weighed heavily on stocks in the opening months of 2008, though positive results in investment-grade bonds and money markets offered some comfort to investors. Financial markets are always unpredictable, but there are a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 1, 2007 to April 30, 2008).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Semiannual Report
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Beginning
Account Value
November 1, 2007 | Ending
Account Value
April 30, 2008 | Expenses Paid
During Period*
November 1, 2007
to April 30, 2008 |
Class A | | | |
Actual | $ 1,000.00 | $ 900.80 | $ 5.86 |
HypotheticalA | $ 1,000.00 | $ 1,018.70 | $ 6.22 |
Class T | | | |
Actual | $ 1,000.00 | $ 900.10 | $ 6.94 |
HypotheticalA | $ 1,000.00 | $ 1,017.55 | $ 7.37 |
Class B | | | |
Actual | $ 1,000.00 | $ 896.80 | $ 9.76 |
HypotheticalA | $ 1,000.00 | $ 1,014.57 | $ 10.37 |
Class C | | | |
Actual | $ 1,000.00 | $ 897.80 | $ 9.39 |
HypotheticalA | $ 1,000.00 | $ 1,014.97 | $ 9.97 |
Institutional Class | | | |
Actual | $ 1,000.00 | $ 901.80 | $ 4.59 |
HypotheticalA | $ 1,000.00 | $ 1,020.04 | $ 4.87 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
| Annualized
Expense Ratio |
Class A | 1.24% |
Class T | 1.47% |
Class B | 2.07% |
Class C | 1.99% |
Institutional Class | .97% |
Semiannual Report
Investment Changes (Unaudited)
Top Five Stocks as of April 30, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
E.ON AG (Germany, Electric Utilities) | 2.5 | 1.7 |
Vodafone Group PLC (United Kingdom, Wireless Telecommunication Services) | 2.3 | 3.3 |
Royal Dutch Shell PLC Class B (United Kingdom, Oil, Gas & Consumable Fuels) | 2.2 | 0.0 |
Alstom SA (France, Electrical Equipment) | 2.2 | 1.5 |
Total SA sponsored ADR (France, Oil, Gas & Consumable Fuels) | 2.1 | 1.4 |
| 11.3 | |
Top Five Market Sectors as of April 30, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 26.0 | 24.1 |
Industrials | 13.3 | 14.4 |
Energy | 12.2 | 7.6 |
Information Technology | 8.7 | 12.3 |
Consumer Discretionary | 7.6 | 7.7 |
Top Five Countries as of April 30, 2008 |
(excluding cash equivalents) | % of fund's
net assets | % of fund's net assets
6 months ago |
Japan | 26.8 | 26.0 |
France | 14.0 | 10.9 |
Germany | 11.5 | 15.0 |
United Kingdom | 9.7 | 9.0 |
Switzerland | 8.7 | 8.7 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) |
As of April 30, 2008 | As of October 31, 2007 |
 | Stocks 98.8% | | | Stocks and
Equity Futures 99.7% | |
 | Short-Term
Investments and
Net Other Assets 1.2% | | | Short-Term
Investments and
Net Other Assets 0.3% | |
Semiannual Report
Investments April 30, 2008 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.8% |
| Shares | | Value (000s) |
Australia - 4.0% |
Alumina Ltd. | 1,167,201 | | $ 6,309 |
Aristocrat Leisure Ltd. | 412,828 | | 2,924 |
Babcock & Brown Ltd. (d) | 2,843,626 | | 39,429 |
BHP Billiton Ltd. | 879,921 | | 35,462 |
BHP Billiton Ltd. sponsored ADR (d) | 2,425,900 | | 195,673 |
CSL Ltd. | 4,382,787 | | 164,494 |
Rio Tinto Ltd. | 345,711 | | 44,375 |
Telstra Corp. Ltd. | 3,408,510 | | 14,661 |
TOTAL AUSTRALIA | | 503,327 |
Austria - 0.3% |
voestalpine AG | 518,500 | | 39,864 |
Belgium - 0.2% |
Fortis (d) | 798,500 | | 21,814 |
Bermuda - 0.5% |
Hiscox Ltd. | 3,778,100 | | 19,211 |
Pacific Basin Shipping Ltd. | 16,023,000 | | 29,319 |
TPV Technology Ltd. | 15,168,000 | | 10,549 |
TOTAL BERMUDA | | 59,079 |
Brazil - 1.1% |
Banco do Brasil SA | 2,102,900 | | 36,436 |
Bolsa de Mercadorias & Futuros - BM&F SA | 3,712,000 | | 37,741 |
Bovespa Holding SA | 2,996,000 | | 45,511 |
Medial Saude SA (a) | 1,952,000 | | 19,377 |
TOTAL BRAZIL | | 139,065 |
Canada - 1.9% |
Canadian Natural Resources Ltd. | 207,700 | | 17,643 |
EnCana Corp. | 1,192,848 | | 96,236 |
Open Text Corp. (a)(d) | 1,234,400 | | 45,584 |
OPTI Canada, Inc. (a) | 2,288,700 | | 48,451 |
OZ Optics Ltd. unit (f) | 5,400 | | 65 |
Talisman Energy, Inc. | 1,570,300 | | 31,762 |
TOTAL CANADA | | 239,741 |
Cayman Islands - 0.0% |
Lee & Man Paper Manufacturing Ltd. | 3,310,000 | | 6,159 |
China - 0.1% |
Zhejiang Expressway Co. Ltd. (H Shares) | 13,346,000 | | 14,026 |
Common Stocks - continued |
| Shares | | Value (000s) |
Finland - 1.5% |
Neste Oil Oyj | 1,027,800 | | $ 31,207 |
Nokia Corp. sponsored ADR | 5,120,000 | | 153,958 |
TOTAL FINLAND | | 185,165 |
France - 13.4% |
Alcatel-Lucent SA sponsored ADR | 13,185,500 | | 87,947 |
Alstom SA | 1,216,700 | | 283,009 |
AXA SA (d) | 1,954,400 | | 72,194 |
AXA SA sponsored ADR | 393,600 | | 14,583 |
BNP Paribas SA | 839,900 | | 90,798 |
Cap Gemini SA (d) | 916,100 | | 55,761 |
Carbone Lorraine | 639,900 | | 35,473 |
Compagnie de St. Gobain | 46,900 | | 3,789 |
Compagnie Generale de Geophysique SA (a) | 203,200 | | 51,338 |
Gaz de France (d) | 2,179,100 | | 144,032 |
Lagardere S.C.A. (Reg.) (d) | 580,982 | | 41,893 |
Neuf Cegetel (d) | 1,217,511 | | 68,196 |
Nexity | 558,600 | | 25,071 |
Orpea (a) | 512,400 | | 27,989 |
Pernod Ricard SA | 269,080 | | 31,084 |
Renault SA | 804,400 | | 82,942 |
Sanofi-Aventis | 447,400 | | 34,478 |
Sanofi-Aventis sponsored ADR | 1,486,400 | | 57,345 |
Sodexho Alliance SA | 731,800 | | 49,124 |
Total SA: | | | |
Series B | 593,200 | | 49,679 |
sponsored ADR | 3,239,600 | | 272,126 |
Unibail-Rodamco | 158,700 | | 41,066 |
Vivendi | 2,051,471 | | 83,491 |
TOTAL FRANCE | | 1,703,408 |
Germany - 11.4% |
Allianz AG: | | | |
(Reg.) | 225,000 | | 45,708 |
sponsored ADR | 6,048,770 | | 122,669 |
Bayer AG (d) | 517,800 | | 44,297 |
Bayerische Motoren Werke AG (BMW) | 888,000 | | 48,866 |
Bilfinger Berger AG | 304,000 | | 26,144 |
Commerzbank AG | 1,416,400 | | 51,520 |
CompuGROUP Holding AG (a) | 217,804 | | 3,332 |
Daimler AG (Reg.) | 170,200 | | 13,231 |
Deutsche Bank AG | 149,300 | | 17,799 |
Common Stocks - continued |
| Shares | | Value (000s) |
Germany - continued |
E.ON AG (d) | 217,900 | | $ 44,463 |
E.ON AG sponsored ADR (d) | 4,279,300 | | 281,578 |
GFK AG | 178,956 | | 8,172 |
Henkel AG & Co. KGaA | 794,919 | | 32,091 |
K&S AG | 175,900 | | 74,029 |
Linde AG | 671,256 | | 98,607 |
Merck KGaA | 164,500 | | 23,423 |
Muenchener Rueckversicherungs-Gesellschaft AG (Reg.) | 1,219,600 | | 236,581 |
Q-Cells AG (a) | 267,400 | | 31,312 |
RWE AG | 1,140,700 | | 131,668 |
Siemens AG (Reg.) | 978,500 | | 114,465 |
TOTAL GERMANY | | 1,449,955 |
Greece - 0.8% |
Hellenic Exchanges Holding SA | 2,142,300 | | 46,821 |
Public Power Corp. of Greece | 1,303,840 | | 55,119 |
TOTAL GREECE | | 101,940 |
Hong Kong - 1.0% |
Hong Kong Exchanges & Clearing Ltd. | 1,935,500 | | 39,539 |
New World Development Co. Ltd. | 12,394,000 | | 31,966 |
Sinotrans Shipping Ltd. | 17,077,000 | | 10,474 |
Sun Hung Kai Properties Ltd. | 1,100,000 | | 19,267 |
Wharf Holdings Ltd. | 4,860,000 | | 24,664 |
TOTAL HONG KONG | | 125,910 |
Indonesia - 0.2% |
PT Bumi Resources Tbk | 35,438,000 | | 25,557 |
Ireland - 0.4% |
Allied Irish Banks PLC | 2,082,600 | | 43,772 |
Anglo Irish Bank Corp. PLC | 180,300 | | 2,533 |
Smurfit Kappa Group PLC | 643,700 | | 8,039 |
TOTAL IRELAND | | 54,344 |
Israel - 0.6% |
Mizrahi Tefahot Bank Ltd. | 9,841,265 | | 82,308 |
Italy - 4.1% |
A2A SpA | 10,086,080 | | 37,238 |
Banco Popolare Scarl | 718,900 | | 14,342 |
ENI SpA | 4,143,900 | | 159,650 |
ENI SpA sponsored ADR (d) | 289,100 | | 22,266 |
Fiat SpA | 2,731,400 | | 61,389 |
Common Stocks - continued |
| Shares | | Value (000s) |
Italy - continued |
Finmeccanica SpA | 935,100 | | $ 32,699 |
Intesa Sanpaolo SpA | 7,283,600 | | 54,669 |
Mediobanca SpA | 2,088,000 | | 43,776 |
Pirelli & C. Real Estate SpA (d) | 400,000 | | 12,154 |
Prysmian SpA | 1,873,700 | | 44,727 |
UniCredit SpA | 5,784,950 | | 44,080 |
TOTAL ITALY | | 526,990 |
Japan - 26.8% |
ABC-Mart, Inc. | 425,400 | | 11,009 |
Aeon Co. Ltd. | 7,510,800 | | 110,091 |
Aeon Mall Co. Ltd. | 1,695,800 | | 53,228 |
Aioi Insurance Co. Ltd. | 4,106,000 | | 25,954 |
Aoyama Trading Co. Ltd. | 1,633,400 | | 37,072 |
Arealink Co. Ltd. (e) | 87,229 | | 7,613 |
Asics Corp. | 3,948,000 | | 40,015 |
Bank of Nagoya Ltd. | 6,954,000 | | 47,730 |
Bridgestone Corp. | 2,209,400 | | 40,657 |
Canon Fintech, Inc. | 110,700 | | 1,581 |
Canon, Inc. | 2,222,800 | | 111,741 |
Chiba Bank Ltd. | 7,158,000 | | 56,565 |
Daiwa Securities Group, Inc. | 26,368,000 | | 261,573 |
DCM Japan Holdings Co. Ltd. (d) | 3,112,820 | | 20,156 |
Fuji Machine Manufacturing Co. Ltd. | 1,022,000 | | 20,346 |
Fukuoka Financial Group, Inc. | 13,260,000 | | 65,906 |
Hokuhoku Financial Group, Inc. | 18,083,000 | | 57,362 |
Ibiden Co. Ltd. | 396,600 | | 17,304 |
Iino Kaiun Kaisha Ltd. | 1,866,400 | | 21,016 |
Inpex Holdings, Inc. | 7,922 | | 88,900 |
Isetan Mitsukoshi Holdings Ltd. (a) | 2,140,400 | | 22,607 |
Juroku Bank Ltd. | 9,501,000 | | 55,941 |
Konica Minolta Holdings, Inc. | 2,927,000 | | 44,102 |
Kubota Corp. | 3,716,000 | | 26,031 |
Marubeni Corp. | 15,032,000 | | 119,624 |
Marui Group Co. Ltd. | 4,410,200 | | 43,767 |
Matsui Securities Co. Ltd. (d) | 2,899,700 | | 20,385 |
Millea Holdings, Inc. | 1,029,100 | | 43,377 |
Misumi Group, Inc. | 1,530,700 | | 29,777 |
Mitsubishi Corp. | 3,742,400 | | 120,455 |
Mitsubishi UFJ Financial Group, Inc. | 6,889,100 | | 75,900 |
Mitsui & Co. Ltd. | 637,000 | | 14,958 |
Mitsui Fudosan Co. Ltd. | 904,000 | | 22,841 |
Common Stocks - continued |
| Shares | | Value (000s) |
Japan - continued |
Mitsui Sumitomo Insurance Group Holdings, Inc. (a) | 786,000 | | $ 31,445 |
Monex Beans Holdings, Inc. (d) | 42,673 | | 24,644 |
Mori Seiki Co. Ltd. | 814,000 | | 15,031 |
Murata Manufacturing Co. Ltd. | 1,990,100 | | 105,646 |
Namco Bandai Holdings, Inc. | 1,242,400 | | 15,587 |
Nidec Corp. | 1,338,100 | | 101,084 |
Nikon Corp. | 1,404,000 | | 40,563 |
Nippon Electric Glass Co. Ltd. | 5,590,200 | | 86,941 |
Nomura Holdings, Inc. | 7,991,000 | | 139,517 |
Nomura Holdings, Inc. sponsored ADR | 4,015,900 | | 69,917 |
NSK Ltd. | 6,117,000 | | 50,971 |
NTT Urban Development Co. | 5,389 | | 8,360 |
Okamura Corp. | 4,931,000 | | 37,363 |
Okinawa Cellular Telephone Co. | 3,634 | | 6,310 |
OMC Card, Inc. (d) | 8,470,400 | | 29,459 |
ORIX Corp. | 439,560 | | 79,508 |
SBI E*TRADE Securities Co. Ltd. (d) | 79,080 | | 73,567 |
Seven & I Holdings Co. Ltd. | 943,500 | | 28,241 |
SFCG Co. Ltd. (d) | 140,480 | | 14,992 |
Shinko Electric Co. Ltd. (d)(e) | 12,901,000 | | 45,134 |
SMC Corp. | 217,800 | | 25,452 |
Sompo Japan Insurance, Inc. | 2,876,000 | | 32,039 |
Sony Corp. | 664,000 | | 30,609 |
Sony Corp. sponsored ADR | 356,300 | | 16,315 |
Sumitomo Corp. | 2,692,400 | | 36,243 |
Sumitomo Electric Industries Ltd. | 1,276,500 | | 16,472 |
Sumitomo Mitsui Financial Group, Inc. | 12,394 | | 106,640 |
Sumitomo Osaka Cement Co. Ltd. | 17,933,000 | | 39,288 |
Sumitomo Trust & Banking Co. Ltd. | 3,056,000 | | 27,472 |
Tokai Carbon Co. Ltd. | 9,268,000 | | 97,087 |
Tokuyama Corp. | 5,292,000 | | 48,036 |
Tokyo Tomin Bank Ltd. | 252,800 | | 5,391 |
Toyota Motor Corp. | 2,259,800 | | 115,147 |
Yamada Denki Co. Ltd. | 300,450 | | 25,791 |
Yamaguchi Financial Group, Inc. | 3,169,000 | | 40,128 |
TOTAL JAPAN | | 3,401,974 |
Malaysia - 0.4% |
Gamuda Bhd | 52,592,000 | | 51,943 |
Netherlands - 3.9% |
Akzo Nobel NV (d) | 403,300 | | 34,306 |
ASML Holding NV (NY Shares) | 897,000 | | 25,439 |
Common Stocks - continued |
| Shares | | Value (000s) |
Netherlands - continued |
Heineken NV (Bearer) | 291,200 | | $ 16,997 |
ING Groep NV (Certificaten Van Aandelen) (d) | 2,053,200 | | 77,759 |
Koninklijke KPN NV (d) | 5,301,900 | | 97,542 |
Reed Elsevier NV sponsored ADR | 2,467,250 | | 92,769 |
Unilever NV: | | | |
(Certificaten Van Aandelen) | 1,934,619 | | 65,235 |
(NY Shares) | 2,709,900 | | 90,890 |
TOTAL NETHERLANDS | | 500,937 |
Norway - 1.2% |
Hafslund ASA (B Shares) (d) | 527,263 | | 11,654 |
Petroleum Geo-Services ASA | 2,619,400 | | 71,532 |
Renewable Energy Corp. AS (a) | 2,037,700 | | 69,758 |
TOTAL NORWAY | | 152,944 |
Singapore - 0.4% |
City Developments Ltd. | 1,904,000 | | 16,989 |
Singapore Exchange Ltd. | 5,192,000 | | 32,888 |
TOTAL SINGAPORE | | 49,877 |
Spain - 1.7% |
Repsol YPF SA | 166,200 | | 6,713 |
Repsol YPF SA sponsored ADR | 464,900 | | 18,861 |
Telefonica SA sponsored ADR | 1,905,200 | | 164,571 |
Vallehermoso SA | 551,300 | | 19,614 |
TOTAL SPAIN | | 209,759 |
Sweden - 1.3% |
Volvo AB (B Shares) | 1,640,500 | | 25,069 |
Scania AB (B Shares) | 4,704,000 | | 96,826 |
SSAB Svenskt Stal AB (A Shares) | 1,215,600 | | 40,603 |
TOTAL SWEDEN | | 162,498 |
Switzerland - 8.7% |
ABB Ltd. sponsored ADR | 1,898,700 | | 58,233 |
Actelion Ltd. (Reg.) (a) | 587,360 | | 29,753 |
Basilea Pharmaceutica AG (a) | 200,362 | | 29,192 |
Credit Suisse Group sponsored ADR | 921,000 | | 49,135 |
Credit Suisse Group (Reg.) | 916,901 | | 51,047 |
Julius Baer Holding AG | 645,406 | | 47,889 |
Nestle SA: | | | |
(Reg.) | 424,214 | | 203,430 |
sponsored ADR | 1,103,600 | | 132,432 |
Common Stocks - continued |
| Shares | | Value (000s) |
Switzerland - continued |
Novartis AG: | | | |
(Reg.) | 724,480 | | $ 36,509 |
sponsored ADR | 73,600 | | 3,704 |
Roche Holding AG (participation certificate) | 1,257,820 | | 209,718 |
SGS Societe Generale de Surveillance Holding SA (Reg.) | 98,154 | | 138,745 |
Swiss Life Holding | 113,481 | | 33,998 |
UBS AG: | | | |
(NY Shares) | 660,800 | | 22,196 |
(NY Shares) rights 5/9/08 (a) | 660,800 | | 1,110 |
Zurich Financial Services AG (Reg.) | 177,410 | | 54,307 |
TOTAL SWITZERLAND | | 1,101,398 |
Taiwan - 2.2% |
Advanced Semiconductor Engineering, Inc. | 79,815,374 | | 81,998 |
Hon Hai Precision Industry Co. Ltd. (Foxconn) | 6,812,000 | | 39,488 |
MediaTek, Inc. | 143,000 | | 1,855 |
Nan Ya Printed Circuit Board Corp. | 1,088,000 | | 5,735 |
Siliconware Precision Industries Co. Ltd. sponsored ADR | 6,680,541 | | 54,380 |
Taiwan Mobile Co. Ltd. | 4,968,329 | | 9,464 |
Taiwan Semiconductor Manufacturing Co. Ltd. | 13,151,708 | | 28,811 |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 3,084,141 | | 34,666 |
Wistron Corp. | 15,202,618 | | 26,263 |
TOTAL TAIWAN | | 282,660 |
United Kingdom - 9.7% |
AstraZeneca PLC: | | | |
(United Kingdom) | 568,400 | | 23,845 |
sponsored ADR | 526,300 | | 22,094 |
Barratt Developments PLC | 290,800 | | 1,597 |
BHP Billiton PLC | 1,202,100 | | 43,021 |
BP PLC | 8,389,600 | | 101,660 |
BP PLC sponsored ADR | 1,426,300 | | 103,820 |
Dawnay Day Treveria PLC | 12,382,400 | | 12,371 |
GlaxoSmithKline PLC | 2,673,600 | | 59,141 |
GlaxoSmithKline PLC sponsored ADR | 1,728,300 | | 76,235 |
Greene King PLC | 1,574,600 | | 16,154 |
HBOS PLC | 3,667,000 | | 34,304 |
Intertek Group PLC | 647,400 | | 12,524 |
NETeller PLC (a) | 5,995,500 | | 7,510 |
Punch Taverns Ltd. | 290,200 | | 2,992 |
Royal Dutch Shell PLC: | | | |
ADR Class A | 747,900 | | 60,064 |
Common Stocks - continued |
| Shares | | Value (000s) |
United Kingdom - continued |
Royal Dutch Shell PLC: - continued | | | |
Class B | 7,123,200 | | $ 283,825 |
Tesco PLC | 8,456,054 | | 72,127 |
Unilever PLC sponsored ADR | 17,760 | | 597 |
Vodafone Group PLC sponsored ADR | 9,388,100 | | 297,233 |
Wolseley PLC | 564,321 | | 5,694 |
TOTAL UNITED KINGDOM | | 1,236,808 |
TOTAL COMMON STOCKS (Cost $11,229,603) | 12,429,450 |
Preferred Stocks - 1.0% |
| | | |
Convertible Preferred Stocks - 0.0% |
Canada - 0.0% |
MetroPhotonics, Inc. Series 2 (a)(f) | 8,500 | | 0 |
Nonconvertible Preferred Stocks - 1.0% |
France - 0.6% |
L'Air Liquide SA (a) | 454,740 | | 68,661 |
Germany - 0.1% |
Henkel AG & Co. KGaA | 362,700 | | 15,486 |
Italy - 0.3% |
Buzzi Unicem SpA (Risp) | 1,569,595 | | 27,225 |
Fondiaria-Sai SpA (Risp) | 321,300 | | 8,542 |
TOTAL ITALY | | 35,767 |
TOTAL NONCONVERTIBLE PREFERRED STOCKS | | 119,914 |
TOTAL PREFERRED STOCKS (Cost $96,579) | 119,914 |
Money Market Funds - 7.4% |
| Shares | | Value (000s) |
Fidelity Cash Central Fund, 2.51% (b) | 22,309,131 | | $ 22,309 |
Fidelity Securities Lending Cash Central Fund, 2.44% (b)(c) | 921,675,344 | | 921,675 |
TOTAL MONEY MARKET FUNDS (Cost $943,984) | 943,984 |
TOTAL INVESTMENT PORTFOLIO - 106.2% (Cost $12,270,166) | | 13,493,348 |
NET OTHER ASSETS - (6.2)% | | (785,947) |
NET ASSETS - 100% | $ 12,707,401 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Affiliated company |
(f) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $65,000 or 0.0% of net assets. |
Additional information on each holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
MetroPhotonics, Inc. Series 2 | 9/29/00 | $ 85 |
OZ Optics Ltd. unit | 8/18/00 | $ 80 |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned
(Amounts in thousands) |
Fidelity Cash Central Fund | $ 5,956 |
Fidelity Securities Lending Cash Central Fund | 8,929 |
Total | $ 14,885 |
Other Affiliated Issuers |
An affiliated company is a company in which the fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliates
(Amounts in thousands) | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value,
end of
period |
Arealink Co. Ltd. | $ 43,272 | $ - | $ - | $ 213 | $ 7,613 |
Dawnay Day Treveria PLC | 44,102 | 2,859 | 28,661 | 505 | - |
OMC Card, Inc. | 42,243 | 22,822 | 27,402 | - | - |
Shinko Electric Co. Ltd. | - | 40,582 | - | 606 | 45,134 |
Total | $ 129,617 | $ 66,263 | $ 56,063 | $ 1,324 | $ 52,747 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | April 30, 2008 (Unaudited) |
Assets | | |
Investment in securities, at value (including securities loaned of $858,824) - See accompanying schedule: Unaffiliated issuers (cost $11,233,182) | $ 12,496,617 | |
Fidelity Central Funds (cost $943,984) | 943,984 | |
Other affiliated issuers (cost $93,000) | 52,747 | |
Total Investments (cost $12,270,166) | | $ 13,493,348 |
Cash | | 70 |
Receivable for investments sold | | 209,635 |
Receivable for fund shares sold | | 8,102 |
Dividends receivable | | 67,389 |
Distributions receivable from Fidelity Central Funds | | 4,398 |
Prepaid expenses | | 33 |
Other receivables | | 2,299 |
Total assets | | 13,785,274 |
| | |
Liabilities | | |
Payable for investments purchased | $ 81,503 | |
Payable for fund shares redeemed | 61,029 | |
Accrued management fee | 7,456 | |
Distribution fees payable | 3,362 | |
Other affiliated payables | 2,471 | |
Other payables and accrued expenses | 377 | |
Collateral on securities loaned, at value | 921,675 | |
Total liabilities | | 1,077,873 |
| | |
Net Assets | | $ 12,707,401 |
Net Assets consist of: | | |
Paid in capital | | $ 11,637,046 |
Undistributed net investment income | | 104,568 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (256,521) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 1,222,308 |
Net Assets | | $ 12,707,401 |
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, 2008 (Unaudited) |
| | |
Calculation of Maximum Offering Price
Class A: Net Asset Value and redemption price per share ($4,328,945 ÷ 206,648 shares) | | $ 20.95 |
| | |
Maximum offering price per share (100/94.25 of $20.95) | | $ 22.23 |
Class T:
Net Asset Value and redemption price per share ($2,474,881 ÷ 119,458 shares) | | $ 20.72 |
| | |
Maximum offering price per share (100/96.50 of $20.72) | | $ 21.47 |
Class B:
Net Asset Value and offering price per share
($439,520 ÷ 21,983 shares)A | | $ 19.99 |
| | |
Class C:
Net Asset Value and offering price per share ($1,300,120 ÷ 64,892 shares)A | | $ 20.04 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($4,163,935 ÷ 195,365 shares) | | $ 21.31 |
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, 2008 (Unaudited) |
Investment Income | | |
Dividends (including $1,324 earned from other affiliated issuers) | | $ 202,644 |
Interest | | 147 |
Income from Fidelity Central Funds | | 14,885 |
| | 217,676 |
Less foreign taxes withheld | | (22,547) |
Total income | | 195,129 |
| | |
Expenses | | |
Management fee | $ 49,044 | |
Transfer agent fees | 15,152 | |
Distribution fees | 22,257 | |
Accounting and security lending fees | 1,095 | |
Custodian fees and expenses | 1,485 | |
Independent trustees' compensation | 30 | |
Registration fees | 344 | |
Audit | 47 | |
Legal | 30 | |
Interest | 15 | |
Miscellaneous | 840 | |
Total expenses before reductions | 90,339 | |
Expense reductions | (3,161) | 87,178 |
Net investment income (loss) | | 107,951 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (124,502) | |
Other affiliated issuers | (84,341) | |
Foreign currency transactions | 4,171 | |
Futures contracts | (504) | |
Total net realized gain (loss) | | (205,176) |
Change in net unrealized appreciation (depreciation) on: Investment securities | (1,610,082) | |
Assets and liabilities in foreign currencies | (1,133) | |
Futures contracts | (10,753) | |
Total change in net unrealized appreciation (depreciation) | | (1,621,968) |
Net gain (loss) | | (1,827,144) |
Net increase (decrease) in net assets resulting from operations | | $ (1,719,193) |
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, 2008
(Unaudited) | Year ended
October 31,
2007 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 107,951 | $ 187,123 |
Net realized gain (loss) | (205,176) | 2,210,026 |
Change in net unrealized appreciation (depreciation) | (1,621,968) | 806,084 |
Net increase (decrease) in net assets resulting
from operations | (1,719,193) | 3,203,233 |
Distributions to shareholders from net investment income | (134,645) | (133,151) |
Distributions to shareholders from net realized gain | (1,880,739) | (974,839) |
Total distributions | (2,015,384) | (1,107,990) |
Share transactions - net increase (decrease) | (399,591) | 320,019 |
Redemption fees | 267 | 467 |
Total increase (decrease) in net assets | (4,133,901) | 2,415,729 |
| | |
Net Assets | | |
Beginning of period | 16,841,302 | 14,425,573 |
End of period (including undistributed net investment income of $104,568 and undistributed net investment income of $152,430, respectively) | $ 12,707,401 | $ 16,841,302 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
April 30, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 26.62 | $ 23.42 | $ 20.30 | $ 16.97 | $ 14.60 | $ 11.12 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .17 | .31 | .30 | .19 | .08 | .09 |
Net realized and unrealized gain (loss) | (2.58) | 4.69 | 3.91 | 3.27 | 2.41 | 3.45 |
Total from investment operations | (2.41) | 5.00 | 4.21 | 3.46 | 2.49 | 3.54 |
Distributions from net investment income | (.24) | (.23) | (.14) | (.05) | (.12) | (.06) |
Distributions from net realized gain | (3.02) | (1.57) | (.95) | (.08) | - | - |
Total distributions | (3.26) | (1.80) | (1.09) | (.13) | (.12) | (.06) |
Redemption fees added to paid in capital E | - I | - I | - I | - I | - I | - |
Net asset value, end of period | $ 20.95 | $ 26.62 | $ 23.42 | $ 20.30 | $ 16.97 | $ 14.60 |
Total Return B,C,D | (9.92)% | 22.76% | 21.54% | 20.50% | 17.15% | 31.99% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 1.24% A | 1.25% | 1.26% | 1.27% | 1.31% | 1.42% |
Expenses net of fee waivers, if any | 1.24% A | 1.25% | 1.26% | 1.27% | 1.31% | 1.42% |
Expenses net of all reductions | 1.19% A | 1.21% | 1.20% | 1.20% | 1.27% | 1.39% |
Net investment income (loss) | 1.62% A | 1.26% | 1.33% | 1.02% | .51% | .71% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 4,329 | $ 5,774 | $ 4,694 | $ 2,792 | $ 1,294 | $ 241 |
Portfolio turnover rate G | 95% A | 105% | 83% | 59% | 72% | 49% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements 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
Financial Highlights - Class T
| Six months ended
April 30, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 26.30 | $ 23.17 | $ 20.12 | $ 16.82 | $ 14.47 | $ 11.01 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .15 | .25 | .25 | .15 | .03 | .05 |
Net realized and unrealized gain (loss) | (2.55) | 4.63 | 3.89 | 3.23 | 2.39 | 3.43 |
Total from investment operations | (2.40) | 4.88 | 4.14 | 3.38 | 2.42 | 3.48 |
Distributions from net investment income | (.16) | (.18) | (.14) | - | (.07) | (.02) |
Distributions from net realized gain | (3.02) | (1.57) | (.95) | (.08) | - | - |
Total distributions | (3.18) | (1.75) | (1.09) | (.08) | (.07) | (.02) |
Redemption fees added to paid in capital E | - I | - I | - I | - I | - I | - |
Net asset value, end of period | $ 20.72 | $ 26.30 | $ 23.17 | $ 20.12 | $ 16.82 | $ 14.47 |
Total Return B,C,D | (9.99)% | 22.43% | 21.33% | 20.16% | 16.78% | 31.66% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 1.47% A | 1.47% | 1.48% | 1.51% | 1.61% | 1.75% |
Expenses net of fee waivers, if any | 1.47% A | 1.47% | 1.48% | 1.51% | 1.61% | 1.75% |
Expenses net of all reductions | 1.42% A | 1.43% | 1.42% | 1.45% | 1.57% | 1.72% |
Net investment income (loss) | 1.39% A | 1.04% | 1.12% | .77% | .21% | .38% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 2,475 | $ 3,569 | $ 3,609 | $ 2,420 | $ 1,510 | $ 552 |
Portfolio turnover rate G | 95% A | 105% | 83% | 59% | 72% | 49% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements 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
Financial Highlights - Class B
| Six months ended
April 30, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 25.44 | $ 22.46 | $ 19.60 | $ 16.46 | $ 14.19 | $ 10.84 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .08 | .10 | .10 | .02 | (.07) | (.02) |
Net realized and unrealized gain (loss) | (2.48) | 4.50 | 3.79 | 3.16 | 2.35 | 3.37 |
Total from investment operations | (2.40) | 4.60 | 3.89 | 3.18 | 2.28 | 3.35 |
Distributions from net investment income | (.03) | (.05) | (.08) | - | (.01) | - |
Distributions from net realized gain | (3.02) | (1.57) | (.95) | (.04) | - | - |
Total distributions | (3.05) | (1.62) | (1.03) | (.04) | (.01) | - |
Redemption fees added to paid in capital E | - I | - I | - I | - I | - I | - |
Net asset value, end of period | $ 19.99 | $ 25.44 | $ 22.46 | $ 19.60 | $ 16.46 | $ 14.19 |
Total Return B,C,D | (10.32)% | 21.73% | 20.55% | 19.35% | 16.08% | 30.90% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 2.07% A | 2.08% | 2.12% | 2.16% | 2.24% | 2.32% |
Expenses net of fee waivers, if any | 2.07% A | 2.08% | 2.12% | 2.16% | 2.24% | 2.32% |
Expenses net of all reductions | 2.02% A | 2.04% | 2.06% | 2.10% | 2.20% | 2.29% |
Net investment income (loss) | .79% A | .42% | .48% | .12% | (.42)% | (.19)% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 440 | $ 559 | $ 508 | $ 351 | $ 196 | $ 89 |
Portfolio turnover rate G | 95% A | 105% | 83% | 59% | 72% | 49% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements 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
Financial Highlights - Class C
| Six months ended
April 30, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 25.50 | $ 22.53 | $ 19.65 | $ 16.48 | $ 14.22 | $ 10.86 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .09 | .12 | .12 | .04 | (.05) | (.01) |
Net realized and unrealized gain (loss) | (2.47) | 4.50 | 3.79 | 3.17 | 2.35 | 3.37 |
Total from investment operations | (2.38) | 4.62 | 3.91 | 3.21 | 2.30 | 3.36 |
Distributions from net investment income | (.06) | (.08) | (.08) | - | (.04) | - |
Distributions from net realized gain | (3.02) | (1.57) | (.95) | (.04) | - | - |
Total distributions | (3.08) | (1.65) | (1.03) | (.04) | (.04) | - |
Redemption fees added to paid in capital E | - I | - I | - I | - I | - I | - |
Net asset value, end of period | $ 20.04 | $ 25.50 | $ 22.53 | $ 19.65 | $ 16.48 | $ 14.22 |
Total Return B,C,D | (10.22)% | 21.81% | 20.62% | 19.51% | 16.21% | 30.94% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 1.99% A | 2.00% | 2.02% | 2.05% | 2.13% | 2.23% |
Expenses net of fee waivers, if any | 1.99% A | 2.00% | 2.02% | 2.05% | 2.13% | 2.23% |
Expenses net of all reductions | 1.95% A | 1.96% | 1.96% | 1.99% | 2.09% | 2.20% |
Net investment income (loss) | .87% A | .51% | .57% | .23% | (.31)% | (.10)% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 1,300 | $ 1,673 | $ 1,395 | $ 758 | $ 381 | $ 124 |
Portfolio turnover rate G | 95% A | 105% | 83% | 59% | 72% | 49% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements 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
Financial Highlights - Institutional Class
| Six months ended
April 30, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 27.06 | $ 23.78 | $ 20.56 | $ 17.18 | $ 14.74 | $ 11.22 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .20 | .38 | .37 | .25 | .13 | .13 |
Net realized and unrealized gain (loss) | (2.63) | 4.76 | 3.98 | 3.30 | 2.44 | 3.48 |
Total from investment operations | (2.43) | 5.14 | 4.35 | 3.55 | 2.57 | 3.61 |
Distributions from net investment income | (.30) | (.29) | (.18) | (.09) | (.13) | (.09) |
Distributions from net realized gain | (3.02) | (1.57) | (.95) | (.08) | - | - |
Total distributions | (3.32) | (1.86) | (1.13) | (.17) | (.13) | (.09) |
Redemption fees added to paid in capital D | - H | - H | - H | - H | - H | - |
Net asset value, end of period | $ 21.31 | $ 27.06 | $ 23.78 | $ 20.56 | $ 17.18 | $ 14.74 |
Total Return B,C | (9.82)% | 23.07% | 21.96% | 20.81% | 17.54% | 32.41% |
Ratios to Average Net Assets E, G | | | | | |
Expenses before reductions | .97% A | .98% | .97% | .97% | 1.03% | 1.09% |
Expenses net of fee waivers, if any | .97% A | .98% | .97% | .97% | 1.03% | 1.09% |
Expenses net of all reductions | .92% A | .94% | .92% | .91% | .98% | 1.06% |
Net investment income (loss) | 1.89% A | 1.53% | 1.62% | 1.32% | .80% | 1.04% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 4,164 | $ 5,266 | $ 4,220 | $ 2,213 | $ 1,185 | $ 391 |
Portfolio turnover rate F | 95% A | 105% | 83% | 59% | 72% | 49% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements 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
Notes to Financial Statements
For the period ended April 30, 2008 (Unaudited)
(Amounts in thousands except ratios)
1. Organization.
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.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
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. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued and net asset value (NAV) per share is calculated (NAV calculation) as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or do not accurately reflect fair value, valuations may be determined in accordance with procedures adopted by the Board of Trustees. For example, when developments occur between the close of a market and the close of the NYSE that may materially affect the value of some or all of the securities, or when trading in a security is halted, those securities may be fair valued. Factors used in the determination of fair value may include monitoring news to identify significant market or security specific events such as changes in the value of U.S. securities markets, reviewing developments in foreign markets and evaluating the performance of ADRs, futures contracts and exchange-traded funds. Because the Fund's utilization of fair value pricing depends on market activity, the frequency with which fair value pricing is used cannot be predicted and may be utilized to a significant extent. The value of securities used for NAV calculation under fair value pricing may differ from published prices for the same securities.
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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV for processing shareholder transactions includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. 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.
Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. 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 each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not result in any unrecognized tax benefits in the accompanying financial statements. Each of the Fund's federal tax returns for the prior three fiscal years remains subject to examination by the Internal Revenue Service. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to futures transactions, foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), market discount and losses deferred due to wash sales.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 1,901,080 | |
Unrealized depreciation | (809,483) | |
Net unrealized appreciation (depreciation) | $ 1,091,597 | |
Cost for federal income tax purposes | $ 12,401,751 | |
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 30 days are subject to a redemption fee equal to 1.00% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.
New Accounting Pronouncement. In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and results in expanded disclosures about fair value measurements.
4. Operating Policies.
Repurchase Agreements. 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 which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
4. Operating Policies - continued
Futures Contracts. The Fund may use futures contracts to manage its exposure to the stock market and to fluctuations in currency values. Buying futures tends to increase a fund's exposure to the underlying instrument, while selling futures tends to decrease a fund's exposure to the underlying instrument or hedge other fund investments. Upon entering into a futures contract, a fund is required to deposit with a clearing broker, no later than the following business day, an amount ("initial margin") equal to a certain percentage of the face value of the contract. The initial margin may be in the form of cash or securities and is transferred to a segregated account on settlement date. Subsequent payments ("variation margin") are made or received by a fund depending on the daily fluctuations in the value of the futures contract and are accounted for as unrealized gains or losses. Realized gains (losses) are recorded upon the expiration or closing of the futures contract. Losses may arise from changes in the value of the underlying instruments or if the counterparties do not perform under the contract's terms. 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 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 at the end of the Fund's Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $6,609,329 and $8,830,787, respectively.
6. 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 .26% 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 .71% 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
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan - continued
each class' average net assets. 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 and the total amounts paid to and retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC |
Class A | 0% | .25% | $ 5,973 | $ 353 |
Class T | .25% | .25% | 6,973 | 327 |
Class B | .75% | .25% | 2,335 | 1,758 |
Class C | .75% | .25% | 6,976 | 862 |
| | | $ 22,257 | $ 3,300 |
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, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges 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, 1.00% to .50% for certain purchases of Class A shares and ..25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 267 |
Class T | 55 |
Class B* | 459 |
Class C* | 76 |
| $ 857 |
* 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 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each class to FIIOC were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 5,427 | .23 |
Class T | 2,824 | .20 |
Class B | 706 | .30 |
Class C | 1,580 | .23 |
Institutional Class | 4,615 | .21 |
| $ 15,152 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
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 were $1 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $4.2 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, which amounted to $14 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, 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
Semiannual Report
8. Security Lending - continued
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. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $8,929.
9. 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 included payments of certain expenses on behalf of the Fund totaling $3,101 for the period. 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. During the period, these credits reduced the Fund's custody expenses by $3. During the period, credits reduced each class' transfer agent expense as noted in the table below.
| Transfer Agent
expense reduction | |
Class A | $ 25 | |
Class T | 17 | |
Institutional Class | 15 | |
| $ 57 | |
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
In December 2006, the Independent Trustees, with the assistance of independent counsel, completed an investigation regarding gifts, gratuities and business entertainment provided by certain brokers to certain individuals who were employed on FMR's domestic equity trading desk during the period 2002 to 2004. The Independent Trustees and FMR agreed that, despite the absence of proof that the Fidelity mutual funds
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
10. Other - continued
experienced diminished execution quality as a result of the improper receipt of gifts and business entertainment, the conduct at issue was serious and was worthy of redress. Accordingly, the Independent Trustees requested, and FMR agreed to make, a payment of $42 million plus accrued interest, which equaled approximately $7.3 million, to certain Fidelity mutual funds.
In March 2008, the Trustees approved a method for allocating this payment among the funds and, in total, FMR paid the fund $9, which is recorded in the accompanying Statement of Operations.
In a related administrative order dated March 5, 2008, the U.S. Securities and Exchange Commission ("SEC") announced a settlement with FMR and FMR Co., Inc. (an affiliate of FMR) involving the SEC's regulatory rules for investment advisers and the improper receipt of gifts, gratuities and business entertainment. Without admitting or denying the SEC's findings, FMR agreed to pay an $8 million civil penalty to the United States Treasury.
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30,
2008 | Year ended
October 31,
2007 |
From net investment income | | |
Class A | $ 51,457 | $ 46,511 |
Class T | 20,764 | 28,116 |
Class B | 649 | 1,108 |
Class C | 3,823 | 5,232 |
Institutional Class | 57,952 | 52,184 |
Total | $ 134,645 | $ 133,151 |
From net realized gain | | |
Class A | $ 650,214 | $ 316,110 |
Class T | 391,932 | 243,882 |
Class B | 65,308 | 35,515 |
Class C | 195,680 | 97,792 |
Institutional Class | 577,605 | 281,539 |
Total | $ 1,880,739 | $ 974,838 |
Semiannual Report
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended April 30,
2008 | Year ended
October 31,
2007 | Six months ended April 30,
2008 | Year ended
October 31,
2007 |
Class A | | | | |
Shares sold | 22,851 | 64,291 | $ 491,561 | $ 1,554,629 |
Reinvestment of distributions | 26,183 | 13,015 | 589,909 | 292,975 |
Shares redeemed | (59,328) | (60,769) | (1,227,396) | (1,466,102) |
Net increase (decrease) | (10,294) | 16,537 | $ (145,926) | $ 381,502 |
Class T | | | | |
Shares sold | 7,692 | 27,062 | $ 162,900 | $ 641,406 |
Reinvestment of distributions | 17,846 | 11,891 | 398,138 | 265,043 |
Shares redeemed | (41,757) | (59,029) | (879,898) | (1,416,423) |
Net increase (decrease) | (16,219) | (20,076) | $ (318,860) | $ (509,974) |
Class B | | | | |
Shares sold | 1,027 | 3,350 | $ 21,201 | $ 77,002 |
Reinvestment of distributions | 2,657 | 1,452 | 57,329 | 31,456 |
Shares redeemed | (3,677) | (5,448) | (73,455) | (125,817) |
Net increase (decrease) | 7 | (646) | $ 5,075 | $ (17,359) |
Class C | | | | |
Shares sold | 4,923 | 12,688 | $ 103,369 | $ 291,365 |
Reinvestment of distributions | 6,582 | 3,357 | 142,310 | 72,889 |
Shares redeemed | (12,212) | (12,337) | (243,095) | (287,237) |
Net increase (decrease) | (707) | 3,708 | $ 2,584 | $ 77,017 |
Institutional Class | | | | |
Shares sold | 37,425 | 71,325 | $ 786,905 | $ 1,740,183 |
Reinvestment of distributions | 18,926 | 9,822 | 433,411 | 224,239 |
Shares redeemed | (55,637) | (63,957) | (1,162,780) | (1,575,589) |
Net increase (decrease) | 714 | 17,190 | $ 57,536 | $ 388,833 |
Semiannual Report
A special meeting of the fund's shareholders was held on May 14, 2008. The results of votes taken among shareholders on the proposals before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1 |
To elect a Board of Trustees.A |
| # of
Votes | % of
Votes |
James C. Curvey |
Affirmative | 8,514,961,004.35 | 97.348 |
Withheld | 231,994,591.94 | 2.652 |
TOTAL | 8,746,955,596.29 | 100.000 |
Dennis J. Dirks |
Affirmative | 8,525,899,114.46 | 97.473 |
Withheld | 221,056,481.83 | 2.527 |
TOTAL | 8,746,955,596.29 | 100.000 |
Edward C. Johnson 3d |
Affirmative | 8,497,196,105.85 | 97.145 |
Withheld | 249,759,490.44 | 2.855 |
TOTAL | 8,746,955,596.29 | 100.000 |
Alan J. Lacy |
Affirmative | 8,522,858,760.40 | 97.438 |
Withheld | 224,096,835.89 | 2.562 |
TOTAL | 8,746,955,596.29 | 100.000 |
Ned C. Lautenbach |
Affirmative | 8,523,008,335.52 | 97.440 |
Withheld | 223,947,260.77 | 2.560 |
TOTAL | 8,746,955,596.29 | 100.000 |
Joseph Mauriello |
Affirmative | 8,524,890,199.58 | 97.461 |
Withheld | 222,065,396.71 | 2.539 |
TOTAL | 8,746,955,596.29 | 100.000 |
Cornelia M. Small |
Affirmative | 8,525,649,323.51 | 97.470 |
Withheld | 221,306,272.78 | 2.530 |
TOTAL | 8,746,955,596.29 | 100.000 |
William S. Stavropoulos |
Affirmative | 8,514,682,431.03 | 97.345 |
Withheld | 232,273,165.26 | 2.655 |
TOTAL | 8,746,955,596.29 | 100.000 |
David M. Thomas |
Affirmative | 8,526,972,729.02 | 97.485 |
Withheld | 219,982,867.27 | 2.515 |
TOTAL | 8,746,955,596.29 | 100.000 |
Michael E. Wiley |
Affirmative | 8,523,710,850.33 | 97.448 |
Withheld | 223,244,745.96 | 2.552 |
TOTAL | 8,746,955,596.29 | 100.000 |
PROPOSAL 2 |
To amend the Declaration of Trust of Fidelity Advisor Series VIII to reduce the required quorum for future shareholder meetings.A |
| # of
Votes | % of
Votes |
Affirmative | 4,574,398,791.46 | 52.297 |
Against | 2,140,778,913.08 | 24.475 |
Abstain | 230,752,610.67 | 2.638 |
Broker
Non-Votes | 1,801,025,281.08 | 20.590 |
TOTAL | 8,746,955,596.29 | 100.000 |
A Denotes trust-wide proposal and voting results.
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 Research & Analysis Company
Fidelity International
Investment Advisors
Fidelity Investments Japan Limited
Fidelity International Investment Advisors (U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
State Street Bank and Trust Company
Quincy, MA
ADIF-USAN-0608 1.784871.105
(Fidelity Investment logo)(registered trademark)
Fidelity® Advisor
Diversified International
Fund - Institutional Class
Semiannual Report
April 30, 2008
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | Ned Johnson's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
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. |
Proxy Voting Results | <Click Here> | |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting results") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
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 LLC or an affiliated company.
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.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
Continuation of a credit squeeze, flat consumer spending and a potential recession weighed heavily on stocks in the opening months of 2008, though positive results in investment-grade bonds and money markets offered some comfort to investors. Financial markets are always unpredictable, but there are a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 1, 2007 to April 30, 2008).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Semiannual Report
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Beginning
Account Value
November 1, 2007 | Ending
Account Value
April 30, 2008 | Expenses Paid
During Period*
November 1, 2007
to April 30, 2008 |
Class A | | | |
Actual | $ 1,000.00 | $ 900.80 | $ 5.86 |
HypotheticalA | $ 1,000.00 | $ 1,018.70 | $ 6.22 |
Class T | | | |
Actual | $ 1,000.00 | $ 900.10 | $ 6.94 |
HypotheticalA | $ 1,000.00 | $ 1,017.55 | $ 7.37 |
Class B | | | |
Actual | $ 1,000.00 | $ 896.80 | $ 9.76 |
HypotheticalA | $ 1,000.00 | $ 1,014.57 | $ 10.37 |
Class C | | | |
Actual | $ 1,000.00 | $ 897.80 | $ 9.39 |
HypotheticalA | $ 1,000.00 | $ 1,014.97 | $ 9.97 |
Institutional Class | | | |
Actual | $ 1,000.00 | $ 901.80 | $ 4.59 |
HypotheticalA | $ 1,000.00 | $ 1,020.04 | $ 4.87 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
| Annualized
Expense Ratio |
Class A | 1.24% |
Class T | 1.47% |
Class B | 2.07% |
Class C | 1.99% |
Institutional Class | .97% |
Semiannual Report
Investment Changes (Unaudited)
Top Five Stocks as of April 30, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
E.ON AG (Germany, Electric Utilities) | 2.5 | 1.7 |
Vodafone Group PLC (United Kingdom, Wireless Telecommunication Services) | 2.3 | 3.3 |
Royal Dutch Shell PLC Class B (United Kingdom, Oil, Gas & Consumable Fuels) | 2.2 | 0.0 |
Alstom SA (France, Electrical Equipment) | 2.2 | 1.5 |
Total SA sponsored ADR (France, Oil, Gas & Consumable Fuels) | 2.1 | 1.4 |
| 11.3 | |
Top Five Market Sectors as of April 30, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 26.0 | 24.1 |
Industrials | 13.3 | 14.4 |
Energy | 12.2 | 7.6 |
Information Technology | 8.7 | 12.3 |
Consumer Discretionary | 7.6 | 7.7 |
Top Five Countries as of April 30, 2008 |
(excluding cash equivalents) | % of fund's
net assets | % of fund's net assets
6 months ago |
Japan | 26.8 | 26.0 |
France | 14.0 | 10.9 |
Germany | 11.5 | 15.0 |
United Kingdom | 9.7 | 9.0 |
Switzerland | 8.7 | 8.7 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) |
As of April 30, 2008 | As of October 31, 2007 |
| Stocks 98.8% | | | Stocks and
Equity Futures 99.7% | |
| Short-Term
Investments and
Net Other Assets 1.2% | | | Short-Term
Investments and
Net Other Assets 0.3% | |
Semiannual Report
Investments April 30, 2008 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.8% |
| Shares | | Value (000s) |
Australia - 4.0% |
Alumina Ltd. | 1,167,201 | | $ 6,309 |
Aristocrat Leisure Ltd. | 412,828 | | 2,924 |
Babcock & Brown Ltd. (d) | 2,843,626 | | 39,429 |
BHP Billiton Ltd. | 879,921 | | 35,462 |
BHP Billiton Ltd. sponsored ADR (d) | 2,425,900 | | 195,673 |
CSL Ltd. | 4,382,787 | | 164,494 |
Rio Tinto Ltd. | 345,711 | | 44,375 |
Telstra Corp. Ltd. | 3,408,510 | | 14,661 |
TOTAL AUSTRALIA | | 503,327 |
Austria - 0.3% |
voestalpine AG | 518,500 | | 39,864 |
Belgium - 0.2% |
Fortis (d) | 798,500 | | 21,814 |
Bermuda - 0.5% |
Hiscox Ltd. | 3,778,100 | | 19,211 |
Pacific Basin Shipping Ltd. | 16,023,000 | | 29,319 |
TPV Technology Ltd. | 15,168,000 | | 10,549 |
TOTAL BERMUDA | | 59,079 |
Brazil - 1.1% |
Banco do Brasil SA | 2,102,900 | | 36,436 |
Bolsa de Mercadorias & Futuros - BM&F SA | 3,712,000 | | 37,741 |
Bovespa Holding SA | 2,996,000 | | 45,511 |
Medial Saude SA (a) | 1,952,000 | | 19,377 |
TOTAL BRAZIL | | 139,065 |
Canada - 1.9% |
Canadian Natural Resources Ltd. | 207,700 | | 17,643 |
EnCana Corp. | 1,192,848 | | 96,236 |
Open Text Corp. (a)(d) | 1,234,400 | | 45,584 |
OPTI Canada, Inc. (a) | 2,288,700 | | 48,451 |
OZ Optics Ltd. unit (f) | 5,400 | | 65 |
Talisman Energy, Inc. | 1,570,300 | | 31,762 |
TOTAL CANADA | | 239,741 |
Cayman Islands - 0.0% |
Lee & Man Paper Manufacturing Ltd. | 3,310,000 | | 6,159 |
China - 0.1% |
Zhejiang Expressway Co. Ltd. (H Shares) | 13,346,000 | | 14,026 |
Common Stocks - continued |
| Shares | | Value (000s) |
Finland - 1.5% |
Neste Oil Oyj | 1,027,800 | | $ 31,207 |
Nokia Corp. sponsored ADR | 5,120,000 | | 153,958 |
TOTAL FINLAND | | 185,165 |
France - 13.4% |
Alcatel-Lucent SA sponsored ADR | 13,185,500 | | 87,947 |
Alstom SA | 1,216,700 | | 283,009 |
AXA SA (d) | 1,954,400 | | 72,194 |
AXA SA sponsored ADR | 393,600 | | 14,583 |
BNP Paribas SA | 839,900 | | 90,798 |
Cap Gemini SA (d) | 916,100 | | 55,761 |
Carbone Lorraine | 639,900 | | 35,473 |
Compagnie de St. Gobain | 46,900 | | 3,789 |
Compagnie Generale de Geophysique SA (a) | 203,200 | | 51,338 |
Gaz de France (d) | 2,179,100 | | 144,032 |
Lagardere S.C.A. (Reg.) (d) | 580,982 | | 41,893 |
Neuf Cegetel (d) | 1,217,511 | | 68,196 |
Nexity | 558,600 | | 25,071 |
Orpea (a) | 512,400 | | 27,989 |
Pernod Ricard SA | 269,080 | | 31,084 |
Renault SA | 804,400 | | 82,942 |
Sanofi-Aventis | 447,400 | | 34,478 |
Sanofi-Aventis sponsored ADR | 1,486,400 | | 57,345 |
Sodexho Alliance SA | 731,800 | | 49,124 |
Total SA: | | | |
Series B | 593,200 | | 49,679 |
sponsored ADR | 3,239,600 | | 272,126 |
Unibail-Rodamco | 158,700 | | 41,066 |
Vivendi | 2,051,471 | | 83,491 |
TOTAL FRANCE | | 1,703,408 |
Germany - 11.4% |
Allianz AG: | | | |
(Reg.) | 225,000 | | 45,708 |
sponsored ADR | 6,048,770 | | 122,669 |
Bayer AG (d) | 517,800 | | 44,297 |
Bayerische Motoren Werke AG (BMW) | 888,000 | | 48,866 |
Bilfinger Berger AG | 304,000 | | 26,144 |
Commerzbank AG | 1,416,400 | | 51,520 |
CompuGROUP Holding AG (a) | 217,804 | | 3,332 |
Daimler AG (Reg.) | 170,200 | | 13,231 |
Deutsche Bank AG | 149,300 | | 17,799 |
Common Stocks - continued |
| Shares | | Value (000s) |
Germany - continued |
E.ON AG (d) | 217,900 | | $ 44,463 |
E.ON AG sponsored ADR (d) | 4,279,300 | | 281,578 |
GFK AG | 178,956 | | 8,172 |
Henkel AG & Co. KGaA | 794,919 | | 32,091 |
K&S AG | 175,900 | | 74,029 |
Linde AG | 671,256 | | 98,607 |
Merck KGaA | 164,500 | | 23,423 |
Muenchener Rueckversicherungs-Gesellschaft AG (Reg.) | 1,219,600 | | 236,581 |
Q-Cells AG (a) | 267,400 | | 31,312 |
RWE AG | 1,140,700 | | 131,668 |
Siemens AG (Reg.) | 978,500 | | 114,465 |
TOTAL GERMANY | | 1,449,955 |
Greece - 0.8% |
Hellenic Exchanges Holding SA | 2,142,300 | | 46,821 |
Public Power Corp. of Greece | 1,303,840 | | 55,119 |
TOTAL GREECE | | 101,940 |
Hong Kong - 1.0% |
Hong Kong Exchanges & Clearing Ltd. | 1,935,500 | | 39,539 |
New World Development Co. Ltd. | 12,394,000 | | 31,966 |
Sinotrans Shipping Ltd. | 17,077,000 | | 10,474 |
Sun Hung Kai Properties Ltd. | 1,100,000 | | 19,267 |
Wharf Holdings Ltd. | 4,860,000 | | 24,664 |
TOTAL HONG KONG | | 125,910 |
Indonesia - 0.2% |
PT Bumi Resources Tbk | 35,438,000 | | 25,557 |
Ireland - 0.4% |
Allied Irish Banks PLC | 2,082,600 | | 43,772 |
Anglo Irish Bank Corp. PLC | 180,300 | | 2,533 |
Smurfit Kappa Group PLC | 643,700 | | 8,039 |
TOTAL IRELAND | | 54,344 |
Israel - 0.6% |
Mizrahi Tefahot Bank Ltd. | 9,841,265 | | 82,308 |
Italy - 4.1% |
A2A SpA | 10,086,080 | | 37,238 |
Banco Popolare Scarl | 718,900 | | 14,342 |
ENI SpA | 4,143,900 | | 159,650 |
ENI SpA sponsored ADR (d) | 289,100 | | 22,266 |
Fiat SpA | 2,731,400 | | 61,389 |
Common Stocks - continued |
| Shares | | Value (000s) |
Italy - continued |
Finmeccanica SpA | 935,100 | | $ 32,699 |
Intesa Sanpaolo SpA | 7,283,600 | | 54,669 |
Mediobanca SpA | 2,088,000 | | 43,776 |
Pirelli & C. Real Estate SpA (d) | 400,000 | | 12,154 |
Prysmian SpA | 1,873,700 | | 44,727 |
UniCredit SpA | 5,784,950 | | 44,080 |
TOTAL ITALY | | 526,990 |
Japan - 26.8% |
ABC-Mart, Inc. | 425,400 | | 11,009 |
Aeon Co. Ltd. | 7,510,800 | | 110,091 |
Aeon Mall Co. Ltd. | 1,695,800 | | 53,228 |
Aioi Insurance Co. Ltd. | 4,106,000 | | 25,954 |
Aoyama Trading Co. Ltd. | 1,633,400 | | 37,072 |
Arealink Co. Ltd. (e) | 87,229 | | 7,613 |
Asics Corp. | 3,948,000 | | 40,015 |
Bank of Nagoya Ltd. | 6,954,000 | | 47,730 |
Bridgestone Corp. | 2,209,400 | | 40,657 |
Canon Fintech, Inc. | 110,700 | | 1,581 |
Canon, Inc. | 2,222,800 | | 111,741 |
Chiba Bank Ltd. | 7,158,000 | | 56,565 |
Daiwa Securities Group, Inc. | 26,368,000 | | 261,573 |
DCM Japan Holdings Co. Ltd. (d) | 3,112,820 | | 20,156 |
Fuji Machine Manufacturing Co. Ltd. | 1,022,000 | | 20,346 |
Fukuoka Financial Group, Inc. | 13,260,000 | | 65,906 |
Hokuhoku Financial Group, Inc. | 18,083,000 | | 57,362 |
Ibiden Co. Ltd. | 396,600 | | 17,304 |
Iino Kaiun Kaisha Ltd. | 1,866,400 | | 21,016 |
Inpex Holdings, Inc. | 7,922 | | 88,900 |
Isetan Mitsukoshi Holdings Ltd. (a) | 2,140,400 | | 22,607 |
Juroku Bank Ltd. | 9,501,000 | | 55,941 |
Konica Minolta Holdings, Inc. | 2,927,000 | | 44,102 |
Kubota Corp. | 3,716,000 | | 26,031 |
Marubeni Corp. | 15,032,000 | | 119,624 |
Marui Group Co. Ltd. | 4,410,200 | | 43,767 |
Matsui Securities Co. Ltd. (d) | 2,899,700 | | 20,385 |
Millea Holdings, Inc. | 1,029,100 | | 43,377 |
Misumi Group, Inc. | 1,530,700 | | 29,777 |
Mitsubishi Corp. | 3,742,400 | | 120,455 |
Mitsubishi UFJ Financial Group, Inc. | 6,889,100 | | 75,900 |
Mitsui & Co. Ltd. | 637,000 | | 14,958 |
Mitsui Fudosan Co. Ltd. | 904,000 | | 22,841 |
Common Stocks - continued |
| Shares | | Value (000s) |
Japan - continued |
Mitsui Sumitomo Insurance Group Holdings, Inc. (a) | 786,000 | | $ 31,445 |
Monex Beans Holdings, Inc. (d) | 42,673 | | 24,644 |
Mori Seiki Co. Ltd. | 814,000 | | 15,031 |
Murata Manufacturing Co. Ltd. | 1,990,100 | | 105,646 |
Namco Bandai Holdings, Inc. | 1,242,400 | | 15,587 |
Nidec Corp. | 1,338,100 | | 101,084 |
Nikon Corp. | 1,404,000 | | 40,563 |
Nippon Electric Glass Co. Ltd. | 5,590,200 | | 86,941 |
Nomura Holdings, Inc. | 7,991,000 | | 139,517 |
Nomura Holdings, Inc. sponsored ADR | 4,015,900 | | 69,917 |
NSK Ltd. | 6,117,000 | | 50,971 |
NTT Urban Development Co. | 5,389 | | 8,360 |
Okamura Corp. | 4,931,000 | | 37,363 |
Okinawa Cellular Telephone Co. | 3,634 | | 6,310 |
OMC Card, Inc. (d) | 8,470,400 | | 29,459 |
ORIX Corp. | 439,560 | | 79,508 |
SBI E*TRADE Securities Co. Ltd. (d) | 79,080 | | 73,567 |
Seven & I Holdings Co. Ltd. | 943,500 | | 28,241 |
SFCG Co. Ltd. (d) | 140,480 | | 14,992 |
Shinko Electric Co. Ltd. (d)(e) | 12,901,000 | | 45,134 |
SMC Corp. | 217,800 | | 25,452 |
Sompo Japan Insurance, Inc. | 2,876,000 | | 32,039 |
Sony Corp. | 664,000 | | 30,609 |
Sony Corp. sponsored ADR | 356,300 | | 16,315 |
Sumitomo Corp. | 2,692,400 | | 36,243 |
Sumitomo Electric Industries Ltd. | 1,276,500 | | 16,472 |
Sumitomo Mitsui Financial Group, Inc. | 12,394 | | 106,640 |
Sumitomo Osaka Cement Co. Ltd. | 17,933,000 | | 39,288 |
Sumitomo Trust & Banking Co. Ltd. | 3,056,000 | | 27,472 |
Tokai Carbon Co. Ltd. | 9,268,000 | | 97,087 |
Tokuyama Corp. | 5,292,000 | | 48,036 |
Tokyo Tomin Bank Ltd. | 252,800 | | 5,391 |
Toyota Motor Corp. | 2,259,800 | | 115,147 |
Yamada Denki Co. Ltd. | 300,450 | | 25,791 |
Yamaguchi Financial Group, Inc. | 3,169,000 | | 40,128 |
TOTAL JAPAN | | 3,401,974 |
Malaysia - 0.4% |
Gamuda Bhd | 52,592,000 | | 51,943 |
Netherlands - 3.9% |
Akzo Nobel NV (d) | 403,300 | | 34,306 |
ASML Holding NV (NY Shares) | 897,000 | | 25,439 |
Common Stocks - continued |
| Shares | | Value (000s) |
Netherlands - continued |
Heineken NV (Bearer) | 291,200 | | $ 16,997 |
ING Groep NV (Certificaten Van Aandelen) (d) | 2,053,200 | | 77,759 |
Koninklijke KPN NV (d) | 5,301,900 | | 97,542 |
Reed Elsevier NV sponsored ADR | 2,467,250 | | 92,769 |
Unilever NV: | | | |
(Certificaten Van Aandelen) | 1,934,619 | | 65,235 |
(NY Shares) | 2,709,900 | | 90,890 |
TOTAL NETHERLANDS | | 500,937 |
Norway - 1.2% |
Hafslund ASA (B Shares) (d) | 527,263 | | 11,654 |
Petroleum Geo-Services ASA | 2,619,400 | | 71,532 |
Renewable Energy Corp. AS (a) | 2,037,700 | | 69,758 |
TOTAL NORWAY | | 152,944 |
Singapore - 0.4% |
City Developments Ltd. | 1,904,000 | | 16,989 |
Singapore Exchange Ltd. | 5,192,000 | | 32,888 |
TOTAL SINGAPORE | | 49,877 |
Spain - 1.7% |
Repsol YPF SA | 166,200 | | 6,713 |
Repsol YPF SA sponsored ADR | 464,900 | | 18,861 |
Telefonica SA sponsored ADR | 1,905,200 | | 164,571 |
Vallehermoso SA | 551,300 | | 19,614 |
TOTAL SPAIN | | 209,759 |
Sweden - 1.3% |
Volvo AB (B Shares) | 1,640,500 | | 25,069 |
Scania AB (B Shares) | 4,704,000 | | 96,826 |
SSAB Svenskt Stal AB (A Shares) | 1,215,600 | | 40,603 |
TOTAL SWEDEN | | 162,498 |
Switzerland - 8.7% |
ABB Ltd. sponsored ADR | 1,898,700 | | 58,233 |
Actelion Ltd. (Reg.) (a) | 587,360 | | 29,753 |
Basilea Pharmaceutica AG (a) | 200,362 | | 29,192 |
Credit Suisse Group sponsored ADR | 921,000 | | 49,135 |
Credit Suisse Group (Reg.) | 916,901 | | 51,047 |
Julius Baer Holding AG | 645,406 | | 47,889 |
Nestle SA: | | | |
(Reg.) | 424,214 | | 203,430 |
sponsored ADR | 1,103,600 | | 132,432 |
Common Stocks - continued |
| Shares | | Value (000s) |
Switzerland - continued |
Novartis AG: | | | |
(Reg.) | 724,480 | | $ 36,509 |
sponsored ADR | 73,600 | | 3,704 |
Roche Holding AG (participation certificate) | 1,257,820 | | 209,718 |
SGS Societe Generale de Surveillance Holding SA (Reg.) | 98,154 | | 138,745 |
Swiss Life Holding | 113,481 | | 33,998 |
UBS AG: | | | |
(NY Shares) | 660,800 | | 22,196 |
(NY Shares) rights 5/9/08 (a) | 660,800 | | 1,110 |
Zurich Financial Services AG (Reg.) | 177,410 | | 54,307 |
TOTAL SWITZERLAND | | 1,101,398 |
Taiwan - 2.2% |
Advanced Semiconductor Engineering, Inc. | 79,815,374 | | 81,998 |
Hon Hai Precision Industry Co. Ltd. (Foxconn) | 6,812,000 | | 39,488 |
MediaTek, Inc. | 143,000 | | 1,855 |
Nan Ya Printed Circuit Board Corp. | 1,088,000 | | 5,735 |
Siliconware Precision Industries Co. Ltd. sponsored ADR | 6,680,541 | | 54,380 |
Taiwan Mobile Co. Ltd. | 4,968,329 | | 9,464 |
Taiwan Semiconductor Manufacturing Co. Ltd. | 13,151,708 | | 28,811 |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 3,084,141 | | 34,666 |
Wistron Corp. | 15,202,618 | | 26,263 |
TOTAL TAIWAN | | 282,660 |
United Kingdom - 9.7% |
AstraZeneca PLC: | | | |
(United Kingdom) | 568,400 | | 23,845 |
sponsored ADR | 526,300 | | 22,094 |
Barratt Developments PLC | 290,800 | | 1,597 |
BHP Billiton PLC | 1,202,100 | | 43,021 |
BP PLC | 8,389,600 | | 101,660 |
BP PLC sponsored ADR | 1,426,300 | | 103,820 |
Dawnay Day Treveria PLC | 12,382,400 | | 12,371 |
GlaxoSmithKline PLC | 2,673,600 | | 59,141 |
GlaxoSmithKline PLC sponsored ADR | 1,728,300 | | 76,235 |
Greene King PLC | 1,574,600 | | 16,154 |
HBOS PLC | 3,667,000 | | 34,304 |
Intertek Group PLC | 647,400 | | 12,524 |
NETeller PLC (a) | 5,995,500 | | 7,510 |
Punch Taverns Ltd. | 290,200 | | 2,992 |
Royal Dutch Shell PLC: | | | |
ADR Class A | 747,900 | | 60,064 |
Common Stocks - continued |
| Shares | | Value (000s) |
United Kingdom - continued |
Royal Dutch Shell PLC: - continued | | | |
Class B | 7,123,200 | | $ 283,825 |
Tesco PLC | 8,456,054 | | 72,127 |
Unilever PLC sponsored ADR | 17,760 | | 597 |
Vodafone Group PLC sponsored ADR | 9,388,100 | | 297,233 |
Wolseley PLC | 564,321 | | 5,694 |
TOTAL UNITED KINGDOM | | 1,236,808 |
TOTAL COMMON STOCKS (Cost $11,229,603) | 12,429,450 |
Preferred Stocks - 1.0% |
| | | |
Convertible Preferred Stocks - 0.0% |
Canada - 0.0% |
MetroPhotonics, Inc. Series 2 (a)(f) | 8,500 | | 0 |
Nonconvertible Preferred Stocks - 1.0% |
France - 0.6% |
L'Air Liquide SA (a) | 454,740 | | 68,661 |
Germany - 0.1% |
Henkel AG & Co. KGaA | 362,700 | | 15,486 |
Italy - 0.3% |
Buzzi Unicem SpA (Risp) | 1,569,595 | | 27,225 |
Fondiaria-Sai SpA (Risp) | 321,300 | | 8,542 |
TOTAL ITALY | | 35,767 |
TOTAL NONCONVERTIBLE PREFERRED STOCKS | | 119,914 |
TOTAL PREFERRED STOCKS (Cost $96,579) | 119,914 |
Money Market Funds - 7.4% |
| Shares | | Value (000s) |
Fidelity Cash Central Fund, 2.51% (b) | 22,309,131 | | $ 22,309 |
Fidelity Securities Lending Cash Central Fund, 2.44% (b)(c) | 921,675,344 | | 921,675 |
TOTAL MONEY MARKET FUNDS (Cost $943,984) | 943,984 |
TOTAL INVESTMENT PORTFOLIO - 106.2% (Cost $12,270,166) | | 13,493,348 |
NET OTHER ASSETS - (6.2)% | | (785,947) |
NET ASSETS - 100% | $ 12,707,401 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Affiliated company |
(f) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $65,000 or 0.0% of net assets. |
Additional information on each holding is as follows: |
Security | Acquisition Date | Acquisition Cost (000s) |
MetroPhotonics, Inc. Series 2 | 9/29/00 | $ 85 |
OZ Optics Ltd. unit | 8/18/00 | $ 80 |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned
(Amounts in thousands) |
Fidelity Cash Central Fund | $ 5,956 |
Fidelity Securities Lending Cash Central Fund | 8,929 |
Total | $ 14,885 |
Other Affiliated Issuers |
An affiliated company is a company in which the fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows: |
Affiliates
(Amounts in thousands) | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Value,
end of
period |
Arealink Co. Ltd. | $ 43,272 | $ - | $ - | $ 213 | $ 7,613 |
Dawnay Day Treveria PLC | 44,102 | 2,859 | 28,661 | 505 | - |
OMC Card, Inc. | 42,243 | 22,822 | 27,402 | - | - |
Shinko Electric Co. Ltd. | - | 40,582 | - | 606 | 45,134 |
Total | $ 129,617 | $ 66,263 | $ 56,063 | $ 1,324 | $ 52,747 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | April 30, 2008 (Unaudited) |
Assets | | |
Investment in securities, at value (including securities loaned of $858,824) - See accompanying schedule: Unaffiliated issuers (cost $11,233,182) | $ 12,496,617 | |
Fidelity Central Funds (cost $943,984) | 943,984 | |
Other affiliated issuers (cost $93,000) | 52,747 | |
Total Investments (cost $12,270,166) | | $ 13,493,348 |
Cash | | 70 |
Receivable for investments sold | | 209,635 |
Receivable for fund shares sold | | 8,102 |
Dividends receivable | | 67,389 |
Distributions receivable from Fidelity Central Funds | | 4,398 |
Prepaid expenses | | 33 |
Other receivables | | 2,299 |
Total assets | | 13,785,274 |
| | |
Liabilities | | |
Payable for investments purchased | $ 81,503 | |
Payable for fund shares redeemed | 61,029 | |
Accrued management fee | 7,456 | |
Distribution fees payable | 3,362 | |
Other affiliated payables | 2,471 | |
Other payables and accrued expenses | 377 | |
Collateral on securities loaned, at value | 921,675 | |
Total liabilities | | 1,077,873 |
| | |
Net Assets | | $ 12,707,401 |
Net Assets consist of: | | |
Paid in capital | | $ 11,637,046 |
Undistributed net investment income | | 104,568 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (256,521) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 1,222,308 |
Net Assets | | $ 12,707,401 |
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, 2008 (Unaudited) |
| | |
Calculation of Maximum Offering Price
Class A: Net Asset Value and redemption price per share ($4,328,945 ÷ 206,648 shares) | | $ 20.95 |
| | |
Maximum offering price per share (100/94.25 of $20.95) | | $ 22.23 |
Class T:
Net Asset Value and redemption price per share ($2,474,881 ÷ 119,458 shares) | | $ 20.72 |
| | |
Maximum offering price per share (100/96.50 of $20.72) | | $ 21.47 |
Class B:
Net Asset Value and offering price per share
($439,520 ÷ 21,983 shares)A | | $ 19.99 |
| | |
Class C:
Net Asset Value and offering price per share ($1,300,120 ÷ 64,892 shares)A | | $ 20.04 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($4,163,935 ÷ 195,365 shares) | | $ 21.31 |
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, 2008 (Unaudited) |
Investment Income | | |
Dividends (including $1,324 earned from other affiliated issuers) | | $ 202,644 |
Interest | | 147 |
Income from Fidelity Central Funds | | 14,885 |
| | 217,676 |
Less foreign taxes withheld | | (22,547) |
Total income | | 195,129 |
| | |
Expenses | | |
Management fee | $ 49,044 | |
Transfer agent fees | 15,152 | |
Distribution fees | 22,257 | |
Accounting and security lending fees | 1,095 | |
Custodian fees and expenses | 1,485 | |
Independent trustees' compensation | 30 | |
Registration fees | 344 | |
Audit | 47 | |
Legal | 30 | |
Interest | 15 | |
Miscellaneous | 840 | |
Total expenses before reductions | 90,339 | |
Expense reductions | (3,161) | 87,178 |
Net investment income (loss) | | 107,951 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (124,502) | |
Other affiliated issuers | (84,341) | |
Foreign currency transactions | 4,171 | |
Futures contracts | (504) | |
Total net realized gain (loss) | | (205,176) |
Change in net unrealized appreciation (depreciation) on: Investment securities | (1,610,082) | |
Assets and liabilities in foreign currencies | (1,133) | |
Futures contracts | (10,753) | |
Total change in net unrealized appreciation (depreciation) | | (1,621,968) |
Net gain (loss) | | (1,827,144) |
Net increase (decrease) in net assets resulting from operations | | $ (1,719,193) |
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, 2008
(Unaudited) | Year ended
October 31,
2007 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 107,951 | $ 187,123 |
Net realized gain (loss) | (205,176) | 2,210,026 |
Change in net unrealized appreciation (depreciation) | (1,621,968) | 806,084 |
Net increase (decrease) in net assets resulting
from operations | (1,719,193) | 3,203,233 |
Distributions to shareholders from net investment income | (134,645) | (133,151) |
Distributions to shareholders from net realized gain | (1,880,739) | (974,839) |
Total distributions | (2,015,384) | (1,107,990) |
Share transactions - net increase (decrease) | (399,591) | 320,019 |
Redemption fees | 267 | 467 |
Total increase (decrease) in net assets | (4,133,901) | 2,415,729 |
| | |
Net Assets | | |
Beginning of period | 16,841,302 | 14,425,573 |
End of period (including undistributed net investment income of $104,568 and undistributed net investment income of $152,430, respectively) | $ 12,707,401 | $ 16,841,302 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
April 30, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 26.62 | $ 23.42 | $ 20.30 | $ 16.97 | $ 14.60 | $ 11.12 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .17 | .31 | .30 | .19 | .08 | .09 |
Net realized and unrealized gain (loss) | (2.58) | 4.69 | 3.91 | 3.27 | 2.41 | 3.45 |
Total from investment operations | (2.41) | 5.00 | 4.21 | 3.46 | 2.49 | 3.54 |
Distributions from net investment income | (.24) | (.23) | (.14) | (.05) | (.12) | (.06) |
Distributions from net realized gain | (3.02) | (1.57) | (.95) | (.08) | - | - |
Total distributions | (3.26) | (1.80) | (1.09) | (.13) | (.12) | (.06) |
Redemption fees added to paid in capital E | - I | - I | - I | - I | - I | - |
Net asset value, end of period | $ 20.95 | $ 26.62 | $ 23.42 | $ 20.30 | $ 16.97 | $ 14.60 |
Total Return B,C,D | (9.92)% | 22.76% | 21.54% | 20.50% | 17.15% | 31.99% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 1.24% A | 1.25% | 1.26% | 1.27% | 1.31% | 1.42% |
Expenses net of fee waivers, if any | 1.24% A | 1.25% | 1.26% | 1.27% | 1.31% | 1.42% |
Expenses net of all reductions | 1.19% A | 1.21% | 1.20% | 1.20% | 1.27% | 1.39% |
Net investment income (loss) | 1.62% A | 1.26% | 1.33% | 1.02% | .51% | .71% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 4,329 | $ 5,774 | $ 4,694 | $ 2,792 | $ 1,294 | $ 241 |
Portfolio turnover rate G | 95% A | 105% | 83% | 59% | 72% | 49% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements 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
Financial Highlights - Class T
| Six months ended
April 30, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 26.30 | $ 23.17 | $ 20.12 | $ 16.82 | $ 14.47 | $ 11.01 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .15 | .25 | .25 | .15 | .03 | .05 |
Net realized and unrealized gain (loss) | (2.55) | 4.63 | 3.89 | 3.23 | 2.39 | 3.43 |
Total from investment operations | (2.40) | 4.88 | 4.14 | 3.38 | 2.42 | 3.48 |
Distributions from net investment income | (.16) | (.18) | (.14) | - | (.07) | (.02) |
Distributions from net realized gain | (3.02) | (1.57) | (.95) | (.08) | - | - |
Total distributions | (3.18) | (1.75) | (1.09) | (.08) | (.07) | (.02) |
Redemption fees added to paid in capital E | - I | - I | - I | - I | - I | - |
Net asset value, end of period | $ 20.72 | $ 26.30 | $ 23.17 | $ 20.12 | $ 16.82 | $ 14.47 |
Total Return B,C,D | (9.99)% | 22.43% | 21.33% | 20.16% | 16.78% | 31.66% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 1.47% A | 1.47% | 1.48% | 1.51% | 1.61% | 1.75% |
Expenses net of fee waivers, if any | 1.47% A | 1.47% | 1.48% | 1.51% | 1.61% | 1.75% |
Expenses net of all reductions | 1.42% A | 1.43% | 1.42% | 1.45% | 1.57% | 1.72% |
Net investment income (loss) | 1.39% A | 1.04% | 1.12% | .77% | .21% | .38% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 2,475 | $ 3,569 | $ 3,609 | $ 2,420 | $ 1,510 | $ 552 |
Portfolio turnover rate G | 95% A | 105% | 83% | 59% | 72% | 49% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements 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
Financial Highlights - Class B
| Six months ended
April 30, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 25.44 | $ 22.46 | $ 19.60 | $ 16.46 | $ 14.19 | $ 10.84 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .08 | .10 | .10 | .02 | (.07) | (.02) |
Net realized and unrealized gain (loss) | (2.48) | 4.50 | 3.79 | 3.16 | 2.35 | 3.37 |
Total from investment operations | (2.40) | 4.60 | 3.89 | 3.18 | 2.28 | 3.35 |
Distributions from net investment income | (.03) | (.05) | (.08) | - | (.01) | - |
Distributions from net realized gain | (3.02) | (1.57) | (.95) | (.04) | - | - |
Total distributions | (3.05) | (1.62) | (1.03) | (.04) | (.01) | - |
Redemption fees added to paid in capital E | - I | - I | - I | - I | - I | - |
Net asset value, end of period | $ 19.99 | $ 25.44 | $ 22.46 | $ 19.60 | $ 16.46 | $ 14.19 |
Total Return B,C,D | (10.32)% | 21.73% | 20.55% | 19.35% | 16.08% | 30.90% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 2.07% A | 2.08% | 2.12% | 2.16% | 2.24% | 2.32% |
Expenses net of fee waivers, if any | 2.07% A | 2.08% | 2.12% | 2.16% | 2.24% | 2.32% |
Expenses net of all reductions | 2.02% A | 2.04% | 2.06% | 2.10% | 2.20% | 2.29% |
Net investment income (loss) | .79% A | .42% | .48% | .12% | (.42)% | (.19)% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 440 | $ 559 | $ 508 | $ 351 | $ 196 | $ 89 |
Portfolio turnover rate G | 95% A | 105% | 83% | 59% | 72% | 49% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements 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
Financial Highlights - Class C
| Six months ended
April 30, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 25.50 | $ 22.53 | $ 19.65 | $ 16.48 | $ 14.22 | $ 10.86 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .09 | .12 | .12 | .04 | (.05) | (.01) |
Net realized and unrealized gain (loss) | (2.47) | 4.50 | 3.79 | 3.17 | 2.35 | 3.37 |
Total from investment operations | (2.38) | 4.62 | 3.91 | 3.21 | 2.30 | 3.36 |
Distributions from net investment income | (.06) | (.08) | (.08) | - | (.04) | - |
Distributions from net realized gain | (3.02) | (1.57) | (.95) | (.04) | - | - |
Total distributions | (3.08) | (1.65) | (1.03) | (.04) | (.04) | - |
Redemption fees added to paid in capital E | - I | - I | - I | - I | - I | - |
Net asset value, end of period | $ 20.04 | $ 25.50 | $ 22.53 | $ 19.65 | $ 16.48 | $ 14.22 |
Total Return B,C,D | (10.22)% | 21.81% | 20.62% | 19.51% | 16.21% | 30.94% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 1.99% A | 2.00% | 2.02% | 2.05% | 2.13% | 2.23% |
Expenses net of fee waivers, if any | 1.99% A | 2.00% | 2.02% | 2.05% | 2.13% | 2.23% |
Expenses net of all reductions | 1.95% A | 1.96% | 1.96% | 1.99% | 2.09% | 2.20% |
Net investment income (loss) | .87% A | .51% | .57% | .23% | (.31)% | (.10)% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 1,300 | $ 1,673 | $ 1,395 | $ 758 | $ 381 | $ 124 |
Portfolio turnover rate G | 95% A | 105% | 83% | 59% | 72% | 49% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements 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
Financial Highlights - Institutional Class
| Six months ended
April 30, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 27.06 | $ 23.78 | $ 20.56 | $ 17.18 | $ 14.74 | $ 11.22 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .20 | .38 | .37 | .25 | .13 | .13 |
Net realized and unrealized gain (loss) | (2.63) | 4.76 | 3.98 | 3.30 | 2.44 | 3.48 |
Total from investment operations | (2.43) | 5.14 | 4.35 | 3.55 | 2.57 | 3.61 |
Distributions from net investment income | (.30) | (.29) | (.18) | (.09) | (.13) | (.09) |
Distributions from net realized gain | (3.02) | (1.57) | (.95) | (.08) | - | - |
Total distributions | (3.32) | (1.86) | (1.13) | (.17) | (.13) | (.09) |
Redemption fees added to paid in capital D | - H | - H | - H | - H | - H | - |
Net asset value, end of period | $ 21.31 | $ 27.06 | $ 23.78 | $ 20.56 | $ 17.18 | $ 14.74 |
Total Return B,C | (9.82)% | 23.07% | 21.96% | 20.81% | 17.54% | 32.41% |
Ratios to Average Net Assets E, G | | | | | |
Expenses before reductions | .97% A | .98% | .97% | .97% | 1.03% | 1.09% |
Expenses net of fee waivers, if any | .97% A | .98% | .97% | .97% | 1.03% | 1.09% |
Expenses net of all reductions | .92% A | .94% | .92% | .91% | .98% | 1.06% |
Net investment income (loss) | 1.89% A | 1.53% | 1.62% | 1.32% | .80% | 1.04% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 4,164 | $ 5,266 | $ 4,220 | $ 2,213 | $ 1,185 | $ 391 |
Portfolio turnover rate F | 95% A | 105% | 83% | 59% | 72% | 49% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements 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
Notes to Financial Statements
For the period ended April 30, 2008 (Unaudited)
(Amounts in thousands except ratios)
1. Organization.
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.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
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. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued and net asset value (NAV) per share is calculated (NAV calculation) as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or do not accurately reflect fair value, valuations may be determined in accordance with procedures adopted by the Board of Trustees. For example, when developments occur between the close of a market and the close of the NYSE that may materially affect the value of some or all of the securities, or when trading in a security is halted, those securities may be fair valued. Factors used in the determination of fair value may include monitoring news to identify significant market or security specific events such as changes in the value of U.S. securities markets, reviewing developments in foreign markets and evaluating the performance of ADRs, futures contracts and exchange-traded funds. Because the Fund's utilization of fair value pricing depends on market activity, the frequency with which fair value pricing is used cannot be predicted and may be utilized to a significant extent. The value of securities used for NAV calculation under fair value pricing may differ from published prices for the same securities.
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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV for processing shareholder transactions includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. 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.
Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. 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 each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not result in any unrecognized tax benefits in the accompanying financial statements. Each of the Fund's federal tax returns for the prior three fiscal years remains subject to examination by the Internal Revenue Service. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to futures transactions, foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), market discount and losses deferred due to wash sales.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 1,901,080 | |
Unrealized depreciation | (809,483) | |
Net unrealized appreciation (depreciation) | $ 1,091,597 | |
Cost for federal income tax purposes | $ 12,401,751 | |
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 30 days are subject to a redemption fee equal to 1.00% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.
New Accounting Pronouncement. In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and results in expanded disclosures about fair value measurements.
4. Operating Policies.
Repurchase Agreements. 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 which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
4. Operating Policies - continued
Futures Contracts. The Fund may use futures contracts to manage its exposure to the stock market and to fluctuations in currency values. Buying futures tends to increase a fund's exposure to the underlying instrument, while selling futures tends to decrease a fund's exposure to the underlying instrument or hedge other fund investments. Upon entering into a futures contract, a fund is required to deposit with a clearing broker, no later than the following business day, an amount ("initial margin") equal to a certain percentage of the face value of the contract. The initial margin may be in the form of cash or securities and is transferred to a segregated account on settlement date. Subsequent payments ("variation margin") are made or received by a fund depending on the daily fluctuations in the value of the futures contract and are accounted for as unrealized gains or losses. Realized gains (losses) are recorded upon the expiration or closing of the futures contract. Losses may arise from changes in the value of the underlying instruments or if the counterparties do not perform under the contract's terms. 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 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 at the end of the Fund's Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $6,609,329 and $8,830,787, respectively.
6. 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 .26% 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 .71% 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
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan - continued
each class' average net assets. 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 and the total amounts paid to and retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC |
Class A | 0% | .25% | $ 5,973 | $ 353 |
Class T | .25% | .25% | 6,973 | 327 |
Class B | .75% | .25% | 2,335 | 1,758 |
Class C | .75% | .25% | 6,976 | 862 |
| | | $ 22,257 | $ 3,300 |
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, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges 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, 1.00% to .50% for certain purchases of Class A shares and ..25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 267 |
Class T | 55 |
Class B* | 459 |
Class C* | 76 |
| $ 857 |
* 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 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each class to FIIOC were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 5,427 | .23 |
Class T | 2,824 | .20 |
Class B | 706 | .30 |
Class C | 1,580 | .23 |
Institutional Class | 4,615 | .21 |
| $ 15,152 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
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 were $1 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $4.2 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, which amounted to $14 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, 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
Semiannual Report
8. Security Lending - continued
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. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $8,929.
9. 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 included payments of certain expenses on behalf of the Fund totaling $3,101 for the period. 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. During the period, these credits reduced the Fund's custody expenses by $3. During the period, credits reduced each class' transfer agent expense as noted in the table below.
| Transfer Agent
expense reduction | |
Class A | $ 25 | |
Class T | 17 | |
Institutional Class | 15 | |
| $ 57 | |
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
In December 2006, the Independent Trustees, with the assistance of independent counsel, completed an investigation regarding gifts, gratuities and business entertainment provided by certain brokers to certain individuals who were employed on FMR's domestic equity trading desk during the period 2002 to 2004. The Independent Trustees and FMR agreed that, despite the absence of proof that the Fidelity mutual funds
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
10. Other - continued
experienced diminished execution quality as a result of the improper receipt of gifts and business entertainment, the conduct at issue was serious and was worthy of redress. Accordingly, the Independent Trustees requested, and FMR agreed to make, a payment of $42 million plus accrued interest, which equaled approximately $7.3 million, to certain Fidelity mutual funds.
In March 2008, the Trustees approved a method for allocating this payment among the funds and, in total, FMR paid the fund $9, which is recorded in the accompanying Statement of Operations.
In a related administrative order dated March 5, 2008, the U.S. Securities and Exchange Commission ("SEC") announced a settlement with FMR and FMR Co., Inc. (an affiliate of FMR) involving the SEC's regulatory rules for investment advisers and the improper receipt of gifts, gratuities and business entertainment. Without admitting or denying the SEC's findings, FMR agreed to pay an $8 million civil penalty to the United States Treasury.
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30,
2008 | Year ended
October 31,
2007 |
From net investment income | | |
Class A | $ 51,457 | $ 46,511 |
Class T | 20,764 | 28,116 |
Class B | 649 | 1,108 |
Class C | 3,823 | 5,232 |
Institutional Class | 57,952 | 52,184 |
Total | $ 134,645 | $ 133,151 |
From net realized gain | | |
Class A | $ 650,214 | $ 316,110 |
Class T | 391,932 | 243,882 |
Class B | 65,308 | 35,515 |
Class C | 195,680 | 97,792 |
Institutional Class | 577,605 | 281,539 |
Total | $ 1,880,739 | $ 974,838 |
Semiannual Report
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended April 30,
2008 | Year ended
October 31,
2007 | Six months ended April 30,
2008 | Year ended
October 31,
2007 |
Class A | | | | |
Shares sold | 22,851 | 64,291 | $ 491,561 | $ 1,554,629 |
Reinvestment of distributions | 26,183 | 13,015 | 589,909 | 292,975 |
Shares redeemed | (59,328) | (60,769) | (1,227,396) | (1,466,102) |
Net increase (decrease) | (10,294) | 16,537 | $ (145,926) | $ 381,502 |
Class T | | | | |
Shares sold | 7,692 | 27,062 | $ 162,900 | $ 641,406 |
Reinvestment of distributions | 17,846 | 11,891 | 398,138 | 265,043 |
Shares redeemed | (41,757) | (59,029) | (879,898) | (1,416,423) |
Net increase (decrease) | (16,219) | (20,076) | $ (318,860) | $ (509,974) |
Class B | | | | |
Shares sold | 1,027 | 3,350 | $ 21,201 | $ 77,002 |
Reinvestment of distributions | 2,657 | 1,452 | 57,329 | 31,456 |
Shares redeemed | (3,677) | (5,448) | (73,455) | (125,817) |
Net increase (decrease) | 7 | (646) | $ 5,075 | $ (17,359) |
Class C | | | | |
Shares sold | 4,923 | 12,688 | $ 103,369 | $ 291,365 |
Reinvestment of distributions | 6,582 | 3,357 | 142,310 | 72,889 |
Shares redeemed | (12,212) | (12,337) | (243,095) | (287,237) |
Net increase (decrease) | (707) | 3,708 | $ 2,584 | $ 77,017 |
Institutional Class | | | | |
Shares sold | 37,425 | 71,325 | $ 786,905 | $ 1,740,183 |
Reinvestment of distributions | 18,926 | 9,822 | 433,411 | 224,239 |
Shares redeemed | (55,637) | (63,957) | (1,162,780) | (1,575,589) |
Net increase (decrease) | 714 | 17,190 | $ 57,536 | $ 388,833 |
Semiannual Report
A special meeting of the fund's shareholders was held on May 14, 2008. The results of votes taken among shareholders on the proposals before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1 |
To elect a Board of Trustees.A |
| # of
Votes | % of
Votes |
James C. Curvey |
Affirmative | 8,514,961,004.35 | 97.348 |
Withheld | 231,994,591.94 | 2.652 |
TOTAL | 8,746,955,596.29 | 100.000 |
Dennis J. Dirks |
Affirmative | 8,525,899,114.46 | 97.473 |
Withheld | 221,056,481.83 | 2.527 |
TOTAL | 8,746,955,596.29 | 100.000 |
Edward C. Johnson 3d |
Affirmative | 8,497,196,105.85 | 97.145 |
Withheld | 249,759,490.44 | 2.855 |
TOTAL | 8,746,955,596.29 | 100.000 |
Alan J. Lacy |
Affirmative | 8,522,858,760.40 | 97.438 |
Withheld | 224,096,835.89 | 2.562 |
TOTAL | 8,746,955,596.29 | 100.000 |
Ned C. Lautenbach |
Affirmative | 8,523,008,335.52 | 97.440 |
Withheld | 223,947,260.77 | 2.560 |
TOTAL | 8,746,955,596.29 | 100.000 |
Joseph Mauriello |
Affirmative | 8,524,890,199.58 | 97.461 |
Withheld | 222,065,396.71 | 2.539 |
TOTAL | 8,746,955,596.29 | 100.000 |
Cornelia M. Small |
Affirmative | 8,525,649,323.51 | 97.470 |
Withheld | 221,306,272.78 | 2.530 |
TOTAL | 8,746,955,596.29 | 100.000 |
William S. Stavropoulos |
Affirmative | 8,514,682,431.03 | 97.345 |
Withheld | 232,273,165.26 | 2.655 |
TOTAL | 8,746,955,596.29 | 100.000 |
David M. Thomas |
Affirmative | 8,526,972,729.02 | 97.485 |
Withheld | 219,982,867.27 | 2.515 |
TOTAL | 8,746,955,596.29 | 100.000 |
Michael E. Wiley |
Affirmative | 8,523,710,850.33 | 97.448 |
Withheld | 223,244,745.96 | 2.552 |
TOTAL | 8,746,955,596.29 | 100.000 |
PROPOSAL 2 |
To amend the Declaration of Trust of Fidelity Advisor Series VIII to reduce the required quorum for future shareholder meetings.A |
| # of
Votes | % of
Votes |
Affirmative | 4,574,398,791.46 | 52.297 |
Against | 2,140,778,913.08 | 24.475 |
Abstain | 230,752,610.67 | 2.638 |
Broker
Non-Votes | 1,801,025,281.08 | 20.590 |
TOTAL | 8,746,955,596.29 | 100.000 |
A Denotes trust-wide proposal and voting results.
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 Research & Analysis Company
Fidelity International
Investment Advisors
Fidelity Investments Japan Limited
Fidelity International Investment Advisors (U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
State Street Bank and Trust Company
Quincy, MA
ADIFI-USAN-0608 1.784872.105
(Fidelity Investment logo)(registered trademark)
Fidelity® Advisor
Emerging Asia
Fund - Class A, Class T, Class B
and Class C
Semiannual Report
April 30, 2008
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | Ned Johnson's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
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. |
Proxy Voting Results | <Click Here> | |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
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 LLC or an affiliated company.
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.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
Continuation of a credit squeeze, flat consumer spending and a potential recession weighed heavily on stocks in the opening months of 2008, though positive results in investment-grade bonds and money markets offered some comfort to investors. Financial markets are always unpredictable, but there are a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 1, 2007 to April 30, 2008).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Semiannual Report
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Beginning
Account Value
November 1, 2007 | Ending
Account Value
April 30, 2008 | Expenses Paid
During Period*
November 1, 2007 to
April 30, 2008 |
Class A | | | |
Actual | $ 1,000.00 | $ 820.80 | $ 6.75 |
Hypothetical A | $ 1,000.00 | $ 1,017.45 | $ 7.47 |
Class T | | | |
Actual | $ 1,000.00 | $ 819.60 | $ 7.92 |
Hypothetical A | $ 1,000.00 | $ 1,016.16 | $ 8.77 |
Class B | | | |
Actual | $ 1,000.00 | $ 817.80 | $ 10.17 |
Hypothetical A | $ 1,000.00 | $ 1,013.67 | $ 11.27 |
Class C | | | |
Actual | $ 1,000.00 | $ 817.70 | $ 10.08 |
Hypothetical A | $ 1,000.00 | $ 1,013.77 | $ 11.17 |
Institutional Class | | | |
Actual | $ 1,000.00 | $ 822.20 | $ 5.35 |
Hypothetical A | $ 1,000.00 | $ 1,019.00 | $ 5.92 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
| Annualized
Expense Ratio |
Class A | 1.49% |
Class T | 1.75% |
Class B | 2.25% |
Class C | 2.23% |
Institutional Class | 1.18% |
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of April 30, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
China Mobile (Hong Kong) Ltd. | 6.5 | 4.3 |
Samsung Electronics Co. Ltd. | 3.9 | 3.0 |
Yuanta Financial Holding Co. Ltd. | 3.6 | 0.8 |
Reliance Industries Ltd. | 2.9 | 2.6 |
POSCO | 2.6 | 2.9 |
Shinhan Financial Group Co. Ltd. | 2.2 | 1.9 |
China Life Insurance Co. Ltd. (H Shares) | 2.0 | 1.0 |
Taewoong Co. Ltd. | 2.0 | 2.0 |
CLP Holdings Ltd. | 2.0 | 0.0 |
PetroChina Co. Ltd. (H Shares) | 1.8 | 2.5 |
| 29.5 | |
Top Five Market Sectors as of April 30, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 33.3 | 26.3 |
Materials | 12.0 | 12.2 |
Telecommunication Services | 11.9 | 8.2 |
Information Technology | 10.4 | 15.3 |
Energy | 6.9 | 8.0 |
Asset Allocation (% of fund's net assets) |
As of April 30, 2008 | As of October 31, 2007 |
| Stocks 93.8% | | | Stocks 96.4% | |
| Short-Term
Investments and
Net Other Assets 6.2% | | | Short-Term
Investments and
Net Other Assets 3.6% | |
Semiannual Report
Investments April 30, 2008 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 93.8% |
| Shares | | Value |
Australia - 0.9% |
Nufarm Ltd. | 170,000 | | $ 2,854,275 |
Cayman Islands - 3.6% |
Belle International Holdings Ltd. | 1,245,000 | | 1,325,972 |
Hidili Industry International Development Ltd. | 900,000 | | 1,374,284 |
Hutchison China Meditech Ltd. (a) | 3 | | 7 |
Lee & Man Paper Manufacturing Ltd. | 421,200 | | 783,688 |
Mindray Medical International Ltd. sponsored ADR | 50,400 | | 1,713,600 |
New Oriental Education & Technology Group, Inc. sponsored ADR (a) | 48,800 | | 3,662,928 |
New World Department Store China Ltd. | 352,000 | | 384,379 |
Stella International Holdings Ltd. | 1,282,500 | | 1,902,401 |
TCC International Holdings Ltd. (a) | 1,084,000 | | 977,849 |
TOTAL CAYMAN ISLANDS | | 12,125,108 |
China - 13.1% |
Aluminum Corp. of China Ltd. (H Shares) | 1,600,000 | | 2,705,966 |
Anhui Conch Cement Co. Ltd. (H Shares) | 296,000 | | 2,366,283 |
China Construction Bank Corp. (H Shares) | 2,812,000 | | 2,540,241 |
China Life Insurance Co. Ltd. (H Shares) | 1,562,000 | | 6,804,704 |
Focus Media Holding Ltd. ADR (a) | 60,000 | | 2,213,400 |
Industrial & Commercial Bank of China | 3,012,000 | | 2,384,663 |
PetroChina Co. Ltd. (H Shares) | 4,002,000 | | 6,013,417 |
Ping An Insurance (Group) Co. of China, Ltd. (H Shares) | 371,000 | | 3,520,457 |
Sina Corp. (a) | 99,000 | | 4,573,800 |
Tencent Holdings Ltd. | 822,000 | | 5,453,174 |
Yantai Changyu Pioneer Wine Co. (B Shares) | 722,940 | | 5,018,645 |
TOTAL CHINA | | 43,594,750 |
Hong Kong - 15.4% |
Cheung Kong Holdings Ltd. | 199,000 | | 3,099,979 |
China Mobile (Hong Kong) Ltd. | 1,265,500 | | 21,775,990 |
CLP Holdings Ltd. | 830,000 | | 6,581,934 |
CNOOC Ltd. | 1,490,500 | | 2,645,765 |
Fairwood Holdings Ltd. (c) | 721,500 | | 823,974 |
Hang Lung Properties Ltd. | 483,000 | | 1,964,687 |
Hang Seng Bank Ltd. | 96,300 | | 1,928,929 |
Kerry Properties Ltd. | 362,313 | | 2,452,412 |
Sun Hung Kai Properties Ltd. | 128,000 | | 2,241,969 |
Wharf Holdings Ltd. | 450,000 | | 2,283,736 |
Wing Lung Bank Ltd. | 320,000 | | 5,769,169 |
TOTAL HONG KONG | | 51,568,544 |
Common Stocks - continued |
| Shares | | Value |
India - 8.3% |
Axis Bank Ltd. | 120,000 | | $ 2,739,827 |
Bajaj Auto Ltd. (a) | 13,000 | | 216,513 |
Bajaj Finserv Ltd. (a) | 13,000 | | 180,502 |
Bank of Baroda | 49,800 | | 406,685 |
Bharti Airtel Ltd. (a) | 152,768 | | 3,392,432 |
Container Corp. of India Ltd. | 20,000 | | 424,870 |
INFO Edge India Ltd. | 28,892 | | 690,837 |
IVRCL Infrastructures & Projects Ltd. | 85,000 | | 903,059 |
Kotak Mahindra Bank Ltd. | 70,000 | | 1,369,975 |
Max India Ltd. (a) | 111,250 | | 436,337 |
Reliance Industries Ltd. | 150,746 | | 9,743,521 |
Royal Orchid Hotels Ltd. | 132,311 | | 345,415 |
Sesa Goa Ltd. | 14,646 | | 1,526,678 |
Shree Renuka Sugars Ltd. | 600,000 | | 1,877,874 |
State Bank of India | 72,996 | | 3,295,937 |
TOTAL INDIA | | 27,550,462 |
Indonesia - 2.6% |
PT Bank Rakyat Indonesia Tbk | 2,200,000 | | 1,419,584 |
PT Indosat Tbk | 3,304,000 | | 2,167,789 |
PT Perusahaan Gas Negara Tbk Series B | 2,165,000 | | 2,840,958 |
PT Telkomunikasi Indonesia Tbk Series B | 2,500,000 | | 2,399,412 |
TOTAL INDONESIA | | 8,827,743 |
Korea (South) - 18.9% |
Doosan Heavy Industries & Construction Co. Ltd. | 21,295 | | 2,239,346 |
Hana Tour Service, Inc. | 35,508 | | 2,120,040 |
Hanwha Corp. | 24,490 | | 1,154,625 |
Hanwha Securities Co. Ltd. | 148,870 | | 1,676,782 |
Hyundai Mipo Dockyard Co. Ltd. | 8,820 | | 1,947,302 |
Kookmin Bank | 60,170 | | 4,192,260 |
Korea Exchange Bank | 85,710 | | 1,302,844 |
LG Household & Health Care Ltd. | 20,810 | | 4,304,089 |
NHN Corp. (a) | 22,981 | | 5,337,230 |
POSCO | 17,602 | | 8,605,816 |
Samsung Electronics Co. Ltd. | 18,199 | | 12,897,578 |
Samsung Fire & Marine Insurance Co. Ltd. | 6,240 | | 1,362,134 |
Shinhan Financial Group Co. Ltd. | 128,512 | | 7,419,720 |
SK Telecom Co. Ltd. | 8,000 | | 1,618,740 |
Taewoong Co. Ltd. | 64,331 | | 6,771,350 |
TOTAL KOREA (SOUTH) | | 62,949,856 |
Common Stocks - continued |
| Shares | | Value |
Malaysia - 5.1% |
Bumiputra-Commerce Holdings Bhd | 1,061,500 | | $ 3,343,439 |
DiGi.com Bhd | 300,000 | | 2,307,692 |
Parkson Holdings Bhd (a) | 809,900 | | 1,794,650 |
Public Bank Bhd (For. Reg.) | 1,300,000 | | 4,691,358 |
Resorts World Bhd | 1,521,100 | | 1,627,514 |
Sime Darby Bhd | 1,100,000 | | 3,342,830 |
TOTAL MALAYSIA | | 17,107,483 |
Papua New Guinea - 1.9% |
Lihir Gold Ltd. (a) | 1,095,859 | | 3,038,987 |
Oil Search Ltd. | 750,000 | | 3,360,328 |
TOTAL PAPUA NEW GUINEA | | 6,399,315 |
Philippines - 0.3% |
Jollibee Food Corp. | 857,100 | | 893,130 |
Singapore - 0.9% |
Parkway Holdings Ltd. | 136,650 | | 352,684 |
Raffles Medical Group Ltd. | 730,000 | | 694,418 |
Singapore Technologies Engineering Ltd. | 842,000 | | 1,999,292 |
TOTAL SINGAPORE | | 3,046,394 |
Taiwan - 17.7% |
Cathay Financial Holding Co. Ltd. | 1,500,000 | | 4,212,168 |
Cathay Real Estate Development Co. Ltd. | 4,005,000 | | 3,216,101 |
China Steel Corp. | 2,651,000 | | 4,353,395 |
Chinatrust Financial Holding Co. Ltd. (a) | 4,339,319 | | 4,524,949 |
Chunghwa Telecom Co. Ltd. | 1,800,000 | | 4,640,775 |
Far Eastern Textile Ltd. | 2,339,620 | | 3,934,265 |
Farglory Land Developt Co. Ltd. | 634,000 | | 2,040,627 |
First Financial Holding Co. Ltd. | 1,500,000 | | 1,822,810 |
Hung Poo Real Estate Development Co. Ltd. | 1,042,000 | | 1,995,192 |
MediaTek, Inc. | 260,850 | | 3,384,046 |
Sinyi Realty, Inc. | 563,243 | | 2,173,612 |
Taiwan Cement Corp. | 1,794,679 | | 2,917,698 |
Taiwan Fertilizer Co. Ltd. | 1,200,000 | | 5,813,285 |
Taiwan Semiconductor Manufacturing Co. Ltd. | 1,054,140 | | 2,309,258 |
Yuanta Financial Holding Co. Ltd. (a) | 12,533,054 | | 11,937,222 |
TOTAL TAIWAN | | 59,275,403 |
Thailand - 5.1% |
Bangkok Bank Ltd. PCL: | | | |
NVDR | 555,200 | | 2,415,435 |
Common Stocks - continued |
| Shares | | Value |
Thailand - continued |
Bangkok Bank Ltd. PCL: - continued | | | |
(For. Reg.) | 294,800 | | $ 1,301,135 |
Bumrungrad Hospital PCL (For. Reg.) | 708,500 | | 720,338 |
Central Pattana PCL (For. Reg.) | 2,405,400 | | 2,180,178 |
LPN Development PCL | 2,908,000 | | 687,579 |
Minor International PCL (For. Reg.) | 2,549,608 | | 1,286,057 |
PTT Exploration & Production PCL (For. Reg.) | 250,000 | | 1,308,323 |
Robinson Department Store PCL (For. Reg.) | 3,006,700 | | 1,042,677 |
Siam Commercial Bank PCL (For. Reg.) | 1,581,200 | | 4,436,532 |
Total Access Communication PCL unit | 1,140,568 | | 1,663,029 |
TOTAL THAILAND | | 17,041,283 |
United Kingdom - 0.0% |
Genting International PLC (a) | 152,110 | | 68,422 |
TOTAL COMMON STOCKS (Cost $252,041,758) | 313,302,168 |
Money Market Funds - 4.9% |
| | | |
Fidelity Cash Central Fund, 2.51% (b)
(Cost $16,299,025) | 16,299,025 | | 16,299,025 |
TOTAL INVESTMENT PORTFOLIO - 98.7% (Cost $268,340,783) | | 329,601,193 |
NET OTHER ASSETS - 1.3% | | 4,352,106 |
NET ASSETS - 100% | $ 333,953,299 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter 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 end of the period, the value of these securities amounted to $823,974 or 0.2% of net assets. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 297,217 |
Fidelity Securities Lending Cash Central Fund | 232 |
Total | $ 297,449 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| April 30, 2008 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $252,041,758) | $ 313,302,168 | |
Fidelity Central Funds (cost $16,299,025) | 16,299,025 | |
Total Investments (cost $268,340,783) | | $ 329,601,193 |
Foreign currency held at value (cost $670,816) | | 660,462 |
Receivable for investments sold | | 5,819,639 |
Receivable for fund shares sold | | 511,119 |
Dividends receivable | | 596,106 |
Distributions receivable from Fidelity Central Funds | | 41,807 |
Prepaid expenses | | 654 |
Other receivables | | 416,497 |
Total assets | | 337,647,477 |
| | |
Liabilities | | |
Payable for investments purchased | $ 2,640,967 | |
Payable for fund shares redeemed | 554,824 | |
Accrued management fee | 197,144 | |
Distribution fees payable | 142,105 | |
Other affiliated payables | 85,224 | |
Other payables and accrued expenses | 73,914 | |
Total liabilities | | 3,694,178 |
| | |
Net Assets | | $ 333,953,299 |
Net Assets consist of: | | |
Paid in capital | | $ 270,756,505 |
Accumulated net investment loss | | (870,247) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | 2,768,252 |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 61,298,789 |
Net Assets | | $ 333,953,299 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| April 30, 2008 (Unaudited) |
| | |
Calculation of Maximum Offering Price
Class A:
Net Asset Value and redemption price per share ($151,071,991 ÷ 5,417,922 shares) | | $ 27.88 |
| | |
Maximum offering price per share (100/94.25 of $27.88) | | $ 29.58 |
Class T:
Net Asset Value and redemption price per share ($55,852,992 ÷ 2,040,515 shares) | | $ 27.37 |
| | |
Maximum offering price per share (100/96.50 of $27.37) | | $ 28.36 |
Class B:
Net Asset Value and offering price per share ($38,285,100 ÷ 1,452,878 shares)A | | $ 26.35 |
| | |
Class C:
Net Asset Value and offering price per share ($70,255,107 ÷ 2,676,190 shares)A | | $ 26.25 |
| | |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($18,488,109 ÷ 650,228 shares) | | $ 28.43 |
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
Financial Statements - continued
Statement of Operations
Six months ended April 30, 2008 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 2,204,087 |
Interest | | 148 |
Income from Fidelity Central Funds | | 297,449 |
| | 2,501,684 |
Less foreign taxes withheld | | (230,686) |
Total income | | 2,270,998 |
| | |
Expenses | | |
Management fee | $ 1,193,928 | |
Transfer agent fees | 456,881 | |
Distribution fees | 896,981 | |
Accounting and security lending fees | 87,505 | |
Custodian fees and expenses | 199,999 | |
Independent trustees' compensation | 748 | |
Registration fees | 70,796 | |
Audit | 61,759 | |
Legal | 6,298 | |
Miscellaneous | 34,646 | |
Total expenses before reductions | 3,009,541 | |
Expense reductions | (182,764) | 2,826,777 |
Net investment income (loss) | | (555,779) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 3,034,977 | |
Foreign currency transactions | (179,552) | |
Total net realized gain (loss) | | 2,855,425 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (75,696,665) | |
Assets and liabilities in foreign currencies | (8,790) | |
Total change in net unrealized appreciation (depreciation) | | (75,705,455) |
Net gain (loss) | | (72,850,030) |
Net increase (decrease) in net assets resulting from operations | | $ (73,405,809) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended April 30, 2008
(Unaudited) | Year ended
October 31,
2007 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (555,779) | $ 1,260,602 |
Net realized gain (loss) | 2,855,425 | 35,123,899 |
Change in net unrealized appreciation (depreciation) | (75,705,455) | 100,752,376 |
Net increase (decrease) in net assets resulting
from operations | (73,405,809) | 137,136,877 |
Distributions to shareholders from net investment income | (1,388,486) | (705,473) |
Distributions to shareholders from net realized gain | (30,115,081) | (11,219,115) |
Total distributions | (31,503,567) | (11,924,588) |
Share transactions - net increase (decrease) | 82,170,375 | 89,486,791 |
Redemption fees | 104,704 | 131,185 |
Total increase (decrease) in net assets | (22,634,297) | 214,830,265 |
| | |
Net Assets | | |
Beginning of period | 356,587,596 | 141,757,331 |
End of period (including accumulated net investment loss of $870,247 and undistributed net investment income of $1,229,931, respectively) | $ 333,953,299 | $ 356,587,596 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended April 30, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 37.55 | $ 22.48 | $ 17.70 | $ 13.96 | $ 13.07 | $ 9.89 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.01) | .24 | .22 | .18 | .03 | .07 |
Net realized and unrealized gain (loss) | (6.38) | 16.64 | 6.10 | 3.61 | 1.00 K | 3.11 |
Total from investment operations | (6.39) | 16.88 | 6.32 | 3.79 | 1.03 | 3.18 |
Distributions from net investment income | (.23) | (.15) | (.16) | - | (.15) | - |
Distributions from net realized gain | (3.06) | (1.68) | (1.39) | (.05) | - | - |
Total distributions | (3.29) | (1.83) | (1.55) | (.05) | (.15) | - |
Redemption fees added to paid in capital E | .01 | .02 | .01 | - J | .01 | - |
Net asset value, end of period | $ 27.88 | $ 37.55 | $ 22.48 | $ 17.70 | $ 13.96 | $ 13.07 |
Total Return B,C,D | (17.92)% | 80.43% | 38.02% | 27.23% | 8.01%K | 32.15% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 1.49% A | 1.47% | 1.73% | 1.90% | 2.24% | 2.81% |
Expenses net of fee waivers, if any | 1.49% A | 1.47% | 1.50% | 1.61% | 2.00% | 2.02% |
Expenses net of all reductions | 1.40% A | 1.40% | 1.39% | 1.55% | 1.99% | 2.02% |
Net investment income (loss) | (.05)% A | .88% | 1.08% | 1.08% | .21% | .70% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 151,072 | $ 152,630 | $ 55,790 | $ 30,782 | $ 21,099 | $ 24,161 |
Portfolio turnover rate G | 96% A,I | 66% | 77% | 66% | 232% | 172% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I The portfolio turnover rate does not include the assets acquired in the merger. J Amount represents less than $.01 per share. K In 2004 the Fund received a favorable ruling in India which entitles the Fund to a refund of capital gains taxes paid in the current and prior years. The impact to the Fund was an increase in realized and unrealized gain (loss) per share of $.51. Excluding this benefit, the total return would have been 4.18%. The realized and unrealized gains were 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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended April 30, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 36.88 | $ 22.13 | $ 17.45 | $ 13.80 | $ 12.92 | $ 9.81 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.04) | .16 | .17 | .14 | -J | .05 |
Net realized and unrealized gain (loss) | (6.28) | 16.37 | 6.01 | 3.56 | .99 K | 3.06 |
Total from investment operations | (6.32) | 16.53 | 6.18 | 3.70 | .99 | 3.11 |
Distributions from net investment income | (.14) | (.12) | (.12) | - | (.12) | - |
Distributions from net realized gain | (3.06) | (1.68) | (1.39) | (.05) | - | - |
Total distributions | (3.20) | (1.80) | (1.51) | (.05) | (.12) | - |
Redemption fees added to paid in capital E | .01 | .02 | .01 | - J | .01 | - |
Net asset value, end of period | $ 27.37 | $ 36.88 | $ 22.13 | $ 17.45 | $ 13.80 | $ 12.92 |
Total Return B,C,D | (18.04)% | 79.98% | 37.69% | 26.89% | 7.78% K | 31.70% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 1.79% A | 1.79% | 2.07% | 2.27% | 2.76% | 3.43% |
Expenses net of fee waivers, if any | 1.75% A | 1.75% | 1.75% | 1.84% | 2.25% | 2.27% |
Expenses net of all reductions | 1.65% A | 1.67% | 1.64% | 1.79% | 2.24% | 2.26% |
Net investment income (loss) | (.31)% A | .61% | .83% | .85% | (.04)% | .45% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 55,853 | $ 64,813 | $ 28,850 | $ 14,074 | $ 7,658 | $ 4,982 |
Portfolio turnover rate G | 96% A,I | 66% | 77% | 66% | 232% | 172% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I The portfolio turnover rate does not include the assets acquired in the merger. J Amount represents less than $.01 per share. K In 2004 the Fund received a favorable ruling in India which entitles the Fund to a refund of capital gains taxes paid in the current and prior years. The impact to the Fund was an increase in realized and unrealized gain (loss) per share of $.50. Excluding this benefit, the total return would have been 3.95%. The realized and unrealized gains were 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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended April 30, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 35.55 | $ 21.42 | $ 16.94 | $ 13.46 | $ 12.64 | $ 9.63 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.11) | .03 | .06 | .06 | (.07) | (.01) |
Net realized and unrealized gain (loss) | (6.05) | 15.79 | 5.84 | 3.47 | .96 K | 3.02 |
Total from investment operations | (6.16) | 15.82 | 5.90 | 3.53 | .89 | 3.01 |
Distributions from net investment income | - | (.03) | (.04) | - | (.08) | - |
Distributions from net realized gain | (3.05) | (1.68) | (1.39) | (.05) | - | - |
Total distributions | (3.05) | (1.71) | (1.43) | (.05) | (.08) | - |
Redemption fees added to paid in capital E | .01 | .02 | .01 | - J | .01 | - |
Net asset value, end of period | $ 26.35 | $ 35.55 | $ 21.42 | $ 16.94 | $ 13.46 | $ 12.64 |
Total Return B,C,D | (18.22)% | 79.01% | 36.99% | 26.31% | 7.14% K | 31.26% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 2.29% A | 2.28% | 2.59% | 2.75% | 3.19% | 3.87% |
Expenses net of fee waivers, if any | 2.25% A | 2.25% | 2.25% | 2.35% | 2.75% | 2.77% |
Expenses net of all reductions | 2.15% A | 2.17% | 2.14% | 2.29% | 2.74% | 2.77% |
Net investment income (loss) | (.81)% A | .11% | .33% | .34% | (.54)% | (.05)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 38,285 | $ 40,775 | $ 18,985 | $ 11,504 | $ 7,065 | $ 5,157 |
Portfolio turnover rate G | 96% A,I | 66% | 77% | 66% | 232% | 172% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I The portfolio turnover rate does not include the assets acquired in the merger. J Amount represents less than $.01 per share. K In 2004 the Fund received a favorable ruling in India which entitles the Fund to a refund of capital gains taxes paid in the current and prior years. The impact to the Fund was an increase in realized and unrealized gain (loss) per share of $.49. Excluding this benefit, the total return would have been 3.31%. The realized and unrealized gains were 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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended April 30, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 35.48 | $ 21.39 | $ 16.94 | $ 13.46 | $ 12.65 | $ 9.64 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.11) | .04 | .06 | .06 | (.07) | (.01) |
Net realized and unrealized gain (loss) | (6.03) | 15.76 | 5.84 | 3.47 | .96 K | 3.02 |
Total from investment operations | (6.14) | 15.80 | 5.90 | 3.53 | .89 | 3.01 |
Distributions from net investment income | (.04) | (.05) | (.07) | - | (.09) | - |
Distributions from net realized gain | (3.06) | (1.68) | (1.39) | (.05) | - | - |
Total distributions | (3.10) | (1.73) | (1.46) | (.05) | (.09) | - |
Redemption fees added to paid in capital E | .01 | .02 | .01 | - J | .01 | - |
Net asset value, end of period | $ 26.25 | $ 35.48 | $ 21.39 | $ 16.94 | $ 13.46 | $ 12.65 |
Total Return B,C,D | (18.23)% | 79.05% | 37.02% | 26.31% | 7.14% K | 31.22% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 2.23% A | 2.21% | 2.46% | 2.67% | 3.02% | 3.70% |
Expenses net of fee waivers, if any | 2.23% A | 2.21% | 2.25% | 2.34% | 2.75% | 2.77% |
Expenses net of all reductions | 2.14% A | 2.13% | 2.14% | 2.28% | 2.74% | 2.76% |
Net investment income (loss) | (.79)% A | .14% | .33% | .35% | (.54)% | (.05)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 70,255 | $ 82,070 | $ 33,047 | $ 13,291 | $ 6,484 | $ 4,581 |
Portfolio turnover rate G | 96% A,I | 66% | 77% | 66% | 232% | 172% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I The portfolio turnover rate does not include the assets acquired in the merger. J Amount represents less than $.01 per share. K In 2004 the Fund received a favorable ruling in India which entitles the Fund to a refund of capital gains taxes paid in the current and prior years. The impact to the Fund was an increase in realized and unrealized gain (loss) per share of $.49. Excluding this benefit, the total return would have been 3.31%. The realized and unrealized gains were 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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended April 30, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 38.25 | $ 22.84 | $ 17.97 | $ 14.13 | $ 13.20 | $ 9.97 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .04 | .34 | .27 | .24 | .06 | .10 |
Net realized and unrealized gain (loss) | (6.50) | 16.92 | 6.19 | 3.65 | 1.01 J | 3.13 |
Total from investment operations | (6.46) | 17.26 | 6.46 | 3.89 | 1.07 | 3.23 |
Distributions from net investment income | (.31) | (.19) | (.21) | - | (.15) | - |
Distributions from net realized gain | (3.06) | (1.68) | (1.39) | (.05) | - | - |
Total distributions | (3.37) | (1.87) | (1.60) | (.05) | (.15) | - |
Redemption fees added to paid in capital D | .01 | .02 | .01 | - I | .01 | - |
Net asset value, end of period | $ 28.43 | $ 38.25 | $ 22.84 | $ 17.97 | $ 14.13 | $ 13.20 |
Total Return B,C | (17.78)% | 80.97% | 38.28% | 27.61% | 8.24%J | 32.40% |
Ratios to Average Net Assets E,G | | | | | |
Expenses before reductions | 1.18% A | 1.16% | 1.41% | 1.52% | 2.11% | 2.55% |
Expenses net of fee waivers, if any | 1.18% A | 1.16% | 1.25% | 1.29% | 1.75% | 1.77% |
Expenses net of all reductions | 1.09% A | 1.08% | 1.14% | 1.24% | 1.74% | 1.77% |
Net investment income (loss) | .26% A | 1.20% | 1.33% | 1.40% | .46% | .94% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 18,488 | $ 16,300 | $ 5,086 | $ 4,791 | $ 452 | $ 1,538 |
Portfolio turnover rate F | 96% A,H | 66% | 77% | 66% | 232% | 172% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. H The portfolio turnover rate does not include the assets acquired in the merger. I Amount represents less than $.01 per share. J In 2004 the Fund received a favorable ruling in India which entitles the Fund to a refund of capital gains taxes paid in the current and prior years. The impact to the Fund was an increase in realized and unrealized gain (loss) per share of $.51. Excluding this benefit, the total return would have been 4.41%. The realized and unrealized gains were 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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2008 (Unaudited)
1. Organization.
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.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
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. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued and net asset value (NAV) per share is calculated (NAV calculation) as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or do not accurately reflect fair value, valuations may be determined in accordance with procedures adopted by the Board of Trustees. For example, when developments occur between the close of a market and the close of the NYSE that may materially affect the value of some or all of the securities, or when trading in a security is halted, those securities may be fair valued. Factors used in the determination of fair value may include monitoring news to identify significant market or security specific events such as changes in the value of U.S. securities markets, reviewing developments in foreign markets and evaluating the performance of ADRs, futures contracts and exchange-traded funds. Because the Fund's utilization of fair value pricing depends on market activity, the frequency with which fair value pricing is used cannot be predicted and may be utilized to a significant extent. The value of securities used for NAV calculation under fair value pricing may differ from published prices for the same securities.
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.
Semiannual Report
3. Significant Accounting Policies - continued
Foreign Currency - continued
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. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV for processing shareholder transactions includes trades executed through the end of the prior business day. 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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. 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 each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not result in any unrecognized tax benefits in the accompanying financial statements. Each of the Fund's federal tax returns for the prior three fiscal years remains subject to examination by the Internal Revenue Service. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. The Fund received a final ruling from the Authority for Advance Ruling in India regarding the
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
applicability of taxes imposed by the country on realized capital gains under the US/India tax treaty. The ruling entitled the Fund to a refund of capital gains taxes paid in prior years and exempts the Fund from taxes on future realized gains. The per-share and total return impacts are disclosed on the Financial Highlights. The India Central Board of Direct Taxation may challenge the ruling at any time which could result in the reversal of some or all of the benefits recorded by the Fund.
Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to short-term capital gains, foreign currency transactions, passive foreign investment companies (PFIC) and losses deferred due to wash sales.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 74,565,548 | |
Unrealized depreciation | (13,376,876) | |
Net unrealized appreciation (depreciation) | $ 61,188,672 | |
Cost for federal income tax purposes | $ 268,412,521 | |
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.
New Accounting Pronouncement. In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and results in expanded disclosures about fair value measurements.
Semiannual Report
4. Operating Policies.
Repurchase Agreements. 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 which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
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 at the end of the Fund's Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $152,145,811 and $169,726,931, respectively.
6. 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 .26% 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 .71% 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. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period,
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan - continued
the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC |
Class A | -% | .25% | $ 188,764 | $ 6,479 |
Class T | .25% | .25% | 143,758 | - |
Class B | .75% | .25% | 194,669 | 146,002 |
Class C | .75% | .25% | 369,790 | 94,263 |
| | | $ 896,981 | $ 246,744 |
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, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges 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, 1.00% to .50% for certain purchases of Class A shares and ..25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 71,951 |
Class T | 13,863 |
Class B* | 34,380 |
Class C* | 28,491 |
| $ 148,685 |
* 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 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 shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each class to FIIOC were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 198,134 | .26 |
Class T | 90,047 | .31 |
Class B | 59,429 | .31 |
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
| Amount | % of
Average
Net Assets* |
Class C | 92,732 | .25 |
Institutional Class | 16,539 | .20 |
| $ 456,881 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $4.2 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, which amounted to $331 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, 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. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. At period end, there were no security loans outstanding. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
8. Security Lending - continued
Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $232.
9. Expense Reductions.
FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense
Limitations | Reimbursement
from adviser |
| | |
Class T | 1.75% | $ 12,980 |
Class B | 2.25% | 7,566 |
| | $ 20,546 |
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 included payments of certain expenses on behalf of the Fund totaling $160,764 for the period. 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. During the period, these credits reduced the Fund's custody expenses by $1,423. During the period, credits reduced each class' transfer agent expense as noted in the table below.
| Transfer Agent
expense reduction |
| |
Institutional Class | $ 31 |
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30,
2008 | Year ended
October 31,
2007 |
From net investment income | | |
Class A | $ 933,094 | $ 394,476 |
Class T | 241,193 | 160,784 |
Class B | - | 30,252 |
Class C | 82,275 | 75,200 |
Institutional Class | 131,924 | 44,761 |
Total | $ 1,388,486 | $ 705,473 |
From net realized gain | | |
Class A | $ 12,682,581 | $ 4,331,516 |
Class T | 5,427,293 | 2,269,882 |
Class B | 3,491,350 | 1,540,071 |
Class C | 7,194,616 | 2,688,016 |
Institutional Class | 1,319,241 | 389,630 |
Total | $ 30,115,081 | $ 11,219,115 |
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended April 30,
2008 | Year ended
October 31,
2007 | Six months ended
April 30,
2008 | Year ended
October 31,
2007 |
Class A | | | | |
Shares sold | 992,282 | 2,498,533 | $ 29,380,306 | $ 69,396,605 |
Issued in exchange for shares of Fidelity Advisor Korea Fund | 1,036,440 | - | 32,482,019 | - |
Reinvestment of distributions | 367,601 | 162,468 | 11,447,101 | 3,714,012 |
Shares redeemed | (1,043,343) | (1,077,457) | (29,260,720) | (29,208,159) |
Net increase (decrease) | 1,352,980 | 1,583,544 | $ 44,048,706 | $ 43,902,458 |
Class T | | | | |
Shares sold | 309,938 | 905,528 | $ 8,878,301 | $ 24,631,491 |
Issued in exchange for shares of Fidelity Advisor Korea Fund | 234,931 | - | 7,235,880 | - |
Reinvestment of distributions | 168,831 | 96,625 | 5,167,912 | 2,174,062 |
Shares redeemed | (430,657) | (548,117) | (11,947,241) | (14,491,120) |
Net increase (decrease) | 283,043 | 454,036 | $ 9,334,852 | $ 12,314,433 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
12. Share Transactions - continued
| Shares | Dollars |
| Six months ended April 30,
2008 | Year ended
October 31,
2007 | Six months ended
April 30,
2008 | Year ended
October 31,
2007 |
Class B | | | | |
Shares sold | 174,799 | 582,754 | $ 4,920,009 | $ 15,102,929 |
Issued in exchange for shares of Fidelity Advisor Korea Fund | 293,838 | - | 8,726,975 | - |
Reinvestment of distributions | 105,630 | 65,401 | 3,118,188 | 1,425,750 |
Shares redeemed | (268,250) | (387,524) | (7,160,859) | (9,787,762) |
Net increase (decrease) | 306,017 | 260,631 | $ 9,604,313 | $ 6,740,917 |
Class C | | | | |
Shares sold | 412,617 | 1,281,274 | $ 11,865,736 | $ 34,698,003 |
Issued in exchange for shares of Fidelity Advisor Korea Fund | 365,248 | - | 10,807,681 | - |
Reinvestment of distributions | 196,711 | 105,026 | 5,785,273 | 2,283,267 |
Shares redeemed | (611,789) | (618,089) | (16,211,694) | (16,150,431) |
Net increase (decrease) | 362,787 | 768,211 | $ 12,246,996 | $ 20,830,839 |
Institutional Class | | | | |
Shares sold | 238,103 | 368,744 | $ 6,923,336 | $ 10,529,830 |
Issued in exchange for shares of Fidelity Advisor Korea Fund | 131,266 | - | 4,188,699 | - |
Reinvestment of distributions | 20,222 | 9,931 | 641,235 | 230,692 |
Shares redeemed | (165,538) | (175,119) | (4,817,762) | (5,062,378) |
Net increase (decrease) | 224,053 | 203,556 | $ 6,935,508 | $ 5,698,144 |
13. Merger Information.
On December 7, 2007, the Fund acquired all of the assets and assumed all of the liabilities of Fidelity Advisor Korea Fund ("Target Fund") pursuant to an agreement and plan of reorganization approved by the Target Fund shareholders on November 14, 2007. The acquisition was accomplished by an exchange of 1,036,440; 234,931; 293,838; 365,248, and 131,266 shares of Class A, Class T, Class B, Class C and Institutional Class of the Fund, respectively, for 1,446,656; 331,148; 420,027; 517,942, and 182,483 shares then outstanding of Class A, Class T, Class B, Class C and Institutional Class (valued at $22.45, $21.85, $20.78, $20.87, and $22.95, per share for Class A, Class T, Class B, Class C and Institutional Class, respectively) of the Target Fund. The reorganization qualified as a tax-free reorganization for federal income tax purposes with no gain or loss recognized by the Funds or their shareholders. The Target Fund's net assets, including $10,759,371 of unrealized appreciation, were combined with the Fund's net assets of $334,365,132 for total net assets after the acquisition of $397,806,387.
Semiannual Report
A special meeting of the fund's shareholders was held on May 14, 2008. The results of votes taken among shareholders on the proposals before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1 |
To elect a Board of Trustees.A |
| # of
Votes | % of
Votes |
James C. Curvey |
Affirmative | 8,514,961,004.35 | 97.348 |
Withheld | 231,994,591.94 | 2.652 |
TOTAL | 8,746,955,596.29 | 100.000 |
Dennis J. Dirks |
Affirmative | 8,525,899,114.46 | 97.473 |
Withheld | 221,056,481.83 | 2.527 |
TOTAL | 8,746,955,596.29 | 100.000 |
Edward C. Johnson 3d |
Affirmative | 8,497,196,105.85 | 97.145 |
Withheld | 249,759,490.44 | 2.855 |
TOTAL | 8,746,955,596.29 | 100.000 |
Alan J. Lacy |
Affirmative | 8,522,858,760.40 | 97.438 |
Withheld | 224,096,835.89 | 2.562 |
TOTAL | 8,746,955,596.29 | 100.000 |
Ned C. Lautenbach |
Affirmative | 8,523,008,335.52 | 97.440 |
Withheld | 223,947,260.77 | 2.560 |
TOTAL | 8,746,955,596.29 | 100.000 |
Joseph Mauriello |
Affirmative | 8,524,890,199.58 | 97.461 |
Withheld | 222,065,396.71 | 2.539 |
TOTAL | 8,746,955,596.29 | 100.000 |
Cornelia M. Small |
Affirmative | 8,525,649,323.51 | 97.470 |
Withheld | 221,306,272.78 | 2.530 |
TOTAL | 8,746,955,596.29 | 100.000 |
| # of
Votes | % of
Votes |
William S. Stavropoulos |
Affirmative | 8,514,682,431.03 | 97.345 |
Withheld | 232,273,165.26 | 2.655 |
TOTAL | 8,746,955,596.29 | 100.000 |
David M. Thomas |
Affirmative | 8,526,972,729.02 | 97.485 |
Withheld | 219,982,867.27 | 2.515 |
TOTAL | 8,746,955,596.29 | 100.000 |
Michael E. Wiley |
Affirmative | 8,523,710,850.33 | 97.448 |
Withheld | 223,244,745.96 | 2.552 |
TOTAL | 8,746,955,596.29 | 100.000 |
PROPOSAL 2 |
To amend the Declaration of Trust of Fidelity Advisor Series VIII to reduce the required quorum for future shareholder meetings.A |
| # of
Votes | % of
Votes |
Affirmative | 4,574,398,791.46 | 52.297 |
Against | 2,140,778,913.08 | 24.475 |
Abstain | 230,752,610.67 | 2.638 |
Broker
Non-Votes | 1,801,025,281.08 | 20.590 |
TOTAL | 8,746,955,596.29 | 100.000 |
A Denotes trust-wide proposal and voting results.
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 Research & Analysis Company
Fidelity International
Investment Advisors
Fidelity Investments Japan Limited
Fidelity International Investment Advisors (U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Brown Brothers Harriman & Co.
Boston, MA
AEA-USAN-0608 1.784873.105
(Fidelity Investment logo)(registered trademark)
Fidelity® Advisor
Emerging Asia
Fund - Institutional Class
Semiannual Report
April 30, 2008
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | Ned Johnson's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
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. |
Proxy Voting Results | <Click Here> | |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
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 LLC or an affiliated company.
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.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
Continuation of a credit squeeze, flat consumer spending and a potential recession weighed heavily on stocks in the opening months of 2008, though positive results in investment-grade bonds and money markets offered some comfort to investors. Financial markets are always unpredictable, but there are a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 1, 2007 to April 30, 2008).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Semiannual Report
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Beginning
Account Value
November 1, 2007 | Ending
Account Value
April 30, 2008 | Expenses Paid
During Period*
November 1, 2007 to
April 30, 2008 |
Class A | | | |
Actual | $ 1,000.00 | $ 820.80 | $ 6.75 |
Hypothetical A | $ 1,000.00 | $ 1,017.45 | $ 7.47 |
Class T | | | |
Actual | $ 1,000.00 | $ 819.60 | $ 7.92 |
Hypothetical A | $ 1,000.00 | $ 1,016.16 | $ 8.77 |
Class B | | | |
Actual | $ 1,000.00 | $ 817.80 | $ 10.17 |
Hypothetical A | $ 1,000.00 | $ 1,013.67 | $ 11.27 |
Class C | | | |
Actual | $ 1,000.00 | $ 817.70 | $ 10.08 |
Hypothetical A | $ 1,000.00 | $ 1,013.77 | $ 11.17 |
Institutional Class | | | |
Actual | $ 1,000.00 | $ 822.20 | $ 5.35 |
Hypothetical A | $ 1,000.00 | $ 1,019.00 | $ 5.92 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
| Annualized
Expense Ratio |
Class A | 1.49% |
Class T | 1.75% |
Class B | 2.25% |
Class C | 2.23% |
Institutional Class | 1.18% |
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of April 30, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
China Mobile (Hong Kong) Ltd. | 6.5 | 4.3 |
Samsung Electronics Co. Ltd. | 3.9 | 3.0 |
Yuanta Financial Holding Co. Ltd. | 3.6 | 0.8 |
Reliance Industries Ltd. | 2.9 | 2.6 |
POSCO | 2.6 | 2.9 |
Shinhan Financial Group Co. Ltd. | 2.2 | 1.9 |
China Life Insurance Co. Ltd. (H Shares) | 2.0 | 1.0 |
Taewoong Co. Ltd. | 2.0 | 2.0 |
CLP Holdings Ltd. | 2.0 | 0.0 |
PetroChina Co. Ltd. (H Shares) | 1.8 | 2.5 |
| 29.5 | |
Top Five Market Sectors as of April 30, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 33.3 | 26.3 |
Materials | 12.0 | 12.2 |
Telecommunication Services | 11.9 | 8.2 |
Information Technology | 10.4 | 15.3 |
Energy | 6.9 | 8.0 |
Asset Allocation (% of fund's net assets) |
As of April 30, 2008 | As of October 31, 2007 |
| Stocks 93.8% | | | Stocks 96.4% | |
| Short-Term
Investments and
Net Other Assets 6.2% | | | Short-Term
Investments and
Net Other Assets 3.6% | |
Semiannual Report
Investments April 30, 2008 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 93.8% |
| Shares | | Value |
Australia - 0.9% |
Nufarm Ltd. | 170,000 | | $ 2,854,275 |
Cayman Islands - 3.6% |
Belle International Holdings Ltd. | 1,245,000 | | 1,325,972 |
Hidili Industry International Development Ltd. | 900,000 | | 1,374,284 |
Hutchison China Meditech Ltd. (a) | 3 | | 7 |
Lee & Man Paper Manufacturing Ltd. | 421,200 | | 783,688 |
Mindray Medical International Ltd. sponsored ADR | 50,400 | | 1,713,600 |
New Oriental Education & Technology Group, Inc. sponsored ADR (a) | 48,800 | | 3,662,928 |
New World Department Store China Ltd. | 352,000 | | 384,379 |
Stella International Holdings Ltd. | 1,282,500 | | 1,902,401 |
TCC International Holdings Ltd. (a) | 1,084,000 | | 977,849 |
TOTAL CAYMAN ISLANDS | | 12,125,108 |
China - 13.1% |
Aluminum Corp. of China Ltd. (H Shares) | 1,600,000 | | 2,705,966 |
Anhui Conch Cement Co. Ltd. (H Shares) | 296,000 | | 2,366,283 |
China Construction Bank Corp. (H Shares) | 2,812,000 | | 2,540,241 |
China Life Insurance Co. Ltd. (H Shares) | 1,562,000 | | 6,804,704 |
Focus Media Holding Ltd. ADR (a) | 60,000 | | 2,213,400 |
Industrial & Commercial Bank of China | 3,012,000 | | 2,384,663 |
PetroChina Co. Ltd. (H Shares) | 4,002,000 | | 6,013,417 |
Ping An Insurance (Group) Co. of China, Ltd. (H Shares) | 371,000 | | 3,520,457 |
Sina Corp. (a) | 99,000 | | 4,573,800 |
Tencent Holdings Ltd. | 822,000 | | 5,453,174 |
Yantai Changyu Pioneer Wine Co. (B Shares) | 722,940 | | 5,018,645 |
TOTAL CHINA | | 43,594,750 |
Hong Kong - 15.4% |
Cheung Kong Holdings Ltd. | 199,000 | | 3,099,979 |
China Mobile (Hong Kong) Ltd. | 1,265,500 | | 21,775,990 |
CLP Holdings Ltd. | 830,000 | | 6,581,934 |
CNOOC Ltd. | 1,490,500 | | 2,645,765 |
Fairwood Holdings Ltd. (c) | 721,500 | | 823,974 |
Hang Lung Properties Ltd. | 483,000 | | 1,964,687 |
Hang Seng Bank Ltd. | 96,300 | | 1,928,929 |
Kerry Properties Ltd. | 362,313 | | 2,452,412 |
Sun Hung Kai Properties Ltd. | 128,000 | | 2,241,969 |
Wharf Holdings Ltd. | 450,000 | | 2,283,736 |
Wing Lung Bank Ltd. | 320,000 | | 5,769,169 |
TOTAL HONG KONG | | 51,568,544 |
Common Stocks - continued |
| Shares | | Value |
India - 8.3% |
Axis Bank Ltd. | 120,000 | | $ 2,739,827 |
Bajaj Auto Ltd. (a) | 13,000 | | 216,513 |
Bajaj Finserv Ltd. (a) | 13,000 | | 180,502 |
Bank of Baroda | 49,800 | | 406,685 |
Bharti Airtel Ltd. (a) | 152,768 | | 3,392,432 |
Container Corp. of India Ltd. | 20,000 | | 424,870 |
INFO Edge India Ltd. | 28,892 | | 690,837 |
IVRCL Infrastructures & Projects Ltd. | 85,000 | | 903,059 |
Kotak Mahindra Bank Ltd. | 70,000 | | 1,369,975 |
Max India Ltd. (a) | 111,250 | | 436,337 |
Reliance Industries Ltd. | 150,746 | | 9,743,521 |
Royal Orchid Hotels Ltd. | 132,311 | | 345,415 |
Sesa Goa Ltd. | 14,646 | | 1,526,678 |
Shree Renuka Sugars Ltd. | 600,000 | | 1,877,874 |
State Bank of India | 72,996 | | 3,295,937 |
TOTAL INDIA | | 27,550,462 |
Indonesia - 2.6% |
PT Bank Rakyat Indonesia Tbk | 2,200,000 | | 1,419,584 |
PT Indosat Tbk | 3,304,000 | | 2,167,789 |
PT Perusahaan Gas Negara Tbk Series B | 2,165,000 | | 2,840,958 |
PT Telkomunikasi Indonesia Tbk Series B | 2,500,000 | | 2,399,412 |
TOTAL INDONESIA | | 8,827,743 |
Korea (South) - 18.9% |
Doosan Heavy Industries & Construction Co. Ltd. | 21,295 | | 2,239,346 |
Hana Tour Service, Inc. | 35,508 | | 2,120,040 |
Hanwha Corp. | 24,490 | | 1,154,625 |
Hanwha Securities Co. Ltd. | 148,870 | | 1,676,782 |
Hyundai Mipo Dockyard Co. Ltd. | 8,820 | | 1,947,302 |
Kookmin Bank | 60,170 | | 4,192,260 |
Korea Exchange Bank | 85,710 | | 1,302,844 |
LG Household & Health Care Ltd. | 20,810 | | 4,304,089 |
NHN Corp. (a) | 22,981 | | 5,337,230 |
POSCO | 17,602 | | 8,605,816 |
Samsung Electronics Co. Ltd. | 18,199 | | 12,897,578 |
Samsung Fire & Marine Insurance Co. Ltd. | 6,240 | | 1,362,134 |
Shinhan Financial Group Co. Ltd. | 128,512 | | 7,419,720 |
SK Telecom Co. Ltd. | 8,000 | | 1,618,740 |
Taewoong Co. Ltd. | 64,331 | | 6,771,350 |
TOTAL KOREA (SOUTH) | | 62,949,856 |
Common Stocks - continued |
| Shares | | Value |
Malaysia - 5.1% |
Bumiputra-Commerce Holdings Bhd | 1,061,500 | | $ 3,343,439 |
DiGi.com Bhd | 300,000 | | 2,307,692 |
Parkson Holdings Bhd (a) | 809,900 | | 1,794,650 |
Public Bank Bhd (For. Reg.) | 1,300,000 | | 4,691,358 |
Resorts World Bhd | 1,521,100 | | 1,627,514 |
Sime Darby Bhd | 1,100,000 | | 3,342,830 |
TOTAL MALAYSIA | | 17,107,483 |
Papua New Guinea - 1.9% |
Lihir Gold Ltd. (a) | 1,095,859 | | 3,038,987 |
Oil Search Ltd. | 750,000 | | 3,360,328 |
TOTAL PAPUA NEW GUINEA | | 6,399,315 |
Philippines - 0.3% |
Jollibee Food Corp. | 857,100 | | 893,130 |
Singapore - 0.9% |
Parkway Holdings Ltd. | 136,650 | | 352,684 |
Raffles Medical Group Ltd. | 730,000 | | 694,418 |
Singapore Technologies Engineering Ltd. | 842,000 | | 1,999,292 |
TOTAL SINGAPORE | | 3,046,394 |
Taiwan - 17.7% |
Cathay Financial Holding Co. Ltd. | 1,500,000 | | 4,212,168 |
Cathay Real Estate Development Co. Ltd. | 4,005,000 | | 3,216,101 |
China Steel Corp. | 2,651,000 | | 4,353,395 |
Chinatrust Financial Holding Co. Ltd. (a) | 4,339,319 | | 4,524,949 |
Chunghwa Telecom Co. Ltd. | 1,800,000 | | 4,640,775 |
Far Eastern Textile Ltd. | 2,339,620 | | 3,934,265 |
Farglory Land Developt Co. Ltd. | 634,000 | | 2,040,627 |
First Financial Holding Co. Ltd. | 1,500,000 | | 1,822,810 |
Hung Poo Real Estate Development Co. Ltd. | 1,042,000 | | 1,995,192 |
MediaTek, Inc. | 260,850 | | 3,384,046 |
Sinyi Realty, Inc. | 563,243 | | 2,173,612 |
Taiwan Cement Corp. | 1,794,679 | | 2,917,698 |
Taiwan Fertilizer Co. Ltd. | 1,200,000 | | 5,813,285 |
Taiwan Semiconductor Manufacturing Co. Ltd. | 1,054,140 | | 2,309,258 |
Yuanta Financial Holding Co. Ltd. (a) | 12,533,054 | | 11,937,222 |
TOTAL TAIWAN | | 59,275,403 |
Thailand - 5.1% |
Bangkok Bank Ltd. PCL: | | | |
NVDR | 555,200 | | 2,415,435 |
Common Stocks - continued |
| Shares | | Value |
Thailand - continued |
Bangkok Bank Ltd. PCL: - continued | | | |
(For. Reg.) | 294,800 | | $ 1,301,135 |
Bumrungrad Hospital PCL (For. Reg.) | 708,500 | | 720,338 |
Central Pattana PCL (For. Reg.) | 2,405,400 | | 2,180,178 |
LPN Development PCL | 2,908,000 | | 687,579 |
Minor International PCL (For. Reg.) | 2,549,608 | | 1,286,057 |
PTT Exploration & Production PCL (For. Reg.) | 250,000 | | 1,308,323 |
Robinson Department Store PCL (For. Reg.) | 3,006,700 | | 1,042,677 |
Siam Commercial Bank PCL (For. Reg.) | 1,581,200 | | 4,436,532 |
Total Access Communication PCL unit | 1,140,568 | | 1,663,029 |
TOTAL THAILAND | | 17,041,283 |
United Kingdom - 0.0% |
Genting International PLC (a) | 152,110 | | 68,422 |
TOTAL COMMON STOCKS (Cost $252,041,758) | 313,302,168 |
Money Market Funds - 4.9% |
| | | |
Fidelity Cash Central Fund, 2.51% (b)
(Cost $16,299,025) | 16,299,025 | | 16,299,025 |
TOTAL INVESTMENT PORTFOLIO - 98.7% (Cost $268,340,783) | | 329,601,193 |
NET OTHER ASSETS - 1.3% | | 4,352,106 |
NET ASSETS - 100% | $ 333,953,299 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter 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 end of the period, the value of these securities amounted to $823,974 or 0.2% of net assets. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 297,217 |
Fidelity Securities Lending Cash Central Fund | 232 |
Total | $ 297,449 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| April 30, 2008 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $252,041,758) | $ 313,302,168 | |
Fidelity Central Funds (cost $16,299,025) | 16,299,025 | |
Total Investments (cost $268,340,783) | | $ 329,601,193 |
Foreign currency held at value (cost $670,816) | | 660,462 |
Receivable for investments sold | | 5,819,639 |
Receivable for fund shares sold | | 511,119 |
Dividends receivable | | 596,106 |
Distributions receivable from Fidelity Central Funds | | 41,807 |
Prepaid expenses | | 654 |
Other receivables | | 416,497 |
Total assets | | 337,647,477 |
| | |
Liabilities | | |
Payable for investments purchased | $ 2,640,967 | |
Payable for fund shares redeemed | 554,824 | |
Accrued management fee | 197,144 | |
Distribution fees payable | 142,105 | |
Other affiliated payables | 85,224 | |
Other payables and accrued expenses | 73,914 | |
Total liabilities | | 3,694,178 |
| | |
Net Assets | | $ 333,953,299 |
Net Assets consist of: | | |
Paid in capital | | $ 270,756,505 |
Accumulated net investment loss | | (870,247) |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | 2,768,252 |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 61,298,789 |
Net Assets | | $ 333,953,299 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| April 30, 2008 (Unaudited) |
| | |
Calculation of Maximum Offering Price
Class A:
Net Asset Value and redemption price per share ($151,071,991 ÷ 5,417,922 shares) | | $ 27.88 |
| | |
Maximum offering price per share (100/94.25 of $27.88) | | $ 29.58 |
Class T:
Net Asset Value and redemption price per share ($55,852,992 ÷ 2,040,515 shares) | | $ 27.37 |
| | |
Maximum offering price per share (100/96.50 of $27.37) | | $ 28.36 |
Class B:
Net Asset Value and offering price per share ($38,285,100 ÷ 1,452,878 shares)A | | $ 26.35 |
| | |
Class C:
Net Asset Value and offering price per share ($70,255,107 ÷ 2,676,190 shares)A | | $ 26.25 |
| | |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($18,488,109 ÷ 650,228 shares) | | $ 28.43 |
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
Financial Statements - continued
Statement of Operations
Six months ended April 30, 2008 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 2,204,087 |
Interest | | 148 |
Income from Fidelity Central Funds | | 297,449 |
| | 2,501,684 |
Less foreign taxes withheld | | (230,686) |
Total income | | 2,270,998 |
| | |
Expenses | | |
Management fee | $ 1,193,928 | |
Transfer agent fees | 456,881 | |
Distribution fees | 896,981 | |
Accounting and security lending fees | 87,505 | |
Custodian fees and expenses | 199,999 | |
Independent trustees' compensation | 748 | |
Registration fees | 70,796 | |
Audit | 61,759 | |
Legal | 6,298 | |
Miscellaneous | 34,646 | |
Total expenses before reductions | 3,009,541 | |
Expense reductions | (182,764) | 2,826,777 |
Net investment income (loss) | | (555,779) |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | 3,034,977 | |
Foreign currency transactions | (179,552) | |
Total net realized gain (loss) | | 2,855,425 |
Change in net unrealized appreciation (depreciation) on: Investment securities | (75,696,665) | |
Assets and liabilities in foreign currencies | (8,790) | |
Total change in net unrealized appreciation (depreciation) | | (75,705,455) |
Net gain (loss) | | (72,850,030) |
Net increase (decrease) in net assets resulting from operations | | $ (73,405,809) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended April 30, 2008
(Unaudited) | Year ended
October 31,
2007 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (555,779) | $ 1,260,602 |
Net realized gain (loss) | 2,855,425 | 35,123,899 |
Change in net unrealized appreciation (depreciation) | (75,705,455) | 100,752,376 |
Net increase (decrease) in net assets resulting
from operations | (73,405,809) | 137,136,877 |
Distributions to shareholders from net investment income | (1,388,486) | (705,473) |
Distributions to shareholders from net realized gain | (30,115,081) | (11,219,115) |
Total distributions | (31,503,567) | (11,924,588) |
Share transactions - net increase (decrease) | 82,170,375 | 89,486,791 |
Redemption fees | 104,704 | 131,185 |
Total increase (decrease) in net assets | (22,634,297) | 214,830,265 |
| | |
Net Assets | | |
Beginning of period | 356,587,596 | 141,757,331 |
End of period (including accumulated net investment loss of $870,247 and undistributed net investment income of $1,229,931, respectively) | $ 333,953,299 | $ 356,587,596 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended April 30, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 37.55 | $ 22.48 | $ 17.70 | $ 13.96 | $ 13.07 | $ 9.89 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.01) | .24 | .22 | .18 | .03 | .07 |
Net realized and unrealized gain (loss) | (6.38) | 16.64 | 6.10 | 3.61 | 1.00 K | 3.11 |
Total from investment operations | (6.39) | 16.88 | 6.32 | 3.79 | 1.03 | 3.18 |
Distributions from net investment income | (.23) | (.15) | (.16) | - | (.15) | - |
Distributions from net realized gain | (3.06) | (1.68) | (1.39) | (.05) | - | - |
Total distributions | (3.29) | (1.83) | (1.55) | (.05) | (.15) | - |
Redemption fees added to paid in capital E | .01 | .02 | .01 | - J | .01 | - |
Net asset value, end of period | $ 27.88 | $ 37.55 | $ 22.48 | $ 17.70 | $ 13.96 | $ 13.07 |
Total Return B,C,D | (17.92)% | 80.43% | 38.02% | 27.23% | 8.01%K | 32.15% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 1.49% A | 1.47% | 1.73% | 1.90% | 2.24% | 2.81% |
Expenses net of fee waivers, if any | 1.49% A | 1.47% | 1.50% | 1.61% | 2.00% | 2.02% |
Expenses net of all reductions | 1.40% A | 1.40% | 1.39% | 1.55% | 1.99% | 2.02% |
Net investment income (loss) | (.05)% A | .88% | 1.08% | 1.08% | .21% | .70% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 151,072 | $ 152,630 | $ 55,790 | $ 30,782 | $ 21,099 | $ 24,161 |
Portfolio turnover rate G | 96% A,I | 66% | 77% | 66% | 232% | 172% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I The portfolio turnover rate does not include the assets acquired in the merger. J Amount represents less than $.01 per share. K In 2004 the Fund received a favorable ruling in India which entitles the Fund to a refund of capital gains taxes paid in the current and prior years. The impact to the Fund was an increase in realized and unrealized gain (loss) per share of $.51. Excluding this benefit, the total return would have been 4.18%. The realized and unrealized gains were 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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class T
| Six months ended April 30, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 36.88 | $ 22.13 | $ 17.45 | $ 13.80 | $ 12.92 | $ 9.81 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.04) | .16 | .17 | .14 | -J | .05 |
Net realized and unrealized gain (loss) | (6.28) | 16.37 | 6.01 | 3.56 | .99 K | 3.06 |
Total from investment operations | (6.32) | 16.53 | 6.18 | 3.70 | .99 | 3.11 |
Distributions from net investment income | (.14) | (.12) | (.12) | - | (.12) | - |
Distributions from net realized gain | (3.06) | (1.68) | (1.39) | (.05) | - | - |
Total distributions | (3.20) | (1.80) | (1.51) | (.05) | (.12) | - |
Redemption fees added to paid in capital E | .01 | .02 | .01 | - J | .01 | - |
Net asset value, end of period | $ 27.37 | $ 36.88 | $ 22.13 | $ 17.45 | $ 13.80 | $ 12.92 |
Total Return B,C,D | (18.04)% | 79.98% | 37.69% | 26.89% | 7.78% K | 31.70% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 1.79% A | 1.79% | 2.07% | 2.27% | 2.76% | 3.43% |
Expenses net of fee waivers, if any | 1.75% A | 1.75% | 1.75% | 1.84% | 2.25% | 2.27% |
Expenses net of all reductions | 1.65% A | 1.67% | 1.64% | 1.79% | 2.24% | 2.26% |
Net investment income (loss) | (.31)% A | .61% | .83% | .85% | (.04)% | .45% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 55,853 | $ 64,813 | $ 28,850 | $ 14,074 | $ 7,658 | $ 4,982 |
Portfolio turnover rate G | 96% A,I | 66% | 77% | 66% | 232% | 172% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I The portfolio turnover rate does not include the assets acquired in the merger. J Amount represents less than $.01 per share. K In 2004 the Fund received a favorable ruling in India which entitles the Fund to a refund of capital gains taxes paid in the current and prior years. The impact to the Fund was an increase in realized and unrealized gain (loss) per share of $.50. Excluding this benefit, the total return would have been 3.95%. The realized and unrealized gains were 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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class B
| Six months ended April 30, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 35.55 | $ 21.42 | $ 16.94 | $ 13.46 | $ 12.64 | $ 9.63 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.11) | .03 | .06 | .06 | (.07) | (.01) |
Net realized and unrealized gain (loss) | (6.05) | 15.79 | 5.84 | 3.47 | .96 K | 3.02 |
Total from investment operations | (6.16) | 15.82 | 5.90 | 3.53 | .89 | 3.01 |
Distributions from net investment income | - | (.03) | (.04) | - | (.08) | - |
Distributions from net realized gain | (3.05) | (1.68) | (1.39) | (.05) | - | - |
Total distributions | (3.05) | (1.71) | (1.43) | (.05) | (.08) | - |
Redemption fees added to paid in capital E | .01 | .02 | .01 | - J | .01 | - |
Net asset value, end of period | $ 26.35 | $ 35.55 | $ 21.42 | $ 16.94 | $ 13.46 | $ 12.64 |
Total Return B,C,D | (18.22)% | 79.01% | 36.99% | 26.31% | 7.14% K | 31.26% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 2.29% A | 2.28% | 2.59% | 2.75% | 3.19% | 3.87% |
Expenses net of fee waivers, if any | 2.25% A | 2.25% | 2.25% | 2.35% | 2.75% | 2.77% |
Expenses net of all reductions | 2.15% A | 2.17% | 2.14% | 2.29% | 2.74% | 2.77% |
Net investment income (loss) | (.81)% A | .11% | .33% | .34% | (.54)% | (.05)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 38,285 | $ 40,775 | $ 18,985 | $ 11,504 | $ 7,065 | $ 5,157 |
Portfolio turnover rate G | 96% A,I | 66% | 77% | 66% | 232% | 172% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I The portfolio turnover rate does not include the assets acquired in the merger. J Amount represents less than $.01 per share. K In 2004 the Fund received a favorable ruling in India which entitles the Fund to a refund of capital gains taxes paid in the current and prior years. The impact to the Fund was an increase in realized and unrealized gain (loss) per share of $.49. Excluding this benefit, the total return would have been 3.31%. The realized and unrealized gains were 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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class C
| Six months ended April 30, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 35.48 | $ 21.39 | $ 16.94 | $ 13.46 | $ 12.65 | $ 9.64 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.11) | .04 | .06 | .06 | (.07) | (.01) |
Net realized and unrealized gain (loss) | (6.03) | 15.76 | 5.84 | 3.47 | .96 K | 3.02 |
Total from investment operations | (6.14) | 15.80 | 5.90 | 3.53 | .89 | 3.01 |
Distributions from net investment income | (.04) | (.05) | (.07) | - | (.09) | - |
Distributions from net realized gain | (3.06) | (1.68) | (1.39) | (.05) | - | - |
Total distributions | (3.10) | (1.73) | (1.46) | (.05) | (.09) | - |
Redemption fees added to paid in capital E | .01 | .02 | .01 | - J | .01 | - |
Net asset value, end of period | $ 26.25 | $ 35.48 | $ 21.39 | $ 16.94 | $ 13.46 | $ 12.65 |
Total Return B,C,D | (18.23)% | 79.05% | 37.02% | 26.31% | 7.14% K | 31.22% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 2.23% A | 2.21% | 2.46% | 2.67% | 3.02% | 3.70% |
Expenses net of fee waivers, if any | 2.23% A | 2.21% | 2.25% | 2.34% | 2.75% | 2.77% |
Expenses net of all reductions | 2.14% A | 2.13% | 2.14% | 2.28% | 2.74% | 2.76% |
Net investment income (loss) | (.79)% A | .14% | .33% | .35% | (.54)% | (.05)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 70,255 | $ 82,070 | $ 33,047 | $ 13,291 | $ 6,484 | $ 4,581 |
Portfolio turnover rate G | 96% A,I | 66% | 77% | 66% | 232% | 172% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. I The portfolio turnover rate does not include the assets acquired in the merger. J Amount represents less than $.01 per share. K In 2004 the Fund received a favorable ruling in India which entitles the Fund to a refund of capital gains taxes paid in the current and prior years. The impact to the Fund was an increase in realized and unrealized gain (loss) per share of $.49. Excluding this benefit, the total return would have been 3.31%. The realized and unrealized gains were 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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Institutional Class
| Six months ended April 30, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 38.25 | $ 22.84 | $ 17.97 | $ 14.13 | $ 13.20 | $ 9.97 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .04 | .34 | .27 | .24 | .06 | .10 |
Net realized and unrealized gain (loss) | (6.50) | 16.92 | 6.19 | 3.65 | 1.01 J | 3.13 |
Total from investment operations | (6.46) | 17.26 | 6.46 | 3.89 | 1.07 | 3.23 |
Distributions from net investment income | (.31) | (.19) | (.21) | - | (.15) | - |
Distributions from net realized gain | (3.06) | (1.68) | (1.39) | (.05) | - | - |
Total distributions | (3.37) | (1.87) | (1.60) | (.05) | (.15) | - |
Redemption fees added to paid in capital D | .01 | .02 | .01 | - I | .01 | - |
Net asset value, end of period | $ 28.43 | $ 38.25 | $ 22.84 | $ 17.97 | $ 14.13 | $ 13.20 |
Total Return B,C | (17.78)% | 80.97% | 38.28% | 27.61% | 8.24%J | 32.40% |
Ratios to Average Net Assets E,G | | | | | |
Expenses before reductions | 1.18% A | 1.16% | 1.41% | 1.52% | 2.11% | 2.55% |
Expenses net of fee waivers, if any | 1.18% A | 1.16% | 1.25% | 1.29% | 1.75% | 1.77% |
Expenses net of all reductions | 1.09% A | 1.08% | 1.14% | 1.24% | 1.74% | 1.77% |
Net investment income (loss) | .26% A | 1.20% | 1.33% | 1.40% | .46% | .94% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 18,488 | $ 16,300 | $ 5,086 | $ 4,791 | $ 452 | $ 1,538 |
Portfolio turnover rate F | 96% A,H | 66% | 77% | 66% | 232% | 172% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. H The portfolio turnover rate does not include the assets acquired in the merger. I Amount represents less than $.01 per share. J In 2004 the Fund received a favorable ruling in India which entitles the Fund to a refund of capital gains taxes paid in the current and prior years. The impact to the Fund was an increase in realized and unrealized gain (loss) per share of $.51. Excluding this benefit, the total return would have been 4.41%. The realized and unrealized gains were 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. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended April 30, 2008 (Unaudited)
1. Organization.
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.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
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. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued and net asset value (NAV) per share is calculated (NAV calculation) as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or do not accurately reflect fair value, valuations may be determined in accordance with procedures adopted by the Board of Trustees. For example, when developments occur between the close of a market and the close of the NYSE that may materially affect the value of some or all of the securities, or when trading in a security is halted, those securities may be fair valued. Factors used in the determination of fair value may include monitoring news to identify significant market or security specific events such as changes in the value of U.S. securities markets, reviewing developments in foreign markets and evaluating the performance of ADRs, futures contracts and exchange-traded funds. Because the Fund's utilization of fair value pricing depends on market activity, the frequency with which fair value pricing is used cannot be predicted and may be utilized to a significant extent. The value of securities used for NAV calculation under fair value pricing may differ from published prices for the same securities.
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.
Semiannual Report
3. Significant Accounting Policies - continued
Foreign Currency - continued
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. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV for processing shareholder transactions includes trades executed through the end of the prior business day. 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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. 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 each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not result in any unrecognized tax benefits in the accompanying financial statements. Each of the Fund's federal tax returns for the prior three fiscal years remains subject to examination by the Internal Revenue Service. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. The Fund received a final ruling from the Authority for Advance Ruling in India regarding the
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
applicability of taxes imposed by the country on realized capital gains under the US/India tax treaty. The ruling entitled the Fund to a refund of capital gains taxes paid in prior years and exempts the Fund from taxes on future realized gains. The per-share and total return impacts are disclosed on the Financial Highlights. The India Central Board of Direct Taxation may challenge the ruling at any time which could result in the reversal of some or all of the benefits recorded by the Fund.
Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to short-term capital gains, foreign currency transactions, passive foreign investment companies (PFIC) and losses deferred due to wash sales.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 74,565,548 | |
Unrealized depreciation | (13,376,876) | |
Net unrealized appreciation (depreciation) | $ 61,188,672 | |
Cost for federal income tax purposes | $ 268,412,521 | |
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.
New Accounting Pronouncement. In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and results in expanded disclosures about fair value measurements.
Semiannual Report
4. Operating Policies.
Repurchase Agreements. 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 which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
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 at the end of the Fund's Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $152,145,811 and $169,726,931, respectively.
6. 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 .26% 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 .71% 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. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period,
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan - continued
the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC |
Class A | -% | .25% | $ 188,764 | $ 6,479 |
Class T | .25% | .25% | 143,758 | - |
Class B | .75% | .25% | 194,669 | 146,002 |
Class C | .75% | .25% | 369,790 | 94,263 |
| | | $ 896,981 | $ 246,744 |
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, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges 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, 1.00% to .50% for certain purchases of Class A shares and ..25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 71,951 |
Class T | 13,863 |
Class B* | 34,380 |
Class C* | 28,491 |
| $ 148,685 |
* 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 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 shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each class to FIIOC were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 198,134 | .26 |
Class T | 90,047 | .31 |
Class B | 59,429 | .31 |
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
| Amount | % of
Average
Net Assets* |
Class C | 92,732 | .25 |
Institutional Class | 16,539 | .20 |
| $ 456,881 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $4.2 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, which amounted to $331 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, 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. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. At period end, there were no security loans outstanding. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
8. Security Lending - continued
Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $232.
9. Expense Reductions.
FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense
Limitations | Reimbursement
from adviser |
| | |
Class T | 1.75% | $ 12,980 |
Class B | 2.25% | 7,566 |
| | $ 20,546 |
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 included payments of certain expenses on behalf of the Fund totaling $160,764 for the period. 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. During the period, these credits reduced the Fund's custody expenses by $1,423. During the period, credits reduced each class' transfer agent expense as noted in the table below.
| Transfer Agent
expense reduction |
| |
Institutional Class | $ 31 |
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30,
2008 | Year ended
October 31,
2007 |
From net investment income | | |
Class A | $ 933,094 | $ 394,476 |
Class T | 241,193 | 160,784 |
Class B | - | 30,252 |
Class C | 82,275 | 75,200 |
Institutional Class | 131,924 | 44,761 |
Total | $ 1,388,486 | $ 705,473 |
From net realized gain | | |
Class A | $ 12,682,581 | $ 4,331,516 |
Class T | 5,427,293 | 2,269,882 |
Class B | 3,491,350 | 1,540,071 |
Class C | 7,194,616 | 2,688,016 |
Institutional Class | 1,319,241 | 389,630 |
Total | $ 30,115,081 | $ 11,219,115 |
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended April 30,
2008 | Year ended
October 31,
2007 | Six months ended
April 30,
2008 | Year ended
October 31,
2007 |
Class A | | | | |
Shares sold | 992,282 | 2,498,533 | $ 29,380,306 | $ 69,396,605 |
Issued in exchange for shares of Fidelity Advisor Korea Fund | 1,036,440 | - | 32,482,019 | - |
Reinvestment of distributions | 367,601 | 162,468 | 11,447,101 | 3,714,012 |
Shares redeemed | (1,043,343) | (1,077,457) | (29,260,720) | (29,208,159) |
Net increase (decrease) | 1,352,980 | 1,583,544 | $ 44,048,706 | $ 43,902,458 |
Class T | | | | |
Shares sold | 309,938 | 905,528 | $ 8,878,301 | $ 24,631,491 |
Issued in exchange for shares of Fidelity Advisor Korea Fund | 234,931 | - | 7,235,880 | - |
Reinvestment of distributions | 168,831 | 96,625 | 5,167,912 | 2,174,062 |
Shares redeemed | (430,657) | (548,117) | (11,947,241) | (14,491,120) |
Net increase (decrease) | 283,043 | 454,036 | $ 9,334,852 | $ 12,314,433 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
12. Share Transactions - continued
| Shares | Dollars |
| Six months ended April 30,
2008 | Year ended
October 31,
2007 | Six months ended
April 30,
2008 | Year ended
October 31,
2007 |
Class B | | | | |
Shares sold | 174,799 | 582,754 | $ 4,920,009 | $ 15,102,929 |
Issued in exchange for shares of Fidelity Advisor Korea Fund | 293,838 | - | 8,726,975 | - |
Reinvestment of distributions | 105,630 | 65,401 | 3,118,188 | 1,425,750 |
Shares redeemed | (268,250) | (387,524) | (7,160,859) | (9,787,762) |
Net increase (decrease) | 306,017 | 260,631 | $ 9,604,313 | $ 6,740,917 |
Class C | | | | |
Shares sold | 412,617 | 1,281,274 | $ 11,865,736 | $ 34,698,003 |
Issued in exchange for shares of Fidelity Advisor Korea Fund | 365,248 | - | 10,807,681 | - |
Reinvestment of distributions | 196,711 | 105,026 | 5,785,273 | 2,283,267 |
Shares redeemed | (611,789) | (618,089) | (16,211,694) | (16,150,431) |
Net increase (decrease) | 362,787 | 768,211 | $ 12,246,996 | $ 20,830,839 |
Institutional Class | | | | |
Shares sold | 238,103 | 368,744 | $ 6,923,336 | $ 10,529,830 |
Issued in exchange for shares of Fidelity Advisor Korea Fund | 131,266 | - | 4,188,699 | - |
Reinvestment of distributions | 20,222 | 9,931 | 641,235 | 230,692 |
Shares redeemed | (165,538) | (175,119) | (4,817,762) | (5,062,378) |
Net increase (decrease) | 224,053 | 203,556 | $ 6,935,508 | $ 5,698,144 |
13. Merger Information.
On December 7, 2007, the Fund acquired all of the assets and assumed all of the liabilities of Fidelity Advisor Korea Fund ("Target Fund") pursuant to an agreement and plan of reorganization approved by the Target Fund shareholders on November 14, 2007. The acquisition was accomplished by an exchange of 1,036,440; 234,931; 293,838; 365,248, and 131,266 shares of Class A, Class T, Class B, Class C and Institutional Class of the Fund, respectively, for 1,446,656; 331,148; 420,027; 517,942, and 182,483 shares then outstanding of Class A, Class T, Class B, Class C and Institutional Class (valued at $22.45, $21.85, $20.78, $20.87, and $22.95, per share for Class A, Class T, Class B, Class C and Institutional Class, respectively) of the Target Fund. The reorganization qualified as a tax-free reorganization for federal income tax purposes with no gain or loss recognized by the Funds or their shareholders. The Target Fund's net assets, including $10,759,371 of unrealized appreciation, were combined with the Fund's net assets of $334,365,132 for total net assets after the acquisition of $397,806,387.
Semiannual Report
A special meeting of the fund's shareholders was held on May 14, 2008. The results of votes taken among shareholders on the proposals before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1 |
To elect a Board of Trustees.A |
| # of
Votes | % of
Votes |
James C. Curvey |
Affirmative | 8,514,961,004.35 | 97.348 |
Withheld | 231,994,591.94 | 2.652 |
TOTAL | 8,746,955,596.29 | 100.000 |
Dennis J. Dirks |
Affirmative | 8,525,899,114.46 | 97.473 |
Withheld | 221,056,481.83 | 2.527 |
TOTAL | 8,746,955,596.29 | 100.000 |
Edward C. Johnson 3d |
Affirmative | 8,497,196,105.85 | 97.145 |
Withheld | 249,759,490.44 | 2.855 |
TOTAL | 8,746,955,596.29 | 100.000 |
Alan J. Lacy |
Affirmative | 8,522,858,760.40 | 97.438 |
Withheld | 224,096,835.89 | 2.562 |
TOTAL | 8,746,955,596.29 | 100.000 |
Ned C. Lautenbach |
Affirmative | 8,523,008,335.52 | 97.440 |
Withheld | 223,947,260.77 | 2.560 |
TOTAL | 8,746,955,596.29 | 100.000 |
Joseph Mauriello |
Affirmative | 8,524,890,199.58 | 97.461 |
Withheld | 222,065,396.71 | 2.539 |
TOTAL | 8,746,955,596.29 | 100.000 |
Cornelia M. Small |
Affirmative | 8,525,649,323.51 | 97.470 |
Withheld | 221,306,272.78 | 2.530 |
TOTAL | 8,746,955,596.29 | 100.000 |
| # of
Votes | % of
Votes |
William S. Stavropoulos |
Affirmative | 8,514,682,431.03 | 97.345 |
Withheld | 232,273,165.26 | 2.655 |
TOTAL | 8,746,955,596.29 | 100.000 |
David M. Thomas |
Affirmative | 8,526,972,729.02 | 97.485 |
Withheld | 219,982,867.27 | 2.515 |
TOTAL | 8,746,955,596.29 | 100.000 |
Michael E. Wiley |
Affirmative | 8,523,710,850.33 | 97.448 |
Withheld | 223,244,745.96 | 2.552 |
TOTAL | 8,746,955,596.29 | 100.000 |
PROPOSAL 2 |
To amend the Declaration of Trust of Fidelity Advisor Series VIII to reduce the required quorum for future shareholder meetings.A |
| # of
Votes | % of
Votes |
Affirmative | 4,574,398,791.46 | 52.297 |
Against | 2,140,778,913.08 | 24.475 |
Abstain | 230,752,610.67 | 2.638 |
Broker
Non-Votes | 1,801,025,281.08 | 20.590 |
TOTAL | 8,746,955,596.29 | 100.000 |
A Denotes trust-wide proposal and voting results.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Research & Analysis Company
Fidelity International
Investment Advisors
Fidelity Investments Japan Limited
Fidelity International Investment Advisors (U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Brown Brothers Harriman & Co.
Boston, MA
AEAI-USAN-0608 1.784874.105
(Fidelity Investment logo)(registered trademark)
Fidelity® Advisor
Emerging Markets
Fund - Class A, Class T, Class B
and Class C
Semiannual Report
April 30, 2008
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | Ned Johnson's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
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. |
Proxy Voting Results | <Click Here> | |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
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 LLC or an affiliated company.
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.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
Continuation of a credit squeeze, flat consumer spending and a potential recession weighed heavily on stocks in the opening months of 2008, though positive results in investment-grade bonds and money markets offered some comfort to investors. Financial markets are always unpredictable, but there are a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 1, 2007 to April 30, 2008).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Semiannual Report
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
|
Beginning
Account Value
November 1, 2007
|
Ending
Account Value
April 30, 2008
| Expenses Paid
During Period*
November 1, 2007
to April 30, 2008 |
Class A | | | |
Actual | $ 1,000.00 | $ 883.40 | $ 7.45 |
HypotheticalA | $ 1,000.00 | $ 1,016.96 | $ 7.97 |
Class T | | | |
Actual | $ 1,000.00 | $ 882.30 | $ 8.61 |
HypotheticalA | $ 1,000.00 | $ 1,015.71 | $ 9.22 |
Class B | | | |
Actual | $ 1,000.00 | $ 880.20 | $ 10.99 |
HypotheticalA | $ 1,000.00 | $ 1,013.18 | $ 11.76 |
Class C | | | |
Actual | $ 1,000.00 | $ 879.90 | $ 10.94 |
HypotheticalA | $ 1,000.00 | $ 1,013.23 | $ 11.71 |
Institutional Class | | | |
Actual | $ 1,000.00 | $ 885.10 | $ 5.95 |
HypotheticalA | $ 1,000.00 | $ 1,018.55 | $ 6.37 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
| Annualized
Expense Ratio |
Class A | 1.59% |
Class T | 1.84% |
Class B | 2.35% |
Class C | 2.34% |
Institutional Class | 1.27% |
Semiannual Report
Investment Changes (Unaudited)
Top Five Stocks as of April 30, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Petroleo Brasileiro SA - Petrobras (PN) (non-vtg.) (Brazil, Oil, Gas & Consumable Fuels) | 4.7 | 3.2 |
OAO Gazprom sponsored ADR (Russia, Oil, Gas & Consumable Fuels) | 3.9 | 3.5 |
China Mobile (Hong Kong) Ltd. (Hong Kong, Wireless Telecommunication Services) | 3.5 | 3.6 |
Companhia Vale do Rio Doce (PN-A) sponsored ADR (Brazil, Metals & Mining) | 3.3 | 3.4 |
Samsung Electronics Co. Ltd. (Korea (South), Semiconductors & Semiconductor Equipment) | 3.1 | 1.7 |
| 18.5 | |
Top Five Market Sectors as of April 30, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 21.0 | 20.3 |
Energy | 20.0 | 16.6 |
Materials | 16.9 | 17.9 |
Telecommunication Services | 9.0 | 10.2 |
Industrials | 9.1 | 13.0 |
Top Five Countries as of April 30, 2008 |
(excluding cash equivalents) | % of fund's
net assets | % of fund's net assets
6 months ago |
Brazil | 13.9 | 13.7 |
Russia | 12.6 | 10.6 |
Korea (South) | 11.3 | 13.5 |
South Africa | 6.6 | 6.3 |
Hong Kong | 6.0 | 6.8 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) |
As of April 30, 2008 | As of October 31, 2007 |
| Stocks and Investment Companies 94.8% | | | Stocks and Investment Companies 97.1% | |
| Short-Term
Investments and
Net Other Assets 5.2% | | | Short-Term
Investments and
Net Other Assets 2.9% | |
Semiannual Report
Investments April 30, 2008 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 94.6% |
| Shares | | Value |
Argentina - 0.1% |
Banco Macro SA sponsored ADR | 36,100 | | $ 815,860 |
Australia - 0.0% |
Sino Gold Mining Ltd. (a) | 37,953 | | 179,354 |
Austria - 1.1% |
Erste Bank AG | 47,400 | | 3,529,616 |
Raiffeisen International Bank Holding AG | 18,374 | | 2,985,968 |
TOTAL AUSTRIA | | 6,515,584 |
Bahrain - 0.3% |
Gulf Finance House BSC: | | | |
unit (e) | 32,010 | | 1,232,385 |
(Reg. S) unit | 13,000 | | 500,500 |
TOTAL BAHRAIN | | 1,732,885 |
Bermuda - 1.7% |
Aquarius Platinum Ltd. (Australia) | 129,900 | | 2,075,627 |
C C Land Holdings Ltd. | 762,000 | | 839,915 |
Central European Media Enterprises Ltd. Class A (a) | 22,100 | | 2,343,042 |
Credicorp Ltd. (NY Shares) | 15,600 | | 1,253,616 |
Dufry South America Ltd. unit | 27,668 | | 556,789 |
FerroChina Ltd. | 353,000 | | 369,634 |
Pacific Basin Shipping Ltd. | 1,138,000 | | 2,082,326 |
Samling Global Ltd. | 2,207,000 | | 407,804 |
Sinofert Holdings Ltd. | 800,100 | | 610,869 |
TOTAL BERMUDA | | 10,539,622 |
Brazil - 13.9% |
All America Latina Logistica SA unit | 114,600 | | 1,496,102 |
Anhanguera Educacional Participacoes SA unit (a) | 12,509 | | 205,373 |
Banco Bradesco SA: | | | |
(PN) | 189,600 | | 4,391,529 |
(PN) sponsored ADR | 154,200 | | 3,481,836 |
Banco Daycoval SA (PN) | 53,600 | | 403,080 |
Banco do Brasil SA | 184,000 | | 3,188,064 |
Banco Indusval SA | 20,080 | | 193,286 |
Companhia de Saneamento de Minas Gerais | 67,500 | | 1,120,804 |
Companhia Vale do Rio Doce (PN-A) sponsored ADR | 643,400 | | 20,485,856 |
Gafisa SA: | | | |
sponsored ADR (d) | 21,700 | | 945,035 |
warrants 12/28/07 (a) | 32,000 | | 696,800 |
GVT Holding SA (a) | 67,100 | | 1,630,875 |
Localiza Rent a Car SA | 122,700 | | 1,601,847 |
Common Stocks - continued |
| Shares | | Value |
Brazil - continued |
MMX Mineracao e Metalicos SA (a) | 22,000 | | $ 738,539 |
MRV Engenharia e Participacoes SA | 87,000 | | 1,753,399 |
Multiplan Empreendimentos Imobiliarios SA | 35,100 | | 443,448 |
Net Servicos de Comunicacao SA sponsored ADR (d) | 207,666 | | 2,834,641 |
Petroleo Brasileiro SA - Petrobras: | | | |
(PN) (non-vtg.) | 760,400 | | 19,460,604 |
(PN) sponsored ADR (non-vtg.) | 89,600 | | 9,058,560 |
sponsored ADR | 27,800 | | 3,375,476 |
SEB - Sistema Educacional Brasileiro SA unit (a) | 16,800 | | 229,431 |
SLC Agricola SA | 19,900 | | 377,121 |
Tegma Gestao Logistica | 31,400 | | 336,253 |
Uniao de Bancos Brasileiros SA (Unibanco): | | | |
unit | 115,500 | | 1,723,258 |
GDR | 30,600 | | 4,449,546 |
Weg SA | 30,900 | | 369,937 |
TOTAL BRAZIL | | 84,990,700 |
British Virgin Islands - 0.1% |
Thunderbird Resorts, Inc. (a)(e) | 27,300 | | 245,700 |
Titanium Resources Group Ltd. (a) | 87,100 | | 75,332 |
TOTAL BRITISH VIRGIN ISLANDS | | 321,032 |
Canada - 0.7% |
Addax Petroleum, Inc. | 7,900 | | 352,052 |
Addax Petroleum, Inc. (e) | 4,700 | | 209,449 |
Aurelian Resources, Inc. (a) | 70,400 | | 286,605 |
Eastern Platinum Ltd. (a) | 337,300 | | 971,274 |
First Quantum Minerals Ltd. | 14,400 | | 1,264,415 |
Ivanhoe Mines Ltd. (a) | 52,000 | | 497,746 |
JumpTV, Inc. | 85,100 | | 75,205 |
SouthGobi Energy Resources Ltd. (a) | 48,000 | | 619,601 |
TOTAL CANADA | | 4,276,347 |
Cayman Islands - 1.2% |
Chaoda Modern Agriculture (Holdings) Ltd. | 2,245,218 | | 3,226,737 |
China Aoyuan Property Group Ltd. | 45,000 | | 17,496 |
CNinsure, Inc. ADR | 2,200 | | 30,910 |
Giant Interactive Group, Inc. ADR (d) | 6,800 | | 110,840 |
Hidili Industry International Development Ltd. | 187,000 | | 285,546 |
Integra Group Holdings unit (a) | 34,000 | | 442,000 |
Lee & Man Paper Manufacturing Ltd. | 629,200 | | 1,170,695 |
NagaCorp Ltd. | 582,000 | | 143,387 |
Neo-Neon Holdings Ltd. | 425,000 | | 275,947 |
Common Stocks - continued |
| Shares | | Value |
Cayman Islands - continued |
Xinyuan Real Estate Co. Ltd. ADR | 95,320 | | $ 860,740 |
Yingli Green Energy Holding Co. Ltd. ADR (d) | 13,700 | | 301,811 |
Zhong An Real Estate Ltd. | 410,000 | | 190,449 |
TOTAL CAYMAN ISLANDS | | 7,056,558 |
Chile - 0.2% |
Lan Airlines SA sponsored ADR | 104,700 | | 1,385,181 |
China - 5.1% |
Anhui Conch Cement Co. Ltd. (H Shares) | 270,000 | | 2,158,434 |
China Coal Energy Co. Ltd. (H Shares) | 1,764,300 | | 3,735,454 |
China Communications Construction Co. Ltd. (H Shares) | 1,339,000 | | 3,182,061 |
China Construction Bank Corp. (H Shares) | 8,920,000 | | 8,057,948 |
China Hongxing Sports Ltd. | 330,000 | | 165,475 |
Digital China Holdings Ltd. (H Shares) | 274,000 | | 172,280 |
First Tractor Co. Ltd. (H Shares) (a) | 736,500 | | 361,013 |
Golden Eagle Retail Group Ltd. (H Shares) | 514,000 | | 521,047 |
Industrial & Commercial Bank of China | 9,434,000 | | 7,469,095 |
Parkson Retail Group Ltd. | 64,500 | | 607,909 |
Ping An Insurance (Group) Co. of China, Ltd. (H Shares) | 440,000 | | 4,175,205 |
Yantai Changyu Pioneer Wine Co. (B Shares) | 54,990 | | 381,740 |
TOTAL CHINA | | 30,987,661 |
Cyprus - 0.4% |
Mirland Development Corp. PLC (a) | 116,915 | | 1,069,299 |
XXI Century Investments Public Ltd. (a) | 54,500 | | 1,554,961 |
TOTAL CYPRUS | | 2,624,260 |
Czech Republic - 0.9% |
Ceske Energeticke Zavody AS | 70,600 | | 5,246,456 |
Egypt - 1.2% |
Commercial International Bank Ltd. sponsored GDR | 114,700 | | 1,993,486 |
Eastern Tobacco Co. | 14,300 | | 1,034,214 |
Orascom Construction Industries SAE: | | | |
GDR | 13,744 | | 2,219,656 |
GDR (e) | 400 | | 64,600 |
Orascom Hotels & Development (OHD) (a) | 96,336 | | 1,518,509 |
Telecom Egypt SAE | 145,400 | | 526,864 |
TOTAL EGYPT | | 7,357,329 |
Georgia - 0.1% |
Bank of Georgia unit (a) | 27,800 | | 665,532 |
Common Stocks - continued |
| Shares | | Value |
Hong Kong - 6.0% |
China Mobile (Hong Kong) Ltd. | 1,258,200 | | $ 21,650,375 |
China Overseas Land & Investment Ltd. | 880,000 | | 1,851,883 |
China Overseas Land & Investment Ltd. warrants 8/27/08 (a) | 14,666 | | 7,904 |
China Resources Power Holdings Co. Ltd. | 529,700 | | 1,341,727 |
CNOOC Ltd. | 3,343,000 | | 5,934,112 |
CNOOC Ltd. sponsored ADR | 9,000 | | 1,597,950 |
CNPC (Hong Kong) Ltd. | 4,001,000 | | 1,925,248 |
REXCAPITAL Financial Holdings Ltd. (a) | 5,645,000 | | 659,162 |
Shanghai Industrial Holdings Ltd. (H Shares) | 268,000 | | 1,110,770 |
Sinotrans Shipping Ltd. | 915,500 | | 561,530 |
TOTAL HONG KONG | | 36,640,661 |
India - 5.3% |
Axis Bank Ltd. | 31,800 | | 726,054 |
Axis Bank Ltd. GDR (Reg. S) | 15,100 | | 351,075 |
Bank of India | 191,000 | | 1,616,299 |
Bharat Heavy Electricals Ltd. | 37,752 | | 1,775,277 |
Bharti Airtel Ltd. (a) | 90,875 | | 2,018,009 |
Blue Star Ltd. | 54,795 | | 597,462 |
Educomp Solutions Ltd. | 5,946 | | 589,198 |
Federal Bank Ltd. | 28,798 | | 171,400 |
Federal Bank Ltd.: | | | |
GDR | 23,402 | | 140,098 |
GDR (e) | 18,000 | | 107,758 |
HCL Technologies Ltd. | 144,919 | | 1,033,421 |
Housing Development Finance Corp. Ltd. | 38,000 | | 2,630,408 |
Indiabulls Real Estate Ltd. (a) | 28,000 | | 379,956 |
Indiabulls Real Estate Ltd. sponsored GDR (a)(e) | 51,448 | | 702,221 |
Indian Overseas Bank | 322,507 | | 1,209,968 |
Jaiprakash Associates Ltd. | 218,600 | | 1,468,322 |
JSW Steel Ltd. | 56,112 | | 1,214,142 |
LANCO Infratech Ltd. (a) | 92,521 | | 1,229,077 |
Larsen & Toubro Ltd. | 28,915 | | 2,146,823 |
Pantaloon Retail India Ltd. | 35,450 | | 463,498 |
Reliance Industries Ltd. | 93,542 | | 6,046,120 |
Rolta India Ltd. | 147,786 | | 1,239,831 |
Sintex Industries Ltd. | 101,954 | | 1,165,351 |
State Bank of India | 48,898 | | 2,207,857 |
Tata Power Co. Ltd. | 39,507 | | 1,363,407 |
TOTAL INDIA | | 32,593,032 |
Common Stocks - continued |
| Shares | | Value |
Indonesia - 3.6% |
PT Astra Agro Lestari Tbk | 620,000 | | $ 1,593,535 |
PT Astra International Tbk | 1,317,000 | | 2,856,520 |
PT Bank Mandiri Persero Tbk | 5,301,000 | | 1,652,788 |
PT Bank Niaga Tbk | 7,737,500 | | 570,599 |
PT Bank Rakyat Indonesia Tbk | 2,650,000 | | 1,709,954 |
PT Bumi Resources Tbk | 9,453,000 | | 6,817,307 |
PT Indocement Tunggal Prakarsa Tbk | 707,000 | | 429,367 |
PT International Nickel Indonesia Tbk | 3,088,500 | | 2,227,362 |
PT Perusahaan Gas Negara Tbk Series B | 2,021,000 | | 2,651,998 |
PT Perusahaan Perkebunan London Sumatra Indonesia Tbk (a) | 1,223,000 | | 1,213,582 |
TOTAL INDONESIA | | 21,723,012 |
Ireland - 0.1% |
Dragon Oil PLC (a) | 75,515 | | 747,711 |
Israel - 1.5% |
Check Point Software Technologies Ltd. (a) | 93,000 | | 2,196,660 |
Israel Chemicals Ltd. | 349,100 | | 6,427,031 |
Ormat Industries Ltd. | 41,500 | | 540,640 |
Orpak Systems Ltd. | 19,400 | | 61,715 |
Queenco Leisure International Ltd. GDR (a)(e) | 12,300 | | 175,310 |
TOTAL ISRAEL | | 9,401,356 |
Kazakhstan - 0.6% |
JSC Halyk Bank of Kazakhstan: | | | |
GDR (e) | 25,900 | | 416,990 |
unit | 76,990 | | 1,239,539 |
KazMunaiGas Exploration & Production JSC (Reg. S) GDR | 59,777 | | 1,757,444 |
TOTAL KAZAKHSTAN | | 3,413,973 |
Korea (South) - 11.3% |
CJ CheilJedang Corp. (a) | 3,690 | | 937,902 |
Daelim Industrial Co. | 8,330 | | 1,125,059 |
Doosan Co. Ltd. (a) | 15,051 | | 2,587,888 |
GS Engineering & Construction Corp. | 18,300 | | 2,690,507 |
GS Holdings Corp. | 40 | | 1,601 |
Hanil Cement Co. Ltd. | 1,520 | | 144,235 |
Hanjin Heavy Industries & Consolidated Co. Ltd. | 25,461 | | 1,459,266 |
Hyundai Engineering & Construction Co. Ltd. | 26,608 | | 2,445,312 |
Hyundai Heavy Industries Co. Ltd. | 7,990 | | 2,851,155 |
Hyundai Steel Co. | 14,610 | | 1,148,995 |
Kookmin Bank | 78,994 | | 5,503,796 |
Kyeryong Construction Industrial Co. Ltd. | 29,520 | | 1,081,346 |
Common Stocks - continued |
| Shares | | Value |
Korea (South) - continued |
LG Display Co. Ltd. sponsored ADR (d) | 36,600 | | $ 796,782 |
LG Electronics, Inc. | 30,030 | | 4,684,473 |
LG Household & Health Care Ltd. | 10,040 | | 2,076,552 |
MegaStudy Co. Ltd. | 8,804 | | 2,904,685 |
NHN Corp. (a) | 11,632 | | 2,701,477 |
POSCO | 4,420 | | 2,160,988 |
Samsung Electronics Co. Ltd. | 26,671 | | 18,901,660 |
Samsung Fire & Marine Insurance Co. Ltd. | 12,400 | | 2,706,804 |
Shinhan Financial Group Co. Ltd. | 109,150 | | 6,301,842 |
SK Chemicals Co. Ltd. | 9,013 | | 573,167 |
SK Energy Co. Ltd. | 17,424 | | 2,136,210 |
Taewoong Co. Ltd. | 13,645 | | 1,436,245 |
TOTAL KOREA (SOUTH) | | 69,357,947 |
Lebanon - 0.1% |
Solidere GDR | 14,600 | | 358,138 |
Luxembourg - 0.8% |
Evraz Group SA GDR | 44,700 | | 4,637,625 |
Malaysia - 1.5% |
Bandar Raya Developments Bhd | 623,000 | | 402,317 |
DiGi.com Bhd | 102,200 | | 786,154 |
Gamuda Bhd | 1,096,900 | | 1,083,358 |
Genting Bhd | 698,600 | | 1,415,334 |
IJM Corp. Bhd | 160,000 | | 291,231 |
KNM Group Bhd | 663,400 | | 1,344,020 |
Parkson Holdings Bhd (a) | 192,790 | | 427,202 |
Public Bank Bhd | 828,000 | | 2,988,034 |
UEM World Bhd | 381,900 | | 394,110 |
TOTAL MALAYSIA | | 9,131,760 |
Mauritius - 0.1% |
Golden Agri-Resources Ltd. | 912,000 | | 571,639 |
Mexico - 3.8% |
Alsea SAB de CV | 318,900 | | 420,487 |
America Movil SAB de CV Series L sponsored ADR | 215,900 | | 12,513,564 |
Banco Compartamos SA de CV | 131,800 | | 553,651 |
Desarrolladora Homex Sab de CV sponsored ADR (a)(d) | 23,100 | | 1,376,298 |
Grupo Aeroportuario Norte Sab de CV ADR | 47,000 | | 1,022,250 |
Grupo Financiero Banorte SA de CV Series O | 449,100 | | 1,982,869 |
Grupo Mexico SA de CV Series B | 393,768 | | 2,878,340 |
Common Stocks - continued |
| Shares | | Value |
Mexico - continued |
Megacable Holdings SAB de CV unit | 235,800 | | $ 694,670 |
Urbi, Desarrollos Urbanos, SA de CV (a) | 549,500 | | 1,760,810 |
TOTAL MEXICO | | 23,202,939 |
Netherlands - 0.0% |
A&D Pharma Holdings NV (Reg. S) unit | 4,200 | | 42,618 |
Nigeria - 0.2% |
Guaranty Trust Bank PLC: | | | |
(Reg. S) unit | 81,000 | | 1,014,930 |
sponsored GDR (e) | 31,600 | | 395,948 |
TOTAL NIGERIA | | 1,410,878 |
Oman - 0.4% |
BankMuscat SAOG sponsored: | | | |
GDR (e) | 7,562 | | 156,912 |
GDR | 107,270 | | 2,225,853 |
TOTAL OMAN | | 2,382,765 |
Pakistan - 0.2% |
MCB Bank Ltd. | 22,195 | | 142,540 |
MCB Bank Ltd.: | | | |
unit (e) | 22,770 | | 293,146 |
GDR | 42,000 | | 540,717 |
TOTAL PAKISTAN | | 976,403 |
Panama - 0.1% |
Intergroup Financial Services Corp. (e) | 16,076 | | 334,381 |
Peru - 0.1% |
Compania de Minas Buenaventura SA sponsored ADR | 7,300 | | 456,761 |
Philippines - 0.6% |
Alliance Global Group, Inc. (a) | 1,523,000 | | 140,668 |
Ayala Corp. | 62,496 | | 440,321 |
GMA Networks, Inc. unit | 569,000 | | 98,371 |
International Container Terminal Services, Inc. | 383,000 | | 276,649 |
Megaworld Corp. | 11,655,000 | | 568,604 |
PNOC Energy Development Corp. | 3,911,000 | | 481,639 |
Robinsons Land Corp. | 1,238,000 | | 315,181 |
Security Bank Corp. | 230,000 | | 326,821 |
SM Investments Corp. | 101,094 | | 598,543 |
Vista Land & Lifescapes, Inc. | 6,095,000 | | 447,472 |
TOTAL PHILIPPINES | | 3,694,269 |
Common Stocks - continued |
| Shares | | Value |
Poland - 0.2% |
BRE Bank SA (a) | 3,632 | | $ 591,263 |
Globe Trade Centre SA (a) | 54,800 | | 908,460 |
TOTAL POLAND | | 1,499,723 |
Russia - 12.6% |
Bank St. Petersburg OJSC (a) | 188,800 | | 1,057,280 |
JSC MMC 'Norilsk Nickel' sponsored ADR | 247,300 | | 6,726,560 |
LSR Group OJSC (a) | 10,200 | | 783,360 |
Lukoil Oil Co. sponsored ADR | 76,363 | | 6,857,397 |
Mechel Steel Group OAO sponsored ADR (d) | 37,500 | | 5,467,500 |
Mobile TeleSystems OJSC sponsored ADR | 62,400 | | 4,840,992 |
Novorossiysk Commercial Sea Port JSC ADR (a)(e) | 26,900 | | 416,950 |
OAO Gazprom sponsored ADR | 453,370 | | 23,983,271 |
OAO Raspadskaya (a) | 150,000 | | 1,267,500 |
OAO TatNeft unit | 27,750 | | 3,558,938 |
OAO TMK | 87,500 | | 669,375 |
OJSC Rosneft unit | 301,400 | | 2,953,720 |
Open Investments (a) | 1,588 | | 400,176 |
Rosinter Restaurants Holding | 5,000 | | 240,000 |
Sberbank (Savings Bank of the Russian Federation) | 1,068,000 | | 3,476,340 |
Sberbank (Savings Bank of the Russian Federation) GDR | 8,800 | | 3,362,847 |
Sistema-Hals JSC (a) | 1,500 | | 221,100 |
Sistema-Hals JSC unit (a) | 10,000 | | 73,700 |
Uralkali JSC (a) | 242,300 | | 2,532,035 |
Uralkali JSC GDR unit (a) | 26,200 | | 1,396,460 |
Vimpel Communications sponsored ADR | 171,500 | | 5,172,440 |
VSMPO-Avisma Corp. (a) | 1,000 | | 220,000 |
Wimm-Bill-Dann Foods OJSC sponsored ADR | 12,605 | | 1,534,029 |
TOTAL RUSSIA | | 77,211,970 |
Singapore - 0.6% |
Keppel Corp. Ltd. | 110,200 | | 838,628 |
Olam International Ltd. | 292,600 | | 586,883 |
Straits Asia Resources Ltd. | 1,017,000 | | 2,474,817 |
TOTAL SINGAPORE | | 3,900,328 |
Slovenia - 0.1% |
Nova Kreditna banka Maribor d.d. | 8,959 | | 433,423 |
South Africa - 6.5% |
African Bank Investments Ltd. | 478,347 | | 1,679,820 |
African Rainbow Minerals Ltd. | 72,626 | | 2,468,673 |
Aspen Pharmacare Holdings Ltd. | 126,859 | | 521,000 |
Common Stocks - continued |
| Shares | | Value |
South Africa - continued |
Bell Equipment Ltd. | 44,568 | | $ 256,429 |
Bidvest Group Ltd. | 100,800 | | 1,520,320 |
Blue Label Telecoms Ltd. | 438,923 | | 429,611 |
Exxaro Resources Ltd. | 148,900 | | 2,461,841 |
FirstRand Ltd. | 1,232,873 | | 2,553,673 |
Illovo Sugar Ltd. | 214,414 | | 907,524 |
Impala Platinum Holdings Ltd. | 159,664 | | 6,504,485 |
Kumba Iron Ore Ltd. | 59,000 | | 2,575,261 |
Mr. Price Group Ltd. | 167,100 | | 369,103 |
MTN Group Ltd. | 334,832 | | 6,399,559 |
Murray & Roberts Holdings Ltd. | 233,661 | | 2,735,173 |
Northam Platinum Ltd. | 64,750 | | 565,162 |
Raubex Group Ltd. | 300,028 | | 1,547,682 |
Sasol Ltd. sponsored ADR | 113,000 | | 6,401,450 |
TOTAL SOUTH AFRICA | | 39,896,766 |
Taiwan - 5.7% |
Asia Cement Corp. | 839,000 | | 1,510,048 |
AU Optronics Corp. | 1,138,000 | | 2,223,861 |
AU Optronics Corp. sponsored ADR (d) | 76,357 | | 1,490,489 |
China Steel Corp. | 2,193,920 | | 3,602,792 |
Everlight Electronics Co. Ltd. | 251,286 | | 965,612 |
First Financial Holding Co. Ltd. | 1,799,000 | | 2,186,157 |
Formosa Plastics Corp. | 608,000 | | 1,737,286 |
Foxconn Technology Co. Ltd. | 254,455 | | 1,642,184 |
High Tech Computer Corp. | 80,000 | | 2,062,567 |
Hon Hai Precision Industry Co. Ltd. (Foxconn) | 1,327,014 | | 7,692,519 |
Innolux Display Corp. | 1,090,553 | | 3,212,829 |
MediaTek, Inc. | 97,550 | | 1,265,531 |
Siliconware Precision Industries Co. Ltd. | 1,507,267 | | 2,608,850 |
Taiwan Cement Corp. | 1,761,740 | | 2,864,147 |
TOTAL TAIWAN | | 35,064,872 |
Thailand - 1.4% |
Italian-Thai Development PCL (a) | 1,045,200 | | 273,492 |
Mermaid Maritime PLC | 445,000 | | 397,058 |
Minor International PCL (For. Reg.) | 2,762,904 | | 1,393,646 |
PTT PCL (For. Reg.) | 317,000 | | 3,337,894 |
Siam Commercial Bank PCL (For. Reg.) | 978,400 | | 2,745,195 |
Total Access Communication PCL | 123,000 | | 175,890 |
Total Access Communication PCL (For. Reg.) | 262,200 | | 382,306 |
TOTAL THAILAND | | 8,705,481 |
Common Stocks - continued |
| Shares | | Value |
Turkey - 2.5% |
Anadolu Efes Biracilik ve Malt Sanyii AS | 205,646 | | $ 1,870,829 |
Asya Katilim Bankasi AS (a) | 352,500 | | 2,446,573 |
Bagfas Bandirma Gubre Fabrikalari AS | 14,609 | | 1,604,000 |
Enka Insaat ve Sanayi AS | 156,940 | | 2,166,218 |
Tekfen Holding AS | 105,000 | | 650,537 |
Tofas Turk Otomobil Fabrikasi AS | 233,000 | | 888,072 |
Tupras-Turkiye Petrol Rafinerileri AS | 101,200 | | 2,738,138 |
Turkiye Garanti Bankasi AS | 537,375 | | 2,886,847 |
TOTAL TURKEY | | 15,251,214 |
United Arab Emirates - 0.1% |
Depa Ltd. GDR (a)(e) | 23,200 | | 158,456 |
DP World Ltd. | 589,400 | | 618,870 |
TOTAL UNITED ARAB EMIRATES | | 777,326 |
United Kingdom - 0.8% |
Aricom PLC (a) | 521,300 | | 823,997 |
Aricom PLC warrants 5/6/10 (a)(f) | 12,700 | | 5,618 |
Cairn Energy PLC | 4,600 | | 286,634 |
Imperial Energy PLC (a) | 21,400 | | 464,630 |
Randgold Resources Ltd. sponsored ADR | 25,300 | | 1,151,656 |
Sibir Energy PLC | 180,615 | | 2,244,424 |
TOTAL UNITED KINGDOM | | 4,976,959 |
United States of America - 0.8% |
BMB Munai, Inc. (a) | 52,963 | | 291,297 |
Central European Distribution Corp. (a) | 13,400 | | 816,328 |
CTC Media, Inc. (a) | 54,696 | | 1,414,986 |
Freeport-McMoRan Copper & Gold, Inc. Class B | 16,000 | | 1,820,000 |
Pricesmart, Inc. | 17,970 | | 513,044 |
TOTAL UNITED STATES OF AMERICA | | 4,855,655 |
Vietnam - 0.0% |
Luks Group (Vietnam Holdings) Co. Ltd. | 290,000 | | 267,928 |
TOTAL COMMON STOCKS (Cost $454,321,951) | 578,613,874 |
Nonconvertible Preferred Stocks - 0.1% |
| | | |
Korea (South) - 0.0% |
Samsung Electronics Co. Ltd. | 320 | | 164,585 |
Nonconvertible Preferred Stocks - continued |
| Shares | | Value |
South Africa - 0.1% |
Allied Electronics Corp. Ltd. | 45,500 | | $ 217,859 |
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $407,568) | 382,444 |
Investment Companies - 0.1% |
| | | |
Romania - 0.1% |
SIF 1 Banat-Crisana Arad Fund | 190,100 | | 199,308 |
SIF 3 Transilvania Brasov Fund | 583,700 | | 380,617 |
SIF 4 Muntenia Bucuresti Fund | 164,900 | | 114,555 |
SIF 5 Oltenia Craiova Fund | 72,400 | | 88,249 |
TOTAL INVESTMENT COMPANIES (Cost $949,813) | 782,729 |
Convertible Bonds - 0.0% |
| Principal Amount | | |
Brazil - 0.0% |
Companhia de Saneamento de Minas Gerais 2.3% 6/1/13 (f)
(Cost $34,686) | BRL | $ 555 | | 36,862 |
Money Market Funds - 7.1% |
| Shares | | |
Fidelity Cash Central Fund, 2.51% (b) | 33,032,190 | | 33,032,190 |
Fidelity Securities Lending Cash Central Fund, 2.44% (b)(c) | 10,250,000 | | 10,250,000 |
TOTAL MONEY MARKET FUNDS (Cost $43,282,190) | 43,282,190 |
TOTAL INVESTMENT PORTFOLIO - 101.9% (Cost $498,996,208) | 623,098,099 |
NET OTHER ASSETS - (1.9)% | (11,578,874) |
NET ASSETS - 100% | $ 611,519,225 |
Currency Abbreviations |
BRL | - | Brazilian real |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) 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 end of the period, the value of these securities amounted to $4,910,206 or 0.8% of net assets. |
(f) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $42,480 or 0.0% of net assets. |
Additional information on each holding is as follows: |
Security | Acquisition Date | Acquisition Cost |
Aricom PLC warrants 5/6/10 | 5/11/07 | $ 0 |
Companhia de Saneamento de Minas Gerais 2.3% 6/1/13 | 8/22/07 | $ 34,686 |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 393,401 |
Fidelity Securities Lending Cash Central Fund | 37,925 |
Total | $ 431,326 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| April 30, 2008 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $10,343,851) - See accompanying schedule: Unaffiliated issuers (cost $455,714,018) | $ 579,815,909 | |
Fidelity Central Funds (cost $43,282,190) | 43,282,190 | |
Total Investments (cost $498,996,208) | | $ 623,098,099 |
Cash | | 101 |
Foreign currency held at value (cost $48,489) | | 48,496 |
Receivable for investments sold | | 2,390,575 |
Receivable for fund shares sold | | 2,122,723 |
Dividends receivable | | 899,937 |
Distributions receivable from Fidelity Central Funds | | 60,567 |
Prepaid expenses | | 938 |
Other receivables | | 91,294 |
Total assets | | 628,712,730 |
| | |
Liabilities | | |
Payable for investments purchased | $ 5,070,862 | |
Payable for fund shares redeemed | 548,080 | |
Accrued management fee | 416,286 | |
Distribution fees payable | 224,672 | |
Other affiliated payables | 154,951 | |
Other payables and accrued expenses | 528,654 | |
Collateral on securities loaned, at value | 10,250,000 | |
Total liabilities | | 17,193,505 |
| | |
Net Assets | | $ 611,519,225 |
Net Assets consist of: | | |
Paid in capital | | $ 493,577,921 |
Undistributed net investment income | | 857,419 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (6,628,347) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 123,712,232 |
Net Assets | | $ 611,519,225 |
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, 2008 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($264,548,786 ÷ 9,383,110 shares) | | $ 28.19 |
| | |
Maximum offering price per share (100/94.25 of $28.19) | | $ 29.91 |
Class T:
Net Asset Value and redemption price per share ($121,757,710 ÷ 4,347,137 shares) | | $ 28.01 |
| | |
Maximum offering price per share (100/96.50 of $28.01) | | $ 29.03 |
Class B:
Net Asset Value and offering price per share ($40,903,803 ÷ 1,484,561 shares)A | | $ 27.55 |
| | |
Class C:
Net Asset Value and offering price per share ($112,705,083 ÷ 4,090,526 shares)A | | $ 27.55 |
| | |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($71,603,843 ÷ 2,519,588 shares) | | $ 28.42 |
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, 2008 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 5,747,136 |
Interest | | 2,104 |
Income from Fidelity Central Funds | | 431,326 |
| | 6,180,566 |
Less foreign taxes withheld | | (406,982) |
Total income | | 5,773,584 |
| | |
Expenses | | |
Management fee | $ 2,184,395 | |
Transfer agent fees | 775,459 | |
Distribution fees | 1,276,178 | |
Accounting and security lending fees | 138,853 | |
Custodian fees and expenses | 308,512 | |
Independent trustees' compensation | 1,078 | |
Registration fees | 99,597 | |
Audit | 45,130 | |
Legal | 724 | |
Miscellaneous | 65,353 | |
Total expenses before reductions | 4,895,279 | |
Expense reductions | (142,035) | 4,753,244 |
Net investment income (loss) | | 1,020,340 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers (net of foreign taxes of $139,275) | (4,564,989) | |
Foreign currency transactions | (49,243) | |
Total net realized gain (loss) | | (4,614,232) |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of decrease in deferred foreign taxes of $594,443) | (61,012,069) | |
Assets and liabilities in foreign currencies | (7,588) | |
Total change in net unrealized appreciation (depreciation) | | (61,019,657) |
Net gain (loss) | | (65,633,889) |
Net increase (decrease) in net assets resulting from operations | | $ (64,613,549) |
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, 2008
(Unaudited) | Year ended
October 31,
2007 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 1,020,340 | $ 283,224 |
Net realized gain (loss) | (4,614,232) | 14,302,889 |
Change in net unrealized appreciation (depreciation) | (61,019,657) | 159,302,591 |
Net increase (decrease) in net assets resulting
from operations | (64,613,549) | 173,888,704 |
Distributions to shareholders from net investment income | (301,017) | (135,949) |
Distributions to shareholders from net realized gain | (13,232,504) | - |
Total distributions | (13,533,521) | (135,949) |
Share transactions - net increase (decrease) | 152,748,605 | 182,659,550 |
Redemption fees | 192,292 | 114,351 |
Total increase (decrease) in net assets | 74,793,827 | 356,526,656 |
| | |
Net Assets | | |
Beginning of period | 536,725,398 | 180,198,742 |
End of period (including undistributed net investment income of $857,419 and undistributed net investment income of $147,275, respectively) | $ 611,519,225 | $ 536,725,398 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended April 30, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 H |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 32.75 | $ 19.22 | $ 13.75 | $ 9.87 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | .08 | .09 | .09 | .12 | .02 |
Net realized and unrealized gain (loss) | (3.84) | 13.46 | 5.47 | 3.75 | (.16) |
Total from investment operations | (3.76) | 13.55 | 5.56 | 3.87 | (.14) |
Distributions from net investment income | (.02) | (.03) | (.11) | - | - |
Distributions from net realized gain | (.79) | - | - | - | - |
Total distributions | (.81) | (.03) | (.11) | - | - |
Redemption fees added to paid in capital E | .01 | .01 | .02 | .01 | .01 |
Net asset value, end of period | $ 28.19 | $ 32.75 | $ 19.22 | $ 13.75 | $ 9.87 |
Total Return B, C, D | (11.66)% | 70.63% | 40.75% | 39.31% | (1.30)% |
Ratios to Average Net Assets F, I | | | | |
Expenses before reductions | 1.59% A | 1.59% | 1.84% | 3.15% | 10.75% A |
Expenses net of fee waivers, if any | 1.59% A | 1.59% | 1.60% | 1.63% | 2.00% A |
Expenses net of all reductions | 1.54% A | 1.54% | 1.49% | 1.52% | 1.91% A |
Net investment income (loss) | .59% A | .36% | .51% | .95% | .28% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 264,549 | $ 218,836 | $ 68,232 | $ 9,617 | $ 1,178 |
Portfolio turnover rate G | 45% A | 48% | 48% | 54% | 101% 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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period March 29, 2004 (commencement of operations) to October 31, 2004. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements 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, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 H |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 32.52 | $ 19.10 | $ 13.69 | $ 9.86 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | .05 | .03 | .05 | .09 | - J |
Net realized and unrealized gain (loss) | (3.83) | 13.38 | 5.43 | 3.73 | (.15) |
Total from investment operations | (3.78) | 13.41 | 5.48 | 3.82 | (.15) |
Distributions from net investment income | - | - | (.09) | - | - |
Distributions from net realized gain | (.74) | - | - | - | - |
Total distributions | (.74) | - | (.09) | - | - |
Redemption fees added to paid in capital E | .01 | .01 | .02 | .01 | .01 |
Net asset value, end of period | $ 28.01 | $ 32.52 | $ 19.10 | $ 13.69 | $ 9.86 |
Total Return B, C, D | (11.77)% | 70.26% | 40.32% | 38.84% | (1.40)% |
Ratios to Average Net Assets F, I | | | | |
Expenses before reductions | 1.84% A | 1.86% | 2.12% | 3.53% | 11.13% A |
Expenses net of fee waivers, if any | 1.84% A | 1.85% | 1.85% | 1.89% | 2.25% A |
Expenses net of all reductions | 1.79% A | 1.79% | 1.74% | 1.77% | 2.16% A |
Net investment income (loss) | .34% A | .11% | .26% | .70% | .03% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 121,758 | $ 119,952 | $ 41,369 | $ 6,801 | $ 889 |
Portfolio turnover rate G | 45% A | 48% | 48% | 54% | 101% 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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period March 29, 2004 (commencement of operations) to October 31, 2004. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J 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, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 H |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 32.03 | $ 18.91 | $ 13.58 | $ 9.83 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | (.02) | (.09) | (.04) | .02 | (.03) |
Net realized and unrealized gain (loss) | (3.77) | 13.20 | 5.40 | 3.72 | (.15) |
Total from investment operations | (3.79) | 13.11 | 5.36 | 3.74 | (.18) |
Distributions from net investment income | - | - | (.05) | - | - |
Distributions from net realized gain | (.70) | - | - | - | - |
Total distributions | (.70) | - | (.05) | - | - |
Redemption fees added to paid in capital E | .01 | .01 | .02 | .01 | .01 |
Net asset value, end of period | $ 27.55 | $ 32.03 | $ 18.91 | $ 13.58 | $ 9.83 |
Total Return B, C, D | (11.98)% | 69.38% | 39.67% | 38.15% | (1.70)% |
Ratios to Average Net Assets F, I | | | | |
Expenses before reductions | 2.36% A | 2.37% | 2.66% | 4.00% | 11.49% A |
Expenses net of fee waivers, if any | 2.35% A | 2.35% | 2.35% | 2.39% | 2.75% A |
Expenses net of all reductions | 2.30% A | 2.29% | 2.24% | 2.27% | 2.67% A |
Net investment income (loss) | (.17)% A | (.39)% | (.24)% | .20% | (.47)% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 40,904 | $ 41,042 | $ 18,622 | $ 4,997 | $ 719 |
Portfolio turnover rate G | 45% A | 48% | 48% | 54% | 101% 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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period March 29, 2004 (commencement of operations) to October 31, 2004. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements 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, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 H |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 32.04 | $ 18.91 | $ 13.59 | $ 9.83 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | (.02) | (.09) | (.04) | .02 | (.03) |
Net realized and unrealized gain (loss) | (3.78) | 13.21 | 5.39 | 3.73 | (.15) |
Total from investment operations | (3.80) | 13.12 | 5.35 | 3.75 | (.18) |
Distributions from net investment income | - | - | (.05) | - | - |
Distributions from net realized gain | (.70) | - | - | - | - |
Total distributions | (.70) | - | (.05) | - | - |
Redemption fees added to paid in capital E | .01 | .01 | .02 | .01 | .01 |
Net asset value, end of period | $ 27.55 | $ 32.04 | $ 18.91 | $ 13.59 | $ 9.83 |
Total Return B, C, D | (12.01)% | 69.43% | 39.59% | 38.25% | (1.70)% |
Ratios to Average Net Assets F, I | | | | |
Expenses before reductions | 2.34% A | 2.34% | 2.58% | 4.09% | 11.58% A |
Expenses net of fee waivers, if any | 2.34% A | 2.34% | 2.35% | 2.39% | 2.75% A |
Expenses net of all reductions | 2.29% A | 2.29% | 2.24% | 2.28% | 2.66% A |
Net investment income (loss) | (.16)% A | (.39)% | (.24)% | .19% | (.47)% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 112,705 | $ 104,885 | $ 42,805 | $ 5,890 | $ 1,105 |
Portfolio turnover rate G | 45% A | 48% | 48% | 54% | 101% 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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period March 29, 2004 (commencement of operations) to October 31, 2004. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements 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, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 G |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 33.02 | $ 19.34 | $ 13.80 | $ 9.89 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss) D | .13 | .18 | .14 | .14 | .03 |
Net realized and unrealized gain (loss) | (3.86) | 13.55 | 5.49 | 3.76 | (.15) |
Total from investment operations | (3.73) | 13.73 | 5.63 | 3.90 | (.12) |
Distributions from net investment income | (.09) | (.06) | (.11) | - | - |
Distributions from net realized gain | (.79) | - | - | - | - |
Total distributions | (.88) | (.06) | (.11) | - | - |
Redemption fees added to paid in capital D | .01 | .01 | .02 | .01 | .01 |
Net asset value, end of period | $ 28.42 | $ 33.02 | $ 19.34 | $ 13.80 | $ 9.89 |
Total Return B, C | (11.49)% | 71.23% | 41.11% | 39.53% | (1.10)% |
Ratios to Average Net Assets E, H | | | | |
Expenses before reductions | 1.27% A | 1.25% | 1.47% | 3.05% | 10.37% A |
Expenses net of fee waivers, if any | 1.27% A | 1.25% | 1.35% | 1.41% | 1.75% A |
Expenses net of all reductions | 1.22% A | 1.19% | 1.24% | 1.30% | 1.66% A |
Net investment income (loss) | .92% A | .71% | .75% | 1.17% | .53% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 71,604 | $ 52,011 | $ 9,172 | $ 1,610 | $ 529 |
Portfolio turnover rate F | 45% A | 48% | 48% | 54% | 101% 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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G For the period March 29, 2004 (commencement of operations) to October 31, 2004. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements 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, 2008 (Unaudited)
1. Organization.
Fidelity Advisor Emerging Markets 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.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
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. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued and net asset value (NAV) per share is calculated (NAV calculation) as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Debt securities, including restricted securities, for which quotations are readily available, are valued by independent pricing services or by dealers who make markets in such securities. Pricing services consider yield or price of bonds of comparable quality, coupon, maturity and type as well as available dealer supplied prices. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or do not accurately reflect fair value, valuations may be determined in accordance with procedures adopted by the Board of Trustees. For example, when developments occur between the close of a market and the close of the NYSE that may materially affect the value of some or all of the securities, or when trading in a security is halted, those securities may be fair valued. Factors used in the determination of fair value may include monitoring news to identify significant market or security specific events such as changes in the value of U.S. securities markets, reviewing developments in foreign markets and evaluating the performance of ADRs, futures contracts and exchange-traded funds. Because the Fund's utilization of fair value pricing depends on market activity, the frequency with which fair value pricing is used cannot be predicted and may be utilized to a significant extent. The value of securities used for NAV calculation under fair value pricing may differ from published prices for the same securities.
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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Foreign Currency - continued
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. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV for processing shareholder transactions includes trades executed through the end of the prior business day. 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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. 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 each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 147,879,839 | |
Unrealized depreciation | (24,648,437) | |
Net unrealized appreciation (depreciation) | $ 123,231,402 | |
Cost for federal income tax purposes | $ 499,866,697 | |
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.
New Accounting Pronouncement. In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and results in expanded disclosures about fair value measurements.
4. Operating Policies.
Repurchase Agreements. 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 which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Operating Policies - continued
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 at the end of the Fund's Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $242,882,742 and $117,804,147, respectively.
6. 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 .26% 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 .81% 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. 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 and the total amounts paid to and retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC |
Class A | -% | .25% | $ 286,455 | $ 49,331 |
Class T | .25% | .25% | 281,476 | 18,477 |
Class B | .75% | .25% | 193,370 | 145,599 |
Class C | .75% | .25% | 514,877 | 201,001 |
| | | $ 1,276,178 | $ 414,408 |
Semiannual Report
6. 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, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges 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, 1.00% to .50% for certain purchases of Class A shares and ..25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 141,814 |
Class T | 26,358 |
Class B* | 29,255 |
Class C* | 19,473 |
| $ 216,900 |
* 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 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 shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each class to FIIOC were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 335,775 | .29 |
Class T | 164,856 | .29 |
Class B | 60,079 | .31 |
Class C | 151,424 | .29 |
Institutional Class | 63,325 | .22 |
| $ 775,459 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $4.2 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, which amounted to $512 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, 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. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $37,925.
9. Expense Reductions.
FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense
Limitations | Reimbursement
from adviser |
Class B | 2.35% | $ 2,236 |
Semiannual Report
9. Expense Reductions - continued
Many of the brokers with whom FMR places trades on behalf of the Fund provided services in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $139,492 for the period. 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. During the period, these credits reduced the Fund's custody expenses by $11. During the period, credits reduced each class' transfer agent expense as noted in the table below.
| Transfer Agent
expense reduction | |
Class A | $ 221 | |
Institutional Class | 75 | |
| $ 296 | |
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
In December 2006, the Independent Trustees, with the assistance of independent counsel, completed an investigation regarding gifts, gratuities and business entertainment provided by certain brokers to certain individuals who were employed on FMR's domestic equity trading desk during the period 2002 to 2004. The Independent Trustees and FMR agreed that, despite the absence of proof that the Fidelity mutual funds experienced diminished execution quality as a result of the improper receipt of gifts and business entertainment, the conduct at issue was serious and was worthy of redress. Accordingly, the Independent Trustees requested, and FMR agreed to make, a payment of $42 million plus accrued interest, which equaled approximately $7.3 million, to certain Fidelity mutual funds.
In March 2008, the Trustees approved a method for allocating this payment among the funds and, in total, FMR paid the fund $3, which is recorded in the accompanying Statement of Operations.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Other - continued
In a related administrative order dated March 5, 2008, the U.S. Securities and Exchange Commission ("SEC") announced a settlement with FMR and FMR Co., Inc. (an affiliate of FMR) involving the SEC's regulatory rules for investment advisers and the improper receipt of gifts, gratuities and business entertainment. Without admitting or denying the SEC's findings, FMR agreed to pay an $8 million civil penalty to the United States Treasury.
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30, 2008 | Year ended
October 31, 2007 |
From net investment income | | |
Class A | $ 145,458 | $ 107,461 |
Institutional Class | 155,559 | 28,488 |
Total | $ 301,017 | $ 135,949 |
From net realized gain | | |
Class A | $ 5,709,191 | $ - |
Class T | 2,804,169 | - |
Class B | 932,421 | - |
Class C | 2,429,909 | - |
Institutional Class | 1,356,814 | - |
Total | $ 13,232,504 | $ - |
Semiannual Report
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended April 30,
2008 | Year ended
October 31, 2007 | Six months ended April 30,
2008 | Year ended
October 31, 2007 |
Class A | | | | |
Shares sold | 4,050,804 | 4,642,561 | $ 114,440,351 | $ 115,951,246 |
Reinvestment of distributions | 176,536 | 4,531 | 5,409,067 | 93,931 |
Shares redeemed | (1,525,265) | (1,516,681) | (42,192,363) | (35,427,581) |
Net increase (decrease) | 2,702,075 | 3,130,411 | $ 77,657,055 | $ 80,617,596 |
Class T | | | | |
Shares sold | 1,354,524 | 2,453,317 | $ 38,057,529 | $ 60,760,054 |
Reinvestment of distributions | 87,947 | - | 2,678,875 | - |
Shares redeemed | (784,038) | (930,237) | (21,998,123) | (21,865,345) |
Net increase (decrease) | 658,433 | 1,523,080 | $ 18,738,281 | $ 38,894,709 |
Class B | | | | |
Shares sold | 382,041 | 569,930 | $ 10,583,635 | $ 13,827,872 |
Reinvestment of distributions | 27,094 | - | 813,622 | - |
Shares redeemed | (205,732) | (273,651) | (5,551,169) | (6,330,619) |
Net increase (decrease) | 203,403 | 296,279 | $ 5,846,088 | $ 7,497,253 |
Class C | | | | |
Shares sold | 1,280,394 | 1,627,896 | $ 35,599,016 | $ 39,785,213 |
Reinvestment of distributions | 66,963 | - | 2,010,914 | - |
Shares redeemed | (530,829) | (617,626) | (14,350,339) | (14,265,294) |
Net increase (decrease) | 816,528 | 1,010,270 | $ 23,259,591 | $ 25,519,919 |
Institutional Class | | | | |
Shares sold | 1,271,831 | 1,365,554 | $ 36,327,412 | $ 36,368,938 |
Reinvestment of distributions | 30,004 | 877 | 925,013 | 18,267 |
Shares redeemed | (357,348) | (265,597) | (10,004,835) | (6,257,132) |
Net increase (decrease) | 944,487 | 1,100,834 | $ 27,247,590 | $ 30,130,073 |
Semiannual Report
A special meeting of the fund's shareholders was held on May 14, 2008. The results of votes taken among shareholders on the proposals before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1 |
To elect a Board of Trustees.A |
| # of
Votes | % of
Votes |
James C. Curvey |
Affirmative | 8,514,961,004.35 | 97.348 |
Withheld | 231,994,591.94 | 2.652 |
TOTAL | 8,746,955,596.29 | 100.000 |
Dennis J. Dirks |
Affirmative | 8,525,899,114.46 | 97.473 |
Withheld | 221,056,481.83 | 2.527 |
TOTAL | 8,746,955,596.29 | 100.000 |
Edward C. Johnson 3d |
Affirmative | 8,497,196,105.85 | 97.145 |
Withheld | 249,759,490.44 | 2.855 |
TOTAL | 8,746,955,596.29 | 100.000 |
Alan J. Lacy |
Affirmative | 8,522,858,760.40 | 97.438 |
Withheld | 224,096,835.89 | 2.562 |
TOTAL | 8,746,955,596.29 | 100.000 |
Ned C. Lautenbach |
Affirmative | 8,523,008,335.52 | 97.440 |
Withheld | 223,947,260.77 | 2.560 |
TOTAL | 8,746,955,596.29 | 100.000 |
Joseph Mauriello |
Affirmative | 8,524,890,199.58 | 97.461 |
Withheld | 222,065,396.71 | 2.539 |
TOTAL | 8,746,955,596.29 | 100.000 |
Cornelia M. Small |
Affirmative | 8,525,649,323.51 | 97.470 |
Withheld | 221,306,272.78 | 2.530 |
TOTAL | 8,746,955,596.29 | 100.000 |
| # of
Votes | % of
Votes |
William S. Stavropoulos |
Affirmative | 8,514,682,431.03 | 97.345 |
Withheld | 232,273,165.26 | 2.655 |
TOTAL | 8,746,955,596.29 | 100.000 |
David M. Thomas |
Affirmative | 8,526,972,729.02 | 97.485 |
Withheld | 219,982,867.27 | 2.515 |
TOTAL | 8,746,955,596.29 | 100.000 |
Michael E. Wiley |
Affirmative | 8,523,710,850.33 | 97.448 |
Withheld | 223,244,745.96 | 2.552 |
TOTAL | 8,746,955,596.29 | 100.000 |
PROPOSAL 2 |
To amend the Declaration of Trust of Fidelity Advisor Series VIII to reduce the required quorum for future shareholder meetings.A |
| # of
Votes | % of
Votes |
Affirmative | 4,574,398,791.46 | 52.297 |
Against | 2,140,778,913.08 | 24.475 |
Abstain | 230,752,610.67 | 2.638 |
Broker
Non-Votes | 1,801,025,281.08 | 20.590 |
TOTAL | 8,746,955,596.29 | 100.000 |
A Denotes trust-wide proposal and voting results.
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 Research & Analysis Company
Fidelity International
Investment Advisors
Fidelity Investments Japan Limited
Fidelity International Investment Advisors (U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
JPMorgan Chase Bank
New York, NY
FAEM-USAN-0608 1.800637.104
(Fidelity Investment logo)(registered trademark)
Fidelity® Advisor
Emerging Markets
Fund - Institutional Class
Semiannual Report
April 30, 2008
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | Ned Johnson's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
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. |
Proxy Voting Results | <Click Here> | |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
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 LLC or an affiliated company.
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.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
Continuation of a credit squeeze, flat consumer spending and a potential recession weighed heavily on stocks in the opening months of 2008, though positive results in investment-grade bonds and money markets offered some comfort to investors. Financial markets are always unpredictable, but there are a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 1, 2007 to April 30, 2008).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Semiannual Report
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
|
Beginning
Account Value
November 1, 2007
|
Ending
Account Value
April 30, 2008
| Expenses Paid
During Period*
November 1, 2007
to April 30, 2008 |
Class A | | | |
Actual | $ 1,000.00 | $ 883.40 | $ 7.45 |
HypotheticalA | $ 1,000.00 | $ 1,016.96 | $ 7.97 |
Class T | | | |
Actual | $ 1,000.00 | $ 882.30 | $ 8.61 |
HypotheticalA | $ 1,000.00 | $ 1,015.71 | $ 9.22 |
Class B | | | |
Actual | $ 1,000.00 | $ 880.20 | $ 10.99 |
HypotheticalA | $ 1,000.00 | $ 1,013.18 | $ 11.76 |
Class C | | | |
Actual | $ 1,000.00 | $ 879.90 | $ 10.94 |
HypotheticalA | $ 1,000.00 | $ 1,013.23 | $ 11.71 |
Institutional Class | | | |
Actual | $ 1,000.00 | $ 885.10 | $ 5.95 |
HypotheticalA | $ 1,000.00 | $ 1,018.55 | $ 6.37 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
| Annualized
Expense Ratio |
Class A | 1.59% |
Class T | 1.84% |
Class B | 2.35% |
Class C | 2.34% |
Institutional Class | 1.27% |
Semiannual Report
Investment Changes (Unaudited)
Top Five Stocks as of April 30, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Petroleo Brasileiro SA - Petrobras (PN) (non-vtg.) (Brazil, Oil, Gas & Consumable Fuels) | 4.7 | 3.2 |
OAO Gazprom sponsored ADR (Russia, Oil, Gas & Consumable Fuels) | 3.9 | 3.5 |
China Mobile (Hong Kong) Ltd. (Hong Kong, Wireless Telecommunication Services) | 3.5 | 3.6 |
Companhia Vale do Rio Doce (PN-A) sponsored ADR (Brazil, Metals & Mining) | 3.3 | 3.4 |
Samsung Electronics Co. Ltd. (Korea (South), Semiconductors & Semiconductor Equipment) | 3.1 | 1.7 |
| 18.5 | |
Top Five Market Sectors as of April 30, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 21.0 | 20.3 |
Energy | 20.0 | 16.6 |
Materials | 16.9 | 17.9 |
Telecommunication Services | 9.0 | 10.2 |
Industrials | 9.1 | 13.0 |
Top Five Countries as of April 30, 2008 |
(excluding cash equivalents) | % of fund's
net assets | % of fund's net assets
6 months ago |
Brazil | 13.9 | 13.7 |
Russia | 12.6 | 10.6 |
Korea (South) | 11.3 | 13.5 |
South Africa | 6.6 | 6.3 |
Hong Kong | 6.0 | 6.8 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) |
As of April 30, 2008 | As of October 31, 2007 |
| Stocks and Investment Companies 94.8% | | | Stocks and Investment Companies 97.1% | |
| Short-Term
Investments and
Net Other Assets 5.2% | | | Short-Term
Investments and
Net Other Assets 2.9% | |
Semiannual Report
Investments April 30, 2008 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 94.6% |
| Shares | | Value |
Argentina - 0.1% |
Banco Macro SA sponsored ADR | 36,100 | | $ 815,860 |
Australia - 0.0% |
Sino Gold Mining Ltd. (a) | 37,953 | | 179,354 |
Austria - 1.1% |
Erste Bank AG | 47,400 | | 3,529,616 |
Raiffeisen International Bank Holding AG | 18,374 | | 2,985,968 |
TOTAL AUSTRIA | | 6,515,584 |
Bahrain - 0.3% |
Gulf Finance House BSC: | | | |
unit (e) | 32,010 | | 1,232,385 |
(Reg. S) unit | 13,000 | | 500,500 |
TOTAL BAHRAIN | | 1,732,885 |
Bermuda - 1.7% |
Aquarius Platinum Ltd. (Australia) | 129,900 | | 2,075,627 |
C C Land Holdings Ltd. | 762,000 | | 839,915 |
Central European Media Enterprises Ltd. Class A (a) | 22,100 | | 2,343,042 |
Credicorp Ltd. (NY Shares) | 15,600 | | 1,253,616 |
Dufry South America Ltd. unit | 27,668 | | 556,789 |
FerroChina Ltd. | 353,000 | | 369,634 |
Pacific Basin Shipping Ltd. | 1,138,000 | | 2,082,326 |
Samling Global Ltd. | 2,207,000 | | 407,804 |
Sinofert Holdings Ltd. | 800,100 | | 610,869 |
TOTAL BERMUDA | | 10,539,622 |
Brazil - 13.9% |
All America Latina Logistica SA unit | 114,600 | | 1,496,102 |
Anhanguera Educacional Participacoes SA unit (a) | 12,509 | | 205,373 |
Banco Bradesco SA: | | | |
(PN) | 189,600 | | 4,391,529 |
(PN) sponsored ADR | 154,200 | | 3,481,836 |
Banco Daycoval SA (PN) | 53,600 | | 403,080 |
Banco do Brasil SA | 184,000 | | 3,188,064 |
Banco Indusval SA | 20,080 | | 193,286 |
Companhia de Saneamento de Minas Gerais | 67,500 | | 1,120,804 |
Companhia Vale do Rio Doce (PN-A) sponsored ADR | 643,400 | | 20,485,856 |
Gafisa SA: | | | |
sponsored ADR (d) | 21,700 | | 945,035 |
warrants 12/28/07 (a) | 32,000 | | 696,800 |
GVT Holding SA (a) | 67,100 | | 1,630,875 |
Localiza Rent a Car SA | 122,700 | | 1,601,847 |
Common Stocks - continued |
| Shares | | Value |
Brazil - continued |
MMX Mineracao e Metalicos SA (a) | 22,000 | | $ 738,539 |
MRV Engenharia e Participacoes SA | 87,000 | | 1,753,399 |
Multiplan Empreendimentos Imobiliarios SA | 35,100 | | 443,448 |
Net Servicos de Comunicacao SA sponsored ADR (d) | 207,666 | | 2,834,641 |
Petroleo Brasileiro SA - Petrobras: | | | |
(PN) (non-vtg.) | 760,400 | | 19,460,604 |
(PN) sponsored ADR (non-vtg.) | 89,600 | | 9,058,560 |
sponsored ADR | 27,800 | | 3,375,476 |
SEB - Sistema Educacional Brasileiro SA unit (a) | 16,800 | | 229,431 |
SLC Agricola SA | 19,900 | | 377,121 |
Tegma Gestao Logistica | 31,400 | | 336,253 |
Uniao de Bancos Brasileiros SA (Unibanco): | | | |
unit | 115,500 | | 1,723,258 |
GDR | 30,600 | | 4,449,546 |
Weg SA | 30,900 | | 369,937 |
TOTAL BRAZIL | | 84,990,700 |
British Virgin Islands - 0.1% |
Thunderbird Resorts, Inc. (a)(e) | 27,300 | | 245,700 |
Titanium Resources Group Ltd. (a) | 87,100 | | 75,332 |
TOTAL BRITISH VIRGIN ISLANDS | | 321,032 |
Canada - 0.7% |
Addax Petroleum, Inc. | 7,900 | | 352,052 |
Addax Petroleum, Inc. (e) | 4,700 | | 209,449 |
Aurelian Resources, Inc. (a) | 70,400 | | 286,605 |
Eastern Platinum Ltd. (a) | 337,300 | | 971,274 |
First Quantum Minerals Ltd. | 14,400 | | 1,264,415 |
Ivanhoe Mines Ltd. (a) | 52,000 | | 497,746 |
JumpTV, Inc. | 85,100 | | 75,205 |
SouthGobi Energy Resources Ltd. (a) | 48,000 | | 619,601 |
TOTAL CANADA | | 4,276,347 |
Cayman Islands - 1.2% |
Chaoda Modern Agriculture (Holdings) Ltd. | 2,245,218 | | 3,226,737 |
China Aoyuan Property Group Ltd. | 45,000 | | 17,496 |
CNinsure, Inc. ADR | 2,200 | | 30,910 |
Giant Interactive Group, Inc. ADR (d) | 6,800 | | 110,840 |
Hidili Industry International Development Ltd. | 187,000 | | 285,546 |
Integra Group Holdings unit (a) | 34,000 | | 442,000 |
Lee & Man Paper Manufacturing Ltd. | 629,200 | | 1,170,695 |
NagaCorp Ltd. | 582,000 | | 143,387 |
Neo-Neon Holdings Ltd. | 425,000 | | 275,947 |
Common Stocks - continued |
| Shares | | Value |
Cayman Islands - continued |
Xinyuan Real Estate Co. Ltd. ADR | 95,320 | | $ 860,740 |
Yingli Green Energy Holding Co. Ltd. ADR (d) | 13,700 | | 301,811 |
Zhong An Real Estate Ltd. | 410,000 | | 190,449 |
TOTAL CAYMAN ISLANDS | | 7,056,558 |
Chile - 0.2% |
Lan Airlines SA sponsored ADR | 104,700 | | 1,385,181 |
China - 5.1% |
Anhui Conch Cement Co. Ltd. (H Shares) | 270,000 | | 2,158,434 |
China Coal Energy Co. Ltd. (H Shares) | 1,764,300 | | 3,735,454 |
China Communications Construction Co. Ltd. (H Shares) | 1,339,000 | | 3,182,061 |
China Construction Bank Corp. (H Shares) | 8,920,000 | | 8,057,948 |
China Hongxing Sports Ltd. | 330,000 | | 165,475 |
Digital China Holdings Ltd. (H Shares) | 274,000 | | 172,280 |
First Tractor Co. Ltd. (H Shares) (a) | 736,500 | | 361,013 |
Golden Eagle Retail Group Ltd. (H Shares) | 514,000 | | 521,047 |
Industrial & Commercial Bank of China | 9,434,000 | | 7,469,095 |
Parkson Retail Group Ltd. | 64,500 | | 607,909 |
Ping An Insurance (Group) Co. of China, Ltd. (H Shares) | 440,000 | | 4,175,205 |
Yantai Changyu Pioneer Wine Co. (B Shares) | 54,990 | | 381,740 |
TOTAL CHINA | | 30,987,661 |
Cyprus - 0.4% |
Mirland Development Corp. PLC (a) | 116,915 | | 1,069,299 |
XXI Century Investments Public Ltd. (a) | 54,500 | | 1,554,961 |
TOTAL CYPRUS | | 2,624,260 |
Czech Republic - 0.9% |
Ceske Energeticke Zavody AS | 70,600 | | 5,246,456 |
Egypt - 1.2% |
Commercial International Bank Ltd. sponsored GDR | 114,700 | | 1,993,486 |
Eastern Tobacco Co. | 14,300 | | 1,034,214 |
Orascom Construction Industries SAE: | | | |
GDR | 13,744 | | 2,219,656 |
GDR (e) | 400 | | 64,600 |
Orascom Hotels & Development (OHD) (a) | 96,336 | | 1,518,509 |
Telecom Egypt SAE | 145,400 | | 526,864 |
TOTAL EGYPT | | 7,357,329 |
Georgia - 0.1% |
Bank of Georgia unit (a) | 27,800 | | 665,532 |
Common Stocks - continued |
| Shares | | Value |
Hong Kong - 6.0% |
China Mobile (Hong Kong) Ltd. | 1,258,200 | | $ 21,650,375 |
China Overseas Land & Investment Ltd. | 880,000 | | 1,851,883 |
China Overseas Land & Investment Ltd. warrants 8/27/08 (a) | 14,666 | | 7,904 |
China Resources Power Holdings Co. Ltd. | 529,700 | | 1,341,727 |
CNOOC Ltd. | 3,343,000 | | 5,934,112 |
CNOOC Ltd. sponsored ADR | 9,000 | | 1,597,950 |
CNPC (Hong Kong) Ltd. | 4,001,000 | | 1,925,248 |
REXCAPITAL Financial Holdings Ltd. (a) | 5,645,000 | | 659,162 |
Shanghai Industrial Holdings Ltd. (H Shares) | 268,000 | | 1,110,770 |
Sinotrans Shipping Ltd. | 915,500 | | 561,530 |
TOTAL HONG KONG | | 36,640,661 |
India - 5.3% |
Axis Bank Ltd. | 31,800 | | 726,054 |
Axis Bank Ltd. GDR (Reg. S) | 15,100 | | 351,075 |
Bank of India | 191,000 | | 1,616,299 |
Bharat Heavy Electricals Ltd. | 37,752 | | 1,775,277 |
Bharti Airtel Ltd. (a) | 90,875 | | 2,018,009 |
Blue Star Ltd. | 54,795 | | 597,462 |
Educomp Solutions Ltd. | 5,946 | | 589,198 |
Federal Bank Ltd. | 28,798 | | 171,400 |
Federal Bank Ltd.: | | | |
GDR | 23,402 | | 140,098 |
GDR (e) | 18,000 | | 107,758 |
HCL Technologies Ltd. | 144,919 | | 1,033,421 |
Housing Development Finance Corp. Ltd. | 38,000 | | 2,630,408 |
Indiabulls Real Estate Ltd. (a) | 28,000 | | 379,956 |
Indiabulls Real Estate Ltd. sponsored GDR (a)(e) | 51,448 | | 702,221 |
Indian Overseas Bank | 322,507 | | 1,209,968 |
Jaiprakash Associates Ltd. | 218,600 | | 1,468,322 |
JSW Steel Ltd. | 56,112 | | 1,214,142 |
LANCO Infratech Ltd. (a) | 92,521 | | 1,229,077 |
Larsen & Toubro Ltd. | 28,915 | | 2,146,823 |
Pantaloon Retail India Ltd. | 35,450 | | 463,498 |
Reliance Industries Ltd. | 93,542 | | 6,046,120 |
Rolta India Ltd. | 147,786 | | 1,239,831 |
Sintex Industries Ltd. | 101,954 | | 1,165,351 |
State Bank of India | 48,898 | | 2,207,857 |
Tata Power Co. Ltd. | 39,507 | | 1,363,407 |
TOTAL INDIA | | 32,593,032 |
Common Stocks - continued |
| Shares | | Value |
Indonesia - 3.6% |
PT Astra Agro Lestari Tbk | 620,000 | | $ 1,593,535 |
PT Astra International Tbk | 1,317,000 | | 2,856,520 |
PT Bank Mandiri Persero Tbk | 5,301,000 | | 1,652,788 |
PT Bank Niaga Tbk | 7,737,500 | | 570,599 |
PT Bank Rakyat Indonesia Tbk | 2,650,000 | | 1,709,954 |
PT Bumi Resources Tbk | 9,453,000 | | 6,817,307 |
PT Indocement Tunggal Prakarsa Tbk | 707,000 | | 429,367 |
PT International Nickel Indonesia Tbk | 3,088,500 | | 2,227,362 |
PT Perusahaan Gas Negara Tbk Series B | 2,021,000 | | 2,651,998 |
PT Perusahaan Perkebunan London Sumatra Indonesia Tbk (a) | 1,223,000 | | 1,213,582 |
TOTAL INDONESIA | | 21,723,012 |
Ireland - 0.1% |
Dragon Oil PLC (a) | 75,515 | | 747,711 |
Israel - 1.5% |
Check Point Software Technologies Ltd. (a) | 93,000 | | 2,196,660 |
Israel Chemicals Ltd. | 349,100 | | 6,427,031 |
Ormat Industries Ltd. | 41,500 | | 540,640 |
Orpak Systems Ltd. | 19,400 | | 61,715 |
Queenco Leisure International Ltd. GDR (a)(e) | 12,300 | | 175,310 |
TOTAL ISRAEL | | 9,401,356 |
Kazakhstan - 0.6% |
JSC Halyk Bank of Kazakhstan: | | | |
GDR (e) | 25,900 | | 416,990 |
unit | 76,990 | | 1,239,539 |
KazMunaiGas Exploration & Production JSC (Reg. S) GDR | 59,777 | | 1,757,444 |
TOTAL KAZAKHSTAN | | 3,413,973 |
Korea (South) - 11.3% |
CJ CheilJedang Corp. (a) | 3,690 | | 937,902 |
Daelim Industrial Co. | 8,330 | | 1,125,059 |
Doosan Co. Ltd. (a) | 15,051 | | 2,587,888 |
GS Engineering & Construction Corp. | 18,300 | | 2,690,507 |
GS Holdings Corp. | 40 | | 1,601 |
Hanil Cement Co. Ltd. | 1,520 | | 144,235 |
Hanjin Heavy Industries & Consolidated Co. Ltd. | 25,461 | | 1,459,266 |
Hyundai Engineering & Construction Co. Ltd. | 26,608 | | 2,445,312 |
Hyundai Heavy Industries Co. Ltd. | 7,990 | | 2,851,155 |
Hyundai Steel Co. | 14,610 | | 1,148,995 |
Kookmin Bank | 78,994 | | 5,503,796 |
Kyeryong Construction Industrial Co. Ltd. | 29,520 | | 1,081,346 |
Common Stocks - continued |
| Shares | | Value |
Korea (South) - continued |
LG Display Co. Ltd. sponsored ADR (d) | 36,600 | | $ 796,782 |
LG Electronics, Inc. | 30,030 | | 4,684,473 |
LG Household & Health Care Ltd. | 10,040 | | 2,076,552 |
MegaStudy Co. Ltd. | 8,804 | | 2,904,685 |
NHN Corp. (a) | 11,632 | | 2,701,477 |
POSCO | 4,420 | | 2,160,988 |
Samsung Electronics Co. Ltd. | 26,671 | | 18,901,660 |
Samsung Fire & Marine Insurance Co. Ltd. | 12,400 | | 2,706,804 |
Shinhan Financial Group Co. Ltd. | 109,150 | | 6,301,842 |
SK Chemicals Co. Ltd. | 9,013 | | 573,167 |
SK Energy Co. Ltd. | 17,424 | | 2,136,210 |
Taewoong Co. Ltd. | 13,645 | | 1,436,245 |
TOTAL KOREA (SOUTH) | | 69,357,947 |
Lebanon - 0.1% |
Solidere GDR | 14,600 | | 358,138 |
Luxembourg - 0.8% |
Evraz Group SA GDR | 44,700 | | 4,637,625 |
Malaysia - 1.5% |
Bandar Raya Developments Bhd | 623,000 | | 402,317 |
DiGi.com Bhd | 102,200 | | 786,154 |
Gamuda Bhd | 1,096,900 | | 1,083,358 |
Genting Bhd | 698,600 | | 1,415,334 |
IJM Corp. Bhd | 160,000 | | 291,231 |
KNM Group Bhd | 663,400 | | 1,344,020 |
Parkson Holdings Bhd (a) | 192,790 | | 427,202 |
Public Bank Bhd | 828,000 | | 2,988,034 |
UEM World Bhd | 381,900 | | 394,110 |
TOTAL MALAYSIA | | 9,131,760 |
Mauritius - 0.1% |
Golden Agri-Resources Ltd. | 912,000 | | 571,639 |
Mexico - 3.8% |
Alsea SAB de CV | 318,900 | | 420,487 |
America Movil SAB de CV Series L sponsored ADR | 215,900 | | 12,513,564 |
Banco Compartamos SA de CV | 131,800 | | 553,651 |
Desarrolladora Homex Sab de CV sponsored ADR (a)(d) | 23,100 | | 1,376,298 |
Grupo Aeroportuario Norte Sab de CV ADR | 47,000 | | 1,022,250 |
Grupo Financiero Banorte SA de CV Series O | 449,100 | | 1,982,869 |
Grupo Mexico SA de CV Series B | 393,768 | | 2,878,340 |
Common Stocks - continued |
| Shares | | Value |
Mexico - continued |
Megacable Holdings SAB de CV unit | 235,800 | | $ 694,670 |
Urbi, Desarrollos Urbanos, SA de CV (a) | 549,500 | | 1,760,810 |
TOTAL MEXICO | | 23,202,939 |
Netherlands - 0.0% |
A&D Pharma Holdings NV (Reg. S) unit | 4,200 | | 42,618 |
Nigeria - 0.2% |
Guaranty Trust Bank PLC: | | | |
(Reg. S) unit | 81,000 | | 1,014,930 |
sponsored GDR (e) | 31,600 | | 395,948 |
TOTAL NIGERIA | | 1,410,878 |
Oman - 0.4% |
BankMuscat SAOG sponsored: | | | |
GDR (e) | 7,562 | | 156,912 |
GDR | 107,270 | | 2,225,853 |
TOTAL OMAN | | 2,382,765 |
Pakistan - 0.2% |
MCB Bank Ltd. | 22,195 | | 142,540 |
MCB Bank Ltd.: | | | |
unit (e) | 22,770 | | 293,146 |
GDR | 42,000 | | 540,717 |
TOTAL PAKISTAN | | 976,403 |
Panama - 0.1% |
Intergroup Financial Services Corp. (e) | 16,076 | | 334,381 |
Peru - 0.1% |
Compania de Minas Buenaventura SA sponsored ADR | 7,300 | | 456,761 |
Philippines - 0.6% |
Alliance Global Group, Inc. (a) | 1,523,000 | | 140,668 |
Ayala Corp. | 62,496 | | 440,321 |
GMA Networks, Inc. unit | 569,000 | | 98,371 |
International Container Terminal Services, Inc. | 383,000 | | 276,649 |
Megaworld Corp. | 11,655,000 | | 568,604 |
PNOC Energy Development Corp. | 3,911,000 | | 481,639 |
Robinsons Land Corp. | 1,238,000 | | 315,181 |
Security Bank Corp. | 230,000 | | 326,821 |
SM Investments Corp. | 101,094 | | 598,543 |
Vista Land & Lifescapes, Inc. | 6,095,000 | | 447,472 |
TOTAL PHILIPPINES | | 3,694,269 |
Common Stocks - continued |
| Shares | | Value |
Poland - 0.2% |
BRE Bank SA (a) | 3,632 | | $ 591,263 |
Globe Trade Centre SA (a) | 54,800 | | 908,460 |
TOTAL POLAND | | 1,499,723 |
Russia - 12.6% |
Bank St. Petersburg OJSC (a) | 188,800 | | 1,057,280 |
JSC MMC 'Norilsk Nickel' sponsored ADR | 247,300 | | 6,726,560 |
LSR Group OJSC (a) | 10,200 | | 783,360 |
Lukoil Oil Co. sponsored ADR | 76,363 | | 6,857,397 |
Mechel Steel Group OAO sponsored ADR (d) | 37,500 | | 5,467,500 |
Mobile TeleSystems OJSC sponsored ADR | 62,400 | | 4,840,992 |
Novorossiysk Commercial Sea Port JSC ADR (a)(e) | 26,900 | | 416,950 |
OAO Gazprom sponsored ADR | 453,370 | | 23,983,271 |
OAO Raspadskaya (a) | 150,000 | | 1,267,500 |
OAO TatNeft unit | 27,750 | | 3,558,938 |
OAO TMK | 87,500 | | 669,375 |
OJSC Rosneft unit | 301,400 | | 2,953,720 |
Open Investments (a) | 1,588 | | 400,176 |
Rosinter Restaurants Holding | 5,000 | | 240,000 |
Sberbank (Savings Bank of the Russian Federation) | 1,068,000 | | 3,476,340 |
Sberbank (Savings Bank of the Russian Federation) GDR | 8,800 | | 3,362,847 |
Sistema-Hals JSC (a) | 1,500 | | 221,100 |
Sistema-Hals JSC unit (a) | 10,000 | | 73,700 |
Uralkali JSC (a) | 242,300 | | 2,532,035 |
Uralkali JSC GDR unit (a) | 26,200 | | 1,396,460 |
Vimpel Communications sponsored ADR | 171,500 | | 5,172,440 |
VSMPO-Avisma Corp. (a) | 1,000 | | 220,000 |
Wimm-Bill-Dann Foods OJSC sponsored ADR | 12,605 | | 1,534,029 |
TOTAL RUSSIA | | 77,211,970 |
Singapore - 0.6% |
Keppel Corp. Ltd. | 110,200 | | 838,628 |
Olam International Ltd. | 292,600 | | 586,883 |
Straits Asia Resources Ltd. | 1,017,000 | | 2,474,817 |
TOTAL SINGAPORE | | 3,900,328 |
Slovenia - 0.1% |
Nova Kreditna banka Maribor d.d. | 8,959 | | 433,423 |
South Africa - 6.5% |
African Bank Investments Ltd. | 478,347 | | 1,679,820 |
African Rainbow Minerals Ltd. | 72,626 | | 2,468,673 |
Aspen Pharmacare Holdings Ltd. | 126,859 | | 521,000 |
Common Stocks - continued |
| Shares | | Value |
South Africa - continued |
Bell Equipment Ltd. | 44,568 | | $ 256,429 |
Bidvest Group Ltd. | 100,800 | | 1,520,320 |
Blue Label Telecoms Ltd. | 438,923 | | 429,611 |
Exxaro Resources Ltd. | 148,900 | | 2,461,841 |
FirstRand Ltd. | 1,232,873 | | 2,553,673 |
Illovo Sugar Ltd. | 214,414 | | 907,524 |
Impala Platinum Holdings Ltd. | 159,664 | | 6,504,485 |
Kumba Iron Ore Ltd. | 59,000 | | 2,575,261 |
Mr. Price Group Ltd. | 167,100 | | 369,103 |
MTN Group Ltd. | 334,832 | | 6,399,559 |
Murray & Roberts Holdings Ltd. | 233,661 | | 2,735,173 |
Northam Platinum Ltd. | 64,750 | | 565,162 |
Raubex Group Ltd. | 300,028 | | 1,547,682 |
Sasol Ltd. sponsored ADR | 113,000 | | 6,401,450 |
TOTAL SOUTH AFRICA | | 39,896,766 |
Taiwan - 5.7% |
Asia Cement Corp. | 839,000 | | 1,510,048 |
AU Optronics Corp. | 1,138,000 | | 2,223,861 |
AU Optronics Corp. sponsored ADR (d) | 76,357 | | 1,490,489 |
China Steel Corp. | 2,193,920 | | 3,602,792 |
Everlight Electronics Co. Ltd. | 251,286 | | 965,612 |
First Financial Holding Co. Ltd. | 1,799,000 | | 2,186,157 |
Formosa Plastics Corp. | 608,000 | | 1,737,286 |
Foxconn Technology Co. Ltd. | 254,455 | | 1,642,184 |
High Tech Computer Corp. | 80,000 | | 2,062,567 |
Hon Hai Precision Industry Co. Ltd. (Foxconn) | 1,327,014 | | 7,692,519 |
Innolux Display Corp. | 1,090,553 | | 3,212,829 |
MediaTek, Inc. | 97,550 | | 1,265,531 |
Siliconware Precision Industries Co. Ltd. | 1,507,267 | | 2,608,850 |
Taiwan Cement Corp. | 1,761,740 | | 2,864,147 |
TOTAL TAIWAN | | 35,064,872 |
Thailand - 1.4% |
Italian-Thai Development PCL (a) | 1,045,200 | | 273,492 |
Mermaid Maritime PLC | 445,000 | | 397,058 |
Minor International PCL (For. Reg.) | 2,762,904 | | 1,393,646 |
PTT PCL (For. Reg.) | 317,000 | | 3,337,894 |
Siam Commercial Bank PCL (For. Reg.) | 978,400 | | 2,745,195 |
Total Access Communication PCL | 123,000 | | 175,890 |
Total Access Communication PCL (For. Reg.) | 262,200 | | 382,306 |
TOTAL THAILAND | | 8,705,481 |
Common Stocks - continued |
| Shares | | Value |
Turkey - 2.5% |
Anadolu Efes Biracilik ve Malt Sanyii AS | 205,646 | | $ 1,870,829 |
Asya Katilim Bankasi AS (a) | 352,500 | | 2,446,573 |
Bagfas Bandirma Gubre Fabrikalari AS | 14,609 | | 1,604,000 |
Enka Insaat ve Sanayi AS | 156,940 | | 2,166,218 |
Tekfen Holding AS | 105,000 | | 650,537 |
Tofas Turk Otomobil Fabrikasi AS | 233,000 | | 888,072 |
Tupras-Turkiye Petrol Rafinerileri AS | 101,200 | | 2,738,138 |
Turkiye Garanti Bankasi AS | 537,375 | | 2,886,847 |
TOTAL TURKEY | | 15,251,214 |
United Arab Emirates - 0.1% |
Depa Ltd. GDR (a)(e) | 23,200 | | 158,456 |
DP World Ltd. | 589,400 | | 618,870 |
TOTAL UNITED ARAB EMIRATES | | 777,326 |
United Kingdom - 0.8% |
Aricom PLC (a) | 521,300 | | 823,997 |
Aricom PLC warrants 5/6/10 (a)(f) | 12,700 | | 5,618 |
Cairn Energy PLC | 4,600 | | 286,634 |
Imperial Energy PLC (a) | 21,400 | | 464,630 |
Randgold Resources Ltd. sponsored ADR | 25,300 | | 1,151,656 |
Sibir Energy PLC | 180,615 | | 2,244,424 |
TOTAL UNITED KINGDOM | | 4,976,959 |
United States of America - 0.8% |
BMB Munai, Inc. (a) | 52,963 | | 291,297 |
Central European Distribution Corp. (a) | 13,400 | | 816,328 |
CTC Media, Inc. (a) | 54,696 | | 1,414,986 |
Freeport-McMoRan Copper & Gold, Inc. Class B | 16,000 | | 1,820,000 |
Pricesmart, Inc. | 17,970 | | 513,044 |
TOTAL UNITED STATES OF AMERICA | | 4,855,655 |
Vietnam - 0.0% |
Luks Group (Vietnam Holdings) Co. Ltd. | 290,000 | | 267,928 |
TOTAL COMMON STOCKS (Cost $454,321,951) | 578,613,874 |
Nonconvertible Preferred Stocks - 0.1% |
| | | |
Korea (South) - 0.0% |
Samsung Electronics Co. Ltd. | 320 | | 164,585 |
Nonconvertible Preferred Stocks - continued |
| Shares | | Value |
South Africa - 0.1% |
Allied Electronics Corp. Ltd. | 45,500 | | $ 217,859 |
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $407,568) | 382,444 |
Investment Companies - 0.1% |
| | | |
Romania - 0.1% |
SIF 1 Banat-Crisana Arad Fund | 190,100 | | 199,308 |
SIF 3 Transilvania Brasov Fund | 583,700 | | 380,617 |
SIF 4 Muntenia Bucuresti Fund | 164,900 | | 114,555 |
SIF 5 Oltenia Craiova Fund | 72,400 | | 88,249 |
TOTAL INVESTMENT COMPANIES (Cost $949,813) | 782,729 |
Convertible Bonds - 0.0% |
| Principal Amount | | |
Brazil - 0.0% |
Companhia de Saneamento de Minas Gerais 2.3% 6/1/13 (f)
(Cost $34,686) | BRL | $ 555 | | 36,862 |
Money Market Funds - 7.1% |
| Shares | | |
Fidelity Cash Central Fund, 2.51% (b) | 33,032,190 | | 33,032,190 |
Fidelity Securities Lending Cash Central Fund, 2.44% (b)(c) | 10,250,000 | | 10,250,000 |
TOTAL MONEY MARKET FUNDS (Cost $43,282,190) | 43,282,190 |
TOTAL INVESTMENT PORTFOLIO - 101.9% (Cost $498,996,208) | 623,098,099 |
NET OTHER ASSETS - (1.9)% | (11,578,874) |
NET ASSETS - 100% | $ 611,519,225 |
Currency Abbreviations |
BRL | - | Brazilian real |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) 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 end of the period, the value of these securities amounted to $4,910,206 or 0.8% of net assets. |
(f) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $42,480 or 0.0% of net assets. |
Additional information on each holding is as follows: |
Security | Acquisition Date | Acquisition Cost |
Aricom PLC warrants 5/6/10 | 5/11/07 | $ 0 |
Companhia de Saneamento de Minas Gerais 2.3% 6/1/13 | 8/22/07 | $ 34,686 |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 393,401 |
Fidelity Securities Lending Cash Central Fund | 37,925 |
Total | $ 431,326 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| April 30, 2008 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $10,343,851) - See accompanying schedule: Unaffiliated issuers (cost $455,714,018) | $ 579,815,909 | |
Fidelity Central Funds (cost $43,282,190) | 43,282,190 | |
Total Investments (cost $498,996,208) | | $ 623,098,099 |
Cash | | 101 |
Foreign currency held at value (cost $48,489) | | 48,496 |
Receivable for investments sold | | 2,390,575 |
Receivable for fund shares sold | | 2,122,723 |
Dividends receivable | | 899,937 |
Distributions receivable from Fidelity Central Funds | | 60,567 |
Prepaid expenses | | 938 |
Other receivables | | 91,294 |
Total assets | | 628,712,730 |
| | |
Liabilities | | |
Payable for investments purchased | $ 5,070,862 | |
Payable for fund shares redeemed | 548,080 | |
Accrued management fee | 416,286 | |
Distribution fees payable | 224,672 | |
Other affiliated payables | 154,951 | |
Other payables and accrued expenses | 528,654 | |
Collateral on securities loaned, at value | 10,250,000 | |
Total liabilities | | 17,193,505 |
| | |
Net Assets | | $ 611,519,225 |
Net Assets consist of: | | |
Paid in capital | | $ 493,577,921 |
Undistributed net investment income | | 857,419 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (6,628,347) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 123,712,232 |
Net Assets | | $ 611,519,225 |
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, 2008 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($264,548,786 ÷ 9,383,110 shares) | | $ 28.19 |
| | |
Maximum offering price per share (100/94.25 of $28.19) | | $ 29.91 |
Class T:
Net Asset Value and redemption price per share ($121,757,710 ÷ 4,347,137 shares) | | $ 28.01 |
| | |
Maximum offering price per share (100/96.50 of $28.01) | | $ 29.03 |
Class B:
Net Asset Value and offering price per share ($40,903,803 ÷ 1,484,561 shares)A | | $ 27.55 |
| | |
Class C:
Net Asset Value and offering price per share ($112,705,083 ÷ 4,090,526 shares)A | | $ 27.55 |
| | |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($71,603,843 ÷ 2,519,588 shares) | | $ 28.42 |
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, 2008 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 5,747,136 |
Interest | | 2,104 |
Income from Fidelity Central Funds | | 431,326 |
| | 6,180,566 |
Less foreign taxes withheld | | (406,982) |
Total income | | 5,773,584 |
| | |
Expenses | | |
Management fee | $ 2,184,395 | |
Transfer agent fees | 775,459 | |
Distribution fees | 1,276,178 | |
Accounting and security lending fees | 138,853 | |
Custodian fees and expenses | 308,512 | |
Independent trustees' compensation | 1,078 | |
Registration fees | 99,597 | |
Audit | 45,130 | |
Legal | 724 | |
Miscellaneous | 65,353 | |
Total expenses before reductions | 4,895,279 | |
Expense reductions | (142,035) | 4,753,244 |
Net investment income (loss) | | 1,020,340 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers (net of foreign taxes of $139,275) | (4,564,989) | |
Foreign currency transactions | (49,243) | |
Total net realized gain (loss) | | (4,614,232) |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of decrease in deferred foreign taxes of $594,443) | (61,012,069) | |
Assets and liabilities in foreign currencies | (7,588) | |
Total change in net unrealized appreciation (depreciation) | | (61,019,657) |
Net gain (loss) | | (65,633,889) |
Net increase (decrease) in net assets resulting from operations | | $ (64,613,549) |
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, 2008
(Unaudited) | Year ended
October 31,
2007 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 1,020,340 | $ 283,224 |
Net realized gain (loss) | (4,614,232) | 14,302,889 |
Change in net unrealized appreciation (depreciation) | (61,019,657) | 159,302,591 |
Net increase (decrease) in net assets resulting
from operations | (64,613,549) | 173,888,704 |
Distributions to shareholders from net investment income | (301,017) | (135,949) |
Distributions to shareholders from net realized gain | (13,232,504) | - |
Total distributions | (13,533,521) | (135,949) |
Share transactions - net increase (decrease) | 152,748,605 | 182,659,550 |
Redemption fees | 192,292 | 114,351 |
Total increase (decrease) in net assets | 74,793,827 | 356,526,656 |
| | |
Net Assets | | |
Beginning of period | 536,725,398 | 180,198,742 |
End of period (including undistributed net investment income of $857,419 and undistributed net investment income of $147,275, respectively) | $ 611,519,225 | $ 536,725,398 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended April 30, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 H |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 32.75 | $ 19.22 | $ 13.75 | $ 9.87 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | .08 | .09 | .09 | .12 | .02 |
Net realized and unrealized gain (loss) | (3.84) | 13.46 | 5.47 | 3.75 | (.16) |
Total from investment operations | (3.76) | 13.55 | 5.56 | 3.87 | (.14) |
Distributions from net investment income | (.02) | (.03) | (.11) | - | - |
Distributions from net realized gain | (.79) | - | - | - | - |
Total distributions | (.81) | (.03) | (.11) | - | - |
Redemption fees added to paid in capital E | .01 | .01 | .02 | .01 | .01 |
Net asset value, end of period | $ 28.19 | $ 32.75 | $ 19.22 | $ 13.75 | $ 9.87 |
Total Return B, C, D | (11.66)% | 70.63% | 40.75% | 39.31% | (1.30)% |
Ratios to Average Net Assets F, I | | | | |
Expenses before reductions | 1.59% A | 1.59% | 1.84% | 3.15% | 10.75% A |
Expenses net of fee waivers, if any | 1.59% A | 1.59% | 1.60% | 1.63% | 2.00% A |
Expenses net of all reductions | 1.54% A | 1.54% | 1.49% | 1.52% | 1.91% A |
Net investment income (loss) | .59% A | .36% | .51% | .95% | .28% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 264,549 | $ 218,836 | $ 68,232 | $ 9,617 | $ 1,178 |
Portfolio turnover rate G | 45% A | 48% | 48% | 54% | 101% 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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period March 29, 2004 (commencement of operations) to October 31, 2004. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements 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, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 H |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 32.52 | $ 19.10 | $ 13.69 | $ 9.86 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | .05 | .03 | .05 | .09 | - J |
Net realized and unrealized gain (loss) | (3.83) | 13.38 | 5.43 | 3.73 | (.15) |
Total from investment operations | (3.78) | 13.41 | 5.48 | 3.82 | (.15) |
Distributions from net investment income | - | - | (.09) | - | - |
Distributions from net realized gain | (.74) | - | - | - | - |
Total distributions | (.74) | - | (.09) | - | - |
Redemption fees added to paid in capital E | .01 | .01 | .02 | .01 | .01 |
Net asset value, end of period | $ 28.01 | $ 32.52 | $ 19.10 | $ 13.69 | $ 9.86 |
Total Return B, C, D | (11.77)% | 70.26% | 40.32% | 38.84% | (1.40)% |
Ratios to Average Net Assets F, I | | | | |
Expenses before reductions | 1.84% A | 1.86% | 2.12% | 3.53% | 11.13% A |
Expenses net of fee waivers, if any | 1.84% A | 1.85% | 1.85% | 1.89% | 2.25% A |
Expenses net of all reductions | 1.79% A | 1.79% | 1.74% | 1.77% | 2.16% A |
Net investment income (loss) | .34% A | .11% | .26% | .70% | .03% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 121,758 | $ 119,952 | $ 41,369 | $ 6,801 | $ 889 |
Portfolio turnover rate G | 45% A | 48% | 48% | 54% | 101% 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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period March 29, 2004 (commencement of operations) to October 31, 2004. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J 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, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 H |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 32.03 | $ 18.91 | $ 13.58 | $ 9.83 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | (.02) | (.09) | (.04) | .02 | (.03) |
Net realized and unrealized gain (loss) | (3.77) | 13.20 | 5.40 | 3.72 | (.15) |
Total from investment operations | (3.79) | 13.11 | 5.36 | 3.74 | (.18) |
Distributions from net investment income | - | - | (.05) | - | - |
Distributions from net realized gain | (.70) | - | - | - | - |
Total distributions | (.70) | - | (.05) | - | - |
Redemption fees added to paid in capital E | .01 | .01 | .02 | .01 | .01 |
Net asset value, end of period | $ 27.55 | $ 32.03 | $ 18.91 | $ 13.58 | $ 9.83 |
Total Return B, C, D | (11.98)% | 69.38% | 39.67% | 38.15% | (1.70)% |
Ratios to Average Net Assets F, I | | | | |
Expenses before reductions | 2.36% A | 2.37% | 2.66% | 4.00% | 11.49% A |
Expenses net of fee waivers, if any | 2.35% A | 2.35% | 2.35% | 2.39% | 2.75% A |
Expenses net of all reductions | 2.30% A | 2.29% | 2.24% | 2.27% | 2.67% A |
Net investment income (loss) | (.17)% A | (.39)% | (.24)% | .20% | (.47)% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 40,904 | $ 41,042 | $ 18,622 | $ 4,997 | $ 719 |
Portfolio turnover rate G | 45% A | 48% | 48% | 54% | 101% 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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period March 29, 2004 (commencement of operations) to October 31, 2004. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements 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, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 H |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 32.04 | $ 18.91 | $ 13.59 | $ 9.83 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | (.02) | (.09) | (.04) | .02 | (.03) |
Net realized and unrealized gain (loss) | (3.78) | 13.21 | 5.39 | 3.73 | (.15) |
Total from investment operations | (3.80) | 13.12 | 5.35 | 3.75 | (.18) |
Distributions from net investment income | - | - | (.05) | - | - |
Distributions from net realized gain | (.70) | - | - | - | - |
Total distributions | (.70) | - | (.05) | - | - |
Redemption fees added to paid in capital E | .01 | .01 | .02 | .01 | .01 |
Net asset value, end of period | $ 27.55 | $ 32.04 | $ 18.91 | $ 13.59 | $ 9.83 |
Total Return B, C, D | (12.01)% | 69.43% | 39.59% | 38.25% | (1.70)% |
Ratios to Average Net Assets F, I | | | | |
Expenses before reductions | 2.34% A | 2.34% | 2.58% | 4.09% | 11.58% A |
Expenses net of fee waivers, if any | 2.34% A | 2.34% | 2.35% | 2.39% | 2.75% A |
Expenses net of all reductions | 2.29% A | 2.29% | 2.24% | 2.28% | 2.66% A |
Net investment income (loss) | (.16)% A | (.39)% | (.24)% | .19% | (.47)% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 112,705 | $ 104,885 | $ 42,805 | $ 5,890 | $ 1,105 |
Portfolio turnover rate G | 45% A | 48% | 48% | 54% | 101% 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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H For the period March 29, 2004 (commencement of operations) to October 31, 2004. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements 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, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 G |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 33.02 | $ 19.34 | $ 13.80 | $ 9.89 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss) D | .13 | .18 | .14 | .14 | .03 |
Net realized and unrealized gain (loss) | (3.86) | 13.55 | 5.49 | 3.76 | (.15) |
Total from investment operations | (3.73) | 13.73 | 5.63 | 3.90 | (.12) |
Distributions from net investment income | (.09) | (.06) | (.11) | - | - |
Distributions from net realized gain | (.79) | - | - | - | - |
Total distributions | (.88) | (.06) | (.11) | - | - |
Redemption fees added to paid in capital D | .01 | .01 | .02 | .01 | .01 |
Net asset value, end of period | $ 28.42 | $ 33.02 | $ 19.34 | $ 13.80 | $ 9.89 |
Total Return B, C | (11.49)% | 71.23% | 41.11% | 39.53% | (1.10)% |
Ratios to Average Net Assets E, H | | | | |
Expenses before reductions | 1.27% A | 1.25% | 1.47% | 3.05% | 10.37% A |
Expenses net of fee waivers, if any | 1.27% A | 1.25% | 1.35% | 1.41% | 1.75% A |
Expenses net of all reductions | 1.22% A | 1.19% | 1.24% | 1.30% | 1.66% A |
Net investment income (loss) | .92% A | .71% | .75% | 1.17% | .53% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 71,604 | $ 52,011 | $ 9,172 | $ 1,610 | $ 529 |
Portfolio turnover rate F | 45% A | 48% | 48% | 54% | 101% 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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G For the period March 29, 2004 (commencement of operations) to October 31, 2004. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements 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, 2008 (Unaudited)
1. Organization.
Fidelity Advisor Emerging Markets 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.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
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. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued and net asset value (NAV) per share is calculated (NAV calculation) as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Debt securities, including restricted securities, for which quotations are readily available, are valued by independent pricing services or by dealers who make markets in such securities. Pricing services consider yield or price of bonds of comparable quality, coupon, maturity and type as well as available dealer supplied prices. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or do not accurately reflect fair value, valuations may be determined in accordance with procedures adopted by the Board of Trustees. For example, when developments occur between the close of a market and the close of the NYSE that may materially affect the value of some or all of the securities, or when trading in a security is halted, those securities may be fair valued. Factors used in the determination of fair value may include monitoring news to identify significant market or security specific events such as changes in the value of U.S. securities markets, reviewing developments in foreign markets and evaluating the performance of ADRs, futures contracts and exchange-traded funds. Because the Fund's utilization of fair value pricing depends on market activity, the frequency with which fair value pricing is used cannot be predicted and may be utilized to a significant extent. The value of securities used for NAV calculation under fair value pricing may differ from published prices for the same securities.
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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Foreign Currency - continued
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. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV for processing shareholder transactions includes trades executed through the end of the prior business day. 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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. 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 each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 147,879,839 | |
Unrealized depreciation | (24,648,437) | |
Net unrealized appreciation (depreciation) | $ 123,231,402 | |
Cost for federal income tax purposes | $ 499,866,697 | |
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.
New Accounting Pronouncement. In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and results in expanded disclosures about fair value measurements.
4. Operating Policies.
Repurchase Agreements. 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 which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Operating Policies - continued
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 at the end of the Fund's Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $242,882,742 and $117,804,147, respectively.
6. 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 .26% 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 .81% 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. 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 and the total amounts paid to and retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC |
Class A | -% | .25% | $ 286,455 | $ 49,331 |
Class T | .25% | .25% | 281,476 | 18,477 |
Class B | .75% | .25% | 193,370 | 145,599 |
Class C | .75% | .25% | 514,877 | 201,001 |
| | | $ 1,276,178 | $ 414,408 |
Semiannual Report
6. 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, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges 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, 1.00% to .50% for certain purchases of Class A shares and ..25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 141,814 |
Class T | 26,358 |
Class B* | 29,255 |
Class C* | 19,473 |
| $ 216,900 |
* 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 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 shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each class to FIIOC were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 335,775 | .29 |
Class T | 164,856 | .29 |
Class B | 60,079 | .31 |
Class C | 151,424 | .29 |
Institutional Class | 63,325 | .22 |
| $ 775,459 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $4.2 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, which amounted to $512 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, 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. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $37,925.
9. Expense Reductions.
FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense
Limitations | Reimbursement
from adviser |
Class B | 2.35% | $ 2,236 |
Semiannual Report
9. Expense Reductions - continued
Many of the brokers with whom FMR places trades on behalf of the Fund provided services in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $139,492 for the period. 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. During the period, these credits reduced the Fund's custody expenses by $11. During the period, credits reduced each class' transfer agent expense as noted in the table below.
| Transfer Agent
expense reduction | |
Class A | $ 221 | |
Institutional Class | 75 | |
| $ 296 | |
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
In December 2006, the Independent Trustees, with the assistance of independent counsel, completed an investigation regarding gifts, gratuities and business entertainment provided by certain brokers to certain individuals who were employed on FMR's domestic equity trading desk during the period 2002 to 2004. The Independent Trustees and FMR agreed that, despite the absence of proof that the Fidelity mutual funds experienced diminished execution quality as a result of the improper receipt of gifts and business entertainment, the conduct at issue was serious and was worthy of redress. Accordingly, the Independent Trustees requested, and FMR agreed to make, a payment of $42 million plus accrued interest, which equaled approximately $7.3 million, to certain Fidelity mutual funds.
In March 2008, the Trustees approved a method for allocating this payment among the funds and, in total, FMR paid the fund $3, which is recorded in the accompanying Statement of Operations.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Other - continued
In a related administrative order dated March 5, 2008, the U.S. Securities and Exchange Commission ("SEC") announced a settlement with FMR and FMR Co., Inc. (an affiliate of FMR) involving the SEC's regulatory rules for investment advisers and the improper receipt of gifts, gratuities and business entertainment. Without admitting or denying the SEC's findings, FMR agreed to pay an $8 million civil penalty to the United States Treasury.
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30, 2008 | Year ended
October 31, 2007 |
From net investment income | | |
Class A | $ 145,458 | $ 107,461 |
Institutional Class | 155,559 | 28,488 |
Total | $ 301,017 | $ 135,949 |
From net realized gain | | |
Class A | $ 5,709,191 | $ - |
Class T | 2,804,169 | - |
Class B | 932,421 | - |
Class C | 2,429,909 | - |
Institutional Class | 1,356,814 | - |
Total | $ 13,232,504 | $ - |
Semiannual Report
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended April 30,
2008 | Year ended
October 31, 2007 | Six months ended April 30,
2008 | Year ended
October 31, 2007 |
Class A | | | | |
Shares sold | 4,050,804 | 4,642,561 | $ 114,440,351 | $ 115,951,246 |
Reinvestment of distributions | 176,536 | 4,531 | 5,409,067 | 93,931 |
Shares redeemed | (1,525,265) | (1,516,681) | (42,192,363) | (35,427,581) |
Net increase (decrease) | 2,702,075 | 3,130,411 | $ 77,657,055 | $ 80,617,596 |
Class T | | | | |
Shares sold | 1,354,524 | 2,453,317 | $ 38,057,529 | $ 60,760,054 |
Reinvestment of distributions | 87,947 | - | 2,678,875 | - |
Shares redeemed | (784,038) | (930,237) | (21,998,123) | (21,865,345) |
Net increase (decrease) | 658,433 | 1,523,080 | $ 18,738,281 | $ 38,894,709 |
Class B | | | | |
Shares sold | 382,041 | 569,930 | $ 10,583,635 | $ 13,827,872 |
Reinvestment of distributions | 27,094 | - | 813,622 | - |
Shares redeemed | (205,732) | (273,651) | (5,551,169) | (6,330,619) |
Net increase (decrease) | 203,403 | 296,279 | $ 5,846,088 | $ 7,497,253 |
Class C | | | | |
Shares sold | 1,280,394 | 1,627,896 | $ 35,599,016 | $ 39,785,213 |
Reinvestment of distributions | 66,963 | - | 2,010,914 | - |
Shares redeemed | (530,829) | (617,626) | (14,350,339) | (14,265,294) |
Net increase (decrease) | 816,528 | 1,010,270 | $ 23,259,591 | $ 25,519,919 |
Institutional Class | | | | |
Shares sold | 1,271,831 | 1,365,554 | $ 36,327,412 | $ 36,368,938 |
Reinvestment of distributions | 30,004 | 877 | 925,013 | 18,267 |
Shares redeemed | (357,348) | (265,597) | (10,004,835) | (6,257,132) |
Net increase (decrease) | 944,487 | 1,100,834 | $ 27,247,590 | $ 30,130,073 |
Semiannual Report
A special meeting of the fund's shareholders was held on May 14, 2008. The results of votes taken among shareholders on the proposals before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1 |
To elect a Board of Trustees.A |
| # of
Votes | % of
Votes |
James C. Curvey |
Affirmative | 8,514,961,004.35 | 97.348 |
Withheld | 231,994,591.94 | 2.652 |
TOTAL | 8,746,955,596.29 | 100.000 |
Dennis J. Dirks |
Affirmative | 8,525,899,114.46 | 97.473 |
Withheld | 221,056,481.83 | 2.527 |
TOTAL | 8,746,955,596.29 | 100.000 |
Edward C. Johnson 3d |
Affirmative | 8,497,196,105.85 | 97.145 |
Withheld | 249,759,490.44 | 2.855 |
TOTAL | 8,746,955,596.29 | 100.000 |
Alan J. Lacy |
Affirmative | 8,522,858,760.40 | 97.438 |
Withheld | 224,096,835.89 | 2.562 |
TOTAL | 8,746,955,596.29 | 100.000 |
Ned C. Lautenbach |
Affirmative | 8,523,008,335.52 | 97.440 |
Withheld | 223,947,260.77 | 2.560 |
TOTAL | 8,746,955,596.29 | 100.000 |
Joseph Mauriello |
Affirmative | 8,524,890,199.58 | 97.461 |
Withheld | 222,065,396.71 | 2.539 |
TOTAL | 8,746,955,596.29 | 100.000 |
Cornelia M. Small |
Affirmative | 8,525,649,323.51 | 97.470 |
Withheld | 221,306,272.78 | 2.530 |
TOTAL | 8,746,955,596.29 | 100.000 |
| # of
Votes | % of
Votes |
William S. Stavropoulos |
Affirmative | 8,514,682,431.03 | 97.345 |
Withheld | 232,273,165.26 | 2.655 |
TOTAL | 8,746,955,596.29 | 100.000 |
David M. Thomas |
Affirmative | 8,526,972,729.02 | 97.485 |
Withheld | 219,982,867.27 | 2.515 |
TOTAL | 8,746,955,596.29 | 100.000 |
Michael E. Wiley |
Affirmative | 8,523,710,850.33 | 97.448 |
Withheld | 223,244,745.96 | 2.552 |
TOTAL | 8,746,955,596.29 | 100.000 |
PROPOSAL 2 |
To amend the Declaration of Trust of Fidelity Advisor Series VIII to reduce the required quorum for future shareholder meetings.A |
| # of
Votes | % of
Votes |
Affirmative | 4,574,398,791.46 | 52.297 |
Against | 2,140,778,913.08 | 24.475 |
Abstain | 230,752,610.67 | 2.638 |
Broker
Non-Votes | 1,801,025,281.08 | 20.590 |
TOTAL | 8,746,955,596.29 | 100.000 |
A Denotes trust-wide proposal and voting results.
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 Research & Analysis Company
Fidelity International
Investment Advisors
Fidelity Investments Japan Limited
Fidelity International Investment Advisors (U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
JPMorgan Chase Bank
New York, NY
FAEMI-USAN-0608 1.800640.104
(Fidelity Investment logo)(registered trademark)
Fidelity® Advisor
Europe Capital Appreciation
Fund - Class A, Class T, Class B
and Class C
Semiannual Report
April 30, 2008
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | Ned Johnson's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
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. |
Proxy Voting Results | <Click Here> | |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
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 LLC or an affiliated company.
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.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
Continuation of a credit squeeze, flat consumer spending and a potential recession weighed heavily on stocks in the opening months of 2008, though positive results in investment-grade bonds and money markets offered some comfort to investors. Financial markets are always unpredictable, but there are a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 1, 2007 to April 30, 2008).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Semiannual Report
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Beginning
Account Value
November 1, 2007 | Ending
Account Value
April 30, 2008 | Expenses Paid
During Period*
November 1, 2007 to April 30, 2008 |
Class A | | | |
Actual | $ 1,000.00 | $ 898.90 | $ 7.08 |
HypotheticalA | $ 1,000.00 | $ 1,017.40 | $ 7.52 |
Class T | | | |
Actual | $ 1,000.00 | $ 897.40 | $ 8.26 |
HypotheticalA | $ 1,000.00 | $ 1,016.16 | $ 8.77 |
Class B | | | |
Actual | $ 1,000.00 | $ 895.40 | $ 10.60 |
HypotheticalA | $ 1,000.00 | $ 1,013.67 | $ 11.27 |
Class C | | | |
Actual | $ 1,000.00 | $ 895.50 | $ 10.60 |
HypotheticalA | $ 1,000.00 | $ 1,013.67 | $ 11.27 |
Institutional Class | | | |
Actual | $ 1,000.00 | $ 899.80 | $ 5.90 |
HypotheticalA | $ 1,000.00 | $ 1,018.65 | $ 6.27 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
| Annualized
Expense Ratio |
Class A | 1.50% |
Class T | 1.75% |
Class B | 2.25% |
Class C | 2.25% |
Institutional Class | 1.25% |
Semiannual Report
Investment Changes (Unaudited)
Top Five Stocks as of April 30, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Royal Dutch Shell PLC Class A (United Kingdom) (United Kingdom, Oil, Gas & Consumable Fuels) | 3.5 | 3.7 |
Nestle SA (Reg.) (Switzerland, Food Products) | 3.1 | 2.2 |
HSBC Holdings PLC sponsored ADR (United Kingdom, Commercial Banks) | 2.9 | 1.8 |
Telefonica SA sponsored ADR (Spain, Diversified Telecommunication Services) | 2.5 | 2.2 |
E.ON AG (Germany, Electric Utilities) | 2.5 | 2.3 |
| 14.5 | |
Top Five Market Sectors as of April 30, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 22.9 | 24.8 |
Energy | 14.2 | 10.4 |
Consumer Staples | 12.5 | 9.6 |
Materials | 10.9 | 8.4 |
Consumer Discretionary | 8.4 | 9.9 |
Top Five Countries as of April 30, 2008 |
(excluding cash equivalents) | % of fund's
net assets | % of fund's net assets
6 months ago |
United Kingdom | 26.4 | 20.8 |
Germany | 14.4 | 19.3 |
Switzerland | 13.1 | 12.9 |
France | 12.2 | 15.4 |
Italy | 7.0 | 3.2 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) |
As of April 30, 2008 | As of October 31, 2007 |
| Stocks and
Investment
Companies 97.7% | | | Stocks and
Investment
Companies 97.5% | |
| Short-Term
Investments and
Net Other Assets 2.3% | | | Short-Term
Investments and
Net Other Assets 2.5% | |
Semiannual Report
Investments April 30, 2008 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.0% |
| Shares | | Value |
Argentina - 0.2% |
Cresud S.A.C.I.F. y A. sponsored ADR | 8,600 | | $ 140,610 |
Australia - 0.8% |
CSL Ltd. | 13,448 | | 504,729 |
Belgium - 2.0% |
Fortis (d) | 29,000 | | 792,258 |
Umicore SA | 7,300 | | 390,998 |
TOTAL BELGIUM | | 1,183,256 |
Bermuda - 1.7% |
Aquarius Platinum Ltd. (United Kingdom) | 23,800 | | 375,014 |
Seadrill Ltd. | 20,300 | | 618,173 |
TOTAL BERMUDA | | 993,187 |
Canada - 1.2% |
EnCana Corp. | 5,800 | | 467,928 |
Silver Wheaton Corp. (a) | 18,900 | | 250,536 |
TOTAL CANADA | | 718,464 |
Cyprus - 0.6% |
Bank of Cyprus Public Co. Ltd. | 23,700 | | 327,803 |
Finland - 1.4% |
Neste Oil Oyj | 14,000 | | 425,088 |
Nokia Corp. sponsored ADR | 13,500 | | 405,945 |
TOTAL FINLAND | | 831,033 |
France - 12.2% |
Alstom SA | 2,500 | | 581,510 |
AXA SA | 10,700 | | 395,252 |
BNP Paribas SA | 7,700 | | 832,418 |
Credit Agricole SA | 10,900 | | 368,396 |
Eutelsat Communications | 22,536 | | 666,679 |
Groupe Danone | 9,600 | | 851,836 |
Pernod Ricard SA | 7,000 | | 808,650 |
Societe Generale (a) | 475 | | 55,021 |
Societe Generale Series A | 1,900 | | 222,931 |
Suez SA (France) | 13,400 | | 951,803 |
Total SA sponsored ADR | 14,400 | | 1,209,600 |
Veolia Environnement | 4,750 | | 345,105 |
TOTAL FRANCE | | 7,289,201 |
Germany - 14.4% |
Adidas-Salomon AG | 6,300 | | 403,134 |
Common Stocks - continued |
| Shares | | Value |
Germany - continued |
Allianz AG (Reg.) | 4,600 | | $ 934,477 |
Commerzbank AG | 8,600 | | 312,813 |
Continental AG | 4,200 | | 495,222 |
Daimler AG (Reg.) | 8,500 | | 660,782 |
Deutsche Postbank AG | 2,500 | | 219,803 |
E.ON AG (d) | 7,200 | | 1,469,170 |
ESCADA AG (a) | 5,200 | | 101,472 |
Fresenius AG | 3,800 | | 322,355 |
K&S AG | 1,300 | | 547,114 |
Linde AG | 5,000 | | 734,498 |
Muenchener Rueckversicherungs-Gesellschaft AG (Reg.) | 4,500 | | 872,920 |
RWE AG | 5,500 | | 634,853 |
SAP AG sponsored ADR | 8,900 | | 447,047 |
SolarWorld AG | 6,200 | | 334,597 |
Vossloh AG | 900 | | 130,580 |
TOTAL GERMANY | | 8,620,837 |
Greece - 0.6% |
Public Power Corp. of Greece | 8,400 | | 355,107 |
Ireland - 0.4% |
C&C Group PLC | 33,700 | | 231,480 |
Italy - 6.7% |
A2A SpA | 56,300 | | 207,860 |
ENI SpA sponsored ADR | 13,000 | | 1,001,260 |
Fiat SpA | 20,000 | | 449,503 |
Finmeccanica SpA | 17,200 | | 601,461 |
IFIL Finanziaria di Partecipazioni SpA | 8,264 | | 69,291 |
Intesa Sanpaolo SpA | 88,600 | | 665,011 |
Prysmian SpA | 2,600 | | 62,064 |
UniCredit SpA | 121,600 | | 926,559 |
TOTAL ITALY | | 3,983,009 |
Luxembourg - 1.5% |
ArcelorMittal SA (France) | 10,100 | | 895,414 |
Netherlands - 1.6% |
Koninklijke KPN NV | 52,200 | | 960,353 |
Norway - 2.5% |
Petroleum Geo-Services ASA | 19,350 | | 528,418 |
Pronova BioPharma ASA | 73,600 | | 254,491 |
Common Stocks - continued |
| Shares | | Value |
Norway - continued |
Renewable Energy Corp. AS (a) | 10,400 | | $ 356,031 |
Telenor ASA | 18,600 | | 376,385 |
TOTAL NORWAY | | 1,515,325 |
Papua New Guinea - 0.8% |
Lihir Gold Ltd. (a) | 64,004 | | 177,493 |
New Britain Palm Oil Ltd. | 27,900 | | 315,082 |
TOTAL PAPUA NEW GUINEA | | 492,575 |
Russia - 0.6% |
OAO Gazprom sponsored ADR | 7,100 | | 375,590 |
Spain - 6.0% |
Banco Santander SA | 25,300 | | 547,017 |
Iberdrola SA | 29,400 | | 431,885 |
Inditex SA | 3,300 | | 180,204 |
Repsol YPF SA sponsored ADR | 9,400 | | 381,358 |
Tecnicas Reunidas SA | 6,700 | | 508,430 |
Telefonica SA sponsored ADR | 17,400 | | 1,503,012 |
TOTAL SPAIN | | 3,551,906 |
Sweden - 2.3% |
H&M Hennes & Mauritz AB (B Shares) | 8,350 | | 496,451 |
Skandinaviska Enskilda Banken AB (A Shares) | 16,200 | | 393,657 |
TELE2 AB (B Shares) | 20,250 | | 451,488 |
TOTAL SWEDEN | | 1,341,596 |
Switzerland - 13.1% |
ABB Ltd. sponsored ADR | 19,600 | | 601,132 |
Credit Suisse Group (Reg.) | 8,465 | | 471,276 |
Julius Baer Holding AG | 5,862 | | 434,955 |
Lindt & Spruengli AG | 17 | | 556,716 |
Nestle SA (Reg.) | 3,840 | | 1,841,451 |
Novartis AG (Reg.) | 15,367 | | 774,390 |
Roche Holding AG (participation certificate) | 3,923 | | 654,086 |
SGS Societe Generale de Surveillance Holding SA (Reg.) | 215 | | 303,913 |
Sonova Holding AG | 6,291 | | 532,343 |
Syngenta AG sponsored ADR | 11,300 | | 668,734 |
UBS AG: | | | |
(NY Shares) | 7,600 | | 255,284 |
(NY Shares) rights 5/9/08 (a) | 7,600 | | 12,764 |
Zurich Financial Services AG (Reg.) | 2,251 | | 689,048 |
TOTAL SWITZERLAND | | 7,796,092 |
Common Stocks - continued |
| Shares | | Value |
United Kingdom - 26.4% |
Anglo American PLC (United Kingdom) | 13,700 | | $ 890,444 |
Bellway PLC | 14,000 | | 195,544 |
BG Group PLC | 42,000 | | 1,027,965 |
Bovis Homes Group PLC | 24,200 | | 223,858 |
British American Tobacco PLC | 18,000 | | 675,200 |
British Sky Broadcasting Group PLC (BSkyB) sponsored ADR | 10,100 | | 434,300 |
GlaxoSmithKline PLC | 29,300 | | 648,131 |
HSBC Holdings PLC sponsored ADR | 20,200 | | 1,753,158 |
Informa PLC | 26,500 | | 182,039 |
Kesa Electricals PLC | 27,100 | | 112,208 |
Lloyds TSB Group PLC | 63,100 | | 542,608 |
Man Group PLC | 45,500 | | 526,056 |
Persimmon PLC | 14,800 | | 170,524 |
Reckitt Benckiser Group PLC | 24,500 | | 1,431,162 |
Redrow PLC | 16,100 | | 82,588 |
Rio Tinto PLC (Reg.) | 9,600 | | 1,119,073 |
Royal Dutch Shell PLC Class A (United Kingdom) | 52,500 | | 2,116,890 |
Signet Group PLC | 131,800 | | 180,160 |
Standard Chartered PLC (United Kingdom) | 21,600 | | 770,455 |
Tesco PLC | 75,000 | | 639,719 |
Tullow Oil PLC | 21,600 | | 323,814 |
Vodafone Group PLC | 202,200 | | 639,876 |
Vodafone Group PLC sponsored ADR | 20,350 | | 644,281 |
Xstrata PLC | 5,700 | | 447,201 |
TOTAL UNITED KINGDOM | | 15,777,254 |
TOTAL COMMON STOCKS (Cost $54,339,104) | 57,884,821 |
Nonconvertible Preferred Stocks - 0.3% |
| | | |
Italy - 0.3% |
Istituto Finanziario Industriale SpA (IFI) (a)
(Cost $141,694) | 7,400 | | 196,040 |
Investment Companies - 0.4% |
| | | |
United States of America - 0.4% |
United States Natural Gas Fund LP ETF (a)
(Cost $248,063) | 5,100 | | 263,160 |
Money Market Funds - 6.1% |
| Shares | | Value |
Fidelity Cash Central Fund, 2.51% (b) | 1,311,633 | | $ 1,311,633 |
Fidelity Securities Lending Cash Central Fund, 2.44% (b)(c) | 2,308,515 | | 2,308,515 |
TOTAL MONEY MARKET FUNDS (Cost $3,620,148) | 3,620,148 |
TOTAL INVESTMENT PORTFOLIO - 103.8% (Cost $58,349,009) | | 61,964,169 |
NET OTHER ASSETS - (3.8)% | | (2,284,389) |
NET ASSETS - 100% | $ 59,679,780 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 36,035 |
Fidelity Securities Lending Cash Central Fund | 7,481 |
Total | $ 43,516 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| April 30, 2008 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $2,232,545) - See accompanying schedule: Unaffiliated issuers (cost $54,728,861) | $ 58,344,021 | |
Fidelity Central Funds (cost $3,620,148) | 3,620,148 | |
Total Investments (cost $58,349,009) | | $ 61,964,169 |
Cash | | 23,881 |
Receivable for investments sold | | 506,158 |
Receivable for fund shares sold | | 50,263 |
Dividends receivable | | 241,161 |
Distributions receivable from Fidelity Central Funds | | 6,926 |
Prepaid expenses | | 156 |
Receivable from investment adviser for expense reductions | | 5,843 |
Other receivables | | 10,184 |
Total assets | | 62,808,741 |
| | |
Liabilities | | |
Payable for investments purchased | $ 601,387 | |
Payable for fund shares redeemed | 111,971 | |
Accrued management fee | 35,171 | |
Distribution fees payable | 26,955 | |
Other affiliated payables | 16,961 | |
Other payables and accrued expenses | 28,001 | |
Collateral on securities loaned, at value | 2,308,515 | |
Total liabilities | | 3,128,961 |
| | |
Net Assets | | $ 59,679,780 |
Net Assets consist of: | | |
Paid in capital | | $ 58,721,781 |
Undistributed net investment income | | 257,587 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (2,914,143) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 3,614,555 |
Net Assets | | $ 59,679,780 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| April 30, 2008 (Unaudited) |
| | |
Calculation of Maximum Offering Price
Class A:
Net Asset Value and redemption price per share ($22,439,668 ÷ 1,396,202 shares) | | $ 16.07 |
| | |
Maximum offering price per share (100/94.25 of $16.07) | | $ 17.05 |
Class T:
Net Asset Value and redemption price per share ($17,749,971 ÷ 1,110,445 shares) | | $ 15.98 |
| | |
Maximum offering price per share (100/96.50 of $15.98) | | $ 16.56 |
Class B:
Net Asset Value and offering price per share ($6,938,388 ÷ 448,798 shares)A | | $ 15.46 |
| | |
Class C:
Net Asset Value and offering price per share ($10,873,932 ÷ 706,096 shares)A | | $ 15.40 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($1,677,821 ÷ 102,860 shares) | | $ 16.31 |
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
Financial Statements - continued
Statement of Operations
Six months ended April 30, 2008 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 914,201 |
Interest | | 43 |
Income from Fidelity Central Funds | | 43,516 |
| | 957,760 |
Less foreign taxes withheld | | (84,325) |
Total income | | 873,435 |
| | |
Expenses | | |
Management fee | $ 232,079 | |
Transfer agent fees | 98,573 | |
Distribution fees | 183,203 | |
Accounting and security lending fees | 17,081 | |
Custodian fees and expenses | 27,653 | |
Independent trustees' compensation | 143 | |
Registration fees | 52,194 | |
Audit | 23,903 | |
Legal | 155 | |
Miscellaneous | 10,727 | |
Total expenses before reductions | 645,711 | |
Expense reductions | (67,196) | 578,515 |
Net investment income (loss) | | 294,920 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (2,760,737) | |
Foreign currency transactions | (11,338) | |
Total net realized gain (loss) | | (2,772,075) |
Change in net unrealized appreciation (depreciation) on: Investment securities | (5,784,260) | |
Assets and liabilities in foreign currencies | (3,018) | |
Total change in net unrealized appreciation (depreciation) | | (5,787,278) |
Net gain (loss) | | (8,559,353) |
Net increase (decrease) in net assets resulting from operations | | $ (8,264,433) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended April 30, 2008
(Unaudited) | Year ended
October 31,
2007 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 294,920 | $ 1,150,432 |
Net realized gain (loss) | (2,772,075) | 14,763,852 |
Change in net unrealized appreciation (depreciation) | (5,787,278) | 3,567,591 |
Net increase (decrease) in net assets resulting
from operations | (8,264,433) | 19,481,875 |
Distributions to shareholders from net investment income | (842,961) | (305,480) |
Distributions to shareholders from net realized gain | (10,296,581) | (4,668,174) |
Total distributions | (11,139,542) | (4,973,654) |
Share transactions - net increase (decrease) | (575,918) | 2,498,409 |
Redemption fees | 1,426 | 3,169 |
Total increase (decrease) in net assets | (19,978,467) | 17,009,799 |
| | |
Net Assets | | |
Beginning of period | 79,658,247 | 62,648,448 |
End of period (including undistributed net investment income of $257,587 and undistributed net investment income of $1,144,523, respectively) | $ 59,679,780 | $ 79,658,247 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended April 30, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 20.94 | $ 17.49 | $ 13.47 | $ 11.30 | $ 10.00 | $ 8.03 |
Income from Investment Operations | | | | | | |
Net investment income (loss)E | .10 | .32 | .19 H | .12 | .01 | .04 |
Net realized and unrealized gain (loss) | (1.98) | 4.48 | 4.18 | 2.05 | 1.37 | 1.98 |
Total from investment operations | (1.88) | 4.80 | 4.37 | 2.17 | 1.38 | 2.02 |
Distributions from net investment income | (.31) | (.12) | (.13) | - | (.08) | (.05) |
Distributions from net realized gain | (2.68) | (1.23) | (.22) | - | - | - |
Total distributions | (2.99) | (1.35) | (.35) | - | (.08) | (.05) |
Redemption fees added to paid in capitalE | - J | - J | - J | - J | -J | - |
Net asset value, end of period | $ 16.07 | $ 20.94 | $ 17.49 | $ 13.47 | $ 11.30 | $ 10.00 |
Total Return B,C,D | (10.11)% | 29.16% | 33.17% | 19.20% | 13.87% | 25.30% |
Ratios to Average Net Assets F,I | | | | | | |
Expenses before reductions | 1.66%A | 1.53% | 1.81% | 2.16% | 2.41% | 3.07% |
Expenses net of fee waivers, if any | 1.50%A | 1.50% | 1.50% | 1.55% | 1.75% | 1.75% |
Expenses net of all reductions | 1.45%A | 1.46% | 1.40% | 1.44% | 1.68% | 1.69% |
Net investment income (loss) | 1.21%A | 1.69% | 1.16%H | .95% | .07% | .49% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 22,440 | $ 29,273 | $ 18,972 | $ 4,544 | $ 2,905 | $ 3,346 |
Portfolio turnover rate G | 108%A | 173% | 173% | 135% | 123% | 199% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Investment income per share reflects a special dividend which amounted to $.08 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .68%.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J 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, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 20.75 | $ 17.35 | $ 13.34 | $ 11.21 | $ 9.93 | $ 7.98 |
Income from Investment Operations | | | | | | |
Net investment income (loss)E | .08 | .27 | .14 H | .09 | (.02) | .02 |
Net realized and unrealized gain (loss) | (1.98) | 4.44 | 4.17 | 2.04 | 1.36 | 1.96 |
Total from investment operations | (1.90) | 4.71 | 4.31 | 2.13 | 1.34 | 1.98 |
Distributions from net investment income | (.19) | (.08) | (.08) | - | (.06) | (.03) |
Distributions from net realized gain | (2.68) | (1.23) | (.22) | - | - | - |
Total distributions | (2.87) | (1.31) | (.30) | - | (.06) | (.03) |
Redemption fees added to paid in capitalE | - J | - J | - J | - J | -J | - |
Net asset value, end of period | $ 15.98 | $ 20.75 | $ 17.35 | $ 13.34 | $ 11.21 | $ 9.93 |
Total Return B,C,D | (10.26)% | 28.86% | 32.95% | 19.00% | 13.54% | 24.90% |
Ratios to Average Net Assets F,I | | | | | | |
Expenses before reductions | 1.91% A | 1.80% | 2.07% | 2.45% | 2.70% | 3.34% |
Expenses net of fee waivers, if any | 1.75% A | 1.75% | 1.75% | 1.81% | 2.00% | 2.00% |
Expenses net of all reductions | 1.70% A | 1.71% | 1.65% | 1.70% | 1.93% | 1.94% |
Net investment income (loss) | .96% A | 1.44% | .91%H | .70% | (.18)% | .24% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 17,750 | $ 21,357 | $ 24,643 | $ 8,893 | $ 8,102 | $ 7,628 |
Portfolio turnover rate G | 108% A | 173% | 173% | 135% | 123% | 199% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Investment income per share reflects a special dividend which amounted to $.08 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .43%.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J 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, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 20.16 | $ 16.91 | $ 12.98 | $ 10.97 | $ 9.72 | $ 7.82 |
Income from Investment Operations | | | | | | |
Net investment income (loss)E | .04 | .17 | .06 H | .02 | (.07) | (.02) |
Net realized and unrealized gain (loss) | (1.92) | 4.34 | 4.10 | 1.99 | 1.33 | 1.92 |
Total from investment operations | (1.88) | 4.51 | 4.16 | 2.01 | 1.26 | 1.90 |
Distributions from net investment income | (.14) | (.03) | (.01) | - | (.01) | - |
Distributions from net realized gain | (2.68) | (1.23) | (.22) | - | - | - |
Total distributions | (2.82) | (1.26) | (.23) | - | (.01) | - |
Redemption fees added to paid in capitalE | - J | - J | - J | - J | -J | - |
Net asset value, end of period | $ 15.46 | $ 20.16 | $ 16.91 | $ 12.98 | $ 10.97 | $ 9.72 |
Total Return B,C,D | (10.46)% | 28.29% | 32.49% | 18.32% | 12.97% | 24.30% |
Ratios to Average Net AssetsF,I | | | | | | |
Expenses before reductions | 2.42% A | 2.31% | 2.69% | 2.94% | 3.20% | 3.87% |
Expenses net of fee waivers, if any | 2.25% A | 2.25% | 2.25% | 2.32% | 2.50% | 2.50% |
Expenses net of all reductions | 2.21% A | 2.21% | 2.15% | 2.20% | 2.43% | 2.44% |
Net investment income (loss) | .45% A | .94% | .41%H | .19% | (.68)% | (.26)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 6,938 | $ 11,206 | $ 8,529 | $ 6,415 | $ 6,288 | $ 5,596 |
Portfolio turnover rate G | 108% A | 173% | 173% | 135% | 123% | 199% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Investment income per share reflects a special dividend which amounted to $.07 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.07)%.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Amount 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, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 20.10 | $ 16.89 | $ 13.00 | $ 10.98 | $ 9.73 | $ 7.83 |
Income from Investment Operations | | | | | | |
Net investment income (loss)E | .04 | .17 | .06 H | .03 | (.07) | (.02) |
Net realized and unrealized gain (loss) | (1.91) | 4.32 | 4.07 | 1.99 | 1.33 | 1.92 |
Total from investment operations | (1.87) | 4.49 | 4.13 | 2.02 | 1.26 | 1.90 |
Distributions from net investment income | (.15) | (.05) | (.02) | - | (.01) | - |
Distributions from net realized gain | (2.68) | (1.23) | (.22) | - | - | - |
Total distributions | (2.83) | (1.28) | (.24) | - | (.01) | - |
Redemption fees added to paid in capitalE | - J | - J | - J | - J | -J | - |
Net asset value, end of period | $ 15.40 | $ 20.10 | $ 16.89 | $ 13.00 | $ 10.98 | $ 9.73 |
Total Return B,C,D | (10.45)% | 28.21% | 32.25% | 18.40% | 12.96% | 24.27% |
Ratios to Average Net Assets F,I | | | | | | |
Expenses before reductions | 2.41%A | 2.26% | 2.57% | 2.86% | 3.08% | 3.74% |
Expenses net of fee waivers, if any | 2.25%A | 2.25% | 2.25% | 2.30% | 2.50% | 2.50% |
Expenses net of all reductions | 2.21%A | 2.21% | 2.15% | 2.19% | 2.43% | 2.44% |
Net investment income (loss) | .45%A | .94% | .41%H | .20% | (.68)% | (.26)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 10,874 | $ 16,084 | $ 9,173 | $ 4,566 | $ 3,234 | $ 3,076 |
Portfolio turnover rate G | 108%A | 173% | 173% | 135% | 123% | 199% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Investment income per share reflects a special dividend which amounted to $.07 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.07)%.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Amount 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, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 21.27 | $ 17.72 | $ 13.63 | $ 11.40 | $ 10.07 | $ 8.10 |
Income from Investment Operations | | | | | | |
Net investment income (loss)D | .12 | .38 | .23 G | .16 | .04 | .06 |
Net realized and unrealized gain (loss) | (2.02) | 4.54 | 4.25 | 2.07 | 1.37 | 1.98 |
Total from investment operations | (1.90) | 4.92 | 4.48 | 2.23 | 1.41 | 2.04 |
Distributions from net investment income | (.38) | (.14) | (.17) | - | (.08) | (.07) |
Distributions from net realized gain | (2.68) | (1.23) | (.22) | - | - | - |
Total distributions | (3.06) | (1.37) | (.39) | - | (.08) | (.07) |
Redemption fees added to paid in capitalD | - I | - I | - I | - I | -I | - |
Net asset value, end of period | $ 16.31 | $ 21.27 | $ 17.72 | $ 13.63 | $ 11.40 | $ 10.07 |
Total Return B,C | (10.02)% | 29.57% | 33.68% | 19.56% | 14.07% | 25.39% |
Ratios to Average Net Assets E,H | | | | | |
Expenses before reductions | 1.29% A | 1.19% | 1.46% | 1.73% | 1.95% | 2.56% |
Expenses net of fee waivers, if any | 1.25% A | 1.19% | 1.25% | 1.31% | 1.50% | 1.50% |
Expenses net of all reductions | 1.20% A | 1.15% | 1.15% | 1.20% | 1.43% | 1.44% |
Net investment income (loss) | 1.46% A | 2.00% | 1.41%G | 1.20% | .32% | .73% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 1,678 | $ 1,738 | $ 1,331 | $ 566 | $ 457 | $ 371 |
Portfolio turnover rate F | 108% A | 173% | 173% | 135% | 123% | 199% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Investment income per share reflects a special dividend which amounted to $.08 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .93%.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements 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, 2008 (Unaudited)
1. Organization.
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.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
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. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued and net asset value (NAV) per share is calculated (NAV calculation) as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or do not accurately reflect fair value, valuations may be determined in accordance with procedures adopted by the Board of Trustees. For example, when developments occur between the close of a market and the close of the NYSE that may materially affect the value of some or all of the securities, or when trading in a security is halted, those securities may be fair valued. Factors used in the determination of fair value may include monitoring news to identify significant market or security specific events such as changes in the value of U.S. securities markets, reviewing developments in foreign markets and evaluating the performance of ADRs, futures contracts and exchange-traded funds. Because the Fund's utilization of fair value pricing depends on market activity, the frequency with which fair value pricing is used cannot be predicted and may be utilized to a significant extent. The value of securities used for NAV calculation under fair value pricing may differ from published prices for the same securities.
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.
Semiannual Report
3. Significant Accounting Policies - continued
Foreign Currency - continued
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. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV for processing shareholder transactions includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. 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 and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. 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 each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not result in any unrecognized tax benefits in the accompanying financial statements. Each of the Fund's federal tax returns for the prior three fiscal years remains subject to examination by the Internal Revenue Service.
Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), market discount and losses deferred due to wash sales.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 6,018,370 | |
Unrealized depreciation | (2,433,699) | |
Net unrealized appreciation (depreciation) | $ 3,584,671 | |
Cost for federal income tax purposes | $ 58,379,498 | |
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 30 days are subject to a redemption fee equal to 1.00% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.
New Accounting Pronouncements. In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and results in expanded disclosures about fair value measurements.
4. Operating Policies.
Repurchase Agreements. 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 which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
Semiannual Report
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $35,446,306 and $46,254,806, respectively.
6. 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 .26% 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 .71% 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 the 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. 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 and the total amounts paid to and retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC |
Class A | 0% | .25% | $ 29,890 | $ 1,113 |
Class T | .25% | .25% | 46,362 | 263 |
Class B | .75% | .25% | 43,128 | 32,433 |
Class C | .75% | .25% | 63,823 | 14,436 |
| | | $ 183,203 | $ 48,245 |
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, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges 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, 1.00% to .50% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. 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 | $ 9,879 |
Class T | 2,978 |
Class B* | 9,904 |
Class C* | 2,261 |
| $ 25,022 |
* 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 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 shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each class to FIIOC were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 35,838 | .30 |
Class T | 28,727 | .31 |
Class B | 13,343 | .31 |
Class C | 18,850 | .30 |
Institutional Class | 1,815 | .20 |
| $ 98,573 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
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 were $2 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $4.2 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, which amounted to $67 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, 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. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $7,481.
9. Expense Reductions.
FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
9. Expense Reductions - continued
The following classes were in reimbursement during the period
| Expense
Limitations | Reimbursement
from adviser |
| | |
Class A | 1.50% | $ 18,981 |
Class T | 1.75% | 15,194 |
Class B | 2.25% | 7,288 |
Class C | 2.25% | 9,893 |
Institutional Class | 1.25% | 390 |
| | $ 51,746 |
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 included payments of certain expenses on behalf of the Fund totaling $15,450 for the period.
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
In December 2006, the Independent Trustees, with the assistance of independent counsel, completed an investigation regarding gifts, gratuities and business entertainment provided by certain brokers to certain individuals who were employed on FMR's domestic equity trading desk during the period 2002 to 2004. The Independent Trustees and FMR agreed that, despite the absence of proof that the Fidelity mutual funds experienced diminished execution quality as a result of the improper receipt of gifts and business entertainment, the conduct at issue was serious and was worthy of redress. Accordingly, the Independent Trustees requested, and FMR agreed to make, a payment of $42 million plus accrued interest, which equaled approximately $7.3 million, to certain Fidelity mutual funds.
In March 2008, the Trustees approved a method for allocating this payment among the funds and, in total, FMR paid the fund $108, which is recorded in the accompanying Statement of Operations.
In a related administrative order dated March 5, 2008, the U.S. Securities and Exchange Commission ("SEC") announced a settlement with FMR and FMR Co., Inc. (an affiliate of FMR) involving the SEC's regulatory rules for investment advisers and the improper
Semiannual Report
10. Other - continued
receipt of gifts, gratuities and business entertainment. Without admitting or denying the SEC's findings, FMR agreed to pay an $8 million civil penalty to the United States Treasury.
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30,
2008 | Year ended
October 31,
2007 |
From net investment income | | |
Class A | $ 422,203 | $ 131,953 |
Class T | 191,381 | 120,031 |
Class B | 74,344 | 14,114 |
Class C | 114,566 | 27,366 |
Institutional Class | 40,467 | 12,016 |
Total | $ 842,961 | $ 305,480 |
From net realized gain | | |
Class A | $ 3,709,850 | $ 1,411,320 |
Class T | 2,757,536 | 1,778,779 |
Class B | 1,443,769 | 642,980 |
Class C | 2,102,997 | 731,741 |
Institutional Class | 282,429 | 103,354 |
Total | $ 10,296,581 | $ 4,668,174 |
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended April 30,
2008 | Year ended
October 31,
2007 | Six months ended April 30,
2008 | Year ended
October 31,
2007 |
Class A | | | | |
Shares sold | 222,175 | 887,671 | $ 3,703,679 | $ 16,290,832 |
Reinvestment of distributions | 215,972 | 81,628 | 3,762,228 | 1,393,387 |
Shares redeemed | (439,829) | (655,962) | (7,329,012) | (12,453,019) |
Net increase (decrease) | (1,682) | 313,337 | $ 136,895 | $ 5,231,200 |
Class T | | | | |
Shares sold | 78,502 | 628,131 | $ 1,294,495 | $ 11,365,875 |
Reinvestment of distributions | 164,143 | 110,301 | 2,846,246 | 1,869,603 |
Shares redeemed | (161,668) | (1,129,336) | (2,577,823) | (21,225,724) |
Net increase (decrease) | 80,977 | (390,904) | $ 1,562,918 | $ (7,990,246) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
12. Share Transactions - continued
| Shares | Dollars |
| Six months ended April 30,
2008 | Year ended
October 31,
2007 | Six months ended April 30,
2008 | Year ended
October 31,
2007 |
Class B | | | | |
Shares sold | 47,296 | 290,925 | $ 773,912 | $ 5,134,606 |
Reinvestment of distributions | 80,186 | 36,910 | 1,347,923 | 610,124 |
Shares redeemed | (234,650) | (276,174) | (3,636,968) | (4,941,749) |
Net increase (decrease) | (107,168) | 51,661 | $ (1,515,133) | $ 802,981 |
Class C | | | | |
Shares sold | 86,983 | 555,549 | $ 1,434,205 | $ 9,727,989 |
Reinvestment of distributions | 110,014 | 36,928 | 1,841,634 | 608,950 |
Shares redeemed | (291,252) | (335,147) | (4,510,500) | (6,006,565) |
Net increase (decrease) | (94,255) | 257,330 | $ (1,234,661) | $ 4,330,374 |
Institutional Class | | | | |
Shares sold | 38,866 | 50,928 | $ 733,506 | $ 962,437 |
Reinvestment of distributions | 11,953 | 3,929 | 211,086 | 67,898 |
Shares redeemed | (29,674) | (48,267) | (470,529) | (906,235) |
Net increase (decrease) | 21,145 | 6,590 | $ 474,063 | $ 124,100 |
Semiannual Report
A special meeting of the fund's shareholders was held on May 14, 2008. The results of votes taken among shareholders on the proposals before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1 |
To elect a Board of Trustees.A |
| # of
Votes | % of
Votes |
James C. Curvey |
Affirmative | 8,514,961,004.35 | 97.348 |
Withheld | 231,994,591.94 | 2.652 |
TOTAL | 8,746,955,596.29 | 100.000 |
Dennis J. Dirks |
Affirmative | 8,525,899,114.46 | 97.473 |
Withheld | 221,056,481.83 | 2.527 |
TOTAL | 8,746,955,596.29 | 100.000 |
Edward C. Johnson 3d |
Affirmative | 8,497,196,105.85 | 97.145 |
Withheld | 249,759,490.44 | 2.855 |
TOTAL | 8,746,955,596.29 | 100.000 |
Alan J. Lacy |
Affirmative | 8,522,858,760.40 | 97.438 |
Withheld | 224,096,835.89 | 2.562 |
TOTAL | 8,746,955,596.29 | 100.000 |
Ned C. Lautenbach |
Affirmative | 8,523,008,335.52 | 97.440 |
Withheld | 223,947,260.77 | 2.560 |
TOTAL | 8,746,955,596.29 | 100.000 |
Joseph Mauriello |
Affirmative | 8,524,890,199.58 | 97.461 |
Withheld | 222,065,396.71 | 2.539 |
TOTAL | 8,746,955,596.29 | 100.000 |
Cornelia M. Small |
Affirmative | 8,525,649,323.51 | 97.470 |
Withheld | 221,306,272.78 | 2.530 |
TOTAL | 8,746,955,596.29 | 100.000 |
| # of
Votes | % of
Votes |
William S. Stavropoulos |
Affirmative | 8,514,682,431.03 | 97.345 |
Withheld | 232,273,165.26 | 2.655 |
TOTAL | 8,746,955,596.29 | 100.000 |
David M. Thomas |
Affirmative | 8,526,972,729.02 | 97.485 |
Withheld | 219,982,867.27 | 2.515 |
TOTAL | 8,746,955,596.29 | 100.000 |
Michael E. Wiley |
Affirmative | 8,523,710,850.33 | 97.448 |
Withheld | 223,244,745.96 | 2.552 |
TOTAL | 8,746,955,596.29 | 100.000 |
PROPOSAL 2 |
To amend the Declaration of Trust of Fidelity Advisor Series VIII to reduce the required quorum for future shareholder meetings.A |
| # of
Votes | % of
Votes |
Affirmative | 4,574,398,791.46 | 52.297 |
Against | 2,140,778,913.08 | 24.475 |
Abstain | 230,752,610.67 | 2.638 |
Broker
Non-Votes | 1,801,025,281.08 | 20.590 |
TOTAL | 8,746,955,596.29 | 100.000 |
A Denotes trust-wide proposal and voting results.
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 Research & Analysis Company
Fidelity International Investment Advisors
Fidelity International Investment Advisors (U.K.) Limited
Fidelity Investments Japan Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
State Street Bank and Trust Company
Quincy, MA
AEUR-USAN-0608 1.784875.105
(Fidelity Investment logo)(registered trademark)
Fidelity® Advisor
Europe Capital Appreciation
Fund - Institutional Class
Semiannual Report
April 30, 2008
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | Ned Johnson's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
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. |
Proxy Voting Results | <Click Here> | |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
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 LLC or an affiliated company.
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.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
Continuation of a credit squeeze, flat consumer spending and a potential recession weighed heavily on stocks in the opening months of 2008, though positive results in investment-grade bonds and money markets offered some comfort to investors. Financial markets are always unpredictable, but there are a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 1, 2007 to April 30, 2008).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Semiannual Report
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Beginning
Account Value
November 1, 2007 | Ending
Account Value
April 30, 2008 | Expenses Paid
During Period*
November 1, 2007 to April 30, 2008 |
Class A | | | |
Actual | $ 1,000.00 | $ 898.90 | $ 7.08 |
HypotheticalA | $ 1,000.00 | $ 1,017.40 | $ 7.52 |
Class T | | | |
Actual | $ 1,000.00 | $ 897.40 | $ 8.26 |
HypotheticalA | $ 1,000.00 | $ 1,016.16 | $ 8.77 |
Class B | | | |
Actual | $ 1,000.00 | $ 895.40 | $ 10.60 |
HypotheticalA | $ 1,000.00 | $ 1,013.67 | $ 11.27 |
Class C | | | |
Actual | $ 1,000.00 | $ 895.50 | $ 10.60 |
HypotheticalA | $ 1,000.00 | $ 1,013.67 | $ 11.27 |
Institutional Class | | | |
Actual | $ 1,000.00 | $ 899.80 | $ 5.90 |
HypotheticalA | $ 1,000.00 | $ 1,018.65 | $ 6.27 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
| Annualized
Expense Ratio |
Class A | 1.50% |
Class T | 1.75% |
Class B | 2.25% |
Class C | 2.25% |
Institutional Class | 1.25% |
Semiannual Report
Investment Changes (Unaudited)
Top Five Stocks as of April 30, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Royal Dutch Shell PLC Class A (United Kingdom) (United Kingdom, Oil, Gas & Consumable Fuels) | 3.5 | 3.7 |
Nestle SA (Reg.) (Switzerland, Food Products) | 3.1 | 2.2 |
HSBC Holdings PLC sponsored ADR (United Kingdom, Commercial Banks) | 2.9 | 1.8 |
Telefonica SA sponsored ADR (Spain, Diversified Telecommunication Services) | 2.5 | 2.2 |
E.ON AG (Germany, Electric Utilities) | 2.5 | 2.3 |
| 14.5 | |
Top Five Market Sectors as of April 30, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 22.9 | 24.8 |
Energy | 14.2 | 10.4 |
Consumer Staples | 12.5 | 9.6 |
Materials | 10.9 | 8.4 |
Consumer Discretionary | 8.4 | 9.9 |
Top Five Countries as of April 30, 2008 |
(excluding cash equivalents) | % of fund's
net assets | % of fund's net assets
6 months ago |
United Kingdom | 26.4 | 20.8 |
Germany | 14.4 | 19.3 |
Switzerland | 13.1 | 12.9 |
France | 12.2 | 15.4 |
Italy | 7.0 | 3.2 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) |
As of April 30, 2008 | As of October 31, 2007 |
| Stocks and
Investment
Companies 97.7% | | | Stocks and
Investment
Companies 97.5% | |
| Short-Term
Investments and
Net Other Assets 2.3% | | | Short-Term
Investments and
Net Other Assets 2.5% | |
Semiannual Report
Investments April 30, 2008 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.0% |
| Shares | | Value |
Argentina - 0.2% |
Cresud S.A.C.I.F. y A. sponsored ADR | 8,600 | | $ 140,610 |
Australia - 0.8% |
CSL Ltd. | 13,448 | | 504,729 |
Belgium - 2.0% |
Fortis (d) | 29,000 | | 792,258 |
Umicore SA | 7,300 | | 390,998 |
TOTAL BELGIUM | | 1,183,256 |
Bermuda - 1.7% |
Aquarius Platinum Ltd. (United Kingdom) | 23,800 | | 375,014 |
Seadrill Ltd. | 20,300 | | 618,173 |
TOTAL BERMUDA | | 993,187 |
Canada - 1.2% |
EnCana Corp. | 5,800 | | 467,928 |
Silver Wheaton Corp. (a) | 18,900 | | 250,536 |
TOTAL CANADA | | 718,464 |
Cyprus - 0.6% |
Bank of Cyprus Public Co. Ltd. | 23,700 | | 327,803 |
Finland - 1.4% |
Neste Oil Oyj | 14,000 | | 425,088 |
Nokia Corp. sponsored ADR | 13,500 | | 405,945 |
TOTAL FINLAND | | 831,033 |
France - 12.2% |
Alstom SA | 2,500 | | 581,510 |
AXA SA | 10,700 | | 395,252 |
BNP Paribas SA | 7,700 | | 832,418 |
Credit Agricole SA | 10,900 | | 368,396 |
Eutelsat Communications | 22,536 | | 666,679 |
Groupe Danone | 9,600 | | 851,836 |
Pernod Ricard SA | 7,000 | | 808,650 |
Societe Generale (a) | 475 | | 55,021 |
Societe Generale Series A | 1,900 | | 222,931 |
Suez SA (France) | 13,400 | | 951,803 |
Total SA sponsored ADR | 14,400 | | 1,209,600 |
Veolia Environnement | 4,750 | | 345,105 |
TOTAL FRANCE | | 7,289,201 |
Germany - 14.4% |
Adidas-Salomon AG | 6,300 | | 403,134 |
Common Stocks - continued |
| Shares | | Value |
Germany - continued |
Allianz AG (Reg.) | 4,600 | | $ 934,477 |
Commerzbank AG | 8,600 | | 312,813 |
Continental AG | 4,200 | | 495,222 |
Daimler AG (Reg.) | 8,500 | | 660,782 |
Deutsche Postbank AG | 2,500 | | 219,803 |
E.ON AG (d) | 7,200 | | 1,469,170 |
ESCADA AG (a) | 5,200 | | 101,472 |
Fresenius AG | 3,800 | | 322,355 |
K&S AG | 1,300 | | 547,114 |
Linde AG | 5,000 | | 734,498 |
Muenchener Rueckversicherungs-Gesellschaft AG (Reg.) | 4,500 | | 872,920 |
RWE AG | 5,500 | | 634,853 |
SAP AG sponsored ADR | 8,900 | | 447,047 |
SolarWorld AG | 6,200 | | 334,597 |
Vossloh AG | 900 | | 130,580 |
TOTAL GERMANY | | 8,620,837 |
Greece - 0.6% |
Public Power Corp. of Greece | 8,400 | | 355,107 |
Ireland - 0.4% |
C&C Group PLC | 33,700 | | 231,480 |
Italy - 6.7% |
A2A SpA | 56,300 | | 207,860 |
ENI SpA sponsored ADR | 13,000 | | 1,001,260 |
Fiat SpA | 20,000 | | 449,503 |
Finmeccanica SpA | 17,200 | | 601,461 |
IFIL Finanziaria di Partecipazioni SpA | 8,264 | | 69,291 |
Intesa Sanpaolo SpA | 88,600 | | 665,011 |
Prysmian SpA | 2,600 | | 62,064 |
UniCredit SpA | 121,600 | | 926,559 |
TOTAL ITALY | | 3,983,009 |
Luxembourg - 1.5% |
ArcelorMittal SA (France) | 10,100 | | 895,414 |
Netherlands - 1.6% |
Koninklijke KPN NV | 52,200 | | 960,353 |
Norway - 2.5% |
Petroleum Geo-Services ASA | 19,350 | | 528,418 |
Pronova BioPharma ASA | 73,600 | | 254,491 |
Common Stocks - continued |
| Shares | | Value |
Norway - continued |
Renewable Energy Corp. AS (a) | 10,400 | | $ 356,031 |
Telenor ASA | 18,600 | | 376,385 |
TOTAL NORWAY | | 1,515,325 |
Papua New Guinea - 0.8% |
Lihir Gold Ltd. (a) | 64,004 | | 177,493 |
New Britain Palm Oil Ltd. | 27,900 | | 315,082 |
TOTAL PAPUA NEW GUINEA | | 492,575 |
Russia - 0.6% |
OAO Gazprom sponsored ADR | 7,100 | | 375,590 |
Spain - 6.0% |
Banco Santander SA | 25,300 | | 547,017 |
Iberdrola SA | 29,400 | | 431,885 |
Inditex SA | 3,300 | | 180,204 |
Repsol YPF SA sponsored ADR | 9,400 | | 381,358 |
Tecnicas Reunidas SA | 6,700 | | 508,430 |
Telefonica SA sponsored ADR | 17,400 | | 1,503,012 |
TOTAL SPAIN | | 3,551,906 |
Sweden - 2.3% |
H&M Hennes & Mauritz AB (B Shares) | 8,350 | | 496,451 |
Skandinaviska Enskilda Banken AB (A Shares) | 16,200 | | 393,657 |
TELE2 AB (B Shares) | 20,250 | | 451,488 |
TOTAL SWEDEN | | 1,341,596 |
Switzerland - 13.1% |
ABB Ltd. sponsored ADR | 19,600 | | 601,132 |
Credit Suisse Group (Reg.) | 8,465 | | 471,276 |
Julius Baer Holding AG | 5,862 | | 434,955 |
Lindt & Spruengli AG | 17 | | 556,716 |
Nestle SA (Reg.) | 3,840 | | 1,841,451 |
Novartis AG (Reg.) | 15,367 | | 774,390 |
Roche Holding AG (participation certificate) | 3,923 | | 654,086 |
SGS Societe Generale de Surveillance Holding SA (Reg.) | 215 | | 303,913 |
Sonova Holding AG | 6,291 | | 532,343 |
Syngenta AG sponsored ADR | 11,300 | | 668,734 |
UBS AG: | | | |
(NY Shares) | 7,600 | | 255,284 |
(NY Shares) rights 5/9/08 (a) | 7,600 | | 12,764 |
Zurich Financial Services AG (Reg.) | 2,251 | | 689,048 |
TOTAL SWITZERLAND | | 7,796,092 |
Common Stocks - continued |
| Shares | | Value |
United Kingdom - 26.4% |
Anglo American PLC (United Kingdom) | 13,700 | | $ 890,444 |
Bellway PLC | 14,000 | | 195,544 |
BG Group PLC | 42,000 | | 1,027,965 |
Bovis Homes Group PLC | 24,200 | | 223,858 |
British American Tobacco PLC | 18,000 | | 675,200 |
British Sky Broadcasting Group PLC (BSkyB) sponsored ADR | 10,100 | | 434,300 |
GlaxoSmithKline PLC | 29,300 | | 648,131 |
HSBC Holdings PLC sponsored ADR | 20,200 | | 1,753,158 |
Informa PLC | 26,500 | | 182,039 |
Kesa Electricals PLC | 27,100 | | 112,208 |
Lloyds TSB Group PLC | 63,100 | | 542,608 |
Man Group PLC | 45,500 | | 526,056 |
Persimmon PLC | 14,800 | | 170,524 |
Reckitt Benckiser Group PLC | 24,500 | | 1,431,162 |
Redrow PLC | 16,100 | | 82,588 |
Rio Tinto PLC (Reg.) | 9,600 | | 1,119,073 |
Royal Dutch Shell PLC Class A (United Kingdom) | 52,500 | | 2,116,890 |
Signet Group PLC | 131,800 | | 180,160 |
Standard Chartered PLC (United Kingdom) | 21,600 | | 770,455 |
Tesco PLC | 75,000 | | 639,719 |
Tullow Oil PLC | 21,600 | | 323,814 |
Vodafone Group PLC | 202,200 | | 639,876 |
Vodafone Group PLC sponsored ADR | 20,350 | | 644,281 |
Xstrata PLC | 5,700 | | 447,201 |
TOTAL UNITED KINGDOM | | 15,777,254 |
TOTAL COMMON STOCKS (Cost $54,339,104) | 57,884,821 |
Nonconvertible Preferred Stocks - 0.3% |
| | | |
Italy - 0.3% |
Istituto Finanziario Industriale SpA (IFI) (a)
(Cost $141,694) | 7,400 | | 196,040 |
Investment Companies - 0.4% |
| | | |
United States of America - 0.4% |
United States Natural Gas Fund LP ETF (a)
(Cost $248,063) | 5,100 | | 263,160 |
Money Market Funds - 6.1% |
| Shares | | Value |
Fidelity Cash Central Fund, 2.51% (b) | 1,311,633 | | $ 1,311,633 |
Fidelity Securities Lending Cash Central Fund, 2.44% (b)(c) | 2,308,515 | | 2,308,515 |
TOTAL MONEY MARKET FUNDS (Cost $3,620,148) | 3,620,148 |
TOTAL INVESTMENT PORTFOLIO - 103.8% (Cost $58,349,009) | | 61,964,169 |
NET OTHER ASSETS - (3.8)% | | (2,284,389) |
NET ASSETS - 100% | $ 59,679,780 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 36,035 |
Fidelity Securities Lending Cash Central Fund | 7,481 |
Total | $ 43,516 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| April 30, 2008 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $2,232,545) - See accompanying schedule: Unaffiliated issuers (cost $54,728,861) | $ 58,344,021 | |
Fidelity Central Funds (cost $3,620,148) | 3,620,148 | |
Total Investments (cost $58,349,009) | | $ 61,964,169 |
Cash | | 23,881 |
Receivable for investments sold | | 506,158 |
Receivable for fund shares sold | | 50,263 |
Dividends receivable | | 241,161 |
Distributions receivable from Fidelity Central Funds | | 6,926 |
Prepaid expenses | | 156 |
Receivable from investment adviser for expense reductions | | 5,843 |
Other receivables | | 10,184 |
Total assets | | 62,808,741 |
| | |
Liabilities | | |
Payable for investments purchased | $ 601,387 | |
Payable for fund shares redeemed | 111,971 | |
Accrued management fee | 35,171 | |
Distribution fees payable | 26,955 | |
Other affiliated payables | 16,961 | |
Other payables and accrued expenses | 28,001 | |
Collateral on securities loaned, at value | 2,308,515 | |
Total liabilities | | 3,128,961 |
| | |
Net Assets | | $ 59,679,780 |
Net Assets consist of: | | |
Paid in capital | | $ 58,721,781 |
Undistributed net investment income | | 257,587 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (2,914,143) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 3,614,555 |
Net Assets | | $ 59,679,780 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| April 30, 2008 (Unaudited) |
| | |
Calculation of Maximum Offering Price
Class A:
Net Asset Value and redemption price per share ($22,439,668 ÷ 1,396,202 shares) | | $ 16.07 |
| | |
Maximum offering price per share (100/94.25 of $16.07) | | $ 17.05 |
Class T:
Net Asset Value and redemption price per share ($17,749,971 ÷ 1,110,445 shares) | | $ 15.98 |
| | |
Maximum offering price per share (100/96.50 of $15.98) | | $ 16.56 |
Class B:
Net Asset Value and offering price per share ($6,938,388 ÷ 448,798 shares)A | | $ 15.46 |
| | |
Class C:
Net Asset Value and offering price per share ($10,873,932 ÷ 706,096 shares)A | | $ 15.40 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($1,677,821 ÷ 102,860 shares) | | $ 16.31 |
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
Financial Statements - continued
Statement of Operations
Six months ended April 30, 2008 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 914,201 |
Interest | | 43 |
Income from Fidelity Central Funds | | 43,516 |
| | 957,760 |
Less foreign taxes withheld | | (84,325) |
Total income | | 873,435 |
| | |
Expenses | | |
Management fee | $ 232,079 | |
Transfer agent fees | 98,573 | |
Distribution fees | 183,203 | |
Accounting and security lending fees | 17,081 | |
Custodian fees and expenses | 27,653 | |
Independent trustees' compensation | 143 | |
Registration fees | 52,194 | |
Audit | 23,903 | |
Legal | 155 | |
Miscellaneous | 10,727 | |
Total expenses before reductions | 645,711 | |
Expense reductions | (67,196) | 578,515 |
Net investment income (loss) | | 294,920 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (2,760,737) | |
Foreign currency transactions | (11,338) | |
Total net realized gain (loss) | | (2,772,075) |
Change in net unrealized appreciation (depreciation) on: Investment securities | (5,784,260) | |
Assets and liabilities in foreign currencies | (3,018) | |
Total change in net unrealized appreciation (depreciation) | | (5,787,278) |
Net gain (loss) | | (8,559,353) |
Net increase (decrease) in net assets resulting from operations | | $ (8,264,433) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended April 30, 2008
(Unaudited) | Year ended
October 31,
2007 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 294,920 | $ 1,150,432 |
Net realized gain (loss) | (2,772,075) | 14,763,852 |
Change in net unrealized appreciation (depreciation) | (5,787,278) | 3,567,591 |
Net increase (decrease) in net assets resulting
from operations | (8,264,433) | 19,481,875 |
Distributions to shareholders from net investment income | (842,961) | (305,480) |
Distributions to shareholders from net realized gain | (10,296,581) | (4,668,174) |
Total distributions | (11,139,542) | (4,973,654) |
Share transactions - net increase (decrease) | (575,918) | 2,498,409 |
Redemption fees | 1,426 | 3,169 |
Total increase (decrease) in net assets | (19,978,467) | 17,009,799 |
| | |
Net Assets | | |
Beginning of period | 79,658,247 | 62,648,448 |
End of period (including undistributed net investment income of $257,587 and undistributed net investment income of $1,144,523, respectively) | $ 59,679,780 | $ 79,658,247 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended April 30, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 20.94 | $ 17.49 | $ 13.47 | $ 11.30 | $ 10.00 | $ 8.03 |
Income from Investment Operations | | | | | | |
Net investment income (loss)E | .10 | .32 | .19 H | .12 | .01 | .04 |
Net realized and unrealized gain (loss) | (1.98) | 4.48 | 4.18 | 2.05 | 1.37 | 1.98 |
Total from investment operations | (1.88) | 4.80 | 4.37 | 2.17 | 1.38 | 2.02 |
Distributions from net investment income | (.31) | (.12) | (.13) | - | (.08) | (.05) |
Distributions from net realized gain | (2.68) | (1.23) | (.22) | - | - | - |
Total distributions | (2.99) | (1.35) | (.35) | - | (.08) | (.05) |
Redemption fees added to paid in capitalE | - J | - J | - J | - J | -J | - |
Net asset value, end of period | $ 16.07 | $ 20.94 | $ 17.49 | $ 13.47 | $ 11.30 | $ 10.00 |
Total Return B,C,D | (10.11)% | 29.16% | 33.17% | 19.20% | 13.87% | 25.30% |
Ratios to Average Net Assets F,I | | | | | | |
Expenses before reductions | 1.66%A | 1.53% | 1.81% | 2.16% | 2.41% | 3.07% |
Expenses net of fee waivers, if any | 1.50%A | 1.50% | 1.50% | 1.55% | 1.75% | 1.75% |
Expenses net of all reductions | 1.45%A | 1.46% | 1.40% | 1.44% | 1.68% | 1.69% |
Net investment income (loss) | 1.21%A | 1.69% | 1.16%H | .95% | .07% | .49% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 22,440 | $ 29,273 | $ 18,972 | $ 4,544 | $ 2,905 | $ 3,346 |
Portfolio turnover rate G | 108%A | 173% | 173% | 135% | 123% | 199% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Investment income per share reflects a special dividend which amounted to $.08 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .68%.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J 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, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 20.75 | $ 17.35 | $ 13.34 | $ 11.21 | $ 9.93 | $ 7.98 |
Income from Investment Operations | | | | | | |
Net investment income (loss)E | .08 | .27 | .14 H | .09 | (.02) | .02 |
Net realized and unrealized gain (loss) | (1.98) | 4.44 | 4.17 | 2.04 | 1.36 | 1.96 |
Total from investment operations | (1.90) | 4.71 | 4.31 | 2.13 | 1.34 | 1.98 |
Distributions from net investment income | (.19) | (.08) | (.08) | - | (.06) | (.03) |
Distributions from net realized gain | (2.68) | (1.23) | (.22) | - | - | - |
Total distributions | (2.87) | (1.31) | (.30) | - | (.06) | (.03) |
Redemption fees added to paid in capitalE | - J | - J | - J | - J | -J | - |
Net asset value, end of period | $ 15.98 | $ 20.75 | $ 17.35 | $ 13.34 | $ 11.21 | $ 9.93 |
Total Return B,C,D | (10.26)% | 28.86% | 32.95% | 19.00% | 13.54% | 24.90% |
Ratios to Average Net Assets F,I | | | | | | |
Expenses before reductions | 1.91% A | 1.80% | 2.07% | 2.45% | 2.70% | 3.34% |
Expenses net of fee waivers, if any | 1.75% A | 1.75% | 1.75% | 1.81% | 2.00% | 2.00% |
Expenses net of all reductions | 1.70% A | 1.71% | 1.65% | 1.70% | 1.93% | 1.94% |
Net investment income (loss) | .96% A | 1.44% | .91%H | .70% | (.18)% | .24% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 17,750 | $ 21,357 | $ 24,643 | $ 8,893 | $ 8,102 | $ 7,628 |
Portfolio turnover rate G | 108% A | 173% | 173% | 135% | 123% | 199% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Investment income per share reflects a special dividend which amounted to $.08 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .43%.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J 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, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 20.16 | $ 16.91 | $ 12.98 | $ 10.97 | $ 9.72 | $ 7.82 |
Income from Investment Operations | | | | | | |
Net investment income (loss)E | .04 | .17 | .06 H | .02 | (.07) | (.02) |
Net realized and unrealized gain (loss) | (1.92) | 4.34 | 4.10 | 1.99 | 1.33 | 1.92 |
Total from investment operations | (1.88) | 4.51 | 4.16 | 2.01 | 1.26 | 1.90 |
Distributions from net investment income | (.14) | (.03) | (.01) | - | (.01) | - |
Distributions from net realized gain | (2.68) | (1.23) | (.22) | - | - | - |
Total distributions | (2.82) | (1.26) | (.23) | - | (.01) | - |
Redemption fees added to paid in capitalE | - J | - J | - J | - J | -J | - |
Net asset value, end of period | $ 15.46 | $ 20.16 | $ 16.91 | $ 12.98 | $ 10.97 | $ 9.72 |
Total Return B,C,D | (10.46)% | 28.29% | 32.49% | 18.32% | 12.97% | 24.30% |
Ratios to Average Net AssetsF,I | | | | | | |
Expenses before reductions | 2.42% A | 2.31% | 2.69% | 2.94% | 3.20% | 3.87% |
Expenses net of fee waivers, if any | 2.25% A | 2.25% | 2.25% | 2.32% | 2.50% | 2.50% |
Expenses net of all reductions | 2.21% A | 2.21% | 2.15% | 2.20% | 2.43% | 2.44% |
Net investment income (loss) | .45% A | .94% | .41%H | .19% | (.68)% | (.26)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 6,938 | $ 11,206 | $ 8,529 | $ 6,415 | $ 6,288 | $ 5,596 |
Portfolio turnover rate G | 108% A | 173% | 173% | 135% | 123% | 199% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Investment income per share reflects a special dividend which amounted to $.07 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.07)%.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Amount 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, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 20.10 | $ 16.89 | $ 13.00 | $ 10.98 | $ 9.73 | $ 7.83 |
Income from Investment Operations | | | | | | |
Net investment income (loss)E | .04 | .17 | .06 H | .03 | (.07) | (.02) |
Net realized and unrealized gain (loss) | (1.91) | 4.32 | 4.07 | 1.99 | 1.33 | 1.92 |
Total from investment operations | (1.87) | 4.49 | 4.13 | 2.02 | 1.26 | 1.90 |
Distributions from net investment income | (.15) | (.05) | (.02) | - | (.01) | - |
Distributions from net realized gain | (2.68) | (1.23) | (.22) | - | - | - |
Total distributions | (2.83) | (1.28) | (.24) | - | (.01) | - |
Redemption fees added to paid in capitalE | - J | - J | - J | - J | -J | - |
Net asset value, end of period | $ 15.40 | $ 20.10 | $ 16.89 | $ 13.00 | $ 10.98 | $ 9.73 |
Total Return B,C,D | (10.45)% | 28.21% | 32.25% | 18.40% | 12.96% | 24.27% |
Ratios to Average Net Assets F,I | | | | | | |
Expenses before reductions | 2.41%A | 2.26% | 2.57% | 2.86% | 3.08% | 3.74% |
Expenses net of fee waivers, if any | 2.25%A | 2.25% | 2.25% | 2.30% | 2.50% | 2.50% |
Expenses net of all reductions | 2.21%A | 2.21% | 2.15% | 2.19% | 2.43% | 2.44% |
Net investment income (loss) | .45%A | .94% | .41%H | .20% | (.68)% | (.26)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 10,874 | $ 16,084 | $ 9,173 | $ 4,566 | $ 3,234 | $ 3,076 |
Portfolio turnover rate G | 108%A | 173% | 173% | 135% | 123% | 199% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Investment income per share reflects a special dividend which amounted to $.07 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been (.07)%.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Amount 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, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 21.27 | $ 17.72 | $ 13.63 | $ 11.40 | $ 10.07 | $ 8.10 |
Income from Investment Operations | | | | | | |
Net investment income (loss)D | .12 | .38 | .23 G | .16 | .04 | .06 |
Net realized and unrealized gain (loss) | (2.02) | 4.54 | 4.25 | 2.07 | 1.37 | 1.98 |
Total from investment operations | (1.90) | 4.92 | 4.48 | 2.23 | 1.41 | 2.04 |
Distributions from net investment income | (.38) | (.14) | (.17) | - | (.08) | (.07) |
Distributions from net realized gain | (2.68) | (1.23) | (.22) | - | - | - |
Total distributions | (3.06) | (1.37) | (.39) | - | (.08) | (.07) |
Redemption fees added to paid in capitalD | - I | - I | - I | - I | -I | - |
Net asset value, end of period | $ 16.31 | $ 21.27 | $ 17.72 | $ 13.63 | $ 11.40 | $ 10.07 |
Total Return B,C | (10.02)% | 29.57% | 33.68% | 19.56% | 14.07% | 25.39% |
Ratios to Average Net Assets E,H | | | | | |
Expenses before reductions | 1.29% A | 1.19% | 1.46% | 1.73% | 1.95% | 2.56% |
Expenses net of fee waivers, if any | 1.25% A | 1.19% | 1.25% | 1.31% | 1.50% | 1.50% |
Expenses net of all reductions | 1.20% A | 1.15% | 1.15% | 1.20% | 1.43% | 1.44% |
Net investment income (loss) | 1.46% A | 2.00% | 1.41%G | 1.20% | .32% | .73% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 1,678 | $ 1,738 | $ 1,331 | $ 566 | $ 457 | $ 371 |
Portfolio turnover rate F | 108% A | 173% | 173% | 135% | 123% | 199% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Investment income per share reflects a special dividend which amounted to $.08 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .93%.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements 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, 2008 (Unaudited)
1. Organization.
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.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
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. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued and net asset value (NAV) per share is calculated (NAV calculation) as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or do not accurately reflect fair value, valuations may be determined in accordance with procedures adopted by the Board of Trustees. For example, when developments occur between the close of a market and the close of the NYSE that may materially affect the value of some or all of the securities, or when trading in a security is halted, those securities may be fair valued. Factors used in the determination of fair value may include monitoring news to identify significant market or security specific events such as changes in the value of U.S. securities markets, reviewing developments in foreign markets and evaluating the performance of ADRs, futures contracts and exchange-traded funds. Because the Fund's utilization of fair value pricing depends on market activity, the frequency with which fair value pricing is used cannot be predicted and may be utilized to a significant extent. The value of securities used for NAV calculation under fair value pricing may differ from published prices for the same securities.
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.
Semiannual Report
3. Significant Accounting Policies - continued
Foreign Currency - continued
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. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV for processing shareholder transactions includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. 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 and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. 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 each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not result in any unrecognized tax benefits in the accompanying financial statements. Each of the Fund's federal tax returns for the prior three fiscal years remains subject to examination by the Internal Revenue Service.
Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), market discount and losses deferred due to wash sales.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 6,018,370 | |
Unrealized depreciation | (2,433,699) | |
Net unrealized appreciation (depreciation) | $ 3,584,671 | |
Cost for federal income tax purposes | $ 58,379,498 | |
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 30 days are subject to a redemption fee equal to 1.00% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.
New Accounting Pronouncements. In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and results in expanded disclosures about fair value measurements.
4. Operating Policies.
Repurchase Agreements. 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 which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
Semiannual Report
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $35,446,306 and $46,254,806, respectively.
6. 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 .26% 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 .71% 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 the 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. 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 and the total amounts paid to and retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC |
Class A | 0% | .25% | $ 29,890 | $ 1,113 |
Class T | .25% | .25% | 46,362 | 263 |
Class B | .75% | .25% | 43,128 | 32,433 |
Class C | .75% | .25% | 63,823 | 14,436 |
| | | $ 183,203 | $ 48,245 |
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, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges 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, 1.00% to .50% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. 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 | $ 9,879 |
Class T | 2,978 |
Class B* | 9,904 |
Class C* | 2,261 |
| $ 25,022 |
* 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 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 shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each class to FIIOC were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 35,838 | .30 |
Class T | 28,727 | .31 |
Class B | 13,343 | .31 |
Class C | 18,850 | .30 |
Institutional Class | 1,815 | .20 |
| $ 98,573 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
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 were $2 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $4.2 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, which amounted to $67 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, 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. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $7,481.
9. Expense Reductions.
FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
9. Expense Reductions - continued
The following classes were in reimbursement during the period
| Expense
Limitations | Reimbursement
from adviser |
| | |
Class A | 1.50% | $ 18,981 |
Class T | 1.75% | 15,194 |
Class B | 2.25% | 7,288 |
Class C | 2.25% | 9,893 |
Institutional Class | 1.25% | 390 |
| | $ 51,746 |
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 included payments of certain expenses on behalf of the Fund totaling $15,450 for the period.
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
In December 2006, the Independent Trustees, with the assistance of independent counsel, completed an investigation regarding gifts, gratuities and business entertainment provided by certain brokers to certain individuals who were employed on FMR's domestic equity trading desk during the period 2002 to 2004. The Independent Trustees and FMR agreed that, despite the absence of proof that the Fidelity mutual funds experienced diminished execution quality as a result of the improper receipt of gifts and business entertainment, the conduct at issue was serious and was worthy of redress. Accordingly, the Independent Trustees requested, and FMR agreed to make, a payment of $42 million plus accrued interest, which equaled approximately $7.3 million, to certain Fidelity mutual funds.
In March 2008, the Trustees approved a method for allocating this payment among the funds and, in total, FMR paid the fund $108, which is recorded in the accompanying Statement of Operations.
In a related administrative order dated March 5, 2008, the U.S. Securities and Exchange Commission ("SEC") announced a settlement with FMR and FMR Co., Inc. (an affiliate of FMR) involving the SEC's regulatory rules for investment advisers and the improper
Semiannual Report
10. Other - continued
receipt of gifts, gratuities and business entertainment. Without admitting or denying the SEC's findings, FMR agreed to pay an $8 million civil penalty to the United States Treasury.
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30,
2008 | Year ended
October 31,
2007 |
From net investment income | | |
Class A | $ 422,203 | $ 131,953 |
Class T | 191,381 | 120,031 |
Class B | 74,344 | 14,114 |
Class C | 114,566 | 27,366 |
Institutional Class | 40,467 | 12,016 |
Total | $ 842,961 | $ 305,480 |
From net realized gain | | |
Class A | $ 3,709,850 | $ 1,411,320 |
Class T | 2,757,536 | 1,778,779 |
Class B | 1,443,769 | 642,980 |
Class C | 2,102,997 | 731,741 |
Institutional Class | 282,429 | 103,354 |
Total | $ 10,296,581 | $ 4,668,174 |
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended April 30,
2008 | Year ended
October 31,
2007 | Six months ended April 30,
2008 | Year ended
October 31,
2007 |
Class A | | | | |
Shares sold | 222,175 | 887,671 | $ 3,703,679 | $ 16,290,832 |
Reinvestment of distributions | 215,972 | 81,628 | 3,762,228 | 1,393,387 |
Shares redeemed | (439,829) | (655,962) | (7,329,012) | (12,453,019) |
Net increase (decrease) | (1,682) | 313,337 | $ 136,895 | $ 5,231,200 |
Class T | | | | |
Shares sold | 78,502 | 628,131 | $ 1,294,495 | $ 11,365,875 |
Reinvestment of distributions | 164,143 | 110,301 | 2,846,246 | 1,869,603 |
Shares redeemed | (161,668) | (1,129,336) | (2,577,823) | (21,225,724) |
Net increase (decrease) | 80,977 | (390,904) | $ 1,562,918 | $ (7,990,246) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
12. Share Transactions - continued
| Shares | Dollars |
| Six months ended April 30,
2008 | Year ended
October 31,
2007 | Six months ended April 30,
2008 | Year ended
October 31,
2007 |
Class B | | | | |
Shares sold | 47,296 | 290,925 | $ 773,912 | $ 5,134,606 |
Reinvestment of distributions | 80,186 | 36,910 | 1,347,923 | 610,124 |
Shares redeemed | (234,650) | (276,174) | (3,636,968) | (4,941,749) |
Net increase (decrease) | (107,168) | 51,661 | $ (1,515,133) | $ 802,981 |
Class C | | | | |
Shares sold | 86,983 | 555,549 | $ 1,434,205 | $ 9,727,989 |
Reinvestment of distributions | 110,014 | 36,928 | 1,841,634 | 608,950 |
Shares redeemed | (291,252) | (335,147) | (4,510,500) | (6,006,565) |
Net increase (decrease) | (94,255) | 257,330 | $ (1,234,661) | $ 4,330,374 |
Institutional Class | | | | |
Shares sold | 38,866 | 50,928 | $ 733,506 | $ 962,437 |
Reinvestment of distributions | 11,953 | 3,929 | 211,086 | 67,898 |
Shares redeemed | (29,674) | (48,267) | (470,529) | (906,235) |
Net increase (decrease) | 21,145 | 6,590 | $ 474,063 | $ 124,100 |
Semiannual Report
A special meeting of the fund's shareholders was held on May 14, 2008. The results of votes taken among shareholders on the proposals before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1 |
To elect a Board of Trustees.A |
| # of
Votes | % of
Votes |
James C. Curvey |
Affirmative | 8,514,961,004.35 | 97.348 |
Withheld | 231,994,591.94 | 2.652 |
TOTAL | 8,746,955,596.29 | 100.000 |
Dennis J. Dirks |
Affirmative | 8,525,899,114.46 | 97.473 |
Withheld | 221,056,481.83 | 2.527 |
TOTAL | 8,746,955,596.29 | 100.000 |
Edward C. Johnson 3d |
Affirmative | 8,497,196,105.85 | 97.145 |
Withheld | 249,759,490.44 | 2.855 |
TOTAL | 8,746,955,596.29 | 100.000 |
Alan J. Lacy |
Affirmative | 8,522,858,760.40 | 97.438 |
Withheld | 224,096,835.89 | 2.562 |
TOTAL | 8,746,955,596.29 | 100.000 |
Ned C. Lautenbach |
Affirmative | 8,523,008,335.52 | 97.440 |
Withheld | 223,947,260.77 | 2.560 |
TOTAL | 8,746,955,596.29 | 100.000 |
Joseph Mauriello |
Affirmative | 8,524,890,199.58 | 97.461 |
Withheld | 222,065,396.71 | 2.539 |
TOTAL | 8,746,955,596.29 | 100.000 |
Cornelia M. Small |
Affirmative | 8,525,649,323.51 | 97.470 |
Withheld | 221,306,272.78 | 2.530 |
TOTAL | 8,746,955,596.29 | 100.000 |
| # of
Votes | % of
Votes |
William S. Stavropoulos |
Affirmative | 8,514,682,431.03 | 97.345 |
Withheld | 232,273,165.26 | 2.655 |
TOTAL | 8,746,955,596.29 | 100.000 |
David M. Thomas |
Affirmative | 8,526,972,729.02 | 97.485 |
Withheld | 219,982,867.27 | 2.515 |
TOTAL | 8,746,955,596.29 | 100.000 |
Michael E. Wiley |
Affirmative | 8,523,710,850.33 | 97.448 |
Withheld | 223,244,745.96 | 2.552 |
TOTAL | 8,746,955,596.29 | 100.000 |
PROPOSAL 2 |
To amend the Declaration of Trust of Fidelity Advisor Series VIII to reduce the required quorum for future shareholder meetings.A |
| # of
Votes | % of
Votes |
Affirmative | 4,574,398,791.46 | 52.297 |
Against | 2,140,778,913.08 | 24.475 |
Abstain | 230,752,610.67 | 2.638 |
Broker
Non-Votes | 1,801,025,281.08 | 20.590 |
TOTAL | 8,746,955,596.29 | 100.000 |
A Denotes trust-wide proposal and voting results.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Research & Analysis Company
Fidelity International Investment Advisors
Fidelity International Investment Advisors (U.K.) Limited
Fidelity Investments Japan Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
State Street Bank and Trust Company
Quincy, MA
AEURI-USAN-0608 1.784876.105
(Fidelity Investment logo)(registered trademark)
Fidelity® Advisor
Global Capital Appreciation
Fund - Class A, Class T, Class B
and Class C
Semiannual Report
April 30, 2008
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | Ned Johnson's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
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. |
Proxy Voting Results | <Click Here> | |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
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 LLC or an affiliated company.
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.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
Continuation of a credit squeeze, flat consumer spending and a potential recession weighed heavily on stocks in the opening months of 2008, though positive results in investment-grade bonds and money markets offered some comfort to investors. Financial markets are always unpredictable, but there are a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 1, 2007 to April 30, 2008).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Semiannual Report
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Beginning
Account Value
November 1, 2007 | Ending
Account Value
April 30, 2008 | Expenses Paid
During Period*
November 1, 2007 to April 30, 2008 |
Class A | | | |
Actual | $ 1,000.00 | $ 880.70 | $ 7.01 |
HypotheticalA | $ 1,000.00 | $ 1,017.40 | $ 7.52 |
Class T | | | |
Actual | $ 1,000.00 | $ 879.70 | $ 8.18 |
HypotheticalA | $ 1,000.00 | $ 1,016.16 | $ 8.77 |
Class B | | | |
Actual | $ 1,000.00 | $ 877.40 | $ 10.50 |
HypotheticalA | $ 1,000.00 | $ 1,013.67 | $ 11.27 |
Class C | | | |
Actual | $ 1,000.00 | $ 877.80 | $ 10.50 |
HypotheticalA | $ 1,000.00 | $ 1,013.67 | $ 11.27 |
Institutional Class | | | |
Actual | $ 1,000.00 | $ 882.00 | $ 5.85 |
HypotheticalA | $ 1,000.00 | $ 1,018.65 | $ 6.27 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
| Annualized
Expense Ratio |
Class A | 1.50% |
Class T | 1.75% |
Class B | 2.25% |
Class C | 2.25% |
Institutional Class | 1.25% |
Semiannual Report
Investment Changes (Unaudited)
Top Five Stocks as of April 30, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Google, Inc. Class A (sub. vtg.) (United States of America, Internet Software & Services) | 2.3 | 3.2 |
Noble Energy, Inc. (United States of America, Oil, Gas & Consumable Fuels) | 1.9 | 1.9 |
NRG Energy, Inc. (United States of America, Independent Power Producers & Energy Traders) | 1.9 | 1.7 |
Berkshire Hathaway, Inc. Class B (United States of America, Insurance) | 1.9 | 0.0 |
Hewlett-Packard Co. (United States of America, Computers & Peripherals) | 1.8 | 1.9 |
| 9.8 | |
Top Five Market Sectors as of April 30, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 20.1 | 14.0 |
Energy | 15.5 | 12.5 |
Industrials | 11.4 | 11.1 |
Information Technology | 10.8 | 9.8 |
Consumer Discretionary | 9.3 | 8.6 |
Top Five Countries as of April 30, 2008 |
(excluding cash equivalents) | % of fund's
net assets | % of fund's net assets
6 months ago |
United States of America | 39.8 | 42.1 |
United Kingdom | 8.2 | 0.0 |
Japan | 6.8 | 16.2 |
Germany | 5.2 | 2.8 |
Canada | 5.0 | 11.4 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) |
As of April 30, 2008 | As of October 31, 2007 |
| Stocks 97.1% | | | Stocks 90.7% | |
 | Bonds 0.0% | | | Bonds 0.6% | |
| Short-Term
Investments and
Net Other Assets 2.9% | | | Short-Term
Investments and
Net Other Assets 8.7% | |
Semiannual Report
Investments April 30, 2008 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 95.7% |
| Shares | | Value |
Australia - 3.2% |
Babcock & Brown Ltd. | 20,874 | | $ 289,434 |
Bradken Ltd. | 17,291 | | 134,555 |
Cochlear Ltd. | 2,189 | | 117,073 |
CSL Ltd. | 4,666 | | 175,124 |
Energy Resources of Australia Ltd. | 7,148 | | 131,476 |
QBE Insurance Group Ltd. | 9,425 | | 224,831 |
Woolworths Ltd. | 5,670 | | 153,494 |
TOTAL AUSTRALIA | | 1,225,987 |
Belgium - 0.8% |
Fortis | 10,700 | | 292,316 |
Bermuda - 0.8% |
Aquarius Platinum Ltd. (United Kingdom) | 10,500 | | 165,447 |
Seadrill Ltd. | 4,700 | | 143,124 |
TOTAL BERMUDA | | 308,571 |
Brazil - 1.7% |
Companhia Vale do Rio Doce (PN-A) sponsored ADR | 8,000 | | 254,720 |
MRV Engenharia e Participacoes SA | 9,800 | | 197,509 |
Uniao de Bancos Brasileiros SA (Unibanco) GDR | 1,500 | | 218,115 |
TOTAL BRAZIL | | 670,344 |
Canada - 5.0% |
Absolute Software Corp. (a) | 17,400 | | 211,647 |
Agnico-Eagle Mines Ltd. | 2,400 | | 150,730 |
Consolidated Thompson Iron Mines Ltd. (a) | 40,200 | | 319,732 |
EnCana Corp. | 2,900 | | 233,964 |
Goldcorp, Inc. | 5,000 | | 177,788 |
Mercator Minerals Ltd. (a) | 20,700 | | 218,695 |
Potash Corp. of Saskatchewan, Inc. | 1,400 | | 257,530 |
Rothmans, Inc. | 6,900 | | 170,393 |
Silver Wheaton Corp. (a) | 12,600 | | 167,024 |
TOTAL CANADA | | 1,907,503 |
Cayman Islands - 2.1% |
ACE Ltd. | 7,100 | | 428,059 |
Chaoda Modern Agriculture (Holdings) Ltd. | 184,000 | | 264,437 |
Suntech Power Holdings Co. Ltd. sponsored ADR (a) | 2,600 | | 116,298 |
TOTAL CAYMAN ISLANDS | | 808,794 |
China - 0.5% |
Focus Media Holding Ltd. ADR (a) | 4,900 | | 180,761 |
Common Stocks - continued |
| Shares | | Value |
Cyprus - 0.6% |
Marfin Popular Bank Public Co. | 25,100 | | $ 224,130 |
Czech Republic - 0.5% |
Ceske Energeticke Zavody AS | 2,700 | | 200,643 |
Denmark - 0.4% |
FLS Industries | 1,300 | | 137,619 |
Finland - 0.8% |
Nokian Tyres Ltd. | 3,876 | | 165,369 |
Outotec Oyj | 2,100 | | 131,755 |
TOTAL FINLAND | | 297,124 |
France - 3.9% |
AXA SA (d) | 10,900 | | 402,640 |
BNP Paribas SA | 2,300 | | 248,644 |
Bouygues SA | 3,400 | | 254,878 |
Gameloft (a) | 12,100 | | 69,702 |
Suez SA (France) | 3,600 | | 255,708 |
Vivendi | 6,724 | | 273,653 |
TOTAL FRANCE | | 1,505,225 |
Germany - 5.2% |
Allianz AG (Reg.) | 1,900 | | 385,980 |
Daimler AG | 2,600 | | 201,292 |
Deutsche Postbank AG | 2,000 | | 175,842 |
E.ON AG | 1,500 | | 306,077 |
Fresenius AG | 1,600 | | 135,728 |
Linde AG | 1,000 | | 146,900 |
Muenchener Rueckversicherungs-Gesellschaft AG (Reg.) | 1,200 | | 232,779 |
Q-Cells AG (a) | 1,200 | | 140,518 |
Vossloh AG | 800 | | 116,071 |
ZhongDe Waste Technology AG | 3,070 | | 130,550 |
TOTAL GERMANY | | 1,971,737 |
Greece - 0.4% |
Public Power Corp. of Greece | 4,000 | | 169,098 |
Hong Kong - 1.7% |
China Mobile (Hong Kong) Ltd. | 17,000 | | 292,526 |
CNOOC Ltd. | 84,000 | | 149,107 |
Esprit Holdings Ltd. | 16,600 | | 204,274 |
TOTAL HONG KONG | | 645,907 |
India - 1.1% |
LANCO Infratech Ltd. (a) | 14,373 | | 190,935 |
Common Stocks - continued |
| Shares | | Value |
India - continued |
Rural Electrification Corp. Ltd. | 1,056 | | $ 3,199 |
Satyam Computer Services Ltd. sponsored ADR | 9,000 | | 231,120 |
TOTAL INDIA | | 425,254 |
Indonesia - 0.7% |
PT Bumi Resources Tbk | 227,500 | | 164,068 |
PT Perusahaan Gas Negara Tbk Series B | 74,000 | | 97,104 |
TOTAL INDONESIA | | 261,172 |
Israel - 0.7% |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 5,600 | | 261,968 |
Italy - 2.0% |
Fiat SpA | 8,900 | | 200,029 |
Finmeccanica SpA | 4,100 | | 143,371 |
Prysmian SpA | 5,100 | | 121,741 |
UniCredit SpA | 40,300 | | 307,075 |
TOTAL ITALY | | 772,216 |
Japan - 6.8% |
Asics Corp. | 3,000 | | 30,406 |
Canon, Inc. sponsored ADR | 3,800 | | 189,886 |
East Japan Railway Co. | 28 | | 223,405 |
Hisamitsu Pharmaceutical Co., Inc. | 2,800 | | 105,197 |
Inpex Holdings, Inc. | 12 | | 134,662 |
Mitsubishi Corp. | 7,000 | | 225,307 |
Mitsui & Co. Ltd. | 10,000 | | 234,826 |
Nippon Electric Glass Co. Ltd. | 8,000 | | 124,420 |
Nitori Co. Ltd. | 1,950 | | 102,633 |
ORIX Corp. | 1,630 | | 294,838 |
Sankyo Co. Ltd. (Gunma) | 2,500 | | 150,558 |
Sanyo Electric Co. Ltd. (a) | 50,000 | | 124,743 |
Sumitomo Mitsui Financial Group, Inc. | 30 | | 258,125 |
Torishima Pump Manufacturing Co. Ltd. | 8,100 | | 140,098 |
Tsutsumi Jewelry Co. Ltd. | 5,400 | | 114,308 |
Wacom Co. Ltd. | 74 | | 149,096 |
TOTAL JAPAN | | 2,602,508 |
Korea (South) - 1.4% |
Korea Gas Corp. | 2,678 | | 207,407 |
NHN Corp. (a) | 577 | | 134,006 |
Shinhan Financial Group Co. Ltd. | 3,310 | | 191,105 |
TOTAL KOREA (SOUTH) | | 532,518 |
Common Stocks - continued |
| Shares | | Value |
Mexico - 1.1% |
America Movil SAB de CV Series L sponsored ADR | 3,600 | | $ 208,656 |
Desarrolladora Homex Sab de CV (a) | 20,000 | | 199,051 |
TOTAL MEXICO | | 407,707 |
Netherlands - 0.3% |
Fugro NV (Certificaten Van Aandelen) unit | 1,300 | | 116,327 |
Netherlands Antilles - 0.9% |
Schlumberger Ltd. (NY Shares) | 3,500 | | 351,925 |
Russia - 1.5% |
OAO Gazprom sponsored ADR | 7,892 | | 417,487 |
Vimpel Communications sponsored ADR | 5,200 | | 156,832 |
TOTAL RUSSIA | | 574,319 |
South Africa - 1.0% |
African Rainbow Minerals Ltd. | 3,800 | | 129,168 |
Exxaro Resources Ltd. | 7,600 | | 125,655 |
Murray & Roberts Holdings Ltd. | 9,800 | | 114,716 |
TOTAL SOUTH AFRICA | | 369,539 |
Spain - 1.3% |
Grupo Acciona SA | 600 | | 172,111 |
Telefonica SA | 11,500 | | 330,378 |
TOTAL SPAIN | | 502,489 |
Switzerland - 2.3% |
Nestle SA (Reg.) | 937 | | 449,333 |
Sonova Holding AG | 1,876 | | 158,747 |
Zurich Financial Services AG (Reg.) | 938 | | 287,129 |
TOTAL SWITZERLAND | | 895,209 |
Thailand - 0.4% |
Siam Commercial Bank PCL (For. Reg.) | 50,000 | | 140,290 |
United Kingdom - 8.2% |
BAE Systems PLC | 19,800 | | 183,747 |
BG Group PLC | 9,300 | | 227,621 |
British American Tobacco PLC | 7,300 | | 273,831 |
Cairn Energy PLC | 4,400 | | 274,172 |
Charter PLC | 6,500 | | 116,183 |
Clipper Windpower PLC (a) | 11,000 | | 112,306 |
HBOS PLC | 30,800 | | 288,125 |
Informa PLC | 17,800 | | 122,275 |
Man Group PLC | 19,200 | | 221,984 |
Common Stocks - continued |
| Shares | | Value |
United Kingdom - continued |
Prudential PLC | 11,400 | | $ 156,396 |
Sibir Energy PLC | 10,100 | | 125,508 |
Tesco PLC | 35,600 | | 303,653 |
Vodafone Group PLC sponsored ADR | 13,000 | | 411,580 |
Xstrata PLC | 3,800 | | 298,134 |
TOTAL UNITED KINGDOM | | 3,115,515 |
United States of America - 38.4% |
Amazon.com, Inc. (a) | 2,700 | | 212,301 |
American Express Co. | 3,800 | | 182,476 |
Applied Materials, Inc. | 9,000 | | 167,940 |
Bank of America Corp. | 8,200 | | 307,828 |
Becton, Dickinson & Co. | 3,600 | | 321,840 |
Berkshire Hathaway, Inc. Class B (a) | 160 | | 713,120 |
Chesapeake Energy Corp. | 13,200 | | 682,440 |
CIT Group, Inc. | 1,700 | | 18,513 |
Cogent Communications Group, Inc. (a) | 17,805 | | 374,083 |
Corporate Executive Board Co. | 6,700 | | 291,919 |
D.R. Horton, Inc. | 12,300 | | 190,527 |
EOG Resources, Inc. | 1,400 | | 182,672 |
Equinix, Inc. (a) | 6,400 | | 578,688 |
Fluor Corp. | 950 | | 145,227 |
Genentech, Inc. (a) | 6,490 | | 442,618 |
Google, Inc. Class A (sub. vtg.) (a) | 1,530 | | 878,669 |
Hess Corp. | 3,800 | | 403,560 |
Hewlett-Packard Co. | 15,200 | | 704,520 |
Juniper Networks, Inc. (a) | 6,300 | | 174,006 |
Lamar Advertising Co. Class A | 7,700 | | 304,458 |
Landstar System, Inc. | 12,800 | | 665,088 |
Lehman Brothers Holdings, Inc. | 6,300 | | 278,712 |
Lockheed Martin Corp. | 1,500 | | 159,060 |
Microchip Technology, Inc. | 9,200 | | 338,100 |
National Oilwell Varco, Inc. (a) | 4,600 | | 314,870 |
Noble Energy, Inc. | 8,400 | | 730,800 |
Norfolk Southern Corp. | 5,500 | | 327,690 |
NRG Energy, Inc. (a) | 16,600 | | 729,570 |
Philip Morris International, Inc. (a) | 2,200 | | 112,266 |
Polo Ralph Lauren Corp. Class A | 4,700 | | 291,917 |
Procter & Gamble Co. | 6,400 | | 429,120 |
Quicksilver Gas Services LP | 6,400 | | 159,872 |
Southwestern Energy Co. (a) | 11,750 | | 497,143 |
The Mosaic Co. (a) | 3,000 | | 367,530 |
Common Stocks - continued |
| Shares | | Value |
United States of America - continued |
The Walt Disney Co. | 15,400 | | $ 499,422 |
Valero Energy Corp. | 11,000 | | 537,350 |
VCA Antech, Inc. (a) | 13,400 | | 433,758 |
Visa, Inc. | 2,100 | | 175,245 |
Washington Mutual, Inc. (a)(e) | 5,500 | | 64,215 |
Wells Fargo & Co. | 9,000 | | 267,750 |
TOTAL UNITED STATES OF AMERICA | | 14,656,883 |
TOTAL COMMON STOCKS (Cost $33,666,297) | 36,531,598 |
Convertible Preferred Stocks - 1.4% |
| | | |
United States of America - 1.4% |
CIT Group, Inc. Series C, 8.75% | 300 | | 16,317 |
Freeport-McMoRan Copper & Gold, Inc. 6.75% | 1,200 | | 195,408 |
Lehman Brothers Holdings, Inc. 7.25% | 160 | | 188,946 |
Washington Mutual, Inc. (e) | 1 | | 140,457 |
TOTAL CONVERTIBLE PREFERRED STOCKS (Cost $468,285) | 541,128 |
Money Market Funds - 2.4% |
| | | |
Fidelity Cash Central Fund, 2.51% (b) | 476,715 | | 476,715 |
Fidelity Securities Lending Cash Central Fund, 2.44% (b)(c) | 415,800 | | 415,800 |
TOTAL MONEY MARKET FUNDS (Cost $892,515) | 892,515 |
Cash Equivalents - 0.1% |
| Maturity Amount | | |
Investments in repurchase agreements in a joint trading account at 1.95%, dated 4/30/08 due 5/1/08 (Collateralized by U.S. Treasury Obligations) #
(Cost $44,000) | $ 44,002 | | 44,000 |
TOTAL INVESTMENT PORTFOLIO - 99.6% (Cost $35,071,097) | | 38,009,241 |
NET OTHER ASSETS - 0.4% | | 164,318 |
NET ASSETS - 100% | $ 38,173,559 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $204,672 or 0.5% of net assets. |
Additional information on each holding is as follows: |
Security | Acquisition Date | Acquisition Cost |
Washington Mutual, Inc. | 4/8/08 | $ 48,125 |
Washington Mutual, Inc. | 4/8/08 | $ 100,000 |
# Additional Information on each counterparty to the repurchase agreement is as follows: |
Repurchase Agreement / Counterparty | Value |
$44,000 due 5/01/08 at 1.95% |
BNP Paribas Securities Corp. | $ 20,530 |
Fortis Securities LLC | 9,393 |
HSBC Securities (USA), Inc. | 4,692 |
ING Financial Markets LLC | 9,385 |
| $ 44,000 |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 40,828 |
Fidelity Securities Lending Cash Central Fund | 8,906 |
Total | $ 49,734 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| April 30, 2008 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $401,998 and repurchase agreements of $44,000) - See accompanying schedule: Unaffiliated issuers (cost $34,178,582) | $ 37,116,726 | |
Fidelity Central Funds (cost $892,515) | 892,515 | |
Total Investments (cost $35,071,097) | | $ 38,009,241 |
Foreign currency held at value (cost $566,464) | | 559,591 |
Receivable for investments sold | | 797,740 |
Receivable for fund shares sold | | 81,667 |
Dividends receivable | | 95,069 |
Distributions receivable from Fidelity Central Funds | | 3,829 |
Prepaid expenses | | 95 |
Other receivables | | 28,692 |
Total assets | | 39,575,924 |
| | |
Liabilities | | |
Payable to custodian bank | $ 75,429 | |
Payable for investments purchased | 740,668 | |
Payable for fund shares redeemed | 61,720 | |
Accrued management fee | 35,708 | |
Distribution fees payable | 15,872 | |
Other affiliated payables | 10,575 | |
Other payables and accrued expenses | 46,593 | |
Collateral on securities loaned, at value | 415,800 | |
Total liabilities | | 1,402,365 |
| | |
Net Assets | | $ 38,173,559 |
Net Assets consist of: | | |
Paid in capital | | $ 39,267,591 |
Undistributed net investment income | | 38,778 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (4,054,041) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 2,921,231 |
Net Assets | | $ 38,173,559 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| April 30, 2008 (Unaudited) |
| | |
Calculation of Maximum Offering Price
Class A:
Net Asset Value and redemption price per share
($12,032,466 ÷ 1,012,434 shares) | | $ 11.88 |
| | |
Maximum offering price per share (100/94.25 of $11.88) | | $ 12.60 |
Class T:
Net Asset Value and redemption price per share ($15,509,255 ÷ 1,334,243 shares) | | $ 11.62 |
| | |
Maximum offering price per share (100/96.50 of $11.62) | | $ 12.04 |
Class B:
Net Asset Value and offering price per share ($3,793,210 ÷ 343,759 shares)A | | $ 11.03 |
| | |
Class C:
Net Asset Value and offering price per share ($4,852,974 ÷ 439,598 shares)A | | $ 11.04 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($1,985,654 ÷ 162,774 shares) | | $ 12.20 |
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
Financial Statements - continued
Statement of Operations
Six months ended April 30, 2008 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 329,541 |
Interest | | 2,023 |
Income from Fidelity Central Funds | | 49,734 |
| | 381,298 |
Less foreign taxes withheld | | (24,067) |
Total income | | 357,231 |
| | |
Expenses | | |
Management fee | $ 142,595 | |
Transfer agent fees | 62,354 | |
Distribution fees | 103,015 | |
Accounting and security lending fees | 11,422 | |
Custodian fees and expenses | 83,895 | |
Independent trustees' compensation | 87 | |
Registration fees | 47,031 | |
Audit | 25,805 | |
Legal | 91 | |
Miscellaneous | 6,166 | |
Total expenses before reductions | 482,461 | |
Expense reductions | (151,798) | 330,663 |
Net investment income (loss) | | 26,568 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (3,053,953) | |
Foreign currency transactions | (2,899) | |
Total net realized gain (loss) | | (3,056,852) |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of increase in deferred foreign taxes of $2,905) | (2,862,160) | |
Assets and liabilities in foreign currencies | (26,914) | |
Total change in net unrealized appreciation (depreciation) | | (2,889,074) |
Net gain (loss) | | (5,945,926) |
Net increase (decrease) in net assets resulting from operations | | $ (5,919,358) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended
April 30, 2008
(Unaudited) | Year ended
October 31,
2007 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 26,568 | $ (104,872) |
Net realized gain (loss) | (3,056,852) | 5,836,387 |
Change in net unrealized appreciation (depreciation) | (2,889,074) | 3,378,282 |
Net increase (decrease) in net assets resulting
from operations | (5,919,358) | 9,109,797 |
Distributions to shareholders from net realized gain | (5,633,988) | (7,528,976) |
Share transactions - net increase (decrease) | 828,893 | (4,022,385) |
Redemption fees | 3,296 | 1,520 |
Total increase (decrease) in net assets | (10,721,157) | (2,440,044) |
| | |
Net Assets | | |
Beginning of period | 48,894,716 | 51,334,760 |
End of period (including undistributed net investment income of $38,778 and undistributed net investment income of $12,210, respectively) | $ 38,173,559 | $ 48,894,716 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended April 30, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | |
Net asset value, beginning of period | $ 15.38 | $ 14.83 | $ 13.68 | $ 11.88 | $ 10.73 | $ 8.62 |
Income from
nvestment Operations | | | | | |
Net investment income (loss) E | .02 | .01 | .01 | .05 | (.04) | (.02) |
Net realized and unrealized gain (loss) | (1.72) | 2.69 | 1.20 | 1.75 | 1.19 | 2.13 |
Total from investment operations | (1.70) | 2.70 | 1.21 | 1.80 | 1.15 | 2.11 |
Distributions from net investment income | - | - | (.04) | - | - | - |
Distributions from net realized gain | (1.80) | (2.15) | (.02) | - | - | - |
Total distributions | (1.80) | (2.15) | (.06) | - | - | - |
Redemption fees added to paid in capital E | - I | - I | - I | - I | - I | - |
Net asset value, end of period | $ 11.88 | $ 15.38 | $ 14.83 | $ 13.68 | $ 11.88 | $ 10.73 |
Total Return B, C, D | (11.93)% | 20.55% | 8.86% | 15.15% | 10.72% | 24.48% |
Ratios to Average Net Assets F, H | | | | |
Expenses before reductions | 2.12% A | 1.81% | 1.69% | 1.76% | 1.97% | 2.25% |
Expenses net of fee waivers, if any | 1.50% A | 1.50% | 1.50% | 1.56% | 1.75% | 1.76% |
Expenses net of all reductions | 1.38% A | 1.45% | 1.46% | 1.54% | 1.72% | 1.73% |
Net investment income (loss) | .39% A | .06% | .06% | .39% | (.33)% | (.27)% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 12,032 | $ 14,000 | $ 10,956 | $ 10,101 | $ 8,450 | $ 4,436 |
Portfolio turnover rate G | 324% A | 102% | 251% | 52% | 59% | 53% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements 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
Financial Highlights - Class T
| Six months ended April 30, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | |
Net asset value, beginning of period | $ 15.05 | $ 14.59 | $ 13.46 | $ 11.71 | $ 10.61 | $ 8.54 |
Income from
Investment Operations | | | | | |
Net investment income (loss) E | .01 | (.03) | (.03) | .02 | (.07) | (.05) |
Net realized and unrealized gain (loss) | (1.69) | 2.64 | 1.19 | 1.73 | 1.17 | 2.12 |
Total from investment operations | (1.68) | 2.61 | 1.16 | 1.75 | 1.10 | 2.07 |
Distributions from net investment income | - | - | (.01) | - | - | - |
Distributions from net realized gain | (1.75) | (2.15) | (.02) | - | - | - |
Total distributions | (1.75) | (2.15) | (.03) | - | - | - |
Redemption fees added to paid in capital E | - I | - I | - I | - I | - I | - |
Net asset value, end of period | $ 11.62 | $ 15.05 | $ 14.59 | $ 13.46 | $ 11.71 | $ 10.61 |
Total Return B, C, D | (12.03)% | 20.24% | 8.62% | 14.94% | 10.37% | 24.24% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 2.40% A | 2.08% | 1.99% | 2.09% | 2.39% | 2.65% |
Expenses net of fee waivers, if any | 1.75% A | 1.75% | 1.75% | 1.81% | 2.00% | 2.01% |
Expenses net of all reductions | 1.63% A | 1.71% | 1.71% | 1.79% | 1.97% | 1.98% |
Net investment income (loss) | .14% A | (.19)% | (.19)% | .14% | (.58)% | (.52)% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 15,509 | $ 22,039 | $ 26,780 | $ 28,786 | $ 20,966 | $ 17,334 |
Portfolio turnover rate G | 324% A | 102% | 251% | 52% | 59% | 53% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements 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
Financial Highlights - Class B
| Six months ended April 30, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 14.34 | $ 14.06 | $ 13.01 | $ 11.38 | $ 10.36 | $ 8.38 |
Income from
Investment Operations | | | | | |
Net investment income (loss) E | (.02) | (.09) | (.10) | (.04) | (.12) | (.09) |
Net realized and unrealized gain (loss) | (1.61) | 2.52 | 1.15 | 1.67 | 1.14 | 2.07 |
Total from investment operations | (1.63) | 2.43 | 1.05 | 1.63 | 1.02 | 1.98 |
Distributions from net realized gain | (1.68) | (2.15) | - | - | - | - |
Redemption fees added to paid in capital E | - I | -I | -I | -I | -I | - |
Net asset value, end of period | $ 11.03 | $ 14.34 | $ 14.06 | $ 13.01 | $ 11.38 | $ 10.36 |
Total Return B, C, D | (12.26)% | 19.65% | 8.07% | 14.32% | 9.85% | 23.63% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 2.88% A | 2.57% | 2.52% | 2.61% | 3.00% | 3.25% |
Expenses net of fee waivers, if any | 2.25% A | 2.25% | 2.25% | 2.31% | 2.50% | 2.50% |
Expenses net of all reductions | 2.13% A | 2.20% | 2.22% | 2.29% | 2.47% | 2.47% |
Net investment income (loss) | (.36)% A | (.69)% | (.69)% | (.36)% | (1.08)% | (1.01)% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 3,793 | $ 5,029 | $ 5,788 | $ 6,464 | $ 5,575 | $ 4,918 |
Portfolio turnover rate G | 324% A | 102% | 251% | 52% | 59% | 53% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements 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
Financial Highlights - Class C
| Six months ended April 30, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 14.36 | $ 14.08 | $ 13.02 | $ 11.39 | $ 10.38 | $ 8.39 |
Income from
Investment Operations | | | | | |
Net investment income (loss) E | (.02) | (.09) | (.10) | (.05) | (.12) | (.09) |
Net realized and unrealized gain (loss) | (1.61) | 2.52 | 1.16 | 1.68 | 1.13 | 2.08 |
Total from investment operations | (1.63) | 2.43 | 1.06 | 1.63 | 1.01 | 1.99 |
Distributions from net realized gain | (1.69) | (2.15) | - | - | - | - |
Redemption fees added to paid in capital E | - I | -I | -I | -I | -I | - |
Net asset value, end of period | $ 11.04 | $ 14.36 | $ 14.08 | $ 13.02 | $ 11.39 | $ 10.38 |
Total Return B, C, D | (12.22)% | 19.62% | 8.14% | 14.31% | 9.73% | 23.72% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 2.88% A | 2.57% | 2.50% | 2.59% | 2.87% | 3.10% |
Expenses net of fee waivers, if any | 2.25% A | 2.25% | 2.25% | 2.31% | 2.50% | 2.50% |
Expenses net of all reductions | 2.13% A | 2.20% | 2.21% | 2.29% | 2.47% | 2.47% |
Net investment income (loss) | (.36)% A | (.69)% | (.69)% | (.36)% | (1.08)% | (1.01)% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 4,853 | $ 5,352 | $ 5,348 | $ 5,396 | $ 3,959 | $ 3,190 |
Portfolio turnover rate G | 324% A | 102% | 251% | 52% | 59% | 53% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements 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
Financial Highlights - Institutional Class
| Six months ended April 30, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | |
Net asset value, beginning of period | $ 15.76 | $ 15.11 | $ 13.93 | $ 12.06 | $ 10.88 | $ 8.68 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .04 | .05 | .05 | .09 | (.01) | - |
Net realized and unrealized gain (loss) | (1.77) | 2.75 | 1.22 | 1.78 | 1.19 | 2.20 |
Total from investment operations | (1.73) | 2.80 | 1.27 | 1.87 | 1.18 | 2.20 |
Distributions from net investment income | - | - | (.07) | - | - | - |
Distributions from net realized gain | (1.83) | (2.15) | (.02) | - | - | - |
Total distributions | (1.83) | (2.15) | (.09) | - | - | - |
Redemption fees added to paid in capital D | - H | -H | -H | -H | -H | - |
Net asset value, end of period | $ 12.20 | $ 15.76 | $ 15.11 | $ 13.93 | $ 12.06 | $ 10.88 |
Total Return B, C | (11.80)% | 20.88% | 9.15% | 15.51% | 10.85% | 25.35% |
Ratios to Average Net Assets E, G | | | | | |
Expenses before reductions | 1.75% A | 1.43% | 1.29% | 1.42% | 1.55% | 1.87% |
Expenses net of fee waivers, if any | 1.25% A | 1.25% | 1.25% | 1.31% | 1.50% | 1.50% |
Expenses net of all reductions | 1.13% A | 1.20% | 1.21% | 1.29% | 1.47% | 1.48% |
Net investment income (loss) | .64% A | .31% | .31% | .64% | (.08)% | (.01)% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 1,986 | $ 2,476 | $ 2,464 | $ 1,800 | $ 1,187 | $ 175 |
Portfolio turnover rate F | 324% A | 102% | 251% | 52% | 59% | 53% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements 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
Notes to Financial Statements
For the period ended April 30, 2008 (Unaudited)
1. Organization.
Fidelity Advisor Global 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.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
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. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued and net asset value (NAV) per share is calculated (NAV calculation) as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or do not accurately reflect fair value, valuations may be determined in accordance with procedures adopted by the Board of Trustees. For example, when developments occur between the close of a market and the close of the NYSE that may materially affect the value of some or all of the securities, or when trading in a security is halted, those securities may be fair valued. Factors used in the determination of fair value may include monitoring news to identify significant market or security specific events such as changes in the value of U.S. securities markets, reviewing developments in foreign markets and evaluating the performance of ADRs, futures contracts and exchange-traded funds. Because the Fund's utilization of fair value pricing depends on market activity, the frequency with which fair value pricing is used cannot be predicted and may be utilized to a significant extent. The value of securities used for NAV calculation under fair value pricing may differ from published prices for the same securities.
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.
Semiannual Report
3. Significant Accounting Policies - continued
Foreign Currency - continued
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. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV for processing shareholder transactions includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. 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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. 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 each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not result in any unrecognized tax benefits in the accompanying financial statements. Each of the Fund's federal tax returns for the prior three fiscal years remains subject to examination by the Internal Revenue Service. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), market discount, partnerships, certain foreign taxes and losses deferred due to wash sales.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 4,129,829 |
Unrealized depreciation | (1,419,029) |
Net unrealized appreciation (depreciation) | $ 2,710,800 |
Cost for federal income tax purposes | $ 35,298,441 |
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 30 days are subject to a redemption fee equal to 1.00% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.
New Accounting Pronouncement. In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and results in expanded disclosures about fair value measurements.
4. Operating Policies.
Repurchase Agreements. 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 which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in
Semiannual Report
4. Operating Policies - continued
Repurchase Agreements - continued
segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
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 at the end of the Fund's Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $62,995,166 and $64,345,322, respectively.
6. 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 .26% 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 the performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of the Institutional Class of the Fund as compared to an appropriate benchmark index. The Fund's performance period began on July 1, 2007 and subsequent months will be added until the performance period includes 36 months. The Fund's performance adjustment will take effect in June, 2008.
For the period, the total annualized management fee rate was .71% of the Fund's average net assets.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. 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. 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 and the total amounts paid to and retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC |
Class A | 0% | .25% | $ 15,033 | $ 746 |
Class T | .25% | .25% | 43,510 | 231 |
Class B | .75% | .25% | 20,666 | 15,520 |
Class C | .75% | .25% | 23,806 | 2,601 |
| | | $ 103,015 | $ 19,098 |
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, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges 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, 1.00% to .50% for certain purchases of Class A shares and ..25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 1,756 |
Class T | 2,060 |
Class B* | 3,412 |
Class C* | 293 |
| $ 7,521 |
* 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 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 shareholder reports, except proxy statements.
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
For the period, the total transfer agent fees paid by each class to FIIOC were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 18,194 | .30 |
Class T | 28,696 | .33 |
Class B | 6,354 | .31 |
Class C | 7,261 | .30 |
Institutional Class | 1,849 | .18 |
| $ 62,354 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
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 were $171 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $4.2 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, which amounted to $41 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
8. Security Lending - continued
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. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $8,906.
9. Expense Reductions.
FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense
Limitations | Reimbursement
from adviser |
Class A | 1.50% | $ 39,078 |
Class T | 1.75% | 55,171 |
Class B | 2.25% | 13,014 |
Class C | 2.25% | 14,750 |
Institutional Class | 1.25% | 5,097 |
| | $ 127,110 |
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 included payments of certain expenses on behalf of the Fund totaling $24,688 for the period.
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
10. Other - continued
In December 2006, the Independent Trustees, with the assistance of independent counsel, completed an investigation regarding gifts, gratuities and business entertainment provided by certain brokers to certain individuals who were employed on FMR's domestic equity trading desk during the period 2002 to 2004. The Independent Trustees and FMR agreed that, despite the absence of proof that the Fidelity mutual funds experienced diminished execution quality as a result of the improper receipt of gifts and business entertainment, the conduct at issue was serious and was worthy of redress. Accordingly, the Independent Trustees requested, and FMR agreed to make, a payment of $42 million plus accrued interest, which equaled approximately $7.3 million, to certain Fidelity mutual funds.
In March 2008, the Trustees approved a method for allocating this payment among the funds and, in total, FMR paid the fund $2,363, which is recorded in the accompanying Statement of Operations.
In a related administrative order dated March 5, 2008, the U.S. Securities and Exchange Commission ("SEC") announced a settlement with FMR and FMR Co., Inc. (an affiliate of FMR) involving the SEC's regulatory rules for investment advisers and the improper receipt of gifts, gratuities and business entertainment. Without admitting or denying the SEC's findings, FMR agreed to pay an $8 million civil penalty to the United States Treasury.
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30,
2008 | Year ended
October 31,
2007 |
From net realized gain | | |
Class A | $ 1,564,268 | $ 1,605,953 |
Class T | 2,554,809 | 3,892,392 |
Class B | 579,670 | 859,727 |
Class C | 647,099 | 818,416 |
Institutional Class | 288,142 | 352,488 |
Total | $ 5,633,988 | $ 7,528,976 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended April 30,
2008 | Year ended
October 31,
2007 | Six months ended April 30,
2008 | Year ended
October 31,
2007 |
Class A | | | | |
Shares sold | 267,950 | 317,426 | $ 3,121,431 | $ 4,551,831 |
Reinvestment of distributions | 119,266 | 117,030 | 1,527,791 | 1,549,483 |
Shares redeemed | (284,823) | (262,944) | (3,458,862) | (3,684,586) |
Net increase (decrease) | 102,393 | 171,512 | $ 1,190,360 | $ 2,416,728 |
Class T | | | | |
Shares sold | 130,147 | 275,123 | $ 1,552,100 | $ 3,836,949 |
Reinvestment of distributions | 200,342 | 296,053 | 2,512,291 | 3,842,771 |
Shares redeemed | (460,311) | (942,615) | (5,300,462) | (13,037,243) |
Net increase (decrease) | (129,822) | (371,439) | $ (1,236,071) | $ (5,357,523) |
Class B | | | | |
Shares sold | 24,037 | 54,071 | $ 271,569 | $ 718,841 |
Reinvestment of distributions | 43,292 | 62,934 | 516,478 | 781,643 |
Shares redeemed | (74,195) | (178,017) | (812,582) | (2,365,148) |
Net increase (decrease) | (6,866) | (61,012) | $ (24,535) | $ (864,664) |
Class C | | | | |
Shares sold | 55,720 | 79,702 | $ 642,860 | $ 1,057,436 |
Reinvestment of distributions | 50,878 | 60,320 | 606,979 | 750,384 |
Shares redeemed | (39,668) | (147,310) | (432,352) | (1,939,803) |
Net increase (decrease) | 66,930 | (7,288) | $ 817,487 | $ (131,983) |
Institutional Class | | | | |
Shares sold | 4,850 | 10,485 | $ 58,348 | $ 151,256 |
Reinvestment of distributions | 10,610 | 13,152 | 139,410 | 177,952 |
Shares redeemed | (9,820) | (29,545) | (116,106) | (414,151) |
Net increase (decrease) | 5,640 | (5,908) | $ 81,652 | $ (84,943) |
Semiannual Report
A special meeting of the fund's shareholders was held on May 14, 2008. The results of votes taken among shareholders on the proposals before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1 |
To elect a Board of Trustees.A |
| # of
Votes | % of
Votes |
James C. Curvey |
Affirmative | 8,514,961,004.35 | 97.348 |
Withheld | 231,994,591.94 | 2.652 |
TOTAL | 8,746,955,596.29 | 100.000 |
Dennis J. Dirks |
Affirmative | 8,525,899,114.46 | 97.473 |
Withheld | 221,056,481.83 | 2.527 |
TOTAL | 8,746,955,596.29 | 100.000 |
Edward C. Johnson 3d |
Affirmative | 8,497,196,105.85 | 97.145 |
Withheld | 249,759,490.44 | 2.855 |
TOTAL | 8,746,955,596.29 | 100.000 |
Alan J. Lacy |
Affirmative | 8,522,858,760.40 | 97.438 |
Withheld | 224,096,835.89 | 2.562 |
TOTAL | 8,746,955,596.29 | 100.000 |
Ned C. Lautenbach |
Affirmative | 8,523,008,335.52 | 97.440 |
Withheld | 223,947,260.77 | 2.560 |
TOTAL | 8,746,955,596.29 | 100.000 |
Joseph Mauriello |
Affirmative | 8,524,890,199.58 | 97.461 |
Withheld | 222,065,396.71 | 2.539 |
TOTAL | 8,746,955,596.29 | 100.000 |
Cornelia M. Small |
Affirmative | 8,525,649,323.51 | 97.470 |
Withheld | 221,306,272.78 | 2.530 |
TOTAL | 8,746,955,596.29 | 100.000 |
William S. Stavropoulos |
Affirmative | 8,514,682,431.03 | 97.345 |
Withheld | 232,273,165.26 | 2.655 |
TOTAL | 8,746,955,596.29 | 100.000 |
David M. Thomas |
Affirmative | 8,526,972,729.02 | 97.485 |
Withheld | 219,982,867.27 | 2.515 |
TOTAL | 8,746,955,596.29 | 100.000 |
Michael E. Wiley |
Affirmative | 8,523,710,850.33 | 97.448 |
Withheld | 223,244,745.96 | 2.552 |
TOTAL | 8,746,955,596.29 | 100.000 |
PROPOSAL 2 |
To amend the Declaration of Trust of Fidelity Advisor Series VIII to reduce the required quorum for future shareholder meetings.A |
| # of
Votes | % of
Votes |
Affirmative | 4,574,398,791.46 | 52.297 |
Against | 2,140,778,913.08 | 24.475 |
Abstain | 230,752,610.67 | 2.638 |
Broker
Non-Votes | 1,801,025,281.08 | 20.590 |
TOTAL | 8,746,955,596.29 | 100.000 |
A Denotes trust-wide proposal and voting results.
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 Research & Analysis Company
Fidelity International
Investment Advisors
Fidelity Investments Japan Limited
Fidelity International Investment Advisors (U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
State Street Bank and Trust Company
Quincy, MA
AGLO-USAN-0608 1.784880.105
(Fidelity Investment logo)(registered trademark)
Fidelity® Advisor
Global Capital Appreciation
Fund - Institutional Class
Semiannual Report
April 30, 2008
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | Ned Johnson's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
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. |
Proxy Voting Results | <Click Here> | |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
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 LLC or an affiliated company.
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.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
Continuation of a credit squeeze, flat consumer spending and a potential recession weighed heavily on stocks in the opening months of 2008, though positive results in investment-grade bonds and money markets offered some comfort to investors. Financial markets are always unpredictable, but there are a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 1, 2007 to April 30, 2008).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Semiannual Report
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Beginning
Account Value
November 1, 2007 | Ending
Account Value
April 30, 2008 | Expenses Paid
During Period*
November 1, 2007 to April 30, 2008 |
Class A | | | |
Actual | $ 1,000.00 | $ 880.70 | $ 7.01 |
HypotheticalA | $ 1,000.00 | $ 1,017.40 | $ 7.52 |
Class T | | | |
Actual | $ 1,000.00 | $ 879.70 | $ 8.18 |
HypotheticalA | $ 1,000.00 | $ 1,016.16 | $ 8.77 |
Class B | | | |
Actual | $ 1,000.00 | $ 877.40 | $ 10.50 |
HypotheticalA | $ 1,000.00 | $ 1,013.67 | $ 11.27 |
Class C | | | |
Actual | $ 1,000.00 | $ 877.80 | $ 10.50 |
HypotheticalA | $ 1,000.00 | $ 1,013.67 | $ 11.27 |
Institutional Class | | | |
Actual | $ 1,000.00 | $ 882.00 | $ 5.85 |
HypotheticalA | $ 1,000.00 | $ 1,018.65 | $ 6.27 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
| Annualized
Expense Ratio |
Class A | 1.50% |
Class T | 1.75% |
Class B | 2.25% |
Class C | 2.25% |
Institutional Class | 1.25% |
Semiannual Report
Investment Changes (Unaudited)
Top Five Stocks as of April 30, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Google, Inc. Class A (sub. vtg.) (United States of America, Internet Software & Services) | 2.3 | 3.2 |
Noble Energy, Inc. (United States of America, Oil, Gas & Consumable Fuels) | 1.9 | 1.9 |
NRG Energy, Inc. (United States of America, Independent Power Producers & Energy Traders) | 1.9 | 1.7 |
Berkshire Hathaway, Inc. Class B (United States of America, Insurance) | 1.9 | 0.0 |
Hewlett-Packard Co. (United States of America, Computers & Peripherals) | 1.8 | 1.9 |
| 9.8 | |
Top Five Market Sectors as of April 30, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 20.1 | 14.0 |
Energy | 15.5 | 12.5 |
Industrials | 11.4 | 11.1 |
Information Technology | 10.8 | 9.8 |
Consumer Discretionary | 9.3 | 8.6 |
Top Five Countries as of April 30, 2008 |
(excluding cash equivalents) | % of fund's
net assets | % of fund's net assets
6 months ago |
United States of America | 39.8 | 42.1 |
United Kingdom | 8.2 | 0.0 |
Japan | 6.8 | 16.2 |
Germany | 5.2 | 2.8 |
Canada | 5.0 | 11.4 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) |
As of April 30, 2008 | As of October 31, 2007 |
| Stocks 97.1% | | | Stocks 90.7% | |
| Bonds 0.0% | | | Bonds 0.6% | |
| Short-Term
Investments and
Net Other Assets 2.9% | | | Short-Term
Investments and
Net Other Assets 8.7% | |
Semiannual Report
Investments April 30, 2008 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 95.7% |
| Shares | | Value |
Australia - 3.2% |
Babcock & Brown Ltd. | 20,874 | | $ 289,434 |
Bradken Ltd. | 17,291 | | 134,555 |
Cochlear Ltd. | 2,189 | | 117,073 |
CSL Ltd. | 4,666 | | 175,124 |
Energy Resources of Australia Ltd. | 7,148 | | 131,476 |
QBE Insurance Group Ltd. | 9,425 | | 224,831 |
Woolworths Ltd. | 5,670 | | 153,494 |
TOTAL AUSTRALIA | | 1,225,987 |
Belgium - 0.8% |
Fortis | 10,700 | | 292,316 |
Bermuda - 0.8% |
Aquarius Platinum Ltd. (United Kingdom) | 10,500 | | 165,447 |
Seadrill Ltd. | 4,700 | | 143,124 |
TOTAL BERMUDA | | 308,571 |
Brazil - 1.7% |
Companhia Vale do Rio Doce (PN-A) sponsored ADR | 8,000 | | 254,720 |
MRV Engenharia e Participacoes SA | 9,800 | | 197,509 |
Uniao de Bancos Brasileiros SA (Unibanco) GDR | 1,500 | | 218,115 |
TOTAL BRAZIL | | 670,344 |
Canada - 5.0% |
Absolute Software Corp. (a) | 17,400 | | 211,647 |
Agnico-Eagle Mines Ltd. | 2,400 | | 150,730 |
Consolidated Thompson Iron Mines Ltd. (a) | 40,200 | | 319,732 |
EnCana Corp. | 2,900 | | 233,964 |
Goldcorp, Inc. | 5,000 | | 177,788 |
Mercator Minerals Ltd. (a) | 20,700 | | 218,695 |
Potash Corp. of Saskatchewan, Inc. | 1,400 | | 257,530 |
Rothmans, Inc. | 6,900 | | 170,393 |
Silver Wheaton Corp. (a) | 12,600 | | 167,024 |
TOTAL CANADA | | 1,907,503 |
Cayman Islands - 2.1% |
ACE Ltd. | 7,100 | | 428,059 |
Chaoda Modern Agriculture (Holdings) Ltd. | 184,000 | | 264,437 |
Suntech Power Holdings Co. Ltd. sponsored ADR (a) | 2,600 | | 116,298 |
TOTAL CAYMAN ISLANDS | | 808,794 |
China - 0.5% |
Focus Media Holding Ltd. ADR (a) | 4,900 | | 180,761 |
Common Stocks - continued |
| Shares | | Value |
Cyprus - 0.6% |
Marfin Popular Bank Public Co. | 25,100 | | $ 224,130 |
Czech Republic - 0.5% |
Ceske Energeticke Zavody AS | 2,700 | | 200,643 |
Denmark - 0.4% |
FLS Industries | 1,300 | | 137,619 |
Finland - 0.8% |
Nokian Tyres Ltd. | 3,876 | | 165,369 |
Outotec Oyj | 2,100 | | 131,755 |
TOTAL FINLAND | | 297,124 |
France - 3.9% |
AXA SA (d) | 10,900 | | 402,640 |
BNP Paribas SA | 2,300 | | 248,644 |
Bouygues SA | 3,400 | | 254,878 |
Gameloft (a) | 12,100 | | 69,702 |
Suez SA (France) | 3,600 | | 255,708 |
Vivendi | 6,724 | | 273,653 |
TOTAL FRANCE | | 1,505,225 |
Germany - 5.2% |
Allianz AG (Reg.) | 1,900 | | 385,980 |
Daimler AG | 2,600 | | 201,292 |
Deutsche Postbank AG | 2,000 | | 175,842 |
E.ON AG | 1,500 | | 306,077 |
Fresenius AG | 1,600 | | 135,728 |
Linde AG | 1,000 | | 146,900 |
Muenchener Rueckversicherungs-Gesellschaft AG (Reg.) | 1,200 | | 232,779 |
Q-Cells AG (a) | 1,200 | | 140,518 |
Vossloh AG | 800 | | 116,071 |
ZhongDe Waste Technology AG | 3,070 | | 130,550 |
TOTAL GERMANY | | 1,971,737 |
Greece - 0.4% |
Public Power Corp. of Greece | 4,000 | | 169,098 |
Hong Kong - 1.7% |
China Mobile (Hong Kong) Ltd. | 17,000 | | 292,526 |
CNOOC Ltd. | 84,000 | | 149,107 |
Esprit Holdings Ltd. | 16,600 | | 204,274 |
TOTAL HONG KONG | | 645,907 |
India - 1.1% |
LANCO Infratech Ltd. (a) | 14,373 | | 190,935 |
Common Stocks - continued |
| Shares | | Value |
India - continued |
Rural Electrification Corp. Ltd. | 1,056 | | $ 3,199 |
Satyam Computer Services Ltd. sponsored ADR | 9,000 | | 231,120 |
TOTAL INDIA | | 425,254 |
Indonesia - 0.7% |
PT Bumi Resources Tbk | 227,500 | | 164,068 |
PT Perusahaan Gas Negara Tbk Series B | 74,000 | | 97,104 |
TOTAL INDONESIA | | 261,172 |
Israel - 0.7% |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 5,600 | | 261,968 |
Italy - 2.0% |
Fiat SpA | 8,900 | | 200,029 |
Finmeccanica SpA | 4,100 | | 143,371 |
Prysmian SpA | 5,100 | | 121,741 |
UniCredit SpA | 40,300 | | 307,075 |
TOTAL ITALY | | 772,216 |
Japan - 6.8% |
Asics Corp. | 3,000 | | 30,406 |
Canon, Inc. sponsored ADR | 3,800 | | 189,886 |
East Japan Railway Co. | 28 | | 223,405 |
Hisamitsu Pharmaceutical Co., Inc. | 2,800 | | 105,197 |
Inpex Holdings, Inc. | 12 | | 134,662 |
Mitsubishi Corp. | 7,000 | | 225,307 |
Mitsui & Co. Ltd. | 10,000 | | 234,826 |
Nippon Electric Glass Co. Ltd. | 8,000 | | 124,420 |
Nitori Co. Ltd. | 1,950 | | 102,633 |
ORIX Corp. | 1,630 | | 294,838 |
Sankyo Co. Ltd. (Gunma) | 2,500 | | 150,558 |
Sanyo Electric Co. Ltd. (a) | 50,000 | | 124,743 |
Sumitomo Mitsui Financial Group, Inc. | 30 | | 258,125 |
Torishima Pump Manufacturing Co. Ltd. | 8,100 | | 140,098 |
Tsutsumi Jewelry Co. Ltd. | 5,400 | | 114,308 |
Wacom Co. Ltd. | 74 | | 149,096 |
TOTAL JAPAN | | 2,602,508 |
Korea (South) - 1.4% |
Korea Gas Corp. | 2,678 | | 207,407 |
NHN Corp. (a) | 577 | | 134,006 |
Shinhan Financial Group Co. Ltd. | 3,310 | | 191,105 |
TOTAL KOREA (SOUTH) | | 532,518 |
Common Stocks - continued |
| Shares | | Value |
Mexico - 1.1% |
America Movil SAB de CV Series L sponsored ADR | 3,600 | | $ 208,656 |
Desarrolladora Homex Sab de CV (a) | 20,000 | | 199,051 |
TOTAL MEXICO | | 407,707 |
Netherlands - 0.3% |
Fugro NV (Certificaten Van Aandelen) unit | 1,300 | | 116,327 |
Netherlands Antilles - 0.9% |
Schlumberger Ltd. (NY Shares) | 3,500 | | 351,925 |
Russia - 1.5% |
OAO Gazprom sponsored ADR | 7,892 | | 417,487 |
Vimpel Communications sponsored ADR | 5,200 | | 156,832 |
TOTAL RUSSIA | | 574,319 |
South Africa - 1.0% |
African Rainbow Minerals Ltd. | 3,800 | | 129,168 |
Exxaro Resources Ltd. | 7,600 | | 125,655 |
Murray & Roberts Holdings Ltd. | 9,800 | | 114,716 |
TOTAL SOUTH AFRICA | | 369,539 |
Spain - 1.3% |
Grupo Acciona SA | 600 | | 172,111 |
Telefonica SA | 11,500 | | 330,378 |
TOTAL SPAIN | | 502,489 |
Switzerland - 2.3% |
Nestle SA (Reg.) | 937 | | 449,333 |
Sonova Holding AG | 1,876 | | 158,747 |
Zurich Financial Services AG (Reg.) | 938 | | 287,129 |
TOTAL SWITZERLAND | | 895,209 |
Thailand - 0.4% |
Siam Commercial Bank PCL (For. Reg.) | 50,000 | | 140,290 |
United Kingdom - 8.2% |
BAE Systems PLC | 19,800 | | 183,747 |
BG Group PLC | 9,300 | | 227,621 |
British American Tobacco PLC | 7,300 | | 273,831 |
Cairn Energy PLC | 4,400 | | 274,172 |
Charter PLC | 6,500 | | 116,183 |
Clipper Windpower PLC (a) | 11,000 | | 112,306 |
HBOS PLC | 30,800 | | 288,125 |
Informa PLC | 17,800 | | 122,275 |
Man Group PLC | 19,200 | | 221,984 |
Common Stocks - continued |
| Shares | | Value |
United Kingdom - continued |
Prudential PLC | 11,400 | | $ 156,396 |
Sibir Energy PLC | 10,100 | | 125,508 |
Tesco PLC | 35,600 | | 303,653 |
Vodafone Group PLC sponsored ADR | 13,000 | | 411,580 |
Xstrata PLC | 3,800 | | 298,134 |
TOTAL UNITED KINGDOM | | 3,115,515 |
United States of America - 38.4% |
Amazon.com, Inc. (a) | 2,700 | | 212,301 |
American Express Co. | 3,800 | | 182,476 |
Applied Materials, Inc. | 9,000 | | 167,940 |
Bank of America Corp. | 8,200 | | 307,828 |
Becton, Dickinson & Co. | 3,600 | | 321,840 |
Berkshire Hathaway, Inc. Class B (a) | 160 | | 713,120 |
Chesapeake Energy Corp. | 13,200 | | 682,440 |
CIT Group, Inc. | 1,700 | | 18,513 |
Cogent Communications Group, Inc. (a) | 17,805 | | 374,083 |
Corporate Executive Board Co. | 6,700 | | 291,919 |
D.R. Horton, Inc. | 12,300 | | 190,527 |
EOG Resources, Inc. | 1,400 | | 182,672 |
Equinix, Inc. (a) | 6,400 | | 578,688 |
Fluor Corp. | 950 | | 145,227 |
Genentech, Inc. (a) | 6,490 | | 442,618 |
Google, Inc. Class A (sub. vtg.) (a) | 1,530 | | 878,669 |
Hess Corp. | 3,800 | | 403,560 |
Hewlett-Packard Co. | 15,200 | | 704,520 |
Juniper Networks, Inc. (a) | 6,300 | | 174,006 |
Lamar Advertising Co. Class A | 7,700 | | 304,458 |
Landstar System, Inc. | 12,800 | | 665,088 |
Lehman Brothers Holdings, Inc. | 6,300 | | 278,712 |
Lockheed Martin Corp. | 1,500 | | 159,060 |
Microchip Technology, Inc. | 9,200 | | 338,100 |
National Oilwell Varco, Inc. (a) | 4,600 | | 314,870 |
Noble Energy, Inc. | 8,400 | | 730,800 |
Norfolk Southern Corp. | 5,500 | | 327,690 |
NRG Energy, Inc. (a) | 16,600 | | 729,570 |
Philip Morris International, Inc. (a) | 2,200 | | 112,266 |
Polo Ralph Lauren Corp. Class A | 4,700 | | 291,917 |
Procter & Gamble Co. | 6,400 | | 429,120 |
Quicksilver Gas Services LP | 6,400 | | 159,872 |
Southwestern Energy Co. (a) | 11,750 | | 497,143 |
The Mosaic Co. (a) | 3,000 | | 367,530 |
Common Stocks - continued |
| Shares | | Value |
United States of America - continued |
The Walt Disney Co. | 15,400 | | $ 499,422 |
Valero Energy Corp. | 11,000 | | 537,350 |
VCA Antech, Inc. (a) | 13,400 | | 433,758 |
Visa, Inc. | 2,100 | | 175,245 |
Washington Mutual, Inc. (a)(e) | 5,500 | | 64,215 |
Wells Fargo & Co. | 9,000 | | 267,750 |
TOTAL UNITED STATES OF AMERICA | | 14,656,883 |
TOTAL COMMON STOCKS (Cost $33,666,297) | 36,531,598 |
Convertible Preferred Stocks - 1.4% |
| | | |
United States of America - 1.4% |
CIT Group, Inc. Series C, 8.75% | 300 | | 16,317 |
Freeport-McMoRan Copper & Gold, Inc. 6.75% | 1,200 | | 195,408 |
Lehman Brothers Holdings, Inc. 7.25% | 160 | | 188,946 |
Washington Mutual, Inc. (e) | 1 | | 140,457 |
TOTAL CONVERTIBLE PREFERRED STOCKS (Cost $468,285) | 541,128 |
Money Market Funds - 2.4% |
| | | |
Fidelity Cash Central Fund, 2.51% (b) | 476,715 | | 476,715 |
Fidelity Securities Lending Cash Central Fund, 2.44% (b)(c) | 415,800 | | 415,800 |
TOTAL MONEY MARKET FUNDS (Cost $892,515) | 892,515 |
Cash Equivalents - 0.1% |
| Maturity Amount | | |
Investments in repurchase agreements in a joint trading account at 1.95%, dated 4/30/08 due 5/1/08 (Collateralized by U.S. Treasury Obligations) #
(Cost $44,000) | $ 44,002 | | 44,000 |
TOTAL INVESTMENT PORTFOLIO - 99.6% (Cost $35,071,097) | | 38,009,241 |
NET OTHER ASSETS - 0.4% | | 164,318 |
NET ASSETS - 100% | $ 38,173,559 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $204,672 or 0.5% of net assets. |
Additional information on each holding is as follows: |
Security | Acquisition Date | Acquisition Cost |
Washington Mutual, Inc. | 4/8/08 | $ 48,125 |
Washington Mutual, Inc. | 4/8/08 | $ 100,000 |
# Additional Information on each counterparty to the repurchase agreement is as follows: |
Repurchase Agreement / Counterparty | Value |
$44,000 due 5/01/08 at 1.95% |
BNP Paribas Securities Corp. | $ 20,530 |
Fortis Securities LLC | 9,393 |
HSBC Securities (USA), Inc. | 4,692 |
ING Financial Markets LLC | 9,385 |
| $ 44,000 |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 40,828 |
Fidelity Securities Lending Cash Central Fund | 8,906 |
Total | $ 49,734 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| April 30, 2008 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $401,998 and repurchase agreements of $44,000) - See accompanying schedule: Unaffiliated issuers (cost $34,178,582) | $ 37,116,726 | |
Fidelity Central Funds (cost $892,515) | 892,515 | |
Total Investments (cost $35,071,097) | | $ 38,009,241 |
Foreign currency held at value (cost $566,464) | | 559,591 |
Receivable for investments sold | | 797,740 |
Receivable for fund shares sold | | 81,667 |
Dividends receivable | | 95,069 |
Distributions receivable from Fidelity Central Funds | | 3,829 |
Prepaid expenses | | 95 |
Other receivables | | 28,692 |
Total assets | | 39,575,924 |
| | |
Liabilities | | |
Payable to custodian bank | $ 75,429 | |
Payable for investments purchased | 740,668 | |
Payable for fund shares redeemed | 61,720 | |
Accrued management fee | 35,708 | |
Distribution fees payable | 15,872 | |
Other affiliated payables | 10,575 | |
Other payables and accrued expenses | 46,593 | |
Collateral on securities loaned, at value | 415,800 | |
Total liabilities | | 1,402,365 |
| | |
Net Assets | | $ 38,173,559 |
Net Assets consist of: | | |
Paid in capital | | $ 39,267,591 |
Undistributed net investment income | | 38,778 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (4,054,041) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 2,921,231 |
Net Assets | | $ 38,173,559 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| April 30, 2008 (Unaudited) |
| | |
Calculation of Maximum Offering Price
Class A:
Net Asset Value and redemption price per share
($12,032,466 ÷ 1,012,434 shares) | | $ 11.88 |
| | |
Maximum offering price per share (100/94.25 of $11.88) | | $ 12.60 |
Class T:
Net Asset Value and redemption price per share ($15,509,255 ÷ 1,334,243 shares) | | $ 11.62 |
| | |
Maximum offering price per share (100/96.50 of $11.62) | | $ 12.04 |
Class B:
Net Asset Value and offering price per share ($3,793,210 ÷ 343,759 shares)A | | $ 11.03 |
| | |
Class C:
Net Asset Value and offering price per share ($4,852,974 ÷ 439,598 shares)A | | $ 11.04 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($1,985,654 ÷ 162,774 shares) | | $ 12.20 |
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
Financial Statements - continued
Statement of Operations
Six months ended April 30, 2008 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 329,541 |
Interest | | 2,023 |
Income from Fidelity Central Funds | | 49,734 |
| | 381,298 |
Less foreign taxes withheld | | (24,067) |
Total income | | 357,231 |
| | |
Expenses | | |
Management fee | $ 142,595 | |
Transfer agent fees | 62,354 | |
Distribution fees | 103,015 | |
Accounting and security lending fees | 11,422 | |
Custodian fees and expenses | 83,895 | |
Independent trustees' compensation | 87 | |
Registration fees | 47,031 | |
Audit | 25,805 | |
Legal | 91 | |
Miscellaneous | 6,166 | |
Total expenses before reductions | 482,461 | |
Expense reductions | (151,798) | 330,663 |
Net investment income (loss) | | 26,568 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (3,053,953) | |
Foreign currency transactions | (2,899) | |
Total net realized gain (loss) | | (3,056,852) |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of increase in deferred foreign taxes of $2,905) | (2,862,160) | |
Assets and liabilities in foreign currencies | (26,914) | |
Total change in net unrealized appreciation (depreciation) | | (2,889,074) |
Net gain (loss) | | (5,945,926) |
Net increase (decrease) in net assets resulting from operations | | $ (5,919,358) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended
April 30, 2008
(Unaudited) | Year ended
October 31,
2007 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 26,568 | $ (104,872) |
Net realized gain (loss) | (3,056,852) | 5,836,387 |
Change in net unrealized appreciation (depreciation) | (2,889,074) | 3,378,282 |
Net increase (decrease) in net assets resulting
from operations | (5,919,358) | 9,109,797 |
Distributions to shareholders from net realized gain | (5,633,988) | (7,528,976) |
Share transactions - net increase (decrease) | 828,893 | (4,022,385) |
Redemption fees | 3,296 | 1,520 |
Total increase (decrease) in net assets | (10,721,157) | (2,440,044) |
| | |
Net Assets | | |
Beginning of period | 48,894,716 | 51,334,760 |
End of period (including undistributed net investment income of $38,778 and undistributed net investment income of $12,210, respectively) | $ 38,173,559 | $ 48,894,716 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended April 30, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | |
Net asset value, beginning of period | $ 15.38 | $ 14.83 | $ 13.68 | $ 11.88 | $ 10.73 | $ 8.62 |
Income from
nvestment Operations | | | | | |
Net investment income (loss) E | .02 | .01 | .01 | .05 | (.04) | (.02) |
Net realized and unrealized gain (loss) | (1.72) | 2.69 | 1.20 | 1.75 | 1.19 | 2.13 |
Total from investment operations | (1.70) | 2.70 | 1.21 | 1.80 | 1.15 | 2.11 |
Distributions from net investment income | - | - | (.04) | - | - | - |
Distributions from net realized gain | (1.80) | (2.15) | (.02) | - | - | - |
Total distributions | (1.80) | (2.15) | (.06) | - | - | - |
Redemption fees added to paid in capital E | - I | - I | - I | - I | - I | - |
Net asset value, end of period | $ 11.88 | $ 15.38 | $ 14.83 | $ 13.68 | $ 11.88 | $ 10.73 |
Total Return B, C, D | (11.93)% | 20.55% | 8.86% | 15.15% | 10.72% | 24.48% |
Ratios to Average Net Assets F, H | | | | |
Expenses before reductions | 2.12% A | 1.81% | 1.69% | 1.76% | 1.97% | 2.25% |
Expenses net of fee waivers, if any | 1.50% A | 1.50% | 1.50% | 1.56% | 1.75% | 1.76% |
Expenses net of all reductions | 1.38% A | 1.45% | 1.46% | 1.54% | 1.72% | 1.73% |
Net investment income (loss) | .39% A | .06% | .06% | .39% | (.33)% | (.27)% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 12,032 | $ 14,000 | $ 10,956 | $ 10,101 | $ 8,450 | $ 4,436 |
Portfolio turnover rate G | 324% A | 102% | 251% | 52% | 59% | 53% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements 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
Financial Highlights - Class T
| Six months ended April 30, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | |
Net asset value, beginning of period | $ 15.05 | $ 14.59 | $ 13.46 | $ 11.71 | $ 10.61 | $ 8.54 |
Income from
Investment Operations | | | | | |
Net investment income (loss) E | .01 | (.03) | (.03) | .02 | (.07) | (.05) |
Net realized and unrealized gain (loss) | (1.69) | 2.64 | 1.19 | 1.73 | 1.17 | 2.12 |
Total from investment operations | (1.68) | 2.61 | 1.16 | 1.75 | 1.10 | 2.07 |
Distributions from net investment income | - | - | (.01) | - | - | - |
Distributions from net realized gain | (1.75) | (2.15) | (.02) | - | - | - |
Total distributions | (1.75) | (2.15) | (.03) | - | - | - |
Redemption fees added to paid in capital E | - I | - I | - I | - I | - I | - |
Net asset value, end of period | $ 11.62 | $ 15.05 | $ 14.59 | $ 13.46 | $ 11.71 | $ 10.61 |
Total Return B, C, D | (12.03)% | 20.24% | 8.62% | 14.94% | 10.37% | 24.24% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 2.40% A | 2.08% | 1.99% | 2.09% | 2.39% | 2.65% |
Expenses net of fee waivers, if any | 1.75% A | 1.75% | 1.75% | 1.81% | 2.00% | 2.01% |
Expenses net of all reductions | 1.63% A | 1.71% | 1.71% | 1.79% | 1.97% | 1.98% |
Net investment income (loss) | .14% A | (.19)% | (.19)% | .14% | (.58)% | (.52)% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 15,509 | $ 22,039 | $ 26,780 | $ 28,786 | $ 20,966 | $ 17,334 |
Portfolio turnover rate G | 324% A | 102% | 251% | 52% | 59% | 53% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements 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
Financial Highlights - Class B
| Six months ended April 30, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 14.34 | $ 14.06 | $ 13.01 | $ 11.38 | $ 10.36 | $ 8.38 |
Income from
Investment Operations | | | | | |
Net investment income (loss) E | (.02) | (.09) | (.10) | (.04) | (.12) | (.09) |
Net realized and unrealized gain (loss) | (1.61) | 2.52 | 1.15 | 1.67 | 1.14 | 2.07 |
Total from investment operations | (1.63) | 2.43 | 1.05 | 1.63 | 1.02 | 1.98 |
Distributions from net realized gain | (1.68) | (2.15) | - | - | - | - |
Redemption fees added to paid in capital E | - I | -I | -I | -I | -I | - |
Net asset value, end of period | $ 11.03 | $ 14.34 | $ 14.06 | $ 13.01 | $ 11.38 | $ 10.36 |
Total Return B, C, D | (12.26)% | 19.65% | 8.07% | 14.32% | 9.85% | 23.63% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 2.88% A | 2.57% | 2.52% | 2.61% | 3.00% | 3.25% |
Expenses net of fee waivers, if any | 2.25% A | 2.25% | 2.25% | 2.31% | 2.50% | 2.50% |
Expenses net of all reductions | 2.13% A | 2.20% | 2.22% | 2.29% | 2.47% | 2.47% |
Net investment income (loss) | (.36)% A | (.69)% | (.69)% | (.36)% | (1.08)% | (1.01)% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 3,793 | $ 5,029 | $ 5,788 | $ 6,464 | $ 5,575 | $ 4,918 |
Portfolio turnover rate G | 324% A | 102% | 251% | 52% | 59% | 53% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements 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
Financial Highlights - Class C
| Six months ended April 30, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 14.36 | $ 14.08 | $ 13.02 | $ 11.39 | $ 10.38 | $ 8.39 |
Income from
Investment Operations | | | | | |
Net investment income (loss) E | (.02) | (.09) | (.10) | (.05) | (.12) | (.09) |
Net realized and unrealized gain (loss) | (1.61) | 2.52 | 1.16 | 1.68 | 1.13 | 2.08 |
Total from investment operations | (1.63) | 2.43 | 1.06 | 1.63 | 1.01 | 1.99 |
Distributions from net realized gain | (1.69) | (2.15) | - | - | - | - |
Redemption fees added to paid in capital E | - I | -I | -I | -I | -I | - |
Net asset value, end of period | $ 11.04 | $ 14.36 | $ 14.08 | $ 13.02 | $ 11.39 | $ 10.38 |
Total Return B, C, D | (12.22)% | 19.62% | 8.14% | 14.31% | 9.73% | 23.72% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 2.88% A | 2.57% | 2.50% | 2.59% | 2.87% | 3.10% |
Expenses net of fee waivers, if any | 2.25% A | 2.25% | 2.25% | 2.31% | 2.50% | 2.50% |
Expenses net of all reductions | 2.13% A | 2.20% | 2.21% | 2.29% | 2.47% | 2.47% |
Net investment income (loss) | (.36)% A | (.69)% | (.69)% | (.36)% | (1.08)% | (1.01)% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 4,853 | $ 5,352 | $ 5,348 | $ 5,396 | $ 3,959 | $ 3,190 |
Portfolio turnover rate G | 324% A | 102% | 251% | 52% | 59% | 53% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements 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
Financial Highlights - Institutional Class
| Six months ended April 30, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | |
Net asset value, beginning of period | $ 15.76 | $ 15.11 | $ 13.93 | $ 12.06 | $ 10.88 | $ 8.68 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .04 | .05 | .05 | .09 | (.01) | - |
Net realized and unrealized gain (loss) | (1.77) | 2.75 | 1.22 | 1.78 | 1.19 | 2.20 |
Total from investment operations | (1.73) | 2.80 | 1.27 | 1.87 | 1.18 | 2.20 |
Distributions from net investment income | - | - | (.07) | - | - | - |
Distributions from net realized gain | (1.83) | (2.15) | (.02) | - | - | - |
Total distributions | (1.83) | (2.15) | (.09) | - | - | - |
Redemption fees added to paid in capital D | - H | -H | -H | -H | -H | - |
Net asset value, end of period | $ 12.20 | $ 15.76 | $ 15.11 | $ 13.93 | $ 12.06 | $ 10.88 |
Total Return B, C | (11.80)% | 20.88% | 9.15% | 15.51% | 10.85% | 25.35% |
Ratios to Average Net Assets E, G | | | | | |
Expenses before reductions | 1.75% A | 1.43% | 1.29% | 1.42% | 1.55% | 1.87% |
Expenses net of fee waivers, if any | 1.25% A | 1.25% | 1.25% | 1.31% | 1.50% | 1.50% |
Expenses net of all reductions | 1.13% A | 1.20% | 1.21% | 1.29% | 1.47% | 1.48% |
Net investment income (loss) | .64% A | .31% | .31% | .64% | (.08)% | (.01)% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 1,986 | $ 2,476 | $ 2,464 | $ 1,800 | $ 1,187 | $ 175 |
Portfolio turnover rate F | 324% A | 102% | 251% | 52% | 59% | 53% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements 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
Notes to Financial Statements
For the period ended April 30, 2008 (Unaudited)
1. Organization.
Fidelity Advisor Global 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.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
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. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued and net asset value (NAV) per share is calculated (NAV calculation) as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or do not accurately reflect fair value, valuations may be determined in accordance with procedures adopted by the Board of Trustees. For example, when developments occur between the close of a market and the close of the NYSE that may materially affect the value of some or all of the securities, or when trading in a security is halted, those securities may be fair valued. Factors used in the determination of fair value may include monitoring news to identify significant market or security specific events such as changes in the value of U.S. securities markets, reviewing developments in foreign markets and evaluating the performance of ADRs, futures contracts and exchange-traded funds. Because the Fund's utilization of fair value pricing depends on market activity, the frequency with which fair value pricing is used cannot be predicted and may be utilized to a significant extent. The value of securities used for NAV calculation under fair value pricing may differ from published prices for the same securities.
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.
Semiannual Report
3. Significant Accounting Policies - continued
Foreign Currency - continued
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. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV for processing shareholder transactions includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. 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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. 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 each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not result in any unrecognized tax benefits in the accompanying financial statements. Each of the Fund's federal tax returns for the prior three fiscal years remains subject to examination by the Internal Revenue Service. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), market discount, partnerships, certain foreign taxes and losses deferred due to wash sales.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 4,129,829 |
Unrealized depreciation | (1,419,029) |
Net unrealized appreciation (depreciation) | $ 2,710,800 |
Cost for federal income tax purposes | $ 35,298,441 |
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 30 days are subject to a redemption fee equal to 1.00% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.
New Accounting Pronouncement. In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and results in expanded disclosures about fair value measurements.
4. Operating Policies.
Repurchase Agreements. 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 which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in
Semiannual Report
4. Operating Policies - continued
Repurchase Agreements - continued
segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
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 at the end of the Fund's Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $62,995,166 and $64,345,322, respectively.
6. 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 .26% 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 the performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of the Institutional Class of the Fund as compared to an appropriate benchmark index. The Fund's performance period began on July 1, 2007 and subsequent months will be added until the performance period includes 36 months. The Fund's performance adjustment will take effect in June, 2008.
For the period, the total annualized management fee rate was .71% of the Fund's average net assets.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. 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. 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 and the total amounts paid to and retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC |
Class A | 0% | .25% | $ 15,033 | $ 746 |
Class T | .25% | .25% | 43,510 | 231 |
Class B | .75% | .25% | 20,666 | 15,520 |
Class C | .75% | .25% | 23,806 | 2,601 |
| | | $ 103,015 | $ 19,098 |
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, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges 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, 1.00% to .50% for certain purchases of Class A shares and ..25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 1,756 |
Class T | 2,060 |
Class B* | 3,412 |
Class C* | 293 |
| $ 7,521 |
* 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 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 shareholder reports, except proxy statements.
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
For the period, the total transfer agent fees paid by each class to FIIOC were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 18,194 | .30 |
Class T | 28,696 | .33 |
Class B | 6,354 | .31 |
Class C | 7,261 | .30 |
Institutional Class | 1,849 | .18 |
| $ 62,354 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
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 were $171 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $4.2 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, which amounted to $41 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
8. Security Lending - continued
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. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $8,906.
9. Expense Reductions.
FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense
Limitations | Reimbursement
from adviser |
Class A | 1.50% | $ 39,078 |
Class T | 1.75% | 55,171 |
Class B | 2.25% | 13,014 |
Class C | 2.25% | 14,750 |
Institutional Class | 1.25% | 5,097 |
| | $ 127,110 |
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 included payments of certain expenses on behalf of the Fund totaling $24,688 for the period.
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Semiannual Report
10. Other - continued
In December 2006, the Independent Trustees, with the assistance of independent counsel, completed an investigation regarding gifts, gratuities and business entertainment provided by certain brokers to certain individuals who were employed on FMR's domestic equity trading desk during the period 2002 to 2004. The Independent Trustees and FMR agreed that, despite the absence of proof that the Fidelity mutual funds experienced diminished execution quality as a result of the improper receipt of gifts and business entertainment, the conduct at issue was serious and was worthy of redress. Accordingly, the Independent Trustees requested, and FMR agreed to make, a payment of $42 million plus accrued interest, which equaled approximately $7.3 million, to certain Fidelity mutual funds.
In March 2008, the Trustees approved a method for allocating this payment among the funds and, in total, FMR paid the fund $2,363, which is recorded in the accompanying Statement of Operations.
In a related administrative order dated March 5, 2008, the U.S. Securities and Exchange Commission ("SEC") announced a settlement with FMR and FMR Co., Inc. (an affiliate of FMR) involving the SEC's regulatory rules for investment advisers and the improper receipt of gifts, gratuities and business entertainment. Without admitting or denying the SEC's findings, FMR agreed to pay an $8 million civil penalty to the United States Treasury.
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30,
2008 | Year ended
October 31,
2007 |
From net realized gain | | |
Class A | $ 1,564,268 | $ 1,605,953 |
Class T | 2,554,809 | 3,892,392 |
Class B | 579,670 | 859,727 |
Class C | 647,099 | 818,416 |
Institutional Class | 288,142 | 352,488 |
Total | $ 5,633,988 | $ 7,528,976 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended April 30,
2008 | Year ended
October 31,
2007 | Six months ended April 30,
2008 | Year ended
October 31,
2007 |
Class A | | | | |
Shares sold | 267,950 | 317,426 | $ 3,121,431 | $ 4,551,831 |
Reinvestment of distributions | 119,266 | 117,030 | 1,527,791 | 1,549,483 |
Shares redeemed | (284,823) | (262,944) | (3,458,862) | (3,684,586) |
Net increase (decrease) | 102,393 | 171,512 | $ 1,190,360 | $ 2,416,728 |
Class T | | | | |
Shares sold | 130,147 | 275,123 | $ 1,552,100 | $ 3,836,949 |
Reinvestment of distributions | 200,342 | 296,053 | 2,512,291 | 3,842,771 |
Shares redeemed | (460,311) | (942,615) | (5,300,462) | (13,037,243) |
Net increase (decrease) | (129,822) | (371,439) | $ (1,236,071) | $ (5,357,523) |
Class B | | | | |
Shares sold | 24,037 | 54,071 | $ 271,569 | $ 718,841 |
Reinvestment of distributions | 43,292 | 62,934 | 516,478 | 781,643 |
Shares redeemed | (74,195) | (178,017) | (812,582) | (2,365,148) |
Net increase (decrease) | (6,866) | (61,012) | $ (24,535) | $ (864,664) |
Class C | | | | |
Shares sold | 55,720 | 79,702 | $ 642,860 | $ 1,057,436 |
Reinvestment of distributions | 50,878 | 60,320 | 606,979 | 750,384 |
Shares redeemed | (39,668) | (147,310) | (432,352) | (1,939,803) |
Net increase (decrease) | 66,930 | (7,288) | $ 817,487 | $ (131,983) |
Institutional Class | | | | |
Shares sold | 4,850 | 10,485 | $ 58,348 | $ 151,256 |
Reinvestment of distributions | 10,610 | 13,152 | 139,410 | 177,952 |
Shares redeemed | (9,820) | (29,545) | (116,106) | (414,151) |
Net increase (decrease) | 5,640 | (5,908) | $ 81,652 | $ (84,943) |
Semiannual Report
A special meeting of the fund's shareholders was held on May 14, 2008. The results of votes taken among shareholders on the proposals before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1 |
To elect a Board of Trustees.A |
| # of
Votes | % of
Votes |
James C. Curvey |
Affirmative | 8,514,961,004.35 | 97.348 |
Withheld | 231,994,591.94 | 2.652 |
TOTAL | 8,746,955,596.29 | 100.000 |
Dennis J. Dirks |
Affirmative | 8,525,899,114.46 | 97.473 |
Withheld | 221,056,481.83 | 2.527 |
TOTAL | 8,746,955,596.29 | 100.000 |
Edward C. Johnson 3d |
Affirmative | 8,497,196,105.85 | 97.145 |
Withheld | 249,759,490.44 | 2.855 |
TOTAL | 8,746,955,596.29 | 100.000 |
Alan J. Lacy |
Affirmative | 8,522,858,760.40 | 97.438 |
Withheld | 224,096,835.89 | 2.562 |
TOTAL | 8,746,955,596.29 | 100.000 |
Ned C. Lautenbach |
Affirmative | 8,523,008,335.52 | 97.440 |
Withheld | 223,947,260.77 | 2.560 |
TOTAL | 8,746,955,596.29 | 100.000 |
Joseph Mauriello |
Affirmative | 8,524,890,199.58 | 97.461 |
Withheld | 222,065,396.71 | 2.539 |
TOTAL | 8,746,955,596.29 | 100.000 |
Cornelia M. Small |
Affirmative | 8,525,649,323.51 | 97.470 |
Withheld | 221,306,272.78 | 2.530 |
TOTAL | 8,746,955,596.29 | 100.000 |
William S. Stavropoulos |
Affirmative | 8,514,682,431.03 | 97.345 |
Withheld | 232,273,165.26 | 2.655 |
TOTAL | 8,746,955,596.29 | 100.000 |
David M. Thomas |
Affirmative | 8,526,972,729.02 | 97.485 |
Withheld | 219,982,867.27 | 2.515 |
TOTAL | 8,746,955,596.29 | 100.000 |
Michael E. Wiley |
Affirmative | 8,523,710,850.33 | 97.448 |
Withheld | 223,244,745.96 | 2.552 |
TOTAL | 8,746,955,596.29 | 100.000 |
PROPOSAL 2 |
To amend the Declaration of Trust of Fidelity Advisor Series VIII to reduce the required quorum for future shareholder meetings.A |
| # of
Votes | % of
Votes |
Affirmative | 4,574,398,791.46 | 52.297 |
Against | 2,140,778,913.08 | 24.475 |
Abstain | 230,752,610.67 | 2.638 |
Broker
Non-Votes | 1,801,025,281.08 | 20.590 |
TOTAL | 8,746,955,596.29 | 100.000 |
A Denotes trust-wide proposal and voting results.
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 Research & Analysis Company
Fidelity International
Investment Advisors
Fidelity Investments Japan Limited
Fidelity International Investment Advisors (U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
State Street Bank and Trust Company
Quincy, MA
AGLOI-USAN-0608 1.784881.105
(Fidelity Investment logo)(registered trademark)
Fidelity® Advisor
International
Capital Appreciation
Fund - Class A, Class T, Class B
and Class C
Semiannual Report
April 30, 2008
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | Ned Johnson's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
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. |
Proxy Voting Results | <Click Here> | |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
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 LLC or an affiliated company.
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.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
Continuation of a credit squeeze, flat consumer spending and a potential recession weighed heavily on stocks in the opening months of 2008, though positive results in investment-grade bonds and money markets offered some comfort to investors. Financial markets are always unpredictable, but there are a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 1, 2007 to April 30, 2008).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Semiannual Report
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Beginning
Account Value
November 1, 2007 | Ending
Account Value
April 30, 2008 | Expenses Paid
During Period*
November 1, 2007
to April 30, 2008 |
Class A | | | |
Actual | $ 1,000.00 | $ 858.30 | $ 6.88 |
HypotheticalA | $ 1,000.00 | $ 1,017.45 | $ 7.47 |
Class T | | | |
Actual | $ 1,000.00 | $ 857.40 | $ 7.94 |
HypotheticalA | $ 1,000.00 | $ 1,016.31 | $ 8.62 |
Class B | | | |
Actual | $ 1,000.00 | $ 854.90 | $ 10.33 |
HypotheticalA | $ 1,000.00 | $ 1,013.72 | $ 11.22 |
Class C | | | |
Actual | $ 1,000.00 | $ 855.40 | $ 10.29 |
HypotheticalA | $ 1,000.00 | $ 1,013.77 | $ 11.17 |
Institutional Class | | | |
Actual | $ 1,000.00 | $ 860.30 | $ 5.46 |
HypotheticalA | $ 1,000.00 | $ 1,019.00 | $ 5.92 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
| Annualized
Expense Ratio |
Class A | 1.49% |
Class T | 1.72% |
Class B | 2.24% |
Class C | 2.23% |
Institutional Class | 1.18% |
Semiannual Report
Investment Changes (Unaudited)
Top Five Stocks as of April 30, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Nestle SA (Reg.) (Switzerland, Food Products) | 1.9 | 0.0 |
OAO Gazprom sponsored ADR (Russia, Oil, Gas & Consumable Fuels) | 1.9 | 0.0 |
Vodafone Group PLC sponsored ADR (United Kingdom, Wireless Telecommunication Services) | 1.9 | 0.0 |
AXA SA (France, Insurance) | 1.7 | 0.0 |
Allianz AG (Reg.) (Germany, Insurance) | 1.6 | 0.0 |
| 9.0 | |
Top Five Market Sectors as of April 30, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 22.8 | 12.5 |
Industrials | 12.7 | 10.9 |
Materials | 10.2 | 22.6 |
Energy | 9.8 | 8.7 |
Consumer Discretionary | 9.4 | 7.4 |
Top Five Countries as of April 30, 2008 |
(excluding cash equivalents) | % of fund's
net assets | % of fund's net assets
6 months ago |
United Kingdom | 14.2 | 0.0 |
Japan | 12.0 | 29.4 |
Germany | 8.8 | 4.9 |
Canada | 7.9 | 20.2 |
France | 6.8 | 3.0 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) |
As of April 30, 2008 | As of October 31, 2007 |
| Stocks 95.9% | | | Stocks 91.2% | |
| Bonds 0.0% | | | Bonds 1.1% | |
| Short-Term
Investments and
Net Other Assets 4.1% | | | Short-Term
Investments and
Net Other Assets 7.7% | |
Semiannual Report
Investments April 30, 2008 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 95.9% |
| Shares | | Value |
Australia - 5.6% |
Babcock & Brown Ltd. (d) | 289,657 | | $ 4,016,319 |
Bradken Ltd. | 240,504 | | 1,871,557 |
Cochlear Ltd. | 30,346 | | 1,622,973 |
CSL Ltd. | 66,437 | | 2,493,508 |
Energy Resources of Australia Ltd. | 98,827 | | 1,817,762 |
QBE Insurance Group Ltd. | 133,905 | | 3,194,276 |
Woolworths Ltd. | 78,666 | | 2,129,589 |
TOTAL AUSTRALIA | | 17,145,984 |
Belgium - 1.3% |
Fortis (d) | 147,300 | | 4,024,126 |
Bermuda - 1.4% |
Aquarius Platinum Ltd. (United Kingdom) | 146,100 | | 2,302,080 |
SeaDrill Ltd. | 65,800 | | 2,003,733 |
TOTAL BERMUDA | | 4,305,813 |
Brazil - 3.1% |
Companhia Vale do Rio Doce (PN-A) sponsored ADR | 115,900 | | 3,690,256 |
MRV Engenharia e Participacoes SA | 135,300 | | 2,726,838 |
Uniao de Bancos Brasileiros SA (Unibanco) GDR | 21,600 | | 3,140,856 |
TOTAL BRAZIL | | 9,557,950 |
Canada - 7.9% |
Absolute Software Corp. (a) | 241,000 | | 2,931,437 |
Agnico-Eagle Mines Ltd. | 33,400 | | 2,097,657 |
Consolidated Thompson Iron Mines Ltd. (a) | 556,900 | | 4,429,321 |
EnCana Corp. | 41,800 | | 3,372,307 |
Mercator Minerals Ltd. (a) | 287,100 | | 3,033,208 |
Potash Corp. of Saskatchewan, Inc. | 19,600 | | 3,605,420 |
Rothmans, Inc. | 96,200 | | 2,375,627 |
Silver Wheaton Corp. (a) | 174,400 | | 2,311,826 |
TOTAL CANADA | | 24,156,803 |
Cayman Islands - 1.7% |
Chaoda Modern Agriculture (Holdings) Ltd. | 2,410,000 | | 3,463,555 |
Suntech Power Holdings Co. Ltd. sponsored ADR (a)(d) | 36,200 | | 1,619,226 |
TOTAL CAYMAN ISLANDS | | 5,082,781 |
China - 0.8% |
Focus Media Holding Ltd. ADR (a)(d) | 69,100 | | 2,549,099 |
Cyprus - 1.0% |
Marfin Popular Bank Public Co. | 347,300 | | 3,101,213 |
Common Stocks - continued |
| Shares | | Value |
Czech Republic - 0.9% |
Ceske Energeticke Zavody AS | 38,300 | | $ 2,846,165 |
Denmark - 0.6% |
FLS Industries | 17,800 | | 1,884,327 |
Finland - 1.4% |
Nokian Tyres Ltd. | 53,600 | | 2,286,837 |
Outotec Oyj | 29,600 | | 1,857,122 |
TOTAL FINLAND | | 4,143,959 |
France - 6.8% |
AXA SA (d) | 142,200 | | 5,252,787 |
BNP Paribas SA | 33,000 | | 3,567,504 |
Bouygues SA (d) | 45,900 | | 3,440,849 |
Gameloft (a) | 173,200 | | 997,712 |
Suez SA (France) | 51,800 | | 3,679,357 |
Vivendi | 93,050 | | 3,786,937 |
TOTAL FRANCE | | 20,725,146 |
Germany - 8.8% |
Allianz AG (Reg.) | 24,400 | | 4,956,794 |
Daimler AG | 35,600 | | 2,756,152 |
Deutsche Postbank AG | 27,700 | | 2,435,416 |
E.ON AG (d) | 21,700 | | 4,427,915 |
Fresenius AG | 21,900 | | 1,857,781 |
Linde AG | 13,700 | | 2,012,523 |
Muenchener Rueckversicherungs-Gesellschaft AG (Reg.) | 15,200 | | 2,948,531 |
Q-Cells AG (a)(d) | 17,125 | | 2,005,305 |
Vossloh AG | 11,500 | | 1,668,519 |
ZhongDe Waste Technology AG | 43,725 | | 1,859,378 |
TOTAL GERMANY | | 26,928,314 |
Greece - 0.8% |
Public Power Corp. of Greece | 56,600 | | 2,392,742 |
Hong Kong - 3.0% |
China Mobile (Hong Kong) Ltd. | 245,500 | | 4,224,421 |
CNOOC Ltd. | 1,219,000 | | 2,163,830 |
Esprit Holdings Ltd. | 218,000 | | 2,682,638 |
TOTAL HONG KONG | | 9,070,889 |
India - 2.0% |
LANCO Infratech Ltd. (a) | 200,180 | | 2,659,252 |
Common Stocks - continued |
| Shares | | Value |
India - continued |
Rural Electrification Corp. Ltd. | 15,167 | | $ 45,951 |
Satyam Computer Services Ltd. sponsored ADR | 125,100 | | 3,212,568 |
TOTAL INDIA | | 5,917,771 |
Indonesia - 1.2% |
PT Bumi Resources Tbk | 3,167,000 | | 2,283,975 |
PT Perusahaan Gas Negara Tbk Series B | 1,048,500 | | 1,375,864 |
TOTAL INDONESIA | | 3,659,839 |
Israel - 1.2% |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 80,000 | | 3,742,400 |
Italy - 3.6% |
Fiat SpA | 123,900 | | 2,784,672 |
Finmeccanica SpA | 57,500 | | 2,010,697 |
Prysmian SpA | 72,300 | | 1,725,857 |
UniCredit SpA | 560,500 | | 4,270,858 |
TOTAL ITALY | | 10,792,084 |
Japan - 12.0% |
Asics Corp. | 40,000 | | 405,420 |
Canon, Inc. sponsored ADR | 52,000 | | 2,598,440 |
East Japan Railway Co. | 396 | | 3,159,590 |
Hisamitsu Pharmaceutical Co., Inc. | 39,400 | | 1,480,278 |
Inpex Holdings, Inc. | 163 | | 1,829,163 |
Mitsubishi Corp. | 99,900 | | 3,215,450 |
Mitsui & Co. Ltd. | 135,000 | | 3,170,150 |
Nippon Electric Glass Co. Ltd. | 111,000 | | 1,726,325 |
Nitori Co. Ltd. | 28,050 | | 1,476,342 |
ORIX Corp. | 23,240 | | 4,203,695 |
Sankyo Co. Ltd. (Gunma) | 35,300 | | 2,125,879 |
Sanyo Electric Co. Ltd. (a) | 703,000 | | 1,753,893 |
Sumitomo Mitsui Financial Group, Inc. | 437 | | 3,760,019 |
Torishima Pump Manufacturing Co. Ltd. | 116,000 | | 2,006,336 |
Tsutsumi Jewelry Co. Ltd. | 74,600 | | 1,579,142 |
Wacom Co. Ltd. | 1,070 | | 2,155,844 |
TOTAL JAPAN | | 36,645,966 |
Korea (South) - 2.4% |
Korea Gas Corp. | 36,202 | | 2,803,784 |
NHN Corp. (a) | 8,095 | | 1,880,026 |
Shinhan Financial Group Co. Ltd. | 44,960 | | 2,595,793 |
TOTAL KOREA (SOUTH) | | 7,279,603 |
Common Stocks - continued |
| Shares | | Value |
Mexico - 1.8% |
America Movil SAB de CV Series L sponsored ADR | 50,600 | | $ 2,932,776 |
Desarrolladora Homex Sab de CV (a) | 262,000 | | 2,607,573 |
TOTAL MEXICO | | 5,540,349 |
Netherlands - 0.6% |
Fugro NV (Certificaten Van Aandelen) unit | 18,900 | | 1,691,215 |
Russia - 2.6% |
OAO Gazprom sponsored ADR | 110,618 | | 5,851,692 |
Vimpel Communications sponsored ADR | 71,400 | | 2,153,424 |
TOTAL RUSSIA | | 8,005,116 |
South Africa - 1.7% |
African Rainbow Minerals Ltd. | 53,100 | | 1,804,953 |
Exxaro Resources Ltd. | 108,600 | | 1,795,540 |
Murray & Roberts Holdings Ltd. | 141,744 | | 1,659,217 |
TOTAL SOUTH AFRICA | | 5,259,710 |
Spain - 2.4% |
Grupo Acciona SA | 8,700 | | 2,495,614 |
Telefonica SA | 164,900 | | 4,737,328 |
TOTAL SPAIN | | 7,232,942 |
Switzerland - 3.9% |
Nestle SA (Reg.) | 12,278 | | 5,887,841 |
Sonova Holding AG | 26,003 | | 2,200,370 |
Zurich Financial Services AG (Reg.) | 12,289 | | 3,761,757 |
TOTAL SWITZERLAND | | 11,849,968 |
Thailand - 0.7% |
Siam Commercial Bank PCL (For. Reg.) | 705,000 | | 1,978,090 |
United Kingdom - 14.2% |
BAE Systems PLC | 275,400 | | 2,555,755 |
BG Group PLC | 133,100 | | 3,257,670 |
British American Tobacco PLC | 96,300 | | 3,612,319 |
Cairn Energy PLC | 57,800 | | 3,601,619 |
Charter PLC | 89,900 | | 1,606,906 |
Clipper Windpower PLC (a) | 151,800 | | 1,549,827 |
HBOS PLC | 425,300 | | 3,978,561 |
Informa PLC | 254,900 | | 1,751,011 |
Man Group PLC | 266,900 | | 3,085,811 |
Prudential PLC | 158,100 | | 2,168,962 |
Sibir Energy PLC | 145,500 | | 1,808,065 |
Common Stocks - continued |
| Shares | | Value |
United Kingdom - continued |
Tesco PLC | 509,200 | | $ 4,343,269 |
Vodafone Group PLC sponsored ADR | 180,800 | | 5,724,128 |
Xstrata PLC | 52,900 | | 4,150,341 |
TOTAL UNITED KINGDOM | | 43,194,244 |
United States of America - 0.5% |
Philip Morris International, Inc. (a) | 30,800 | | 1,571,724 |
TOTAL COMMON STOCKS (Cost $273,326,348) | 292,276,332 |
Money Market Funds - 9.5% |
| | | |
Fidelity Cash Central Fund, 2.51% (b) | 10,727,265 | | 10,727,265 |
Fidelity Securities Lending Cash Central Fund, 2.44% (b)(c) | 18,230,076 | | 18,230,076 |
TOTAL MONEY MARKET FUNDS (Cost $28,957,341) | 28,957,341 |
TOTAL INVESTMENT PORTFOLIO - 105.4% (Cost $302,283,689) | | 321,233,673 |
NET OTHER ASSETS - (5.4)% | | (16,559,257) |
NET ASSETS - 100% | $ 304,674,416 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 265,417 |
Fidelity Securities Lending Cash Central Fund | 114,786 |
Total | $ 380,203 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| April 30, 2008 (Unaudited) |
Assets | | |
Investment in securities, at value (including securities loaned of $17,435,719) - See accompanying schedule: Unaffiliated issuers (cost $273,326,348) | $ 292,276,332 | |
Fidelity Central Funds (cost $28,957,341) | 28,957,341 | |
Total Investments (cost $302,283,689) | | $ 321,233,673 |
Cash | | 1,480 |
Foreign currency held at value (cost $75,037) | | 75,018 |
Receivable for investments sold | | 11,233,690 |
Receivable for fund shares sold | | 136,219 |
Dividends receivable | | 1,140,388 |
Distributions receivable from Fidelity Central Funds | | 71,633 |
Prepaid expenses | | 822 |
Other receivables | | 409,294 |
Total assets | | 334,302,217 |
| | |
Liabilities | | |
Payable for investments purchased | $ 10,170,495 | |
Payable for fund shares redeemed | 449,727 | |
Accrued management fee | 296,389 | |
Distribution fees payable | 134,880 | |
Other affiliated payables | 84,734 | |
Other payables and accrued expenses | 261,500 | |
Collateral on securities loaned, at value | 18,230,076 | |
Total liabilities | | 29,627,801 |
| | |
Net Assets | | $ 304,674,416 |
Net Assets consist of: | | |
Paid in capital | | $ 346,355,382 |
Undistributed net investment income | | 463,337 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (60,958,547) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 18,814,244 |
Net Assets | | $ 304,674,416 |
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, 2008 (Unaudited) |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($86,326,523 ÷ 6,970,918 shares) | | $ 12.38 |
| | |
Maximum offering price per share (100/94.25 of $12.38) | | $ 13.14 |
Class T:
Net Asset Value and redemption price per share ($134,541,266 ÷ 11,044,164 shares) | | $ 12.18 |
| | |
Maximum offering price per share (100/96.50 of $12.18) | | $ 12.62 |
Class B:
Net Asset Value and offering price per share ($25,372,298 ÷ 2,226,836 shares)A | | $ 11.39 |
| | |
Class C:
Net Asset Value and offering price per share ($48,001,689 ÷ 4,210,472 shares)A | | $ 11.40 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($10,432,640 ÷ 797,190 shares) | | $ 13.09 |
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, 2008 (Unaudited) |
Investment Income | | |
Dividends | | $ 3,166,806 |
Interest | | 28,375 |
Income from Fidelity Central Funds | | 380,203 |
| | 3,575,384 |
Less foreign taxes withheld | | (329,724) |
Total income | | 3,245,660 |
| | |
Expenses | | |
Management fee | $ 1,167,916 | |
Transfer agent fees | 471,501 | |
Distribution fees | 887,004 | |
Accounting and security lending fees | 86,621 | |
Custodian fees and expenses | 188,887 | |
Independent trustees' compensation | 722 | |
Registration fees | 51,431 | |
Audit | 32,595 | |
Legal | 863 | |
Interest | 5,270 | |
Miscellaneous | 20,151 | |
Total expenses before reductions | 2,912,961 | |
Expense reductions | (357,799) | 2,555,162 |
Net investment income (loss) | | 690,498 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers (net of foreign taxes of $(17,724)) | (45,917,892) | |
Foreign currency transactions | (155,391) | |
Total net realized gain (loss) | | (46,073,283) |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of increase in deferred foreign taxes of $30,679) | (13,714,219) | |
Assets and liabilities in foreign currencies | (221,006) | |
Total change in net unrealized appreciation (depreciation) | | (13,935,225) |
Net gain (loss) | | (60,008,508) |
Net increase (decrease) in net assets resulting from operations | | $ (59,318,010) |
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, 2008
(Unaudited) | Year ended
October 31,
2007 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 690,498 | $ 543,494 |
Net realized gain (loss) | (46,073,283) | 89,635,932 |
Change in net unrealized appreciation (depreciation) | (13,935,225) | 6,279,776 |
Net increase (decrease) in net assets resulting
from operations | (59,318,010) | 96,459,202 |
Distributions to shareholders from net investment income | (449,120) | (1,726,224) |
Distributions to shareholders from net realized gain | (86,586,464) | (71,372,564) |
Total distributions | (87,035,584) | (73,098,788) |
Share transactions - net increase (decrease) | 33,681,842 | (47,012,739) |
Redemption fees | 3,818 | 75,033 |
Total increase (decrease) in net assets | (112,667,934) | (23,577,292) |
| | |
Net Assets | | |
Beginning of period | 417,342,350 | 440,919,642 |
End of period (including undistributed net investment income of $463,337 and undistributed net investment income of $315,878, respectively) | $ 304,674,416 | $ 417,342,350 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
April 30, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 18.64 | $ 17.79 | $ 17.38 | $ 15.40 | $ 14.47 | $ 10.93 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .05 | .07 | .12 | .12 | .01 | - I |
Net realized and unrealized gain (loss) | (2.37) | 3.81 | 2.73 | 1.86 | .92 | 3.54 |
Total from investment operations | (2.32) | 3.88 | 2.85 | 1.98 | .93 | 3.54 |
Distributions from net investment income | (.05) | (.12) | (.20) | - | - | - |
Distributions from net realized gain | (3.89) | (2.90) | (2.24) | - | - | - |
Total distributions | (3.94) | (3.03) J | (2.44) | - | - | - |
Redemption fees added to paid in capital E | - I | - I | - I | - I | - I | - |
Net asset value, end of period | $ 12.38 | $ 18.64 | $ 17.79 | $ 17.38 | $ 15.40 | $ 14.47 |
Total Return B,C,D | (14.17)% | 24.76% | 17.62% | 12.86% | 6.43% | 32.39% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 1.49% A | 1.47% | 1.43% | 1.44% | 1.48% | 1.59% |
Expenses net of fee waivers, if any | 1.49% A | 1.47% | 1.43% | 1.44% | 1.48% | 1.59% |
Expenses net of all reductions | 1.27% A | 1.39% | 1.32% | 1.30% | 1.40% | 1.54% |
Net investment income (loss) | .69% A | .39% | .70% | .71% | .06% | .01% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 86,327 | $ 113,579 | $ 110,240 | $ 113,809 | $ 103,606 | $ 41,867 |
Portfolio turnover rate G | 495% A | 146% | 170% | 176% | 170% | 205% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements 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. J Total distributions of $3.026 per share is comprised of distributions from net investment income of $.123 and distributions from net realized gain of $2.903 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, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 18.38 | $ 17.57 | $ 17.18 | $ 15.26 | $ 14.38 | $ 10.88 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .03 | .03 | .08 | .08 | (.03) | (.03) |
Net realized and unrealized gain (loss) | (2.33) | 3.76 | 2.70 | 1.84 | .91 | 3.53 |
Total from investment operations | (2.30) | 3.79 | 2.78 | 1.92 | .88 | 3.50 |
Distributions from net investment income | (.01) | (.07) | (.15) | - | - | - |
Distributions from net realized gain | (3.89) | (2.90) | (2.24) | - | - | - |
Total distributions | (3.90) | (2.98) J | (2.39) | - | - | - |
Redemption fees added to paid in capital E | - I | - I | - I | - I | - I | - |
Net asset value, end of period | $ 12.18 | $ 18.38 | $ 17.57 | $ 17.18 | $ 15.26 | $ 14.38 |
Total Return B,C,D | (14.26)% | 24.47% | 17.38% | 12.58% | 6.12% | 32.17% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 1.72% A | 1.69% | 1.65% | 1.67% | 1.74% | 1.85% |
Expenses net of fee waivers, if any | 1.72% A | 1.69% | 1.65% | 1.67% | 1.74% | 1.85% |
Expenses net of all reductions | 1.50% A | 1.61% | 1.54% | 1.53% | 1.66% | 1.79% |
Net investment income (loss) | .46% A | .18% | .48% | .47% | (.20)% | (.24)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 134,541 | $ 179,990 | $ 188,320 | $ 216,717 | $ 216,588 | $ 149,514 |
Portfolio turnover rate G | 495% A | 146% | 170% | 176% | 170% | 205% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements 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. J Total distributions of $2.977 per share is comprised of distributions from net investment income of $.074 and distributions from net realized gain of $2.903 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, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 17.36 | $ 16.72 | $ 16.46 | $ 14.70 | $ 13.94 | $ 10.61 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | - I | (.06) | (.02) | (.02) | (.12) | (.09) |
Net realized and unrealized gain (loss) | (2.20) | 3.57 | 2.57 | 1.78 | .88 | 3.42 |
Total from investment operations | (2.20) | 3.51 | 2.55 | 1.76 | .76 | 3.33 |
Distributions from net investment income | - | - | (.05) | - | - | - |
Distributions from net realized gain | (3.77) | (2.87) | (2.24) | - | - | - |
Total distributions | (3.77) | (2.87) J | (2.29) | - | - | - |
Redemption fees added to paid in capital E | - I | - I | - I | - I | - I | - |
Net asset value, end of period | $ 11.39 | $ 17.36 | $ 16.72 | $ 16.46 | $ 14.70 | $ 13.94 |
Total Return B,C,D | (14.51)% | 23.85% | 16.58% | 11.97% | 5.45% | 31.39% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 2.24% A | 2.24% | 2.26% | 2.27% | 2.35% | 2.42% |
Expenses net of fee waivers, if any | 2.24% A | 2.24% | 2.25% | 2.27% | 2.35% | 2.42% |
Expenses net of all reductions | 2.03% A | 2.17% | 2.14% | 2.13% | 2.27% | 2.37% |
Net investment income (loss) | (.06)% A | (.38)% | (.13)% | (.13)% | (.80)% | (.82)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 25,372 | $ 40,013 | $ 51,661 | $ 57,168 | $ 59,985 | $ 50,358 |
Portfolio turnover rate G | 495% A | 146% | 170% | 176% | 170% | 205% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements 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. J Total distributions of $2.869 per share is comprised of distributions from net realized gain of $2.869 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, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 17.42 | $ 16.80 | $ 16.52 | $ 14.74 | $ 13.96 | $ 10.62 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | - I | (.05) | (.01) | - I | (.10) | (.08) |
Net realized and unrealized gain (loss) | (2.20) | 3.57 | 2.60 | 1.78 | .88 | 3.42 |
Total from investment operations | (2.20) | 3.52 | 2.59 | 1.78 | .78 | 3.34 |
Distributions from net investment income | - | - | (.07) | - | - | - |
Distributions from net realized gain | (3.82) | (2.90) | (2.24) | - | - | - |
Total distributions | (3.82) | (2.90) J | (2.31) | - | - | - |
Redemption fees added to paid in capital E | - I | - I | - I | - I | - I | - |
Net asset value, end of period | $ 11.40 | $ 17.42 | $ 16.80 | $ 16.52 | $ 14.74 | $ 13.96 |
Total Return B,C,D | (14.46)% | 23.85% | 16.75% | 12.08% | 5.59% | 31.45% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 2.23% A | 2.19% | 2.16% | 2.17% | 2.21% | 2.33% |
Expenses net of fee waivers, if any | 2.23% A | 2.19% | 2.16% | 2.17% | 2.21% | 2.33% |
Expenses net of all reductions | 2.01% A | 2.12% | 2.05% | 2.04% | 2.12% | 2.28% |
Net investment income (loss) | (.05)% A | (.33)% | (.03)% | (.03)% | (.66)% | (.73)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 48,002 | $ 66,298 | $ 66,162 | $ 67,429 | $ 76,412 | $ 58,560 |
Portfolio turnover rate G | 495% A | 146% | 170% | 176% | 170% | 205% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements 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. J Total distributions of $2.903 per share is comprised of distributions from net realized gain of $2.903 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, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 19.49 | $ 18.46 | $ 17.70 | $ 15.65 | $ 14.70 | $ 11.08 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .07 | .13 | .20 | .16 | .05 | .04 |
Net realized and unrealized gain (loss) | (2.47) | 3.97 | 2.80 | 1.89 | .94 | 3.58 |
Total from investment operations | (2.40) | 4.10 | 3.00 | 2.05 | .99 | 3.62 |
Distributions from net investment income | (.11) | (.17) | - | - | (.04) | - |
Distributions from net realized gain | (3.89) | (2.90) | (2.24) | - | - | - |
Total distributions | (4.00) | (3.07) I | (2.24) | - | (.04) | - |
Redemption fees added to paid in capital D | - H | - H | - H | - H | - H | - |
Net asset value, end of period | $ 13.09 | $ 19.49 | $ 18.46 | $ 17.70 | $ 15.65 | $ 14.70 |
Total Return B,C | (13.97)% | 25.16% | 18.09% | 13.10% | 6.75% | 32.67% |
Ratios to Average Net Assets E,G | | | | | |
Expenses before reductions | 1.18% A | 1.14% | 1.04% | 1.23% | 1.21% | 1.28% |
Expenses net of fee waivers, if any | 1.18% A | 1.14% | 1.04% | 1.23% | 1.21% | 1.28% |
Expenses net of all reductions | .97% A | 1.07% | .93% | 1.09% | 1.13% | 1.22% |
Net investment income (loss) | 1.00% A | .72% | 1.08% | .92% | .34% | .33% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 10,433 | $ 17,463 | $ 24,536 | $ 209,278 | $ 210,160 | $ 246,623 |
Portfolio turnover rate F | 495% A | 146% | 170% | 176% | 170% | 205% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements 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. I Total distributions of $3.069 per share is comprised of distributions from net investment income of $.166 and distributions from net realized gain of $2.903 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, 2008 (Unaudited)
1. Organization.
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.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
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. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued and net asset value (NAV) per share is calculated (NAV calculation) as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or do not accurately reflect fair value, valuations may be determined in accordance with procedures adopted by the Board of Trustees. For example, when developments occur between the close of a market and the close of the NYSE that may materially affect the value of some or all of the securities, or when trading in a security is halted, those securities may be fair valued. Factors used in the determination of fair value may include monitoring news to identify significant market or security specific events such as changes in the value of U.S. securities markets, reviewing developments in foreign markets and evaluating the performance of ADRs, futures contracts and exchange-traded funds. Because the Fund's utilization of fair value pricing depends on market activity, the frequency with which fair value pricing is used cannot be predicted and may be utilized to a significant extent. The value of securities used for NAV calculation under fair value pricing may differ from published prices for the same securities.
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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV for processing shareholder transactions includes trades executed through the end of the prior business day. 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 and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. 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 each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not result in any unrecognized tax benefits in the accompanying financial statements. Each of the Fund's federal tax returns for the prior three fiscal years remains subject to examination by the Internal Revenue Service. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Book-tax differences are primarily due to foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), market discount and losses deferred due to wash sales.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 24,177,510 | |
Unrealized depreciation | (8,328,797) | |
Net unrealized appreciation (depreciation) | $ 15,848,713 | |
Cost for federal income tax purposes | $ 305,384,960 | |
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 30 days are subject to a redemption fee equal to 1.00% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.
New Accounting Pronouncement. In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and results in expanded disclosures about fair value measurements.
4. Operating Policies.
Forward Foreign Currency Contracts. The Fund generally uses foreign currency contracts to facilitate transactions in foreign-denominated securities and to manage the Fund's currency exposure. Contracts to sell generally are used to hedge the Fund's investments against currency fluctuations, while contracts to buy generally are used to offset a previous contract to sell. Also, a contract to buy can be used to acquire exposure to foreign currencies and a contract to sell can be used to offset a previous contract to buy. Losses may arise from changes in the value of foreign currency or if the counterparties do not perform under the contracts' terms.
The U.S. dollar value of forward foreign currency contracts is determined using forward currency exchange rates supplied by a quotation service. Purchases and sales of forward foreign currency contracts having the same settlement date and broker are offset and any realized gain (loss) recognized on the date of offset: otherwise, gain (loss) is recognized on settlement date.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Operating Policies - continued
Repurchase Agreements. 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 which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $786,525,395 and $814,747,106, respectively.
6. 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 .26% 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 the performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of the Institutional Class of the Fund as compared to an appropriate benchmark index. The Fund's performance period began on August 1, 2007 and subsequent months will be added until the performance period includes 36 months. The Fund's performance adjustment will take effect in July, 2008. For the period, the total annualized management fee rate was .71% of the Fund's average net assets.
Semiannual Report
6. 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. 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 and the total amounts paid to and retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC |
Class A | 0% | .25% | $ 114,777 | $ 3,903 |
Class T | .25% | .25% | 360,676 | 6,119 |
Class B | .75% | .25% | 148,383 | 111,673 |
Class C | .75% | .25% | 263,168 | 10,294 |
| | | $ 887,004 | $ 131,989 |
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, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges 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, 1.00% to .50% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 6,758 |
Class T | 4,319 |
Class B* | 32,883 |
Class C* | 1,517 |
| $ 45,477 |
* 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 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 shareholder
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
reports, except proxy statements. For the period, the total transfer agent fees paid by each class to FIIOC were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 136,450 | .30 |
Class T | 200,086 | .28 |
Class B | 44,732 | .30 |
Class C | 75,546 | .29 |
Institutional Class | 14,687 | .24 |
| $ 471,501 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
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 were $484 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 affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Daily
Loan Balance | Weighted Average Interest Rate | Interest
Expense |
Borrower | $ 7,268,000 | 4.35% | $ 5,270 |
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $4.2 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, which amounted to $338 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Semiannual Report
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, 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. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $114,786.
9. 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 included payments of certain expenses on behalf of the Fund totaling $350,812 for the period. 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. During the period, these credits reduced the Fund's custody expenses by $4,891. During the period, credits reduced each class' transfer agent expense as noted in the table below.
| Transfer Agent
expense reduction | |
Class A | $ 826 | |
Class T | 1,166 | |
Class C | 93 | |
Institutional Class | 11 | |
| $ 2,096 | |
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Other - continued
may be made against the Fund. The risk of material loss from such claims is considered remote.
In December 2006, the Independent Trustees, with the assistance of independent counsel, completed an investigation regarding gifts, gratuities and business entertainment provided by certain brokers to certain individuals who were employed on FMR's domestic equity trading desk during the period 2002 to 2004. The Independent Trustees and FMR agreed that, despite the absence of proof that the Fidelity mutual funds experienced diminished execution quality as a result of the improper receipt of gifts and business entertainment, the conduct at issue was serious and was worthy of redress. Accordingly, the Independent Trustees requested, and FMR agreed to make, a payment of $42 million plus accrued interest, which equaled approximately $7.3 million, to certain Fidelity mutual funds.
In March 2008, the Trustees approved a method for allocating this payment among the funds and, in total, FMR paid the fund $1,302, which is recorded in the accompanying Statement of Operations.
In a related administrative order dated March 5, 2008, the U.S. Securities and Exchange Commission ("SEC") announced a settlement with FMR and FMR Co., Inc. (an affiliate of FMR) involving the SEC's regulatory rules for investment advisers and the improper receipt of gifts, gratuities and business entertainment. Without admitting or denying the SEC's findings, FMR agreed to pay an $8 million civil penalty to the United States Treasury.
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30,
2008 | Year ended
October 31,
2007 |
From net investment income | | |
Class A | $ 287,026 | $ 741,807 |
Class T | 77,076 | 779,904 |
Institutional Class | 85,018 | 204,513 |
Total | $ 449,120 | $ 1,726,224 |
From net realized gain | | |
Class A | $ 23,298,190 | $ 17,507,820 |
Class T | 37,538,694 | 30,595,453 |
Class B | 8,239,219 | 8,539,459 |
Class C | 14,357,087 | 11,153,317 |
Institutional Class | 3,153,274 | 3,576,515 |
Total | $ 86,586,464 | $ 71,372,564 |
Semiannual Report
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended April 30,
2008 | Year ended
October 31, 2007 | Six months ended April 30,
2008 | Year ended
October 31, 2007 |
Class A | | | | |
Shares sold | 854,382 | 2,473,487 | $ 11,034,144 | $ 42,784,764 |
Reinvestment of distributions | 1,636,304 | 1,076,085 | 22,086,522 | 17,077,468 |
Shares redeemed | (1,613,430) | (3,652,624) | (20,717,667) | (63,819,065) |
Net increase (decrease) | 877,256 | (103,052) | $ 12,402,999 | $ (3,956,833) |
Class T | | | | |
Shares sold | 978,229 | 1,816,120 | $ 12,182,662 | $ 30,886,267 |
Reinvestment of distributions | 2,762,616 | 1,951,860 | 36,709,081 | 30,605,163 |
Shares redeemed | (2,489,531) | (4,694,918) | (31,075,791) | (80,369,952) |
Net increase (decrease) | 1,251,314 | (926,938) | $ 17,815,952 | $ (18,878,522) |
Class B | | | | |
Shares sold | 123,210 | 202,050 | $ 1,514,243 | $ 3,191,835 |
Reinvestment of distributions | 561,875 | 474,419 | 6,999,729 | 7,059,355 |
Shares redeemed | (763,502) | (1,460,360) | (9,253,656) | (23,561,432) |
Net increase (decrease) | (78,417) | (783,891) | $ (739,684) | $ (13,310,242) |
Class C | | | | |
Shares sold | 308,938 | 408,629 | $ 3,761,347 | $ 6,500,495 |
Reinvestment of distributions | 998,851 | 649,627 | 12,453,463 | 9,698,929 |
Shares redeemed | (902,894) | (1,190,743) | (10,502,913) | (19,242,229) |
Net increase (decrease) | 404,895 | (132,487) | $ 5,711,897 | $ (3,042,805) |
Institutional Class | | | | |
Shares sold | 45,194 | 112,415 | $ 632,496 | $ 1,997,164 |
Reinvestment of distributions | 166,560 | 179,235 | 2,373,119 | 2,966,333 |
Shares redeemed | (310,385) | (724,750) | (4,514,937) | (12,787,834) |
Net increase (decrease) | (98,631) | (433,100) | $ (1,509,322) | $ (7,824,337) |
Semiannual Report
A special meeting of the fund's shareholders was held on May 14, 2008. The results of votes taken among shareholders on the proposals before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1 |
To elect a Board of Trustees.A |
| # of
Votes | % of
Votes |
James C. Curvey |
Affirmative | 8,514,961,004.35 | 97.348 |
Withheld | 231,994,591.94 | 2.652 |
TOTAL | 8,746,955,596.29 | 100.000 |
Dennis J. Dirks |
Affirmative | 8,525,899,114.46 | 97.473 |
Withheld | 221,056,481.83 | 2.527 |
TOTAL | 8,746,955,596.29 | 100.000 |
Edward C. Johnson 3d |
Affirmative | 8,497,196,105.85 | 97.145 |
Withheld | 249,759,490.44 | 2.855 |
TOTAL | 8,746,955,596.29 | 100.000 |
Alan J. Lacy |
Affirmative | 8,522,858,760.40 | 97.438 |
Withheld | 224,096,835.89 | 2.562 |
TOTAL | 8,746,955,596.29 | 100.000 |
Ned C. Lautenbach |
Affirmative | 8,523,008,335.52 | 97.440 |
Withheld | 223,947,260.77 | 2.560 |
TOTAL | 8,746,955,596.29 | 100.000 |
Joseph Mauriello |
Affirmative | 8,524,890,199.58 | 97.461 |
Withheld | 222,065,396.71 | 2.539 |
TOTAL | 8,746,955,596.29 | 100.000 |
Cornelia M. Small |
Affirmative | 8,525,649,323.51 | 97.470 |
Withheld | 221,306,272.78 | 2.530 |
TOTAL | 8,746,955,596.29 | 100.000 |
| # of
Votes | % of
Votes |
William S. Stavropoulos |
Affirmative | 8,514,682,431.03 | 97.345 |
Withheld | 232,273,165.26 | 2.655 |
TOTAL | 8,746,955,596.29 | 100.000 |
David M. Thomas |
Affirmative | 8,526,972,729.02 | 97.485 |
Withheld | 219,982,867.27 | 2.515 |
TOTAL | 8,746,955,596.29 | 100.000 |
Michael E. Wiley |
Affirmative | 8,523,710,850.33 | 97.448 |
Withheld | 223,244,745.96 | 2.552 |
TOTAL | 8,746,955,596.29 | 100.000 |
PROPOSAL 2 |
To amend the Declaration of Trust of Fidelity Advisor Series VIII to reduce the required quorum for future shareholder meetings.A |
| # of
Votes | % of
Votes |
Affirmative | 4,574,398,791.46 | 52.297 |
Against | 2,140,778,913.08 | 24.475 |
Abstain | 230,752,610.67 | 2.638 |
Broker
Non-Votes | 1,801,025,281.08 | 20.590 |
TOTAL | 8,746,955,596.29 | 100.000 |
A Denotes trust-wide proposal and voting results.
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 Research & Analysis Company
Fidelity International
Investment Advisors
Fidelity Investments Japan Limited
Fidelity International Investment Advisors (U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Brown Brothers Harriman & Co.
Boston, MA
AICAP-USAN-0608 1.784890.105
(Fidelity Investment logo)(registered trademark)
Fidelity® Advisor
International
Capital Appreciation
Fund - Institutional Class
Semiannual Report
April 30, 2008
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | Ned Johnson's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
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. |
Proxy Voting Results | <Click Here> | |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
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 LLC or an affiliated company.
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.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
Continuation of a credit squeeze, flat consumer spending and a potential recession weighed heavily on stocks in the opening months of 2008, though positive results in investment-grade bonds and money markets offered some comfort to investors. Financial markets are always unpredictable, but there are a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 1, 2007 to April 30, 2008).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Semiannual Report
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Beginning
Account Value
November 1, 2007 | Ending
Account Value
April 30, 2008 | Expenses Paid
During Period*
November 1, 2007
to April 30, 2008 |
Class A | | | |
Actual | $ 1,000.00 | $ 858.30 | $ 6.88 |
HypotheticalA | $ 1,000.00 | $ 1,017.45 | $ 7.47 |
Class T | | | |
Actual | $ 1,000.00 | $ 857.40 | $ 7.94 |
HypotheticalA | $ 1,000.00 | $ 1,016.31 | $ 8.62 |
Class B | | | |
Actual | $ 1,000.00 | $ 854.90 | $ 10.33 |
HypotheticalA | $ 1,000.00 | $ 1,013.72 | $ 11.22 |
Class C | | | |
Actual | $ 1,000.00 | $ 855.40 | $ 10.29 |
HypotheticalA | $ 1,000.00 | $ 1,013.77 | $ 11.17 |
Institutional Class | | | |
Actual | $ 1,000.00 | $ 860.30 | $ 5.46 |
HypotheticalA | $ 1,000.00 | $ 1,019.00 | $ 5.92 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
| Annualized
Expense Ratio |
Class A | 1.49% |
Class T | 1.72% |
Class B | 2.24% |
Class C | 2.23% |
Institutional Class | 1.18% |
Semiannual Report
Investment Changes (Unaudited)
Top Five Stocks as of April 30, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Nestle SA (Reg.) (Switzerland, Food Products) | 1.9 | 0.0 |
OAO Gazprom sponsored ADR (Russia, Oil, Gas & Consumable Fuels) | 1.9 | 0.0 |
Vodafone Group PLC sponsored ADR (United Kingdom, Wireless Telecommunication Services) | 1.9 | 0.0 |
AXA SA (France, Insurance) | 1.7 | 0.0 |
Allianz AG (Reg.) (Germany, Insurance) | 1.6 | 0.0 |
| 9.0 | |
Top Five Market Sectors as of April 30, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 22.8 | 12.5 |
Industrials | 12.7 | 10.9 |
Materials | 10.2 | 22.6 |
Energy | 9.8 | 8.7 |
Consumer Discretionary | 9.4 | 7.4 |
Top Five Countries as of April 30, 2008 |
(excluding cash equivalents) | % of fund's
net assets | % of fund's net assets
6 months ago |
United Kingdom | 14.2 | 0.0 |
Japan | 12.0 | 29.4 |
Germany | 8.8 | 4.9 |
Canada | 7.9 | 20.2 |
France | 6.8 | 3.0 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) |
As of April 30, 2008 | As of October 31, 2007 |
| Stocks 95.9% | | | Stocks 91.2% | |
| Bonds 0.0% | | | Bonds 1.1% | |
| Short-Term
Investments and
Net Other Assets 4.1% | | | Short-Term
Investments and
Net Other Assets 7.7% | |
Semiannual Report
Investments April 30, 2008 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 95.9% |
| Shares | | Value |
Australia - 5.6% |
Babcock & Brown Ltd. (d) | 289,657 | | $ 4,016,319 |
Bradken Ltd. | 240,504 | | 1,871,557 |
Cochlear Ltd. | 30,346 | | 1,622,973 |
CSL Ltd. | 66,437 | | 2,493,508 |
Energy Resources of Australia Ltd. | 98,827 | | 1,817,762 |
QBE Insurance Group Ltd. | 133,905 | | 3,194,276 |
Woolworths Ltd. | 78,666 | | 2,129,589 |
TOTAL AUSTRALIA | | 17,145,984 |
Belgium - 1.3% |
Fortis (d) | 147,300 | | 4,024,126 |
Bermuda - 1.4% |
Aquarius Platinum Ltd. (United Kingdom) | 146,100 | | 2,302,080 |
SeaDrill Ltd. | 65,800 | | 2,003,733 |
TOTAL BERMUDA | | 4,305,813 |
Brazil - 3.1% |
Companhia Vale do Rio Doce (PN-A) sponsored ADR | 115,900 | | 3,690,256 |
MRV Engenharia e Participacoes SA | 135,300 | | 2,726,838 |
Uniao de Bancos Brasileiros SA (Unibanco) GDR | 21,600 | | 3,140,856 |
TOTAL BRAZIL | | 9,557,950 |
Canada - 7.9% |
Absolute Software Corp. (a) | 241,000 | | 2,931,437 |
Agnico-Eagle Mines Ltd. | 33,400 | | 2,097,657 |
Consolidated Thompson Iron Mines Ltd. (a) | 556,900 | | 4,429,321 |
EnCana Corp. | 41,800 | | 3,372,307 |
Mercator Minerals Ltd. (a) | 287,100 | | 3,033,208 |
Potash Corp. of Saskatchewan, Inc. | 19,600 | | 3,605,420 |
Rothmans, Inc. | 96,200 | | 2,375,627 |
Silver Wheaton Corp. (a) | 174,400 | | 2,311,826 |
TOTAL CANADA | | 24,156,803 |
Cayman Islands - 1.7% |
Chaoda Modern Agriculture (Holdings) Ltd. | 2,410,000 | | 3,463,555 |
Suntech Power Holdings Co. Ltd. sponsored ADR (a)(d) | 36,200 | | 1,619,226 |
TOTAL CAYMAN ISLANDS | | 5,082,781 |
China - 0.8% |
Focus Media Holding Ltd. ADR (a)(d) | 69,100 | | 2,549,099 |
Cyprus - 1.0% |
Marfin Popular Bank Public Co. | 347,300 | | 3,101,213 |
Common Stocks - continued |
| Shares | | Value |
Czech Republic - 0.9% |
Ceske Energeticke Zavody AS | 38,300 | | $ 2,846,165 |
Denmark - 0.6% |
FLS Industries | 17,800 | | 1,884,327 |
Finland - 1.4% |
Nokian Tyres Ltd. | 53,600 | | 2,286,837 |
Outotec Oyj | 29,600 | | 1,857,122 |
TOTAL FINLAND | | 4,143,959 |
France - 6.8% |
AXA SA (d) | 142,200 | | 5,252,787 |
BNP Paribas SA | 33,000 | | 3,567,504 |
Bouygues SA (d) | 45,900 | | 3,440,849 |
Gameloft (a) | 173,200 | | 997,712 |
Suez SA (France) | 51,800 | | 3,679,357 |
Vivendi | 93,050 | | 3,786,937 |
TOTAL FRANCE | | 20,725,146 |
Germany - 8.8% |
Allianz AG (Reg.) | 24,400 | | 4,956,794 |
Daimler AG | 35,600 | | 2,756,152 |
Deutsche Postbank AG | 27,700 | | 2,435,416 |
E.ON AG (d) | 21,700 | | 4,427,915 |
Fresenius AG | 21,900 | | 1,857,781 |
Linde AG | 13,700 | | 2,012,523 |
Muenchener Rueckversicherungs-Gesellschaft AG (Reg.) | 15,200 | | 2,948,531 |
Q-Cells AG (a)(d) | 17,125 | | 2,005,305 |
Vossloh AG | 11,500 | | 1,668,519 |
ZhongDe Waste Technology AG | 43,725 | | 1,859,378 |
TOTAL GERMANY | | 26,928,314 |
Greece - 0.8% |
Public Power Corp. of Greece | 56,600 | | 2,392,742 |
Hong Kong - 3.0% |
China Mobile (Hong Kong) Ltd. | 245,500 | | 4,224,421 |
CNOOC Ltd. | 1,219,000 | | 2,163,830 |
Esprit Holdings Ltd. | 218,000 | | 2,682,638 |
TOTAL HONG KONG | | 9,070,889 |
India - 2.0% |
LANCO Infratech Ltd. (a) | 200,180 | | 2,659,252 |
Common Stocks - continued |
| Shares | | Value |
India - continued |
Rural Electrification Corp. Ltd. | 15,167 | | $ 45,951 |
Satyam Computer Services Ltd. sponsored ADR | 125,100 | | 3,212,568 |
TOTAL INDIA | | 5,917,771 |
Indonesia - 1.2% |
PT Bumi Resources Tbk | 3,167,000 | | 2,283,975 |
PT Perusahaan Gas Negara Tbk Series B | 1,048,500 | | 1,375,864 |
TOTAL INDONESIA | | 3,659,839 |
Israel - 1.2% |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 80,000 | | 3,742,400 |
Italy - 3.6% |
Fiat SpA | 123,900 | | 2,784,672 |
Finmeccanica SpA | 57,500 | | 2,010,697 |
Prysmian SpA | 72,300 | | 1,725,857 |
UniCredit SpA | 560,500 | | 4,270,858 |
TOTAL ITALY | | 10,792,084 |
Japan - 12.0% |
Asics Corp. | 40,000 | | 405,420 |
Canon, Inc. sponsored ADR | 52,000 | | 2,598,440 |
East Japan Railway Co. | 396 | | 3,159,590 |
Hisamitsu Pharmaceutical Co., Inc. | 39,400 | | 1,480,278 |
Inpex Holdings, Inc. | 163 | | 1,829,163 |
Mitsubishi Corp. | 99,900 | | 3,215,450 |
Mitsui & Co. Ltd. | 135,000 | | 3,170,150 |
Nippon Electric Glass Co. Ltd. | 111,000 | | 1,726,325 |
Nitori Co. Ltd. | 28,050 | | 1,476,342 |
ORIX Corp. | 23,240 | | 4,203,695 |
Sankyo Co. Ltd. (Gunma) | 35,300 | | 2,125,879 |
Sanyo Electric Co. Ltd. (a) | 703,000 | | 1,753,893 |
Sumitomo Mitsui Financial Group, Inc. | 437 | | 3,760,019 |
Torishima Pump Manufacturing Co. Ltd. | 116,000 | | 2,006,336 |
Tsutsumi Jewelry Co. Ltd. | 74,600 | | 1,579,142 |
Wacom Co. Ltd. | 1,070 | | 2,155,844 |
TOTAL JAPAN | | 36,645,966 |
Korea (South) - 2.4% |
Korea Gas Corp. | 36,202 | | 2,803,784 |
NHN Corp. (a) | 8,095 | | 1,880,026 |
Shinhan Financial Group Co. Ltd. | 44,960 | | 2,595,793 |
TOTAL KOREA (SOUTH) | | 7,279,603 |
Common Stocks - continued |
| Shares | | Value |
Mexico - 1.8% |
America Movil SAB de CV Series L sponsored ADR | 50,600 | | $ 2,932,776 |
Desarrolladora Homex Sab de CV (a) | 262,000 | | 2,607,573 |
TOTAL MEXICO | | 5,540,349 |
Netherlands - 0.6% |
Fugro NV (Certificaten Van Aandelen) unit | 18,900 | | 1,691,215 |
Russia - 2.6% |
OAO Gazprom sponsored ADR | 110,618 | | 5,851,692 |
Vimpel Communications sponsored ADR | 71,400 | | 2,153,424 |
TOTAL RUSSIA | | 8,005,116 |
South Africa - 1.7% |
African Rainbow Minerals Ltd. | 53,100 | | 1,804,953 |
Exxaro Resources Ltd. | 108,600 | | 1,795,540 |
Murray & Roberts Holdings Ltd. | 141,744 | | 1,659,217 |
TOTAL SOUTH AFRICA | | 5,259,710 |
Spain - 2.4% |
Grupo Acciona SA | 8,700 | | 2,495,614 |
Telefonica SA | 164,900 | | 4,737,328 |
TOTAL SPAIN | | 7,232,942 |
Switzerland - 3.9% |
Nestle SA (Reg.) | 12,278 | | 5,887,841 |
Sonova Holding AG | 26,003 | | 2,200,370 |
Zurich Financial Services AG (Reg.) | 12,289 | | 3,761,757 |
TOTAL SWITZERLAND | | 11,849,968 |
Thailand - 0.7% |
Siam Commercial Bank PCL (For. Reg.) | 705,000 | | 1,978,090 |
United Kingdom - 14.2% |
BAE Systems PLC | 275,400 | | 2,555,755 |
BG Group PLC | 133,100 | | 3,257,670 |
British American Tobacco PLC | 96,300 | | 3,612,319 |
Cairn Energy PLC | 57,800 | | 3,601,619 |
Charter PLC | 89,900 | | 1,606,906 |
Clipper Windpower PLC (a) | 151,800 | | 1,549,827 |
HBOS PLC | 425,300 | | 3,978,561 |
Informa PLC | 254,900 | | 1,751,011 |
Man Group PLC | 266,900 | | 3,085,811 |
Prudential PLC | 158,100 | | 2,168,962 |
Sibir Energy PLC | 145,500 | | 1,808,065 |
Common Stocks - continued |
| Shares | | Value |
United Kingdom - continued |
Tesco PLC | 509,200 | | $ 4,343,269 |
Vodafone Group PLC sponsored ADR | 180,800 | | 5,724,128 |
Xstrata PLC | 52,900 | | 4,150,341 |
TOTAL UNITED KINGDOM | | 43,194,244 |
United States of America - 0.5% |
Philip Morris International, Inc. (a) | 30,800 | | 1,571,724 |
TOTAL COMMON STOCKS (Cost $273,326,348) | 292,276,332 |
Money Market Funds - 9.5% |
| | | |
Fidelity Cash Central Fund, 2.51% (b) | 10,727,265 | | 10,727,265 |
Fidelity Securities Lending Cash Central Fund, 2.44% (b)(c) | 18,230,076 | | 18,230,076 |
TOTAL MONEY MARKET FUNDS (Cost $28,957,341) | 28,957,341 |
TOTAL INVESTMENT PORTFOLIO - 105.4% (Cost $302,283,689) | | 321,233,673 |
NET OTHER ASSETS - (5.4)% | | (16,559,257) |
NET ASSETS - 100% | $ 304,674,416 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 265,417 |
Fidelity Securities Lending Cash Central Fund | 114,786 |
Total | $ 380,203 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| April 30, 2008 (Unaudited) |
Assets | | |
Investment in securities, at value (including securities loaned of $17,435,719) - See accompanying schedule: Unaffiliated issuers (cost $273,326,348) | $ 292,276,332 | |
Fidelity Central Funds (cost $28,957,341) | 28,957,341 | |
Total Investments (cost $302,283,689) | | $ 321,233,673 |
Cash | | 1,480 |
Foreign currency held at value (cost $75,037) | | 75,018 |
Receivable for investments sold | | 11,233,690 |
Receivable for fund shares sold | | 136,219 |
Dividends receivable | | 1,140,388 |
Distributions receivable from Fidelity Central Funds | | 71,633 |
Prepaid expenses | | 822 |
Other receivables | | 409,294 |
Total assets | | 334,302,217 |
| | |
Liabilities | | |
Payable for investments purchased | $ 10,170,495 | |
Payable for fund shares redeemed | 449,727 | |
Accrued management fee | 296,389 | |
Distribution fees payable | 134,880 | |
Other affiliated payables | 84,734 | |
Other payables and accrued expenses | 261,500 | |
Collateral on securities loaned, at value | 18,230,076 | |
Total liabilities | | 29,627,801 |
| | |
Net Assets | | $ 304,674,416 |
Net Assets consist of: | | |
Paid in capital | | $ 346,355,382 |
Undistributed net investment income | | 463,337 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (60,958,547) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 18,814,244 |
Net Assets | | $ 304,674,416 |
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, 2008 (Unaudited) |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($86,326,523 ÷ 6,970,918 shares) | | $ 12.38 |
| | |
Maximum offering price per share (100/94.25 of $12.38) | | $ 13.14 |
Class T:
Net Asset Value and redemption price per share ($134,541,266 ÷ 11,044,164 shares) | | $ 12.18 |
| | |
Maximum offering price per share (100/96.50 of $12.18) | | $ 12.62 |
Class B:
Net Asset Value and offering price per share ($25,372,298 ÷ 2,226,836 shares)A | | $ 11.39 |
| | |
Class C:
Net Asset Value and offering price per share ($48,001,689 ÷ 4,210,472 shares)A | | $ 11.40 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($10,432,640 ÷ 797,190 shares) | | $ 13.09 |
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, 2008 (Unaudited) |
Investment Income | | |
Dividends | | $ 3,166,806 |
Interest | | 28,375 |
Income from Fidelity Central Funds | | 380,203 |
| | 3,575,384 |
Less foreign taxes withheld | | (329,724) |
Total income | | 3,245,660 |
| | |
Expenses | | |
Management fee | $ 1,167,916 | |
Transfer agent fees | 471,501 | |
Distribution fees | 887,004 | |
Accounting and security lending fees | 86,621 | |
Custodian fees and expenses | 188,887 | |
Independent trustees' compensation | 722 | |
Registration fees | 51,431 | |
Audit | 32,595 | |
Legal | 863 | |
Interest | 5,270 | |
Miscellaneous | 20,151 | |
Total expenses before reductions | 2,912,961 | |
Expense reductions | (357,799) | 2,555,162 |
Net investment income (loss) | | 690,498 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers (net of foreign taxes of $(17,724)) | (45,917,892) | |
Foreign currency transactions | (155,391) | |
Total net realized gain (loss) | | (46,073,283) |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of increase in deferred foreign taxes of $30,679) | (13,714,219) | |
Assets and liabilities in foreign currencies | (221,006) | |
Total change in net unrealized appreciation (depreciation) | | (13,935,225) |
Net gain (loss) | | (60,008,508) |
Net increase (decrease) in net assets resulting from operations | | $ (59,318,010) |
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, 2008
(Unaudited) | Year ended
October 31,
2007 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 690,498 | $ 543,494 |
Net realized gain (loss) | (46,073,283) | 89,635,932 |
Change in net unrealized appreciation (depreciation) | (13,935,225) | 6,279,776 |
Net increase (decrease) in net assets resulting
from operations | (59,318,010) | 96,459,202 |
Distributions to shareholders from net investment income | (449,120) | (1,726,224) |
Distributions to shareholders from net realized gain | (86,586,464) | (71,372,564) |
Total distributions | (87,035,584) | (73,098,788) |
Share transactions - net increase (decrease) | 33,681,842 | (47,012,739) |
Redemption fees | 3,818 | 75,033 |
Total increase (decrease) in net assets | (112,667,934) | (23,577,292) |
| | |
Net Assets | | |
Beginning of period | 417,342,350 | 440,919,642 |
End of period (including undistributed net investment income of $463,337 and undistributed net investment income of $315,878, respectively) | $ 304,674,416 | $ 417,342,350 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
April 30, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 18.64 | $ 17.79 | $ 17.38 | $ 15.40 | $ 14.47 | $ 10.93 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .05 | .07 | .12 | .12 | .01 | - I |
Net realized and unrealized gain (loss) | (2.37) | 3.81 | 2.73 | 1.86 | .92 | 3.54 |
Total from investment operations | (2.32) | 3.88 | 2.85 | 1.98 | .93 | 3.54 |
Distributions from net investment income | (.05) | (.12) | (.20) | - | - | - |
Distributions from net realized gain | (3.89) | (2.90) | (2.24) | - | - | - |
Total distributions | (3.94) | (3.03) J | (2.44) | - | - | - |
Redemption fees added to paid in capital E | - I | - I | - I | - I | - I | - |
Net asset value, end of period | $ 12.38 | $ 18.64 | $ 17.79 | $ 17.38 | $ 15.40 | $ 14.47 |
Total Return B,C,D | (14.17)% | 24.76% | 17.62% | 12.86% | 6.43% | 32.39% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 1.49% A | 1.47% | 1.43% | 1.44% | 1.48% | 1.59% |
Expenses net of fee waivers, if any | 1.49% A | 1.47% | 1.43% | 1.44% | 1.48% | 1.59% |
Expenses net of all reductions | 1.27% A | 1.39% | 1.32% | 1.30% | 1.40% | 1.54% |
Net investment income (loss) | .69% A | .39% | .70% | .71% | .06% | .01% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 86,327 | $ 113,579 | $ 110,240 | $ 113,809 | $ 103,606 | $ 41,867 |
Portfolio turnover rate G | 495% A | 146% | 170% | 176% | 170% | 205% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements 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. J Total distributions of $3.026 per share is comprised of distributions from net investment income of $.123 and distributions from net realized gain of $2.903 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, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 18.38 | $ 17.57 | $ 17.18 | $ 15.26 | $ 14.38 | $ 10.88 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .03 | .03 | .08 | .08 | (.03) | (.03) |
Net realized and unrealized gain (loss) | (2.33) | 3.76 | 2.70 | 1.84 | .91 | 3.53 |
Total from investment operations | (2.30) | 3.79 | 2.78 | 1.92 | .88 | 3.50 |
Distributions from net investment income | (.01) | (.07) | (.15) | - | - | - |
Distributions from net realized gain | (3.89) | (2.90) | (2.24) | - | - | - |
Total distributions | (3.90) | (2.98) J | (2.39) | - | - | - |
Redemption fees added to paid in capital E | - I | - I | - I | - I | - I | - |
Net asset value, end of period | $ 12.18 | $ 18.38 | $ 17.57 | $ 17.18 | $ 15.26 | $ 14.38 |
Total Return B,C,D | (14.26)% | 24.47% | 17.38% | 12.58% | 6.12% | 32.17% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 1.72% A | 1.69% | 1.65% | 1.67% | 1.74% | 1.85% |
Expenses net of fee waivers, if any | 1.72% A | 1.69% | 1.65% | 1.67% | 1.74% | 1.85% |
Expenses net of all reductions | 1.50% A | 1.61% | 1.54% | 1.53% | 1.66% | 1.79% |
Net investment income (loss) | .46% A | .18% | .48% | .47% | (.20)% | (.24)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 134,541 | $ 179,990 | $ 188,320 | $ 216,717 | $ 216,588 | $ 149,514 |
Portfolio turnover rate G | 495% A | 146% | 170% | 176% | 170% | 205% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements 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. J Total distributions of $2.977 per share is comprised of distributions from net investment income of $.074 and distributions from net realized gain of $2.903 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, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 17.36 | $ 16.72 | $ 16.46 | $ 14.70 | $ 13.94 | $ 10.61 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | - I | (.06) | (.02) | (.02) | (.12) | (.09) |
Net realized and unrealized gain (loss) | (2.20) | 3.57 | 2.57 | 1.78 | .88 | 3.42 |
Total from investment operations | (2.20) | 3.51 | 2.55 | 1.76 | .76 | 3.33 |
Distributions from net investment income | - | - | (.05) | - | - | - |
Distributions from net realized gain | (3.77) | (2.87) | (2.24) | - | - | - |
Total distributions | (3.77) | (2.87) J | (2.29) | - | - | - |
Redemption fees added to paid in capital E | - I | - I | - I | - I | - I | - |
Net asset value, end of period | $ 11.39 | $ 17.36 | $ 16.72 | $ 16.46 | $ 14.70 | $ 13.94 |
Total Return B,C,D | (14.51)% | 23.85% | 16.58% | 11.97% | 5.45% | 31.39% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 2.24% A | 2.24% | 2.26% | 2.27% | 2.35% | 2.42% |
Expenses net of fee waivers, if any | 2.24% A | 2.24% | 2.25% | 2.27% | 2.35% | 2.42% |
Expenses net of all reductions | 2.03% A | 2.17% | 2.14% | 2.13% | 2.27% | 2.37% |
Net investment income (loss) | (.06)% A | (.38)% | (.13)% | (.13)% | (.80)% | (.82)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 25,372 | $ 40,013 | $ 51,661 | $ 57,168 | $ 59,985 | $ 50,358 |
Portfolio turnover rate G | 495% A | 146% | 170% | 176% | 170% | 205% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements 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. J Total distributions of $2.869 per share is comprised of distributions from net realized gain of $2.869 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, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 17.42 | $ 16.80 | $ 16.52 | $ 14.74 | $ 13.96 | $ 10.62 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | - I | (.05) | (.01) | - I | (.10) | (.08) |
Net realized and unrealized gain (loss) | (2.20) | 3.57 | 2.60 | 1.78 | .88 | 3.42 |
Total from investment operations | (2.20) | 3.52 | 2.59 | 1.78 | .78 | 3.34 |
Distributions from net investment income | - | - | (.07) | - | - | - |
Distributions from net realized gain | (3.82) | (2.90) | (2.24) | - | - | - |
Total distributions | (3.82) | (2.90) J | (2.31) | - | - | - |
Redemption fees added to paid in capital E | - I | - I | - I | - I | - I | - |
Net asset value, end of period | $ 11.40 | $ 17.42 | $ 16.80 | $ 16.52 | $ 14.74 | $ 13.96 |
Total Return B,C,D | (14.46)% | 23.85% | 16.75% | 12.08% | 5.59% | 31.45% |
Ratios to Average Net Assets F,H | | | | | |
Expenses before reductions | 2.23% A | 2.19% | 2.16% | 2.17% | 2.21% | 2.33% |
Expenses net of fee waivers, if any | 2.23% A | 2.19% | 2.16% | 2.17% | 2.21% | 2.33% |
Expenses net of all reductions | 2.01% A | 2.12% | 2.05% | 2.04% | 2.12% | 2.28% |
Net investment income (loss) | (.05)% A | (.33)% | (.03)% | (.03)% | (.66)% | (.73)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 48,002 | $ 66,298 | $ 66,162 | $ 67,429 | $ 76,412 | $ 58,560 |
Portfolio turnover rate G | 495% A | 146% | 170% | 176% | 170% | 205% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements 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. J Total distributions of $2.903 per share is comprised of distributions from net realized gain of $2.903 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, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 19.49 | $ 18.46 | $ 17.70 | $ 15.65 | $ 14.70 | $ 11.08 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .07 | .13 | .20 | .16 | .05 | .04 |
Net realized and unrealized gain (loss) | (2.47) | 3.97 | 2.80 | 1.89 | .94 | 3.58 |
Total from investment operations | (2.40) | 4.10 | 3.00 | 2.05 | .99 | 3.62 |
Distributions from net investment income | (.11) | (.17) | - | - | (.04) | - |
Distributions from net realized gain | (3.89) | (2.90) | (2.24) | - | - | - |
Total distributions | (4.00) | (3.07) I | (2.24) | - | (.04) | - |
Redemption fees added to paid in capital D | - H | - H | - H | - H | - H | - |
Net asset value, end of period | $ 13.09 | $ 19.49 | $ 18.46 | $ 17.70 | $ 15.65 | $ 14.70 |
Total Return B,C | (13.97)% | 25.16% | 18.09% | 13.10% | 6.75% | 32.67% |
Ratios to Average Net Assets E,G | | | | | |
Expenses before reductions | 1.18% A | 1.14% | 1.04% | 1.23% | 1.21% | 1.28% |
Expenses net of fee waivers, if any | 1.18% A | 1.14% | 1.04% | 1.23% | 1.21% | 1.28% |
Expenses net of all reductions | .97% A | 1.07% | .93% | 1.09% | 1.13% | 1.22% |
Net investment income (loss) | 1.00% A | .72% | 1.08% | .92% | .34% | .33% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 10,433 | $ 17,463 | $ 24,536 | $ 209,278 | $ 210,160 | $ 246,623 |
Portfolio turnover rate F | 495% A | 146% | 170% | 176% | 170% | 205% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements 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. I Total distributions of $3.069 per share is comprised of distributions from net investment income of $.166 and distributions from net realized gain of $2.903 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, 2008 (Unaudited)
1. Organization.
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.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
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. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued and net asset value (NAV) per share is calculated (NAV calculation) as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or do not accurately reflect fair value, valuations may be determined in accordance with procedures adopted by the Board of Trustees. For example, when developments occur between the close of a market and the close of the NYSE that may materially affect the value of some or all of the securities, or when trading in a security is halted, those securities may be fair valued. Factors used in the determination of fair value may include monitoring news to identify significant market or security specific events such as changes in the value of U.S. securities markets, reviewing developments in foreign markets and evaluating the performance of ADRs, futures contracts and exchange-traded funds. Because the Fund's utilization of fair value pricing depends on market activity, the frequency with which fair value pricing is used cannot be predicted and may be utilized to a significant extent. The value of securities used for NAV calculation under fair value pricing may differ from published prices for the same securities.
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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV for processing shareholder transactions includes trades executed through the end of the prior business day. 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 and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. 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 each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not result in any unrecognized tax benefits in the accompanying financial statements. Each of the Fund's federal tax returns for the prior three fiscal years remains subject to examination by the Internal Revenue Service. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Book-tax differences are primarily due to foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), market discount and losses deferred due to wash sales.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 24,177,510 | |
Unrealized depreciation | (8,328,797) | |
Net unrealized appreciation (depreciation) | $ 15,848,713 | |
Cost for federal income tax purposes | $ 305,384,960 | |
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 30 days are subject to a redemption fee equal to 1.00% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.
New Accounting Pronouncement. In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and results in expanded disclosures about fair value measurements.
4. Operating Policies.
Forward Foreign Currency Contracts. The Fund generally uses foreign currency contracts to facilitate transactions in foreign-denominated securities and to manage the Fund's currency exposure. Contracts to sell generally are used to hedge the Fund's investments against currency fluctuations, while contracts to buy generally are used to offset a previous contract to sell. Also, a contract to buy can be used to acquire exposure to foreign currencies and a contract to sell can be used to offset a previous contract to buy. Losses may arise from changes in the value of foreign currency or if the counterparties do not perform under the contracts' terms.
The U.S. dollar value of forward foreign currency contracts is determined using forward currency exchange rates supplied by a quotation service. Purchases and sales of forward foreign currency contracts having the same settlement date and broker are offset and any realized gain (loss) recognized on the date of offset: otherwise, gain (loss) is recognized on settlement date.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Operating Policies - continued
Repurchase Agreements. 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 which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $786,525,395 and $814,747,106, respectively.
6. 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 .26% 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 the performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of the Institutional Class of the Fund as compared to an appropriate benchmark index. The Fund's performance period began on August 1, 2007 and subsequent months will be added until the performance period includes 36 months. The Fund's performance adjustment will take effect in July, 2008. For the period, the total annualized management fee rate was .71% of the Fund's average net assets.
Semiannual Report
6. 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. 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 and the total amounts paid to and retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC |
Class A | 0% | .25% | $ 114,777 | $ 3,903 |
Class T | .25% | .25% | 360,676 | 6,119 |
Class B | .75% | .25% | 148,383 | 111,673 |
Class C | .75% | .25% | 263,168 | 10,294 |
| | | $ 887,004 | $ 131,989 |
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, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges 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, 1.00% to .50% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 6,758 |
Class T | 4,319 |
Class B* | 32,883 |
Class C* | 1,517 |
| $ 45,477 |
* 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 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 shareholder
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
reports, except proxy statements. For the period, the total transfer agent fees paid by each class to FIIOC were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 136,450 | .30 |
Class T | 200,086 | .28 |
Class B | 44,732 | .30 |
Class C | 75,546 | .29 |
Institutional Class | 14,687 | .24 |
| $ 471,501 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
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 were $484 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 affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Daily
Loan Balance | Weighted Average Interest Rate | Interest
Expense |
Borrower | $ 7,268,000 | 4.35% | $ 5,270 |
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $4.2 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, which amounted to $338 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Semiannual Report
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, 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. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $114,786.
9. 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 included payments of certain expenses on behalf of the Fund totaling $350,812 for the period. 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. During the period, these credits reduced the Fund's custody expenses by $4,891. During the period, credits reduced each class' transfer agent expense as noted in the table below.
| Transfer Agent
expense reduction | |
Class A | $ 826 | |
Class T | 1,166 | |
Class C | 93 | |
Institutional Class | 11 | |
| $ 2,096 | |
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
10. Other - continued
may be made against the Fund. The risk of material loss from such claims is considered remote.
In December 2006, the Independent Trustees, with the assistance of independent counsel, completed an investigation regarding gifts, gratuities and business entertainment provided by certain brokers to certain individuals who were employed on FMR's domestic equity trading desk during the period 2002 to 2004. The Independent Trustees and FMR agreed that, despite the absence of proof that the Fidelity mutual funds experienced diminished execution quality as a result of the improper receipt of gifts and business entertainment, the conduct at issue was serious and was worthy of redress. Accordingly, the Independent Trustees requested, and FMR agreed to make, a payment of $42 million plus accrued interest, which equaled approximately $7.3 million, to certain Fidelity mutual funds.
In March 2008, the Trustees approved a method for allocating this payment among the funds and, in total, FMR paid the fund $1,302, which is recorded in the accompanying Statement of Operations.
In a related administrative order dated March 5, 2008, the U.S. Securities and Exchange Commission ("SEC") announced a settlement with FMR and FMR Co., Inc. (an affiliate of FMR) involving the SEC's regulatory rules for investment advisers and the improper receipt of gifts, gratuities and business entertainment. Without admitting or denying the SEC's findings, FMR agreed to pay an $8 million civil penalty to the United States Treasury.
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30,
2008 | Year ended
October 31,
2007 |
From net investment income | | |
Class A | $ 287,026 | $ 741,807 |
Class T | 77,076 | 779,904 |
Institutional Class | 85,018 | 204,513 |
Total | $ 449,120 | $ 1,726,224 |
From net realized gain | | |
Class A | $ 23,298,190 | $ 17,507,820 |
Class T | 37,538,694 | 30,595,453 |
Class B | 8,239,219 | 8,539,459 |
Class C | 14,357,087 | 11,153,317 |
Institutional Class | 3,153,274 | 3,576,515 |
Total | $ 86,586,464 | $ 71,372,564 |
Semiannual Report
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended April 30,
2008 | Year ended
October 31, 2007 | Six months ended April 30,
2008 | Year ended
October 31, 2007 |
Class A | | | | |
Shares sold | 854,382 | 2,473,487 | $ 11,034,144 | $ 42,784,764 |
Reinvestment of distributions | 1,636,304 | 1,076,085 | 22,086,522 | 17,077,468 |
Shares redeemed | (1,613,430) | (3,652,624) | (20,717,667) | (63,819,065) |
Net increase (decrease) | 877,256 | (103,052) | $ 12,402,999 | $ (3,956,833) |
Class T | | | | |
Shares sold | 978,229 | 1,816,120 | $ 12,182,662 | $ 30,886,267 |
Reinvestment of distributions | 2,762,616 | 1,951,860 | 36,709,081 | 30,605,163 |
Shares redeemed | (2,489,531) | (4,694,918) | (31,075,791) | (80,369,952) |
Net increase (decrease) | 1,251,314 | (926,938) | $ 17,815,952 | $ (18,878,522) |
Class B | | | | |
Shares sold | 123,210 | 202,050 | $ 1,514,243 | $ 3,191,835 |
Reinvestment of distributions | 561,875 | 474,419 | 6,999,729 | 7,059,355 |
Shares redeemed | (763,502) | (1,460,360) | (9,253,656) | (23,561,432) |
Net increase (decrease) | (78,417) | (783,891) | $ (739,684) | $ (13,310,242) |
Class C | | | | |
Shares sold | 308,938 | 408,629 | $ 3,761,347 | $ 6,500,495 |
Reinvestment of distributions | 998,851 | 649,627 | 12,453,463 | 9,698,929 |
Shares redeemed | (902,894) | (1,190,743) | (10,502,913) | (19,242,229) |
Net increase (decrease) | 404,895 | (132,487) | $ 5,711,897 | $ (3,042,805) |
Institutional Class | | | | |
Shares sold | 45,194 | 112,415 | $ 632,496 | $ 1,997,164 |
Reinvestment of distributions | 166,560 | 179,235 | 2,373,119 | 2,966,333 |
Shares redeemed | (310,385) | (724,750) | (4,514,937) | (12,787,834) |
Net increase (decrease) | (98,631) | (433,100) | $ (1,509,322) | $ (7,824,337) |
Semiannual Report
A special meeting of the fund's shareholders was held on May 14, 2008. The results of votes taken among shareholders on the proposals before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1 |
To elect a Board of Trustees.A |
| # of
Votes | % of
Votes |
James C. Curvey |
Affirmative | 8,514,961,004.35 | 97.348 |
Withheld | 231,994,591.94 | 2.652 |
TOTAL | 8,746,955,596.29 | 100.000 |
Dennis J. Dirks |
Affirmative | 8,525,899,114.46 | 97.473 |
Withheld | 221,056,481.83 | 2.527 |
TOTAL | 8,746,955,596.29 | 100.000 |
Edward C. Johnson 3d |
Affirmative | 8,497,196,105.85 | 97.145 |
Withheld | 249,759,490.44 | 2.855 |
TOTAL | 8,746,955,596.29 | 100.000 |
Alan J. Lacy |
Affirmative | 8,522,858,760.40 | 97.438 |
Withheld | 224,096,835.89 | 2.562 |
TOTAL | 8,746,955,596.29 | 100.000 |
Ned C. Lautenbach |
Affirmative | 8,523,008,335.52 | 97.440 |
Withheld | 223,947,260.77 | 2.560 |
TOTAL | 8,746,955,596.29 | 100.000 |
Joseph Mauriello |
Affirmative | 8,524,890,199.58 | 97.461 |
Withheld | 222,065,396.71 | 2.539 |
TOTAL | 8,746,955,596.29 | 100.000 |
Cornelia M. Small |
Affirmative | 8,525,649,323.51 | 97.470 |
Withheld | 221,306,272.78 | 2.530 |
TOTAL | 8,746,955,596.29 | 100.000 |
| # of
Votes | % of
Votes |
William S. Stavropoulos |
Affirmative | 8,514,682,431.03 | 97.345 |
Withheld | 232,273,165.26 | 2.655 |
TOTAL | 8,746,955,596.29 | 100.000 |
David M. Thomas |
Affirmative | 8,526,972,729.02 | 97.485 |
Withheld | 219,982,867.27 | 2.515 |
TOTAL | 8,746,955,596.29 | 100.000 |
Michael E. Wiley |
Affirmative | 8,523,710,850.33 | 97.448 |
Withheld | 223,244,745.96 | 2.552 |
TOTAL | 8,746,955,596.29 | 100.000 |
PROPOSAL 2 |
To amend the Declaration of Trust of Fidelity Advisor Series VIII to reduce the required quorum for future shareholder meetings.A |
| # of
Votes | % of
Votes |
Affirmative | 4,574,398,791.46 | 52.297 |
Against | 2,140,778,913.08 | 24.475 |
Abstain | 230,752,610.67 | 2.638 |
Broker
Non-Votes | 1,801,025,281.08 | 20.590 |
TOTAL | 8,746,955,596.29 | 100.000 |
A Denotes trust-wide proposal and voting results.
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 Research & Analysis Company
Fidelity International
Investment Advisors
Fidelity Investments Japan Limited
Fidelity International Investment Advisors (U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Brown Brothers Harriman & Co.
Boston, MA
AICAPI-USAN-0608 1.784891.105
(Fidelity Investment logo)(registered trademark)
Fidelity® Advisor
Japan
Fund - Class A, Class T, Class B
and Class C
Semiannual Report
April 30, 2008
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | Ned Johnson's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
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. |
Proxy Voting Results | <Click Here> | |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
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 LLC or an affiliated company.
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.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
Continuation of a credit squeeze, flat consumer spending and a potential recession weighed heavily on stocks in the opening months of 2008, though positive results in investment-grade bonds and money markets offered some comfort to investors. Financial markets are always unpredictable, but there are a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 1, 2007 to April 30, 2008).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Semiannual Report
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Beginning
Account Value
November 1, 2007 | Ending
Account Value
April 30, 2008 | Expenses Paid
During Period*
November 1, 2007 to April 30, 2008 |
Class A | | | |
Actual | $ 1,000.00 | $ 918.30 | $ 7.15 |
Hypothetical A | $ 1,000.00 | $ 1,017.40 | $ 7.52 |
Class T | | | |
Actual | $ 1,000.00 | $ 917.10 | $ 8.34 |
Hypothetical A | $ 1,000.00 | $ 1,016.16 | $ 8.77 |
Class B | | | |
Actual | $ 1,000.00 | $ 914.80 | $ 10.71 |
Hypothetical A | $ 1,000.00 | $ 1,013.67 | $ 11.27 |
Class C | | | |
Actual | $ 1,000.00 | $ 914.70 | $ 10.71 |
Hypothetical A | $ 1,000.00 | $ 1,013.67 | $ 11.27 |
Institutional Class | | | |
Actual | $ 1,000.00 | $ 919.60 | $ 5.92 |
Hypothetical A | $ 1,000.00 | $ 1,018.70 | $ 6.22 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
| Annualized
Expense Ratio |
Class A | 1.50% |
Class T | 1.75% |
Class B | 2.25% |
Class C | 2.25% |
Institutional Class | 1.24% |
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of April 30, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Toyota Motor Corp. | 7.3 | 7.5 |
Canon, Inc. | 5.8 | 3.9 |
Sumitomo Mitsui Financial Group, Inc. | 4.8 | 2.3 |
Mitsubishi UFJ Financial Group, Inc. | 4.1 | 1.4 |
Honda Motor Co. Ltd. | 3.5 | 3.6 |
Nomura Holdings, Inc. | 2.5 | 1.6 |
Asahi Glass Co. Ltd. | 2.5 | 1.6 |
Mitsubishi Electric Corp. | 2.4 | 1.8 |
THK Co. Ltd. | 2.4 | 0.9 |
Sumitomo Trust & Banking Co. Ltd. | 2.3 | 1.3 |
| 37.6 | |
Top Five Market Sectors as of April 30, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 24.1 | 19.2 |
Industrials | 22.3 | 26.5 |
Consumer Discretionary | 22.2 | 21.6 |
Information Technology | 20.4 | 17.6 |
Materials | 6.0 | 8.0 |
Asset Allocation (% of fund's net assets) |
As of April 30, 2008 | As of October 31, 2007 |
| Stocks 99.0% | | | Stocks 98.1% | |
| Short-Term
Investments and
Net Other Assets 1.0% | | | Short-Term
Investments and
Net Other Assets 1.9% | |
Semiannual Report
Investments April 30, 2008 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.0% |
| Shares | | Value |
CONSUMER DISCRETIONARY - 22.2% |
Auto Components - 4.0% |
Denso Corp. | 35,100 | | $ 1,224,116 |
NGK Spark Plug Co. Ltd. | 29,000 | | 390,515 |
Stanley Electric Co. Ltd. | 49,900 | | 1,270,641 |
| | 2,885,272 |
Automobiles - 12.6% |
Honda Motor Co. Ltd. | 79,300 | | 2,530,607 |
Isuzu Motors Ltd. | 81,000 | | 392,336 |
Toyota Motor Corp. | 104,200 | | 5,309,459 |
Yamaha Motor Co. Ltd. | 45,300 | | 875,278 |
| | 9,107,680 |
Household Durables - 1.8% |
Haseko Corp. | 408,000 | | 592,251 |
Sekisui House Ltd. | 73,000 | | 694,817 |
| | 1,287,068 |
Leisure Equipment & Products - 0.8% |
Nikon Corp. | 20,000 | | 577,816 |
Media - 0.9% |
Fuji Television Network, Inc. | 413 | | 677,493 |
Multiline Retail - 1.7% |
Isetan Mitsukoshi Holdings Ltd. (a) | 18,700 | | 197,512 |
Marui Group Co. Ltd. | 62,600 | | 621,239 |
Takashimaya Co. Ltd. | 38,000 | | 417,165 |
| | 1,235,916 |
Specialty Retail - 0.4% |
Yamada Denki Co. Ltd. | 3,240 | | 278,127 |
TOTAL CONSUMER DISCRETIONARY | | 16,049,372 |
CONSUMER STAPLES - 1.4% |
Food & Staples Retailing - 1.4% |
Aeon Co. Ltd. | 69,300 | | 1,015,782 |
FINANCIALS - 24.1% |
Capital Markets - 4.3% |
Daiwa Securities Group, Inc. | 45,000 | | 446,405 |
Matsui Securities Co. Ltd. | 121,700 | | 855,549 |
Nomura Holdings, Inc. | 105,000 | | 1,833,220 |
| | 3,135,174 |
Common Stocks - continued |
| Shares | | Value |
FINANCIALS - continued |
Commercial Banks - 13.7% |
Chiba Bank Ltd. | 27,000 | | $ 213,362 |
Mitsubishi UFJ Financial Group, Inc. | 270,200 | | 2,976,899 |
Mizuho Financial Group, Inc. | 299 | | 1,555,816 |
Sumitomo Mitsui Financial Group, Inc. | 400 | | 3,441,665 |
Sumitomo Trust & Banking Co. Ltd. | 188,000 | | 1,690,061 |
| | 9,877,803 |
Consumer Finance - 0.5% |
Credit Saison Co. Ltd. | 14,500 | | 389,157 |
Insurance - 1.8% |
Sompo Japan Insurance, Inc. | 33,000 | | 367,629 |
T&D Holdings, Inc. | 14,600 | | 934,962 |
| | 1,302,591 |
Real Estate Management & Development - 3.8% |
Leopalace21 Corp. | 23,900 | | 422,739 |
Mitsubishi Estate Co. Ltd. | 33,000 | | 959,564 |
Mitsui Fudosan Co. Ltd. | 18,000 | | 454,793 |
Tokyo Tatemono Co. Ltd. | 50,000 | | 436,462 |
Tokyu Land Corp. | 60,000 | | 448,789 |
| | 2,722,347 |
TOTAL FINANCIALS | | 17,427,072 |
HEALTH CARE - 1.4% |
Pharmaceuticals - 1.4% |
Daiichi Sankyo Co. Ltd. | 11,300 | | 311,318 |
Takeda Pharmaceutical Co. Ltd. | 13,400 | | 708,369 |
| | 1,019,687 |
INDUSTRIALS - 22.3% |
Building Products - 2.5% |
Asahi Glass Co. Ltd. | 148,000 | | 1,766,962 |
Commercial Services & Supplies - 0.7% |
Dai Nippon Printing Co. Ltd. | 33,000 | | 507,857 |
Construction & Engineering - 1.1% |
JGC Corp. | 42,000 | | 780,624 |
Electrical Equipment - 4.3% |
Mitsubishi Electric Corp. | 169,000 | | 1,731,337 |
Sumitomo Electric Industries Ltd. | 104,000 | | 1,342,003 |
| | 3,073,340 |
Common Stocks - continued |
| Shares | | Value |
INDUSTRIALS - continued |
Machinery - 6.6% |
Fanuc Ltd. | 2,200 | | $ 231,854 |
Kubota Corp. | 130,000 | | 910,678 |
NGK Insulators Ltd. | 40,000 | | 770,296 |
NSK Ltd. | 95,000 | | 791,611 |
THK Co. Ltd. | 77,200 | | 1,716,594 |
Toshiba Machine Co. Ltd. | 59,000 | | 382,531 |
| | 4,803,564 |
Trading Companies & Distributors - 6.1% |
Mitsubishi Corp. | 47,700 | | 1,535,305 |
Mitsui & Co. Ltd. | 69,000 | | 1,620,299 |
Sumitomo Corp. | 94,200 | | 1,268,060 |
| | 4,423,664 |
Transportation Infrastructure - 1.0% |
The Sumitomo Warehouse Co. Ltd. | 145,000 | | 727,891 |
TOTAL INDUSTRIALS | | 16,083,902 |
INFORMATION TECHNOLOGY - 20.4% |
Electronic Equipment & Instruments - 8.4% |
Dainippon Screen Manufacturing Co. Ltd. | 246,000 | | 1,067,747 |
Ibiden Co. Ltd. | 4,200 | | 183,251 |
Kyocera Corp. | 5,000 | | 461,736 |
Nidec Sankyo Corp. | 74,000 | | 556,346 |
Nippon Electric Glass Co. Ltd. | 57,500 | | 894,267 |
Omron Corp. | 16,400 | | 343,181 |
Topcon Corp. | 29,100 | | 251,783 |
Yaskawa Electric Corp. | 117,000 | | 1,186,125 |
Yokogawa Electric Corp. | 101,900 | | 1,114,327 |
| | 6,058,763 |
Office Electronics - 7.6% |
Canon, Inc. | 82,900 | | 4,167,413 |
Konica Minolta Holdings, Inc. | 88,500 | | 1,333,457 |
| | 5,500,870 |
Semiconductors & Semiconductor Equipment - 4.4% |
Advantest Corp. | 32,300 | | 889,945 |
Disco Corp. | 7,300 | | 358,649 |
Common Stocks - continued |
| Shares | | Value |
INFORMATION TECHNOLOGY - continued |
Semiconductors & Semiconductor Equipment - continued |
Rohm Co. Ltd. | 9,700 | | $ 680,770 |
Tokyo Electron Ltd. | 19,700 | | 1,279,402 |
| | 3,208,766 |
TOTAL INFORMATION TECHNOLOGY | | 14,768,399 |
MATERIALS - 6.0% |
Chemicals - 3.4% |
JSR Corp. | 37,500 | | 846,796 |
Nitto Denko Corp. | 13,300 | | 550,778 |
Shin-Etsu Chemical Co. Ltd. | 16,900 | | 1,046,299 |
| | 2,443,873 |
Metals & Mining - 2.6% |
Hitachi Metals Ltd. | 54,000 | | 810,726 |
Sumitomo Metal Industries Ltd. | 262,000 | | 1,103,368 |
| | 1,914,094 |
TOTAL MATERIALS | | 4,357,967 |
TELECOMMUNICATION SERVICES - 1.2% |
Wireless Telecommunication Services - 1.2% |
KDDI Corp. | 57 | | 366,113 |
NTT DoCoMo, Inc. | 347 | | 509,603 |
| | 875,716 |
TOTAL COMMON STOCKS (Cost $71,081,006) | 71,597,897 |
Money Market Funds - 0.5% |
| | | |
Fidelity Cash Central Fund, 2.51% (b)
(Cost $357,680) | 357,680 | | 357,680 |
TOTAL INVESTMENT PORTFOLIO - 99.5% (Cost $71,438,686) | | 71,955,577 |
NET OTHER ASSETS - 0.5% | | 379,039 |
NET ASSETS - 100% | $ 72,334,616 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 17,641 |
Fidelity Securities Lending Cash Central Fund | 6,982 |
Total | $ 24,623 |
Income Tax Information |
At October 31, 2007, the fund had a capital loss carryforward of approximately $12,845,430 of which $6,193,464 and $6,651,966 will expire on October 31, 2010 and 2015, respectively. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| April 30, 2008 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $71,081,006) | $ 71,597,897 | |
Fidelity Central Funds (cost $357,680) | 357,680 | |
Total Investments (cost $71,438,686) | | $ 71,955,577 |
Receivable for investments sold | | 652,175 |
Receivable for fund shares sold | | 32,875 |
Dividends receivable | | 582,865 |
Distributions receivable from Fidelity Central Funds | | 3,909 |
Prepaid expenses | | 196 |
Other receivables | | 4,780 |
Total assets | | 73,232,377 |
| | |
Liabilities | | |
Payable for investments purchased | $ 603,182 | |
Payable for fund shares redeemed | 134,114 | |
Accrued management fee | 79,712 | |
Distribution fees payable | 33,761 | |
Other affiliated payables | 19,021 | |
Other payables and accrued expenses | 27,971 | |
Total liabilities | | 897,761 |
| | |
Net Assets | | $ 72,334,616 |
Net Assets consist of: | | |
Paid in capital | | $ 88,987,285 |
Undistributed net investment income | | 6,153 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (17,152,640) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 493,818 |
Net Assets | | $ 72,334,616 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| April 30, 2008 (Unaudited) |
| | |
Calculation of Maximum Offering Price
Class A:
Net Asset Value and redemption price per share ($23,894,277 ÷ 1,591,908 shares) | | $ 15.01 |
| | |
Maximum offering price per share (100/94.25 of $15.01) | | $ 15.93 |
Class T:
Net Asset Value and redemption price per share ($11,836,304 ÷ 801,124 shares) | | $ 14.77 |
| | |
Maximum offering price per share (100/96.50 of $14.77) | | $ 15.31 |
Class B:
Net Asset Value and offering price per share ($5,899,031 ÷ 416,022 shares)A | | $ 14.18 |
| | |
Class C:
Net Asset Value and offering price per share ($24,134,632 ÷ 1,691,178 shares)A | | $ 14.27 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($6,570,372 ÷ 427,393 shares) | | $ 15.37 |
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
Financial Statements - continued
Statement of Operations
Six months ended April 30, 2008 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 740,145 |
Interest | | 22 |
Income from Fidelity Central Funds | | 24,623 |
| | 764,790 |
Less foreign taxes withheld | | (51,810) |
Total income | | 712,980 |
| | |
Expenses | | |
Management fee | $ 275,405 | |
Transfer agent fees | 109,258 | |
Distribution fees | 226,655 | |
Accounting and security lending fees | 20,872 | |
Custodian fees and expenses | 23,941 | |
Independent trustees' compensation | 171 | |
Registration fees | 46,970 | |
Audit | 25,054 | |
Legal | 197 | |
Miscellaneous | 21,769 | |
Total expenses before reductions | 750,292 | |
Expense reductions | (43,465) | 706,827 |
Net investment income (loss) | | 6,153 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (3,717,473) | |
Foreign currency transactions | 13,078 | |
Total net realized gain (loss) | | (3,704,395) |
Change in net unrealized appreciation (depreciation) on: Investment securities | (4,993,958) | |
Assets and liabilities in foreign currencies | (20,770) | |
Total change in net unrealized appreciation (depreciation) | | (5,014,728) |
Net gain (loss) | | (8,719,123) |
Net increase (decrease) in net assets resulting from operations | | $ (8,712,970) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended April 30, 2008
(Unaudited) | Year ended
October 31,
2007 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 6,153 | $ (691,985) |
Net realized gain (loss) | (3,704,395) | (5,160,896) |
Change in net unrealized appreciation (depreciation) | (5,014,728) | 3,048,941 |
Net increase (decrease) in net assets resulting
from operations | (8,712,970) | (2,803,940) |
Distributions to shareholders from net realized gain | (176,687) | - |
Share transactions - net increase (decrease) | (16,301,736) | (46,358,208) |
Redemption fees | 7,544 | 26,649 |
Total increase (decrease) in net assets | (25,183,849) | (49,135,499) |
| | |
Net Assets | | |
Beginning of period | 97,518,465 | 146,653,964 |
End of period (including undistributed net investment income of $6,153 and undistributed net investment income of $0, respectively) | $ 72,334,616 | $ 97,518,465 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended April 30, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 16.41 | $ 16.72 | $ 15.61 | $ 12.64 | $ 11.78 | $ 8.74 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .03 | (.04) | (.07) | (.08) | (.11) | (.07) |
Net realized and unrealized gain (loss) | (1.37) | (.27) | 1.17 | 3.04 | .95 | 3.11 |
Total from investment operations | (1.34) | (.31) | 1.10 | 2.96 | .84 | 3.04 |
Distributions from net realized gain | (.06) | - | - | - | - | - |
Redemption fees added to paid in capital E | - I | - I | .01 | .01 | .02 | - |
Net asset value, end of period | $ 15.01 | $ 16.41 | $ 16.72 | $ 15.61 | $ 12.64 | $ 11.78 |
Total Return B, C, D | (8.17)% | (1.85)% | 7.11% | 23.50% | 7.30% | 34.78% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 1.62% A | 1.70% | 1.52% | 1.62% | 1.80% | 2.20% |
Expenses net of fee waivers, if any | 1.50% A | 1.50% | 1.50% | 1.56% | 1.75% | 1.75% |
Expenses net of all reductions | 1.48% A | 1.48% | 1.48% | 1.55% | 1.75% | 1.75% |
Net investment income (loss) | .35% A | (.22)% | (.42)% | (.54)% | (.89)% | (.76)% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 23,894 | $ 32,945 | $ 41,876 | $ 26,169 | $ 17,884 | $ 8,695 |
Portfolio tur nover rate G | 69% A | 138% | 83% | 89% | 83% | 99% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements 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
Financial Highlights - Class T
| Six months ended April 30, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 16.11 | $ 16.46 | $ 15.41 | $ 12.51 | $ 11.68 | $ 8.69 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .01 | (.08) | (.12) | (.11) | (.14) | (.09) |
Net realized and unrealized gain (loss) | (1.35) | (.27) | 1.16 | 3.00 | .95 | 3.08 |
Total from investment operations | (1.34) | (.35) | 1.04 | 2.89 | .81 | 2.99 |
Distributions from net realized gain | - I | - | - | - | - | - |
Redemption fees added to paid in capital E | - I | - I | .01 | .01 | .02 | - |
Net asset value, end of period | $ 14.77 | $ 16.11 | $ 16.46 | $ 15.41 | $ 12.51 | $ 11.68 |
Total Return B, C, D | (8.29)% | (2.13)% | 6.81% | 23.18% | 7.11% | 34.41% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 1.88% A | 1.96% | 1.82% | 1.97% | 2.19% | 2.57% |
Expenses net of fee waivers, if any | 1.75% A | 1.75% | 1.75% | 1.81% | 2.00% | 2.00% |
Expenses net of all reductions | 1.73% A | 1.73% | 1.73% | 1.80% | 2.00% | 2.00% |
Net investment income (loss) | .10% A | (.47)% | (.67)% | (.79)% | (1.14)% | (1.01)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 11,836 | $ 14,303 | $ 21,039 | $ 15,610 | $ 11,493 | $ 11,823 |
Portfolio turnover rate G | 69% A | 138% | 83% | 89% | 83% | 99% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements 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
Financial Highlights - Class B
| Six months ended April 30, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 15.50 | $ 15.91 | $ 14.96 | $ 12.21 | $ 11.46 | $ 8.57 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.03) | (.15) | (.20) | (.17) | (.20) | (.14) |
Net realized and unrealized gain (loss) | (1.29) | (.26) | 1.14 | 2.91 | .93 | 3.03 |
Total from investment operations | (1.32) | (.41) | .94 | 2.74 | .73 | 2.89 |
Redemption fees added to paid in capital E | - I | - I | .01 | .01 | .02 | - |
Net asset value, end of period | $ 14.18 | $ 15.50 | $ 15.91 | $ 14.96 | $ 12.21 | $ 11.46 |
Total Return B, C, D | (8.52)% | (2.58)% | 6.35% | 22.52% | 6.54% | 33.72% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 2.36% A | 2.45% | 2.33% | 2.43% | 2.62% | 3.03% |
Expenses net of fee waivers, if any | 2.25% A | 2.25% | 2.25% | 2.31% | 2.50% | 2.50% |
Expenses net of all reductions | 2.23% A | 2.23% | 2.23% | 2.30% | 2.50% | 2.50% |
Net investment income (loss) | (.40)% A | (.97)% | (1.17)% | (1.30)% | (1.64)% | (1.51)% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 5,899 | $ 7,874 | $ 16,120 | $ 18,916 | $ 18,218 | $ 14,761 |
Portfolio turnover rate G | 69% A | 138% | 83% | 89% | 83% | 99% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements 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
Financial Highlights - Class C
| Six months ended April 30, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 15.60 | $ 16.01 | $ 15.05 | $ 12.28 | $ 11.52 | $ 8.61 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.03) | (.15) | (.18) | (.17) | (.19) | (.14) |
Net realized and unrealized gain (loss) | (1.30) | (.26) | 1.13 | 2.93 | .93 | 3.05 |
Total from investment operations | (1.33) | (.41) | .95 | 2.76 | .74 | 2.91 |
Redemption fees added to paid in capital E | - I | - I | .01 | .01 | .02 | - |
Net asset value, end of period | $ 14.27 | $ 15.60 | $ 16.01 | $ 15.05 | $ 12.28 | $ 11.52 |
Total Return B, C, D | (8.53)% | (2.56)% | 6.38% | 22.56% | 6.60% | 33.80% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 2.32% A | 2.37% | 2.18% | 2.27% | 2.44% | 2.82% |
Expenses net of fee waivers, if any | 2.25% A | 2.25% | 2.18% | 2.27% | 2.44% | 2.50% |
Expenses net of all reductions | 2.23% A | 2.23% | 2.16% | 2.26% | 2.44% | 2.49% |
Net investment income (loss) | (.40)% A | (.97)% | (1.10)% | (1.25)% | (1.58)% | (1.51)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 24,135 | $ 33,957 | $ 53,846 | $ 34,144 | $ 21,564 | $ 10,374 |
Portfolio turnover rate G | 69% A | 138% | 83% | 89% | 83% | 99% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements 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
Financial Highlights - Institutional Class
| Six months ended April 30, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 16.82 | $ 17.10 | $ 15.90 | $ 12.83 | $ 11.91 | $ 8.82 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .05 | .01 | (.01) | (.02) | (.06) | (.05) |
Net realized and unrealized gain (loss) | (1.40) | (.29) | 1.19 | 3.08 | .96 | 3.14 |
Total from investment operations | (1.35) | (.28) | 1.18 | 3.06 | .90 | 3.09 |
Distributions from net realized gain | (.10) | - | - | - | - | - |
Redemption fees added to paid in capital D | - H | - H | .02 | .01 | .02 | - |
Net asset value, end of period | $ 15.37 | $ 16.82 | $ 17.10 | $ 15.90 | $ 12.83 | $ 11.91 |
Total Return B, C | (8.04)% | (1.64)% | 7.55% | 23.93% | 7.72% | 35.03% |
Ratios to Average Net Assets E, G | | | | | |
Expenses before reductions | 1.24% A | 1.31% | 1.12% | 1.19% | 1.36% | 1.67% |
Expenses net of fee waivers, if any | 1.24% A | 1.25% | 1.12% | 1.19% | 1.36% | 1.50% |
Expenses net of all reductions | 1.23% A | 1.23% | 1.10% | 1.17% | 1.36% | 1.49% |
Net investment income (loss) | .60% A | .03% | (.04)% | (.17)% | (.50)% | (.51)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 6,570 | $ 8,440 | $ 13,773 | $ 8,399 | $ 3,919 | $ 3,905 |
Portfolio turnover rate F | 69% A | 138% | 83% | 89% | 83% | 99% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements 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
Notes to Financial Statements
For the period ended April 30, 2008 (Unaudited)
1. Organization.
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.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
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. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued and net asset value (NAV) per share is calculated (NAV calculation) as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or do not accurately reflect fair value, valuations may be determined in accordance with procedures adopted by the Board of Trustees. For example, when developments occur between the close of a market and the close of the NYSE that may materially affect the value of some or all of the securities, or when trading in a security is halted, those securities may be fair valued. Factors used in the determination of fair value may include monitoring news to identify significant market or security specific events such as changes in the value of U.S. securities markets, reviewing developments in foreign markets and evaluating the performance of ADRs, futures contracts and exchange-traded funds. Because the Fund's utilization of fair value pricing depends on market activity, the frequency with which fair value pricing is used cannot be predicted and may be utilized to a significant extent. The value of securities used for NAV calculation under fair value pricing may differ from published prices for the same securities.
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.
Semiannual Report
3. Significant Accounting Policies - continued
Foreign Currency - continued
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. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV for processing shareholder transactions includes trades executed through the end of the prior business day. 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 and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. 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 each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not result in any unrecognized tax benefits in the accompanying financial statements. Each of the Fund's federal tax returns for the prior three fiscal years remains subject to examination by the Internal Revenue Service. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 5,603,859 | |
Unrealized depreciation | (5,613,184) | |
Net unrealized appreciation (depreciation) | $ (9,325) | |
Cost for federal income tax purposes | $ 71,964,902 | |
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.
New Accounting Pronouncement. In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and results in expanded disclosures about fair value measurements.
4. Operating Policies.
Repurchase Agreements. 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 which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
Semiannual Report
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $27,529,384 and $42,863,415, respectively.
6. 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 .26% 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 the performance period). The upward or downward adjustment to the management fee is based on the relative performance of the Institutional Class of the Fund as compared to an appropriate benchmark index. The Fund's performance period began on October 1, 2007 and subsequent months will be added until the performance period includes 36 months. The Fund's performance adjustment will take effect in September 2008. For the period, the total annualized management fee rate was .71% 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. 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 and the total amounts paid to and retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC |
Class A | -% | .25% | $ 32,838 | $ 2,757 |
Class T | .25% | .25% | 30,710 | 178 |
Class B | .75% | .25% | 31,599 | 23,755 |
Class C | .75% | .25% | 131,508 | 12,923 |
| | | $ 226,655 | $ 39,613 |
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, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, 1.00% to .50% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 2,770 |
Class T | 1,245 |
Class B* | 12,033 |
Class C* | 7,000 |
| $ 23,048 |
* 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 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 shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each class to FIIOC were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 39,565 | .30 |
Class T | 20,177 | .33 |
Class B | 9,520 | .30 |
Class C | 33,713 | .26 |
Institutional Class | 6,283 | .19 |
| $ 109,258 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Semiannual Report
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $4.2 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, which amounted to $80 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, 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. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. At period end, there were no security loans outstanding. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $6,982.
9. Expense Reductions.
FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense
Limitations | Reimbursement
from adviser |
| | |
Class A | 1.50% | $ 15,331 |
Class T | 1.75% | 8,233 |
Class B | 2.25% | 3,530 |
Class C | 2.25% | 9,152 |
| | $ 36,246 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
9. 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 included payments of certain expenses on behalf of the Fund totaling $7,219 for the period.
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30,
2008 | Year ended
October 31,
2007 |
From net realized gain | | |
Class A | $ 124,132 | $ - |
Class T | 3,460 | - |
Institutional Class | 49,095 | - |
Total | $ 176,687 | $ - |
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended April 30,
2008 | Year ended
October 31,
2007 | Six months ended April 30,
2008 | Year ended
October 31,
2007 |
Class A | | | | |
Shares sold | 162,204 | 880,882 | $ 2,365,499 | $ 14,621,774 |
Reinvestment of distributions | 5,585 | - | 90,031 | - |
Shares redeemed | (583,727) | (1,378,099) | (8,438,148) | (22,819,285) |
Net increase (decrease) | (415,938) | (497,217) | $ (5,982,618) | $ (8,197,511) |
Semiannual Report
12. Share Transactions - continued
| Shares | Dollars |
| Six months ended April 30,
2008 | Year ended
October 31,
2007 | Six months ended April 30,
2008 | Year ended
October 31,
2007 |
Class T | | | | |
Shares sold | 98,572 | 210,578 | $ 1,424,231 | $ 3,439,343 |
Reinvestment of distributions | 190 | - | 3,018 | - |
Shares redeemed | (185,362) | (601,386) | (2,608,068) | (9,800,348) |
Net increase (decrease) | (86,600) | (390,808) | $ (1,180,819) | $ (6,361,005) |
Class B | | | | |
Shares sold | 23,080 | 60,581 | $ 325,217 | $ 947,979 |
Reinvestment of distributions | - | - | - | - |
Shares redeemed | (115,064) | (565,912) | (1,588,965) | (8,855,704) |
Net increase (decrease) | (91,984) | (505,331) | $ (1,263,748) | $ (7,907,725) |
Class C | | | | |
Shares sold | 69,251 | 404,623 | $ 977,504 | $ 6,455,208 |
Reinvestment of distributions | - | - | - | - |
Shares redeemed | (555,025) | (1,590,835) | (7,743,225) | (25,190,493) |
Net increase (decrease) | (485,774) | (1,186,212) | $ (6,765,721) | $ (18,735,285) |
Institutional Class | | | | |
Shares sold | 25,783 | 174,093 | $ 397,625 | $ 2,974,426 |
Reinvestment of distributions | 496 | - | 8,183 | - |
Shares redeemed | (100,518) | (477,947) | (1,514,638) | (8,131,108) |
Net increase (decrease) | (74,239) | (303,854) | $ (1,108,830) | $ (5,156,682) |
Semiannual Report
A special meeting of the fund's shareholders was held on May 14, 2008. The results of votes taken among shareholders on the proposals before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1 |
To elect a Board of Trustees.A |
| # of
Votes | % of
Votes |
James C. Curvey |
Affirmative | 8,514,961,004.35 | 97.348 |
Withheld | 231,994,591.94 | 2.652 |
TOTAL | 8,746,955,596.29 | 100.000 |
Dennis J. Dirks |
Affirmative | 8,525,899,114.46 | 97.473 |
Withheld | 221,056,481.83 | 2.527 |
TOTAL | 8,746,955,596.29 | 100.000 |
Edward C. Johnson 3d |
Affirmative | 8,497,196,105.85 | 97.145 |
Withheld | 249,759,490.44 | 2.855 |
TOTAL | 8,746,955,596.29 | 100.000 |
Alan J. Lacy |
Affirmative | 8,522,858,760.40 | 97.438 |
Withheld | 224,096,835.89 | 2.562 |
TOTAL | 8,746,955,596.29 | 100.000 |
Ned C. Lautenbach |
Affirmative | 8,523,008,335.52 | 97.440 |
Withheld | 223,947,260.77 | 2.560 |
TOTAL | 8,746,955,596.29 | 100.000 |
Joseph Mauriello |
Affirmative | 8,524,890,199.58 | 97.461 |
Withheld | 222,065,396.71 | 2.539 |
TOTAL | 8,746,955,596.29 | 100.000 |
Cornelia M. Small |
Affirmative | 8,525,649,323.51 | 97.470 |
Withheld | 221,306,272.78 | 2.530 |
TOTAL | 8,746,955,596.29 | 100.000 |
William S. Stavropoulos |
Affirmative | 8,514,682,431.03 | 97.345 |
Withheld | 232,273,165.26 | 2.655 |
TOTAL | 8,746,955,596.29 | 100.000 |
David M. Thomas |
Affirmative | 8,526,972,729.02 | 97.485 |
Withheld | 219,982,867.27 | 2.515 |
TOTAL | 8,746,955,596.29 | 100.000 |
Michael E. Wiley |
Affirmative | 8,523,710,850.33 | 97.448 |
Withheld | 223,244,745.96 | 2.552 |
TOTAL | 8,746,955,596.29 | 100.000 |
PROPOSAL 2 |
To amend the Declaration of Trust of Fidelity Advisor Series VIII to reduce the required quorum for future shareholder meetings.A |
| # of
Votes | % of
Votes |
Affirmative | 4,574,398,791.46 | 52.297 |
Against | 2,140,778,913.08 | 24.475 |
Abstain | 230,752,610.67 | 2.638 |
Broker
Non-Votes | 1,801,025,281.08 | 20.590 |
TOTAL | 8,746,955,596.29 | 100.000 |
A Denotes trust-wide proposal and voting results.
Semiannual Report
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Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Research & Analysis Company
Fidelity International
Investment Advisors
Fidelity Investments Japan Limited
Fidelity International Investment Advisors (U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
State Street Bank and Trust Company
Quincy, MA
AJAF-USAN-0608 1.784892.105
(Fidelity Investment logo)(registered trademark)
Fidelity® Advisor
Japan
Fund - Institutional Class
Semiannual Report
April 30, 2008
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | Ned Johnson's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
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. |
Proxy Voting Results | <Click Here> | |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
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 LLC or an affiliated company.
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.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
Continuation of a credit squeeze, flat consumer spending and a potential recession weighed heavily on stocks in the opening months of 2008, though positive results in investment-grade bonds and money markets offered some comfort to investors. Financial markets are always unpredictable, but there are a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 1, 2007 to April 30, 2008).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Semiannual Report
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Beginning
Account Value
November 1, 2007 | Ending
Account Value
April 30, 2008 | Expenses Paid
During Period*
November 1, 2007 to April 30, 2008 |
Class A | | | |
Actual | $ 1,000.00 | $ 918.30 | $ 7.15 |
Hypothetical A | $ 1,000.00 | $ 1,017.40 | $ 7.52 |
Class T | | | |
Actual | $ 1,000.00 | $ 917.10 | $ 8.34 |
Hypothetical A | $ 1,000.00 | $ 1,016.16 | $ 8.77 |
Class B | | | |
Actual | $ 1,000.00 | $ 914.80 | $ 10.71 |
Hypothetical A | $ 1,000.00 | $ 1,013.67 | $ 11.27 |
Class C | | | |
Actual | $ 1,000.00 | $ 914.70 | $ 10.71 |
Hypothetical A | $ 1,000.00 | $ 1,013.67 | $ 11.27 |
Institutional Class | | | |
Actual | $ 1,000.00 | $ 919.60 | $ 5.92 |
Hypothetical A | $ 1,000.00 | $ 1,018.70 | $ 6.22 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
| Annualized
Expense Ratio |
Class A | 1.50% |
Class T | 1.75% |
Class B | 2.25% |
Class C | 2.25% |
Institutional Class | 1.24% |
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of April 30, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Toyota Motor Corp. | 7.3 | 7.5 |
Canon, Inc. | 5.8 | 3.9 |
Sumitomo Mitsui Financial Group, Inc. | 4.8 | 2.3 |
Mitsubishi UFJ Financial Group, Inc. | 4.1 | 1.4 |
Honda Motor Co. Ltd. | 3.5 | 3.6 |
Nomura Holdings, Inc. | 2.5 | 1.6 |
Asahi Glass Co. Ltd. | 2.5 | 1.6 |
Mitsubishi Electric Corp. | 2.4 | 1.8 |
THK Co. Ltd. | 2.4 | 0.9 |
Sumitomo Trust & Banking Co. Ltd. | 2.3 | 1.3 |
| 37.6 | |
Top Five Market Sectors as of April 30, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 24.1 | 19.2 |
Industrials | 22.3 | 26.5 |
Consumer Discretionary | 22.2 | 21.6 |
Information Technology | 20.4 | 17.6 |
Materials | 6.0 | 8.0 |
Asset Allocation (% of fund's net assets) |
As of April 30, 2008 | As of October 31, 2007 |
| Stocks 99.0% | | | Stocks 98.1% | |
| Short-Term
Investments and
Net Other Assets 1.0% | | | Short-Term
Investments and
Net Other Assets 1.9% | |
Semiannual Report
Investments April 30, 2008 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.0% |
| Shares | | Value |
CONSUMER DISCRETIONARY - 22.2% |
Auto Components - 4.0% |
Denso Corp. | 35,100 | | $ 1,224,116 |
NGK Spark Plug Co. Ltd. | 29,000 | | 390,515 |
Stanley Electric Co. Ltd. | 49,900 | | 1,270,641 |
| | 2,885,272 |
Automobiles - 12.6% |
Honda Motor Co. Ltd. | 79,300 | | 2,530,607 |
Isuzu Motors Ltd. | 81,000 | | 392,336 |
Toyota Motor Corp. | 104,200 | | 5,309,459 |
Yamaha Motor Co. Ltd. | 45,300 | | 875,278 |
| | 9,107,680 |
Household Durables - 1.8% |
Haseko Corp. | 408,000 | | 592,251 |
Sekisui House Ltd. | 73,000 | | 694,817 |
| | 1,287,068 |
Leisure Equipment & Products - 0.8% |
Nikon Corp. | 20,000 | | 577,816 |
Media - 0.9% |
Fuji Television Network, Inc. | 413 | | 677,493 |
Multiline Retail - 1.7% |
Isetan Mitsukoshi Holdings Ltd. (a) | 18,700 | | 197,512 |
Marui Group Co. Ltd. | 62,600 | | 621,239 |
Takashimaya Co. Ltd. | 38,000 | | 417,165 |
| | 1,235,916 |
Specialty Retail - 0.4% |
Yamada Denki Co. Ltd. | 3,240 | | 278,127 |
TOTAL CONSUMER DISCRETIONARY | | 16,049,372 |
CONSUMER STAPLES - 1.4% |
Food & Staples Retailing - 1.4% |
Aeon Co. Ltd. | 69,300 | | 1,015,782 |
FINANCIALS - 24.1% |
Capital Markets - 4.3% |
Daiwa Securities Group, Inc. | 45,000 | | 446,405 |
Matsui Securities Co. Ltd. | 121,700 | | 855,549 |
Nomura Holdings, Inc. | 105,000 | | 1,833,220 |
| | 3,135,174 |
Common Stocks - continued |
| Shares | | Value |
FINANCIALS - continued |
Commercial Banks - 13.7% |
Chiba Bank Ltd. | 27,000 | | $ 213,362 |
Mitsubishi UFJ Financial Group, Inc. | 270,200 | | 2,976,899 |
Mizuho Financial Group, Inc. | 299 | | 1,555,816 |
Sumitomo Mitsui Financial Group, Inc. | 400 | | 3,441,665 |
Sumitomo Trust & Banking Co. Ltd. | 188,000 | | 1,690,061 |
| | 9,877,803 |
Consumer Finance - 0.5% |
Credit Saison Co. Ltd. | 14,500 | | 389,157 |
Insurance - 1.8% |
Sompo Japan Insurance, Inc. | 33,000 | | 367,629 |
T&D Holdings, Inc. | 14,600 | | 934,962 |
| | 1,302,591 |
Real Estate Management & Development - 3.8% |
Leopalace21 Corp. | 23,900 | | 422,739 |
Mitsubishi Estate Co. Ltd. | 33,000 | | 959,564 |
Mitsui Fudosan Co. Ltd. | 18,000 | | 454,793 |
Tokyo Tatemono Co. Ltd. | 50,000 | | 436,462 |
Tokyu Land Corp. | 60,000 | | 448,789 |
| | 2,722,347 |
TOTAL FINANCIALS | | 17,427,072 |
HEALTH CARE - 1.4% |
Pharmaceuticals - 1.4% |
Daiichi Sankyo Co. Ltd. | 11,300 | | 311,318 |
Takeda Pharmaceutical Co. Ltd. | 13,400 | | 708,369 |
| | 1,019,687 |
INDUSTRIALS - 22.3% |
Building Products - 2.5% |
Asahi Glass Co. Ltd. | 148,000 | | 1,766,962 |
Commercial Services & Supplies - 0.7% |
Dai Nippon Printing Co. Ltd. | 33,000 | | 507,857 |
Construction & Engineering - 1.1% |
JGC Corp. | 42,000 | | 780,624 |
Electrical Equipment - 4.3% |
Mitsubishi Electric Corp. | 169,000 | | 1,731,337 |
Sumitomo Electric Industries Ltd. | 104,000 | | 1,342,003 |
| | 3,073,340 |
Common Stocks - continued |
| Shares | | Value |
INDUSTRIALS - continued |
Machinery - 6.6% |
Fanuc Ltd. | 2,200 | | $ 231,854 |
Kubota Corp. | 130,000 | | 910,678 |
NGK Insulators Ltd. | 40,000 | | 770,296 |
NSK Ltd. | 95,000 | | 791,611 |
THK Co. Ltd. | 77,200 | | 1,716,594 |
Toshiba Machine Co. Ltd. | 59,000 | | 382,531 |
| | 4,803,564 |
Trading Companies & Distributors - 6.1% |
Mitsubishi Corp. | 47,700 | | 1,535,305 |
Mitsui & Co. Ltd. | 69,000 | | 1,620,299 |
Sumitomo Corp. | 94,200 | | 1,268,060 |
| | 4,423,664 |
Transportation Infrastructure - 1.0% |
The Sumitomo Warehouse Co. Ltd. | 145,000 | | 727,891 |
TOTAL INDUSTRIALS | | 16,083,902 |
INFORMATION TECHNOLOGY - 20.4% |
Electronic Equipment & Instruments - 8.4% |
Dainippon Screen Manufacturing Co. Ltd. | 246,000 | | 1,067,747 |
Ibiden Co. Ltd. | 4,200 | | 183,251 |
Kyocera Corp. | 5,000 | | 461,736 |
Nidec Sankyo Corp. | 74,000 | | 556,346 |
Nippon Electric Glass Co. Ltd. | 57,500 | | 894,267 |
Omron Corp. | 16,400 | | 343,181 |
Topcon Corp. | 29,100 | | 251,783 |
Yaskawa Electric Corp. | 117,000 | | 1,186,125 |
Yokogawa Electric Corp. | 101,900 | | 1,114,327 |
| | 6,058,763 |
Office Electronics - 7.6% |
Canon, Inc. | 82,900 | | 4,167,413 |
Konica Minolta Holdings, Inc. | 88,500 | | 1,333,457 |
| | 5,500,870 |
Semiconductors & Semiconductor Equipment - 4.4% |
Advantest Corp. | 32,300 | | 889,945 |
Disco Corp. | 7,300 | | 358,649 |
Common Stocks - continued |
| Shares | | Value |
INFORMATION TECHNOLOGY - continued |
Semiconductors & Semiconductor Equipment - continued |
Rohm Co. Ltd. | 9,700 | | $ 680,770 |
Tokyo Electron Ltd. | 19,700 | | 1,279,402 |
| | 3,208,766 |
TOTAL INFORMATION TECHNOLOGY | | 14,768,399 |
MATERIALS - 6.0% |
Chemicals - 3.4% |
JSR Corp. | 37,500 | | 846,796 |
Nitto Denko Corp. | 13,300 | | 550,778 |
Shin-Etsu Chemical Co. Ltd. | 16,900 | | 1,046,299 |
| | 2,443,873 |
Metals & Mining - 2.6% |
Hitachi Metals Ltd. | 54,000 | | 810,726 |
Sumitomo Metal Industries Ltd. | 262,000 | | 1,103,368 |
| | 1,914,094 |
TOTAL MATERIALS | | 4,357,967 |
TELECOMMUNICATION SERVICES - 1.2% |
Wireless Telecommunication Services - 1.2% |
KDDI Corp. | 57 | | 366,113 |
NTT DoCoMo, Inc. | 347 | | 509,603 |
| | 875,716 |
TOTAL COMMON STOCKS (Cost $71,081,006) | 71,597,897 |
Money Market Funds - 0.5% |
| | | |
Fidelity Cash Central Fund, 2.51% (b)
(Cost $357,680) | 357,680 | | 357,680 |
TOTAL INVESTMENT PORTFOLIO - 99.5% (Cost $71,438,686) | | 71,955,577 |
NET OTHER ASSETS - 0.5% | | 379,039 |
NET ASSETS - 100% | $ 72,334,616 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 17,641 |
Fidelity Securities Lending Cash Central Fund | 6,982 |
Total | $ 24,623 |
Income Tax Information |
At October 31, 2007, the fund had a capital loss carryforward of approximately $12,845,430 of which $6,193,464 and $6,651,966 will expire on October 31, 2010 and 2015, respectively. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| April 30, 2008 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $71,081,006) | $ 71,597,897 | |
Fidelity Central Funds (cost $357,680) | 357,680 | |
Total Investments (cost $71,438,686) | | $ 71,955,577 |
Receivable for investments sold | | 652,175 |
Receivable for fund shares sold | | 32,875 |
Dividends receivable | | 582,865 |
Distributions receivable from Fidelity Central Funds | | 3,909 |
Prepaid expenses | | 196 |
Other receivables | | 4,780 |
Total assets | | 73,232,377 |
| | |
Liabilities | | |
Payable for investments purchased | $ 603,182 | |
Payable for fund shares redeemed | 134,114 | |
Accrued management fee | 79,712 | |
Distribution fees payable | 33,761 | |
Other affiliated payables | 19,021 | |
Other payables and accrued expenses | 27,971 | |
Total liabilities | | 897,761 |
| | |
Net Assets | | $ 72,334,616 |
Net Assets consist of: | | |
Paid in capital | | $ 88,987,285 |
Undistributed net investment income | | 6,153 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (17,152,640) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 493,818 |
Net Assets | | $ 72,334,616 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| April 30, 2008 (Unaudited) |
| | |
Calculation of Maximum Offering Price
Class A:
Net Asset Value and redemption price per share ($23,894,277 ÷ 1,591,908 shares) | | $ 15.01 |
| | |
Maximum offering price per share (100/94.25 of $15.01) | | $ 15.93 |
Class T:
Net Asset Value and redemption price per share ($11,836,304 ÷ 801,124 shares) | | $ 14.77 |
| | |
Maximum offering price per share (100/96.50 of $14.77) | | $ 15.31 |
Class B:
Net Asset Value and offering price per share ($5,899,031 ÷ 416,022 shares)A | | $ 14.18 |
| | |
Class C:
Net Asset Value and offering price per share ($24,134,632 ÷ 1,691,178 shares)A | | $ 14.27 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($6,570,372 ÷ 427,393 shares) | | $ 15.37 |
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
Financial Statements - continued
Statement of Operations
Six months ended April 30, 2008 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 740,145 |
Interest | | 22 |
Income from Fidelity Central Funds | | 24,623 |
| | 764,790 |
Less foreign taxes withheld | | (51,810) |
Total income | | 712,980 |
| | |
Expenses | | |
Management fee | $ 275,405 | |
Transfer agent fees | 109,258 | |
Distribution fees | 226,655 | |
Accounting and security lending fees | 20,872 | |
Custodian fees and expenses | 23,941 | |
Independent trustees' compensation | 171 | |
Registration fees | 46,970 | |
Audit | 25,054 | |
Legal | 197 | |
Miscellaneous | 21,769 | |
Total expenses before reductions | 750,292 | |
Expense reductions | (43,465) | 706,827 |
Net investment income (loss) | | 6,153 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (3,717,473) | |
Foreign currency transactions | 13,078 | |
Total net realized gain (loss) | | (3,704,395) |
Change in net unrealized appreciation (depreciation) on: Investment securities | (4,993,958) | |
Assets and liabilities in foreign currencies | (20,770) | |
Total change in net unrealized appreciation (depreciation) | | (5,014,728) |
Net gain (loss) | | (8,719,123) |
Net increase (decrease) in net assets resulting from operations | | $ (8,712,970) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended April 30, 2008
(Unaudited) | Year ended
October 31,
2007 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 6,153 | $ (691,985) |
Net realized gain (loss) | (3,704,395) | (5,160,896) |
Change in net unrealized appreciation (depreciation) | (5,014,728) | 3,048,941 |
Net increase (decrease) in net assets resulting
from operations | (8,712,970) | (2,803,940) |
Distributions to shareholders from net realized gain | (176,687) | - |
Share transactions - net increase (decrease) | (16,301,736) | (46,358,208) |
Redemption fees | 7,544 | 26,649 |
Total increase (decrease) in net assets | (25,183,849) | (49,135,499) |
| | |
Net Assets | | |
Beginning of period | 97,518,465 | 146,653,964 |
End of period (including undistributed net investment income of $6,153 and undistributed net investment income of $0, respectively) | $ 72,334,616 | $ 97,518,465 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended April 30, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 16.41 | $ 16.72 | $ 15.61 | $ 12.64 | $ 11.78 | $ 8.74 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .03 | (.04) | (.07) | (.08) | (.11) | (.07) |
Net realized and unrealized gain (loss) | (1.37) | (.27) | 1.17 | 3.04 | .95 | 3.11 |
Total from investment operations | (1.34) | (.31) | 1.10 | 2.96 | .84 | 3.04 |
Distributions from net realized gain | (.06) | - | - | - | - | - |
Redemption fees added to paid in capital E | - I | - I | .01 | .01 | .02 | - |
Net asset value, end of period | $ 15.01 | $ 16.41 | $ 16.72 | $ 15.61 | $ 12.64 | $ 11.78 |
Total Return B, C, D | (8.17)% | (1.85)% | 7.11% | 23.50% | 7.30% | 34.78% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 1.62% A | 1.70% | 1.52% | 1.62% | 1.80% | 2.20% |
Expenses net of fee waivers, if any | 1.50% A | 1.50% | 1.50% | 1.56% | 1.75% | 1.75% |
Expenses net of all reductions | 1.48% A | 1.48% | 1.48% | 1.55% | 1.75% | 1.75% |
Net investment income (loss) | .35% A | (.22)% | (.42)% | (.54)% | (.89)% | (.76)% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 23,894 | $ 32,945 | $ 41,876 | $ 26,169 | $ 17,884 | $ 8,695 |
Portfolio tur nover rate G | 69% A | 138% | 83% | 89% | 83% | 99% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements 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
Financial Highlights - Class T
| Six months ended April 30, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 16.11 | $ 16.46 | $ 15.41 | $ 12.51 | $ 11.68 | $ 8.69 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .01 | (.08) | (.12) | (.11) | (.14) | (.09) |
Net realized and unrealized gain (loss) | (1.35) | (.27) | 1.16 | 3.00 | .95 | 3.08 |
Total from investment operations | (1.34) | (.35) | 1.04 | 2.89 | .81 | 2.99 |
Distributions from net realized gain | - I | - | - | - | - | - |
Redemption fees added to paid in capital E | - I | - I | .01 | .01 | .02 | - |
Net asset value, end of period | $ 14.77 | $ 16.11 | $ 16.46 | $ 15.41 | $ 12.51 | $ 11.68 |
Total Return B, C, D | (8.29)% | (2.13)% | 6.81% | 23.18% | 7.11% | 34.41% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 1.88% A | 1.96% | 1.82% | 1.97% | 2.19% | 2.57% |
Expenses net of fee waivers, if any | 1.75% A | 1.75% | 1.75% | 1.81% | 2.00% | 2.00% |
Expenses net of all reductions | 1.73% A | 1.73% | 1.73% | 1.80% | 2.00% | 2.00% |
Net investment income (loss) | .10% A | (.47)% | (.67)% | (.79)% | (1.14)% | (1.01)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 11,836 | $ 14,303 | $ 21,039 | $ 15,610 | $ 11,493 | $ 11,823 |
Portfolio turnover rate G | 69% A | 138% | 83% | 89% | 83% | 99% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements 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
Financial Highlights - Class B
| Six months ended April 30, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 15.50 | $ 15.91 | $ 14.96 | $ 12.21 | $ 11.46 | $ 8.57 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.03) | (.15) | (.20) | (.17) | (.20) | (.14) |
Net realized and unrealized gain (loss) | (1.29) | (.26) | 1.14 | 2.91 | .93 | 3.03 |
Total from investment operations | (1.32) | (.41) | .94 | 2.74 | .73 | 2.89 |
Redemption fees added to paid in capital E | - I | - I | .01 | .01 | .02 | - |
Net asset value, end of period | $ 14.18 | $ 15.50 | $ 15.91 | $ 14.96 | $ 12.21 | $ 11.46 |
Total Return B, C, D | (8.52)% | (2.58)% | 6.35% | 22.52% | 6.54% | 33.72% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 2.36% A | 2.45% | 2.33% | 2.43% | 2.62% | 3.03% |
Expenses net of fee waivers, if any | 2.25% A | 2.25% | 2.25% | 2.31% | 2.50% | 2.50% |
Expenses net of all reductions | 2.23% A | 2.23% | 2.23% | 2.30% | 2.50% | 2.50% |
Net investment income (loss) | (.40)% A | (.97)% | (1.17)% | (1.30)% | (1.64)% | (1.51)% |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 5,899 | $ 7,874 | $ 16,120 | $ 18,916 | $ 18,218 | $ 14,761 |
Portfolio turnover rate G | 69% A | 138% | 83% | 89% | 83% | 99% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements 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
Financial Highlights - Class C
| Six months ended April 30, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 15.60 | $ 16.01 | $ 15.05 | $ 12.28 | $ 11.52 | $ 8.61 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.03) | (.15) | (.18) | (.17) | (.19) | (.14) |
Net realized and unrealized gain (loss) | (1.30) | (.26) | 1.13 | 2.93 | .93 | 3.05 |
Total from investment operations | (1.33) | (.41) | .95 | 2.76 | .74 | 2.91 |
Redemption fees added to paid in capital E | - I | - I | .01 | .01 | .02 | - |
Net asset value, end of period | $ 14.27 | $ 15.60 | $ 16.01 | $ 15.05 | $ 12.28 | $ 11.52 |
Total Return B, C, D | (8.53)% | (2.56)% | 6.38% | 22.56% | 6.60% | 33.80% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | 2.32% A | 2.37% | 2.18% | 2.27% | 2.44% | 2.82% |
Expenses net of fee waivers, if any | 2.25% A | 2.25% | 2.18% | 2.27% | 2.44% | 2.50% |
Expenses net of all reductions | 2.23% A | 2.23% | 2.16% | 2.26% | 2.44% | 2.49% |
Net investment income (loss) | (.40)% A | (.97)% | (1.10)% | (1.25)% | (1.58)% | (1.51)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 24,135 | $ 33,957 | $ 53,846 | $ 34,144 | $ 21,564 | $ 10,374 |
Portfolio turnover rate G | 69% A | 138% | 83% | 89% | 83% | 99% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements 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
Financial Highlights - Institutional Class
| Six months ended April 30, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 16.82 | $ 17.10 | $ 15.90 | $ 12.83 | $ 11.91 | $ 8.82 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .05 | .01 | (.01) | (.02) | (.06) | (.05) |
Net realized and unrealized gain (loss) | (1.40) | (.29) | 1.19 | 3.08 | .96 | 3.14 |
Total from investment operations | (1.35) | (.28) | 1.18 | 3.06 | .90 | 3.09 |
Distributions from net realized gain | (.10) | - | - | - | - | - |
Redemption fees added to paid in capital D | - H | - H | .02 | .01 | .02 | - |
Net asset value, end of period | $ 15.37 | $ 16.82 | $ 17.10 | $ 15.90 | $ 12.83 | $ 11.91 |
Total Return B, C | (8.04)% | (1.64)% | 7.55% | 23.93% | 7.72% | 35.03% |
Ratios to Average Net Assets E, G | | | | | |
Expenses before reductions | 1.24% A | 1.31% | 1.12% | 1.19% | 1.36% | 1.67% |
Expenses net of fee waivers, if any | 1.24% A | 1.25% | 1.12% | 1.19% | 1.36% | 1.50% |
Expenses net of all reductions | 1.23% A | 1.23% | 1.10% | 1.17% | 1.36% | 1.49% |
Net investment income (loss) | .60% A | .03% | (.04)% | (.17)% | (.50)% | (.51)% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 6,570 | $ 8,440 | $ 13,773 | $ 8,399 | $ 3,919 | $ 3,905 |
Portfolio turnover rate F | 69% A | 138% | 83% | 89% | 83% | 99% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements 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
Notes to Financial Statements
For the period ended April 30, 2008 (Unaudited)
1. Organization.
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.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
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. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued and net asset value (NAV) per share is calculated (NAV calculation) as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or do not accurately reflect fair value, valuations may be determined in accordance with procedures adopted by the Board of Trustees. For example, when developments occur between the close of a market and the close of the NYSE that may materially affect the value of some or all of the securities, or when trading in a security is halted, those securities may be fair valued. Factors used in the determination of fair value may include monitoring news to identify significant market or security specific events such as changes in the value of U.S. securities markets, reviewing developments in foreign markets and evaluating the performance of ADRs, futures contracts and exchange-traded funds. Because the Fund's utilization of fair value pricing depends on market activity, the frequency with which fair value pricing is used cannot be predicted and may be utilized to a significant extent. The value of securities used for NAV calculation under fair value pricing may differ from published prices for the same securities.
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.
Semiannual Report
3. Significant Accounting Policies - continued
Foreign Currency - continued
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. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV for processing shareholder transactions includes trades executed through the end of the prior business day. 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 and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. 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 each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not result in any unrecognized tax benefits in the accompanying financial statements. Each of the Fund's federal tax returns for the prior three fiscal years remains subject to examination by the Internal Revenue Service. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), capital loss carryforwards and losses deferred due to wash sales.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 5,603,859 | |
Unrealized depreciation | (5,613,184) | |
Net unrealized appreciation (depreciation) | $ (9,325) | |
Cost for federal income tax purposes | $ 71,964,902 | |
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.
New Accounting Pronouncement. In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and results in expanded disclosures about fair value measurements.
4. Operating Policies.
Repurchase Agreements. 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 which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
Semiannual Report
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $27,529,384 and $42,863,415, respectively.
6. 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 .26% 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 the performance period). The upward or downward adjustment to the management fee is based on the relative performance of the Institutional Class of the Fund as compared to an appropriate benchmark index. The Fund's performance period began on October 1, 2007 and subsequent months will be added until the performance period includes 36 months. The Fund's performance adjustment will take effect in September 2008. For the period, the total annualized management fee rate was .71% 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. 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 and the total amounts paid to and retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC |
Class A | -% | .25% | $ 32,838 | $ 2,757 |
Class T | .25% | .25% | 30,710 | 178 |
Class B | .75% | .25% | 31,599 | 23,755 |
Class C | .75% | .25% | 131,508 | 12,923 |
| | | $ 226,655 | $ 39,613 |
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, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, 1.00% to .50% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 2,770 |
Class T | 1,245 |
Class B* | 12,033 |
Class C* | 7,000 |
| $ 23,048 |
* 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 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 shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each class to FIIOC were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 39,565 | .30 |
Class T | 20,177 | .33 |
Class B | 9,520 | .30 |
Class C | 33,713 | .26 |
Institutional Class | 6,283 | .19 |
| $ 109,258 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
Semiannual Report
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $4.2 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, which amounted to $80 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, 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. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. At period end, there were no security loans outstanding. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $6,982.
9. Expense Reductions.
FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
| Expense
Limitations | Reimbursement
from adviser |
| | |
Class A | 1.50% | $ 15,331 |
Class T | 1.75% | 8,233 |
Class B | 2.25% | 3,530 |
Class C | 2.25% | 9,152 |
| | $ 36,246 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
9. 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 included payments of certain expenses on behalf of the Fund totaling $7,219 for the period.
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30,
2008 | Year ended
October 31,
2007 |
From net realized gain | | |
Class A | $ 124,132 | $ - |
Class T | 3,460 | - |
Institutional Class | 49,095 | - |
Total | $ 176,687 | $ - |
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended April 30,
2008 | Year ended
October 31,
2007 | Six months ended April 30,
2008 | Year ended
October 31,
2007 |
Class A | | | | |
Shares sold | 162,204 | 880,882 | $ 2,365,499 | $ 14,621,774 |
Reinvestment of distributions | 5,585 | - | 90,031 | - |
Shares redeemed | (583,727) | (1,378,099) | (8,438,148) | (22,819,285) |
Net increase (decrease) | (415,938) | (497,217) | $ (5,982,618) | $ (8,197,511) |
Semiannual Report
12. Share Transactions - continued
| Shares | Dollars |
| Six months ended April 30,
2008 | Year ended
October 31,
2007 | Six months ended April 30,
2008 | Year ended
October 31,
2007 |
Class T | | | | |
Shares sold | 98,572 | 210,578 | $ 1,424,231 | $ 3,439,343 |
Reinvestment of distributions | 190 | - | 3,018 | - |
Shares redeemed | (185,362) | (601,386) | (2,608,068) | (9,800,348) |
Net increase (decrease) | (86,600) | (390,808) | $ (1,180,819) | $ (6,361,005) |
Class B | | | | |
Shares sold | 23,080 | 60,581 | $ 325,217 | $ 947,979 |
Reinvestment of distributions | - | - | - | - |
Shares redeemed | (115,064) | (565,912) | (1,588,965) | (8,855,704) |
Net increase (decrease) | (91,984) | (505,331) | $ (1,263,748) | $ (7,907,725) |
Class C | | | | |
Shares sold | 69,251 | 404,623 | $ 977,504 | $ 6,455,208 |
Reinvestment of distributions | - | - | - | - |
Shares redeemed | (555,025) | (1,590,835) | (7,743,225) | (25,190,493) |
Net increase (decrease) | (485,774) | (1,186,212) | $ (6,765,721) | $ (18,735,285) |
Institutional Class | | | | |
Shares sold | 25,783 | 174,093 | $ 397,625 | $ 2,974,426 |
Reinvestment of distributions | 496 | - | 8,183 | - |
Shares redeemed | (100,518) | (477,947) | (1,514,638) | (8,131,108) |
Net increase (decrease) | (74,239) | (303,854) | $ (1,108,830) | $ (5,156,682) |
Semiannual Report
A special meeting of the fund's shareholders was held on May 14, 2008. The results of votes taken among shareholders on the proposals before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1 |
To elect a Board of Trustees.A |
| # of
Votes | % of
Votes |
James C. Curvey |
Affirmative | 8,514,961,004.35 | 97.348 |
Withheld | 231,994,591.94 | 2.652 |
TOTAL | 8,746,955,596.29 | 100.000 |
Dennis J. Dirks |
Affirmative | 8,525,899,114.46 | 97.473 |
Withheld | 221,056,481.83 | 2.527 |
TOTAL | 8,746,955,596.29 | 100.000 |
Edward C. Johnson 3d |
Affirmative | 8,497,196,105.85 | 97.145 |
Withheld | 249,759,490.44 | 2.855 |
TOTAL | 8,746,955,596.29 | 100.000 |
Alan J. Lacy |
Affirmative | 8,522,858,760.40 | 97.438 |
Withheld | 224,096,835.89 | 2.562 |
TOTAL | 8,746,955,596.29 | 100.000 |
Ned C. Lautenbach |
Affirmative | 8,523,008,335.52 | 97.440 |
Withheld | 223,947,260.77 | 2.560 |
TOTAL | 8,746,955,596.29 | 100.000 |
Joseph Mauriello |
Affirmative | 8,524,890,199.58 | 97.461 |
Withheld | 222,065,396.71 | 2.539 |
TOTAL | 8,746,955,596.29 | 100.000 |
Cornelia M. Small |
Affirmative | 8,525,649,323.51 | 97.470 |
Withheld | 221,306,272.78 | 2.530 |
TOTAL | 8,746,955,596.29 | 100.000 |
William S. Stavropoulos |
Affirmative | 8,514,682,431.03 | 97.345 |
Withheld | 232,273,165.26 | 2.655 |
TOTAL | 8,746,955,596.29 | 100.000 |
David M. Thomas |
Affirmative | 8,526,972,729.02 | 97.485 |
Withheld | 219,982,867.27 | 2.515 |
TOTAL | 8,746,955,596.29 | 100.000 |
Michael E. Wiley |
Affirmative | 8,523,710,850.33 | 97.448 |
Withheld | 223,244,745.96 | 2.552 |
TOTAL | 8,746,955,596.29 | 100.000 |
PROPOSAL 2 |
To amend the Declaration of Trust of Fidelity Advisor Series VIII to reduce the required quorum for future shareholder meetings.A |
| # of
Votes | % of
Votes |
Affirmative | 4,574,398,791.46 | 52.297 |
Against | 2,140,778,913.08 | 24.475 |
Abstain | 230,752,610.67 | 2.638 |
Broker
Non-Votes | 1,801,025,281.08 | 20.590 |
TOTAL | 8,746,955,596.29 | 100.000 |
A Denotes trust-wide proposal and voting results.
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 Research & Analysis Company
Fidelity International
Investment Advisors
Fidelity Investments Japan Limited
Fidelity International Investment Advisors (U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
State Street Bank and Trust Company
Quincy, MA
AJAFI-USAN-0608 1.784893.105
(Fidelity Investment logo)(registered trademark)
Fidelity® Advisor
Latin America
Fund - Class A, Class T, Class B
and Class C
Semiannual Report
April 30, 2008
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | Ned Johnson's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
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. |
Proxy Voting Results | <Click Here> | |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
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 LLC or an affiliated company.
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.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
Continuation of a credit squeeze, flat consumer spending and a potential recession weighed heavily on stocks in the opening months of 2008, though positive results in investment-grade bonds and money markets offered some comfort to investors. Financial markets are always unpredictable, but there are a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 1, 2007 to April 30, 2008).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Semiannual Report
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Beginning
Account Value
November 1, 2007 | Ending
Account Value
April 30, 2008 | Expenses Paid
During Period*
November 1, 2007 to
April 30, 2008 |
Class A | | | |
Actual | $ 1,000.00 | $ 1,012.90 | $ 7.16 |
HypotheticalA | $ 1,000.00 | $ 1,017.75 | $ 7.17 |
Class T | | | |
Actual | $ 1,000.00 | $ 1,011.40 | $ 8.55 |
HypotheticalA | $ 1,000.00 | $ 1,016.36 | $ 8.57 |
Class B | | | |
Actual | $ 1,000.00 | $ 1,008.90 | $ 11.09 |
HypotheticalA | $ 1,000.00 | $ 1,013.82 | $ 11.12 |
Class C | | | |
Actual | $ 1,000.00 | $ 1,009.10 | $ 10.89 |
HypotheticalA | $ 1,000.00 | $ 1,014.02 | $ 10.92 |
Institutional Class | | | |
Actual | $ 1,000.00 | $ 1,014.60 | $ 5.71 |
HypotheticalA | $ 1,000.00 | $ 1,019.19 | $ 5.72 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
| Annualized
Expense Ratio |
Class A | 1.43% |
Class T | 1.71% |
Class B | 2.22% |
Class C | 2.18% |
Institutional Class | 1.14% |
Semiannual Report
Investment Changes (Unaudited)
Top Five Stocks as of April 30, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Petroleo Brasileiro SA - Petrobras | 18.6 | 15.6 |
Companhia Vale do Rio Doce | 14.1 | 15.0 |
America Movil SAB de CV | 7.1 | 8.9 |
Banco Bradesco SA | 4.2 | 4.5 |
Usinas Siderurgicas de Minas Gerais SA - Usiminas | 3.4 | 2.7 |
| 47.4 | |
Top Five Market Sectors as of April 30, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Materials | 29.0 | 26.4 |
Energy | 20.6 | 16.6 |
Financials | 14.8 | 16.2 |
Telecommunication Services | 11.1 | 13.0 |
Consumer Discretionary | 8.3 | 7.9 |
Top Five Countries as of April 30, 2008 |
(excluding cash equivalents) | % of fund's
net assets | % of fund's net assets
6 months ago |
Brazil | 67.9 | 64.6 |
Mexico | 19.5 | 21.4 |
Luxembourg | 2.5 | 1.0 |
Chile | 2.0 | 4.0 |
Bermuda | 1.7 | 1.7 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) |
As of April 30, 2008 | As of October 31, 2007 |
| Stocks 95.7% | | | Stocks 96.1% | |
| Short-Term
Investments and
Net Other Assets 4.3% | | | Short-Term
Investments and
Net Other Assets 3.9% | |
Semiannual Report
Investments April 30, 2008 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 90.4% |
| Shares | | Value |
Argentina - 0.3% |
Banco Patagonia SA unit | 19,900 | | $ 353,177 |
Grupo Clarin SA GDR (f) | 41,600 | | 499,200 |
TOTAL ARGENTINA | | 852,377 |
Bermuda - 1.7% |
Credicorp Ltd. (NY Shares) | 32,100 | | 2,579,556 |
Dufry South America Ltd. unit | 111,249 | | 2,238,767 |
GP Investments, Ltd. unit | 72,465 | | 697,533 |
Laep Investments Ltd. unit | 77,199 | | 261,943 |
TOTAL BERMUDA | | 5,777,799 |
Brazil - 62.6% |
Acucar Guarani SA | 97,500 | | 571,321 |
AES Tiete SA (PN) (non-vtg.) | 136,145 | | 1,228,598 |
All America Latina Logistica SA unit | 130,100 | | 1,698,454 |
Aracruz Celulose SA (PN-B) sponsored ADR (non-vtg.) | 4,100 | | 330,460 |
B2W Companhia Global Do Varejo | 45,300 | | 1,501,642 |
Banco ABC Brasil SA | 64,190 | | 386,175 |
Banco Bradesco SA: | | | |
(PN) | 189,484 | | 4,388,843 |
(PN) sponsored ADR | 426,300 | | 9,625,854 |
Banco Daycoval SA (PN) | 139,100 | | 1,046,053 |
Banco do Brasil SA | 342,300 | | 5,930,839 |
Banco do Estado do Rio Grande do Sul SA (f) | 117,053 | | 725,331 |
Banco Indusval SA | 28,760 | | 276,838 |
Banco Itau Holding Financeira SA sponsored ADR (non-vtg.) | 90,500 | | 2,538,525 |
Bolsa de Mercadorias & Futuros - BM&F SA | 19,800 | | 201,312 |
Bovespa Holding SA | 6,000 | | 91,144 |
Brasil Telecom Participacoes SA sponsored ADR | 25,140 | | 1,900,835 |
Brasil Telecom SA (PN) | 59,200 | | 712,309 |
Companhia Brasileira de Desenvolvimento Imobiliario Turistico | 1,700 | | 746,601 |
Companhia de Bebidas das Americas (AmBev): | | | |
(PN) sponsored ADR | 73,800 | | 5,409,540 |
sponsored ADR | 3,260 | | 211,867 |
Companhia de Saneamento de Minas Gerais | 71,400 | | 1,185,561 |
Companhia Providencia Industria e Comercio | 61,900 | | 249,507 |
Companhia Siderurgica Nacional SA (CSN) sponsored ADR | 148,300 | | 6,399,145 |
Companhia Vale do Rio Doce: | | | |
(PN-A) sponsored ADR | 833,200 | | 26,529,088 |
sponsored ADR | 477,300 | | 18,652,884 |
Construtora Tenda SA | 153,100 | | 810,540 |
Duratex SA (PN) | 109,800 | | 2,271,701 |
Common Stocks - continued |
| Shares | | Value |
Brazil - continued |
Eletropaulo Metropolitana SA (PN-B) | 64,760 | | $ 1,450,496 |
Equatorial Energia SA | 73,000 | | 711,028 |
Gerdau SA sponsored ADR | 129,100 | | 5,000,043 |
GVT Holding SA (a) | 196,600 | | 4,778,390 |
Localiza Rent a Car SA | 113,800 | | 1,485,658 |
Metalurgica Gerdau SA (PN) | 13,000 | | 685,116 |
MMX Mineracao e Metalicos SA (a) | 59,800 | | 2,007,484 |
MPX Mineracao e Energia SA | 1,900 | | 1,105,342 |
MRV Engenharia e Participacoes SA | 103,900 | | 2,094,002 |
Multiplan Empreendimentos Imobiliarios SA | 71,000 | | 897,004 |
Net Servicos de Comunicacao SA: | | | |
sponsored ADR | 7,500 | | 102,375 |
(PN) (a) | 260,100 | | 3,559,906 |
PDG Realty S.A. Empreendimentos e Participacoes | 52,100 | | 763,226 |
Petroleo Brasileiro SA - Petrobras: | | | |
(ON) | 19,800 | | 608,818 |
(PN) (non-vtg.) | 357,800 | | 9,157,028 |
(PN) sponsored ADR (non-vtg.) | 252,100 | | 25,487,310 |
sponsored ADR | 224,000 | | 27,198,081 |
Profarma Distribuidora de Produtos Farmaceuticos SA (a) | 58,100 | | 1,041,620 |
Rossi Residencial SA | 61,400 | | 631,657 |
Sao Carlos Empreen E Part SA (a) | 40,400 | | 340,272 |
Satipel Industrial SA | 61,000 | | 392,672 |
Tegma Gestao Logistica | 106,700 | | 1,142,618 |
Tele Norte Leste Participacoes SA | 35,200 | | 1,060,955 |
Tele Norte Leste Participacoes SA sponsored ADR (non-vtg.) | 28,600 | | 655,226 |
Terna Participacoes SA unit | 75,000 | | 1,353,177 |
TIM Participacoes SA | 83,300 | | 282,645 |
TIM Participacoes SA sponsored ADR (non-vtg.) | 50,200 | | 1,685,716 |
Totvs SA | 65,800 | | 2,177,235 |
Tractebel Energia SA | 92,300 | | 1,295,487 |
Uniao de Bancos Brasileiros SA (Unibanco): | | | |
unit | 21,700 | | 323,764 |
GDR | 56,600 | | 8,230,206 |
Usinas Siderurgicas de Minas Gerais SA - Usiminas | 28,650 | | 1,417,849 |
Vivo Participacoes SA: | | | |
(PN) | 25,800 | | 183,155 |
(PN) sponsored ADR | 225,100 | | 1,519,425 |
Votorantim Celulose e Papel SA: | | | |
(PN) (non-vtg.) | 4,980 | | 158,190 |
sponsored ADR (non-vtg.) | 127,950 | | 4,067,531 |
TOTAL BRAZIL | | 210,671,674 |
Common Stocks - continued |
| Shares | | Value |
Chile - 2.0% |
CAP SA | 134,342 | | $ 4,476,614 |
Lan Airlines SA sponsored ADR | 107,100 | | 1,416,933 |
Sociedad Quimica y Minera de Chile SA (SQM) (PN-B) sponsored ADR | 10,900 | | 310,759 |
Vina Concha y Toro SA sponsored ADR | 13,985 | | 562,896 |
TOTAL CHILE | | 6,767,202 |
Colombia - 0.3% |
Almacenes Exito SA unit (f) | 146,700 | | 1,147,073 |
Luxembourg - 2.5% |
Tenaris SA sponsored ADR | 125,000 | | 6,626,250 |
Ternium SA sponsored ADR | 53,400 | | 1,862,592 |
TOTAL LUXEMBOURG | | 8,488,842 |
Mexico - 19.5% |
Alsea SAB de CV | 968,500 | | 1,277,021 |
America Movil SAB de CV Series L sponsored ADR | 412,100 | | 23,885,316 |
Banco Compartamos SA de CV | 195,200 | | 819,975 |
Cemex SA de CV sponsored ADR | 109,667 | | 3,032,293 |
Controladora Commercial Mexicana SA unit | 290,827 | | 821,566 |
Corporacion Geo SA de CV Series B (a) | 765,600 | | 2,859,846 |
Desarrolladora Homex Sab de CV (a) | 51,900 | | 516,538 |
Desarrolladora Homex Sab de CV sponsored ADR (a)(e) | 26,700 | | 1,590,786 |
Empresas ICA Sociedad Controladora SA de CV (a) | 228,500 | | 1,383,581 |
Fomento Economico Mexicano SA de CV sponsored ADR | 90,763 | | 3,943,652 |
Grupo Aeroportuario del Pacifico SA de CV sponsored ADR | 36,200 | | 1,479,494 |
Grupo Aeroportuario Norte Sab de CV ADR | 30,653 | | 666,703 |
Grupo Mexico SA de CV Series B | 638,881 | | 4,670,052 |
Grupo Televisa SA de CV | 73,000 | | 360,102 |
Grupo Televisa SA de CV (CPO) sponsored ADR | 348,056 | | 8,590,022 |
Industrias Penoles SA de CV | 101,200 | | 2,981,848 |
Megacable Holdings SAB de CV unit | 313,800 | | 924,459 |
Urbi, Desarrollos Urbanos, SA de CV (a) | 693,400 | | 2,221,921 |
Wal-Mart de Mexico SA de CV Series V | 852,869 | | 3,450,913 |
TOTAL MEXICO | | 65,476,088 |
Panama - 0.6% |
Copa Holdings SA Class A | 26,100 | | 1,020,249 |
Intergroup Financial Services Corp. | 43,091 | | 896,293 |
Intergroup Financial Services Corp. (f) | 11,123 | | 231,358 |
TOTAL PANAMA | | 2,147,900 |
Common Stocks - continued |
| Shares | | Value |
United States of America - 0.9% |
Freeport-McMoRan Copper & Gold, Inc. Class B | 25,600 | | $ 2,912,000 |
TOTAL COMMON STOCKS (Cost $185,096,377) | 304,240,955 |
Nonconvertible Preferred Stocks - 5.3% |
| | | |
Brazil - 5.3% |
Banco Itau Holding Financeira SA (non-vtg.) | 182,880 | | 5,297,601 |
Brasil Telecom Participacoes SA (PN) | 19,500 | | 299,738 |
Companhia Vale do Rio Doce (PN-A) | 76,000 | | 2,452,557 |
Usinas Siderurgicas de Minas Gerais SA - Usiminas (PN-A) (non-vtg.) | 208,200 | | 10,007,929 |
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $5,703,825) | 18,057,825 |
Convertible Bonds - 0.0% |
| Principal Amount (d) | | |
Brazil - 0.0% |
Companhia de Saneamento de Minas Gerais 2.3% 6/1/13 (g)
(Cost $43,358) | BRL | $ 691 | | 45,895 |
Money Market Funds - 4.8% |
| Shares | | |
Fidelity Cash Central Fund, 2.51% (b) | 15,070,869 | | 15,070,869 |
Fidelity Securities Lending Cash Central Fund, 2.44% (b)(c) | 1,020,900 | | 1,020,900 |
TOTAL MONEY MARKET FUNDS (Cost $16,091,769) | 16,091,769 |
TOTAL INVESTMENT PORTFOLIO - 100.5% (Cost $206,935,329) | | 338,436,444 |
NET OTHER ASSETS - (0.5)% | | (1,831,226) |
NET ASSETS - 100% | $ 336,605,218 |
Currency Abbreviations |
BRL | - | Brazilian real |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Principal amount is stated in United States dollars unless otherwise noted. |
(e) Security or a portion of the security is on loan at period end. |
(f) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $2,602,962 or 0.8% of net assets. |
(g) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $45,895 or 0.0% of net assets. |
Additional information on each holding is as follows: |
Security | Acquisition Date | Acquisition Cost |
Companhia de Saneamento de Minas Gerais 2.3% 6/1/13 | 8/20/07 | $ 43,358 |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 168,658 |
Fidelity Securities Lending Cash Central Fund | 25,301 |
Total | $ 193,959 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| April 30, 2008 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $977,112) - See accompanying schedule: Unaffiliated issuers (cost $190,843,560) | $ 322,344,675 | |
Fidelity Central Funds (cost $16,091,769) | 16,091,769 | |
Total Investments (cost $206,935,329) | | $ 338,436,444 |
Cash | | 366,457 |
Foreign currency held at value (cost $349) | | 355 |
Receivable for investments sold | | 1,001,206 |
Receivable for fund shares sold | | 1,343,305 |
Dividends receivable | | 1,420,657 |
Interest receivable | | 7 |
Distributions receivable from Fidelity Central Funds | | 34,345 |
Prepaid expenses | | 542 |
Other receivables | | 8,316 |
Total assets | | 342,611,634 |
| | |
Liabilities | | |
Payable for investments purchased | $ 4,254,121 | |
Payable for fund shares redeemed | 290,381 | |
Accrued management fee | 187,454 | |
Distribution fees payable | 131,300 | |
Other affiliated payables | 80,027 | |
Other payables and accrued expenses | 42,233 | |
Collateral on securities loaned, at value | 1,020,900 | |
Total liabilities | | 6,006,416 |
| | |
Net Assets | | $ 336,605,218 |
Net Assets consist of: | | |
Paid in capital | | $ 205,972,686 |
Undistributed net investment income | | 886,888 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (1,742,889) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 131,488,533 |
Net Assets | | $ 336,605,218 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| April 30, 2008 (Unaudited) |
| | |
Calculation of Maximum Offering Price
Class A:
Net Asset Value and redemption price per share ($161,269,733 ÷ 2,642,710 shares) | | $ 61.02 |
| | |
Maximum offering price per share (100/94.25 of $61.02) | | $ 64.74 |
Class T:
Net Asset Value and redemption price per share ($53,128,880 ÷ 877,077 shares) | | $ 60.57 |
| | |
Maximum offering price per share (100/96.50 of $60.57) | | $ 62.77 |
Class B:
Net Asset Value and offering price per share ($33,800,180 ÷ 568,693 shares)A | | $ 59.43 |
| | |
Class C:
Net Asset Value and offering price per share ($65,474,955 ÷ 1,106,591 shares)A | | $ 59.17 |
| | |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($22,931,470 ÷ 368,264 shares) | | $ 62.27 |
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
Financial Statements - continued
Statement of Operations
Six months ended April 30, 2008 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 3,196,118 |
Special dividends | | 738,403 |
Interest | | 10,187 |
Income from Fidelity Central Funds | | 193,959 |
| | 4,138,667 |
Less foreign taxes withheld | | (255,328) |
Total income | | 3,883,339 |
| | |
Expenses | | |
Management fee | $ 1,008,770 | |
Transfer agent fees | 392,175 | |
Distribution fees | 719,294 | |
Accounting and security lending fees | 77,433 | |
Custodian fees and expenses | 95,252 | |
Independent trustees' compensation | 574 | |
Registration fees | 64,503 | |
Audit | 25,222 | |
Legal | 424 | |
Miscellaneous | 32,812 | |
Total expenses before reductions | 2,416,459 | |
Expense reductions | (18,794) | 2,397,665 |
Net investment income (loss) | | 1,485,674 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (121,395) | |
Foreign currency transactions | (32,377) | |
Total net realized gain (loss) | | (153,772) |
Change in net unrealized appreciation (depreciation) on: Investment securities | 1,723,262 | |
Assets and liabilities in foreign currencies | (11,168) | |
Total change in net unrealized appreciation (depreciation) | | 1,712,094 |
Net gain (loss) | | 1,558,322 |
Net increase (decrease) in net assets resulting from operations | | $ 3,043,996 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended April 30, 2008
(Unaudited) | Year ended
October 31,
2007 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 1,485,674 | $ 1,188,565 |
Net realized gain (loss) | (153,772) | 5,028,865 |
Change in net unrealized appreciation (depreciation) | 1,712,094 | 95,314,077 |
Net increase (decrease) in net assets resulting
from operations | 3,043,996 | 101,531,507 |
Distributions to shareholders from net investment income | (1,251,517) | (1,338,713) |
Distributions to shareholders from net realized gain | (4,625,788) | (2,827,380) |
Total distributions | (5,877,305) | (4,166,093) |
Share transactions - net increase (decrease) | 48,372,166 | 60,112,145 |
Redemption fees | 128,811 | 149,278 |
Total increase (decrease) in net assets | 45,667,668 | 157,626,837 |
| | |
Net Assets | | |
Beginning of period | 290,937,550 | 133,310,713 |
End of period (including undistributed net investment income of $886,888 and undistributed net investment income of $787,106, respectively) | $ 336,605,218 | $ 290,937,550 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
April 30, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 61.60 | $ 37.85 | $ 27.16 | $ 16.72 | $ 12.49 | $ 8.29 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .37 H | .42 | .58 | .42 | .24 | .12 |
Net realized and unrealized gain (loss) | .36 | 24.52 | 10.94 | 10.14 | 4.09 | 4.17 |
Total from investment operations | .73 | 24.94 | 11.52 | 10.56 | 4.33 | 4.29 |
Distributions from net investment income | (.39) | (.46) | (.34) | (.17) | (.11) | (.09) |
Distributions from net realized gain | (.95) | (.77) | (.55) | - | - | - |
Total distributions | (1.34) | (1.23) | (.89) | (.17) | (.11) | (.09) |
Redemption fees added to paid in capital E | .03 | .04 | .06 | .05 | .01 | - |
Net asset value, end of period | $ 61.02 | $ 61.60 | $ 37.85 | $ 27.16 | $ 16.72 | $ 12.49 |
Total Return B, C, D | 1.29% | 67.94% | 43.54% | 63.94% | 34.98% | 52.29% |
Ratios to Average Net Assets F, I | | | | | |
Expenses before
reductions | 1.43% A | 1.45% | 1.62% | 1.93% | 3.07% | 5.92% |
Expenses net of fee waivers, if any | 1.43% A | 1.45% | 1.50% | 1.56% | 2.02% | 2.02% |
Expenses net of all reductions | 1.42% A | 1.43% | 1.47% | 1.50% | 1.98% | 2.02% |
Net investment income (loss) | 1.30% A, H | .88% | 1.70% | 1.88% | 1.63% | 1.22% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 161,270 | $ 132,524 | $ 56,662 | $ 13,736 | $ 1,954 | $ 918 |
Portfolio turnover rate G | 32% A | 49% | 50% | 42% | 71% | 67% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Investment income per share reflects a special dividend which amounted to $.15 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .78%.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements 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, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 61.09 | $ 37.56 | $ 26.98 | $ 16.63 | $ 12.44 | $ 8.24 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .29 H | .28 | .49 | .36 | .20 | .10 |
Net realized and unrealized gain (loss) | .35 | 24.35 | 10.86 | 10.09 | 4.07 | 4.16 |
Total from investment operations | .64 | 24.63 | 11.35 | 10.45 | 4.27 | 4.26 |
Distributions from net investment income | (.24) | (.37) | (.28) | (.15) | (.09) | (.06) |
Distributions from net realized gain | (.95) | (.77) | (.55) | - | - | - |
Total distributions | (1.19) | (1.14) | (.83) | (.15) | (.09) | (.06) |
Redemption fees added to paid in capital E | .03 | .04 | .06 | .05 | .01 | - |
Net asset value, end of period | $ 60.57 | $ 61.09 | $ 37.56 | $ 26.98 | $ 16.63 | $ 12.44 |
Total Return B, C, D | 1.14% | 67.50% | 43.11% | 63.57% | 34.59% | 52.06% |
Ratios to Average Net Assets F, I | | | | | |
Expenses before
reductions | 1.71% A | 1.72% | 1.89% | 2.26% | 3.47% | 6.58% |
Expenses net of fee waivers, if any | 1.71% A | 1.72% | 1.75% | 1.82% | 2.27% | 2.27% |
Expenses net of all reductions | 1.70% A | 1.71% | 1.72% | 1.77% | 2.23% | 2.27% |
Net investment income (loss) | 1.02% A, H | .61% | 1.45% | 1.61% | 1.38% | .97% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 53,129 | $ 46,960 | $ 23,723 | $ 9,144 | $ 2,585 | $ 1,315 |
Portfolio turnover rate G | 32% A | 49% | 50% | 42% | 71% | 67% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Investment income per share reflects a special dividend which amounted to $.15 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .50%.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements 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, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 59.87 | $ 36.87 | $ 26.54 | $ 16.40 | $ 12.29 | $ 8.13 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .14 H | .05 | .31 | .24 | .13 | .05 |
Net realized and unrealized gain (loss) | .35 | 23.91 | 10.68 | 9.95 | 4.02 | 4.12 |
Total from investment operations | .49 | 23.96 | 10.99 | 10.19 | 4.15 | 4.17 |
Distributions from net investment income | - | (.22) | (.17) | (.10) | (.05) | (.01) |
Distributions from net realized gain | (.95) | (.77) | (.55) | - | - | - |
Total distributions | (.95) | (.99) | (.72) | (.10) | (.05) | (.01) |
Redemption fees added to paid in capital E | .02 | .03 | .06 | .05 | .01 | - |
Net asset value, end of period | $ 59.43 | $ 59.87 | $ 36.87 | $ 26.54 | $ 16.40 | $ 12.29 |
Total Return B, C, D | .89% | 66.68% | 42.36% | 62.73% | 33.95% | 51.35% |
Ratios to Average Net Assets F, I | | | | | |
Expenses before
reductions | 2.22% A | 2.22% | 2.42% | 2.73% | 3.67% | 6.80% |
Expenses net of fee waivers, if any | 2.22% A | 2.22% | 2.25% | 2.34% | 2.77% | 2.77% |
Expenses net of all reductions | 2.21% A | 2.20% | 2.22% | 2.28% | 2.73% | 2.77% |
Net investment income (loss) | .51% A, H | .11% | .95% | 1.10% | .88% | .47% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 33,800 | $ 32,143 | $ 17,402 | $ 8,998 | $ 3,222 | $ 1,513 |
Portfolio turnover rate G | 32% A | 49% | 50% | 42% | 71% | 67% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Investment income per share reflects a special dividend which amounted to $.14 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been - %.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements 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, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 59.63 | $ 36.74 | $ 26.48 | $ 16.35 | $ 12.25 | $ 8.11 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .15 H | .07 | .31 | .24 | .13 | .05 |
Net realized and unrealized gain (loss) | .35 | 23.80 | 10.65 | 9.94 | 4.01 | 4.10 |
Total from investment operations | .50 | 23.87 | 10.96 | 10.18 | 4.14 | 4.15 |
Distributions from net investment income | (.03) | (.24) | (.21) | (.10) | (.05) | (.01) |
Distributions from net realized gain | (.95) | (.77) | (.55) | - | - | - |
Total distributions | (.98) | (1.01) | (.76) | (.10) | (.05) | (.01) |
Redemption fees added to paid in capital E | .02 | .03 | .06 | .05 | .01 | - |
Net asset value, end of period | $ 59.17 | $ 59.63 | $ 36.74 | $ 26.48 | $ 16.35 | $ 12.25 |
Total Return B, C, D | .91% | 66.66% | 42.38% | 62.86% | 33.98% | 51.23% |
Ratios to Average Net Assets F, I | | | | | |
Expenses before
reductions | 2.18% A | 2.18% | 2.34% | 2.69% | 3.83% | 6.85% |
Expenses net of fee waivers, if any | 2.18% A | 2.18% | 2.25% | 2.32% | 2.77% | 2.77% |
Expenses net of all reductions | 2.17% A | 2.17% | 2.22% | 2.26% | 2.73% | 2.77% |
Net investment income (loss) | .55% A, H | .14% | .95% | 1.12% | .88% | .47% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 65,475 | $ 60,415 | $ 29,189 | $ 9,252 | $ 2,167 | $ 1,114 |
Portfolio turnover rate G | 32% A | 49% | 50% | 42% | 71% | 67% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Investment income per share reflects a special dividend which amounted to $.14 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .04%.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements 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, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 62.89 | $ 38.56 | $ 27.64 | $ 16.97 | $ 12.64 | $ 8.35 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .46 G | .58 | .66 | .46 | .28 | .14 |
Net realized and unrealized gain (loss) | .39 | 25.01 | 11.13 | 10.33 | 4.15 | 4.24 |
Total from investment operations | .85 | 25.59 | 11.79 | 10.79 | 4.43 | 4.38 |
Distributions from net investment income | (.55) | (.53) | (.38) | (.17) | (.11) | (.09) |
Distributions from net realized gain | (.95) | (.77) | (.55) | - | - | - |
Total distributions | (1.50) | (1.30) | (.93) | (.17) | (.11) | (.09) |
Redemption fees added to paid in capital D | .03 | .04 | .06 | .05 | .01 | - |
Net asset value, end of period | $ 62.27 | $ 62.89 | $ 38.56 | $ 27.64 | $ 16.97 | $ 12.64 |
Total Return B, C | 1.46% | 68.51% | 43.79% | 64.36% | 35.36% | 52.99% |
Ratios to Average Net Assets E, H | | | | | |
Expenses before
reductions | 1.14% A | 1.12% | 1.26% | 1.59% | 2.14% | 5.40% |
Expenses net of fee waivers, if any | 1.14% A | 1.12% | 1.25% | 1.36% | 1.77% | 1.77% |
Expenses net of all reductions | 1.12% A | 1.11% | 1.23% | 1.30% | 1.73% | 1.77% |
Net investment income (loss) | 1.59% A, G | 1.21% | 1.94% | 2.08% | 1.88% | 1.47% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 22,931 | $ 18,897 | $ 6,335 | $ 4,810 | $ 3,440 | $ 210 |
Portfolio turnover rate F | 32% A | 49% | 50% | 42% | 71% | 67% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Investment income per share reflects a special dividend which amounted to $.15 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been 1.08%.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements 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, 2008 (Unaudited)
1. Organization.
Fidelity Advisor Latin America Fund (the Fund) is a non-diversified 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.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
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. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued and net asset value (NAV) per share is calculated (NAV calculation) as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Debt securities, including restricted securities, for which quotations are readily available, are valued by independent pricing services or by dealers who make markets in such securities. Pricing services consider yield or price of bonds of comparable quality, coupon, maturity and type as well as available dealer supplied prices. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or do not accurately reflect fair value, valuations may be determined in accordance with procedures adopted by the Board of Trustees. For example, when developments occur between the close of a market and the close of the NYSE that may materially affect the value of some or all of the securities, or when trading in a security is halted, those securities may be fair valued. Factors used in the determination of fair value may include monitoring news to identify significant market or security specific events such as changes in the value of U.S. securities markets, reviewing developments in foreign markets and evaluating the performance of ADRs, futures contracts and exchange-traded funds. Because the Fund's utilization of fair value pricing depends on market activity, the frequency with which fair value pricing is used cannot be predicted and may be utilized to a significant extent. The value of securities used for NAV calculation under fair value pricing may differ from published prices for the same securities.
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.
Semiannual Report
3. Significant Accounting Policies - continued
Foreign Currency - continued
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. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV for processing shareholder transactions includes trades executed through the end of the prior business day. 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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. 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 each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not result in any unrecognized tax benefits in the accompanying financial statements. Each of the Fund's federal tax returns for the prior three fiscal years remains subject to examination by the Internal
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Revenue Service. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies(PFIC) and losses deferred due to wash sales.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 135,364,750 | |
Unrealized depreciation | (5,376,393) | |
Net unrealized appreciation (depreciation) | $ 129,988,357 | |
Cost for federal income tax purposes | $ 208,448,087 | |
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.
New Accounting Pronouncement. In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and results in expanded disclosures about fair value measurements.
4. Operating Policies.
Repurchase Agreements. 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 which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by
Semiannual Report
4. Operating Policies - continued
Repurchase Agreements - continued
government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
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 at the end of the Fund's Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $86,127,913 and $45,058,930, respectively.
6. 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 .26% 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 .71% 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. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan - continued
For the period, the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC |
Class A | 0% | .25% | $ 166,444 | $ 9,985 |
Class T | .25% | .25% | 113,908 | 1,334 |
Class B | .75% | .25% | 151,943 | 114,873 |
Class C | .75% | .25% | 286,999 | 88,760 |
| | | $ 719,294 | $ 214,952 |
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, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges 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, 1.00% to .50% for certain purchases of Class A shares and ..25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 130,978 |
Class T | 12,895 |
Class B* | 34,668 |
Class C* | 23,052 |
| $ 201,593 |
* 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 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 shareholder reports, except proxy statements.
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
For the period, the total transfer agent fees paid by each class to FIIOC were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 179,036 | .27 |
Class T | 67,890 | .30 |
Class B | 46,201 | .30 |
Class C | 78,022 | .27 |
Institutional Class | 21,026 | .22 |
| $ 392,175 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
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 were $76 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $4.2 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, which amounted to $271 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
8. Security Lending - continued
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. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $25,301.
9. 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 included payments of certain expenses on behalf of the Fund totaling $15,590 for the period. 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. During the period, these credits reduced the Fund's custody expenses by $1,412. During the period, credits reduced each class' transfer agent expense as noted in the table below:
| Transfer Agent
expense reduction | |
Class C | $ 1,792 | |
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
In December 2006, the Independent Trustees, with the assistance of independent counsel, completed an investigation regarding gifts, gratuities and business entertainment provided by certain brokers to certain individuals who were employed on FMR's domestic equity trading desk during the period 2002 to 2004. The Independent Trustees and FMR agreed that, despite the absence of proof that the Fidelity mutual funds experienced diminished execution quality as a result of the improper receipt of gifts and
Semiannual Report
10. Other - continued
business entertainment, the conduct at issue was serious and was worthy of redress. Accordingly, the Independent Trustees requested, and FMR agreed to make, a payment of $42 million plus accrued interest, which equaled approximately $7.3 million, to certain Fidelity mutual funds.
In March 2008, the Trustees approved a method for allocating this payment among the funds and, in total, FMR paid the fund $16, which is recorded in the accompanying Statement of Operations.
In a related administrative order dated March 5, 2008, the U.S. Securities and Exchange Commission ("SEC") announced a settlement with FMR and FMR Co., Inc. (an affiliate of FMR) involving the SEC's regulatory rules for investment advisers and the improper receipt of gifts, gratuities and business entertainment. Without admitting or denying the SEC's findings, FMR agreed to pay an $8 million civil penalty to the United States Treasury.
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30,
2008 | Year ended
October 31,
2007 |
From net investment income | | |
Class A | $ 858,891 | $ 709,973 |
Class T | 187,433 | 240,940 |
Class B | - | 107,563 |
Class C | 31,775 | 191,630 |
Institutional Class | 173,418 | 88,607 |
Total | $ 1,251,517 | $ 1,338,713 |
From net realized gain | | |
Class A | $ 2,092,170 | $ 1,198,858 |
Class T | 742,575 | 501,417 |
Class B | 516,624 | 369,748 |
Class C | 973,746 | 627,893 |
Institutional Class | 300,673 | 129,464 |
Total | $ 4,625,788 | $ 2,827,380 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
April 30,
2008 | Year ended
October 31,
2007 | Six months ended
April 30,
2008 | Year ended
October 31,
2007 |
Class A | | | | |
Shares sold | 899,336 | 1,393,391 | $ 51,368,052 | $ 65,803,104 |
Reinvestment of distributions | 44,762 | 43,952 | 2,663,760 | 1,688,203 |
Shares redeemed | (452,806) | (782,832) | (24,772,705) | (35,128,744) |
Net increase (decrease) | 491,292 | 654,511 | $ 29,259,107 | $ 32,362,563 |
Class T | | | | |
Shares sold | 231,561 | 455,916 | $ 13,159,603 | $ 21,240,936 |
Reinvestment of distributions | 15,156 | 18,830 | 896,344 | 718,933 |
Shares redeemed | (138,395) | (337,584) | (7,421,152) | (15,355,363) |
Net increase (decrease) | 108,322 | 137,162 | $ 6,634,795 | $ 6,604,506 |
Class B | | | | |
Shares sold | 121,599 | 237,976 | $ 6,724,307 | $ 10,853,846 |
Reinvestment of distributions | 8,122 | 11,564 | 472,231 | 434,710 |
Shares redeemed | (97,922) | (184,610) | (5,243,610) | (7,992,057) |
Net increase (decrease) | 31,799 | 64,930 | $ 1,952,928 | $ 3,296,499 |
Class C | | | | |
Shares sold | 272,897 | 583,666 | $ 15,221,372 | $ 27,131,346 |
Reinvestment of distributions | 14,808 | 19,005 | 856,926 | 711,556 |
Shares redeemed | (194,315) | (384,050) | (10,236,971) | (16,675,013) |
Net increase (decrease) | 93,390 | 218,621 | $ 5,841,327 | $ 11,167,889 |
Institutional Class | | | | |
Shares sold | 191,546 | 223,683 | $ 11,371,346 | $ 11,037,917 |
Reinvestment of distributions | 5,442 | 3,561 | 330,045 | 139,192 |
Shares redeemed | (129,197) | (91,047) | (7,017,382) | (4,496,421) |
Net increase (decrease) | 67,791 | 136,197 | $ 4,684,009 | $ 6,680,688 |
Semiannual Report
A special meeting of the fund's shareholders was held on May 14, 2008. The results of votes taken among shareholders on the proposals before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1 |
To elect a Board of Trustees.A |
| # of
Votes | % of
Votes |
James C. Curvey |
Affirmative | 8,514,961,004.35 | 97.348 |
Withheld | 231,994,591.94 | 2.652 |
TOTAL | 8,746,955,596.29 | 100.000 |
Dennis J. Dirks |
Affirmative | 8,525,899,114.46 | 97.473 |
Withheld | 221,056,481.83 | 2.527 |
TOTAL | 8,746,955,596.29 | 100.000 |
Edward C. Johnson 3d |
Affirmative | 8,497,196,105.85 | 97.145 |
Withheld | 249,759,490.44 | 2.855 |
TOTAL | 8,746,955,596.29 | 100.000 |
Alan J. Lacy |
Affirmative | 8,522,858,760.40 | 97.438 |
Withheld | 224,096,835.89 | 2.562 |
TOTAL | 8,746,955,596.29 | 100.000 |
Ned C. Lautenbach |
Affirmative | 8,523,008,335.52 | 97.440 |
Withheld | 223,947,260.77 | 2.560 |
TOTAL | 8,746,955,596.29 | 100.000 |
Joseph Mauriello |
Affirmative | 8,524,890,199.58 | 97.461 |
Withheld | 222,065,396.71 | 2.539 |
TOTAL | 8,746,955,596.29 | 100.000 |
Cornelia M. Small |
Affirmative | 8,525,649,323.51 | 97.470 |
Withheld | 221,306,272.78 | 2.530 |
TOTAL | 8,746,955,596.29 | 100.000 |
William S. Stavropoulos |
Affirmative | 8,514,682,431.03 | 97.345 |
Withheld | 232,273,165.26 | 2.655 |
TOTAL | 8,746,955,596.29 | 100.000 |
David M. Thomas |
Affirmative | 8,526,972,729.02 | 97.485 |
Withheld | 219,982,867.27 | 2.515 |
TOTAL | 8,746,955,596.29 | 100.000 |
Michael E. Wiley |
Affirmative | 8,523,710,850.33 | 97.448 |
Withheld | 223,244,745.96 | 2.552 |
TOTAL | 8,746,955,596.29 | 100.000 |
PROPOSAL 2 |
To amend the Declaration of Trust of Fidelity Advisor Series VIII to reduce the required quorum for future shareholder meetings.A |
| # of
Votes | % of
Votes |
Affirmative | 4,574,398,791.46 | 52.297 |
Against | 2,140,778,913.08 | 24.475 |
Abstain | 230,752,610.67 | 2.638 |
Broker
Non-Votes | 1,801,025,281.08 | 20.590 |
TOTAL | 8,746,955,596.29 | 100.000 |
A Denotes trust-wide proposal and voting results.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Research & Analysis Company
Fidelity International
Investment Advisors
Fidelity Investments Japan Limited
Fidelity International Investment Advisors (U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
State Street Bank and Trust Company
Quincy, MA
ALAF-USAN-0608 1.784896.105
(Fidelity Investment logo)(registered trademark)
Fidelity® Advisor
Latin America
Fund - Institutional Class
Semiannual Report
April 30, 2008
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | Ned Johnson's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
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. |
Proxy Voting Results | <Click Here> | |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
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 LLC or an affiliated company.
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.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
Continuation of a credit squeeze, flat consumer spending and a potential recession weighed heavily on stocks in the opening months of 2008, though positive results in investment-grade bonds and money markets offered some comfort to investors. Financial markets are always unpredictable, but there are a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 1, 2007 to April 30, 2008).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Semiannual Report
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Beginning
Account Value
November 1, 2007 | Ending
Account Value
April 30, 2008 | Expenses Paid
During Period*
November 1, 2007 to
April 30, 2008 |
Class A | | | |
Actual | $ 1,000.00 | $ 1,012.90 | $ 7.16 |
HypotheticalA | $ 1,000.00 | $ 1,017.75 | $ 7.17 |
Class T | | | |
Actual | $ 1,000.00 | $ 1,011.40 | $ 8.55 |
HypotheticalA | $ 1,000.00 | $ 1,016.36 | $ 8.57 |
Class B | | | |
Actual | $ 1,000.00 | $ 1,008.90 | $ 11.09 |
HypotheticalA | $ 1,000.00 | $ 1,013.82 | $ 11.12 |
Class C | | | |
Actual | $ 1,000.00 | $ 1,009.10 | $ 10.89 |
HypotheticalA | $ 1,000.00 | $ 1,014.02 | $ 10.92 |
Institutional Class | | | |
Actual | $ 1,000.00 | $ 1,014.60 | $ 5.71 |
HypotheticalA | $ 1,000.00 | $ 1,019.19 | $ 5.72 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
| Annualized
Expense Ratio |
Class A | 1.43% |
Class T | 1.71% |
Class B | 2.22% |
Class C | 2.18% |
Institutional Class | 1.14% |
Semiannual Report
Investment Changes (Unaudited)
Top Five Stocks as of April 30, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Petroleo Brasileiro SA - Petrobras | 18.6 | 15.6 |
Companhia Vale do Rio Doce | 14.1 | 15.0 |
America Movil SAB de CV | 7.1 | 8.9 |
Banco Bradesco SA | 4.2 | 4.5 |
Usinas Siderurgicas de Minas Gerais SA - Usiminas | 3.4 | 2.7 |
| 47.4 | |
Top Five Market Sectors as of April 30, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Materials | 29.0 | 26.4 |
Energy | 20.6 | 16.6 |
Financials | 14.8 | 16.2 |
Telecommunication Services | 11.1 | 13.0 |
Consumer Discretionary | 8.3 | 7.9 |
Top Five Countries as of April 30, 2008 |
(excluding cash equivalents) | % of fund's
net assets | % of fund's net assets
6 months ago |
Brazil | 67.9 | 64.6 |
Mexico | 19.5 | 21.4 |
Luxembourg | 2.5 | 1.0 |
Chile | 2.0 | 4.0 |
Bermuda | 1.7 | 1.7 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) |
As of April 30, 2008 | As of October 31, 2007 |
| Stocks 95.7% | | | Stocks 96.1% | |
| Short-Term
Investments and
Net Other Assets 4.3% | | | Short-Term
Investments and
Net Other Assets 3.9% | |
Semiannual Report
Investments April 30, 2008 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 90.4% |
| Shares | | Value |
Argentina - 0.3% |
Banco Patagonia SA unit | 19,900 | | $ 353,177 |
Grupo Clarin SA GDR (f) | 41,600 | | 499,200 |
TOTAL ARGENTINA | | 852,377 |
Bermuda - 1.7% |
Credicorp Ltd. (NY Shares) | 32,100 | | 2,579,556 |
Dufry South America Ltd. unit | 111,249 | | 2,238,767 |
GP Investments, Ltd. unit | 72,465 | | 697,533 |
Laep Investments Ltd. unit | 77,199 | | 261,943 |
TOTAL BERMUDA | | 5,777,799 |
Brazil - 62.6% |
Acucar Guarani SA | 97,500 | | 571,321 |
AES Tiete SA (PN) (non-vtg.) | 136,145 | | 1,228,598 |
All America Latina Logistica SA unit | 130,100 | | 1,698,454 |
Aracruz Celulose SA (PN-B) sponsored ADR (non-vtg.) | 4,100 | | 330,460 |
B2W Companhia Global Do Varejo | 45,300 | | 1,501,642 |
Banco ABC Brasil SA | 64,190 | | 386,175 |
Banco Bradesco SA: | | | |
(PN) | 189,484 | | 4,388,843 |
(PN) sponsored ADR | 426,300 | | 9,625,854 |
Banco Daycoval SA (PN) | 139,100 | | 1,046,053 |
Banco do Brasil SA | 342,300 | | 5,930,839 |
Banco do Estado do Rio Grande do Sul SA (f) | 117,053 | | 725,331 |
Banco Indusval SA | 28,760 | | 276,838 |
Banco Itau Holding Financeira SA sponsored ADR (non-vtg.) | 90,500 | | 2,538,525 |
Bolsa de Mercadorias & Futuros - BM&F SA | 19,800 | | 201,312 |
Bovespa Holding SA | 6,000 | | 91,144 |
Brasil Telecom Participacoes SA sponsored ADR | 25,140 | | 1,900,835 |
Brasil Telecom SA (PN) | 59,200 | | 712,309 |
Companhia Brasileira de Desenvolvimento Imobiliario Turistico | 1,700 | | 746,601 |
Companhia de Bebidas das Americas (AmBev): | | | |
(PN) sponsored ADR | 73,800 | | 5,409,540 |
sponsored ADR | 3,260 | | 211,867 |
Companhia de Saneamento de Minas Gerais | 71,400 | | 1,185,561 |
Companhia Providencia Industria e Comercio | 61,900 | | 249,507 |
Companhia Siderurgica Nacional SA (CSN) sponsored ADR | 148,300 | | 6,399,145 |
Companhia Vale do Rio Doce: | | | |
(PN-A) sponsored ADR | 833,200 | | 26,529,088 |
sponsored ADR | 477,300 | | 18,652,884 |
Construtora Tenda SA | 153,100 | | 810,540 |
Duratex SA (PN) | 109,800 | | 2,271,701 |
Common Stocks - continued |
| Shares | | Value |
Brazil - continued |
Eletropaulo Metropolitana SA (PN-B) | 64,760 | | $ 1,450,496 |
Equatorial Energia SA | 73,000 | | 711,028 |
Gerdau SA sponsored ADR | 129,100 | | 5,000,043 |
GVT Holding SA (a) | 196,600 | | 4,778,390 |
Localiza Rent a Car SA | 113,800 | | 1,485,658 |
Metalurgica Gerdau SA (PN) | 13,000 | | 685,116 |
MMX Mineracao e Metalicos SA (a) | 59,800 | | 2,007,484 |
MPX Mineracao e Energia SA | 1,900 | | 1,105,342 |
MRV Engenharia e Participacoes SA | 103,900 | | 2,094,002 |
Multiplan Empreendimentos Imobiliarios SA | 71,000 | | 897,004 |
Net Servicos de Comunicacao SA: | | | |
sponsored ADR | 7,500 | | 102,375 |
(PN) (a) | 260,100 | | 3,559,906 |
PDG Realty S.A. Empreendimentos e Participacoes | 52,100 | | 763,226 |
Petroleo Brasileiro SA - Petrobras: | | | |
(ON) | 19,800 | | 608,818 |
(PN) (non-vtg.) | 357,800 | | 9,157,028 |
(PN) sponsored ADR (non-vtg.) | 252,100 | | 25,487,310 |
sponsored ADR | 224,000 | | 27,198,081 |
Profarma Distribuidora de Produtos Farmaceuticos SA (a) | 58,100 | | 1,041,620 |
Rossi Residencial SA | 61,400 | | 631,657 |
Sao Carlos Empreen E Part SA (a) | 40,400 | | 340,272 |
Satipel Industrial SA | 61,000 | | 392,672 |
Tegma Gestao Logistica | 106,700 | | 1,142,618 |
Tele Norte Leste Participacoes SA | 35,200 | | 1,060,955 |
Tele Norte Leste Participacoes SA sponsored ADR (non-vtg.) | 28,600 | | 655,226 |
Terna Participacoes SA unit | 75,000 | | 1,353,177 |
TIM Participacoes SA | 83,300 | | 282,645 |
TIM Participacoes SA sponsored ADR (non-vtg.) | 50,200 | | 1,685,716 |
Totvs SA | 65,800 | | 2,177,235 |
Tractebel Energia SA | 92,300 | | 1,295,487 |
Uniao de Bancos Brasileiros SA (Unibanco): | | | |
unit | 21,700 | | 323,764 |
GDR | 56,600 | | 8,230,206 |
Usinas Siderurgicas de Minas Gerais SA - Usiminas | 28,650 | | 1,417,849 |
Vivo Participacoes SA: | | | |
(PN) | 25,800 | | 183,155 |
(PN) sponsored ADR | 225,100 | | 1,519,425 |
Votorantim Celulose e Papel SA: | | | |
(PN) (non-vtg.) | 4,980 | | 158,190 |
sponsored ADR (non-vtg.) | 127,950 | | 4,067,531 |
TOTAL BRAZIL | | 210,671,674 |
Common Stocks - continued |
| Shares | | Value |
Chile - 2.0% |
CAP SA | 134,342 | | $ 4,476,614 |
Lan Airlines SA sponsored ADR | 107,100 | | 1,416,933 |
Sociedad Quimica y Minera de Chile SA (SQM) (PN-B) sponsored ADR | 10,900 | | 310,759 |
Vina Concha y Toro SA sponsored ADR | 13,985 | | 562,896 |
TOTAL CHILE | | 6,767,202 |
Colombia - 0.3% |
Almacenes Exito SA unit (f) | 146,700 | | 1,147,073 |
Luxembourg - 2.5% |
Tenaris SA sponsored ADR | 125,000 | | 6,626,250 |
Ternium SA sponsored ADR | 53,400 | | 1,862,592 |
TOTAL LUXEMBOURG | | 8,488,842 |
Mexico - 19.5% |
Alsea SAB de CV | 968,500 | | 1,277,021 |
America Movil SAB de CV Series L sponsored ADR | 412,100 | | 23,885,316 |
Banco Compartamos SA de CV | 195,200 | | 819,975 |
Cemex SA de CV sponsored ADR | 109,667 | | 3,032,293 |
Controladora Commercial Mexicana SA unit | 290,827 | | 821,566 |
Corporacion Geo SA de CV Series B (a) | 765,600 | | 2,859,846 |
Desarrolladora Homex Sab de CV (a) | 51,900 | | 516,538 |
Desarrolladora Homex Sab de CV sponsored ADR (a)(e) | 26,700 | | 1,590,786 |
Empresas ICA Sociedad Controladora SA de CV (a) | 228,500 | | 1,383,581 |
Fomento Economico Mexicano SA de CV sponsored ADR | 90,763 | | 3,943,652 |
Grupo Aeroportuario del Pacifico SA de CV sponsored ADR | 36,200 | | 1,479,494 |
Grupo Aeroportuario Norte Sab de CV ADR | 30,653 | | 666,703 |
Grupo Mexico SA de CV Series B | 638,881 | | 4,670,052 |
Grupo Televisa SA de CV | 73,000 | | 360,102 |
Grupo Televisa SA de CV (CPO) sponsored ADR | 348,056 | | 8,590,022 |
Industrias Penoles SA de CV | 101,200 | | 2,981,848 |
Megacable Holdings SAB de CV unit | 313,800 | | 924,459 |
Urbi, Desarrollos Urbanos, SA de CV (a) | 693,400 | | 2,221,921 |
Wal-Mart de Mexico SA de CV Series V | 852,869 | | 3,450,913 |
TOTAL MEXICO | | 65,476,088 |
Panama - 0.6% |
Copa Holdings SA Class A | 26,100 | | 1,020,249 |
Intergroup Financial Services Corp. | 43,091 | | 896,293 |
Intergroup Financial Services Corp. (f) | 11,123 | | 231,358 |
TOTAL PANAMA | | 2,147,900 |
Common Stocks - continued |
| Shares | | Value |
United States of America - 0.9% |
Freeport-McMoRan Copper & Gold, Inc. Class B | 25,600 | | $ 2,912,000 |
TOTAL COMMON STOCKS (Cost $185,096,377) | 304,240,955 |
Nonconvertible Preferred Stocks - 5.3% |
| | | |
Brazil - 5.3% |
Banco Itau Holding Financeira SA (non-vtg.) | 182,880 | | 5,297,601 |
Brasil Telecom Participacoes SA (PN) | 19,500 | | 299,738 |
Companhia Vale do Rio Doce (PN-A) | 76,000 | | 2,452,557 |
Usinas Siderurgicas de Minas Gerais SA - Usiminas (PN-A) (non-vtg.) | 208,200 | | 10,007,929 |
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $5,703,825) | 18,057,825 |
Convertible Bonds - 0.0% |
| Principal Amount (d) | | |
Brazil - 0.0% |
Companhia de Saneamento de Minas Gerais 2.3% 6/1/13 (g)
(Cost $43,358) | BRL | $ 691 | | 45,895 |
Money Market Funds - 4.8% |
| Shares | | |
Fidelity Cash Central Fund, 2.51% (b) | 15,070,869 | | 15,070,869 |
Fidelity Securities Lending Cash Central Fund, 2.44% (b)(c) | 1,020,900 | | 1,020,900 |
TOTAL MONEY MARKET FUNDS (Cost $16,091,769) | 16,091,769 |
TOTAL INVESTMENT PORTFOLIO - 100.5% (Cost $206,935,329) | | 338,436,444 |
NET OTHER ASSETS - (0.5)% | | (1,831,226) |
NET ASSETS - 100% | $ 336,605,218 |
Currency Abbreviations |
BRL | - | Brazilian real |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Principal amount is stated in United States dollars unless otherwise noted. |
(e) Security or a portion of the security is on loan at period end. |
(f) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $2,602,962 or 0.8% of net assets. |
(g) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $45,895 or 0.0% of net assets. |
Additional information on each holding is as follows: |
Security | Acquisition Date | Acquisition Cost |
Companhia de Saneamento de Minas Gerais 2.3% 6/1/13 | 8/20/07 | $ 43,358 |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 168,658 |
Fidelity Securities Lending Cash Central Fund | 25,301 |
Total | $ 193,959 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| April 30, 2008 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $977,112) - See accompanying schedule: Unaffiliated issuers (cost $190,843,560) | $ 322,344,675 | |
Fidelity Central Funds (cost $16,091,769) | 16,091,769 | |
Total Investments (cost $206,935,329) | | $ 338,436,444 |
Cash | | 366,457 |
Foreign currency held at value (cost $349) | | 355 |
Receivable for investments sold | | 1,001,206 |
Receivable for fund shares sold | | 1,343,305 |
Dividends receivable | | 1,420,657 |
Interest receivable | | 7 |
Distributions receivable from Fidelity Central Funds | | 34,345 |
Prepaid expenses | | 542 |
Other receivables | | 8,316 |
Total assets | | 342,611,634 |
| | |
Liabilities | | |
Payable for investments purchased | $ 4,254,121 | |
Payable for fund shares redeemed | 290,381 | |
Accrued management fee | 187,454 | |
Distribution fees payable | 131,300 | |
Other affiliated payables | 80,027 | |
Other payables and accrued expenses | 42,233 | |
Collateral on securities loaned, at value | 1,020,900 | |
Total liabilities | | 6,006,416 |
| | |
Net Assets | | $ 336,605,218 |
Net Assets consist of: | | |
Paid in capital | | $ 205,972,686 |
Undistributed net investment income | | 886,888 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (1,742,889) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 131,488,533 |
Net Assets | | $ 336,605,218 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
| April 30, 2008 (Unaudited) |
| | |
Calculation of Maximum Offering Price
Class A:
Net Asset Value and redemption price per share ($161,269,733 ÷ 2,642,710 shares) | | $ 61.02 |
| | |
Maximum offering price per share (100/94.25 of $61.02) | | $ 64.74 |
Class T:
Net Asset Value and redemption price per share ($53,128,880 ÷ 877,077 shares) | | $ 60.57 |
| | |
Maximum offering price per share (100/96.50 of $60.57) | | $ 62.77 |
Class B:
Net Asset Value and offering price per share ($33,800,180 ÷ 568,693 shares)A | | $ 59.43 |
| | |
Class C:
Net Asset Value and offering price per share ($65,474,955 ÷ 1,106,591 shares)A | | $ 59.17 |
| | |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($22,931,470 ÷ 368,264 shares) | | $ 62.27 |
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
Financial Statements - continued
Statement of Operations
Six months ended April 30, 2008 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 3,196,118 |
Special dividends | | 738,403 |
Interest | | 10,187 |
Income from Fidelity Central Funds | | 193,959 |
| | 4,138,667 |
Less foreign taxes withheld | | (255,328) |
Total income | | 3,883,339 |
| | |
Expenses | | |
Management fee | $ 1,008,770 | |
Transfer agent fees | 392,175 | |
Distribution fees | 719,294 | |
Accounting and security lending fees | 77,433 | |
Custodian fees and expenses | 95,252 | |
Independent trustees' compensation | 574 | |
Registration fees | 64,503 | |
Audit | 25,222 | |
Legal | 424 | |
Miscellaneous | 32,812 | |
Total expenses before reductions | 2,416,459 | |
Expense reductions | (18,794) | 2,397,665 |
Net investment income (loss) | | 1,485,674 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (121,395) | |
Foreign currency transactions | (32,377) | |
Total net realized gain (loss) | | (153,772) |
Change in net unrealized appreciation (depreciation) on: Investment securities | 1,723,262 | |
Assets and liabilities in foreign currencies | (11,168) | |
Total change in net unrealized appreciation (depreciation) | | 1,712,094 |
Net gain (loss) | | 1,558,322 |
Net increase (decrease) in net assets resulting from operations | | $ 3,043,996 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended April 30, 2008
(Unaudited) | Year ended
October 31,
2007 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 1,485,674 | $ 1,188,565 |
Net realized gain (loss) | (153,772) | 5,028,865 |
Change in net unrealized appreciation (depreciation) | 1,712,094 | 95,314,077 |
Net increase (decrease) in net assets resulting
from operations | 3,043,996 | 101,531,507 |
Distributions to shareholders from net investment income | (1,251,517) | (1,338,713) |
Distributions to shareholders from net realized gain | (4,625,788) | (2,827,380) |
Total distributions | (5,877,305) | (4,166,093) |
Share transactions - net increase (decrease) | 48,372,166 | 60,112,145 |
Redemption fees | 128,811 | 149,278 |
Total increase (decrease) in net assets | 45,667,668 | 157,626,837 |
| | |
Net Assets | | |
Beginning of period | 290,937,550 | 133,310,713 |
End of period (including undistributed net investment income of $886,888 and undistributed net investment income of $787,106, respectively) | $ 336,605,218 | $ 290,937,550 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
April 30, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 61.60 | $ 37.85 | $ 27.16 | $ 16.72 | $ 12.49 | $ 8.29 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .37 H | .42 | .58 | .42 | .24 | .12 |
Net realized and unrealized gain (loss) | .36 | 24.52 | 10.94 | 10.14 | 4.09 | 4.17 |
Total from investment operations | .73 | 24.94 | 11.52 | 10.56 | 4.33 | 4.29 |
Distributions from net investment income | (.39) | (.46) | (.34) | (.17) | (.11) | (.09) |
Distributions from net realized gain | (.95) | (.77) | (.55) | - | - | - |
Total distributions | (1.34) | (1.23) | (.89) | (.17) | (.11) | (.09) |
Redemption fees added to paid in capital E | .03 | .04 | .06 | .05 | .01 | - |
Net asset value, end of period | $ 61.02 | $ 61.60 | $ 37.85 | $ 27.16 | $ 16.72 | $ 12.49 |
Total Return B, C, D | 1.29% | 67.94% | 43.54% | 63.94% | 34.98% | 52.29% |
Ratios to Average Net Assets F, I | | | | | |
Expenses before
reductions | 1.43% A | 1.45% | 1.62% | 1.93% | 3.07% | 5.92% |
Expenses net of fee waivers, if any | 1.43% A | 1.45% | 1.50% | 1.56% | 2.02% | 2.02% |
Expenses net of all reductions | 1.42% A | 1.43% | 1.47% | 1.50% | 1.98% | 2.02% |
Net investment income (loss) | 1.30% A, H | .88% | 1.70% | 1.88% | 1.63% | 1.22% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 161,270 | $ 132,524 | $ 56,662 | $ 13,736 | $ 1,954 | $ 918 |
Portfolio turnover rate G | 32% A | 49% | 50% | 42% | 71% | 67% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Investment income per share reflects a special dividend which amounted to $.15 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .78%.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements 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, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 61.09 | $ 37.56 | $ 26.98 | $ 16.63 | $ 12.44 | $ 8.24 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .29 H | .28 | .49 | .36 | .20 | .10 |
Net realized and unrealized gain (loss) | .35 | 24.35 | 10.86 | 10.09 | 4.07 | 4.16 |
Total from investment operations | .64 | 24.63 | 11.35 | 10.45 | 4.27 | 4.26 |
Distributions from net investment income | (.24) | (.37) | (.28) | (.15) | (.09) | (.06) |
Distributions from net realized gain | (.95) | (.77) | (.55) | - | - | - |
Total distributions | (1.19) | (1.14) | (.83) | (.15) | (.09) | (.06) |
Redemption fees added to paid in capital E | .03 | .04 | .06 | .05 | .01 | - |
Net asset value, end of period | $ 60.57 | $ 61.09 | $ 37.56 | $ 26.98 | $ 16.63 | $ 12.44 |
Total Return B, C, D | 1.14% | 67.50% | 43.11% | 63.57% | 34.59% | 52.06% |
Ratios to Average Net Assets F, I | | | | | |
Expenses before
reductions | 1.71% A | 1.72% | 1.89% | 2.26% | 3.47% | 6.58% |
Expenses net of fee waivers, if any | 1.71% A | 1.72% | 1.75% | 1.82% | 2.27% | 2.27% |
Expenses net of all reductions | 1.70% A | 1.71% | 1.72% | 1.77% | 2.23% | 2.27% |
Net investment income (loss) | 1.02% A, H | .61% | 1.45% | 1.61% | 1.38% | .97% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 53,129 | $ 46,960 | $ 23,723 | $ 9,144 | $ 2,585 | $ 1,315 |
Portfolio turnover rate G | 32% A | 49% | 50% | 42% | 71% | 67% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Investment income per share reflects a special dividend which amounted to $.15 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .50%.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements 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, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 59.87 | $ 36.87 | $ 26.54 | $ 16.40 | $ 12.29 | $ 8.13 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .14 H | .05 | .31 | .24 | .13 | .05 |
Net realized and unrealized gain (loss) | .35 | 23.91 | 10.68 | 9.95 | 4.02 | 4.12 |
Total from investment operations | .49 | 23.96 | 10.99 | 10.19 | 4.15 | 4.17 |
Distributions from net investment income | - | (.22) | (.17) | (.10) | (.05) | (.01) |
Distributions from net realized gain | (.95) | (.77) | (.55) | - | - | - |
Total distributions | (.95) | (.99) | (.72) | (.10) | (.05) | (.01) |
Redemption fees added to paid in capital E | .02 | .03 | .06 | .05 | .01 | - |
Net asset value, end of period | $ 59.43 | $ 59.87 | $ 36.87 | $ 26.54 | $ 16.40 | $ 12.29 |
Total Return B, C, D | .89% | 66.68% | 42.36% | 62.73% | 33.95% | 51.35% |
Ratios to Average Net Assets F, I | | | | | |
Expenses before
reductions | 2.22% A | 2.22% | 2.42% | 2.73% | 3.67% | 6.80% |
Expenses net of fee waivers, if any | 2.22% A | 2.22% | 2.25% | 2.34% | 2.77% | 2.77% |
Expenses net of all reductions | 2.21% A | 2.20% | 2.22% | 2.28% | 2.73% | 2.77% |
Net investment income (loss) | .51% A, H | .11% | .95% | 1.10% | .88% | .47% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 33,800 | $ 32,143 | $ 17,402 | $ 8,998 | $ 3,222 | $ 1,513 |
Portfolio turnover rate G | 32% A | 49% | 50% | 42% | 71% | 67% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Investment income per share reflects a special dividend which amounted to $.14 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been - %.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements 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, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 59.63 | $ 36.74 | $ 26.48 | $ 16.35 | $ 12.25 | $ 8.11 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .15 H | .07 | .31 | .24 | .13 | .05 |
Net realized and unrealized gain (loss) | .35 | 23.80 | 10.65 | 9.94 | 4.01 | 4.10 |
Total from investment operations | .50 | 23.87 | 10.96 | 10.18 | 4.14 | 4.15 |
Distributions from net investment income | (.03) | (.24) | (.21) | (.10) | (.05) | (.01) |
Distributions from net realized gain | (.95) | (.77) | (.55) | - | - | - |
Total distributions | (.98) | (1.01) | (.76) | (.10) | (.05) | (.01) |
Redemption fees added to paid in capital E | .02 | .03 | .06 | .05 | .01 | - |
Net asset value, end of period | $ 59.17 | $ 59.63 | $ 36.74 | $ 26.48 | $ 16.35 | $ 12.25 |
Total Return B, C, D | .91% | 66.66% | 42.38% | 62.86% | 33.98% | 51.23% |
Ratios to Average Net Assets F, I | | | | | |
Expenses before
reductions | 2.18% A | 2.18% | 2.34% | 2.69% | 3.83% | 6.85% |
Expenses net of fee waivers, if any | 2.18% A | 2.18% | 2.25% | 2.32% | 2.77% | 2.77% |
Expenses net of all reductions | 2.17% A | 2.17% | 2.22% | 2.26% | 2.73% | 2.77% |
Net investment income (loss) | .55% A, H | .14% | .95% | 1.12% | .88% | .47% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 65,475 | $ 60,415 | $ 29,189 | $ 9,252 | $ 2,167 | $ 1,114 |
Portfolio turnover rate G | 32% A | 49% | 50% | 42% | 71% | 67% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Investment income per share reflects a special dividend which amounted to $.14 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .04%.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements 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, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 62.89 | $ 38.56 | $ 27.64 | $ 16.97 | $ 12.64 | $ 8.35 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .46 G | .58 | .66 | .46 | .28 | .14 |
Net realized and unrealized gain (loss) | .39 | 25.01 | 11.13 | 10.33 | 4.15 | 4.24 |
Total from investment operations | .85 | 25.59 | 11.79 | 10.79 | 4.43 | 4.38 |
Distributions from net investment income | (.55) | (.53) | (.38) | (.17) | (.11) | (.09) |
Distributions from net realized gain | (.95) | (.77) | (.55) | - | - | - |
Total distributions | (1.50) | (1.30) | (.93) | (.17) | (.11) | (.09) |
Redemption fees added to paid in capital D | .03 | .04 | .06 | .05 | .01 | - |
Net asset value, end of period | $ 62.27 | $ 62.89 | $ 38.56 | $ 27.64 | $ 16.97 | $ 12.64 |
Total Return B, C | 1.46% | 68.51% | 43.79% | 64.36% | 35.36% | 52.99% |
Ratios to Average Net Assets E, H | | | | | |
Expenses before
reductions | 1.14% A | 1.12% | 1.26% | 1.59% | 2.14% | 5.40% |
Expenses net of fee waivers, if any | 1.14% A | 1.12% | 1.25% | 1.36% | 1.77% | 1.77% |
Expenses net of all reductions | 1.12% A | 1.11% | 1.23% | 1.30% | 1.73% | 1.77% |
Net investment income (loss) | 1.59% A, G | 1.21% | 1.94% | 2.08% | 1.88% | 1.47% |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 22,931 | $ 18,897 | $ 6,335 | $ 4,810 | $ 3,440 | $ 210 |
Portfolio turnover rate F | 32% A | 49% | 50% | 42% | 71% | 67% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Investment income per share reflects a special dividend which amounted to $.15 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been 1.08%.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements 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, 2008 (Unaudited)
1. Organization.
Fidelity Advisor Latin America Fund (the Fund) is a non-diversified 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.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
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. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued and net asset value (NAV) per share is calculated (NAV calculation) as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Debt securities, including restricted securities, for which quotations are readily available, are valued by independent pricing services or by dealers who make markets in such securities. Pricing services consider yield or price of bonds of comparable quality, coupon, maturity and type as well as available dealer supplied prices. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or do not accurately reflect fair value, valuations may be determined in accordance with procedures adopted by the Board of Trustees. For example, when developments occur between the close of a market and the close of the NYSE that may materially affect the value of some or all of the securities, or when trading in a security is halted, those securities may be fair valued. Factors used in the determination of fair value may include monitoring news to identify significant market or security specific events such as changes in the value of U.S. securities markets, reviewing developments in foreign markets and evaluating the performance of ADRs, futures contracts and exchange-traded funds. Because the Fund's utilization of fair value pricing depends on market activity, the frequency with which fair value pricing is used cannot be predicted and may be utilized to a significant extent. The value of securities used for NAV calculation under fair value pricing may differ from published prices for the same securities.
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.
Semiannual Report
3. Significant Accounting Policies - continued
Foreign Currency - continued
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. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV for processing shareholder transactions includes trades executed through the end of the prior business day. 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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. 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 each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not result in any unrecognized tax benefits in the accompanying financial statements. Each of the Fund's federal tax returns for the prior three fiscal years remains subject to examination by the Internal
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Revenue Service. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies(PFIC) and losses deferred due to wash sales.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 135,364,750 | |
Unrealized depreciation | (5,376,393) | |
Net unrealized appreciation (depreciation) | $ 129,988,357 | |
Cost for federal income tax purposes | $ 208,448,087 | |
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 90 days are subject to a redemption fee equal to 1.50% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.
New Accounting Pronouncement. In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and results in expanded disclosures about fair value measurements.
4. Operating Policies.
Repurchase Agreements. 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 which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by
Semiannual Report
4. Operating Policies - continued
Repurchase Agreements - continued
government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
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 at the end of the Fund's Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $86,127,913 and $45,058,930, respectively.
6. 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 .26% 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 .71% 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. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan - continued
For the period, the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC |
Class A | 0% | .25% | $ 166,444 | $ 9,985 |
Class T | .25% | .25% | 113,908 | 1,334 |
Class B | .75% | .25% | 151,943 | 114,873 |
Class C | .75% | .25% | 286,999 | 88,760 |
| | | $ 719,294 | $ 214,952 |
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, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges 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, 1.00% to .50% for certain purchases of Class A shares and ..25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 130,978 |
Class T | 12,895 |
Class B* | 34,668 |
Class C* | 23,052 |
| $ 201,593 |
* 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 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 shareholder reports, except proxy statements.
Semiannual Report
6. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees - continued
For the period, the total transfer agent fees paid by each class to FIIOC were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 179,036 | .27 |
Class T | 67,890 | .30 |
Class B | 46,201 | .30 |
Class C | 78,022 | .27 |
Institutional Class | 21,026 | .22 |
| $ 392,175 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
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 were $76 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $4.2 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, which amounted to $271 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, 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
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
8. Security Lending - continued
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. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $25,301.
9. 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 included payments of certain expenses on behalf of the Fund totaling $15,590 for the period. 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. During the period, these credits reduced the Fund's custody expenses by $1,412. During the period, credits reduced each class' transfer agent expense as noted in the table below:
| Transfer Agent
expense reduction | |
Class C | $ 1,792 | |
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
In December 2006, the Independent Trustees, with the assistance of independent counsel, completed an investigation regarding gifts, gratuities and business entertainment provided by certain brokers to certain individuals who were employed on FMR's domestic equity trading desk during the period 2002 to 2004. The Independent Trustees and FMR agreed that, despite the absence of proof that the Fidelity mutual funds experienced diminished execution quality as a result of the improper receipt of gifts and
Semiannual Report
10. Other - continued
business entertainment, the conduct at issue was serious and was worthy of redress. Accordingly, the Independent Trustees requested, and FMR agreed to make, a payment of $42 million plus accrued interest, which equaled approximately $7.3 million, to certain Fidelity mutual funds.
In March 2008, the Trustees approved a method for allocating this payment among the funds and, in total, FMR paid the fund $16, which is recorded in the accompanying Statement of Operations.
In a related administrative order dated March 5, 2008, the U.S. Securities and Exchange Commission ("SEC") announced a settlement with FMR and FMR Co., Inc. (an affiliate of FMR) involving the SEC's regulatory rules for investment advisers and the improper receipt of gifts, gratuities and business entertainment. Without admitting or denying the SEC's findings, FMR agreed to pay an $8 million civil penalty to the United States Treasury.
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30,
2008 | Year ended
October 31,
2007 |
From net investment income | | |
Class A | $ 858,891 | $ 709,973 |
Class T | 187,433 | 240,940 |
Class B | - | 107,563 |
Class C | 31,775 | 191,630 |
Institutional Class | 173,418 | 88,607 |
Total | $ 1,251,517 | $ 1,338,713 |
From net realized gain | | |
Class A | $ 2,092,170 | $ 1,198,858 |
Class T | 742,575 | 501,417 |
Class B | 516,624 | 369,748 |
Class C | 973,746 | 627,893 |
Institutional Class | 300,673 | 129,464 |
Total | $ 4,625,788 | $ 2,827,380 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
April 30,
2008 | Year ended
October 31,
2007 | Six months ended
April 30,
2008 | Year ended
October 31,
2007 |
Class A | | | | |
Shares sold | 899,336 | 1,393,391 | $ 51,368,052 | $ 65,803,104 |
Reinvestment of distributions | 44,762 | 43,952 | 2,663,760 | 1,688,203 |
Shares redeemed | (452,806) | (782,832) | (24,772,705) | (35,128,744) |
Net increase (decrease) | 491,292 | 654,511 | $ 29,259,107 | $ 32,362,563 |
Class T | | | | |
Shares sold | 231,561 | 455,916 | $ 13,159,603 | $ 21,240,936 |
Reinvestment of distributions | 15,156 | 18,830 | 896,344 | 718,933 |
Shares redeemed | (138,395) | (337,584) | (7,421,152) | (15,355,363) |
Net increase (decrease) | 108,322 | 137,162 | $ 6,634,795 | $ 6,604,506 |
Class B | | | | |
Shares sold | 121,599 | 237,976 | $ 6,724,307 | $ 10,853,846 |
Reinvestment of distributions | 8,122 | 11,564 | 472,231 | 434,710 |
Shares redeemed | (97,922) | (184,610) | (5,243,610) | (7,992,057) |
Net increase (decrease) | 31,799 | 64,930 | $ 1,952,928 | $ 3,296,499 |
Class C | | | | |
Shares sold | 272,897 | 583,666 | $ 15,221,372 | $ 27,131,346 |
Reinvestment of distributions | 14,808 | 19,005 | 856,926 | 711,556 |
Shares redeemed | (194,315) | (384,050) | (10,236,971) | (16,675,013) |
Net increase (decrease) | 93,390 | 218,621 | $ 5,841,327 | $ 11,167,889 |
Institutional Class | | | | |
Shares sold | 191,546 | 223,683 | $ 11,371,346 | $ 11,037,917 |
Reinvestment of distributions | 5,442 | 3,561 | 330,045 | 139,192 |
Shares redeemed | (129,197) | (91,047) | (7,017,382) | (4,496,421) |
Net increase (decrease) | 67,791 | 136,197 | $ 4,684,009 | $ 6,680,688 |
Semiannual Report
A special meeting of the fund's shareholders was held on May 14, 2008. The results of votes taken among shareholders on the proposals before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1 |
To elect a Board of Trustees.A |
| # of
Votes | % of
Votes |
James C. Curvey |
Affirmative | 8,514,961,004.35 | 97.348 |
Withheld | 231,994,591.94 | 2.652 |
TOTAL | 8,746,955,596.29 | 100.000 |
Dennis J. Dirks |
Affirmative | 8,525,899,114.46 | 97.473 |
Withheld | 221,056,481.83 | 2.527 |
TOTAL | 8,746,955,596.29 | 100.000 |
Edward C. Johnson 3d |
Affirmative | 8,497,196,105.85 | 97.145 |
Withheld | 249,759,490.44 | 2.855 |
TOTAL | 8,746,955,596.29 | 100.000 |
Alan J. Lacy |
Affirmative | 8,522,858,760.40 | 97.438 |
Withheld | 224,096,835.89 | 2.562 |
TOTAL | 8,746,955,596.29 | 100.000 |
Ned C. Lautenbach |
Affirmative | 8,523,008,335.52 | 97.440 |
Withheld | 223,947,260.77 | 2.560 |
TOTAL | 8,746,955,596.29 | 100.000 |
Joseph Mauriello |
Affirmative | 8,524,890,199.58 | 97.461 |
Withheld | 222,065,396.71 | 2.539 |
TOTAL | 8,746,955,596.29 | 100.000 |
Cornelia M. Small |
Affirmative | 8,525,649,323.51 | 97.470 |
Withheld | 221,306,272.78 | 2.530 |
TOTAL | 8,746,955,596.29 | 100.000 |
William S. Stavropoulos |
Affirmative | 8,514,682,431.03 | 97.345 |
Withheld | 232,273,165.26 | 2.655 |
TOTAL | 8,746,955,596.29 | 100.000 |
David M. Thomas |
Affirmative | 8,526,972,729.02 | 97.485 |
Withheld | 219,982,867.27 | 2.515 |
TOTAL | 8,746,955,596.29 | 100.000 |
Michael E. Wiley |
Affirmative | 8,523,710,850.33 | 97.448 |
Withheld | 223,244,745.96 | 2.552 |
TOTAL | 8,746,955,596.29 | 100.000 |
PROPOSAL 2 |
To amend the Declaration of Trust of Fidelity Advisor Series VIII to reduce the required quorum for future shareholder meetings.A |
| # of
Votes | % of
Votes |
Affirmative | 4,574,398,791.46 | 52.297 |
Against | 2,140,778,913.08 | 24.475 |
Abstain | 230,752,610.67 | 2.638 |
Broker
Non-Votes | 1,801,025,281.08 | 20.590 |
TOTAL | 8,746,955,596.29 | 100.000 |
A Denotes trust-wide proposal and voting results.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Research & Analysis Company
Fidelity International
Investment Advisors
Fidelity Investments Japan Limited
Fidelity International Investment Advisors (U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
State Street Bank and Trust Company
Quincy, MA
ALAFI-USAN-0608 1.784897.105
(Fidelity Investment logo)(registered trademark)
Fidelity® Advisor
Overseas
Fund - Class A, Class T, Class B
and Class C
Semiannual Report
April 30, 2008
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | Ned Johnson's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
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. |
Proxy Voting Results | <Click Here> | |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
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 LLC or an affiliated company.
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.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
Continuation of a credit squeeze, flat consumer spending and a potential recession weighed heavily on stocks in the opening months of 2008, though positive results in investment-grade bonds and money markets offered some comfort to investors. Financial markets are always unpredictable, but there are a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 1, 2007 to April 30, 2008).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Semiannual Report
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Beginning
Account Value
November 1, 2007 | Ending
Account Value
April 30, 2008 | Expenses Paid
During Period*
November 1, 2007
to April 30, 2008 |
Class A | | | |
Actual | $ 1,000.00 | $ 903.60 | $ 6.29 |
HypotheticalA | $ 1,000.00 | $ 1,018.25 | $ 6.67 |
Class T | | | |
Actual | $ 1,000.00 | $ 903.20 | $ 7.00 |
HypotheticalA | $ 1,000.00 | $ 1,017.50 | $ 7.42 |
Class B | | | |
Actual | $ 1,000.00 | $ 900.50 | $ 9.83 |
HypotheticalA | $ 1,000.00 | $ 1,014.52 | $ 10.42 |
Class C | | | |
Actual | $ 1,000.00 | $ 900.40 | $ 9.73 |
HypotheticalA | $ 1,000.00 | $ 1,014.62 | $ 10.32 |
Institutional Class | | | |
Actual | $ 1,000.00 | $ 905.30 | $ 4.69 |
HypotheticalA | $ 1,000.00 | $ 1,019.94 | $ 4.97 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
| Annualized
Expense Ratio |
Class A | 1.33% |
Class T | 1.48% |
Class B | 2.08% |
Class C | 2.06% |
Institutional Class | .99% |
Semiannual Report
Investment Changes (Unaudited)
Top Five Stocks as of April 30, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Alstom SA (France, Electrical Equipment) | 3.6 | 2.8 |
Man Group PLC (United Kingdom, Capital Markets) | 2.0 | 1.5 |
E.ON AG (Germany, Electric Utilities) | 1.9 | 1.5 |
CSL Ltd. (Australia, Biotechnology) | 1.9 | 1.6 |
Royal Dutch Shell PLC Class A (United Kingdom, Oil, Gas & Consumable Fuels) | 1.9 | 1.6 |
| 11.3 | |
Top Five Market Sectors as of April 30, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 22.5 | 21.3 |
Industrials | 12.4 | 18.2 |
Consumer Staples | 10.5 | 9.1 |
Energy | 9.3 | 7.9 |
Materials | 8.7 | 8.0 |
Top Five Countries as of April 30, 2008 |
(excluding cash equivalents) | % of fund's
net assets | % of fund's net assets
6 months ago |
United Kingdom | 25.2 | 20.4 |
France | 14.2 | 15.3 |
Japan | 9.8 | 12.1 |
Germany | 8.2 | 11.5 |
Australia | 5.3 | 6.7 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) |
As of April 30, 2008 | As of October 31, 2007 |
| Stocks 93.6% | | | Stocks 96.9% | |
| Short-Term
Investments and
Net Other Assets 6.4% | | | Short-Term
Investments and
Net Other Assets 3.1% | |
Semiannual Report
Investments April 30, 2008 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 93.6% |
| Shares | | Value (000s) |
Argentina - 0.2% |
Cresud S.A.C.I.F. y A. sponsored ADR | 167,700 | | $ 2,742 |
Australia - 5.3% |
AMP Ltd. | 332,700 | | 2,457 |
Australian Wealth Management Ltd. | 953,300 | | 1,628 |
Babcock & Brown Wind Partners | 1,798,000 | | 2,680 |
BHP Billiton Ltd. | 340,619 | | 13,727 |
Charter Hall Group unit | 899,034 | | 1,225 |
Commonwealth Bank of Australia | 153,409 | | 6,490 |
Computershare Ltd. | 506,320 | | 4,274 |
CSL Ltd. | 763,926 | | 28,672 |
Energy Resources of Australia Ltd. | 116,410 | | 2,141 |
HFA Holdings Ltd. | 1,532,013 | | 1,546 |
Lion Nathan Ltd. | 523,765 | | 4,125 |
McGuigan Simeon Wines Ltd. (a) | 614,691 | | 957 |
National Australia Bank Ltd. | 97,184 | | 2,769 |
Rio Tinto Ltd. | 30,300 | | 3,889 |
Seek Ltd. | 226,300 | | 1,067 |
Silex Systems Ltd. (a) | 350,092 | | 1,912 |
TOTAL AUSTRALIA | | 79,559 |
Austria - 0.5% |
Strabag SE | 99,700 | | 7,004 |
Belgium - 0.5% |
Fortis | 90,300 | | 2,467 |
Hamon & Compagnie International SA (a) | 60,300 | | 2,964 |
KBC Groupe SA (d) | 10,100 | | 1,374 |
TOTAL BELGIUM | | 6,805 |
Bermuda - 0.4% |
Aquarius Platinum Ltd. (United Kingdom) | 192,900 | | 3,040 |
Covidien Ltd. | 77,700 | | 3,628 |
TOTAL BERMUDA | | 6,668 |
Brazil - 1.3% |
Banco do Brasil SA | 137,300 | | 2,379 |
Bolsa de Mercadorias & Futuros - BM&F SA | 169,700 | | 1,725 |
Gafisa SA sponsored ADR | 56,200 | | 2,448 |
MRV Engenharia e Participacoes SA | 267,600 | | 5,393 |
Uniao de Bancos Brasileiros SA (Unibanco) GDR | 18,400 | | 2,676 |
Common Stocks - continued |
| Shares | | Value (000s) |
Brazil - continued |
Vivo Participacoes SA (PN) sponsored ADR | 466,900 | | $ 3,152 |
Votorantim Celulose e Papel SA sponsored ADR (non-vtg.) | 40,600 | | 1,291 |
TOTAL BRAZIL | | 19,064 |
Canada - 0.8% |
Canadian Natural Resources Ltd. | 17,300 | | 1,470 |
OPTI Canada, Inc. (a) | 67,700 | | 1,433 |
Petrobank Energy & Resources Ltd. (a) | 46,700 | | 2,254 |
Potash Corp. of Saskatchewan, Inc. | 13,800 | | 2,539 |
Suncor Energy, Inc. | 13,000 | | 1,467 |
Talisman Energy, Inc. | 111,400 | | 2,253 |
TimberWest Forest Corp. | 74,200 | | 977 |
TOTAL CANADA | | 12,393 |
China - 0.4% |
Focus Media Holding Ltd. ADR (a) | 63,700 | | 2,350 |
Global Bio-Chem Technology Group Co. Ltd. | 2,824,000 | | 1,312 |
Home Inns & Hotels Management, Inc. sponsored ADR (a)(d) | 128,600 | | 2,882 |
TOTAL CHINA | | 6,544 |
Denmark - 1.8% |
Carlsberg AS Series B (d) | 57,800 | | 7,715 |
Novo Nordisk AS Series B | 96,700 | | 6,656 |
Novozymes AS Series B | 43,200 | | 3,950 |
Vestas Wind Systems AS (a) | 75,400 | | 8,266 |
TOTAL DENMARK | | 26,587 |
Finland - 1.4% |
Fortum Oyj | 81,000 | | 3,448 |
Neste Oil Oyj (d) | 93,400 | | 2,836 |
Nokia Corp. (d) | 286,700 | | 8,617 |
Nokian Tyres Ltd. | 147,329 | | 6,286 |
TOTAL FINLAND | | 21,187 |
France - 14.2% |
Alstom SA | 229,400 | | 53,357 |
AXA SA | 151,673 | | 5,603 |
BNP Paribas SA | 125,681 | | 13,587 |
Bouygues SA (d) | 75,800 | | 5,682 |
Carrefour SA | 113,700 | | 8,028 |
CNP Assurances (d) | 27,800 | | 3,307 |
Compagnie Generale de Geophysique SA (a) | 4,600 | | 1,162 |
France Telecom SA | 73,400 | | 2,296 |
Common Stocks - continued |
| Shares | | Value (000s) |
France - continued |
Groupe Danone | 93,000 | | $ 8,252 |
Ingenico SA | 184,600 | | 6,239 |
L'Air Liquide SA | 59,780 | | 9,026 |
L'Oreal SA | 56,734 | | 6,750 |
Meetic (a) | 33,500 | | 894 |
Natixis SA | 107,200 | | 1,809 |
Sanofi-Aventis sponsored ADR | 56,200 | | 2,168 |
Seche Environment SA | 8,400 | | 1,224 |
Societe Generale Series A | 23,670 | | 2,777 |
Sodexho Alliance SA (d) | 88,900 | | 5,968 |
Suez SA (France) | 180,700 | | 12,835 |
Total SA: | | | |
Series B | 153,388 | | 12,846 |
sponsored ADR | 98,300 | | 8,257 |
Unibail-Rodamco | 29,300 | | 7,578 |
Veolia Environnement | 355,575 | | 25,834 |
Vilmorin & Cie | 12,200 | | 2,282 |
Vivendi | 86,854 | | 3,535 |
TOTAL FRANCE | | 211,296 |
Germany - 8.2% |
Allianz AG (Reg.) | 39,100 | | 7,943 |
Bayer AG (d) | 42,600 | | 3,644 |
Beiersdorf AG (d) | 130,600 | | 11,150 |
Commerzbank AG | 176,300 | | 6,413 |
Daimler AG (Reg.) | 44,800 | | 3,483 |
Deutsche Bank AG | 30,100 | | 3,588 |
Deutsche Boerse AG | 39,500 | | 5,810 |
Deutsche Postbank AG | 44,000 | | 3,869 |
Deutsche Telekom AG (Reg.) | 33,300 | | 596 |
E.ON AG (d) | 142,179 | | 29,012 |
ESCADA AG (a)(d) | 135,688 | | 2,648 |
Fresenius AG | 53,800 | | 4,564 |
GFK AG | 62,893 | | 2,872 |
K&S AG | 9,900 | | 4,166 |
MLP AG (d) | 445,900 | | 7,483 |
Q-Cells AG (a)(d) | 36,700 | | 4,298 |
RWE AG | 59,700 | | 6,891 |
SAP AG sponsored ADR (d) | 98,000 | | 4,923 |
Siemens AG sponsored ADR | 14,000 | | 1,658 |
Vossloh AG | 53,800 | | 7,806 |
TOTAL GERMANY | | 122,817 |
Common Stocks - continued |
| Shares | | Value (000s) |
Greece - 0.5% |
Public Power Corp. of Greece | 160,600 | | $ 6,789 |
Hong Kong - 1.5% |
China Unicom Ltd. | 4,614,000 | | 10,012 |
China Unicom Ltd. sponsored ADR | 418,900 | | 9,036 |
Dynasty Fine Wines Group Ltd. | 714,000 | | 142 |
Esprit Holdings Ltd. | 215,100 | | 2,647 |
TOTAL HONG KONG | | 21,837 |
India - 0.2% |
Satyam Computer Services Ltd. sponsored ADR | 115,300 | | 2,961 |
Indonesia - 0.2% |
PT Bumi Resources Tbk | 4,096,000 | | 2,954 |
Ireland - 0.2% |
Irish Life & Permanent PLC | 205,400 | | 3,298 |
Israel - 0.6% |
Israel Chemicals Ltd. | 133,600 | | 2,460 |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 123,900 | | 5,796 |
TOTAL ISRAEL | | 8,256 |
Italy - 3.8% |
A2A SpA | 474,200 | | 1,751 |
Alleanza Assicurazioni SpA | 456,700 | | 6,000 |
Assicurazioni Generali SpA | 145,750 | | 6,491 |
Edison SpA | 1,075,800 | | 2,670 |
ENI SpA | 241,991 | | 9,323 |
Finmeccanica SpA | 319,300 | | 11,165 |
Intesa Sanpaolo SpA | 574,600 | | 4,313 |
Lottomatica SpA | 56,000 | | 1,734 |
MARR SpA | 122,400 | | 1,296 |
Saipem SpA | 103,700 | | 4,570 |
UniCredit SpA | 1,062,400 | | 8,095 |
TOTAL ITALY | | 57,408 |
Japan - 9.8% |
Canon, Inc. | 56,600 | | 2,845 |
Ibiden Co. Ltd. | 72,400 | | 3,159 |
Iino Kaiun Kaisha Ltd. | 164,700 | | 1,855 |
Japan Steel Works Ltd. | 330,000 | | 6,105 |
Japan Tobacco, Inc. | 1,240 | | 6,029 |
KDDI Corp. | 228 | | 1,464 |
Matsui Securities Co. Ltd. (d) | 251,700 | | 1,769 |
Mitsubishi Corp. | 98,100 | | 3,158 |
Common Stocks - continued |
| Shares | | Value (000s) |
Japan - continued |
Mitsubishi Electric Corp. | 197,000 | | $ 2,018 |
Mitsubishi Estate Co. Ltd. | 146,000 | | 4,245 |
Mitsubishi UFJ Financial Group, Inc. | 1,045,400 | | 11,518 |
Mitsui & Co. Ltd. | 145,000 | | 3,405 |
Mizuho Financial Group, Inc. | 992 | | 5,162 |
Nafco Co. Ltd. | 61,100 | | 938 |
NGK Insulators Ltd. | 269,000 | | 5,180 |
Nidec Corp. | 36,100 | | 2,727 |
Nomura Holdings, Inc. | 648,200 | | 11,317 |
Nomura Holdings, Inc. sponsored ADR | 88,500 | | 1,541 |
NSK Ltd. | 617,000 | | 5,141 |
NTT DoCoMo, Inc. | 1,830 | | 2,688 |
Point, Inc. | 45,360 | | 2,004 |
Rakuten, Inc. | 6,375 | | 3,982 |
Sony Corp. | 37,700 | | 1,738 |
Sony Corp. sponsored ADR | 25,700 | | 1,177 |
Sumitomo Metal Industries Ltd. | 425,000 | | 1,790 |
Sumitomo Mitsui Financial Group, Inc. | 2,872 | | 24,711 |
Sumitomo Trust & Banking Co. Ltd. | 610,000 | | 5,484 |
T&D Holdings, Inc. | 107,800 | | 6,903 |
Tokai Carbon Co. Ltd. | 139,000 | | 1,456 |
Toyo Tanso Co. Ltd. | 15,900 | | 1,278 |
Toyota Motor Corp. | 183,000 | | 9,325 |
USS Co. Ltd. | 48,180 | | 3,421 |
TOTAL JAPAN | | 145,533 |
Korea (South) - 0.3% |
Doosan Heavy Industries & Construction Co. Ltd. | 40,130 | | 4,220 |
Luxembourg - 1.2% |
ArcelorMittal SA: | | | |
(France) | 62,700 | | 5,559 |
(NY Reg.) Class A | 49,100 | | 4,374 |
Evraz Group SA GDR | 23,200 | | 2,407 |
SES SA (A Shares) FDR unit | 213,304 | | 5,261 |
TOTAL LUXEMBOURG | | 17,601 |
Malaysia - 0.3% |
Gamuda Bhd | 5,227,900 | | 5,163 |
Mexico - 0.1% |
America Movil SAB de CV Series L sponsored ADR | 31,100 | | 1,803 |
Netherlands - 1.4% |
ASML Holding NV (NY Shares) | 49,300 | | 1,398 |
Common Stocks - continued |
| Shares | | Value (000s) |
Netherlands - continued |
ING Groep NV (Certificaten Van Aandelen) | 48,946 | | $ 1,854 |
Koninklijke KPN NV | 379,400 | | 6,980 |
Koninklijke Philips Electronics NV (NY Shares) | 55,400 | | 2,081 |
Unilever NV (NY Shares) | 265,500 | | 8,905 |
TOTAL NETHERLANDS | | 21,218 |
Norway - 1.6% |
Acta Holding ASA (d) | 330,400 | | 1,194 |
Lighthouse Caledonia ASA | 26,435 | | 25 |
Marine Harvest ASA (a) | 3,110,000 | | 2,059 |
Norwegian Property ASA | 225,400 | | 1,966 |
Orkla ASA (A Shares) (d) | 449,700 | | 5,972 |
Petroleum Geo-Services ASA | 296,200 | | 8,089 |
StatoilHydro ASA | 119,200 | | 4,321 |
TOTAL NORWAY | | 23,626 |
Panama - 0.1% |
McDermott International, Inc. (a) | 36,000 | | 1,929 |
Portugal - 0.2% |
Energias de Portugal SA | 513,200 | | 3,253 |
South Africa - 0.5% |
Exxaro Resources Ltd. | 109,400 | | 1,809 |
Gold Fields Ltd. sponsored ADR | 130,100 | | 1,756 |
Impala Platinum Holdings Ltd. | 83,600 | | 3,406 |
TOTAL SOUTH AFRICA | | 6,971 |
Spain - 1.9% |
Banco Santander SA sponsored ADR | 316,100 | | 6,667 |
Repsol YPF SA sponsored ADR | 79,600 | | 3,229 |
Telefonica SA | 519,648 | | 14,929 |
Telefonica SA sponsored ADR | 47,200 | | 4,077 |
TOTAL SPAIN | | 28,902 |
Sweden - 1.2% |
Skandinaviska Enskilda Banken AB (A Shares) | 133,000 | | 3,232 |
Svenska Cellulosa AB (SCA) (B Shares) (d) | 246,000 | | 4,150 |
Swedish Match Co. (d) | 440,600 | | 9,676 |
Telefonaktiebolaget LM Ericsson (B Shares) sponsored ADR (d) | 63,900 | | 1,612 |
TOTAL SWEDEN | | 18,670 |
Switzerland - 4.7% |
Compagnie Financiere Richemont unit | 94,716 | | 5,771 |
Common Stocks - continued |
| Shares | | Value (000s) |
Switzerland - continued |
Credit Suisse Group (Reg.) | 53,291 | | $ 2,967 |
EFG International | 60,660 | | 1,940 |
Julius Baer Holding AG | 47,842 | | 3,550 |
Nestle SA (Reg.) | 35,396 | | 16,974 |
Novartis AG sponsored ADR | 82,400 | | 4,147 |
Roche Holding AG (participation certificate) | 34,223 | | 5,706 |
SGS Societe Generale de Surveillance Holding SA (Reg.) | 9,443 | | 13,348 |
Sonova Holding AG | 36,610 | | 3,098 |
Swisscom AG (Reg.) | 13,348 | | 4,765 |
UBS AG: | | | |
(For. Reg.) | 78,021 | | 2,581 |
(For. Reg.) rights 5/9/08 (a) | 78,021 | | 132 |
(NY Shares) | 74,500 | | 2,502 |
(NY Shares) rights 5/9/08 (a) | 74,500 | | 125 |
Zurich Financial Services AG (Reg.) | 7,048 | | 2,157 |
TOTAL SWITZERLAND | | 69,763 |
Thailand - 0.2% |
Bangkok Bank Ltd. PCL (For. Reg.) | 281,900 | | 1,244 |
Krung Thai Bank PCL (For. Reg.) | 2,697,800 | | 876 |
Siam Commercial Bank PCL (For. Reg.) | 473,200 | | 1,328 |
TOTAL THAILAND | | 3,448 |
United Kingdom - 25.2% |
Anglo American PLC: | | | |
ADR | 147,846 | | 4,842 |
(United Kingdom) | 113,659 | | 7,387 |
AstraZeneca PLC sponsored ADR | 90,000 | | 3,778 |
Barclays PLC | 381,700 | | 3,451 |
BG Group PLC | 729,100 | | 17,845 |
BHP Billiton PLC | 299,902 | | 10,733 |
BP PLC | 1,670,608 | | 20,243 |
BP PLC sponsored ADR | 8,100 | | 590 |
British American Tobacco PLC | 156,900 | | 5,885 |
BT Group PLC | 103,000 | | 453 |
BT Group PLC sponsored ADR | 36,900 | | 1,629 |
Cadbury Schweppes PLC sponsored ADR | 58,900 | | 2,715 |
Centrica PLC | 1,110,000 | | 6,488 |
Climate Exchange PLC (a) | 42,200 | | 1,519 |
Diageo PLC | 575,200 | | 11,731 |
DSG International PLC | 1,308,800 | | 1,704 |
GlaxoSmithKline PLC | 574,600 | | 12,710 |
Common Stocks - continued |
| Shares | | Value (000s) |
United Kingdom - continued |
Hammerson PLC | 140,800 | | $ 2,822 |
HBOS PLC | 310,000 | | 2,900 |
HSBC Holdings PLC: | | | |
(Hong Kong) (Reg.) | 150,400 | | 2,607 |
(United Kingdom) (Reg.) | 343,567 | | 5,965 |
sponsored ADR (d) | 126,700 | | 10,996 |
Icap PLC | 407,700 | | 4,750 |
Imperial Tobacco Group PLC sponsored ADR | 4,300 | | 413 |
Informa PLC | 247,000 | | 1,697 |
InterContinental Hotel Group PLC | 146,573 | | 2,363 |
International Power PLC | 1,237,600 | | 10,808 |
Intertek Group PLC | 260,100 | | 5,032 |
Jardine Lloyd Thompson Group PLC | 1,136,600 | | 8,361 |
Lloyds TSB Group PLC | 492,600 | | 4,236 |
M&C Saatchi | 500,100 | | 1,099 |
Man Group PLC | 2,606,171 | | 30,132 |
Misys PLC | 304,500 | | 949 |
NDS Group PLC sponsored ADR (a) | 52,700 | | 2,711 |
New Star Asset Management Group PLC | 1,650,100 | | 3,986 |
Prudential PLC | 694,400 | | 9,526 |
QinetiQ Group PLC | 813,800 | | 3,139 |
Reed Elsevier PLC | 1,097,277 | | 13,919 |
Rio Tinto PLC: | | | |
(Reg.) | 43,618 | | 5,085 |
sponsored ADR | 9,100 | | 4,277 |
Royal Bank of Scotland Group PLC | 779,100 | | 5,344 |
Royal Dutch Shell PLC: | | | |
Class A (United Kingdom) | 312,900 | | 12,617 |
Class A sponsored ADR | 195,000 | | 15,660 |
Class B | 65,800 | | 2,622 |
Scottish & Southern Energy PLC | 236,700 | | 6,551 |
Shanks Group PLC | 1,079,000 | | 5,363 |
Signet Group PLC | 3,303,400 | | 4,515 |
Smith & Nephew PLC sponsored ADR | 32,100 | | 2,078 |
Spice PLC | 241,200 | | 2,652 |
SSL International PLC | 189,600 | | 1,732 |
Standard Chartered PLC (United Kingdom) | 79,700 | | 2,843 |
Taylor Nelson Sofres PLC | 2,566,100 | | 10,344 |
Tesco PLC | 2,090,700 | | 17,833 |
Vodafone Group PLC | 6,036,969 | | 19,104 |
Vodafone Group PLC sponsored ADR | 101,600 | | 3,217 |
Common Stocks - continued |
| Shares | | Value (000s) |
United Kingdom - continued |
William Morrison Supermarkets PLC | 1,385,200 | | $ 7,891 |
Xstrata PLC | 50,266 | | 3,944 |
TOTAL UNITED KINGDOM | | 375,786 |
United States of America - 2.9% |
ADA-ES, Inc. (a) | 71,200 | | 768 |
Becton, Dickinson & Co. | 34,100 | | 3,049 |
Calgon Carbon Corp. (a)(d) | 724,300 | | 10,321 |
Estee Lauder Companies, Inc. Class A | 286,600 | | 13,072 |
FMC Corp. | 34,700 | | 2,178 |
Fuel Tech, Inc. (a)(d) | 106,100 | | 2,727 |
GSE Systems, Inc. (a) | 160,200 | | 1,314 |
Hypercom Corp. (a) | 258,800 | | 1,105 |
Monsanto Co. | 16,900 | | 1,927 |
Sunpower Corp. Class A (a)(d) | 42,100 | | 3,674 |
Visa, Inc. | 34,700 | | 2,896 |
TOTAL UNITED STATES OF AMERICA | | 43,031 |
TOTAL COMMON STOCKS (Cost $1,210,228) | 1,397,086 |
Money Market Funds - 12.1% |
| | | |
Fidelity Cash Central Fund, 2.51% (b) | 74,846,036 | | 74,846 |
Fidelity Securities Lending Cash Central Fund, 2.44% (b)(c) | 105,270,735 | | 105,271 |
TOTAL MONEY MARKET FUNDS (Cost $180,117) | 180,117 |
TOTAL INVESTMENT PORTFOLIO - 105.7% (Cost $1,390,345) | | 1,577,203 |
NET OTHER ASSETS - (5.7)% | | (84,875) |
NET ASSETS - 100% | $ 1,492,328 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned
(Amounts in thousands) |
Fidelity Cash Central Fund | $ 1,300 |
Fidelity Securities Lending Cash Central Fund | 572 |
Total | $ 1,872 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | April 30, 2008
(Unaudited) |
Assets | | |
Investment in securities, at value (including securities loaned of $101,820) - See accompanying schedule: Unaffiliated issuers (cost $1,210,228) | $ 1,397,086 | |
Fidelity Central Funds (cost $180,117) | 180,117 | |
Total Investments (cost $1,390,345) | | $ 1,577,203 |
Cash | | 55 |
Foreign currency held at value (cost $1,255) | | 1,258 |
Receivable for investments sold | | 21,183 |
Receivable for fund shares sold | | 1,572 |
Dividends receivable | | 5,672 |
Distributions receivable from Fidelity Central Funds | | 464 |
Prepaid expenses | | 3 |
Other receivables | | 190 |
Total assets | | 1,607,600 |
| | |
Liabilities | | |
Payable for investments purchased | $ 6,928 | |
Payable for fund shares redeemed | 1,532 | |
Accrued management fee | 844 | |
Distribution fees payable | 328 | |
Other affiliated payables | 311 | |
Other payables and accrued expenses | 58 | |
Collateral on securities loaned, at value | 105,271 | |
Total liabilities | | 115,272 |
| | |
Net Assets | | $ 1,492,328 |
Net Assets consist of: | | |
Paid in capital | | $ 1,250,970 |
Undistributed net investment income | | 9,948 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | 44,574 |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 186,836 |
Net Assets | | $ 1,492,328 |
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, 2008
(Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($127,046 ÷ 5,693.4 shares) | | $ 22.31 |
| | |
Maximum offering price per share (100/94.25 of $22.31) | | $ 23.67 |
Class T:
Net Asset Value and redemption price per share ($617,459 ÷ 27,084.3 shares) | | $ 22.80 |
| | |
Maximum offering price per share (100/96.50 of $22.80) | | $ 23.63 |
Class B:
Net Asset Value and offering price per share
($19,899 ÷ 925.2 shares)A | | $ 21.51 |
| | |
Class C:
Net Asset Value and offering price per share
($39,562 ÷ 1,811.5 shares)A | | $ 21.84 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($688,362 ÷ 30,286.0 shares) | | $ 22.73 |
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, 2008 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 21,839 |
Interest | | 4 |
Income from Fidelity Central Funds | | 1,872 |
| | 23,715 |
Less foreign taxes withheld | | (1,408) |
Total income | | 22,307 |
| | |
Expenses | | |
Management fee
Basic fee | $ 4,988 | |
Performance adjustment | (122) | |
Transfer agent fees | 1,582 | |
Distribution fees | 2,032 | |
Accounting and security lending fees | 321 | |
Custodian fees and expenses | 124 | |
Independent trustees' compensation | 3 | |
Registration fees | 53 | |
Audit | 44 | |
Legal | 3 | |
Miscellaneous | 67 | |
Total expenses before reductions | 9,095 | |
Expense reductions | (191) | 8,904 |
Net investment income (loss) | | 13,403 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers (net of foreign taxes of $2) | 50,607 | |
Foreign currency transactions | (233) | |
Total net realized gain (loss) | | 50,374 |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of decrease in deferred foreign taxes of $31) | (210,150) | |
Assets and liabilities in foreign currencies | 9 | |
Total change in net unrealized appreciation (depreciation) | | (210,141) |
Net gain (loss) | | (159,767) |
Net increase (decrease) in net assets resulting from operations | | $ (146,364) |
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, 2008
(Unaudited) | Year ended
October 31,
2007 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 13,403 | $ 17,399 |
Net realized gain (loss) | 50,374 | 114,203 |
Change in net unrealized appreciation (depreciation) | (210,141) | 232,103 |
Net increase (decrease) in net assets resulting
from operations | (146,364) | 363,705 |
Distributions to shareholders from net investment income | (18,269) | (11,581) |
Distributions to shareholders from net realized gain | (100,839) | (55,423) |
Total distributions | (119,108) | (67,004) |
Share transactions - net increase (decrease) | 218,492 | 96,150 |
Redemption fees | 40 | 58 |
Total increase (decrease) in net assets | (46,940) | 392,909 |
| | |
Net Assets | | |
Beginning of period | 1,539,268 | 1,146,359 |
End of period (including undistributed net investment income of $9,948 and undistributed net investment income of $16,730, respectively) | $ 1,492,328 | $ 1,539,268 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
April 30, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 26.85 | $ 21.67 | $ 18.36 | $ 15.86 | $ 14.41 | $ 11.01 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .21 | .31 | .27 | .13 | .04 H | .05 |
Net realized and unrealized gain (loss) | (2.64) | 6.16 | 3.53 | 2.47 | 1.54 | 3.35 |
Total from investment operations | (2.43) | 6.47 | 3.80 | 2.60 | 1.58 | 3.40 |
Distributions from net investment income | (.33) | (.23) | (.19) | (.04) | (.13) | - |
Distributions from net realized gain | (1.78) | (1.06) | (.30) | (.06) | - | - |
Total distributions | (2.11) | (1.29) | (.49) | (.10) | (.13) | - |
Redemption fees added to paid in capital E | - J | - J | - J | - J | - J | - |
Net asset value, end of period | $ 22.31 | $ 26.85 | $ 21.67 | $ 18.36 | $ 15.86 | $ 14.41 |
Total Return B,C,D | (9.64)% | 31.44% | 21.12% | 16.44% | 11.03% | 30.88% |
Ratios to Average Net Assets F,I | | | | | |
Expenses before reductions | 1.33% A | 1.17% | 1.24% | 1.24% | 1.36% | 1.34% |
Expenses net of fee waivers, if any | 1.33% A | 1.17% | 1.24% | 1.24% | 1.36% | 1.34% |
Expenses net of all reductions | 1.30% A | 1.13% | 1.17% | 1.15% | 1.32% | 1.30% |
Net investment income (loss) | 1.86% A | 1.34% | 1.31% | .76% | .24% H | .43% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 127 | $ 147 | $ 113 | $ 133 | $ 115 | $ 68 |
Portfolio turnover rate G | 73% A | 66% | 65% | 120% | 85% | 99% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Net investment income per share includes approximately $.01 per share received as a result of a reorganization of an issuer that was in bankruptcy. Excluding this non-recurring amount, the ratio of net investment income (loss) to average net assets would have been .21%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J 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, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 27.35 | $ 22.05 | $ 18.64 | $ 16.09 | $ 14.61 | $ 11.18 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .20 | .28 | .24 | .11 | .02 H | .04 |
Net realized and unrealized gain (loss) | (2.70) | 6.27 | 3.59 | 2.51 | 1.56 | 3.39 |
Total from investment operations | (2.50) | 6.55 | 3.83 | 2.62 | 1.58 | 3.43 |
Distributions from net investment income | (.27) | (.19) | (.12) | (.01) | (.10) | - |
Distributions from net realized gain | (1.78) | (1.06) | (.30) | (.06) | - | - |
Total distributions | (2.05) | (1.25) | (.42) | (.07) | (.10) | - |
Redemption fees added to paid in capital E | - J | - J | - J | - J | - J | - |
Net asset value, end of period | $ 22.80 | $ 27.35 | $ 22.05 | $ 18.64 | $ 16.09 | $ 14.61 |
Total Return B,C,D | (9.68)% | 31.24% | 20.92% | 16.31% | 10.86% | 30.68% |
Ratios to Average Net Assets F,I | | | | | |
Expenses before reductions | 1.48% A | 1.33% | 1.39% | 1.36% | 1.48% | 1.46% |
Expenses net of fee waivers, if any | 1.48% A | 1.33% | 1.39% | 1.36% | 1.48% | 1.46% |
Expenses net of all reductions | 1.46% A | 1.30% | 1.33% | 1.27% | 1.43% | 1.42% |
Net investment income (loss) | 1.70% A | 1.17% | 1.15% | .64% | .12% H | .31% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 617 | $ 710 | $ 602 | $ 582 | $ 1,181 | $ 1,114 |
Portfolio turnover rate G | 73% A | 66% | 65% | 120% | 85% | 99% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Net investment income per share includes approximately $.01per share received as a result of a reorganization of an issuer that was in bankruptcy. Excluding this non-recurring amount, the ratio of net investment income (loss) to average net assets would have been .09%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J 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, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 25.79 | $ 20.81 | $ 17.63 | $ 15.26 | $ 13.87 | $ 10.71 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .12 | .12 | .10 | (.01) | (.10) H | (.06) |
Net realized and unrealized gain (loss) | (2.55) | 5.94 | 3.40 | 2.38 | 1.50 | 3.22 |
Total from investment operations | (2.43) | 6.06 | 3.50 | 2.37 | 1.40 | 3.16 |
Distributions from net investment income | (.07) | (.02) | (.02) | - | (.01) | - |
Distributions from net realized gain | (1.78) | (1.06) | (.30) | - | - | - |
Total distributions | (1.85) | (1.08) | (.32) | - | (.01) | - |
Redemption fees added to paid in capital E | - J | - J | - J | - J | - J | - |
Net asset value, end of period | $ 21.51 | $ 25.79 | $ 20.81 | $ 17.63 | $ 15.26 | $ 13.87 |
Total Return B,C,D | (9.95)% | 30.45% | 20.12% | 15.53% | 10.10% | 29.51% |
Ratios to Average Net Assets F,I | | | | | |
Expenses before reductions | 2.08% A | 1.94% | 2.05% | 2.04% | 2.25% | 2.27% |
Expenses net of fee waivers, if any | 2.08% A | 1.94% | 2.05% | 2.04% | 2.25% | 2.27% |
Expenses net of all reductions | 2.05% A | 1.91% | 1.99% | 1.95% | 2.21% | 2.22% |
Net investment income (loss) | 1.11% A | .56% | .49% | (.04)% | (.65)% H | (.49)% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 20 | $ 27 | $ 37 | $ 47 | $ 57 | $ 59 |
Portfolio turnover rate G | 73% A | 66% | 65% | 120% | 85% | 99% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Net investment income per share includes approximately $.01 per share received as a result of a reorganization of an issuer that was in bankruptcy. Excluding this non-recurring amount, the ratio of net investment income (loss) to average net assets would have been (.68)%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount 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, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 26.22 | $ 21.19 | $ 17.95 | $ 15.53 | $ 14.11 | $ 10.88 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .12 | .14 | .11 | - J | (.08) H | (.05) |
Net realized and unrealized gain (loss) | (2.59) | 6.02 | 3.47 | 2.42 | 1.52 | 3.28 |
Total from investment operations | (2.47) | 6.16 | 3.58 | 2.42 | 1.44 | 3.23 |
Distributions from net investment income | (.13) | (.07) | (.04) | - | (.02) | - |
Distributions from net realized gain | (1.78) | (1.06) | (.30) | - | - | - |
Total distributions | (1.91) | (1.13) | (.34) | - | (.02) | - |
Redemption fees added to paid in capital E | - J | - J | - J | - J | - J | - |
Net asset value, end of period | $ 21.84 | $ 26.22 | $ 21.19 | $ 17.95 | $ 15.53 | $ 14.11 |
Total Return B,C,D | (9.96)% | 30.48% | 20.22% | 15.58% | 10.21% | 29.69% |
Ratios to Average Net Assets F,I | | | | | |
Expenses before reductions | 2.06% A | 1.91% | 1.98% | 2.00% | 2.14% | 2.17% |
Expenses net of fee waivers, if any | 2.06% A | 1.91% | 1.98% | 2.00% | 2.14% | 2.17% |
Expenses net of all reductions | 2.04% A | 1.87% | 1.92% | 1.90% | 2.10% | 2.13% |
Net investment income (loss) | 1.12% A | .60% | .56% | .01% | (.54)% H | (.40)% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 40 | $ 46 | $ 41 | $ 38 | $ 40 | $ 41 |
Portfolio turnover rate G | 73% A | 66% | 65% | 120% | 85% | 99% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Net investment income per share includes approximately $.01 per share received as a result of a reorganization of an issuer that was in bankruptcy. Excluding this non-recurring amount, the ratio of net investment income (loss) to average net assets would have been (.57)%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount 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, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 27.35 | $ 22.06 | $ 18.64 | $ 16.09 | $ 14.60 | $ 11.11 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .25 | .40 | .35 | .21 | .10 G | .10 |
Net realized and unrealized gain (loss) | (2.68) | 6.26 | 3.58 | 2.50 | 1.56 | 3.39 |
Total from investment operations | (2.43) | 6.66 | 3.93 | 2.71 | 1.66 | 3.49 |
Distributions from net investment income | (.41) | (.31) | (.21) | (.10) | (.17) | - |
Distributions from net realized gain | (1.78) | (1.06) | (.30) | (.06) | - | - |
Total distributions | (2.19) | (1.37) | (.51) | (.16) | (.17) | - |
Redemption fees added to paid in capital D | - I | - I | - I | - I | - I | - |
Net asset value, end of period | $ 22.73 | $ 27.35 | $ 22.06 | $ 18.64 | $ 16.09 | $ 14.60 |
Total Return B,C | (9.47)% | 31.88% | 21.55% | 16.91% | 11.46% | 31.41% |
Ratios to Average Net Assets E,H | | | | | |
Expenses before reductions | .99% A | .84% | .87% | .83% | .98% | .93% |
Expenses net of fee waivers, if any | .99% A | .84% | .87% | .83% | .98% | .93% |
Expenses net of all reductions | .96% A | .81% | .81% | .73% | .93% | .89% |
Net investment income (loss) | 2.19% A | 1.66% | 1.67% | 1.18% | .62% G | .84% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 688 | $ 609 | $ 354 | $ 287 | $ 194 | $ 69 |
Portfolio turnover rate F | 73% A | 66% | 65% | 120% | 85% | 99% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Net investment income per share includes approximately $.01 per share received as a result of a reorganization of an issuer that was in bankruptcy. Excluding this non-recurring amount, the ratio of net investment income (loss) to average net assets would have been .59%. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements 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, 2008 (Unaudited)
(Amounts in thousands except ratios)
1. Organization.
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. 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.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
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. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued and net asset value (NAV) per share is calculated (NAV calculation) as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or do not accurately reflect fair value, valuations may be determined in accordance with procedures adopted by the Board of Trustees. For example, when developments occur between the close of a market and the close of the NYSE that may materially affect the value of some or all of the securities, or when trading in a security is halted, those securities may be fair valued. Factors used in the determination of fair value may include monitoring news to identify significant market or security specific events such as changes in the value of U.S. securities markets, reviewing developments in foreign markets and evaluating the performance of ADRs, futures contracts and exchange-traded funds. Because the Fund's utilization of fair value pricing depends on market activity, the frequency with which fair value pricing is used cannot be predicted and may be utilized to a significant extent. The value of securities used for NAV calculation under fair value pricing may differ from published prices for the same securities.
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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV for processing shareholder transactions includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. 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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. 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 each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not result in any unrecognized tax benefits in the accompanying financial statements. Each of the Fund's federal tax returns for the prior three fiscal years remains subject to examination by the Internal Revenue Service. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), deferred trustees compensation and losses deferred due to wash sales.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 249,151 | |
Unrealized depreciation | (63,929) | |
Net unrealized appreciation (depreciation) | $ 185,222 | |
Cost for federal income tax purposes | $ 1,391,981 | |
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 30 days are subject to a redemption fee equal to 1.00% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.
New Accounting Pronouncement. In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and results in expanded disclosures about fair value measurements.
4. Operating Policies.
Repurchase Agreements. 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 which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $566,264 and $501,887, respectively.
6. 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 .26% 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 .69% 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. 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 and the total amounts paid to and retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC |
Class A | 0% | .25% | $ 161 | $ 8 |
Class T | .25% | .25% | 1,558 | 34 |
Class B | .75% | .25% | 111 | 84 |
Class C | .75% | .25% | 202 | 13 |
| | | $ 2,032 | $ 139 |
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, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges 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, 1.00% to .50% for certain purchases of Class A shares and ..25% for certain purchases of Class T shares.
Semiannual Report
6. 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 | $ 12 |
Class T | 6 |
Class B* | 15 |
Class C* | 2 |
| $ 35 |
* 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 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 shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each class to FIIOC were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 193 | .30 |
Class T | 647 | .21 |
Class B | 33 | .30 |
Class C | 58 | .29 |
Institutional Class | 651 | .22 |
| $ 1,582 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $4.2 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, which amounted to $1
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
7. Committed Line of Credit - continued
and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, 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. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $572.
9. 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 included payments of certain expenses on behalf of the Fund totaling $175 for the period. 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. During the period, these credits reduced the Fund's custody expenses by $2. During the period, credits reduced each class' transfer agent expense as noted in the table below.
| Transfer Agent
expense reduction |
Class A | $ 2 |
Institutional Class | 12 |
| $ 14 |
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts
Semiannual Report
10. Other - continued
that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, the Fidelity Advisor Freedom Funds were the owners of record, in the aggregate, of approximately 34% of the total outstanding shares of the Fund.
In December 2006, the Independent Trustees, with the assistance of independent counsel, completed an investigation regarding gifts, gratuities and business entertainment provided by certain brokers to certain individuals who were employed on FMR's domestic equity trading desk during the period 2002 to 2004. The Independent Trustees and FMR agreed that, despite the absence of proof that the Fidelity mutual funds experienced diminished execution quality as a result of the improper receipt of gifts and business entertainment, the conduct at issue was serious and was worthy of redress. Accordingly, the Independent Trustees requested, and FMR agreed to make, a payment of $42 million plus accrued interest, which equaled approximately $7.3 million, to certain Fidelity mutual funds.
In March 2008, the Trustees approved a method for allocating this payment among the funds and, in total, FMR paid the fund $22, which is recorded in the accompanying Statement of Operations.
In a related administrative order dated March 5, 2008, the U.S. Securities and Exchange Commission ("SEC") announced a settlement with FMR and FMR Co., Inc. (an affiliate of FMR) involving the SEC's regulatory rules for investment advisers and the improper receipt of gifts, gratuities and business entertainment. Without admitting or denying the SEC's findings, FMR agreed to pay an $8 million civil penalty to the United States Treasury.
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30,
2008 | Year ended
October 31,
2007 |
From net investment income | | |
Class A | $ 1,785 | $ 1,166 |
Class T | 6,979 | 5,197 |
Class B | 73 | 26 |
Class C | 230 | 137 |
Institutional Class | 9,202 | 5,055 |
Total | $ 18,269 | $ 11,581 |
From net realized gain | | |
Class A | $ 9,778 | $ 5,467 |
Class T | 45,838 | 28,690 |
Class B | 1,798 | 1,858 |
Class C | 3,080 | 2,010 |
Institutional Class | 40,345 | 17,398 |
Total | $ 100,839 | $ 55,423 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
April 30,
2008 | Year ended
October 31,
2007 | Six months ended April 30,
2008 | Year ended
October 31,
2007 |
Class A | | | | |
Shares sold | 912 | 2,109 | $ 20,580 | $ 49,321 |
Reinvestment of distributions | 416 | 268 | 10,008 | 5,668 |
Shares redeemed | (1,096) | (2,108) | (24,412) | (48,883) |
Net increase (decrease) | 232 | 269 | $ 6,176 | $ 6,106 |
Class T | | | | |
Shares sold | 3,480 | 6,427 | $ 79,580 | $ 152,753 |
Reinvestment of distributions | 2,092 | 1,529 | 51,444 | 32,968 |
Shares redeemed | (4,451) | (9,269) | (101,442) | (220,331) |
Net increase (decrease) | 1,121 | (1,313) | $ 29,582 | $ (34,610) |
Class B | | | | |
Shares sold | 90 | 108 | $ 1,969 | $ 2,422 |
Reinvestment of distributions | 73 | 84 | 1,689 | 1,716 |
Shares redeemed | (289) | (936) | (6,229) | (20,830) |
Net increase (decrease) | (126) | (744) | $ (2,571) | $ (16,692) |
Class C | | | | |
Shares sold | 140 | 248 | $ 3,085 | $ 5,644 |
Reinvestment of distributions | 124 | 92 | 2,937 | 1,908 |
Shares redeemed | (204) | (512) | (4,473) | (11,719) |
Net increase (decrease) | 60 | (172) | $ 1,549 | $ (4,167) |
Institutional Class | | | | |
Shares sold | 7,445 | 6,884 | $ 168,395 | $ 164,033 |
Reinvestment of distributions | 1,898 | 1,020 | 46,435 | 21,884 |
Shares redeemed | (1,338) | (1,676) | (31,074) | (40,404) |
Net increase (decrease) | 8,005 | 6,228 | $ 183,756 | $ 145,513 |
Semiannual Report
A special meeting of the fund's shareholders was held on May 14, 2008. The results of votes taken among shareholders on the proposals before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1 |
To elect a Board of Trustees.A |
| # of
Votes | % of
Votes |
James C. Curvey |
Affirmative | 8,514,961,004.35 | 97.348 |
Withheld | 231,994,591.94 | 2.652 |
TOTAL | 8,746,955,596.29 | 100.000 |
Dennis J. Dirks |
Affirmative | 8,525,899,114.46 | 97.473 |
Withheld | 221,056,481.83 | 2.527 |
TOTAL | 8,746,955,596.29 | 100.000 |
Edward C. Johnson 3d |
Affirmative | 8,497,196,105.85 | 97.145 |
Withheld | 249,759,490.44 | 2.855 |
TOTAL | 8,746,955,596.29 | 100.000 |
Alan J. Lacy |
Affirmative | 8,522,858,760.40 | 97.438 |
Withheld | 224,096,835.89 | 2.562 |
TOTAL | 8,746,955,596.29 | 100.000 |
Ned C. Lautenbach |
Affirmative | 8,523,008,335.52 | 97.440 |
Withheld | 223,947,260.77 | 2.560 |
TOTAL | 8,746,955,596.29 | 100.000 |
Joseph Mauriello |
Affirmative | 8,524,890,199.58 | 97.461 |
Withheld | 222,065,396.71 | 2.539 |
TOTAL | 8,746,955,596.29 | 100.000 |
Cornelia M. Small |
Affirmative | 8,525,649,323.51 | 97.470 |
Withheld | 221,306,272.78 | 2.530 |
TOTAL | 8,746,955,596.29 | 100.000 |
William S. Stavropoulos |
Affirmative | 8,514,682,431.03 | 97.345 |
Withheld | 232,273,165.26 | 2.655 |
TOTAL | 8,746,955,596.29 | 100.000 |
David M. Thomas |
Affirmative | 8,526,972,729.02 | 97.485 |
Withheld | 219,982,867.27 | 2.515 |
TOTAL | 8,746,955,596.29 | 100.000 |
Michael E. Wiley |
Affirmative | 8,523,710,850.33 | 97.448 |
Withheld | 223,244,745.96 | 2.552 |
TOTAL | 8,746,955,596.29 | 100.000 |
PROPOSAL 2 |
To amend the Declaration of Trust of Fidelity Advisor Series VIII to reduce the required quorum for future shareholder meetings.A |
| # of
Votes | % of
Votes |
Affirmative | 4,574,398,791.46 | 52.297 |
Against | 2,140,778,913.08 | 24.475 |
Abstain | 230,752,610.67 | 2.638 |
Broker
Non-Votes | 1,801,025,281.08 | 20.590 |
TOTAL | 8,746,955,596.29 | 100.000 |
A Denotes trust-wide proposal and voting results.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Research & Analysis Company
Fidelity International
Investment Advisors
Fidelity Investments Japan Limited
Fidelity International Investment
Advisors (U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
The Northern Trust Company
Chicago, IL
OS-USAN-0608 1.784903.105
(Fidelity Investment logo)(registered trademark)
Fidelity® Advisor
Overseas
Fund - Institutional Class
Semiannual Report
April 30, 2008
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | Ned Johnson's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
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. |
Proxy Voting Results | <Click Here> | |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
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 LLC or an affiliated company.
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.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
Continuation of a credit squeeze, flat consumer spending and a potential recession weighed heavily on stocks in the opening months of 2008, though positive results in investment-grade bonds and money markets offered some comfort to investors. Financial markets are always unpredictable, but there are a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 1, 2007 to April 30, 2008).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Semiannual Report
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Beginning
Account Value
November 1, 2007 | Ending
Account Value
April 30, 2008 | Expenses Paid
During Period*
November 1, 2007
to April 30, 2008 |
Class A | | | |
Actual | $ 1,000.00 | $ 903.60 | $ 6.29 |
HypotheticalA | $ 1,000.00 | $ 1,018.25 | $ 6.67 |
Class T | | | |
Actual | $ 1,000.00 | $ 903.20 | $ 7.00 |
HypotheticalA | $ 1,000.00 | $ 1,017.50 | $ 7.42 |
Class B | | | |
Actual | $ 1,000.00 | $ 900.50 | $ 9.83 |
HypotheticalA | $ 1,000.00 | $ 1,014.52 | $ 10.42 |
Class C | | | |
Actual | $ 1,000.00 | $ 900.40 | $ 9.73 |
HypotheticalA | $ 1,000.00 | $ 1,014.62 | $ 10.32 |
Institutional Class | | | |
Actual | $ 1,000.00 | $ 905.30 | $ 4.69 |
HypotheticalA | $ 1,000.00 | $ 1,019.94 | $ 4.97 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
| Annualized
Expense Ratio |
Class A | 1.33% |
Class T | 1.48% |
Class B | 2.08% |
Class C | 2.06% |
Institutional Class | .99% |
Semiannual Report
Investment Changes (Unaudited)
Top Five Stocks as of April 30, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Alstom SA (France, Electrical Equipment) | 3.6 | 2.8 |
Man Group PLC (United Kingdom, Capital Markets) | 2.0 | 1.5 |
E.ON AG (Germany, Electric Utilities) | 1.9 | 1.5 |
CSL Ltd. (Australia, Biotechnology) | 1.9 | 1.6 |
Royal Dutch Shell PLC Class A (United Kingdom, Oil, Gas & Consumable Fuels) | 1.9 | 1.6 |
| 11.3 | |
Top Five Market Sectors as of April 30, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 22.5 | 21.3 |
Industrials | 12.4 | 18.2 |
Consumer Staples | 10.5 | 9.1 |
Energy | 9.3 | 7.9 |
Materials | 8.7 | 8.0 |
Top Five Countries as of April 30, 2008 |
(excluding cash equivalents) | % of fund's
net assets | % of fund's net assets
6 months ago |
United Kingdom | 25.2 | 20.4 |
France | 14.2 | 15.3 |
Japan | 9.8 | 12.1 |
Germany | 8.2 | 11.5 |
Australia | 5.3 | 6.7 |
Percentages are adjusted for the effect of open futures contracts, if applicable. |
Asset Allocation (% of fund's net assets) |
As of April 30, 2008 | As of October 31, 2007 |
| Stocks 93.6% | | | Stocks 96.9% | |
| Short-Term
Investments and
Net Other Assets 6.4% | | | Short-Term
Investments and
Net Other Assets 3.1% | |
Semiannual Report
Investments April 30, 2008 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 93.6% |
| Shares | | Value (000s) |
Argentina - 0.2% |
Cresud S.A.C.I.F. y A. sponsored ADR | 167,700 | | $ 2,742 |
Australia - 5.3% |
AMP Ltd. | 332,700 | | 2,457 |
Australian Wealth Management Ltd. | 953,300 | | 1,628 |
Babcock & Brown Wind Partners | 1,798,000 | | 2,680 |
BHP Billiton Ltd. | 340,619 | | 13,727 |
Charter Hall Group unit | 899,034 | | 1,225 |
Commonwealth Bank of Australia | 153,409 | | 6,490 |
Computershare Ltd. | 506,320 | | 4,274 |
CSL Ltd. | 763,926 | | 28,672 |
Energy Resources of Australia Ltd. | 116,410 | | 2,141 |
HFA Holdings Ltd. | 1,532,013 | | 1,546 |
Lion Nathan Ltd. | 523,765 | | 4,125 |
McGuigan Simeon Wines Ltd. (a) | 614,691 | | 957 |
National Australia Bank Ltd. | 97,184 | | 2,769 |
Rio Tinto Ltd. | 30,300 | | 3,889 |
Seek Ltd. | 226,300 | | 1,067 |
Silex Systems Ltd. (a) | 350,092 | | 1,912 |
TOTAL AUSTRALIA | | 79,559 |
Austria - 0.5% |
Strabag SE | 99,700 | | 7,004 |
Belgium - 0.5% |
Fortis | 90,300 | | 2,467 |
Hamon & Compagnie International SA (a) | 60,300 | | 2,964 |
KBC Groupe SA (d) | 10,100 | | 1,374 |
TOTAL BELGIUM | | 6,805 |
Bermuda - 0.4% |
Aquarius Platinum Ltd. (United Kingdom) | 192,900 | | 3,040 |
Covidien Ltd. | 77,700 | | 3,628 |
TOTAL BERMUDA | | 6,668 |
Brazil - 1.3% |
Banco do Brasil SA | 137,300 | | 2,379 |
Bolsa de Mercadorias & Futuros - BM&F SA | 169,700 | | 1,725 |
Gafisa SA sponsored ADR | 56,200 | | 2,448 |
MRV Engenharia e Participacoes SA | 267,600 | | 5,393 |
Uniao de Bancos Brasileiros SA (Unibanco) GDR | 18,400 | | 2,676 |
Common Stocks - continued |
| Shares | | Value (000s) |
Brazil - continued |
Vivo Participacoes SA (PN) sponsored ADR | 466,900 | | $ 3,152 |
Votorantim Celulose e Papel SA sponsored ADR (non-vtg.) | 40,600 | | 1,291 |
TOTAL BRAZIL | | 19,064 |
Canada - 0.8% |
Canadian Natural Resources Ltd. | 17,300 | | 1,470 |
OPTI Canada, Inc. (a) | 67,700 | | 1,433 |
Petrobank Energy & Resources Ltd. (a) | 46,700 | | 2,254 |
Potash Corp. of Saskatchewan, Inc. | 13,800 | | 2,539 |
Suncor Energy, Inc. | 13,000 | | 1,467 |
Talisman Energy, Inc. | 111,400 | | 2,253 |
TimberWest Forest Corp. | 74,200 | | 977 |
TOTAL CANADA | | 12,393 |
China - 0.4% |
Focus Media Holding Ltd. ADR (a) | 63,700 | | 2,350 |
Global Bio-Chem Technology Group Co. Ltd. | 2,824,000 | | 1,312 |
Home Inns & Hotels Management, Inc. sponsored ADR (a)(d) | 128,600 | | 2,882 |
TOTAL CHINA | | 6,544 |
Denmark - 1.8% |
Carlsberg AS Series B (d) | 57,800 | | 7,715 |
Novo Nordisk AS Series B | 96,700 | | 6,656 |
Novozymes AS Series B | 43,200 | | 3,950 |
Vestas Wind Systems AS (a) | 75,400 | | 8,266 |
TOTAL DENMARK | | 26,587 |
Finland - 1.4% |
Fortum Oyj | 81,000 | | 3,448 |
Neste Oil Oyj (d) | 93,400 | | 2,836 |
Nokia Corp. (d) | 286,700 | | 8,617 |
Nokian Tyres Ltd. | 147,329 | | 6,286 |
TOTAL FINLAND | | 21,187 |
France - 14.2% |
Alstom SA | 229,400 | | 53,357 |
AXA SA | 151,673 | | 5,603 |
BNP Paribas SA | 125,681 | | 13,587 |
Bouygues SA (d) | 75,800 | | 5,682 |
Carrefour SA | 113,700 | | 8,028 |
CNP Assurances (d) | 27,800 | | 3,307 |
Compagnie Generale de Geophysique SA (a) | 4,600 | | 1,162 |
France Telecom SA | 73,400 | | 2,296 |
Common Stocks - continued |
| Shares | | Value (000s) |
France - continued |
Groupe Danone | 93,000 | | $ 8,252 |
Ingenico SA | 184,600 | | 6,239 |
L'Air Liquide SA | 59,780 | | 9,026 |
L'Oreal SA | 56,734 | | 6,750 |
Meetic (a) | 33,500 | | 894 |
Natixis SA | 107,200 | | 1,809 |
Sanofi-Aventis sponsored ADR | 56,200 | | 2,168 |
Seche Environment SA | 8,400 | | 1,224 |
Societe Generale Series A | 23,670 | | 2,777 |
Sodexho Alliance SA (d) | 88,900 | | 5,968 |
Suez SA (France) | 180,700 | | 12,835 |
Total SA: | | | |
Series B | 153,388 | | 12,846 |
sponsored ADR | 98,300 | | 8,257 |
Unibail-Rodamco | 29,300 | | 7,578 |
Veolia Environnement | 355,575 | | 25,834 |
Vilmorin & Cie | 12,200 | | 2,282 |
Vivendi | 86,854 | | 3,535 |
TOTAL FRANCE | | 211,296 |
Germany - 8.2% |
Allianz AG (Reg.) | 39,100 | | 7,943 |
Bayer AG (d) | 42,600 | | 3,644 |
Beiersdorf AG (d) | 130,600 | | 11,150 |
Commerzbank AG | 176,300 | | 6,413 |
Daimler AG (Reg.) | 44,800 | | 3,483 |
Deutsche Bank AG | 30,100 | | 3,588 |
Deutsche Boerse AG | 39,500 | | 5,810 |
Deutsche Postbank AG | 44,000 | | 3,869 |
Deutsche Telekom AG (Reg.) | 33,300 | | 596 |
E.ON AG (d) | 142,179 | | 29,012 |
ESCADA AG (a)(d) | 135,688 | | 2,648 |
Fresenius AG | 53,800 | | 4,564 |
GFK AG | 62,893 | | 2,872 |
K&S AG | 9,900 | | 4,166 |
MLP AG (d) | 445,900 | | 7,483 |
Q-Cells AG (a)(d) | 36,700 | | 4,298 |
RWE AG | 59,700 | | 6,891 |
SAP AG sponsored ADR (d) | 98,000 | | 4,923 |
Siemens AG sponsored ADR | 14,000 | | 1,658 |
Vossloh AG | 53,800 | | 7,806 |
TOTAL GERMANY | | 122,817 |
Common Stocks - continued |
| Shares | | Value (000s) |
Greece - 0.5% |
Public Power Corp. of Greece | 160,600 | | $ 6,789 |
Hong Kong - 1.5% |
China Unicom Ltd. | 4,614,000 | | 10,012 |
China Unicom Ltd. sponsored ADR | 418,900 | | 9,036 |
Dynasty Fine Wines Group Ltd. | 714,000 | | 142 |
Esprit Holdings Ltd. | 215,100 | | 2,647 |
TOTAL HONG KONG | | 21,837 |
India - 0.2% |
Satyam Computer Services Ltd. sponsored ADR | 115,300 | | 2,961 |
Indonesia - 0.2% |
PT Bumi Resources Tbk | 4,096,000 | | 2,954 |
Ireland - 0.2% |
Irish Life & Permanent PLC | 205,400 | | 3,298 |
Israel - 0.6% |
Israel Chemicals Ltd. | 133,600 | | 2,460 |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 123,900 | | 5,796 |
TOTAL ISRAEL | | 8,256 |
Italy - 3.8% |
A2A SpA | 474,200 | | 1,751 |
Alleanza Assicurazioni SpA | 456,700 | | 6,000 |
Assicurazioni Generali SpA | 145,750 | | 6,491 |
Edison SpA | 1,075,800 | | 2,670 |
ENI SpA | 241,991 | | 9,323 |
Finmeccanica SpA | 319,300 | | 11,165 |
Intesa Sanpaolo SpA | 574,600 | | 4,313 |
Lottomatica SpA | 56,000 | | 1,734 |
MARR SpA | 122,400 | | 1,296 |
Saipem SpA | 103,700 | | 4,570 |
UniCredit SpA | 1,062,400 | | 8,095 |
TOTAL ITALY | | 57,408 |
Japan - 9.8% |
Canon, Inc. | 56,600 | | 2,845 |
Ibiden Co. Ltd. | 72,400 | | 3,159 |
Iino Kaiun Kaisha Ltd. | 164,700 | | 1,855 |
Japan Steel Works Ltd. | 330,000 | | 6,105 |
Japan Tobacco, Inc. | 1,240 | | 6,029 |
KDDI Corp. | 228 | | 1,464 |
Matsui Securities Co. Ltd. (d) | 251,700 | | 1,769 |
Mitsubishi Corp. | 98,100 | | 3,158 |
Common Stocks - continued |
| Shares | | Value (000s) |
Japan - continued |
Mitsubishi Electric Corp. | 197,000 | | $ 2,018 |
Mitsubishi Estate Co. Ltd. | 146,000 | | 4,245 |
Mitsubishi UFJ Financial Group, Inc. | 1,045,400 | | 11,518 |
Mitsui & Co. Ltd. | 145,000 | | 3,405 |
Mizuho Financial Group, Inc. | 992 | | 5,162 |
Nafco Co. Ltd. | 61,100 | | 938 |
NGK Insulators Ltd. | 269,000 | | 5,180 |
Nidec Corp. | 36,100 | | 2,727 |
Nomura Holdings, Inc. | 648,200 | | 11,317 |
Nomura Holdings, Inc. sponsored ADR | 88,500 | | 1,541 |
NSK Ltd. | 617,000 | | 5,141 |
NTT DoCoMo, Inc. | 1,830 | | 2,688 |
Point, Inc. | 45,360 | | 2,004 |
Rakuten, Inc. | 6,375 | | 3,982 |
Sony Corp. | 37,700 | | 1,738 |
Sony Corp. sponsored ADR | 25,700 | | 1,177 |
Sumitomo Metal Industries Ltd. | 425,000 | | 1,790 |
Sumitomo Mitsui Financial Group, Inc. | 2,872 | | 24,711 |
Sumitomo Trust & Banking Co. Ltd. | 610,000 | | 5,484 |
T&D Holdings, Inc. | 107,800 | | 6,903 |
Tokai Carbon Co. Ltd. | 139,000 | | 1,456 |
Toyo Tanso Co. Ltd. | 15,900 | | 1,278 |
Toyota Motor Corp. | 183,000 | | 9,325 |
USS Co. Ltd. | 48,180 | | 3,421 |
TOTAL JAPAN | | 145,533 |
Korea (South) - 0.3% |
Doosan Heavy Industries & Construction Co. Ltd. | 40,130 | | 4,220 |
Luxembourg - 1.2% |
ArcelorMittal SA: | | | |
(France) | 62,700 | | 5,559 |
(NY Reg.) Class A | 49,100 | | 4,374 |
Evraz Group SA GDR | 23,200 | | 2,407 |
SES SA (A Shares) FDR unit | 213,304 | | 5,261 |
TOTAL LUXEMBOURG | | 17,601 |
Malaysia - 0.3% |
Gamuda Bhd | 5,227,900 | | 5,163 |
Mexico - 0.1% |
America Movil SAB de CV Series L sponsored ADR | 31,100 | | 1,803 |
Netherlands - 1.4% |
ASML Holding NV (NY Shares) | 49,300 | | 1,398 |
Common Stocks - continued |
| Shares | | Value (000s) |
Netherlands - continued |
ING Groep NV (Certificaten Van Aandelen) | 48,946 | | $ 1,854 |
Koninklijke KPN NV | 379,400 | | 6,980 |
Koninklijke Philips Electronics NV (NY Shares) | 55,400 | | 2,081 |
Unilever NV (NY Shares) | 265,500 | | 8,905 |
TOTAL NETHERLANDS | | 21,218 |
Norway - 1.6% |
Acta Holding ASA (d) | 330,400 | | 1,194 |
Lighthouse Caledonia ASA | 26,435 | | 25 |
Marine Harvest ASA (a) | 3,110,000 | | 2,059 |
Norwegian Property ASA | 225,400 | | 1,966 |
Orkla ASA (A Shares) (d) | 449,700 | | 5,972 |
Petroleum Geo-Services ASA | 296,200 | | 8,089 |
StatoilHydro ASA | 119,200 | | 4,321 |
TOTAL NORWAY | | 23,626 |
Panama - 0.1% |
McDermott International, Inc. (a) | 36,000 | | 1,929 |
Portugal - 0.2% |
Energias de Portugal SA | 513,200 | | 3,253 |
South Africa - 0.5% |
Exxaro Resources Ltd. | 109,400 | | 1,809 |
Gold Fields Ltd. sponsored ADR | 130,100 | | 1,756 |
Impala Platinum Holdings Ltd. | 83,600 | | 3,406 |
TOTAL SOUTH AFRICA | | 6,971 |
Spain - 1.9% |
Banco Santander SA sponsored ADR | 316,100 | | 6,667 |
Repsol YPF SA sponsored ADR | 79,600 | | 3,229 |
Telefonica SA | 519,648 | | 14,929 |
Telefonica SA sponsored ADR | 47,200 | | 4,077 |
TOTAL SPAIN | | 28,902 |
Sweden - 1.2% |
Skandinaviska Enskilda Banken AB (A Shares) | 133,000 | | 3,232 |
Svenska Cellulosa AB (SCA) (B Shares) (d) | 246,000 | | 4,150 |
Swedish Match Co. (d) | 440,600 | | 9,676 |
Telefonaktiebolaget LM Ericsson (B Shares) sponsored ADR (d) | 63,900 | | 1,612 |
TOTAL SWEDEN | | 18,670 |
Switzerland - 4.7% |
Compagnie Financiere Richemont unit | 94,716 | | 5,771 |
Common Stocks - continued |
| Shares | | Value (000s) |
Switzerland - continued |
Credit Suisse Group (Reg.) | 53,291 | | $ 2,967 |
EFG International | 60,660 | | 1,940 |
Julius Baer Holding AG | 47,842 | | 3,550 |
Nestle SA (Reg.) | 35,396 | | 16,974 |
Novartis AG sponsored ADR | 82,400 | | 4,147 |
Roche Holding AG (participation certificate) | 34,223 | | 5,706 |
SGS Societe Generale de Surveillance Holding SA (Reg.) | 9,443 | | 13,348 |
Sonova Holding AG | 36,610 | | 3,098 |
Swisscom AG (Reg.) | 13,348 | | 4,765 |
UBS AG: | | | |
(For. Reg.) | 78,021 | | 2,581 |
(For. Reg.) rights 5/9/08 (a) | 78,021 | | 132 |
(NY Shares) | 74,500 | | 2,502 |
(NY Shares) rights 5/9/08 (a) | 74,500 | | 125 |
Zurich Financial Services AG (Reg.) | 7,048 | | 2,157 |
TOTAL SWITZERLAND | | 69,763 |
Thailand - 0.2% |
Bangkok Bank Ltd. PCL (For. Reg.) | 281,900 | | 1,244 |
Krung Thai Bank PCL (For. Reg.) | 2,697,800 | | 876 |
Siam Commercial Bank PCL (For. Reg.) | 473,200 | | 1,328 |
TOTAL THAILAND | | 3,448 |
United Kingdom - 25.2% |
Anglo American PLC: | | | |
ADR | 147,846 | | 4,842 |
(United Kingdom) | 113,659 | | 7,387 |
AstraZeneca PLC sponsored ADR | 90,000 | | 3,778 |
Barclays PLC | 381,700 | | 3,451 |
BG Group PLC | 729,100 | | 17,845 |
BHP Billiton PLC | 299,902 | | 10,733 |
BP PLC | 1,670,608 | | 20,243 |
BP PLC sponsored ADR | 8,100 | | 590 |
British American Tobacco PLC | 156,900 | | 5,885 |
BT Group PLC | 103,000 | | 453 |
BT Group PLC sponsored ADR | 36,900 | | 1,629 |
Cadbury Schweppes PLC sponsored ADR | 58,900 | | 2,715 |
Centrica PLC | 1,110,000 | | 6,488 |
Climate Exchange PLC (a) | 42,200 | | 1,519 |
Diageo PLC | 575,200 | | 11,731 |
DSG International PLC | 1,308,800 | | 1,704 |
GlaxoSmithKline PLC | 574,600 | | 12,710 |
Common Stocks - continued |
| Shares | | Value (000s) |
United Kingdom - continued |
Hammerson PLC | 140,800 | | $ 2,822 |
HBOS PLC | 310,000 | | 2,900 |
HSBC Holdings PLC: | | | |
(Hong Kong) (Reg.) | 150,400 | | 2,607 |
(United Kingdom) (Reg.) | 343,567 | | 5,965 |
sponsored ADR (d) | 126,700 | | 10,996 |
Icap PLC | 407,700 | | 4,750 |
Imperial Tobacco Group PLC sponsored ADR | 4,300 | | 413 |
Informa PLC | 247,000 | | 1,697 |
InterContinental Hotel Group PLC | 146,573 | | 2,363 |
International Power PLC | 1,237,600 | | 10,808 |
Intertek Group PLC | 260,100 | | 5,032 |
Jardine Lloyd Thompson Group PLC | 1,136,600 | | 8,361 |
Lloyds TSB Group PLC | 492,600 | | 4,236 |
M&C Saatchi | 500,100 | | 1,099 |
Man Group PLC | 2,606,171 | | 30,132 |
Misys PLC | 304,500 | | 949 |
NDS Group PLC sponsored ADR (a) | 52,700 | | 2,711 |
New Star Asset Management Group PLC | 1,650,100 | | 3,986 |
Prudential PLC | 694,400 | | 9,526 |
QinetiQ Group PLC | 813,800 | | 3,139 |
Reed Elsevier PLC | 1,097,277 | | 13,919 |
Rio Tinto PLC: | | | |
(Reg.) | 43,618 | | 5,085 |
sponsored ADR | 9,100 | | 4,277 |
Royal Bank of Scotland Group PLC | 779,100 | | 5,344 |
Royal Dutch Shell PLC: | | | |
Class A (United Kingdom) | 312,900 | | 12,617 |
Class A sponsored ADR | 195,000 | | 15,660 |
Class B | 65,800 | | 2,622 |
Scottish & Southern Energy PLC | 236,700 | | 6,551 |
Shanks Group PLC | 1,079,000 | | 5,363 |
Signet Group PLC | 3,303,400 | | 4,515 |
Smith & Nephew PLC sponsored ADR | 32,100 | | 2,078 |
Spice PLC | 241,200 | | 2,652 |
SSL International PLC | 189,600 | | 1,732 |
Standard Chartered PLC (United Kingdom) | 79,700 | | 2,843 |
Taylor Nelson Sofres PLC | 2,566,100 | | 10,344 |
Tesco PLC | 2,090,700 | | 17,833 |
Vodafone Group PLC | 6,036,969 | | 19,104 |
Vodafone Group PLC sponsored ADR | 101,600 | | 3,217 |
Common Stocks - continued |
| Shares | | Value (000s) |
United Kingdom - continued |
William Morrison Supermarkets PLC | 1,385,200 | | $ 7,891 |
Xstrata PLC | 50,266 | | 3,944 |
TOTAL UNITED KINGDOM | | 375,786 |
United States of America - 2.9% |
ADA-ES, Inc. (a) | 71,200 | | 768 |
Becton, Dickinson & Co. | 34,100 | | 3,049 |
Calgon Carbon Corp. (a)(d) | 724,300 | | 10,321 |
Estee Lauder Companies, Inc. Class A | 286,600 | | 13,072 |
FMC Corp. | 34,700 | | 2,178 |
Fuel Tech, Inc. (a)(d) | 106,100 | | 2,727 |
GSE Systems, Inc. (a) | 160,200 | | 1,314 |
Hypercom Corp. (a) | 258,800 | | 1,105 |
Monsanto Co. | 16,900 | | 1,927 |
Sunpower Corp. Class A (a)(d) | 42,100 | | 3,674 |
Visa, Inc. | 34,700 | | 2,896 |
TOTAL UNITED STATES OF AMERICA | | 43,031 |
TOTAL COMMON STOCKS (Cost $1,210,228) | 1,397,086 |
Money Market Funds - 12.1% |
| | | |
Fidelity Cash Central Fund, 2.51% (b) | 74,846,036 | | 74,846 |
Fidelity Securities Lending Cash Central Fund, 2.44% (b)(c) | 105,270,735 | | 105,271 |
TOTAL MONEY MARKET FUNDS (Cost $180,117) | 180,117 |
TOTAL INVESTMENT PORTFOLIO - 105.7% (Cost $1,390,345) | | 1,577,203 |
NET OTHER ASSETS - (5.7)% | | (84,875) |
NET ASSETS - 100% | $ 1,492,328 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned
(Amounts in thousands) |
Fidelity Cash Central Fund | $ 1,300 |
Fidelity Securities Lending Cash Central Fund | 572 |
Total | $ 1,872 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | April 30, 2008
(Unaudited) |
Assets | | |
Investment in securities, at value (including securities loaned of $101,820) - See accompanying schedule: Unaffiliated issuers (cost $1,210,228) | $ 1,397,086 | |
Fidelity Central Funds (cost $180,117) | 180,117 | |
Total Investments (cost $1,390,345) | | $ 1,577,203 |
Cash | | 55 |
Foreign currency held at value (cost $1,255) | | 1,258 |
Receivable for investments sold | | 21,183 |
Receivable for fund shares sold | | 1,572 |
Dividends receivable | | 5,672 |
Distributions receivable from Fidelity Central Funds | | 464 |
Prepaid expenses | | 3 |
Other receivables | | 190 |
Total assets | | 1,607,600 |
| | |
Liabilities | | |
Payable for investments purchased | $ 6,928 | |
Payable for fund shares redeemed | 1,532 | |
Accrued management fee | 844 | |
Distribution fees payable | 328 | |
Other affiliated payables | 311 | |
Other payables and accrued expenses | 58 | |
Collateral on securities loaned, at value | 105,271 | |
Total liabilities | | 115,272 |
| | |
Net Assets | | $ 1,492,328 |
Net Assets consist of: | | |
Paid in capital | | $ 1,250,970 |
Undistributed net investment income | | 9,948 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | 44,574 |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | 186,836 |
Net Assets | | $ 1,492,328 |
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, 2008
(Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($127,046 ÷ 5,693.4 shares) | | $ 22.31 |
| | |
Maximum offering price per share (100/94.25 of $22.31) | | $ 23.67 |
Class T:
Net Asset Value and redemption price per share ($617,459 ÷ 27,084.3 shares) | | $ 22.80 |
| | |
Maximum offering price per share (100/96.50 of $22.80) | | $ 23.63 |
Class B:
Net Asset Value and offering price per share
($19,899 ÷ 925.2 shares)A | | $ 21.51 |
| | |
Class C:
Net Asset Value and offering price per share
($39,562 ÷ 1,811.5 shares)A | | $ 21.84 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($688,362 ÷ 30,286.0 shares) | | $ 22.73 |
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, 2008 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 21,839 |
Interest | | 4 |
Income from Fidelity Central Funds | | 1,872 |
| | 23,715 |
Less foreign taxes withheld | | (1,408) |
Total income | | 22,307 |
| | |
Expenses | | |
Management fee
Basic fee | $ 4,988 | |
Performance adjustment | (122) | |
Transfer agent fees | 1,582 | |
Distribution fees | 2,032 | |
Accounting and security lending fees | 321 | |
Custodian fees and expenses | 124 | |
Independent trustees' compensation | 3 | |
Registration fees | 53 | |
Audit | 44 | |
Legal | 3 | |
Miscellaneous | 67 | |
Total expenses before reductions | 9,095 | |
Expense reductions | (191) | 8,904 |
Net investment income (loss) | | 13,403 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers (net of foreign taxes of $2) | 50,607 | |
Foreign currency transactions | (233) | |
Total net realized gain (loss) | | 50,374 |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of decrease in deferred foreign taxes of $31) | (210,150) | |
Assets and liabilities in foreign currencies | 9 | |
Total change in net unrealized appreciation (depreciation) | | (210,141) |
Net gain (loss) | | (159,767) |
Net increase (decrease) in net assets resulting from operations | | $ (146,364) |
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, 2008
(Unaudited) | Year ended
October 31,
2007 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 13,403 | $ 17,399 |
Net realized gain (loss) | 50,374 | 114,203 |
Change in net unrealized appreciation (depreciation) | (210,141) | 232,103 |
Net increase (decrease) in net assets resulting
from operations | (146,364) | 363,705 |
Distributions to shareholders from net investment income | (18,269) | (11,581) |
Distributions to shareholders from net realized gain | (100,839) | (55,423) |
Total distributions | (119,108) | (67,004) |
Share transactions - net increase (decrease) | 218,492 | 96,150 |
Redemption fees | 40 | 58 |
Total increase (decrease) in net assets | (46,940) | 392,909 |
| | |
Net Assets | | |
Beginning of period | 1,539,268 | 1,146,359 |
End of period (including undistributed net investment income of $9,948 and undistributed net investment income of $16,730, respectively) | $ 1,492,328 | $ 1,539,268 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended
April 30, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 26.85 | $ 21.67 | $ 18.36 | $ 15.86 | $ 14.41 | $ 11.01 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .21 | .31 | .27 | .13 | .04 H | .05 |
Net realized and unrealized gain (loss) | (2.64) | 6.16 | 3.53 | 2.47 | 1.54 | 3.35 |
Total from investment operations | (2.43) | 6.47 | 3.80 | 2.60 | 1.58 | 3.40 |
Distributions from net investment income | (.33) | (.23) | (.19) | (.04) | (.13) | - |
Distributions from net realized gain | (1.78) | (1.06) | (.30) | (.06) | - | - |
Total distributions | (2.11) | (1.29) | (.49) | (.10) | (.13) | - |
Redemption fees added to paid in capital E | - J | - J | - J | - J | - J | - |
Net asset value, end of period | $ 22.31 | $ 26.85 | $ 21.67 | $ 18.36 | $ 15.86 | $ 14.41 |
Total Return B,C,D | (9.64)% | 31.44% | 21.12% | 16.44% | 11.03% | 30.88% |
Ratios to Average Net Assets F,I | | | | | |
Expenses before reductions | 1.33% A | 1.17% | 1.24% | 1.24% | 1.36% | 1.34% |
Expenses net of fee waivers, if any | 1.33% A | 1.17% | 1.24% | 1.24% | 1.36% | 1.34% |
Expenses net of all reductions | 1.30% A | 1.13% | 1.17% | 1.15% | 1.32% | 1.30% |
Net investment income (loss) | 1.86% A | 1.34% | 1.31% | .76% | .24% H | .43% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 127 | $ 147 | $ 113 | $ 133 | $ 115 | $ 68 |
Portfolio turnover rate G | 73% A | 66% | 65% | 120% | 85% | 99% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Net investment income per share includes approximately $.01 per share received as a result of a reorganization of an issuer that was in bankruptcy. Excluding this non-recurring amount, the ratio of net investment income (loss) to average net assets would have been .21%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J 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, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 27.35 | $ 22.05 | $ 18.64 | $ 16.09 | $ 14.61 | $ 11.18 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .20 | .28 | .24 | .11 | .02 H | .04 |
Net realized and unrealized gain (loss) | (2.70) | 6.27 | 3.59 | 2.51 | 1.56 | 3.39 |
Total from investment operations | (2.50) | 6.55 | 3.83 | 2.62 | 1.58 | 3.43 |
Distributions from net investment income | (.27) | (.19) | (.12) | (.01) | (.10) | - |
Distributions from net realized gain | (1.78) | (1.06) | (.30) | (.06) | - | - |
Total distributions | (2.05) | (1.25) | (.42) | (.07) | (.10) | - |
Redemption fees added to paid in capital E | - J | - J | - J | - J | - J | - |
Net asset value, end of period | $ 22.80 | $ 27.35 | $ 22.05 | $ 18.64 | $ 16.09 | $ 14.61 |
Total Return B,C,D | (9.68)% | 31.24% | 20.92% | 16.31% | 10.86% | 30.68% |
Ratios to Average Net Assets F,I | | | | | |
Expenses before reductions | 1.48% A | 1.33% | 1.39% | 1.36% | 1.48% | 1.46% |
Expenses net of fee waivers, if any | 1.48% A | 1.33% | 1.39% | 1.36% | 1.48% | 1.46% |
Expenses net of all reductions | 1.46% A | 1.30% | 1.33% | 1.27% | 1.43% | 1.42% |
Net investment income (loss) | 1.70% A | 1.17% | 1.15% | .64% | .12% H | .31% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 617 | $ 710 | $ 602 | $ 582 | $ 1,181 | $ 1,114 |
Portfolio turnover rate G | 73% A | 66% | 65% | 120% | 85% | 99% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Net investment income per share includes approximately $.01per share received as a result of a reorganization of an issuer that was in bankruptcy. Excluding this non-recurring amount, the ratio of net investment income (loss) to average net assets would have been .09%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J 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, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 25.79 | $ 20.81 | $ 17.63 | $ 15.26 | $ 13.87 | $ 10.71 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .12 | .12 | .10 | (.01) | (.10) H | (.06) |
Net realized and unrealized gain (loss) | (2.55) | 5.94 | 3.40 | 2.38 | 1.50 | 3.22 |
Total from investment operations | (2.43) | 6.06 | 3.50 | 2.37 | 1.40 | 3.16 |
Distributions from net investment income | (.07) | (.02) | (.02) | - | (.01) | - |
Distributions from net realized gain | (1.78) | (1.06) | (.30) | - | - | - |
Total distributions | (1.85) | (1.08) | (.32) | - | (.01) | - |
Redemption fees added to paid in capital E | - J | - J | - J | - J | - J | - |
Net asset value, end of period | $ 21.51 | $ 25.79 | $ 20.81 | $ 17.63 | $ 15.26 | $ 13.87 |
Total Return B,C,D | (9.95)% | 30.45% | 20.12% | 15.53% | 10.10% | 29.51% |
Ratios to Average Net Assets F,I | | | | | |
Expenses before reductions | 2.08% A | 1.94% | 2.05% | 2.04% | 2.25% | 2.27% |
Expenses net of fee waivers, if any | 2.08% A | 1.94% | 2.05% | 2.04% | 2.25% | 2.27% |
Expenses net of all reductions | 2.05% A | 1.91% | 1.99% | 1.95% | 2.21% | 2.22% |
Net investment income (loss) | 1.11% A | .56% | .49% | (.04)% | (.65)% H | (.49)% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 20 | $ 27 | $ 37 | $ 47 | $ 57 | $ 59 |
Portfolio turnover rate G | 73% A | 66% | 65% | 120% | 85% | 99% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Net investment income per share includes approximately $.01 per share received as a result of a reorganization of an issuer that was in bankruptcy. Excluding this non-recurring amount, the ratio of net investment income (loss) to average net assets would have been (.68)%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount 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, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 26.22 | $ 21.19 | $ 17.95 | $ 15.53 | $ 14.11 | $ 10.88 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .12 | .14 | .11 | - J | (.08) H | (.05) |
Net realized and unrealized gain (loss) | (2.59) | 6.02 | 3.47 | 2.42 | 1.52 | 3.28 |
Total from investment operations | (2.47) | 6.16 | 3.58 | 2.42 | 1.44 | 3.23 |
Distributions from net investment income | (.13) | (.07) | (.04) | - | (.02) | - |
Distributions from net realized gain | (1.78) | (1.06) | (.30) | - | - | - |
Total distributions | (1.91) | (1.13) | (.34) | - | (.02) | - |
Redemption fees added to paid in capital E | - J | - J | - J | - J | - J | - |
Net asset value, end of period | $ 21.84 | $ 26.22 | $ 21.19 | $ 17.95 | $ 15.53 | $ 14.11 |
Total Return B,C,D | (9.96)% | 30.48% | 20.22% | 15.58% | 10.21% | 29.69% |
Ratios to Average Net Assets F,I | | | | | |
Expenses before reductions | 2.06% A | 1.91% | 1.98% | 2.00% | 2.14% | 2.17% |
Expenses net of fee waivers, if any | 2.06% A | 1.91% | 1.98% | 2.00% | 2.14% | 2.17% |
Expenses net of all reductions | 2.04% A | 1.87% | 1.92% | 1.90% | 2.10% | 2.13% |
Net investment income (loss) | 1.12% A | .60% | .56% | .01% | (.54)% H | (.40)% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 40 | $ 46 | $ 41 | $ 38 | $ 40 | $ 41 |
Portfolio turnover rate G | 73% A | 66% | 65% | 120% | 85% | 99% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. H Net investment income per share includes approximately $.01 per share received as a result of a reorganization of an issuer that was in bankruptcy. Excluding this non-recurring amount, the ratio of net investment income (loss) to average net assets would have been (.57)%. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. J Amount 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, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003 |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 27.35 | $ 22.06 | $ 18.64 | $ 16.09 | $ 14.60 | $ 11.11 |
Income from Investment Operations | | | | | | |
Net investment income (loss) D | .25 | .40 | .35 | .21 | .10 G | .10 |
Net realized and unrealized gain (loss) | (2.68) | 6.26 | 3.58 | 2.50 | 1.56 | 3.39 |
Total from investment operations | (2.43) | 6.66 | 3.93 | 2.71 | 1.66 | 3.49 |
Distributions from net investment income | (.41) | (.31) | (.21) | (.10) | (.17) | - |
Distributions from net realized gain | (1.78) | (1.06) | (.30) | (.06) | - | - |
Total distributions | (2.19) | (1.37) | (.51) | (.16) | (.17) | - |
Redemption fees added to paid in capital D | - I | - I | - I | - I | - I | - |
Net asset value, end of period | $ 22.73 | $ 27.35 | $ 22.06 | $ 18.64 | $ 16.09 | $ 14.60 |
Total Return B,C | (9.47)% | 31.88% | 21.55% | 16.91% | 11.46% | 31.41% |
Ratios to Average Net Assets E,H | | | | | |
Expenses before reductions | .99% A | .84% | .87% | .83% | .98% | .93% |
Expenses net of fee waivers, if any | .99% A | .84% | .87% | .83% | .98% | .93% |
Expenses net of all reductions | .96% A | .81% | .81% | .73% | .93% | .89% |
Net investment income (loss) | 2.19% A | 1.66% | 1.67% | 1.18% | .62% G | .84% |
Supplemental Data | | | | | | |
Net assets, end of period (in millions) | $ 688 | $ 609 | $ 354 | $ 287 | $ 194 | $ 69 |
Portfolio turnover rate F | 73% A | 66% | 65% | 120% | 85% | 99% |
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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. F Amount does not include the portfolio activity of any underlying Fidelity Central Funds. G Net investment income per share includes approximately $.01 per share received as a result of a reorganization of an issuer that was in bankruptcy. Excluding this non-recurring amount, the ratio of net investment income (loss) to average net assets would have been .59%. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements 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, 2008 (Unaudited)
(Amounts in thousands except ratios)
1. Organization.
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. 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.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
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. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued and net asset value (NAV) per share is calculated (NAV calculation) as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or do not accurately reflect fair value, valuations may be determined in accordance with procedures adopted by the Board of Trustees. For example, when developments occur between the close of a market and the close of the NYSE that may materially affect the value of some or all of the securities, or when trading in a security is halted, those securities may be fair valued. Factors used in the determination of fair value may include monitoring news to identify significant market or security specific events such as changes in the value of U.S. securities markets, reviewing developments in foreign markets and evaluating the performance of ADRs, futures contracts and exchange-traded funds. Because the Fund's utilization of fair value pricing depends on market activity, the frequency with which fair value pricing is used cannot be predicted and may be utilized to a significant extent. The value of securities used for NAV calculation under fair value pricing may differ from published prices for the same securities.
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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV for processing shareholder transactions includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. 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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. 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 each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not result in any unrecognized tax benefits in the accompanying financial statements. Each of the Fund's federal tax returns for the prior three fiscal years remains subject to examination by the Internal Revenue Service. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), deferred trustees compensation and losses deferred due to wash sales.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 249,151 | |
Unrealized depreciation | (63,929) | |
Net unrealized appreciation (depreciation) | $ 185,222 | |
Cost for federal income tax purposes | $ 1,391,981 | |
Short-Term Trading (Redemption) Fees. Shares held in the Fund less than 30 days are subject to a redemption fee equal to 1.00% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.
New Accounting Pronouncement. In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and results in expanded disclosures about fair value measurements.
4. Operating Policies.
Repurchase Agreements. 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 which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $566,264 and $501,887, respectively.
6. 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 .26% 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 .69% 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. 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 and the total amounts paid to and retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC |
Class A | 0% | .25% | $ 161 | $ 8 |
Class T | .25% | .25% | 1,558 | 34 |
Class B | .75% | .25% | 111 | 84 |
Class C | .75% | .25% | 202 | 13 |
| | | $ 2,032 | $ 139 |
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, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges 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, 1.00% to .50% for certain purchases of Class A shares and ..25% for certain purchases of Class T shares.
Semiannual Report
6. 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 | $ 12 |
Class T | 6 |
Class B* | 15 |
Class C* | 2 |
| $ 35 |
* 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 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 shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each class to FIIOC were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 193 | .30 |
Class T | 647 | .21 |
Class B | 33 | .30 |
Class C | 58 | .29 |
Institutional Class | 651 | .22 |
| $ 1,582 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $4.2 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, which amounted to $1
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
7. Committed Line of Credit - continued
and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, 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. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $572.
9. 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 included payments of certain expenses on behalf of the Fund totaling $175 for the period. 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. During the period, these credits reduced the Fund's custody expenses by $2. During the period, credits reduced each class' transfer agent expense as noted in the table below.
| Transfer Agent
expense reduction |
Class A | $ 2 |
Institutional Class | 12 |
| $ 14 |
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts
Semiannual Report
10. Other - continued
that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, the Fidelity Advisor Freedom Funds were the owners of record, in the aggregate, of approximately 34% of the total outstanding shares of the Fund.
In December 2006, the Independent Trustees, with the assistance of independent counsel, completed an investigation regarding gifts, gratuities and business entertainment provided by certain brokers to certain individuals who were employed on FMR's domestic equity trading desk during the period 2002 to 2004. The Independent Trustees and FMR agreed that, despite the absence of proof that the Fidelity mutual funds experienced diminished execution quality as a result of the improper receipt of gifts and business entertainment, the conduct at issue was serious and was worthy of redress. Accordingly, the Independent Trustees requested, and FMR agreed to make, a payment of $42 million plus accrued interest, which equaled approximately $7.3 million, to certain Fidelity mutual funds.
In March 2008, the Trustees approved a method for allocating this payment among the funds and, in total, FMR paid the fund $22, which is recorded in the accompanying Statement of Operations.
In a related administrative order dated March 5, 2008, the U.S. Securities and Exchange Commission ("SEC") announced a settlement with FMR and FMR Co., Inc. (an affiliate of FMR) involving the SEC's regulatory rules for investment advisers and the improper receipt of gifts, gratuities and business entertainment. Without admitting or denying the SEC's findings, FMR agreed to pay an $8 million civil penalty to the United States Treasury.
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30,
2008 | Year ended
October 31,
2007 |
From net investment income | | |
Class A | $ 1,785 | $ 1,166 |
Class T | 6,979 | 5,197 |
Class B | 73 | 26 |
Class C | 230 | 137 |
Institutional Class | 9,202 | 5,055 |
Total | $ 18,269 | $ 11,581 |
From net realized gain | | |
Class A | $ 9,778 | $ 5,467 |
Class T | 45,838 | 28,690 |
Class B | 1,798 | 1,858 |
Class C | 3,080 | 2,010 |
Institutional Class | 40,345 | 17,398 |
Total | $ 100,839 | $ 55,423 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except ratios)
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
April 30,
2008 | Year ended
October 31,
2007 | Six months ended April 30,
2008 | Year ended
October 31,
2007 |
Class A | | | | |
Shares sold | 912 | 2,109 | $ 20,580 | $ 49,321 |
Reinvestment of distributions | 416 | 268 | 10,008 | 5,668 |
Shares redeemed | (1,096) | (2,108) | (24,412) | (48,883) |
Net increase (decrease) | 232 | 269 | $ 6,176 | $ 6,106 |
Class T | | | | |
Shares sold | 3,480 | 6,427 | $ 79,580 | $ 152,753 |
Reinvestment of distributions | 2,092 | 1,529 | 51,444 | 32,968 |
Shares redeemed | (4,451) | (9,269) | (101,442) | (220,331) |
Net increase (decrease) | 1,121 | (1,313) | $ 29,582 | $ (34,610) |
Class B | | | | |
Shares sold | 90 | 108 | $ 1,969 | $ 2,422 |
Reinvestment of distributions | 73 | 84 | 1,689 | 1,716 |
Shares redeemed | (289) | (936) | (6,229) | (20,830) |
Net increase (decrease) | (126) | (744) | $ (2,571) | $ (16,692) |
Class C | | | | |
Shares sold | 140 | 248 | $ 3,085 | $ 5,644 |
Reinvestment of distributions | 124 | 92 | 2,937 | 1,908 |
Shares redeemed | (204) | (512) | (4,473) | (11,719) |
Net increase (decrease) | 60 | (172) | $ 1,549 | $ (4,167) |
Institutional Class | | | | |
Shares sold | 7,445 | 6,884 | $ 168,395 | $ 164,033 |
Reinvestment of distributions | 1,898 | 1,020 | 46,435 | 21,884 |
Shares redeemed | (1,338) | (1,676) | (31,074) | (40,404) |
Net increase (decrease) | 8,005 | 6,228 | $ 183,756 | $ 145,513 |
Semiannual Report
A special meeting of the fund's shareholders was held on May 14, 2008. The results of votes taken among shareholders on the proposals before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1 |
To elect a Board of Trustees.A |
| # of
Votes | % of
Votes |
James C. Curvey |
Affirmative | 8,514,961,004.35 | 97.348 |
Withheld | 231,994,591.94 | 2.652 |
TOTAL | 8,746,955,596.29 | 100.000 |
Dennis J. Dirks |
Affirmative | 8,525,899,114.46 | 97.473 |
Withheld | 221,056,481.83 | 2.527 |
TOTAL | 8,746,955,596.29 | 100.000 |
Edward C. Johnson 3d |
Affirmative | 8,497,196,105.85 | 97.145 |
Withheld | 249,759,490.44 | 2.855 |
TOTAL | 8,746,955,596.29 | 100.000 |
Alan J. Lacy |
Affirmative | 8,522,858,760.40 | 97.438 |
Withheld | 224,096,835.89 | 2.562 |
TOTAL | 8,746,955,596.29 | 100.000 |
Ned C. Lautenbach |
Affirmative | 8,523,008,335.52 | 97.440 |
Withheld | 223,947,260.77 | 2.560 |
TOTAL | 8,746,955,596.29 | 100.000 |
Joseph Mauriello |
Affirmative | 8,524,890,199.58 | 97.461 |
Withheld | 222,065,396.71 | 2.539 |
TOTAL | 8,746,955,596.29 | 100.000 |
Cornelia M. Small |
Affirmative | 8,525,649,323.51 | 97.470 |
Withheld | 221,306,272.78 | 2.530 |
TOTAL | 8,746,955,596.29 | 100.000 |
William S. Stavropoulos |
Affirmative | 8,514,682,431.03 | 97.345 |
Withheld | 232,273,165.26 | 2.655 |
TOTAL | 8,746,955,596.29 | 100.000 |
David M. Thomas |
Affirmative | 8,526,972,729.02 | 97.485 |
Withheld | 219,982,867.27 | 2.515 |
TOTAL | 8,746,955,596.29 | 100.000 |
Michael E. Wiley |
Affirmative | 8,523,710,850.33 | 97.448 |
Withheld | 223,244,745.96 | 2.552 |
TOTAL | 8,746,955,596.29 | 100.000 |
PROPOSAL 2 |
To amend the Declaration of Trust of Fidelity Advisor Series VIII to reduce the required quorum for future shareholder meetings.A |
| # of
Votes | % of
Votes |
Affirmative | 4,574,398,791.46 | 52.297 |
Against | 2,140,778,913.08 | 24.475 |
Abstain | 230,752,610.67 | 2.638 |
Broker
Non-Votes | 1,801,025,281.08 | 20.590 |
TOTAL | 8,746,955,596.29 | 100.000 |
A Denotes trust-wide proposal and voting results.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Research & Analysis Company
Fidelity International
Investment Advisors
Fidelity Investments Japan Limited
Fidelity International Investment Advisors (U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
The Northern Trust Company
Chicago, IL
OSI-USAN-0608 1.784904.105
(Fidelity Investment logo)(registered trademark)
Fidelity® Advisor
Value Leaders
Fund - Class A, Class T, Class B
and Class C
Semiannual Report
April 30, 2008
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | Ned Johnson's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
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. |
Proxy Voting Results | <Click Here> | |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
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 LLC or an affiliated company.
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.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
Continuation of a credit squeeze, flat consumer spending and a potential recession weighed heavily on stocks in the opening months of 2008, though positive results in investment-grade bonds and money markets offered some comfort to investors. Financial markets are always unpredictable, but there are a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 1, 2007 to April 30, 2008).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
| Beginning
Account Value
November 1, 2007 | Ending
Account Value
April 30, 2008 | Expenses Paid
During Period*
November 1, 2007
to April 30, 2008 |
Class A | | | |
Actual | $ 1,000.00 | $ 895.70 | $ 5.89 |
HypotheticalA | $ 1,000.00 | $ 1,018.65 | $ 6.27 |
Class T | | | |
Actual | $ 1,000.00 | $ 894.70 | $ 7.07 |
HypotheticalA | $ 1,000.00 | $ 1,017.40 | $ 7.52 |
Class B | | | |
Actual | $ 1,000.00 | $ 892.80 | $ 9.41 |
HypotheticalA | $ 1,000.00 | $ 1,014.92 | $ 10.02 |
Class C | | | |
Actual | $ 1,000.00 | $ 892.80 | $ 9.41 |
HypotheticalA | $ 1,000.00 | $ 1,014.92 | $ 10.02 |
Institutional Class | | | |
Actual | $ 1,000.00 | $ 897.40 | $ 4.58 |
HypotheticalA | $ 1,000.00 | $ 1,020.04 | $ 4.87 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
| Annualized
Expense Ratio |
Class A | 1.25% |
Class T | 1.50% |
Class B | 2.00% |
Class C | 2.00% |
Institutional Class | .97% |
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of April 30, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
ConocoPhillips | 4.9 | 4.3 |
Bank of America Corp. | 4.2 | 4.3 |
AT&T, Inc. | 3.7 | 5.0 |
American International Group, Inc. | 3.4 | 3.5 |
JPMorgan Chase & Co. | 3.3 | 2.6 |
Citigroup, Inc. | 3.2 | 4.0 |
Exxon Mobil Corp. | 2.6 | 2.6 |
General Electric Co. | 2.6 | 3.3 |
Verizon Communications, Inc. | 2.1 | 1.3 |
Procter & Gamble Co. | 1.8 | 2.3 |
| 31.8 | |
Top Five Market Sectors as of April 30, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 30.6 | 29.8 |
Energy | 18.4 | 15.9 |
Industrials | 8.7 | 10.5 |
Consumer Discretionary | 7.6 | 6.8 |
Consumer Staples | 6.9 | 6.4 |
Asset Allocation (% of fund's net assets) |
As of April 30, 2008* | As of October 31, 2007** |
| Stocks and
Investment
Companies 98.3% | | | Stocks and
Investment
Companies 98.3% | |
| Convertible
Securities 1.3% | |  | Convertible
Securities 0.0% | |
| Short-Term
Investments and
Net Other Assets 0.4% | | | Short-Term
Investments and
Net Other Assets 1.7% | |
* Foreign investments | 12.5% | | ** Foreign investments | 13.4% | |
Semiannual Report
Investments April 30, 2008 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.1% |
| Shares | | Value |
CONSUMER DISCRETIONARY - 7.6% |
Auto Components - 0.2% |
Johnson Controls, Inc. | 6,900 | | $ 243,294 |
Automobiles - 0.3% |
Renault SA | 3,500 | | 360,887 |
Diversified Consumer Services - 0.3% |
H&R Block, Inc. | 18,300 | | 400,221 |
Hotels, Restaurants & Leisure - 0.2% |
Vail Resorts, Inc. (a) | 5,200 | | 253,916 |
Household Durables - 2.1% |
Black & Decker Corp. | 6,500 | | 426,595 |
Centex Corp. | 35,800 | | 745,356 |
KB Home | 49,600 | | 1,116,000 |
Whirlpool Corp. | 2,900 | | 211,062 |
| | 2,499,013 |
Leisure Equipment & Products - 0.6% |
Brunswick Corp. | 9,600 | | 160,128 |
Eastman Kodak Co. | 14,700 | | 262,983 |
Mattel, Inc. | 16,700 | | 313,125 |
| | 736,236 |
Media - 1.7% |
Clear Channel Communications, Inc. | 13,200 | | 397,980 |
News Corp. Class A | 32,700 | | 585,330 |
Regal Entertainment Group Class A | 12,200 | | 231,312 |
Time Warner, Inc. | 52,800 | | 784,080 |
| | 1,998,702 |
Specialty Retail - 2.0% |
Advance Auto Parts, Inc. | 9,900 | | 343,332 |
Home Depot, Inc. | 11,450 | | 329,760 |
PetSmart, Inc. | 12,600 | | 281,988 |
Ross Stores, Inc. | 18,100 | | 606,169 |
Staples, Inc. | 23,100 | | 501,270 |
Williams-Sonoma, Inc. | 15,000 | | 396,000 |
| | 2,458,519 |
Textiles, Apparel & Luxury Goods - 0.2% |
Liz Claiborne, Inc. | 11,000 | | 194,590 |
TOTAL CONSUMER DISCRETIONARY | | 9,145,378 |
Common Stocks - continued |
| Shares | | Value |
CONSUMER STAPLES - 6.9% |
Beverages - 0.3% |
Molson Coors Brewing Co. Class B | 6,400 | | $ 350,976 |
Food & Staples Retailing - 1.7% |
CVS Caremark Corp. | 15,100 | | 609,587 |
Kroger Co. | 12,300 | | 335,175 |
SUPERVALU, Inc. | 10,500 | | 347,550 |
Sysco Corp. | 11,900 | | 363,783 |
Winn-Dixie Stores, Inc. (a) | 19,100 | | 338,643 |
| | 1,994,738 |
Food Products - 1.5% |
Cermaq ASA | 12,600 | | 145,432 |
Marine Harvest ASA (a)(d) | 298,000 | | 197,301 |
Nestle SA (Reg.) | 3,114 | | 1,493,302 |
| | 1,836,035 |
Household Products - 2.1% |
Energizer Holdings, Inc. (a) | 4,700 | | 371,582 |
Procter & Gamble Co. | 32,800 | | 2,199,240 |
| | 2,570,822 |
Tobacco - 1.3% |
Altria Group, Inc. | 39,300 | | 786,000 |
British American Tobacco PLC sponsored ADR | 10,100 | | 762,954 |
| | 1,548,954 |
TOTAL CONSUMER STAPLES | | 8,301,525 |
ENERGY - 18.4% |
Energy Equipment & Services - 2.6% |
BJ Services Co. | 9,200 | | 260,084 |
Nabors Industries Ltd. (a) | 31,068 | | 1,166,293 |
National Oilwell Varco, Inc. (a) | 13,864 | | 948,991 |
Petroleum Geo-Services ASA | 9,600 | | 262,161 |
Transocean, Inc. (a) | 2,897 | | 427,192 |
| | 3,064,721 |
Oil, Gas & Consumable Fuels - 15.8% |
Chesapeake Energy Corp. | 10,800 | | 558,360 |
ConocoPhillips | 68,600 | | 5,909,883 |
CONSOL Energy, Inc. | 5,700 | | 461,472 |
EOG Resources, Inc. | 12,000 | | 1,565,760 |
Exxon Mobil Corp. | 34,070 | | 3,170,895 |
Hess Corp. | 5,100 | | 541,620 |
Common Stocks - continued |
| Shares | | Value |
ENERGY - continued |
Oil, Gas & Consumable Fuels - continued |
Occidental Petroleum Corp. | 25,500 | | $ 2,121,855 |
Quicksilver Resources, Inc. (a) | 18,600 | | 771,714 |
Suncor Energy, Inc. | 6,100 | | 688,378 |
Ultra Petroleum Corp. (a) | 18,800 | | 1,561,716 |
Uranium One, Inc. (a) | 16,100 | | 74,337 |
Valero Energy Corp. | 32,300 | | 1,577,855 |
| | 19,003,845 |
TOTAL ENERGY | | 22,068,566 |
FINANCIALS - 29.3% |
Capital Markets - 4.3% |
Charles Schwab Corp. | 13,800 | | 298,080 |
Franklin Resources, Inc. | 7,200 | | 685,080 |
Julius Baer Holding AG | 5,435 | | 403,272 |
KKR Private Equity Investors, LP | 25,783 | | 375,143 |
KKR Private Equity Investors, LP Restricted Depositary Units (e) | 1,300 | | 18,915 |
Lehman Brothers Holdings, Inc. | 43,200 | | 1,911,168 |
Morgan Stanley | 15,200 | | 738,720 |
State Street Corp. | 4,400 | | 317,416 |
T. Rowe Price Group, Inc. | 7,700 | | 450,912 |
| | 5,198,706 |
Commercial Banks - 2.7% |
Associated Banc-Corp. | 10,105 | | 285,668 |
HSBC Holdings PLC sponsored ADR | 6,800 | | 590,172 |
UniCredit SpA | 44,500 | | 339,078 |
Wachovia Corp. | 69,654 | | 2,030,414 |
| | 3,245,332 |
Consumer Finance - 0.3% |
Capital One Financial Corp. | 8,000 | | 424,000 |
Diversified Financial Services - 11.1% |
Bank of America Corp. | 133,592 | | 5,015,044 |
CIT Group, Inc. | 14,100 | | 153,549 |
Citigroup, Inc. | 154,500 | | 3,904,215 |
JPMorgan Chase & Co. | 83,540 | | 3,980,681 |
KKR Financial Holdings LLC | 25,500 | | 323,850 |
| | 13,377,339 |
Insurance - 6.8% |
ACE Ltd. | 11,800 | | 711,422 |
Common Stocks - continued |
| Shares | | Value |
FINANCIALS - continued |
Insurance - continued |
AMBAC Financial Group, Inc. | 2,700 | | $ 12,501 |
American International Group, Inc. | 86,990 | | 4,018,938 |
Argo Group International Holdings, Ltd. (a) | 8,791 | | 314,894 |
Everest Re Group Ltd. | 3,200 | | 289,120 |
Genworth Financial, Inc. Class A (non-vtg.) | 13,100 | | 302,086 |
Hartford Financial Services Group, Inc. | 10,350 | | 737,645 |
IPC Holdings Ltd. | 20,500 | | 596,755 |
LandAmerica Financial Group, Inc. | 4,500 | | 129,150 |
MBIA, Inc. | 5,000 | | 52,000 |
National Financial Partners Corp. (d) | 8,400 | | 226,128 |
Principal Financial Group, Inc. | 9,600 | | 515,136 |
XL Capital Ltd. Class A | 6,300 | | 219,807 |
| | 8,125,582 |
Real Estate Investment Trusts - 1.5% |
Alexandria Real Estate Equities, Inc. | 4,500 | | 472,635 |
Annaly Capital Management, Inc. | 27,000 | | 452,520 |
General Growth Properties, Inc. | 12,350 | | 505,856 |
Simon Property Group, Inc. | 3,600 | | 359,496 |
| | 1,790,507 |
Real Estate Management & Development - 0.7% |
CB Richard Ellis Group, Inc. Class A (a) | 36,300 | | 839,256 |
Thrifts & Mortgage Finance - 1.9% |
Countrywide Financial Corp. | 11,100 | | 64,158 |
Fannie Mae | 31,060 | | 878,998 |
FirstFed Financial Corp. (a)(d) | 14,100 | | 215,448 |
Freddie Mac | 8,000 | | 199,280 |
Washington Federal, Inc. | 19,864 | | 472,962 |
Washington Mutual, Inc. | 16,800 | | 206,472 |
Washington Mutual, Inc. (a)(f) | 17,400 | | 203,154 |
| | 2,240,472 |
TOTAL FINANCIALS | | 35,241,194 |
HEALTH CARE - 5.7% |
Biotechnology - 1.1% |
Amgen, Inc. (a) | 18,200 | | 762,034 |
Biogen Idec, Inc. (a) | 4,900 | | 297,381 |
Cephalon, Inc. (a) | 4,100 | | 255,881 |
| | 1,315,296 |
Common Stocks - continued |
| Shares | | Value |
HEALTH CARE - continued |
Health Care Equipment & Supplies - 1.8% |
Boston Scientific Corp. (a) | 29,900 | | $ 398,567 |
Covidien Ltd. | 20,675 | | 965,316 |
Medtronic, Inc. | 16,800 | | 817,824 |
| | 2,181,707 |
Health Care Providers & Services - 0.6% |
Brookdale Senior Living, Inc. | 12,300 | | 322,014 |
WellPoint, Inc. (a) | 7,900 | | 393,025 |
| | 715,039 |
Life Sciences Tools & Services - 0.3% |
Thermo Fisher Scientific, Inc. (a) | 5,850 | | 338,540 |
Pharmaceuticals - 1.9% |
Johnson & Johnson | 6,300 | | 422,667 |
Merck & Co., Inc. | 37,500 | | 1,426,500 |
Wyeth | 8,850 | | 393,560 |
| | 2,242,727 |
TOTAL HEALTH CARE | | 6,793,309 |
INDUSTRIALS - 8.7% |
Aerospace & Defense - 2.3% |
Honeywell International, Inc. | 21,840 | | 1,297,296 |
Raytheon Co. | 4,000 | | 255,880 |
United Technologies Corp. | 17,200 | | 1,246,484 |
| | 2,799,660 |
Air Freight & Logistics - 0.5% |
United Parcel Service, Inc. Class B | 8,200 | | 593,762 |
Airlines - 0.2% |
Delta Air Lines, Inc. (a) | 11,700 | | 99,567 |
Northwest Airlines Corp. (a) | 10,900 | | 105,294 |
| | 204,861 |
Building Products - 0.4% |
Masco Corp. | 15,250 | | 277,703 |
Owens Corning (a) | 9,100 | | 192,101 |
| | 469,804 |
Commercial Services & Supplies - 0.5% |
Allied Waste Industries, Inc. (a) | 24,700 | | 305,292 |
The Brink's Co. | 4,150 | | 301,913 |
| | 607,205 |
Common Stocks - continued |
| Shares | | Value |
INDUSTRIALS - continued |
Industrial Conglomerates - 3.3% |
General Electric Co. | 95,880 | | $ 3,135,276 |
Siemens AG sponsored ADR | 6,700 | | 793,615 |
| | 3,928,891 |
Machinery - 0.9% |
Illinois Tool Works, Inc. | 4,900 | | 256,221 |
Ingersoll-Rand Co. Ltd. Class A | 9,300 | | 412,734 |
Sulzer AG (Reg.) | 2,920 | | 383,173 |
| | 1,052,128 |
Road & Rail - 0.6% |
Con-way, Inc. | 4,000 | | 185,000 |
Knight Transportation, Inc. | 34,700 | | 589,553 |
| | 774,553 |
TOTAL INDUSTRIALS | | 10,430,864 |
INFORMATION TECHNOLOGY - 5.9% |
Communications Equipment - 0.8% |
Cisco Systems, Inc. (a) | 26,000 | | 666,640 |
Motorola, Inc. | 26,400 | | 262,944 |
| | 929,584 |
Computers & Peripherals - 1.8% |
Hewlett-Packard Co. | 25,550 | | 1,184,243 |
International Business Machines Corp. | 4,600 | | 555,220 |
NCR Corp. (a) | 15,200 | | 374,376 |
| | 2,113,839 |
Electronic Equipment & Instruments - 1.3% |
Amphenol Corp. Class A | 1,600 | | 73,888 |
Avnet, Inc. (a) | 17,100 | | 447,849 |
Flextronics International Ltd. (a) | 28,100 | | 291,959 |
Motech Industries, Inc. | 38,675 | | 334,703 |
Tyco Electronics Ltd. | 11,675 | | 436,762 |
| | 1,585,161 |
Internet Software & Services - 0.3% |
VeriSign, Inc. (a) | 9,800 | | 353,290 |
IT Services - 0.5% |
The Western Union Co. | 17,300 | | 397,900 |
Unisys Corp. (a) | 51,198 | | 212,984 |
| | 610,884 |
Common Stocks - continued |
| Shares | | Value |
INFORMATION TECHNOLOGY - continued |
Semiconductors & Semiconductor Equipment - 1.2% |
Analog Devices, Inc. | 6,700 | | $ 215,807 |
Applied Materials, Inc. | 17,300 | | 322,818 |
Atmel Corp. (a) | 31,050 | | 115,506 |
Lam Research Corp. (a) | 9,000 | | 367,560 |
Maxim Integrated Products, Inc. | 8,900 | | 187,167 |
Novellus Systems, Inc. (a) | 11,000 | | 240,460 |
ON Semiconductor Corp. (a) | 4,500 | | 33,615 |
| | 1,482,933 |
TOTAL INFORMATION TECHNOLOGY | | 7,075,691 |
MATERIALS - 3.1% |
Chemicals - 0.6% |
Agrium, Inc. | 3,200 | | 251,621 |
Albemarle Corp. | 8,600 | | 321,726 |
Chemtura Corp. | 18,400 | | 127,328 |
| | 700,675 |
Containers & Packaging - 0.1% |
Temple-Inland, Inc. | 8,600 | | 100,362 |
Metals & Mining - 2.4% |
Agnico-Eagle Mines Ltd. | 2,900 | | 182,132 |
Alcoa, Inc. | 22,800 | | 792,984 |
Allegheny Technologies, Inc. | 2,400 | | 165,192 |
ArcelorMittal SA (NY Reg.) Class A | 7,900 | | 703,811 |
Carpenter Technology Corp. | 6,600 | | 338,448 |
Lihir Gold Ltd. (a) | 86,711 | | 240,463 |
Newcrest Mining Ltd. | 10,863 | | 296,125 |
Randgold Resources Ltd. sponsored ADR | 5,700 | | 259,464 |
| | 2,978,619 |
TOTAL MATERIALS | | 3,779,656 |
TELECOMMUNICATION SERVICES - 6.7% |
Diversified Telecommunication Services - 6.5% |
AT&T, Inc. | 114,737 | | 4,441,469 |
Cincinnati Bell, Inc. (a) | 61,900 | | 287,216 |
Embarq Corp. | 5,300 | | 220,321 |
Qwest Communications International, Inc. | 62,200 | | 320,952 |
Verizon Communications, Inc. | 64,150 | | 2,468,492 |
| | 7,738,450 |
Common Stocks - continued |
| Shares | | Value |
TELECOMMUNICATION SERVICES - continued |
Wireless Telecommunication Services - 0.2% |
American Tower Corp. Class A (a) | 6,200 | | $ 269,204 |
TOTAL TELECOMMUNICATION SERVICES | | 8,007,654 |
UTILITIES - 5.8% |
Electric Utilities - 2.5% |
E.ON AG sponsored ADR | 6,300 | | 414,540 |
Edison International | 9,700 | | 506,049 |
Entergy Corp. | 10,100 | | 1,160,086 |
PPL Corp. | 19,000 | | 912,380 |
| | 2,993,055 |
Independent Power Producers & Energy Traders - 2.5% |
AES Corp. (a) | 20,200 | | 350,672 |
Constellation Energy Group, Inc. | 15,200 | | 1,286,680 |
NRG Energy, Inc. (a) | 14,600 | | 641,670 |
Reliant Energy, Inc. (a) | 27,600 | | 710,424 |
| | 2,989,446 |
Multi-Utilities - 0.8% |
CMS Energy Corp. | 20,400 | | 297,432 |
Sempra Energy | 7,300 | | 413,691 |
Wisconsin Energy Corp. | 5,500 | | 261,030 |
| | 972,153 |
TOTAL UTILITIES | | 6,954,654 |
TOTAL COMMON STOCKS (Cost $118,081,853) | 117,798,491 |
Convertible Preferred Stocks - 1.3% |
| | | |
FINANCIALS - 1.3% |
Capital Markets - 0.3% |
Lehman Brothers Holdings, Inc. 7.25% | 340 | | 401,511 |
Commercial Banks - 0.1% |
Wachovia Corp. 7.50% | 100 | | 115,327 |
Diversified Financial Services - 0.1% |
CIT Group, Inc. Series C, 8.75% | 1,000 | | 54,390 |
Convertible Preferred Stocks - continued |
| Shares | | Value |
FINANCIALS - continued |
Thrifts & Mortgage Finance - 0.8% |
Washington Mutual, Inc. (f) | 7 | | $ 983,200 |
TOTAL CONVERTIBLE PREFERRED STOCKS (Cost $1,190,000) | 1,554,428 |
Investment Companies - 0.2% |
| | | |
Ares Capital Corp.
(Cost $298,944) | 17,379 | | 195,688 |
Money Market Funds - 0.7% |
| | | |
Fidelity Cash Central Fund, 2.51% (b) | 343,724 | | 343,724 |
Fidelity Securities Lending Cash Central Fund, 2.44% (b)(c) | 547,750 | | 547,750 |
TOTAL MONEY MARKET FUNDS (Cost $891,474) | 891,474 |
TOTAL INVESTMENT PORTFOLIO - 100.3% (Cost $120,462,271) | | 120,440,081 |
NET OTHER ASSETS - (0.3)% | | (336,795) |
NET ASSETS - 100% | $ 120,103,286 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) 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 end of the period, the value of these securities amounted to $18,915 or 0.0% of net assets. |
(f) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $1,186,354 or 1.0% of net assets. |
Additional information on each holding is as follows: |
Security | Acquisition Date | Acquisition Cost |
Washington Mutual, Inc. | 4/8/08 | $ 152,250 |
Washington Mutual, Inc. | 4/8/08 | $ 700,000 |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 19,280 |
Fidelity Securities Lending Cash Central Fund | 16,721 |
Total | $ 36,001 |
Other Information |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 87.5% |
Bermuda | 2.6% |
Canada | 2.3% |
Switzerland | 1.8% |
United Kingdom | 1.6% |
Germany | 1.0% |
Others (individually less than 1%) | 3.2% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| April 30, 2008 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $515,338) - See accompanying schedule: Unaffiliated issuers (cost $119,570,797) | $ 119,548,607 | |
Fidelity Central Funds (cost $891,474) | 891,474 | |
Total Investments (cost $120,462,271) | | $ 120,440,081 |
Foreign currency held at value (cost $1) | | 1 |
Receivable for investments sold | | 3,217,559 |
Receivable for fund shares sold | | 81,531 |
Dividends receivable | | 215,917 |
Distributions receivable from Fidelity Central Funds | | 2,830 |
Prepaid expenses | | 279 |
Other receivables | | 113 |
Total assets | | 123,958,311 |
| | |
Liabilities | | |
Payable for investments purchased | $ 3,012,454 | |
Payable for fund shares redeemed | 144,212 | |
Accrued management fee | 56,122 | |
Distribution fees payable | 41,053 | |
Other affiliated payables | 31,457 | |
Other payables and accrued expenses | 21,977 | |
Collateral on securities loaned, at value | 547,750 | |
Total liabilities | | 3,855,025 |
| | |
Net Assets | | $ 120,103,286 |
Net Assets consist of: | | |
Paid in capital | | $ 123,151,002 |
Undistributed net investment income | | 376,313 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (3,402,574) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | (21,455) |
Net Assets | | $ 120,103,286 |
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, 2008 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($60,112,280 ÷ 4,320,421 shares) | | $ 13.91 |
| | |
Maximum offering price per share (100/94.25 of $13.91) | | $ 14.76 |
Class T:
Net Asset Value and redemption price per share ($42,432,735 ÷ 3,063,225 shares) | | $ 13.85 |
| | |
Maximum offering price per share (100/96.50 of $13.85) | | $ 14.35 |
Class B:
Net Asset Value and offering price per share ($5,139,605 ÷ 375,107 shares)A | | $ 13.70 |
| | |
Class C:
Net Asset Value and offering price per share ($8,126,691 ÷ 594,849 shares)A | | $ 13.66 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($4,291,975 ÷ 306,625 shares) | | $ 14.00 |
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, 2008 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 1,460,202 |
Interest | | 319 |
Income from Fidelity Central Funds | | 36,001 |
Total income | | 1,496,522 |
| | |
Expenses | | |
Management fee | $ 346,777 | |
Transfer agent fees | 172,391 | |
Distribution fees | 256,868 | |
Accounting and security lending fees | 24,598 | |
Custodian fees and expenses | 14,758 | |
Independent trustees' compensation | 266 | |
Registration fees | 30,808 | |
Audit | 28,022 | |
Legal | 236 | |
Miscellaneous | 15,778 | |
Total expenses before reductions | 890,502 | |
Expense reductions | (13,606) | 876,896 |
Net investment income (loss) | | 619,626 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (3,164,261) | |
Investment not meeting investment restrictions | 456 | |
Foreign currency transactions | (5,297) | |
Total net realized gain (loss) | | (3,169,102) |
Change in net unrealized appreciation (depreciation) on: Investment securities | (12,578,140) | |
Assets and liabilities in foreign currencies | 596 | |
Total change in net unrealized appreciation (depreciation) | | (12,577,544) |
Net gain (loss) | | (15,746,646) |
Net increase (decrease) in net assets resulting from operations | | $ (15,127,020) |
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, 2008
(Unaudited) | Year ended
October 31,
2007 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 619,626 | $ 708,191 |
Net realized gain (loss) | (3,169,102) | 7,019,812 |
Change in net unrealized appreciation (depreciation) | (12,577,544) | 5,194,437 |
Net increase (decrease) in net assets resulting
from operations | (15,127,020) | 12,922,440 |
Distributions to shareholders from net investment income | (766,736) | (203,521) |
Distributions to shareholders from net realized gain | (6,300,334) | (3,080,270) |
Total distributions | (7,067,070) | (3,283,791) |
Share transactions - net increase (decrease) | 580,461 | 71,133,838 |
Total increase (decrease) in net assets | (21,613,629) | 80,772,487 |
| | |
Net Assets | | |
Beginning of period | 141,716,915 | 60,944,428 |
End of period (including undistributed net investment income of $376,313 and undistributed net investment income of $592,692, respectively) | $ 120,103,286 | $ 141,716,915 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended April 30, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003H |
Selected Per-Share Data |
Net asset value, beginning of period | $ 16.40 | $ 15.08 | $ 13.22 | $ 11.70 | $ 10.37 | $ 10.00 |
Income from Investment Operations | | | | | | |
Net investment income (loss)E | .08 | .13 | .08 | .06 | .01 | -J |
Net realized and unrealized gain (loss) | (1.73) | 1.99 | 2.15 | 1.51 | 1.32 | .37 |
Total from investment operations | (1.65) | 2.12 | 2.23 | 1.57 | 1.33 | .37 |
Distributions from net investment income | (.12) | (.09) | (.04) | (.04) | - | - |
Distributions from net realized gain | (.72) | (.71) | (.33) | (.01) | - | - |
Total distributions | (.84)K | (.80) | (.37) | (.05) | - | - |
Net asset value, end of period | $ 13.91 | $ 16.40 | $ 15.08 | $ 13.22 | $ 11.70 | $ 10.37 |
Total ReturnB, C, D | (10.43)% | 14.64% | 17.20% | 13.40% | 12.83% | 3.70% |
Ratios to Average Net AssetsF, I | | | | | |
Expenses before reductions | 1.28%A | 1.28% | 1.41% | 1.50% | 3.39% | 5.52%A |
Expenses net of fee waivers, if any | 1.25%A | 1.25% | 1.25% | 1.30% | 1.50% | 1.75%A |
Expenses net of all reductions | 1.25%A | 1.24% | 1.24% | 1.26% | 1.47% | 1.73%A |
Net investment income (loss) | 1.16%A | .85% | .54% | .48% | .11% | (.05)%A |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 60,112 | $ 67,434 | $ 15,398 | $ 7,121 | $ 4,000 | $ 1,123 |
Portfolio turnover rateG | 73%A | 76% | 91% | 86% | 111% | 108%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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period June 17, 2003 (commencement of operations) to October 31, 2003.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Amount represents less than $.01 per share.
K Total distributions of $.839 per share is comprised of distributions from net investment income of $.117 and distributions from net realized gain of $.722 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, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003H |
Selected Per-Share Data |
Net asset value, beginning of period | $ 16.30 | $ 14.99 | $ 13.14 | $ 11.67 | $ 10.36 | $ 10.00 |
Income from Investment Operations | | | | | | |
Net investment income (loss)E | .06 | .09 | .04 | .03 | (.02) | (.01) |
Net realized and unrealized gain (loss) | (1.72) | 1.97 | 2.15 | 1.48 | 1.33 | .37 |
Total from investment operations | (1.66) | 2.06 | 2.19 | 1.51 | 1.31 | .36 |
Distributions from net investment income | (.07) | (.04) | (.01) | (.03) | - | - |
Distributions from net realized gain | (.72) | (.71) | (.33) | (.01) | - | - |
Total distributions | (.79)J | (.75) | (.34) | (.04) | - | - |
Net asset value, end of period | $ 13.85 | $ 16.30 | $ 14.99 | $ 13.14 | $ 11.67 | $ 10.36 |
Total ReturnB, C, D | (10.53)% | 14.31% | 16.93% | 12.96% | 12.64% | 3.60% |
Ratios to Average Net AssetsF, I | | | | | |
Expenses before reductions | 1.50%A | 1.53% | 1.65% | 1.72% | 3.30% | 5.77%A |
Expenses net of fee waivers, if any | 1.50%A | 1.50% | 1.50% | 1.55% | 1.75% | 2.00%A |
Expenses net of all reductions | 1.50%A | 1.49% | 1.49% | 1.51% | 1.72% | 1.98%A |
Net investment income (loss) | .91%A | .60% | .29% | .23% | (.14)% | (.30)%A |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 42,433 | $ 50,998 | $ 30,607 | $ 21,580 | $ 13,340 | $ 1,546 |
Portfolio turnover rate G | 73%A | 76% | 91% | 86% | 111% | 108%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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period June 17, 2003 (commencement of operations) to October 31, 2003.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Total distributions of $.790 per share is comprised of distributions from net investment income of $.068 and distributions from net realized gain of $.722 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, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003H |
Selected Per-Share Data |
Net asset value, beginning of period | $ 16.07 | $ 14.81 | $ 12.99 | $ 11.59 | $ 10.34 | $ 10.00 |
Income from Investment Operations | | | | | | |
Net investment income (loss)E | .03 | .01 | (.03) | (.03) | (.07) | (.03) |
Net realized and unrealized gain (loss) | (1.70) | 1.95 | 2.13 | 1.46 | 1.32 | .37 |
Total from investment operations | (1.67) | 1.96 | 2.10 | 1.43 | 1.25 | .34 |
Distributions from net investment income | - | - | - | (.02) | - | - |
Distributions from net realized gain | (.70) | (.70) | (.28) | (.01) | - | - |
Total distributions | (.70)J | (.70) | (.28) | (.03) | - | - |
Net asset value, end of period | $ 13.70 | $ 16.07 | $ 14.81 | $ 12.99 | $ 11.59 | $ 10.34 |
Total ReturnB, C, D | (10.72)% | 13.74% | 16.38% | 12.35% | 12.09% | 3.40% |
Ratios to Average Net AssetsF, I | | | | | |
Expenses before reductions | 2.04%A | 2.10% | 2.23% | 2.31% | 4.33% | 6.24%A |
Expenses net of fee waivers, if any | 2.00%A | 2.00% | 2.00% | 2.05% | 2.25% | 2.50%A |
Expenses net of all reductions | 2.00%A | 1.99% | 1.99% | 2.01% | 2.22% | 2.48%A |
Net investment income (loss) | .40%A | .10% | (.21)% | (.27)% | (.64)% | (.80)%A |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 5,140 | $ 6,734 | $ 5,734 | $ 4,240 | $ 2,560 | $ 1,125 |
Portfolio turnover rateG | 73%A | 76% | 91% | 86% | 111% | 108%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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period June 17, 2003 (commencement of operations) to October 31, 2003.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Total distributions of $.698 per share is comprised of distributions from net investment income of $.000 and distributions from net realized gain of $.698 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, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003H |
Selected Per-Share Data |
Net asset value, beginning of period | $ 16.04 | $ 14.80 | $ 12.99 | $ 11.58 | $ 10.34 | $ 10.00 |
Income from Investment Operations | | | | | | |
Net investment income (loss)E | .03 | .02 | (.03) | (.03) | (.07) | (.03) |
Net realized and unrealized gain (loss) | (1.70) | 1.93 | 2.13 | 1.47 | 1.31 | .37 |
Total from investment operations | (1.67) | 1.95 | 2.10 | 1.44 | 1.24 | .34 |
Distributions from net investment income | - | - | - | (.02) | - | - |
Distributions from net realized gain | (.71) | (.71) | (.29) | (.01) | - | - |
Total distributions | (.71)J | (.71) | (.29) | (.03) | - | - |
Net asset value, end of period | $ 13.66 | $ 16.04 | $ 14.80 | $ 12.99 | $ 11.58 | $ 10.34 |
Total ReturnB, C, D | (10.72)% | 13.69% | 16.38% | 12.45% | 11.99% | 3.40% |
Ratios to Average Net AssetsF, I | | | | | |
Expenses before reductions | 2.04%A | 2.09% | 2.22% | 2.30% | 4.39% | 6.24%A |
Expenses net of fee waivers, if any | 2.00%A | 2.00% | 2.00% | 2.05% | 2.25% | 2.50%A |
Expenses net of all reductions | 2.00%A | 1.99% | 1.99% | 2.01% | 2.22% | 2.48%A |
Net investment income (loss) | .40%A | .10% | (.21)% | (.27)% | (.64)% | (.80)%A |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 8,127 | $ 9,718 | $ 7,004 | $ 3,892 | $ 1,815 | $ 1,069 |
Portfolio turnover rateG | 73%A | 76% | 91% | 86% | 111% | 108%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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period June 17, 2003 (commencement of operations) to October 31, 2003.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Total distributions of $.712 per share is comprised of distributions from net investment income of $.000 and distributions from net realized gain of $.712 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, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003G |
Selected Per-Share Data |
Net asset value, beginning of period | $ 16.51 | $ 15.17 | $ 13.28 | $ 11.75 | $ 10.38 | $ 10.00 |
Income from Investment Operations | | | | | | |
Net investment income (loss)D | .10 | .17 | .11 | .09 | .04 | .01 |
Net realized and unrealized gain (loss) | (1.73) | 1.99 | 2.18 | 1.49 | 1.33 | .37 |
Total from investment operations | (1.63) | 2.16 | 2.29 | 1.58 | 1.37 | .38 |
Distributions from net investment income | (.15) | (.11) | (.07) | (.04) | - | - |
Distributions from net realized gain | (.72) | (.71) | (.33) | (.01) | - | - |
Total distributions | (.88)I | (.82) | (.40) | (.05) | - | - |
Net asset value, end of period | $ 14.00 | $ 16.51 | $ 15.17 | $ 13.28 | $ 11.75 | $ 10.38 |
Total ReturnB, C | (10.26)% | 14.89% | 17.58% | 13.47% | 13.20% | 3.80% |
Ratios to Average Net AssetsE, H | | | | | |
Expenses before reductions | .97%A | 1.00% | 1.04% | 1.14% | 3.41% | 5.27%A |
Expenses net of fee waivers, if any | .97%A | 1.00% | 1.00% | 1.06% | 1.25% | 1.50%A |
Expenses net of all reductions | .97%A | .99% | .99% | 1.02% | 1.22% | 1.48%A |
Net investment income (loss) | 1.43%A | 1.10% | .79% | .72% | .36% | .20%A |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 4,292 | $ 6,833 | $ 2,201 | $ 1,857 | $ 1,282 | $ 1,038 |
Portfolio turnover rateF | 73%A | 76% | 91% | 86% | 111% | 108%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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period June 17, 2003 (commencement of operations) to October 31, 2003.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Total distributions of $.876 per share is comprised of distributions from net investment income of $.154 and distributions from net realized gain of $.722 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, 2008 (Unaudited)
1. Organization.
Fidelity Advisor Value Leaders 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.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
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. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued and net asset value (NAV) per share is calculated (NAV calculation) as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or do not accurately reflect fair value, valuations may be determined in accordance with procedures adopted by the Board of Trustees. For example, when developments occur between the close of a market and the close of the NYSE that may materially affect the value of some or all of the securities, or when trading in a security is halted, those securities may be fair valued. Factors used in the determination of fair value may include monitoring news to identify significant market or security specific events such as changes in the value of U.S. securities markets, reviewing developments in foreign markets and evaluating the performance of ADRs, futures contracts and exchange-traded funds. Because the Fund's utilization of fair value pricing depends on market activity, the frequency with which fair value pricing is used cannot be predicted and may be utilized to a significant extent. The value of securities used for NAV calculation under fair value pricing may differ from published prices for the same securities.
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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Foreign Currency - continued
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. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV for processing shareholder transactions includes trades executed through the end of the prior business day. 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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. 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 each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not result in any unrecognized tax benefits in the accompanying financial statements. Each of the Fund's federal tax returns for the prior three fiscal years remains subject to examination by the Internal Revenue Service. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC) and losses deferred due to wash sales.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 14,636,304 | |
Unrealized depreciation | (15,360,103) | |
Net unrealized appreciation (depreciation) | $ (723,799) | |
Cost for federal income tax purposes | $ 121,163,880 | |
New Accounting Pronouncement. In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and results in expanded disclosures about fair value measurements.
4. Operating Policies.
Repurchase Agreements. 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 which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Operating Policies - continued
Repurchase Agreements - continued
ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
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 at the end of the Fund's Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $46,057,465 and $49,993,584, respectively.
The Fund realized a gain on the sale of an investment not meeting the investment restrictions of the Fund.
6. Fees and Other Transactions with Affiliates.
Management Fee and Expense Contract. 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 .30% of the Fund's average net assets and a group fee rate that averaged .26% 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 the performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of the Institutional Class of the Fund as compared to an appropriate benchmark index. The Fund's performance adjustment began on June 1, 2007 and subsequent months will be added until the performance period includes 36 months. The Fund's performance adjustment will take effect in May 2008. For the period, the total annualized management fee rate was .56% of the Fund's average net assets.
Semiannual Report
6. 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. 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 and the total amounts paid to and retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC |
Class A | 0% | .25% | $ 76,799 | $ 33,011 |
Class T | .25% | .25% | 110,336 | 1,068 |
Class B | .75% | .25% | 27,763 | 21,064 |
Class C | .75% | .25% | 41,970 | 10,820 |
| | | $ 256,868 | $ 65,963 |
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, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges 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, 1.00% to .50% for certain purchases of Class A shares and ..25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 11,637 |
Class T | 2,823 |
Class B* | 4,672 |
Class C* | 978 |
| $ 20,110 |
* 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
Notes to Financial Statements (Unaudited) - continued
6. 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 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 shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each class to FIIOC were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 88,741 | .29 |
Class T | 56,700 | .26 |
Class B | 8,393 | .30 |
Class C | 12,707 | .30 |
Institutional Class | 5,850 | .23 |
| $ 172,391 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
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 were $1,557 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $4.2 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, which amounted to $125 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Semiannual Report
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, 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. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $16,721.
9. Expense Reductions.
FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period.
| Expense
Limitations | Reimbursement
from adviser |
| | |
Class A | 1.25% | $ 8,656 |
Class B | 2.00% | 1,180 |
Class C | 2.00% | 1,772 |
| | $ 11,608 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
9. 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 included payments of certain expenses on behalf of the Fund totaling $19 for the period. In addition, through arrangements with each class' transfer agent, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, credits reduced each class' transfer agent expense as noted in the table below.
| Transfer Agent
expense reduction | |
Class A | $ 1,829 | |
Class T | 117 | |
Institutional Class | 33 | |
| $ 1,979 | |
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
In December 2006, the Independent Trustees, with the assistance of independent counsel, completed an investigation regarding gifts, gratuities and business entertainment provided by certain brokers to certain individuals who were employed on FMR's domestic equity trading desk during the period 2002 to 2004. The Independent Trustees and FMR agreed that, despite the absence of proof that the Fidelity mutual funds experienced diminished execution quality as a result of the improper receipt of gifts and business entertainment, the conduct at issue was serious and was worthy of redress. Accordingly, the Independent Trustees requested, and FMR agreed to make, a payment of $42 million plus accrued interest, which equaled approximately $7.3 million, to certain Fidelity mutual funds.
In March 2008, the Trustees approved a method for allocating this payment among the funds and, in total, FMR paid the fund $1,965, which is recorded in the accompanying Statement of Operations.
Semiannual Report
10. Other - continued
In a related administrative order dated March 5, 2008, the U.S. Securities and Exchange Commission ("SEC") announced a settlement with FMR and FMR Co., Inc. (an affiliate of FMR) involving the SEC's regulatory rules for investment advisers and the improper receipt of gifts, gratuities and business entertainment. Without admitting or denying the SEC's findings, FMR agreed to pay an $8 million civil penalty to the United States Treasury.
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30, 2008 | Year ended
October 31, 2007 |
From net investment income | | |
Class A | $ 490,285 | $ 95,578 |
Class T | 212,605 | 84,209 |
Institutional Class | 63,846 | 23,734 |
Total | $ 766,736 | $ 203,521 |
From net realized gain | | |
Class A | $ 3,025,520 | $ 798,354 |
Class T | 2,257,342 | 1,494,717 |
Class B | 289,370 | 288,272 |
Class C | 428,772 | 347,113 |
Institutional Class | 299,330 | 151,814 |
Total | $ 6,300,334 | $ 3,080,270 |
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended April 30,
2008 | Year ended
October 31,
2007 | Six months ended April 30,
2008 | Year ended
October 31,
2007 |
Class A | | | | |
Shares sold | 816,870 | 3,695,755 | $ 11,760,049 | $ 57,509,722 |
Reinvestment of distributions | 229,647 | 58,930 | 3,435,525 | 865,688 |
Shares redeemed | (838,194) | (663,449) | (11,723,151) | (10,352,319) |
Net increase (decrease) | 208,323 | 3,091,236 | $ 3,472,423 | $ 48,023,091 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
12. Share Transactions - continued
| Shares | Dollars |
| Six months ended
April 30,
2008 | Year ended
October 31, 2007 | Six months ended
April 30,
2008 | Year ended
October 31,
2007 |
Class T | | | | |
Shares sold | 253,243 | 1,421,685 | $ 3,585,771 | $ 21,932,526 |
Reinvestment of distributions | 159,872 | 102,412 | 2,383,698 | 1,498,284 |
Shares redeemed | (478,789) | (437,693) | (6,665,001) | (6,887,915) |
Net increase (decrease) | (65,674) | 1,086,404 | $ (695,532) | $ 16,542,895 |
Class B | | | | |
Shares sold | 34,305 | 214,346 | $ 474,637 | $ 3,232,327 |
Reinvestment of distributions | 18,065 | 18,230 | 266,998 | 264,152 |
Shares redeemed | (96,157) | (200,858) | (1,333,504) | (3,047,563) |
Net increase (decrease) | (43,787) | 31,718 | $ (591,869) | $ 448,916 |
Class C | | | | |
Shares sold | 90,496 | 300,918 | $ 1,222,433 | $ 4,603,445 |
Reinvestment of distributions | 26,400 | 22,867 | 388,869 | 330,886 |
Shares redeemed | (127,741) | (191,479) | (1,730,264) | (2,915,876) |
Net increase (decrease) | (10,845) | 132,306 | $ (118,962) | $ 2,018,455 |
Institutional Class | | | | |
Shares sold | 70,979 | 592,099 | $ 1,008,726 | $ 9,392,137 |
Reinvestment of distributions | 23,109 | 11,218 | 347,565 | 165,468 |
Shares redeemed | (201,352) | (334,584) | (2,841,890) | (5,457,124) |
Net increase (decrease) | (107,264) | 268,733 | $ (1,485,599) | $ 4,100,481 |
Semiannual Report
A special meeting of the fund's shareholders was held on May 14, 2008. The results of votes taken among shareholders on the proposals before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1 |
To elect a Board of Trustees.A |
| # of
Votes | % of
Votes |
James C. Curvey |
Affirmative | 8,514,961,004.35 | 97.348 |
Withheld | 231,994,591.94 | 2.652 |
TOTAL | 8,746,955,596.29 | 100.000 |
Dennis J. Dirks |
Affirmative | 8,525,899,114.46 | 97.473 |
Withheld | 221,056,481.83 | 2.527 |
TOTAL | 8,746,955,596.29 | 100.000 |
Edward C. Johnson 3d |
Affirmative | 8,497,196,105.85 | 97.145 |
Withheld | 249,759,490.44 | 2.855 |
TOTAL | 8,746,955,596.29 | 100.000 |
Alan J. Lacy |
Affirmative | 8,522,858,760.40 | 97.438 |
Withheld | 224,096,835.89 | 2.562 |
TOTAL | 8,746,955,596.29 | 100.000 |
Ned C. Lautenbach |
Affirmative | 8,523,008,335.52 | 97.440 |
Withheld | 223,947,260.77 | 2.560 |
TOTAL | 8,746,955,596.29 | 100.000 |
Joseph Mauriello |
Affirmative | 8,524,890,199.58 | 97.461 |
Withheld | 222,065,396.71 | 2.539 |
TOTAL | 8,746,955,596.29 | 100.000 |
Cornelia M. Small |
Affirmative | 8,525,649,323.51 | 97.470 |
Withheld | 221,306,272.78 | 2.530 |
TOTAL | 8,746,955,596.29 | 100.000 |
| # of
Votes | % of
Votes |
William S. Stavropoulos |
Affirmative | 8,514,682,431.03 | 97.345 |
Withheld | 232,273,165.26 | 2.655 |
TOTAL | 8,746,955,596.29 | 100.000 |
David M. Thomas |
Affirmative | 8,526,972,729.02 | 97.485 |
Withheld | 219,982,867.27 | 2.515 |
TOTAL | 8,746,955,596.29 | 100.000 |
Michael E. Wiley |
Affirmative | 8,523,710,850.33 | 97.448 |
Withheld | 223,244,745.96 | 2.552 |
TOTAL | 8,746,955,596.29 | 100.000 |
PROPOSAL 2 |
To amend the Declaration of Trust of Fidelity Advisor Series VIII to reduce the required quorum for future shareholder meetings.A |
| # of
Votes | % of
Votes |
Affirmative | 4,574,398,791.46 | 52.297 |
Against | 2,140,778,913.08 | 24.475 |
Abstain | 230,752,610.67 | 2.638 |
Broker
Non-Votes | 1,801,025,281.08 | 20.590 |
TOTAL | 8,746,955,596.29 | 100.000 |
A Denotes trust-wide proposal and voting results.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Research & Analysis Company
Fidelity International
Investment Advisors
Fidelity Investments Japan Limited
Fidelity International Investment Advisors (U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Brown Brothers Harriman & Company
Boston, MA
AVLF-USAN-0608 1.800655.104
(Fidelity Investment logo)(registered trademark)
Fidelity® Advisor
Value Leaders
Fund - Institutional Class
Semiannual Report
April 30, 2008
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | <Click Here> | Ned Johnson's message to shareholders. |
Shareholder Expense Example | <Click Here> | An example of shareholder expenses. |
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. |
Proxy Voting Results | <Click Here> | |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.
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 LLC or an affiliated company.
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.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
Continuation of a credit squeeze, flat consumer spending and a potential recession weighed heavily on stocks in the opening months of 2008, though positive results in investment-grade bonds and money markets offered some comfort to investors. Financial markets are always unpredictable, but there are a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Semiannual Report
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 1, 2007 to April 30, 2008).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Semiannual Report
| Beginning
Account Value
November 1, 2007 | Ending
Account Value
April 30, 2008 | Expenses Paid
During Period*
November 1, 2007
to April 30, 2008 |
Class A | | | |
Actual | $ 1,000.00 | $ 895.70 | $ 5.89 |
HypotheticalA | $ 1,000.00 | $ 1,018.65 | $ 6.27 |
Class T | | | |
Actual | $ 1,000.00 | $ 894.70 | $ 7.07 |
HypotheticalA | $ 1,000.00 | $ 1,017.40 | $ 7.52 |
Class B | | | |
Actual | $ 1,000.00 | $ 892.80 | $ 9.41 |
HypotheticalA | $ 1,000.00 | $ 1,014.92 | $ 10.02 |
Class C | | | |
Actual | $ 1,000.00 | $ 892.80 | $ 9.41 |
HypotheticalA | $ 1,000.00 | $ 1,014.92 | $ 10.02 |
Institutional Class | | | |
Actual | $ 1,000.00 | $ 897.40 | $ 4.58 |
HypotheticalA | $ 1,000.00 | $ 1,020.04 | $ 4.87 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period).
| Annualized
Expense Ratio |
Class A | 1.25% |
Class T | 1.50% |
Class B | 2.00% |
Class C | 2.00% |
Institutional Class | .97% |
Semiannual Report
Investment Changes (Unaudited)
Top Ten Stocks as of April 30, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
ConocoPhillips | 4.9 | 4.3 |
Bank of America Corp. | 4.2 | 4.3 |
AT&T, Inc. | 3.7 | 5.0 |
American International Group, Inc. | 3.4 | 3.5 |
JPMorgan Chase & Co. | 3.3 | 2.6 |
Citigroup, Inc. | 3.2 | 4.0 |
Exxon Mobil Corp. | 2.6 | 2.6 |
General Electric Co. | 2.6 | 3.3 |
Verizon Communications, Inc. | 2.1 | 1.3 |
Procter & Gamble Co. | 1.8 | 2.3 |
| 31.8 | |
Top Five Market Sectors as of April 30, 2008 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Financials | 30.6 | 29.8 |
Energy | 18.4 | 15.9 |
Industrials | 8.7 | 10.5 |
Consumer Discretionary | 7.6 | 6.8 |
Consumer Staples | 6.9 | 6.4 |
Asset Allocation (% of fund's net assets) |
As of April 30, 2008* | As of October 31, 2007** |
| Stocks and
Investment
Companies 98.3% | | | Stocks and
Investment
Companies 98.3% | |
| Convertible
Securities 1.3% | | | Convertible
Securities 0.0% | |
| Short-Term
Investments and
Net Other Assets 0.4% | | | Short-Term
Investments and
Net Other Assets 1.7% | |
* Foreign investments | 12.5% | | ** Foreign investments | 13.4% | |
Semiannual Report
Investments April 30, 2008 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.1% |
| Shares | | Value |
CONSUMER DISCRETIONARY - 7.6% |
Auto Components - 0.2% |
Johnson Controls, Inc. | 6,900 | | $ 243,294 |
Automobiles - 0.3% |
Renault SA | 3,500 | | 360,887 |
Diversified Consumer Services - 0.3% |
H&R Block, Inc. | 18,300 | | 400,221 |
Hotels, Restaurants & Leisure - 0.2% |
Vail Resorts, Inc. (a) | 5,200 | | 253,916 |
Household Durables - 2.1% |
Black & Decker Corp. | 6,500 | | 426,595 |
Centex Corp. | 35,800 | | 745,356 |
KB Home | 49,600 | | 1,116,000 |
Whirlpool Corp. | 2,900 | | 211,062 |
| | 2,499,013 |
Leisure Equipment & Products - 0.6% |
Brunswick Corp. | 9,600 | | 160,128 |
Eastman Kodak Co. | 14,700 | | 262,983 |
Mattel, Inc. | 16,700 | | 313,125 |
| | 736,236 |
Media - 1.7% |
Clear Channel Communications, Inc. | 13,200 | | 397,980 |
News Corp. Class A | 32,700 | | 585,330 |
Regal Entertainment Group Class A | 12,200 | | 231,312 |
Time Warner, Inc. | 52,800 | | 784,080 |
| | 1,998,702 |
Specialty Retail - 2.0% |
Advance Auto Parts, Inc. | 9,900 | | 343,332 |
Home Depot, Inc. | 11,450 | | 329,760 |
PetSmart, Inc. | 12,600 | | 281,988 |
Ross Stores, Inc. | 18,100 | | 606,169 |
Staples, Inc. | 23,100 | | 501,270 |
Williams-Sonoma, Inc. | 15,000 | | 396,000 |
| | 2,458,519 |
Textiles, Apparel & Luxury Goods - 0.2% |
Liz Claiborne, Inc. | 11,000 | | 194,590 |
TOTAL CONSUMER DISCRETIONARY | | 9,145,378 |
Common Stocks - continued |
| Shares | | Value |
CONSUMER STAPLES - 6.9% |
Beverages - 0.3% |
Molson Coors Brewing Co. Class B | 6,400 | | $ 350,976 |
Food & Staples Retailing - 1.7% |
CVS Caremark Corp. | 15,100 | | 609,587 |
Kroger Co. | 12,300 | | 335,175 |
SUPERVALU, Inc. | 10,500 | | 347,550 |
Sysco Corp. | 11,900 | | 363,783 |
Winn-Dixie Stores, Inc. (a) | 19,100 | | 338,643 |
| | 1,994,738 |
Food Products - 1.5% |
Cermaq ASA | 12,600 | | 145,432 |
Marine Harvest ASA (a)(d) | 298,000 | | 197,301 |
Nestle SA (Reg.) | 3,114 | | 1,493,302 |
| | 1,836,035 |
Household Products - 2.1% |
Energizer Holdings, Inc. (a) | 4,700 | | 371,582 |
Procter & Gamble Co. | 32,800 | | 2,199,240 |
| | 2,570,822 |
Tobacco - 1.3% |
Altria Group, Inc. | 39,300 | | 786,000 |
British American Tobacco PLC sponsored ADR | 10,100 | | 762,954 |
| | 1,548,954 |
TOTAL CONSUMER STAPLES | | 8,301,525 |
ENERGY - 18.4% |
Energy Equipment & Services - 2.6% |
BJ Services Co. | 9,200 | | 260,084 |
Nabors Industries Ltd. (a) | 31,068 | | 1,166,293 |
National Oilwell Varco, Inc. (a) | 13,864 | | 948,991 |
Petroleum Geo-Services ASA | 9,600 | | 262,161 |
Transocean, Inc. (a) | 2,897 | | 427,192 |
| | 3,064,721 |
Oil, Gas & Consumable Fuels - 15.8% |
Chesapeake Energy Corp. | 10,800 | | 558,360 |
ConocoPhillips | 68,600 | | 5,909,883 |
CONSOL Energy, Inc. | 5,700 | | 461,472 |
EOG Resources, Inc. | 12,000 | | 1,565,760 |
Exxon Mobil Corp. | 34,070 | | 3,170,895 |
Hess Corp. | 5,100 | | 541,620 |
Common Stocks - continued |
| Shares | | Value |
ENERGY - continued |
Oil, Gas & Consumable Fuels - continued |
Occidental Petroleum Corp. | 25,500 | | $ 2,121,855 |
Quicksilver Resources, Inc. (a) | 18,600 | | 771,714 |
Suncor Energy, Inc. | 6,100 | | 688,378 |
Ultra Petroleum Corp. (a) | 18,800 | | 1,561,716 |
Uranium One, Inc. (a) | 16,100 | | 74,337 |
Valero Energy Corp. | 32,300 | | 1,577,855 |
| | 19,003,845 |
TOTAL ENERGY | | 22,068,566 |
FINANCIALS - 29.3% |
Capital Markets - 4.3% |
Charles Schwab Corp. | 13,800 | | 298,080 |
Franklin Resources, Inc. | 7,200 | | 685,080 |
Julius Baer Holding AG | 5,435 | | 403,272 |
KKR Private Equity Investors, LP | 25,783 | | 375,143 |
KKR Private Equity Investors, LP Restricted Depositary Units (e) | 1,300 | | 18,915 |
Lehman Brothers Holdings, Inc. | 43,200 | | 1,911,168 |
Morgan Stanley | 15,200 | | 738,720 |
State Street Corp. | 4,400 | | 317,416 |
T. Rowe Price Group, Inc. | 7,700 | | 450,912 |
| | 5,198,706 |
Commercial Banks - 2.7% |
Associated Banc-Corp. | 10,105 | | 285,668 |
HSBC Holdings PLC sponsored ADR | 6,800 | | 590,172 |
UniCredit SpA | 44,500 | | 339,078 |
Wachovia Corp. | 69,654 | | 2,030,414 |
| | 3,245,332 |
Consumer Finance - 0.3% |
Capital One Financial Corp. | 8,000 | | 424,000 |
Diversified Financial Services - 11.1% |
Bank of America Corp. | 133,592 | | 5,015,044 |
CIT Group, Inc. | 14,100 | | 153,549 |
Citigroup, Inc. | 154,500 | | 3,904,215 |
JPMorgan Chase & Co. | 83,540 | | 3,980,681 |
KKR Financial Holdings LLC | 25,500 | | 323,850 |
| | 13,377,339 |
Insurance - 6.8% |
ACE Ltd. | 11,800 | | 711,422 |
Common Stocks - continued |
| Shares | | Value |
FINANCIALS - continued |
Insurance - continued |
AMBAC Financial Group, Inc. | 2,700 | | $ 12,501 |
American International Group, Inc. | 86,990 | | 4,018,938 |
Argo Group International Holdings, Ltd. (a) | 8,791 | | 314,894 |
Everest Re Group Ltd. | 3,200 | | 289,120 |
Genworth Financial, Inc. Class A (non-vtg.) | 13,100 | | 302,086 |
Hartford Financial Services Group, Inc. | 10,350 | | 737,645 |
IPC Holdings Ltd. | 20,500 | | 596,755 |
LandAmerica Financial Group, Inc. | 4,500 | | 129,150 |
MBIA, Inc. | 5,000 | | 52,000 |
National Financial Partners Corp. (d) | 8,400 | | 226,128 |
Principal Financial Group, Inc. | 9,600 | | 515,136 |
XL Capital Ltd. Class A | 6,300 | | 219,807 |
| | 8,125,582 |
Real Estate Investment Trusts - 1.5% |
Alexandria Real Estate Equities, Inc. | 4,500 | | 472,635 |
Annaly Capital Management, Inc. | 27,000 | | 452,520 |
General Growth Properties, Inc. | 12,350 | | 505,856 |
Simon Property Group, Inc. | 3,600 | | 359,496 |
| | 1,790,507 |
Real Estate Management & Development - 0.7% |
CB Richard Ellis Group, Inc. Class A (a) | 36,300 | | 839,256 |
Thrifts & Mortgage Finance - 1.9% |
Countrywide Financial Corp. | 11,100 | | 64,158 |
Fannie Mae | 31,060 | | 878,998 |
FirstFed Financial Corp. (a)(d) | 14,100 | | 215,448 |
Freddie Mac | 8,000 | | 199,280 |
Washington Federal, Inc. | 19,864 | | 472,962 |
Washington Mutual, Inc. | 16,800 | | 206,472 |
Washington Mutual, Inc. (a)(f) | 17,400 | | 203,154 |
| | 2,240,472 |
TOTAL FINANCIALS | | 35,241,194 |
HEALTH CARE - 5.7% |
Biotechnology - 1.1% |
Amgen, Inc. (a) | 18,200 | | 762,034 |
Biogen Idec, Inc. (a) | 4,900 | | 297,381 |
Cephalon, Inc. (a) | 4,100 | | 255,881 |
| | 1,315,296 |
Common Stocks - continued |
| Shares | | Value |
HEALTH CARE - continued |
Health Care Equipment & Supplies - 1.8% |
Boston Scientific Corp. (a) | 29,900 | | $ 398,567 |
Covidien Ltd. | 20,675 | | 965,316 |
Medtronic, Inc. | 16,800 | | 817,824 |
| | 2,181,707 |
Health Care Providers & Services - 0.6% |
Brookdale Senior Living, Inc. | 12,300 | | 322,014 |
WellPoint, Inc. (a) | 7,900 | | 393,025 |
| | 715,039 |
Life Sciences Tools & Services - 0.3% |
Thermo Fisher Scientific, Inc. (a) | 5,850 | | 338,540 |
Pharmaceuticals - 1.9% |
Johnson & Johnson | 6,300 | | 422,667 |
Merck & Co., Inc. | 37,500 | | 1,426,500 |
Wyeth | 8,850 | | 393,560 |
| | 2,242,727 |
TOTAL HEALTH CARE | | 6,793,309 |
INDUSTRIALS - 8.7% |
Aerospace & Defense - 2.3% |
Honeywell International, Inc. | 21,840 | | 1,297,296 |
Raytheon Co. | 4,000 | | 255,880 |
United Technologies Corp. | 17,200 | | 1,246,484 |
| | 2,799,660 |
Air Freight & Logistics - 0.5% |
United Parcel Service, Inc. Class B | 8,200 | | 593,762 |
Airlines - 0.2% |
Delta Air Lines, Inc. (a) | 11,700 | | 99,567 |
Northwest Airlines Corp. (a) | 10,900 | | 105,294 |
| | 204,861 |
Building Products - 0.4% |
Masco Corp. | 15,250 | | 277,703 |
Owens Corning (a) | 9,100 | | 192,101 |
| | 469,804 |
Commercial Services & Supplies - 0.5% |
Allied Waste Industries, Inc. (a) | 24,700 | | 305,292 |
The Brink's Co. | 4,150 | | 301,913 |
| | 607,205 |
Common Stocks - continued |
| Shares | | Value |
INDUSTRIALS - continued |
Industrial Conglomerates - 3.3% |
General Electric Co. | 95,880 | | $ 3,135,276 |
Siemens AG sponsored ADR | 6,700 | | 793,615 |
| | 3,928,891 |
Machinery - 0.9% |
Illinois Tool Works, Inc. | 4,900 | | 256,221 |
Ingersoll-Rand Co. Ltd. Class A | 9,300 | | 412,734 |
Sulzer AG (Reg.) | 2,920 | | 383,173 |
| | 1,052,128 |
Road & Rail - 0.6% |
Con-way, Inc. | 4,000 | | 185,000 |
Knight Transportation, Inc. | 34,700 | | 589,553 |
| | 774,553 |
TOTAL INDUSTRIALS | | 10,430,864 |
INFORMATION TECHNOLOGY - 5.9% |
Communications Equipment - 0.8% |
Cisco Systems, Inc. (a) | 26,000 | | 666,640 |
Motorola, Inc. | 26,400 | | 262,944 |
| | 929,584 |
Computers & Peripherals - 1.8% |
Hewlett-Packard Co. | 25,550 | | 1,184,243 |
International Business Machines Corp. | 4,600 | | 555,220 |
NCR Corp. (a) | 15,200 | | 374,376 |
| | 2,113,839 |
Electronic Equipment & Instruments - 1.3% |
Amphenol Corp. Class A | 1,600 | | 73,888 |
Avnet, Inc. (a) | 17,100 | | 447,849 |
Flextronics International Ltd. (a) | 28,100 | | 291,959 |
Motech Industries, Inc. | 38,675 | | 334,703 |
Tyco Electronics Ltd. | 11,675 | | 436,762 |
| | 1,585,161 |
Internet Software & Services - 0.3% |
VeriSign, Inc. (a) | 9,800 | | 353,290 |
IT Services - 0.5% |
The Western Union Co. | 17,300 | | 397,900 |
Unisys Corp. (a) | 51,198 | | 212,984 |
| | 610,884 |
Common Stocks - continued |
| Shares | | Value |
INFORMATION TECHNOLOGY - continued |
Semiconductors & Semiconductor Equipment - 1.2% |
Analog Devices, Inc. | 6,700 | | $ 215,807 |
Applied Materials, Inc. | 17,300 | | 322,818 |
Atmel Corp. (a) | 31,050 | | 115,506 |
Lam Research Corp. (a) | 9,000 | | 367,560 |
Maxim Integrated Products, Inc. | 8,900 | | 187,167 |
Novellus Systems, Inc. (a) | 11,000 | | 240,460 |
ON Semiconductor Corp. (a) | 4,500 | | 33,615 |
| | 1,482,933 |
TOTAL INFORMATION TECHNOLOGY | | 7,075,691 |
MATERIALS - 3.1% |
Chemicals - 0.6% |
Agrium, Inc. | 3,200 | | 251,621 |
Albemarle Corp. | 8,600 | | 321,726 |
Chemtura Corp. | 18,400 | | 127,328 |
| | 700,675 |
Containers & Packaging - 0.1% |
Temple-Inland, Inc. | 8,600 | | 100,362 |
Metals & Mining - 2.4% |
Agnico-Eagle Mines Ltd. | 2,900 | | 182,132 |
Alcoa, Inc. | 22,800 | | 792,984 |
Allegheny Technologies, Inc. | 2,400 | | 165,192 |
ArcelorMittal SA (NY Reg.) Class A | 7,900 | | 703,811 |
Carpenter Technology Corp. | 6,600 | | 338,448 |
Lihir Gold Ltd. (a) | 86,711 | | 240,463 |
Newcrest Mining Ltd. | 10,863 | | 296,125 |
Randgold Resources Ltd. sponsored ADR | 5,700 | | 259,464 |
| | 2,978,619 |
TOTAL MATERIALS | | 3,779,656 |
TELECOMMUNICATION SERVICES - 6.7% |
Diversified Telecommunication Services - 6.5% |
AT&T, Inc. | 114,737 | | 4,441,469 |
Cincinnati Bell, Inc. (a) | 61,900 | | 287,216 |
Embarq Corp. | 5,300 | | 220,321 |
Qwest Communications International, Inc. | 62,200 | | 320,952 |
Verizon Communications, Inc. | 64,150 | | 2,468,492 |
| | 7,738,450 |
Common Stocks - continued |
| Shares | | Value |
TELECOMMUNICATION SERVICES - continued |
Wireless Telecommunication Services - 0.2% |
American Tower Corp. Class A (a) | 6,200 | | $ 269,204 |
TOTAL TELECOMMUNICATION SERVICES | | 8,007,654 |
UTILITIES - 5.8% |
Electric Utilities - 2.5% |
E.ON AG sponsored ADR | 6,300 | | 414,540 |
Edison International | 9,700 | | 506,049 |
Entergy Corp. | 10,100 | | 1,160,086 |
PPL Corp. | 19,000 | | 912,380 |
| | 2,993,055 |
Independent Power Producers & Energy Traders - 2.5% |
AES Corp. (a) | 20,200 | | 350,672 |
Constellation Energy Group, Inc. | 15,200 | | 1,286,680 |
NRG Energy, Inc. (a) | 14,600 | | 641,670 |
Reliant Energy, Inc. (a) | 27,600 | | 710,424 |
| | 2,989,446 |
Multi-Utilities - 0.8% |
CMS Energy Corp. | 20,400 | | 297,432 |
Sempra Energy | 7,300 | | 413,691 |
Wisconsin Energy Corp. | 5,500 | | 261,030 |
| | 972,153 |
TOTAL UTILITIES | | 6,954,654 |
TOTAL COMMON STOCKS (Cost $118,081,853) | 117,798,491 |
Convertible Preferred Stocks - 1.3% |
| | | |
FINANCIALS - 1.3% |
Capital Markets - 0.3% |
Lehman Brothers Holdings, Inc. 7.25% | 340 | | 401,511 |
Commercial Banks - 0.1% |
Wachovia Corp. 7.50% | 100 | | 115,327 |
Diversified Financial Services - 0.1% |
CIT Group, Inc. Series C, 8.75% | 1,000 | | 54,390 |
Convertible Preferred Stocks - continued |
| Shares | | Value |
FINANCIALS - continued |
Thrifts & Mortgage Finance - 0.8% |
Washington Mutual, Inc. (f) | 7 | | $ 983,200 |
TOTAL CONVERTIBLE PREFERRED STOCKS (Cost $1,190,000) | 1,554,428 |
Investment Companies - 0.2% |
| | | |
Ares Capital Corp.
(Cost $298,944) | 17,379 | | 195,688 |
Money Market Funds - 0.7% |
| | | |
Fidelity Cash Central Fund, 2.51% (b) | 343,724 | | 343,724 |
Fidelity Securities Lending Cash Central Fund, 2.44% (b)(c) | 547,750 | | 547,750 |
TOTAL MONEY MARKET FUNDS (Cost $891,474) | 891,474 |
TOTAL INVESTMENT PORTFOLIO - 100.3% (Cost $120,462,271) | | 120,440,081 |
NET OTHER ASSETS - (0.3)% | | (336,795) |
NET ASSETS - 100% | $ 120,103,286 |
Legend |
(a) Non-income producing |
(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. |
(c) Investment made with cash collateral received from securities on loan. |
(d) Security or a portion of the security is on loan at period end. |
(e) 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 end of the period, the value of these securities amounted to $18,915 or 0.0% of net assets. |
(f) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $1,186,354 or 1.0% of net assets. |
Additional information on each holding is as follows: |
Security | Acquisition Date | Acquisition Cost |
Washington Mutual, Inc. | 4/8/08 | $ 152,250 |
Washington Mutual, Inc. | 4/8/08 | $ 700,000 |
Affiliated Central Funds |
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows: |
Fund | Income earned |
Fidelity Cash Central Fund | $ 19,280 |
Fidelity Securities Lending Cash Central Fund | 16,721 |
Total | $ 36,001 |
Other Information |
Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited) |
United States of America | 87.5% |
Bermuda | 2.6% |
Canada | 2.3% |
Switzerland | 1.8% |
United Kingdom | 1.6% |
Germany | 1.0% |
Others (individually less than 1%) | 3.2% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
| April 30, 2008 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (including securities loaned of $515,338) - See accompanying schedule: Unaffiliated issuers (cost $119,570,797) | $ 119,548,607 | |
Fidelity Central Funds (cost $891,474) | 891,474 | |
Total Investments (cost $120,462,271) | | $ 120,440,081 |
Foreign currency held at value (cost $1) | | 1 |
Receivable for investments sold | | 3,217,559 |
Receivable for fund shares sold | | 81,531 |
Dividends receivable | | 215,917 |
Distributions receivable from Fidelity Central Funds | | 2,830 |
Prepaid expenses | | 279 |
Other receivables | | 113 |
Total assets | | 123,958,311 |
| | |
Liabilities | | |
Payable for investments purchased | $ 3,012,454 | |
Payable for fund shares redeemed | 144,212 | |
Accrued management fee | 56,122 | |
Distribution fees payable | 41,053 | |
Other affiliated payables | 31,457 | |
Other payables and accrued expenses | 21,977 | |
Collateral on securities loaned, at value | 547,750 | |
Total liabilities | | 3,855,025 |
| | |
Net Assets | | $ 120,103,286 |
Net Assets consist of: | | |
Paid in capital | | $ 123,151,002 |
Undistributed net investment income | | 376,313 |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | | (3,402,574) |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | | (21,455) |
Net Assets | | $ 120,103,286 |
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, 2008 (Unaudited) |
| | |
Calculation of Maximum Offering Price Class A:
Net Asset Value and redemption price per share ($60,112,280 ÷ 4,320,421 shares) | | $ 13.91 |
| | |
Maximum offering price per share (100/94.25 of $13.91) | | $ 14.76 |
Class T:
Net Asset Value and redemption price per share ($42,432,735 ÷ 3,063,225 shares) | | $ 13.85 |
| | |
Maximum offering price per share (100/96.50 of $13.85) | | $ 14.35 |
Class B:
Net Asset Value and offering price per share ($5,139,605 ÷ 375,107 shares)A | | $ 13.70 |
| | |
Class C:
Net Asset Value and offering price per share ($8,126,691 ÷ 594,849 shares)A | | $ 13.66 |
| | |
Institutional Class:
Net Asset Value, offering price and redemption price per share ($4,291,975 ÷ 306,625 shares) | | $ 14.00 |
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, 2008 (Unaudited) |
| | |
Investment Income | | |
Dividends | | $ 1,460,202 |
Interest | | 319 |
Income from Fidelity Central Funds | | 36,001 |
Total income | | 1,496,522 |
| | |
Expenses | | |
Management fee | $ 346,777 | |
Transfer agent fees | 172,391 | |
Distribution fees | 256,868 | |
Accounting and security lending fees | 24,598 | |
Custodian fees and expenses | 14,758 | |
Independent trustees' compensation | 266 | |
Registration fees | 30,808 | |
Audit | 28,022 | |
Legal | 236 | |
Miscellaneous | 15,778 | |
Total expenses before reductions | 890,502 | |
Expense reductions | (13,606) | 876,896 |
Net investment income (loss) | | 619,626 |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | | |
Investment securities: | | |
Unaffiliated issuers | (3,164,261) | |
Investment not meeting investment restrictions | 456 | |
Foreign currency transactions | (5,297) | |
Total net realized gain (loss) | | (3,169,102) |
Change in net unrealized appreciation (depreciation) on: Investment securities | (12,578,140) | |
Assets and liabilities in foreign currencies | 596 | |
Total change in net unrealized appreciation (depreciation) | | (12,577,544) |
Net gain (loss) | | (15,746,646) |
Net increase (decrease) in net assets resulting from operations | | $ (15,127,020) |
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, 2008
(Unaudited) | Year ended
October 31,
2007 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 619,626 | $ 708,191 |
Net realized gain (loss) | (3,169,102) | 7,019,812 |
Change in net unrealized appreciation (depreciation) | (12,577,544) | 5,194,437 |
Net increase (decrease) in net assets resulting
from operations | (15,127,020) | 12,922,440 |
Distributions to shareholders from net investment income | (766,736) | (203,521) |
Distributions to shareholders from net realized gain | (6,300,334) | (3,080,270) |
Total distributions | (7,067,070) | (3,283,791) |
Share transactions - net increase (decrease) | 580,461 | 71,133,838 |
Total increase (decrease) in net assets | (21,613,629) | 80,772,487 |
| | |
Net Assets | | |
Beginning of period | 141,716,915 | 60,944,428 |
End of period (including undistributed net investment income of $376,313 and undistributed net investment income of $592,692, respectively) | $ 120,103,286 | $ 141,716,915 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
| Six months ended April 30, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003H |
Selected Per-Share Data |
Net asset value, beginning of period | $ 16.40 | $ 15.08 | $ 13.22 | $ 11.70 | $ 10.37 | $ 10.00 |
Income from Investment Operations | | | | | | |
Net investment income (loss)E | .08 | .13 | .08 | .06 | .01 | -J |
Net realized and unrealized gain (loss) | (1.73) | 1.99 | 2.15 | 1.51 | 1.32 | .37 |
Total from investment operations | (1.65) | 2.12 | 2.23 | 1.57 | 1.33 | .37 |
Distributions from net investment income | (.12) | (.09) | (.04) | (.04) | - | - |
Distributions from net realized gain | (.72) | (.71) | (.33) | (.01) | - | - |
Total distributions | (.84)K | (.80) | (.37) | (.05) | - | - |
Net asset value, end of period | $ 13.91 | $ 16.40 | $ 15.08 | $ 13.22 | $ 11.70 | $ 10.37 |
Total ReturnB, C, D | (10.43)% | 14.64% | 17.20% | 13.40% | 12.83% | 3.70% |
Ratios to Average Net AssetsF, I | | | | | |
Expenses before reductions | 1.28%A | 1.28% | 1.41% | 1.50% | 3.39% | 5.52%A |
Expenses net of fee waivers, if any | 1.25%A | 1.25% | 1.25% | 1.30% | 1.50% | 1.75%A |
Expenses net of all reductions | 1.25%A | 1.24% | 1.24% | 1.26% | 1.47% | 1.73%A |
Net investment income (loss) | 1.16%A | .85% | .54% | .48% | .11% | (.05)%A |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 60,112 | $ 67,434 | $ 15,398 | $ 7,121 | $ 4,000 | $ 1,123 |
Portfolio turnover rateG | 73%A | 76% | 91% | 86% | 111% | 108%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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period June 17, 2003 (commencement of operations) to October 31, 2003.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Amount represents less than $.01 per share.
K Total distributions of $.839 per share is comprised of distributions from net investment income of $.117 and distributions from net realized gain of $.722 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, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003H |
Selected Per-Share Data |
Net asset value, beginning of period | $ 16.30 | $ 14.99 | $ 13.14 | $ 11.67 | $ 10.36 | $ 10.00 |
Income from Investment Operations | | | | | | |
Net investment income (loss)E | .06 | .09 | .04 | .03 | (.02) | (.01) |
Net realized and unrealized gain (loss) | (1.72) | 1.97 | 2.15 | 1.48 | 1.33 | .37 |
Total from investment operations | (1.66) | 2.06 | 2.19 | 1.51 | 1.31 | .36 |
Distributions from net investment income | (.07) | (.04) | (.01) | (.03) | - | - |
Distributions from net realized gain | (.72) | (.71) | (.33) | (.01) | - | - |
Total distributions | (.79)J | (.75) | (.34) | (.04) | - | - |
Net asset value, end of period | $ 13.85 | $ 16.30 | $ 14.99 | $ 13.14 | $ 11.67 | $ 10.36 |
Total ReturnB, C, D | (10.53)% | 14.31% | 16.93% | 12.96% | 12.64% | 3.60% |
Ratios to Average Net AssetsF, I | | | | | |
Expenses before reductions | 1.50%A | 1.53% | 1.65% | 1.72% | 3.30% | 5.77%A |
Expenses net of fee waivers, if any | 1.50%A | 1.50% | 1.50% | 1.55% | 1.75% | 2.00%A |
Expenses net of all reductions | 1.50%A | 1.49% | 1.49% | 1.51% | 1.72% | 1.98%A |
Net investment income (loss) | .91%A | .60% | .29% | .23% | (.14)% | (.30)%A |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 42,433 | $ 50,998 | $ 30,607 | $ 21,580 | $ 13,340 | $ 1,546 |
Portfolio turnover rate G | 73%A | 76% | 91% | 86% | 111% | 108%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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period June 17, 2003 (commencement of operations) to October 31, 2003.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Total distributions of $.790 per share is comprised of distributions from net investment income of $.068 and distributions from net realized gain of $.722 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, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003H |
Selected Per-Share Data |
Net asset value, beginning of period | $ 16.07 | $ 14.81 | $ 12.99 | $ 11.59 | $ 10.34 | $ 10.00 |
Income from Investment Operations | | | | | | |
Net investment income (loss)E | .03 | .01 | (.03) | (.03) | (.07) | (.03) |
Net realized and unrealized gain (loss) | (1.70) | 1.95 | 2.13 | 1.46 | 1.32 | .37 |
Total from investment operations | (1.67) | 1.96 | 2.10 | 1.43 | 1.25 | .34 |
Distributions from net investment income | - | - | - | (.02) | - | - |
Distributions from net realized gain | (.70) | (.70) | (.28) | (.01) | - | - |
Total distributions | (.70)J | (.70) | (.28) | (.03) | - | - |
Net asset value, end of period | $ 13.70 | $ 16.07 | $ 14.81 | $ 12.99 | $ 11.59 | $ 10.34 |
Total ReturnB, C, D | (10.72)% | 13.74% | 16.38% | 12.35% | 12.09% | 3.40% |
Ratios to Average Net AssetsF, I | | | | | |
Expenses before reductions | 2.04%A | 2.10% | 2.23% | 2.31% | 4.33% | 6.24%A |
Expenses net of fee waivers, if any | 2.00%A | 2.00% | 2.00% | 2.05% | 2.25% | 2.50%A |
Expenses net of all reductions | 2.00%A | 1.99% | 1.99% | 2.01% | 2.22% | 2.48%A |
Net investment income (loss) | .40%A | .10% | (.21)% | (.27)% | (.64)% | (.80)%A |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 5,140 | $ 6,734 | $ 5,734 | $ 4,240 | $ 2,560 | $ 1,125 |
Portfolio turnover rateG | 73%A | 76% | 91% | 86% | 111% | 108%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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period June 17, 2003 (commencement of operations) to October 31, 2003.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Total distributions of $.698 per share is comprised of distributions from net investment income of $.000 and distributions from net realized gain of $.698 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, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003H |
Selected Per-Share Data |
Net asset value, beginning of period | $ 16.04 | $ 14.80 | $ 12.99 | $ 11.58 | $ 10.34 | $ 10.00 |
Income from Investment Operations | | | | | | |
Net investment income (loss)E | .03 | .02 | (.03) | (.03) | (.07) | (.03) |
Net realized and unrealized gain (loss) | (1.70) | 1.93 | 2.13 | 1.47 | 1.31 | .37 |
Total from investment operations | (1.67) | 1.95 | 2.10 | 1.44 | 1.24 | .34 |
Distributions from net investment income | - | - | - | (.02) | - | - |
Distributions from net realized gain | (.71) | (.71) | (.29) | (.01) | - | - |
Total distributions | (.71)J | (.71) | (.29) | (.03) | - | - |
Net asset value, end of period | $ 13.66 | $ 16.04 | $ 14.80 | $ 12.99 | $ 11.58 | $ 10.34 |
Total ReturnB, C, D | (10.72)% | 13.69% | 16.38% | 12.45% | 11.99% | 3.40% |
Ratios to Average Net AssetsF, I | | | | | |
Expenses before reductions | 2.04%A | 2.09% | 2.22% | 2.30% | 4.39% | 6.24%A |
Expenses net of fee waivers, if any | 2.00%A | 2.00% | 2.00% | 2.05% | 2.25% | 2.50%A |
Expenses net of all reductions | 2.00%A | 1.99% | 1.99% | 2.01% | 2.22% | 2.48%A |
Net investment income (loss) | .40%A | .10% | (.21)% | (.27)% | (.64)% | (.80)%A |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 8,127 | $ 9,718 | $ 7,004 | $ 3,892 | $ 1,815 | $ 1,069 |
Portfolio turnover rateG | 73%A | 76% | 91% | 86% | 111% | 108%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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H For the period June 17, 2003 (commencement of operations) to October 31, 2003.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Total distributions of $.712 per share is comprised of distributions from net investment income of $.000 and distributions from net realized gain of $.712 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, 2008 | Years ended October 31, |
| (Unaudited) | 2007 | 2006 | 2005 | 2004 | 2003G |
Selected Per-Share Data |
Net asset value, beginning of period | $ 16.51 | $ 15.17 | $ 13.28 | $ 11.75 | $ 10.38 | $ 10.00 |
Income from Investment Operations | | | | | | |
Net investment income (loss)D | .10 | .17 | .11 | .09 | .04 | .01 |
Net realized and unrealized gain (loss) | (1.73) | 1.99 | 2.18 | 1.49 | 1.33 | .37 |
Total from investment operations | (1.63) | 2.16 | 2.29 | 1.58 | 1.37 | .38 |
Distributions from net investment income | (.15) | (.11) | (.07) | (.04) | - | - |
Distributions from net realized gain | (.72) | (.71) | (.33) | (.01) | - | - |
Total distributions | (.88)I | (.82) | (.40) | (.05) | - | - |
Net asset value, end of period | $ 14.00 | $ 16.51 | $ 15.17 | $ 13.28 | $ 11.75 | $ 10.38 |
Total ReturnB, C | (10.26)% | 14.89% | 17.58% | 13.47% | 13.20% | 3.80% |
Ratios to Average Net AssetsE, H | | | | | |
Expenses before reductions | .97%A | 1.00% | 1.04% | 1.14% | 3.41% | 5.27%A |
Expenses net of fee waivers, if any | .97%A | 1.00% | 1.00% | 1.06% | 1.25% | 1.50%A |
Expenses net of all reductions | .97%A | .99% | .99% | 1.02% | 1.22% | 1.48%A |
Net investment income (loss) | 1.43%A | 1.10% | .79% | .72% | .36% | .20%A |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 4,292 | $ 6,833 | $ 2,201 | $ 1,857 | $ 1,282 | $ 1,038 |
Portfolio turnover rateF | 73%A | 76% | 91% | 86% | 111% | 108%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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G For the period June 17, 2003 (commencement of operations) to October 31, 2003.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements 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 fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Total distributions of $.876 per share is comprised of distributions from net investment income of $.154 and distributions from net realized gain of $.722 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, 2008 (Unaudited)
1. Organization.
Fidelity Advisor Value Leaders 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.
2. Investments in Fidelity Central Funds.
The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.
3. Significant Accounting Policies.
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. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:
Semiannual Report
3. Significant Accounting Policies - continued
Security Valuation. Investments are valued and net asset value (NAV) per share is calculated (NAV calculation) as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.
When current market prices or quotations are not readily available or do not accurately reflect fair value, valuations may be determined in accordance with procedures adopted by the Board of Trustees. For example, when developments occur between the close of a market and the close of the NYSE that may materially affect the value of some or all of the securities, or when trading in a security is halted, those securities may be fair valued. Factors used in the determination of fair value may include monitoring news to identify significant market or security specific events such as changes in the value of U.S. securities markets, reviewing developments in foreign markets and evaluating the performance of ADRs, futures contracts and exchange-traded funds. Because the Fund's utilization of fair value pricing depends on market activity, the frequency with which fair value pricing is used cannot be predicted and may be utilized to a significant extent. The value of securities used for NAV calculation under fair value pricing may differ from published prices for the same securities.
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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Significant Accounting Policies - continued
Foreign Currency - continued
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. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV for processing shareholder transactions includes trades executed through the end of the prior business day. 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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. 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 each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not result in any unrecognized tax benefits in the accompanying financial statements. Each of the Fund's federal tax returns for the prior three fiscal years remains subject to examination by the Internal Revenue Service. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Semiannual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC) and losses deferred due to wash sales.
The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows:
Unrealized appreciation | $ 14,636,304 | |
Unrealized depreciation | (15,360,103) | |
Net unrealized appreciation (depreciation) | $ (723,799) | |
Cost for federal income tax purposes | $ 121,163,880 | |
New Accounting Pronouncement. In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and results in expanded disclosures about fair value measurements.
4. Operating Policies.
Repurchase Agreements. 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 which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
4. Operating Policies - continued
Repurchase Agreements - continued
ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
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 at the end of the Fund's Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $46,057,465 and $49,993,584, respectively.
The Fund realized a gain on the sale of an investment not meeting the investment restrictions of the Fund.
6. Fees and Other Transactions with Affiliates.
Management Fee and Expense Contract. 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 .30% of the Fund's average net assets and a group fee rate that averaged .26% 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 the performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of the Institutional Class of the Fund as compared to an appropriate benchmark index. The Fund's performance adjustment began on June 1, 2007 and subsequent months will be added until the performance period includes 36 months. The Fund's performance adjustment will take effect in May 2008. For the period, the total annualized management fee rate was .56% of the Fund's average net assets.
Semiannual Report
6. 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. 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 and the total amounts paid to and retained by FDC were as follows:
| Distribution
Fee | Service
Fee | Paid to
FDC | Retained
by FDC |
Class A | 0% | .25% | $ 76,799 | $ 33,011 |
Class T | .25% | .25% | 110,336 | 1,068 |
Class B | .75% | .25% | 27,763 | 21,064 |
Class C | .75% | .25% | 41,970 | 10,820 |
| | | $ 256,868 | $ 65,963 |
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, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges 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, 1.00% to .50% for certain purchases of Class A shares and ..25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained
by FDC |
Class A | $ 11,637 |
Class T | 2,823 |
Class B* | 4,672 |
Class C* | 978 |
| $ 20,110 |
* 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
Notes to Financial Statements (Unaudited) - continued
6. 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 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 shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each class to FIIOC were as follows:
| Amount | % of
Average
Net Assets* |
Class A | $ 88,741 | .29 |
Class T | 56,700 | .26 |
Class B | 8,393 | .30 |
Class C | 12,707 | .30 |
Institutional Class | 5,850 | .23 |
| $ 172,391 | |
* Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
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 were $1,557 for the period.
7. Committed Line of Credit.
The Fund participates with other funds managed by FMR in a $4.2 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, which amounted to $125 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Semiannual Report
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, 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. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $16,721.
9. Expense Reductions.
FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.
The following classes were in reimbursement during the period.
| Expense
Limitations | Reimbursement
from adviser |
| | |
Class A | 1.25% | $ 8,656 |
Class B | 2.00% | 1,180 |
Class C | 2.00% | 1,772 |
| | $ 11,608 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
9. 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 included payments of certain expenses on behalf of the Fund totaling $19 for the period. In addition, through arrangements with each class' transfer agent, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, credits reduced each class' transfer agent expense as noted in the table below.
| Transfer Agent
expense reduction | |
Class A | $ 1,829 | |
Class T | 117 | |
Institutional Class | 33 | |
| $ 1,979 | |
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
In December 2006, the Independent Trustees, with the assistance of independent counsel, completed an investigation regarding gifts, gratuities and business entertainment provided by certain brokers to certain individuals who were employed on FMR's domestic equity trading desk during the period 2002 to 2004. The Independent Trustees and FMR agreed that, despite the absence of proof that the Fidelity mutual funds experienced diminished execution quality as a result of the improper receipt of gifts and business entertainment, the conduct at issue was serious and was worthy of redress. Accordingly, the Independent Trustees requested, and FMR agreed to make, a payment of $42 million plus accrued interest, which equaled approximately $7.3 million, to certain Fidelity mutual funds.
In March 2008, the Trustees approved a method for allocating this payment among the funds and, in total, FMR paid the fund $1,965, which is recorded in the accompanying Statement of Operations.
Semiannual Report
10. Other - continued
In a related administrative order dated March 5, 2008, the U.S. Securities and Exchange Commission ("SEC") announced a settlement with FMR and FMR Co., Inc. (an affiliate of FMR) involving the SEC's regulatory rules for investment advisers and the improper receipt of gifts, gratuities and business entertainment. Without admitting or denying the SEC's findings, FMR agreed to pay an $8 million civil penalty to the United States Treasury.
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
April 30, 2008 | Year ended
October 31, 2007 |
From net investment income | | |
Class A | $ 490,285 | $ 95,578 |
Class T | 212,605 | 84,209 |
Institutional Class | 63,846 | 23,734 |
Total | $ 766,736 | $ 203,521 |
From net realized gain | | |
Class A | $ 3,025,520 | $ 798,354 |
Class T | 2,257,342 | 1,494,717 |
Class B | 289,370 | 288,272 |
Class C | 428,772 | 347,113 |
Institutional Class | 299,330 | 151,814 |
Total | $ 6,300,334 | $ 3,080,270 |
12. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended April 30,
2008 | Year ended
October 31,
2007 | Six months ended April 30,
2008 | Year ended
October 31,
2007 |
Class A | | | | |
Shares sold | 816,870 | 3,695,755 | $ 11,760,049 | $ 57,509,722 |
Reinvestment of distributions | 229,647 | 58,930 | 3,435,525 | 865,688 |
Shares redeemed | (838,194) | (663,449) | (11,723,151) | (10,352,319) |
Net increase (decrease) | 208,323 | 3,091,236 | $ 3,472,423 | $ 48,023,091 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
12. Share Transactions - continued
| Shares | Dollars |
| Six months ended
April 30,
2008 | Year ended
October 31, 2007 | Six months ended
April 30,
2008 | Year ended
October 31,
2007 |
Class T | | | | |
Shares sold | 253,243 | 1,421,685 | $ 3,585,771 | $ 21,932,526 |
Reinvestment of distributions | 159,872 | 102,412 | 2,383,698 | 1,498,284 |
Shares redeemed | (478,789) | (437,693) | (6,665,001) | (6,887,915) |
Net increase (decrease) | (65,674) | 1,086,404 | $ (695,532) | $ 16,542,895 |
Class B | | | | |
Shares sold | 34,305 | 214,346 | $ 474,637 | $ 3,232,327 |
Reinvestment of distributions | 18,065 | 18,230 | 266,998 | 264,152 |
Shares redeemed | (96,157) | (200,858) | (1,333,504) | (3,047,563) |
Net increase (decrease) | (43,787) | 31,718 | $ (591,869) | $ 448,916 |
Class C | | | | |
Shares sold | 90,496 | 300,918 | $ 1,222,433 | $ 4,603,445 |
Reinvestment of distributions | 26,400 | 22,867 | 388,869 | 330,886 |
Shares redeemed | (127,741) | (191,479) | (1,730,264) | (2,915,876) |
Net increase (decrease) | (10,845) | 132,306 | $ (118,962) | $ 2,018,455 |
Institutional Class | | | | |
Shares sold | 70,979 | 592,099 | $ 1,008,726 | $ 9,392,137 |
Reinvestment of distributions | 23,109 | 11,218 | 347,565 | 165,468 |
Shares redeemed | (201,352) | (334,584) | (2,841,890) | (5,457,124) |
Net increase (decrease) | (107,264) | 268,733 | $ (1,485,599) | $ 4,100,481 |
Semiannual Report
A special meeting of the fund's shareholders was held on May 14, 2008. The results of votes taken among shareholders on the proposals before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1 |
To elect a Board of Trustees.A |
| # of
Votes | % of
Votes |
James C. Curvey |
Affirmative | 8,514,961,004.35 | 97.348 |
Withheld | 231,994,591.94 | 2.652 |
TOTAL | 8,746,955,596.29 | 100.000 |
Dennis J. Dirks |
Affirmative | 8,525,899,114.46 | 97.473 |
Withheld | 221,056,481.83 | 2.527 |
TOTAL | 8,746,955,596.29 | 100.000 |
Edward C. Johnson 3d |
Affirmative | 8,497,196,105.85 | 97.145 |
Withheld | 249,759,490.44 | 2.855 |
TOTAL | 8,746,955,596.29 | 100.000 |
Alan J. Lacy |
Affirmative | 8,522,858,760.40 | 97.438 |
Withheld | 224,096,835.89 | 2.562 |
TOTAL | 8,746,955,596.29 | 100.000 |
Ned C. Lautenbach |
Affirmative | 8,523,008,335.52 | 97.440 |
Withheld | 223,947,260.77 | 2.560 |
TOTAL | 8,746,955,596.29 | 100.000 |
Joseph Mauriello |
Affirmative | 8,524,890,199.58 | 97.461 |
Withheld | 222,065,396.71 | 2.539 |
TOTAL | 8,746,955,596.29 | 100.000 |
Cornelia M. Small |
Affirmative | 8,525,649,323.51 | 97.470 |
Withheld | 221,306,272.78 | 2.530 |
TOTAL | 8,746,955,596.29 | 100.000 |
| # of
Votes | % of
Votes |
William S. Stavropoulos |
Affirmative | 8,514,682,431.03 | 97.345 |
Withheld | 232,273,165.26 | 2.655 |
TOTAL | 8,746,955,596.29 | 100.000 |
David M. Thomas |
Affirmative | 8,526,972,729.02 | 97.485 |
Withheld | 219,982,867.27 | 2.515 |
TOTAL | 8,746,955,596.29 | 100.000 |
Michael E. Wiley |
Affirmative | 8,523,710,850.33 | 97.448 |
Withheld | 223,244,745.96 | 2.552 |
TOTAL | 8,746,955,596.29 | 100.000 |
PROPOSAL 2 |
To amend the Declaration of Trust of Fidelity Advisor Series VIII to reduce the required quorum for future shareholder meetings.A |
| # of
Votes | % of
Votes |
Affirmative | 4,574,398,791.46 | 52.297 |
Against | 2,140,778,913.08 | 24.475 |
Abstain | 230,752,610.67 | 2.638 |
Broker
Non-Votes | 1,801,025,281.08 | 20.590 |
TOTAL | 8,746,955,596.29 | 100.000 |
A Denotes trust-wide proposal and voting results.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Research & Analysis Company
Fidelity International
Investment Advisors
Fidelity Investments Japan Limited
Fidelity International Investment Advisors (U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Brown Brothers Harriman & Company
Boston, MA
AVLFI-USAN-0608 1.800658.104
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. Investments
(a) Not applicable.
(b) Not applicable
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9. Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders
There were no material changes to the procedures by which shareholders may recommend nominees to the Fidelity Advisor Series VIII's Board of Trustees.
Item 11. Controls and Procedures
(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the Fidelity Advisor Series VIII's (the "Trust") disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) provide reasonable assurances that material information relating to the Trust 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 was no change in the Trust's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Trust's internal control over financial reporting.
Item 12. Exhibits
(a) | (1) | Not applicable. |
(a) | (2) | Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT. |
(a) | (3) | Not applicable. |
(b) | | Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and 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/ Kenneth Robins |
| Kenneth Robins |
| President and Treasurer |
| |
Date: | June 27, 2008 |
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/ Kenneth Robins |
| Kenneth Robins |
| President and Treasurer |
| |
Date: | June 27, 2008 |
By: | /s/Joseph B. Hollis |
| Joseph B. Hollis |
| Chief Financial Officer |
| |
Date: | June 27, 2008 |
