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 811-4008
Fidelity Investment Trust
(Exact name of registrant as specified in charter)
82 Devonshire St., Boston, Massachusetts 02109
(Address of principal executive offices) (Zip code)
Eric D. Roiter, Secretary
82 Devonshire St.
Boston, Massachusetts 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: 617-563-7000
Date of fiscal year end: | October 31 |
Date of reporting period: | October 31, 2003 |
Item 1. Reports to Stockholders
Fidelity's
Targeted International Equity
Funds®
Fidelity® Canada Fund
Fidelity China Region Fund
Fidelity Emerging Markets Fund
Fidelity Europe Fund
Fidelity Europe Capital Appreciation Fund
Fidelity Japan Fund
Fidelity Japan Smaller Companies Fund
Fidelity Latin America Fund
Fidelity Nordic Fund
Fidelity Pacific Basin Fund
Fidelity Southeast Asia Fund
Annual Report
October 31, 2003
Canada Fund | A-4 | Performance |
A-5 | Management's Discussion | |
A-6 | Investment Changes | |
A-7 | Investments | |
A-10 | Financial Statements | |
China Region Fund | A-12 | Performance |
A-13 | Management's Discussion | |
A-14 | Investment Changes | |
A-15 | Investments | |
A-18 | Financial Statements | |
Emerging Markets Fund | A-20 | Performance |
A-21 | Management's Discussion | |
A-22 | Investment Changes | |
A-23 | Investments | |
A-26 | Financial Statements | |
Europe Fund | A-28 | Performance |
A-29 | Management's Discussion | |
A-30 | Investment Changes | |
A-31 | Investments | |
A-33 | Financial Statements | |
Europe Capital Appreciation Fund | A-35 | Performance |
A-36 | Management's Discussion | |
A-37 | Investment Changes | |
A-38 | Investments | |
A-41 | Financial Statements | |
Japan Fund | A-43 | Performance |
A-44 | Management's Discussion | |
A-45 | Investment Changes | |
A-46 | Investments | |
A-49 | Financial Statements | |
Japan Smaller Companies Fund | A-51 | Performance |
A-52 | Management's Discussion | |
A-53 | Investment Changes | |
A-54 | Investments | |
A-58 | Financial Statements | |
Latin America Fund | A-60 | Performance |
A-61 | Management's Discussion | |
A-62 | Investment Changes | |
A-63 | Investments | |
A-65 | Financial Statements | |
Nordic Fund | A-67 | Performance |
A-68 | Management's Discussion | |
A-69 | Investment Changes | |
A-70 | Investments | |
A-72 | Financial Statements | |
Pacific Basin Fund | A-74 | Performance |
A-75 | Management's Discussion | |
A-76 | Investment Changes | |
A-77 | Investments | |
A-80 | Financial Statements | |
Southeast Asia Fund | A-82 | Performance |
A-83 | Management's Discussion | |
A-84 | Investment Changes | |
A-85 | Investments | |
A-88 | Financial Statements | |
Notes to Financial Statements | A-90 | Notes to the Financial Statements |
Report of Independent Auditors | A-96 | |
Independent Auditors' Report | A-97 | |
Trustees and Officers | A-98 | |
Distributions | A-103 | |
Prospectus | P-1 |
For a free copy of the funds' proxy voting guidelines visit www.fidelity.com/goto/proxyguidelines, call 1-800-544-8544, or visit the Securities and Exchange Commission (SEC)'s web site at www.sec.gov.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by
Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR Corp. or an affiliated company.
(Recycle graphic) This report is printed on recycled paper using soy-based inks.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the funds. This report is not authorized for distribution to prospective investors in the funds unless preceded or accompanied by an effective prospectus.
Mutual fund shares are not deposits or obligations of, or guaranteed by, any depository institution. Shares are not insured by the FDIC, Federal Reserve Board or any other agency, and are subject to investment risks, including possible loss of principal amount invested.
Neither the funds nor Fidelity Distributors Corporation is a bank. For more information on any Fidelity fund, including charges and expenses, call 1-800-544-6666 for a free prospectus. Read it carefully before you invest or send money.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity a fund's total returns will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended | Past 1 | Past 5 | Past 10 |
Fidelity Canada | 43.75% | 15.18% | 7.86% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® Canada Fund on October 31, 1993. The chart shows how the value of your investment would have grown, and also shows how the S&P/TSX Composite Index did over the same period.
Annual Report
Management's Discussion of Fund Performance
Comments from Maxime Lemieux, Portfolio Manager of Fidelity® Canada Fund
Mirroring the U.S. rally, most international stock markets rebounded sharply during the 12-month period ending October 31, 2003. Encouraged by improved corporate earnings, favorable interest rates and the easing of geopolitical tensions, the Morgan Stanley Capital InternationalSM Europe, Australasia, Far East (MSCI® EAFE®) Index - a proxy for stock markets outside the United States and Canada - gained 27.39% during the past year. From a regional perspective, all 16 countries in the MSCI Europe index - which gained 24.56% - had double-digit advances. Spain, Denmark and Sweden were among the region's best performers. In Japan, increased capital spending, exports and machinery orders helped the Tokyo Stock Exchange Stock Price Index (TOPIX) advance 36.39%. Following the SARS epidemic, other Asian markets also rebounded. For instance, the Hong Kong market, as measured by the Hang Seng Index, gained 34.51%. Emerging markets also fared well, particularly Latin America. The MSCI Emerging Markets Free-Latin America index rose 59.75%. Canadian equities, as measured by the S&P/TSX Composite Index, also posted an impressive annual gain, advancing 50.66%.
For the 12-month period that ended October 31, 2003, Fidelity Canada Fund gained 43.75%, falling short of the S&P/TSX Composite Index, which rose 50.66% during the same time frame. Despite its strong absolute gains, the fund lagged its benchmark because of an underweighting in banks, which performed well during the period, and an underweighted position in Nortel, which also posted strong performance. Meridian Gold, which saw a delay in opening a new mine, and Zarlink Semiconductor, whose product mix is not keeping pace, also detracted from performance. The strength of the Canadian dollar had a negative impact on relative performance, too, as the fund's somewhat large cash position, denominated in U.S. dollars, lost ground to the rising Canadian currency and, because it was not invested in the market, it also did not participate in the market's strong overall showing during the period. The largest contributions to positive performance came from an overweighted exposure to semiconductors - notably Tundra Semiconductor and ATI Technologies. Astute stock picking in technology equipment - Research in Motion, in particular - and in capital markets, including Home Capital Group, also helped.
The views expressed in this statement reflect those of the portfolio manager only through the end of the period of the report as stated on the cover and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Investment Changes
Geographic Diversification (% of fund's net assets) | |||
As of October 31, 2003 | |||
Canada | 95.9% | ||
United States of America | 4.1% |
Percentages are adjusted for the effect of futures contracts, if applicable. |
As of April 30, 2003 | |||
Canada | 92.4% | ||
United States of America | 7.6% |
Percentages are adjusted for the effect of futures contracts, if applicable. |
Asset Allocation | ||
% of fund's | % of fund's net assets | |
Stocks | 97.1 | 94.7 |
Short-Term Investments and | 2.9 | 5.3 |
Top Ten Stocks as of October 31, 2003 | ||
% of fund's | % of fund's net assets | |
Bank of Nova Scotia | 4.8 | 3.6 |
Royal Bank of Canada (Commercial Banks) | 4.3 | 6.0 |
Canadian Imperial Bank of Commerce (Commercial Banks) | 4.3 | 1.3 |
BCE, Inc. (Diversified Telecommunication Services) | 4.1 | 4.3 |
Nortel Networks Corp. (Communications Equipment) | 3.1 | 1.0 |
Toronto-Dominion Bank (Commercial Banks) | 3.0 | 1.0 |
Canadian National Railway Co. (Road & Rail) | 3.0 | 2.8 |
EnCana Corp. (Oil & Gas) | 2.8 | 4.4 |
Alcan, Inc. (Metals & Mining) | 2.6 | 2.8 |
National Bank of Canada (Commercial Banks) | 2.3 | 2.0 |
34.3 | ||
Market Sectors as of October 31, 2003 | ||
% of fund's | % of fund's net assets | |
Financials | 29.7 | 28.3 |
Materials | 13.8 | 11.9 |
Energy | 12.6 | 15.8 |
Information Technology | 11.7 | 6.3 |
Industrials | 8.2 | 7.7 |
Consumer Discretionary | 7.0 | 5.4 |
Telecommunication Services | 6.8 | 6.9 |
Consumer Staples | 3.8 | 5.5 |
Utilities | 2.3 | 3.9 |
Health Care | 1.2 | 3.0 |
Annual Report
Investments October 31, 2003
Showing Percentage of Net Assets
Common Stocks - 97.1% | |||
Shares | Value (Note 1) | ||
CONSUMER DISCRETIONARY - 7.0% | |||
Auto Components - 1.0% | |||
Magna International, Inc. Class A | 21,000 | $ 1,683,982 | |
Hotels, Restaurants & Leisure - 0.3% | |||
Fairmont Hotels & Resorts, Inc. | 20,000 | 514,979 | |
Leisure Equipment & Products - 0.7% | |||
Mega Bloks, Inc. (a) | 61,000 | 1,161,244 | |
Mega Bloks, Inc. (a)(c) | 4,000 | 76,147 | |
1,237,391 | |||
Media - 3.9% | |||
Alliance Atlantis Communications, Inc. Class B (non-vtg.) (a) | 40,000 | 650,739 | |
Astral Media, Inc. Class A (non-vtg.) | 54,000 | 1,073,038 | |
Chum Ltd. Class B (non-vtg.) | 20,000 | 823,663 | |
Corus Entertainment, Inc. Class B (a) | 5,000 | 102,389 | |
Quebecor, Inc. Class B (sub. vtg.) (a) | 70,000 | 1,104,285 | |
Rogers Communications, Inc. Class B (non-vtg.) | 95,000 | 1,495,070 | |
Thomson Corp. | 11,000 | 360,076 | |
Torstar Corp. Class B | 40,000 | 849,450 | |
6,458,710 | |||
Specialty Retail - 0.8% | |||
RONA, Inc. | 72,000 | 1,337,884 | |
Textiles Apparel & Luxury Goods - 0.3% | |||
Gildan Activewear, Inc. Class A | 18,000 | 493,020 | |
TOTAL CONSUMER DISCRETIONARY | 11,725,966 | ||
CONSUMER STAPLES - 3.8% | |||
Beverages - 0.6% | |||
Molson, Inc. Class A | 40,000 | 1,032,689 | |
Food & Staples Retailing - 2.6% | |||
Alimentation Couche-Tard, Inc.: | |||
rights 5/31/04 (a) | 22,000 | 319,113 | |
Class B (sub. vtg.) (a) | 84,000 | 1,433,447 | |
Jean Coutu Group, Inc. Class A | 55,000 | 698,711 | |
Loblaw Companies Ltd. | 33,000 | 1,598,066 | |
Metro, Inc. Class A (sub. vtg.) | 20,000 | 301,100 | |
4,350,437 | |||
Food Products - 0.6% | |||
Saputo, Inc. | 46,000 | 914,069 | |
TOTAL CONSUMER STAPLES | 6,297,195 | ||
ENERGY - 12.6% | |||
Energy Equipment & Services - 3.7% | |||
CCS Income Trust unit | 45,000 | 818,771 | |
CHC Helicopter Corp. Class A (sub. vtg.) | 100,000 | 2,085,703 | |
Ensign Resource Service Group, Inc. | 50,000 | 756,542 | |
Pason Systems, Inc. | 6,800 | 100,569 | |
Shares | Value (Note 1) | ||
Precision Drilling Corp. (a) | 32,000 | $ 1,258,885 | |
Savanna Energy Services Corp. (a) | 100,000 | 568,828 | |
Trican Well Service Ltd. (a) | 36,000 | 627,986 | |
6,217,284 | |||
Oil & Gas - 8.9% | |||
Cequel Energy, Inc. (a) | 110,000 | 634,054 | |
EnCana Corp. | 135,016 | 4,635,703 | |
Penn West Petroleum Ltd. (a) | 54,000 | 1,838,498 | |
Petro-Canada | 93,000 | 3,747,509 | |
PetroKazakhstan, Inc. Class A (a) | 55,000 | 1,251,422 | |
Peyto Energy Trust | 35,000 | 599,924 | |
Talisman Energy, Inc. | 33,000 | 1,611,581 | |
Thunder Energy, Inc. (a) | 100,000 | 539,249 | |
14,857,940 | |||
TOTAL ENERGY | 21,075,224 | ||
FINANCIALS - 29.7% | |||
Capital Markets - 2.0% | |||
AGF Management Ltd. Class B (non-vtg.) | 40,000 | 524,839 | |
C.I. Fund Management, Inc. | 115,000 | 1,286,500 | |
Home Capital Group, Inc. Class B | 40,000 | 881,305 | |
Investors Group, Inc. | 31,000 | 685,362 | |
3,378,006 | |||
Commercial Banks - 20.7% | |||
Bank of Montreal, Quebec | 88,000 | 3,292,408 | |
Bank of Nova Scotia | 162,000 | 8,044,097 | |
Canadian Imperial Bank of Commerce | 160,000 | 7,185,135 | |
National Bank of Canada | 125,000 | 3,878,460 | |
Royal Bank of Canada | 150,000 | 7,221,843 | |
Toronto-Dominion Bank | 150,000 | 4,989,761 | |
34,611,704 | |||
Diversified Financial Services - 1.3% | |||
Power Corp. of Canada (sub. vtg.) | 65,000 | 2,135,116 | |
Insurance - 5.7% | |||
Fairfax Financial Holdings Ltd. | 4,000 | 621,889 | |
Great-West Lifeco, Inc. | 74,000 | 2,291,559 | |
Industrial Alliance Life Insurance Co. | 38,000 | 1,124,005 | |
Manulife Financial Corp. | 64,000 | 1,941,600 | |
Sun Life Financial, Inc. | 143,951 | 3,558,106 | |
9,537,159 | |||
TOTAL FINANCIALS | 49,661,985 | ||
HEALTH CARE - 1.2% | |||
Pharmaceuticals - 1.2% | |||
Angiotech Pharmaceuticals, Inc. (a) | 42,000 | 1,924,323 | |
INDUSTRIALS - 8.2% | |||
Aerospace & Defense - 0.6% | |||
Bombardier, Inc. Class B (sub. vtg.) | 220,000 | 987,789 | |
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
INDUSTRIALS - continued | |||
Airlines - 0.8% | |||
WestJet Airlines Ltd. (a) | 59,000 | $ 1,284,710 | |
Commercial Services & Supplies - 1.0% | |||
MacDonald Dettwiler & Associates Ltd. (a) | 44,000 | 759,196 | |
Moore Wallace, Inc. (a) | 64,000 | 916,921 | |
1,676,117 | |||
Machinery - 0.2% | |||
ATS Automation Tooling Systems, Inc. (a) | 30,000 | 323,094 | |
Marine - 0.6% | |||
CP Ships Ltd. | 56,000 | 1,059,689 | |
Road & Rail - 4.2% | |||
Canadian National Railway Co. | 83,000 | 4,988,813 | |
Mullen Transportation, Inc. | 36,300 | 970,478 | |
TransForce Income Fund Trust unit | 150,000 | 995,449 | |
6,954,740 | |||
Trading Companies & Distributors - 0.8% | |||
Finning International, Inc. | 36,000 | 824,300 | |
Russel Metals, Inc. | 110,000 | 609,025 | |
1,433,325 | |||
TOTAL INDUSTRIALS | 13,719,464 | ||
INFORMATION TECHNOLOGY - 11.7% | |||
Communications Equipment - 5.4% | |||
Nortel Networks Corp. (a) | 1,169,600 | 5,204,724 | |
Research in Motion Ltd. (a) | 87,000 | 3,842,912 | |
9,047,636 | |||
Computers & Peripherals - 2.6% | |||
ATI Technologies, Inc. (a) | 165,000 | 2,362,685 | |
Cinram International, Inc. | 94,000 | 1,958,422 | |
4,321,107 | |||
Electronic Equipment & Instruments - 0.6% | |||
Dalsa Corp. (a) | 34,000 | 361,016 | |
Dalsa Corp. (a)(c) | 12,400 | 131,665 | |
Onex Corp. (sub. vtg.) | 42,000 | 481,001 | |
973,682 | |||
Internet Software & Services - 0.9% | |||
Open Text Corp. (a) | 74,000 | 1,473,265 | |
IT Services - 1.2% | |||
Affiliated Computer Services, Inc. | 16,000 | 782,880 | |
CGI Group, Inc. Class A (sub. vtg.) (a) | 230,000 | 1,310,049 | |
2,092,929 | |||
Semiconductors & Semiconductor Equipment - 0.6% | |||
Tundra Semiconductor Corp. Ltd. (a) | 40,600 | 659,269 | |
Zarlink Semiconductor, Inc. (a) | 90,300 | 279,427 | |
938,696 | |||
Shares | Value (Note 1) | ||
Software - 0.4% | |||
Cognos, Inc. (a) | 20,000 | $ 690,482 | |
TOTAL INFORMATION TECHNOLOGY | 19,537,797 | ||
MATERIALS - 13.8% | |||
Chemicals - 0.5% | |||
Potash Corp. of Saskatchewan | 12,000 | 942,435 | |
Metals & Mining - 12.7% | |||
Aber Diamond Corp. (a) | 30,000 | 947,668 | |
Agnico-Eagle Mines Ltd. | 42,000 | 458,066 | |
Alcan, Inc. | 110,000 | 4,388,320 | |
Cameco Corp. | 57,000 | 2,468,487 | |
Dofasco, Inc. | 24,000 | 580,114 | |
Gabriel Resources Ltd. (a) | 225,100 | 686,312 | |
Gabriel Resources Ltd. (a)(c) | 60,000 | 182,935 | |
Gerdau AmeriSteel Corp. (a) | 176,000 | 481,881 | |
Goldcorp, Inc. | 70,000 | 1,100,038 | |
IAMGOLD Corp. | 75,000 | 563,140 | |
Inco Ltd. (a) | 55,000 | 1,824,573 | |
Inmet Mining Corp. (a) | 50,000 | 452,787 | |
Kinross Gold Corp. (a)(c) | 30,000 | 245,961 | |
Kinross Gold Corp. (a) | 189,999 | 1,557,747 | |
Lionore Mining International Ltd. (a) | 175,000 | 1,035,267 | |
Meridian Gold, Inc. (a) | 45,000 | 570,648 | |
Newmont Mining Corp. Holding Co. | 31,000 | 1,357,180 | |
SouthernEra Resources Ltd. (a) | 82,100 | 358,662 | |
Wheaton River Minerals Ltd. (a) | 825,000 | 1,914,676 | |
21,174,462 | |||
Paper & Forest Products - 0.6% | |||
Abitibi-Consolidated, Inc. | 70,000 | 470,914 | |
Domtar, Inc. | 50,000 | 556,693 | |
1,027,607 | |||
TOTAL MATERIALS | 23,144,504 | ||
TELECOMMUNICATION SERVICES - 6.8% | |||
Diversified Telecommunication Services - 6.6% | |||
BCE, Inc. | 300,000 | 6,791,809 | |
Manitoba Telecom Services, Inc. | 35,000 | 1,066,325 | |
TELUS Corp. (non-vtg.) | 180,000 | 3,152,218 | |
11,010,352 | |||
Wireless Telecommunication Services - 0.2% | |||
Telesystem International Wireless, Inc. (a) | 65,000 | 429,882 | |
TOTAL TELECOMMUNICATION SERVICES | 11,440,234 | ||
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
UTILITIES - 2.3% | |||
Gas Utilities - 2.3% | |||
Terasen, Inc. | 22,000 | $ 772,044 | |
TransCanada Corp. | 150,000 | 3,060,296 | |
3,832,340 | |||
TOTAL COMMON STOCKS (Cost $123,805,887) | 162,359,032 | ||
Money Market Funds - 5.4% | |||
Fidelity Cash Central Fund, 1.07% (b) | 5,819,851 | 5,819,851 | |
Fidelity Securities Lending Cash Central Fund, 1.09% (b) | 3,259,200 | 3,259,200 | |
TOTAL MONEY MARKET FUNDS (Cost $9,079,051) | 9,079,051 |
TOTAL INVESTMENT PORTFOLIO - 102.5% (Cost $132,884,938) | 171,438,083 |
NET OTHER ASSETS - (2.5)% | (4,232,914) | ||
NET ASSETS - 100% | $ 167,205,169 |
Legend |
(a) Non-income producing |
(b) The rate quoted is the annualized seven-day yield of the fund at period end. A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request. |
(c) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the period end, the value of these securities amounted to $636,708 or 0.4% of net assets. |
Other Information |
Purchases and sales of securities, other than short-term securities, aggregated $101,500,485 and $52,514,942, respectively. |
The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $42 for the period. |
Income Tax Information |
At October 31, 2003, the fund had a capital loss carryforward of approximately $20,201,000 all of which will expire on October 31, 2009. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements
Statement of Assets and Liabilities
October 31, 2003 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $3,081,693) (cost $132,884,938) - See accompanying schedule | $ 171,438,083 | |
Foreign currency held at value (cost $256,662) | 256,662 | |
Receivable for investments sold | 1,275,561 | |
Receivable for fund shares sold | 935,613 | |
Dividends receivable | 131,052 | |
Interest receivable | 4,566 | |
Redemption fees receivable | 35 | |
Prepaid expenses | 622 | |
Other receivables | 12,619 | |
Total assets | 174,054,813 | |
Liabilities | ||
Payable to custodian bank | $ 170 | |
Payable for investments purchased | 3,358,190 | |
Payable for fund shares redeemed | 56,668 | |
Accrued management fee | 112,997 | |
Other payables and accrued expenses | 62,419 | |
Collateral on securities loaned, at value | 3,259,200 | |
Total liabilities | 6,849,644 | |
Net Assets | $ 167,205,169 | |
Net Assets consist of: | ||
Paid in capital | $ 149,200,594 | |
Undistributed net investment income | 125,080 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (20,672,021) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 38,551,516 | |
Net Assets, for 6,653,605 shares outstanding | $ 167,205,169 | |
Net Asset Value, offering price and redemption price per share ($167,205,169 ÷ 6,653,605 shares) | $ 25.13 |
Statement of Operations
Year ended October 31, 2003 | ||
Investment Income | ||
Dividends | $ 1,744,759 | |
Interest | 52,456 | |
Security lending | 170,053 | |
1,967,268 | ||
Less foreign taxes withheld | (259,806) | |
Total income | 1,707,462 | |
Expenses | ||
Management fee | $ 761,393 | |
Performance adjustment | 201,225 | |
Transfer agent fees | 326,817 | |
Accounting and security lending fees | 70,025 | |
Non-interested trustees' compensation | 498 | |
Custodian fees and expenses | 58,440 | |
Registration fees | 16,266 | |
Audit | 52,375 | |
Legal | 300 | |
Miscellaneous | 777 | |
Total expenses before reductions | 1,488,116 | |
Expense reductions | (52,686) | 1,435,430 |
Net investment income (loss) | 272,032 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities | 7,377,897 | |
Foreign currency transactions | 50,828 | |
Total net realized gain (loss) | 7,428,725 | |
Change in net unrealized appreciation (depreciation) on: Investment securities | 31,725,432 | |
Assets and liabilities in foreign currencies | 242 | |
Total change in net unrealized appreciation (depreciation) | 31,725,674 | |
Net gain (loss) | 39,154,399 | |
Net increase (decrease) in net assets resulting from operations | $ 39,426,431 | |
Other Information | ||
Sales charges paid to FDC | $ 4,588 | |
Deferred sales charges withheld by FDC | $ 533 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Canada
Financial Statements - continued
Statement of Changes in Net Assets
Year ended | Year ended | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $ 272,032 | $ 104,598 |
Net realized gain (loss) | 7,428,725 | 2,272,697 |
Change in net unrealized appreciation (depreciation) | 31,725,674 | (1,493,960) |
Net increase (decrease) in net assets resulting from operations | 39,426,431 | 883,335 |
Distributions to shareholders from net investment income | (173,335) | (137,404) |
Share transactions | 82,146,645 | 23,992,071 |
Reinvestment of distributions | 167,386 | 132,873 |
Cost of shares redeemed | (31,704,354) | (28,901,658) |
Net increase (decrease) in net assets resulting from share transactions | 50,609,677 | (4,776,714) |
Redemption fees | 91,826 | 68,844 |
Total increase (decrease) in net assets | 89,954,599 | (3,961,939) |
Net Assets | ||
Beginning of period | 77,250,570 | 81,212,509 |
End of period (including undistributed net investment income of $125,080 and distributions in excess of net investment income of $53,336, respectively) | $ 167,205,169 | $ 77,250,570 |
Other Information Shares | ||
Sold | 3,767,421 | 1,236,594 |
Issued in reinvestment of distributions | 9,258 | 7,128 |
Redeemed | (1,533,580) | (1,547,364) |
Net increase (decrease) | 2,243,099 | (303,642) |
Financial Highlights
See accompanying notes which are an integral part of the financial statements.
Annual Report
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity a fund's total returns will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended | Past 1 | Past 5 | Life of |
Fidelity China Region | 37.91% | 10.45% | 7.03% |
A From November 1, 1995
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity China Region Fund on November 1, 1995, when the fund started. The chart shows how the value of your investment would have grown, and also shows how the Hang Seng Index did over the same period.
Annual Report
Management's Discussion of Fund Performance
Comments from Joseph Tse, Portfolio Manager of Fidelity China Region Fund
Mirroring the U.S. rally, most international stock markets rebounded sharply during the 12-month period ending October 31, 2003. Encouraged by improved corporate earnings, favorable interest rates and the easing of geopolitical tensions, the Morgan Stanley Capital International Europe, Australasia, Far East (MSCI EAFE) Index - a proxy for stock markets outside the United States and Canada - gained 27.39% during the past year. From a regional perspective, all 16 countries in the MSCI Europe index - which gained 24.56% - had double-digit advances. Spain, Denmark and Sweden were among the region's best performers. In Japan, increased capital spending, exports and machinery orders helped the Tokyo Stock Exchange Stock Price Index (TOPIX) advance 36.39%. Following the SARS epidemic, other Asian markets also rebounded. For instance, the Hong Kong market, as measured by the Hang Seng Index, gained 34.51%. Emerging markets also fared well, particularly Latin America. The MSCI Emerging Markets Free-Latin America index rose 59.75%. Canadian equities, as measured by the S&P/TSX Composite Index, also posted an impressive annual gain, advancing 50.66%.
Fidelity China Region Fund gained 37.91% during the one-year period ending October 31, 2003, while the Hang Seng Index and the LipperSM China Region Funds Average rose 34.51% and 53.26%, respectively. During the same period, the Fidelity China Region Fund Linked Index returned 42.89%. The fund beat the Hang Seng largely due to good stock picking in Hong Kong and an overweighting in stronger-performing Chinese and Taiwanese equities. However, we failed to keep pace with many of our competitors, which tended to be far heavier in China on average. The fund's underexposure to tech stocks in Taiwan and the smallest-cap names in China - which fared the best - curbed its upside versus the Linked index. Overall, the fund's more-defensive positioning hurt results, particularly its emphasis on such lagging Hong Kong real estate stocks as Cheung Kong Holdings and Sun Hung Kai Properties. A structural underweighting in multinational bank HSBC further detracted, as did concentrated holdings in domestic banks and defensive financials, such as Hang Seng Bank and Guoco Group. Conversely, positions in several small- and mid-cap Hong Kong consumer goods/technology exporters - including Yue Yuen and Varitronix, respectively - boosted relative returns. Security selection in consumer staples and telecommunication services also helped, led by such stocks as Dairy Farm and China Telecom, respectively. Some stocks I've mentioned were not held at period end.
The views expressed in this statement reflect those of the portfolio manager only through the end of the period of the report as stated on the cover and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Investment Changes
Geographic Diversification (% of fund's net assets) | |||
As of October 31, 2003 | |||
Hong Kong | 50.4% | ||
Taiwan | 17.2% | ||
United Kingdom | 12.0% | ||
China | 8.4% | ||
United States of America | 5.9% | ||
Korea (South) | 2.8% | ||
Singapore | 1.5% | ||
Australia | 1.0% | ||
Bermuda | 0.8% | ||
Other | 0.0% |
Percentages are adjusted for the effect of futures contracts, if applicable. |
As of April 30, 2003 | |||
Hong Kong | 56.9% | ||
United Kingdom | 15.9% | ||
Taiwan | 12.1% | ||
China | 5.5% | ||
United States of America | 4.6% | ||
Korea (South) | 2.1% | ||
Australia | 1.4% | ||
Singapore | 0.9% | ||
Bermuda | 0.5% | ||
Other | 0.1% |
Percentages are adjusted for the effect of futures contracts, if applicable. |
Asset Allocation | ||
% of fund's | % of fund's net assets | |
Stocks | 94.1 | 95.4 |
Short-Term Investments and | 5.9 | 4.6 |
Top Ten Stocks as of October 31, 2003 | ||
% of fund's | % of fund's net assets | |
HSBC Holdings PLC (Hong Kong) | 11.3 | 14.7 |
Hutchison Whampoa Ltd. (Industrial Conglomerates) | 4.9 | 8.5 |
Sun Hung Kai Properties Ltd. | 3.8 | 2.9 |
Guoco Group Ltd. (Diversified Financial Services) | 3.5 | 5.3 |
Taiwan Semiconductor Manufacturing Co. Ltd. (Semiconductors & Semiconductor Equipment) | 3.4 | 3.2 |
Hang Seng Bank Ltd. (Commercial Banks) | 2.9 | 4.8 |
Cafe de Coral Holdings Ltd. (Hotels, Restaurants & Leisure) | 2.9 | 2.7 |
Cheung Kong Holdings Ltd. | 2.6 | 2.6 |
China Telecom Corp. Ltd. | 2.6 | 1.6 |
Li & Fung Ltd. (Distributors) | 2.3 | 2.3 |
40.2 | ||
Market Sectors as of October 31, 2003 | ||
% of fund's | % of fund's net assets | |
Financials | 37.2 | 38.8 |
Consumer Discretionary | 15.6 | 11.6 |
Information Technology | 14.4 | 10.9 |
Industrials | 11.1 | 11.9 |
Telecommunication Services | 7.3 | 5.7 |
Energy | 3.2 | 3.7 |
Utilities | 2.6 | 8.4 |
Materials | 1.6 | 2.3 |
Consumer Staples | 1.0 | 1.8 |
Health Care | 0.1 | 0.3 |
Annual Report
Investments October 31, 2003
Showing Percentage of Net Assets
Common Stocks - 94.1% | |||
Shares | Value (Note 1) | ||
CONSUMER DISCRETIONARY - 15.6% | |||
Auto Components - 1.3% | |||
Tong Yang Industry Co. Ltd. | 1,906,700 | $ 2,894,048 | |
Automobiles - 0.9% | |||
AviChina Industry & Technology Co. Ltd. (a) | 1,366,000 | 283,205 | |
Denway Motors Ltd. | 2,080,000 | 1,714,227 | |
1,997,432 | |||
Distributors - 2.3% | |||
Li & Fung Ltd. | 3,171,400 | 5,329,501 | |
Hotels, Restaurants & Leisure - 3.2% | |||
Association International Hotels Ltd. | 292,000 | 244,411 | |
Cafe de Coral Holdings Ltd. | 7,338,000 | 6,614,556 | |
Hong Kong & Shanghai Hotels Ltd. | 890,000 | 538,658 | |
7,397,625 | |||
Household Durables - 2.4% | |||
Basso Industry Corp. Ltd. | 517,000 | 1,036,133 | |
Grand Hall Enterprise Co. Ltd. | 155,000 | 753,758 | |
Group Sense International Ltd. | 4,800,000 | 642,835 | |
Skyworth Digital Holdings Ltd. | 6,698,000 | 1,656,042 | |
Techtronic Industries Co. | 552,000 | 1,521,170 | |
5,609,938 | |||
Leisure Equipment & Products - 0.5% | |||
Playmates Holdings Ltd. | 5,188,000 | 1,055,558 | |
Media - 2.6% | |||
Clear Media Ltd. (a) | 472,000 | 309,982 | |
Next Media Ltd. (a) | 540,000 | 229,474 | |
Television Broadcasts Ltd. | 747,000 | 3,539,920 | |
Tom.com Ltd. (a) | 6,186,000 | 1,991,475 | |
6,070,851 | |||
Specialty Retail - 1.7% | |||
Esprit Holdings Ltd. | 463,500 | 1,456,346 | |
Giordano International Ltd. | 4,216,000 | 1,900,175 | |
Osim International Ltd. | 1,005,000 | 612,417 | |
3,968,938 | |||
Textiles Apparel & Luxury Goods - 0.7% | |||
Glorious Sun Enterprises Ltd. | 3,232,000 | 998,867 | |
Nien Hsing Textile Co. Ltd. | 620,000 | 637,725 | |
Ports Design Ltd. (a) | 40,000 | 72,113 | |
1,708,705 | |||
TOTAL CONSUMER DISCRETIONARY | 36,032,596 | ||
CONSUMER STAPLES - 1.0% | |||
Food & Staples Retailing - 1.0% | |||
Convenience Retail Asia Ltd. | 3,452,200 | 1,022,466 | |
President Chain Store Corp. | 829,996 | 1,284,256 | |
Vedan International Holdings Ltd. | 534,000 | 85,956 | |
2,392,678 | |||
Shares | Value (Note 1) | ||
ENERGY - 3.2% | |||
Oil & Gas - 3.2% | |||
China Petroleum & Chemical Corp. | 6,988,000 | $ 2,317,155 | |
CNOOC Ltd. | 1,712,000 | 3,229,731 | |
PetroChina Co. Ltd. (H Shares) | 5,350,000 | 1,946,244 | |
7,493,130 | |||
FINANCIALS - 37.2% | |||
Commercial Banks - 21.1% | |||
Bank of East Asia Ltd. | 1,399,305 | 4,180,472 | |
Chinatrust Financial Holding Co. | 3,286,300 | 3,418,992 | |
Citic International Financial Holdings Ltd. | 6,073,000 | 2,717,585 | |
Hang Seng Bank Ltd. | 537,500 | 6,713,905 | |
HSBC Holdings PLC: | |||
(Hong Kong) (Reg.) | 1,747,182 | 26,232,193 | |
(United Kingdom) (Reg.) | 62,060 | 931,768 | |
Liu Chong Hing Bank Ltd. | 735,000 | 1,097,919 | |
Standard Chartered PLC | 52,358 | 836,143 | |
Taishin Financial Holdings Co. Ltd. | 1,544,000 | 1,096,681 | |
Wing Lung Bank Ltd. | 253,000 | 1,593,142 | |
48,818,800 | |||
Consumer Finance - 0.1% | |||
Aeon Credit Service (Asia) Co. Ltd. | 317,600 | 197,334 | |
Diversified Financial Services - 6.3% | |||
China Everbright Ltd. | 6,416,000 | 3,532,039 | |
First Pacific Co. Ltd. (a) | 7,228,000 | 1,396,157 | |
Guoco Group Ltd. | 1,143,366 | 8,061,101 | |
Shun Tak Holdings Ltd. | 1,353,000 | 457,354 | |
Wharf Holdings Ltd. | 487,685 | 1,227,753 | |
14,674,404 | |||
Insurance - 0.8% | |||
Cathay Financial Holding Co. Ltd. | 1,075,000 | 1,774,241 | |
PICC Property & Casualty Co. Ltd. | 102,000 | 23,882 | |
1,798,123 | |||
Real Estate - 8.9% | |||
Cheung Kong Holdings Ltd. | 734,000 | 6,120,132 | |
Hang Lung Properties Ltd. | 1,489,000 | 1,946,192 | |
Henderson Land Development Co. Ltd. | 521,000 | 2,187,159 | |
Sun Hung Kai Properties Ltd. | 1,036,021 | 8,771,812 | |
Wheelock & Co. Ltd. | 1,458,000 | 1,746,085 | |
20,771,380 | |||
TOTAL FINANCIALS | 86,260,041 | ||
HEALTH CARE - 0.1% | |||
Biotechnology - 0.1% | |||
Global Bio-Chem Technology Group Co. Ltd. | 646,000 | 328,590 | |
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
INDUSTRIALS - 11.1% | |||
Air Freight & Logistics - 0.5% | |||
Sinotrans Ltd. (H Shares) | 2,370,000 | $ 1,174,990 | |
Airlines - 1.2% | |||
Cathay Pacific Airways Ltd. | 580,000 | 1,109,122 | |
China National Aviation Co. Ltd. | 2,402,000 | 460,876 | |
EVA Airways Corp. | 713,138 | 302,658 | |
Singapore Airlines Ltd. | 145,000 | 1,008,623 | |
2,881,279 | |||
Commercial Services & Supplies - 0.1% | |||
Shenzhen Dongjiang Environmental Co. Ltd. (H Shares) | 2,830,000 | 178,570 | |
Construction & Engineering - 0.8% | |||
Shui On Construction & Materials Ltd. (a) | 1,192,000 | 1,772,896 | |
Electrical Equipment - 1.3% | |||
Byd Co. Ltd. (H Shares) | 341,500 | 890,514 | |
Dongfang Electrical Machinery Co. Ltd. (H Shares) (a) | 1,000,000 | 328,371 | |
Harbin Power Equipment Co. Ltd. | 7,710,000 | 1,896,325 | |
3,115,210 | |||
Industrial Conglomerates - 4.9% | |||
Hutchison Whampoa Ltd. | 1,452,500 | 11,269,332 | |
Machinery - 1.0% | |||
Chen Hsong Holdings Ltd. | 2,522,000 | 1,575,113 | |
Daewoo Heavy Industries & Machinery Ltd. (a) | 110,000 | 752,851 | |
2,327,964 | |||
Trading Companies & Distributors - 0.1% | |||
Dickson Concepts International Ltd. | 368,000 | 191,923 | |
Transportation Infrastructure - 1.2% | |||
Sembcorp Logistics Ltd. | 130,000 | 125,553 | |
Zhejiang Expressway Co. Ltd. (H Shares) | 4,344,000 | 2,727,027 | |
2,852,580 | |||
TOTAL INDUSTRIALS | 25,764,744 | ||
INFORMATION TECHNOLOGY - 14.4% | |||
Communications Equipment - 0.4% | |||
Datacraft Asia Ltd. (a) | 456,000 | 570,000 | |
Nanjing Panda Electronics Co. | 1,436,000 | 420,689 | |
990,689 | |||
Computers & Peripherals - 1.7% | |||
Ambit Microsystems Corp. | 186,813 | 512,043 | |
High Tech Computer Corp. | 203,000 | 753,846 | |
Quanta Computer, Inc. | 1,013,690 | 2,763,523 | |
4,029,412 | |||
Shares | Value (Note 1) | ||
Electronic Equipment & Instruments - 5.4% | |||
Elec & Eltek International Co. Ltd. | 320,000 | $ 912,000 | |
Hon Hai Precision Industries Co. Ltd. | 1,152,180 | 5,161,549 | |
Kingboard Chemical Holdings Ltd. | 2,246,000 | 3,007,932 | |
Merry Electronics Co. Ltd. | 253,000 | 410,109 | |
Varitronix International Ltd. | 1,584,000 | 1,682,806 | |
Venture Corp. Ltd. | 33,000 | 358,551 | |
Yageo Corp. (a) | 2,067,000 | 986,897 | |
12,519,844 | |||
Internet Software & Services - 0.2% | |||
Daum Communications Corp. (a) | 7,700 | 359,789 | |
Semiconductors & Semiconductor Equipment - 6.7% | |||
Advanced Semiconductor Engineering, Inc. (a) | 1,151,000 | 1,068,568 | |
ASE Test Ltd. unit (a) | 2,761,000 | 406,867 | |
Samsung Electronics Co. Ltd. | 10,200 | 4,050,695 | |
Sunplus Technology Co. Ltd. | 680,000 | 1,182,434 | |
Taiwan Semiconductor Manufacturing Co. Ltd. (a) | 3,930,395 | 7,761,169 | |
United Microelectronics Corp. (a) | 1,083,464 | 993,095 | |
15,462,828 | |||
TOTAL INFORMATION TECHNOLOGY | 33,362,562 | ||
MATERIALS - 1.6% | |||
Chemicals - 0.6% | |||
Honam Petrochemical Corp. | 27,500 | 1,101,394 | |
LG Chemical Ltd. | 4,600 | 184,622 | |
1,286,016 | |||
Metals & Mining - 1.0% | |||
Rio Tinto Ltd. | 92,492 | 2,333,692 | |
TOTAL MATERIALS | 3,619,708 | ||
TELECOMMUNICATION SERVICES - 7.3% | |||
Diversified Telecommunication Services - 3.8% | |||
China Telecom Corp. Ltd. (H Shares) | 18,048,000 | 5,984,547 | |
Chunghwa Telecom Co. Ltd. | 470,000 | 741,085 | |
PCCW Ltd. (a) | 2,907,400 | 2,077,891 | |
8,803,523 | |||
Wireless Telecommunication Services - 3.5% | |||
China Mobile (Hong Kong) Ltd. | 1,546,000 | 4,381,364 | |
Taiwan Cellular Co. Ltd. | 4,041,000 | 3,632,493 | |
8,013,857 | |||
TOTAL TELECOMMUNICATION SERVICES | 16,817,380 | ||
UTILITIES - 2.6% | |||
Electric Utilities - 1.4% | |||
Beijing Datang Power Generation Co. Ltd. | 1,720,000 | 1,101,911 | |
CLP Holdings Ltd. | 496,700 | 2,245,051 | |
3,346,962 | |||
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
UTILITIES - continued | |||
Gas Utilities - 1.1% | |||
Hong Kong & China Gas Co. Ltd. | 1,775,400 | $ 2,457,704 | |
Water Utilities - 0.1% | |||
Tianjin Capital Environmental Protection Co. Ltd. (H Shares) | 446,000 | 123,480 | |
TOTAL UTILITIES | 5,928,146 | ||
TOTAL COMMON STOCKS (Cost $164,833,418) | 217,999,575 | ||
Money Market Funds - 5.1% | |||
Fidelity Cash Central Fund, 1.07% (b) | 11,863,195 | 11,863,195 | |
TOTAL INVESTMENT PORTFOLIO - 99.2% (Cost $176,696,613) | 229,862,770 | ||
NET OTHER ASSETS - 0.8% | 1,791,343 | ||
NET ASSETS - 100% | $ 231,654,113 |
Legend |
(a) Non-income producing |
(b) The rate quoted is the annualized seven-day yield of the fund at period end. A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request. |
Other Information |
Purchases and sales of securities, other than short-term securities, aggregated $116,851,296 and $49,908,301, respectively. |
The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $534 for the period. |
Income Tax Information |
At October 31, 2003, the fund had a capital loss carryforward of approximately $49,007,000 of which $39,641,000, $1,350,000 and $8,016,000 will expire on October 31, 2005, 2009 and 2010, respectively. |
Annual Report
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
October 31, 2003 | ||
Assets | ||
Investment in securities, at value (cost $176,696,613) - See accompanying schedule | $ 229,862,770 | |
Foreign currency held at value (cost $1,580,484) | 1,580,484 | |
Receivable for investments sold | 523,858 | |
Receivable for fund shares sold | 755,657 | |
Dividends receivable | 51,518 | |
Interest receivable | 8,257 | |
Redemption fees receivable | 1,095 | |
Prepaid expenses | 712 | |
Total assets | 232,784,351 | |
Liabilities | ||
Payable for investments purchased | $ 759,498 | |
Payable for fund shares redeemed | 119,568 | |
Accrued management fee | 129,456 | |
Other payables and accrued expenses | 121,716 | |
Total liabilities | 1,130,238 | |
Net Assets | $ 231,654,113 | |
Net Assets consist of: | ||
Paid in capital | $ 225,119,186 | |
Undistributed net investment income | 2,516,769 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (49,149,813) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 53,167,971 | |
Net Assets, for 15,300,328 shares outstanding | $ 231,654,113 | |
Net Asset Value, offering price and redemption price per share ($231,654,113 ÷ 15,300,328 shares) | $ 15.14 |
Statement of Operations
Year ended October 31, 2003 | ||
Investment Income | ||
Dividends | $ 4,532,041 | |
Interest | 60,639 | |
4,592,680 | ||
Less foreign taxes withheld | (123,903) | |
Total income | 4,468,777 | |
Expenses | ||
Management fee | $ 963,997 | |
Transfer agent fees | 457,672 | |
Accounting fees and expenses | 79,854 | |
Non-interested trustees' compensation | 512 | |
Custodian fees and expenses | 142,434 | |
Registration fees | 16,150 | |
Audit | 64,445 | |
Legal | 391 | |
Miscellaneous | 1,404 | |
Total expenses | 1,726,859 | |
Net investment income (loss) | 2,741,918 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities | 780,974 | |
Foreign currency transactions | 43,247 | |
Total net realized gain (loss) | 824,221 | |
Change in net unrealized appreciation (depreciation) on: Investment securities | 45,578,702 | |
Assets and liabilities in foreign currencies | (1,745) | |
Total change in net unrealized appreciation (depreciation) | 45,576,957 | |
Net gain (loss) | 46,401,178 | |
Net increase (decrease) in net assets resulting from operations | $ 49,143,096 | |
Other Information | ||
Sales charges paid to FDC | $ 28,265 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
China Region
Financial Statements - continued
Statement of Changes in Net Assets
Year ended | Year ended | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $ 2,741,918 | $ 1,957,028 |
Net realized gain (loss) | 824,221 | (5,432,051) |
Change in net unrealized appreciation (depreciation) | 45,576,957 | 4,125,986 |
Net increase (decrease) in net assets resulting from operations | 49,143,096 | 650,963 |
Distributions to shareholders from net investment income | (1,902,675) | (1,673,748) |
Share transactions | 103,420,624 | 20,684,464 |
Reinvestment of distributions | 1,835,453 | 1,610,891 |
Cost of shares redeemed | (31,350,519) | (27,726,577) |
Net increase (decrease) in net assets resulting from share transactions | 73,905,558 | (5,431,222) |
Redemption fees | 148,688 | 59,725 |
Total increase (decrease) in net assets | 121,294,667 | (6,394,282) |
Net Assets | ||
Beginning of period | 110,359,446 | 116,753,728 |
End of period (including undistributed net investment income of $2,516,769 and undistributed net investment income of $1,611,867, respectively) | $ 231,654,113 | $ 110,359,446 |
Other Information Shares | ||
Sold | 7,827,883 | 1,632,861 |
Issued in reinvestment of distributions | 160,162 | 122,130 |
Redeemed | (2,578,985) | (2,219,979) |
Net increase (decrease) | 5,409,060 | (464,988) |
Financial Highlights
See accompanying notes which are an integral part of the financial statements.
Annual Report
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity a fund's total returns will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended | Past 1 | Past 5 | Past 10 |
Fidelity Emerging Markets | 40.50% | 8.11% | -4.14% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Emerging Markets Fund on October 31, 1993. The chart shows how the value of your investment would have grown, and also shows how the MSCI Emerging Markets Free Index did over the same period.
Annual Report
Management's Discussion of Fund Performance
Comments from John Carlson, Portfolio Manager of Fidelity Emerging Markets Fund
Mirroring the U.S. rally, most international stock markets rebounded sharply during the 12-month period ending October 31, 2003. Encouraged by improved corporate earnings, favorable interest rates and the easing of geopolitical tensions, the Morgan Stanley Capital International Europe, Australasia, Far East (MSCI EAFE) Index - a proxy for stock markets outside the United States and Canada - gained 27.39% during the past year. From a regional perspective, all 16 countries in the MSCI Europe index - which gained 24.56% - had double-digit advances. Spain, Denmark and Sweden were among the region's best performers. In Japan, increased capital spending, exports and machinery orders helped the Tokyo Stock Exchange Stock Price Index (TOPIX) advance 36.39%. Following the SARS epidemic, other Asian markets also rebounded. For instance, the Hong Kong market, as measured by the Hang Seng Index, gained 34.51%. Emerging markets also fared well, particularly Latin America. The MSCI Emerging Markets Free Latin America index rose 59.75%. Canadian equities, as measured by the S&P/TSX Composite Index, also posted an impressive annual gain, advancing 50.66%.
Fidelity Emerging Markets Fund returned 40.50% during the 12-month period. This return lagged the fund's benchmark, the Morgan Stanley Capital International Emerging Markets Free Index, which returned 48.74%. The fund also trailed the Lipper Emerging Markets Funds Average, which returned 46.96%. Overweighted positions in the world's two most populous countries - China and India - were major contributors to performance. In India, low interest rates, rising gross domestic product growth and banking industry liberalization contributed to positive consumer spending, helping the fund's overweighted positions in Indian auto and banking stocks. In China, utilities such as Huaneng Power contributed as the company benefited from strong electricity consumption driven by rising industrial and consumer demand. Security selection in two market-weighted countries, Taiwan and South Korea, detracted the most from performance. The fund's overweighted position in Korean non-life insurance company Samsung Fire & Marine, as well as telecommunications stocks such as KT Corp., also hurt performance. In addition, disappointing security selection in Brazil overwhelmed the positive contribution from the fund's overweighted position there.
The views expressed in this statement reflect those of the portfolio manager only through the end of the period of the report as stated on the cover and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Investment Changes
Geographic Diversification (% of fund's net assets) | |||
As of October 31, 2003 | |||
Korea (South) | 22.2% | ||
Taiwan | 12.0% | ||
Brazil | 10.3% | ||
Mexico | 7.6% | ||
Russia | 5.8% | ||
India | 5.6% | ||
China | 5.5% | ||
United States of America | 5.1% | ||
South Africa | 5.0% | ||
Other | 20.9% |
Percentages are adjusted for the effect of futures contracts, if applicable. |
As of April 30, 2003 | |||
Korea (South) | 18.4% | ||
Taiwan | 13.4% | ||
Brazil | 10.9% | ||
Mexico | 8.6% | ||
Russia | 7.8% | ||
South Africa | 7.4% | ||
India | 6.2% | ||
China | 5.4% | ||
Malaysia | 3.3% | ||
Other | 18.6% |
Percentages are adjusted for the effect of futures contracts, if applicable. |
Asset Allocation | ||
% of fund's | % of fund's net assets | |
Stocks | 95.7 | 98.0 |
Short-Term Investments and | 4.3 | 2.0 |
Top Ten Stocks as of October 31, 2003 | ||
% of fund's | % of fund's net assets | |
Samsung Electronics Co. Ltd. (Korea (South), Semiconductors & Semiconductor Equipment) | 7.9 | 6.6 |
Anglo American PLC (South Africa) (United Kingdom, Metals & Mining) | 3.8 | 2.8 |
Telebras sponsored ADR (Brazil, Diversified Telecommunication Services) | 2.2 | 1.7 |
Kookmin Bank (Korea (South), Commercial Banks) | 2.2 | 1.2 |
America Movil SA de CV sponsored ADR (Mexico, Wireless Telecommunication Services) | 1.9 | 2.0 |
Teva Pharmaceutical Industries Ltd. sponsored ADR (Israel, Pharmaceuticals) | 1.8 | 1.5 |
POSCO (Korea (South), | 1.8 | 0.9 |
Impala Platinum Holdings Ltd. (South Africa, Metals & Mining) | 1.7 | 1.8 |
SK Telecom Co. Ltd. (Korea (South), Wireless Telecommunication Services) | 1.7 | 0.0 |
Lukoil Oil Co. sponsored ADR (Russia, Oil & Gas) | 1.6 | 2.5 |
26.6 | ||
Market Sectors as of October 31, 2003 | ||
% of fund's | % of fund's net assets | |
Information Technology | 20.1 | 15.7 |
Financials | 17.0 | 18.2 |
Materials | 14.5 | 11.6 |
Telecommunication Services | 14.0 | 15.6 |
Energy | 11.0 | 11.9 |
Consumer Discretionary | 7.7 | 10.5 |
Consumer Staples | 5.3 | 5.6 |
Health Care | 2.3 | 3.7 |
Utilities | 2.1 | 2.7 |
Industrials | 1.7 | 2.5 |
Annual Report
Investments October 31, 2003
Showing Percentage of Net Assets
Common Stocks - 95.7% | |||
Shares | Value (Note 1) | ||
Austria - 0.5% | |||
Bank Austria Creditanstalt AG | 53,800 | $ 2,335,926 | |
Brazil - 10.3% | |||
Banco Bradesco SA (PN) | 756,126,200 | 3,194,379 | |
Banco Itau Holding Financeira SA (PN) | 32,492,300 | 2,663,768 | |
Centrais Electricas Brasileiras (Electrobras) SA (PN-B) | 97,538,200 | 1,281,114 | |
Companhia de Bebidas das Americas (AmBev) sponsored ADR | 80,882 | 1,714,698 | |
Companhia Vale do Rio Doce: | |||
(PN-A) | 23,900 | 957,167 | |
sponsored: | |||
ADR | 8,100 | 370,575 | |
ADR (non-vtg.) | 107,700 | 4,351,080 | |
Embraer - Empresa Brasileira de Aeronautica SA sponsored ADR | 95,600 | 2,480,820 | |
Gerdau SA sponsored ADR | 110,170 | 1,604,075 | |
Petroleo Brasileiro SA Petrobras: | |||
(PN) | 132,400 | 2,909,890 | |
sponsored: | |||
ADR | 154,700 | 3,635,450 | |
ADR (non-vtg.) | 233,200 | 5,074,432 | |
Telebras sponsored ADR | 278,900 | 9,605,316 | |
Uniao de Bancos Brasileiros SA (Unibanco) GDR | 112,500 | 2,487,375 | |
Usinas Siderurgicas de Minas Gerais SA (Usiminas) (PN-A) | 232,200 | 1,858,248 | |
Votorantim Celulose e Papel SA sponsored ADR | 1,700 | 46,546 | |
TOTAL BRAZIL | 44,234,933 | ||
China - 5.5% | |||
China Petroleum & Chemical Corp. | 15,081,000 | 5,000,718 | |
China Telecom Corp. Ltd. (H Shares) | 14,222,000 | 4,715,882 | |
Huaneng Power International, Inc. | 3,076,000 | 4,792,881 | |
PetroChina Co. Ltd. (H Shares) | 15,968,000 | 5,808,901 | |
PICC Property & Casualty Co. Ltd. | 96,000 | 22,477 | |
Zhenhai Refining & Chemical Co. | 5,344,000 | 3,268,775 | |
TOTAL CHINA | 23,609,634 | ||
Czech Republic - 0.4% | |||
Philip Morris CR AS | 3,586 | 1,857,423 | |
Hong Kong - 2.7% | |||
China Mobile (Hong Kong) Ltd. | 1,527,000 | 4,327,518 | |
Denway Motors Ltd. | 5,576,000 | 4,595,447 | |
Sun Hung Kai Properties Ltd. | 342,000 | 2,895,655 | |
TOTAL HONG KONG | 11,818,620 | ||
Shares | Value (Note 1) | ||
Hungary - 0.9% | |||
Gedeon Richter Ltd. unit | 19,600 | $ 2,038,400 | |
OTP Bank Rt. (a) | 151,900 | 1,850,874 | |
TOTAL HUNGARY | 3,889,274 | ||
India - 5.6% | |||
Bajaj Auto Ltd. | 120,890 | 2,441,407 | |
Hindustan Petroleum Corp. Ltd. | 453,640 | 3,295,196 | |
Housing Development Finance Corp. Ltd. | 428,370 | 4,914,156 | |
Infosys Technologies Ltd. | 53,466 | 5,593,697 | |
ITC Ltd. | 100 | 1,917 | |
Larsen & Toubro Ltd. | 338,690 | 3,039,765 | |
State Bank of India | 472,070 | 5,043,607 | |
TOTAL INDIA | 24,329,745 | ||
Indonesia - 2.5% | |||
PT Bank Central Asia Tbk | 8,167,000 | 3,388,312 | |
PT Bank PAN Indonesia Tbk | 46,344,500 | 1,527,277 | |
PT Hanjaya Mandala Sampoerna Tbk | 5,584,500 | 2,859,139 | |
PT Indofood Sukses Makmur | 35,881,500 | 2,956,176 | |
TOTAL INDONESIA | 10,730,904 | ||
Israel - 2.7% | |||
AudioCodes Ltd. (a) | 263,700 | 2,259,909 | |
ECtel Ltd. (a) | 122,700 | 823,440 | |
M-Systems Flash Disk Pioneers Ltd. (a) | 45,000 | 891,000 | |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 135,000 | 7,680,150 | |
TOTAL ISRAEL | 11,654,499 | ||
Korea (South) - 22.2% | |||
Amorepacific Corp. | 23,800 | 3,267,848 | |
Honam Petrochemical Corp. | 98,350 | 3,938,984 | |
Hyundai Motor Co. Ltd. | 153,630 | 5,120,997 | |
Kookmin Bank | 254,000 | 9,271,478 | |
KT&G Corp. | 211,700 | 4,078,376 | |
LG Ad, Inc. | 159,560 | 2,676,185 | |
POSCO | 65,140 | 7,551,025 | |
Samsung Electronics Co. Ltd. | 85,315 | 33,880,890 | |
Samsung Fire & Marine | 70,470 | 4,025,154 | |
Samsung SDI Co. Ltd. | 51,730 | 5,332,536 | |
Shinhan Financial Group Co. Ltd. | 343,800 | 4,938,401 | |
Shinsegae Co. Ltd. | 21,370 | 4,288,443 | |
SK Telecom Co. Ltd. | 40,820 | 7,208,598 | |
TOTAL KOREA (SOUTH) | 95,578,915 | ||
Malaysia - 2.2% | |||
Commerce Asset Holding BHD | 2,652,700 | 3,071,547 | |
Malakoff BHD | 2,091,300 | 3,026,882 | |
Maxis Communications BHD | 1,605,200 | 3,189,279 | |
TOTAL MALAYSIA | 9,287,708 | ||
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
Mexico - 7.6% | |||
America Movil SA de CV sponsored ADR | 346,300 | $ 8,241,940 | |
Cemex SA de CV sponsored ADR | 181,400 | 4,353,600 | |
Consorcio ARA SA de CV (a) | 423,600 | 1,158,715 | |
Fomento Economico Mexicano SA de CV sponsored ADR | 63,700 | 2,275,364 | |
Grupo Financiero BBVA Bancomer SA Series B (a) | 2,670,300 | 2,265,944 | |
Grupo Modelo SA de CV Series C | 469,900 | 1,190,263 | |
Grupo Televisa SA de CV sponsored ADR | 138,775 | 5,377,531 | |
Telefonos de Mexico SA de CV sponsored ADR | 211,200 | 6,790,080 | |
Wal-Mart de Mexico SA de CV Series C | 353,931 | 922,851 | |
TOTAL MEXICO | 32,576,288 | ||
Poland - 0.5% | |||
Bank Przemyslowo-Handlowy PBK SA | 24,300 | 2,100,483 | |
Russia - 5.8% | |||
Lukoil Oil Co. sponsored ADR | 85,000 | 6,910,500 | |
Mobile TeleSystems OJSC: | |||
GDR (c) | 36,200 | 2,751,200 | |
sponsored ADR | 15,500 | 1,201,095 | |
OAO Gazprom sponsored ADR | 126,300 | 3,031,200 | |
Sibneft sponsored ADR | 56,700 | 1,233,225 | |
Vimpel Communications | 42,800 | 2,786,280 | |
YUKOS Corp. sponsored ADR | 149,317 | 6,898,445 | |
TOTAL RUSSIA | 24,811,945 | ||
South Africa - 5.0% | |||
ABSA Group Ltd. | 390,400 | 2,258,433 | |
African Bank Investments Ltd. | 2,113,200 | 2,530,834 | |
Impala Platinum Holdings Ltd. | 81,100 | 7,458,243 | |
MTN Group Ltd. (a) | 1,073,100 | 3,847,744 | |
Naspers Ltd. sponsored ADR | 51,870 | 2,424,923 | |
Sanlam Ltd. | 2,608,200 | 3,218,317 | |
TOTAL SOUTH AFRICA | 21,738,494 | ||
Taiwan - 12.0% | |||
ASUSTeK Computer, Inc. | 1,252,000 | 2,988,859 | |
China Steel Corp. | 5,422,295 | 4,378,747 | |
Compal Electronics, Inc. | 2,942,800 | 4,466,673 | |
Formosa Chemicals & Fibre Corp. | 3,032,880 | 4,826,865 | |
Inventec Co. Ltd. | 4,703,000 | 3,104,839 | |
Nien Hsing Textile Co. Ltd. | 2,167,000 | 2,228,951 | |
Quanta Computer, Inc. | 1,609,000 | 4,386,457 | |
Realtek Semiconductor Corp. | 1,642,000 | 3,266,578 | |
Siliconware Precision | 3,671,000 | 3,516,284 | |
Sunplus Technology Co. Ltd. | 1,184,000 | 2,058,827 | |
Synnex Technology International Corp. | 2,133,400 | 3,143,825 | |
Taishin Financial Holdings Co. Ltd. | 3,529,000 | 2,506,599 | |
Shares | Value (Note 1) | ||
Taiwan Semiconductor Manufacturing Co. Ltd. (a) | 3,415,661 | $ 6,744,748 | |
United Microelectronics Corp. (a) | 4,460,160 | 4,088,151 | |
TOTAL TAIWAN | 51,706,403 | ||
Thailand - 2.7% | |||
Shin Corp. PCL (For. Reg.) | 5,649,600 | 3,280,869 | |
Siam Cement PCL (For. Reg.) | 836,800 | 4,733,837 | |
Siam Commercial Bank PCL (For. Reg.) (a) | 3,397,700 | 3,508,263 | |
TOTAL THAILAND | 11,522,969 | ||
Turkey - 2.0% | |||
Akbank Turk Anonim Sirketi | 945,086,800 | 4,427,070 | |
Dogan Yayin Holding AS (a) | 870,179,990 | 2,419,318 | |
Enka Insaat ve Sanayi AS | 55,365,445 | 1,940,448 | |
Koytas Tekstil Sanayi ve Ticaret AS (a) | 26,770,000 | 5 | |
TOTAL TURKEY | 8,786,841 | ||
United Kingdom - 3.8% | |||
Anglo American PLC (South Africa) | 807,307 | 16,448,268 | |
United States of America - 0.8% | |||
Central European Distribution Corp. (a) | 48,100 | 1,808,079 | |
NII Holdings, Inc. Class B (a) | 18,400 | 1,418,456 | |
TOTAL UNITED STATES OF AMERICA | 3,226,535 | ||
TOTAL COMMON STOCKS (Cost $325,112,153) | 412,245,807 | ||
Money Market Funds - 5.8% | |||
Fidelity Cash Central Fund, 1.07% (b) | 12,390,690 | 12,390,690 | |
Fidelity Securities Lending Cash Central Fund, 1.09% (b) | 12,616,525 | 12,616,525 | |
TOTAL MONEY MARKET FUNDS (Cost $25,007,215) | 25,007,215 | ||
TOTAL INVESTMENT PORTFOLIO - 101.5% (Cost $350,119,368) | 437,253,022 | ||
NET OTHER ASSETS - (1.5)% | (6,324,523) | ||
NET ASSETS - 100% | $ 430,928,499 |
Legend |
(a) Non-income producing |
(b) The rate quoted is the annualized seven-day yield of the fund at period end. A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request. |
(c) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the period end, the value of these securities amounted to $2,751,200 or 0.6% of net assets. |
Other Information |
Purchases and sales of securities, other than short-term securities, aggregated $351,418,883 and $302,243,075, respectively. |
The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $1,538 for the period. |
Income Tax Information |
At September 30, 2003, the fund had a capital loss carryforward of approximately $524,240,000 of which $96,913,000, $19,326,000, $309,416,000, $46,041,000, $40,041,000 and $12,503,000 will expire on September 30, 2004, 2006, 2007, 2008, 2010 and 2011, respectively. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements
Statement of Assets and Liabilities
October 31, 2003 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $12,263,790) (cost $350,119,368) - See accompanying schedule | $ 437,253,022 | |
Foreign currency held at value (cost $4,088,605) | 4,080,721 | |
Receivable for investments sold | 3,845,100 | |
Receivable for fund shares sold | 867,091 | |
Dividends receivable | 1,116,328 | |
Interest receivable | 12,005 | |
Redemption fees receivable | 2,428 | |
Prepaid expenses | 1,631 | |
Other receivables | 6,127 | |
Total assets | 447,184,453 | |
Liabilities | ||
Payable to custodian bank | $ 644,126 | |
Payable for investments purchased | 1,434,144 | |
Payable for fund shares redeemed | 439,736 | |
Accrued management fee | 249,913 | |
Other payables and accrued expenses | 871,510 | |
Collateral on securities loaned, at value | 12,616,525 | |
Total liabilities | 16,255,954 | |
Net Assets | $ 430,928,499 | |
Net Assets consist of: | ||
Paid in capital | $ 867,028,207 | |
Undistributed net investment income | 2,401,192 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (524,974,542) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 86,473,642 | |
Net Assets, for 43,910,924 shares outstanding | $ 430,928,499 | |
Net Asset Value, offering price and redemption price per share ($430,928,499 ÷ 43,910,924 shares) | $ 9.81 |
Statement of Operations
Year ended October 31, 2003 | ||
Investment Income | ||
Dividends | $ 8,753,595 | |
Interest | 122,885 | |
Security lending | 19,667 | |
8,896,147 | ||
Less foreign taxes withheld | (979,425) | |
Total income | 7,916,722 | |
Expenses | ||
Management fee | $ 2,157,647 | |
Transfer agent fees | 1,186,673 | |
Accounting and security lending fees | 178,792 | |
Non-interested trustees' compensation | 1,167 | |
Custodian fees and expenses | 369,198 | |
Registration fees | 25,106 | |
Audit | 104,208 | |
Legal | 924 | |
Miscellaneous | 15,968 | |
Total expenses before reductions | 4,039,683 | |
Expense reductions | (16,390) | 4,023,293 |
Net investment income (loss) | 3,893,429 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities | 15,194,877 | |
Foreign currency transactions | (437,726) | |
Total net realized gain (loss) | 14,757,151 | |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of deferred foreign taxes of $646,762) | 87,707,567 | |
Assets and liabilities in foreign currencies | 52,492 | |
Total change in net unrealized appreciation (depreciation) | 87,760,059 | |
Net gain (loss) | 102,517,210 | |
Net increase (decrease) in net assets resulting from operations | $ 106,410,639 | |
Other Information | ||
Sales charges paid to FDC | $ 18,740 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Emerging Markets
Financial Statements - continued
Statement of Changes in Net Assets
Year ended | Year ended | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $ 3,893,429 | $ 2,153,675 |
Net realized gain (loss) | 14,757,151 | (18,602,882) |
Change in net unrealized appreciation (depreciation) | 87,760,059 | 16,888,089 |
Net increase (decrease) in net assets resulting from operations | 106,410,639 | 438,882 |
Distributions to shareholders from net investment income | (1,836,578) | (936,196) |
Share transactions | 144,659,629 | 180,799,404 |
Reinvestment of distributions | 1,776,667 | 910,011 |
Cost of shares redeemed | (83,990,232) | (122,138,443) |
Net increase (decrease) in net assets resulting from share transactions | 62,446,064 | 59,570,972 |
Redemption fees | 179,613 | 491,509 |
Total increase (decrease) in net assets | 167,199,738 | 59,565,167 |
Net Assets | ||
Beginning of period | 263,728,761 | 204,163,594 |
End of period (including undistributed net investment income of $2,401,192 and undistributed net investment income of $1,529,843, respectively) | $ 430,928,499 | $ 263,728,761 |
Other Information Shares | ||
Sold | 17,006,473 | 21,706,976 |
Issued in reinvestment of distributions | 243,379 | 120,213 |
Redeemed | (10,837,670) | (15,624,566) |
Net increase (decrease) | 6,412,182 | 6,202,623 |
Financial Highlights
See accompanying notes which are an integral part of the financial statements.
Annual Report
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity a fund's total returns will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended | Past 1 | Past 5 | Past 10 |
Fidelity Europe | 34.09% | -0.22% | 8.22% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Europe Fund on October 31, 1993. The chart shows how the value of your investment would have grown, and also shows how the MSCI Europe Index did over the same period.
Annual Report
Management's Discussion of Fund Performance
Comments from David Baverez, Portfolio Manager of Fidelity Europe Fund
Mirroring the U.S. rally, most international stock markets rebounded sharply during the 12-month period ending October 31, 2003. Encouraged by improved corporate earnings, favorable interest rates and the easing of geopolitical tensions, the Morgan Stanley Capital International Europe, Australasia, Far East (MSCI EAFE) Index - a proxy for stock markets outside the United States and Canada - gained 27.39% during the past year. From a regional perspective, all 16 countries in the MSCI Europe index - which gained 24.56% - had double-digit advances. Spain, Denmark and Sweden were among the region's best performers. In Japan, increased capital spending, exports and machinery orders helped the Tokyo Stock Exchange Stock Price Index (TOPIX) advance 36.39%. Following the SARS epidemic, other Asian markets also rebounded. For instance, the Hong Kong market, as measured by the Hang Seng Index, gained 34.51%. Emerging markets also fared well, particularly Latin America. The MSCI Emerging Markets Free-Latin America Index rose 59.75%. Canadian equities, as measured by the S&P/TSX Composite Index, also posted an impressive annual gain, advancing 50.66%.
Fidelity Europe Fund benefited from a strong market rally and successful strategic positioning, capturing many of the strengths within the European markets. The fund gained 34.09% for the 12-month period, strongly outperforming its benchmark, the Morgan Stanley Capital International Europe Index, which returned 24.56%, as well as the 23.64% return of the Lipper European Region Funds Average. The fund was overweighted in several industry sectors that performed well during the period, including banking, insurance, software and telecommunications. The banking and insurance sectors were particularly strong because they had been overlooked for several years, and the attractive valuations of stocks in these sectors caught the attention of investors during the period. Swiss Life Holding, a Switzerland-based insurance company, Banca Intesa SPA, an Italian bank, and SAP AG, a German software company, all made strong contributions to performance. Conversely, Alstom SA, a French energy stock, detracted from performance as a result of allegations that it had overstated its financial results. Luxottica Group SPA, an Italian eye care firm, also underperformed because of poor results in its sunglasses business.
The views expressed in this statement reflect those of the portfolio manager only through the end of the period of the report as stated on the cover and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Investment Changes
Geographic Diversification (% of fund's net assets) | |||
As of October 31, 2003 | |||
Germany | 17.3% | ||
France | 17.0% | ||
Switzerland | 14.3% | ||
United Kingdom | 10.8% | ||
Spain | 8.9% | ||
Italy | 8.8% | ||
Russia | 6.3% | ||
United States of America | 5.2% | ||
Netherlands | 4.4% | ||
Other | 7.0% |
Percentages are adjusted for the effect of futures contracts, if applicable. |
As of April 30, 2003 | |||
France | 18.3% | ||
Switzerland | 14.5% | ||
Italy | 12.1% | ||
Germany | 11.0% | ||
United Kingdom | 8.5% | ||
Spain | 8.4% | ||
Netherlands | 7.4% | ||
United States of America | 5.7% | ||
Russia | 4.7% | ||
Other | 9.4% |
Percentages are adjusted for the effect of futures contracts, if applicable. |
Asset Allocation | ||
% of fund's | % of fund's net assets | |
Stocks | 97.2 | 97.4 |
Short-Term Investments and | 2.8 | 2.6 |
Top Ten Stocks as of October 31, 2003 | ||
% of fund's | % of fund's net assets | |
Banca di Roma Spa (Italy, Commercial Banks) | 4.3 | 0.0 |
Vodafone Group PLC (United Kingdom, Wireless Telecommunication Services) | 3.5 | 0.0 |
Banca Intesa Spa (Risp) (Italy, Commercial Banks) | 3.4 | 3.3 |
Allianz AG (Reg.) (Germany, Insurance) | 3.3 | 0.0 |
Vivendi Universal SA (France, Media) | 3.3 | 2.6 |
Credit Agricole SA (France, Commercial Banks) | 3.1 | 0.0 |
Swiss Life Holding (Switzerland, Insurance) | 3.0 | 0.0 |
Bayerische Hypo Und Verein AG (Germany, Commercial Banks) | 2.9 | 0.0 |
Repsol YPF SA (Spain, Oil & Gas) | 2.8 | 2.4 |
Business Objects SA (France, Software) | 2.7 | 0.0 |
32.3 | ||
Market Sectors as of October 31, 2003 | ||
% of fund's | % of fund's net assets | |
Financials | 34.1 | 25.3 |
Consumer Discretionary | 23.3 | 13.8 |
Health Care | 12.0 | 15.8 |
Energy | 10.2 | 11.7 |
Telecommunication Services | 6.4 | 8.4 |
Industrials | 6.0 | 4.0 |
Information Technology | 4.4 | 11.7 |
Consumer Staples | 0.8 | 6.7 |
Annual Report
Investments October 31, 2003
Showing Percentage of Net Assets
Common Stocks - 91.5% | |||
Shares | Value (Note 1) | ||
Belgium - 0.8% | |||
Colruyt NV | 110,800 | $ 10,011,788 | |
Denmark - 0.4% | |||
Coloplast AS Series B | 66,941 | 5,612,233 | |
France - 17.0% | |||
AXA SA | 1,700,969 | 32,118,947 | |
Business Objects SA (a) | 1,078,900 | 35,245,818 | |
Credit Agricole SA | 1,849,200 | 39,138,099 | |
Credit Agricole SA rights 11/7/03 (a) | 1,849,200 | 428,441 | |
Financiere Marc de Lacharriere SA (Fimalac) | 467,981 | 13,331,040 | |
Havas SA | 6,525,186 | 30,992,317 | |
Lagardere S.C.A. (Reg.) | 279,200 | 13,995,216 | |
Technip-Coflexip SA | 114,078 | 11,233,061 | |
Vivendi Universal SA (a) | 2,020,300 | 42,291,327 | |
TOTAL FRANCE | 218,774,266 | ||
Germany - 15.0% | |||
Allianz AG (Reg.) | 403,869 | 43,146,238 | |
Bayerische Hypo Und Verein AG (a) | 1,667,100 | 36,597,225 | |
Continental AG | 635,336 | 21,491,346 | |
Deutsche Telekom AG (Reg.) (a) | 964,100 | 15,049,599 | |
Hypo Real Estate Holding AG (a) | 1,551,651 | 26,962,652 | |
Rational AG | 148,900 | 7,365,460 | |
SAP AG | 147,800 | 21,602,448 | |
TUI AG | 1,195,900 | 20,822,417 | |
TOTAL GERMANY | 193,037,385 | ||
Hungary - 4.1% | |||
Gedeon Richter Ltd. unit | 254,600 | 26,478,400 | |
OTP Bank Rt. unit (a) | 1,063,020 | 26,097,141 | |
TOTAL HUNGARY | 52,575,541 | ||
Ireland - 1.7% | |||
Anglo Irish Bank Corp. PLC | 1,812,200 | 21,686,214 | |
Italy - 5.4% | |||
Banca di Roma Spa (a) | 19,681,327 | 54,765,200 | |
Banca Intesa Spa | 437,500 | 1,472,824 | |
Bulgari Spa | 1,461,700 | 13,223,029 | |
TOTAL ITALY | 69,461,053 | ||
Netherlands - 4.4% | |||
Buhrmann NV (a) | 2,474,138 | 22,069,472 | |
Shares | Value (Note 1) | ||
Euronext NV | 432,562 | $ 10,548,186 | |
IHC Caland NV | 549,851 | 23,376,978 | |
TOTAL NETHERLANDS | 55,994,636 | ||
Russia - 6.3% | |||
Sibneft sponsored ADR | 576,700 | 12,543,225 | |
Surgutneftegaz JSC sponsored ADR | 504,700 | 12,536,748 | |
Vimpel Communications sponsored ADR (a) | 333,400 | 21,704,340 | |
YUKOS Corp. sponsored ADR | 730,661 | 33,756,538 | |
TOTAL RUSSIA | 80,540,851 | ||
Spain - 8.9% | |||
Actividades de Construccion y Servicios SA (ACS) | 581,000 | 24,378,213 | |
Antena 3 Television SA (a) | 866,700 | 28,213,204 | |
Iberia Lineas Aereas de Espana SA | 10,205,600 | 24,827,622 | |
Repsol YPF SA | 2,098,400 | 36,449,200 | |
TOTAL SPAIN | 113,868,239 | ||
Switzerland - 14.3% | |||
Compagnie Financiere Richemont unit | 823,217 | 18,452,686 | |
Geberit AG (Reg.) | 14,901 | 6,113,345 | |
Novartis AG (Reg.) | 645,700 | 24,775,508 | |
Roche Holding AG (participation certificate) | 227,040 | 18,713,949 | |
Straumann Holding AG | 123,017 | 14,567,320 | |
Swiss Life Holding (a) | 227,824 | 38,491,822 | |
UBS AG (Reg.) | 494,360 | 30,238,341 | |
Zurich Financial Services AG | 252,063 | 32,151,852 | |
TOTAL SWITZERLAND | 183,504,823 | ||
United Kingdom - 10.8% | |||
AstraZeneca PLC (United Kingdom) | 704,091 | 33,571,054 | |
Carnival PLC | 768,953 | 26,514,299 | |
Intercontinental Hotels Group PLC | 3,660,361 | 33,165,814 | |
Vodafone Group PLC | 21,628,300 | 45,743,874 | |
TOTAL UNITED KINGDOM | 138,995,041 | ||
United States of America - 2.4% | |||
Synthes-Stratec, Inc. | 33,366 | 30,513,737 | |
TOTAL COMMON STOCKS (Cost $970,533,501) | 1,174,575,807 | ||
Nonconvertible Preferred Stocks - 5.7% | |||
Germany - 2.3% | |||
Porsche AG (non-vtg.) | 60,500 | 29,612,832 | |
Italy - 3.4% | |||
Banca Intesa Spa (Risp) | 17,500,000 | 43,708,318 | |
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $51,431,920) | 73,321,150 | ||
Money Market Funds - 5.7% | |||
Shares | Value (Note 1) | ||
Fidelity Cash Central Fund, 1.07% (b) | 25,808,224 | $ 25,808,224 | |
Fidelity Securities Lending Cash Central Fund, 1.09% (b) | 46,880,208 | 46,880,208 | |
TOTAL MONEY MARKET FUNDS (Cost $72,688,432) | 72,688,432 | ||
TOTAL INVESTMENT PORTFOLIO - 102.9% (Cost $1,094,653,853) | 1,320,585,389 | ||
NET OTHER ASSETS - (2.9)% | (37,394,116) | ||
NET ASSETS - 100% | $ 1,283,191,273 |
Legend |
(a) Non-income producing |
(b) The rate quoted is the annualized seven-day yield of the fund at period end. A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request. |
Other Information |
Purchases and sales of securities, other than short-term securities, aggregated $1,663,368,281 and $1,587,703,865, respectively. |
The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $721 for the period. |
The fund participated in the security lending program during the period. Cash collateral includes amounts received for unsettled security loans. |
The fund participated in the interfund lending program as a borrower. The average daily loan balance during the period for which the loans were outstanding amounted to $9,006,000. The weighted average interest rate was 1.23%. At period end there were no interfund loans outstanding. |
Income Tax Information |
At October 31, 2003, the fund had a capital loss carryforward of approximately $385,251,000 of which $251,000, $107,086,000, $127,649,000 and $150,265,000 will expire on October 31, 2006, 2009, 2010 and 2011, respectively. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements
Statement of Assets and Liabilities
October 31, 2003 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $44,741,783) (cost $1,094,653,853) - See accompanying schedule | $ 1,320,585,389 | |
Receivable for investments sold | 53,324,290 | |
Receivable for fund shares sold | 1,742,692 | |
Dividends receivable | 5,223,029 | |
Interest receivable | 24,275 | |
Redemption fees receivable | 95 | |
Prepaid expenses | 5,857 | |
Other receivables | 17,754 | |
Total assets | 1,380,923,381 | |
Liabilities | ||
Payable for investments purchased | $ 49,242,809 | |
Payable for fund shares redeemed | 632,704 | |
Accrued management fee | 683,213 | |
Other payables and accrued expenses | 293,174 | |
Collateral on securities loaned, at value | 46,880,208 | |
Total liabilities | 97,732,108 | |
Net Assets | $ 1,283,191,273 | |
Net Assets consist of: | ||
Paid in capital | $ 1,427,383,881 | |
Undistributed net investment income | 15,679,314 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (385,833,917) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 225,961,995 | |
Net Assets, for 52,663,909 shares outstanding | $ 1,283,191,273 | |
Net Asset Value, offering price and redemption price per share ($1,283,191,273 ÷ 52,663,909 shares) | $ 24.37 |
Statement of Operations
Year ended October 31, 2003 | ||
Investment Income | ||
Dividends | $ 24,746,209 | |
Interest | 783,304 | |
Security lending | 1,665,836 | |
27,195,349 | ||
Less foreign taxes withheld | (2,506,386) | |
Total income | 24,688,963 | |
Expenses | ||
Management fee | $ 7,429,350 | |
Performance adjustment | (1,185,356) | |
Transfer agent fees | 3,114,643 | |
Accounting and security lending fees | 546,127 | |
Non-interested trustees' compensation | 3,339 | |
Custodian fees and expenses | 450,822 | |
Registration fees | 29,077 | |
Audit | 67,249 | |
Legal | 6,290 | |
Interest | 2,453 | |
Miscellaneous | 8,467 | |
Total expenses before reductions | 10,472,461 | |
Expense reductions | (483,659) | 9,988,802 |
Net investment income (loss) | 14,700,161 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities | (124,774,084) | |
Foreign currency transactions | 141,190 | |
Total net realized gain (loss) | (124,632,894) | |
Change in net unrealized appreciation (depreciation) on: Investment securities | 432,649,329 | |
Assets and liabilities in foreign currencies | (46,996) | |
Total change in net unrealized appreciation (depreciation) | 432,602,333 | |
Net gain (loss) | 307,969,439 | |
Net increase (decrease) in net assets resulting from operations | $ 322,669,600 | |
Other Information | ||
Deferred sales charges withheld by FDC | $ 18,772 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Europe
Financial Statements - continued
Statement of Changes in Net Assets
Year ended | Year ended | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $ 14,700,161 | $ 5,472,286 |
Net realized gain (loss) | (124,632,894) | (137,081,813) |
Change in net unrealized appreciation (depreciation) | 432,602,333 | (65,157,304) |
Net increase (decrease) in net assets resulting from operations | 322,669,600 | (196,766,831) |
Distributions to shareholders from net investment income | (6,786,170) | (11,245,807) |
Share transactions | 298,317,243 | 255,088,891 |
Reinvestment of distributions | 6,549,345 | 10,834,933 |
Cost of shares redeemed | (213,672,148) | (241,463,201) |
Net increase (decrease) in net assets resulting from share transactions | 91,194,440 | 24,460,623 |
Redemption fees | 118,259 | 179,135 |
Total increase (decrease) in net assets | 407,196,129 | (183,372,880) |
Net Assets | ||
Beginning of period | 875,995,144 | 1,059,368,024 |
End of period (including undistributed net investment income of $15,679,314 and undistributed net investment income of $6,082,940, respectively) | $ 1,283,191,273 | $ 875,995,144 |
Other Information Shares | ||
Sold | 15,032,139 | 11,691,869 |
Issued in reinvestment of distributions | 347,815 | 434,443 |
Redeemed | (10,560,777) | (10,988,169) |
Net increase (decrease) | 4,819,177 | 1,138,143 |
Financial Highlights
See accompanying notes which are an integral part of the financial statements.
Annual Report
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity a fund's total returns will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended | Past 1 | Past 5 | Life of |
Fidelity Europe Capital Appreciation | 26.36% | 3.35% | 9.86% |
A From December 21, 1993
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity Europe Capital Appreciation Fund on December 21, 1993, when the fund started. The chart shows how the value of your investment would have grown, and also shows how the MSCI Europe Index did over the same period.
Annual Report
Management's Discussion of Fund Performance
Comments from Ian Hart, Portfolio Manager of Fidelity Europe Capital Appreciation Fund
Mirroring the U.S. rally, most international stock markets rebounded sharply during the 12-month period ending October 31, 2003. Encouraged by improved corporate earnings, favorable interest rates and the easing of geopolitical tensions, the Morgan Stanley Capital International Europe, Australasia, Far East (MSCI EAFE) Index - a proxy for stock markets outside the United States and Canada - gained 27.39% during the past year. From a regional perspective, all 16 countries in the MSCI Europe index - which gained 24.56% - had double-digit advances. Spain, Denmark and Sweden were among the region's best performers. In Japan, increased capital spending, exports and machinery orders helped the Tokyo Stock Exchange Stock Price Index (TOPIX) advance 36.39%. Following the SARS epidemic, other Asian markets also rebounded. For instance, the Hong Kong market, as measured by the Hang Seng Index, gained 34.51%. Emerging markets also fared well, particularly Latin America. The MSCI Emerging Markets Free-Latin America index rose 59.75%. Canadian equities, as measured by the S&P/TSX Composite Index, also posted an impressive annual gain, advancing 50.66%.
For the 12-month period that ended October 31, 2003, the fund gained 26.36%. By comparison, the Morgan Stanley Capital International Europe Index posted a total return of 24.56% for the same period, while the Lipper European Region Funds Average returned 23.64%. Stock picking accounted for most of the fund's outperformance, with individual stocks in the telecommunications space - notably Ericsson, Alcatel, Mobistar and Versatel - providing very attractive gains. Solid performance from such top-10 holdings as Germany's Deutsche Boerse and France's SEB also boosted returns. The fund was hurt by an underweighted position in the banking sector and disappointing earnings growth from companies such as Van Der Moolen the Dutch market maker and Ahold the Dutch food retailer. Unilever, the Anglo-Dutch consumer goods company, also detracted from performance.
The views expressed in this statement reflect those of the portfolio manager only through the end of the period of the report as stated on the cover and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Investment Changes
Geographic Diversification (% of fund's net assets) | |||
As of October 31, 2003 | |||
United Kingdom | 32.0% | ||
Germany | 16.4% | ||
France | 10.4% | ||
Switzerland | 6.6% | ||
Sweden | 5.7% | ||
United States of America | 5.3% | ||
Netherlands | 4.9% | ||
Spain | 4.7% | ||
Denmark | 3.7% | ||
Other | 10.3% |
Percentages are adjusted for the effect of futures contracts, if applicable. |
As of April 30, 2003 | |||
United Kingdom | 32.8% | ||
Germany | 18.3% | ||
France | 13.0% | ||
Switzerland | 11.0% | ||
Spain | 6.6% | ||
United States of America | 4.3% | ||
Italy | 4.3% | ||
Netherlands | 3.1% | ||
Russia | 2.0% | ||
Other | 4.6% |
Percentages are adjusted for the effect of futures contracts, if applicable. |
Asset Allocation | ||
% of fund's | % of fund's net assets | |
Stocks | 96.8 | 96.1 |
Bonds | 0.8 | 0.0 |
Short-Term Investments and | 2.4 | 3.9 |
Top Ten Stocks as of October 31, 2003 | ||
% of fund's | % of fund's net assets | |
Deutsche Boerse AG (Germany, Diversified Financial Services) | 7.0 | 6.4 |
Vodafone Group PLC (United Kingdom, Wireless Telecommunication Services) | 3.8 | 3.7 |
Marks & Spencer Group PLC (United Kingdom, Multiline Retail) | 2.9 | 0.0 |
Unilever PLC (United Kingdom, Food Products) | 2.1 | 2.7 |
Pernod-Ricard (France, Beverages) | 1.7 | 0.9 |
British Sky Broadcasting Group PLC (BSkyB) (United Kingdom, Media) | 1.7 | 0.9 |
Novartis AG (Switzerland, Pharmaceuticals) | 1.7 | 3.8 |
Telefonica SA (Spain, Diversified Telecommunication Services) | 1.6 | 1.4 |
L'Oreal SA (France, Personal Products) | 1.5 | 0.8 |
Koninklijke KPN NV (Netherlands, Diversified Telecommunication Services) | 1.5 | 0.0 |
25.5 | ||
Market Sectors as of October 31, 2003 | ||
% of fund's | % of fund's net assets | |
Consumer Discretionary | 22.3 | 15.6 |
Financials | 21.2 | 20.7 |
Telecommunication Services | 17.1 | 10.9 |
Health Care | 12.2 | 14.1 |
Information Technology | 9.4 | 4.1 |
Consumer Staples | 8.1 | 12.8 |
Industrials | 3.9 | 2.0 |
Energy | 1.8 | 12.2 |
Materials | 1.1 | 2.1 |
Utilities | 0.5 | 1.6 |
Annual Report
Investments October 31, 2003
Showing Percentage of Net Assets
Common Stocks - 95.2% | |||
Shares | Value (Note 1) | ||
Belgium - 0.7% | |||
Mobistar SA (a) | 53,100 | $ 2,657,392 | |
Denmark - 3.7% | |||
A.P. Moller - Maersk AS Series B | 200 | 1,564,570 | |
Bryggerigruppen AS | 22,000 | 1,220,489 | |
Coloplast AS Series B | 62,700 | 5,256,674 | |
Danske Bank AS | 161,700 | 3,250,580 | |
Novo Nordisk AS Series B | 90,100 | 3,229,340 | |
TOTAL DENMARK | 14,521,653 | ||
Finland - 0.6% | |||
Comptel Oyj (a) | 366,100 | 945,762 | |
F-Secure Oyj (a) | 968,800 | 1,515,114 | |
TOTAL FINLAND | 2,460,876 | ||
France - 10.4% | |||
Alcatel SA sponsored ADR (a) | 208,700 | 2,750,666 | |
Assurances Generales France (Bearer) | 4,900 | 257,709 | |
Cap Gemini SA (a) | 25,300 | 1,270,536 | |
Casino Guichard Perrachon et Compagnie | 27,400 | 2,499,645 | |
CNP Assurances | 43,000 | 1,954,178 | |
France Telecom SA (a) | 43,000 | 1,037,114 | |
France Telecom SA sponsored ADR | 122,500 | 2,969,400 | |
L'Oreal SA | 82,000 | 6,041,548 | |
NRJ Group | 134,605 | 2,627,474 | |
Pernod-Ricard | 71,075 | 6,833,957 | |
SEB SA | 44,200 | 4,854,091 | |
Suez SA (France) | 126,700 | 2,025,503 | |
Vivendi Universal SA (a) | 82,400 | 1,724,895 | |
Vivendi Universal SA sponsored ADR (a) | 124,900 | 2,626,647 | |
Wanadoo SA (a) | 221,700 | 1,643,702 | |
TOTAL FRANCE | 41,117,065 | ||
Germany - 15.3% | |||
Adidas-Salomon AG | 23,900 | 2,206,650 | |
Allianz AG (Reg.) | 48,471 | 5,178,266 | |
Bayerische Hypo Und Verein AG (a) | 56,800 | 1,246,909 | |
Celanese AG (Reg.) | 64,100 | 2,222,501 | |
DAB Bank AG (a) | 409,200 | 3,356,187 | |
Deutsche Boerse AG | 495,680 | 27,459,220 | |
Deutsche Telekom AG (Reg.) (a) | 342,900 | 5,352,668 | |
Fresenius Medical Care AG | 62,000 | 3,522,962 | |
Puma AG | 10,000 | 1,453,623 | |
SAP AG | 15,700 | 2,294,712 | |
Sixt AG | 81,560 | 908,928 | |
T-Online International AG (a) | 219,900 | 2,835,291 | |
Zapf Creation AG (a) | 77,637 | 2,397,763 | |
TOTAL GERMANY | 60,435,680 | ||
Israel - 0.5% | |||
Emblaze Ltd. (a) | 770,300 | 1,820,749 | |
Italy - 2.7% | |||
Amplifon Spa | 43,900 | 1,123,917 | |
Shares | Value (Note 1) | ||
Banca Intesa Spa | 460,634 | $ 1,550,704 | |
Banca Nazionale del Lavoro (BNL) (a) | 756,800 | 1,718,361 | |
Bulgari Spa | 206,700 | 1,869,878 | |
Fiat Spa (a) | 306,800 | 2,393,703 | |
Telecom Italia Spa | 773,724 | 2,012,240 | |
TOTAL ITALY | 10,668,803 | ||
Luxembourg - 0.3% | |||
Metro International SA Swedish Depositary Receipt (A Shares) (a) | 1,048,400 | 1,177,857 | |
Netherlands - 4.9% | |||
Completel Europe NV (a) | 125,400 | 3,341,202 | |
Equant NV (a) | 115,200 | 1,014,246 | |
ING Groep NV (Certificaten Van Aandelen) | 166,298 | 3,465,651 | |
Koninklijke KPN NV (a) | 757,800 | 5,741,292 | |
Koninklijke Philips Electronics NV | 73,700 | 1,978,108 | |
Koninklijke Philips Electronics NV | 65,700 | 1,763,388 | |
Samas Groep NV (Certificaten Van Aandelen) | 154,600 | 865,035 | |
Versatel Telecom International NV (a) | 459,000 | 1,052,823 | |
TOTAL NETHERLANDS | 19,221,745 | ||
Norway - 2.3% | |||
Storebrand ASA (A Shares) (a) | 648,100 | 3,591,541 | |
TANDBERG Television ASA (a) | 1,451,100 | 5,429,022 | |
TOTAL NORWAY | 9,020,563 | ||
Russia - 1.6% | |||
Lukoil Oil Co. sponsored ADR | 24,400 | 1,983,720 | |
OAO Gazprom sponsored ADR | 116,000 | 2,784,000 | |
Vimpel Communications sponsored ADR (a) | 24,400 | 1,588,440 | |
TOTAL RUSSIA | 6,356,160 | ||
Spain - 4.7% | |||
Antena 3 Television SA (a) | 429 | 13,965 | |
Banco Espanol de Credito SA (Reg.) | 144,000 | 1,441,297 | |
Corporacion Mapfre SA (Reg.) | 308,300 | 3,828,649 | |
Grupo Auxiliar Metalurgico SA (Gamesa) | 87,200 | 2,351,672 | |
Prosegur Comp Securidad SA (Reg.) | 145,000 | 2,351,654 | |
Repsol YPF SA | 130,300 | 2,263,311 | |
Telefonica SA | 126,900 | 1,582,021 | |
Telefonica SA sponsored ADR | 127,854 | 4,781,740 | |
TOTAL SPAIN | 18,614,309 | ||
Sweden - 5.7% | |||
Eniro AB | 331,300 | 2,643,531 | |
Modern Times Group AB (MTG) | 278,200 | 5,203,286 | |
OMHEX AB | 430,350 | 4,395,363 | |
Song Networks Holding AB (a) | 509,900 | 3,320,001 | |
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
Sweden - continued | |||
Tele2 AB (B Shares) (a) | 80,000 | $ 4,008,784 | |
Telefonaktiebolaget LM Ericsson | 1,805,100 | 3,083,110 | |
TOTAL SWEDEN | 22,654,075 | ||
Switzerland - 6.6% | |||
ABB Ltd. (Switzerland) (Reg.) (a) | 373,000 | 2,184,134 | |
Actelion Ltd. (Reg.) (a) | 34,600 | 3,277,786 | |
Clariant AG (Reg.) (a) | 113,000 | 1,584,664 | |
Novartis AG sponsored ADR | 173,000 | 6,638,010 | |
Roche Holding AG (participation certificate) | 67,900 | 5,596,710 | |
Sulzer AG (Reg.) | 11,250 | 2,664,385 | |
Swiss Life Holding (a) | 3,320 | 560,928 | |
Zurich Financial Services AG | 26,390 | 3,366,172 | |
TOTAL SWITZERLAND | 25,872,789 | ||
Turkey - 1.1% | |||
Turkcell Iletisim Hizmet AS sponsored ADR (a) | 223,800 | 4,252,200 | |
United Kingdom - 31.2% | |||
3i Group PLC | 248,300 | 2,608,461 | |
Alvis PLC | 448,800 | 1,425,838 | |
Amlin PLC | 847,300 | 2,081,714 | |
Autonomy Corp. PLC (a) | 932,500 | 3,965,870 | |
Axis Shield PLC (a) | 237,900 | 675,189 | |
Barratt Developments PLC | 311,200 | 2,583,757 | |
Boots Group PLC | 266,100 | 3,212,519 | |
British Sky Broadcasting Group PLC (BSkyB) (a) | 615,300 | 6,672,412 | |
Carlton Communications PLC | 719,900 | 2,634,765 | |
Cattles PLC | 448,300 | 2,423,122 | |
Celltech Group PLC (a) | 501,700 | 3,901,869 | |
Corin Group PLC | 416,200 | 1,456,257 | |
Dixons Group PLC | 2,366,900 | 5,444,220 | |
Easynet Group PLC (a) | 575,800 | 1,239,057 | |
Elementis PLC | 717,200 | 467,861 | |
Galen Holdings PLC | 268,100 | 3,425,186 | |
Jazztel PLC (a) | 3,419,500 | 1,544,915 | |
Land Securities Group PLC | 142,800 | 2,180,062 | |
Lastminute.com PLC (a) | 199,700 | 1,003,272 | |
London Bridge Software Holdings PLC | 1,391,600 | 1,450,125 | |
London Stock Exchange PLC | 401,400 | 2,601,506 | |
Maiden Group PLC | 467,100 | 2,018,208 | |
Marks & Spencer Group PLC | 2,309,400 | 11,259,794 | |
Mothercare PLC (a) | 221,600 | 1,212,797 | |
MyTravel Group PLC (a) | 8,675,600 | 2,719,488 | |
NDS Group PLC sponsored ADR (a) | 58,300 | 1,020,833 | |
Next PLC | 89,000 | 1,779,459 | |
Shares | Value (Note 1) | ||
Pace Micro Technology PLC | 1,360,000 | $ 1,497,850 | |
Prudential PLC | 707,700 | 5,483,008 | |
Reckitt Benckiser PLC | 127,700 | 2,683,049 | |
Rentokil Initial PLC | 476,600 | 1,802,858 | |
Shire Pharmaceuticals Group PLC (a) | 514,500 | 3,927,353 | |
SkyePharma PLC (a) | 67,400 | 73,946 | |
SMG PLC | 658,601 | 1,127,093 | |
Sygen International PLC | 1,794,600 | 1,550,793 | |
Ted Baker PLC | 314,300 | 1,922,505 | |
Unilever PLC | 959,700 | 8,205,429 | |
Vodafone Group PLC | 5,702,100 | 12,059,947 | |
Vodafone Group PLC sponsored ADR | 157,600 | 3,333,240 | |
William Hill PLC | 433,400 | 2,489,457 | |
Woolworths Group PLC | 3,226,300 | 2,514,656 | |
Wyevale Garden Centres PLC | 187,800 | 1,070,771 | |
TOTAL UNITED KINGDOM | 122,750,511 | ||
United States of America - 2.9% | |||
Covad Communications Group, Inc. (a) | 1,900 | 8,322 | |
Infonet Services Corp. Class B (a) | 222,900 | 528,273 | |
Network Associates, Inc. (a) | 252,000 | 3,510,360 | |
NTL, Inc. (a) | 30,900 | 1,907,457 | |
Pfizer, Inc. | 83,000 | 2,622,800 | |
Secure Computing Corp. (a) | 96,200 | 1,383,356 | |
Synthes-Stratec, Inc. | 1,705 | 1,559,250 | |
TOTAL UNITED STATES OF AMERICA | 11,519,818 | ||
TOTAL COMMON STOCKS (Cost $312,772,655) | 375,122,245 | ||
Nonconvertible Preferred Stocks - 1.6% | |||
Germany - 1.1% | |||
Fresenius Medical Care AG | 31,000 | 1,267,692 | |
Porsche AG (non-vtg.) | 6,700 | 3,279,438 | |
TOTAL GERMANY | 4,547,130 | ||
Italy - 0.5% | |||
Telecom Italia Spa (Risp) (a) | 1,149,513 | 1,986,827 | |
TOTAL NONCONVERTIBLE PREFERRED (Cost $6,049,404) | 6,533,957 |
Nonconvertible Bonds - 0.8% | ||||
Principal Amount | Value | |||
United Kingdom - 0.8% | ||||
Telewest Communications PLC yankee: | ||||
0% 4/15/09 (c)(d) | $ 305,000 | $ 134,963 | ||
0% 2/1/10 (c)(d) | 670,000 | 269,675 | ||
9.875% 2/1/10 (c) | 555,000 | 285,825 | ||
11.25% 11/1/08 (c) | 440,000 | 236,500 | ||
Telewest PLC 11% 10/1/07 (c) | 3,890,000 | 2,100,600 | ||
TOTAL NONCONVERTIBLE BONDS (Cost $2,724,576) | 3,027,563 |
Money Market Funds - 5.4% | |||
Fidelity Cash Central Fund, 1.07% (b) | 6,852,019 | 6,852,019 | |
Fidelity Securities Lending Cash Central Fund, 1.09% (b) | 14,281,194 | 14,281,194 | |
TOTAL MONEY MARKET FUNDS (Cost $21,133,213) | 21,133,213 | ||
TOTAL INVESTMENT PORTFOLIO - 103.0% (Cost $342,679,848) | 405,816,978 | ||
NET OTHER ASSETS - (3.0)% | (11,801,731) | ||
NET ASSETS - 100% | $ 394,015,247 |
Legend |
(a) Non-income producing |
(b) The rate quoted is the annualized seven-day yield of the fund at period end. A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request. |
(c) Non-income producing - issuer filed for bankruptcy or is in default of interest payments. |
(d) Debt obligation initially issued in zero coupon form which converts to coupon form at a specified rate and date. The rate shown is the rate at period end. |
Other Information |
Purchases and sales of securities, other than short-term securities, aggregated $666,393,113 and $753,409,069, respectively. |
The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $642 for the period. |
The fund participated in the interfund lending program as a borrower. The average daily loan balance during the period for which loans were outstanding amounted to $2,926,429. The weighted average interest rate was 1.37%. At period end there were no interfund loans outstanding. |
Income Tax Information |
At October 31, 2003, the fund had a capital loss carryforward of approximately $82,313,000 of which $9,648,000 and $72,665,000 will expire on October 31, 2009 and 2010, respectively. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements
Statement of Assets and Liabilities
October 31, 2003 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $13,654,838) (cost $342,679,848) - See accompanying schedule | $ 405,816,978 | |
Receivable for investments sold | 10,428,722 | |
Receivable for fund shares sold | 223,078 | |
Dividends receivable | 442,618 | |
Interest receivable | 2,457 | |
Redemption fees receivable | 61 | |
Prepaid expenses | 2,019 | |
Other receivables | 9,762 | |
Total assets | 416,925,695 | |
Liabilities | ||
Payable for investments purchased | $ 7,612,561 | |
Payable for fund shares redeemed | 595,987 | |
Accrued management fee | 314,978 | |
Other payables and accrued expenses | 105,728 | |
Collateral on securities loaned, at value | 14,281,194 | |
Total liabilities | 22,910,448 | |
Net Assets | $ 394,015,247 | |
Net Assets consist of: | ||
Paid in capital | $ 411,405,672 | |
Undistributed net investment income | 3,962,064 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (84,520,016) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 63,167,527 | |
Net Assets, for 22,823,149 shares outstanding | $ 394,015,247 | |
Net Asset Value, offering price and redemption price per share ($394,015,247 ÷ 22,823,149 shares) | $ 17.26 |
Statement of Operations
Year ended October 31, 2003 | ||
Investment Income | ||
Dividends | $ 9,173,746 | |
Interest | 224,652 | |
Security lending | 299,640 | |
9,698,038 | ||
Less foreign taxes withheld | (1,045,401) | |
Total income | 8,652,637 | |
Expenses | ||
Management fee | $ 2,793,994 | |
Performance adjustment | 908,854 | |
Transfer agent fees | 1,072,561 | |
Accounting and security lending fees | 235,340 | |
Non-interested trustees' compensation | 1,514 | |
Custodian fees and expenses | 206,459 | |
Registration fees | 25,624 | |
Audit | 53,579 | |
Legal | 1,397 | |
Interest | 777 | |
Miscellaneous | 3,685 | |
Total expenses before reductions | 5,303,784 | |
Expense reductions | (253,379) | 5,050,405 |
Net investment income (loss) | 3,602,232 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities | 16,417,868 | |
Foreign currency transactions | 185,416 | |
Total net realized gain (loss) | 16,603,284 | |
Change in net unrealized appreciation (depreciation) on: Investment securities | 68,120,817 | |
Assets and liabilities in foreign currencies | (19,746) | |
Total change in net unrealized appreciation (depreciation) | 68,101,071 | |
Net gain (loss) | 84,704,355 | |
Net increase (decrease) in net assets resulting from operations | $ 88,306,587 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Europe Capital Appreciation
Financial Statements - continued
Statement of Changes in Net Assets
Year ended | Year ended | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $ 3,602,232 | $ 5,542,295 |
Net realized gain (loss) | 16,603,284 | (72,257,802) |
Change in net unrealized appreciation (depreciation) | 68,101,071 | 12,471,905 |
Net increase (decrease) in net assets resulting from operations | 88,306,587 | (54,243,602) |
Distributions to shareholders from net investment income | (5,760,355) | (4,425,446) |
Share transactions | 48,361,547 | 189,963,917 |
Reinvestment of distributions | 5,388,395 | 4,122,592 |
Cost of shares redeemed | (166,305,284) | (118,273,597) |
Net increase (decrease) in net assets resulting from share transactions | (112,555,342) | 75,812,912 |
Redemption fees | 18,274 | 91,605 |
Total increase (decrease) in net assets | (29,990,836) | 17,235,469 |
Net Assets | ||
Beginning of period | 424,006,083 | 406,770,614 |
End of period (including undistributed net investment income of $3,962,064 and undistributed net investment income of $5,243,126, respectively) | $ 394,015,247 | $ 424,006,083 |
Other Information Shares | ||
Sold | 3,432,677 | 11,629,937 |
Issued in reinvestment of distributions | 395,914 | 255,585 |
Redeemed | (11,609,649) | (7,642,179) |
Net increase (decrease) | (7,781,058) | 4,243,343 |
Financial Highlights
See accompanying notes which are an integral part of the financial statements.
Annual Report
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity a fund's total returns will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended | Past 1 | Past 5 | Past 10 |
Fidelity Japan | 35.64% | 7.39% | 1.57% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Japan Fund on October 31, 1993. The chart shows how the value of your investment would have grown, and also shows how the TOPIX did over the same period.
Annual Report
Management's Discussion of Fund Performance
Comments from Yoko Ishibashi, Portfolio Manager of Fidelity Japan Fund
Mirroring the U.S. rally, most international stock markets rebounded sharply during the 12-month period ending October 31, 2003. Encouraged by improved corporate earnings, favorable interest rates and the easing of geopolitical tensions, the Morgan Stanley Capital International Europe, Australasia, Far East (MSCI EAFE) Index - a proxy for stock markets outside the United States and Canada - gained 27.39% during the past year. From a regional perspective, all 16 countries in the MSCI Europe index - which gained 24.56% - had double-digit advances. Spain, Denmark and Sweden were among the region's best performers. In Japan, increased capital spending, exports and machinery orders helped the Tokyo Stock Exchange Stock Price Index (TOPIX) advance 36.39%. Following the SARS epidemic, other Asian markets also rebounded. For instance, the Hong Kong market, as measured by the Hang Seng Index, gained 34.51%. Emerging markets also fared well, particularly Latin America. The MSCI Emerging Markets Free-Latin America index rose 59.75%. Canadian equities, as measured by the S&P/TSX Composite Index, also posted an impressive annual gain, advancing 50.66%.
For the 12 months ending October 31, 2003, Fidelity Japan Fund returned 35.64%, which fell between the return of the TOPIX and the 33.74% mark recorded by the Lipper Japanese Funds Average. Favorable stock selection in telecommunication services had a positive impact on performance compared with the index, while stock selection in pharmaceuticals and biotechnology held back performance. Cellular service provider KDDI was the top contributor both in absolute terms and compared with the index. The company effectively reduced costs while aggressively adding new subscribers. Also helping our returns was Stanley Electric, whose LED - light-emitting diode - business was buoyed by firming demand for cellular handsets with color screens. Video game maker Konami was our largest detractor in absolute terms. The fund carried an overweighted exposure early in the period, when the stock was sidetracked by the company's large write-off due to losses from its fitness chain. Yamanouchi Pharmaceutical struggled as investors abandoned the steady but unspectacular earnings growth in the drug industry.
The views expressed in this statement reflect those of the portfolio manager only through the end of the period of the report as stated on the cover and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Investment Changes
Geographic Diversification (% of fund's net assets) | |||
As of October 31, 2003 | |||
Japan | 98.6% | ||
United States of America | 1.4% |
Percentages are adjusted for the effect of futures contracts, if applicable. |
As of April 30, 2003 | |||
Japan | 97.7% | ||
United States of America | 2.3% |
Percentages are adjusted for the effect of futures contracts, if applicable. |
Asset Allocation | ||
% of fund's | % of fund's net assets | |
Stocks | 98.6 | 97.7 |
Short-Term Investments and | 1.4 | 2.3 |
Top Ten Stocks as of October 31, 2003 | ||
% of fund's | % of fund's net assets | |
Nissan Motor Co. Ltd. (Automobiles) | 6.1 | 6.9 |
Lawson, Inc. (Food & Staples Retailing) | 5.4 | 1.3 |
KDDI Corp. (Wireless Telecommunication Services) | 5.4 | 5.0 |
Sumitomo Mitsui Financial Group, Inc. (Commercial Banks) | 5.3 | 0.0 |
Konica Minolta Holdings, Inc. (Office Electronics) | 5.1 | 0.0 |
Yamada Denki Co. Ltd. (Specialty Retail) | 4.3 | 4.5 |
Omron Corp. (Electronic Equipment & Instruments) | 3.8 | 1.5 |
JSR Corp. (Chemicals) | 3.5 | 1.3 |
Ricoh Co. Ltd. (Office Electronics) | 3.4 | 2.2 |
Suzuki Motor Corp. (Automobiles) | 2.6 | 3.9 |
44.9 | ||
Market Sectors as of October 31, 2003 | ||
% of fund's | % of fund's net assets | |
Consumer Discretionary | 28.5 | 40.9 |
Information Technology | 18.4 | 16.3 |
Financials | 14.5 | 5.3 |
Materials | 9.8 | 7.4 |
Industrials | 9.6 | 6.1 |
Consumer Staples | 7.8 | 5.1 |
Telecommunication Services | 5.4 | 5.1 |
Health Care | 4.6 | 11.5 |
Annual Report
Investments October 31, 2003
Showing Percentage of Net Assets
Common Stocks - 98.6% | |||
Shares | Value (Note 1) | ||
CONSUMER DISCRETIONARY - 28.5% | |||
Auto Components - 5.6% | |||
Bridgestone Corp. | 26,000 | $ 340,549 | |
Denso Corp. | 365,800 | 6,937,356 | |
NOK Corp. | 172,000 | 6,774,240 | |
Stanley Electric Co. Ltd. | 521,500 | 11,099,781 | |
Toyoda Gosei Co. Ltd. | 148,000 | 4,375,113 | |
29,527,039 | |||
Automobiles - 10.0% | |||
Fuji Heavy Industries Ltd. | 51,000 | 231,481 | |
Nissan Motor Co. Ltd. | 2,855,200 | 32,278,037 | |
Suzuki Motor Corp. | 941,800 | 13,620,720 | |
Toyota Motor Corp. | 239,600 | 6,950,796 | |
53,081,034 | |||
Household Durables - 1.2% | |||
Daito Trust Construction Co. | 98,700 | 3,052,392 | |
Funai Electric Co. Ltd. | 1,300 | 173,231 | |
Matsushita Electric Industrial Co. Ltd. | 42,000 | 551,040 | |
Pioneer Corp. | 33,600 | 837,402 | |
Sanyo Electric Co. Ltd. | 350,000 | 1,604,511 | |
6,218,576 | |||
Internet & Catalog Retail - 0.5% | |||
Nissen Co. Ltd. | 133,400 | 2,493,515 | |
Leisure Equipment & Products - 2.1% | |||
Bandai Co. Ltd. | 3,800 | 100,928 | |
Bandai Co. Ltd. (a) | 3,800 | 100,928 | |
Fuji Photo Film Co. Ltd. | 48,000 | 1,414,590 | |
Heiwa Corp. | 296,000 | 4,286,265 | |
Mizuno Corp. | 275,000 | 1,018,055 | |
Nidec Copal Corp. | 144,000 | 2,410,042 | |
Noritsu Koki Co. Ltd. | 34,100 | 1,141,423 | |
Takara Co. Ltd. | 69,900 | 467,314 | |
10,939,545 | |||
Media - 0.1% | |||
SKY Perfect Communications, Inc. (a) | 429 | 522,885 | |
Multiline Retail - 3.3% | |||
Don Quijote Co. Ltd. | 145,700 | 7,832,335 | |
The Daimaru, Inc. | 1,667,000 | 9,825,504 | |
17,657,839 | |||
Specialty Retail - 5.7% | |||
Fast Retailing Co. Ltd. | 95,200 | 5,784,391 | |
Nitori Co. Ltd. | 24,700 | 1,574,923 | |
Otsuka Kagu Ltd. | 5,400 | 157,177 | |
Yamada Denki Co. Ltd. | 721,700 | 22,975,713 | |
30,492,204 | |||
TOTAL CONSUMER DISCRETIONARY | 150,932,637 | ||
CONSUMER STAPLES - 7.8% | |||
Food & Staples Retailing - 5.4% | |||
Lawson, Inc. | 749,500 | 28,632,889 | |
Shares | Value (Note 1) | ||
Household Products - 2.4% | |||
Uni-Charm Corp. | 269,900 | $ 12,594,023 | |
TOTAL CONSUMER STAPLES | 41,226,912 | ||
FINANCIALS - 14.5% | |||
Capital Markets - 3.6% | |||
Daiwa Securities Group, Inc. | 39,000 | 285,210 | |
JAFCO Co. Ltd. | 35,800 | 3,060,942 | |
Mitsubishi Securities Co. Ltd. | 205,000 | 2,330,817 | |
Nikko Cordial Corp. | 102,000 | 550,173 | |
Nomura Holdings, Inc. | 733,000 | 12,587,811 | |
18,814,953 | |||
Commercial Banks - 10.7% | |||
Mitsubishi Tokyo Financial Group, Inc. (MTFG) | 1,639 | 12,030,259 | |
Mizuho Financial Group, Inc. (a) | 5,516 | 13,496,488 | |
Sumitomo Mitsui Financial Group, Inc. | 5,530 | 27,815,989 | |
UFJ Holdings, Inc. (a) | 760 | 3,249,045 | |
56,591,781 | |||
Consumer Finance - 0.2% | |||
SFCG Co. Ltd. | 8,150 | 1,187,584 | |
TOTAL FINANCIALS | 76,594,318 | ||
HEALTH CARE - 4.6% | |||
Health Care Equipment & Supplies - 0.2% | |||
Terumo Corp. | 44,600 | 847,862 | |
Pharmaceuticals - 4.4% | |||
Fujisawa Pharmaceutical Co. Ltd. | 372,200 | 7,685,046 | |
Kissei Pharmaceutical Co. Ltd. | 14,000 | 222,339 | |
Kyorin Pharmaceutical Co. Ltd. | 31,000 | 466,664 | |
Ono Pharmaceutical Co. Ltd. | 78,000 | 2,710,205 | |
Sankyo Co. Ltd. | 79,800 | 1,277,497 | |
Takeda Chemical Industries Ltd. | 12,700 | 449,363 | |
Yamanouchi Pharmaceutical Co. Ltd. | 421,100 | 10,571,548 | |
23,382,662 | |||
TOTAL HEALTH CARE | 24,230,524 | ||
INDUSTRIALS - 9.6% | |||
Building Products - 2.7% | |||
Asahi Glass Co. Ltd. | 686,000 | 5,416,118 | |
Daikin Industries Ltd. | 21,000 | 447,926 | |
Toto Ltd. | 1,035,000 | 8,614,016 | |
14,478,060 | |||
Construction & Engineering - 0.4% | |||
JGC Corp. | 37,000 | 318,037 | |
Taisei Corp. | 472,000 | 1,640,022 | |
1,958,059 | |||
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
INDUSTRIALS - continued | |||
Electrical Equipment - 0.5% | |||
Fujikura Ltd. | 258,000 | $ 1,551,191 | |
Sumitomo Electric Industries Ltd. | 136,000 | 1,169,001 | |
2,720,192 | |||
Machinery - 4.7% | |||
Fanuc Ltd. | 7,400 | 444,915 | |
Hino Motors Ltd. | 505,000 | 2,884,664 | |
Ishikawajima-Harima Heavy Industries Co. Ltd. | 2,311,000 | 3,153,083 | |
Koyo Seiko Co. Ltd. | 1,282,000 | 13,060,214 | |
NGK Insulators Ltd. | 145,000 | 990,495 | |
NTN Corp. | 610,000 | 3,179,279 | |
Organo Corp. | 104,000 | 424,741 | |
SMC Corp. | 3,400 | 409,150 | |
THK Co. Ltd. | 10,500 | 212,980 | |
24,759,521 | |||
Trading Companies & Distributors - 1.3% | |||
Mitsui & Co. Ltd. | 754,000 | 5,486,629 | |
Sumitomo Corp. | 226,000 | 1,568,474 | |
7,055,103 | |||
TOTAL INDUSTRIALS | 50,970,935 | ||
INFORMATION TECHNOLOGY - 18.4% | |||
Electronic Equipment & Instruments - 7.8% | |||
Citizen Watch Co. Ltd. | 338,000 | 2,770,038 | |
Dainippon Screen Manufacturing Co. Ltd. (a) | 79,000 | 564,080 | |
Hoya Corp. | 2,600 | 235,310 | |
Japan Radio Co. Ltd. (a) | 568,000 | 2,748,554 | |
Kyocera Corp. | 55,600 | 3,347,935 | |
Murata Manufacturing Co. Ltd. | 13,400 | 761,779 | |
Nidec Corp. | 10,800 | 1,046,207 | |
Nippon Electric Glass Co. Ltd. | 294,000 | 5,401,855 | |
Omron Corp. | 922,900 | 20,230,934 | |
Yokogawa Electric Corp. | 374,000 | 4,371,384 | |
41,478,076 | |||
IT Services - 0.4% | |||
Nomura Research Institute Ltd. | 12,700 | 1,276,469 | |
NS Solutions Corp. | 9,900 | 639,349 | |
1,915,818 | |||
Office Electronics - 8.8% | |||
Canon, Inc. | 28,000 | 1,370,600 | |
Konica Minolta Holdings, Inc. | 2,056,000 | 27,023,102 | |
Ricoh Co. Ltd. | 958,000 | 18,168,364 | |
46,562,066 | |||
Semiconductors & Semiconductor Equipment - 1.4% | |||
Nikon Corp. (a) | 37,000 | 561,697 | |
Rohm Co. Ltd. | 8,600 | 1,159,287 | |
Shares | Value (Note 1) | ||
Sanken Electric Co. Ltd. | 381,000 | $ 4,224,477 | |
Tokyo Electron Ltd. | 22,800 | 1,634,200 | |
7,579,661 | |||
Software - 0.0% | |||
Nintendo Co. Ltd. | 1,400 | 108,114 | |
TOTAL INFORMATION TECHNOLOGY | 97,643,735 | ||
MATERIALS - 9.8% | |||
Chemicals - 7.6% | |||
Hitachi Chemical Co. Ltd. | 49,400 | 798,021 | |
JSR Corp. | 875,000 | 18,544,205 | |
Nitto Denko Corp. | 49,000 | 2,571,675 | |
Shin-Etsu Chemical Co. Ltd. | 300,800 | 11,190,394 | |
Toray Industries, Inc. | 1,639,000 | 6,813,016 | |
39,917,311 | |||
Metals & Mining - 2.0% | |||
JFE Holdings, Inc. | 335,500 | 8,575,177 | |
Nippon Steel Corp. | 1,067,000 | 2,193,396 | |
10,768,573 | |||
Paper & Forest Products - 0.2% | |||
Oji Paper Co. Ltd. | 193,000 | 1,026,969 | |
TOTAL MATERIALS | 51,712,853 | ||
TELECOMMUNICATION SERVICES - 5.4% | |||
Wireless Telecommunication Services - 5.4% | |||
KDDI Corp. | 5,228 | 28,389,265 | |
NTT DoCoMo, Inc. | 135 | 292,250 | |
NTT DoCoMo, Inc. (c) | 50 | 108,241 | |
28,789,756 | |||
TOTAL COMMON STOCKS (Cost $424,880,085) | 522,101,670 | ||
Money Market Funds - 11.2% | |||
Shares | Value (Note 1) | ||
Fidelity Cash Central Fund, 1.07% (b) | 2,079,696 | $ 2,079,696 | |
Fidelity Securities Lending Cash Central Fund, 1.09% (b) | 56,911,009 | 56,911,009 | |
TOTAL MONEY MARKET FUNDS (Cost $58,990,705) | 58,990,705 | ||
TOTAL INVESTMENT PORTFOLIO - 109.8% (Cost $483,870,790) | 581,092,375 | ||
NET OTHER ASSETS - (9.8)% | (51,740,530) | ||
NET ASSETS - 100% | $ 529,351,845 |
Legend |
(a) Non-income producing |
(b) The rate quoted is the annualized seven-day yield of the fund at period end. A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request. |
(c) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the period end, the value of these securities amounted to $108,241 or 0.0% of net assets. |
Other Information |
Purchases and sales of securities, other than short-term securities, aggregated $410,711,707 and $295,480,899, respectively. |
Income Tax Information |
At October 31, 2003, the fund had a capital loss carryforward of approximately $150,872,000 of which $62,465,000, $75,996,000 and $12,411,000 will expire on October 31, 2009, 2010 and 2011, respectively. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements
Statement of Assets and Liabilities
October 31, 2003 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $54,071,674) (cost $483,870,790) - See accompanying schedule | $ 581,092,375 | |
Receivable for investments sold | 5,844,229 | |
Receivable for fund shares sold | 871,099 | |
Dividends receivable | 1,356,821 | |
Interest receivable | 6,246 | |
Redemption fees receivable | 4,306 | |
Prepaid expenses | 2,093 | |
Receivable from investment advisor for reimbursement | 14,247 | |
Other receivables | 90,033 | |
Total assets | 589,281,449 | |
Liabilities | ||
Payable for investments purchased | $ 1,924,542 | |
Payable for fund shares redeemed | 618,402 | |
Accrued management fee | 270,636 | |
Other payables and accrued expenses | 205,015 | |
Collateral on securities loaned, at value | 56,911,009 | |
Total liabilities | 59,929,604 | |
Net Assets | $ 529,351,845 | |
Net Assets consist of: | ||
Paid in capital | $ 583,739,801 | |
Accumulated net investment loss | (121,904) | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (151,523,103) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 97,257,051 | |
Net Assets, for 47,325,982 shares outstanding | $ 529,351,845 | |
Net Asset Value, offering price and redemption price per share ($529,351,845 ÷ 47,325,982 shares) | $ 11.19 |
Statement of Operations
Year ended October 31, 2003 | ||
Investment Income | ||
Dividends | $ 3,178,234 | |
Interest | 84,743 | |
Security lending | 543,137 | |
3,806,114 | ||
Less foreign taxes withheld | (322,017) | |
Total income | 3,484,097 | |
Expenses | ||
Management fee | $ 2,558,511 | |
Performance adjustment | (457,763) | |
Transfer agent fees | 1,094,378 | |
Accounting and security lending fees | 217,816 | |
Non-interested trustees' compensation | 1,622 | |
Custodian fees and expenses | 165,071 | |
Registration fees | 22,818 | |
Audit | 27,201 | |
Legal | 1,009 | |
Miscellaneous | 3,284 | |
Total expenses before reductions | 3,633,947 | |
Expense reductions | (615) | 3,633,332 |
Net investment income (loss) | (149,235) | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities | (11,613,274) | |
Foreign currency transactions | 27,332 | |
Investments not meeting investment restrictions | (14,247) | |
Payments from investment advisor for losses on investments not meeting investment restrictions | 14,247 | |
Total net realized gain (loss) | (11,585,942) | |
Change in net unrealized appreciation (depreciation) on: Investment securities | 138,454,911 | |
Assets and liabilities in foreign currencies | 31,571 | |
Total change in net unrealized appreciation (depreciation) | 138,486,482 | |
Net gain (loss) | 126,900,540 | |
Net increase (decrease) in net assets resulting from operations | $ 126,751,305 | |
Other Information | ||
Sales charges paid to FDC | $ 19,479 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Japan
Financial Statements - continued
Statement of Changes in Net Assets
Year ended | Year ended | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $ (149,235) | $ (2,388,437) |
Net realized gain (loss) | (11,585,942) | (75,158,771) |
Change in net unrealized appreciation (depreciation) | 138,486,482 | 27,066,413 |
Net increase (decrease) in net assets resulting from operations | 126,751,305 | (50,480,795) |
Share transactions | 217,644,017 | 130,653,779 |
Cost of shares redeemed | (98,660,885) | (120,425,242) |
Net increase (decrease) in net assets resulting from share transactions | 118,983,132 | 10,228,537 |
Redemption fees | 324,669 | 608,690 |
Total increase (decrease) in net assets | 246,059,106 | (39,643,568) |
Net Assets | ||
Beginning of period | 283,292,739 | 322,936,307 |
End of period (including accumulated net investment loss of $121,904 and $0, respectively) | $ 529,351,845 | $ 283,292,739 |
Other Information Shares | ||
Sold | 23,290,337 | 13,871,240 |
Redeemed | (10,323,638) | (12,909,221) |
Net increase (decrease) | 12,966,699 | 962,019 |
Financial Highlights
See accompanying notes which are an integral part of the financial statements.
Annual Report
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity a fund's total returns will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended | Past 1 | Past 5 | Life of |
Fidelity Japan Smaller Companies | 58.74% | 21.28% | 5.94% |
A From November 1, 1995
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity Japan Smaller Companies Fund on November 30, 1995, shortly after the fund started. The chart shows how the value of your investment would have grown, and also shows how the TOPIX Second Section Stock Price Index and the Russell/Nomura Small Cap Index did over the same period.
Going forward, the fund will compare its performance to that of the Russell/Nomura Small Cap Index(TM) rather than the TOPIX Second Section Index because the Russell/Nomura Small Cap Index more closely represents the fund's investment strategy.
Annual Report
Management's Discussion of Fund Performance
Comments from Kenichi Mizushita, Portfolio Manager of Fidelity Japan Smaller Companies Fund
Mirroring the U.S. rally, most international stock markets rebounded sharply during the 12-month period ending October 31, 2003. Encouraged by improved corporate earnings, favorable interest rates and the easing of geopolitical tensions, the Morgan Stanley Capital International Europe, Australasia, Far East (MSCI EAFE) Index - a proxy for stock markets outside the United States and Canada - gained 27.39% during the past year. From a regional perspective, all 16 countries in the MSCI Europe index - which gained 24.56% - had double-digit advances. Spain, Denmark and Sweden were among the region's best performers. In Japan, increased capital spending, exports and machinery orders helped the Tokyo Stock Exchange Stock Price Index (TOPIX) advance 36.39%. Following the SARS epidemic, other Asian markets also rebounded. For instance, the Hong Kong market, as measured by the Hang Seng Index, gained 34.51%. Emerging markets also fared well, particularly Latin America. The MSCI Emerging Markets Free-Latin America index rose 59.75%. Canadian equities, as measured by the S&P/TSX Composite Index, also posted an impressive annual gain, advancing 50.66%.
For the 12-month period ending October 31, 2003, Fidelity Japan Smaller Companies Fund returned 58.74%. Effective June 28, 2003, the fund changed its performance benchmark from the Tokyo Stock Exchange Second Section Stock Price (TOPIX Second Section) Index to the Russell/Nomura Small CapTM Index. By comparison, the Russell/Nomura Small CapTM Index was up 49.89%, the TOPIX Second Section gained 63.06% and the Lipper Japanese Funds Average rose 33.74%. The fund's increased exposure to automobile-related companies, semiconductor equipment makers and industrial materials companies, plus its lower exposure to the service-oriented retail sector, helped it outperform the Russell/Nomura benchmark and peer group average. Strong performers included NOK, Japan's largest maker of flexible printed circuit boards for electronic products and oil seals for automobiles, which benefited from automobile-related sales growth and increased demand for digital products. Chiyoda Integre, a manufacturer of mechanical components for computers, printers and other office equipment, was helped by the growth in overseas production of Japanese-made copiers and audio-visual products. Detractors included Culture Convenience Club, Japan's largest video and music CD rental-chain. Its stock price was hurt by a lack of movie and CD hits, resulting in slumping earnings. Slowing demand hurt high-end restaurant chain Tascosystem, as consumers substituted lower-cost dining in Japan's deflationary environment.
The views expressed in this statement reflect those of the portfolio manager only through the end of the period of the report as stated on the cover and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Investment Changes
Geographic Diversification (% of fund's net assets) | |||
As of October 31, 2003 | |||
Japan | 88.2% | ||
United States of America | 11.8% |
Percentages are adjusted for the effect of futures contracts, if applicable. |
As of April 30, 2003 | |||
Japan | 96.4% | ||
United States of America | 3.6% |
Percentages are adjusted for the effect of futures contracts, if applicable. |
Asset Allocation | ||
% of fund's | % of fund's net assets | |
Stocks | 88.2 | 96.4 |
Short-Term Investments and | 11.8 | 3.6 |
Top Ten Stocks as of October 31, 2003 | ||
% of fund's | % of fund's net assets | |
NOK Corp. (Auto Components) | 4.5 | 3.5 |
USS Co. Ltd. (Specialty Retail) | 4.0 | 7.2 |
Reins International, Inc. (Hotels, Restaurants & Leisure) | 2.6 | 1.8 |
Yamada Denki Co. Ltd. | 2.5 | 3.7 |
Nishimatsuya Chain Co. Ltd. (Specialty Retail) | 2.3 | 4.1 |
Chiyoda Integre Co. Ltd. (Electrical Equipment) | 2.0 | 2.7 |
Toyoda Gosei Co. Ltd. (Auto Components) | 2.0 | 1.0 |
Don Quijote Co. Ltd. (Multiline Retail) | 2.0 | 5.1 |
Usen Corp. (Media) | 1.8 | 0.0 |
Matsushita Electric Works Information Systems Co. Ltd. | 1.7 | 1.4 |
25.4 | ||
Market Sectors as of October 31, 2003 | ||
% of fund's | % of fund's net assets | |
Consumer Discretionary | 33.1 | 45.0 |
Information Technology | 21.3 | 21.4 |
Industrials | 14.6 | 13.5 |
Materials | 9.0 | 2.9 |
Financials | 4.8 | 2.7 |
Health Care | 4.8 | 8.2 |
Consumer Staples | 0.6 | 2.7 |
Telecommunication Services | 0.0 | 0.0 |
Annual Report
Investments October 31, 2003
Showing Percentage of Net Assets
Common Stocks - 88.2% | |||
Shares | Value (Note 1) | ||
CONSUMER DISCRETIONARY - 33.1% | |||
Auto Components - 7.6% | |||
Fuji Kiko Co. Ltd. | 72,000 | $ 212,843 | |
NHK Spring Co. Ltd. | 300,000 | 1,367,109 | |
Nissin Kogyo Co. Ltd. | 106,000 | 2,285,064 | |
NOK Corp. | 1,061,000 | 41,787,613 | |
Pacific Industrial Co. Ltd. | 298,000 | 918,883 | |
SNT Corp. | 102,000 | 346,989 | |
Stanley Electric Co. Ltd. | 177,600 | 3,780,098 | |
Suncall Corp. | 98,000 | 588,321 | |
Toyoda Gosei Co. Ltd. | 636,400 | 18,812,988 | |
Unipres Corp. | 109,000 | 693,023 | |
70,792,931 | |||
Distributors - 1.2% | |||
Crymson Co. Ltd. | 864 | 2,428,379 | |
Hybrid Service Co. Ltd. | 1,118 | 1,271,148 | |
Ohashi Technica, Inc. | 261,900 | 7,027,515 | |
10,727,042 | |||
Hotels, Restaurants & Leisure - 4.4% | |||
Colowide Co. Ltd. | 9,500 | 72,844 | |
H.I.S. Co. Ltd. | 350,000 | 7,322,175 | |
Kappa Create Co. Ltd. | 97,250 | 8,376,910 | |
Kazokutei Co. Ltd. | 75,000 | 416,136 | |
Reins International, Inc. (c) | 1,300 | 24,595,233 | |
40,783,298 | |||
Household Durables - 0.6% | |||
Funai Electric Co. Ltd. | 21,100 | 2,811,670 | |
Japan General Estate Co. Ltd. | 108,600 | 1,107,337 | |
Sanko Soflan Co., Inc. | 421,000 | 2,087,002 | |
6,006,009 | |||
Internet & Catalog Retail - 0.8% | |||
Nissen Co. Ltd. | 203,700 | 3,807,563 | |
Prime Network, Inc. | 1,848 | 3,597,162 | |
7,404,725 | |||
Leisure Equipment & Products - 1.4% | |||
Aruze Corp. | 264,200 | 6,416,354 | |
Salomon & Taylor Made Co. Ltd. | 277,000 | 2,111,388 | |
Yamaha Corp. | 214,900 | 4,329,666 | |
12,857,408 | |||
Media - 2.9% | |||
Apamanshop Co. Ltd. | 2,465 | 2,825,087 | |
Apamanshop Co. Ltd. New | 2,093 | 2,398,745 | |
Intage, Inc. | 195,700 | 3,293,114 | |
SKY Perfect Communications, Inc. (a) | 1,624 | 1,979,407 | |
Usen Corp. (a) | 11,430 | 16,426,595 | |
26,922,948 | |||
Multiline Retail - 2.1% | |||
Can Do Co. Ltd. | 632 | 1,414,153 | |
Shares | Value (Note 1) | ||
Don Quijote Co. Ltd. | 342,100 | $ 18,390,130 | |
Komehyo Co. Ltd. | 2,500 | 83,909 | |
19,888,192 | |||
Specialty Retail - 11.7% | |||
Arc Land Sakamoto Co. Ltd. | 611,000 | 7,947,334 | |
Culture Convenience Club Co. Ltd. | 697,300 | 6,646,993 | |
Nishimatsuya Chain Co. Ltd. | 721,000 | 21,641,803 | |
Pal Co. Ltd. | 220,400 | 9,923,412 | |
Top Culture Co. Ltd. | 228,400 | 1,485,410 | |
USS Co. Ltd. | 525,140 | 37,305,286 | |
Yamada Denki Co. Ltd. | 745,600 | 23,736,582 | |
108,686,820 | |||
Textiles Apparel & Luxury Goods - 0.4% | |||
Fuji Spinning Co. Ltd. (a) | 2,327,000 | 2,497,599 | |
Workman Co. Ltd. | 67,300 | 1,377,342 | |
3,874,941 | |||
TOTAL CONSUMER DISCRETIONARY | 307,944,314 | ||
CONSUMER STAPLES - 0.6% | |||
Beverages - 0.0% | |||
Japan Foods Co. Ltd. | 32,700 | 345,025 | |
Food & Staples Retailing - 0.4% | |||
Kraft, Inc. | 104,500 | 914,399 | |
Plant Co. Ltd. | 194,100 | 2,648,263 | |
3,562,662 | |||
Food Products - 0.2% | |||
Fujicco Co. Ltd. | 107,000 | 1,104,648 | |
Pickles Corp. | 209,000 | 845,961 | |
1,950,609 | |||
TOTAL CONSUMER STAPLES | 5,858,296 | ||
FINANCIALS - 4.8% | |||
Capital Markets - 2.1% | |||
Matsui Securities Co. Ltd. | 233,300 | 5,602,256 | |
Mitsubishi Securities Co. Ltd. | 1,200,000 | 13,643,805 | |
19,246,061 | |||
Commercial Banks - 1.5% | |||
Bank of Yokohama Ltd. | 2,177,000 | 9,405,812 | |
Mitsui Trust Holdings, Inc. | 926,000 | 4,927,324 | |
14,333,136 | |||
Real Estate - 1.2% | |||
Diamond City Co. Ltd. | 89,800 | 2,364,662 | |
Kennedy-Wilson Japan Co. Ltd. (a) | 457 | 1,454,884 | |
Kyoritsu Maintenance Co. Ltd. | 33,900 | 529,745 | |
Mitsui Fudosan Co. Ltd. | 314,000 | 2,921,794 | |
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
FINANCIALS - continued | |||
Real Estate - continued | |||
Relo Holdings Corp. | 105,400 | $ 2,866,527 | |
Ryowa Life Create Co. Ltd. | 103,000 | 1,180,462 | |
11,318,074 | |||
TOTAL FINANCIALS | 44,897,271 | ||
HEALTH CARE - 4.8% | |||
Health Care Equipment & Supplies - 1.9% | |||
A&T Corp. | 101,000 | 491,495 | |
Hogy Medical Co. | 200,000 | 9,805,348 | |
Japan Medical Dynamic Marketing, Inc. | 306,600 | 4,322,630 | |
Nakanishi, Inc. | 64,000 | 3,312,352 | |
17,931,825 | |||
Health Care Providers & Services - 1.9% | |||
AS One Corp. | 148,300 | 2,765,281 | |
Hoshiiryou Sanki Co. Ltd. | 74,400 | 1,360,233 | |
Nichii Gakkan Co. | 243,630 | 13,251,840 | |
17,377,354 | |||
Pharmaceuticals - 1.0% | |||
Fuji Pharmaceutical Co. Ltd. | 119,000 | 1,504,548 | |
Sawai Pharmaceutical Co. Ltd. | 116,100 | 4,086,838 | |
Seikagaku Corp. | 359,400 | 3,988,248 | |
9,579,634 | |||
TOTAL HEALTH CARE | 44,888,813 | ||
INDUSTRIALS - 14.6% | |||
Air Freight & Logistics - 0.4% | |||
Kintetsu World Express, Inc. | 214,000 | 3,445,334 | |
Airlines - 0.0% | |||
Skymark Airlines Co. Ltd. (a) | 717 | 392,609 | |
Building Products - 0.6% | |||
Sankyo Aluminum Industry Co. Ltd. | 1,434,000 | 5,308,695 | |
Commercial Services & Supplies - 4.2% | |||
AJIS Co. Ltd. | 30,700 | 647,844 | |
ARRK Corp. | 177,300 | 11,804,948 | |
en-japan, Inc. | 899 | 3,025,559 | |
Fullcast Co. Ltd. | 211 | 665,972 | |
Fullcast Co. Ltd. New (a) | 414 | 1,306,695 | |
Intelligence Ltd. | 326 | 1,527,106 | |
Okamura Corp. | 321,000 | 1,880,335 | |
Pasona, Inc. (a) | 156 | 1,119,556 | |
Studio Alice Co. Ltd. | 222,500 | 8,358,422 | |
Sumisho Lease Co. Ltd. | 161,000 | 4,949,791 | |
Take & Give Needs Co. Ltd. (a) | 103 | 4,412,679 | |
39,698,907 | |||
Construction & Engineering - 0.0% | |||
Token Corp. | 3,500 | 108,559 | |
Electrical Equipment - 3.4% | |||
Chiyoda Integre Co. Ltd. (c) | 687,100 | 18,936,810 | |
Shares | Value (Note 1) | ||
Fujikura Ltd. | 1,700,000 | $ 10,221,029 | |
Iwabuchi Corp. | 129,000 | 1,065,417 | |
Sansha Electric Manufacturing Co. Ltd. | 232,000 | 1,350,555 | |
31,573,811 | |||
Machinery - 4.7% | |||
Glory Ltd. | 299,200 | 9,389,121 | |
Kawata Manufacturing Co. Ltd. | 35,000 | 254,684 | |
Koyo Seiko Co. Ltd. | 277,000 | 2,821,903 | |
Kyokuto Kaihatsu Kogyo Co. Ltd. | 105,900 | 862,111 | |
Makino Milling Machine Co. Ltd. (a) | 443,000 | 2,345,152 | |
Nihon Trim Co. Ltd. | 142,400 | 7,214,553 | |
NTN Corp. | 1,415,000 | 7,374,886 | |
Obara Corp. | 7,600 | 174,204 | |
OSG Corp. Co. Ltd. | 98,400 | 1,074,040 | |
THK Co. Ltd. | 518,900 | 10,525,259 | |
Toshiba Machine Co. Ltd. | 553,000 | 1,891,286 | |
43,927,199 | |||
Marine - 0.6% | |||
Mitsui O.S.K. Lines Ltd. | 1,350,000 | 5,488,903 | |
Road & Rail - 0.7% | |||
Hamakyorex Co. Ltd. | 317,700 | 6,285,223 | |
TOTAL INDUSTRIALS | 136,229,240 | ||
INFORMATION TECHNOLOGY - 21.3% | |||
Communications Equipment - 0.1% | |||
Hitachi Kokusai Electric, Inc. | 100,000 | 676,733 | |
Netmarks, Inc. | 2 | 11,643 | |
688,376 | |||
Computers & Peripherals - 1.4% | |||
Fujitsu Frontech Ltd. | 709,000 | 7,732,317 | |
Meiko Electronics Co. Ltd. | 178,000 | 5,585,774 | |
13,318,091 | |||
Electronic Equipment & Instruments - 7.6% | |||
Arisawa Manufacturing Co. Ltd. | 48,400 | 1,932,654 | |
Citizen Electronics Co. Ltd. | 90,000 | 8,431,871 | |
Dainippon Screen Manufacturing Co. Ltd. (a) | 450,000 | 3,213,116 | |
EM Systems Co. Ltd. | 221,700 | 1,542,664 | |
Enplas Corp. | 464,400 | 15,418,045 | |
Hakuto Co. Ltd. | 81,400 | 1,174,280 | |
Honda Tsushin Kogyo Co. Ltd. | 229,400 | 1,502,347 | |
Horiba Ltd. | 22,000 | 240,131 | |
Iriso Electronics Co. Ltd. | 13,000 | 165,545 | |
Japan Radio Co. Ltd. (a) | 810,000 | 3,919,592 | |
KAGA ELECTRONICS Co. Ltd. | 750,000 | 12,361,287 | |
Nagano Keiki Co. Ltd. | 247,900 | 4,036,210 | |
Siix Corp. | 302,600 | 5,958,968 | |
Tietech Co. Ltd. | 10,000 | 74,390 | |
Tosei Engineering Corp. | 107,000 | 1,459,887 | |
Yokogawa Electric Corp. | 763,000 | 8,918,091 | |
70,349,078 | |||
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
INFORMATION TECHNOLOGY - continued | |||
Internet Software & Services - 0.9% | |||
Access Co. Ltd. (a) | 4 | $ 230,307 | |
Dwango Co. Ltd. | 2 | 29,107 | |
Dwango Co. Ltd. New | 4 | 58,214 | |
Fuji Technica, Inc. | 194,000 | 1,729,307 | |
Telewave, Inc. | 1,288 | 6,267,782 | |
8,314,717 | |||
IT Services - 3.8% | |||
Faith, Inc. | 871 | 7,090,640 | |
Future System Consulting Corp. | 810 | 2,121,885 | |
ITX Corp. (a) | 1,722 | 3,195,270 | |
Kawatetsu Systems, Inc. | 707 | 1,221,848 | |
Matsushita Electric Works Information Systems Co. Ltd. | 2,030 | 15,879,570 | |
NEC Soft Ltd. | 212,700 | 5,784,728 | |
35,293,941 | |||
Office Electronics - 2.1% | |||
Canon Fintech, Inc. | 54,000 | 615,445 | |
Konica Minolta Holdings, Inc. | 619,000 | 8,135,846 | |
Riso Kagaku Corp. | 245,800 | 10,306,876 | |
19,058,167 | |||
Semiconductors & Semiconductor Equipment - 3.3% | |||
AOI Electronics Co. Ltd. | 90,800 | 1,321,448 | |
Nihon Inter Electronics Corp. | 52,000 | 333,928 | |
Nikon Corp. (a) | 298,000 | 4,523,940 | |
Sanken Electric Co. Ltd. | 326,000 | 3,614,644 | |
Shinkawa Ltd. | 26,500 | 512,211 | |
Shinko Electric Industries Co.Ltd. | 326,700 | 8,023,376 | |
Techno Quartz, Inc. | 76,000 | 504,639 | |
Tokyo Electron Ltd. | 60,800 | 4,357,868 | |
Tokyo Seimitsu Co. Ltd. | 66,100 | 2,068,255 | |
UMC Japan (a) | 4,272 | 5,828,633 | |
31,088,942 | |||
Software - 2.1% | |||
Core Corp. | 60,400 | 950,446 | |
Konami Computer Tokyo, Inc. | 326,900 | 4,727,769 | |
Pixela Corp. (a) | 61,800 | 882,536 | |
VIC Tokai Corp. | 230,000 | 4,372,385 | |
Works Applications Co. Ltd. (a) | 1,862 | 9,044,096 | |
19,977,232 | |||
TOTAL INFORMATION TECHNOLOGY | 198,088,544 | ||
MATERIALS - 9.0% | |||
Chemicals - 3.6% | |||
C. Uyemura & Co. Ltd. | 254,000 | 7,046,570 | |
Daicel Chemical Industries Ltd. | 443,000 | 1,877,733 | |
Denki Kagaku Kogyo KK | 667,000 | 2,026,360 | |
Hitachi Chemical Co. Ltd. | 217,700 | 3,516,784 | |
JSP Corp. | 89,000 | 712,389 | |
Kaneka Corp. | 278,000 | 2,167,055 | |
Shares | Value (Note 1) | ||
Lintec Corp. | 359,000 | $ 5,192,014 | |
Nifco, Inc. | 557,000 | 7,128,424 | |
Nippon Shokubai Co. Ltd. | 70,000 | 490,267 | |
NOF Corp. | 721,000 | 2,931,481 | |
T&K Toka Co. Ltd. | 29,600 | 858,868 | |
33,947,945 | |||
Containers & Packaging - 0.7% | |||
FP Corp. | 20,900 | 325,077 | |
Fuji Seal, Inc. | 119,800 | 4,184,391 | |
Sun A Kaken Co. Ltd. | 3,000 | 28,379 | |
Taisei Lamick Co. Ltd. | 84,100 | 1,897,107 | |
6,434,954 | |||
Metals & Mining - 4.5% | |||
Nippon Denko Co. Ltd. | 329,000 | 565,590 | |
Nippon Light Metal Co. Ltd. | 5,000,000 | 12,870,656 | |
Nippon Steel Corp. | 1,546,000 | 3,178,061 | |
Pacific Metals Co. Ltd. (a) | 2,400,000 | 11,438,966 | |
Sumitomo Metal Mining Co. Ltd. | 1,150,000 | 7,887,029 | |
Topy Industries Ltd. | 2,187,000 | 5,689,303 | |
41,629,605 | |||
Paper & Forest Products - 0.2% | |||
Hivic Co. Ltd. | 8,000 | 117,882 | |
Kokusai Chart Corp. | 206,000 | 1,630,162 | |
1,748,044 | |||
TOTAL MATERIALS | 83,760,548 | ||
TELECOMMUNICATION SERVICES - 0.0% | |||
Wireless Telecommunication Services - 0.0% | |||
Okinawa Cellular Telephone Co. | 43 | 279,261 | |
TOTAL COMMON STOCKS (Cost $566,647,136) | 821,946,287 | ||
Money Market Funds - 24.4% | |||
Shares | Value (Note 1) | ||
Fidelity Cash Central Fund, 1.07% (b) | 110,250,567 | $ 110,250,567 | |
Fidelity Securities Lending Cash Central Fund, 1.09% (b) | 116,573,539 | 116,573,539 | |
TOTAL MONEY MARKET FUNDS (Cost $226,824,106) | 226,824,106 | ||
TOTAL INVESTMENT PORTFOLIO - 112.6% (Cost $793,471,242) | 1,048,770,393 | ||
NET OTHER ASSETS - (12.6)% | (117,042,462) | ||
NET ASSETS - 100% | $ 931,727,931 |
Legend |
(a) Non-income producing |
(b) The rate quoted is the annualized seven-day yield of the fund at period end. A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request. |
(c) Affiliated company |
Other Information |
Purchases and sales of securities, other than short-term securities, aggregated $352,530,207 and $183,613,273, respectively. |
Transactions during the period with companies which are or were affiliates are as follows: |
Affiliate | Purchase | Sales | Dividend | Value |
Chiyoda Integre Co. Ltd. | $ 1,786,707 | $ 404,186 | $ 97,425 | $ 18,936,810 |
Reins International, Inc. | 2,919,783 | - | - | 24,595,233 |
TOTALS | $ 4,706,490 | $ 404,186 | $ 97,425 | $ 43,532,043 |
Income Tax Information |
At October 31, 2003, the fund had a capital loss carryforward of approximately $74,043,000 of which $28,968,000 and $45,075,000 will expire on October 31, 2009 and 2010, respectively. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements
Statement of Assets and Liabilities
October 31, 2003 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $110,466,256) (cost $793,471,242) - See accompanying schedule | $ 1,048,770,393 | |
Receivable for investments sold | 6,570,010 | |
Receivable for fund shares sold | 3,641,754 | |
Dividends receivable | 1,229,864 | |
Interest receivable | 96,327 | |
Redemption fees receivable | 2,458 | |
Prepaid expenses | 2,347 | |
Other receivables | 162,085 | |
Total assets | 1,060,475,238 | |
Liabilities | ||
Payable for investments purchased | $ 10,485,053 | |
Payable for fund shares redeemed | 944,408 | |
Accrued management fee | 506,206 | |
Other payables and accrued expenses | 238,101 | |
Collateral on securities loaned, at value | 116,573,539 | |
Total liabilities | 128,747,307 | |
Net Assets | $ 931,727,931 | |
Net Assets consist of: | ||
Paid in capital | $ 749,883,541 | |
Undistributed net investment income | 1,029,068 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (74,502,972) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 255,318,294 | |
Net Assets, for 89,993,293 shares outstanding | $ 931,727,931 | |
Net Asset Value, offering price and redemption price per share ($931,727,931 ÷ 89,993,293 shares) | $ 10.35 |
Statement of Operations
Year ended October 31, 2003 | ||
Investment Income | ||
Dividends (including $97,425 received from affiliated issuers) | $ 3,693,390 | |
Interest | 331,802 | |
Security lending | 2,199,870 | |
6,225,062 | ||
Less foreign taxes withheld | (385,442) | |
Total income | 5,839,620 | |
Expenses | ||
Management fee | $ 3,228,687 | |
Transfer agent fees | 1,178,759 | |
Accounting and security lending fees | 277,590 | |
Non-interested trustees' compensation | 1,764 | |
Custodian fees and expenses | 239,932 | |
Registration fees | 24,434 | |
Audit | 44,747 | |
Legal | 1,367 | |
Miscellaneous | 4,810 | |
Total expenses before reductions | 5,002,090 | |
Expense reductions | (2,083) | 5,000,007 |
Net investment income (loss) | 839,613 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities (including realized gain (loss) of ($63,154) on sales of investments in affiliated issuers) | 18,476,410 | |
Foreign currency transactions | 193,650 | |
Total net realized gain (loss) | 18,670,060 | |
Change in net unrealized appreciation (depreciation) on: Investment securities | 240,979,504 | |
Assets and liabilities in foreign currencies | 15,295 | |
Total change in net unrealized appreciation (depreciation) | 240,994,799 | |
Net gain (loss) | 259,664,859 | |
Net increase (decrease) in net assets resulting from operations | $ 260,504,472 | |
Other Information | ||
Sales charges paid to FDC | $ 29,145 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Japan Smaller Companies
Financial Statements - continued
Statement of Changes in Net Assets
Year ended | Year ended | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $ 839,613 | $ (221,949) |
Net realized gain (loss) | 18,670,060 | (45,135,419) |
Change in net unrealized appreciation (depreciation) | 240,994,799 | (7,998,629) |
Net increase (decrease) in net assets resulting from operations | 260,504,472 | (53,355,997) |
Share transactions | 429,276,957 | 327,123,364 |
Cost of shares redeemed | (167,399,388) | (205,162,629) |
Net increase (decrease) in net assets resulting from share transactions | 261,877,569 | 121,960,735 |
Redemption fees | 735,185 | 876,424 |
Total increase (decrease) in net assets | 523,117,226 | 69,481,162 |
Net Assets | ||
Beginning of period | 408,610,705 | 339,129,543 |
End of period (including undistributed net investment income of $1,029,068 and accumulated net investment loss of $16,471, respectively) | $ 931,727,931 | $ 408,610,705 |
Other Information Shares | ||
Sold | 50,915,768 | 43,162,404 |
Redeemed | (23,613,194) | (29,135,810) |
Net increase (decrease) | 27,302,574 | 14,026,594 |
Financial Highlights
See accompanying notes which are an integral part of the financial statements.
Annual Report
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity a fund's total returns will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended | Past 1 | Past 5 | Past 10 |
Fidelity Latin America | 52.83% | 6.17% | 1.35% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Latin America Fund on October 31, 1993. The chart shows how the value of your investment would have grown, and also shows how the MSCI EMF-Latin America Index did over the same period.
Annual Report
Management's Discussion of Fund Performance
Comments from Claudio Brocado, Portfolio Manager of Fidelity Latin America Fund
Mirroring the U.S. rally, most international stock markets rebounded sharply during the 12-month period ending October 31, 2003. Encouraged by improved corporate earnings, favorable interest rates and the easing of geopolitical tensions, the Morgan Stanley Capital International Europe, Australasia, Far East (MSCI EAFE) Index - a proxy for stock markets outside the United States and Canada - gained 27.39% during the past year. From a regional perspective, all 16 countries in the MSCI Europe index - which gained 24.56% - had double-digit advances. Spain, Denmark and Sweden were among the region's best performers. In Japan, increased capital spending, exports and machinery orders helped the Tokyo Stock Exchange Stock Price Index (TOPIX) advance 36.39%. Following the SARS epidemic, other Asian markets also rebounded. For instance, the Hong Kong market, as measured by the Hang Seng Index, gained 34.51%. Emerging markets also fared well, particularly Latin America. The MSCI Emerging Markets Free-Latin America index rose 59.75%. Canadian equities, as measured by the S&P/TSX Composite Index, also posted an impressive annual gain, advancing 50.66%.
For the 12 months that ended October 31, 2003, Fidelity Latin America Fund returned 52.83%. The Morgan Stanley Capital International Emerging Markets Free-Latin America Index gained 59.75% and the Lipper Latin American Funds Average gained 49.10% for the same time period. The fund was aided by overweighting Brazil relative to other Latin American markets, as Brazil outperformed expectations on the basis of a recovering currency, declining interest rates, and implementation of positive policies and reforms by newly elected President Lula da Silva. Strong stock selection within the energy and financial sectors, and overweighted positions in Brazilian companies such as Telebras, Petrobras and Usiminas, as well as America Movil in Mexico, moved the fund ahead of its peer group. The fund lagged the index partly because we didn't own some illiquid, infrequently traded stocks that are held in the index. Also, underweighting Chile, which had surprisingly strong performance, held back returns. Performance also was restrained by underweighting Brazil's Vale do Rio (CVRD) and Chile's Copec, both outperforming stocks with high valuations, as well as by overweighting Telefonos de Mexico (Telmex), a defensive stock that lagged other, higher-growth stocks in a strong market environment.
The views expressed in this statement reflect those of the portfolio manager only through the end of the period of the report as stated on the cover and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Investment Changes
Geographic Diversification (% of fund's net assets) | |||
As of October 31, 2003 | |||
Brazil | 50.2% | ||
Mexico | 41.9% | ||
United States of America | 3.3% | ||
Chile | 2.4% | ||
Luxembourg | 1.1% | ||
Argentina | 0.8% | ||
Venezuela | 0.3% |
Percentages are adjusted for the effect of futures contracts, if applicable. |
As of April 30, 2003 | |||
Brazil | 45.2% | ||
Mexico | 42.2% | ||
United States of America | 5.1% | ||
United Kingdom | 2.7% | ||
Chile | 2.1% | ||
Luxembourg | 1.1% | ||
Colombia | 0.9% | ||
Argentina | 0.7% |
Percentages are adjusted for the effect of futures contracts, if applicable. |
Asset Allocation | ||
% of fund's | % of fund's net assets | |
Stocks | 98.4 | 94.9 |
Short-Term Investments and | 1.6 | 5.1 |
Top Ten Stocks as of October 31, 2003 | ||
% of fund's | % of fund's net assets | |
Telefonos de Mexico SA de CV sponsored ADR (Mexico, Diversified Telecommunication Services) | 10.0 | 11.3 |
America Movil SA de CV sponsored ADR (Mexico, Wireless Telecommunication Services) | 9.2 | 7.7 |
Petroleo Brasileiro SA Petrobras (Brazil, Oil & Gas) | 8.1 | 7.1 |
Grupo Televisa SA de CV sponsored ADR (Mexico, Media) | 5.2 | 4.8 |
Cemex SA de CV sponsored ADR (Mexico, Construction Materials) | 5.1 | 4.0 |
Wal-Mart de Mexico SA de CV Series C (Mexico, Food & Staples Retailing) | 3.9 | 5.3 |
Companhia de Bebidas das Americas (AmBev) sponsored ADR (Brazil, Beverages) | 3.4 | 5.2 |
Companhia Vale do Rio Doce (Brazil, Metals & Mining) | 3.3 | 2.8 |
Banco Itau Holding Financeira SA (PN) (Brazil, Commercial Banks) | 3.2 | 4.2 |
Tele Norte Leste Participacoes SA ADR (Brazil, Diversified Telecommunication Services) | 3.2 | 2.9 |
54.6 | ||
Market Sectors as of October 31, 2003 | ||
% of fund's | % of fund's net assets | |
Telecommunication Services | 29.1 | 25.9 |
Materials | 18.2 | 16.0 |
Consumer Staples | 13.2 | 11.9 |
Energy | 13.0 | 12.4 |
Financials | 11.2 | 14.4 |
Consumer Discretionary | 6.7 | 10.9 |
Utilities | 4.7 | 2.3 |
Industrials | 2.3 | 1.1 |
Annual Report
Investments October 31, 2003
Showing Percentage of Net Assets
Common Stocks - 98.4% | |||
Shares | Value (Note 1) | ||
Argentina - 0.8% | |||
Inversiones y Representacions SA sponsored GDR (a) | 23,700 | $ 246,480 | |
Petrobras Energia Participaciones SA sponsored ADR (a) | 164,654 | 1,514,817 | |
TOTAL ARGENTINA | 1,761,297 | ||
Brazil - 50.2% | |||
Aracruz Celulose SA sponsored ADR | 67,900 | 1,907,990 | |
Banco Bradesco SA: | |||
(PN) | 584,943,900 | 2,471,192 | |
sponsored ADR | 129,200 | 2,711,908 | |
Banco Itau Holding Financeira SA (PN) | 85,973,200 | 7,048,213 | |
Brasil Telecom Participacoes SA sponsored ADR | 90,100 | 3,290,452 | |
Caemi Mineracao E Metalurgia (a) | 8,664,000 | 2,535,848 | |
Centrais Electricas Brasileiras (Electrobras) SA (PN-B) | 328,515,800 | 4,314,886 | |
Companhia Brasileira de Distribuicao Grupo Pao de Acucar sponsored ADR | 146,500 | 2,949,045 | |
Companhia de Bebidas das Americas (AmBev) | 589,135 | 113,038 | |
Companhia de Bebidas das Americas (AmBev) sponsored ADR | 356,226 | 7,551,991 | |
Companhia Energetica Minas Gerais (CEMIG) (PN) | 162,800,254 | 2,412,613 | |
Companhia Paranaense de Energia-Copel sponsored ADR (a) | 177,000 | 653,130 | |
Companhia Vale do Rio Doce: | |||
(PN-A) | 68,000 | 2,723,321 | |
sponsored: | |||
ADR | 77,300 | 3,536,475 | |
ADR (non-vtg.) | 113,900 | 4,601,560 | |
Embraer - Empresa Brasileira de Aeronautica SA sponsored ADR | 196,043 | 5,087,316 | |
Empresa Nacional de Comercio Redito e Participacoes SA (PN) (a) | 11,465,310 | 15,999 | |
Gerdau SA sponsored ADR | 190,710 | 2,776,738 | |
Petroleo Brasileiro SA Petrobras: | |||
(PN) | 306,570 | 6,737,802 | |
sponsored: | |||
ADR | 292,600 | 6,876,100 | |
ADR (non-vtg.) | 507,700 | 11,047,552 | |
Siderurgica Nacional Compania ADR | 81,000 | 3,341,250 | |
Tele Norte Leste Participacoes SA ADR | 496,100 | 7,029,737 | |
Telebras sponsored ADR | 202,100 | 6,960,324 | |
Uniao de Bancos Brasileiros SA (Unibanco) GDR | 220,300 | 4,870,833 | |
Usinas Siderurgicas de Minas Gerais SA (Usiminas) (PN-A) | 635,700 | 5,087,374 | |
Votorantim Celulose e Papel SA (PN) | 28,656,099 | 1,559,516 | |
TOTAL BRAZIL | 110,212,203 | ||
Shares | Value (Note 1) | ||
Chile - 2.4% | |||
Banco Santander Chile sponsored ADR | 73,728 | $ 1,751,777 | |
Enersis SA sponsored ADR | 400,000 | 2,768,000 | |
Vina Concha y Toro SA sponsored ADR | 14,900 | 718,925 | |
TOTAL CHILE | 5,238,702 | ||
Luxembourg - 1.1% | |||
Tenaris SA sponsored ADR | 88,069 | 2,395,477 | |
Mexico - 41.9% | |||
America Movil SA de CV sponsored ADR | 847,600 | 20,172,880 | |
Cemex SA de CV sponsored ADR | 471,073 | 11,305,752 | |
Consorcio ARA SA de CV (a) | 535,000 | 1,463,439 | |
Fomento Economico Mexicano SA de CV sponsored ADR | 141,700 | 5,061,524 | |
Grupo Bimbo SA de CV Series A | 451,000 | 701,969 | |
Grupo Financiero BBVA Bancomer SA Series B (a) | 6,725,600 | 5,707,162 | |
Grupo Modelo SA de CV Series C | 1,300,500 | 3,294,183 | |
Grupo Televisa SA de CV sponsored ADR | 294,600 | 11,415,750 | |
Industrias Penoles SA de CV | 206,100 | 584,528 | |
Telefonos de Mexico SA de CV sponsored ADR | 680,200 | 21,868,429 | |
TV Azteca SA de CV sponsored ADR | 220,000 | 1,779,800 | |
Wal-Mart de Mexico SA de CV Series C | 3,283,481 | 8,561,457 | |
TOTAL MEXICO | 91,916,873 | ||
United States of America - 1.7% | |||
NII Holdings, Inc. Class B (a) | 49,200 | 3,792,828 | |
Venezuela - 0.3% | |||
Compania Anonima Nacional Telefono de Venezuela sponsored ADR | 52,700 | 788,392 | |
TOTAL COMMON STOCKS (Cost $153,405,894) | 216,105,772 | ||
Money Market Funds - 4.5% | |||
Fidelity Cash Central Fund, 1.07% (b) | 3,373,637 | 3,373,637 | |
Fidelity Securities Lending Cash Central Fund, 1.09% (b) | 6,387,575 | 6,387,575 | |
TOTAL MONEY MARKET FUNDS (Cost $9,761,212) | 9,761,212 | ||
TOTAL INVESTMENT PORTFOLIO - 102.9% (Cost $163,167,106) | 225,866,984 | ||
NET OTHER ASSETS - (2.9)% | (6,348,285) | ||
NET ASSETS - 100% | $ 219,518,699 |
Legend |
(a) Non-income producing |
(b) The rate quoted is the annualized seven-day yield of the fund at period end. A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request. |
Other Information |
Purchases and sales of securities, other than short-term securities, aggregated $54,842,030 and $45,862,296, respectively. |
The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $1,066 for the period. |
Income Tax Information |
At October 31, 2003, the fund had a capital loss carryforward of approximately $98,738,000 of which $37,615,000, $22,657,000, $11,150,000, $7,286,000, $11,980,000 and $8,050,000 will expire on October 31, 2004, 2007, 2008, 2009, 2010 and 2011, respectively. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements
Statement of Assets and Liabilities
October 31, 2003 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $6,222,568) (cost $163,167,106) - See accompanying schedule | $ 225,866,984 | |
Foreign currency held at value (cost $19) | 19 | |
Receivable for investments sold | 13,236 | |
Receivable for fund shares sold | 123,827 | |
Dividends receivable | 433,608 | |
Interest receivable | 2,893 | |
Redemption fees receivable | 1,470 | |
Prepaid expenses | 1,002 | |
Other receivables | 5,117 | |
Total assets | 226,448,156 | |
Liabilities | ||
Payable to custodian bank | $ 43,511 | |
Payable for fund shares redeemed | 233,660 | |
Accrued management fee | 132,018 | |
Other payables and accrued expenses | 132,693 | |
Collateral on securities loaned, at value | 6,387,575 | |
Total liabilities | 6,929,457 | |
Net Assets | $ 219,518,699 | |
Net Assets consist of: | ||
Paid in capital | $ 255,260,265 | |
Undistributed net investment income | 2,476,408 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (100,930,336) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 62,712,362 | |
Net Assets, for 16,407,206 shares outstanding | $ 219,518,699 | |
Net Asset Value, offering price and redemption price per share ($219,518,699 ÷ 16,407,206 shares) | $ 13.38 |
Statement of Operations
Year ended October 31, 2003 | ||
Investment Income | ||
Dividends | $ 5,878,662 | |
Interest | 47,217 | |
Security lending | 39,499 | |
5,965,378 | ||
Less foreign taxes withheld | (470,751) | |
Total income | 5,494,627 | |
Expenses | ||
Management fee | $ 1,249,190 | |
Transfer agent fees | 677,162 | |
Accounting and security lending fees | 105,117 | |
Non-interested trustees' compensation | 824 | |
Custodian fees and expenses | 108,445 | |
Registration fees | 15,822 | |
Audit | 66,179 | |
Legal | 500 | |
Miscellaneous | 30,065 | |
Total expenses before reductions | 2,253,304 | |
Expense reductions | (826) | 2,252,478 |
Net investment income (loss) | 3,242,149 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities | (7,387,563) | |
Foreign currency transactions | (159,593) | |
Total net realized gain (loss) | (7,547,156) | |
Change in net unrealized appreciation (depreciation) on: Investment securities | 77,918,045 | |
Assets and liabilities in foreign currencies | 198,292 | |
Total change in net unrealized appreciation (depreciation) | 78,116,337 | |
Net gain (loss) | 70,569,181 | |
Net increase (decrease) in net assets resulting from operations | $ 73,811,330 | |
Other Information | ||
Sales charges paid to FDC | $ 12,296 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Latin America
Financial Statements - continued
Statement of Changes in Net Assets
Year ended | Year ended | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $ 3,242,149 | $ 2,935,437 |
Net realized gain (loss) | (7,547,156) | (13,524,865) |
Change in net unrealized appreciation (depreciation) | 78,116,337 | (7,635,344) |
Net increase (decrease) in net assets resulting from operations | 73,811,330 | (18,224,772) |
Distributions to shareholders from net investment income | (2,628,539) | (4,311,069) |
Share transactions | 47,805,000 | 20,347,096 |
Reinvestment of distributions | 2,504,746 | 4,134,096 |
Cost of shares redeemed | (42,599,039) | (46,144,032) |
Net increase (decrease) in net assets resulting from share transactions | 7,710,707 | (21,662,840) |
Redemption fees | 226,141 | 140,974 |
Total increase (decrease) in net assets | 79,119,639 | (44,057,707) |
Net Assets | ||
Beginning of period | 140,399,060 | 184,456,767 |
End of period (including undistributed net investment income of $2,476,408 and undistributed net investment income of $2,022,390, respectively) | $ 219,518,699 | $ 140,399,060 |
Other Information Shares | ||
Sold | 4,368,834 | 1,720,446 |
Issued in reinvestment of distributions | 277,688 | 359,487 |
Redeemed | (3,973,164) | (4,083,278) |
Net increase (decrease) | 673,358 | (2,003,345) |
Financial Highlights
See accompanying notes which are an integral part of the financial statements.
Annual Report
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity a fund's total returns will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended | Past 1 | Past 5 | Life of |
Fidelity Nordic | 27.87% | 4.52% | 10.55% |
A From November 1, 1995
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity Nordic Fund on November 1, 1995, when the fund started. The chart shows how the value of your investment would have grown, and also shows how the FTSE World Nordic Index did over the same period.
Annual Report
Management's Discussion of Fund Performance
Comments from Trygve Toraasen, Portfolio Manager of Fidelity Nordic Fund
Mirroring the U.S. rally, most international stock markets rebounded sharply during the 12-month period ending October 31, 2003. Encouraged by improved corporate earnings, favorable interest rates and the easing of geopolitical tensions, the Morgan Stanley Capital International Europe, Australasia, Far East (MSCI EAFE) Index - a proxy for stock markets outside the United States and Canada - gained 27.39% during the past year. From a regional perspective, all 16 countries in the MSCI Europe index - which gained 24.56% - had double-digit advances. Spain, Denmark and Sweden were among the region's best performers. In Japan, increased capital spending, exports and machinery orders helped the Tokyo Stock Exchange Stock Price Index (TOPIX) advance 36.39%. Following the SARS epidemic, other Asian markets also rebounded. For instance, the Hong Kong market, as measured by the Hang Seng Index, gained 34.51%. Emerging markets also fared well, particularly Latin America. The MSCI Emerging Markets Free-Latin America index rose 59.75%. Canadian equities, as measured by the S&P/TSX Composite Index, also posted an impressive annual gain, advancing 50.66%.
For the 12 months ending October 31, 2003, Fidelity Nordic Fund returned 27.87%. In comparison, the Financial Times-Stock Exchange (FTSE) World Nordic Index rose 35.56%, while the Lipper European Funds Average returned 23.64%. After a weak start, Nordic markets rallied in the final six months of the period, as investors became more willing to accept risk in highly cyclical stocks, including those in the basic materials, technology and telecommunications equipment areas. Beginning in March, I increased the fund's weightings in cyclicals, including basic materials and industrial component producers, but I also continued to emphasize stable-growth and small- and mid-cap stocks because of their long-term prospects. However, both these areas underperformed the index. Another factor hurting relative performance was the strong gain by Nokia, which was more than 25% of the index on average during the period. I kept the fund more diversified and maintained a weighting in Nokia of about 10% of fund assets. Contributors to performance included Q-Med, a biotechnology firm, Elekta, a medical equipment company, and financial firms Skandia Foersaekrings and Storebrand. I sold Q-Med before the end of the period. Disappointments included Tandberg, which lowered earnings estimates from its video conferencing equipment business, and industrial companies Munters and Volvo AB, both of which lagged in the early-cyclical rally.
The views expressed in this statement reflect those of the portfolio manager only through the end of the period of the report as stated on the cover and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Investment Changes
Geographic Diversification (% of fund's net assets) | |||
As of October 31, 2003 | |||
Sweden | 43.3% | ||
Finland | 21.7% | ||
Norway | 17.1% | ||
Denmark | 11.5% | ||
Switzerland | 4.3% | ||
United States of America | 1.4% | ||
Bermuda | 0.5% | ||
Cayman Islands | 0.2% |
Percentages are adjusted for the effect of futures contracts, if applicable. |
As of April 30, 2003 | |||
Sweden | 43.3% | ||
Norway | 18.3% | ||
Finland | 14.7% | ||
Denmark | 10.9% | ||
United Kingdom | 4.7% | ||
Switzerland | 4.1% | ||
United States of America | 3.8% | ||
Cayman Islands | 0.2% |
Percentages are adjusted for the effect of futures contracts, if applicable. |
Asset Allocation | ||
% of fund's | % of fund's net assets | |
Stocks | 99.1 | 96.2 |
Short-Term Investments and | 0.9 | 3.8 |
Top Ten Stocks as of October 31, 2003 | ||
% of fund's | % of fund's net assets | |
Nokia Corp. (Finland, Communications Equipment) | 10.1 | 9.2 |
Telefonaktiebolaget LM Ericsson | 7.4 | 4.3 |
Nobel Biocare Holding AG (Switzerland) (Switzerland, Health Care Equipment & Supplies) | 4.3 | 4.1 |
Storebrand ASA (A Shares) (Norway, Insurance) | 3.1 | 3.2 |
Svenska Handelsbanken AB | 3.0 | 4.9 |
Nordea AB (Sweden, Commercial Banks) | 3.0 | 4.1 |
UPM-Kymmene Corp. (Finland, Paper & Forest Products) | 2.9 | 1.5 |
Danske Bank AS (Denmark, Commercial Banks) | 2.6 | 2.1 |
Volvo AB (B Shares) (Sweden, Machinery) | 2.5 | 0.0 |
Coloplast AS Series B (Denmark, Health Care Equipment & Supplies) | 2.5 | 3.3 |
41.4 | ||
Market Sectors as of October 31, 2003 | ||
% of fund's | % of fund's net assets | |
Information Technology | 23.8 | 16.6 |
Industrials | 19.1 | 12.6 |
Financials | 15.7 | 25.6 |
Health Care | 12.2 | 20.0 |
Materials | 8.7 | 2.8 |
Telecommunication Services | 5.6 | 4.9 |
Energy | 5.3 | 1.0 |
Consumer Discretionary | 4.2 | 7.0 |
Consumer Staples | 3.4 | 5.7 |
Utilities | 1.1 | 0.0 |
Annual Report
Investments October 31, 2003
Showing Percentage of Net Assets
Common Stocks - 99.1% | |||
Shares | Value (Note 1) | ||
Bermuda - 0.5% | |||
Golar LNG Ltd. (a) | 37,800 | $ 438,620 | |
Cayman Islands - 0.2% | |||
DSND, Inc. (a) | 94,700 | 193,135 | |
Denmark - 11.5% | |||
A.P. Moller - Maersk AS: | |||
Series A | 108 | 817,940 | |
Series B | 156 | 1,220,364 | |
Carlsberg AS Series B | 8,600 | 355,815 | |
Coloplast AS Series B | 23,900 | 2,003,740 | |
Danske Bank AS | 104,020 | 2,091,066 | |
Group 4 Falck AS | 33,065 | 739,404 | |
Novo Nordisk AS Series B | 52,295 | 1,874,344 | |
Topdanmark AS (a) | 4,500 | 222,998 | |
TOTAL DENMARK | 9,325,671 | ||
Finland - 21.7% | |||
Elcoteq Network Corp. (A Shares) | 12,000 | 202,821 | |
Finnair Oyj | 66,700 | 363,162 | |
Fortum Oyj | 93,600 | 859,857 | |
M-real Oyj (B Shares) | 47,500 | 417,650 | |
Nokia Corp. | 482,895 | 8,204,388 | |
Nokian Tyres Ltd. | 3,350 | 249,381 | |
Stora Enso Oyj (R Shares) | 145,100 | 1,966,666 | |
TietoEnator Oyj | 64,100 | 1,693,052 | |
UPM-Kymmene Corp. | 128,000 | 2,387,334 | |
Vacon Oyj | 108,900 | 1,284,260 | |
TOTAL FINLAND | 17,628,571 | ||
Norway - 17.1% | |||
DnB Holding ASA | 82,395 | 478,623 | |
Ekornes AS | 25,300 | 419,899 | |
Frontline Ltd. | 39,500 | 766,688 | |
Norman ASA | 62,000 | 521,041 | |
Norsk Hydro AS | 34,400 | 1,925,680 | |
Norske Skogindustrier AS (A Shares) | 46,600 | 881,558 | |
Orkla ASA (A Shares) | 61,285 | 1,277,884 | |
Schibsted AS (B Shares) | 49,000 | 858,041 | |
Statoil ASA | 80,600 | 753,875 | |
Storebrand ASA (A Shares) (a) | 449,200 | 2,489,308 | |
Tandberg ASA (a) | 108,700 | 761,380 | |
TANDBERG Television ASA (a) | 34,700 | 129,824 | |
Telenor ASA | 356,300 | 1,929,386 | |
Shares | Value (Note 1) | ||
TGS Nopec Geophysical Co. ASA (a) | 29,100 | $ 325,389 | |
VISMA ASA | 45,900 | 419,632 | |
TOTAL NORWAY | 13,938,208 | ||
Sweden - 43.3% | |||
Assa Abloy AB (B Shares) | 27,502 | 270,357 | |
Atlas Copco AB (A Shares) | 48,900 | 1,710,576 | |
Axfood AB | 22,200 | 442,141 | |
Concordia Maritime AB (B Shares) (a) | 11,400 | 19,794 | |
D. Carnegie & Co. AB | 15,700 | 162,356 | |
Elekta AB (B Shares) (a) | 39,300 | 777,691 | |
Getinge AB (B Shares) | 21,790 | 794,230 | |
Hennes & Mauritz AB (H&M) (B Shares) | 38,040 | 803,751 | |
Hexagon AB (B Shares) | 37,700 | 890,422 | |
Intrum Justitia AB | 98,100 | 420,815 | |
Karo Bio AB (a) | 29,350 | 162,997 | |
Kinnevik Industrifoervaltng AB (B Shares) | 23,000 | 660,683 | |
Modern Times Group AB (MTG) | 40,800 | 763,099 | |
Munters AB | 39,080 | 785,811 | |
Nordea AB | 391,700 | 2,420,371 | |
Observer AB | 188,083 | 746,780 | |
OMHEX AB | 106,500 | 1,087,734 | |
ORC Software AB | 50,300 | 577,954 | |
POOLiA AB (B Shares) | 26,900 | 84,483 | |
Proffice AB (B Shares) | 33,900 | 98,245 | |
Readsoft AB (B Shares) (a) | 388,556 | 505,984 | |
Sandvik AB | 42,200 | 1,249,923 | |
SAS AB (a) | 57,400 | 501,979 | |
Sectra AB (B Shares) | 96,700 | 716,040 | |
Securitas AB (B Shares) | 69,225 | 848,432 | |
Skandia Foersaekrings AB | 354,200 | 1,293,295 | |
SKF AB (B Shares) | 46,600 | 1,642,018 | |
Svenska Cellulosa AB (SCA) (B Shares) | 21,000 | 789,564 | |
Svenska Handelsbanken AB (A Shares) | 138,616 | 2,433,319 | |
Swedish Match Co. | 78,500 | 636,394 | |
Tele2 AB (B Shares) (a) | 33,500 | 1,678,678 | |
Teleca AB (B Shares) | 63,700 | 315,540 | |
Telefonaktiebolaget LM Ericsson | 3,516,000 | 6,005,327 | |
TeliaSonera AB | 202,905 | 883,344 | |
Volvo AB (B Shares) | 73,500 | 2,045,629 | |
TOTAL SWEDEN | 35,225,756 | ||
Switzerland - 4.3% | |||
Nobel Biocare Holding AG (Switzerland) | 39,260 | 3,470,319 | |
United States of America - 0.5% | |||
Royal Caribbean Cruises Ltd. | 12,800 | 380,770 | |
TOTAL COMMON STOCKS (Cost $64,471,251) | 80,601,050 | ||
Money Market Funds - 2.9% | |||
Shares | Value (Note 1) | ||
Fidelity Cash Central Fund, 1.07% (b) | 321,769 | $ 321,769 | |
Fidelity Securities Lending Cash Central Fund, 1.09% (b) | 2,056,500 | 2,056,500 | |
TOTAL MONEY MARKET FUNDS (Cost $2,378,269) | 2,378,269 | ||
TOTAL INVESTMENT PORTFOLIO - 102.0% (Cost $66,849,520) | 82,979,319 | ||
NET OTHER ASSETS - (2.0)% | (1,642,024) | ||
NET ASSETS - 100% | $ 81,337,295 |
Legend |
(a) Non-income producing |
(b) The rate quoted is the annualized seven-day yield of the fund at period end. A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request. |
Other Information |
Purchases and sales of securities, other than short-term securities, aggregated $68,267,456 and $79,680,178, respectively. |
Income Tax Information |
At October 31, 2003, the fund had a capital loss carryforward of approximately $24,829,000 of which $16,400,000, $6,501,000 and $1,928,000 will expire on October 31, 2009, 2010 and 2011, respectively. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements
Statement of Assets and Liabilities
October 31, 2003 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $1,915,800) (cost $66,849,520) - See accompanying schedule | $ 82,979,319 | |
Receivable for investments sold | 472,393 | |
Receivable for fund shares sold | 82,617 | |
Dividends receivable | 21,387 | |
Interest receivable | 234 | |
Redemption fees receivable | 6 | |
Prepaid expenses | 389 | |
Other receivables | 3,773 | |
Total assets | 83,560,118 | |
Liabilities | ||
Payable for fund shares redeemed | $ 56,338 | |
Accrued management fee | 48,842 | |
Other payables and accrued expenses | 61,143 | |
Collateral on securities loaned, at value | 2,056,500 | |
Total liabilities | 2,222,823 | |
Net Assets | $ 81,337,295 | |
Net Assets consist of: | ||
Paid in capital | $ 90,794,637 | |
Undistributed net investment income | 607,884 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (26,197,275) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 16,132,049 | |
Net Assets, for 4,172,944 shares outstanding | $ 81,337,295 | |
Net Asset Value, offering price and redemption price per share ($81,337,295 ÷ 4,172,944 shares) | $ 19.49 |
Statement of Operations
Year ended October 31, 2003 | ||
Investment Income | ||
Dividends | $ 1,603,575 | |
Interest | 24,073 | |
Security lending | 122,780 | |
1,750,428 | ||
Less foreign taxes withheld | (236,986) | |
Total income | 1,513,442 | |
Expenses | ||
Management fee | $ 538,726 | |
Transfer agent fees | 292,091 | |
Accounting and security lending fees | 61,869 | |
Non-interested trustees' compensation | 298 | |
Custodian fees and expenses | 85,782 | |
Registration fees | 15,406 | |
Audit | 48,785 | |
Legal | 250 | |
Miscellaneous | 895 | |
Total expenses before reductions | 1,044,102 | |
Expense reductions | (20,191) | 1,023,911 |
Net investment income (loss) | 489,531 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities | 4,001,380 | |
Foreign currency transactions | 44,696 | |
Total net realized gain (loss) | 4,046,076 | |
Change in net unrealized appreciation (depreciation) on: Investment securities | 13,721,366 | |
Assets and liabilities in foreign currencies | 2,035 | |
Total change in net unrealized appreciation (depreciation) | 13,723,401 | |
Net gain (loss) | 17,769,477 | |
Net increase (decrease) in net assets resulting from operations | $ 18,259,008 | |
Other Information | ||
Sales charges paid to FDC | $ 1,690 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Nordic
Financial Statements - continued
Statement of Changes in Net Assets
Year ended | Year ended | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $ 489,531 | $ 530,752 |
Net realized gain (loss) | 4,046,076 | (8,835,690) |
Change in net unrealized appreciation (depreciation) | 13,723,401 | (530,663) |
Net increase (decrease) in net assets resulting from operations | 18,259,008 | (8,835,601) |
Distributions to shareholders from net investment income | (575,077) | (333,684) |
Share transactions | 5,971,305 | 8,004,565 |
Reinvestment of distributions | 556,144 | 321,742 |
Cost of shares redeemed | (16,879,816) | (23,609,374) |
Net increase (decrease) in net assets resulting from share transactions | (10,352,367) | (15,283,067) |
Redemption fees | 13,366 | 10,552 |
Total increase (decrease) in net assets | 7,344,930 | (24,441,800) |
Net Assets | ||
Beginning of period | 73,992,365 | 98,434,165 |
End of period (including undistributed net investment income of $607,884 and undistributed net investment income of $521,852, respectively) | $ 81,337,295 | $ 73,992,365 |
Other Information Shares | ||
Sold | 368,565 | 442,868 |
Issued in reinvestment of distributions | 35,973 | 17,591 |
Redeemed | (1,047,699) | (1,330,791) |
Net increase (decrease) | (643,161) | (870,332) |
Financial Highlights
See accompanying notes which are an integral part of the financial statements.
Annual Report
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity a fund's total returns will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended | Past 1 | Past 5 | Past 10 |
Fidelity Pacific Basin | 34.01% | 9.31% | 2.32% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Pacific Basin Fund on October 31, 1993. The chart shows how the value of your investment would have grown, and also shows how the MSCI All Country Pacific Free Index did over the same period.
Annual Report
Management's Discussion of Fund Performance
Comments from William Kennedy, Portfolio Manager of Fidelity Pacific Basin Fund
Mirroring the U.S. rally, most international stock markets rebounded sharply during the 12-month period ending October 31, 2003. Encouraged by improved corporate earnings, favorable interest rates and the easing of geopolitical tensions, the Morgan Stanley Capital International Europe, Australasia, Far East (MSCI EAFE) Index - a proxy for stock markets outside the United States and Canada - gained 27.39% during the past year. From a regional perspective, all 16 countries in the MSCI Europe index - which gained 24.56% - had double-digit advances. Spain, Denmark and Sweden were among the region's best performers. In Japan, increased capital spending, exports and machinery orders helped the Tokyo Stock Exchange Stock Price Index (TOPIX) advance 36.39%. Following the SARS epidemic, other Asian markets also rebounded. For instance, the Hong Kong market, as measured by the Hang Seng Index, gained 34.51%. Emerging markets also fared well, particularly Latin America. The MSCI Emerging Markets Free-Latin America index rose 59.75%. Canadian equities, as measured by the S&P/TSX Composite Index, also posted an impressive annual gain, advancing 50.66%.
For the 12 months ending October 31, 2003, the fund returned 34.01%, just shy of the 34.93% gain recorded by the Morgan Stanley Capital International All-Country (MSCI AC) Pacific Free Index. However, the fund edged the 32.34% return posted by the Lipper Pacific Region Funds Average. Stock selection in diversified financials and semiconductors helped versus the index. Conversely, underweighting materials and capital goods stocks hurt performance compared with the index. The largest contributor to absolute performance was Korea-based Samsung Electronics, which benefited from a global pickup in demand for its DRAM computer memory, cellular handsets and flat-screen monitors. Versus the index, our largest contributor was Japanese camera maker Minolta, which investors found appealing for its restructuring initiatives and the company's recent merger with Konica. On an absolute basis, Japan-based electronics retailer Sony was our largest detractor but the fund's large underweighting actually helped performance versus the index. However, underweighting technology stock Softbank - a Japanese company that holds stakes in a number of technology firms and was one of the best-performing stocks in the index - hurt performance compared with the benchmark. Despite its rich valuation, the stock turned in a spectacular gain of more than 500% during the period.
The views expressed in this statement reflect those of the portfolio manager only through the end of the period of the report as stated on the cover and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Investment Changes
Geographic Diversification (% of fund's net assets) | |||
As of October 31, 2003 | |||
Japan | 54.4% | ||
Australia | 12.0% | ||
Hong Kong | 7.1% | ||
Korea (South) | 6.6% | ||
Taiwan | 5.6% | ||
United States of America | 4.8% | ||
China | 2.1% | ||
India | 2.1% | ||
Thailand | 1.9% | ||
Other | 3.4% |
Percentages are adjusted for the effect of futures contracts, if applicable. |
As of April 30, 2003 | |||
Japan | 56.9% | ||
Australia | 16.5% | ||
Korea (South) | 7.2% | ||
United States of America | 5.6% | ||
Taiwan | 3.8% | ||
Hong Kong | 3.3% | ||
Singapore | 2.4% | ||
China | 2.2% | ||
Malaysia | 1.0% | ||
Other | 1.1% |
Percentages are adjusted for the effect of futures contracts, if applicable. |
Asset Allocation | ||
% of fund's | % of fund's net assets | |
Stocks | 95.4 | 94.7 |
Short-Term Investments and | 4.6 | 5.3 |
Top Ten Stocks as of October 31, 2003 | ||
% of fund's | % of fund's net assets | |
Samsung Electronics Co. Ltd. (Korea (South), Semiconductors & Semiconductor Equipment) | 2.7 | 2.9 |
Toyota Motor Corp. (Japan, Automobiles) | 2.5 | 3.0 |
Canon, Inc. (Japan, Office Electronics) | 2.1 | 3.1 |
Nomura Holdings, Inc. (Japan, Capital Markets) | 2.0 | 2.0 |
News Corp. Ltd. (Australia, Media) | 1.8 | 1.7 |
Sumitomo Mitsui Financial Group, Inc. (Japan, Commercial Banks) | 1.7 | 0.5 |
BHP Billiton Ltd. (Australia, Metals & Mining) | 1.6 | 2.0 |
Australia & New Zealand Banking Group Ltd. (Australia, Commercial Banks) | 1.5 | 2.2 |
Ito Yokado Ltd. (Japan, Food & Staples Retailing) | 1.4 | 0.6 |
Tokyo Electron Ltd. (Japan, Semiconductors & Semiconductor Equipment) | 1.2 | 1.4 |
18.5 | ||
Market Sectors as of October 31, 2003 | ||
% of fund's | % of fund's net assets | |
Financials | 27.7 | 22.6 |
Information Technology | 21.3 | 19.9 |
Consumer Discretionary | 21.0 | 20.5 |
Materials | 6.6 | 5.4 |
Industrials | 5.0 | 5.9 |
Telecommunication Services | 4.8 | 5.5 |
Consumer Staples | 3.9 | 6.0 |
Health Care | 3.1 | 4.4 |
Energy | 1.2 | 1.6 |
Utilities | 0.8 | 2.9 |
Annual Report
Investments October 31, 2003
Showing Percentage of Net Assets
Common Stocks - 95.0% | |||
Shares | Value (Note 1) | ||
Australia - 12.0% | |||
Alumina Ltd. | 250,000 | $ 1,054,548 | |
Australia & New Zealand Banking Group Ltd. | 510,931 | 6,436,683 | |
Australia & New Zealand Banking Group Ltd. rights 11/24/03 (a) | 92,896 | 283,370 | |
BHP Billiton Ltd. | 809,829 | 6,717,394 | |
Billabong International Ltd. | 588,367 | 3,048,171 | |
Commonwealth Bank of Australia | 58,445 | 1,137,522 | |
CSL Ltd. | 207,618 | 2,498,008 | |
Harvey Norman Holdings Ltd. | 983,531 | 2,338,876 | |
Macquarie Bank Ltd. | 84,798 | 2,090,950 | |
News Corp. Ltd. | 825,477 | 7,357,062 | |
Promina Group Ltd. | 1,347,991 | 3,167,415 | |
Publishing & Broadcasting Ltd. | 388,557 | 3,313,765 | |
QBE Insurance Group Ltd. | 453,733 | 3,307,634 | |
Rinker Group Ltd. | 287,745 | 1,293,187 | |
Rio Tinto Ltd. | 79,932 | 2,016,787 | |
Telstra Corp. Ltd. | 303,602 | 1,018,504 | |
Westfield Holdings Ltd. | 137,362 | 1,381,467 | |
Westpac Banking Corp. | 144,916 | 1,656,413 | |
TOTAL AUSTRALIA | 50,117,756 | ||
Bermuda - 0.1% | |||
Clear Media Ltd. (a) | 444,000 | 291,594 | |
China - 2.1% | |||
China Oilfield Services Ltd. (H Shares) | 3,686,000 | 1,067,979 | |
China Petroleum & Chemical Corp. | 9,040,000 | 2,997,579 | |
China Telecom Corp. Ltd. (H Shares) | 8,712,000 | 2,888,817 | |
Lianhua Supermarket Holdings Co. | 1,021,000 | 999,227 | |
PetroChina Co. Ltd. (H Shares) | 2,266,000 | 824,334 | |
PICC Property & Casualty Co. Ltd. | 126,000 | 29,501 | |
TOTAL CHINA | 8,807,437 | ||
Hong Kong - 7.1% | |||
ASM Pacific Technology Ltd. | 506,000 | 1,892,874 | |
BOC Hong Kong Holdings Ltd. | 705,500 | 1,221,924 | |
Cheung Kong Holdings Ltd. | 215,000 | 1,792,682 | |
Denway Motors Ltd. | 4,250,000 | 3,502,627 | |
Esprit Holdings Ltd. | 1,098,500 | 3,451,556 | |
Hong Kong Exchanges & Clearing Ltd. | 1,648,000 | 3,586,484 | |
Hutchison Whampoa Ltd. | 194,700 | 1,510,595 | |
Kingboard Chemical Holdings Ltd. | 1,786,000 | 2,391,882 | |
Li & Fung Ltd. | 1,010,000 | 1,697,293 | |
Sun Hung Kai Properties Ltd. | 374,000 | 3,166,594 | |
Techtronic Industries Co. | 1,070,000 | 2,948,645 | |
Wing Hang Bank Ltd. | 427,000 | 2,633,834 | |
TOTAL HONG KONG | 29,796,990 | ||
India - 2.1% | |||
Bank of Baroda | 519,500 | 2,190,566 | |
Shares | Value (Note 1) | ||
Housing Development Finance Corp. Ltd. | 242,149 | $ 2,777,874 | |
Infosys Technologies Ltd. | 35,905 | 3,756,438 | |
State Bank of India | 3,300 | 35,257 | |
TOTAL INDIA | 8,760,135 | ||
Indonesia - 0.5% | |||
PT Bank Rakyat Indonesia (a)(c) | 2,452,500 | 252,568 | |
PT Telkomunikasi Indonesia Tbk | 2,829,500 | 1,998,125 | |
TOTAL INDONESIA | 2,250,693 | ||
Japan - 54.4% | |||
Aeon Credit Service Ltd. | 81,100 | 3,754,766 | |
Bank of Yokohama Ltd. | 444,000 | 1,918,319 | |
Canon, Inc. | 181,000 | 8,859,950 | |
Citizen Electronics Co. Ltd. | 13,200 | 1,236,674 | |
Daito Trust Construction Co. | 134,900 | 4,171,912 | |
Don Quijote Co. Ltd. | 42,500 | 2,284,655 | |
East Japan Railway Co. | 421 | 1,907,022 | |
FamilyMart Co. Ltd. | 104,300 | 2,267,391 | |
Fast Retailing Co. Ltd. | 54,600 | 3,317,518 | |
Fuji Seal, Inc. | 28,300 | 988,466 | |
Fuji Television Network, Inc. | 329 | 1,750,637 | |
Fujisawa Pharmaceutical Co. Ltd. | 67,000 | 1,383,391 | |
Hankyu Department Stores, Inc. | 141,000 | 1,032,427 | |
Hitachi Chemical Co. Ltd. | 165,300 | 2,670,300 | |
Hitachi Information Systems Co. Ltd. | 29,700 | 856,367 | |
Honda Motor Co. Ltd. | 57,100 | 2,289,710 | |
Hoya Corp. | 40,400 | 3,656,358 | |
Ito Yokado Ltd. | 158,000 | 5,806,076 | |
JAFCO Co. Ltd. | 31,800 | 2,718,937 | |
Japan Retail Fund Investment Corp. | 159 | 929,934 | |
Japan Tobacco, Inc. | 255 | 1,702,474 | |
JSR Corp. | 113,000 | 2,394,852 | |
KDDI Corp. | 717 | 3,893,478 | |
Keyence Corp. | 8,000 | 1,759,505 | |
KOMERI Co. Ltd. | 39,000 | 890,395 | |
Konica Minolta Holdings, Inc. | 304,000 | 3,995,634 | |
Kyorin Pharmaceutical Co. Ltd. | 72,000 | 1,083,864 | |
Matsushita Electric Industrial Co. Ltd. | 243,000 | 3,188,160 | |
Meitec Corp. | 56,300 | 2,012,543 | |
Millea Holdings, Inc. | 419 | 4,992,632 | |
Mitsubishi Estate Co. Ltd. | 286,000 | 2,741,895 | |
Mitsubishi Securities Co. Ltd. | 310,000 | 3,524,650 | |
Mitsubishi Tokyo Financial Group, Inc. (MTFG) | 671 | 4,925,140 | |
Mitsui & Co. Ltd. | 275,000 | 2,001,091 | |
Mizuho Financial Group, Inc. (a) | 1,183 | 2,894,551 | |
Murata Manufacturing Co. Ltd. | 31,000 | 1,762,325 | |
Nichicon Corp. | 97,600 | 1,134,553 | |
Nidec Corp. | 21,300 | 2,063,353 | |
Nikko Cordial Corp. | 728,000 | 3,926,723 | |
Nikon Corp. (a) | 225,000 | 3,415,727 | |
Nippon Steel Corp. | 969,000 | 1,991,941 | |
Nippon Telegraph & Telephone Corp. | 924 | 4,154,304 | |
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
Japan - continued | |||
Nishimatsuya Chain Co. Ltd. | 42,900 | $ 1,287,702 | |
Nissan Motor Co. Ltd. | 367,400 | 4,153,457 | |
Nitori Co. Ltd. | 15,000 | 956,431 | |
Nitto Denko Corp. | 47,100 | 2,471,957 | |
NOK Corp. | 59,000 | 2,323,722 | |
Nomura Holdings, Inc. | 492,000 | 8,449,117 | |
Nomura Research Institute Ltd. | 15,200 | 1,527,742 | |
NTT DoCoMo, Inc. | 2,186 | 4,732,290 | |
ORIX Corp. | 25,700 | 2,162,316 | |
Pal Co. Ltd. | 23,500 | 1,058,077 | |
Ricoh Co. Ltd. | 112,000 | 2,124,068 | |
Rohm Co. Ltd. | 10,800 | 1,455,849 | |
Sanken Electric Co. Ltd. | 189,000 | 2,095,607 | |
Seiyu Ltd. (a) | 438,000 | 1,414,317 | |
Senshukai Co. Ltd. | 166,000 | 2,033,855 | |
SFCG Co. Ltd. | 12,920 | 1,882,649 | |
Sharp Corp. | 161,000 | 2,534,937 | |
Shin-Etsu Chemical Co. Ltd. | 106,600 | 3,965,745 | |
SMC Corp. | 13,800 | 1,660,669 | |
Softbank Corp. | 33,500 | 1,721,621 | |
Sony Corp. sponsored ADR | 100,000 | 3,520,000 | |
Sumisho Lease Co. Ltd. | 106,700 | 3,280,389 | |
Sumitomo Electric Industries Ltd. | 193,000 | 1,658,950 | |
Sumitomo Mitsui Financial Group, Inc. | 1,395 | 7,016,872 | |
Takeda Chemical Industries Ltd. | 132,200 | 4,677,624 | |
TDK Corp. | 38,100 | 2,495,179 | |
THK Co. Ltd. | 133,400 | 2,705,858 | |
Tokyo Electric Power Co. | 152,600 | 3,254,930 | |
Tokyo Electron Ltd. | 69,800 | 5,002,947 | |
Toyota Motor Corp. | 363,600 | 10,548,035 | |
UFJ Holdings, Inc. (a) | 991 | 4,236,583 | |
UMC Japan (a) | 2,161 | 2,948,426 | |
Uni-Charm Corp. | 54,200 | 2,529,070 | |
USS Co. Ltd. | 45,440 | 3,228,001 | |
Yamada Denki Co. Ltd. | 85,600 | 2,725,123 | |
Yamanouchi Pharmaceutical Co. Ltd. | 107,100 | 2,688,703 | |
Yamato Transport Co. Ltd. | 107,000 | 1,421,930 | |
TOTAL JAPAN | 228,201,348 | ||
Korea (South) - 6.2% | |||
Amorepacific Corp. | 13,970 | 1,918,144 | |
Dae Duck Electronics Co. Ltd. | 100,000 | 920,997 | |
Daewoo Ship & Mar Engr Co. Ltd. (a) | 103,870 | 1,395,464 | |
Halla Climate Control Co. | 19,500 | 1,385,677 | |
Hyundai Department Store Co. Ltd. | 51,100 | 1,293,151 | |
Kookmin Bank | 51,900 | 1,894,448 | |
LG Card Co. Ltd. | 31,020 | 315,835 | |
Samsung Electronics Co. Ltd. | 28,420 | 11,286,350 | |
Samsung Fire & Marine Insurance Co. Ltd. | 30,610 | 1,748,403 | |
Shares | Value (Note 1) | ||
Shinhan Financial Group Co. Ltd. | 110,670 | $ 1,589,682 | |
Shinsegae Co. Ltd. | 9,960 | 1,998,732 | |
TOTAL KOREA (SOUTH) | 25,746,883 | ||
Malaysia - 0.9% | |||
Gamuda BHD | 713,500 | 1,427,000 | |
Public Bank BHD (For. Reg.) | 3,121,012 | 2,463,957 | |
TOTAL MALAYSIA | 3,890,957 | ||
Singapore - 1.4% | |||
CapitaLand Ltd. | 1,012,000 | 948,295 | |
Datacraft Asia Ltd. (a) | 719,000 | 898,750 | |
DBS Group Holdings Ltd. | 180,000 | 1,479,736 | |
United Overseas Bank Ltd. | 141,675 | 1,107,663 | |
Venture Corp. Ltd. | 112,000 | 1,216,901 | |
TOTAL SINGAPORE | 5,651,345 | ||
Taiwan - 5.6% | |||
Chinatrust Financial Holding Co. | 2,209,770 | 2,298,994 | |
Fubon Financial Holding Co. Ltd. | 3,332,016 | 3,515,655 | |
High Tech Computer Corp. | 204,000 | 757,560 | |
Hon Hai Precision Industries Co. Ltd. | 764,000 | 3,422,576 | |
Merry Electronics Co. Ltd. | 866,000 | 1,403,772 | |
Optimax Technology Corp. | 204,000 | 571,176 | |
Quanta Computer, Inc. | 505,000 | 1,376,731 | |
Siliconware Precision Industries Co. Ltd. (a) | 1,350,000 | 1,293,103 | |
Taiwan Semiconductor Manufacturing Co. Ltd. (a) | 2,343,000 | 4,626,614 | |
United Microelectronics Corp. (a) | 4,742,788 | 4,347,206 | |
TOTAL TAIWAN | 23,613,387 | ||
Thailand - 1.9% | |||
Advanced Info Service PCL (For. Reg.) | 1,045,500 | 1,622,553 | |
Bangkok Bank Ltd. PCL (For. Reg.) (a) | 775,500 | 1,815,000 | |
Land & House PCL (For. Reg.) | 5,508,800 | 1,861,547 | |
Siam Cement PCL (For. Reg.) | 359,200 | 2,032,020 | |
TelecomAsia Corp. PCL (a) | 1 | 0 | |
TelecomAsia Corp. PCL rights 4/30/08 (a) | 206,113 | 0 | |
Thai Olefins PCL (a) | 615,300 | 462,053 | |
TOTAL THAILAND | 7,793,173 | ||
United Kingdom - 0.5% | |||
Astro All Asia Networks PLC (a) | 180,800 | 224,573 | |
HSBC Holdings PLC (Hong Kong) (Reg.) | 136,000 | 2,041,904 | |
TOTAL UNITED KINGDOM | 2,266,477 | ||
United States of America - 0.2% | |||
ResMed, Inc. Chess Depositary Interests (a) | 220,638 | 936,939 | |
TOTAL COMMON STOCKS (Cost $340,523,345) | 398,125,114 | ||
Nonconvertible Preferred Stocks - 0.4% | |||
Shares | Value (Note 1) | ||
Korea (South) - 0.4% | |||
Samsung Electronics Co. Ltd. | 7,400 | $ 1,469,370 | |
Money Market Funds - 9.5% | |||
Fidelity Cash Central Fund, 1.07% (b) | 22,562,420 | 22,562,420 | |
Fidelity Securities Lending Cash Central Fund, 1.09% (b) | 17,431,385 | 17,431,385 | |
TOTAL MONEY MARKET FUNDS (Cost $39,993,805) | 39,993,805 | ||
TOTAL INVESTMENT PORTFOLIO - 104.9% (Cost $381,754,586) | 439,588,289 | ||
NET OTHER ASSETS - (4.9)% | (20,337,657) | ||
NET ASSETS - 100% | $ 419,250,632 |
Legend |
(a) Non-income producing |
(b) The rate quoted is the annualized seven-day yield of the fund at period end. A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request. |
(c) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
Other Information |
Purchases and sales of securities, other than short-term securities, aggregated $298,179,747 and $288,818,338, respectively. |
Income Tax Information |
At October 31, 2003, the fund had a capital loss carryforward of approximately $78,136,000 of which $47,641,000 and $30,495,000 will expire on October 31, 2009 and 2010, respectively. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements
Statement of Assets and Liabilities
October 31, 2003 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $16,568,664) (cost $381,754,586) - See accompanying schedule | $ 439,588,289 | |
Foreign currency held at value (cost $3,479,458) | 3,475,047 | |
Receivable for investments sold | 4,494,437 | |
Receivable for fund shares sold | 910,943 | |
Dividends receivable | 676,811 | |
Interest receivable | 14,393 | |
Redemption fees receivable | 376 | |
Prepaid expenses | 1,681 | |
Other receivables | 23,294 | |
Total assets | 449,185,271 | |
Liabilities | ||
Payable for investments purchased | $ 11,436,820 | |
Delayed delivery | 255,094 | |
Payable for fund shares redeemed | 375,267 | |
Accrued management fee | 248,433 | |
Other payables and accrued expenses | 187,640 | |
Collateral on securities loaned, at value | 17,431,385 | |
Total liabilities | 29,934,639 | |
Net Assets | $ 419,250,632 | |
Net Assets consist of: | ||
Paid in capital | $ 439,598,277 | |
Undistributed net investment income | 1,925,015 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (80,108,902) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 57,836,242 | |
Net Assets, for 24,575,271 shares outstanding | $ 419,250,632 | |
Net Asset Value, offering price and redemption price per share ($419,250,632 ÷ 24,575,271 shares) | $ 17.06 |
Statement of Operations
Year ended October 31, 2003 | ||
Investment Income | ||
Dividends | $ 4,912,110 | |
Interest | 108,944 | |
Security lending | 270,913 | |
5,291,967 | ||
Less foreign taxes withheld | (425,133) | |
Total income | 4,866,834 | |
Expenses | ||
Management fee | $ 2,254,236 | |
Performance adjustment | (211,452) | |
Transfer agent fees | 1,079,990 | |
Accounting and security lending fees | 190,304 | |
Non-interested trustees' compensation | 1,171 | |
Custodian fees and expenses | 188,475 | |
Registration fees | 20,183 | |
Audit | 78,283 | |
Legal | 1,038 | |
Miscellaneous | 3,486 | |
Total expenses before reductions | 3,605,714 | |
Expense reductions | (4,211) | 3,601,503 |
Net investment income (loss) | 1,265,331 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities | 17,376,888 | |
Foreign currency transactions | (15,497) | |
Total net realized gain (loss) | 17,361,391 | |
Change in net unrealized appreciation (depreciation) on: Investment securities | 74,341,125 | |
Assets and liabilities in foreign currencies | 33,114 | |
Total change in net unrealized appreciation (depreciation) | 74,374,239 | |
Net gain (loss) | 91,735,630 | |
Net increase (decrease) in net assets resulting from operations | $ 93,000,961 | |
Other Information | ||
Sales charges paid to FDC | $ 5,562 | |
Deferred sales charges withheld | $ 3,148 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Pacific Basin
Financial Statements - continued
Statement of Changes in Net Assets
Year ended | Year ended | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $ 1,265,331 | $ (502,467) |
Net realized gain (loss) | 17,361,391 | (27,520,461) |
Change in net unrealized appreciation (depreciation) | 74,374,239 | 15,275,614 |
Net increase (decrease) in net assets resulting from operations | 93,000,961 | (12,747,314) |
Share transactions | 143,881,790 | 135,325,171 |
Cost of shares redeemed | (124,105,198) | (120,492,210) |
Net increase (decrease) in net assets resulting from share transactions | 19,776,592 | 14,832,961 |
Redemption fees | 267,285 | 448,127 |
Total increase (decrease) in net assets | 113,044,838 | 2,533,774 |
Net Assets | ||
Beginning of period | 306,205,794 | 303,672,020 |
End of period (including undistributed net investment income of $1,925,015 and accumulated net investment loss of $338,497, respectively) | $ 419,250,632 | $ 306,205,794 |
Other Information Shares | ||
Sold | 9,944,998 | 9,455,650 |
Redeemed | (9,417,585) | (8,606,996) |
Net increase (decrease) | 527,413 | 848,654 |
Financial Highlights
See accompanying notes which are an integral part of the financial statements.
Annual Report
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity a fund's total returns will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended | Past 1 | Past 5 | Past 10 |
Fidelity Southeast Asia | 38.81% | 11.35% | 1.14% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Southeast Asia Fund on October 31, 1993. The chart shows how the value of your investment would have grown, and also shows how the MSCI AC Far East Free ex-Japan Index did over the same period.
Annual Report
Management's Discussion of Fund Performance
Comments from Allan Liu, Portfolio Manager of Fidelity Southeast Asia Fund
Mirroring the U.S. rally, most international stock markets rebounded sharply during the 12-month period ending October 31, 2003. Encouraged by improved corporate earnings, favorable interest rates and the easing of geopolitical tensions, the Morgan Stanley Capital International Europe, Australasia, Far East (MSCI EAFE) Index - a proxy for stock markets outside the United States and Canada - gained 27.39% during the past year. From a regional perspective, all 16 countries in the MSCI Europe index - which gained 24.56% - had double-digit advances. Spain, Denmark and Sweden were among the region's best performers. In Japan, increased capital spending, exports and machinery orders helped the Tokyo Stock Exchange Stock Price Index (TOPIX) advance 36.39%. Following the SARS epidemic, other Asian markets also rebounded. For instance, the Hong Kong market, as measured by the Hang Seng Index, gained 34.51%. Emerging markets also fared well, particularly Latin America. The MSCI Emerging Markets Free-Latin America index rose 59.75%. Canadian equities, as measured by the S&P/TSX Composite Index, also posted an impressive annual gain, advancing 50.66%.
For the 12 months ending October 31, 2003, Fidelity Southeast Asia Fund gained 38.81%, compared with 36.53% for the Morgan Stanley Capital International All Country (MSCI AC) Far East Free ex Japan Index and 37.16% for the Lipper Pacific Region ex Japan Funds Average. Strong stock selection in the materials group was the most significant positive factor. I particularly favored South Korean petrochemical stocks, as the group offered many globally competitive companies whose stocks were trading at attractive valuations. Petrochemical stocks that helped our performance included Thailand-based Aromatics and Korean holding Honam Petrochemical. Samsung Electronics was the fund's largest holding and also its most positive contributor in absolute terms. Holding back the fund's performance was unfavorable stock picking in the food, beverage and tobacco group, as well as an underweighting in technology hardware. The largest detractor versus the index was Singapore-based United Overseas Bank, which turned in a modest gain but underperformed the overall market. Also hurting performance was Lotte Chilsung Beverage. The stock was hurt by the soft South Korean economy even as the company continued to gain market share.
The views expressed in this statement reflect those of the portfolio manager only through the end of the period of the report as stated on the cover and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Investment Changes
Geographic Diversification (% of fund's net assets) | |||
As of October 31, 2003 | |||
Korea (South) | 30.2% | ||
Hong Kong | 23.6% | ||
Taiwan | 19.7% | ||
Singapore | 5.8% | ||
Thailand | 5.0% | ||
India | 3.2% | ||
United Kingdom | 3.2% | ||
China | 3.2% | ||
Malaysia | 2.7% | ||
Other | 3.4% |
Percentages are adjusted for the effect of futures contracts, if applicable. |
As of April 30, 2003 | |||
Korea (South) | 34.3% | ||
Taiwan | 17.7% | ||
Hong Kong | 16.3% | ||
Thailand | 5.4% | ||
United Kingdom | 4.9% | ||
Malaysia | 4.7% | ||
Singapore | 4.6% | ||
China | 4.4% | ||
United States of America | 4.0% | ||
Other | 3.7% |
Percentages are adjusted for the effect of futures contracts, if applicable. |
Asset Allocation | ||
% of fund's | % of fund's net assets | |
Stocks | 99.3 | 96.0 |
Short-Term Investments and | 0.7 | 4.0 |
Top Ten Stocks as of October 31, 2003 | ||
% of fund's | % of fund's net assets | |
Samsung Electronics Co. Ltd. (Korea (South), Semiconductors & Semiconductor Equipment) | 9.2 | 9.9 |
Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan, Semiconductors & Semiconductor Equipment) | 3.1 | 3.7 |
HSBC Holdings PLC (Hong Kong) (Reg.) (United Kingdom, Commercial Banks) | 3.1 | 4.9 |
Hutchison Whampoa Ltd. (Hong Kong, Industrial Conglomerates) | 3.1 | 2.0 |
Cheung Kong Holdings Ltd. (Hong Kong, Real Estate) | 3.0 | 1.5 |
Honam Petrochemical Corp. (Korea (South), Chemicals) | 2.3 | 1.9 |
Sun Hung Kai Properties Ltd. (Hong Kong, Real Estate) | 2.2 | 1.0 |
Infosys Technologies Ltd. (India, IT Services) | 2.2 | 0.0 |
United Overseas Bank Ltd. (Singapore, Commercial Banks) | 1.9 | 3.0 |
Formosa Plastic Corp. (Taiwan, Chemicals) | 1.8 | 2.2 |
31.9 | ||
Market Sectors as of October 31, 2003 | ||
% of fund's | % of fund's net assets | |
Information Technology | 34.3 | 18.4 |
Financials | 25.1 | 24.8 |
Materials | 14.1 | 18.6 |
Consumer Discretionary | 13.3 | 14.4 |
Industrials | 5.9 | 7.7 |
Consumer Staples | 2.8 | 3.0 |
Energy | 2.2 | 3.4 |
Telecommunication Services | 0.8 | 3.7 |
Health Care | 0.4 | 1.1 |
Utilities | 0.4 | 0.9 |
Annual Report
Investments October 31, 2003
Showing Percentage of Net Assets
Common Stocks - 97.1% | |||
Shares | Value (Note 1) | ||
Australia - 1.2% | |||
CSL Ltd. | 123,000 | $ 1,479,905 | |
JB Hi-Fi Ltd. (a)(c) | 462,858 | 694,486 | |
News Corp. Ltd. | 88,112 | 785,298 | |
Promina Group Ltd. | 200,000 | 469,946 | |
Publishing & Broadcasting Ltd. | 90,000 | 767,555 | |
Rinker Group Ltd. | 100,000 | 449,421 | |
TOTAL AUSTRALIA | 4,646,611 | ||
Bermuda - 0.6% | |||
COFCO International Ltd. | 1,000,000 | 618,111 | |
Coslight Technology International | 1,980,000 | 930,643 | |
Hutchison Harbour Ring Ltd. | 7,300,000 | 742,634 | |
Ports Design Ltd. (a) | 68,000 | 122,592 | |
TOTAL BERMUDA | 2,413,980 | ||
China - 3.2% | |||
Anhui Conch Cement Co. Ltd. Class H | 500,000 | 569,821 | |
AviChina Industry & Technology Co. Ltd. (a) | 1,188,000 | 246,302 | |
China Petroleum & Chemical Corp. | 6,600,000 | 2,188,498 | |
China Telecom Corp. Ltd. (H Shares) | 1,200,000 | 397,909 | |
Great Wall Technology Co. (H Shares) (a) | 3,400,000 | 831,874 | |
Guangdong Kelon Electrical Holdings Ltd. Series H (a) | 2,000,000 | 843,463 | |
Nanjing Panda Electronics Co. | 2,442,000 | 715,405 | |
PetroChina Co. Ltd. (H Shares) | 6,400,000 | 2,328,217 | |
PICC Property & Casualty Co. Ltd. | 118,000 | 27,628 | |
Sinopec Beijing Yanhua Petrochemical Co. Ltd. (H Shares) (a) | 5,800,000 | 1,254,765 | |
Tianjin Capital Environmental Protection Co. Ltd. (H Shares) | 3,568,000 | 987,844 | |
Zhenhai Refining & Chemical Co. | 3,450,000 | 2,110,268 | |
TOTAL CHINA | 12,501,994 | ||
Hong Kong - 23.6% | |||
ASM Pacific Technology Ltd. | 860,000 | 3,217,137 | |
Bank of East Asia Ltd. | 320,000 | 956,011 | |
BOC Hong Kong Holdings Ltd. | 2,400,000 | 4,156,794 | |
Cheung Kong Holdings Ltd. | 1,440,000 | 12,006,799 | |
China Insurance International Holdings Co. Ltd. | 400,000 | 267,848 | |
China Unicom Ltd. | 440,000 | 413,619 | |
CNOOC Ltd. | 830,000 | 1,565,816 | |
Computer & Technologies Holdings Ltd. (a) | 2,600,000 | 703,101 | |
Dah Sing Financial Holdings Ltd. | 252,000 | 1,760,456 | |
Denway Motors Ltd. | 2,300,000 | 1,895,539 | |
Esprit Holdings Ltd. | 1,100,000 | 3,456,269 | |
Guangzhou Investment Co. Ltd. | 7,600,000 | 822,087 | |
Guoco Group Ltd. | 193,421 | 1,363,681 | |
Shares | Value (Note 1) | ||
Harbin Brewery Group Ltd. | 1,000,000 | $ 476,460 | |
Henderson Land Development Co. Ltd. | 688,000 | 2,888,225 | |
Hong Kong Exchanges & Clearing Ltd. | 680,000 | 1,479,860 | |
Hutchison Whampoa Ltd. | 1,561,700 | 12,116,569 | |
Hysan Development Ltd. | 2,061,739 | 2,986,835 | |
Industrial & Commercial Bank of China (Asia) Ltd. | 1,360,000 | 1,830,123 | |
JCG Holdings Ltd. | 600,000 | 451,993 | |
Kerry Properties Ltd. | 2,400,000 | 3,183,270 | |
Kingboard Chemical Holdings Ltd. | 2,968,000 | 3,974,863 | |
Li & Fung Ltd. | 2,488,000 | 4,181,055 | |
Midland Realty Holdings Ltd. | 7,600,000 | 1,653,961 | |
New World Development Co. Ltd. | 2,240,000 | 1,435,047 | |
Next Media Ltd. (a) | 8,080,000 | 3,433,605 | |
Playmates Holdings Ltd. | 2,542,000 | 517,199 | |
QPL International Holdings Ltd. (a) | 5,000,000 | 1,738,436 | |
Sun Hung Kai Properties Ltd. | 1,050,310 | 8,892,794 | |
Techtronic Industries Co. | 1,800,000 | 4,960,338 | |
Wing Hang Bank Ltd. | 620,000 | 3,824,302 | |
Wing Lung Bank Ltd. | 100,000 | 629,700 | |
TOTAL HONG KONG | 93,239,792 | ||
India - 3.2% | |||
Hero Honda Motors Ltd. | 175,000 | 1,364,822 | |
I-Flex Solutions Ltd. | 80,000 | 1,212,533 | |
Infosys Technologies Ltd. | 82,000 | 8,578,969 | |
Satyam Computer Services Ltd. | 250,000 | 1,688,548 | |
TOTAL INDIA | 12,844,872 | ||
Indonesia - 0.9% | |||
PT Aneka Tambang Tbk | 8,000,000 | 1,082,803 | |
PT Bank Mandiri Persero Tbk | 4,700,000 | 525,513 | |
PT Hanjaya Mandala Sampoerna Tbk | 900,000 | 460,780 | |
PT International Nickel Indonesia Tbk | 200,000 | 473,138 | |
PT Telkomunikasi Indonesia Tbk | 1,330,000 | 939,214 | |
TOTAL INDONESIA | 3,481,448 | ||
Korea (South) - 28.0% | |||
Amorepacific Corp. | 17,000 | 2,334,177 | |
Chohung Bank Co. Ltd. (a) | 60,000 | 194,423 | |
Daelim Industrial Co. | 66,000 | 1,684,156 | |
Daewoo Heavy Industries & Machinery Ltd. (a) | 210,000 | 1,437,262 | |
Hana Bank | 180,000 | 3,133,078 | |
Hanwha Chemical Corp. (a) | 820,000 | 5,695,308 | |
Honam Petrochemical Corp. | 224,000 | 8,971,352 | |
Hyundai Department Store Co. Ltd. | 73,050 | 1,848,624 | |
Hyundai Industrial Development & Construction Co. | 155,730 | 1,421,110 | |
Hyundai Mobis | 76,000 | 2,934,684 | |
Hyundai Motor Co. Ltd. | 63,000 | 2,099,999 | |
INI Steel Co. | 140,000 | 887,199 | |
Interflex Co. Ltd. | 67,278 | 1,608,759 | |
Kookmin Bank | 119,000 | 4,343,724 | |
KorAm Bank Ltd. | 200,000 | 2,298,267 | |
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
Korea (South) - continued | |||
Korea Exchange Bank Cred Service Co. Ltd. (a) | 225,000 | $ 1,271,862 | |
LG Card Co. Ltd. | 104,990 | 1,068,972 | |
LG Electronics, Inc. | 119,860 | 6,208,208 | |
LG Petrochemical Co. Ltd. | 170,000 | 3,878,325 | |
Lotte Chilsung Beverage Co. Ltd. | 4,400 | 2,230,671 | |
Lotte Confectionery Co. Ltd. | 1,030 | 452,556 | |
PKL Corp. (a) | 230,000 | 1,234,051 | |
Samsung Electro-Mechanics Co. Ltd. | 55,000 | 1,863,539 | |
Samsung Electronics Co. Ltd. | 91,454 | 36,318,847 | |
Samsung SDI Co. Ltd. | 43,000 | 4,432,613 | |
Shin Sung Engineering Co. (a) | 265,000 | 1,271,820 | |
Shinhan Financial Group Co. Ltd. | 290,000 | 4,165,608 | |
Shinsegae Co. Ltd. | 15,500 | 3,110,476 | |
Top Engineering Co. Ltd. | 104,100 | 1,543,687 | |
Webzen, Inc. | 7,333 | 828,409 | |
TOTAL KOREA (SOUTH) | 110,771,766 | ||
Malaysia - 2.7% | |||
British American Tobacco (Malaysia) BHD | 110,000 | 1,208,553 | |
Genting BHD | 300,000 | 1,460,526 | |
Malayan Banking BHD | 540,000 | 1,449,474 | |
Malaysian Pacific Industries BHD | 250,000 | 1,171,053 | |
Malaysian Plantations BHD | 1,658,400 | 637,175 | |
MK Land Holdings BHD | 1,105,200 | 654,395 | |
OYL Industries BHD | 185,000 | 1,703,947 | |
Public Bank BHD (For. Reg.) | 2,081,250 | 1,643,092 | |
Puncak Niaga Holding BHD (a) | 500,000 | 473,684 | |
Road Builder (M) Holdings BHD | 350,000 | 364,737 | |
TOTAL MALAYSIA | 10,766,636 | ||
Singapore - 5.8% | |||
Chartered Semiconductor Manufacturing Ltd. (a) | 4,250,000 | 4,177,925 | |
China Aviation Oil Singapore Corp. Ltd. | 700,000 | 462,919 | |
Datacraft Asia Ltd. (a) | 1,500,000 | 1,875,000 | |
DBS Group Holdings Ltd. | 400,000 | 3,288,301 | |
Elec & Eltek International Co. Ltd. | 150,000 | 427,500 | |
Huan Hsin Holdings Ltd. | 400,000 | 259,845 | |
Jaya Holdings Ltd. | 850,000 | 415,349 | |
Jurong Technologies Industrial Corp. Ltd. | 750,000 | 469,963 | |
MFS Technology Ltd. | 700,000 | 410,463 | |
Oversea-Chinese Banking Corp. Ltd. | 122,000 | 848,635 | |
Seksun Corp. Ltd. | 600,000 | 424,260 | |
ST Assembly Test Services Ltd. (a) | 1,040,000 | 1,363,150 | |
United Overseas Bank Ltd. | 951,280 | 7,437,429 | |
Venture Corp. Ltd. | 120,000 | 1,303,823 | |
TOTAL SINGAPORE | 23,164,562 | ||
Shares | Value (Note 1) | ||
Taiwan - 19.7% | |||
Advanced Semiconductor Engineering, Inc. (a) | 3,000,000 | $ 2,785,146 | |
Ambit Microsystems Corp. | 493,940 | 1,353,859 | |
AU Optronics Corp. | 2,100,000 | 2,834,660 | |
Career Technology Co. Ltd. (a) | 750,000 | 1,016,799 | |
China Steel Corp. | 2,540,342 | 2,051,440 | |
Compal Electronics, Inc. | 1,938,500 | 2,942,315 | |
Formosa Chemicals & Fibre Corp. | 2,656,464 | 4,227,794 | |
Formosa Plastic Corp. | 4,522,360 | 6,930,820 | |
High Tech Computer Corp. | 91,000 | 337,931 | |
Hon Hai Precision Industries Co. Ltd. | 835,084 | 3,741,019 | |
Hon Hai Precision Industries Co. Ltd. GDR (Reg. S) | 22,500 | 203,175 | |
Kaulin Manufacturing Co. Ltd. | 569,000 | 922,340 | |
King Yuan Electronics Co. Ltd. (a) | 1,750,000 | 1,573,092 | |
Largan Precision Co. Ltd. | 80,000 | 855,880 | |
MediaTek, Inc. | 225,000 | 2,320,955 | |
Merry Electronics Co. Ltd. | 300,000 | 486,295 | |
Nan Ya Plastics Corp. | 2,850,000 | 3,805,040 | |
Nien Made Enterprise Co. Ltd. | 1,184,760 | 1,868,101 | |
Novatek Microelectronics Corp. | 550,000 | 1,734,453 | |
Oriental Union Chemical Corp. | 1,407,200 | 1,824,839 | |
Powerchip Semiconductor Corp. (a) | 1,900,000 | 929,561 | |
Quanta Computer, Inc. | 888,400 | 2,421,957 | |
Quanta Display, Inc. (a) | 1,450,000 | 739,316 | |
Siliconware Precision Industries Co. Ltd. (a) | 2,600,000 | 2,490,421 | |
Sintek Photronic Corp. (a) | 3,550,000 | 1,830,976 | |
Sunplus Technology Co. Ltd. | 1,280,000 | 2,225,759 | |
Tainan Enterprises Co. Ltd. | 1,100,000 | 1,468,612 | |
Taiwan Cellular Co. Ltd. | 1,300,000 | 1,168,582 | |
Taiwan Semiconductor Manufacturing Co. Ltd. (a) | 6,309,712 | 12,459,496 | |
Tong Yang Industry Co. Ltd. | 1,173,130 | 1,780,613 | |
United Microelectronics Corp. (a) | 2,268,000 | 2,078,833 | |
WUS Printed Circuit Co. Ltd. (a) | 3,820,000 | 1,936,457 | |
Yageo Corp. (a) | 4,150,000 | 1,981,432 | |
Zyxel Communications Corp. | 340,000 | 746,537 | |
TOTAL TAIWAN | 78,074,505 | ||
Thailand - 5.0% | |||
Amata Corp. Public Co. Ltd. | 1,300,000 | 419,775 | |
Aromatics (Thailand) PCL (a) | 4,300,000 | 4,655,194 | |
Asian Property Development PCL | 2,300,000 | 359,825 | |
Bangkok Bank Ltd. PCL (For. Reg.) (a) | 450,000 | 1,053,191 | |
Bank of Ayudhya PCL: | |||
(For. Reg.) (a) | 4,500,000 | 1,385,482 | |
warrants 9/3/08 (a) | 1,600,000 | 208,260 | |
C.P. Seven Eleven PCL (a) | 1,100,000 | 1,486,859 | |
National Petrochemical PCL (For. Reg.) | 1,200,000 | 2,598,248 | |
Siam Cement PCL (For. Reg.) | 1,000,600 | 5,660,466 | |
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
Thailand - continued | |||
Siam Commercial Bank PCL (For. Reg.) (a) | 1,461,100 | $ 1,508,645 | |
Thai Olefins PCL (a) | 568,700 | 427,059 | |
TOTAL THAILAND | 19,763,004 | ||
United Kingdom - 3.2% | |||
Astro All Asia Networks PLC (a) | 172,600 | 214,387 | |
HSBC Holdings PLC (Hong Kong) (Reg.) | 820,104 | 12,313,042 | |
TOTAL UNITED KINGDOM | 12,527,429 | ||
TOTAL COMMON STOCKS (Cost $280,765,006) | 384,196,599 | ||
Preferred Stocks - 2.2% | |||
Convertible Preferred Stocks - 0.2% | |||
Korea (South) - 0.2% | |||
Shinsegae Co. Ltd. | 3,800 | 770,595 | |
Nonconvertible Preferred Stocks - 2.0% | |||
Korea (South) - 2.0% | |||
Daishin Securities Co. Ltd. | 156,000 | 1,159,949 | |
Hyundai Motor Co. Ltd. | 131,000 | 2,158,427 | |
Samsung Electronics Co. Ltd. | 22,870 | 4,541,147 | |
TOTAL KOREA (SOUTH) | 7,859,523 | ||
TOTAL PREFERRED STOCKS (Cost $4,274,774) | 8,630,118 | ||
Money Market Funds - 1.4% | |||
Fidelity Cash Central Fund, 1.07% (b) | 5,430,002 | 5,430,002 | |
TOTAL INVESTMENT PORTFOLIO - 100.7% (Cost $290,469,782) | 398,256,719 | ||
NET OTHER ASSETS - (0.7)% | (2,702,415) | ||
NET ASSETS - 100% | $ 395,554,304 |
Legend |
(a) Non-income producing |
(b) The rate quoted is the annualized seven-day yield of the fund at period end. A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request. |
(c) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
Other Information |
Purchases and sales of securities, other than short-term securities, aggregated $378,402,586 and $311,614,556, respectively. |
Income Tax Information |
At October 31, 2003, the fund had a capital loss carryforward of approximately $99,356,000 of which $69,641,000, $324,000 and $29,391,000 will expire on October 31, 2006, 2007 and 2009, respectively. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements
Statement of Assets and Liabilities
October 31, 2003 | ||
Assets | ||
Investment in securities, at value (cost $290,469,782) - See accompanying schedule | $ 398,256,719 | |
Foreign currency held at value (cost $299,825) | 299,861 | |
Receivable for investments sold | 1,949,396 | |
Receivable for fund shares sold | 962,698 | |
Dividends receivable | 106,161 | |
Interest receivable | 2,952 | |
Redemption fees receivable | 22 | |
Prepaid expenses | 1,563 | |
Other receivables | 57,796 | |
Total assets | 401,637,168 | |
Liabilities | ||
Payable for investments purchased | $ 3,658,828 | |
Delayed delivery | 721,549 | |
Payable for fund shares redeemed | 185,041 | |
Accrued management fee | 224,751 | |
Other payables and accrued expenses | 1,292,695 | |
Total liabilities | 6,082,864 | |
Net Assets | $ 395,554,304 | |
Net Assets consist of: | ||
Paid in capital | $ 386,926,632 | |
Undistributed net investment income | 2,419,271 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (100,534,427) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 106,742,828 | |
Net Assets, for 28,836,142 shares outstanding | $ 395,554,304 | |
Net Asset Value, offering price and redemption price per share ($395,554,304 ÷ 28,836,142 shares) | $ 13.72 |
Statement of Operations
Year ended October 31, 2003 | ||
Investment Income | ||
Dividends | $ 8,411,170 | |
Interest | 70,522 | |
8,481,692 | ||
Less foreign taxes withheld | (1,014,677) | |
Total income | 7,467,015 | |
Expenses | ||
Management fee | $ 2,035,815 | |
Performance adjustment | 30,920 | |
Transfer agent fees | 905,523 | |
Accounting fees and expenses | 168,219 | |
Non-interested trustees' compensation | 1,038 | |
Custodian fees and expenses | 447,675 | |
Registration fees | 23,092 | |
Audit | 83,784 | |
Legal | 862 | |
Miscellaneous | 2,320 | |
Total expenses before reductions | 3,699,248 | |
Expense reductions | (123) | 3,699,125 |
Net investment income (loss) | 3,767,890 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities (net of foreign taxes of $404,869) | 19,208,400 | |
Foreign currency transactions | (499,370) | |
Total net realized gain (loss) | 18,709,030 | |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of deferred foreign taxes of $1,039,255) | 79,818,141 | |
Assets and liabilities in foreign currencies | (10,705) | |
Total change in net unrealized appreciation (depreciation) | 79,807,436 | |
Net gain (loss) | 98,516,466 | |
Net increase (decrease) in net assets resulting from operations | $ 102,284,356 | |
Other Information | ||
Sales charges paid to FDC | $ 8,514 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Southeast Asia
Financial Statements - continued
Statement of Changes in Net Assets
Year ended | Year ended | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $ 3,767,890 | $ 1,560,642 |
Net realized gain (loss) | 18,709,030 | 2,987,626 |
Change in net unrealized appreciation (depreciation) | 79,807,436 | 8,418,893 |
Net increase (decrease) in net assets resulting from operations | 102,284,356 | 12,967,161 |
Distributions to shareholders from net investment income | (1,964,939) | (685,205) |
Share transactions | 125,005,217 | 149,751,138 |
Reinvestment of distributions | 1,889,991 | 658,925 |
Cost of shares redeemed | (77,651,168) | (123,563,758) |
Net increase (decrease) in net assets resulting from share transactions | 49,244,040 | 26,846,305 |
Redemption fees | 339,680 | 511,306 |
Total increase (decrease) in net assets | 149,903,137 | 39,639,567 |
Net Assets | ||
Beginning of period | 245,651,167 | 206,011,600 |
End of period (including undistributed net investment income of $2,419,271 and undistributed net investment income of $1,044,264, respectively) | $ 395,554,304 | $ 245,651,167 |
Other Information Shares | ||
Sold | 11,009,396 | 12,782,942 |
Issued in reinvestment of distributions | 181,730 | 59,523 |
Redeemed | (7,021,142) | (10,817,390) |
Net increase (decrease) | 4,169,984 | 2,025,075 |
Financial Highlights
See accompanying notes which are an integral part of the financial statements.
Annual Report
1. Significant Accounting Policies.
Fidelity Canada Fund, Fidelity China Region Fund, Fidelity Emerging Markets Fund, Fidelity Europe Fund, Fidelity Europe Capital Appreciation Fund, Fidelity Japan Fund, Fidelity Japan Smaller Companies Fund, Fidelity Latin America Fund, Fidelity Nordic Fund, Fidelity Pacific Basin Fund and Fidelity Southeast Asia Fund (the funds) are funds of Fidelity Investment Trust (the trust). The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. Each fund is authorized to issue an unlimited number of shares. Certain funds' investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the funds:
Security Valuation. Net asset value per share (NAV calculation) is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Equity securities for which market quotations are available are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) on the primary market or exchange on which they trade. Debt securities for which quotations are readily available are valued at their most recent bid prices (sales prices if the principal market is an exchange) in the principal market in which such securities are normally traded, as determined by recognized dealers in such securities, or securities are valued on the basis of information provided by a pricing service. Pricing services use valuation matrices that incorporate both dealer-supplied valuations and valuation models. If an event that is expected to materially affect the value of a security occurs after the close of an exchange or market on which that security trades, but prior to the NAV calculation, then that security will be fair valued taking the event into account. Securities (including restricted securities) for which market quotations are not readily available are valued at their fair value as determined in good faith under consistently applied procedures under the general supervision of the Board of Trustees. Price movements in futures contracts and ADRs, market and trading trends, the bid/ask quotes of brokers and off-exchange institutional trading may be reviewed in the course of making a good faith determination of a security's fair value. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued on the basis of amortized cost. Investments in open-end investment companies are valued at their net asset value each business day.
Foreign Currency. Certain funds may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the funds are informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income is accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities, which is accrued using the interest method. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectibility of interest is reasonably assured.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among the funds in the trust.
Income Tax Information and Distributions to Shareholders. Each year each fund intends to qualify as a regulated investment company by distributing all of their taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required in the accompanying financial statements. Foreign taxes are provided for based on each fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. Distributions are recorded on the ex-dividend date.
Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Capital accounts within the financial statements are adjusted for permanent and temporary book and tax differences. These adjustments have no impact on net assets or the results of operations. Temporary differences will reverse in a subsequent period. These differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), market discount, non-taxable dividends, capital loss carryforwards, expiring capital loss carryforwards, and losses deferred due to wash sales.
1. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The tax-basis components of distributable earnings and the federal tax cost as of period end were as follows for each fund:
Cost for Federal | Unrealized | Unrealized | Net Unrealized | |
Canada | $ 133,965,398 | $ 38,430,985 | $ (958,300) | $ 37,472,685 |
China Region | 178,167,618 | 53,008,608 | (1,313,456) | 51,695,152 |
Emerging MarketsA | 298,398,799 | 72,691,707 | (7,280,374) | 65,411,333 |
Europe | 1,095,109,037 | 242,764,663 | (17,288,311) | 225,476,352 |
Europe Capital Appreciation | 345,699,451 | 67,585,906 | (7,468,379) | 60,117,527 |
Japan | 484,916,596 | 105,976,307 | (9,800,528) | 96,175,779 |
Japan Smaller Companies | 793,912,313 | 270,684,399 | (15,826,319) | 254,858,080 |
Latin America | 165,346,717 | 64,440,425 | (3,920,158) | 60,520,267 |
Nordic | 68,215,515 | 20,055,940 | (5,292,136) | 14,763,804 |
Pacific Basin | 385,366,990 | 68,461,282 | (14,239,983) | 54,221,299 |
Southeast Asia | 292,701,423 | 109,327,967 | (3,772,671) | 105,555,296 |
Undistributed | Undistributed | Capital Loss | |
Canada | $ 732,467 | $ - | $ (20,200,577) |
China Region | 3,846,969 | - | (49,007,197) |
Emerging MarketsA | 2,608,421 | - | (524,239,650) |
Europe | 15,582,222 | - | (385,251,194) |
Europe Capital Appreciation | 4,804,566 | - | (82,312,514) |
Japan | 308,411 | - | (150,872,146) |
Japan Smaller Companies | 1,029,068 | - | (74,042,760) |
Latin America | 2,476,408 | - | (98,738,308) |
Nordic | 607,884 | - | (24,829,033) |
Pacific Basin | 3,566,562 | - | (78,135,500) |
Southeast Asia | 2,428,439 | - | (99,356,065) |
A Tax information based on the fund's tax year end of September 30, 2003.
The tax character of distributions paid was as follows:
October 31, 2003 | Ordinary Income | Long-term | Return of Capital | Total |
Canada | $ 173,335 | $ - | $ - | $ 173,335 |
China Region | 1,902,675 | - | - | 1,902,675 |
Emerging Markets | 1,836,578 | - | - | 1,836,578 |
Europe | 6,786,170 | - | - | 6,786,170 |
Europe Capital Appreciation | 5,760,355 | - | - | 5,760,355 |
Japan | - | - | - | - |
Japan Smaller Companies | - | - | - | - |
Latin America | 2,628,539 | - | - | 2,628,539 |
Nordic | 575,077 | - | - | 575,077 |
Pacific Basin | - | - | - | - |
Southeast Asia | 1,964,939 | - | - | 1,964,939 |
October 31, 2002 | Ordinary Income | Long-term | Return of Capital | Total |
Canada | $ 137,404 | $ - | $ - | $ 137,404 |
China Region | 1,673,748 | - | - | 1,673,748 |
Emerging Markets | 936,196 | - | - | 936,196 |
Europe | 11,245,807 | - | - | 11,245,807 |
Europe Capital Appreciation | 4,425,446 | - | - | 4,425,446 |
Japan | - | - | - | - |
Japan Smaller Companies | - | - | - | - |
Latin America | 4,311,069 | - | - | 4,311,069 |
Nordic | 333,684 | - | - | 333,684 |
Pacific Basin | - | - | - | - |
Southeast Asia | 685,205 | - | - | 685,205 |
1. Significant Accounting Policies - continued
Short-Term Trading (Redemption) Fees. Shares held in Canada, China Region, Emerging Markets, Japan, Japan Smaller Companies, Latin America, Nordic, Pacific Basin and Southeast Asia less than 90 days are subject to a short-term trading fee equal to 1.50% of the proceeds of the redeemed shares. Shares held in Europe and Europe Capital Appreciation less than 30 days are subject to a short-term trading fee equal to 1.00% of the proceeds of the redeemed shares. These fees, which are retained by the funds, are accounted for as an addition to paid in capital.
2. Operating Policies.
Repurchase Agreements. Fidelity Management and Research Company (FMR) has received an Exemptive Order from the Securities and Exchange Commission (SEC) which permits the funds and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts. These accounts are then invested in repurchase agreements that are collateralized by U.S. Treasury or Government obligations. Certain funds may also invest directly with institutions, in repurchase agreements that are collateralized by commercial paper obligations and corporate obligations. Collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. Collateral is marked-to-market daily and maintained at a value at least equal to the principal amount of the repurchase agreement (including accrued interest).
Delayed Delivery Transactions and When-Issued Securities. Each fund may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. During the time a delayed delivery sell is outstanding, the contract is marked-to-market daily and equivalent deliverable securities are held for the transaction. The value of the securities purchased on a delayed delivery or when-issued basis are identified as such in each applicable fund's Schedule of Investments. Each fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, each fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract, or if the issuer does not issue the securities due to political, economic, or other factors.
Restricted Securities. Certain funds may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included under the captions "Legend" and/or "Other Information" at the end of each applicable fund's Schedule of Investments.
3. Purchases and Sales of Investments.
Information regarding purchases and sales of securities is included under the caption "Other Information" at the end of each applicable fund's Schedule of Investments. Japan Fund realized a loss on the sale of an investment not meeting the investment restrictions of the fund. The loss was fully reimbursed by the Fund's investment advisor.
4. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the funds with investment management related services for which the funds pay a monthly management fee.
The management fee is the sum of an individual fund fee rate and a group fee rate. The individual fund fee rate is applied to each fund's average net assets. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee for Canada, Europe, Europe Capital Appreciation, Japan, Pacific Basin, and Southeast Asia is subject to a performance adjustment (up to a maximum ±.20% of each applicable fund's average net assets over a 36 month performance period). The upward, or downward adjustment to the management fee is based on each fund's relative investment performance as compared to an appropriate benchmark index. For the period, each fund's annual management fee rate expressed as a percentage of each fund's average net assets, including the performance adjustment, if applicable was as follows:
Individual Rate | Group Rate | Total | |
Canada | .45% | .28% | .92% |
China Region | .45% | .28% | .73% |
Emerging Markets | .45% | .28% | .73% |
Europe | .45% | .28% | .61% |
Europe Capital Appreciation | .45% | .28% | .97% |
Japan | .45% | .28% | .60% |
Japan Smaller Companies | .45% | .28% | .72% |
Latin America | .45% | .28% | .73% |
Nordic | .45% | .28% | .74% |
Pacific Basin | .45% | .28% | .66% |
Southeast Asia | .45% | .28% | .74% |
4. Fees and Other Transactions with Affiliates - continued
Sales Load. Effective February 24, 2003, after 4:00 p.m. Eastern Standard Time, Canada, China Region, Emerging Markets, Japan, Japan Smaller Companies, Latin America, Nordic, Pacific Basin and Southeast Asia's 3% sales charge was eliminated. Shares of Canada, Europe, and Pacific Basin purchased prior to October 12, 1990, are subject to a 1% deferred sales charge upon redemption. The amounts received and retained by Fidelity Distributors Corporation (FDC), an affiliate of FMR, are shown under the caption "Other Information" on each fund's Statement of Operations.
Transfer Agent Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, is the funds' transfer, dividend disbursing and shareholder servicing agent. FSC receives account fees and asset-based fees that vary according to account size and type of account. FSC pays for typesetting, printing and mailing of all shareholder reports, except proxy statements. For the period, the transfer agent fees were equivalent to the following annual rates expressed as a percentage of average net assets:
Canada | .31% | |
China Region | .35% | |
Emerging Markets | .40% | |
Europe | .31% | |
Europe Capital Appreciation | .28% | |
Japan | .31% | |
Japan Smaller Companies | .26% | |
Latin America | .40% | |
Nordic | .40% | |
Pacific Basin | .35% | |
Southeast Asia | .32% |
Accounting and Security Lending Fees. FSC maintains each fund's accounting records and administers the security lending program. The security lending fee is based on the number and duration of lending transactions. The accounting fee is based on the level of average net assets for the month plus out-of-pocket expenses.
Central Funds. The funds may invest in affiliated Central Funds managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR. The Central Funds are open-end investment companies available only to investment companies and other accounts managed by FMR and its affiliates. The Central Funds seek preservation of capital and current income and do not pay a management fee. Income distributions earned by the funds are recorded as income in the accompanying financial statements. Distributions from the Central Funds are noted in the table below:
Income | ||
Canada | $ 52,519 | |
China Region | 57,737 | |
Emerging Markets | 66,903 | |
Europe | 330,126 | |
Europe Capital Appreciation | 224,640 | |
Japan | 84,495 | |
Japan Smaller Companies | 331,775 | |
Latin America | 47,194 | |
Nordic | 23,939 | |
Pacific Basin | 103,465 | |
Southeast Asia | 66,168 |
Brokerage Commissions. Certain funds placed a portion of their portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms are shown under the caption "Other Information" at the end of each applicable fund's Schedule of Investments.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the funds, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating funds. Information regarding each applicable fund's participation in the program is included under the caption "Other Information" at the end of each applicable fund's Schedule of Investments.
5. Committed Line of Credit.
Certain funds participate with other funds managed by FMR in a $3.5 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The funds have agreed to pay commitment fees on their pro rata portion of the line of credit. During the period, there were no borrowings on this line of credit.
6. Security Lending.
Certain funds lend portfolio securities from time to time in order to earn additional income. Each applicable fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the funds and any additional required collateral is delivered to the funds on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Cash collateral is invested in cash equivalents. The value of loaned securities and cash collateral at period end are disclosed on each applicable fund's Statement of Assets and Liabilities.
7. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of certain funds provided services to these funds in addition to trade execution. These services included payments of expenses on behalf of each applicable fund. In addition, through arrangements with each applicable fund's custodian and transfer agent, credits realized as a result of uninvested cash balances were used to reduce each applicable fund's expenses. All of the applicable expense reductions are noted in the table below.
Brokerage | Custody | Transfer | |
Canada | $ 52,592 | $ 94 | $ - |
China Region | - | - | - |
Emerging Markets | 16,051 | 339 | - |
Europe | 480,861 | 883 | 1,915 |
Europe Capital Appreciation | 252,986 | 393 | - |
Japan | - | - | 615 |
Japan Smaller Companies | - | - | 2,083 |
Latin America | - | 826 | - |
Nordic | 20,191 | - | - |
Pacific Basin | 4,064 | - | 147 |
Southeast Asia | - | 123 | - |
8. Other Information.
At the end of the period, FMR or its affiliates and certain unaffiliated shareholders each were owners of record of more than 10% of the outstanding shares of the following funds:
Affiliated % | Number of | Unaffiliated | |
Canada Europe Japan Japan Smaller Companies Pacific Basin Southeast Asia | - 43% 41% 21% - 24% | 1 - - - 1 - | 11% - - - 15% - |
At the end of the period, Fidelity Freedom Fund 2020 was the owner of record of approximately 17% and 11% of the total outstanding shares of Europe and Japan, respectively. Fidelity Freedom Fund 2030 was the owner of record of approximately 12% of the total outstanding shares of Europe. The Fidelity Freedom Funds were the owners of record, in the aggregate, of approximately 42%, 28% and 21% of the total outstanding shares of Europe, Japan and Southeast Asia, respectively.
9. Transactions with Affiliated Companies.
An affiliated company is a company which the fund has ownership of at least 5% of the voting securities. Information regarding transactions with affiliated companies is included in "Other Information" at the end of each applicable fund's Schedule of Investments.
10. Litigation.
The Latin America Fund is engaged in litigation against the obligor on the inflation adjusted debt of Siderurgica Brasileiras SA, contesting the calculation of the principal adjustment. Based on the lack of progress to date, no reasonably reliable estimate can be made as to when any amounts will be recovered and as to what such amounts would be.
To the Trustees of Fidelity Investment Trust and the Shareholders of:
Fidelity Canada Fund,
Fidelity China Region Fund,
Fidelity Emerging Markets Fund,
Fidelity Europe Fund,
Fidelity Japan Fund,
Fidelity Japan Smaller Companies Fund,
Fidelity Latin America Fund,
Fidelity Nordic Fund,
Fidelity Pacific Basin Fund,
Fidelity Southeast Asia Fund
In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Canada Fund, Fidelity China Region Fund, Fidelity Emerging Markets Fund, Fidelity Europe Fund, Fidelity Japan Fund, Fidelity Japan Smaller Companies Fund, Fidelity Latin America Fund, Fidelity Nordic Fund, Fidelity Pacific Basin Fund and Fidelity Southeast Asia Fund (funds of Fidelity Investment Trust) at October 31, 2003 and the results of their operations, the changes in their net assets and the financial highlights for the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fidelity Investment Trust's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with auditing standards generally accepted in the United States of America which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at October 31, 2003 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
December 19, 2003
To the Trustees of Fidelity Investment Trust and Shareholders of Fidelity Europe Capital Appreciation Fund:
We have audited the accompanying statement of assets and liabilities of Fidelity Europe Capital Appreciation Fund (the Fund), a fund of Fidelity Investment Trust (the Trust), including the portfolio of investments, as of October 31, 2003, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2003, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Fidelity Europe Capital Appreciation Fund as of October 31, 2003, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and its financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
/s/DELOITTE & TOUCHE LLP
DELOITTE & TOUCHE LLP
Boston, Massachusetts
December 12, 2003
The Trustees, Members of the Advisory Board, and executive officers of the trust and funds, as applicable, are listed below. The Board of Trustees governs each fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee each fund's activities, review contractual arrangements with companies that provide services to each fund, and review each fund's performance. Except for William O. McCoy, each of the Trustees oversees 289 funds advised by FMR or an affiliate. Mr. McCoy oversees 291 funds advised by FMR or an affiliate.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. In any event, each non-interested Trustee shall retire not later than the last day of the calendar year in which his or her 72nd birthday occurs. The executive officers and Advisory Board Members hold office without limit in time, except that any officer and Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The funds' Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Interested Trustees*:
Correspondence intended for each Trustee who is an "interested person" (as defined in the 1940 Act) may be sent to 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation | |
Edward C. Johnson 3d (73)** | |
Year of Election or Appointment: 1984 Mr. Johnson is Chairman of the Board of Trustees. Mr. Johnson serves as Chief Executive Officer, Chairman, and a Director of FMR Corp.; a Director and Chairman of the Board and of the Executive Committee of FMR; Chairman and a Director of Fidelity Management & Research (Far East) Inc.; Chairman (1998) and a Director of Fidelity Investments Money Management, Inc.; and Chairman (2001) and a Director (2000) of FMR Co., Inc. | |
Abigail P. Johnson (41)** | |
Year of Election or Appointment: 2001 Senior Vice President of Canada (2001), China Region (2001), Emerging Markets (2001), Europe (2001), Europe Capital Appreciation (2001), Japan (2001), Japan Smaller Companies (2001), Latin America (2001), Nordic (2001), Pacific Basin (2001), and Southeast Asia (2001). Ms. Johnson also serves as Senior Vice President of other Fidelity funds (2001). She is President and a Director of FMR (2001), Fidelity Investments Money Management, Inc. (2001), FMR Co., Inc. (2001), and a Director of FMR Corp. Previously, Ms. Johnson managed a number of Fidelity funds. | |
Laura B. Cronin (49) | |
Year of Election or Appointment: 2003 Ms. Cronin is an Executive Vice President (2002) and Chief Financial Officer (2002) of FMR Corp. and is a member of the Fidelity Management Committee (2003). Previously, Ms. Cronin served as Vice President of Finance of FMR (1997-1999), and Chief Financial Officer of FMR (1999-2001), Fidelity Personal Investments (2001), and Fidelity Brokerage Company (2001-2002). | |
Robert L. Reynolds (51) | |
Year of Election or Appointment: 2003 Mr. Reynolds is a Director (2003) and Chief Operating Officer (2002) of FMR Corp. and is the head of the Fidelity Management Committee (2003). He also serves on the Board at Fidelity Investments Canada, Ltd. (2000). Previously, Mr. Reynolds served as President of Fidelity Investments Institutional Retirement Group (1996-2000). |
* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with FMR.
** Edward C. Johnson 3d, Trustee, is Abigail P. Johnson's father.
Non-Interested Trustees:
Correspondence intended for each non-interested Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Age; Principal Occupation | |
J. Michael Cook (61) | |
Year of Election or Appointment: 2001 Prior to Mr. Cook's retirement in May 1999, he served as Chairman and Chief Executive Officer of Deloitte & Touche LLP (accounting/consulting), Chairman of the Deloitte & Touche Foundation, and a member of the Board of Deloitte Touche Tohmatsu. He currently serves as a Director of Comcast (telecommunications, 2002), International Flavors & Fragrances, Inc. (2000), Rockwell Automation (2000) and The Dow Chemical Company (2000). He is a Member of the Diversity Advisory Council of Marakon (2003) and the Advisory Board of the Directorship Search Group, Chairman Emeritus of the Board of Catalyst (a leading organization for the advancement of women in business), and is Chairman of the Accountability Advisory Council to the Comptroller General of the United States. He also serves as a Member of the Advisory Board of the Graduate School of Business of the University of Florida, his alma mater. | |
Ralph F. Cox (71) | |
Year of Election or Appointment: 1991 Mr. Cox is President of RABAR Enterprises (management consulting for the petroleum industry). Prior to February 1994, he was President of Greenhill Petroleum Corporation (petroleum exploration and production). Until March 1990, Mr. Cox was President and Chief Operating Officer of Union Pacific Resources Company (exploration and production). He is a Director of CH2M Hill Companies (engineering), and Abraxas Petroleum (petroleum exploration and production, 1999). In addition, he is a member of advisory boards of Texas A&M University and the University of Texas at Austin. | |
Phyllis Burke Davis (71) | |
Year of Election or Appointment: 1992 Mrs. Davis is retired from Avon Products, Inc. (consumer products) where she held various positions including Senior Vice President of Corporate Affairs and Group Vice President of U.S. product marketing, sales, distribution, and manufacturing. Mrs. Davis is a member of the Board of Directors of the Southampton Hospital in Southampton, N.Y. (1998). Previously, she served as a Director of BellSouth Corporation (telecommunications), Eaton Corporation (diversified industrial), the TJX Companies, Inc. (retail stores), Hallmark Cards, Inc., and Nabisco Brands, Inc. | |
Robert M. Gates (60) | |
Year of Election or Appointment: 1997 Dr. Gates is President of Texas A&M University (2002). He was Director of the Central Intelligence Agency (CIA) from 1991 to 1993. From 1989 to 1991, Dr. Gates served as Assistant to the President of the United States and Deputy National Security Advisor. Dr. Gates is a Director of NACCO Industries, Inc. (mining and manufacturing), and Parker Drilling Co., Inc. (drilling and rental tools for the energy industry, 2001). He also serves as a member of the Advisory Board of VoteHere.net (secure internet voting, 2001). Previously, Dr. Gates served as a Director of LucasVarity PLC (automotive components and diesel engines), a Director of TRW Inc. (automotive, space, defense, and information technology), and Dean of the George Bush School of Government and Public Service at Texas A&M University (1999-2001). Dr. Gates also is a Trustee of the Forum for International Policy. | |
Donald J. Kirk (70) | |
Year of Election or Appointment: 1987 Mr. Kirk is a Governor of the American Stock Exchange (2001), a Trustee and former Chairman of the Board of Trustees of the Greenwich Hospital Association, a Director of the Yale-New Haven Health Services Corp. (1998), and a Director Emeritus and former Chairman of the Board of Directors of National Arts Strategies Inc. Mr. Kirk was an Executive-in-Residence (1995-2000) and a Professor (1987-1995) at Columbia University Graduate School of Business. Prior to 1987, he was Chairman of the Financial Accounting Standards Board. Previously, Mr. Kirk served as a Governor of the National Association of Securities Dealers, Inc. (1996-2002), a member and Vice Chairman of the Public Oversight Board of the American Institute of Certified Public Accountants' SEC Practice Section (1995-2002), a Director of General Re Corporation (reinsurance, 1987-1998) and as a Director of Valuation Research Corp. (appraisals and valuations). | |
Marie L. Knowles (57) | |
Year of Election or Appointment: 2001 Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. She currently serves as a Director of Phelps Dodge Corporation (copper mining and manufacturing), URS Corporation (multidisciplinary engineering, 1999), and McKesson Corporation (healthcare service, 2002). Ms. Knowles is a Trustee of the Brookings Institution and the Catalina Island Conservancy and also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California. | |
Ned C. Lautenbach (59) | |
Year of Election or Appointment: 2000 Mr. Lautenbach has been a partner of Clayton, Dubilier & Rice, Inc. (private equity investment firm) since September 1998. Previously, Mr. Lautenbach was with the International Business Machines Corporation (IBM) from 1968 until his retirement in 1998. He was most recently Senior Vice President and Group Executive of Worldwide Sales and Services. From 1993 to 1995, he was Chairman of IBM World Trade Corporation, and from 1994 to 1998 was a member of IBM's Corporate Executive Committee. Mr. Lautenbach serves as Chairman and as a Director (1998) of Acterna Corporation (communications test equipment). He is also Co-Chairman of Covansys, Inc. (global provider of business and technology solutions, 2000). In addition, he is a Director of Eaton Corporation (diversified industrial) and the Philharmonic Center for the Arts in Naples, Florida (1999). He also is a member of the Council on Foreign Relations. | |
Marvin L. Mann (70) | |
Year of Election or Appointment: 1993 Mr. Mann is Chairman of the non-interested Trustees (2001). He is Chairman Emeritus of Lexmark International, Inc. (computer peripherals) where he served as CEO until April 1998 and retired as Chariman May 1999, and remains a member of the Board. Prior to 1991, he held the positions of Vice President of International Business Machines Corporation (IBM) and President and General Manager of various IBM divisions and subsidiaries. Mr. Mann is a Board member of Imation Corp. (imaging and information storage) and Acterna Corporation (communications test equipment, 1999). He is also a member of the Director Services Committee of the Investment Company Institute. In addition, Mr. Mann is a member of the President's Cabinet at the University of Alabama and the Board of Visitors of the Culverhouse College of Commerce and Business Administration at the University of Alabama. | |
William O. McCoy (70) | |
Year of Election or Appointment: 1997 Prior to his retirement in December 1994, Mr. McCoy was Vice Chairman of the Board of BellSouth Corporation (telecommunications) and President of BellSouth Enterprises. He is currently a Director of Liberty Corporation (holding company), Duke Realty Corporation (real estate), Progress Energy, Inc. (electric utility), and Acterna Corporation (communications test equipment, 1999). He is also a partner of Franklin Street Partners (private investment management firm) and a member of the Research Triangle Foundation Board. In addition, Mr. McCoy served as the Interim Chancellor (1999-2000) and a member of the Board of Visitors (1994-1998) for the University of North Carolina at Chapel Hill and currently serves on the Board of Directors of the University of North Carolina Health Care System and the Board of Visitors of the Kenan-Flagler Business School (University of North Carolina at Chapel Hill). He also served as Vice President of Finance for the University of North Carolina (16-school system, 1995-1998). | |
William S. Stavropoulos (64) | |
Year of Election or Appointment: 2001 Mr. Stavropoulos is Chairman of the Board, President and CEO (2002), and Chairman of the Executive Committee (2000) and a Director of The Dow Chemical Company. Since joining The Dow Chemical Company in 1967, Mr. Stavropoulos served in numerous senior management positions, including President (1993-2000) and Chief Executive Officer (1995-2000). Currently, he is a Director of NCR Corporation (data warehousing and technology solutions), BellSouth Corporation (telecommunications), Chemical Financial Corporation, and Maersk Inc. (industrial conglomerate, 2002). He also serves as a member of the Board of Trustees of the American Enterprise Institute for Public Policy Research. In addition, Mr. Stavropoulos is a member of The Business Council, J.P. Morgan International Council, World Business Council for Sustainable Development, and the University of Notre Dame Advisory Council for the College of Science. |
Advisory Board Members and Executive Officers:
Correspondence intended for Dr. Heilmeier may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for each executive officer and Mr. Lynch may be sent to 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation | |
George H. Heilmeier (67) | |
Year of Election or Appointment: 2003 Member of the Advisory Board of Fidelity Investment Trust. Dr. Heilmeier is Chairman Emeritus of Telcordia Technologies (communication software and systems), where prior to his retirement, he served as company Chairman and Chief Executive Officer. He currently serves on the Boards of Directors of The Mitre Corporation (systems engineering and information technology support for the government), INET Technologies Inc. (telecommunications network surveillance, 2001) and Teletech Holdings (customer management services, 1998). He is Chairman of the General Motors Technology Advisory Committee and a Life Fellow of the IEEE (2000). Dr. Heilmeier is a member of the Defense Science Board and the National Security Agency Advisory Board. He is also a member of the National Academy of Engineering, the American Academy of Arts and Sciences and The Board of Overseers of the School of Engineering and Applied Science of the University of Pennsylvania. Previously, Dr. Heilmeier served as a Director of TRW Inc. (automotive, space, defense, and information technology, 1992-2002) and Compaq (1994-2002). | |
Peter S. Lynch (60) | |
Year of Election or Appointment: 2003 Member of the Advisory Board of Fidelity Investment Trust. Vice Chairman and a Director of FMR, and Vice Chairman (2001) and a Director (2000) of FMR Co., Inc. Previously, Mr. Lynch served as a Trustee of the Fidelity funds (1990-2003). Prior to May 31, 1990, he was a Director of FMR and Executive Vice President of FMR (a position he held until March 31, 1991), Vice President of Fidelity Magellan Fund and FMR Growth Group Leader, and Managing Director of FMR Corp. Mr. Lynch was also Vice President of Fidelity Investments Corporate Services. In addition, he serves as a Trustee of Boston College, Massachusetts Eye & Ear Infirmary, Historic Deerfield, John F. Kennedy Library, and the Museum of Fine Arts of Boston. | |
Philip L. Bullen (44) | |
Year of Election or Appointment: 2001 Vice President of Canada, China Region, Emerging Markets, Europe, Europe Capital Appreciation, Japan, Japan Smaller Companies, Latin America, Nordic, Pacific Basin, and Southeast Asia. Mr. Bullen also serves as Vice President of certain Equity Funds (2001) and certain High Income Funds (2001). He is Senior Vice President of FMR (2001) and FMR Co., Inc. (2001), President and a Director of Fidelity Management & Research (Far East) Inc. (2001), President and a Director of Fidelity Management & Research (U.K.) Inc. (2002), and a Director of Strategic Advisers, Inc. (2002). Before joining Fidelity Investments, Mr. Bullen was President and Chief Investment Officer of Santander Global Advisors (1997-2000) and President and Chief Executive Officer of Boston's Baring Asset Management Inc. (1994-1997). | |
John Carlson (53) | |
Year of Election or Appointment: 2001 Vice President of Emerging Markets. Prior to his current responsibilities, Mr. Carlson managed a variety of Fidelity funds. | |
Ian R. Hart (36) | |
Year of Election or Appointment: 2001 Vice President of Europe Capital Appreciation. Prior to his current responsibilities, Mr. Hart served as as an equity analyst covering international securities for FMR. | |
Allan Liu (42) | |
Year of Election or Appointment: 1995 Vice President of Southeast Asia. Prior to his current responsibilities, Mr. Liu managed a variety of Fidelity funds. | |
Eric D. Roiter (54) | |
Year of Election or Appointment: 1998 Secretary of Canada, China Region, Emerging Markets, Europe, Europe Capital Appreciation, Japan, Japan Smaller Companies, Latin America, Nordic, Pacific Basin, and Southeast Asia. He also serves as Secretary of other Fidelity funds (1998); Vice President, General Counsel, and Clerk of FMR Co., Inc. (2001) and FMR (1998); Vice President and Clerk of FDC (1998); Assistant Clerk of Fidelity Management & Research (U.K.) Inc. (2001) and Fidelity Management & Research (Far East) Inc. (2001); and Assistant Secretary of Fidelity Investments Money Management Inc. (2001). Prior to joining Fidelity, Mr. Roiter was with the law firm of Debevoise & Plimpton, as an associate (1981-1984) and as a partner (1985-1997), and served as an Assistant General Counsel of the U.S. Securities and Exchange Commission (1979-1981). Mr. Roiter is an Adjunct Member, Faculty of Law, at Boston College Law School (2003). | |
Stuart Fross (44) | |
Year of Election or Appointment: 2003 Assistant Secretary of Canada, China Region, Emerging Markets, Europe, Europe Capital Appreciation, Japan, Japan Smaller Companies, Latin America, Nordic, Pacific Basin, and Southeast Asia. Mr. Fross also serves as Assistant Secretary of other Fidelity funds (2003) and is an employee of FMR. | |
Maria F. Dwyer (44) | |
Year of Election or Appointment: 2002 President and Treasurer of Canada, China Region, Emerging Markets, Europe, Europe Capital Appreciation, Japan, Japan Smaller Companies, Latin America, Nordic, Pacific Basin, and Southeast Asia. Ms. Dwyer also serves as President and Treasurer of other Fidelity funds (2002) and is a Vice President (1999) and an employee (1996) of FMR. Prior to joining Fidelity, Ms. Dwyer served as Director of Compliance for MFS Investment Management. | |
Timothy F. Hayes (52) | |
Year of Election or Appointment: 2002 Chief Financial Officer of Canada, China Region, Emerging Markets, Europe, Europe Capital Appreciation, Japan, Japan Smaller Companies, Latin America, Nordic, Pacific Basin, and Southeast Asia. Mr. Hayes also serves as Chief Financial Officer of other Fidelity funds (2002). Recently he was appointed President of Fidelity Service Company (2003) where he also serves as a Director. Mr. Hayes also serves as President of Fidelity Investments Operations Group (FIOG, 2002), which includes Fidelity Pricing and Cash Management Services Group (FPCMS), where he was appointed President in 1998. Previously, Mr. Hayes served as Chief Financial Officer of Fidelity Investments Corporate Systems and Service Group (1998) and Fidelity Systems Company (1997-1998). | |
John R. Hebble (46) | |
Year of Election or Appointment: 2003 Deputy Treasurer of Canada, China Region, Emerging Markets, Europe, Europe Capital Appreciation, Japan, Japan Smaller Companies, Latin America, Nordic, Pacific Basin, and Southeast Asia. Mr. Hebble also serves as Deputy Treasurer of other Fidelity funds (2003), and is an employee of FMR. Before joining Fidelity Investments, Mr. Hebble worked at Deutsche Asset Management where he served as Director of Fund Accounting (2002-2003) and Assistant Treasurer of the Scudder Funds (1998-2003). | |
John H. Costello (57) | |
Year of Election or Appointment: 1986, 1987, 1990, 1992, 1993, or 1995 Assistant Treasurer of Canada (1987), China Region (1995), Emerging Markets (1990), Europe (1986), Europe Capital Appreciation (1993), Japan (1992), Japan Smaller Companies (1995), Latin America (1993), Nordic (1995), Pacific Basin (1986), and Southeast Asia (1993). Mr. Costello also serves as Assistant Treasurer of other Fidelity funds and is an employee of FMR. | |
Francis V. Knox, Jr. (56) | |
Year of Election or Appointment: 2002 Assistant Treasurer of Canada, China Region, Emerging Markets, Europe, Europe Capital Appreciation, Japan, Japan Smaller Companies, Latin America, Nordic, Pacific Basin, and Southeast Asia. Mr. Knox also serves as Assistant Treasurer of other Fidelity funds (2002), and is a Vice President and an employee of FMR. Previously, Mr. Knox served as Vice President of Investment & Advisor Compliance (1990-2001), and Compliance Officer of Fidelity Management & Research (U.K.) Inc. (1992-2002), Fidelity Management & Research (Far East) Inc. (1991-2002), and FMR Corp. (1995-2002). | |
Mark Osterheld (48) | |
Year of Election or Appointment: 2002 Assistant Treasurer of Canada, China Region, Emerging Markets, Europe, Europe Capital Appreciation, Japan, Japan Smaller Companies, Latin America, Nordic, Pacific Basin, and Southeast Asia. Mr. Osterheld also serves as Assistant Treasurer of other Fidelity funds (2002) and is an employee of FMR. | |
Thomas J. Simpson (45) | |
Year of Election or Appointment: 2000 Assistant Treasurer of Canada, China Region, Emerging Markets, Europe, Europe Capital Appreciation, Japan, Japan Smaller Companies, Latin America, Nordic, Pacific Basin, and Southeast Asia. Mr. Simpson is Assistant Treasurer of other Fidelity funds (2000) and an employee of FMR (1996). Prior to joining FMR, Mr. Simpson was Vice President and Fund Controller of Liberty Investment Services (1987-1995). |
The amounts per share which represent income derived from sources within, and taxes paid to, foreign countries or possessions of the United States are as follows:
Fund | Pay Date | Income | Taxes |
Canada | 12/09/02 | $.085 | $.045 |
China Region | 12/09/02 | $.208 | $.018 |
Emerging Markets | 12/16/02 | $.074 | $.024 |
Europe | 12/09/02 | $.163 | $.023 |
Latin America | 12/16/02 | $.193 | $.023 |
Nordic | 12/16/02 | $.14 | $.02 |
Southeast Asia | 12/09/02 | $.116 | $.036 |
The funds will notify shareholders in January 2004 of amounts for use in preparing 2003 income tax returns.
Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.
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TIF-UANNPRO-1203
1.784781.100
Fidelity Advisor
International Small Cap
Fund - Institutional Class
Annual Report
October 31, 2003
(2_fidelity_logos) (Registered_Trademark)
Institutional Class is a class of
Fidelity® International Small Cap Fund
Contents
Chairman's Message | 3 | Ned Johnson's message to shareholders. |
Performance | 4 | How the fund has done over time. |
Management's Discussion | 5 | The managers' review of fund performance, strategy and outlook. |
Investment Summary | 6 | A summary of the fund's investments. |
Investments | 8 | A complete list of the fund's investments with their market values. |
Financial Statements | 19 | Statements of assets and liabilities, operations, and changes in net assets, |
Notes | 29 | Notes to the financial statements. |
Auditors' Opinion | 38 | |
Trustees and Officers | 39 | |
Distributions | 48 | |
For a free copy of the fund's proxy voting guidelines call 1-877-208-0098 or visit the Securities and Exchange Commission (SEC)'s web site at www.sec.gov.
Third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR Corp. or an affiliated company.
(Recycle graphic) This report is printed on recycled paper using soy-based inks.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
Mutual fund shares are not deposits or obligations of, or guaranteed by, any depository institution. Shares are not insured by the FDIC, Federal Reserve Board or any other agency, and are subject to investment risks, including possible loss of principal amount invested.
Neither the fund nor Fidelity Distributors Corporation is a bank.
For more information on any Fidelity Advisor fund, including charges and expenses, contact your investment professional for a free prospectus. Read it carefully before you invest or send money.
Annual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
Many of you have read or heard news stories recently that were critical of mutual funds and made allegations that the mutual fund industry has been less than forthright. I find these reports unsettling and not necessarily an accurate picture of the overall industry, and I would like you to know where we at Fidelity stand.
With specific regard to allegations that certain mutual fund companies were violating the Securities and Exchange Commission's forward pricing rules or were involved in so-called "market timing" activities, I want to say two things:
First, Fidelity does not have agreements that permit customers who buy fund shares after 4 p.m. to obtain the 4 p.m. price. This is not to say that someone could not deceive the company through fraudulent acts. But I underscore that we have no so-called "agreements" which would permit this illegal practice.
Second, Fidelity has been on record for years opposing predatory short-term trading which adversely affects other shareholders in a mutual fund. In fact, in the 1980s, we began charging a fee - which is returned to the fund and, therefore, to investors - to discourage this activity. What's more, several years ago we took the industry lead in developing a Fair Value Pricing Policy to prevent market timing on foreign securities in our funds. It is reasonable to assume that another structure can be developed that would alter the system to make it much more difficult for predatory traders to operate. This, however, will only be achieved through close cooperation among regulators, legislators and the industry.
Certainly no industry is perfect, and there have been instances of unethical and illegal activity from time to time within the mutual fund industry. When this occurs, confessed or convicted offenders should be dealt with appropriately. Clearly, every system can be improved. We applaud well thought out improvements by regulators, legislators and industry representatives that achieve the common goal of building and protecting the value of investors' holdings. But we remain concerned about the risk of over-regulation and the quick application of simplistic solutions to intricate problems.
For more than 57 years, Fidelity Investments has worked very hard to improve its products and service to justify your trust. When our family founded this company in 1946, we had only a few hundred customers. Many of them were family and friends. Today, we serve more than 18 million customers including individual investors and participants in retirement plans across America.
Let me close by saying that we do not take your trust in us for granted, and we realize that we must always work to improve all aspects of our service to you. In turn, we urge you to continue your active participation with your financial matters, so that your interests can be well served.
Annual Report
Best regards,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Annual Report
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value) and assuming a constant rate of performance each year. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended October 31, 2003 | Past 1 | Life of | ||
Institutional Class B | 79.88% | 67.10% |
A From September 18, 2002.
B The initial offering of Institutional Class shares took place on May 27, 2003. Returns prior to May 27, 2003 are those of International Small Cap, the original class of the fund.
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity Advisor International Small Cap Fund - Institutional Class on September 18, 2002, when the fund started. The chart shows how the value of your investment would have grown, and also shows how the MSCI® EAFE® Small Cap Index did over the same period.
Annual Report
Management's Discussion of Fund Performance
Comments from L.C. Kvaal and Tokuya Sano, Co-Portfolio Managers of Fidelity Advisor International Small Cap Fund
Mirroring the U.S. rally, most international stock markets rebounded sharply during the 12-month period ending October 31, 2003. Encouraged by improved corporate earnings, favorable interest rates and the easing of geopolitical tensions, the Morgan Stanley Capital InternationalSM Europe, Australasia, Far East (MSCI® EAFE®) Index - a proxy for stock markets outside the United States and Canada - gained 27.39% during the past year. From a regional perspective, all 16 countries in the MSCI Europe index - which gained 24.56% - had double-digit advances. Spain, Denmark and Sweden were among the region's best performers. In Japan, increased capital spending, exports and machinery orders helped the Tokyo Stock Exchange Stock Price Index (TOPIX) advance 36.39%. Following the SARS epidemic, other Asian markets also rebounded. For instance, the Hong Kong market, as measured by the Hang Seng Index, gained 34.51%. Emerging markets also fared well, particularly Latin America. The MSCI Emerging Markets Free Latin America Index rose 59.75%. Canadian equities, as measured by the S&P/TSX Composite Index, also posted an impressive annual gain, advancing 50.66%.
For the 12 months ending October 31, 2003, the fund's Institutional Class shares returned 79.88%, far surpassing the 54.73% return of the Morgan Stanley Capital International Europe, Australasia, Far East Small Cap Index. The fund also beat the 47.55% return of the LipperSM International Small Cap Funds Average. Favorable stock selection, particularly in Germany and Japan, was the driving force behind the fund's outperformance. Hyrican Informationssysteme - a German private-label personal computer (PC) assembler - was our top contributor both in absolute terms and compared with the index. The company benefited from healthy demand for PCs and its ability to grow market share. Japan-based NOK - the largest maker of flexible circuit boards in the world - also helped our results. The top detractor relative to the index was Nissin Kogyo, a Japanese auto parts company whose stock price was hurt by weak auto sales in the United States and Japan. Oystertec, a U.K.-based developer of pipe-joining technology, also held back performance, as weak demand forced the company to close a number of production sites in late 2002 and early 2003.
The views expressed in this statement reflect those of the portfolio manager only through the end of the period of the report as stated on the cover and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Investment Summary
Geographic Diversification (% of fund's net assets) | |||
As of October 31, 2003 | |||
Japan 29.3% | |||
United Kingdom 14.8% | |||
United States of America 13.4% | |||
Germany 10.7% | |||
Australia 6.4% | |||
Sweden 3.6% | |||
Hong Kong 3.5% | |||
France 2.5% | |||
Greece 2.5% | |||
Other 13.3% |
Percentages are adjusted for the effect of futures contracts, if applicable. |
As of April 30, 2003 | |||
Japan 27.8% | |||
United Kingdom 22.6% | |||
United States of America 7.7% | |||
Germany 7.6% | |||
Australia 7.2% | |||
Switzerland 3.8% | |||
Hong Kong 3.4% | |||
Finland 3.2% | |||
Norway 3.0% | |||
Other 13.7% |
Percentages are adjusted for the effect of futures contracts, if applicable. |
Asset Allocation | ||
% of fund's | % of fund's net assets | |
Stocks | 87.0 | 92.8 |
Bonds | 0.0 | 0.2 |
Short-Term Investments and Net Other Assets | 13.0 | 7.0 |
Top Ten Stocks as of October 31, 2003 | ||
% of fund's | % of fund's net assets | |
MobilCom AG (Germany, Wireless Telecommunication Services) | 4.0 | 0.0 |
Toyoda Gosei Co. Ltd. (Japan, Auto Components) | 1.5 | 0.3 |
NOK Corp. (Japan, Auto Components) | 1.4 | 2.3 |
Fujikura Ltd. (Japan, Electrical Equipment) | 1.4 | 0.9 |
Draegerwerk AG (non-vtg.) (Germany, Health Care Equipment & Supplies) | 1.2 | 0.0 |
Germanos SA (Greece, Specialty Retail) | 1.1 | 0.2 |
ARRK Corp. (Japan, Commercial Services & Supplies) | 1.1 | 1.5 |
Australian Stock Exchange Ltd. (Australia, Diversified Financial Services) | 1.1 | 1.3 |
Pacific Metals Co. Ltd. (Japan, Metals & Mining) | 1.0 | 0.0 |
QBE Insurance Group Ltd. (Australia, Insurance) | 1.0 | 1.3 |
14.8 | ||
Market Sectors as of October 31, 2003 | ||
% of fund's | % of fund's net assets | |
Consumer Discretionary | 19.9 | 24.5 |
Information Technology | 16.5 | 20.8 |
Industrials | 14.0 | 12.8 |
Financials | 12.8 | 11.3 |
Health Care | 8.4 | 13.5 |
Materials | 7.3 | 5.4 |
Telecommunication Services | 5.0 | 0.6 |
Consumer Staples | 2.4 | 2.2 |
Energy | 0.6 | 1.3 |
Utilities | 0.1 | 0.6 |
Annual Report
Investments October 31, 2003
Showing Percentage of Net Assets
Common Stocks - 85.0% | |||
Shares | Value (Note 1) | ||
Australia - 6.4% | |||
Amcor Ltd. | 539,933 | $ 3,248,169 | |
Australian Stock Exchange Ltd. | 520,006 | 5,888,548 | |
BHP Steel Ltd. | 1,300,971 | 4,990,531 | |
Boral Ltd. | 1,403,888 | 5,464,810 | |
Centamin Egypt Ltd. (a) | 760,127 | 172,265 | |
Corporate Express Australia Ltd. | 1,179,852 | 4,876,635 | |
Patrick Corp. Ltd. | 63,631 | 657,509 | |
QBE Insurance Group Ltd. | 777,796 | 5,669,997 | |
Stockland | 303,531 | 1,041,897 | |
Westpac Banking Corp. | 305,505 | 3,491,972 | |
TOTAL AUSTRALIA | 35,502,333 | ||
Belgium - 0.1% | |||
Melexis NV | 70,000 | 764,693 | |
China - 0.2% | |||
Aluminum Corp. of China Ltd. (H Shares) | 2,662,000 | 1,371,175 | |
PICC Property & Casualty Co. Ltd. (H Shares) | 122,000 | 28,564 | |
TOTAL CHINA | 1,399,739 | ||
Denmark - 1.3% | |||
Bang & Olufsen AS Series B | 11,121 | 429,790 | |
Coloplast AS Series B | 6,300 | 528,183 | |
DSV de Sammensluttede Vognmaend AS | 28,767 | 1,008,645 | |
Group 4 Falck AS | 42,145 | 942,452 | |
Kompan AS Class B | 8,171 | 835,079 | |
Radiometer AS Series B | 10,704 | 644,699 | |
SimCorp AS | 40,852 | 1,476,939 | |
Vestas Wind Systems AS | 67,018 | 1,404,672 | |
TOTAL DENMARK | 7,270,459 | ||
Estonia - 0.2% | |||
Hansabank SA | 42,132 | 956,145 | |
Finland - 1.8% | |||
Aldata Solutions Oyj (a) | 1,178,010 | 2,742,978 | |
Alma Media Corp. | 33,255 | 1,171,137 | |
Capman Oyj (A Shares) | 176,777 | 362,474 | |
Elcoteq Network Corp. (A Shares) | 60,974 | 1,030,569 | |
Finnlines Oyj | 24,877 | 786,752 | |
Hackman Oyj AB (A Shares) | 24,120 | 915,094 | |
Nokian Tyres Ltd. | 7,828 | 582,732 | |
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
Finland - continued | |||
Novo Group Oyj | 147,320 | $ 827,715 | |
Vacon Oyj | 120,250 | 1,418,111 | |
TOTAL FINLAND | 9,837,562 | ||
France - 2.5% | |||
Generale de Sante | 206,371 | 2,462,426 | |
Groupe Bourbon SA | 10,540 | 900,492 | |
Groupe Open SA | 14,809 | 445,185 | |
Groupe Open SA warrants 10/21/06 (a) | 14,809 | 9,092 | |
Hubwoo.com (a) | 12,668 | 39,770 | |
Infovista SA (a) | 37,551 | 93,092 | |
Inter Parfums SA | 8,534 | 533,855 | |
Ipsos SA | 11,694 | 983,506 | |
JET Multimedia SA (a) | 103,878 | 1,919,383 | |
Lectra (a) | 60,300 | 468,724 | |
Medidep SA (a) | 40,169 | 800,381 | |
Orpea (a) | 34,953 | 554,731 | |
SR Teleperformance SA | 49,895 | 945,044 | |
Stallergenes | 6,245 | 274,912 | |
Stedim SA | 37,663 | 2,172,809 | |
Toupargel-Agrigel | 1,727 | 115,037 | |
Trigano SA | 35,799 | 1,532,781 | |
TOTAL FRANCE | 14,251,220 | ||
Germany - 8.7% | |||
Advanced Photonics Technologies AG (a) | 44,139 | 107,890 | |
Bijou Brigitte Modische Accessoires AG | 14,898 | 602,325 | |
Continental AG | 41,066 | 1,389,129 | |
DAB Bank AG (a) | 65,900 | 540,500 | |
Deutsche Boerse AG | 12,778 | 707,864 | |
ElringKlinger AG | 16,686 | 1,420,747 | |
Freenet.de AG (a) | 97,516 | 5,648,371 | |
Fresenius AG | 27,796 | 1,992,875 | |
Fresenius Medical Care AG | 20,764 | 1,179,851 | |
Grenkeleasing AG | 104,052 | 2,193,811 | |
Hyrican Informationssysteme AG | 190,599 | 3,157,432 | |
Kontron AG (a) | 176,464 | 1,236,770 | |
Merck KGaA | 43,541 | 1,519,759 | |
MobilCom AG (a) | 1,636,952 | 22,452,512 | |
Pfeiffer Vacuum Technology AG | 20,648 | 686,255 | |
Pulsion Medical Systems AG (a) | 132,565 | 359,354 | |
Pulsion Medical Systems AG (a)(e) | 24,300 | 65,872 | |
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
Germany - continued | |||
REPower Systems AG | 30,113 | $ 605,244 | |
Rheinmetall AG | 17,348 | 532,163 | |
United Internet AG | 77,781 | 1,627,304 | |
Zapf Creation AG (a) | 14,400 | 444,734 | |
TOTAL GERMANY | 48,470,762 | ||
Greece - 2.5% | |||
Autohellas SA | 23,308 | 194,408 | |
Folli Follie SA | 67,292 | 1,571,561 | |
Germanos SA | 293,797 | 6,330,494 | |
Greek Organization of Football Prognostics SA | 77,010 | 945,650 | |
Hellenic Exchanges Holding SA (a) | 465,639 | 3,085,480 | |
Hyatt Regency SA (Reg.) | 158,024 | 1,365,649 | |
Public Power Corp. of Greece | 25,100 | 539,089 | |
TOTAL GREECE | 14,032,331 | ||
Hong Kong - 3.5% | |||
ASM Pacific Technology Ltd. | 659,000 | 2,465,225 | |
China Insurance International Holdings Co. Ltd. | 6,762,000 | 4,527,969 | |
China Merchants Holdings International Co. Ltd. | 3,330,000 | 4,502,550 | |
China Pharmaceutical Enterprise and Investment Corp. Ltd. | 10,720,000 | 3,658,185 | |
Hang Lung Group Ltd. | 251,000 | 323,220 | |
JCG Holdings Ltd. | 952,000 | 717,163 | |
Kingboard Chemical Holdings Ltd. | 2,586,000 | 3,463,274 | |
TOTAL HONG KONG | 19,657,586 | ||
Ireland - 0.7% | |||
IAWS Group PLC (Ireland) | 38,059 | 405,623 | |
ICON PLC sponsored ADR (a) | 23,746 | 1,015,142 | |
Independent News & Media PLC (Ireland) | 738,870 | 1,609,175 | |
Kingspan Group PLC (Ireland) | 143,001 | 621,223 | |
Paddy Power PLC | 18,797 | 137,838 | |
TOTAL IRELAND | 3,789,001 | ||
Italy - 0.6% | |||
Amplifon Spa | 43,750 | 1,120,076 | |
Cassa Di Risparmio Di Firenze | 1,414,768 | 2,187,982 | |
TOTAL ITALY | 3,308,058 | ||
Japan - 29.3% | |||
Able, Inc. | 133,700 | 3,769,965 | |
Amiyaki Tei Co. Ltd. (a) | 436 | 1,340,440 | |
ARRK Corp. | 94,700 | 6,305,294 | |
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
Japan - continued | |||
Asahi Broadcasting Corp. | 26,340 | $ 1,593,242 | |
Bank of Yokohama Ltd. | 228,000 | 985,083 | |
Capcom Co. Ltd. | 111,800 | 1,444,024 | |
Chugoku Marine Paints Ltd. | 17,000 | 77,779 | |
Citizen Electronics Co. Ltd. | 28,100 | 2,632,618 | |
CMK Corp. | 2,000 | 16,573 | |
Crymson Co. Ltd. | 268 | 753,247 | |
Culture Convenience Club Co. Ltd. | 52,200 | 497,595 | |
Drake Beam Morin Japan, Inc. | 135,400 | 3,460,742 | |
Enplas Corp. | 5,000 | 166,000 | |
Faith, Inc. | 257 | 2,092,186 | |
Fuji Seal, Inc. | 129,900 | 4,537,165 | |
Fuji Soft ABC, Inc. | 86,800 | 2,629,107 | |
Fuji Spinning Co. Ltd. (a) | 1,826,000 | 1,959,869 | |
Fujikura Ltd. | 1,265,000 | 7,605,648 | |
Globaly Corp. | 500 | 12,734 | |
H.I.S. Co. Ltd. | 46,400 | 970,711 | |
Heian Ceremony Service Co. Ltd. | 112,000 | 601,055 | |
Hitachi Medical Corp. | 6,000 | 69,911 | |
Hogy Medical Co. | 30,600 | 1,500,218 | |
Horiba Ltd. | 163,000 | 1,779,152 | |
House of Rose Co. Ltd. | 18,100 | 181,099 | |
Iriso Electronics Co. Ltd. | 149,000 | 1,897,398 | |
Japan Medical Dynamic Marketing, Inc. | 67,800 | 955,885 | |
Japan Radio Co. Ltd. (a) | 202,000 | 977,479 | |
Jastec Co. Ltd. | 85,400 | 1,422,298 | |
Kahma Co. Ltd. | 50,900 | 412,052 | |
Kibun Food Chemifa Co. Ltd. | 261,000 | 2,628,042 | |
Kobe Steel Ltd. Ord. (a) | 1,500,000 | 1,923,777 | |
Komehyo Co. Ltd. | 2,000 | 67,128 | |
Konica Minolta Holdings, Inc. | 305,500 | 4,015,349 | |
Kura Corp. Ltd. | 202 | 790,067 | |
Matsui Securities Co. Ltd. | 34,500 | 828,452 | |
Mitsui Trust Holdings, Inc. | 445,000 | 2,367,882 | |
Murata Manufacturing Co. Ltd. | 26,200 | 1,489,449 | |
New Japan Radio Co. Ltd. | 34,000 | 451,828 | |
Nichii Gakkan Co. | 96,770 | 5,263,640 | |
Nidec Corp. | 29,700 | 2,877,069 | |
Nihon Dempa Kogyo Co. Ltd. | 269,600 | 5,468,510 | |
Nippon Light Metal Co. Ltd. | 1,416,000 | 3,644,970 | |
Nippon Mining Holdings, Inc. | 138,000 | 504,602 | |
Nippon Sheet Glass Co. Ltd. | 273,000 | 839,312 | |
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
Japan - continued | |||
Nippon Thompson Co. Ltd. | 3,000 | $ 19,975 | |
Nissin Co. Ltd. | 133,600 | 498,235 | |
Nissin Kogyo Co. Ltd. | 174,000 | 3,750,955 | |
NOK Corp. | 205,000 | 8,073,949 | |
NTN Corp. | 123,000 | 641,068 | |
Osaki Electric Co. Ltd. | 48,000 | 249,300 | |
Pacific Metals Co. Ltd. (a) | 1,199,000 | 5,714,717 | |
Pigeon Corp. | 52,000 | 622,922 | |
Rohto Pharmaceutical Co. Ltd. | 75,000 | 621,475 | |
Salomon & Taylor Made Co. Ltd. | 26,000 | 198,181 | |
Sanken Electric Co. Ltd. | 306,000 | 3,392,887 | |
Sankyo Aluminum Industry Co. Ltd. | 1,204,000 | 4,457,231 | |
Scinex Corp. (a)(d) | 1,000 | 6,367 | |
Senshukai Co. Ltd. | 320,000 | 3,920,684 | |
Siix Corp. | 23,900 | 470,652 | |
SKY Perfect Communications, Inc. (a) | 489 | 596,016 | |
Sodick Co. Ltd. (a) | 504,000 | 3,722,467 | |
Stanley Electric Co. Ltd. | 194,000 | 4,129,161 | |
Sumitomo Corp. | 722,000 | 5,010,787 | |
Sumitomo Metal Mining Co. Ltd. | 455,000 | 3,120,520 | |
Sumitomo Mitsui Financial Group, Inc. | 811 | 4,079,343 | |
Suncall Corp. | 124,000 | 744,406 | |
Taiheiyo Cement Corp. | 80,000 | 197,926 | |
Takeuchi Manufacturing Co. Ltd. | 93,500 | 3,146,716 | |
Tokyo Ohka Kogyo Co. Ltd. | 9,600 | 174,641 | |
Tokyo Seimitsu Co. Ltd. | 51,600 | 1,614,553 | |
Toyo Ink Manufacturing Co. Ltd. | 377,000 | 1,399,090 | |
Toyo Kohan Co. Ltd. | 73,000 | 204,512 | |
Toyo Machinery & Metal Co. Ltd. | 149,000 | 1,223,822 | |
Toyoda Gosei Co. Ltd. | 282,700 | 8,357,058 | |
Tsumura & Co. (a) | 78,000 | 814,481 | |
Ube Industries Ltd. | 360,000 | 772,785 | |
USS Co. Ltd. | 31,070 | 2,207,174 | |
Works Applications Co. Ltd. (a) | 195 | 947,153 | |
Yamada Denki Co. Ltd. | 39,100 | 1,244,770 | |
Yamato Transport Co. Ltd. | 118,000 | 1,568,110 | |
TOTAL JAPAN | 163,720,735 | ||
Korea (South) - 0.7% | |||
Pulmuone Co. Ltd. | 30,520 | 1,387,389 | |
SKC Co. Ltd. | 187,810 | 2,618,389 | |
TOTAL KOREA (SOUTH) | 4,005,778 | ||
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
Liechtenstein - 0.3% | |||
Verwaltungs-und Privat-Bank AG | 13,770 | $ 1,797,516 | |
Luxembourg - 0.7% | |||
SBS Broadcasting SA (a) | 52,789 | 1,496,040 | |
Stolt-Nielsen SA | 260,573 | 2,226,478 | |
TOTAL LUXEMBOURG | 3,722,518 | ||
Netherlands - 1.7% | |||
Airspray NV | 5,933 | 116,842 | |
Buhrmann NV (a) | 62,251 | 555,283 | |
Completel Europe NV (a) | 64,996 | 1,731,776 | |
Exact Holdings NV (a) | 34,856 | 847,958 | |
Fugro NV (Certificaten Van Aandelen) | 4,587 | 229,822 | |
Hunter Douglas NV | 8,820 | 329,004 | |
Koninklijke Nedlloyd NV | 60,113 | 1,931,059 | |
Ordina NV | 68,223 | 711,296 | |
PinkRoccade NV | 90,416 | 1,066,278 | |
Van der Moolen Holding NV | 39,782 | 341,954 | |
Vedior NV (Certificaten Van Aandelen) | 99,922 | 1,435,358 | |
TOTAL NETHERLANDS | 9,296,630 | ||
New Zealand - 0.1% | |||
The Warehouse Group Ltd. | 154,961 | 542,068 | |
Norway - 1.8% | |||
ABG Sundal Collier ASA | 2,146,083 | 1,403,596 | |
Bolig- og Naeringsbanken ASA | 18,185 | 556,308 | |
Gresvig AS (a) | 292,290 | 1,040,105 | |
Komplett ASA | 13,600 | 328,054 | |
Kverneland ASA | 51,809 | 521,019 | |
Norman ASA | 38,400 | 322,710 | |
Orkla ASA (A Shares) | 54,614 | 1,138,784 | |
P4 Radio Hele Norge ASA (a) | 141,400 | 83,530 | |
Tandberg ASA (a) | 152,405 | 1,067,508 | |
TANDBERG Data ASA (a) | 140,300 | 351,253 | |
Tandberg Storage ASA (a) | 140,300 | 29,600 | |
TANDBERG Television ASA (a) | 496,592 | 1,857,907 | |
TGS Nopec Geophysical Co. ASA (a) | 103,930 | 1,162,119 | |
TOTAL NORWAY | 9,862,493 | ||
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
Singapore - 0.7% | |||
Singapore Exchange Ltd. | 1,500,000 | $ 1,431,446 | |
Venture Corp. Ltd. | 216,000 | 2,346,881 | |
TOTAL SINGAPORE | 3,778,327 | ||
South Africa - 0.0% | |||
Discovery Holdings Ltd. (a) | 2,500 | 3,665 | |
Wilson Bayly Holmes-Ovcon Ltd. | 1,300 | 2,548 | |
TOTAL SOUTH AFRICA | 6,213 | ||
Spain - 0.5% | |||
Corporacion Mapfre SA (Reg.) | 180,201 | 2,237,841 | |
Recoletos Grupo de Comunicacion SA | 77,043 | 589,053 | |
TOTAL SPAIN | 2,826,894 | ||
Sweden - 3.6% | |||
Audio Development Informationsteknik i Malmo AB (AudioDev) (B Shares) | 35,817 | 202,113 | |
Bilia AB (A Shares) | 171,387 | 1,969,261 | |
Eniro AB | 99,565 | 794,456 | |
Hexagon AB (B Shares) | 22,871 | 540,182 | |
Lindex AB | 14,900 | 433,715 | |
Lundin Petroleum AB (a) | 576,250 | 1,383,094 | |
Micronic Laser Systems AB (a) | 11,808 | 95,727 | |
Modern Times Group AB (MTG) (B Shares) (a) | 59,633 | 1,115,340 | |
Observer AB | 243,921 | 968,484 | |
OMHEX AB | 214,965 | 2,195,537 | |
ORC Software AB | 112,783 | 1,295,893 | |
Sectra AB (B Shares) | 237,456 | 1,758,305 | |
Song Networks Holding AB (a) | 612,563 | 3,988,448 | |
Teleca AB (B Shares) | 488,488 | 2,419,739 | |
Wedins Norden AB Series B (a) | 4,354,560 | 956,215 | |
TOTAL SWEDEN | 20,116,509 | ||
Switzerland - 1.9% | |||
A Hiestand Holding AG | 1,533 | 503,148 | |
Actelion Ltd. (Reg.) (a) | 16,228 | 1,537,339 | |
Ascom Holding AG (Reg.) (a) | 82,077 | 587,751 | |
Bank Sarasin & Co. Ltd. Series B (Reg.) | 687 | 1,014,665 | |
Belimo Holding AG (Reg.) | 2,454 | 906,109 | |
Georg Fischer AG (Reg.) (a) | 11,396 | 1,910,526 | |
Swiss Life Holding (a) | 13,291 | 2,245,570 | |
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
Switzerland - continued | |||
Swissquote Group Holding SA (a) | 20,104 | $ 1,424,646 | |
Temenos Group AG (a) | 131,181 | 719,216 | |
TOTAL SWITZERLAND | 10,848,970 | ||
United Kingdom - 14.8% | |||
Alba PLC | 18,700 | 202,786 | |
Amlin PLC | 193,220 | 474,718 | |
Arena Leisure PLC (a) | 82,200 | 66,854 | |
Atrium Underwriting PLC (a) | 269,360 | 846,629 | |
BBA Group PLC | 140,116 | 616,679 | |
Boosey & Hawkes PLC (a) | 99,605 | 362,857 | |
Caffe Nero Group PLC (a) | 350,478 | 252,386 | |
Collins Stewart Tullett PLC | 221,955 | 1,447,910 | |
Computacenter PLC | 129,613 | 1,010,235 | |
Corin Group PLC | 739,925 | 2,588,950 | |
Cox Insurance Holdings PLC (a) | 101,139 | 139,666 | |
CSS Stellar PLC | 46,500 | 64,607 | |
CustomVis PLC | 375,215 | 419,604 | |
De La Rue PLC | 49,426 | 234,912 | |
Derwent Valley Holdings PLC | 70,590 | 801,372 | |
Domino's Pizza UK & IRL PLC | 185,515 | 539,087 | |
Domnick Hunter Group PLC | 154,089 | 1,035,216 | |
Eidos PLC (a) | 1,380,900 | 3,650,083 | |
Electra Investment Trust PLC (a) | 108,683 | 1,157,398 | |
Flomerics Group PLC | 449,658 | 510,473 | |
French Connection Group PLC | 32,132 | 1,073,917 | |
Future Network PLC (a) | 1,331,893 | 1,286,353 | |
Games Workshop Group PLC | 203,858 | 2,400,648 | |
Hardy Underwriting Group PLC | 78,801 | 353,161 | |
Henlys Group PLC | 281,455 | 419,670 | |
Highbury House Communications PLC | 464,036 | 220,154 | |
Holidaybreak PLC | 88,011 | 842,561 | |
Hornby PLC | 147,646 | 2,745,631 | |
Icap PLC | 101,450 | 2,378,193 | |
Integrated Dental Holdings PLC | 33,843 | 19,210 | |
Intercontinental Hotels Group PLC | 116,276 | 1,053,554 | |
Interior Services Group PLC | 89,201 | 256,942 | |
Intertek Group PLC | 89,410 | 777,934 | |
ITE Group PLC | 1,977,342 | 1,750,588 | |
JJB Sports PLC | 203,657 | 985,193 | |
John David Group PLC | 159,679 | 531,651 | |
KBC Advanced Technologies PLC | 183,208 | 133,484 | |
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
United Kingdom - continued | |||
Kesa Electricals PLC | 1,134,401 | $ 4,689,995 | |
LA Fitness PLC | 459,104 | 1,174,638 | |
Lambert Howarth Group PLC | 1,094,513 | 4,376,721 | |
Lawrence PLC | 907,566 | 4,644,095 | |
Lok'nStore Group PLC (a) | 250,000 | 332,526 | |
Luminar PLC | 76,012 | 553,817 | |
Manpower Software PLC (a) | 500,000 | 199,092 | |
Marlborough Stirling PLC (a) | 345,669 | 307,493 | |
Matalan PLC | 621,071 | 2,788,708 | |
Matchnet PLC unit (a) | 650,690 | 2,208,610 | |
Mothercare PLC (a) | 231,362 | 1,266,224 | |
MyTravel Group PLC (a) | 19,977 | 6,262 | |
MyTravel Group PLC warrants 1/5/07 (a) | 83,903 | 12,084 | |
NDS Group PLC sponsored ADR (a) | 62,116 | 1,087,651 | |
Ocean Wilsons Holdings Ltd. | 144,111 | 330,866 | |
Online Travel Corp. PLC (a)(c) | 6,724,450 | 2,164,843 | |
Oystertec PLC (a) | 3,258,112 | 800,479 | |
Pace Micro Technology PLC | 158,774 | 174,867 | |
Peacock Group PLC | 313,014 | 1,264,935 | |
Pendragon PLC | 139,416 | 512,611 | |
Proteome Sciences PLC (a) | 177,387 | 507,954 | |
QA PLC (a) | 2,392,862 | 288,881 | |
Royalblue Group PLC | 39,500 | 299,506 | |
Safeway PLC | 866,189 | 4,256,245 | |
Sanctuary Group PLC | 1,099,800 | 941,068 | |
Shore Capital Group PLC | 3,722,696 | 1,356,163 | |
Singer & Friedlander Group PLC | 269,012 | 959,488 | |
SMG PLC | 1,135,042 | 1,942,447 | |
St. James's Place Capital PLC | 561,700 | 1,475,204 | |
Staffware PLC | 39,312 | 411,318 | |
Ted Baker PLC | 194,249 | 1,188,179 | |
Unite Group PLC | 136,286 | 359,085 | |
Urbium PLC (a) | 28,800 | 211,786 | |
Vanco PLC (a) | 7,690 | 32,249 | |
Wellington Underwriting PLC | 427,034 | 575,235 | |
William Hill PLC | 230,260 | 1,322,617 | |
Wolfson Microelectronics PLC (a) | 614,650 | 2,473,475 | |
WS Atkins PLC | 255,671 | 1,743,666 | |
TOTAL UNITED KINGDOM | 82,892,349 | ||
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
United States of America - 0.4% | |||
ActivCard Corp. (a) | 81,705 | $ 690,407 | |
ResMed, Inc. Chess Depositary Interests (a) | 374,191 | 1,589,002 | |
TOTAL UNITED STATES OF AMERICA | 2,279,409 | ||
TOTAL COMMON STOCKS (Cost $404,133,509) | 474,936,298 | ||
Nonconvertible Preferred Stocks - 2.0% | |||
Germany - 2.0% | |||
Draegerwerk AG (non-vtg.) | 114,882 | 6,474,588 | |
Fresenius AG | 37,105 | 2,363,276 | |
Fresenius Medical Care AG | 35,662 | 1,458,336 | |
Rheinmetall AG | 27,277 | 837,691 | |
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $9,445,007) | 11,133,891 |
Convertible Bonds - 0.0% | ||||
Principal Amount | ||||
United Kingdom - 0.0% | ||||
MyTravel Group PLC 7% 1/5/07 | GBP | 176,898 | 80,929 |
Money Market Funds - 18.8% | |||
Shares | Value (Note 1) | ||
Fidelity Cash Central Fund, 1.07% (b) | 77,015,277 | $ 77,015,277 | |
Fidelity Securities Lending Cash Central Fund, 1.09% (b) | 27,749,444 | 27,749,444 | |
TOTAL MONEY MARKET FUNDS (Cost $104,764,721) | 104,764,721 | ||
TOTAL INVESTMENT PORTFOLIO - 105.8% (Cost $518,420,264) | 590,915,839 | ||
NET OTHER ASSETS - (5.8)% | (32,177,171) | ||
NET ASSETS - 100% | $ 558,738,668 |
Currency Abbreviations | ||
GBP | - | British pound |
Legend |
(a) Non-income producing |
(b) The rate quoted is the annualized seven-day yield of the fund at period end. A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request. |
(c) Affiliated company |
(d) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
(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 $65,872 or 0.0% of net assets. |
Additional information on each holding is as follows: |
Security | Acquisition Date | Acquisition Cost |
Pulsion Medical Systems AG | 10/20/03 | $ 56,643 |
Other Information |
Purchases and sales of securities, other than short-term securities, aggregated $494,754,815 and $95,853,957, respectively. |
The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $167 for the period. |
Income Tax Information |
The fund hereby designates approximately $85,000 as a capital gain dividend for the purpose of the dividend paid deduction. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements
Statement of Assets and Liabilities
October 31, 2003 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $26,503,556) (cost $518,420,264) - See accompanying schedule | $ 590,915,839 | |
Foreign currency held at value (cost $667,432) | 667,177 | |
Receivable for investments sold | 4,647,029 | |
Receivable for fund shares sold | 8,167,917 | |
Dividends receivable | 533,201 | |
Interest receivable | 61,503 | |
Redemption fees receivable | 5,961 | |
Prepaid expenses | 529 | |
Other receivables | 54,870 | |
Total assets | 605,054,026 | |
Liabilities | ||
Payable for investments purchased | $ 17,758,544 | |
Delayed delivery | 6,367 | |
Payable for fund shares redeemed | 331,765 | |
Accrued management fee | 351,933 | |
Distribution fees payable | 3,649 | |
Other payables and accrued expenses | 113,656 | |
Collateral on securities loaned, at value | 27,749,444 | |
Total liabilities | 46,315,358 | |
Net Assets | $ 558,738,668 | |
Net Assets consist of: | ||
Paid in capital | $ 474,304,360 | |
Undistributed net investment income | 614,412 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 11,335,639 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 72,484,257 | |
Net Assets | $ 558,738,668 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
October 31, 2003 | ||
Calculation of Maximum Offering Price | $ 17.69 | |
Maximum offering price per share (100/94.25 of $17.69) | $ 18.77 | |
Class T: | $ 17.68 | |
Maximum offering price per share (100/96.50 of $17.68) | $ 18.32 | |
Class B: | $ 17.62 | |
Class C: | $ 17.64 | |
International Small Cap Fund: | $ 17.71 | |
Institutional Class: | $ 17.72 |
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.
Annual Report
Statement of Operations
Year ended October 31, 2003 | ||
Investment Income | ||
Dividends | $ 1,947,285 | |
Special Dividends | 235,363 | |
Interest | 175,661 | |
Security lending | 81,504 | |
2,439,813 | ||
Less foreign taxes withheld | (182,569) | |
Total income | 2,257,244 | |
Expenses | ||
Management fee | $ 974,384 | |
Performance adjustment | 29,591 | |
Transfer agent fees | 225,702 | |
Distribution fees | 8,229 | |
Accounting and security lending fees | 93,965 | |
Non-interested trustees' compensation | 307 | |
Custodian fees and expenses | 230,448 | |
Registration fees | 159,831 | |
Audit | 42,608 | |
Legal | 5,300 | |
Miscellaneous | 1,922 | |
Total expenses before reductions | 1,772,287 | |
Expense reductions | (31,757) | 1,740,530 |
Net investment income (loss) | 516,714 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities (including realized gain (loss) of $15,787 on sales of investments in affiliated issuers) | 11,325,196 | |
Foreign currency transactions | 118,286 | |
Total net realized gain (loss) | 11,443,482 | |
Change in net unrealized appreciation (depreciation) on: Investment securities | 72,493,135 | |
Assets and liabilities in foreign currencies | (11,164) | |
Total change in net unrealized appreciation (depreciation) | 72,481,971 | |
Net gain (loss) | 83,925,453 | |
Net increase (decrease) in net assets resulting from operations | $ 84,442,167 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements - continued
Statement of Changes in Net Assets
Year ended | For the period | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $ 516,714 | $ (1,766) |
Net realized gain (loss) | 11,443,482 | 18,692 |
Change in net unrealized appreciation (depreciation) | 72,481,971 | 2,286 |
Net increase (decrease) in net assets resulting | 84,442,167 | 19,212 |
Distributions to shareholders from net realized gain | (27,060) | - |
Share transactions - net increase (decrease) | 470,607,516 | 3,405,761 |
Redemption fees | 290,434 | 638 |
Total increase (decrease) in net assets | 555,313,057 | 3,425,611 |
Net Assets | ||
Beginning of period | 3,425,611 | - |
End of period (including undistributed net investment income of $614,412 and accumulated net investment loss of $2,120, respectively) | $ 558,738,668 | $ 3,425,611 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class A
Year ended October 31, | 2003 G |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 12.35 |
Income from Investment Operations | |
Net investment income (loss) E | .02 F |
Net realized and unrealized gain (loss) | 5.30 |
Total from investment operations | 5.32 |
Redemption fees added to paid in capital E | .02 |
Net asset value, end of period | $ 17.69 |
Total Return B,C,D | 43.24% |
Ratios to Average Net Assets H | |
Expenses before expense reductions | 1.77% A |
Expenses net of voluntary waivers, if any | 1.77% A |
Expenses net of all reductions | 1.74% A |
Net investment income (loss) | .28% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 4,960 |
Portfolio turnover rate | 84% A |
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Investment income per share reflects a special dividend which amounted to $.01 per share.
G For the period May 27, 2003 (commencement of sale of shares) 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 any voluntary 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.
Annual Report
Financial Highlights - Class T
Year ended October 31, | 2003 G |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 12.35 |
Income from Investment Operations | |
Net investment income (loss) E | - F,I |
Net realized and unrealized gain (loss) | 5.31 |
Total from investment operations | 5.31 |
Redemption fees added to paid in capitalE | .02 |
Net asset value, end of period | $ 17.68 |
Total Return B,C,D | 43.16% |
Ratios to Average Net Assets H | |
Expenses before expense reductions | 2.12% A |
Expenses net of voluntary waivers, if any | 2.12% A |
Expenses net of all reductions | 2.09% A |
Net investment income (loss) | (.07)% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 3,990 |
Portfolio turnover rate | 84% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Investment income per share reflects a special dividend which amounted to $.01 per share.
G For the period May 27, 2003 (commencement of sale of shares) 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 any voluntary 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.
Annual Report
Financial Highlights - Class B
Year ended October 31, | 2003 G |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 12.35 |
Income from Investment Operations | |
Net investment income (loss) E | (.05) F |
Net realized and unrealized gain (loss) | 5.30 |
Total from investment operations | 5.25 |
Redemption fees added to paid in capital E | .02 |
Net asset value, end of period | $ 17.62 |
Total Return B,C,D | 42.67% |
Ratios to Average Net Assets H | |
Expenses before expense reductions | 2.76% A |
Expenses net of voluntary waivers, if any | 2.76% A |
Expenses net of all reductions | 2.73% A |
Net investment income (loss) | (.71)% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 1,016 |
Portfolio turnover rate | 84% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Investment income per share reflects a special dividend which amounted to $.01 per share.
G For the period May 27, 2003 (commencement of sale of shares) 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 any voluntary 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.
Annual Report
Financial Highlights - Class C
Year ended October 31, | 2003 G |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 12.35 |
Income from Investment Operations | |
Net investment income (loss) E | (.04) F |
Net realized and unrealized gain (loss) | 5.31 |
Total from investment operations | 5.27 |
Redemption fees added to paid in capital E | .02 |
Net asset value, end of period | $ 17.64 |
Total Return B,C,D | 42.83% |
Ratios to Average Net Assets H | |
Expenses before expense reductions | 2.57% A |
Expenses net of voluntary waivers, if any | 2.57% A |
Expenses net of all reductions | 2.55% A |
Net investment income (loss) | (.52)% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 1,383 |
Portfolio turnover rate | 84% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Investment income per share reflects a special dividend which amounted to $.01 per share.
G For the period May 27, 2003 (commencement of sale of shares) 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 any voluntary 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.
Annual Report
Financial Highlights - International Small Cap Fund
Years ended October 31, | 2003 | 2002 G |
Selected Per-Share Data | ||
Net asset value, beginning of period | $ 9.87 | $ 10.00 |
Income from Investment Operations | ||
Net investment income (loss) D | .07 E | (.01) |
Net realized and unrealized gain (loss) | 7.75 | (.12) F |
Total from investment operations | 7.82 | (.13) |
Distributions from net realized gain | (.02) | - |
Redemption fees added to paid in capital D | .04 | -I |
Net asset value, end of period | $ 17.71 | $ 9.87 |
Total Return B,C | 79.78% | (1.30)% |
Ratios to Average Net Assets H | ||
Expenses before expense reductions | 1.54% | 13.70% A |
Expenses net of voluntary waivers, if any | 1.54% | 1.80% A |
Expenses net of all reductions | 1.51% | 1.80% A |
Net investment income (loss) | .46% | (.56)% A |
Supplemental Data | ||
Net assets, end of period (000 omitted) | $ 546,989 | $ 3,426 |
Portfolio turnover rate | 84% | 85% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Investment income per share reflects a special dividend which amounted to $.03 per share.
F The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the fund.
G For the period September 18, 2002 (commencement of operations) to October 31, 2002.
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 any voluntary 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.
Annual Report
Financial Highlights - Institutional Class
Year ended October 31, | 2003 F |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 12.35 |
Income from Investment Operations | |
Net investment income (loss) D | .04 E |
Net realized and unrealized gain (loss) | 5.31 |
Total from investment operations | 5.35 |
Redemption fees added to paid in capital D | .02 |
Net asset value, end of period | $ 17.72 |
Total Return B,C | 43.48% |
Ratios to Average Net Assets G | |
Expenses before expense reductions | 1.51% A |
Expenses net of voluntary waivers, if any | 1.51% A |
Expenses net of all reductions | 1.48% A |
Net investment income (loss) | .54% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 401 |
Portfolio turnover rate | 84% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Investment income per share reflects a special dividend which amounted to $.01 per share.
F For the period May 27, 2003 (commencement of sale of shares) to October 31, 2003.
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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from 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.
Annual Report
Notes to Financial Statements
For the period ended October 31, 2003
1. Significant Accounting Policies.
Fidelity International Small Cap Fund (the fund) is a fund of Fidelity Investment Trust (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, International Small Cap (the original class), 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. The fund commenced sale of Class A, Class T, Class B, Class C, and Institutional shares on May 27, 2003. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the fund, and certain fund-level expense reductions, if any, are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the fund:
Security Valuation. Net asset value per share (NAV calculation) is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Equity securities for which market quotations are available are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) on the primary market or exchange on which they trade. Debt securities for which quotations are readily available are valued at their most recent bid prices (sales prices if the principal market is an exchange) in the principal market in which such securities are normally traded, as determined by recognized dealers in such securities, or securities are valued on the basis of information provided by a pricing service. Pricing services use valuation matrices that incorporate both dealer-supplied valuations and valuation models. If an event that is expected to materially affect the value of a security occurs after the close of an exchange or market on which that security trades, but prior to the NAV calculation, then that security will be fair valued taking the event into account. Securities (including restricted securities) for which market quotations are not readily available are valued at their fair value as determined in good faith under consistently applied procedures under the general supervision of the Board of Trustees. Price movements in futures contracts and ADRs, market and trading trends, the bid/ask quotes of brokers and off-exchange institutional trading may be reviewed in the course of
Annual Report
Notes to Financial Statements - continued
1. Significant Accounting Policies - continued
Annual Report
Security Valuation - continued
making a good faith determination of a security's fair value. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued on the basis of amortized cost. Investments in open-end investment companies are valued at their net asset value each business day.
Foreign Currency. The fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income is accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities, which is accrued using the interest method. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among the funds in the trust.
Income Tax Information and Distributions to Shareholders. Each year the fund intends to qualify as a regulated investment company by distributing all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required in the accompanying financial statements. Foreign taxes are provided for based on each fund's understanding of the tax rules and
Annual Report
Notes to Financial Statements - continued
1. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
rates that exist in the foreign markets in which it invests. Income dividends and capital gain distributions are declared separately for each class. Distributions are recorded on the ex-dividend date.
Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the fund will treat a portion of the proceeds from shares redeemed as a distribution from net investment income and realized gain for income tax purposes. Capital accounts within the financial statements are adjusted for permanent and temporary book and tax differences. These adjustments have no impact on net assets or the results of operations. Temporary differences will reverse in a subsequent period. These differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), market discount and losses deferred due to wash sales.
The tax-basis components of distributable earnings and the federal tax cost as of period end were as follows:
Unrealized appreciation | $ 77,517,402 | | |
Unrealized depreciation | (5,457,380) | |
Net unrealized appreciation (depreciation) | 72,060,022 | |
Undistributed ordinary income | 12,052,118 | |
Cost for federal income tax purposes | $ 518,855,817 |
The tax character of distributions paid was as follows:
October 31, | October 31, | |
Ordinary Income | $ 27,060 | $ - |
Short-Term Trading (Redemption) Fees. Shares held in the fund less than 90 days are subject to a short-term trading fee equal to 2.00% of the proceeds of the redeemed shares. The fee, which is retained by the fund, is accounted for as an addition to paid in capital.
2. Operating Policies.
Repurchase Agreements. Fidelity Management & Research Company (FMR) has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts. These accounts are then invested in repurchase agreements that are collateralized by U.S. Treasury or Government obligations. The fund
Annual Report
2. Operating Policies - continued
Annual Report
Repurchase Agreements - continued
may also invest directly with institutions, in repurchase agreements that are collateralized by commercial paper obligations and corporate obligations. Collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. Collateral is marked-to-market daily and maintained at a value at least equal to the principal amount of the repurchase agreement (including accrued interest).
Delayed Delivery Transactions and When-Issued Securities. The fund may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. During the time a delayed delivery sell is outstanding, the contract is marked-to-market daily and equivalent deliverable securities are held for the transaction. The value of the securities purchased on a delayed delivery or when-issued basis are identified as such in the fund's Schedule of Investments. The fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract, or if the issuer does not issue the securities due to political, economic, or other factors.
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.
3. Purchases and Sales of Investments.
Notes to Financial Statements - continued
Information regarding purchases and sales of securities is included under the caption "Other Information" at the end of the fund's Schedule of Investments.
Annual Report
4. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the fund with investment management related services for which the fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .60% of the fund's average net assets and a group fee rate that averaged .28% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ±.20% of the fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the investment performance of International Small Cap (the original class) as compared to an appropriate benchmark index. The fund's performance adjustment took effect in September, 2003. Subsequent months will be added until the performance period includes 36 months. For the period, the total annual management fee rate, including the performance adjustment, was .88% of the fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. Class A and Class T Plans also authorize the use of brokerage commissions to pay distribution expenses. This practice has been discontinued and no commissions incurred after June 30, 2003 have been used to pay distribution expenses. In addition, FDC may pay financial intermediaries for selling shares of the fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, the total amounts paid to and retained by FDC and the amount of distribution expenses paid with brokerage commissions were as follows:
Distribution | Service | Paid to | Retained | Paid with | |
Class A | - | .25% | $ 1,070 | $ 73 | $ - |
Class T | .25% | .25% | 3,478 | 182 | - |
Class B | .75% | .25% | 1,758 | 1,438 | |
Class C | .75% | .25% | 1,923 | 1,370 | |
$ 8,229 | $ 3,063 | $ - |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares of the fund. FDC receives the proceeds of contingent deferred sales 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, and .25% for certain purchases of Class A and Class T shares.
Annual Report
Notes to Financial Statements - continued
4. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
Retained | ||
Class A | $ 6,125 | |
Class T | 4,155 | |
Class B* | - | |
Class C* | - | |
$ 10,280 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the
sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent (collectively referred to as the transfer agent) for each class of the fund, except for International Small Cap. Fidelity Service Company, Inc. (FSC), an affiliate of FMR is the transfer agent for International Small Cap shares. FIIOC and FSC receive 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 and FSC pay for typesetting, printing and mailing of all shareholder reports, except proxy statements. For the period, the following amounts were paid to FIIOC or FSC:
Amount | % of | |
Class A | $ 706 | .16* |
Class T | 1,800 | .25* |
Class B | 714 | .40* |
Class C | 432 | .22* |
International Small Cap | 221,957 | .20 |
Institutional Class | 93 | .13* |
$ 225,702 |
* Annualized.
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC) maintains the fund's accounting records and administers the security lending program. The security lending fee is based on the number and duration of lending transactions. The accounting fee is based on the level of average net assets for the month plus out-of-pocket expenses.
Annual Report
4. Fees and Other Transactions with Affiliates - continued
Central Funds. The fund may invest in affiliated Central Funds managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR. The Central Funds are open-end investment companies available only to investment companies and other accounts managed by FMR and its affiliates. The Central Funds seek preservation of capital and current income and do not pay a management fee. Income distributions earned by the fund are recorded as income in the accompanying financial statements and totaled $112,402 for the period.
Brokerage Commissions. The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms are shown under the caption "Other Information" at the end of the fund's Schedule of Investments.
5. Committed Line of Credit.
The fund participates with other funds managed by FMR in a $3.5 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The fund has agreed to pay commitment fees on its pro rata portion of the line of credit. During the period, there were no borrowings on this line of credit.
6. Security Lending.
The fund lends portfolio securities from time to time in order to earn additional income. The fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the fund and any additional required collateral is delivered to the fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Cash collateral is invested in cash equivalents. The value of loaned securities and cash collateral at period end are disclosed on the fund's Statement of Assets and Liabilities.
Annual Report
Notes to Financial Statements - continued
7. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the fund provided services to the fund in addition to trade execution. These services may include payments of expenses on behalf of the fund to support distribution of fund shares for Class A and Class T ("Distribution Expense Reduction") and to pay other fund expenses, such as transfer agent fees ("Other Expense Reduction") collectively referred to as "Brokerage Service Arrangements" in the accompanying table. Brokerage service arrangements generally benefits all shareholders of each class by reducing fund expenses. Each of Class A and Class T shareholders' Other Expense Reduction benefit is reduced by the amount of any Distribution Expense Reduction. In addition, through arrangements with the fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the fund's expenses. All of the applicable expense reductions are noted in the table below.
Brokerage Service Arrangements | ||||
Distribution | Other | Custody | Transfer | |
Fund Level | $ - | $ 31,745 | $ 12 | $ - |
8. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Years ended October 31, | ||
2003 | 2002 | |
From net realized gain | ||
International Small Cap | $ 27,060 | $ - |
Annual Report
9. Share Transactions.
Transactions for each class of shares were as follows:
Shares | Dollars | |||
2003A | 2002B | 2003A | 2002B | |
Class A | ||||
Shares sold | 287,827 | - | $ 4,774,574 | $ - |
Shares redeemed | (7,479) | - | (125,524) | - |
Net increase (decrease) | 280,348 | - | $ 4,649,050 | $ - |
Class T | ||||
Shares sold | 229,190 | - | $ 3,468,992 | $ - |
Shares redeemed | (3,525) | - | (55,853) | - |
Net increase (decrease) | 225,665 | - | $ 3,413,139 | $ - |
Class B | ||||
Shares sold | 60,233 | - | $ 911,644 | $ - |
Shares redeemed | (2,570) | - | (40,678) | - |
Net increase (decrease) | 57,663 | - | $ 870,966 | $ - |
Class C | ||||
Shares sold | 88,372 | - | $ 1,388,024 | $ - |
Shares redeemed | (9,942) | - | (158,911) | - |
Net increase (decrease) | 78,430 | - | $ 1,229,113 | $ - |
International Small Cap | ||||
Shares sold | 32,919,552 | 350,328 | $ 492,932,712 | $ 3,437,639 |
Reinvestment of distributions | 2,491 | - | 25,785 | - |
Shares redeemed | (2,388,222) | (3,412) | (32,859,600) | (31,878) |
Net increase (decrease) | 30,533,821 | 346,916 | $ 460,098,897 | $ 3,405,761 |
Institutional Class | ||||
Shares sold | 23,006 | - | $ 351,524 | $ - |
Shares redeemed | (396) | - | (5,173) | - |
Net increase (decrease) | 22,610 | - | $ 346,351 | $ - |
A Share transactions for Class A, Class T, Class B, Class C and Institutional Class are for the period May 27, 2003 (commencement of sale of shares)
to October 31, 2003.
B For the period September 18, 2002 (commencement of operations) to October 31, 2002.
10. Transactions with Affiliated Companies.
An affiliated company is a company in which the fund has ownership of at least 5% of the voting securities. Transactions during the period with companies which are or were affiliates are as follows:
Affiliate | Purchase | Sales | Dividend | Value |
Hyrican Informationssysteme | $ - | $ 138,521 | $ - | $ - |
Online Travel Corp. PLC | 227,512 | - | - | 2,164,843 |
Totals | $ 227,512 | $ 138,521 | $ - | $ 2,164,843 |
Annual Report
Independent Auditors' Report
To the Trustees of Fidelity Investment Trust and Shareholders of Fidelity International Small Cap Fund:
We have audited the accompanying statement of assets and liabilities of Fidelity International Small Cap Fund (the Fund), a fund of Fidelity Investment Trust, including the portfolio of investments, as of October 31, 2003, and the related statement of operations for the year then ended, and the statement of changes in net assets and the financial highlights for each of the two years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2003, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Fidelity International Small Cap Fund as of October 31, 2003, the results of its operations for the year then ended, and the changes in its net assets and its financial highlights for each of the two years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
/s/DELOITTE & TOUCHE LLP
DELOITTE & TOUCHE LLP
Boston, Massachusetts
December 12, 2003
Annual Report
Trustees and Officers
The Trustees, Members of the Advisory Board, and executive officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, and review the fund's performance. Except for William O. McCoy, each of the Trustees oversees 289 funds advised by FMR or an affiliate. Mr. McCoy oversees 291 funds advised by FMR or an affiliate.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. In any event, each non-interested Trustee shall retire not later than the last day of the calendar year in which his or her 72nd birthday occurs. The executive officers and Advisory Board Members hold office without limit in time, except that any officer and Advisory Board Member] may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.
Interested Trustees*:
Correspondence intended for each Trustee who is an "interested person" (as defined in the 1940 Act) may be sent to 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation | |
Edward C. Johnson 3d (73)** | |
Year of Election or Appointment: 1984 Mr. Johnson is Chairman of the Board of Trustees. Mr. Johnson serves as Chief Executive Officer, Chairman, and a Director of FMR Corp.; a Director and Chairman of the Board and of the Executive Committee of FMR; Chairman and a Director of Fidelity Management & Research (Far East) Inc.; Chairman (1998) and a Director of Fidelity Investments Money Management, Inc.; and Chairman (2001) and a Director (2000) of FMR Co., Inc. | |
Abigail P. Johnson (41)** | |
Year of Election or Appointment: 2001 Senior Vice President of the fund (2002). Ms. Johnson also serves as Senior Vice President of other Fidelity funds (2001). She is President and a Director of FMR (2001), Fidelity Investments Money Management, Inc. (2001), FMR Co., Inc. (2001), and a Director of FMR Corp. Previously, Ms. Johnson managed a number of Fidelity funds. | |
Laura B. Cronin (49) | |
Year of Election or Appointment: 2003 Ms. Cronin is an Executive Vice President (2002) and Chief Financial Officer (2002) of FMR Corp. and is a member of the Fidelity Management Committee (2003). Previously, Ms. Cronin served as Vice President of Finance of FMR (1997-1999), and Chief Financial Officer of FMR (1999-2001), Fidelity Personal Investments (2001), and Fidelity Brokerage Company (2001-2002). | |
Robert L. Reynolds (51) | |
Year of Election or Appointment: 2003 Mr. Reynolds is a Director (2003) and Chief Operating Officer (2002) of FMR Corp. and is the head of the Fidelity Management Committee (2003). He also serves on the Board at Fidelity Investments Canada, Ltd. (2000). Previously, Mr. Reynolds served as President of Fidelity Investments Institutional Retirement Group (1996-2000). |
* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with FMR.
** Edward C. Johnson 3d, Trustee, is Abigail P. Johnson's father.
Annual Report
Non-Interested Trustees:
Correspondence intended for each non-interested Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Age; Principal Occupation | |
J. Michael Cook (61) | |
Year of Election or Appointment: 2001 Prior to Mr. Cook's retirement in May 1999, he served as Chairman and Chief Executive Officer of Deloitte & Touche LLP (accounting/consulting), Chairman of the Deloitte & Touche Foundation, and a member of the Board of Deloitte Touche Tohmatsu. He currently serves as a Director of Comcast (telecommunications, 2002), International Flavors & Fragrances, Inc. (2000), Rockwell Automation (2000) and The Dow Chemical Company (2000). He is a Member of the Diversity Advisory Council of Marakon (2003) and the Advisory Board of the Directorship Search Group, Chairman Emeritus of the Board of Catalyst (a leading organization for the advancement of women in business), and is Chairman of the Accountability Advisory Council to the Comptroller General of the United States. He also serves as a Member of the Advisory Board of the Graduate School of Business of the University of Florida, his alma mater. | |
Ralph F. Cox (71) | |
Year of Election or Appointment: 1991 Mr. Cox is President of RABAR Enterprises (management consulting for the petroleum industry). Prior to February 1994, he was President of Greenhill Petroleum Corporation (petroleum exploration and production). Until March 1990, Mr. Cox was President and Chief Operating Officer of Union Pacific Resources Company (exploration and production). He is a Director of CH2M Hill Companies (engineering), and Abraxas Petroleum (petroleum exploration and production, 1999). In addition, he is a member of advisory boards of Texas A&M University and the University of Texas at Austin. | |
Phyllis Burke Davis (71) | |
Year of Election or Appointment: 1992 Mrs. Davis is retired from Avon Products, Inc. (consumer products) where she held various positions including Senior Vice President of Corporate Affairs and Group Vice President of U.S. product marketing, sales, distribution, and manufacturing. Mrs. Davis is a member of the Board of Directors of the Southampton Hospital in Southampton, N.Y. (1998). Previously, she served as a Director of BellSouth Corporation (telecommunications), Eaton Corporation (diversified industrial), the TJX Companies, Inc. (retail stores), Hallmark Cards, Inc., and Nabisco Brands, Inc. | |
Robert M. Gates (60) | |
Year of Election or Appointment: 1997 Dr. Gates is President of Texas A&M University (2002). He was Director of the Central Intelligence Agency (CIA) from 1991 to 1993. From 1989 to 1991, Dr. Gates served as Assistant to the President of the United States and Deputy National Security Advisor. Dr. Gates is a Director of NACCO Industries, Inc. (mining and manufacturing), and Parker Drilling Co., Inc. (drilling and rental tools for the energy industry, 2001). He also serves as a member of the Advisory Board of VoteHere.net (secure internet voting, 2001). Previously, Dr. Gates served as a Director of LucasVarity PLC (automotive components and diesel engines), a Director of TRW Inc. (automotive, space, defense, and information technology), and Dean of the George Bush School of Government and Public Service at Texas A&M University (1999-2001). Dr. Gates also is a Trustee of the Forum for International Policy. | |
Donald J. Kirk (70) | |
Year of Election or Appointment: 1987 Mr. Kirk is a Governor of the American Stock Exchange (2001), a Trustee and former Chairman of the Board of Trustees of the Greenwich Hospital Association, a Director of the Yale-New Haven Health Services Corp. (1998), and a Director Emeritus and former Chairman of the Board of Directors of National Arts Strategies Inc. Mr. Kirk was an Executive-in-Residence (1995-2000) and a Professor (1987-1995) at Columbia University Graduate School of Business. Prior to 1987, he was Chairman of the Financial Accounting Standards Board. Previously, Mr. Kirk served as a Governor of the National Association of Securities Dealers, Inc. (1996-2002), a member and Vice Chairman of the Public Oversight Board of the American Institute of Certified Public Accountants' SEC Practice Section (1995-2002), a Director of General Re Corporation (reinsurance, 1987-1998) and as a Director of Valuation Research Corp. (appraisals and valuations). | |
Marie L. Knowles (57) | |
Year of Election or Appointment: 2001 Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. She currently serves as a Director of Phelps Dodge Corporation (copper mining and manufacturing), URS Corporation (multidisciplinary engineering, 1999), and McKesson Corporation (healthcare service, 2002). Ms. Knowles is a Trustee of the Brookings Institution and the Catalina Island Conservancy and also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California. | |
Ned C. Lautenbach (59) | |
Year of Election or Appointment: 2000 Mr. Lautenbach has been a partner of Clayton, Dubilier & Rice, Inc. (private equity investment firm) since September 1998. Previously, Mr. Lautenbach was with the International Business Machines Corporation (IBM) from 1968 until his retirement in 1998. He was most recently Senior Vice President and Group Executive of Worldwide Sales and Services. From 1993 to 1995, he was Chairman of IBM World Trade Corporation, and from 1994 to 1998 was a member of IBM's Corporate Executive Committee. Mr. Lautenbach serves as Chairman and as a Director (1998) of Acterna Corporation (communications test equipment). He is also Co-Chairman of Covansys, Inc. (global provider of business and technology solutions, 2000). In addition, he is a Director of Eaton Corporation (diversified industrial) and the Philharmonic Center for the Arts in Naples, Florida (1999). He also is a member of the Council on Foreign Relations. | |
Marvin L. Mann (70) | |
Year of Election or Appointment: 1993 Mr. Mann is Chairman of the non-interested Trustees (2001). He is Chairman Emeritus of Lexmark International, Inc. (computer peripherals) where he served as CEO until April 1998 and retired as Chairman May 1999, and remains a member of the Board. Prior to 1991, he held the positions of Vice President of International Business Machines Corporation (IBM) and President and General Manager of various IBM divisions and subsidiaries. Mr. Mann is a Board member of Imation Corp. (imaging and information storage) and Acterna Corporation (communications test equipment, 1999). He is also a member of the Director Services Committee of the Investment Company Institute. In addition, Mr. Mann is a member of the President's Cabinet at the University of Alabama and the Board of Visitors of the Culverhouse College of Commerce and Business Administration at the University of Alabama. | |
William O. McCoy (70) | |
Year of Election or Appointment: 1997 Prior to his retirement in December 1994, Mr. McCoy was Vice Chairman of the Board of BellSouth Corporation (telecommunications) and President of BellSouth Enterprises. He is currently a Director of Liberty Corporation (holding company), Duke Realty Corporation (real estate), Progress Energy, Inc. (electric utility), and Acterna Corporation (communications test equipment, 1999). He is also a partner of Franklin Street Partners (private investment management firm) and a member of the Research Triangle Foundation Board. In addition, Mr. McCoy served as the Interim Chancellor (1999-2000) and a member of the Board of Visitors (1994-1998) for the University of North Carolina at Chapel Hill and currently serves on the Board of Directors of the University of North Carolina Health Care System and the Board of Visitors of the Kenan-Flagler Business School (University of North Carolina at Chapel Hill). He also served as Vice President of Finance for the University of North Carolina (16-school system, 1995-1998). | |
William S. Stavropoulos (64) | |
Year of Election or Appointment: 2001 Mr. Stavropoulos is Chairman of the Board, President and CEO (2002), and Chairman of the Executive Committee (2000) and a Director of The Dow Chemical Company. Since joining The Dow Chemical Company in 1967, Mr. Stavropoulos served in numerous senior management positions, including President (1993-2000) and Chief Executive Officer (1995-2000). Currently, he is a Director of NCR Corporation (data warehousing and technology solutions), BellSouth Corporation (telecommunications), Chemical Financial Corporation, and Maersk Inc. (industrial conglomerate, 2002). He also serves as a member of the Board of Trustees of the American Enterprise Institute for Public Policy Research. In addition, Mr. Stavropoulos is a member of The Business Council, J.P. Morgan International Council, World Business Council for Sustainable Development, and the University of Notre Dame Advisory Council for the College of Science. |
Annual Report
Trustees and Officers - continued
Advisory Board Members and Executive Officers:
Correspondence intended for Dr. Heilmeier may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for each executive officer and Mr. Lynch may be sent to 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation | |
George H. Heilmeier (67) | |
Year of Election or Appointment: 2003 Member of the Advisory Board of Fidelity Investment Trust. Dr. Heilmeier is Chairman Emeritus of Telcordia Technologies (communication software and systems), where prior to his retirement, he served as company Chairman and Chief Executive Officer. He currently serves on the Boards of Directors of The Mitre Corporation (systems engineering and information technology support for the government), INET Technologies Inc. (telecommunications network surveillance, 2001) and Teletech Holdings (customer management services, 1998). He is Chairman of the General Motors Technology Advisory Committee and a Life Fellow of the IEEE (2000). Dr. Heilmeier is a member of the Defense Science Board and the National Security Agency Advisory Board. He is also a member of the National Academy of Engineering, the American Academy of Arts and Sciences and The Board of Overseers of the School of Engineering and Applied Science of the University of Pennsylvania. Previously, Dr. Heilmeier served as a Director of TRW Inc. (automotive, space, defense, and information technology, 1992-2002) and Compaq (1994-2002). | |
Peter S. Lynch (60) | |
Year of Election or Appointment: 2003 Member of the Advisory Board of Fidelity Investment Trust. Vice Chairman and a Director of FMR, and Vice Chairman (2001) and a Director (2000) of FMR Co., Inc. Previously, Mr. Lynch served as a Trustee of the Fidelity funds (1990-2003). Prior to May 31, 1990, he was a Director of FMR and Executive Vice President of FMR (a position he held until March 31, 1991), Vice President of Fidelity® Magellan® Fund and FMR Growth Group Leader, and Managing Director of FMR Corp. Mr. Lynch was also Vice President of Fidelity Investments Corporate Services. In addition, he serves as a Trustee of Boston College, Massachusetts Eye & Ear Infirmary, Historic Deerfield, John F. Kennedy Library, and the Museum of Fine Arts of Boston. | |
Philip L. Bullen (44) | |
Year of Election or Appointment: 2002 Vice President of the fund. Mr. Bullen also serves as Vice President of certain Equity Funds (2001) and certain High Income Funds (2001). He is Senior Vice President of FMR (2001) and FMR Co., Inc. (2001), President and a Director of Fidelity Management & Research (Far East) Inc. (2001), President and a Director of Fidelity Management & Research (U.K.) Inc. (2002), and a Director of Strategic Advisers, Inc. (2002). Before joining Fidelity Investments, Mr. Bullen was President and Chief Investment Officer of Santander Global Advisors (1997-2000) and President and Chief Executive Officer of Boston's Baring Asset Management Inc. (1994-1997). | |
Eric D. Roiter (54) | |
Year of Election or Appointment: 1998 Secretary of the fund. He also serves as Secretary of other Fidelity funds (1998); Vice President, General Counsel, and Clerk of FMR Co., Inc. (2001) and FMR (1998); Vice President and Clerk of FDC (1998); Assistant Clerk of Fidelity Management & Research (U.K.) Inc. (2001) and Fidelity Management & Research (Far East) Inc. (2001); and Assistant Secretary of Fidelity Investments Money Management, Inc. (2001). Prior to joining Fidelity, Mr. Roiter was with the law firm of Debevoise & Plimpton, as an associate (1981-1984) and as a partner (1985-1997), and served as an Assistant General Counsel of the U.S. Securities and Exchange Commission (1979-1981). Mr. Roiter is an Adjunct Member, Faculty of Law, at Boston College Law School (2003). | |
Stuart Fross (44) | |
Year of Election or Appointment: 2003 Assistant Secretary of the fund. Mr. Fross also serves as Assistant Secretary of other Fidelity funds (2003) and is an employee of FMR. | |
Maria F. Dwyer (44) | |
Year of Election or Appointment: 2002 President and Treasurer of the fund. Ms. Dwyer also serves as President and Treasurer of other Fidelity funds (2002) and is a Vice President (1999) and an employee (1996) of FMR. Prior to joining Fidelity, Ms. Dwyer served as Director of Compliance for MFS Investment Management. | |
Timothy F. Hayes (52) | |
Year of Election or Appointment: 2002 Chief Financial Officer of the fund. Mr. Hayes also serves as Chief Financial Officer of other Fidelity funds (2002). Recently he was appointed President of Fidelity Service Company (2003) where he also serves as a Director. Mr. Hayes also serves as President of Fidelity Investments Operations Group (FIOG, 2002), which includes Fidelity Pricing and Cash Management Services Group (FPCMS), where he was appointed President in 1998. Previously, Mr. Hayes served as Chief Financial Officer of Fidelity Investments Corporate Systems and Service Group (1998) and Fidelity Systems Company (1997-1998). | |
John R. Hebble (45) | |
Year of Election or Appointment: 2003 Deputy Treasurer of the fund. Mr. Hebble also serves as Deputy Treasurer of other Fidelity funds (2003), and is an employee of FMR. Before joining Fidelity Investments, Mr. Hebble worked at Deutsche Asset Management where he served as Director of Fund Accounting (2002-2003) and Assistant Treasurer of the Scudder Funds (1998-2003). | |
John H. Costello (57) | |
Year of Election or Appointment: 1986 Assistant Treasurer of the fund. Mr. Costello also serves as Assistant Treasurer of other Fidelity funds and is an employee of FMR. | |
Francis V. Knox, Jr. (56) | |
Year of Election or Appointment: 2002 Assistant Treasurer of the fund. Mr. Knox also serves as Assistant Treasurer of other Fidelity funds (2002), and is a Vice President and an employee of FMR. Previously, Mr. Knox served as Vice President of Investment & Advisor Compliance (1990-2001), and Compliance Officer of Fidelity Management & Research (U.K.) Inc. (1992-2002), Fidelity Management & Research (Far East) Inc. (1991-2002), and FMR Corp. (1995-2002). | |
Mark Osterheld (48) | |
Year of Election or Appointment: 2002 Assistant Treasurer of the fund. Mr. Osterheld also serves as Assistant Treasurer of other Fidelity funds (2002) and is an employee of FMR. | |
Thomas J. Simpson (45) | |
Year of Election or Appointment: 2000 Assistant Treasurer of the fund. Mr. Simpson is Assistant Treasurer of other Fidelity funds (2000) and an employee of FMR (1996). Prior to joining FMR, Mr. Simpson was Vice President and Fund Controller of Liberty Investment Services (1987-1995). |
Annual Report
Distributions
The Board of Trustees of Fidelity International Small Cap Fund voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities, and dividends derived from net investment income:
Pay Date | Record Date | Dividends | Capital Gains | |
Institutional Class | 12/15/03 | 12/12/03 | $.03 | $.31 |
The fund will notify shareholders in January 2004 of amounts for use in preparing 2003 income tax returns.
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Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Far East) Inc.
Fidelity International
Investment Advisors
Fidelity Investments Japan Limited
Fidelity International Investment Advisors (U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Shareholder
Servicing Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Custodian
State Street Bank and Trust Company
Quincy, MA
Annual Report
Fidelity Advisor Aggressive Growth Fund |
Fidelity Advisor Asset Allocation Fund |
Fidelity Advisor Balanced Fund |
Fidelity Advisor Biotechnology Fund |
Fidelity Advisor California Municipal Income Fund |
Fidelity Advisor Consumer Industries Fund |
Fidelity Advisor Cyclical Industries Fund |
Fidelity Advisor Developing Communications Fund |
Fidelity Advisor Diversified International Fund |
Fidelity Advisor Dividend Growth Fund |
Fidelity Advisor Dynamic Capital Appreciation Fund |
Fidelity Advisor Electronics Fund |
Fidelity Advisor Emerging Asia Fund |
Fidelity Advisor Emerging Markets Income Fund |
Fidelity Advisor Equity Growth Fund |
Fidelity Advisor Equity Income Fund |
Fidelity Advisor Equity Value Fund |
Fidelity Advisor Europe Capital Appreciation Fund |
Fidelity Advisor Fifty Fund |
Fidelity Advisor Financial Services Fund |
Fidelity Advisor Floating Rate High Income Fund |
Fidelity Advisor Freedom Income FundSM |
Fidelity Advisor Freedom 2010 FundSM |
Fidelity Advisor Freedom 2020 FundSM |
Fidelity Advisor Freedom 2030 FundSM |
Fidelity Advisor Freedom 2040 FundSM |
Fidelity Advisor Global Equity Fund |
Fidelity Advisor Government Investment Fund |
Fidelity Advisor Growth & Income Fund |
Fidelity Advisor Growth Opportunities |
Fidelity Advisor Health Care Fund |
Fidelity Advisor High Income Advantage Fund |
Fidelity Advisor High Income Fund |
Fidelity Advisor Inflation-Protected Bond Fund |
Fidelity Advisor Intermediate Bond Fund |
Fidelity Advisor International Capital Appreciation Fund |
Fidelity Advisor International Small Cap Fund |
Fidelity Advisor Investment Grade Bond Fund |
Fidelity Advisor Japan Fund |
Fidelity Advisor Korea Fund |
Fidelity Advisor Large Cap Fund |
Fidelity Advisor Latin America Fund |
Fidelity Advisor Leveraged Company Stock Fund |
Fidelity Advisor Mid Cap Fund |
Fidelity Advisor Mortgage Securities Fund |
Fidelity Advisor Municipal Income Fund |
Fidelity Advisor Natural Resources Fund |
Fidelity Advisor New Insights Fund |
Fidelity Advisor New York Municipal Income Fund |
Fidelity Advisor Overseas Fund |
Fidelity Advisor Real Estate Fund |
Fidelity Advisor Short Fixed-Income Fund |
Fidelity Advisor Short Intermediate Municipal Income Fund |
Fidelity Advisor Small Cap Fund |
Fidelity Advisor Strategic Growth Fund |
Fidelity Advisor Strategic Income Fund |
Fidelity Advisor Tax Managed |
Fidelity Advisor Technology Fund |
Fidelity Advisor Telecommunications & Utilities Growth Fund |
Fidelity Advisor Value Leaders Fund |
Fidelity Advisor Value Strategies Fund |
Prime Fund |
Tax-Exempt Fund |
Treasury Fund |
(Fidelity (registered trademark) INVESTMENTS)
AISCI-UANN-1203
1.793572.100
Fidelity Advisor
International Small Cap
Fund - Class A, Class T, Class B
and Class C
Annual Report
October 31, 2003
(2_fidelity_logos) (Registered_Trademark)
Class A, Class T, Class B, and Class C are classes of Fidelity®
International Small Cap Fund
Contents
Chairman's Message | 3 | Ned Johnson's message to shareholders. |
Performance | 4 | How the fund has done over time. |
Management's Discussion | 6 | The managers' review of fund performance, strategy and outlook. |
Investment Summary | 7 | A summary of the fund's investments. |
Investments | 9 | A complete list of the fund's investments with their market values. |
Financial Statements | 20 | Statements of assets and liabilities, operations, and changes in net assets, |
Notes | 30 | Notes to the financial statements. |
Auditors' Opinion | 39 | |
Trustees and Officers | 40 | |
Distributions | 49 | |
For a free copy of the fund's proxy voting guidelines call 1-877-208-0098 or visit the Securities and Exchange Commission (SEC)'s web site at www.sec.gov.
Third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR Corp. or an affiliated company.
(Recycle graphic) This report is printed on recycled paper using soy-based inks.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
Mutual fund shares are not deposits or obligations of, or guaranteed by, any depository institution. Shares are not insured by the FDIC, Federal Reserve Board or any other agency, and are subject to investment risks, including possible loss of principal amount invested.
Neither the fund nor Fidelity Distributors Corporation is a bank.
For more information on any Fidelity Advisor fund, including charges and expenses, contact your investment professional for a free prospectus. Read it carefully before you invest or send money.
Annual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
Many of you have read or heard news stories recently that were critical of mutual funds and made allegations that the mutual fund industry has been less than forthright. I find these reports unsettling and not necessarily an accurate picture of the overall industry, and I would like you to know where we at Fidelity stand.
With specific regard to allegations that certain mutual fund companies were violating the Securities and Exchange Commission's forward pricing rules or were involved in so-called "market timing" activities, I want to say two things:
First, Fidelity does not have agreements that permit customers who buy fund shares after 4 p.m. to obtain the 4 p.m. price. This is not to say that someone could not deceive the company through fraudulent acts. But I underscore that we have no so-called "agreements" which would permit this illegal practice.
Second, Fidelity has been on record for years opposing predatory short-term trading which adversely affects other shareholders in a mutual fund. In fact, in the 1980s, we began charging a fee - which is returned to the fund and, therefore, to investors - to discourage this activity. What's more, several years ago we took the industry lead in developing a Fair Value Pricing Policy to prevent market timing on foreign securities in our funds. It is reasonable to assume that another structure can be developed that would alter the system to make it much more difficult for predatory traders to operate. This, however, will only be achieved through close cooperation among regulators, legislators and the industry.
Certainly no industry is perfect, and there have been instances of unethical and illegal activity from time to time within the mutual fund industry. When this occurs, confessed or convicted offenders should be dealt with appropriately. Clearly, every system can be improved. We applaud well thought out improvements by regulators, legislators and industry representatives that achieve the common goal of building and protecting the value of investors' holdings. But we remain concerned about the risk of over-regulation and the quick application of simplistic solutions to intricate problems.
For more than 57 years, Fidelity Investments has worked very hard to improve its products and service to justify your trust. When our family founded this company in 1946, we had only a few hundred customers. Many of them were family and friends. Today, we serve more than 18 million customers including individual investors and participants in retirement plans across America.
Let me close by saying that we do not take your trust in us for granted, and we realize that we must always work to improve all aspects of our service to you. In turn, we urge you to continue your active participation with your financial matters, so that your interests can be well served.
Annual Report
Best regards,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Annual Report
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' dividend income and capital gains (the profits earned upon the sale of securities that have grown in value) and assuming a constant rate of performance each year. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. How a fund did yesterday is no guarantee of how it will do tomorrow. Returns may reflect the conversion of Class B shares to Class A shares after a maximum of 7 years.
Average Annual Total Returns
Periods ending October 31, 2003 | Past 1 | Life of | ||
Class A (incl. 5.75% sales charge)B | 69.25% | 58.24% | ||
Class T (incl. 3.50% sales charge)C | 73.19% | 61.54% | ||
Class B (incl. contingent deferred sales charge)D | 73.87% | 62.89% | ||
Class C (incl. contingent deferred sales charge)E | 78.07% | 66.43% |
A From September 18, 2002.
B Class A shares bear a 0.25% 12b-1 fee. The initial offering of Class A shares took place on May 27, 2003. Returns prior to May 27, 2003 are those of Fidelity International Small Cap Fund, the original class of the fund, which has no 12b-1 fee. Had Class A shares' 12b-1 fee been reflected, returns prior to May 27, 2003 would have been lower.
C Class T shares bear a 0.50% 12b-1 fee. The initial offering of Class T shares took place on May 27, 2003. Returns prior to May 27, 2003 are those of International Small Cap, the original class of the fund, which has no 12b-1 fee. Had Class T shares' 12b-1 fee been reflected, returns prior to May 27, 2003 would have been lower.
D Class B shares bear a 1.00% 12b-1 fee. The initial offering of Class B shares took place on May 27, 2003. Returns prior to May 27, 2003 are those of International Small Cap, the original class of the fund, which has no 12b-1 fee. Had Class B shares' 12b-1 fee been reflected, returns prior to May 27, 2003 would have been lower. Class B shares' contingent deferred sales charge included in the past one year and life of fund total return figure is 5% and 4%, respectively.
E Class C shares bear a 1.00% 12b-1 fee. The initial offering of Class C shares took place on May 27, 2003. Returns prior to May 27, 2003 are those of International Small Cap, the original class of the fund, which has no 12b-1 fee. Had Class C shares' 12b-1 fee been reflected, returns prior to May 27, 2003 would have been lower. Class C shares' contingent deferred sales charge included in the past one year and life of fund total return figure is 1% and 0%, respectively.
Annual Report
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity Advisor International Small Cap Fund - Class T on September 18, 2002, when the fund started, and the current 3.50% sales charge was paid. The chart shows how the value of your investment would have grown, and also shows how the MSCI® EAFE® Small Cap Index did over the same period.
Annual Report
Management's Discussion of Fund Performance
Comments from L.C. Kvaal and Tokuya Sano, Co-Portfolio Managers of Fidelity Advisor International Small Cap Fund
Mirroring the U.S. rally, most international stock markets rebounded sharply during the 12-month period ending October 31, 2003. Encouraged by improved corporate earnings, favorable interest rates and the easing of geopolitical tensions, the Morgan Stanley Capital InternationalSM Europe, Australasia, Far East (MSCI® EAFE®) Index - a proxy for stock markets outside the United States and Canada - gained 27.39% during the past year. From a regional perspective, all 16 countries in the MSCI Europe index - which gained 24.56% - had double-digit advances. Spain, Denmark and Sweden were among the region's best performers. In Japan, increased capital spending, exports and machinery orders helped the Tokyo Stock Exchange Stock Price Index (TOPIX) advance 36.39%. Following the SARS epidemic, other Asian markets also rebounded. For instance, the Hong Kong market, as measured by the Hang Seng Index, gained 34.51%. Emerging markets also fared well, particularly Latin America. The MSCI Emerging Markets Free Latin America Index rose 59.75%. Canadian equities, as measured by the S&P/TSX Composite Index, also posted an impressive annual gain, advancing 50.66%.
For the 12 months ending October 31, 2003, fund's Class A, Class T, Class B and Class C shares returned 79.58%, 79.47%, 78.87% and 79.07%, respectively. Those results far surpassed the 54.73% return of the Morgan Stanley Capital International Europe, Australasia, Far East Small Cap Index. The fund also beat the 47.55% return of the LipperSM International Small Cap Funds Average. Favorable stock selection, particularly in Germany and Japan, was the driving force behind the fund's outperformance. Hyrican Informationssysteme - a German private-label personal computer assembler - was our top contributor both in absolute terms and compared with the index. The company benefited from healthy demand for PCs and its ability to grow market share. Japan-based NOK - the largest maker of flexible circuit boards in the world - also helped our results. The top detractor relative to the index was Nissin Kogyo, a Japanese auto parts company whose stock price was hurt by weak auto sales in the United States and Japan. Oystertec, a U.K.-based developer of pipe-joining technology, also held back performance, as weak demand forced the company to close a number of production sites in late 2002 and early 2003.
The views expressed in this statement reflect those of the portfolio manager only through the end of the period of the report as stated on the cover and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Investment Summary
Geographic Diversification (% of fund's net assets) | |||
As of October 31, 2003 | |||
Japan 29.3% | |||
United Kingdom 14.8% | |||
United States of America 13.4% | |||
Germany 10.7% | |||
Australia 6.4% | |||
Sweden 3.6% | |||
Hong Kong 3.5% | |||
France 2.5% | |||
Greece 2.5% | |||
Other 13.3% |
Percentages are adjusted for the effect of futures contracts, if applicable. |
As of April 30, 2003 | |||
Japan 27.8% | |||
United Kingdom 22.6% | |||
United States of America 7.7% | |||
Germany 7.6% | |||
Australia 7.2% | |||
Switzerland 3.8% | |||
Hong Kong 3.4% | |||
Finland 3.2% | |||
Norway 3.0% | |||
Other 13.7% |
Percentages are adjusted for the effect of futures contracts, if applicable. |
Asset Allocation | ||
% of fund's | % of fund's net assets | |
Stocks | 87.0 | 92.8 |
Bonds | 0.0 | 0.2 |
Short-Term Investments and Net Other Assets | 13.0 | 7.0 |
Top Ten Stocks as of October 31, 2003 | ||
% of fund's | % of fund's net assets | |
MobilCom AG (Germany, Wireless Telecommunication Services) | 4.0 | 0.0 |
Toyoda Gosei Co. Ltd. (Japan, Auto Components) | 1.5 | 0.3 |
NOK Corp. (Japan, Auto Components) | 1.4 | 2.3 |
Fujikura Ltd. (Japan, Electrical Equipment) | 1.4 | 0.9 |
Draegerwerk AG (non-vtg.) (Germany, Health Care Equipment & Supplies) | 1.2 | 0.0 |
Germanos SA (Greece, Specialty Retail) | 1.1 | 0.2 |
ARRK Corp. (Japan, Commercial Services & Supplies) | 1.1 | 1.5 |
Australian Stock Exchange Ltd. (Australia, Diversified Financial Services) | 1.1 | 1.3 |
Pacific Metals Co. Ltd. (Japan, Metals & Mining) | 1.0 | 0.0 |
QBE Insurance Group Ltd. (Australia, Insurance) | 1.0 | 1.3 |
14.8 | ||
Market Sectors as of October 31, 2003 | ||
% of fund's | % of fund's net assets | |
Consumer Discretionary | 19.9 | 24.5 |
Information Technology | 16.5 | 20.8 |
Industrials | 14.0 | 12.8 |
Financials | 12.8 | 11.3 |
Health Care | 8.4 | 13.5 |
Materials | 7.3 | 5.4 |
Telecommunication Services | 5.0 | 0.6 |
Consumer Staples | 2.4 | 2.2 |
Energy | 0.6 | 1.3 |
Utilities | 0.1 | 0.6 |
Annual Report
Investments October 31, 2003
Showing Percentage of Net Assets
Common Stocks - 85.0% | |||
Shares | Value (Note 1) | ||
Australia - 6.4% | |||
Amcor Ltd. | 539,933 | $ 3,248,169 | |
Australian Stock Exchange Ltd. | 520,006 | 5,888,548 | |
BHP Steel Ltd. | 1,300,971 | 4,990,531 | |
Boral Ltd. | 1,403,888 | 5,464,810 | |
Centamin Egypt Ltd. (a) | 760,127 | 172,265 | |
Corporate Express Australia Ltd. | 1,179,852 | 4,876,635 | |
Patrick Corp. Ltd. | 63,631 | 657,509 | |
QBE Insurance Group Ltd. | 777,796 | 5,669,997 | |
Stockland | 303,531 | 1,041,897 | |
Westpac Banking Corp. | 305,505 | 3,491,972 | |
TOTAL AUSTRALIA | 35,502,333 | ||
Belgium - 0.1% | |||
Melexis NV | 70,000 | 764,693 | |
China - 0.2% | |||
Aluminum Corp. of China Ltd. (H Shares) | 2,662,000 | 1,371,175 | |
PICC Property & Casualty Co. Ltd. (H Shares) | 122,000 | 28,564 | |
TOTAL CHINA | 1,399,739 | ||
Denmark - 1.3% | |||
Bang & Olufsen AS Series B | 11,121 | 429,790 | |
Coloplast AS Series B | 6,300 | 528,183 | |
DSV de Sammensluttede Vognmaend AS | 28,767 | 1,008,645 | |
Group 4 Falck AS | 42,145 | 942,452 | |
Kompan AS Class B | 8,171 | 835,079 | |
Radiometer AS Series B | 10,704 | 644,699 | |
SimCorp AS | 40,852 | 1,476,939 | |
Vestas Wind Systems AS | 67,018 | 1,404,672 | |
TOTAL DENMARK | 7,270,459 | ||
Estonia - 0.2% | |||
Hansabank SA | 42,132 | 956,145 | |
Finland - 1.8% | |||
Aldata Solutions Oyj (a) | 1,178,010 | 2,742,978 | |
Alma Media Corp. | 33,255 | 1,171,137 | |
Capman Oyj (A Shares) | 176,777 | 362,474 | |
Elcoteq Network Corp. (A Shares) | 60,974 | 1,030,569 | |
Finnlines Oyj | 24,877 | 786,752 | |
Hackman Oyj AB (A Shares) | 24,120 | 915,094 | |
Nokian Tyres Ltd. | 7,828 | 582,732 | |
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
Finland - continued | |||
Novo Group Oyj | 147,320 | $ 827,715 | |
Vacon Oyj | 120,250 | 1,418,111 | |
TOTAL FINLAND | 9,837,562 | ||
France - 2.5% | |||
Generale de Sante | 206,371 | 2,462,426 | |
Groupe Bourbon SA | 10,540 | 900,492 | |
Groupe Open SA | 14,809 | 445,185 | |
Groupe Open SA warrants 10/21/06 (a) | 14,809 | 9,092 | |
Hubwoo.com (a) | 12,668 | 39,770 | |
Infovista SA (a) | 37,551 | 93,092 | |
Inter Parfums SA | 8,534 | 533,855 | |
Ipsos SA | 11,694 | 983,506 | |
JET Multimedia SA (a) | 103,878 | 1,919,383 | |
Lectra (a) | 60,300 | 468,724 | |
Medidep SA (a) | 40,169 | 800,381 | |
Orpea (a) | 34,953 | 554,731 | |
SR Teleperformance SA | 49,895 | 945,044 | |
Stallergenes | 6,245 | 274,912 | |
Stedim SA | 37,663 | 2,172,809 | |
Toupargel-Agrigel | 1,727 | 115,037 | |
Trigano SA | 35,799 | 1,532,781 | |
TOTAL FRANCE | 14,251,220 | ||
Germany - 8.7% | |||
Advanced Photonics Technologies AG (a) | 44,139 | 107,890 | |
Bijou Brigitte Modische Accessoires AG | 14,898 | 602,325 | |
Continental AG | 41,066 | 1,389,129 | |
DAB Bank AG (a) | 65,900 | 540,500 | |
Deutsche Boerse AG | 12,778 | 707,864 | |
ElringKlinger AG | 16,686 | 1,420,747 | |
Freenet.de AG (a) | 97,516 | 5,648,371 | |
Fresenius AG | 27,796 | 1,992,875 | |
Fresenius Medical Care AG | 20,764 | 1,179,851 | |
Grenkeleasing AG | 104,052 | 2,193,811 | |
Hyrican Informationssysteme AG | 190,599 | 3,157,432 | |
Kontron AG (a) | 176,464 | 1,236,770 | |
Merck KGaA | 43,541 | 1,519,759 | |
MobilCom AG (a) | 1,636,952 | 22,452,512 | |
Pfeiffer Vacuum Technology AG | 20,648 | 686,255 | |
Pulsion Medical Systems AG (a) | 132,565 | 359,354 | |
Pulsion Medical Systems AG (a)(e) | 24,300 | 65,872 | |
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
Germany - continued | |||
REPower Systems AG | 30,113 | $ 605,244 | |
Rheinmetall AG | 17,348 | 532,163 | |
United Internet AG | 77,781 | 1,627,304 | |
Zapf Creation AG (a) | 14,400 | 444,734 | |
TOTAL GERMANY | 48,470,762 | ||
Greece - 2.5% | |||
Autohellas SA | 23,308 | 194,408 | |
Folli Follie SA | 67,292 | 1,571,561 | |
Germanos SA | 293,797 | 6,330,494 | |
Greek Organization of Football Prognostics SA | 77,010 | 945,650 | |
Hellenic Exchanges Holding SA (a) | 465,639 | 3,085,480 | |
Hyatt Regency SA (Reg.) | 158,024 | 1,365,649 | |
Public Power Corp. of Greece | 25,100 | 539,089 | |
TOTAL GREECE | 14,032,331 | ||
Hong Kong - 3.5% | |||
ASM Pacific Technology Ltd. | 659,000 | 2,465,225 | |
China Insurance International Holdings Co. Ltd. | 6,762,000 | 4,527,969 | |
China Merchants Holdings International Co. Ltd. | 3,330,000 | 4,502,550 | |
China Pharmaceutical Enterprise and Investment Corp. Ltd. | 10,720,000 | 3,658,185 | |
Hang Lung Group Ltd. | 251,000 | 323,220 | |
JCG Holdings Ltd. | 952,000 | 717,163 | |
Kingboard Chemical Holdings Ltd. | 2,586,000 | 3,463,274 | |
TOTAL HONG KONG | 19,657,586 | ||
Ireland - 0.7% | |||
IAWS Group PLC (Ireland) | 38,059 | 405,623 | |
ICON PLC sponsored ADR (a) | 23,746 | 1,015,142 | |
Independent News & Media PLC (Ireland) | 738,870 | 1,609,175 | |
Kingspan Group PLC (Ireland) | 143,001 | 621,223 | |
Paddy Power PLC | 18,797 | 137,838 | |
TOTAL IRELAND | 3,789,001 | ||
Italy - 0.6% | |||
Amplifon Spa | 43,750 | 1,120,076 | |
Cassa Di Risparmio Di Firenze | 1,414,768 | 2,187,982 | |
TOTAL ITALY | 3,308,058 | ||
Japan - 29.3% | |||
Able, Inc. | 133,700 | 3,769,965 | |
Amiyaki Tei Co. Ltd. (a) | 436 | 1,340,440 | |
ARRK Corp. | 94,700 | 6,305,294 | |
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
Japan - continued | |||
Asahi Broadcasting Corp. | 26,340 | $ 1,593,242 | |
Bank of Yokohama Ltd. | 228,000 | 985,083 | |
Capcom Co. Ltd. | 111,800 | 1,444,024 | |
Chugoku Marine Paints Ltd. | 17,000 | 77,779 | |
Citizen Electronics Co. Ltd. | 28,100 | 2,632,618 | |
CMK Corp. | 2,000 | 16,573 | |
Crymson Co. Ltd. | 268 | 753,247 | |
Culture Convenience Club Co. Ltd. | 52,200 | 497,595 | |
Drake Beam Morin Japan, Inc. | 135,400 | 3,460,742 | |
Enplas Corp. | 5,000 | 166,000 | |
Faith, Inc. | 257 | 2,092,186 | |
Fuji Seal, Inc. | 129,900 | 4,537,165 | |
Fuji Soft ABC, Inc. | 86,800 | 2,629,107 | |
Fuji Spinning Co. Ltd. (a) | 1,826,000 | 1,959,869 | |
Fujikura Ltd. | 1,265,000 | 7,605,648 | |
Globaly Corp. | 500 | 12,734 | |
H.I.S. Co. Ltd. | 46,400 | 970,711 | |
Heian Ceremony Service Co. Ltd. | 112,000 | 601,055 | |
Hitachi Medical Corp. | 6,000 | 69,911 | |
Hogy Medical Co. | 30,600 | 1,500,218 | |
Horiba Ltd. | 163,000 | 1,779,152 | |
House of Rose Co. Ltd. | 18,100 | 181,099 | |
Iriso Electronics Co. Ltd. | 149,000 | 1,897,398 | |
Japan Medical Dynamic Marketing, Inc. | 67,800 | 955,885 | |
Japan Radio Co. Ltd. (a) | 202,000 | 977,479 | |
Jastec Co. Ltd. | 85,400 | 1,422,298 | |
Kahma Co. Ltd. | 50,900 | 412,052 | |
Kibun Food Chemifa Co. Ltd. | 261,000 | 2,628,042 | |
Kobe Steel Ltd. Ord. (a) | 1,500,000 | 1,923,777 | |
Komehyo Co. Ltd. | 2,000 | 67,128 | |
Konica Minolta Holdings, Inc. | 305,500 | 4,015,349 | |
Kura Corp. Ltd. | 202 | 790,067 | |
Matsui Securities Co. Ltd. | 34,500 | 828,452 | |
Mitsui Trust Holdings, Inc. | 445,000 | 2,367,882 | |
Murata Manufacturing Co. Ltd. | 26,200 | 1,489,449 | |
New Japan Radio Co. Ltd. | 34,000 | 451,828 | |
Nichii Gakkan Co. | 96,770 | 5,263,640 | |
Nidec Corp. | 29,700 | 2,877,069 | |
Nihon Dempa Kogyo Co. Ltd. | 269,600 | 5,468,510 | |
Nippon Light Metal Co. Ltd. | 1,416,000 | 3,644,970 | |
Nippon Mining Holdings, Inc. | 138,000 | 504,602 | |
Nippon Sheet Glass Co. Ltd. | 273,000 | 839,312 | |
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
Japan - continued | |||
Nippon Thompson Co. Ltd. | 3,000 | $ 19,975 | |
Nissin Co. Ltd. | 133,600 | 498,235 | |
Nissin Kogyo Co. Ltd. | 174,000 | 3,750,955 | |
NOK Corp. | 205,000 | 8,073,949 | |
NTN Corp. | 123,000 | 641,068 | |
Osaki Electric Co. Ltd. | 48,000 | 249,300 | |
Pacific Metals Co. Ltd. (a) | 1,199,000 | 5,714,717 | |
Pigeon Corp. | 52,000 | 622,922 | |
Rohto Pharmaceutical Co. Ltd. | 75,000 | 621,475 | |
Salomon & Taylor Made Co. Ltd. | 26,000 | 198,181 | |
Sanken Electric Co. Ltd. | 306,000 | 3,392,887 | |
Sankyo Aluminum Industry Co. Ltd. | 1,204,000 | 4,457,231 | |
Scinex Corp. (a)(d) | 1,000 | 6,367 | |
Senshukai Co. Ltd. | 320,000 | 3,920,684 | |
Siix Corp. | 23,900 | 470,652 | |
SKY Perfect Communications, Inc. (a) | 489 | 596,016 | |
Sodick Co. Ltd. (a) | 504,000 | 3,722,467 | |
Stanley Electric Co. Ltd. | 194,000 | 4,129,161 | |
Sumitomo Corp. | 722,000 | 5,010,787 | |
Sumitomo Metal Mining Co. Ltd. | 455,000 | 3,120,520 | |
Sumitomo Mitsui Financial Group, Inc. | 811 | 4,079,343 | |
Suncall Corp. | 124,000 | 744,406 | |
Taiheiyo Cement Corp. | 80,000 | 197,926 | |
Takeuchi Manufacturing Co. Ltd. | 93,500 | 3,146,716 | |
Tokyo Ohka Kogyo Co. Ltd. | 9,600 | 174,641 | |
Tokyo Seimitsu Co. Ltd. | 51,600 | 1,614,553 | |
Toyo Ink Manufacturing Co. Ltd. | 377,000 | 1,399,090 | |
Toyo Kohan Co. Ltd. | 73,000 | 204,512 | |
Toyo Machinery & Metal Co. Ltd. | 149,000 | 1,223,822 | |
Toyoda Gosei Co. Ltd. | 282,700 | 8,357,058 | |
Tsumura & Co. (a) | 78,000 | 814,481 | |
Ube Industries Ltd. | 360,000 | 772,785 | |
USS Co. Ltd. | 31,070 | 2,207,174 | |
Works Applications Co. Ltd. (a) | 195 | 947,153 | |
Yamada Denki Co. Ltd. | 39,100 | 1,244,770 | |
Yamato Transport Co. Ltd. | 118,000 | 1,568,110 | |
TOTAL JAPAN | 163,720,735 | ||
Korea (South) - 0.7% | |||
Pulmuone Co. Ltd. | 30,520 | 1,387,389 | |
SKC Co. Ltd. | 187,810 | 2,618,389 | |
TOTAL KOREA (SOUTH) | 4,005,778 | ||
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
Liechtenstein - 0.3% | |||
Verwaltungs-und Privat-Bank AG | 13,770 | $ 1,797,516 | |
Luxembourg - 0.7% | |||
SBS Broadcasting SA (a) | 52,789 | 1,496,040 | |
Stolt-Nielsen SA | 260,573 | 2,226,478 | |
TOTAL LUXEMBOURG | 3,722,518 | ||
Netherlands - 1.7% | |||
Airspray NV | 5,933 | 116,842 | |
Buhrmann NV (a) | 62,251 | 555,283 | |
Completel Europe NV (a) | 64,996 | 1,731,776 | |
Exact Holdings NV (a) | 34,856 | 847,958 | |
Fugro NV (Certificaten Van Aandelen) | 4,587 | 229,822 | |
Hunter Douglas NV | 8,820 | 329,004 | |
Koninklijke Nedlloyd NV | 60,113 | 1,931,059 | |
Ordina NV | 68,223 | 711,296 | |
PinkRoccade NV | 90,416 | 1,066,278 | |
Van der Moolen Holding NV | 39,782 | 341,954 | |
Vedior NV (Certificaten Van Aandelen) | 99,922 | 1,435,358 | |
TOTAL NETHERLANDS | 9,296,630 | ||
New Zealand - 0.1% | |||
The Warehouse Group Ltd. | 154,961 | 542,068 | |
Norway - 1.8% | |||
ABG Sundal Collier ASA | 2,146,083 | 1,403,596 | |
Bolig- og Naeringsbanken ASA | 18,185 | 556,308 | |
Gresvig AS (a) | 292,290 | 1,040,105 | |
Komplett ASA | 13,600 | 328,054 | |
Kverneland ASA | 51,809 | 521,019 | |
Norman ASA | 38,400 | 322,710 | |
Orkla ASA (A Shares) | 54,614 | 1,138,784 | |
P4 Radio Hele Norge ASA (a) | 141,400 | 83,530 | |
Tandberg ASA (a) | 152,405 | 1,067,508 | |
TANDBERG Data ASA (a) | 140,300 | 351,253 | |
Tandberg Storage ASA (a) | 140,300 | 29,600 | |
TANDBERG Television ASA (a) | 496,592 | 1,857,907 | |
TGS Nopec Geophysical Co. ASA (a) | 103,930 | 1,162,119 | |
TOTAL NORWAY | 9,862,493 | ||
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
Singapore - 0.7% | |||
Singapore Exchange Ltd. | 1,500,000 | $ 1,431,446 | |
Venture Corp. Ltd. | 216,000 | 2,346,881 | |
TOTAL SINGAPORE | 3,778,327 | ||
South Africa - 0.0% | |||
Discovery Holdings Ltd. (a) | 2,500 | 3,665 | |
Wilson Bayly Holmes-Ovcon Ltd. | 1,300 | 2,548 | |
TOTAL SOUTH AFRICA | 6,213 | ||
Spain - 0.5% | |||
Corporacion Mapfre SA (Reg.) | 180,201 | 2,237,841 | |
Recoletos Grupo de Comunicacion SA | 77,043 | 589,053 | |
TOTAL SPAIN | 2,826,894 | ||
Sweden - 3.6% | |||
Audio Development Informationsteknik i Malmo AB (AudioDev) (B Shares) | 35,817 | 202,113 | |
Bilia AB (A Shares) | 171,387 | 1,969,261 | |
Eniro AB | 99,565 | 794,456 | |
Hexagon AB (B Shares) | 22,871 | 540,182 | |
Lindex AB | 14,900 | 433,715 | |
Lundin Petroleum AB (a) | 576,250 | 1,383,094 | |
Micronic Laser Systems AB (a) | 11,808 | 95,727 | |
Modern Times Group AB (MTG) (B Shares) (a) | 59,633 | 1,115,340 | |
Observer AB | 243,921 | 968,484 | |
OMHEX AB | 214,965 | 2,195,537 | |
ORC Software AB | 112,783 | 1,295,893 | |
Sectra AB (B Shares) | 237,456 | 1,758,305 | |
Song Networks Holding AB (a) | 612,563 | 3,988,448 | |
Teleca AB (B Shares) | 488,488 | 2,419,739 | |
Wedins Norden AB Series B (a) | 4,354,560 | 956,215 | |
TOTAL SWEDEN | 20,116,509 | ||
Switzerland - 1.9% | |||
A Hiestand Holding AG | 1,533 | 503,148 | |
Actelion Ltd. (Reg.) (a) | 16,228 | 1,537,339 | |
Ascom Holding AG (Reg.) (a) | 82,077 | 587,751 | |
Bank Sarasin & Co. Ltd. Series B (Reg.) | 687 | 1,014,665 | |
Belimo Holding AG (Reg.) | 2,454 | 906,109 | |
Georg Fischer AG (Reg.) (a) | 11,396 | 1,910,526 | |
Swiss Life Holding (a) | 13,291 | 2,245,570 | |
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
Switzerland - continued | |||
Swissquote Group Holding SA (a) | 20,104 | $ 1,424,646 | |
Temenos Group AG (a) | 131,181 | 719,216 | |
TOTAL SWITZERLAND | 10,848,970 | ||
United Kingdom - 14.8% | |||
Alba PLC | 18,700 | 202,786 | |
Amlin PLC | 193,220 | 474,718 | |
Arena Leisure PLC (a) | 82,200 | 66,854 | |
Atrium Underwriting PLC (a) | 269,360 | 846,629 | |
BBA Group PLC | 140,116 | 616,679 | |
Boosey & Hawkes PLC (a) | 99,605 | 362,857 | |
Caffe Nero Group PLC (a) | 350,478 | 252,386 | |
Collins Stewart Tullett PLC | 221,955 | 1,447,910 | |
Computacenter PLC | 129,613 | 1,010,235 | |
Corin Group PLC | 739,925 | 2,588,950 | |
Cox Insurance Holdings PLC (a) | 101,139 | 139,666 | |
CSS Stellar PLC | 46,500 | 64,607 | |
CustomVis PLC | 375,215 | 419,604 | |
De La Rue PLC | 49,426 | 234,912 | |
Derwent Valley Holdings PLC | 70,590 | 801,372 | |
Domino's Pizza UK & IRL PLC | 185,515 | 539,087 | |
Domnick Hunter Group PLC | 154,089 | 1,035,216 | |
Eidos PLC (a) | 1,380,900 | 3,650,083 | |
Electra Investment Trust PLC (a) | 108,683 | 1,157,398 | |
Flomerics Group PLC | 449,658 | 510,473 | |
French Connection Group PLC | 32,132 | 1,073,917 | |
Future Network PLC (a) | 1,331,893 | 1,286,353 | |
Games Workshop Group PLC | 203,858 | 2,400,648 | |
Hardy Underwriting Group PLC | 78,801 | 353,161 | |
Henlys Group PLC | 281,455 | 419,670 | |
Highbury House Communications PLC | 464,036 | 220,154 | |
Holidaybreak PLC | 88,011 | 842,561 | |
Hornby PLC | 147,646 | 2,745,631 | |
Icap PLC | 101,450 | 2,378,193 | |
Integrated Dental Holdings PLC | 33,843 | 19,210 | |
Intercontinental Hotels Group PLC | 116,276 | 1,053,554 | |
Interior Services Group PLC | 89,201 | 256,942 | |
Intertek Group PLC | 89,410 | 777,934 | |
ITE Group PLC | 1,977,342 | 1,750,588 | |
JJB Sports PLC | 203,657 | 985,193 | |
John David Group PLC | 159,679 | 531,651 | |
KBC Advanced Technologies PLC | 183,208 | 133,484 | |
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
United Kingdom - continued | |||
Kesa Electricals PLC | 1,134,401 | $ 4,689,995 | |
LA Fitness PLC | 459,104 | 1,174,638 | |
Lambert Howarth Group PLC | 1,094,513 | 4,376,721 | |
Lawrence PLC | 907,566 | 4,644,095 | |
Lok'nStore Group PLC (a) | 250,000 | 332,526 | |
Luminar PLC | 76,012 | 553,817 | |
Manpower Software PLC (a) | 500,000 | 199,092 | |
Marlborough Stirling PLC (a) | 345,669 | 307,493 | |
Matalan PLC | 621,071 | 2,788,708 | |
Matchnet PLC unit (a) | 650,690 | 2,208,610 | |
Mothercare PLC (a) | 231,362 | 1,266,224 | |
MyTravel Group PLC (a) | 19,977 | 6,262 | |
MyTravel Group PLC warrants 1/5/07 (a) | 83,903 | 12,084 | |
NDS Group PLC sponsored ADR (a) | 62,116 | 1,087,651 | |
Ocean Wilsons Holdings Ltd. | 144,111 | 330,866 | |
Online Travel Corp. PLC (a)(c) | 6,724,450 | 2,164,843 | |
Oystertec PLC (a) | 3,258,112 | 800,479 | |
Pace Micro Technology PLC | 158,774 | 174,867 | |
Peacock Group PLC | 313,014 | 1,264,935 | |
Pendragon PLC | 139,416 | 512,611 | |
Proteome Sciences PLC (a) | 177,387 | 507,954 | |
QA PLC (a) | 2,392,862 | 288,881 | |
Royalblue Group PLC | 39,500 | 299,506 | |
Safeway PLC | 866,189 | 4,256,245 | |
Sanctuary Group PLC | 1,099,800 | 941,068 | |
Shore Capital Group PLC | 3,722,696 | 1,356,163 | |
Singer & Friedlander Group PLC | 269,012 | 959,488 | |
SMG PLC | 1,135,042 | 1,942,447 | |
St. James's Place Capital PLC | 561,700 | 1,475,204 | |
Staffware PLC | 39,312 | 411,318 | |
Ted Baker PLC | 194,249 | 1,188,179 | |
Unite Group PLC | 136,286 | 359,085 | |
Urbium PLC (a) | 28,800 | 211,786 | |
Vanco PLC (a) | 7,690 | 32,249 | |
Wellington Underwriting PLC | 427,034 | 575,235 | |
William Hill PLC | 230,260 | 1,322,617 | |
Wolfson Microelectronics PLC (a) | 614,650 | 2,473,475 | |
WS Atkins PLC | 255,671 | 1,743,666 | |
TOTAL UNITED KINGDOM | 82,892,349 | ||
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
United States of America - 0.4% | |||
ActivCard Corp. (a) | 81,705 | $ 690,407 | |
ResMed, Inc. Chess Depositary Interests (a) | 374,191 | 1,589,002 | |
TOTAL UNITED STATES OF AMERICA | 2,279,409 | ||
TOTAL COMMON STOCKS (Cost $404,133,509) | 474,936,298 | ||
Nonconvertible Preferred Stocks - 2.0% | |||
Germany - 2.0% | |||
Draegerwerk AG (non-vtg.) | 114,882 | 6,474,588 | |
Fresenius AG | 37,105 | 2,363,276 | |
Fresenius Medical Care AG | 35,662 | 1,458,336 | |
Rheinmetall AG | 27,277 | 837,691 | |
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $9,445,007) | 11,133,891 |
Convertible Bonds - 0.0% | ||||
Principal Amount | ||||
United Kingdom - 0.0% | ||||
MyTravel Group PLC 7% 1/5/07 | GBP | 176,898 | 80,929 |
Money Market Funds - 18.8% | |||
Shares | Value (Note 1) | ||
Fidelity Cash Central Fund, 1.07% (b) | 77,015,277 | $ 77,015,277 | |
Fidelity Securities Lending Cash Central Fund, 1.09% (b) | 27,749,444 | 27,749,444 | |
TOTAL MONEY MARKET FUNDS (Cost $104,764,721) | 104,764,721 | ||
TOTAL INVESTMENT PORTFOLIO - 105.8% (Cost $518,420,264) | 590,915,839 | ||
NET OTHER ASSETS - (5.8)% | (32,177,171) | ||
NET ASSETS - 100% | $ 558,738,668 |
Currency Abbreviations | ||
GBP | - | British pound |
Legend |
(a) Non-income producing |
(b) The rate quoted is the annualized seven-day yield of the fund at period end. A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request. |
(c) Affiliated company |
(d) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
(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 $65,872 or 0.0% of net assets. |
Additional information on each holding is as follows: |
Security | Acquisition Date | Acquisition Cost |
Pulsion Medical Systems AG | 10/20/03 | $ 56,643 |
Other Information |
Purchases and sales of securities, other than short-term securities, aggregated $494,754,815 and $95,853,957, respectively. |
The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $167 for the period. |
Income Tax Information |
The fund hereby designates approximately $85,000 as a capital gain dividend for the purpose of the dividend paid deduction. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements
Statement of Assets and Liabilities
October 31, 2003 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $26,503,556) (cost $518,420,264) - See accompanying schedule | $ 590,915,839 | |
Foreign currency held at value (cost $667,432) | 667,177 | |
Receivable for investments sold | 4,647,029 | |
Receivable for fund shares sold | 8,167,917 | |
Dividends receivable | 533,201 | |
Interest receivable | 61,503 | |
Redemption fees receivable | 5,961 | |
Prepaid expenses | 529 | |
Other receivables | 54,870 | |
Total assets | 605,054,026 | |
Liabilities | ||
Payable for investments purchased | $ 17,758,544 | |
Delayed delivery | 6,367 | |
Payable for fund shares redeemed | 331,765 | |
Accrued management fee | 351,933 | |
Distribution fees payable | 3,649 | |
Other payables and accrued expenses | 113,656 | |
Collateral on securities loaned, at value | 27,749,444 | |
Total liabilities | 46,315,358 | |
Net Assets | $ 558,738,668 | |
Net Assets consist of: | ||
Paid in capital | $ 474,304,360 | |
Undistributed net investment income | 614,412 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 11,335,639 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 72,484,257 | |
Net Assets | $ 558,738,668 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
October 31, 2003 | ||
Calculation of Maximum Offering Price | $ 17.69 | |
Maximum offering price per share (100/94.25 of $17.69) | $ 18.77 | |
Class T: | $ 17.68 | |
Maximum offering price per share (100/96.50 of $17.68) | $ 18.32 | |
Class B: | $ 17.62 | |
Class C: | $ 17.64 | |
International Small Cap Fund: | $ 17.71 | |
Institutional Class: | $ 17.72 |
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.
Annual Report
Statement of Operations
Year ended October 31, 2003 | ||
Investment Income | ||
Dividends | $ 1,947,285 | |
Special Dividends | 235,363 | |
Interest | 175,661 | |
Security lending | 81,504 | |
2,439,813 | ||
Less foreign taxes withheld | (182,569) | |
Total income | 2,257,244 | |
Expenses | ||
Management fee | $ 974,384 | |
Performance adjustment | 29,591 | |
Transfer agent fees | 225,702 | |
Distribution fees | 8,229 | |
Accounting and security lending fees | 93,965 | |
Non-interested trustees' compensation | 307 | |
Custodian fees and expenses | 230,448 | |
Registration fees | 159,831 | |
Audit | 42,608 | |
Legal | 5,300 | |
Miscellaneous | 1,922 | |
Total expenses before reductions | 1,772,287 | |
Expense reductions | (31,757) | 1,740,530 |
Net investment income (loss) | 516,714 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities (including realized gain (loss) of $15,787 on sales of investments in affiliated issuers) | 11,325,196 | |
Foreign currency transactions | 118,286 | |
Total net realized gain (loss) | 11,443,482 | |
Change in net unrealized appreciation (depreciation) on: Investment securities | 72,493,135 | |
Assets and liabilities in foreign currencies | (11,164) | |
Total change in net unrealized appreciation (depreciation) | 72,481,971 | |
Net gain (loss) | 83,925,453 | |
Net increase (decrease) in net assets resulting from operations | $ 84,442,167 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements - continued
Statement of Changes in Net Assets
Year ended | For the period | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $ 516,714 | $ (1,766) |
Net realized gain (loss) | 11,443,482 | 18,692 |
Change in net unrealized appreciation (depreciation) | 72,481,971 | 2,286 |
Net increase (decrease) in net assets resulting | 84,442,167 | 19,212 |
Distributions to shareholders from net realized gain | (27,060) | - |
Share transactions - net increase (decrease) | 470,607,516 | 3,405,761 |
Redemption fees | 290,434 | 638 |
Total increase (decrease) in net assets | 555,313,057 | 3,425,611 |
Net Assets | ||
Beginning of period | 3,425,611 | - |
End of period (including undistributed net investment income of $614,412 and accumulated net investment loss of $2,120, respectively) | $ 558,738,668 | $ 3,425,611 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class A
Year ended October 31, | 2003 G |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 12.35 |
Income from Investment Operations | |
Net investment income (loss) E | .02 F |
Net realized and unrealized gain (loss) | 5.30 |
Total from investment operations | 5.32 |
Redemption fees added to paid in capital E | .02 |
Net asset value, end of period | $ 17.69 |
Total Return B,C,D | 43.24% |
Ratios to Average Net Assets H | |
Expenses before expense reductions | 1.77% A |
Expenses net of voluntary waivers, if any | 1.77% A |
Expenses net of all reductions | 1.74% A |
Net investment income (loss) | .28% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 4,960 |
Portfolio turnover rate | 84% A |
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Investment income per share reflects a special dividend which amounted to $.01 per share.
G For the period May 27, 2003 (commencement of sale of shares) 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 any voluntary 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.
Annual Report
Financial Highlights - Class T
Year ended October 31, | 2003 G |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 12.35 |
Income from Investment Operations | |
Net investment income (loss) E | - F,I |
Net realized and unrealized gain (loss) | 5.31 |
Total from investment operations | 5.31 |
Redemption fees added to paid in capitalE | .02 |
Net asset value, end of period | $ 17.68 |
Total Return B,C,D | 43.16% |
Ratios to Average Net Assets H | |
Expenses before expense reductions | 2.12% A |
Expenses net of voluntary waivers, if any | 2.12% A |
Expenses net of all reductions | 2.09% A |
Net investment income (loss) | (.07)% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 3,990 |
Portfolio turnover rate | 84% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Investment income per share reflects a special dividend which amounted to $.01 per share.
G For the period May 27, 2003 (commencement of sale of shares) 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 any voluntary 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.
Annual Report
Financial Highlights - Class B
Year ended October 31, | 2003 G |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 12.35 |
Income from Investment Operations | |
Net investment income (loss) E | (.05) F |
Net realized and unrealized gain (loss) | 5.30 |
Total from investment operations | 5.25 |
Redemption fees added to paid in capital E | .02 |
Net asset value, end of period | $ 17.62 |
Total Return B,C,D | 42.67% |
Ratios to Average Net Assets H | |
Expenses before expense reductions | 2.76% A |
Expenses net of voluntary waivers, if any | 2.76% A |
Expenses net of all reductions | 2.73% A |
Net investment income (loss) | (.71)% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 1,016 |
Portfolio turnover rate | 84% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Investment income per share reflects a special dividend which amounted to $.01 per share.
G For the period May 27, 2003 (commencement of sale of shares) 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 any voluntary 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.
Annual Report
Financial Highlights - Class C
Year ended October 31, | 2003 G |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 12.35 |
Income from Investment Operations | |
Net investment income (loss) E | (.04) F |
Net realized and unrealized gain (loss) | 5.31 |
Total from investment operations | 5.27 |
Redemption fees added to paid in capital E | .02 |
Net asset value, end of period | $ 17.64 |
Total Return B,C,D | 42.83% |
Ratios to Average Net Assets H | |
Expenses before expense reductions | 2.57% A |
Expenses net of voluntary waivers, if any | 2.57% A |
Expenses net of all reductions | 2.55% A |
Net investment income (loss) | (.52)% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 1,383 |
Portfolio turnover rate | 84% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Investment income per share reflects a special dividend which amounted to $.01 per share.
G For the period May 27, 2003 (commencement of sale of shares) 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 any voluntary 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.
Annual Report
Financial Highlights - International Small Cap Fund
Years ended October 31, | 2003 | 2002 G |
Selected Per-Share Data | ||
Net asset value, beginning of period | $ 9.87 | $ 10.00 |
Income from Investment Operations | ||
Net investment income (loss) D | .07 E | (.01) |
Net realized and unrealized gain (loss) | 7.75 | (.12) F |
Total from investment operations | 7.82 | (.13) |
Distributions from net realized gain | (.02) | - |
Redemption fees added to paid in capital D | .04 | -I |
Net asset value, end of period | $ 17.71 | $ 9.87 |
Total Return B,C | 79.78% | (1.30)% |
Ratios to Average Net Assets H | ||
Expenses before expense reductions | 1.54% | 13.70% A |
Expenses net of voluntary waivers, if any | 1.54% | 1.80% A |
Expenses net of all reductions | 1.51% | 1.80% A |
Net investment income (loss) | .46% | (.56)% A |
Supplemental Data | ||
Net assets, end of period (000 omitted) | $ 546,989 | $ 3,426 |
Portfolio turnover rate | 84% | 85% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Investment income per share reflects a special dividend which amounted to $.03 per share.
F The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the fund.
G For the period September 18, 2002 (commencement of operations) to October 31, 2002.
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 any voluntary 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.
Annual Report
Financial Highlights - Institutional Class
Year ended October 31, | 2003 F |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 12.35 |
Income from Investment Operations | |
Net investment income (loss) D | .04 E |
Net realized and unrealized gain (loss) | 5.31 |
Total from investment operations | 5.35 |
Redemption fees added to paid in capital D | .02 |
Net asset value, end of period | $ 17.72 |
Total Return B,C | 43.48% |
Ratios to Average Net Assets G | |
Expenses before expense reductions | 1.51% A |
Expenses net of voluntary waivers, if any | 1.51% A |
Expenses net of all reductions | 1.48% A |
Net investment income (loss) | .54% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 401 |
Portfolio turnover rate | 84% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Investment income per share reflects a special dividend which amounted to $.01 per share.
F For the period May 27, 2003 (commencement of sale of shares) to October 31, 2003.
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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from 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.
Annual Report
Notes to Financial Statements
For the period ended October 31, 2003
1. Significant Accounting Policies.
Fidelity International Small Cap Fund (the fund) is a fund of Fidelity Investment Trust (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, International Small Cap (the original class), 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. The fund commenced sale of Class A, Class T, Class B, Class C, and Institutional shares on May 27, 2003. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the fund, and certain fund-level expense reductions, if any, are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the fund:
Security Valuation. Net asset value per share (NAV calculation) is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Equity securities for which market quotations are available are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) on the primary market or exchange on which they trade. Debt securities for which quotations are readily available are valued at their most recent bid prices (sales prices if the principal market is an exchange) in the principal market in which such securities are normally traded, as determined by recognized dealers in such securities, or securities are valued on the basis of information provided by a pricing service. Pricing services use valuation matrices that incorporate both dealer-supplied valuations and valuation models. If an event that is expected to materially affect the value of a security occurs after the close of an exchange or market on which that security trades, but prior to the NAV calculation, then that security will be fair valued taking the event into account. Securities (including restricted securities) for which market quotations are not readily available are valued at their fair value as determined in good faith under consistently applied procedures under the general supervision of the Board of Trustees. Price movements in futures contracts and ADRs, market and trading trends, the bid/ask quotes of brokers and off-exchange institutional trading may be reviewed in the course of
Annual Report
Notes to Financial Statements - continued
1. Significant Accounting Policies - continued
Annual Report
Security Valuation - continued
making a good faith determination of a security's fair value. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued on the basis of amortized cost. Investments in open-end investment companies are valued at their net asset value each business day.
Foreign Currency. The fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income is accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities, which is accrued using the interest method. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among the funds in the trust.
Income Tax Information and Distributions to Shareholders. Each year the fund intends to qualify as a regulated investment company by distributing all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required in the accompanying financial statements. Foreign taxes are provided for based on each fund's understanding of the tax rules and
Annual Report
Notes to Financial Statements - continued
1. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
rates that exist in the foreign markets in which it invests. Income dividends and capital gain distributions are declared separately for each class. Distributions are recorded on the ex-dividend date.
Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the fund will treat a portion of the proceeds from shares redeemed as a distribution from net investment income and realized gain for income tax purposes. Capital accounts within the financial statements are adjusted for permanent and temporary book and tax differences. These adjustments have no impact on net assets or the results of operations. Temporary differences will reverse in a subsequent period. These differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), market discount and losses deferred due to wash sales.
The tax-basis components of distributable earnings and the federal tax cost as of period end were as follows:
Unrealized appreciation | $ 77,517,402 | | |
Unrealized depreciation | (5,457,380) | |
Net unrealized appreciation (depreciation) | 72,060,022 | |
Undistributed ordinary income | 12,052,118 | |
Cost for federal income tax purposes | $ 518,855,817 |
The tax character of distributions paid was as follows:
October 31, | October 31, | |
Ordinary Income | $ 27,060 | $ - |
Short-Term Trading (Redemption) Fees. Shares held in the fund less than 90 days are subject to a short-term trading fee equal to 2.00% of the proceeds of the redeemed shares. The fee, which is retained by the fund, is accounted for as an addition to paid in capital.
2. Operating Policies.
Repurchase Agreements. Fidelity Management & Research Company (FMR) has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts. These accounts are then invested in repurchase agreements that are collateralized by U.S. Treasury or Government obligations. The fund
Annual Report
2. Operating Policies - continued
Annual Report
Repurchase Agreements - continued
may also invest directly with institutions, in repurchase agreements that are collateralized by commercial paper obligations and corporate obligations. Collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. Collateral is marked-to-market daily and maintained at a value at least equal to the principal amount of the repurchase agreement (including accrued interest).
Delayed Delivery Transactions and When-Issued Securities. The fund may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. During the time a delayed delivery sell is outstanding, the contract is marked-to-market daily and equivalent deliverable securities are held for the transaction. The value of the securities purchased on a delayed delivery or when-issued basis are identified as such in the fund's Schedule of Investments. The fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract, or if the issuer does not issue the securities due to political, economic, or other factors.
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.
3. Purchases and Sales of Investments.
Notes to Financial Statements - continued
Information regarding purchases and sales of securities is included under the caption "Other Information" at the end of the fund's Schedule of Investments.
Annual Report
4. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the fund with investment management related services for which the fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .60% of the fund's average net assets and a group fee rate that averaged .28% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ±.20% of the fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the investment performance of International Small Cap (the original class) as compared to an appropriate benchmark index. The fund's performance adjustment took effect in September, 2003. Subsequent months will be added until the performance period includes 36 months. For the period, the total annual management fee rate, including the performance adjustment, was .88% of the fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. Class A and Class T Plans also authorize the use of brokerage commissions to pay distribution expenses. This practice has been discontinued and no commissions incurred after June 30, 2003 have been used to pay distribution expenses. In addition, FDC may pay financial intermediaries for selling shares of the fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, the total amounts paid to and retained by FDC and the amount of distribution expenses paid with brokerage commissions were as follows:
Distribution | Service | Paid to | Retained | Paid with | |
Class A | - | .25% | $ 1,070 | $ 73 | $ - |
Class T | .25% | .25% | 3,478 | 182 | - |
Class B | .75% | .25% | 1,758 | 1,438 | |
Class C | .75% | .25% | 1,923 | 1,370 | |
$ 8,229 | $ 3,063 | $ - |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares of the fund. FDC receives the proceeds of contingent deferred sales 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, and .25% for certain purchases of Class A and Class T shares.
Annual Report
Notes to Financial Statements - continued
4. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
Retained | ||
Class A | $ 6,125 | |
Class T | 4,155 | |
Class B* | - | |
Class C* | - | |
$ 10,280 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the
sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent (collectively referred to as the transfer agent) for each class of the fund, except for International Small Cap. Fidelity Service Company, Inc. (FSC), an affiliate of FMR is the transfer agent for International Small Cap shares. FIIOC and FSC receive 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 and FSC pay for typesetting, printing and mailing of all shareholder reports, except proxy statements. For the period, the following amounts were paid to FIIOC or FSC:
Amount | % of | |
Class A | $ 706 | .16* |
Class T | 1,800 | .25* |
Class B | 714 | .40* |
Class C | 432 | .22* |
International Small Cap | 221,957 | .20 |
Institutional Class | 93 | .13* |
$ 225,702 |
* Annualized.
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC) maintains the fund's accounting records and administers the security lending program. The security lending fee is based on the number and duration of lending transactions. The accounting fee is based on the level of average net assets for the month plus out-of-pocket expenses.
Annual Report
4. Fees and Other Transactions with Affiliates - continued
Central Funds. The fund may invest in affiliated Central Funds managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR. The Central Funds are open-end investment companies available only to investment companies and other accounts managed by FMR and its affiliates. The Central Funds seek preservation of capital and current income and do not pay a management fee. Income distributions earned by the fund are recorded as income in the accompanying financial statements and totaled $112,402 for the period.
Brokerage Commissions. The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms are shown under the caption "Other Information" at the end of the fund's Schedule of Investments.
5. Committed Line of Credit.
The fund participates with other funds managed by FMR in a $3.5 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The fund has agreed to pay commitment fees on its pro rata portion of the line of credit. During the period, there were no borrowings on this line of credit.
6. Security Lending.
The fund lends portfolio securities from time to time in order to earn additional income. The fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the fund and any additional required collateral is delivered to the fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Cash collateral is invested in cash equivalents. The value of loaned securities and cash collateral at period end are disclosed on the fund's Statement of Assets and Liabilities.
Annual Report
Notes to Financial Statements - continued
7. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the fund provided services to the fund in addition to trade execution. These services may include payments of expenses on behalf of the fund to support distribution of fund shares for Class A and Class T ("Distribution Expense Reduction") and to pay other fund expenses, such as transfer agent fees ("Other Expense Reduction") collectively referred to as "Brokerage Service Arrangements" in the accompanying table. Brokerage service arrangements generally benefits all shareholders of each class by reducing fund expenses. Each of Class A and Class T shareholders' Other Expense Reduction benefit is reduced by the amount of any Distribution Expense Reduction. In addition, through arrangements with the fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the fund's expenses. All of the applicable expense reductions are noted in the table below.
Brokerage Service Arrangements | ||||
Distribution | Other | Custody | Transfer | |
Fund Level | $ - | $ 31,745 | $ 12 | $ - |
8. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Years ended October 31, | ||
2003 | 2002 | |
From net realized gain | ||
International Small Cap | $ 27,060 | $ - |
Annual Report
9. Share Transactions.
Transactions for each class of shares were as follows:
Shares | Dollars | |||
2003A | 2002B | 2003A | 2002B | |
Class A | ||||
Shares sold | 287,827 | - | $ 4,774,574 | $ - |
Shares redeemed | (7,479) | - | (125,524) | - |
Net increase (decrease) | 280,348 | - | $ 4,649,050 | $ - |
Class T | ||||
Shares sold | 229,190 | - | $ 3,468,992 | $ - |
Shares redeemed | (3,525) | - | (55,853) | - |
Net increase (decrease) | 225,665 | - | $ 3,413,139 | $ - |
Class B | ||||
Shares sold | 60,233 | - | $ 911,644 | $ - |
Shares redeemed | (2,570) | - | (40,678) | - |
Net increase (decrease) | 57,663 | - | $ 870,966 | $ - |
Class C | ||||
Shares sold | 88,372 | - | $ 1,388,024 | $ - |
Shares redeemed | (9,942) | - | (158,911) | - |
Net increase (decrease) | 78,430 | - | $ 1,229,113 | $ - |
International Small Cap | ||||
Shares sold | 32,919,552 | 350,328 | $ 492,932,712 | $ 3,437,639 |
Reinvestment of distributions | 2,491 | - | 25,785 | - |
Shares redeemed | (2,388,222) | (3,412) | (32,859,600) | (31,878) |
Net increase (decrease) | 30,533,821 | 346,916 | $ 460,098,897 | $ 3,405,761 |
Institutional Class | ||||
Shares sold | 23,006 | - | $ 351,524 | $ - |
Shares redeemed | (396) | - | (5,173) | - |
Net increase (decrease) | 22,610 | - | $ 346,351 | $ - |
A Share transactions for Class A, Class T, Class B, Class C and Institutional Class are for the period May 27, 2003 (commencement of sale of shares)
to October 31, 2003.
B For the period September 18, 2002 (commencement of operations) to October 31, 2002.
10. Transactions with Affiliated Companies.
An affiliated company is a company in which the fund has ownership of at least 5% of the voting securities. Transactions during the period with companies which are or were affiliates are as follows:
Affiliate | Purchase | Sales | Dividend | Value |
Hyrican Informationssysteme | $ - | $ 138,521 | $ - | $ - |
Online Travel Corp. PLC | 227,512 | - | - | 2,164,843 |
Totals | $ 227,512 | $ 138,521 | $ - | $ 2,164,843 |
Annual Report
Independent Auditors' Report
To the Trustees of Fidelity Investment Trust and Shareholders of Fidelity International Small Cap Fund:
We have audited the accompanying statement of assets and liabilities of Fidelity International Small Cap Fund (the Fund), a fund of Fidelity Investment Trust, including the portfolio of investments, as of October 31, 2003, and the related statement of operations for the year then ended, and the statement of changes in net assets and the financial highlights for each of the two years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2003, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Fidelity International Small Cap Fund as of October 31, 2003, the results of its operations for the year then ended, and the changes in its net assets and its financial highlights for each of the two years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
/s/DELOITTE & TOUCHE LLP
DELOITTE & TOUCHE LLP
Boston, Massachusetts
December 12, 2003
Annual Report
Trustees and Officers
The Trustees, Members of the Advisory Board, and executive officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, and review the fund's performance. Except for William O. McCoy, each of the Trustees oversees 289 funds advised by FMR or an affiliate. Mr. McCoy oversees 291 funds advised by FMR or an affiliate.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. In any event, each non-interested Trustee shall retire not later than the last day of the calendar year in which his or her 72nd birthday occurs. The executive officers and Advisory Board Members hold office without limit in time, except that any officer and Advisory Board Member] may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.
Interested Trustees*:
Correspondence intended for each Trustee who is an "interested person" (as defined in the 1940 Act) may be sent to 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation | |
Edward C. Johnson 3d (73)** | |
Year of Election or Appointment: 1984 Mr. Johnson is Chairman of the Board of Trustees. Mr. Johnson serves as Chief Executive Officer, Chairman, and a Director of FMR Corp.; a Director and Chairman of the Board and of the Executive Committee of FMR; Chairman and a Director of Fidelity Management & Research (Far East) Inc.; Chairman (1998) and a Director of Fidelity Investments Money Management, Inc.; and Chairman (2001) and a Director (2000) of FMR Co., Inc. | |
Abigail P. Johnson (41)** | |
Year of Election or Appointment: 2001 Senior Vice President of the fund (2002). Ms. Johnson also serves as Senior Vice President of other Fidelity funds (2001). She is President and a Director of FMR (2001), Fidelity Investments Money Management, Inc. (2001), FMR Co., Inc. (2001), and a Director of FMR Corp. Previously, Ms. Johnson managed a number of Fidelity funds. | |
Laura B. Cronin (49) | |
Year of Election or Appointment: 2003 Ms. Cronin is an Executive Vice President (2002) and Chief Financial Officer (2002) of FMR Corp. and is a member of the Fidelity Management Committee (2003). Previously, Ms. Cronin served as Vice President of Finance of FMR (1997-1999), and Chief Financial Officer of FMR (1999-2001), Fidelity Personal Investments (2001), and Fidelity Brokerage Company (2001-2002). | |
Robert L. Reynolds (51) | |
Year of Election or Appointment: 2003 Mr. Reynolds is a Director (2003) and Chief Operating Officer (2002) of FMR Corp. and is the head of the Fidelity Management Committee (2003). He also serves on the Board at Fidelity Investments Canada, Ltd. (2000). Previously, Mr. Reynolds served as President of Fidelity Investments Institutional Retirement Group (1996-2000). |
* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with FMR.
** Edward C. Johnson 3d, Trustee, is Abigail P. Johnson's father.
Annual Report
Non-Interested Trustees:
Correspondence intended for each non-interested Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Age; Principal Occupation | |
J. Michael Cook (61) | |
Year of Election or Appointment: 2001 Prior to Mr. Cook's retirement in May 1999, he served as Chairman and Chief Executive Officer of Deloitte & Touche LLP (accounting/consulting), Chairman of the Deloitte & Touche Foundation, and a member of the Board of Deloitte Touche Tohmatsu. He currently serves as a Director of Comcast (telecommunications, 2002), International Flavors & Fragrances, Inc. (2000), Rockwell Automation (2000) and The Dow Chemical Company (2000). He is a Member of the Diversity Advisory Council of Marakon (2003) and the Advisory Board of the Directorship Search Group, Chairman Emeritus of the Board of Catalyst (a leading organization for the advancement of women in business), and is Chairman of the Accountability Advisory Council to the Comptroller General of the United States. He also serves as a Member of the Advisory Board of the Graduate School of Business of the University of Florida, his alma mater. | |
Ralph F. Cox (71) | |
Year of Election or Appointment: 1991 Mr. Cox is President of RABAR Enterprises (management consulting for the petroleum industry). Prior to February 1994, he was President of Greenhill Petroleum Corporation (petroleum exploration and production). Until March 1990, Mr. Cox was President and Chief Operating Officer of Union Pacific Resources Company (exploration and production). He is a Director of CH2M Hill Companies (engineering), and Abraxas Petroleum (petroleum exploration and production, 1999). In addition, he is a member of advisory boards of Texas A&M University and the University of Texas at Austin. | |
Phyllis Burke Davis (71) | |
Year of Election or Appointment: 1992 Mrs. Davis is retired from Avon Products, Inc. (consumer products) where she held various positions including Senior Vice President of Corporate Affairs and Group Vice President of U.S. product marketing, sales, distribution, and manufacturing. Mrs. Davis is a member of the Board of Directors of the Southampton Hospital in Southampton, N.Y. (1998). Previously, she served as a Director of BellSouth Corporation (telecommunications), Eaton Corporation (diversified industrial), the TJX Companies, Inc. (retail stores), Hallmark Cards, Inc., and Nabisco Brands, Inc. | |
Robert M. Gates (60) | |
Year of Election or Appointment: 1997 Dr. Gates is President of Texas A&M University (2002). He was Director of the Central Intelligence Agency (CIA) from 1991 to 1993. From 1989 to 1991, Dr. Gates served as Assistant to the President of the United States and Deputy National Security Advisor. Dr. Gates is a Director of NACCO Industries, Inc. (mining and manufacturing), and Parker Drilling Co., Inc. (drilling and rental tools for the energy industry, 2001). He also serves as a member of the Advisory Board of VoteHere.net (secure internet voting, 2001). Previously, Dr. Gates served as a Director of LucasVarity PLC (automotive components and diesel engines), a Director of TRW Inc. (automotive, space, defense, and information technology), and Dean of the George Bush School of Government and Public Service at Texas A&M University (1999-2001). Dr. Gates also is a Trustee of the Forum for International Policy. | |
Donald J. Kirk (70) | |
Year of Election or Appointment: 1987 Mr. Kirk is a Governor of the American Stock Exchange (2001), a Trustee and former Chairman of the Board of Trustees of the Greenwich Hospital Association, a Director of the Yale-New Haven Health Services Corp. (1998), and a Director Emeritus and former Chairman of the Board of Directors of National Arts Strategies Inc. Mr. Kirk was an Executive-in-Residence (1995-2000) and a Professor (1987-1995) at Columbia University Graduate School of Business. Prior to 1987, he was Chairman of the Financial Accounting Standards Board. Previously, Mr. Kirk served as a Governor of the National Association of Securities Dealers, Inc. (1996-2002), a member and Vice Chairman of the Public Oversight Board of the American Institute of Certified Public Accountants' SEC Practice Section (1995-2002), a Director of General Re Corporation (reinsurance, 1987-1998) and as a Director of Valuation Research Corp. (appraisals and valuations). | |
Marie L. Knowles (57) | |
Year of Election or Appointment: 2001 Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. She currently serves as a Director of Phelps Dodge Corporation (copper mining and manufacturing), URS Corporation (multidisciplinary engineering, 1999), and McKesson Corporation (healthcare service, 2002). Ms. Knowles is a Trustee of the Brookings Institution and the Catalina Island Conservancy and also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California. | |
Ned C. Lautenbach (59) | |
Year of Election or Appointment: 2000 Mr. Lautenbach has been a partner of Clayton, Dubilier & Rice, Inc. (private equity investment firm) since September 1998. Previously, Mr. Lautenbach was with the International Business Machines Corporation (IBM) from 1968 until his retirement in 1998. He was most recently Senior Vice President and Group Executive of Worldwide Sales and Services. From 1993 to 1995, he was Chairman of IBM World Trade Corporation, and from 1994 to 1998 was a member of IBM's Corporate Executive Committee. Mr. Lautenbach serves as Chairman and as a Director (1998) of Acterna Corporation (communications test equipment). He is also Co-Chairman of Covansys, Inc. (global provider of business and technology solutions, 2000). In addition, he is a Director of Eaton Corporation (diversified industrial) and the Philharmonic Center for the Arts in Naples, Florida (1999). He also is a member of the Council on Foreign Relations. | |
Marvin L. Mann (70) | |
Year of Election or Appointment: 1993 Mr. Mann is Chairman of the non-interested Trustees (2001). He is Chairman Emeritus of Lexmark International, Inc. (computer peripherals) where he served as CEO until April 1998 and retired as Chairman May 1999, and remains a member of the Board. Prior to 1991, he held the positions of Vice President of International Business Machines Corporation (IBM) and President and General Manager of various IBM divisions and subsidiaries. Mr. Mann is a Board member of Imation Corp. (imaging and information storage) and Acterna Corporation (communications test equipment, 1999). He is also a member of the Director Services Committee of the Investment Company Institute. In addition, Mr. Mann is a member of the President's Cabinet at the University of Alabama and the Board of Visitors of the Culverhouse College of Commerce and Business Administration at the University of Alabama. | |
William O. McCoy (70) | |
Year of Election or Appointment: 1997 Prior to his retirement in December 1994, Mr. McCoy was Vice Chairman of the Board of BellSouth Corporation (telecommunications) and President of BellSouth Enterprises. He is currently a Director of Liberty Corporation (holding company), Duke Realty Corporation (real estate), Progress Energy, Inc. (electric utility), and Acterna Corporation (communications test equipment, 1999). He is also a partner of Franklin Street Partners (private investment management firm) and a member of the Research Triangle Foundation Board. In addition, Mr. McCoy served as the Interim Chancellor (1999-2000) and a member of the Board of Visitors (1994-1998) for the University of North Carolina at Chapel Hill and currently serves on the Board of Directors of the University of North Carolina Health Care System and the Board of Visitors of the Kenan-Flagler Business School (University of North Carolina at Chapel Hill). He also served as Vice President of Finance for the University of North Carolina (16-school system, 1995-1998). | |
William S. Stavropoulos (64) | |
Year of Election or Appointment: 2001 Mr. Stavropoulos is Chairman of the Board, President and CEO (2002), and Chairman of the Executive Committee (2000) and a Director of The Dow Chemical Company. Since joining The Dow Chemical Company in 1967, Mr. Stavropoulos served in numerous senior management positions, including President (1993-2000) and Chief Executive Officer (1995-2000). Currently, he is a Director of NCR Corporation (data warehousing and technology solutions), BellSouth Corporation (telecommunications), Chemical Financial Corporation, and Maersk Inc. (industrial conglomerate, 2002). He also serves as a member of the Board of Trustees of the American Enterprise Institute for Public Policy Research. In addition, Mr. Stavropoulos is a member of The Business Council, J.P. Morgan International Council, World Business Council for Sustainable Development, and the University of Notre Dame Advisory Council for the College of Science. |
Annual Report
Trustees and Officers - continued
Advisory Board Members and Executive Officers:
Correspondence intended for Dr. Heilmeier may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for each executive officer and Mr. Lynch may be sent to 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation | |
George H. Heilmeier (67) | |
Year of Election or Appointment: 2003 Member of the Advisory Board of Fidelity Investment Trust. Dr. Heilmeier is Chairman Emeritus of Telcordia Technologies (communication software and systems), where prior to his retirement, he served as company Chairman and Chief Executive Officer. He currently serves on the Boards of Directors of The Mitre Corporation (systems engineering and information technology support for the government), INET Technologies Inc. (telecommunications network surveillance, 2001) and Teletech Holdings (customer management services, 1998). He is Chairman of the General Motors Technology Advisory Committee and a Life Fellow of the IEEE (2000). Dr. Heilmeier is a member of the Defense Science Board and the National Security Agency Advisory Board. He is also a member of the National Academy of Engineering, the American Academy of Arts and Sciences and The Board of Overseers of the School of Engineering and Applied Science of the University of Pennsylvania. Previously, Dr. Heilmeier served as a Director of TRW Inc. (automotive, space, defense, and information technology, 1992-2002) and Compaq (1994-2002). | |
Peter S. Lynch (60) | |
Year of Election or Appointment: 2003 Member of the Advisory Board of Fidelity Investment Trust. Vice Chairman and a Director of FMR, and Vice Chairman (2001) and a Director (2000) of FMR Co., Inc. Previously, Mr. Lynch served as a Trustee of the Fidelity funds (1990-2003). Prior to May 31, 1990, he was a Director of FMR and Executive Vice President of FMR (a position he held until March 31, 1991), Vice President of Fidelity® Magellan® Fund and FMR Growth Group Leader, and Managing Director of FMR Corp. Mr. Lynch was also Vice President of Fidelity Investments Corporate Services. In addition, he serves as a Trustee of Boston College, Massachusetts Eye & Ear Infirmary, Historic Deerfield, John F. Kennedy Library, and the Museum of Fine Arts of Boston. | |
Philip L. Bullen (44) | |
Year of Election or Appointment: 2002 Vice President of the fund. Mr. Bullen also serves as Vice President of certain Equity Funds (2001) and certain High Income Funds (2001). He is Senior Vice President of FMR (2001) and FMR Co., Inc. (2001), President and a Director of Fidelity Management & Research (Far East) Inc. (2001), President and a Director of Fidelity Management & Research (U.K.) Inc. (2002), and a Director of Strategic Advisers, Inc. (2002). Before joining Fidelity Investments, Mr. Bullen was President and Chief Investment Officer of Santander Global Advisors (1997-2000) and President and Chief Executive Officer of Boston's Baring Asset Management Inc. (1994-1997). | |
Eric D. Roiter (54) | |
Year of Election or Appointment: 1998 Secretary of the fund. He also serves as Secretary of other Fidelity funds (1998); Vice President, General Counsel, and Clerk of FMR Co., Inc. (2001) and FMR (1998); Vice President and Clerk of FDC (1998); Assistant Clerk of Fidelity Management & Research (U.K.) Inc. (2001) and Fidelity Management & Research (Far East) Inc. (2001); and Assistant Secretary of Fidelity Investments Money Management, Inc. (2001). Prior to joining Fidelity, Mr. Roiter was with the law firm of Debevoise & Plimpton, as an associate (1981-1984) and as a partner (1985-1997), and served as an Assistant General Counsel of the U.S. Securities and Exchange Commission (1979-1981). Mr. Roiter is an Adjunct Member, Faculty of Law, at Boston College Law School (2003). | |
Stuart Fross (44) | |
Year of Election or Appointment: 2003 Assistant Secretary of the fund. Mr. Fross also serves as Assistant Secretary of other Fidelity funds (2003) and is an employee of FMR. | |
Maria F. Dwyer (44) | |
Year of Election or Appointment: 2002 President and Treasurer of the fund. Ms. Dwyer also serves as President and Treasurer of other Fidelity funds (2002) and is a Vice President (1999) and an employee (1996) of FMR. Prior to joining Fidelity, Ms. Dwyer served as Director of Compliance for MFS Investment Management. | |
Timothy F. Hayes (52) | |
Year of Election or Appointment: 2002 Chief Financial Officer of the fund. Mr. Hayes also serves as Chief Financial Officer of other Fidelity funds (2002). Recently he was appointed President of Fidelity Service Company (2003) where he also serves as a Director. Mr. Hayes also serves as President of Fidelity Investments Operations Group (FIOG, 2002), which includes Fidelity Pricing and Cash Management Services Group (FPCMS), where he was appointed President in 1998. Previously, Mr. Hayes served as Chief Financial Officer of Fidelity Investments Corporate Systems and Service Group (1998) and Fidelity Systems Company (1997-1998). | |
John R. Hebble (45) | |
Year of Election or Appointment: 2003 Deputy Treasurer of the fund. Mr. Hebble also serves as Deputy Treasurer of other Fidelity funds (2003), and is an employee of FMR. Before joining Fidelity Investments, Mr. Hebble worked at Deutsche Asset Management where he served as Director of Fund Accounting (2002-2003) and Assistant Treasurer of the Scudder Funds (1998-2003). | |
John H. Costello (57) | |
Year of Election or Appointment: 1986 Assistant Treasurer of the fund. Mr. Costello also serves as Assistant Treasurer of other Fidelity funds and is an employee of FMR. | |
Francis V. Knox, Jr. (56) | |
Year of Election or Appointment: 2002 Assistant Treasurer of the fund. Mr. Knox also serves as Assistant Treasurer of other Fidelity funds (2002), and is a Vice President and an employee of FMR. Previously, Mr. Knox served as Vice President of Investment & Advisor Compliance (1990-2001), and Compliance Officer of Fidelity Management & Research (U.K.) Inc. (1992-2002), Fidelity Management & Research (Far East) Inc. (1991-2002), and FMR Corp. (1995-2002). | |
Mark Osterheld (48) | |
Year of Election or Appointment: 2002 Assistant Treasurer of the fund. Mr. Osterheld also serves as Assistant Treasurer of other Fidelity funds (2002) and is an employee of FMR. | |
Thomas J. Simpson (45) | |
Year of Election or Appointment: 2000 Assistant Treasurer of the fund. Mr. Simpson is Assistant Treasurer of other Fidelity funds (2000) and an employee of FMR (1996). Prior to joining FMR, Mr. Simpson was Vice President and Fund Controller of Liberty Investment Services (1987-1995). |
Annual Report
Distributions
The Board of Trustees of Fidelity International Small Cap Fund voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities, and dividends derived from net investment income:
Pay Date | Record Date | Dividends | Capital Gains | |
Class A | 12/15/03 | 12/12/03 | $.02 | $.31 |
Class T | 12/15/03 | 12/12/03 | $.01 | $.31 |
Class B | 12/15/03 | 12/12/03 | $.00 | $.31 |
Class C | 12/15/03 | 12/12/03 | $.01 | $.31 |
The fund will notify shareholders in January 2004 of amounts for use in preparing 2003 income tax returns.
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Annual Report
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Annual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Far East) Inc.
Fidelity International
Investment Advisors
Fidelity Investments Japan Limited
Fidelity International Investment Advisors (U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Shareholder
Servicing Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Custodian
State Street Bank and Trust Company
Quincy, MA
Annual Report
Fidelity Advisor Aggressive Growth Fund |
Fidelity Advisor Asset Allocation Fund |
Fidelity Advisor Balanced Fund |
Fidelity Advisor Biotechnology Fund |
Fidelity Advisor California Municipal Income Fund |
Fidelity Advisor Consumer Industries Fund |
Fidelity Advisor Cyclical Industries Fund |
Fidelity Advisor Developing Communications Fund |
Fidelity Advisor Diversified International Fund |
Fidelity Advisor Dividend Growth Fund |
Fidelity Advisor Dynamic Capital Appreciation Fund |
Fidelity Advisor Electronics Fund |
Fidelity Advisor Emerging Asia Fund |
Fidelity Advisor Emerging Markets Income Fund |
Fidelity Advisor Equity Growth Fund |
Fidelity Advisor Equity Income Fund |
Fidelity Advisor Equity Value Fund |
Fidelity Advisor Europe Capital Appreciation Fund |
Fidelity Advisor Fifty Fund |
Fidelity Advisor Financial Services Fund |
Fidelity Advisor Floating Rate High Income Fund |
Fidelity Advisor Freedom Income FundSM |
Fidelity Advisor Freedom 2010 FundSM |
Fidelity Advisor Freedom 2020 FundSM |
Fidelity Advisor Freedom 2030 FundSM |
Fidelity Advisor Freedom 2040 FundSM |
Fidelity Advisor Global Equity Fund |
Fidelity Advisor Government Investment Fund |
Fidelity Advisor Growth & Income Fund |
Fidelity Advisor Growth Opportunities |
Fidelity Advisor Health Care Fund |
Fidelity Advisor High Income Advantage Fund |
Fidelity Advisor High Income Fund |
Fidelity Advisor Inflation-Protected Bond Fund |
Fidelity Advisor Intermediate Bond Fund |
Fidelity Advisor International Capital Appreciation Fund |
Fidelity Advisor International Small Cap Fund |
Fidelity Advisor Investment Grade Bond Fund |
Fidelity Advisor Japan Fund |
Fidelity Advisor Korea Fund |
Fidelity Advisor Large Cap Fund |
Fidelity Advisor Latin America Fund |
Fidelity Advisor Leveraged Company Stock Fund |
Fidelity Advisor Mid Cap Fund |
Fidelity Advisor Mortgage Securities Fund |
Fidelity Advisor Municipal Income Fund |
Fidelity Advisor Natural Resources Fund |
Fidelity Advisor New Insights Fund |
Fidelity Advisor New York Municipal Income Fund |
Fidelity Advisor Overseas Fund |
Fidelity Advisor Real Estate Fund |
Fidelity Advisor Short Fixed-Income Fund |
Fidelity Advisor Short Intermediate Municipal Income Fund |
Fidelity Advisor Small Cap Fund |
Fidelity Advisor Strategic Growth Fund |
Fidelity Advisor Strategic Income Fund |
Fidelity Advisor Tax Managed |
Fidelity Advisor Technology Fund |
Fidelity Advisor Telecommunications & Utilities Growth Fund |
Fidelity Advisor Value Leaders Fund |
Fidelity Advisor Value Strategies Fund |
Prime Fund |
Tax-Exempt Fund |
Treasury Fund |
(Fidelity (registered trademark) INVESTMENTS)
AISC-UANN-1203
1.793568.100
Fidelity®
International Small Cap
Fund
Annual Report
October 31, 2003
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | 4 | Ned Johnson's message to shareholders. |
Performance | 5 | How the fund has done over time. |
Management's Discussion | 6 | The managers' review of fund performance, strategy and outlook. |
Investment Summary | 7 | A summary of major shifts in the fund's investments over the past six months. |
Investments | 9 | A complete list of the fund's investments with their market values. |
Financial Statements | 20 | Statements of assets and liabilities, operations, and changes in net assets, |
Notes | 30 | Notes to the financial statements. |
Auditors' Opinion | 39 | |
Trustees and Officers | 40 | |
Distributions | 50 | |
For a free copy of the fund's proxy voting guidelines visit www.fidelity.com/goto/proxyguidelines, call 1-800-544-8544, or visit the Securities and Exchange Commission (SEC)'s web site at www.sec.gov.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR Corp. or an affiliated company.
(Recycle graphic) This report is printed on recycled paper using soy-based inks.
Annual Report
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
Mutual fund shares are not deposits or obligations of, or guaranteed by, any depository institution. Shares are not insured by the FDIC, the Federal Reserve Board or any other agency, and are subject to investment risks, including the possible loss of principal amount invested.
Neither the fund nor Fidelity Distributors Corporation is a bank.
For more information on any Fidelity fund, including charges and expenses, call 1-800-544-6666 for a free prospectus. Read it carefully before you invest or send money.
Annual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
Many of you have read or heard news stories recently that were critical of mutual funds and made allegations that the mutual fund industry has been less than forthright. I find these reports unsettling and not necessarily an accurate picture of the overall industry, and I would like you to know where we at Fidelity stand.
With specific regard to allegations that certain mutual fund companies were violating the Securities and Exchange Commission's forward pricing rules or were involved in so-called "market timing" activities, I want to say two things:
First, Fidelity does not have agreements that permit customers who buy fund shares after 4 p.m. to obtain the 4 p.m. price. This is not to say that someone could not deceive the company through fraudulent acts. But I underscore that we have no so-called "agreements" which would permit this illegal practice.
Second, Fidelity has been on record for years opposing predatory short-term trading which adversely affects other shareholders in a mutual fund. In fact, in the 1980s, we began charging a fee - which is returned to the fund and, therefore, to investors - to discourage this activity. What's more, several years ago we took the industry lead in developing a Fair Value Pricing Policy to prevent market timing on foreign securities in our funds. It is reasonable to assume that another structure can be developed that would alter the system to make it much more difficult for predatory traders to operate. This, however, will only be achieved through close cooperation among regulators, legislators and the industry.
Certainly no industry is perfect, and there have been instances of unethical and illegal activity from time to time within the mutual fund industry. When this occurs, confessed or convicted offenders should be dealt with appropriately. Clearly, every system can be improved. We applaud well thought out improvements by regulators, legislators and industry representatives that achieve the common goal of building and protecting the value of investors' holdings. But we remain concerned about the risk of over-regulation and the quick application of simplistic solutions to intricate problems.
For more than 57 years, Fidelity Investments has worked very hard to improve its products and service to justify your trust. When our family founded this company in 1946, we had only a few hundred customers. Many of them were family and friends. Today, we serve more than 18 million customers including individual investors and participants in retirement plans across America.
Let me close by saying that we do not take your trust in us for granted, and we realize that we must always work to improve all aspects of our service to you. In turn, we urge you to continue your active participation with your financial matters, so that your interests can be well served.
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Best regards,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Annual Report
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of International Small Cap's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended October 31, 2003 | Past 1 | Life of |
International Small Cap | 79.78% | 67.02% |
A From September 18, 2002.
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in International Small Cap on September 18, 2002, when the fund started. The chart shows how the value of your investment would have grown, and also shows how the MSCI® EAFE® Small Cap Index did over the same period. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had reimbursement not occurred.
Annual Report
Management's Discussion of Fund Performance
Comments from L.C. Kvaal and Tokuya Sano, Co-Portfolio Managers of Fidelity® International Small Cap Fund
Mirroring the U.S. rally, most international stock markets rebounded sharply during the 12-month period ending October 31, 2003. Encouraged by improved corporate earnings, favorable interest rates and the easing of geopolitical tensions, the Morgan Stanley Capital InternationalSM Europe, Australasia, Far East (MSCI® EAFE®) Index - a proxy for stock markets outside the United States and Canada - gained 27.39% during the past year. From a regional perspective, all 16 countries in the MSCI Europe index - which gained 24.56% - had double-digit advances. Spain, Denmark and Sweden were among the region's best performers. In Japan, increased capital spending, exports and machinery orders helped the Tokyo Stock Exchange Stock Price Index (TOPIX) advance 36.39%. Following the SARS epidemic, other Asian markets also rebounded. For instance, the Hong Kong market, as measured by the Hang Seng Index, gained 34.51%. Emerging markets also fared well, particularly Latin America. The MSCI Emerging Markets Free Latin America Index rose 59.75%. Canadian equities, as measured by the S&P/TSX Composite Index, also posted an impressive annual gain, advancing 50.66%.
For the 12 months ending October 31, 2003, International Small Cap returned 79.78%, far surpassing the 54.73% return of the Morgan Stanley Capital International Europe, Australasia, Far East Small Cap Index. International Small Cap also beat the 47.55% return of the LipperSM International Small Cap Funds Average. Favorable stock selection, particularly in Germany and Japan, was the driving force behind the fund's outperformance. Hyrican Informationssysteme - a German private-label personal computer (PC) assembler - was our top contributor both in absolute terms and compared with the index. The company benefited from healthy demand for PCs and its ability to grow market share. Japan-based NOK - the largest maker of flexible circuit boards in the world - also helped our results. The top detractor relative to the index was Nissin Kogyo, a Japanese auto parts company whose stock price was hurt by weak auto sales in the United States and Japan. Oystertec, a U.K.-based developer of pipe-joining technology, also held back performance, as weak demand forced the company to close a number of production sites in late 2002 and early 2003.
The views expressed in this statement reflect those of the portfolio manager only through the end of the period of the report as stated on the cover and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Investment Summary
Geographic Diversification (% of fund's net assets) | |||
As of October 31, 2003 | |||
Japan 29.3% | |||
United Kingdom 14.8% | |||
United States of America 13.4% | |||
Germany 10.7% | |||
Australia 6.4% | |||
Sweden 3.6% | |||
Hong Kong 3.5% | |||
France 2.5% | |||
Greece 2.5% | |||
Other 13.3% |
Percentages are adjusted for the effect of futures contracts, if applicable. |
As of April 30, 2003 | |||
Japan 27.8% | |||
United Kingdom 22.6% | |||
United States of America 7.7% | |||
Germany 7.6% | |||
Australia 7.2% | |||
Switzerland 3.8% | |||
Hong Kong 3.4% | |||
Finland 3.2% | |||
Norway 3.0% | |||
Other 13.7% |
Percentages are adjusted for the effect of futures contracts, if applicable. |
Asset Allocation | ||
% of fund's | % of fund's net assets | |
Stocks | 87.0 | 92.8 |
Bonds | 0.0 | 0.2 |
Short-Term Investments and Net Other Assets | 13.0 | 7.0 |
Top Ten Stocks as of October 31, 2003 | ||
% of fund's | % of fund's net assets | |
MobilCom AG (Germany, Wireless Telecommunication Services) | 4.0 | 0.0 |
Toyoda Gosei Co. Ltd. (Japan, Auto Components) | 1.5 | 0.3 |
NOK Corp. (Japan, Auto Components) | 1.4 | 2.3 |
Fujikura Ltd. (Japan, Electrical Equipment) | 1.4 | 0.9 |
Draegerwerk AG (non-vtg.) (Germany, Health Care Equipment & Supplies) | 1.2 | 0.0 |
Germanos SA (Greece, Specialty Retail) | 1.1 | 0.2 |
ARRK Corp. (Japan, Commercial Services & Supplies) | 1.1 | 1.5 |
Australian Stock Exchange Ltd. (Australia, Diversified Financial Services) | 1.1 | 1.3 |
Pacific Metals Co. Ltd. (Japan, Metals & Mining) | 1.0 | 0.0 |
QBE Insurance Group Ltd. (Australia, Insurance) | 1.0 | 1.3 |
14.8 | ||
Market Sectors as of October 31, 2003 | ||
% of fund's | % of fund's net assets | |
Consumer Discretionary | 19.9 | 24.5 |
Information Technology | 16.5 | 20.8 |
Industrials | 14.0 | 12.8 |
Financials | 12.8 | 11.3 |
Health Care | 8.4 | 13.5 |
Materials | 7.3 | 5.4 |
Telecommunication Services | 5.0 | 0.6 |
Consumer Staples | 2.4 | 2.2 |
Energy | 0.6 | 1.3 |
Utilities | 0.1 | 0.6 |
Annual Report
Investments October 31, 2003
Showing Percentage of Net Assets
Common Stocks - 85.0% | |||
Shares | Value (Note 1) | ||
Australia - 6.4% | |||
Amcor Ltd. | 539,933 | $ 3,248,169 | |
Australian Stock Exchange Ltd. | 520,006 | 5,888,548 | |
BHP Steel Ltd. | 1,300,971 | 4,990,531 | |
Boral Ltd. | 1,403,888 | 5,464,810 | |
Centamin Egypt Ltd. (a) | 760,127 | 172,265 | |
Corporate Express Australia Ltd. | 1,179,852 | 4,876,635 | |
Patrick Corp. Ltd. | 63,631 | 657,509 | |
QBE Insurance Group Ltd. | 777,796 | 5,669,997 | |
Stockland | 303,531 | 1,041,897 | |
Westpac Banking Corp. | 305,505 | 3,491,972 | |
TOTAL AUSTRALIA | 35,502,333 | ||
Belgium - 0.1% | |||
Melexis NV | 70,000 | 764,693 | |
China - 0.2% | |||
Aluminum Corp. of China Ltd. (H Shares) | 2,662,000 | 1,371,175 | |
PICC Property & Casualty Co. Ltd. (H Shares) | 122,000 | 28,564 | |
TOTAL CHINA | 1,399,739 | ||
Denmark - 1.3% | |||
Bang & Olufsen AS Series B | 11,121 | 429,790 | |
Coloplast AS Series B | 6,300 | 528,183 | |
DSV de Sammensluttede Vognmaend AS | 28,767 | 1,008,645 | |
Group 4 Falck AS | 42,145 | 942,452 | |
Kompan AS Class B | 8,171 | 835,079 | |
Radiometer AS Series B | 10,704 | 644,699 | |
SimCorp AS | 40,852 | 1,476,939 | |
Vestas Wind Systems AS | 67,018 | 1,404,672 | |
TOTAL DENMARK | 7,270,459 | ||
Estonia - 0.2% | |||
Hansabank SA | 42,132 | 956,145 | |
Finland - 1.8% | |||
Aldata Solutions Oyj (a) | 1,178,010 | 2,742,978 | |
Alma Media Corp. | 33,255 | 1,171,137 | |
Capman Oyj (A Shares) | 176,777 | 362,474 | |
Elcoteq Network Corp. (A Shares) | 60,974 | 1,030,569 | |
Finnlines Oyj | 24,877 | 786,752 | |
Hackman Oyj AB (A Shares) | 24,120 | 915,094 | |
Nokian Tyres Ltd. | 7,828 | 582,732 | |
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
Finland - continued | |||
Novo Group Oyj | 147,320 | $ 827,715 | |
Vacon Oyj | 120,250 | 1,418,111 | |
TOTAL FINLAND | 9,837,562 | ||
France - 2.5% | |||
Generale de Sante | 206,371 | 2,462,426 | |
Groupe Bourbon SA | 10,540 | 900,492 | |
Groupe Open SA | 14,809 | 445,185 | |
Groupe Open SA warrants 10/21/06 (a) | 14,809 | 9,092 | |
Hubwoo.com (a) | 12,668 | 39,770 | |
Infovista SA (a) | 37,551 | 93,092 | |
Inter Parfums SA | 8,534 | 533,855 | |
Ipsos SA | 11,694 | 983,506 | |
JET Multimedia SA (a) | 103,878 | 1,919,383 | |
Lectra (a) | 60,300 | 468,724 | |
Medidep SA (a) | 40,169 | 800,381 | |
Orpea (a) | 34,953 | 554,731 | |
SR Teleperformance SA | 49,895 | 945,044 | |
Stallergenes | 6,245 | 274,912 | |
Stedim SA | 37,663 | 2,172,809 | |
Toupargel-Agrigel | 1,727 | 115,037 | |
Trigano SA | 35,799 | 1,532,781 | |
TOTAL FRANCE | 14,251,220 | ||
Germany - 8.7% | |||
Advanced Photonics Technologies AG (a) | 44,139 | 107,890 | |
Bijou Brigitte Modische Accessoires AG | 14,898 | 602,325 | |
Continental AG | 41,066 | 1,389,129 | |
DAB Bank AG (a) | 65,900 | 540,500 | |
Deutsche Boerse AG | 12,778 | 707,864 | |
ElringKlinger AG | 16,686 | 1,420,747 | |
Freenet.de AG (a) | 97,516 | 5,648,371 | |
Fresenius AG | 27,796 | 1,992,875 | |
Fresenius Medical Care AG | 20,764 | 1,179,851 | |
Grenkeleasing AG | 104,052 | 2,193,811 | |
Hyrican Informationssysteme AG | 190,599 | 3,157,432 | |
Kontron AG (a) | 176,464 | 1,236,770 | |
Merck KGaA | 43,541 | 1,519,759 | |
MobilCom AG (a) | 1,636,952 | 22,452,512 | |
Pfeiffer Vacuum Technology AG | 20,648 | 686,255 | |
Pulsion Medical Systems AG (a) | 132,565 | 359,354 | |
Pulsion Medical Systems AG (a)(e) | 24,300 | 65,872 | |
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
Germany - continued | |||
REPower Systems AG | 30,113 | $ 605,244 | |
Rheinmetall AG | 17,348 | 532,163 | |
United Internet AG | 77,781 | 1,627,304 | |
Zapf Creation AG (a) | 14,400 | 444,734 | |
TOTAL GERMANY | 48,470,762 | ||
Greece - 2.5% | |||
Autohellas SA | 23,308 | 194,408 | |
Folli Follie SA | 67,292 | 1,571,561 | |
Germanos SA | 293,797 | 6,330,494 | |
Greek Organization of Football Prognostics SA | 77,010 | 945,650 | |
Hellenic Exchanges Holding SA (a) | 465,639 | 3,085,480 | |
Hyatt Regency SA (Reg.) | 158,024 | 1,365,649 | |
Public Power Corp. of Greece | 25,100 | 539,089 | |
TOTAL GREECE | 14,032,331 | ||
Hong Kong - 3.5% | |||
ASM Pacific Technology Ltd. | 659,000 | 2,465,225 | |
China Insurance International Holdings Co. Ltd. | 6,762,000 | 4,527,969 | |
China Merchants Holdings International Co. Ltd. | 3,330,000 | 4,502,550 | |
China Pharmaceutical Enterprise and Investment Corp. Ltd. | 10,720,000 | 3,658,185 | |
Hang Lung Group Ltd. | 251,000 | 323,220 | |
JCG Holdings Ltd. | 952,000 | 717,163 | |
Kingboard Chemical Holdings Ltd. | 2,586,000 | 3,463,274 | |
TOTAL HONG KONG | 19,657,586 | ||
Ireland - 0.7% | |||
IAWS Group PLC (Ireland) | 38,059 | 405,623 | |
ICON PLC sponsored ADR (a) | 23,746 | 1,015,142 | |
Independent News & Media PLC (Ireland) | 738,870 | 1,609,175 | |
Kingspan Group PLC (Ireland) | 143,001 | 621,223 | |
Paddy Power PLC | 18,797 | 137,838 | |
TOTAL IRELAND | 3,789,001 | ||
Italy - 0.6% | |||
Amplifon Spa | 43,750 | 1,120,076 | |
Cassa Di Risparmio Di Firenze | 1,414,768 | 2,187,982 | |
TOTAL ITALY | 3,308,058 | ||
Japan - 29.3% | |||
Able, Inc. | 133,700 | 3,769,965 | |
Amiyaki Tei Co. Ltd. (a) | 436 | 1,340,440 | |
ARRK Corp. | 94,700 | 6,305,294 | |
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
Japan - continued | |||
Asahi Broadcasting Corp. | 26,340 | $ 1,593,242 | |
Bank of Yokohama Ltd. | 228,000 | 985,083 | |
Capcom Co. Ltd. | 111,800 | 1,444,024 | |
Chugoku Marine Paints Ltd. | 17,000 | 77,779 | |
Citizen Electronics Co. Ltd. | 28,100 | 2,632,618 | |
CMK Corp. | 2,000 | 16,573 | |
Crymson Co. Ltd. | 268 | 753,247 | |
Culture Convenience Club Co. Ltd. | 52,200 | 497,595 | |
Drake Beam Morin Japan, Inc. | 135,400 | 3,460,742 | |
Enplas Corp. | 5,000 | 166,000 | |
Faith, Inc. | 257 | 2,092,186 | |
Fuji Seal, Inc. | 129,900 | 4,537,165 | |
Fuji Soft ABC, Inc. | 86,800 | 2,629,107 | |
Fuji Spinning Co. Ltd. (a) | 1,826,000 | 1,959,869 | |
Fujikura Ltd. | 1,265,000 | 7,605,648 | |
Globaly Corp. | 500 | 12,734 | |
H.I.S. Co. Ltd. | 46,400 | 970,711 | |
Heian Ceremony Service Co. Ltd. | 112,000 | 601,055 | |
Hitachi Medical Corp. | 6,000 | 69,911 | |
Hogy Medical Co. | 30,600 | 1,500,218 | |
Horiba Ltd. | 163,000 | 1,779,152 | |
House of Rose Co. Ltd. | 18,100 | 181,099 | |
Iriso Electronics Co. Ltd. | 149,000 | 1,897,398 | |
Japan Medical Dynamic Marketing, Inc. | 67,800 | 955,885 | |
Japan Radio Co. Ltd. (a) | 202,000 | 977,479 | |
Jastec Co. Ltd. | 85,400 | 1,422,298 | |
Kahma Co. Ltd. | 50,900 | 412,052 | |
Kibun Food Chemifa Co. Ltd. | 261,000 | 2,628,042 | |
Kobe Steel Ltd. Ord. (a) | 1,500,000 | 1,923,777 | |
Komehyo Co. Ltd. | 2,000 | 67,128 | |
Konica Minolta Holdings, Inc. | 305,500 | 4,015,349 | |
Kura Corp. Ltd. | 202 | 790,067 | |
Matsui Securities Co. Ltd. | 34,500 | 828,452 | |
Mitsui Trust Holdings, Inc. | 445,000 | 2,367,882 | |
Murata Manufacturing Co. Ltd. | 26,200 | 1,489,449 | |
New Japan Radio Co. Ltd. | 34,000 | 451,828 | |
Nichii Gakkan Co. | 96,770 | 5,263,640 | |
Nidec Corp. | 29,700 | 2,877,069 | |
Nihon Dempa Kogyo Co. Ltd. | 269,600 | 5,468,510 | |
Nippon Light Metal Co. Ltd. | 1,416,000 | 3,644,970 | |
Nippon Mining Holdings, Inc. | 138,000 | 504,602 | |
Nippon Sheet Glass Co. Ltd. | 273,000 | 839,312 | |
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
Japan - continued | |||
Nippon Thompson Co. Ltd. | 3,000 | $ 19,975 | |
Nissin Co. Ltd. | 133,600 | 498,235 | |
Nissin Kogyo Co. Ltd. | 174,000 | 3,750,955 | |
NOK Corp. | 205,000 | 8,073,949 | |
NTN Corp. | 123,000 | 641,068 | |
Osaki Electric Co. Ltd. | 48,000 | 249,300 | |
Pacific Metals Co. Ltd. (a) | 1,199,000 | 5,714,717 | |
Pigeon Corp. | 52,000 | 622,922 | |
Rohto Pharmaceutical Co. Ltd. | 75,000 | 621,475 | |
Salomon & Taylor Made Co. Ltd. | 26,000 | 198,181 | |
Sanken Electric Co. Ltd. | 306,000 | 3,392,887 | |
Sankyo Aluminum Industry Co. Ltd. | 1,204,000 | 4,457,231 | |
Scinex Corp. (a)(d) | 1,000 | 6,367 | |
Senshukai Co. Ltd. | 320,000 | 3,920,684 | |
Siix Corp. | 23,900 | 470,652 | |
SKY Perfect Communications, Inc. (a) | 489 | 596,016 | |
Sodick Co. Ltd. (a) | 504,000 | 3,722,467 | |
Stanley Electric Co. Ltd. | 194,000 | 4,129,161 | |
Sumitomo Corp. | 722,000 | 5,010,787 | |
Sumitomo Metal Mining Co. Ltd. | 455,000 | 3,120,520 | |
Sumitomo Mitsui Financial Group, Inc. | 811 | 4,079,343 | |
Suncall Corp. | 124,000 | 744,406 | |
Taiheiyo Cement Corp. | 80,000 | 197,926 | |
Takeuchi Manufacturing Co. Ltd. | 93,500 | 3,146,716 | |
Tokyo Ohka Kogyo Co. Ltd. | 9,600 | 174,641 | |
Tokyo Seimitsu Co. Ltd. | 51,600 | 1,614,553 | |
Toyo Ink Manufacturing Co. Ltd. | 377,000 | 1,399,090 | |
Toyo Kohan Co. Ltd. | 73,000 | 204,512 | |
Toyo Machinery & Metal Co. Ltd. | 149,000 | 1,223,822 | |
Toyoda Gosei Co. Ltd. | 282,700 | 8,357,058 | |
Tsumura & Co. (a) | 78,000 | 814,481 | |
Ube Industries Ltd. | 360,000 | 772,785 | |
USS Co. Ltd. | 31,070 | 2,207,174 | |
Works Applications Co. Ltd. (a) | 195 | 947,153 | |
Yamada Denki Co. Ltd. | 39,100 | 1,244,770 | |
Yamato Transport Co. Ltd. | 118,000 | 1,568,110 | |
TOTAL JAPAN | 163,720,735 | ||
Korea (South) - 0.7% | |||
Pulmuone Co. Ltd. | 30,520 | 1,387,389 | |
SKC Co. Ltd. | 187,810 | 2,618,389 | |
TOTAL KOREA (SOUTH) | 4,005,778 | ||
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
Liechtenstein - 0.3% | |||
Verwaltungs-und Privat-Bank AG | 13,770 | $ 1,797,516 | |
Luxembourg - 0.7% | |||
SBS Broadcasting SA (a) | 52,789 | 1,496,040 | |
Stolt-Nielsen SA | 260,573 | 2,226,478 | |
TOTAL LUXEMBOURG | 3,722,518 | ||
Netherlands - 1.7% | |||
Airspray NV | 5,933 | 116,842 | |
Buhrmann NV (a) | 62,251 | 555,283 | |
Completel Europe NV (a) | 64,996 | 1,731,776 | |
Exact Holdings NV (a) | 34,856 | 847,958 | |
Fugro NV (Certificaten Van Aandelen) | 4,587 | 229,822 | |
Hunter Douglas NV | 8,820 | 329,004 | |
Koninklijke Nedlloyd NV | 60,113 | 1,931,059 | |
Ordina NV | 68,223 | 711,296 | |
PinkRoccade NV | 90,416 | 1,066,278 | |
Van der Moolen Holding NV | 39,782 | 341,954 | |
Vedior NV (Certificaten Van Aandelen) | 99,922 | 1,435,358 | |
TOTAL NETHERLANDS | 9,296,630 | ||
New Zealand - 0.1% | |||
The Warehouse Group Ltd. | 154,961 | 542,068 | |
Norway - 1.8% | |||
ABG Sundal Collier ASA | 2,146,083 | 1,403,596 | |
Bolig- og Naeringsbanken ASA | 18,185 | 556,308 | |
Gresvig AS (a) | 292,290 | 1,040,105 | |
Komplett ASA | 13,600 | 328,054 | |
Kverneland ASA | 51,809 | 521,019 | |
Norman ASA | 38,400 | 322,710 | |
Orkla ASA (A Shares) | 54,614 | 1,138,784 | |
P4 Radio Hele Norge ASA (a) | 141,400 | 83,530 | |
Tandberg ASA (a) | 152,405 | 1,067,508 | |
TANDBERG Data ASA (a) | 140,300 | 351,253 | |
Tandberg Storage ASA (a) | 140,300 | 29,600 | |
TANDBERG Television ASA (a) | 496,592 | 1,857,907 | |
TGS Nopec Geophysical Co. ASA (a) | 103,930 | 1,162,119 | |
TOTAL NORWAY | 9,862,493 | ||
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
Singapore - 0.7% | |||
Singapore Exchange Ltd. | 1,500,000 | $ 1,431,446 | |
Venture Corp. Ltd. | 216,000 | 2,346,881 | |
TOTAL SINGAPORE | 3,778,327 | ||
South Africa - 0.0% | |||
Discovery Holdings Ltd. (a) | 2,500 | 3,665 | |
Wilson Bayly Holmes-Ovcon Ltd. | 1,300 | 2,548 | |
TOTAL SOUTH AFRICA | 6,213 | ||
Spain - 0.5% | |||
Corporacion Mapfre SA (Reg.) | 180,201 | 2,237,841 | |
Recoletos Grupo de Comunicacion SA | 77,043 | 589,053 | |
TOTAL SPAIN | 2,826,894 | ||
Sweden - 3.6% | |||
Audio Development Informationsteknik i Malmo AB (AudioDev) (B Shares) | 35,817 | 202,113 | |
Bilia AB (A Shares) | 171,387 | 1,969,261 | |
Eniro AB | 99,565 | 794,456 | |
Hexagon AB (B Shares) | 22,871 | 540,182 | |
Lindex AB | 14,900 | 433,715 | |
Lundin Petroleum AB (a) | 576,250 | 1,383,094 | |
Micronic Laser Systems AB (a) | 11,808 | 95,727 | |
Modern Times Group AB (MTG) (B Shares) (a) | 59,633 | 1,115,340 | |
Observer AB | 243,921 | 968,484 | |
OMHEX AB | 214,965 | 2,195,537 | |
ORC Software AB | 112,783 | 1,295,893 | |
Sectra AB (B Shares) | 237,456 | 1,758,305 | |
Song Networks Holding AB (a) | 612,563 | 3,988,448 | |
Teleca AB (B Shares) | 488,488 | 2,419,739 | |
Wedins Norden AB Series B (a) | 4,354,560 | 956,215 | |
TOTAL SWEDEN | 20,116,509 | ||
Switzerland - 1.9% | |||
A Hiestand Holding AG | 1,533 | 503,148 | |
Actelion Ltd. (Reg.) (a) | 16,228 | 1,537,339 | |
Ascom Holding AG (Reg.) (a) | 82,077 | 587,751 | |
Bank Sarasin & Co. Ltd. Series B (Reg.) | 687 | 1,014,665 | |
Belimo Holding AG (Reg.) | 2,454 | 906,109 | |
Georg Fischer AG (Reg.) (a) | 11,396 | 1,910,526 | |
Swiss Life Holding (a) | 13,291 | 2,245,570 | |
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
Switzerland - continued | |||
Swissquote Group Holding SA (a) | 20,104 | $ 1,424,646 | |
Temenos Group AG (a) | 131,181 | 719,216 | |
TOTAL SWITZERLAND | 10,848,970 | ||
United Kingdom - 14.8% | |||
Alba PLC | 18,700 | 202,786 | |
Amlin PLC | 193,220 | 474,718 | |
Arena Leisure PLC (a) | 82,200 | 66,854 | |
Atrium Underwriting PLC (a) | 269,360 | 846,629 | |
BBA Group PLC | 140,116 | 616,679 | |
Boosey & Hawkes PLC (a) | 99,605 | 362,857 | |
Caffe Nero Group PLC (a) | 350,478 | 252,386 | |
Collins Stewart Tullett PLC | 221,955 | 1,447,910 | |
Computacenter PLC | 129,613 | 1,010,235 | |
Corin Group PLC | 739,925 | 2,588,950 | |
Cox Insurance Holdings PLC (a) | 101,139 | 139,666 | |
CSS Stellar PLC | 46,500 | 64,607 | |
CustomVis PLC | 375,215 | 419,604 | |
De La Rue PLC | 49,426 | 234,912 | |
Derwent Valley Holdings PLC | 70,590 | 801,372 | |
Domino's Pizza UK & IRL PLC | 185,515 | 539,087 | |
Domnick Hunter Group PLC | 154,089 | 1,035,216 | |
Eidos PLC (a) | 1,380,900 | 3,650,083 | |
Electra Investment Trust PLC (a) | 108,683 | 1,157,398 | |
Flomerics Group PLC | 449,658 | 510,473 | |
French Connection Group PLC | 32,132 | 1,073,917 | |
Future Network PLC (a) | 1,331,893 | 1,286,353 | |
Games Workshop Group PLC | 203,858 | 2,400,648 | |
Hardy Underwriting Group PLC | 78,801 | 353,161 | |
Henlys Group PLC | 281,455 | 419,670 | |
Highbury House Communications PLC | 464,036 | 220,154 | |
Holidaybreak PLC | 88,011 | 842,561 | |
Hornby PLC | 147,646 | 2,745,631 | |
Icap PLC | 101,450 | 2,378,193 | |
Integrated Dental Holdings PLC | 33,843 | 19,210 | |
Intercontinental Hotels Group PLC | 116,276 | 1,053,554 | |
Interior Services Group PLC | 89,201 | 256,942 | |
Intertek Group PLC | 89,410 | 777,934 | |
ITE Group PLC | 1,977,342 | 1,750,588 | |
JJB Sports PLC | 203,657 | 985,193 | |
John David Group PLC | 159,679 | 531,651 | |
KBC Advanced Technologies PLC | 183,208 | 133,484 | |
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
United Kingdom - continued | |||
Kesa Electricals PLC | 1,134,401 | $ 4,689,995 | |
LA Fitness PLC | 459,104 | 1,174,638 | |
Lambert Howarth Group PLC | 1,094,513 | 4,376,721 | |
Lawrence PLC | 907,566 | 4,644,095 | |
Lok'nStore Group PLC (a) | 250,000 | 332,526 | |
Luminar PLC | 76,012 | 553,817 | |
Manpower Software PLC (a) | 500,000 | 199,092 | |
Marlborough Stirling PLC (a) | 345,669 | 307,493 | |
Matalan PLC | 621,071 | 2,788,708 | |
Matchnet PLC unit (a) | 650,690 | 2,208,610 | |
Mothercare PLC (a) | 231,362 | 1,266,224 | |
MyTravel Group PLC (a) | 19,977 | 6,262 | |
MyTravel Group PLC warrants 1/5/07 (a) | 83,903 | 12,084 | |
NDS Group PLC sponsored ADR (a) | 62,116 | 1,087,651 | |
Ocean Wilsons Holdings Ltd. | 144,111 | 330,866 | |
Online Travel Corp. PLC (a)(c) | 6,724,450 | 2,164,843 | |
Oystertec PLC (a) | 3,258,112 | 800,479 | |
Pace Micro Technology PLC | 158,774 | 174,867 | |
Peacock Group PLC | 313,014 | 1,264,935 | |
Pendragon PLC | 139,416 | 512,611 | |
Proteome Sciences PLC (a) | 177,387 | 507,954 | |
QA PLC (a) | 2,392,862 | 288,881 | |
Royalblue Group PLC | 39,500 | 299,506 | |
Safeway PLC | 866,189 | 4,256,245 | |
Sanctuary Group PLC | 1,099,800 | 941,068 | |
Shore Capital Group PLC | 3,722,696 | 1,356,163 | |
Singer & Friedlander Group PLC | 269,012 | 959,488 | |
SMG PLC | 1,135,042 | 1,942,447 | |
St. James's Place Capital PLC | 561,700 | 1,475,204 | |
Staffware PLC | 39,312 | 411,318 | |
Ted Baker PLC | 194,249 | 1,188,179 | |
Unite Group PLC | 136,286 | 359,085 | |
Urbium PLC (a) | 28,800 | 211,786 | |
Vanco PLC (a) | 7,690 | 32,249 | |
Wellington Underwriting PLC | 427,034 | 575,235 | |
William Hill PLC | 230,260 | 1,322,617 | |
Wolfson Microelectronics PLC (a) | 614,650 | 2,473,475 | |
WS Atkins PLC | 255,671 | 1,743,666 | |
TOTAL UNITED KINGDOM | 82,892,349 | ||
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
United States of America - 0.4% | |||
ActivCard Corp. (a) | 81,705 | $ 690,407 | |
ResMed, Inc. Chess Depositary Interests (a) | 374,191 | 1,589,002 | |
TOTAL UNITED STATES OF AMERICA | 2,279,409 | ||
TOTAL COMMON STOCKS (Cost $404,133,509) | 474,936,298 | ||
Nonconvertible Preferred Stocks - 2.0% | |||
Germany - 2.0% | |||
Draegerwerk AG (non-vtg.) | 114,882 | 6,474,588 | |
Fresenius AG | 37,105 | 2,363,276 | |
Fresenius Medical Care AG | 35,662 | 1,458,336 | |
Rheinmetall AG | 27,277 | 837,691 | |
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $9,445,007) | 11,133,891 |
Convertible Bonds - 0.0% | ||||
Principal Amount | ||||
United Kingdom - 0.0% | ||||
MyTravel Group PLC 7% 1/5/07 | GBP | 176,898 | 80,929 |
Money Market Funds - 18.8% | |||
Shares | Value (Note 1) | ||
Fidelity Cash Central Fund, 1.07% (b) | 77,015,277 | $ 77,015,277 | |
Fidelity Securities Lending Cash Central Fund, 1.09% (b) | 27,749,444 | 27,749,444 | |
TOTAL MONEY MARKET FUNDS (Cost $104,764,721) | 104,764,721 | ||
TOTAL INVESTMENT PORTFOLIO - 105.8% (Cost $518,420,264) | 590,915,839 | ||
NET OTHER ASSETS - (5.8)% | (32,177,171) | ||
NET ASSETS - 100% | $ 558,738,668 |
Currency Abbreviations | ||
GBP | - | British pound |
Legend |
(a) Non-income producing |
(b) The rate quoted is the annualized seven-day yield of the fund at period end. A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request. |
(c) Affiliated company |
(d) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
(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 $65,872 or 0.0% of net assets. |
Additional information on each holding is as follows: |
Security | Acquisition Date | Acquisition Cost |
Pulsion Medical Systems AG | 10/20/03 | $ 56,643 |
Other Information |
Purchases and sales of securities, other than short-term securities, aggregated $494,754,815 and $95,853,957, respectively. |
The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $167 for the period. |
Income Tax Information |
The fund hereby designates approximately $85,000 as a capital gain dividend for the purpose of the dividend paid deduction. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements
Statement of Assets and Liabilities
October 31, 2003 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $26,503,556) (cost $518,420,264) - See accompanying schedule | $ 590,915,839 | |
Foreign currency held at value (cost $667,432) | 667,177 | |
Receivable for investments sold | 4,647,029 | |
Receivable for fund shares sold | 8,167,917 | |
Dividends receivable | 533,201 | |
Interest receivable | 61,503 | |
Redemption fees receivable | 5,961 | |
Prepaid expenses | 529 | |
Other receivables | 54,870 | |
Total assets | 605,054,026 | |
Liabilities | ||
Payable for investments purchased | $ 17,758,544 | |
Delayed delivery | 6,367 | |
Payable for fund shares redeemed | 331,765 | |
Accrued management fee | 351,933 | |
Distribution fees payable | 3,649 | |
Other payables and accrued expenses | 113,656 | |
Collateral on securities loaned, at value | 27,749,444 | |
Total liabilities | 46,315,358 | |
Net Assets | $ 558,738,668 | |
Net Assets consist of: | ||
Paid in capital | $ 474,304,360 | |
Undistributed net investment income | 614,412 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | 11,335,639 | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 72,484,257 | |
Net Assets | $ 558,738,668 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements - continued
Statement of Assets and Liabilities - continued
October 31, 2003 | ||
Calculation of Maximum Offering Price | $ 17.69 | |
Maximum offering price per share (100/94.25 of $17.69) | $ 18.77 | |
Class T: | $ 17.68 | |
Maximum offering price per share (100/96.50 of $17.68) | $ 18.32 | |
Class B: | $ 17.62 | |
Class C: | $ 17.64 | |
International Small Cap Fund: | $ 17.71 | |
Institutional Class: | $ 17.72 |
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.
Annual Report
Statement of Operations
Year ended October 31, 2003 | ||
Investment Income | ||
Dividends | $ 1,947,285 | |
Special Dividends | 235,363 | |
Interest | 175,661 | |
Security lending | 81,504 | |
2,439,813 | ||
Less foreign taxes withheld | (182,569) | |
Total income | 2,257,244 | |
Expenses | ||
Management fee | $ 974,384 | |
Performance adjustment | 29,591 | |
Transfer agent fees | 225,702 | |
Distribution fees | 8,229 | |
Accounting and security lending fees | 93,965 | |
Non-interested trustees' compensation | 307 | |
Custodian fees and expenses | 230,448 | |
Registration fees | 159,831 | |
Audit | 42,608 | |
Legal | 5,300 | |
Miscellaneous | 1,922 | |
Total expenses before reductions | 1,772,287 | |
Expense reductions | (31,757) | 1,740,530 |
Net investment income (loss) | 516,714 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities (including realized gain (loss) of $15,787 on sales of investments in affiliated issuers) | 11,325,196 | |
Foreign currency transactions | 118,286 | |
Total net realized gain (loss) | 11,443,482 | |
Change in net unrealized appreciation (depreciation) on: Investment securities | 72,493,135 | |
Assets and liabilities in foreign currencies | (11,164) | |
Total change in net unrealized appreciation (depreciation) | 72,481,971 | |
Net gain (loss) | 83,925,453 | |
Net increase (decrease) in net assets resulting from operations | $ 84,442,167 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements - continued
Statement of Changes in Net Assets
Year ended | For the period | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $ 516,714 | $ (1,766) |
Net realized gain (loss) | 11,443,482 | 18,692 |
Change in net unrealized appreciation (depreciation) | 72,481,971 | 2,286 |
Net increase (decrease) in net assets resulting | 84,442,167 | 19,212 |
Distributions to shareholders from net realized gain | (27,060) | - |
Share transactions - net increase (decrease) | 470,607,516 | 3,405,761 |
Redemption fees | 290,434 | 638 |
Total increase (decrease) in net assets | 555,313,057 | 3,425,611 |
Net Assets | ||
Beginning of period | 3,425,611 | - |
End of period (including undistributed net investment income of $614,412 and accumulated net investment loss of $2,120, respectively) | $ 558,738,668 | $ 3,425,611 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights - Class A
Year ended October 31, | 2003 G |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 12.35 |
Income from Investment Operations | |
Net investment income (loss) E | .02 F |
Net realized and unrealized gain (loss) | 5.30 |
Total from investment operations | 5.32 |
Redemption fees added to paid in capital E | .02 |
Net asset value, end of period | $ 17.69 |
Total Return B,C,D | 43.24% |
Ratios to Average Net Assets H | |
Expenses before expense reductions | 1.77% A |
Expenses net of voluntary waivers, if any | 1.77% A |
Expenses net of all reductions | 1.74% A |
Net investment income (loss) | .28% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 4,960 |
Portfolio turnover rate | 84% A |
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Investment income per share reflects a special dividend which amounted to $.01 per share.
G For the period May 27, 2003 (commencement of sale of shares) 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 any voluntary 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.
Annual Report
Financial Highlights - Class T
Year ended October 31, | 2003 G |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 12.35 |
Income from Investment Operations | |
Net investment income (loss) E | - F,I |
Net realized and unrealized gain (loss) | 5.31 |
Total from investment operations | 5.31 |
Redemption fees added to paid in capitalE | .02 |
Net asset value, end of period | $ 17.68 |
Total Return B,C,D | 43.16% |
Ratios to Average Net Assets H | |
Expenses before expense reductions | 2.12% A |
Expenses net of voluntary waivers, if any | 2.12% A |
Expenses net of all reductions | 2.09% A |
Net investment income (loss) | (.07)% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 3,990 |
Portfolio turnover rate | 84% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the sales charges.
E Calculated based on average shares outstanding during the period.
F Investment income per share reflects a special dividend which amounted to $.01 per share.
G For the period May 27, 2003 (commencement of sale of shares) 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 any voluntary 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.
Annual Report
Financial Highlights - Class B
Year ended October 31, | 2003 G |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 12.35 |
Income from Investment Operations | |
Net investment income (loss) E | (.05) F |
Net realized and unrealized gain (loss) | 5.30 |
Total from investment operations | 5.25 |
Redemption fees added to paid in capital E | .02 |
Net asset value, end of period | $ 17.62 |
Total Return B,C,D | 42.67% |
Ratios to Average Net Assets H | |
Expenses before expense reductions | 2.76% A |
Expenses net of voluntary waivers, if any | 2.76% A |
Expenses net of all reductions | 2.73% A |
Net investment income (loss) | (.71)% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 1,016 |
Portfolio turnover rate | 84% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Investment income per share reflects a special dividend which amounted to $.01 per share.
G For the period May 27, 2003 (commencement of sale of shares) 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 any voluntary 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.
Annual Report
Financial Highlights - Class C
Year ended October 31, | 2003 G |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 12.35 |
Income from Investment Operations | |
Net investment income (loss) E | (.04) F |
Net realized and unrealized gain (loss) | 5.31 |
Total from investment operations | 5.27 |
Redemption fees added to paid in capital E | .02 |
Net asset value, end of period | $ 17.64 |
Total Return B,C,D | 42.83% |
Ratios to Average Net Assets H | |
Expenses before expense reductions | 2.57% A |
Expenses net of voluntary waivers, if any | 2.57% A |
Expenses net of all reductions | 2.55% A |
Net investment income (loss) | (.52)% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 1,383 |
Portfolio turnover rate | 84% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Calculated based on average shares outstanding during the period.
F Investment income per share reflects a special dividend which amounted to $.01 per share.
G For the period May 27, 2003 (commencement of sale of shares) 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 any voluntary 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.
Annual Report
Financial Highlights - International Small Cap Fund
Years ended October 31, | 2003 | 2002 G |
Selected Per-Share Data | ||
Net asset value, beginning of period | $ 9.87 | $ 10.00 |
Income from Investment Operations | ||
Net investment income (loss) D | .07 E | (.01) |
Net realized and unrealized gain (loss) | 7.75 | (.12) F |
Total from investment operations | 7.82 | (.13) |
Distributions from net realized gain | (.02) | - |
Redemption fees added to paid in capital D | .04 | -I |
Net asset value, end of period | $ 17.71 | $ 9.87 |
Total Return B,C | 79.78% | (1.30)% |
Ratios to Average Net Assets H | ||
Expenses before expense reductions | 1.54% | 13.70% A |
Expenses net of voluntary waivers, if any | 1.54% | 1.80% A |
Expenses net of all reductions | 1.51% | 1.80% A |
Net investment income (loss) | .46% | (.56)% A |
Supplemental Data | ||
Net assets, end of period (000 omitted) | $ 546,989 | $ 3,426 |
Portfolio turnover rate | 84% | 85% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Investment income per share reflects a special dividend which amounted to $.03 per share.
F The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the fund.
G For the period September 18, 2002 (commencement of operations) to October 31, 2002.
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 any voluntary 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.
Annual Report
Financial Highlights - Institutional Class
Year ended October 31, | 2003 F |
Selected Per-Share Data | |
Net asset value, beginning of period | $ 12.35 |
Income from Investment Operations | |
Net investment income (loss) D | .04 E |
Net realized and unrealized gain (loss) | 5.31 |
Total from investment operations | 5.35 |
Redemption fees added to paid in capital D | .02 |
Net asset value, end of period | $ 17.72 |
Total Return B,C | 43.48% |
Ratios to Average Net Assets G | |
Expenses before expense reductions | 1.51% A |
Expenses net of voluntary waivers, if any | 1.51% A |
Expenses net of all reductions | 1.48% A |
Net investment income (loss) | .54% A |
Supplemental Data | |
Net assets, end of period (000 omitted) | $ 401 |
Portfolio turnover rate | 84% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower had certain expenses not been reduced during the periods shown.
D Calculated based on average shares outstanding during the period.
E Investment income per share reflects a special dividend which amounted to $.01 per share.
F For the period May 27, 2003 (commencement of sale of shares) to October 31, 2003.
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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from 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.
Annual Report
Notes to Financial Statements
For the period ended October 31, 2003
1. Significant Accounting Policies.
Fidelity International Small Cap Fund (the fund) is a fund of Fidelity Investment Trust (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, International Small Cap (the original class), 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. The fund commenced sale of Class A, Class T, Class B, Class C, and Institutional shares on May 27, 2003. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the fund, and certain fund-level expense reductions, if any, are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the fund:
Security Valuation. Net asset value per share (NAV calculation) is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Equity securities for which market quotations are available are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) on the primary market or exchange on which they trade. Debt securities for which quotations are readily available are valued at their most recent bid prices (sales prices if the principal market is an exchange) in the principal market in which such securities are normally traded, as determined by recognized dealers in such securities, or securities are valued on the basis of information provided by a pricing service. Pricing services use valuation matrices that incorporate both dealer-supplied valuations and valuation models. If an event that is expected to materially affect the value of a security occurs after the close of an exchange or market on which that security trades, but prior to the NAV calculation, then that security will be fair valued taking the event into account. Securities (including restricted securities) for which market quotations are not readily available are valued at their fair value as determined in good faith under consistently applied procedures under the general supervision of the Board of Trustees. Price movements in futures contracts and ADRs, market and trading trends, the bid/ask quotes of brokers and off-exchange institutional trading may be reviewed in the course of
Annual Report
Notes to Financial Statements - continued
1. Significant Accounting Policies - continued
Annual Report
Security Valuation - continued
making a good faith determination of a security's fair value. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued on the basis of amortized cost. Investments in open-end investment companies are valued at their net asset value each business day.
Foreign Currency. The fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income is accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities, which is accrued using the interest method. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among the funds in the trust.
Income Tax Information and Distributions to Shareholders. Each year the fund intends to qualify as a regulated investment company by distributing all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required in the accompanying financial statements. Foreign taxes are provided for based on each fund's understanding of the tax rules and
Annual Report
Notes to Financial Statements - continued
1. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
rates that exist in the foreign markets in which it invests. Income dividends and capital gain distributions are declared separately for each class. Distributions are recorded on the ex-dividend date.
Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the fund will treat a portion of the proceeds from shares redeemed as a distribution from net investment income and realized gain for income tax purposes. Capital accounts within the financial statements are adjusted for permanent and temporary book and tax differences. These adjustments have no impact on net assets or the results of operations. Temporary differences will reverse in a subsequent period. These differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), market discount and losses deferred due to wash sales.
The tax-basis components of distributable earnings and the federal tax cost as of period end were as follows:
Unrealized appreciation | $ 77,517,402 | | |
Unrealized depreciation | (5,457,380) | |
Net unrealized appreciation (depreciation) | 72,060,022 | |
Undistributed ordinary income | 12,052,118 | |
Cost for federal income tax purposes | $ 518,855,817 |
The tax character of distributions paid was as follows:
October 31, | October 31, | |
Ordinary Income | $ 27,060 | $ - |
Short-Term Trading (Redemption) Fees. Shares held in the fund less than 90 days are subject to a short-term trading fee equal to 2.00% of the proceeds of the redeemed shares. The fee, which is retained by the fund, is accounted for as an addition to paid in capital.
2. Operating Policies.
Repurchase Agreements. Fidelity Management & Research Company (FMR) has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts. These accounts are then invested in repurchase agreements that are collateralized by U.S. Treasury or Government obligations. The fund
Annual Report
2. Operating Policies - continued
Annual Report
Repurchase Agreements - continued
may also invest directly with institutions, in repurchase agreements that are collateralized by commercial paper obligations and corporate obligations. Collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. Collateral is marked-to-market daily and maintained at a value at least equal to the principal amount of the repurchase agreement (including accrued interest).
Delayed Delivery Transactions and When-Issued Securities. The fund may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. During the time a delayed delivery sell is outstanding, the contract is marked-to-market daily and equivalent deliverable securities are held for the transaction. The value of the securities purchased on a delayed delivery or when-issued basis are identified as such in the fund's Schedule of Investments. The fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract, or if the issuer does not issue the securities due to political, economic, or other factors.
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.
3. Purchases and Sales of Investments.
Notes to Financial Statements - continued
Information regarding purchases and sales of securities is included under the caption "Other Information" at the end of the fund's Schedule of Investments.
Annual Report
4. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the fund with investment management related services for which the fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .60% of the fund's average net assets and a group fee rate that averaged .28% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ±.20% of the fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the investment performance of International Small Cap (the original class) as compared to an appropriate benchmark index. The fund's performance adjustment took effect in September, 2003. Subsequent months will be added until the performance period includes 36 months. For the period, the total annual management fee rate, including the performance adjustment, was .88% of the fund's average net assets.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. Class A and Class T Plans also authorize the use of brokerage commissions to pay distribution expenses. This practice has been discontinued and no commissions incurred after June 30, 2003 have been used to pay distribution expenses. In addition, FDC may pay financial intermediaries for selling shares of the fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, the total amounts paid to and retained by FDC and the amount of distribution expenses paid with brokerage commissions were as follows:
Distribution | Service | Paid to | Retained | Paid with | |
Class A | - | .25% | $ 1,070 | $ 73 | $ - |
Class T | .25% | .25% | 3,478 | 182 | - |
Class B | .75% | .25% | 1,758 | 1,438 | |
Class C | .75% | .25% | 1,923 | 1,370 | |
$ 8,229 | $ 3,063 | $ - |
Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares of the fund. FDC receives the proceeds of contingent deferred sales 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, and .25% for certain purchases of Class A and Class T shares.
Annual Report
Notes to Financial Statements - continued
4. Fees and Other Transactions with Affiliates - continued
Sales Load - continued
For the period, sales charge amounts retained by FDC were as follows:
Retained | ||
Class A | $ 6,125 | |
Class T | 4,155 | |
Class B* | - | |
Class C* | - | |
$ 10,280 |
* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the
sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent (collectively referred to as the transfer agent) for each class of the fund, except for International Small Cap. Fidelity Service Company, Inc. (FSC), an affiliate of FMR is the transfer agent for International Small Cap shares. FIIOC and FSC receive 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 and FSC pay for typesetting, printing and mailing of all shareholder reports, except proxy statements. For the period, the following amounts were paid to FIIOC or FSC:
Amount | % of | |
Class A | $ 706 | .16* |
Class T | 1,800 | .25* |
Class B | 714 | .40* |
Class C | 432 | .22* |
International Small Cap | 221,957 | .20 |
Institutional Class | 93 | .13* |
$ 225,702 |
* Annualized.
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC) maintains the fund's accounting records and administers the security lending program. The security lending fee is based on the number and duration of lending transactions. The accounting fee is based on the level of average net assets for the month plus out-of-pocket expenses.
Annual Report
4. Fees and Other Transactions with Affiliates - continued
Central Funds. The fund may invest in affiliated Central Funds managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR. The Central Funds are open-end investment companies available only to investment companies and other accounts managed by FMR and its affiliates. The Central Funds seek preservation of capital and current income and do not pay a management fee. Income distributions earned by the fund are recorded as income in the accompanying financial statements and totaled $112,402 for the period.
Brokerage Commissions. The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms are shown under the caption "Other Information" at the end of the fund's Schedule of Investments.
5. Committed Line of Credit.
The fund participates with other funds managed by FMR in a $3.5 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The fund has agreed to pay commitment fees on its pro rata portion of the line of credit. During the period, there were no borrowings on this line of credit.
6. Security Lending.
The fund lends portfolio securities from time to time in order to earn additional income. The fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the fund and any additional required collateral is delivered to the fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Cash collateral is invested in cash equivalents. The value of loaned securities and cash collateral at period end are disclosed on the fund's Statement of Assets and Liabilities.
Annual Report
Notes to Financial Statements - continued
7. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of the fund provided services to the fund in addition to trade execution. These services may include payments of expenses on behalf of the fund to support distribution of fund shares for Class A and Class T ("Distribution Expense Reduction") and to pay other fund expenses, such as transfer agent fees ("Other Expense Reduction") collectively referred to as "Brokerage Service Arrangements" in the accompanying table. Brokerage service arrangements generally benefits all shareholders of each class by reducing fund expenses. Each of Class A and Class T shareholders' Other Expense Reduction benefit is reduced by the amount of any Distribution Expense Reduction. In addition, through arrangements with the fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the fund's expenses. All of the applicable expense reductions are noted in the table below.
Brokerage Service Arrangements | ||||
Distribution | Other | Custody | Transfer | |
Fund Level | $ - | $ 31,745 | $ 12 | $ - |
8. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Years ended October 31, | ||
2003 | 2002 | |
From net realized gain | ||
International Small Cap | $ 27,060 | $ - |
Annual Report
9. Share Transactions.
Transactions for each class of shares were as follows:
Shares | Dollars | |||
2003A | 2002B | 2003A | 2002B | |
Class A | ||||
Shares sold | 287,827 | - | $ 4,774,574 | $ - |
Shares redeemed | (7,479) | - | (125,524) | - |
Net increase (decrease) | 280,348 | - | $ 4,649,050 | $ - |
Class T | ||||
Shares sold | 229,190 | - | $ 3,468,992 | $ - |
Shares redeemed | (3,525) | - | (55,853) | - |
Net increase (decrease) | 225,665 | - | $ 3,413,139 | $ - |
Class B | ||||
Shares sold | 60,233 | - | $ 911,644 | $ - |
Shares redeemed | (2,570) | - | (40,678) | - |
Net increase (decrease) | 57,663 | - | $ 870,966 | $ - |
Class C | ||||
Shares sold | 88,372 | - | $ 1,388,024 | $ - |
Shares redeemed | (9,942) | - | (158,911) | - |
Net increase (decrease) | 78,430 | - | $ 1,229,113 | $ - |
International Small Cap | ||||
Shares sold | 32,919,552 | 350,328 | $ 492,932,712 | $ 3,437,639 |
Reinvestment of distributions | 2,491 | - | 25,785 | - |
Shares redeemed | (2,388,222) | (3,412) | (32,859,600) | (31,878) |
Net increase (decrease) | 30,533,821 | 346,916 | $ 460,098,897 | $ 3,405,761 |
Institutional Class | ||||
Shares sold | 23,006 | - | $ 351,524 | $ - |
Shares redeemed | (396) | - | (5,173) | - |
Net increase (decrease) | 22,610 | - | $ 346,351 | $ - |
A Share transactions for Class A, Class T, Class B, Class C and Institutional Class are for the period May 27, 2003 (commencement of sale of shares)
to October 31, 2003.
B For the period September 18, 2002 (commencement of operations) to October 31, 2002.
10. Transactions with Affiliated Companies.
An affiliated company is a company in which the fund has ownership of at least 5% of the voting securities. Transactions during the period with companies which are or were affiliates are as follows:
Affiliate | Purchase | Sales | Dividend | Value |
Hyrican Informationssysteme | $ - | $ 138,521 | $ - | $ - |
Online Travel Corp. PLC | 227,512 | - | - | 2,164,843 |
Totals | $ 227,512 | $ 138,521 | $ - | $ 2,164,843 |
Annual Report
Independent Auditors' Report
To the Trustees of Fidelity Investment Trust and Shareholders of Fidelity International Small Cap Fund:
We have audited the accompanying statement of assets and liabilities of Fidelity International Small Cap Fund (the Fund), a fund of Fidelity Investment Trust, including the portfolio of investments, as of October 31, 2003, and the related statement of operations for the year then ended, and the statement of changes in net assets and the financial highlights for each of the two years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2003, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Fidelity International Small Cap Fund as of October 31, 2003, the results of its operations for the year then ended, and the changes in its net assets and its financial highlights for each of the two years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
/s/DELOITTE & TOUCHE LLP
DELOITTE & TOUCHE LLP
Boston, Massachusetts
December 12, 2003
Annual Report
Trustees and Officers
The Trustees, Members of the Advisory Board, and executive officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, and review the fund's performance. Except for William O. McCoy, each of the Trustees oversees 289 funds advised by FMR or an affiliate. Mr. McCoy oversees 291 funds advised by FMR or an affiliate.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. In any event, each non-interested Trustee shall retire not later than the last day of the calendar year in which his or her 72nd birthday occurs. The executive officers and Advisory Board Members hold office without limit in time, except that any officer and Advisory Board Member] may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Interested Trustees*:
Correspondence intended for each Trustee who is an "interested person" (as defined in the 1940 Act) may be sent to 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation | |
Edward C. Johnson 3d (73)** | |
Year of Election or Appointment: 1984 Mr. Johnson is Chairman of the Board of Trustees. Mr. Johnson serves as Chief Executive Officer, Chairman, and a Director of FMR Corp.; a Director and Chairman of the Board and of the Executive Committee of FMR; Chairman and a Director of Fidelity Management & Research (Far East) Inc.; Chairman (1998) and a Director of Fidelity Investments Money Management, Inc.; and Chairman (2001) and a Director (2000) of FMR Co., Inc. | |
Abigail P. Johnson (41)** | |
Year of Election or Appointment: 2001 Senior Vice President of International Small Cap (2002). Ms. Johnson also serves as Senior Vice President of other Fidelity funds (2001). She is President and a Director of FMR (2001), Fidelity Investments Money Management, Inc. (2001), FMR Co., Inc. (2001), and a Director of FMR Corp. Previously, Ms. Johnson managed a number of Fidelity funds. | |
Laura B. Cronin (49) | |
Year of Election or Appointment: 2003 Ms. Cronin is an Executive Vice President (2002) and Chief Financial Officer (2002) of FMR Corp. and is a member of the Fidelity Management Committee (2003). Previously, Ms. Cronin served as Vice President of Finance of FMR (1997-1999), and Chief Financial Officer of FMR (1999-2001), Fidelity Personal Investments (2001), and Fidelity Brokerage Company (2001-2002). | |
Robert L. Reynolds (51) | |
Year of Election or Appointment: 2003 Mr. Reynolds is a Director (2003) and Chief Operating Officer (2002) of FMR Corp. and is the head of the Fidelity Management Committee (2003). He also serves on the Board at Fidelity Investments Canada, Ltd. (2000). Previously, Mr. Reynolds served as President of Fidelity Investments Institutional Retirement Group (1996-2000). |
* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with FMR.
** Edward C. Johnson 3d, Trustee, is Abigail P. Johnson's father.
Annual Report
Non-Interested Trustees:
Correspondence intended for each non-interested Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Age; Principal Occupation | |
J. Michael Cook (61) | |
Year of Election or Appointment: 2001 Prior to Mr. Cook's retirement in May 1999, he served as Chairman and Chief Executive Officer of Deloitte & Touche LLP (accounting/consulting), Chairman of the Deloitte & Touche Foundation, and a member of the Board of Deloitte Touche Tohmatsu. He currently serves as a Director of Comcast (telecommunications, 2002), International Flavors & Fragrances, Inc. (2000), Rockwell Automation (2000) and The Dow Chemical Company (2000). He is a Member of the Diversity Advisory Council of Marakon (2003) and the Advisory Board of the Directorship Search Group, Chairman Emeritus of the Board of Catalyst (a leading organization for the advancement of women in business), and is Chairman of the Accountability Advisory Council to the Comptroller General of the United States. He also serves as a Member of the Advisory Board of the Graduate School of Business of the University of Florida, his alma mater. | |
Ralph F. Cox (71) | |
Year of Election or Appointment: 1991 Mr. Cox is President of RABAR Enterprises (management consulting for the petroleum industry). Prior to February 1994, he was President of Greenhill Petroleum Corporation (petroleum exploration and production). Until March 1990, Mr. Cox was President and Chief Operating Officer of Union Pacific Resources Company (exploration and production). He is a Director of CH2M Hill Companies (engineering), and Abraxas Petroleum (petroleum exploration and production, 1999). In addition, he is a member of advisory boards of Texas A&M University and the University of Texas at Austin. | |
Phyllis Burke Davis (71) | |
Year of Election or Appointment: 1992 Mrs. Davis is retired from Avon Products, Inc. (consumer products) where she held various positions including Senior Vice President of Corporate Affairs and Group Vice President of U.S. product marketing, sales, distribution, and manufacturing. Mrs. Davis is a member of the Board of Directors of the Southampton Hospital in Southampton, N.Y. (1998). Previously, she served as a Director of BellSouth Corporation (telecommunications), Eaton Corporation (diversified industrial), the TJX Companies, Inc. (retail stores), Hallmark Cards, Inc., and Nabisco Brands, Inc. | |
Robert M. Gates (60) | |
Year of Election or Appointment: 1997 Dr. Gates is President of Texas A&M University (2002). He was Director of the Central Intelligence Agency (CIA) from 1991 to 1993. From 1989 to 1991, Dr. Gates served as Assistant to the President of the United States and Deputy National Security Advisor. Dr. Gates is a Director of NACCO Industries, Inc. (mining and manufacturing), and Parker Drilling Co., Inc. (drilling and rental tools for the energy industry, 2001). He also serves as a member of the Advisory Board of VoteHere.net (secure internet voting, 2001). Previously, Dr. Gates served as a Director of LucasVarity PLC (automotive components and diesel engines), a Director of TRW Inc. (automotive, space, defense, and information technology), and Dean of the George Bush School of Government and Public Service at Texas A&M University (1999-2001). Dr. Gates also is a Trustee of the Forum for International Policy. | |
Donald J. Kirk (70) | |
Year of Election or Appointment: 1987 Mr. Kirk is a Governor of the American Stock Exchange (2001), a Trustee and former Chairman of the Board of Trustees of the Greenwich Hospital Association, a Director of the Yale-New Haven Health Services Corp. (1998), and a Director Emeritus and former Chairman of the Board of Directors of National Arts Strategies Inc. Mr. Kirk was an Executive-in-Residence (1995-2000) and a Professor (1987-1995) at Columbia University Graduate School of Business. Prior to 1987, he was Chairman of the Financial Accounting Standards Board. Previously, Mr. Kirk served as a Governor of the National Association of Securities Dealers, Inc. (1996-2002), a member and Vice Chairman of the Public Oversight Board of the American Institute of Certified Public Accountants' SEC Practice Section (1995-2002), a Director of General Re Corporation (reinsurance, 1987-1998) and as a Director of Valuation Research Corp. (appraisals and valuations). | |
Marie L. Knowles (57) | |
Year of Election or Appointment: 2001 Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. She currently serves as a Director of Phelps Dodge Corporation (copper mining and manufacturing), URS Corporation (multidisciplinary engineering, 1999), and McKesson Corporation (healthcare service, 2002). Ms. Knowles is a Trustee of the Brookings Institution and the Catalina Island Conservancy and also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California. | |
Ned C. Lautenbach (59) | |
Year of Election or Appointment: 2000 Mr. Lautenbach has been a partner of Clayton, Dubilier & Rice, Inc. (private equity investment firm) since September 1998. Previously, Mr. Lautenbach was with the International Business Machines Corporation (IBM) from 1968 until his retirement in 1998. He was most recently Senior Vice President and Group Executive of Worldwide Sales and Services. From 1993 to 1995, he was Chairman of IBM World Trade Corporation, and from 1994 to 1998 was a member of IBM's Corporate Executive Committee. Mr. Lautenbach serves as Chairman and as a Director (1998) of Acterna Corporation (communications test equipment). He is also Co-Chairman of Covansys, Inc. (global provider of business and technology solutions, 2000). In addition, he is a Director of Eaton Corporation (diversified industrial) and the Philharmonic Center for the Arts in Naples, Florida (1999). He also is a member of the Council on Foreign Relations. | |
Marvin L. Mann (70) | |
Year of Election or Appointment: 1993 Mr. Mann is Chairman of the non-interested Trustees (2001). He is Chairman Emeritus of Lexmark International, Inc. (computer peripherals) where he served as CEO until April 1998 and retired as Chairman May 1999, and remains a member of the Board. Prior to 1991, he held the positions of Vice President of International Business Machines Corporation (IBM) and President and General Manager of various IBM divisions and subsidiaries. Mr. Mann is a Board member of Imation Corp. (imaging and information storage) and Acterna Corporation (communications test equipment, 1999). He is also a member of the Director Services Committee of the Investment Company Institute. In addition, Mr. Mann is a member of the President's Cabinet at the University of Alabama and the Board of Visitors of the Culverhouse College of Commerce and Business Administration at the University of Alabama. | |
William O. McCoy (70) | |
Year of Election or Appointment: 1997 Prior to his retirement in December 1994, Mr. McCoy was Vice Chairman of the Board of BellSouth Corporation (telecommunications) and President of BellSouth Enterprises. He is currently a Director of Liberty Corporation (holding company), Duke Realty Corporation (real estate), Progress Energy, Inc. (electric utility), and Acterna Corporation (communications test equipment, 1999). He is also a partner of Franklin Street Partners (private investment management firm) and a member of the Research Triangle Foundation Board. In addition, Mr. McCoy served as the Interim Chancellor (1999-2000) and a member of the Board of Visitors (1994-1998) for the University of North Carolina at Chapel Hill and currently serves on the Board of Directors of the University of North Carolina Health Care System and the Board of Visitors of the Kenan-Flagler Business School (University of North Carolina at Chapel Hill). He also served as Vice President of Finance for the University of North Carolina (16-school system, 1995-1998). | |
William S. Stavropoulos (64) | |
Year of Election or Appointment: 2001 Mr. Stavropoulos is Chairman of the Board, President and CEO (2002), and Chairman of the Executive Committee (2000) and a Director of The Dow Chemical Company. Since joining The Dow Chemical Company in 1967, Mr. Stavropoulos served in numerous senior management positions, including President (1993-2000) and Chief Executive Officer (1995-2000). Currently, he is a Director of NCR Corporation (data warehousing and technology solutions), BellSouth Corporation (telecommunications), Chemical Financial Corporation, and Maersk Inc. (industrial conglomerate, 2002). He also serves as a member of the Board of Trustees of the American Enterprise Institute for Public Policy Research. In addition, Mr. Stavropoulos is a member of The Business Council, J.P. Morgan International Council, World Business Council for Sustainable Development, and the University of Notre Dame Advisory Council for the College of Science. |
Annual Report
Trustees and Officers - continued
Advisory Board Members and Executive Officers:
Correspondence intended for Dr. Heilmeier may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for each executive officer and Mr. Lynch may be sent to 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation | |
George H. Heilmeier (67) | |
Year of Election or Appointment: 2003 Member of the Advisory Board of Fidelity Investment Trust. Dr. Heilmeier is Chairman Emeritus of Telcordia Technologies (communication software and systems), where prior to his retirement, he served as company Chairman and Chief Executive Officer. He currently serves on the Boards of Directors of The Mitre Corporation (systems engineering and information technology support for the government), INET Technologies Inc. (telecommunications network surveillance, 2001) and Teletech Holdings (customer management services, 1998). He is Chairman of the General Motors Technology Advisory Committee and a Life Fellow of the IEEE (2000). Dr. Heilmeier is a member of the Defense Science Board and the National Security Agency Advisory Board. He is also a member of the National Academy of Engineering, the American Academy of Arts and Sciences and The Board of Overseers of the School of Engineering and Applied Science of the University of Pennsylvania. Previously, Dr. Heilmeier served as a Director of TRW Inc. (automotive, space, defense, and information technology, 1992-2002) and Compaq (1994-2002). | |
Peter S. Lynch (60) | |
Year of Election or Appointment: 2003 Member of the Advisory Board of Fidelity Investment Trust. Vice Chairman and a Director of FMR, and Vice Chairman (2001) and a Director (2000) of FMR Co., Inc. Previously, Mr. Lynch served as a Trustee of the Fidelity funds (1990-2003). Prior to May 31, 1990, he was a Director of FMR and Executive Vice President of FMR (a position he held until March 31, 1991), Vice President of Fidelity® Magellan® Fund and FMR Growth Group Leader, and Managing Director of FMR Corp. Mr. Lynch was also Vice President of Fidelity Investments Corporate Services. In addition, he serves as a Trustee of Boston College, Massachusetts Eye & Ear Infirmary, Historic Deerfield, John F. Kennedy Library, and the Museum of Fine Arts of Boston. | |
Philip L. Bullen (44) | |
Year of Election or Appointment: 2002 Vice President of International Small Cap. Mr. Bullen also serves as Vice President of certain Equity Funds (2001) and certain High Income Funds (2001). He is Senior Vice President of FMR (2001) and FMR Co., Inc. (2001), President and a Director of Fidelity Management & Research (Far East) Inc. (2001), President and a Director of Fidelity Management & Research (U.K.) Inc. (2002), and a Director of Strategic Advisers, Inc. (2002). Before joining Fidelity Investments, Mr. Bullen was President and Chief Investment Officer of Santander Global Advisors (1997-2000) and President and Chief Executive Officer of Boston's Baring Asset Management Inc. (1994-1997). | |
Eric D. Roiter (54) | |
Year of Election or Appointment: 1998 Secretary of International Small Cap. He also serves as Secretary of other Fidelity funds (1998); Vice President, General Counsel, and Clerk of FMR Co., Inc. (2001) and FMR (1998); Vice President and Clerk of FDC (1998); Assistant Clerk of Fidelity Management & Research (U.K.) Inc. (2001) and Fidelity Management & Research (Far East) Inc. (2001); and Assistant Secretary of Fidelity Investments Money Management, Inc. (2001). Prior to joining Fidelity, Mr. Roiter was with the law firm of Debevoise & Plimpton, as an associate (1981-1984) and as a partner (1985-1997), and served as an Assistant General Counsel of the U.S. Securities and Exchange Commission (1979-1981). Mr. Roiter is an Adjunct Member, Faculty of Law, at Boston College Law School (2003). | |
Stuart Fross (44) | |
Year of Election or Appointment: 2003 Assistant Secretary of International Small Cap. Mr. Fross also serves as Assistant Secretary of other Fidelity funds (2003) and is an employee of FMR. | |
Maria F. Dwyer (44) | |
Year of Election or Appointment: 2002 President and Treasurer of International Small Cap. Ms. Dwyer also serves as President and Treasurer of other Fidelity funds (2002) and is a Vice President (1999) and an employee (1996) of FMR. Prior to joining Fidelity, Ms. Dwyer served as Director of Compliance for MFS Investment Management. | |
Timothy F. Hayes (52) | |
Year of Election or Appointment: 2002 Chief Financial Officer of International Small Cap. Mr. Hayes also serves as Chief Financial Officer of other Fidelity funds (2002). Recently he was appointed President of Fidelity Service Company (2003) where he also serves as a Director. Mr. Hayes also serves as President of Fidelity Investments Operations Group (FIOG, 2002), which includes Fidelity Pricing and Cash Management Services Group (FPCMS), where he was appointed President in 1998. Previously, Mr. Hayes served as Chief Financial Officer of Fidelity Investments Corporate Systems and Service Group (1998) and Fidelity Systems Company (1997-1998). | |
John R. Hebble (45) | |
Year of Election or Appointment: 2003 Deputy Treasurer of International Small Cap. Mr. Hebble also serves as Deputy Treasurer of other Fidelity funds (2003), and is an employee of FMR. Before joining Fidelity Investments, Mr. Hebble worked at Deutsche Asset Management where he served as Director of Fund Accounting (2002-2003) and Assistant Treasurer of the Scudder Funds (1998-2003). | |
John H. Costello (57) | |
Year of Election or Appointment: 1986 Assistant Treasurer of International Small Cap. Mr. Costello also serves as Assistant Treasurer of other Fidelity funds and is an employee of FMR. | |
Francis V. Knox, Jr. (56) | |
Year of Election or Appointment: 2002 Assistant Treasurer of International Small Cap. Mr. Knox also serves as Assistant Treasurer of other Fidelity funds (2002), and is a Vice President and an employee of FMR. Previously, Mr. Knox served as Vice President of Investment & Advisor Compliance (1990-2001), and Compliance Officer of Fidelity Management & Research (U.K.) Inc. (1992-2002), Fidelity Management & Research (Far East) Inc. (1991-2002), and FMR Corp. (1995-2002). | |
Mark Osterheld (48) | |
Year of Election or Appointment: 2002 Assistant Treasurer of International Small Cap. Mr. Osterheld also serves as Assistant Treasurer of other Fidelity funds (2002) and is an employee of FMR. | |
Thomas J. Simpson (45) | |
Year of Election or Appointment: 2000 Assistant Treasurer of International Small Cap. Mr. Simpson is Assistant Treasurer of other Fidelity funds (2000) and an employee of FMR (1996). Prior to joining FMR, Mr. Simpson was Vice President and Fund Controller of Liberty Investment Services (1987-1995). |
Annual Report
Distributions
The Board of Trustees of Fidelity International Small Cap Fund voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities, and dividends derived from net investment income:
Pay Date | Record Date | Dividends | Capital Gains | |
International Small Cap | 12/15/03 | 12/12/03 | $.02 | $.31 |
The amounts per share which represent income derived from sources within, and taxes paid to, foreign countries or possessions of the United States are as follows:
Pay Date | Income | Taxes | |
International Small Cap | 12/16/02 | $.020 | $.001 |
The fund will notify shareholders in January 2004 of amounts for use in preparing 2003 income tax returns.
Annual Report
Managing Your Investments
Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day.
By Phone
Fidelity Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone_graphic)Fidelity Automated
Service Telephone (FAST®)
1-800-544-5555
Press
1 For mutual fund and brokerage trading.
2 For quotes.*
3 For account balances and holdings.
4 To review orders and mutual
fund activity.
5 To change your PIN.
*0 To speak to a Fidelity representative.
By PC
Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.
(computer_graphic)Fidelity's Web Site
www.fidelity.com
* When you call the quotes line, please remember that a fund's yield and return will vary and, except for money market funds, share price will also vary. This means that you may have a gain or loss when you sell your shares. There is no assurance that money market funds will be able to maintain a stable $1 share price; an investment in a money market fund is not insured or guaranteed by the U.S. government. Total returns are historical and include changes in share price, reinvestment of dividends and capital gains, and the effects of any sales charges.
Annual Report
To Write Fidelity
We'll give your correspondence immediate attention and send you written confirmation upon completion of your request.
(letter_graphic)Making Changes
To Your Account
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002
(letter_graphic)For Non-Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
(letter_graphic)For Retirement
Accounts
Buying shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Selling shares
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0035
Overnight Express
Fidelity Investments
Attn: Distribution Services
100 Crosby Parkway - KC1H
Covington, KY 41015
General Correspondence
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
Annual Report
To Visit Fidelity
For directions and hours,
please call 1-800-544-9797.
Arizona
7001 West Ray Road
Chandler, AZ
7373 N. Scottsdale Road
Scottsdale, AZ
California
815 East Birch Street
Brea, CA
1411 Chapin Avenue
Burlingame, CA
851 East Hamilton Avenue
Campbell, CA
527 North Brand Boulevard
Glendale, CA
19200 Von Karman Avenue
Irvine, CA
601 Larkspur Landing Circle
Larkspur, CA
10100 Santa Monica Blvd.
Los Angeles, CA
27101 Puerta Real
Mission Viejo, CA
73-575 El Paseo
Palm Desert, CA
251 University Avenue
Palo Alto, CA
1760 Challenge Way
Sacramento, CA
7676 Hazard Center Drive
San Diego, CA
8 Montgomery Street
San Francisco, CA
21701 Hawthorne Boulevard
Torrance, CA
2001 North Main Street
Walnut Creek, CA
6300 Canoga Avenue
Woodland Hills, CA
Colorado
1625 Broadway
Denver, CO
9185 East Westview Road
Littleton, CO
Connecticut
48 West Putnam Avenue
Greenwich, CT
265 Church Street
New Haven, CT
300 Atlantic Street
Stamford, CT
29 South Main Street
West Hartford, CT
Delaware
222 Delaware Avenue
Wilmington, DE
Florida
4400 N. Federal Highway
Boca Raton, FL
121 Alhambra Plaza
Coral Gables, FL
2948 N. Federal Highway
Ft. Lauderdale, FL
1907 West State Road 434
Longwood, FL
8880 Tamiami Trail, North
Naples, FL
3501 PGA Boulevard
West Palm Beach, FL
8065 Beneva Road
Sarasota, FL
1502 N. Westshore Blvd.
Tampa, FL
Georgia
3445 Peachtree Road, N.E.
Atlanta, GA
Annual Report
1000 Abernathy Road
Atlanta, GA
Illinois
One North LaSalle Street
Chicago, IL
1415 West 22nd Street
Oak Brook, IL
1700 East Golf Road
Schaumburg, IL
3232 Lake Avenue
Wilmette, IL
Indiana
4729 East 82nd Street
Indianapolis, IN
Kansas
5400 College Boulevard
Overland Park, KS
Maine
Three Canal Plaza
Portland, ME
Maryland
7401 Wisconsin Avenue
Bethesda, MD
One W. Pennsylvania Ave.
Towson, MD
Massachusetts
801 Boylston Street
Boston, MA
155 Congress Street
Boston, MA
300 Granite Street
Braintree, MA
44 Mall Road
Burlington, MA
405 Cochituate Road
Framingham, MA
416 Belmont Street
Worcester, MA
Fidelity Brokerage Services, Inc., 100 Summer St., Boston, MA 02110 Member NYSE/SIPC
Annual Report
Michigan
280 Old N. Woodward Ave.
Birmingham, MI
43420 Grand River Avenue
Novi, MI
29155 Northwestern Hwy.
Southfield, MI
Minnesota
7600 France Avenue South
Edina, MN
Missouri
8885 Ladue Road
Ladue, MO
New Jersey
150 Essex Street
Millburn, NJ
56 South Street
Morristown, NJ
501 Route 17, South
Paramus, NJ
3518 Route 1 North
Princeton, NJ
New York
1055 Franklin Avenue
Garden City, NY
37 West Jericho Turnpike
Huntington Station, NY
1271 Avenue of the Americas
New York, NY
61 Broadway
New York, NY
350 Park Avenue
New York, NY
North Carolina
4611 Sharon Road
Charlotte, NC
Ohio
3805 Edwards Road
Cincinnati, OH
28699 Chagrin Boulevard
Woodmere Village, OH
Oregon
16850 SW 72nd Avenue
Tigard, OR
Pennsylvania
600 West DeKalb Pike
King of Prussia, PA
1735 Market Street
Philadelphia, PA
12001 Perry Highway
Wexford, PA
Rhode Island
47 Providence Place
Providence, RI
Tennessee
6150 Poplar Avenue
Memphis, TN
Texas
10000 Research Boulevard
Austin, TX
4017 Northwest Parkway
Dallas, TX
12532 Memorial Drive
Houston, TX
2701 Drexel Drive
Houston, TX
400 East Las Colinas Blvd.
Irving, TX
14100 San Pedro
San Antonio, TX
19740 IH 45 North
Spring, TX
6005 West Park Boulevard
Plano, TX 75093
Annual Report
Utah
215 South State Street
Salt Lake City, UT
Virginia
1861 International Drive
McLean, VA
Washington
411 108th Avenue, N.E.
Bellevue, WA
1518 6th Avenue
Seattle, WA
Washington, DC
1900 K Street, N.W.
Washington, DC
Wisconsin
595 North Barker Road
Brookfield, WI
Fidelity Brokerage Services, Inc., 100 Summer St., Boston, MA 02110 Member NYSE/SIPC
Annual Report
Annual Report
Annual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Far East) Inc.
Fidelity International Investment
Advisors
Fidelity International Investment
Advisors (U.K.) Limited
Fidelity Investments Japan Limited
Fidelity International Investment
Advisors
Fidelity International Investment
Advisors (U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Shareholder
Servicing Agent
Fidelity Service Company, Inc.
Boston, MA
Custodian
Mellon Bank
Pittsburgh, PA
Brown Brothers Harriman & Co.
Boston, MA
Global Balanced Fund
JPMorgan Chase Bank
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Fidelity's
Broadly Diversified International Equity
Funds
Fidelity® Global Balanced Fund
Fidelity International Growth & Income Fund
Fidelity Diversified International Fund
Fidelity Aggressive International Fund
Fidelity Overseas Fund
Fidelity Worldwide Fund
Annual Report
October 31, 2003
Global Balanced Fund | A-4 | Performance |
A-5 | Management's Discussion | |
A-6 | Investment Changes | |
A-7 | Investments | |
A-14 | Financial Statements | |
International Growth & Income Fund | A-16 | Performance |
A-17 | Management's Discussion | |
A-18 | Investment Changes | |
A-19 | Investments | |
A-24 | Financial Statements | |
Diversified International Fund | A-26 | Performance |
A-27 | Management's Discussion | |
A-28 | Investment Changes | |
A-29 | Investments | |
A-36 | Financial Statements | |
Aggressive International Fund | A-38 | Performance |
A-39 | Management's Discussion | |
A-40 | Investment Changes | |
A-41 | Investments | |
A-43 | Financial Statements | |
Overseas Fund | A-45 | Performance |
A-46 | Management's Discussion | |
A-47 | Investment Changes | |
A-48 | Investments | |
A-52 | Financial Statements | |
Worldwide Fund | A-54 | Performance |
A-55 | Management's Discussion | |
A-56 | Investment Changes | |
A-57 | Investments | |
A-63 | Financial Statements | |
Notes to Financial Statements | A-65 | Notes to the Financial Statements |
Auditors' Opinion | A-70 | |
Trustees and Officers | A-72 | |
Distributions | A-77 | |
Prospectus | P-1 |
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Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity a fund's total returns will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended | Past 1 | Past 5 | Past 10 |
Fidelity Global Balanced | 23.49% | 5.62% | 5.93% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® Global Balanced Fund on October 31, 1993. The chart shows how the value of your investment would have grown, and also shows how the Morgan Stanley Capital International World Index did over the same period.
Annual Report
Management's Discussion of Fund Performance
Comments from Rick Mace, Portfolio Manager of Fidelity® Global Balanced Fund
Mirroring the U.S. rally, most international stock markets rebounded sharply during the 12-month period ending October 31, 2003. Encouraged by improved corporate earnings, favorable interest rates and the easing of geopolitical tensions, the Morgan Stanley Capital InternationalSM Europe, Australasia, Far East (MSCI® EAFE®) Index - a proxy for stock markets outside the United States and Canada - gained 27.39% during the past year. From a regional perspective, all 16 countries in the MSCI Europe index - which gained 24.56% - had double-digit advances. Spain, Denmark and Sweden were among the region's best performers. In Japan, increased capital spending, exports and machinery orders helped the Tokyo Stock Exchange Stock Price Index (TOPIX) advance 36.39%. Following the SARS epidemic, other Asian markets also rebounded. For instance, the Hong Kong market, as measured by the Hang Seng Index, gained 34.51%. Emerging markets also fared well, particularly Latin America. The MSCI Emerging Markets Free-Latin America index rose 59.75%. Canadian equities, as measured by the S&P/TSX Composite Index, also posted an impressive annual gain, advancing 50.66%.
For the 12 months ending October 31, 2003, Fidelity Global Balanced Fund returned 23.49%, topping the LipperSM Global Flexible Portfolio Funds Average, which rose 22.14%, as well as the 20.31% return for the Fidelity Global Balanced Composite Index - a 60%/40% blend of the Morgan Stanley Capital International World Index and the Citigroup® World Government Bond Index. Increasing the fund's exposure to strong-performing European and Japanese bonds made a significant contribution to the fund's performance. In particular, positions in corporate bonds of U.K. cable provider Telewest rallied sharply as investors responded to improvements in the company's balance sheet. I also raised the fund's equity exposure relative to the MSCI World index, which worked out well. Several Japanese holdings - including brokerage Mitsubishi Securities and telecom services provider KDDI - were top performers. On the down side, overweighting relatively poor-performing Canadian energy stocks held back the fund's return, as did stock picking in the United States. Among equities, individual disappointments included an out-of-benchmark position in U.S. pharmaceutical company Schering-Plough and Dutch market maker Van der Moolen, both of which had double-digit declines.
The views expressed in this statement reflect those of the portfolio manager only through the end of the period of the report as stated on the cover and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Investment Changes
Geographic Diversification (% of fund's net assets) | |||
As of October 31, 2003 | |||
United States of America | 41.8% | ||
Japan | 22.2% | ||
United Kingdom | 12.2% | ||
Germany | 7.7% | ||
France | 3.2% | ||
Switzerland | 2.0% | ||
Italy | 1.7% | ||
Canada | 1.1% | ||
Netherlands | 1.1% | ||
Other | 7.0% |
Percentages are adjusted for the effect of futures contracts, if applicable. |
As of April 30, 2003 | |||
United States of America | 51.9% | ||
Japan | 13.3% | ||
United Kingdom | 9.8% | ||
Germany | 6.3% | ||
France | 4.6% | ||
Netherlands | 2.1% | ||
Multi-National | 1.9% | ||
Switzerland | 1.9% | ||
Spain | 1.2% | ||
Other | 7.0% |
Percentages are adjusted for the effect of futures contracts, if applicable. |
Asset Allocation | ||
% of fund's | % of fund's net assets | |
Stocks and Equity Futures | 64.6 | 69.2 |
Bonds | 27.1 | 30.1 |
Short-Term Investments | 8.3 | 0.7 |
Top Five Stocks as of October 31, 2003 | ||
% of fund's | % of fund's net assets | |
Microsoft Corp. (United | 0.9 | 1.0 |
Toyota Motor Corp. (Japan) | 0.9 | 0.5 |
General Electric Co. (United | 0.8 | 1.1 |
Intel Corp. (United | 0.8 | 0.3 |
Forest Laboratories, Inc. (United States of America) | 0.7 | 0.2 |
4.1 | ||
Top Five Bond Issuers as of October 31, 2003 | ||
(with maturities greater than one year) | % of fund's | % of fund's net assets |
Japan Government | 7.7 | 0.0 |
German Federal Republic | 4.0 | 1.4 |
U.S. Treasury Obligations | 3.7 | 16.5 |
Telewest PLC | 3.5 | 0.0 |
United Kingdom, Great Britain & Northern Ireland | 2.2 | 3.9 |
21.1 | ||
Market Sectors as of October 31, 2003 | ||
% of fund's | % of fund's net assets | |
Consumer Discretionary | 16.5 | 11.6 |
Financials | 15.5 | 17.0 |
Information Technology | 11.3 | 8.7 |
Telecommunication Services | 6.4 | 5.6 |
Health Care | 6.3 | 8.5 |
Industrials | 5.5 | 5.1 |
Consumer Staples | 3.4 | 5.8 |
Energy | 3.3 | 4.5 |
Materials | 2.5 | 2.4 |
Utilities | 0.7 | 1.0 |
Annual Report
Investments October 31, 2003
Showing Percentage of Net Assets
Common Stocks - 64.2% | |||
Shares | Value (Note 1) | ||
Australia - 0.6% | |||
News Corp. Ltd. | 13,832 | $ 123,278 | |
News Corp. Ltd. ADR | 4,900 | 174,685 | |
Promina Group Ltd. | 101,900 | 239,437 | |
QBE Insurance Group Ltd. | 14,904 | 108,648 | |
TOTAL AUSTRALIA | 646,048 | ||
Belgium - 0.2% | |||
Colruyt NV | 1,500 | 135,539 | |
Mobistar SA (a) | 3,000 | 150,135 | |
TOTAL BELGIUM | 285,674 | ||
Brazil - 0.0% | |||
Uniao de Bancos Brasileiros SA (Unibanco) GDR | 1,650 | 36,482 | |
Canada - 1.1% | |||
Alcan, Inc. | 700 | 27,926 | |
Biovail Corp. (a) | 11,600 | 279,069 | |
Bro-X Minerals Ltd. (a) | 600 | 0 | |
EnCana Corp. | 6,300 | 216,307 | |
Newmont Mining Corp. of Canada Ltd. (exchangeable shares) | 400 | 17,432 | |
Talisman Energy, Inc. | 15,670 | 765,257 | |
TOTAL CANADA | 1,305,991 | ||
Cayman Islands - 0.1% | |||
Garmin Ltd. | 2,000 | 100,060 | |
China - 0.5% | |||
Byd Co. Ltd. (H Shares) | 48,500 | 126,471 | |
China Petroleum & Chemical Corp. | 554,000 | 183,701 | |
PICC Property & Casualty Co. Ltd. | 86,000 | 20,136 | |
Sinopec Shanghai Petrochemical Co. Ltd. (H Shares) | 636,000 | 180,179 | |
Weiqiao Textile Co. Ltd. (H Shares) | 18,000 | 21,093 | |
TOTAL CHINA | 531,580 | ||
Denmark - 0.5% | |||
Coloplast AS Series B | 1,900 | 159,293 | |
Danske Bank AS | 7,400 | 148,759 | |
Novo Nordisk AS Series B | 4,450 | 159,496 | |
Novozymes AS Series B | 3,000 | 96,305 | |
TOTAL DENMARK | 563,853 | ||
Finland - 0.2% | |||
Nokia Corp. sponsored ADR | 12,600 | 214,074 | |
France - 1.4% | |||
Alcatel SA (RFD) (a) | 13,200 | 173,976 | |
AXA SA | 5,800 | 109,520 | |
AXA SA sponsored ADR | 4,800 | 91,200 | |
BNP Paribas SA | 5,100 | 267,046 | |
Business Objects SA (a) | 3,100 | 101,272 | |
France Telecom SA sponsored ADR | 4,500 | 109,080 | |
Shares | Value (Note 1) | ||
Pernod-Ricard | 1,425 | $ 137,016 | |
Renault SA | 1,950 | 128,536 | |
Total SA Series B | 1,823 | 284,643 | |
Vivendi Universal SA sponsored ADR (a) | 9,400 | 197,682 | |
TOTAL FRANCE | 1,599,971 | ||
Germany - 2.0% | |||
Allianz AG: | |||
(Reg.) | 700 | 74,783 | |
sponsored ADR | 14,200 | 153,218 | |
Altana AG | 440 | 27,632 | |
Altana AG sponsored ADR | 680 | 42,704 | |
BASF AG | 900 | 41,141 | |
Bayerische Motoren Werke AG (BMW) | 2,200 | 87,799 | |
Bijou Brigitte Modische Accessoires AG | 2,700 | 109,161 | |
DAB Bank AG (a) | 12,441 | 102,039 | |
Deutsche Bank AG | 1,900 | 124,450 | |
Deutsche Bank AG (NY Shares) | 700 | 45,850 | |
Deutsche Boerse AG | 8,933 | 494,862 | |
Deutsche Telekom AG (Reg.) (a) | 16,400 | 256,004 | |
Infineon Technologies AG | 2,700 | 39,690 | |
Metro AG | 4,500 | 183,394 | |
Muenchener Rueckversicherungs-Gesellschaft AG: | |||
rights 11/10/03 (a) | 400 | 3,295 | |
(Reg.) | 400 | 47,538 | |
Puma AG | 350 | 50,877 | |
SAP AG sponsored ADR | 2,800 | 102,312 | |
Siemens AG (Reg.) | 3,200 | 215,008 | |
Stada Arzneimittel AG | 1,561 | 80,634 | |
Zapf Creation AG (a) | 1,600 | 49,415 | |
TOTAL GERMANY | 2,331,806 | ||
Greece - 0.2% | |||
Greek Organization of Football Prognostics SA | 7,940 | 97,500 | |
Public Power Corp. of Greece | 7,900 | 169,674 | |
TOTAL GREECE | 267,174 | ||
Hong Kong - 0.6% | |||
ASM Pacific Technology Ltd. | 44,500 | 166,468 | |
Esprit Holdings Ltd. | 50,000 | 157,103 | |
Li & Fung Ltd. | 70,000 | 117,634 | |
SmarTone Telecommunications | 71,000 | 115,200 | |
Wing Hang Bank Ltd. | 24,500 | 151,122 | |
TOTAL HONG KONG | 707,527 | ||
Indonesia - 0.3% | |||
PT Bank Mandiri Persero Tbk | 2,500,000 | 279,528 | |
PT Bank Rakyat Indonesia (a)(f) | 671,500 | 69,154 | |
TOTAL INDONESIA | 348,682 | ||
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
Ireland - 0.4% | |||
Fyffes PLC (Ireland) | 72,000 | $ 130,117 | |
IAWS Group PLC (Ireland) | 15,100 | 160,932 | |
Independent News & Media PLC (Ireland) | 46,100 | 100,401 | |
Paddy Power PLC | 16,000 | 117,328 | |
TOTAL IRELAND | 508,778 | ||
Italy - 0.6% | |||
Banca di Roma Spa (a) | 35,200 | 97,947 | |
Banca Intesa Spa | 60,500 | 203,671 | |
Bulgari Spa | 14,200 | 128,458 | |
ENI Spa sponsored ADR | 2,000 | 159,000 | |
Riunione Adriatica di Sicurta Spa (RAS) | 4,500 | 70,068 | |
TOTAL ITALY | 659,144 | ||
Japan - 14.5% | |||
Bank of Yokohama Ltd. | 21,000 | 90,731 | |
Bridgestone Corp. | 16,000 | 209,569 | |
Canon, Inc. | 14,000 | 685,300 | |
D&M Holdings, Inc. (a) | 28,000 | 112,061 | |
Daikin Industries Ltd. | 7,000 | 149,309 | |
Daito Trust Construction Co. | 5,800 | 179,371 | |
Denso Corp. | 6,200 | 117,582 | |
Don Quijote Co. Ltd. | 4,300 | 231,153 | |
Dowa Mining Co. Ltd. | 24,000 | 129,671 | |
East Japan Railway Co. | 32 | 144,952 | |
Enplas Corp. | 2,900 | 96,280 | |
ESPEC Corp. | 13,000 | 130,071 | |
Fast Retailing Co. Ltd. | 5,100 | 309,878 | |
FCC Co. Ltd. | 3,400 | 111,024 | |
Fuji Photo Film Co. Ltd. | 7,000 | 206,294 | |
Fuji Television Network, Inc. | 34 | 180,917 | |
H.I.S. Co. Ltd. | 6,900 | 144,351 | |
Heiwa Corp. | 5,500 | 79,643 | |
Hitachi Chemical Co. Ltd. | 6,100 | 98,541 | |
Hoya Corp. | 2,300 | 208,159 | |
Ito Yokado Ltd. | 7,000 | 257,231 | |
Japan Medical Dynamic Marketing, Inc. | 6,100 | 86,001 | |
Japan Radio Co. Ltd. (a) | 29,000 | 140,331 | |
Japan Real Estate Investment Corp. | 22 | 128,670 | |
Japan Retail Fund Investment Corp. | 31 | 181,308 | |
Japan Tobacco, Inc. | 36 | 240,349 | |
KDDI Corp. | 119 | 646,198 | |
Keyence Corp. | 900 | 197,944 | |
Konica Minolta Holdings, Inc. | 41,500 | 545,457 | |
Kyocera Corp. | 2,700 | 162,580 | |
Kyorin Pharmaceutical Co. Ltd. | 7,000 | 105,376 | |
Matsushita Electric Industrial Co. Ltd. | 21,000 | 275,520 | |
Meitec Corp. | 2,200 | 78,643 | |
Millea Holdings, Inc. | 20 | 238,312 | |
Mitsubishi Rayon Co. Ltd. | 23,000 | 85,356 | |
Mitsubishi Securities Co. Ltd. | 20,000 | 227,397 | |
Shares | Value (Note 1) | ||
Mitsubishi Tokyo Financial | 44 | $ 322,960 | |
Mitsui & Co. Ltd. | 26,000 | 189,194 | |
Mitsui Fudosan Co. Ltd. | 15,000 | 139,576 | |
Mizuho Financial Group, Inc. (a) | 95 | 232,445 | |
Murata Manufacturing Co. Ltd. | 2,500 | 142,123 | |
NEC Electronics Corp. | 1,500 | 115,427 | |
Nichicon Corp. | 7,700 | 89,509 | |
Nichii Gakkan Co. | 1,430 | 77,782 | |
Nidec Copal Corp. | 5,300 | 88,703 | |
Nihon Trim Co. Ltd. | 2,400 | 121,594 | |
Nikon Corp. (a) | 21,000 | 318,801 | |
Nippon Telegraph & Telephone Corp. | 77 | 346,192 | |
Nissan Motor Co. Ltd. | 22,900 | 258,884 | |
Nissen Co. Ltd. | 5,700 | 106,544 | |
Nitto Denko Corp. | 3,700 | 194,188 | |
Nomura Holdings, Inc. | 26,000 | 446,498 | |
NS Solutions Corp. | 1,600 | 103,329 | |
NTN Corp. | 34,000 | 177,206 | |
ORIX Corp. | 2,100 | 176,687 | |
Pal Co. Ltd. | 2,600 | 117,064 | |
Ricoh Co. Ltd. | 7,000 | 132,754 | |
Rohm Co. Ltd. | 2,200 | 296,562 | |
Salomon & Taylor Made Co. Ltd. | 11,000 | 83,846 | |
Sanken Electric Co. Ltd. | 10,000 | 110,879 | |
Shin-Etsu Chemical Co. Ltd. | 9,500 | 353,420 | |
Shinko Electric Industries Co.Ltd. | 3,900 | 95,780 | |
Skylark Co. Ltd. | 6,700 | 110,367 | |
SMC Corp. | 1,500 | 180,508 | |
Sumisho Lease Co. Ltd. | 6,300 | 193,687 | |
Sumitomo Chemical Co. Ltd. | 46,000 | 171,548 | |
Sumitomo Corp. | 24,000 | 166,564 | |
Sumitomo Electric Industries Ltd. | 12,000 | 103,147 | |
Sumitomo Mitsui Financial Group, Inc. | 92 | 462,761 | |
Takeda Chemical Industries Ltd. | 8,600 | 304,293 | |
Tokyo Electric Power Co. | 14,300 | 305,016 | |
Tokyo Electron Ltd. | 4,000 | 286,702 | |
Toshiba Corp. | 41,000 | 164,462 | |
Toyoda Gosei Co. Ltd. | 6,900 | 203,975 | |
Toyota Motor Corp. | 35,500 | 1,029,855 | |
UFJ Holdings, Inc. (a) | 82 | 350,555 | |
UMC Japan (a) | 78 | 106,422 | |
Uniden Corp. | 9,000 | 171,093 | |
USS Co. Ltd. | 1,290 | 91,640 | |
Yamada Denki Co. Ltd. | 2,600 | 82,772 | |
Yamanouchi Pharmaceutical Co. Ltd. | 4,200 | 105,439 | |
Yokogawa Electric Corp. | 12,000 | 140,258 | |
York-Benimaru Co. Ltd. | 3,300 | 79,543 | |
TOTAL JAPAN | 16,860,084 | ||
Korea (South) - 0.5% | |||
Honam Petrochemical Corp. | 3,900 | 156,198 | |
Samsung Electronics Co. Ltd. | 440 | 174,736 | |
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
Korea (South) - continued | |||
Samsung Fire & Marine | 2,000 | $ 114,237 | |
Shinsegae Co. Ltd. | 700 | 140,473 | |
TOTAL KOREA (SOUTH) | 585,644 | ||
Netherlands - 1.1% | |||
ASM International NV (Nasdaq) (a) | 5,700 | 99,807 | |
ASML Holding NV (NY Shares) (a) | 16,450 | 288,698 | |
Euronext NV | 4,775 | 116,440 | |
ING Groep NV (Certificaten | 5,400 | 112,536 | |
Koninklijke KPN NV (a) | 12,100 | 91,673 | |
Koninklijke Philips Electronics NV | 3,800 | 101,992 | |
Koninklijke Philips Electronics NV | 4,600 | 123,464 | |
Unilever NV (NY Shares) | 1,610 | 94,427 | |
Vedior NV (Certificaten Van Aandelen) | 9,300 | 133,592 | |
VNU NV | 3,700 | 112,300 | |
TOTAL NETHERLANDS | 1,274,929 | ||
Norway - 0.1% | |||
TANDBERG Television ASA (a) | 30,000 | 112,239 | |
Russia - 0.2% | |||
Mobile TeleSystems OJSC | 1,500 | 116,235 | |
YUKOS Corp. sponsored ADR | 2,663 | 123,031 | |
TOTAL RUSSIA | 239,266 | ||
Singapore - 0.1% | |||
Singapore Exchange Ltd. | 111,400 | 106,309 | |
Spain - 0.8% | |||
Actividades de Construccion y | 2,000 | 83,918 | |
Altadis SA (Spain) | 3,400 | 82,162 | |
Banco Popular Espanol SA (Reg.) | 1,600 | 82,908 | |
Banco Santander Central Hispano SA | 8,700 | 83,148 | |
Compania de Distribucion Integral Logista SA | 3,900 | 104,591 | |
Corporacion Mapfre SA (Reg.) | 7,223 | 89,699 | |
Repsol YPF SA | 6,300 | 109,431 | |
Telefonica SA sponsored ADR | 6,400 | 239,360 | |
TOTAL SPAIN | 875,217 | ||
Sweden - 0.9% | |||
Eniro AB | 14,900 | 118,891 | |
Hennes & Mauritz AB (H&M) (B Shares) | 2,950 | 62,331 | |
Modern Times Group AB (MTG) | 5,700 | 106,609 | |
OMHEX AB | 19,500 | 199,162 | |
Svenska Handelsbanken AB (A Shares) | 3,100 | 54,419 | |
Tele2 AB (B Shares) (a) | 4,050 | 202,945 | |
Telefonaktiebolaget LM Ericsson ADR (a) | 17,400 | 297,192 | |
TOTAL SWEDEN | 1,041,549 | ||
Shares | Value (Note 1) | ||
Switzerland - 2.0% | |||
Actelion Ltd. (Reg.) (a) | 1,300 | $ 123,154 | |
Compagnie Financiere Richemont unit | 9,740 | 218,325 | |
Credit Suisse Group sponsored ADR | 10,700 | 377,496 | |
INFICON Holding AG (a) | 1,440 | 107,415 | |
Micronas Semiconductor Holding AG | 2,440 | 101,014 | |
Nobel Biocare Holding AG (Switzerland) | 660 | 58,340 | |
Novartis AG (Reg.) | 12,620 | 484,229 | |
Roche Holding AG | 4,300 | 354,431 | |
Saurer AG (Reg.) | 1,080 | 45,920 | |
Swiss Reinsurance Co. (Reg.) | 1,220 | 76,489 | |
UBS AG (NY Shares) | 4,600 | 282,164 | |
Zurich Financial Services AG | 680 | 86,737 | |
TOTAL SWITZERLAND | 2,315,714 | ||
Taiwan - 0.5% | |||
Ambit Microsystems Corp. | 41,800 | 114,571 | |
Chinatrust Financial Holding Co. | 118,770 | 123,566 | |
Hon Hai Precision Industries Co. Ltd. | 32,400 | 145,146 | |
Taiwan Semiconductor Manufacturing Co. Ltd. (a) | 86,378 | 170,567 | |
TOTAL TAIWAN | 553,850 | ||
Thailand - 0.2% | |||
Land & House PCL (For. Reg.) | 577,000 | 194,981 | |
Turkey - 0.1% | |||
Turkcell Iletisim Hizmet AS | 4,700 | 89,300 | |
United Kingdom - 6.1% | |||
3i Group PLC | 16,200 | 170,186 | |
Alliance & Leicester PLC | 8,000 | 120,235 | |
Anglo American PLC (United Kingdom) | 1,700 | 34,739 | |
AstraZeneca PLC (United Kingdom) | 7,400 | 352,832 | |
Aviva PLC | 9,500 | 77,828 | |
BP PLC sponsored ADR | 6,600 | 279,708 | |
British Sky Broadcasting Group PLC (BSkyB) sponsored ADR (a) | 2,750 | 121,550 | |
Caffe Nero Group PLC (a) | 106,600 | 76,765 | |
Corin Group PLC | 32,200 | 112,666 | |
Domino's Pizza UK & IRL PLC | 27,328 | 79,412 | |
Enterprise Inns PLC | 6,700 | 95,985 | |
French Connection Group PLC | 4,500 | 150,399 | |
Galen Holdings PLC sponsored ADR | 1,900 | 96,235 | |
Games Workshop Group PLC | 6,400 | 75,367 | |
GlaxoSmithKline PLC | 8,150 | 176,407 | |
Hilton Group PLC | 34,000 | 111,763 | |
HSBC Holdings PLC: | |||
(Hong Kong) (Reg.) | 8,424 | 126,478 | |
(United Kingdom) (Reg.) | 43,200 | 648,605 | |
sponsored ADR | 49 | 3,678 | |
Icap PLC | 3,200 | 75,014 | |
Intercontinental Hotels Group PLC ADR | 14,700 | 135,534 | |
Intermediate Capital Group PLC | 6,600 | 115,073 | |
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
United Kingdom - continued | |||
Intertek Group PLC | 9,900 | $ 86,137 | |
Inventive Leisure PLC | 24,613 | 55,258 | |
ITE Group PLC | 61,400 | 54,359 | |
Kesa Electricals PLC | 24,200 | 100,051 | |
Lastminute.com PLC (a) | 20,300 | 101,985 | |
Lloyds TSB Group PLC | 16,200 | 112,336 | |
London Stock Exchange PLC | 14,100 | 91,383 | |
Man Group PLC | 7,600 | 186,594 | |
Next PLC | 6,600 | 131,960 | |
Peacock Group PLC | 24,900 | 100,624 | |
Pearson PLC | 8,600 | 88,888 | |
Prudential PLC | 16,100 | 124,737 | |
Reckitt Benckiser PLC | 4,800 | 100,851 | |
Rio Tinto PLC sponsored ADR | 900 | 89,145 | |
Royal Bank of Scotland Group PLC | 11,972 | 320,306 | |
Schroder Venture International | 12,700 | 104,151 | |
Schroders PLC | 10,300 | 130,805 | |
Shell Transport & Trading Co. PLC (Reg.) | 56,700 | 360,612 | |
Shire Pharmaceuticals Group PLC (a) | 10,400 | 79,387 | |
Signet Group PLC | 52,000 | 91,193 | |
Standard Chartered PLC | 7,800 | 124,564 | |
Tesco PLC | 34,900 | 139,705 | |
Trinity Mirror PLC | 13,700 | 125,584 | |
Unilever PLC | 13,500 | 115,425 | |
Vodafone Group PLC sponsored ADR | 25,800 | 545,670 | |
William Hill PLC | 16,200 | 93,053 | |
WPP Group PLC | 18,000 | 171,253 | |
TOTAL UNITED KINGDOM | 7,062,475 | ||
United States of America - 28.4% | |||
3M Co. | 3,300 | 260,271 | |
Accredo Health, Inc. (a) | 2,300 | 73,508 | |
Adobe Systems, Inc. | 3,800 | 166,592 | |
AFLAC, Inc. | 5,100 | 186,048 | |
Agere Systems, Inc.: | |||
Class A (a) | 287 | 999 | |
Class B (a) | 463 | 1,570 | |
Agilent Technologies, Inc. (a) | 4,100 | 102,172 | |
Allegheny Energy, Inc. (a) | 8,400 | 88,872 | |
Allergan, Inc. | 1,200 | 90,744 | |
AMBAC Financial Group, Inc. | 1,000 | 70,740 | |
American Eagle Outfitters, Inc. (a) | 50 | 800 | |
American Express Co. | 11,000 | 516,230 | |
American International Group, Inc. | 11,887 | 723,086 | |
American Standard Companies, Inc. (a) | 1,500 | 143,550 | |
Amphenol Corp. Class A (a) | 1,200 | 70,500 | |
Analog Devices, Inc. (a) | 3,300 | 146,289 | |
Anthem, Inc. (a) | 43 | 2,942 | |
Apache Corp. | 2,740 | 191,033 | |
Apple Computer, Inc. (a) | 5,400 | 123,606 | |
Applied Materials, Inc. (a) | 8,000 | 186,960 | |
At Road, Inc. (a) | 6,500 | 83,850 | |
Shares | Value (Note 1) | ||
AT&T Corp. | 160 | $ 2,974 | |
AutoZone, Inc. (a) | 1,100 | 105,710 | |
Avon Products, Inc. | 8,900 | 604,844 | |
Baker Hughes, Inc. | 2,400 | 67,824 | |
Bank of New York Co., Inc. | 6,900 | 215,211 | |
BEA Systems, Inc. (a) | 6,900 | 95,910 | |
Bear Stearns Companies, Inc. | 2,200 | 167,750 | |
BellSouth Corp. | 13,100 | 344,661 | |
Best Buy Co., Inc. | 4,100 | 239,071 | |
Biomet, Inc. | 7,200 | 258,192 | |
BJ Services Co. (a) | 2,700 | 88,587 | |
Bowater, Inc. | 2,400 | 97,992 | |
Burlington Resources, Inc. | 1,100 | 53,504 | |
C.R. Bard, Inc. | 1,200 | 96,060 | |
Caterpillar, Inc. | 1,800 | 131,904 | |
CDI Corp. | 5,800 | 189,950 | |
Central Garden & Pet Co. Class A (a) | 2,900 | 80,214 | |
Ceridian Corp. (a) | 4,800 | 100,800 | |
Champion Enterprises, Inc. (a) | 17,100 | 121,410 | |
Charles River Laboratories | 3,100 | 99,944 | |
Charles Schwab Corp. | 6,400 | 86,784 | |
ChevronTexaco Corp. | 3,300 | 245,190 | |
Cintas Corp. | 3,900 | 166,374 | |
Cisco Systems, Inc. (a) | 25,000 | 524,500 | |
Citigroup, Inc. | 14,168 | 671,563 | |
Citizens Communications Co. (a) | 6,400 | 79,680 | |
Clear Channel Communications, Inc. | 96 | 3,919 | |
Colgate-Palmolive Co. | 2,900 | 154,251 | |
Comcast Corp. Class A (a) | 75 | 2,544 | |
Comverse Technology, Inc. (a) | 100 | 1,804 | |
Concord EFS, Inc. (a) | 100 | 1,069 | |
ConocoPhillips | 23 | 1,314 | |
CVS Corp. | 3,900 | 137,202 | |
Danaher Corp. | 1,700 | 140,845 | |
Dean Foods Co. (a) | 2,700 | 81,675 | |
Deere & Co. | 1,800 | 109,116 | |
Dell, Inc. (a) | 14,300 | 516,516 | |
Delta Air Lines, Inc. | 100 | 1,302 | |
Dow Chemical Co. | 10,900 | 410,821 | |
E.W. Scripps Co. Class A | 2,300 | 213,693 | |
Eaton Corp. | 1,100 | 110,264 | |
ENSCO International, Inc. | 2,600 | 68,510 | |
Exact Sciences Corp. (a) | 5,100 | 54,162 | |
Fifth Third Bancorp | 2,900 | 168,084 | |
First Data Corp. | 4,100 | 146,370 | |
Florida Rock Industries, Inc. | 1,200 | 68,700 | |
Fluor Corp. | 3,200 | 118,656 | |
Forest Laboratories, Inc. (a) | 17,200 | 860,172 | |
Fox Entertainment Group, Inc. Class A (a) | 14,100 | 390,570 | |
Gap, Inc. | 9,400 | 179,352 | |
Genentech, Inc. (a) | 8,000 | 655,760 | |
General Electric Co. | 32,400 | 939,924 | |
General Motors Corp. Class H (a) | 13,600 | 223,448 | |
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
United States of America - continued | |||
Goldman Sachs Group, Inc. | 3,800 | $ 356,820 | |
Grant Prideco, Inc. (a) | 500 | 5,670 | |
Hewlett-Packard Co. | 15,000 | 334,650 | |
Home Depot, Inc. | 11,850 | 439,280 | |
Ingersoll-Rand Co. Ltd. Class A | 2,500 | 151,000 | |
Intel Corp. | 27,300 | 902,265 | |
InterActiveCorp (a) | 2,700 | 99,117 | |
International Paper Co. | 2,000 | 78,700 | |
Intersil Corp. Class A | 4,100 | 105,739 | |
KLA-Tencor Corp. (a) | 1,600 | 91,728 | |
Kohl's Corp. (a) | 2,900 | 162,603 | |
Labor Ready, Inc. (a) | 200 | 2,174 | |
Lehman Brothers Holdings, Inc. | 1,600 | 115,200 | |
Liberty Media Corp. Class A (a) | 12,648 | 127,618 | |
Lockheed Martin Corp. | 5,400 | 250,344 | |
Lowe's Companies, Inc. | 1,900 | 111,967 | |
Lucent Technologies, Inc. (a) | 500 | 1,600 | |
Lyondell Chemical Co. | 10,800 | 154,440 | |
ManTech International Corp. Class A (a) | 5,600 | 136,976 | |
MBIA, Inc. | 2,450 | 146,045 | |
MBNA Corp. | 8,000 | 198,000 | |
McCormick & Co., Inc. (non-vtg.) | 2,600 | 77,064 | |
McDonald's Corp. | 27,000 | 675,270 | |
Medco Health Solutions, Inc. (a) | 13 | 432 | |
Merck & Co., Inc. | 5,100 | 225,675 | |
Merrill Lynch & Co., Inc. | 8,900 | 526,880 | |
Micron Technology, Inc. (a) | 100 | 1,434 | |
Microsoft Corp. | 40,200 | 1,051,230 | |
Millennium Chemicals, Inc. | 11,800 | 118,236 | |
Monsanto Co. | 170 | 4,259 | |
Morgan Stanley | 13,000 | 713,310 | |
Motorola, Inc. | 7,700 | 104,181 | |
Nabors Industries Ltd. (a) | 1,500 | 56,700 | |
National Semiconductor Corp. (a) | 1,700 | 69,071 | |
National-Oilwell, Inc. (a) | 100 | 1,907 | |
Network Associates, Inc. (a) | 100 | 1,393 | |
Newell Rubbermaid, Inc. | 4,100 | 93,480 | |
NIKE, Inc. Class B | 3,500 | 223,650 | |
Nordstrom, Inc. | 7,400 | 225,626 | |
Northrop Grumman Corp. | 1,100 | 98,340 | |
NTL, Inc. (a) | 6,300 | 388,899 | |
NVIDIA Corp. (a) | 3,000 | 53,040 | |
Occidental Petroleum Corp. | 10,000 | 352,600 | |
Oracle Corp. (a) | 100 | 1,196 | |
Parker Hannifin Corp. | 4,000 | 203,880 | |
Patterson-UTI Energy, Inc. (a) | 1,600 | 45,744 | |
Paychex, Inc. | 5,300 | 206,276 | |
PepsiCo, Inc. | 90 | 4,304 | |
PETsMART, Inc. | 2,100 | 53,781 | |
Pfizer, Inc. | 65 | 2,054 | |
PPG Industries, Inc. | 1,600 | 92,240 | |
Praxair, Inc. | 1,250 | 86,975 | |
Shares | Value (Note 1) | ||
Pride International, Inc. (a) | 4,600 | $ 75,348 | |
PrivateBancorp, Inc. | 3,300 | 133,650 | |
Procter & Gamble Co. | 5,600 | 550,424 | |
Qwest Communications | 10,000 | 35,300 | |
Radio One, Inc. Class A (a) | 100 | 1,603 | |
Reebok International Ltd. | 4,600 | 179,170 | |
Robert Half International, Inc. (a) | 16,200 | 382,482 | |
Rowan Companies, Inc. (a) | 3,300 | 79,035 | |
SBC Communications, Inc. | 25,800 | 618,684 | |
Schering-Plough Corp. | 100 | 1,527 | |
ShopKo Stores, Inc. (a) | 9,000 | 139,320 | |
Siliconix, Inc. (a) | 1,900 | 96,444 | |
SLM Corp. | 5,900 | 231,044 | |
Southern Co. | 5,100 | 151,980 | |
Southwest Airlines Co. | 50 | 970 | |
Sovereign Bancorp, Inc. | 19,500 | 405,795 | |
SpectraSite, Inc. (a) | 2,800 | 108,500 | |
Staples, Inc. (a) | 5,620 | 150,728 | |
Sun Microsystems, Inc. (a) | 300 | 1,188 | |
SunTrust Banks, Inc. | 4,800 | 321,936 | |
Synthes-Stratec, Inc. | 245 | 224,056 | |
Sysco Corp. | 5,100 | 171,666 | |
T. Rowe Price Group, Inc. | 1,500 | 61,725 | |
Take-Two Interactive Software, Inc. (a) | 100 | 3,955 | |
Texas Instruments, Inc. | 7,300 | 211,116 | |
The Coca-Cola Co. | 5,300 | 245,920 | |
The J.M. Smucker Co. | 60 | 2,626 | |
Time Warner, Inc. (a) | 24,100 | 368,489 | |
Titan Corp. (a) | 8,300 | 175,296 | |
Travelers Property Casualty Corp.: | |||
Class A | 20 | 326 | |
Class B | 75 | 1,228 | |
Tuesday Morning Corp. (a) | 4,300 | 137,127 | |
TXU Corp. | 3,100 | 70,742 | |
Tyco International Ltd. | 29,800 | 622,224 | |
UICI (a) | 100 | 1,496 | |
United Parcel Service, Inc. Class B | 5,700 | 413,364 | |
UnitedHealth Group, Inc. | 4,200 | 213,696 | |
Vastera, Inc. (a) | 900 | 3,330 | |
Verizon Communications, Inc. | 12,300 | 413,280 | |
Viacom, Inc.: | |||
Class A | 4,100 | 163,344 | |
Class B (non-vtg.) | 10,241 | 408,309 | |
Wachovia Corp. | 21 | 963 | |
Weatherford International Ltd. (a) | 1,600 | 55,600 | |
Wendy's International, Inc. | 5,000 | 185,250 | |
Williams-Sonoma, Inc. (a) | 6,300 | 222,579 | |
Wyeth | 13,200 | 582,648 | |
Xerox Corp. (a) | 5,600 | 58,800 | |
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
United States of America - continued | |||
Yahoo!, Inc. (a) | 4,200 | $ 183,540 | |
Zimmer Holdings, Inc. (a) | 6,100 | 389,241 | |
TOTAL UNITED STATES OF AMERICA | 32,915,135 | ||
TOTAL COMMON STOCKS (Cost $61,619,948) | 74,333,536 | ||
Nonconvertible Preferred Stocks - 0.4% | |||
Germany - 0.2% | |||
Fresenius Medical Care AG | 3,500 | 143,127 | |
Porsche AG (non-vtg.) | 200 | 97,894 | |
TOTAL GERMANY | 241,021 | ||
Italy - 0.2% | |||
Telecom Italia Spa (Risp) (a) | 102,327 | 176,863 | |
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $360,463) | 417,884 |
Nonconvertible Bonds - 6.8% | ||||
Principal Amount (d) | ||||
Germany - 1.5% | ||||
Kreditanstalt Fuer Wiederaufbau 3.5% 11/15/05 | EUR | 1,450,000 | 1,699,070 | |
United Kingdom - 3.9% | ||||
Telewest Communications PLC yankee: | ||||
0% 4/15/09 (c)(e) | 235,000 | 103,988 | ||
0% 2/1/10 (c)(e) | 45,000 | 18,113 | ||
9.875% 2/1/10 (c) | 570,000 | 293,550 | ||
11.25% 11/1/08 (c) | 205,000 | 110,188 | ||
Telewest PLC: | ||||
11% 10/1/07 (c) | 4,305,000 | 2,324,700 | ||
yankee 9.625% 10/1/06 (c) | 3,195,000 | 1,693,350 | ||
TOTAL UNITED KINGDOM | 4,543,889 | |||
United States of America - 1.4% | ||||
NTL, Inc. 19% 1/1/10 | 1,705,717 | 1,663,074 | ||
TOTAL NONCONVERTIBLE BONDS (Cost $6,585,399) | 7,906,033 | |||
Government Obligations - 20.3% | ||||
France - 1.8% | ||||
French Government 4% 1/12/04 | EUR | 1,800,000 | 2,092,049 | |
Germany - 4.0% | ||||
German Federal Republic: | ||||
4.5% 8/18/06 | EUR | 2,125,000 | 2,558,057 | |
5% 2/17/06 | EUR | 1,710,000 | 2,074,054 | |
TOTAL GERMANY | 4,632,111 | |||
Principal Amount (d) | Value (Note 1) | |||
Italy - 0.9% | ||||
Italian Republic 4.75% 7/1/05 | EUR | 850,000 | $ 1,018,467 | |
Japan - 7.7% | ||||
Japan Government: | ||||
0.1% 8/20/05 | JPY | 466,000,000 | 4,239,015 | |
3% 9/20/05 | JPY | 495,000,000 | 4,745,039 | |
TOTAL JAPAN | 8,984,054 | |||
United Kingdom - 2.2% | ||||
United Kingdom, Great Britain & Northern Ireland 8.5% 12/7/05 | GBP | 1,375,000 | 2,508,892 | |
United States of America - 3.7% | ||||
U.S. Treasury Notes: | ||||
2% 11/30/04 | 3,125,000 | 3,148,438 | ||
2% 5/15/06 | 1,200,000 | 1,197,094 | ||
TOTAL UNITED STATES OF AMERICA | 4,345,532 | |||
TOTAL GOVERNMENT OBLIGATIONS (Cost $21,839,443) | 23,581,105 |
Money Market Funds - 5.9% | |||
Shares | |||
Fidelity Cash Central Fund, 1.07% (b) | 6,808,639 | 6,808,639 | |
Fidelity Securities Lending Cash | 57,750 | 57,750 | |
TOTAL MONEY MARKET FUNDS (Cost $6,866,389) | 6,866,389 |
TOTAL INVESTMENT PORTFOLIO - 97.6% (Cost $97,271,642) | 113,104,947 |
NET OTHER ASSETS - 2.4% | 2,759,018 | ||
NET ASSETS - 100% | $ 115,863,965 |
Currency Abbreviations | ||
EUR | - | European Monetary Unit |
GBP | - | British pound |
JPY | - | Japanese yen |
Legend |
(a) Non-income producing |
(b) The rate quoted is the annualized seven-day yield of the fund at period end. A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request. |
(c) Non-income producing - issuer filed for bankruptcy or is in default of interest payments. |
(d) Principal amount is stated in United States dollars unless otherwise noted. |
(e) Debt obligation initially issued in zero coupon form which converts to coupon form at a specified rate and date. The rate shown is the rate at period end. |
(f) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
Other Information |
The composition of credit quality ratings as a percentage of net assets is as follows (ratings are unaudited): |
U.S.Government and U.S.Government Agency Obligations | 3.7% |
AAA,AA,A | 18.1% |
BBB | 0.0% |
BB | 0.0% |
B | 0.0% |
CCC,CC,C | 3.9% |
Not Rated | 1.4% |
Equities | 64.6% |
Short-Term Investments and Net Other Assets | 8.3% |
We have used ratings from Moody's Investors Services, Inc. Where Moody's ratings are not available, we have used S&P ratings. Percentages are adjusted for the effect of futures contracts, if applicable. |
Purchases and sales of securities, other than short-term securities, aggregated $106,540,742 and $101,012,021, respectively, of which long-term U.S. government and government agency obligations aggregated $7,608,951 and $11,409,205, respectively. |
The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $5,110 for the period. |
Income Tax Information |
At October 31, 2003, the fund had a capital loss carryforward of approximately $7,285,000 of which $390,000 and $6,895,000 will expire on October 31, 2009 and 2010, respectively. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements
Statement of Assets and Liabilities
October 31, 2003 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $57,000) (cost $97,271,642) - See accompanying schedule | $ 113,104,947 | |
Cash | 77,225 | |
Foreign currency held at value (cost $ 1,172,876) | 1,196,962 | |
Receivable for investments sold | 1,923,364 | |
Receivable for fund shares sold | 824,690 | |
Dividends receivable | 143,731 | |
Interest receivable | 369,329 | |
Prepaid expenses | 519 | |
Other receivables | 113 | |
Total assets | 117,640,880 | |
Liabilities | ||
Payable for investments purchased | $ 1,473,065 | |
Delayed delivery | 69,845 | |
Payable for fund shares redeemed | 21,962 | |
Accrued management fee | 68,467 | |
Other payables and accrued expenses | 85,826 | |
Collateral on securities loaned, at value | 57,750 | |
Total liabilities | 1,776,915 | |
Net Assets | $ 115,863,965 | |
Net Assets consist of: | ||
Paid in capital | $ 105,703,151 | |
Undistributed net investment income | 1,850,467 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (7,563,665) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 15,874,012 | |
Net Assets, for 6,414,370 shares outstanding | $ 115,863,965 | |
Net Asset Value, offering price and redemption price per share ($115,863,965 ÷ 6,414,370 shares) | $ 18.06 |
Statement of Operations
Year ended October 31, 2003 | ||
Investment Income | ||
Dividends | $ 1,099,004 | |
Interest | 1,106,890 | |
Security lending | 4,600 | |
2,210,494 | ||
Less foreign taxes withheld | (73,822) | |
Total income | 2,136,672 | |
Expenses | ||
Management fee | $ 693,384 | |
Transfer agent fees | 276,262 | |
Accounting and security lending fees | 61,843 | |
Non-interested trustees' compensation | 378 | |
Custodian fees and expenses | 110,430 | |
Registration fees | 16,634 | |
Audit | 65,914 | |
Legal | 368 | |
Miscellaneous | 772 | |
Total expenses before reductions | 1,225,985 | |
Expense reductions | (14,918) | 1,211,067 |
Net investment income (loss) | 925,605 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities | 2,842,578 | |
Foreign currency transactions | (155,169) | |
Futures contracts | 493,079 | |
Total net realized gain (loss) | 3,180,488 | |
Change in net unrealized appreciation (depreciation) on: Investment securities | 16,729,165 | |
Assets and liabilities in foreign currencies | 28,967 | |
Futures contracts | (144,477) | |
Total change in net unrealized appreciation (depreciation) | 16,613,655 | |
Net gain (loss) | 19,794,143 | |
Net increase (decrease) in net assets resulting from operations | $ 20,719,748 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Global Balanced
Financial Statements - continued
Statement of Changes in Net Assets
Year ended | Year ended | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $ 925,605 | $ 984,994 |
Net realized gain (loss) | 3,180,488 | (6,463,440) |
Change in net unrealized appreciation (depreciation) | 16,613,655 | 2,239,240 |
Net increase (decrease) in net assets resulting from operations | 20,719,748 | (3,239,206) |
Distributions to shareholders from net investment income | (1,305,719) | (173,044) |
Share transactions | 25,393,629 | 21,822,549 |
Reinvestment of distributions | 1,224,318 | 162,113 |
Cost of shares redeemed | (18,441,176) | (19,127,519) |
Net increase (decrease) in net assets resulting from share transactions | 8,176,771 | 2,857,143 |
Redemption fees | 9,980 | 9,266 |
Total increase (decrease) in net assets | 27,600,780 | (545,841) |
Net Assets | ||
Beginning of period | 88,263,185 | 88,809,026 |
End of period (including undistributed net investment income of $1,850,467 and undistributed net investment income of $1,191,421, respectively) | $ 115,863,965 | $ 88,263,185 |
Other Information | ||
Shares | ||
Sold | 1,574,668 | 1,385,526 |
Issued in reinvestment of distributions | 82,114 | 10,113 |
Redeemed | (1,190,847) | (1,229,128) |
Net increase (decrease) | 465,935 | 166,511 |
Financial Highlights
Years ended October 31, | 2003 | 2002 | 2001 | 2000 | 1999 I | 1999 J |
Selected Per-Share Data | ||||||
Net asset value, beginning of period | $ 14.84 | $ 15.36 | $ 19.10 | $ 18.67 | $ 18.02 | $ 16.62 |
Income from Investment Operations | ||||||
Net investment income (loss) D | .15 | .17 G | .28 | .36E | .08 | .31 |
Net realized and unrealized gain (loss) | 3.29 | (.66) G | (2.46) | .47 | .74 | 1.37 |
Total from investment operations | 3.44 | (.49) | (2.18) | .83 | .82 | 1.68 |
Distributions from net investment income | (.22) | (.03) | (.32) | (.15) | (.17) | (.28) |
Distributions from net realized gain | - | - | (1.24) | (.25) | - | - |
Total distributions | (.22) | (.03) | (1.56) | (.40) | (.17) | (.28) |
Redemption fees added to paid in capital D | - H | - H | -H | -H | - | - |
Net asset value, end of period | $ 18.06 | $ 14.84 | $ 15.36 | $ 19.10 | $ 18.67 | $ 18.02 |
Total Return B,C | 23.49% | (3.20)% | (12.36)% | 4.45% | 4.57% | 10.39% |
Ratios to Average Net Assets F | ||||||
Expenses before expense reductions | 1.29% | 1.29% | 1.29% | 1.26% | 1.20%A | 1.32% |
Expenses net of voluntary waivers, if any | 1.29% | 1.29% | 1.29% | 1.26% | 1.20%A | 1.32% |
Expenses net of all reductions | 1.28% | 1.27% | 1.27% | 1.25% | 1.19%A | 1.30% |
Net investment income (loss) | .98% | 1.07% G | 1.69% | 1.81% | 1.74%A | 1.83% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $ 115,864 | $ 88,263 | $ 88,809 | $ 104,820 | $ 97,468 | $ 101,756 |
Portfolio turnover rate | 113% | 126% | 102% | 62% | 80%A | 100% |
AAnnualized BTotal returns for periods of less than one year are not annualized. CTotal returns would have been lower had certain expenses not been reduced during the periods shown. DCalculated based on average shares outstanding during the period. EInvestment income per share reflects a special dividend which amounted to $.04 per share. FExpense ratios reflect operating expenses of the fund. 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 fund during periods when reimbursements or reductions occur. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the fund. GEffective November 1, 2001, the fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premium and discount on all debt securities. Per share data and ratios for periods prior to adoption have not been restated to reflect this change. HAmount represents less than $.01 per-share. IThree months ended October 31, JYear ended July 31,
See accompanying notes which are an integral part of the financial statements.
Annual Report
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity a fund's total returns will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended | Past 1 | Past 5 | Past 10 |
Fidelity Intl Growth & Income | 31.97% | 7.00% | 6.61% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity International Growth & Income Fund on October 31, 1993. The chart shows how the value of your investment would have grown, and also shows how the Morgan Stanley Capital International EAFE Index did over the same period.
Annual Report
Management's Discussion of Fund Performance
Comments from Penny Dobkin, Portfolio Manager of Fidelity International Growth & Income Fund
Mirroring the U.S. rally, most international stock markets rebounded sharply during the 12-month period ending October 31, 2003. Encouraged
by improved corporate earnings, favorable interest rates and the easing of geopolitical tensions, the Morgan Stanley Capital International Europe, Australasia, Far East (MSCI EAFE) Index - a proxy for stock markets outside the United States and Canada - gained 27.39% during the past year. From a regional perspective, all 16 countries in the MSCI Europe index - which gained 24.56% - had double-digit advances. Spain, Denmark and Sweden were among the region's best performers. In Japan, increased capital spending, exports and machinery orders helped the Tokyo Stock Exchange Stock Price Index (TOPIX) advance 36.39%. Following the SARS epidemic, other Asian markets also rebounded. For instance, the Hong Kong market, as measured by the Hang Seng Index, gained 34.51%. Emerging markets also fared well, particularly Latin America. The MSCI Emerging Markets Free-Latin America index rose 59.75%. Canadian equities, as measured by the S&P/TSX Composite Index, also posted an impressive annual gain, advancing 50.66%.
For the 12 months ending October 31, 2003, Fidelity International Growth & Income Fund was up 31.97%, topping the 27.39% return for the MSCI EAFE index and the 24.51% gain for the Lipper International Funds Average. Good stock selection helped the fund's holdings outperform those of the index in eight out of the 10 major market sectors. The fund's biggest competitive advantage versus its benchmarks was in the financial sector, where an emphasis on strong-performing Japanese bank and brokerage stocks - including Mizuho Financial Group, Nomura Holdings and Daiwa Securities - was a significant contributor. Strong stock picking and an overweighting in semiconductor-related stocks also made a major contribution to the fund's performance. Noteworthy top performers in this group were Anglo-Dutch semiconductor equipment maker ASML and Taiwan-based semiconductor test and packaging firm ASE Test. Among the disappointments, having a larger average weighting relative to the index in energy stocks, such as Total of France and U.K.-based firms BP and Shell Transport, proved disappointing because this group underperformed most other sectors. Slowing sales hurt Dutch-based food producer Unilever, another detractor.
The views expressed in this statement reflect those of the portfolio manager only through the end of the period of the report as stated on the cover and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Investment Changes
Geographic Diversification (% of fund's net assets) | |||
As of October 31, 2003 | |||
Japan | 20.9% | ||
United Kingdom | 16.8% | ||
Switzerland | 9.3% | ||
France | 8.9% | ||
Germany | 7.9% | ||
United States of America | 6.0% | ||
Netherlands | 5.1% | ||
Spain | 2.9% | ||
Italy | 2.6% | ||
Other | 19.6% |
Percentages are adjusted for the effect of futures contracts, if applicable. |
As of April 30, 2003 | |||
Japan | 17.1% | ||
United Kingdom | 15.9% | ||
United States of America | 10.2% | ||
France | 9.8% | ||
Netherlands | 7.9% | ||
Switzerland | 7.7% | ||
Germany | 7.3% | ||
Italy | 4.2% | ||
Spain | 3.9% | ||
Other | 16.0% |
Percentages are adjusted for the effect of futures contracts, if applicable. |
Asset Allocation | ||
% of fund's | % of fund's net assets | |
Stocks and Equity Futures | 96.7 | 91.5 |
Bonds | 1.1 | 0.0 |
Short-Term Investments | 2.2 | 8.5 |
Top Ten Stocks as of October 31, 2003 | ||
% of fund's | % of fund's net assets | |
Total SA (France, Oil & Gas) | 3.2 | 3.8 |
Vodafone Group PLC (United Kingdom, Wireless Telecommunication Services) | 2.7 | 1.0 |
Shell Transport & Trading Co. PLC (Reg.) (United Kingdom, | 2.0 | 2.6 |
BP PLC sponsored ADR | 1.9 | 1.6 |
Novartis AG (Reg.) | 1.9 | 2.2 |
Nomura Holdings, Inc. (Japan, Diversified Financial Services) | 1.4 | 1.1 |
Danske Bank AS (Denmark, Commercial Banks) | 1.3 | 0.3 |
Unilever PLC sponsored ADR (United Kingdom, | 1.3 | 1.2 |
Nikko Cordial Corp. | 1.2 | 0.7 |
Allianz AG (Reg.) | 1.2 | 0.6 |
18.1 | ||
Market Sectors as of October 31, 2003 | ||
% of fund's | % of fund's net assets | |
Financials | 27.0 | 24.0 |
Information Technology | 14.9 | 10.7 |
Consumer Discretionary | 11.9 | 10.9 |
Health Care | 10.3 | 11.0 |
Telecommunication Services | 10.1 | 5.9 |
Energy | 8.5 | 10.8 |
Consumer Staples | 6.6 | 6.5 |
Industrials | 3.4 | 3.5 |
Materials | 2.8 | 5.7 |
Utilities | 2.3 | 2.2 |
Annual Report
Investments October 31, 2003
Showing Percentage of Net Assets
Common Stocks - 95.1% | |||
Shares | Value (Note 1) | ||
Australia - 0.4% | |||
News Corp. Ltd. ADR | 70,000 | $ 2,495,500 | |
Publishing & Broadcasting Ltd. | 135,000 | 1,151,332 | |
Suncorp-Metway Ltd. | 183,100 | 1,680,770 | |
TOTAL AUSTRALIA | 5,327,602 | ||
Belgium - 0.7% | |||
Fortis | 225,000 | 3,998,390 | |
Mobistar SA (a) | 98,542 | 4,931,538 | |
TOTAL BELGIUM | 8,929,928 | ||
Brazil - 2.1% | |||
Banco Bradesco SA sponsored ADR | 175,000 | 3,673,250 | |
Banco Itau Holding Financeira SA (PN) | 57,307,000 | 4,698,114 | |
Brasil Telecom Participacoes SA sponsored ADR | 33,900 | 1,238,028 | |
Companhia Vale do Rio Doce | 67,800 | 2,739,120 | |
Embraer - Empresa Brasileira de Aeronautica SA sponsored ADR | 74,600 | 1,935,870 | |
Gerdau SA sponsored ADR | 100,000 | 1,456,000 | |
Tele Norte Leste Participacoes SA ADR | 208,500 | 2,954,445 | |
Telebras sponsored ADR | 140,800 | 4,849,152 | |
Uniao de Bancos Brasileiros SA (Unibanco) GDR | 15,000 | 331,650 | |
Votorantim Celulose e Papel SA sponsored ADR | 90,100 | 2,466,938 | |
TOTAL BRAZIL | 26,342,567 | ||
Canada - 0.8% | |||
Abitibi-Consolidated, Inc. | 306,000 | 2,058,567 | |
Molson, Inc. Class A | 59,500 | 1,536,124 | |
Nortel Networks Corp. (a) | 708,200 | 3,151,493 | |
Teck Cominco Ltd. Class B (sub. vtg.) | 225,500 | 2,941,676 | |
TOTAL CANADA | 9,687,860 | ||
China - 0.2% | |||
China Oilfield Services Ltd. (H Shares) | 7,600,000 | 2,202,019 | |
PICC Property & Casualty Co. Ltd. | 278,000 | 65,090 | |
Weiqiao Textile Co. Ltd. (H Shares) | 124,000 | 145,308 | |
TOTAL CHINA | 2,412,417 | ||
Denmark - 2.3% | |||
Coloplast AS Series B | 35,000 | 2,934,347 | |
Danske Bank AS | 812,100 | 16,325,272 | |
GN Store Nordic AS (a) | 906,400 | 5,861,776 | |
Novozymes AS Series B | 70,000 | 2,247,121 | |
Radiometer AS Series B | 16,900 | 1,017,882 | |
TOTAL DENMARK | 28,386,398 | ||
Finland - 0.4% | |||
Nokia Corp. sponsored ADR | 269,100 | 4,572,009 | |
France - 8.9% | |||
Accor SA | 65,600 | 2,570,888 | |
Shares | Value (Note 1) | ||
Alcatel SA sponsored ADR (a) | 392,900 | $ 5,178,422 | |
Atos Origin SA (a) | 30,000 | 1,994,851 | |
AXA SA | 460,400 | 8,693,611 | |
Casino Guichard Perrachon et Compagnie | 82,700 | 7,544,550 | |
CNP Assurances | 100,200 | 4,553,689 | |
Credit Agricole SA | 183,224 | 3,877,914 | |
Credit Agricole SA rights 11/7/03 (a) | 183,224 | 42,451 | |
Dassault Systemes SA sponsored ADR | 60,000 | 2,527,200 | |
Elior SA | 287,612 | 2,408,921 | |
France Telecom SA sponsored ADR | 240,000 | 5,817,600 | |
Michelin SA (Compagnie Generale des Etablissements) Series B | 58,200 | 2,275,485 | |
Neopost SA | 91,379 | 4,521,195 | |
NRJ Group | 155,000 | 3,025,582 | |
Suez SA (France) | 308,200 | 4,927,073 | |
Total SA: | |||
Series B | 223,744 | 34,935,390 | |
sponsored ADR | 68,400 | 5,339,988 | |
Veolia Environnement | 184,700 | 4,108,142 | |
Vivendi Universal SA (a) | 75,000 | 1,569,989 | |
Vivendi Universal SA sponsored ADR (a) | 246,200 | 5,177,586 | |
TOTAL FRANCE | 111,090,527 | ||
Germany - 7.1% | |||
Allianz AG (Reg.) | 139,059 | 14,855,987 | |
AMB Generali Holding AG | 54,100 | 3,307,836 | |
AWD Holding AG | 44,400 | 1,234,444 | |
BASF AG sponsored ADR | 35,600 | 1,637,600 | |
Bayerische Hypo Und Verein AG (a) | 106,900 | 2,346,736 | |
DAB Bank AG (a) | 377,362 | 3,095,057 | |
Deutsche Bank AG | 33,500 | 2,194,250 | |
Deutsche Boerse AG | 227,875 | 12,623,609 | |
Deutsche Telekom AG sponsored ADR (a) | 525,800 | 8,207,738 | |
E.On AG | 113,000 | 5,691,743 | |
Freenet.de AG (a) | 30,500 | 1,766,636 | |
Fresenius AG | 112,100 | 8,037,174 | |
Hypo Real Estate Holding AG (a) | 137,047 | 2,381,431 | |
MAN AG | 95,000 | 2,623,658 | |
Muenchener Rueckversicherungs-Gesellschaft AG: | |||
rights 11/10/03 (a) | 68,500 | 564,206 | |
(Reg.) | 68,500 | 8,140,909 | |
Stada Arzneimittel AG | 88,061 | 4,548,816 | |
T-Online International AG (a) | 260,600 | 3,360,059 | |
Wedeco AG Water Technology (a) | 120,000 | 1,939,245 | |
TOTAL GERMANY | 88,557,134 | ||
Greece - 0.5% | |||
Greek Organization of Football Prognostics SA | 422,020 | 5,182,224 | |
Public Power Corp. of Greece | 32,600 | 700,172 | |
Public Power Corp. of Greece GDR (a)(d) | 25,000 | 536,942 | |
TOTAL GREECE | 6,419,338 | ||
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
Hong Kong - 2.3% | |||
ASM Pacific Technology Ltd. | 800,000 | $ 2,992,686 | |
Cheung Kong Holdings Ltd. | 594,000 | 4,952,805 | |
Esprit Holdings Ltd. | 883,000 | 2,774,441 | |
Hong Kong Exchanges & Clearing Ltd. | 2,670,000 | 5,810,626 | |
Hutchison Whampoa Ltd. | 395,100 | 3,065,413 | |
Sino Land Co. | 4,906,000 | 2,558,630 | |
Sun Hung Kai Properties Ltd. | 480,000 | 4,064,077 | |
Techtronic Industries Co. | 882,000 | 2,430,566 | |
TOTAL HONG KONG | 28,649,244 | ||
India - 2.6% | |||
Dr. Reddy's Laboratories Ltd. | 173,900 | 4,586,171 | |
Infosys Technologies Ltd. | 83,631 | 8,749,607 | |
Satyam Computer Services Ltd. | 1,119,500 | 7,561,318 | |
State Bank of India | 315,000 | 3,365,468 | |
Sun Pharmaceutical Industries Ltd. | 320,974 | 3,798,287 | |
Wipro Ltd. | 130,800 | 3,877,244 | |
TOTAL INDIA | 31,938,095 | ||
Indonesia - 0.1% | |||
PT Bank Rakyat Indonesia (a)(e) | 7,245,000 | 746,119 | |
Ireland - 0.4% | |||
Bank of Ireland | 103,300 | 1,279,250 | |
Independent News & Media PLC (Ireland) | 1,598,113 | 3,480,508 | |
TOTAL IRELAND | 4,759,758 | ||
Italy - 1.8% | |||
Assicurazioni Generali Spa | 200,000 | 4,586,767 | |
Banco Popolare di Verona e Novara | 173,800 | 2,676,797 | |
Cassa Di Risparmio Di Firenze | 1,533,000 | 2,370,832 | |
ENI Spa sponsored ADR | 120,000 | 9,540,000 | |
San Paolo IMI Spa | 131,700 | 1,475,331 | |
Telecom Italia Spa | 502,587 | 1,307,088 | |
TOTAL ITALY | 21,956,815 | ||
Japan - 20.9% | |||
Anritsu Corp. (a) | 378,000 | 2,468,656 | |
C&S Co. Ltd. | 145,500 | 2,686,602 | |
Canon Sales Co., Inc. | 403,000 | 3,427,369 | |
Canon, Inc. | 229,000 | 11,209,549 | |
Daicel Chemical Industries Ltd. | 750,000 | 3,179,007 | |
Daito Trust Construction Co. | 104,000 | 3,216,300 | |
Daiwa Securities Group, Inc. | 411,000 | 3,005,676 | |
Don Quijote Co. Ltd. | 57,200 | 3,074,877 | |
East Japan Railway Co. | 982 | 4,448,208 | |
FamilyMart Co. Ltd. | 183,000 | 3,978,261 | |
Fuji Soft ABC, Inc. | 54,700 | 1,656,822 | |
Fuji Television Network, Inc. | 787 | 4,187,693 | |
Fujitsu Ltd. | 291,000 | 1,823,713 | |
Hitachi Information Systems Co. Ltd. | 147,300 | 4,247,235 | |
Ito Yokado Ltd. | 110,000 | 4,042,205 | |
JAFCO Co. Ltd. | 55,000 | 4,702,565 | |
Japan Real Estate Investment Corp. | 79 | 462,043 | |
Shares | Value (Note 1) | ||
Kaneka Corp. | 320,000 | $ 2,494,451 | |
KDDI Corp. | 1,050 | 5,701,746 | |
Konica Minolta Holdings, Inc. | 673,500 | 8,852,169 | |
Kyocera Corp. | 124,400 | 7,490,704 | |
Lawson, Inc. | 100,400 | 3,835,546 | |
Matsushita Electric Industrial Co. Ltd. | 516,000 | 6,769,920 | |
Millea Holdings, Inc. | 557 | 6,636,983 | |
Mitsubishi Electric Corp. | 1,094,000 | 4,885,883 | |
Mitsubishi Tokyo Financial Group, Inc. (MTFG) | 1,670 | 12,257,799 | |
Mitsui Fudosan Co. Ltd. | 110,000 | 1,023,558 | |
Mitsui Sumitomo Insurance Co. Ltd. | 230,000 | 1,895,397 | |
Mizuho Financial Group, Inc. (a) | 1,079 | 2,640,085 | |
Murata Manufacturing Co. Ltd. | 49,500 | 2,814,035 | |
Nichicon Corp. | 385,000 | 4,475,441 | |
Nikko Cordial Corp. | 2,756,000 | 14,865,453 | |
Nippon Telegraph & Telephone Corp. | 1,364 | 6,132,544 | |
NOK Corp. | 49,000 | 1,929,871 | |
Nomura Holdings, Inc. | 719,000 | 12,347,389 | |
Nomura Holdings, Inc. sponsored ADR | 300,000 | 5,145,000 | |
Ricoh Co. Ltd. | 169,000 | 3,205,066 | |
Rohm Co. Ltd. | 20,000 | 2,696,016 | |
Sanken Electric Co. Ltd. | 600,000 | 6,652,719 | |
Sanyo Electric Co. Ltd. | 1,100,000 | 5,042,750 | |
Shin-Etsu Chemical Co. Ltd. | 38,300 | 1,424,841 | |
Skylark Co. Ltd. | 143,800 | 2,368,763 | |
Sumitomo Bakelite Co. Ltd. | 673,000 | 4,132,026 | |
Sumitomo Chemical Co. Ltd. | 526,000 | 1,961,615 | |
Sumitomo Electric Industries Ltd. | 224,000 | 1,925,414 | |
Sumitomo Mitsui Financial Group, Inc. | 2,617 | 13,163,552 | |
Taiyo Yuden Co. Ltd. | 266,000 | 3,847,007 | |
Tohoku Electric Power Co., Inc. | 205,400 | 3,329,296 | |
Tokyo Electron Ltd. | 82,000 | 5,877,387 | |
Toyota Motor Corp. | 484,000 | 14,040,839 | |
UMC Japan (a) | 4,038 | 5,509,368 | |
Uni-Charm Corp. | 61,100 | 2,851,037 | |
Uny Co. Ltd. | 480,000 | 4,994,724 | |
Yamato Transport Co. Ltd. | 191,000 | 2,538,212 | |
York-Benimaru Co. Ltd. | 13,800 | 332,636 | |
TOTAL JAPAN | 259,904,023 | ||
Korea (South) - 0.6% | |||
Honam Petrochemical Corp. | 69,970 | 2,802,346 | |
LG Chemical Investment Ltd. | 244,120 | 2,052,381 | |
Samsung SDI Co. Ltd. | 29,610 | 3,052,318 | |
TOTAL KOREA (SOUTH) | 7,907,045 | ||
Luxembourg - 0.3% | |||
RTL Group | 53,800 | 2,982,233 | |
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
Mexico - 0.6% | |||
Grupo Televisa SA de CV sponsored ADR | 93,000 | $ 3,603,750 | |
Telefonos de Mexico SA de CV sponsored ADR | 107,000 | 3,440,050 | |
TOTAL MEXICO | 7,043,800 | ||
Netherlands - 5.1% | |||
ASM International NV (Nasdaq) (a) | 135,000 | 2,363,850 | |
ASML Holding NV (NY Shares) (a) | 735,000 | 12,899,250 | |
De Telegraaf Holding NV (Certificaten Van Aandelen) | 109,300 | 2,120,861 | |
Euronext NV | 314,200 | 7,661,884 | |
ING Groep NV (Certificaten Van Aandelen) | 530,444 | 11,054,456 | |
Koninklijke KPN NV (a) | 862,800 | 6,536,800 | |
Koninklijke Numico NV (Certificaten Van Aandelen) (a) | 103,400 | 2,325,002 | |
Koninklijke Philips Electronics NV (NY Shares) | 66,900 | 1,795,596 | |
Unilever NV (NY Shares) | 120,000 | 7,038,000 | |
Unit 4 Agresso NV (a) | 205,969 | 2,161,759 | |
Vedior NV (Certificaten Van Aandelen) | 157,000 | 2,255,270 | |
VNU NV | 82,800 | 2,513,095 | |
Vopak NV | 38,000 | 563,910 | |
Wegener NV (a) | 279,300 | 2,264,886 | |
TOTAL NETHERLANDS | 63,554,619 | ||
Norway - 0.4% | |||
Orkla ASA (A Shares) | 83,500 | 1,741,100 | |
TANDBERG Television ASA (a) | 679,265 | 2,541,344 | |
TOTAL NORWAY | 4,282,444 | ||
Singapore - 0.5% | |||
DBS Group Holdings Ltd. | 459,000 | 3,773,326 | |
Oversea-Chinese Banking Corp. Ltd. | 350,000 | 2,434,608 | |
TOTAL SINGAPORE | 6,207,934 | ||
South Africa - 0.3% | |||
MTN Group Ltd. (a) | 1,100,000 | 3,944,198 | |
Spain - 2.9% | |||
Antena 3 Television SA (a) | 879 | 28,614 | |
Banco Bilbao Vizcaya Argentaria SA | 325,000 | 3,716,018 | |
Banco Espanol de Credito SA (Reg.) | 520,000 | 5,204,684 | |
Banco Popular Espanol SA (Reg.) | 30,000 | 1,554,524 | |
Banco Santander Central Hispano SA | 750,060 | 7,168,483 | |
Grupo Auxiliar Metalurgico SA (Gamesa) | 98,700 | 2,661,812 | |
Prosegur Comp Securidad SA (Reg.) | 87,000 | 1,410,992 | |
Repsol YPF SA sponsored ADR | 295,000 | 5,124,150 | |
Telefonica SA | 260,000 | 3,241,335 | |
Telefonica SA sponsored ADR | 155,776 | 5,826,022 | |
TOTAL SPAIN | 35,936,634 | ||
Sweden - 1.8% | |||
D. Carnegie & Co. AB | 73,100 | 755,937 | |
Shares | Value (Note 1) | ||
Modern Times Group AB | 198,300 | $ 3,708,884 | |
OMHEX AB | 303,000 | 3,094,679 | |
Securitas AB (B Shares) | 138,000 | 1,691,349 | |
Svenska Handelsbanken AB (A Shares) | 91,600 | 1,607,982 | |
Tele2 AB (B Shares) (a) | 86,400 | 4,329,486 | |
Telefonaktiebolaget LM Ericsson ADR (a) | 442,100 | 7,551,068 | |
TOTAL SWEDEN | 22,739,385 | ||
Switzerland - 9.3% | |||
Actelion Ltd. (Reg.) (a) | 27,802 | 2,633,786 | |
Bank Sarasin & Co. Ltd. Series B (Reg.) | 1,231 | 1,818,126 | |
Barry Callebaut AG | 16,650 | 2,608,161 | |
Compagnie Financiere Richemont unit | 175,920 | 3,943,306 | |
Converium Holding AG | 110,000 | 5,399,075 | |
Credit Suisse Group (Reg.) | 323,600 | 11,357,139 | |
Julius Baer Holding AG (Bearer) | 7,820 | 2,525,780 | |
Nestle SA (Reg.) | 54,760 | 12,009,130 | |
Nobel Biocare Holding AG (Switzerland) | 40,200 | 3,553,409 | |
Novartis AG (Reg.) | 601,520 | 23,080,322 | |
Phonak Holding AG | 118,400 | 2,238,878 | |
Roche Holding AG (participation certificate) | 168,190 | 13,863,192 | |
SIG Holding AG | 24,122 | 3,225,323 | |
Swiss Life Holding (a) | 51,830 | 8,756,896 | |
UBS AG (NY Shares) | 224,650 | 13,780,031 | |
Zurich Financial Services AG | 39,451 | 5,032,165 | |
TOTAL SWITZERLAND | 115,824,719 | ||
Taiwan - 2.2% | |||
Advanced Semiconductor Engineering, Inc. (a) | 1,029,000 | 955,305 | |
Advanced Semiconductor Engineering, Inc. sponsored ADR (a) | 598,000 | 2,798,640 | |
ASE Test Ltd. (a) | 390,000 | 4,863,300 | |
Chinatrust Financial Holding Co. | 2,838,270 | 2,952,872 | |
Compal Electronics, Inc. | 1,113,200 | 1,689,649 | |
Hon Hai Precision Industries Co. Ltd. | 548,000 | 2,454,937 | |
Siliconware Precision Industries Co. Ltd. (a) | 2,403,000 | 2,301,724 | |
Taiwan Cellular Co. Ltd. | 2,462,000 | 2,213,115 | |
Taiwan Semiconductor Manufacturing Co. Ltd. (a) | 520 | 1,027 | |
United Microelectronics Corp. (a) | 6,550,252 | 6,003,915 | |
WUS Printed Circuit Co. Ltd. (a) | 2,000,000 | 1,013,852 | |
TOTAL TAIWAN | 27,248,336 | ||
Turkey - 0.1% | |||
Turkcell Iletisim Hizmet AS sponsored ADR (a) | 89,200 | 1,694,800 | |
United Kingdom - 16.2% | |||
3i Group PLC | 455,200 | 4,782,003 | |
AstraZeneca PLC sponsored ADR | 133,700 | 6,374,816 | |
Astro All Asia Networks PLC (a) | 538,900 | 669,371 | |
Aviva PLC | 378,800 | 3,103,290 | |
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
United Kingdom - continued | |||
BOC Group PLC | 256,000 | $ 3,485,313 | |
BP PLC sponsored ADR | 549,400 | 23,283,572 | |
British Sky Broadcasting Group PLC (BSkyB) (a) | 144,300 | 1,564,812 | |
Centrica PLC | 900,000 | 2,813,551 | |
Dixons Group PLC | 1,282,400 | 2,949,710 | |
easyJet PLC (a) | 384,200 | 1,826,023 | |
EMAP PLC | 162,500 | 2,204,097 | |
Enterprise Inns PLC | 197,000 | 2,822,252 | |
GlaxoSmithKline PLC | 353,731 | 7,656,505 | |
Hilton Group PLC | 900,000 | 2,958,422 | |
HSBC Holdings PLC sponsored ADR | 132,000 | 9,909,240 | |
Inchcape PLC | 145,200 | 3,360,727 | |
J.D. Wetherspoon PLC | 686,700 | 3,077,575 | |
Kesa Electricals PLC | 997,500 | 4,124,000 | |
Legal & General Group PLC | 1,249,100 | 2,201,134 | |
Lloyds TSB Group PLC | 982,300 | 6,811,594 | |
Mitie Group PLC | 383,200 | 792,139 | |
NDS Group PLC sponsored ADR (a) | 11,800 | 206,618 | |
Pearson PLC | 452,300 | 4,674,900 | |
Pennon Group PLC | 215,000 | 2,326,030 | |
Punch Taverns Ltd. | 732,000 | 4,207,720 | |
Severn Trent PLC | 145,000 | 1,739,471 | |
Shell Transport & Trading Co. PLC (Reg.) | 3,884,100 | 24,702,869 | |
Shire Pharmaceuticals Group PLC sponsored ADR (a) | 113,300 | 2,594,570 | |
SMG PLC | 362,650 | 620,619 | |
Tesco PLC | 1,456,400 | 5,829,998 | |
Trinity Mirror PLC | 275,000 | 2,520,844 | |
Unilever PLC sponsored ADR | 460,000 | 15,732,000 | |
Vodafone Group PLC | 15,703,481 | 33,212,877 | |
William Hill PLC | 537,500 | 3,087,409 | |
Wolfson Microelectronics PLC (a) | 43,300 | 174,248 | |
Yell Group PLC (a) | 630,300 | 3,065,104 | |
TOTAL UNITED KINGDOM | 201,465,423 | ||
United States of America - 3.3% | |||
Affiliated Computer Services, | 67,000 | 3,278,310 | |
Avon Products, Inc. | 37,500 | 2,548,500 | |
DENTSPLY International, Inc. | 45,000 | 1,988,550 | |
Fox Entertainment Group, Inc. Class A (a) | 100,000 | 2,770,000 | |
Ingram Micro, Inc. Class A (a) | 212,000 | 3,137,600 | |
Manpower, Inc. | 65,400 | 3,034,560 | |
Merck & Co., Inc. | 130,000 | 5,752,500 | |
NTL, Inc. (a) | 29,500 | 1,821,035 | |
Pfizer, Inc. | 285,000 | 9,006,000 | |
Wyeth | 170,000 | 7,503,800 | |
TOTAL UNITED STATES OF AMERICA | 40,840,855 | ||
TOTAL COMMON STOCKS (Cost $1,043,083,597) | 1,181,352,259 | ||
Nonconvertible Preferred Stocks - 1.6% | |||
Shares | Value (Note 1) | ||
Germany - 0.8% | |||
Fresenius Medical Care AG | 251,000 | $ 10,264,215 | |
Italy - 0.8% | |||
Telecom Italia Spa (Risp) (a) | 5,824,085 | 10,066,392 | |
TOTAL NONCONVERTIBLE (Cost $17,147,964) | 20,330,607 |
Nonconvertible Bonds - 1.1% | ||||
Principal Amount | ||||
United Kingdom - 0.6% | ||||
Telewest Communications PLC yankee: | ||||
9.875% 2/1/10 (c) | $ 225,000 | 115,875 | ||
11.25% 11/1/08 (c) | 1,510,000 | 811,625 | ||
Telewest PLC: | ||||
11% 10/1/07 (c) | 4,735,000 | 2,556,900 | ||
yankee 9.625% 10/1/06 (c) | 6,860,000 | 3,635,800 | ||
TOTAL UNITED KINGDOM | 7,120,200 | |||
United States of America - 0.5% | ||||
NTL, Inc. 19% 1/1/10 | 6,000,000 | 5,850,000 | ||
TOTAL NONCONVERTIBLE BONDS (Cost $10,868,660) | 12,970,200 |
Money Market Funds - 9.4% | |||
Shares | |||
Fidelity Cash Central Fund, 1.07% (b) | 34,368,761 | 34,368,761 | |
Fidelity Securities Lending Cash Central Fund, 1.09% (b) | 82,837,012 | 82,837,012 | |
TOTAL MONEY MARKET FUNDS (Cost $117,205,773) | 117,205,773 | ||
TOTAL INVESTMENT PORTFOLIO - 107.2% (Cost $1,188,305,994) | 1,331,858,839 | ||
NET OTHER ASSETS - (7.2)% | (88,991,969) | ||
NET ASSETS - 100% | $ 1,242,866,870 |
Legend |
(a) Non-income producing |
(b) The rate quoted is the annualized seven-day yield of the fund at period end. A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request. |
(c) Non-income producing - issuer filed for bankruptcy or is in default of interest payments. |
(d) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the period end, the value of these securities amounted to $536,942 or 0.0% of net assets. |
(e) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
Other Information |
Purchases and sales of securities, other than short-term securities, aggregated $884,834,764 and $718,248,952, respectively. |
The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $355 for the period. |
Income Tax Information |
At October 31, 2003, the fund had a capital loss carryforward of approximately $76,617,000 of which $40,721,000 and $35,896,000 will expire on October 31, 2009 and 2010, respectively. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements
Statement of Assets and Liabilities
October 31, 2003 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $79,354,145) (cost $1,188,305,994) - See accompanying schedule | $ 1,331,858,839 | |
Foreign currency held at value | 6,895,054 | |
Receivable for investments sold | 8,274,345 | |
Receivable for fund shares sold | 2,857,984 | |
Dividends receivable | 1,413,152 | |
Interest receivable | 23,240 | |
Redemption fees receivable | 262 | |
Prepaid expenses | 5,335 | |
Other receivables | 83,323 | |
Total assets | 1,351,411,534 | |
Liabilities | ||
Payable for investments purchased | $ 22,242,260 | |
Delayed delivery | 753,580 | |
Payable for fund shares redeemed | 1,218,008 | |
Accrued management fee | 743,256 | |
Other payables and accrued expenses | 750,548 | |
Collateral on securities loaned, | 82,837,012 | |
Total liabilities | 108,544,664 | |
Net Assets | $ 1,242,866,870 | |
Net Assets consist of: | ||
Paid in capital | $ 1,169,110,134 | |
Undistributed net investment income | 10,323,041 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (79,658,039) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 143,091,734 | |
Net Assets, for 56,830,554 shares outstanding | $ 1,242,866,870 | |
Net Asset Value, offering price and redemption price per share ($1,242,866,870 ÷ 56,830,554 shares) | $ 21.87 |
Statement of Operations
Year ended October 31, 2003 | ||
Investment Income | ||
Dividends | $ 21,419,472 | |
Interest | 1,087,089 | |
Security lending | 1,180,523 | |
23,687,084 | ||
Less foreign taxes withheld | (2,463,678) | |
Total income | 21,223,406 | |
Expenses | ||
Management fee | $ 7,083,647 | |
Transfer agent fees | 2,959,760 | |
Accounting and security | 522,038 | |
Non-interested trustees' compensation | 3,812 | |
Custodian fees and expenses | 385,169 | |
Registration fees | 40,493 | |
Audit | 85,650 | |
Legal | 3,076 | |
Miscellaneous | 7,808 | |
Total expenses before reductions | 11,091,453 | |
Expense reductions | (304,183) | 10,787,270 |
Net investment income (loss) | 10,436,136 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities | 22,343,992 | |
Foreign currency transactions | 234,424 | |
Futures contracts | 589,703 | |
Total net realized gain (loss) | 23,168,119 | |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of deferred foreign taxes of $446,370) | 248,927,197 | |
Assets and liabilities in foreign currencies | 13,296 | |
Futures contracts | 248,087 | |
Total change in net unrealized appreciation (depreciation) | 249,188,580 | |
Net gain (loss) | 272,356,699 | |
Net increase (decrease) in net assets resulting from operations | $ 282,792,835 | |
Other Information Deferred sales charges | $ 1,435 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
Year ended | Year ended | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $ 10,436,136 | $ 5,468,685 |
Net realized gain (loss) | 23,168,119 | (31,561,666) |
Change in net unrealized appreciation (depreciation) | 249,188,580 | (25,153,951) |
Net increase (decrease) in net assets resulting from operations | 282,792,835 | (51,246,932) |
Distributions to shareholders from net investment income | (4,820,830) | - |
Share transactions | 324,768,068 | 304,424,728 |
Reinvestment of distributions | 4,358,550 | - |
Cost of shares redeemed | (254,428,741) | (245,616,474) |
Net increase (decrease) in net assets resulting from share transactions | 74,697,877 | 58,808,254 |
Redemption fees | 66,892 | 114,433 |
Total increase (decrease) in net assets | 352,736,774 | 7,675,755 |
Net Assets | ||
Beginning of period | 890,130,096 | 882,454,341 |
End of period (including undistributed net investment income of $10,323,041 and undistributed net investment income of $4,473,312, respectively) | $ 1,242,866,870 | $ 890,130,096 |
Other Information Shares | ||
Sold | 17,590,450 | 16,847,643 |
Issued in reinvestment of distributions | 257,142 | - |
Redeemed | (14,446,125) | (13,535,789) |
Net increase (decrease) | 3,401,467 | 3,311,854 |
Financial Highlights
See accompanying notes which are an integral part of the financial statements.
Annual Report
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity a fund's total returns will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended | Past 1 | Past 5 | Past 10 |
Fidelity Diversified International | 33.26% | 8.59% | 10.50% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Diversified International Fund on October 31, 1993. The chart shows how the value of your investment would have grown, and also shows how the Morgan Stanley Capital International EAFE Index did over the same period.
Annual Report
Management's Discussion of Fund Performance
Comments from Bill Bower, Portfolio Manager of Fidelity Diversified International Fund
Mirroring the U.S. rally, most international stock markets rebounded sharply during the 12-month period ending October 31, 2003. Encouraged
by improved corporate earnings, favorable interest rates and the easing of geopolitical tensions, the Morgan Stanley Capital International Europe, Australasia, Far East (MSCI EAFE) Index - a proxy for stock markets outside the United States and Canada - gained 27.39% during the past year. From a regional perspective, all 16 countries in the MSCI Europe index - which gained 24.56% - had double-digit advances. Spain, Denmark and Sweden were among the region's best performers. In Japan, increased capital spending, exports and machinery orders helped the Tokyo Stock Exchange Stock Price Index (TOPIX) advance 36.39%. Following the SARS epidemic, other Asian markets also rebounded. For instance, the Hong Kong market, as measured by the Hang Seng Index, gained 34.51%. Emerging markets also fared well, particularly Latin America. The MSCI Emerging Markets Free-Latin America index rose 59.75%. Canadian equities, as measured by the S&P/TSX Composite Index, also posted an impressive annual gain, advancing 50.66%.
For the 12 months ending October 31, 2003, Fidelity Diversified International Fund returned 33.26%, topping the Lipper International Funds Average, which rose 24.51%, as well as the MSCI EAFE index. Superior stock selection was the main reason for the fund's outperformance, with the fund beating the index's holdings in nine of the 10 major market sectors. The portfolio's biggest advantage came in the energy sector, where an emphasis on energy services stocks, as well as companies with little exposure to the Middle East, proved quite helpful. Elsewhere, Japanese brokerage stocks were beneficiaries of the rising equity markets, and our positions in Nomura Holdings and Nikko Cordial were top performers. Additionally, increasing the fund's emerging-markets exposure early in the period worked out well, as several of these stocks were among the fund's top contributors. My decision to keep a low exposure to European technology companies was disappointing, however, given that the market's willingness to pay for their only modestly better earnings growth was much greater than I expected. Looking at individual detractors, Anglo-Dutch consumer products giant Unilever was hurt by disappointing third-quarter 2003 sales, and Swiss pharmaceutical firm Novartis declined due to lower-than-expected third-quarter profits.
The views expressed in this statement reflect those of the portfolio manager only through the end of the period of the report as stated on the cover and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Investment Changes
Geographic Diversification (% of fund's net assets) | |||
As of October 31, 2003 | |||
United Kingdom | 17.1% | ||
Japan | 15.5% | ||
United States of America | 8.2% | ||
Switzerland | 6.9% | ||
France | 5.7% | ||
Canada | 5.6% | ||
Netherlands | 5.4% | ||
Spain | 4.3% | ||
Germany | 4.1% | ||
Other | 27.2% |
Percentages are adjusted for the effect of futures contracts, if applicable. |
As of April 30, 2003 | |||
United Kingdom | 15.1% | ||
Japan | 11.1% | ||
United States of America | 9.7% | ||
France | 7.2% | ||
Switzerland | 7.2% | ||
Netherlands | 6.8% | ||
Canada | 5.8% | ||
Germany | 4.2% | ||
Spain | 4.0% | ||
Other | 28.9% |
Percentages are adjusted for the effect of futures contracts, if applicable. |
Asset Allocation | ||
% of fund's | % of fund's net assets | |
Stocks and Investment Companies | 95.0 | 93.4 |
Bonds | 1.1 | 1.3 |
Short-Term Investments | 3.9 | 5.3 |
Top Ten Stocks as of October 31, 2003 | ||
% of fund's | % of fund's net assets | |
Novartis AG | 2.0 | 2.4 |
Unilever NV (NY Shares) (Netherlands, Food Products) | 1.7 | 2.0 |
Vodafone Group PLC sponsored ADR (United Kingdom, Wireless Telecommunication Services) | 1.4 | 0.9 |
HSBC Holdings PLC sponsored ADR (United Kingdom, Commercial Banks) | 1.2 | 1.2 |
GlaxoSmithKline PLC sponsored ADR (United Kingdom, Pharmaceuticals) | 1.2 | 1.6 |
Nomura Holdings, Inc. (Japan, Capital Markets) | 1.2 | 1.1 |
Nikko Cordial Corp. (Japan, Capital Markets) | 1.1 | 0.8 |
AstraZeneca PLC sponsored ADR (United Kingdom, Pharmaceuticals) | 1.1 | 0.5 |
Total SA (France, Oil & Gas) | 1.0 | 1.2 |
Sony Corp. sponsored ADR (Japan, Household Durables) | 0.9 | 0.1 |
12.8 | ||
Market Sectors as of October 31, 2003 | ||
% of fund's | % of fund's net assets | |
Financials | 22.5 | 22.2 |
Health Care | 13.8 | 14.2 |
Consumer Discretionary | 12.5 | 12.4 |
Information Technology | 10.9 | 9.2 |
Consumer Staples | 9.5 | 11.1 |
Energy | 7.8 | 8.9 |
Materials | 6.5 | 6.5 |
Industrials | 5.6 | 4.3 |
Telecommunication Services | 4.7 | 3.6 |
Utilities | 1.4 | 1.1 |
Annual Report
Investments October 31, 2003
Showing Percentage of Net Assets
Common Stocks - 94.1% | |||
Shares | Value (Note 1) | ||
Australia - 2.7% | |||
Australia & New Zealand Banking | 2,708,900 | $ 34,126,587 | |
Australia & New Zealand Banking | 492,527 | 1,502,406 | |
Australian Gas Light Co. | 2,611,919 | 19,779,867 | |
Billabong International Ltd. | 1,617,000 | 8,377,240 | |
CSL Ltd. | 3,480,227 | 41,873,221 | |
Fosters Group Ltd. | 4,711,458 | 15,238,822 | |
Macquarie Bank Ltd. | 1,390,553 | 34,288,270 | |
National Australia Bank Ltd. | 1,030,100 | 22,301,740 | |
News Corp. Ltd.: | |||
ADR | 463,300 | 16,516,645 | |
sponsored ADR | 417,700 | 12,322,150 | |
Promina Group Ltd. | 4,923,838 | 11,569,690 | |
QBE Insurance Group Ltd. | 7,636,875 | 55,671,482 | |
Sons of Gwalia Ltd. | 358,200 | 877,166 | |
Suncorp-Metway Ltd. | 2,248,000 | 20,635,555 | |
Westfield Holdings Ltd. | 1,708,300 | 17,180,591 | |
TOTAL AUSTRALIA | 312,261,432 | ||
Belgium - 0.4% | |||
Agfa-Gevaert NV | 871,291 | 21,549,560 | |
Groupe Bruxelles Lambert SA (GBL) | 188,966 | 9,095,613 | |
Melexis NV | 943,950 | 10,311,883 | |
TOTAL BELGIUM | 40,957,056 | ||
Bermuda - 0.3% | |||
Aquarius Platinum Ltd. (Australia) | 2,874,145 | 15,968,283 | |
Clear Media Ltd. (a)(f) | 26,746,500 | 17,565,565 | |
TOTAL BERMUDA | 33,533,848 | ||
Brazil - 0.8% | |||
Companhia Vale do Rio Doce | 1,475,500 | 67,504,125 | |
Embraer - Empresa Brasileira de Aeronautica SA sponsored ADR | 208,200 | 5,402,790 | |
Petroleo Brasileiro SA Petrobras sponsored ADR | 983,000 | 23,100,500 | |
TOTAL BRAZIL | 96,007,415 | ||
Canada - 5.6% | |||
Aber Diamond Corp. (a) | 469,500 | 14,831,001 | |
Alcan, Inc. | 548,900 | 21,897,717 | |
Astral Media, Inc. Class A (non-vtg.) | 518,400 | 10,301,160 | |
Barrick Gold Corp. | 754,700 | 14,681,877 | |
BCE, Inc. | 680,500 | 15,406,086 | |
Bombardier, Inc. Class B (sub. vtg.) | 3,648,500 | 16,381,585 | |
Canadian Natural Resources Ltd. | 473,500 | 20,107,141 | |
Canadian Western Bank, Edmonton | 200,000 | 6,059,917 | |
EnCana Corp. | 2,061,641 | 70,785,353 | |
Falconbridge Ltd. | 675,500 | 13,166,743 | |
ITF Optical Technologies, Inc. Series A (i) | 39,827 | 49,784 | |
Kinross Gold Corp. (a)(g) | 903,300 | 7,405,895 | |
Shares | Value (Note 1) | ||
Kinross Gold Corp. (a) | 491,865 | $ 4,032,659 | |
Loblaw Companies Ltd. | 201,800 | 9,772,416 | |
Mega Bloks, Inc. (a) | 189,100 | 3,599,856 | |
Mega Bloks, Inc. (a)(g) | 345,000 | 6,567,691 | |
Meridian Gold, Inc. (a) | 461,800 | 5,856,121 | |
Metro, Inc. Class A (sub. vtg.) | 570,600 | 8,590,375 | |
National Bank of Canada | 1,053,500 | 32,687,664 | |
OZ Optics Ltd. unit (i) | 102,000 | 1,504,500 | |
Petro-Canada | 1,958,000 | 78,899,158 | |
PetroKazakhstan, Inc. Class A (a) | 1,077,100 | 24,507,395 | |
Power Corp. of Canada (sub. vtg.) | 1,000,000 | 32,847,933 | |
Precision Drilling Corp. (a) | 1,456,000 | 57,279,272 | |
Saputo, Inc. | 753,800 | 14,978,809 | |
Sun Life Financial, Inc. | 1,485,405 | 36,715,471 | |
Talisman Energy, Inc. | 948,500 | 46,320,755 | |
TELUS Corp. (non-vtg.) | 512,500 | 8,975,066 | |
Thunder Energy, Inc. (a) | 936,900 | 5,052,225 | |
TimberWest Forest Corp. unit | 2,052,400 | 18,025,629 | |
TransCanada Corp. | 1,063,400 | 21,695,457 | |
Trican Well Service Ltd. (a) | 592,600 | 10,337,353 | |
Wheaton River Minerals Ltd. (a) | 3,073,900 | 7,133,966 | |
TOTAL CANADA | 646,454,030 | ||
Cayman Islands - 0.2% | |||
Apex Silver Mines Ltd. (a) | 1,445,700 | 19,430,208 | |
China - 1.0% | |||
Byd Co. Ltd. (H Shares) (f) | 8,852,500 | 23,084,259 | |
China Oilfield Services Ltd. (H Shares) | 9,238,000 | 2,676,612 | |
China Shipping Development Co. Ltd. | 9,164,000 | 6,018,389 | |
China Telecom Corp. Ltd. sponsored ADR | 1,345,800 | 43,725,042 | |
Lianhua Supermarket Holdings Co. | 5,663,000 | 5,542,238 | |
Peoples Food Holdings Ltd. | 23,114,000 | 14,749,376 | |
PetroChina Co. Ltd. sponsored ADR | 184,800 | 6,726,720 | |
PICC Property & Casualty Co. | 2,564,000 | 600,323 | |
Tsingtao Brewery Co. Ltd. (H Shares) | 8,140,000 | 10,586,948 | |
Zhenhai Refining & Chemical Co. | 9,018,000 | 5,516,058 | |
TOTAL CHINA | 119,225,965 | ||
Denmark - 2.8% | |||
A.P. Moller - Maersk AS: | |||
Series A | 918 | 6,952,486 | |
Series B | 3,290 | 25,737,171 | |
Coloplast AS Series B | 466,500 | 39,110,657 | |
Danske Bank AS | 3,202,350 | 64,375,364 | |
Group 4 Falck AS | 2,645,890 | 59,167,726 | |
Novo Nordisk AS Series B | 2,130,122 | 76,347,269 | |
Novozymes AS Series B | 1,490,400 | 47,844,416 | |
TOTAL DENMARK | 319,535,089 | ||
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
Finland - 0.6% | |||
Nokia Corp. sponsored ADR | 3,840,200 | $ 65,244,998 | |
TietoEnator Oyj | 91,600 | 2,419,400 | |
TOTAL FINLAND | 67,664,398 | ||
France - 5.7% | |||
AXA SA sponsored ADR | 2,621,400 | 49,806,600 | |
Bacou Dalloz | 203,388 | 15,833,316 | |
BNP Paribas SA | 1,380,900 | 72,306,603 | |
CNP Assurances | 729,507 | 33,153,170 | |
Credit Agricole SA | 777,700 | 16,459,928 | |
Credit Agricole SA rights 11/7/03 (a) | 777,700 | 180,185 | |
Dassault Aviation SA | 31,362 | 11,389,865 | |
Essilor International SA | 699,422 | 33,527,955 | |
Financiere Marc de Lacharriere SA (Fimalac) | 490,587 | 13,975,001 | |
Financiere Marc de Lacharriere SA (Fimalac) warrants 12/31/06 (a) | 60,402 | 172,133 | |
Ipsos SA | 213,829 | 17,983,761 | |
L'Oreal SA | 621,279 | 45,774,234 | |
Lagardere S.C.A. (Reg.) | 89,300 | 4,476,264 | |
Louis Vuitton Moet Hennessy (LVMH) | 60,400 | 4,159,739 | |
Neopost SA | 1,170,940 | 57,935,066 | |
NRJ Group | 713,954 | 13,936,298 | |
Pernod-Ricard | 386,931 | 37,203,938 | |
Suez SA (France) | 554,300 | 8,861,378 | |
Technip-Coflexip SA | 494,753 | 48,717,462 | |
Television Francaise 1 SA | 758,167 | 22,660,103 | |
Total SA sponsored ADR | 1,432,000 | 111,796,240 | |
Vinci SA | 212,200 | 15,327,070 | |
Vivendi Universal SA sponsored ADR (a) | 1,138,700 | 23,946,861 | |
TOTAL FRANCE | 659,583,170 | ||
Germany - 3.7% | |||
Allianz AG sponsored ADR | 6,644,100 | 71,689,839 | |
Altana AG sponsored ADR | 836,650 | 52,541,620 | |
AWD Holding AG | 166,400 | 4,626,386 | |
Bayerische Hypo Und Verein AG (a) | 447,000 | 9,812,825 | |
Celanese AG (Reg.) | 610,570 | 21,169,932 | |
Celesio AG | 409,557 | 17,080,247 | |
Deutsche Boerse AG | 1,402,222 | 77,679,003 | |
Deutsche Telekom AG sponsored ADR (a) | 2,524,600 | 39,409,006 | |
Epcos AG (a) | 268,700 | 5,522,028 | |
Fresenius Medical Care AG | 2,079,500 | 39,448,115 | |
GFK AG | 509,775 | 12,726,328 | |
Metro AG | 525,100 | 21,400,068 | |
Muenchener Rueckversicherungs-Gesellschaft AG: | |||
rights 11/10/03 (a) | 183,600 | 1,512,236 | |
(Reg.) | 231,311 | 27,490,245 | |
Stada Arzneimittel AG | 413,689 | 21,369,223 | |
TOTAL GERMANY | 423,477,101 | ||
Shares | Value (Note 1) | ||
Greece - 0.8% | |||
Coca-Cola Hellenic Bottling Co. SA (Bearer) | 949,480 | $ 18,324,752 | |
Cosmote Mobile Telecommunications SA | 923,900 | 10,574,485 | |
Greek Organization of Football Prognostics SA | 1,663,880 | 20,431,731 | |
Hellenic Technodomiki Tev SA | 749,090 | 3,939,736 | |
Public Power Corp. of Greece | 1,419,490 | 30,487,328 | |
Technical Olympic SA (Reg.) | 1,217,900 | 5,982,115 | |
TOTAL GREECE | 89,740,147 | ||
Hong Kong - 1.9% | |||
Aeon Credit Service (Asia) Co. Ltd. | 6,062,000 | 3,766,502 | |
CNOOC Ltd. sponsored ADR | 972,700 | 36,622,155 | |
Esprit Holdings Ltd. | 1,604,000 | 5,039,868 | |
Global Bio-Chem Technology | 22,348,000 | 11,367,389 | |
Hutchison Whampoa Ltd. | 4,476,000 | 34,727,387 | |
Kingboard Chemical Holdings Ltd. | 6,172,000 | 8,265,788 | |
Li & Fung Ltd. | 10,578,000 | 17,776,205 | |
Techtronic Industries Co. | 23,956,000 | 66,016,586 | |
Television Broadcasts Ltd. | 3,737,000 | 17,709,076 | |
Yue Yuen Industrial Holdings Ltd. | 7,343,947 | 20,805,454 | |
TOTAL HONG KONG | 222,096,410 | ||
India - 2.7% | |||
Bajaj Auto Ltd. | 784,700 | 15,847,234 | |
Dr. Reddy's Laboratories Ltd. | 1,725,860 | 45,515,177 | |
HDFC Bank Ltd. | 2,123,518 | 14,822,924 | |
Housing Development Finance Corp. Ltd. | 4,835,850 | 55,475,692 | |
I-Flex Solutions Ltd. | 1,044,609 | 15,832,787 | |
Infosys Technologies Ltd. | 419,784 | 43,918,465 | |
Ranbaxy Laboratories Ltd. | 2,209,120 | 47,923,572 | |
Satyam Computer Services Ltd. | 4,873,900 | 32,919,258 | |
State Bank of India | 3,556,849 | 38,001,462 | |
TOTAL INDIA | 310,256,571 | ||
Indonesia - 0.1% | |||
PT Bank Rakyat Indonesia (a)(h) | 67,099,000 | 6,910,123 | |
Ireland - 1.3% | |||
Allied Irish Banks PLC | 1,250,300 | 18,249,966 | |
Bank of Ireland | 2,659,023 | 32,928,890 | |
CRH PLC | 1,034,000 | 18,506,586 | |
IAWS Group PLC (Ireland) | 3,716,027 | 39,604,450 | |
Independent News & Media PLC (Ireland) | 10,707,818 | 23,320,407 | |
Kerry Group PLC Class A | 708,500 | 12,311,427 | |
TOTAL IRELAND | 144,921,726 | ||
Israel - 0.3% | |||
Teva Pharmaceutical Industries Ltd. sponsored ADR | 674,500 | 38,372,305 | |
Italy - 1.3% | |||
Banca Intesa Spa | 10,714,675 | 36,070,479 | |
Banco Popolare di Verona e Novara | 1,480,782 | 22,806,401 | |
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
Italy - continued | |||
Cassa Di Risparmio Di Firenze | 4,251,975 | $ 6,575,810 | |
ENI Spa sponsored ADR | 376,100 | 29,899,950 | |
Telecom Italia Spa ADR (a) | 2,197,719 | 56,920,922 | |
TOTAL ITALY | 152,273,562 | ||
Japan - 15.1% | |||
Access Co. Ltd. (a) | 90 | 5,181,917 | |
Aeon Credit Service Ltd. | 250,000 | 11,574,495 | |
Asahi Glass Co. Ltd. | 1,660,000 | 13,106,057 | |
Avex, Inc. | 134,300 | 2,675,250 | |
Canon, Inc. ADR | 1,992,600 | 97,537,770 | |
Credit Saison Co. Ltd. | 1,395,500 | 29,194,559 | |
Daicel Chemical Industries Ltd. | 903,000 | 3,827,524 | |
Daito Trust Construction Co. | 633,500 | 19,591,594 | |
Daiwa Securities Group, Inc. | 12,881,000 | 94,199,777 | |
Dwango Co. Ltd. | 269 | 3,914,862 | |
Enplas Corp. | 331,000 | 10,989,175 | |
Fuji Soft ABC, Inc. | 89,600 | 2,713,917 | |
Fuji Television Network, Inc. | 1,331 | 7,082,363 | |
Gigno System Japan, Inc. | 896 | 2,436,820 | |
Hoya Corp. | 527,100 | 47,704,609 | |
Index Corp. | 448 | 3,011,388 | |
Ito Yokado Ltd. | 802,000 | 29,471,346 | |
JAFCO Co. Ltd. | 294,300 | 25,162,997 | |
Kadokawa Shoten Publishing Co. Ltd. | 89,500 | 2,588,776 | |
Keyence Corp. | 127,600 | 28,064,106 | |
Konica Minolta Holdings, Inc. | 4,122,000 | 54,177,640 | |
Kyocera Corp. | 526,000 | 31,672,911 | |
Kyorin Pharmaceutical Co. Ltd. | 441,000 | 6,638,666 | |
Millea Holdings, Inc. | 1,758 | 20,947,607 | |
Mitsubishi Securities Co. Ltd. | 876,000 | 9,959,978 | |
Murata Manufacturing Co. Ltd. | 442,500 | 25,155,765 | |
Nikko Cordial Corp. | 23,414,000 | 126,291,625 | |
Nikon Corp. (a) | 1,575,000 | 23,910,086 | |
Nissan Motor Co. Ltd. | 4,769,300 | 53,916,934 | |
Nitori Co. Ltd. | 72,150 | 4,600,432 | |
Nitto Denko Corp. | 683,200 | 35,856,502 | |
NOK Corp. | 90,000 | 3,544,661 | |
Nomura Holdings, Inc. | 7,867,000 | 135,100,011 | |
Olympus Corp. | 821,000 | 17,997,179 | |
ORIX Corp. | 747,500 | 62,892,256 | |
Ricoh Co. Ltd. | 893,000 | 16,935,646 | |
Rohm Co. Ltd. | 384,200 | 51,790,465 | |
Seiyu Ltd. (a) | 6,551,000 | 21,153,401 | |
Shin-Etsu Chemical Co. Ltd. | 1,472,700 | 54,787,545 | |
Shinko Electric Industries Co. Ltd. | 455,200 | 11,179,188 | |
Sony Corp. sponsored ADR | 2,971,700 | 104,603,840 | |
Stanley Electric Co. Ltd. | 818,000 | 17,410,587 | |
Sumitomo Mitsui Financial Group, Inc. | 19,675 | 98,965,567 | |
TDK Corp. | 469,800 | 30,767,326 | |
Terumo Corp. | 964,800 | 18,341,203 | |
Tokyo Electron Ltd. | 1,258,900 | 90,232,231 | |
Shares | Value (Note 1) | ||
Toshiba Corp. | 10,448,000 | $ 41,909,840 | |
Toyota Industries Corp. | 800,000 | 14,771,693 | |
Toyota Motor Corp. | 276,000 | 8,006,760 | |
Toyota Motor Corp. ADR | 1,310,800 | 76,052,616 | |
UFJ Holdings, Inc. (a) | 5,167 | 22,089,229 | |
USS Co. Ltd. | 90,330 | 6,416,930 | |
Yamada Denki Co. Ltd. | 299,100 | 9,522,012 | |
TOTAL JAPAN | 1,747,627,634 | ||
Korea (South) - 1.7% | |||
Amorepacific Corp. | 114,800 | 15,762,561 | |
Honam Petrochemical Corp. | 178,790 | 7,160,661 | |
Kookmin Bank sponsored ADR | 958,990 | 35,242,883 | |
KT&G Corp. | 712,900 | 13,733,935 | |
LG Card Co. Ltd. | 1,192,660 | 12,143,258 | |
LG Electronics, Inc. | 231,800 | 12,006,196 | |
Samsung Electronics Co. Ltd. | 244,760 | 97,200,797 | |
TOTAL KOREA (SOUTH) | 193,250,291 | ||
Luxembourg - 0.1% | |||
SES Global Fiduciary Depositary Receipts | 1,511,063 | 13,408,761 | |
Mexico - 0.7% | |||
Coca-Cola Femsa SA de CV sponsored ADR (a) | 1,294,500 | 26,148,900 | |
Fomento Economico Mexicano SA de CV sponsored ADR | 559,000 | 19,967,480 | |
Grupo Radio Centro SA de CV sponsored ADR | 1,109,100 | 6,732,237 | |
TV Azteca SA de CV sponsored ADR | 3,522,000 | 28,492,980 | |
TOTAL MEXICO | 81,341,597 | ||
Netherlands - 5.4% | |||
ASML Holding NV (NY Shares) (a) | 4,504,800 | 79,059,240 | |
EADS NV | 831,773 | 16,862,430 | |
Euronext NV | 2,017,453 | 49,196,343 | |
Fugro NV (Certificaten Van Aandelen) | 530,900 | 26,599,663 | |
ING Groep NV sponsored ADR | 2,672,300 | 55,690,732 | |
Koninklijke Numico NV (Certificaten Van Aandelen) (a) | 895,000 | 20,124,535 | |
Koninklijke Philips Electronics NV | 1,023,600 | 27,473,424 | |
Nutreco Holding NV | 359,500 | 9,578,644 | |
OPG Groep NV (A Shares) | 441,200 | 15,793,242 | |
Royal Dutch Petroleum Co. (NY Shares) | 1,265,900 | 56,180,642 | |
Unilever NV (NY Shares) | 3,359,500 | 197,034,675 | |
Van der Moolen Holding NV sponsored ADR | 626,800 | 5,409,284 | |
Vedior NV (Certificaten Van Aandelen) | 1,703,754 | 24,474,051 | |
VNU NV | 1,338,251 | 40,617,778 | |
TOTAL NETHERLANDS | 624,094,683 | ||
Netherlands Antilles - 0.3% | |||
Schlumberger Ltd. (NY Shares) | 814,800 | 38,271,156 | |
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
Norway - 1.1% | |||
DnB Holding ASA | 6,996,200 | $ 40,640,111 | |
Gjensidige NOR ASA | 421,950 | 17,210,822 | |
Orkla ASA (A Shares) | 369,450 | 7,703,587 | |
ProSafe ASA | 511,400 | 9,116,986 | |
Schibsted AS (B Shares) | 963,150 | 16,865,759 | |
Storebrand ASA (A Shares) (a) | 6,439,400 | 35,684,880 | |
TOTAL NORWAY | 127,222,145 | ||
Panama - 0.2% | |||
Banco Latin Americano de Exporaciones SA (BLADEX) Series E (a)(f) | 1,826,984 | 27,404,760 | |
Portugal - 0.3% | |||
Brisa Auto-Estradas de Portugal SA | 2,515,179 | 15,675,755 | |
Portugal Telecom SGPS SA sponsored ADR | 1,743,300 | 14,730,885 | |
TOTAL PORTUGAL | 30,406,640 | ||
Russia - 1.3% | |||
JSC MMC 'Norilsk Nickel' sponsored ADR | 454,800 | 23,308,500 | |
Lukoil Oil Co. sponsored ADR | 360,100 | 29,276,130 | |
Mobile TeleSystems OJSC | 255,900 | 19,829,691 | |
OAO Gazprom sponsored ADR | 827,900 | 19,869,600 | |
Sibneft sponsored ADR | 558,400 | 12,145,200 | |
Surgutneftegaz JSC sponsored ADR | 269,800 | 6,701,832 | |
YUKOS Corp. sponsored ADR | 977,343 | 45,153,247 | |
TOTAL RUSSIA | 156,284,200 | ||
Singapore - 0.2% | |||
Datacraft Asia Ltd. (a) | 4,509,000 | 5,636,250 | |
Fraser & Neave Ltd. | 858,600 | 6,071,158 | |
Want Want Holdings Ltd. | 12,644,000 | 10,684,180 | |
TOTAL SINGAPORE | 22,391,588 | ||
South Africa - 0.4% | |||
Anglo American Platinum Corp. Ltd. | 213,000 | 9,121,592 | |
Gold Fields Ltd. sponsored ADR | 775,700 | 11,108,024 | |
Harmony Gold Mining Co. Ltd. sponsored ADR | 1,639,600 | 24,790,752 | |
MTN Group Ltd. (a) | 914,700 | 3,279,780 | |
TOTAL SOUTH AFRICA | 48,300,148 | ||
Spain - 4.3% | |||
Actividades de Construccion y Servicios SA (ACS) | 1,173,212 | 49,226,872 | |
Altadis SA (Spain) | 3,988,631 | 96,386,333 | |
Banco Bilbao Vizcaya Argentaria SA sponsored ADR | 3,863,500 | 44,121,170 | |
Banco Espanol de Credito SA (Reg.) | 447,400 | 4,478,030 | |
Banco Popular Espanol SA (Reg.) | 803,724 | 41,646,943 | |
Banco Santander Central Hispano SA ADR | 6,677,600 | 63,637,528 | |
Compania de Distribucion Integral Logista SA | 647,820 | 17,373,313 | |
Shares | Value (Note 1) | ||
Fomento Construcciones y Contratas SA (FOCSA) | 929,332 | $ 30,208,965 | |
Grupo Auxiliar Metalurgico SA (Gamesa) | 340,800 | 9,190,938 | |
Grupo Ferrovial SA | 944,229 | 26,864,762 | |
Inditex SA | 1,604,644 | 33,032,650 | |
Prosegur Comp Securidad SA (Reg.) | 552,300 | 8,957,367 | |
Repsol YPF SA sponsored ADR | 714,300 | 12,407,391 | |
Telefonica SA sponsored ADR | 1,235,800 | 46,218,920 | |
Union Fenosa SA | 461,000 | 7,423,232 | |
TOTAL SPAIN | 491,174,414 | ||
Sweden - 2.2% | |||
Eniro AB | 2,269,900 | 18,112,137 | |
Getinge AB (B Shares) | 625,500 | 22,799,031 | |
Hennes & Mauritz AB (H&M) (B Shares) | 1,468,900 | 31,036,532 | |
Nordea AB | 2,042,400 | 12,620,284 | |
OMHEX AB | 1,367,600 | 13,967,930 | |
Securitas AB (B Shares) | 4,743,100 | 58,132,162 | |
Svenska Cellulosa AB (SCA) (B Shares) | 794,750 | 29,881,253 | |
Swedish Match Co. | 3,212,800 | 26,045,961 | |
Tele2 AB (B Shares) (a) | 275,600 | 13,810,259 | |
Telefonaktiebolaget LM Ericsson ADR (a) | 1,643,100 | 28,064,148 | |
TV 4 AB (A Shares) | 105,520 | 2,061,148 | |
TOTAL SWEDEN | 256,530,845 | ||
Switzerland - 6.9% | |||
Actelion Ltd. (Reg.) (a) | 329,985 | 31,260,700 | |
Alcon, Inc. | 748,500 | 41,249,835 | |
Compagnie Financiere Richemont unit | 853,124 | 19,123,061 | |
Converium Holding AG | 457,786 | 22,469,282 | |
Credit Suisse Group sponsored ADR | 2,799,200 | 98,755,776 | |
INFICON Holding AG (a)(f) | 196,142 | 14,630,912 | |
Nestle SA (Reg.) | 255,263 | 55,980,398 | |
Nobel Biocare Holding AG (Switzerland) | 907,181 | 80,188,683 | |
Novartis AG sponsored ADR | 5,994,899 | 230,024,277 | |
Roche Holding AG (participation certificate) | 1,083,880 | 89,339,654 | |
Schindler Holding AG (Reg'd.) (a) | 67,400 | 16,943,011 | |
SIG Holding AG | 102,030 | 13,642,308 | |
Swiss Life Holding (a) | 57,640 | 9,738,520 | |
Tecan Group AG | 394,276 | 14,116,998 | |
The Swatch Group AG (Reg.) | 1,594,942 | 33,907,092 | |
UBS AG (NY Shares) | 386,753 | 23,723,429 | |
TOTAL SWITZERLAND | 795,093,936 | ||
Taiwan - 1.0% | |||
Chinatrust Financial Holding Co. | 12,019,080 | 12,504,377 | |
Fubon Financial Holding Co. Ltd. | 13,584,910 | 14,333,621 | |
Hon Hai Precision Industries Co. Ltd. | 8,083,000 | 36,210,315 | |
Taiwan Semiconductor Manufacturing Co. Ltd. (a) | 21,709,136 | 42,868,025 | |
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
Taiwan - continued | |||
United Microelectronics Corp. (a) | 5,625,000 | $ 5,155,836 | |
Yuanta Core Pacific Securities Co. Ltd. | 9,448,455 | 5,875,697 | |
TOTAL TAIWAN | 116,947,871 | ||
Thailand - 0.0% | |||
BEC World PCL (For. Reg.) | 461,800 | 2,797,387 | |
United Kingdom - 16.6% | |||
Amdocs Ltd. (a) | 929,900 | 19,955,654 | |
Amersham PLC | 914,300 | 11,363,308 | |
Anglo American PLC: | |||
ADR | 272,444 | 5,568,755 | |
(United Kingdom) | 600,000 | 12,260,678 | |
ARM Holdings PLC sponsored ADR (a) | 2,188,300 | 12,670,257 | |
AstraZeneca PLC sponsored ADR | 2,634,600 | 125,617,728 | |
Astro All Asia Networks PLC (a) | 1,380,600 | 1,714,851 | |
BAE Systems PLC | 8,517,200 | 26,409,725 | |
BBA Group PLC | 2,801,900 | 12,331,733 | |
BOC Group PLC | 2,238,173 | 30,471,615 | |
BP PLC sponsored ADR | 1,965,700 | 83,306,366 | |
British American Tobacco PLC sponsored ADR | 2,264,900 | 54,516,143 | |
Capita Group PLC | 8,967,800 | 37,569,737 | |
Capital Radio PLC | 1,209,278 | 9,630,303 | |
Celltech Group PLC (a) | 2,134,788 | 16,602,878 | |
Centrica PLC | 12,608,700 | 39,416,914 | |
Danka Business Systems PLC sponsored ADR (a) | 2,752,200 | 8,449,254 | |
Enterprise Inns PLC | 1,968,037 | 28,194,397 | |
French Connection Group PLC | 383,835 | 12,828,549 | |
Gallaher Group PLC sponsored ADR | 732,400 | 29,259,380 | |
GlaxoSmithKline PLC sponsored ADR | 3,245,675 | 140,505,271 | |
Hays PLC | 7,291,800 | 15,073,376 | |
HSBC Holdings PLC sponsored ADR | 1,875,800 | 140,816,306 | |
Icap PLC | 276,100 | 6,472,343 | |
Inchcape PLC | 1,358,940 | 31,453,351 | |
Intertek Group PLC | 2,853,900 | 24,831,053 | |
Johnston Press PLC | 1,825,800 | 14,385,405 | |
Kesa Electricals PLC | 3,976,374 | 16,439,666 | |
Kingfisher PLC | 7,583,503 | 36,299,802 | |
London Stock Exchange PLC | 2,532,277 | 16,411,890 | |
Maiden Group PLC | 1,585,000 | 6,848,341 | |
Man Group PLC | 953,800 | 23,417,560 | |
National Grid Transco PLC | 1,706,100 | 10,876,695 | |
Next PLC | 2,420,300 | 48,391,285 | |
Northern Rock PLC | 2,065,200 | 24,792,363 | |
Pennon Group PLC | 902,892 | 9,768,157 | |
PHS Group PLC | 9,354,392 | 13,710,321 | |
Prudential PLC | 7,089,200 | 54,924,598 | |
Punch Taverns Ltd. | 2,894,500 | 16,638,315 | |
Reckitt Benckiser PLC | 3,744,600 | 78,676,143 | |
Rentokil Initial PLC | 5,431,500 | 20,545,996 | |
Rio Tinto PLC (Reg.) | 1,412,000 | 34,964,655 | |
Shares | Value (Note 1) | ||
Royal Bank of Scotland Group PLC | 862,400 | $ 23,073,146 | |
Shire Pharmaceuticals Group PLC sponsored ADR (a) | 1,034,000 | 23,678,600 | |
Signet Group PLC | 1,805,800 | 3,166,839 | |
SMG PLC | 6,890,643 | 11,792,261 | |
Smith & Nephew PLC | 8,424,300 | 66,838,632 | |
Standard Chartered PLC | 1,305,200 | 20,843,679 | |
Taylor Nelson Sofres PLC | 8,118,580 | 29,644,443 | |
Tesco PLC | 23,653,600 | 94,685,834 | |
Trinity Mirror PLC | 2,160,505 | 19,804,710 | |
United Business Media PLC | 1,359,691 | 10,689,912 | |
Vodafone Group PLC sponsored ADR | 7,384,100 | 156,173,715 | |
William Hill PLC | 5,140,690 | 29,528,206 | |
Wolfson Microelectronics PLC (a) | 326,900 | 1,315,511 | |
Xstrata PLC | 4,035,607 | 41,369,492 | |
Yell Group PLC (a) | 3,396,500 | 16,516,935 | |
TOTAL UNITED KINGDOM | 1,913,503,032 | ||
United States of America - 4.1% | |||
Affiliated Computer Services, Inc. | 204,900 | 10,025,757 | |
AFLAC, Inc. | 733,600 | 26,761,728 | |
Baxter International, Inc. | 498,500 | 13,250,130 | |
Central European Distribution Corp. (a) | 441,400 | 16,592,226 | |
Forest Laboratories, Inc. (a) | 512,600 | 25,635,126 | |
Fox Entertainment Group, Inc. Class A (a) | 508,400 | 14,082,680 | |
Freeport-McMoRan Copper & Gold, Inc. Class B | 1,062,500 | 41,171,875 | |
Golden Telecom, Inc. (a) | 91,300 | 2,366,587 | |
Merck & Co., Inc. | 447,200 | 19,788,600 | |
Mettler-Toledo International, Inc. (a) | 920,200 | 35,280,468 | |
Motorola, Inc. | 5,049,400 | 68,318,382 | |
Newmont Mining Corp. Holding Co. | 757,680 | 33,171,230 | |
NTL, Inc. (a) | 1,064,310 | 65,699,856 | |
Orthofix International NV (a)(f) | 720,500 | 26,298,250 | |
Phelps Dodge Corp. (a) | 334,600 | 20,658,204 | |
Synthes-Stratec, Inc. | 55,431 | 50,692,530 | |
TOTAL UNITED STATES OF AMERICA | 469,793,629 | ||
TOTAL COMMON STOCKS (Cost $8,789,177,787) | 10,858,545,273 | ||
Preferred Stocks - 0.4% | |||
Convertible Preferred Stocks - 0.0% | |||
Canada - 0.0% | |||
Metrophotonics, Inc. Series 2 (i) | 198,000 | 1,980,000 | |
Preferred Stocks - continued | |||
Shares | Value (Note 1) | ||
Nonconvertible Preferred Stocks - 0.4% | |||
Germany - 0.4% | |||
Fresenius Medical Care AG | 536,400 | $ 21,935,158 | |
Porsche AG (non-vtg.) | 45,600 | 22,319,754 | |
TOTAL GERMANY | 44,254,912 | ||
TOTAL PREFERRED STOCKS (Cost $42,574,036) | 46,234,912 | ||
Investment Companies - 0.5% | |||
China - 0.2% | |||
China Fund, Inc. | 300,000 | 10,422,000 | |
Templeton China World Fund, Inc. | 565,000 | 8,737,386 | |
TOTAL CHINA | 19,159,386 | ||
India - 0.1% | |||
The India Fund, Inc. | 471,578 | 8,950,550 | |
Multi-National - 0.2% | |||
Templeton Dragon Fund, Inc. | 1,535,000 | 24,038,100 | |
TOTAL INVESTMENT COMPANIES (Cost $26,169,817) | 52,148,036 |
Nonconvertible Bonds - 0.7% | ||||
Principal Amount (d) | ||||
United Kingdom - 0.5% | ||||
Telewest Communications PLC yankee: | ||||
0% 4/15/09 (c)(e) | $ 7,850,000 | 3,473,625 | ||
0% 2/1/10 (c)(e) | 17,540,000 | 7,059,850 | ||
9.875% 2/1/10 (c) | 22,770,000 | 11,726,550 | ||
11.25% 11/1/08 (c) | 2,010,000 | 1,080,375 | ||
Telewest PLC: | ||||
11% 10/1/07 (c) | 57,825,000 | 31,225,500 | ||
yankee 9.625% 10/1/06 (c) | 8,384,000 | 4,443,520 | ||
TOTAL UNITED KINGDOM | 59,009,420 | |||
United States of America - 0.2% | ||||
NTL, Inc. 19% 1/1/10 | 27,678,172 | 26,986,218 | ||
TOTAL NONCONVERTIBLE BONDS (Cost $72,349,944) | 85,995,638 | |||
Government Obligations - 0.4% | ||||
Japan - 0.4% | ||||
Japan Government 0.2% 9/20/05 | JPY | 4,955,600,000 | 45,150,769 |
Money Market Funds - 5.7% | |||
Shares | Value (Note 1) | ||
Fidelity Cash Central Fund, 1.07% (b) | 497,803,736 | $ 497,803,736 | |
Fidelity Securities Lending Cash Central Fund, 1.09% (b) | 160,310,621 | 160,310,621 | |
TOTAL MONEY MARKET FUNDS (Cost $658,114,357) | 658,114,357 | ||
Cash Equivalents - 0.2% | |||
Maturity Amount | |||
Investments in repurchase agreements (Collateralized by U.S. Treasury Obligations, in a joint trading account at 1.01%, dated 10/31/03 due 11/3/03) | 25,173,113 | 25,171,000 | |
TOTAL INVESTMENT (Cost $9,658,526,649) | 11,771,359,985 | ||
NET OTHER ASSETS - (2.0)% | (228,973,638) | ||
NET ASSETS - 100% | $ 11,542,386,347 |
Currency Abbreviations | ||
JPY | - | Japanese yen |
Legend |
(a) Non-income producing |
(b) The rate quoted is the annualized seven-day yield of the fund at period end. A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request. |
(c) Non-income producing - issuer filed for bankruptcy or is in default of interest payments. |
(d) Principal amount is stated in United States dollars unless otherwise noted. |
(e) Debt obligation initially issued in zero coupon form which converts to coupon form at a specified rate and date. The rate shown is the rate at period end. |
(f) Affiliated company |
(g) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the period end, the value of these securities amounted to $13,973,586 or 0.1% of net assets. |
(h) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
(i) Restricted securities - Investment in securities not registered under the Securities Act of 1933. |
Additional information on each holding is as follows: |
Security | Acquisition Date | Acquisition Cost |
ITF Optical Technologies, Inc. Series A | 10/11/00 | $ 1,999,935 |
Metrophotonics, Inc. Series 2 | 9/29/00 | $ 1,980,000 |
OZ Optics Ltd. unit | 8/18/00 | $ 1,505,520 |
Other Information |
Transactions during the period with companies which are or were affiliates are as follows: |
Affiliate | Purchase | Sales | Dividend | Value |
Banco Latin Americano de Exporaciones SA (BLADEX) Series E | $ - | $ - | $ - | $ 27,404,760 |
Byd Co. Ltd. | - | - | - | 23,084,259 |
Clear Media Ltd. | 746,057 | - | - | 17,565,565 |
INFICON Holding AG | 4,319,731 | - | - | 14,630,912 |
Orthofix International NV | - | - | - | 26,298,250 |
Professional Staffing PLC spnsored ADR | - | 2,842,288 | - | - |
TOTALS | $ 5,065,788 | $ 2,842,288 | $ - | $ 108,983,746 |
Purchases and sales of securities, other than short-term securities, aggregated $6,260,592,651 and $4,063,681,243, respectively, of which long-term U.S. government and government agency obligations aggregated $0 and $118,008,697, respectively. |
The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $25,206 for the period. |
The fund invested in securities that are not registered under the Securities Act of 1933. At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $3,534,284 or 0.0% of net assets. |
Income Tax Information |
At October 31, 2003, the fund had a capital loss carryforward of approximately $843,477,000 of which $376,613,000 and $466,864,000 will expire on October 31, 2009 and 2010, respectively. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements
Statement of Assets and Liabilities
October 31, 2003 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $153,371,499 and repurchase agreements of $25,171,000) (cost $9,658,526,649) - See accompanying schedule | $ 11,771,359,985 | |
Cash | 514 | |
Foreign currency held at value | 14,030,767 | |
Receivable for investments sold | 70,832,229 | |
Receivable for fund shares sold | 63,693,656 | |
Dividends receivable | 20,221,074 | |
Interest receivable | 480,358 | |
Redemption fees receivable | 2,939 | |
Prepaid expenses | 49,173 | |
Other receivables | 77,343 | |
Total assets | 11,940,748,038 | |
Liabilities | ||
Payable for investments purchased Regular delivery | $ 195,546,039 | |
Delayed delivery | 6,979,225 | |
Payable for fund shares redeemed | 6,813,162 | |
Accrued management fee | 8,031,271 | |
Other payables and accrued expenses | 20,681,373 | |
Collateral on securities loaned, at value | 160,310,621 | |
Total liabilities | 398,361,691 | |
Net Assets | $ 11,542,386,347 | |
Net Assets consist of: | ||
Paid in capital | $ 10,202,027,873 | |
Undistributed net investment income | 122,952,442 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (877,771,847) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 2,095,177,879 | |
Net Assets, for 516,333,239 shares outstanding | $ 11,542,386,347 | |
Net Asset Value, offering price and redemption price per share ($11,542,386,347 ÷ 516,333,239 shares) | $ 22.35 |
Statement of Operations
Year ended October 31, 2003 | ||
Investment Income | ||
Dividends | $ 183,807,171 | |
Interest | 14,495,771 | |
Security lending | 4,084,524 | |
202,387,466 | ||
Less foreign taxes withheld | (17,971,900) | |
Total income | 184,415,566 | |
Expenses | ||
Management fee | $ 61,737,467 | |
Performance adjustment | 13,335,751 | |
Transfer agent fees | 25,129,430 | |
Accounting and security lending fees | 1,602,618 | |
Non-interested trustees' compensation | 35,312 | |
Appreciation in deferred trustee compensation account | 4,672 | |
Custodian fees and expenses | 2,848,720 | |
Registration fees | 258,899 | |
Audit | 108,508 | |
Legal | 32,502 | |
Miscellaneous | 134,661 | |
Total expenses before reductions | 105,228,540 | |
Expense reductions | (1,809,208) | 103,419,332 |
Net investment income (loss) | 80,996,234 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities (including realized gain (loss) of ($1,916,998) on sales of investments in affiliated issuers) (net of foreign tax of $8,306) | 162,147,122 | |
Foreign currency transactions | 1,658,451 | |
Total net realized gain (loss) | 163,805,573 | |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of deferred foreign taxes of $18,082,103) | 2,382,212,422 | |
Assets and liabilities in foreign currencies | (286,648) | |
Total change in net unrealized appreciation (depreciation) | 2,381,925,774 | |
Net gain (loss) | 2,545,731,347 | |
Net increase (decrease) in net assets resulting from operations | $ 2,626,727,581 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Diversified International
Financial Statements - continued
Statement of Changes in Net Assets
Year ended | Year ended | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $ 80,996,234 | $ 52,383,077 |
Net realized gain (loss) | 163,805,573 | (480,299,687) |
Change in net unrealized appreciation (depreciation) | 2,381,925,774 | (90,197,703) |
Net increase (decrease) in net assets resulting from operations | 2,626,727,581 | (518,114,313) |
Distributions to shareholders from net investment income | (53,240,295) | (3,276,430) |
Share transactions | 3,892,882,628 | 2,979,765,165 |
Reinvestment of distributions | 50,696,237 | 3,128,958 |
Cost of shares redeemed | (1,710,750,521) | (1,570,408,548) |
Net increase (decrease) in net assets resulting from share transactions | 2,232,828,344 | 1,412,485,575 |
Redemption fees | 598,391 | 632,765 |
Total increase (decrease) in net assets | 4,806,914,021 | 891,727,597 |
Net Assets | ||
Beginning of period | 6,735,472,326 | 5,843,744,729 |
End of period (including undistributed net investment income of $122,952,442 and | $ 11,542,386,347 | $ 6,735,472,326 |
Other Information Shares | ||
Sold | 207,041,717 | 160,294,241 |
Issued in reinvestment of distributions | 2,989,169 | 167,324 |
Redeemed | (92,290,398) | (85,513,680) |
Net increase (decrease) | 117,740,488 | 74,947,885 |
Financial Highlights
Years ended October 31, | 2003 | 2002 | 2001 | 2000 | 1999 |
Selected Per-Share Data | |||||
Net asset value, beginning of period | $ 16.90 | $ 18.06 | $ 22.98 | $ 21.34 | $ 17.21 |
Income from Investment Operations | |||||
Net investment income (loss) B | .18 | .14 | .22 | .39 C | .18 |
Net realized and unrealized gain (loss) | 5.40 | (1.29) | (3.78) | 2.20 | 4.65 |
Total from investment operations | 5.58 | (1.15) | (3.56) | 2.59 | 4.83 |
Distributions from net investment income | (.13) | (.01) | (.55) | (.25) | (.23) |
Distributions from net realized gain | - | - | (.81) | (.70) | (.47) |
Total distributions | (.13) | (.01) | (1.36) | (.95) | (.70) |
Redemption fees added to paid in capital B | - E | - E | - E | - E | - |
Net asset value, end of period | $ 22.35 | $ 16.90 | $ 18.06 | $ 22.98 | $ 21.34 |
Total Return A | 33.26% | (6.37)% | (16.45)% | 12.20% | 29.12% |
Ratios to Average Net Assets D | |||||
Expenses before expense reductions | 1.24% | 1.22% | 1.21% | 1.14% | 1.21% |
Expenses net of voluntary waivers, if any | 1.24% | 1.22% | 1.21% | 1.14% | 1.21% |
Expenses net of all reductions | 1.22% | 1.19% | 1.16% | 1.12% | 1.18% |
Net investment income (loss) | .96% | .77% | 1.08% | 1.62% | .94% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $ 11,542,386 | $ 6,735,472 | $ 5,843,745 | $ 6,287,669 | $ 3,579,586 |
Portfolio turnover rate | 51% | 55% | 86% | 94% | 73% |
A Total returns would have been lower had certain expenses not been reduced during the periods shown. B Calculated based on average shares outstanding during the period. C Investment income per share reflects a special dividend which amounted to $.19 per share. D Expense ratios reflect operating expenses of the fund. 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 fund during periods when reimbursements or reductions occur. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the fund. E Amount represents less than $.01 per-share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity a fund's total returns will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended | Past 1 | Past 5 | Life of |
Fidelity Aggressive International | 33.33% | 5.44% | 6.43% |
A From November 1, 1994.
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity Aggressive International Fund on November 1, 1994, when the fund started. The chart shows how the value of your investment would have grown, and also shows how the Morgan Stanley Capital International All Country World Index Free ex-USA did over the same period.
Annual Report
Management's Discussion of Fund Performance
Comments from Kevin McCarey, Portfolio Manager of Fidelity Aggressive International Fund
Mirroring the U.S. rally, most international stock markets rebounded sharply during the 12-month period ending October 31, 2003. Encouraged
by improved corporate earnings, favorable interest rates and the easing of geopolitical tensions, the Morgan Stanley Capital International Europe, Australasia, Far East (MSCI EAFE) Index - a proxy for stock markets outside the United States and Canada - gained 27.39% during the past year. From a regional perspective, all 16 countries in the MSCI Europe index - which gained 24.56% - had double-digit advances. Spain, Denmark and Sweden were among the region's best performers. In Japan, increased capital spending, exports and machinery orders helped the Tokyo Stock Exchange Stock Price Index (TOPIX) advance 36.39%. Following the SARS epidemic, other Asian markets also rebounded. For instance, the Hong Kong market, as measured by the Hang Seng Index, gained 34.51%. Emerging markets also fared well, particularly Latin America. The MSCI Emerging Markets Free-Latin America index rose 59.75%. Canadian equities, as measured by the S&P/TSX Composite Index, also posted an impressive annual gain, advancing 50.66%.
For the 12 months that ended October 31, 2003, the fund gained 33.33%. During the same time frame, the Morgan Stanley Capital International (MSCI) All Country World Index Free ex-USA rose 30.20% and the Lipper International Funds Average returned 24.51%. The market environment was very conducive to the fund's aggressive style of growth investing. In particular, investments in semiconductor and semiconductor equipment companies helped performance. Dutch company ASML Holding and Tokyo Electron, both among the world's largest makers of semiconductor equipment, were strong performers. Performance also was helped by Sumitomo Mitsui Financial Group, one of the world's largest banks, which benefited as expectations for economic recovery increased and optimism rose about Japan's economy. On the negative side, the strong economy led capital goods stocks to perform well, and being underweighted in this area hurt the fund's relative performance. Also, some of the capital goods stocks the fund did own failed to perform as well as I hoped. For example, ABB, a Swiss conglomerate, was a strong-performing stock for the period, but I sold it from the fund before it rebounded. Another capital goods disappointment was Neopost, a French maker of postal equipment that encountered weak demand for its products.
The views expressed in this statement reflect those of the portfolio manager only through the end of the period of the report as stated on the cover and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Investment Changes
Geographic Diversification (% of fund's net assets) | |||
As of October 31, 2003 | |||
Japan | 19.5% | ||
United Kingdom | 12.8% | ||
Switzerland | 8.7% | ||
Germany | 8.6% | ||
India | 8.6% | ||
United States of America | 7.5% | ||
Netherlands | 6.0% | ||
Sweden | 4.9% | ||
Canada | 4.7% | ||
Other | 18.7% |
Percentages are adjusted for the effect of futures contracts, if applicable. |
As of April 30, 2003 | |||
Germany | 13.6% | ||
Netherlands | 11.6% | ||
Switzerland | 11.3% | ||
France | 10.7% | ||
Japan | 10.6% | ||
United Kingdom | 8.0% | ||
Spain | 7.6% | ||
United States of America | 6.2% | ||
Brazil | 4.5% | ||
Other | 15.9% |
Percentages are adjusted for the effect of futures contracts, if applicable. |
Asset Allocation | ||
% of fund's | % of fund's net assets | |
Stocks | 92.5 | 96.1 |
Short-Term Investments | 7.5 | 3.9 |
Top Ten Stocks as of October 31, 2003 | ||
% of fund's | % of fund's net assets | |
Nikko Cordial Corp. (Japan, Capital Markets) | 4.7 | 1.4 |
United Microelectronics Corp. (Taiwan, Semiconductors & Semiconductor Equipment) | 4.0 | 0.0 |
Telefonaktiebolaget LM Ericsson | 4.0 | 2.8 |
ASML Holding NV (NY Shares) (Netherlands, Semiconductors & Semiconductor Equipment) | 3.7 | 4.7 |
China Telecom Corp. Ltd. (H Shares) (China, Diversified Telecommunication Services) | 3.6 | 0.0 |
Nomura Holdings, Inc. (Japan, Capital Markets) | 3.3 | 2.7 |
Fresenius Medical Care AG (Germany, Health Care Providers & Services) | 2.8 | 2.2 |
Actelion Ltd. (Reg.) (Switzerland, Biotechnology) | 2.7 | 1.8 |
Deutsche Lufthansa AG (Reg.) (Germany, Airlines) | 2.4 | 0.0 |
HSBC Holdings PLC (United Kingdom) (Reg.) (United Kingdom, Commercial Banks) | 2.1 | 0.0 |
33.3 | ||
Market Sectors as of October 31, 2003 | ||
% of fund's | % of fund's net assets | |
Financials | 29.0 | 21.2 |
Information Technology | 18.2 | 17.8 |
Health Care | 13.0 | 19.0 |
Consumer Discretionary | 10.1 | 14.3 |
Telecommunication Services | 7.3 | 7.6 |
Consumer Staples | 4.6 | 8.3 |
Energy | 3.8 | 2.3 |
Industrials | 3.3 | 1.6 |
Materials | 3.2 | 4.0 |
Annual Report
Investments October 31, 2003
Showing Percentage of Net Assets
Common Stocks - 92.5% | |||
Shares | Value (Note 1) | ||
Brazil - 2.0% | |||
Aracruz Celulose SA sponsored ADR | 400,700 | $ 11,259,670 | |
Canada - 4.7% | |||
Biovail Corp. (a) | 289,100 | 6,955,064 | |
Precision Drilling Corp. (a) | 171,700 | 6,754,705 | |
Talisman Energy, Inc. | 140,300 | 6,851,663 | |
TELUS Corp. (non-vtg.) | 321,600 | 5,631,964 | |
TOTAL CANADA | 26,193,396 | ||
China - 3.6% | |||
China Telecom Corp. Ltd. (H Shares) | 59,950,000 | 19,878,857 | |
PICC Property & Casualty Co. Ltd. | 124,000 | 29,033 | |
TOTAL CHINA | 19,907,890 | ||
Denmark - 1.3% | |||
Coloplast AS Series B | 88,405 | 7,411,742 | |
France - 2.9% | |||
Business Objects SA (a) | 276,100 | 9,019,715 | |
Pernod-Ricard | 74,000 | 7,115,200 | |
TOTAL FRANCE | 16,134,915 | ||
Germany - 8.6% | |||
Allianz AG (Reg.) | 106,000 | 11,324,219 | |
Deutsche Boerse AG | 142,511 | 7,894,693 | |
Deutsche Lufthansa AG (Reg.) | 851,100 | 13,300,557 | |
Fresenius Medical Care AG | 270,300 | 15,358,979 | |
TOTAL GERMANY | 47,878,448 | ||
Hungary - 0.5% | |||
OTP Bank Rt. unit (a) | 106,600 | 2,617,030 | |
India - 8.6% | |||
Bank of Baroda | 1,388,500 | 5,854,862 | |
Bank of India | 4,056,446 | 5,544,943 | |
Cipla Ltd. | 94,990 | 2,722,055 | |
Dr. Reddy's Laboratories Ltd. | 245,688 | 6,479,397 | |
I-Flex Solutions Ltd. | 306,615 | 4,647,260 | |
Reliance Industries Ltd. | 727,700 | 7,808,484 | |
State Bank of India | 797,153 | 8,516,802 | |
State Bank of India GDR (Reg. S) | 198,800 | 5,973,940 | |
TOTAL INDIA | 47,547,743 | ||
Indonesia - 0.6% | |||
PT Bank Central Asia Tbk | 6,612,500 | 2,743,383 | |
PT Bank Rakyat Indonesia (a)(c) | 3,284,000 | 338,199 | |
TOTAL INDONESIA | 3,081,582 | ||
Italy - 1.4% | |||
Bulgari Spa | 855,400 | 7,738,236 | |
Japan - 19.5% | |||
Aeon Credit Service Ltd. | 124,600 | 5,768,728 | |
Canon, Inc. | 105,000 | 5,139,750 | |
Shares | Value (Note 1) | ||
Don Quijote Co. Ltd. | 85,800 | $ 4,612,316 | |
FamilyMart Co. Ltd. | 352,500 | 7,663,043 | |
Konica Minolta Holdings, Inc. | 488,000 | 6,414,044 | |
Nikko Cordial Corp. | 4,793,000 | 25,852,728 | |
Nitto Denko Corp. | 122,000 | 6,402,947 | |
Nomura Holdings, Inc. | 1,052,000 | 18,065,999 | |
Skylark Co. Ltd. | 262,500 | 4,324,063 | |
Sumitomo Mitsui Financial Group, Inc. | 1,506 | 7,575,204 | |
TDK Corp. | 97,000 | 6,352,556 | |
Tokyo Electron Ltd. | 72,400 | 5,189,303 | |
Tv Asahi Corp. | 2,935 | 4,671,866 | |
TOTAL JAPAN | 108,032,547 | ||
Korea (South) - 0.9% | |||
LG Card Co. Ltd. | 486,820 | 4,956,636 | |
Netherlands - 6.0% | |||
ASML Holding NV (NY Shares) (a) | 1,155,400 | 20,277,270 | |
Versatel Telecom International NV (a) | 2,768,800 | 6,350,882 | |
VNU NV | 193,500 | 5,872,994 | |
Wolters Kluwer NV | 60,600 | 848,743 | |
TOTAL NETHERLANDS | 33,349,889 | ||
Spain - 1.0% | |||
Banco Popular Espanol SA (Reg.) | 109,100 | 5,653,286 | |
Sweden - 4.9% | |||
Securitas AB (B Shares) | 426,200 | 5,223,573 | |
Telefonaktiebolaget LM Ericsson | 12,905,800 | 22,043,102 | |
TOTAL SWEDEN | 27,266,675 | ||
Switzerland - 8.7% | |||
Actelion Ltd. (Reg.) (a) | 155,731 | 14,752,974 | |
Credit Suisse Group (Reg.) | 293,760 | 10,309,867 | |
Novartis AG (Reg.) | 88,500 | 3,395,745 | |
Roche Holding AG | 38,450 | 3,169,271 | |
Serono SA Series B | 7,633 | 5,249,609 | |
The Swatch Group AG (Reg.) | 311,760 | 6,627,749 | |
UBS AG (Reg.) | 81,920 | 5,010,771 | |
TOTAL SWITZERLAND | 48,515,986 | ||
Taiwan - 4.0% | |||
United Microelectronics Corp. (a) | 24,097,308 | 22,087,423 | |
Turkey - 0.5% | |||
Akbank Turk Anonim Sirketi | 552,643,300 | 2,588,747 | |
United Kingdom - 12.8% | |||
British American Tobacco PLC | 845,700 | 10,209,798 | |
Collins Stewart Tullett PLC | 1,041,582 | 6,794,698 | |
EMAP PLC | 414,800 | 5,626,211 | |
HSBC Holdings PLC | 772,354 | 11,596,118 | |
Kingfisher PLC | 1,989,995 | 9,525,469 | |
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
United Kingdom - continued | |||
Man Group PLC | 226,200 | $ 5,553,630 | |
Signet Group PLC | 3,885,400 | 6,813,842 | |
Smith & Nephew PLC | 773,400 | 6,136,177 | |
Vodafone Group PLC | 4,206,700 | 8,897,174 | |
TOTAL UNITED KINGDOM | 71,153,117 | ||
TOTAL COMMON STOCKS (Cost $437,338,337) | 513,374,958 | ||
Money Market Funds - 7.3% | |||
Fidelity Cash Central Fund, 1.07% (b) | 19,361,741 | 19,361,741 | |
Fidelity Securities Lending Cash | 21,058,956 | 21,058,956 | |
TOTAL MONEY MARKET FUNDS (Cost $40,420,697) | 40,420,697 | ||
TOTAL INVESTMENT (Cost $477,759,034) | 553,795,655 | ||
NET OTHER ASSETS - 0.2% | 1,057,462 | ||
NET ASSETS - 100% | $ 554,853,117 |
Legend |
(a) Non-income producing |
(b) The rate quoted is the annualized seven-day yield of the fund at period end. A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request. |
(c) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
Other Information |
Purchases and sales of securities, other than short-term securities, aggregated $832,502,738 and $709,271,259, respectively. |
The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $119 for the period. |
Income Tax Information |
At October 31, 2003, the fund had a capital loss carryforward of approximately $84,118,000 of which $63,645,000 and $20,473,000 will expire on October 31, 2009 and 2010, respectively. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements
Statement of Assets and Liabilities
October 31, 2003 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $20,228,447) (cost $477,759,034) - See accompanying schedule | $ 553,795,655 | |
Foreign currency held at value | 5,578,799 | |
Receivable for investments sold | 20,399,588 | |
Receivable for fund shares sold | 1,171,289 | |
Dividends receivable | 418,766 | |
Interest receivable | 42,033 | |
Redemption fees receivable | 4 | |
Prepaid expenses | 2,450 | |
Other receivables | 59,102 | |
Total assets | 581,467,686 | |
Liabilities | ||
Payable for investments purchased | $ 4,062,317 | |
Delayed delivery | 341,581 | |
Payable for fund shares redeemed | 524,256 | |
Accrued management fee | 369,794 | |
Other payables and accrued expenses | 257,665 | |
Collateral on securities loaned, at value | 21,058,956 | |
Total liabilities | 26,614,569 | |
Net Assets | $ 554,853,117 | |
Net Assets consist of: | ||
Paid in capital | $ 559,734,322 | |
Undistributed net investment income | 3,405,781 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (84,170,201) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 75,883,215 | |
Net Assets, for 38,632,831 shares outstanding | $ 554,853,117 | |
Net Asset Value, offering price and redemption price per share ($554,853,117 ÷ 38,632,831 shares) | $ 14.36 |
Statement of Operations
Year ended October 31, 2003 | ||
Investment Income | ||
Dividends | $ 6,162,886 | |
Interest | 508,128 | |
Security lending | 291,819 | |
6,962,833 | ||
Less foreign taxes withheld | (646,422) | |
Total income | 6,316,411 | |
Expenses | ||
Management fee | $ 2,754,942 | |
Performance adjustment | 118,205 | |
Transfer agent fees | 1,253,003 | |
Accounting and security lending fees | 231,264 | |
Non-interested trustees' compensation | 1,467 | |
Custodian fees and expenses | 177,573 | |
Registration fees | 41,911 | |
Audit | 65,782 | |
Legal | 1,060 | |
Miscellaneous | 2,687 | |
Total expenses before reductions | 4,647,894 | |
Expense reductions | (239,101) | 4,408,793 |
Net investment income (loss) | 1,907,618 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities | 37,944,674 | |
Foreign currency transactions | (4,947) | |
Total net realized gain (loss) | 37,939,727 | |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of deferred foreign taxes of $112,082) | 77,729,790 | |
Assets and liabilities in foreign | 319,787 | |
Total change in net unrealized appreciation (depreciation) | 78,049,577 | |
Net gain (loss) | 115,989,304 | |
Net increase (decrease) in net assets resulting from operations | $ 117,896,922 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Aggressive International
Financial Statements - continued
Statement of Changes in Net Assets
Year ended | Year ended | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $ 1,907,618 | $ 341,594 |
Net realized gain (loss) | 37,939,727 | (19,521,357) |
Change in net unrealized appreciation (depreciation) | 78,049,577 | 8,778,554 |
Net increase (decrease) in net assets resulting from operations | 117,896,922 | (10,401,209) |
Distributions to shareholders from net investment income | (285,614) | (1,108,095) |
Share transactions | 284,514,275 | 208,162,125 |
Reinvestment of distributions | 266,849 | 1,055,971 |
Cost of shares redeemed | (146,077,268) | (102,437,026) |
Net increase (decrease) in net assets resulting from share transactions | 138,703,856 | 106,781,070 |
Redemption fees | 60,094 | 98,860 |
Total increase (decrease) in net assets | 256,375,258 | 95,370,626 |
Net Assets | ||
Beginning of period | 298,477,859 | 203,107,233 |
End of period (including undistributed net investment income of $3,405,781 and undistributed net investment income of $268,050, respectively) | $ 554,853,117 | $ 298,477,859 |
Other Information Shares | ||
Sold | 23,076,146 | 17,476,401 |
Issued in reinvestment of distributions | 24,685 | 88,812 |
Redeemed | (12,147,104) | (8,733,236) |
Net increase (decrease) | 10,953,727 | 8,831,977 |
Financial Highlights
Years ended October 31, | 2003 | 2002 | 2001 | 2000 | 1999 |
Selected Per-Share Data | |||||
Net asset value, beginning of period | $ 10.78 | $ 10.78 | $ 15.08 | $ 16.68 | $ 12.36 |
Income from Investment Operations | |||||
Net investment income (loss) B | .06 | .02 | .04 | .02 | .11 |
Net realized and unrealized gain (loss) | 3.53 | .04 C | (3.63) | (.65) | 4.26 |
Total from investment operations | 3.59 | .06 | (3.59) | (.63) | 4.37 |
Distributions from net investment income | (.01) | (.06) | (.02) | (.08) | (.05) |
Distributions from net realized gain | - | - | (.70) | (.90) | - |
Total distributions | (.01) | (.06) | (.72) | (.98) | (.05) |
Redemption fees added to paid in capital B | - E | - E | .01 | .01 | - |
Net asset value, end of period | $ 14.36 | $ 10.78 | $ 10.78 | $ 15.08 | $ 16.68 |
Total Return A | 33.33% | 0.50% | (24.71)% | (4.66)% | 35.47% |
Ratios to Average Net Assets D | |||||
Expenses before expense reductions | 1.23% | 1.54% | 1.16% | 1.21% | 1.21% |
Expenses net of voluntary waivers, if any | 1.23% | 1.54% | 1.16% | 1.21% | 1.21% |
Expenses net of all reductions | 1.16% | 1.40% | 1.02% | 1.16% | 1.14% |
Net investment income (loss) | .50% | .13% | .35% | .12% | .75% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $ 554,853 | $ 298,478 | $ 203,107 | $ 459,222 | $ 535,941 |
Portfolio turnover rate | 212% | 188% | 242% | 344% | 173% |
A Total returns would have been lower had certain expenses not been reduced during the periods shown. BCalculated based on average shares outstanding during the period. C The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the fund. D Expense ratios reflect operating expenses of the fund. 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 fund during periods when reimbursements or reductions occur. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the fund. E Amount represents less than $.01 per-share .
See accompanying notes which are an integral part of the financial statements.
Annual Report
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity a fund's total returns will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended | Past 1 | Past 5 | Past 10 |
Fidelity Overseas | 31.18% | 1.48% | 4.79% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Overseas Fund on October 31, 1993. The chart shows how the value of your investment would have grown, and also shows how the Morgan Stanley Capital International EAFE Index did over the same period.
Annual Report
Management's Discussion of Fund Performance
Comments from Rick Mace, Portfolio Manager of Fidelity Overseas Fund
Mirroring the U.S. rally, most international stock markets rebounded sharply during the 12-month period ending October 31, 2003. Encouraged
by improved corporate earnings, favorable interest rates and the easing of geopolitical tensions, the Morgan Stanley Capital International Europe, Australasia, Far East (MSCI EAFE) Index - a proxy for stock markets outside the United States and Canada - gained 27.39% during the past year. From a regional perspective, all 16 countries in the MSCI Europe index - which gained 24.56% - had double-digit advances. Spain, Denmark and Sweden were among the region's best performers. In Japan, increased capital spending, exports and machinery orders helped the Tokyo Stock Exchange Stock Price Index (TOPIX) advance 36.39%. Following the SARS epidemic, other Asian markets also rebounded. For instance, the Hong Kong market, as measured by the Hang Seng Index, gained 34.51%. Emerging markets also fared well, particularly Latin America. The MSCI Emerging Markets Free-Latin America index rose 59.75%. Canadian equities, as measured by the S&P/TSX Composite Index, also posted an impressive annual gain, advancing 50.66%.
For the 12 months ending October 31, 2003, Fidelity Overseas Fund returned 31.18%, topping the Lipper International Funds Average, which rose 24.51%, as well as the MSCI EAFE index. Good stock selection and an overweighting in diversified financial stocks made a significant contribution to the fund's solid performance relative to its benchmarks. In particular, large positions in strong-performing Japanese brokerage stocks, such as Nikko Cordial and Nomura Holdings, were helpful. Elsewhere, the fund's overweighting in the information technology sector boosted returns versus the index, as the tech sector rebounded from an extended period of weakness. The fund's holdings in the semiconductor area - including Infineon Technologies of Germany and ASML of the Netherlands - also were noteworthy contributors. On the down side, weak stock picking in the consumer staples sector hurt the fund's results, with a position in Netherlands-based food giant Unilever being its biggest detractor. A U.S. investigation into alleged accounting misdeeds caused the fund's positions in Dutch supermarket retailer Ahold to tumble. The fund's underweighting in strong-performing capital goods stocks also held back its relative return.
The views expressed in this statement reflect those of the portfolio manager only through the end of the period of the report as stated on the cover and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Investment Changes
Geographic Diversification (% of fund's net assets) | |||
As of October 31, 2003 | |||
Japan | 17.7% | ||
United Kingdom | 15.5% | ||
United States of America | 13.7% | ||
Germany | 8.4% | ||
France | 7.4% | ||
Netherlands | 6.6% | ||
Switzerland | 6.6% | ||
Canada | 3.7% | ||
Korea (South) | 2.8% | ||
Other | 17.6% |
Percentages are adjusted for the effect of futures contracts, if applicable. |
As of April 30, 2003 | |||
Japan | 20.2% | ||
United Kingdom | 14.8% | ||
United States of America | 10.7% | ||
Netherlands | 8.3% | ||
France | 8.3% | ||
Switzerland | 8.0% | ||
Germany | 7.1% | ||
Canada | 3.2% | ||
Spain | 2.9% | ||
Other | 16.5% |
Percentages are adjusted for the effect of futures contracts, if applicable. |
Asset Allocation | ||
% of fund's | % of fund's net assets | |
Stocks and Investment Companies | 90.1 | 95.9 |
Bonds | 0.6 | 0.5 |
Short-Term Investments | 9.3 | 3.6 |
Top Ten Stocks as of October 31, 2003 | ||
% of fund's | % of fund's net assets | |
ASML Holding NV (Netherlands, Semiconductors & Semiconductor Equipment) | 2.6 | 1.6 |
Samsung Electronics Co. Ltd. (Korea (South), Semiconductors & Semiconductor Equipment) | 2.5 | 1.8 |
Total SA Series B (France, Oil & Gas) | 2.4 | 2.3 |
Novartis AG (Reg.) (Switzerland, Pharmaceuticals) | 2.3 | 1.9 |
Allianz AG (Reg.) (Germany, Insurance) | 2.2 | 1.2 |
BP PLC (United Kingdom, Oil & Gas) | 1.8 | 1.7 |
Nomura Holdings, Inc. (Japan, Capital Markets) | 1.7 | 3.3 |
Vodafone Group PLC (United Kingdom, Wireless Telecommunication Services) | 1.7 | 2.5 |
Deutsche Boerse AG (Germany, Diversified Financial Services) | 1.6 | 1.4 |
Nokia Corp. (Finland, Communications Equipment) | 1.5 | 2.0 |
20.3 | ||
Market Sectors as of October 31, 2003 | ||
% of fund's | % of fund's net assets | |
Financials | 26.0 | 28.7 |
Information Technology | 17.5 | 17.9 |
Energy | 10.1 | 10.5 |
Consumer Discretionary | 9.7 | 9.6 |
Health Care | 9.0 | 9.8 |
Telecommunication Services | 7.3 | 7.4 |
Consumer Staples | 5.3 | 6.1 |
Materials | 3.4 | 4.0 |
Industrials | 2.1 | 2.2 |
Utilities | 0.3 | 0.2 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Investments October 31, 2003
Showing Percentage of Net Assets
Common Stocks - 89.5% | |||
Shares | Value (Note 1) | ||
Australia - 0.5% | |||
News Corp. Ltd. sponsored ADR | 566,800 | $ 16,720,600 | |
Bermuda - 0.0% | |||
Golar LNG Ltd. (a) | 131,800 | 1,529,368 | |
Brazil - 0.8% | |||
Banco Bradesco SA sponsored ADR | 135,300 | 2,839,947 | |
Banco Itau Holding Financeira SA (PN) | 38,774,000 | 3,178,751 | |
Brasil Telecom Participacoes SA sponsored ADR | 75,200 | 2,746,304 | |
Companhia Vale do Rio Doce sponsored ADR | 111,100 | 5,082,825 | |
Embraer - Empresa Brasileira de Aeronautica SA sponsored ADR | 143,600 | 3,726,420 | |
Tele Norte Leste Participacoes SA ADR | 220,400 | 3,123,068 | |
Telebras sponsored ADR | 193,800 | 6,674,472 | |
TOTAL BRAZIL | 27,371,787 | ||
Canada - 3.7% | |||
Biovail Corp. (a) | 445,300 | 10,712,868 | |
Canadian Natural Resources Ltd. | 286,400 | 12,161,954 | |
EnCana Corp. | 617,400 | 21,198,102 | |
Inmet Mining Corp. (a) | 413,000 | 3,740,023 | |
Kinross Gold Corp. (a)(e) | 678,290 | 5,561,103 | |
Kinross Gold Corp. (a) | 1,596,710 | 13,090,963 | |
Petro-Canada | 127,600 | 5,141,743 | |
Precision Drilling Corp. (a) | 262,400 | 10,322,858 | |
Talisman Energy, Inc. | 967,200 | 47,233,984 | |
TOTAL CANADA | 129,163,598 | ||
Cayman Islands - 0.4% | |||
Noble Corp. (a) | 389,000 | 13,354,370 | |
China - 0.5% | |||
Byd Co. Ltd. (H Shares) | 1,422,500 | 3,709,388 | |
China Telecom Corp. Ltd. (H Shares) | 38,444,000 | 12,747,669 | |
PICC Property & Casualty Co. Ltd. | 782,000 | 183,094 | |
TOTAL CHINA | 16,640,151 | ||
Denmark - 1.2% | |||
Coloplast AS Series B | 89,800 | 7,528,697 | |
Danske Bank AS | 1,252,400 | 25,176,419 | |
Novo Nordisk AS Series B | 226,500 | 8,118,153 | |
TOTAL DENMARK | 40,823,269 | ||
Finland - 1.5% | |||
Nokia Corp. | 3,138,210 | 53,318,193 | |
France - 7.4% | |||
Accor SA | 181,400 | 7,109,132 | |
Alcatel SA sponsored ADR (a) | 1,773,600 | 23,376,048 | |
AXA SA | 1,238,560 | 23,387,400 | |
BNP Paribas SA | 726,498 | 38,040,845 | |
Credit Agricole SA | 244,400 | 5,172,697 | |
Credit Agricole SA rights 11/7/03 (a) | 244,400 | 56,625 | |
France Telecom SA (a) | 552,700 | 13,330,532 | |
Shares | Value (Note 1) | ||
L'Oreal SA | 135,700 | $ 9,998,026 | |
Pernod-Ricard | 167,000 | 16,057,275 | |
Suez SA (France) | 266,500 | 4,260,432 | |
Television Francaise 1 SA | 402,400 | 12,026,935 | |
Total SA Series B | 549,769 | 85,840,934 | |
Vivendi Universal SA sponsored ADR (a) | 1,050,800 | 22,098,324 | |
TOTAL FRANCE | 260,755,205 | ||
Germany - 7.8% | |||
Allianz AG (Reg.) | 723,200 | 77,261,090 | |
Altana AG sponsored ADR | 131,600 | 8,264,480 | |
BASF AG | 431,500 | 19,724,917 | |
Deutsche Boerse AG | 987,865 | 54,724,835 | |
Deutsche Telekom AG sponsored ADR (a) | 1,308,400 | 20,424,124 | |
Fresenius Medical Care AG | 351,400 | 19,967,241 | |
Infineon Technologies AG (a) | 621,300 | 9,126,366 | |
Muenchener Rueckversicherungs-Gesellschaft AG: | |||
rights 11/10/03 (a) | 432,300 | 3,560,673 | |
(Reg.) | 432,300 | 51,376,860 | |
SAP AG sponsored ADR | 246,600 | 9,010,764 | |
TOTAL GERMANY | 273,441,350 | ||
Greece - 0.1% | |||
Greek Organization of Football Prognostics SA | 173,900 | 2,135,417 | |
Hong Kong - 2.1% | |||
Cheung Kong Holdings Ltd. | 502,000 | 4,185,704 | |
China Mobile (Hong Kong) Ltd. | 3,520,250 | 9,976,388 | |
Hong Kong Exchanges & Clearing Ltd. | 4,078,000 | 8,874,807 | |
Hutchison Whampoa Ltd. | 3,668,300 | 28,460,785 | |
Sun Hung Kai Properties Ltd. | 490,000 | 4,148,746 | |
Techtronic Industries Co. | 7,194,000 | 19,824,817 | |
TOTAL HONG KONG | 75,471,247 | ||
India - 1.9% | |||
Cipla Ltd. | 268,300 | 7,688,464 | |
Dr. Reddy's Laboratories Ltd. | 322,800 | 8,513,031 | |
Housing Development Finance Corp. Ltd. | 1,709,900 | 19,615,556 | |
Infosys Technologies Ltd. | 181,028 | 18,939,435 | |
Satyam Computer Services Ltd. | 1,873,800 | 12,656,006 | |
TOTAL INDIA | 67,412,492 | ||
Indonesia - 0.0% | |||
PT Bank Rakyat Indonesia (a)(f) | 20,495,000 | 2,110,657 | |
Italy - 1.3% | |||
Banca Intesa Spa | 2,296,125 | 7,729,803 | |
ENI Spa | 642,450 | 10,163,426 | |
Telecom Italia Spa | 5,434,018 | 14,132,361 | |
Unicredito Italiano Spa | 2,849,600 | 13,990,143 | |
TOTAL ITALY | 46,015,733 | ||
Japan - 17.7% | |||
Advantest Corp. | 28,000 | 2,085,865 | |
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
Japan - continued | |||
Aeon Credit Service Ltd. | 41,700 | $ 1,930,626 | |
Canon, Inc. | 470,000 | 23,006,499 | |
Daikin Industries Ltd. | 150,000 | 3,199,472 | |
Daiwa Securities Group, Inc. | 3,881,000 | 28,382,061 | |
FamilyMart Co. Ltd. | 441,600 | 9,600,000 | |
Ito Yokado Ltd. | 1,093,600 | 40,186,863 | |
JAFCO Co. Ltd. | 265,500 | 22,700,563 | |
KDDI Corp. | 4,237 | 23,007,903 | |
Konica Minolta Holdings, Inc. | 531,000 | 6,979,216 | |
Kyocera Corp. | 265,600 | 15,993,014 | |
Kyorin Pharmaceutical Co. Ltd. | 230,000 | 3,462,343 | |
Matsushita Electric Industrial Co. Ltd. | 1,249,800 | 16,397,375 | |
Millea Holdings, Inc. | 1,135 | 13,524,194 | |
Mitsubishi Tokyo Financial Group, Inc. (MTFG) | 2,747 | 20,162,979 | |
Mizuho Financial Group, Inc. (a) | 3,375 | 8,257,913 | |
Murata Manufacturing Co. Ltd. | 437,800 | 24,888,574 | |
Nikko Cordial Corp. | 7,763,000 | 41,872,465 | |
Nikon Corp. (a) | 460,000 | 6,983,263 | |
Nitto Denko Corp. | 92,500 | 4,854,693 | |
Nomura Holdings, Inc. | 3,499,000 | 60,088,336 | |
ORIX Corp. | 198,700 | 16,717,982 | |
Rohm Co. Ltd. | 238,700 | 32,176,949 | |
Seiyu Ltd. (a) | 1,591,000 | 5,137,393 | |
Shin-Etsu Chemical Co. Ltd. | 381,400 | 14,188,884 | |
SMC Corp. | 33,400 | 4,019,301 | |
Sony Corp. | 280,800 | 9,884,159 | |
Sumitomo Electric Industries Ltd. | 1,072,000 | 9,214,480 | |
Sumitomo Mitsui Financial Group, Inc. | 4,372 | 21,991,230 | |
TDK Corp. | 217,400 | 14,237,583 | |
Tokyo Electron Ltd. | 552,700 | 39,615,024 | |
Toshiba Corp. | 2,314,000 | 9,282,099 | |
Toyota Motor Corp. | 1,624,900 | 47,138,347 | |
UFJ Holdings, Inc. (a) | 2,465 | 10,538,020 | |
Uny Co. Ltd. | 657,000 | 6,836,529 | |
TOTAL JAPAN | 618,542,197 | ||
Korea (South) - 2.8% | |||
Kookmin Bank | 293,320 | 10,706,732 | |
Samsung Electronics Co. Ltd. | 218,940 | 86,946,979 | |
TOTAL KOREA (SOUTH) | 97,653,711 | ||
Mexico - 0.3% | |||
Grupo Televisa SA de CV sponsored ADR | 275,600 | 10,679,500 | |
Netherlands - 6.6% | |||
Aegon NV | 284,200 | 3,713,731 | |
ASML Holding NV (a) | 5,162,800 | 90,607,121 | |
ING Groep NV (Certificaten Van Aandelen) | 1,881,764 | 39,215,973 | |
Koninklijke Ahold NV (a) | 953,500 | 8,041,357 | |
Koninklijke KPN NV (a) | 1,566,500 | 11,868,216 | |
Koninklijke Philips Electronics NV | 715,100 | 19,193,284 | |
Shares | Value (Note 1) | ||
Unilever NV (NY Shares) | 616,900 | $ 36,181,185 | |
VNU NV | 710,200 | 21,555,557 | |
TOTAL NETHERLANDS | 230,376,424 | ||
Netherlands Antilles - 0.3% | |||
Schlumberger Ltd. (NY Shares) | 205,900 | 9,671,123 | |
Portugal - 0.2% | |||
Banco Comercial Portugues SA (Reg.) | 3,683,656 | 7,083,770 | |
Russia - 0.7% | |||
JSC MMC 'Norilsk Nickel' sponsored ADR | 118,950 | 6,096,188 | |
Lukoil Oil Co. sponsored ADR | 29,800 | 2,422,740 | |
OAO Gazprom sponsored ADR | 104,200 | 2,500,800 | |
YUKOS Corp. sponsored ADR | 275,271 | 12,717,520 | |
TOTAL RUSSIA | 23,737,248 | ||
South Africa - 0.2% | |||
Harmony Gold Mining Co. Ltd. sponsored ADR | 383,400 | 5,797,008 | |
Spain - 2.6% | |||
Actividades de Construccion y Servicios SA (ACS) | 71,000 | 2,979,093 | |
Altadis SA (Spain) | 660,500 | 15,961,159 | |
Antena 3 Television SA (a) | 4,526 | 147,332 | |
Banco Popular Espanol SA (Reg.) | 337,000 | 17,462,487 | |
Banco Santander Central Hispano SA | 2,332,016 | 22,287,572 | |
Inditex SA | 322,900 | 6,647,108 | |
Telefonica SA | 2,049,946 | 25,556,003 | |
TOTAL SPAIN | 91,040,754 | ||
Sweden - 1.6% | |||
Hennes & Mauritz AB (H&M) (B Shares) | 211,500 | 4,468,804 | |
Securitas AB (B Shares) | 672,900 | 8,247,166 | |
Telefonaktiebolaget LM Ericsson ADR (a) | 2,456,200 | 41,951,896 | |
TOTAL SWEDEN | 54,667,866 | ||
Switzerland - 6.6% | |||
Compagnie Financiere Richemont unit | 602,090 | 13,496,050 | |
Credit Suisse Group (Reg.) | 1,438,500 | 50,485,920 | |
Novartis AG (Reg.) | 2,056,400 | 78,904,065 | |
Roche Holding AG (participation certificate) | 474,110 | 39,078,886 | |
UBS AG (Reg.) | 635,816 | 38,890,730 | |
Zurich Financial Services AG | 71,465 | 9,115,706 | |
TOTAL SWITZERLAND | 229,971,357 | ||
Taiwan - 1.4% | |||
Compal Electronics, Inc. | 1,987,000 | 3,015,930 | |
Hon Hai Precision Industries Co. Ltd. | 1,569,000 | 7,028,824 | |
Taiwan Semiconductor Manufacturing Co. Ltd. (a) | 9,618,205 | 18,992,624 | |
United Microelectronics Corp. (a) | 22,258,000 | 20,401,526 | |
TOTAL TAIWAN | 49,438,904 | ||
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
Turkey - 0.0% | |||
Turkcell Iletisim Hizmet AS sponsored ADR (a) | 98,200 | $ 1,865,800 | |
United Kingdom - 14.9% | |||
3i Group PLC | 1,829,140 | 19,215,628 | |
Abbey National PLC | 1,474,800 | 14,062,566 | |
AstraZeneca PLC (United Kingdom) | 965,300 | 46,025,497 | |
Astro All Asia Networks PLC (a) | 1,543,600 | 1,917,314 | |
Aviva PLC | 550,300 | 4,508,291 | |
BHP Billiton PLC | 2,100,400 | 16,468,892 | |
BOC Group PLC | 535,000 | 7,283,760 | |
BP PLC | 9,124,300 | 64,447,912 | |
Carlton Communications PLC | 2,579,703 | 9,441,465 | |
Centrica PLC | 1,835,200 | 5,737,144 | |
Dixons Group PLC | 5,219,800 | 12,006,313 | |
GlaxoSmithKline PLC | 1,813,864 | 39,261,076 | |
Hilton Group PLC | 3,080,900 | 10,127,337 | |
HSBC Holdings PLC (United Kingdom) (Reg.) | 2,885,221 | 43,318,690 | |
Kesa Electricals PLC | 2,093,736 | 8,656,208 | |
Lloyds TSB Group PLC | 1,092,500 | 7,575,758 | |
Man Group PLC | 880,200 | 21,610,544 | |
Marks & Spencer Group PLC | 2,686,100 | 13,096,446 | |
mmO2 PLC (a) | 5,692,800 | 6,173,363 | |
Pearson PLC | 508,900 | 5,259,909 | |
Prudential PLC | 1,080,200 | 8,369,005 | |
Reckitt Benckiser PLC | 543,700 | 11,423,441 | |
Reed Elsevier PLC | 998,200 | 7,746,383 | |
Rio Tinto PLC (Reg.) | 596,200 | 14,763,405 | |
Royal Bank of Scotland Group PLC | 469,500 | 12,561,273 | |
Shire Pharmaceuticals Group PLC sponsored ADR (a) | 417,300 | 9,556,170 | |
Smith & Nephew PLC | 1,257,900 | 9,980,214 | |
Tesco PLC | 4,122,550 | 16,502,650 | |
Unilever PLC sponsored ADR | 293,200 | 10,027,440 | |
Vodafone Group PLC | 27,421,603 | 57,996,715 | |
William Hill PLC | 397,600 | 2,283,821 | |
Yell Group PLC (a) | 855,500 | 4,160,235 | |
TOTAL UNITED KINGDOM | 521,564,865 | ||
United States of America - 4.4% | |||
Baker Hughes, Inc. | 412,500 | 11,657,250 | |
ENSCO International, Inc. | 536,900 | 14,147,315 | |
Fox Entertainment Group, Inc. Class A (a) | 254,300 | 7,044,110 | |
Grant Prideco, Inc. (a) | 798,900 | 9,059,526 | |
Micron Technology, Inc. (a) | 494,900 | 7,096,866 | |
Motorola, Inc. | 2,578,300 | 34,884,399 | |
Nabors Industries Ltd. (a) | 79,300 | 2,997,540 | |
NTL, Inc. (a) | 494,520 | 30,526,720 | |
Pride International, Inc. (a) | 72,600 | 1,189,188 | |
Smith International, Inc. (a) | 46,600 | 1,734,918 | |
Synthes-Stratec, Inc. | 8,138 | 7,442,330 | |
Transocean, Inc. (a) | 452,300 | 8,679,637 | |
Shares | Value (Note 1) | ||
Tyco International Ltd. | 413,400 | $ 8,631,792 | |
Weatherford International Ltd. (a) | 234,000 | 8,131,500 | |
TOTAL UNITED STATES OF AMERICA | 153,223,091 | ||
TOTAL COMMON STOCKS (Cost $2,905,069,800) | 3,131,577,055 | ||
Nonconvertible Preferred Stocks - 0.6% | |||
Germany - 0.6% | |||
Fresenius Medical Care AG | 250,612 | 10,248,348 | |
Porsche AG (non-vtg.) | 24,200 | 11,845,133 | |
TOTAL NONCONVERTIBLE PREFERRED (Cost $20,129,551) | 22,093,481 |
Nonconvertible Bonds - 0.6% | ||||
Principal Amount | ||||
United Kingdom - 0.6% | ||||
Telewest Communications PLC yankee: | ||||
0% 4/15/09 (c)(d) | $ 3,445,000 | 1,524,413 | ||
0% 2/1/10 (c)(d) | 1,300,000 | 523,250 | ||
9.875% 2/1/10 (c) | 8,915,000 | 4,591,225 | ||
Telewest PLC: | ||||
11% 10/1/07 (c) | 17,191,000 | 9,283,140 | ||
yankee 9.625% 10/1/06 (c) | 6,135,000 | 3,251,550 | ||
TOTAL NONCONVERTIBLE BONDS (Cost $17,557,107) | 19,173,578 |
Money Market Funds - 12.1% | |||
Shares | |||
Fidelity Cash Central Fund, 1.07% (b) | 347,035,797 | 347,035,797 | |
Fidelity Securities Lending Cash Central Fund, 1.09% (b) | 76,896,096 | 76,896,096 | |
TOTAL MONEY MARKET FUNDS (Cost $423,931,893) | 423,931,893 | ||
TOTAL INVESTMENT PORTFOLIO - 102.8% (Cost $3,366,688,351) | 3,596,776,007 | ||
NET OTHER ASSETS - (2.8)% | (96,381,914) | ||
NET ASSETS - 100% | $ 3,500,394,093 |
Legend |
(a) Non-income producing |
(b) The rate quoted is the annualized seven-day yield of the fund at period end. A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request. |
(c) Non-income producing - issuer filed for bankruptcy or is in default of interest payments. |
(d) Debt obligation initially issued in zero coupon form which converts to coupon form at a specified rate and date. The rate shown is the rate 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 period end, the value of these securities amounted to $5,561,103 or 0.2% of net assets. |
(f) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
Other Information |
Purchases and sales of securities, other than short-term securities, aggregated $2,852,160,882 and $3,193,347,713, respectively. |
The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $2,964 for the period. |
Income Tax Information |
At October 31, 2003, the fund had a capital loss carryforward of approximately $696,627,000 of which $375,007,000 and $321,620,000 will expire on October 31, 2009 and 2010, respectively. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements
Statement of Assets and Liabilities
October 31, 2003 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $73,248,280) (cost $3,366,688,351) - See accompanying schedule | $ 3,596,776,007 | |
Foreign currency held at value | 22,096,977 | |
Receivable for investments sold | 116,226 | |
Receivable for fund shares sold | 7,493,221 | |
Dividends receivable | 3,958,838 | |
Interest receivable | 146,610 | |
Redemption fees receivable | 277 | |
Prepaid expenses | 15,917 | |
Other receivables | 86,640 | |
Total assets | 3,630,690,713 | |
Liabilities | ||
Payable for investments purchased | $ 41,308,913 | |
Delayed delivery | 2,131,764 | |
Payable for fund shares redeemed | 3,363,978 | |
Accrued management fee | 1,944,936 | |
Other payables and accrued expenses | 4,650,933 | |
Collateral on securities loaned, at value | 76,896,096 | |
Total liabilities | 130,296,620 | |
Net Assets | $ 3,500,394,093 | |
Net Assets consist of: | ||
Paid in capital | $ 4,000,293,783 | |
Undistributed net investment income | 27,195,811 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (753,734,926) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 226,639,425 | |
Net Assets, for 119,934,490 shares outstanding | $ 3,500,394,093 | |
Net Asset Value, offering price and redemption price per share ($3,500,394,093 ÷ 119,934,490 shares) | $ 29.19 |
Statement of Operations
Year ended October 31, 2003 | ||
Investment Income | ||
Dividends | $ 52,689,668 | |
Interest | 3,070,237 | |
Security lending | 1,690,130 | |
57,450,035 | ||
Less foreign taxes withheld | (5,423,458) | |
Total income | 52,026,577 | |
Expenses | ||
Management fee | $ 21,761,577 | |
Performance adjustment | (3,257,571) | |
Transfer agent fees | 9,924,174 | |
Accounting and security lending fees | 1,384,818 | |
Non-interested trustees' compensation | 12,115 | |
Appreciation in deferred trustee compensation account | 581 | |
Custodian fees and expenses | 1,012,755 | |
Registration fees | 41,046 | |
Audit | 106,164 | |
Legal | 9,811 | |
Miscellaneous | 23,228 | |
Total expenses before reductions | 31,018,698 | |
Expense reductions | (1,233,038) | 29,785,660 |
Net investment income (loss) | 22,240,917 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities (net of foreign taxes of $1,223,106) | 255,134,882 | |
Foreign currency transactions | 150,892 | |
Total net realized gain (loss) | 255,285,774 | |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of deferred foreign taxes of $3,777,060) | 574,526,168 | |
Assets and liabilities in foreign currencies | 262,295 | |
Total change in net unrealized appreciation (depreciation) | 574,788,463 | |
Net gain (loss) | 830,074,237 | |
Net increase (decrease) in net assets resulting from operations | $ 852,315,154 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Overseas
Financial Statements - continued
Statement of Changes in Net Assets
Year ended | Year ended | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $ 22,240,917 | $ 14,288,562 |
Net realized gain (loss) | 255,285,774 | (326,686,395) |
Change in net unrealized appreciation (depreciation) | 574,788,463 | (158,285,425) |
Net increase (decrease) in net assets resulting from operations | 852,315,154 | (470,683,258) |
Distributions to shareholders from net investment income | (11,619,951) | - |
Share transactions | 809,756,739 | 884,200,436 |
Reinvestment of distributions | 11,360,177 | - |
Cost of shares redeemed | (1,023,806,660) | (944,486,865) |
Net increase (decrease) in net assets resulting from share transactions | (202,689,744) | (60,286,429) |
Redemption fees | 287,198 | 331,117 |
Total increase (decrease) in net assets | 638,292,657 | (530,638,570) |
Net Assets | ||
Beginning of period | 2,862,101,436 | 3,392,740,006 |
End of period (including undistributed net investment income of $27,195,811 and undistributed | $ 3,500,394,093 | $ 2,862,101,436 |
Other Information Shares | ||
Sold | 34,162,410 | 33,973,801 |
Issued in reinvestment of distributions | 499,568 | - |
Redeemed | (42,842,235) | (36,467,283) |
Net increase (decrease) | (8,180,257) | (2,493,482) |
Financial Highlights
Years ended October 31, | 2003 | 2002 | 2001 | 2000 | 1999 |
Selected Per-Share Data | |||||
Net asset value, beginning of period | $ 22.34 | $ 25.98 | $ 40.72 | $ 42.84 | $ 33.95 |
Income from Investment Operations | |||||
Net investment income (loss) B | .18 | .11 | .20 | .25 C | .32 |
Net realized and unrealized gain (loss) | 6.76 | (3.75) | (9.96) | .71 | 9.28 |
Total from investment operations | 6.94 | (3.64) | (9.76) | .96 | 9.60 |
Distributions from net investment income | (.09) | - | (.86) | (.45) | (.20) |
Distributions from net realized gain | - | - | (4.12) | (2.63) | (.51) |
Total distributions | (.09) | - | (4.98) | (3.08) | (.71) |
Redemption fees added to paid in capital B | - E | - E | - E | - E | - |
Net asset value, end of period | $ 29.19 | $ 22.34 | $ 25.98 | $ 40.72 | $ 42.84 |
Total Return A | 31.18% | (14.01)% | (27.21)% | 1.78% | 28.77% |
Ratios to Average Net Assets D | |||||
Expenses before expense reductions | 1.04% | 1.21% | 1.18% | 1.19% | 1.27% |
Expenses net of voluntary waivers, if any | 1.04% | 1.21% | 1.18% | 1.19% | 1.27% |
Expenses net of all reductions | 1.00% | 1.16% | 1.12% | 1.16% | 1.23% |
Net investment income (loss) | .75% | .42% | .63% | .55% | .85% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $ 3,500,394 | $ 2,862,101 | $ 3,392,740 | $ 4,858,872 | $ 4,482,044 |
Portfolio turnover rate | 104% | 72% | 95% | 132% | 85% |
A Total returns would have been lower had certain expenses not been reduced during the periods shown. B Calculated based on average shares outstanding during the period. C Investment income per share reflects a special dividend which amounted to $.08 per share. D Expense ratios reflect operating expenses of the fund. 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 fund during periods when reimbursements or reductions occur. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the fund. E Amount represents less than $.01 per-share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity a fund's total returns will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended | Past 1 | Past 5 | Past 10 |
Fidelity Worldwide | 28.68% | 5.29% | 6.82% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Worldwide Fund on October 31, 1993. The chart shows how the value of your investment would have grown, and also shows how the Morgan Stanley Capital International World Index did over the same period.
Annual Report
Management's Discussion of Fund Performance
Comments from Rick Mace and Brian Hogan, Portfolio Managers of Fidelity Worldwide Fund
Mirroring the U.S. rally, most international stock markets rebounded sharply during the 12-month period ending October 31, 2003. Encouraged
by improved corporate earnings, favorable interest rates and the easing of geopolitical tensions, the Morgan Stanley Capital International Europe, Australasia, Far East (MSCI EAFE) Index - a proxy for stock markets outside the United States and Canada - gained 27.39% during the past year. From a regional perspective, all 16 countries in the MSCI Europe index - which gained 24.56% - had double-digit advances. Spain, Denmark and Sweden were among the region's best performers. In Japan, increased capital spending, exports and machinery orders helped the Tokyo Stock Exchange Stock Price Index (TOPIX) advance 36.39%. Following the SARS epidemic, other Asian markets also rebounded. For instance, the Hong Kong market, as measured by the Hang Seng Index, gained 34.51%. Emerging markets also fared well, particularly Latin America. The MSCI Emerging Markets Free-Latin America index rose 59.75%. Canadian equities, as measured by the S&P/TSX Composite Index, also posted an impressive annual gain, advancing 50.66%.
For the 12 months ending October 31, 2003, Fidelity Worldwide Fund returned 28.68%, topping the 24.24% return for the Morgan Stanley Capital International World Index and the 23.59% return for the Lipper Global Funds Average. Good stock picking in the U.S. equity markets and among stocks overseas was the major reason the fund outperformed its benchmarks. In particular, an overweighting in strong-performing Japanese brokerage stocks, such as Nikko Cordial, Nomura Holdings and Daiwa Securities, made a strong contribution to the fund's results. Investing in some financially troubled companies - - including industrial conglomerate Tyco International and U.S. power utility AES - paid off, as the market rewarded these stocks when the companies' credit profiles improved. In terms of disappointments, overweighting some poor-performing consumer staples stocks, such as Anglo-Dutch consumer staples manufacturer Unilever and Netherlands-based supermarket chain Ahold, hurt the fund's performance. Elsewhere, the fund's underexposure to some very strong-performing, large-cap technology bellwethers in the United States, such as Cisco Systems, Intel and EMC, also detracted.
The views expressed in this statement reflect those of the portfolio managers only through the end of the period of the report as stated on the cover and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Investment Changes
Geographic Diversification (% of fund's net assets) | |||
As of October 31, 2003 | |||
United States of America | 60.3% | ||
Japan | 7.8% | ||
United Kingdom | 7.0% | ||
Germany | 4.5% | ||
France | 3.1% | ||
Netherlands | 3.0% | ||
Switzerland | 2.0% | ||
Canada | 1.7% | ||
Korea (South) | 1.5% | ||
Other | 9.1% |
Percentages are adjusted for the effect of futures contracts, if applicable. |
As of April 30, 2003 | |||
United States of America | 58.7% | ||
Japan | 8.6% | ||
United Kingdom | 7.1% | ||
Germany | 4.8% | ||
France | 3.8% | ||
Netherlands | 2.8% | ||
Switzerland | 2.7% | ||
Canada | 1.7% | ||
Spain | 1.2% | ||
Other | 8.6% |
Percentages are adjusted for the effect of futures contracts, if applicable. |
Asset Allocation | ||
% of fund's | % of fund's net assets | |
Stocks | 96.9 | 99.8 |
Bonds | 0.5 | 0.2 |
Short-Term Investments | 2.6 | 0.0 |
Top Ten Stocks as of October 31, 2003 | ||
% of fund's | % of fund's net assets | |
Microsoft Corp. (United States of America, Software) | 1.8 | 1.6 |
Deutsche Boerse AG (Germany, Diversified Financial Services) | 1.5 | 1.5 |
Tyco International Ltd. (United States of America, Industrial Conglomerates) | 1.4 | 1.6 |
American International Group, Inc. (United States of America, Insurance) | 1.4 | 1.4 |
Samsung Electronics Co. Ltd. (Korea (South), Semiconductors & Semiconductor Equipment) | 1.3 | 0.9 |
General Electric Co. (United States of America, Industrial Conglomerates) | 1.3 | 2.4 |
Home Depot, Inc. (United States of America, Specialty Retail) | 1.2 | 1.2 |
Pfizer, Inc. (United States of America, Pharmaceuticals) | 1.1 | 1.5 |
Merck & Co., Inc. (United States of America, Pharmaceuticals) | 1.1 | 1.9 |
ASML Holding NV (NY Shares) (Netherlands, Semiconductors & Semiconductor Equipment) | 1.0 | 1.1 |
13.1 | ||
Market Sectors as of October 31, 2003 | ||
% of fund's | % of fund's net assets | |
Financials | 23.3 | 24.8 |
Information Technology | 18.2 | 14.9 |
Consumer Discretionary | 11.5 | 12.6 |
Health Care | 10.8 | 12.9 |
Industrials | 9.2 | 10.3 |
Consumer Staples | 6.8 | 5.7 |
Energy | 6.6 | 8.5 |
Telecommunication Services | 5.0 | 4.4 |
Materials | 4.5 | 4.1 |
Utilities | 1.5 | 1.8 |
Annual Report
Investments October 31, 2003
Showing Percentage of Net Assets
Common Stocks - 96.4% | |||
Shares | Value (Note 1) | ||
Australia - 0.3% | |||
News Corp. Ltd. ADR | 62,300 | $ 2,220,995 | |
Belgium - 0.1% | |||
Fortis | 56,600 | 1,005,817 | |
Bermuda - 0.3% | |||
ACE Ltd. | 65,000 | 2,340,000 | |
Brazil - 0.4% | |||
Banco Bradesco SA sponsored ADR | 11,400 | 239,286 | |
Banco Itau Holding Financeira SA (PN) | 3,275,000 | 268,489 | |
Brasil Telecom Participacoes SA sponsored ADR | 6,400 | 233,728 | |
Companhia Vale do Rio Doce | 11,200 | 512,400 | |
Embraer - Empresa Brasileira de Aeronautica SA sponsored ADR | 52,000 | 1,349,400 | |
Tele Norte Leste Participacoes SA ADR | 18,600 | 263,562 | |
Telebras sponsored ADR | 17,900 | 616,476 | |
TOTAL BRAZIL | 3,483,341 | ||
Canada - 1.7% | |||
Angiotech Pharmaceuticals, Inc. (a) | 10,000 | 458,172 | |
Biovail Corp. (a) | 36,600 | 880,510 | |
Canadian Natural Resources Ltd. | 45,400 | 1,927,907 | |
Celestica, Inc. (sub. vtg.) (a) | 15,000 | 212,742 | |
EnCana Corp. | 69,900 | 2,399,980 | |
Inmet Mining Corp. (a) | 69,500 | 629,374 | |
Kinross Gold Corp. (a)(e) | 87,700 | 719,027 | |
Kinross Gold Corp. (a) | 177,300 | 1,453,631 | |
Petro-Canada | 25,800 | 1,039,631 | |
Precision Drilling Corp. (a) | 26,800 | 1,054,316 | |
Talisman Energy, Inc. | 78,200 | 3,818,959 | |
TOTAL CANADA | 14,594,249 | ||
Cayman Islands - 0.3% | |||
Garmin Ltd. | 10,000 | 500,300 | |
GlobalSantaFe Corp. | 65,000 | 1,463,150 | |
Seagate Technology | 30,000 | 689,400 | |
TOTAL CAYMAN ISLANDS | 2,652,850 | ||
China - 0.3% | |||
Byd Co. Ltd. (H Shares) | 268,000 | 698,851 | |
China Telecom Corp. Ltd. (H Shares) | 5,804,000 | 1,924,552 | |
PICC Property & Casualty Co. Ltd. | 188,000 | 44,017 | |
TOTAL CHINA | 2,667,420 | ||
Denmark - 0.6% | |||
Coloplast AS Series B | 16,600 | 1,391,719 | |
Danske Bank AS | 143,100 | 2,876,673 | |
Novo Nordisk AS Series B | 28,700 | 1,028,658 | |
TOTAL DENMARK | 5,297,050 | ||
Shares | Value (Note 1) | ||
Finland - 0.9% | |||
Nokia Corp. sponsored ADR | 443,300 | $ 7,531,667 | |
France - 3.1% | |||
Accor SA | 26,200 | 1,026,788 | |
Alcatel SA sponsored ADR (a) | 187,900 | 2,476,522 | |
AXA SA | 131,000 | 2,473,638 | |
BNP Paribas SA | 80,320 | 4,205,711 | |
CNP Assurances | 7,300 | 331,756 | |
France Telecom SA sponsored ADR | 59,700 | 1,447,128 | |
L'Oreal SA | 13,700 | 1,009,381 | |
Pernod-Ricard | 28,100 | 2,701,853 | |
Television Francaise 1 SA | 35,800 | 1,069,991 | |
Total SA Series B | 47,924 | 7,482,854 | |
Vivendi Universal SA sponsored ADR (a) | 106,600 | 2,241,798 | |
TOTAL FRANCE | 26,467,420 | ||
Germany - 4.0% | |||
Allianz AG (Reg.) | 70,300 | 7,510,308 | |
Altana AG sponsored ADR | 5,000 | 314,000 | |
BASF AG | 28,200 | 1,289,091 | |
Deutsche Boerse AG | 228,143 | 12,638,456 | |
Deutsche Telekom AG sponsored ADR (a) | 100,500 | 1,568,805 | |
Fresenius Medical Care AG | 46,200 | 2,625,175 | |
Infineon Technologies AG | 47,500 | 698,250 | |
Muenchener Rueckversicherungs-Gesellschaft AG: | |||
rights 11/10/03 (a) | 46,100 | 379,706 | |
(Reg.) | 46,100 | 5,478,772 | |
SAP AG sponsored ADR | 30,000 | 1,096,200 | |
TOTAL GERMANY | 33,598,763 | ||
Greece - 0.1% | |||
Greek Organization of Football Prognostics SA | 43,180 | 530,232 | |
Hong Kong - 0.9% | |||
Cheung Kong Holdings Ltd. | 25,000 | 208,451 | |
China Mobile (Hong Kong) Ltd. | 373,250 | 1,057,790 | |
Hong Kong Exchanges & Clearing Ltd. | 550,000 | 1,196,945 | |
Hutchison Whampoa Ltd. | 401,000 | 3,111,189 | |
Sun Hung Kai Properties Ltd. | 25,000 | 211,671 | |
Techtronic Industries Co. | 620,000 | 1,708,561 | |
TOTAL HONG KONG | 7,494,607 | ||
India - 0.7% | |||
Cipla Ltd. | 36,600 | 1,048,818 | |
Dr. Reddy's Laboratories Ltd. | 31,000 | 817,546 | |
Housing Development Finance Corp. Ltd. | 153,800 | 1,764,356 | |
Infosys Technologies Ltd. | 15,920 | 1,665,576 | |
Satyam Computer Services Ltd. | 161,800 | 1,092,828 | |
TOTAL INDIA | 6,389,124 | ||
Indonesia - 0.1% | |||
PT Bank Rakyat Indonesia (a)(f) | 4,936,500 | 508,381 | |
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
Italy - 0.6% | |||
Banca Intesa Spa | 257,787 | $ 867,829 | |
ENI Spa | 64,800 | 1,025,123 | |
Telecom Italia Spa ADR (a) | 71,787 | 1,859,283 | |
Unicredito Italiano Spa | 327,000 | 1,605,410 | |
TOTAL ITALY | 5,357,645 | ||
Japan - 7.8% | |||
Advantest Corp. | 3,700 | 275,632 | |
Aeon Credit Service Ltd. | 5,300 | 245,379 | |
Canon, Inc. | 48,000 | 2,349,600 | |
Daikin Industries Ltd. | 37,000 | 789,203 | |
Daiwa Securities Group, Inc. | 168,000 | 1,228,597 | |
FamilyMart Co. Ltd. | 43,500 | 945,652 | |
Ito Yokado Ltd. | 143,000 | 5,254,866 | |
JAFCO Co. Ltd. | 20,600 | 1,761,324 | |
KDDI Corp. | 407 | 2,210,105 | |
Konica Minolta Holdings, Inc. | 109,000 | 1,432,645 | |
Kyocera Corp. | 24,100 | 1,451,173 | |
Kyorin Pharmaceutical Co. Ltd. | 39,000 | 587,093 | |
Matsushita Electric Industrial Co. Ltd. | 165,000 | 2,164,800 | |
Millea Holdings, Inc. | 110 | 1,310,715 | |
Mitsubishi Tokyo Financial | 265 | 1,945,100 | |
Mizuho Financial Group, Inc. (a) | 333 | 814,781 | |
Murata Manufacturing Co. Ltd. | 62,400 | 3,547,389 | |
Nichicon Corp. | 115,000 | 1,336,820 | |
Nikko Cordial Corp. | 736,000 | 3,969,874 | |
Nikon Corp. (a) | 49,000 | 743,869 | |
Nitto Denko Corp. | 22,600 | 1,186,120 | |
Nomura Holdings, Inc. | 217,000 | 3,726,542 | |
ORIX Corp. | 28,900 | 2,431,553 | |
Rohm Co. Ltd. | 28,800 | 3,882,263 | |
Seiyu Ltd. (a) | 100,000 | 322,903 | |
Shin-Etsu Chemical Co. Ltd. | 64,400 | 2,395,816 | |
SMC Corp. | 8,000 | 962,707 | |
Sony Corp. | 27,300 | 960,960 | |
Sumitomo Electric Industries Ltd. | 156,000 | 1,340,913 | |
Sumitomo Mitsui Financial Group, Inc. | 274 | 1,378,224 | |
TDK Corp. | 23,600 | 1,545,570 | |
Tokyo Electron Ltd. | 83,700 | 5,999,236 | |
Toshiba Corp. | 175,000 | 701,974 | |
Toyota Motor Corp. | 138,600 | 4,020,786 | |
UFJ Holdings, Inc. (a) | 169 | 722,485 | |
Uny Co. Ltd. | 63,000 | 655,558 | |
TOTAL JAPAN | 66,598,227 | ||
Korea (South) - 1.5% | |||
Kookmin Bank | 35,820 | 1,307,497 | |
Samsung Electronics Co. Ltd. | 28,030 | 11,131,469 | |
TOTAL KOREA (SOUTH) | 12,438,966 | ||
Shares | Value (Note 1) | ||
Mexico - 0.2% | |||
Grupo Televisa SA de CV sponsored ADR | 34,400 | $ 1,333,000 | |
Netherlands - 3.0% | |||
Aegon NV | 82,300 | 1,075,440 | |
ASML Holding NV (NY Shares) (a) | 486,200 | 8,532,810 | |
Chicago Bridge & Iron Co. NV | 25,000 | 681,250 | |
ING Groep NV (Certificaten | 240,500 | 5,012,021 | |
Koninklijke Ahold NV (a) | 96,500 | 813,834 | |
Koninklijke KPN NV sponsored ADR (a) | 170,800 | 1,287,832 | |
Koninklijke Philips Electronics NV | 70,808 | 1,900,487 | |
Unilever NV (NY Shares) | 77,100 | 4,521,915 | |
VNU NV | 62,200 | 1,887,856 | |
TOTAL NETHERLANDS | 25,713,445 | ||
Portugal - 0.1% | |||
Banco Comercial Portugues SA (Reg.) | 280,700 | 539,794 | |
Russia - 0.4% | |||
JSC MMC 'Norilsk Nickel' | 10,300 | 527,875 | |
Lukoil Oil Co. sponsored ADR | 3,000 | 243,900 | |
OAO Gazprom sponsored ADR | 10,500 | 252,000 | |
YUKOS Corp. sponsored ADR | 47,277 | 2,184,197 | |
TOTAL RUSSIA | 3,207,972 | ||
Singapore - 0.2% | |||
Flextronics International Ltd. (a) | 100,000 | 1,400,000 | |
South Africa - 0.1% | |||
Harmony Gold Mining Co. Ltd. sponsored ADR | 77,300 | 1,168,776 | |
Spain - 0.9% | |||
Actividades de Construccion y | 11,500 | 482,529 | |
Altadis SA (Spain) | 101,000 | 2,440,692 | |
Banco Santander Central Hispano SA | 197,300 | 1,885,638 | |
Inditex SA | 44,800 | 922,237 | |
Telefonica SA sponsored ADR | 48,700 | 1,821,380 | |
TOTAL SPAIN | 7,552,476 | ||
Sweden - 0.9% | |||
Hennes & Mauritz AB (H&M) (B Shares) | 43,200 | 912,777 | |
Securitas AB (B Shares) | 91,300 | 1,118,987 | |
Telefonaktiebolaget LM Ericsson ADR (a) | 337,300 | 5,761,084 | |
TOTAL SWEDEN | 7,792,848 | ||
Switzerland - 2.0% | |||
Alcon, Inc. | 20,000 | 1,102,200 | |
Compagnie Financiere Richemont unit | 37,090 | 831,385 | |
Credit Suisse Group (Reg.) | 115,755 | 4,062,564 | |
Novartis AG sponsored ADR | 114,300 | 4,385,691 | |
Roche Holding AG | 31,582 | 2,603,171 | |
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
Switzerland - continued | |||
UBS AG (NY Shares) | 36,720 | $ 2,252,405 | |
Zurich Financial Services AG | 17,000 | 2,168,432 | |
TOTAL SWITZERLAND | 17,405,848 | ||
Taiwan - 0.6% | |||
Hon Hai Precision Industries Co. Ltd. | 246,000 | 1,102,034 | |
Taiwan Semiconductor | 974,942 | 1,925,173 | |
United Microelectronics Corp. (a) | 2,195,000 | 2,011,922 | |
TOTAL TAIWAN | 5,039,129 | ||
Turkey - 0.1% | |||
Turkcell Iletisim Hizmet AS | 23,700 | 450,300 | |
United Kingdom - 6.5% | |||
3i Group PLC | 333,000 | 3,498,258 | |
Abbey National PLC | 158,500 | 1,511,335 | |
AstraZeneca PLC sponsored ADR | 83,000 | 3,957,440 | |
Astro All Asia Networks PLC (a) | 368,700 | 457,964 | |
Aviva PLC | 74,200 | 607,878 | |
BHP Billiton PLC | 317,000 | 2,485,545 | |
BOC Group PLC | 58,300 | 793,726 | |
BP PLC sponsored ADR | 146,200 | 6,195,956 | |
Carlton Communications PLC | 318,700 | 1,166,411 | |
Centrica PLC | 322,300 | 1,007,564 | |
Dixons Group PLC | 698,400 | 1,606,423 | |
GlaxoSmithKline PLC sponsored ADR | 55,800 | 2,415,582 | |
Hilton Group PLC | 387,200 | 1,272,779 | |
HSBC Holdings PLC sponsored ADR | 52,500 | 3,941,175 | |
Kesa Electricals PLC | 262,744 | 1,086,272 | |
London Stock Exchange PLC | 282,800 | 1,832,849 | |
Man Group PLC | 131,800 | 3,235,935 | |
Marks & Spencer Group PLC | 385,900 | 1,881,508 | |
mmO2 PLC (a) | 578,900 | 627,768 | |
Pearson PLC | 51,500 | 532,296 | |
Prudential PLC | 148,800 | 1,152,849 | |
Reckitt Benckiser PLC | 43,700 | 918,161 | |
Rio Tinto PLC (Reg.) | 11,300 | 279,816 | |
Shire Pharmaceuticals Group PLC sponsored ADR (a) | 61,400 | 1,406,060 | |
Smith & Nephew PLC | 160,300 | 1,271,825 | |
Tesco PLC | 350,044 | 1,401,233 | |
Unilever PLC sponsored ADR | 35,000 | 1,197,000 | |
Vodafone Group PLC sponsored ADR | 275,500 | 5,826,825 | |
William Hill PLC | 95,200 | 546,830 | |
Yell Group PLC (a) | 218,300 | 1,061,577 | |
TOTAL UNITED KINGDOM | 55,176,840 | ||
United States of America - 57.7% | |||
3M Co. | 60,000 | 4,732,200 | |
Abbott Laboratories | 57,000 | 2,429,340 | |
Adobe Systems, Inc. | 20,000 | 876,800 | |
AES Corp. (a) | 200,000 | 1,750,000 | |
Shares | Value (Note 1) | ||
Affiliated Computer Services, Inc. | 25,000 | $ 1,223,250 | |
AFLAC, Inc. | 60,000 | 2,188,800 | |
Agere Systems, Inc. Class B (a) | 225,000 | 762,750 | |
Agilent Technologies, Inc. (a) | 90,000 | 2,242,800 | |
AirTran Holdings, Inc. (a) | 50,000 | 810,500 | |
Alcoa, Inc. | 40,000 | 1,262,800 | |
Allegheny Energy, Inc. (a) | 50,000 | 529,000 | |
Allstate Corp. | 35,000 | 1,382,500 | |
Alpharma, Inc. Class A | 5,000 | 91,000 | |
Altria Group, Inc. | 40,000 | 1,860,000 | |
AMBAC Financial Group, Inc. | 20,000 | 1,414,800 | |
American International Group, Inc. | 195,000 | 11,861,850 | |
AmerisourceBergen Corp. | 10,000 | 567,700 | |
Amgen, Inc. (a) | 25,000 | 1,544,000 | |
Amphenol Corp. Class A (a) | 20,100 | 1,180,875 | |
Analog Devices, Inc. (a) | 50,000 | 2,216,500 | |
Apache Corp. | 34,950 | 2,436,714 | |
Applied Materials, Inc. (a) | 75,000 | 1,752,750 | |
Ariba, Inc. (a) | 125,000 | 406,250 | |
Arkansas Best Corp. | 25,000 | 827,750 | |
At Road, Inc. (a) | 40,000 | 516,000 | |
Autodesk, Inc. | 40,000 | 770,000 | |
Avon Products, Inc. | 14,969 | 1,017,293 | |
Baker Hughes, Inc. | 45,000 | 1,271,700 | |
Bank of America Corp. | 90,000 | 6,815,700 | |
Bank of New York Co., Inc. | 120,000 | 3,742,800 | |
Bank One Corp. | 175,000 | 7,428,750 | |
Banknorth Group, Inc. | 25,000 | 783,000 | |
Bausch & Lomb, Inc. | 13,000 | 626,080 | |
Baxter International, Inc. | 190,000 | 5,050,200 | |
Bear Stearns Companies, Inc. | 25,000 | 1,906,250 | |
Best Buy Co., Inc. | 13,950 | 813,425 | |
Big Lots, Inc. (a) | 30,000 | 450,300 | |
BJ Services Co. (a) | 10,000 | 328,100 | |
Boeing Co. | 26,000 | 1,000,740 | |
Boston Scientific Corp. (a) | 14,000 | 948,080 | |
Bowater, Inc. | 35,000 | 1,429,050 | |
Burlington Resources, Inc. | 63,700 | 3,098,368 | |
Cablevision Systems Corp. - | 25,000 | 505,000 | |
Cabot Microelectronics Corp. (a) | 40,000 | 2,280,000 | |
CarMax, Inc. (a) | 25,000 | 787,750 | |
Caterpillar, Inc. | 7,000 | 512,960 | |
Central Parking Corp. | 25,000 | 301,750 | |
Cephalon, Inc. (a) | 40,000 | 1,878,400 | |
ChevronTexaco Corp. | 48,000 | 3,566,400 | |
Cintas Corp. | 55,000 | 2,346,300 | |
Cisco Systems, Inc. (a) | 100,000 | 2,098,000 | |
CIT Group, Inc. | 50,000 | 1,681,000 | |
Citigroup, Inc. | 164,900 | 7,816,260 | |
Citizens Communications Co. (a) | 116,000 | 1,444,200 | |
Clear Channel Communications, Inc. | 95,000 | 3,877,900 | |
CNF, Inc. | 17,000 | 595,340 | |
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
United States of America - continued | |||
Colgate-Palmolive Co. | 50,000 | $ 2,659,500 | |
Comcast Corp. Class A (a) | 55,020 | 1,866,278 | |
ConocoPhillips | 35,027 | 2,001,793 | |
Conseco, Inc. (a) | 75,000 | 1,530,000 | |
Covad Communications Group, Inc. (a) | 225,000 | 985,500 | |
Crompton Corp. | 25,000 | 134,000 | |
Crown Castle International Corp. (a) | 130,000 | 1,645,800 | |
Crown Holdings, Inc. (a) | 60,000 | 474,000 | |
CSX Corp. | 10,000 | 318,200 | |
Cummins, Inc. | 10,000 | 474,000 | |
CVS Corp. | 20,000 | 703,600 | |
Darden Restaurants, Inc. | 45,000 | 942,750 | |
Del Monte Foods Co. (a) | 50,000 | 475,500 | |
Dell, Inc. (a) | 115,000 | 4,153,800 | |
Devon Energy Corp. | 15,000 | 727,500 | |
Dow Chemical Co. | 80,000 | 3,015,200 | |
E.I. du Pont de Nemours & Co. | 25,000 | 1,010,000 | |
E.W. Scripps Co. Class A | 5,000 | 464,550 | |
Eastman Kodak Co. | 33,000 | 806,190 | |
Eaton Corp. | 6,000 | 601,440 | |
EchoStar Communications Corp. | 175 | 6,706 | |
Ecolab, Inc. | 40,000 | 1,075,600 | |
Edison International (a) | 15,000 | 295,650 | |
Edwards Lifesciences Corp. (a) | 15,000 | 435,000 | |
Eli Lilly & Co. | 60,000 | 3,997,200 | |
Emmis Communications Corp. | 45,000 | 998,100 | |
ENSCO International, Inc. | 120,000 | 3,162,000 | |
Entergy Corp. | 20,000 | 1,078,000 | |
Expeditors International of | 15,000 | 563,100 | |
Exxon Mobil Corp. | 30,000 | 1,097,400 | |
Fannie Mae | 75,000 | 5,376,750 | |
Farmer Mac Class C (non-vtg.) (a) | 10,000 | 312,700 | |
Fifth Third Bancorp | 55,000 | 3,187,800 | |
First Data Corp. | 80,000 | 2,856,000 | |
FirstEnergy Corp. | 60,000 | 2,063,400 | |
Fisher Scientific International, Inc. (a) | 20,000 | 805,000 | |
FleetBoston Financial Corp. | 65,000 | 2,625,350 | |
Forest Laboratories, Inc. (a) | 55,000 | 2,750,550 | |
Fox Entertainment Group, Inc. Class A (a) | 100,000 | 2,770,000 | |
Fred's, Inc. Class A | 15,000 | 565,200 | |
Freddie Mac | 30,000 | 1,683,900 | |
Freeport-McMoRan Copper & | 30,000 | 1,162,500 | |
Gap, Inc. | 40,000 | 763,200 | |
General Electric Co. | 375,000 | 10,878,750 | |
General Motors Corp. Class H (a) | 75,000 | 1,232,250 | |
Gillette Co. | 125,000 | 3,987,500 | |
Goodrich Corp. | 25,000 | 690,500 | |
GrafTech International Ltd. (a) | 50,000 | 519,500 | |
Granite Construction, Inc. | 35,000 | 699,650 | |
Shares | Value (Note 1) | ||
Grant Prideco, Inc. (a) | 40,000 | $ 453,600 | |
Harley-Davidson, Inc. | 25,000 | 1,185,250 | |
Hartford Financial Services Group, Inc. | 15,000 | 823,500 | |
Health Management Associates, Inc. Class A | 25,000 | 553,750 | |
HealthSouth Corp. (a) | 250,000 | 707,500 | |
Hewlett-Packard Co. | 200,000 | 4,462,000 | |
Hilton Hotels Corp. | 60,000 | 950,400 | |
Home Depot, Inc. | 270,000 | 10,008,900 | |
Honeywell International, Inc. | 60,000 | 1,836,600 | |
IKON Office Solutions, Inc. | 100,000 | 840,000 | |
Imation Corp. | 5,000 | 170,250 | |
IMS Health, Inc. | 20,000 | 470,600 | |
Intel Corp. | 155,000 | 5,122,750 | |
International Business Machines Corp. | 45,000 | 4,026,600 | |
International Paper Co. | 40,000 | 1,574,000 | |
Interstate Bakeries Corp. | 50,000 | 734,000 | |
Intuit, Inc. (a) | 15,000 | 749,700 | |
iStar Financial, Inc. | 15,000 | 570,900 | |
J.P. Morgan Chase & Co. | 105,000 | 3,769,500 | |
Johnson & Johnson | 150,000 | 7,549,500 | |
KB Home | 45,000 | 3,082,050 | |
KeySpan Corp. | 20,000 | 699,400 | |
Kohl's Corp. (a) | 30,000 | 1,682,100 | |
Leggett & Platt, Inc. | 30,000 | 626,700 | |
Lehman Brothers Holdings, Inc. | 40,000 | 2,880,000 | |
Liberty Media Corp. Class A (a) | 90,000 | 908,100 | |
LKQ Corp. (a) | 800 | 13,840 | |
Lockheed Martin Corp. | 90,000 | 4,172,400 | |
Lowe's Companies, Inc. | 30,000 | 1,767,900 | |
LSI Logic Corp. (a) | 60,000 | 554,400 | |
Lucent Technologies, Inc. (a) | 100,000 | 320,000 | |
Lyondell Chemical Co. | 144,000 | 2,059,200 | |
Manitowoc Co., Inc. | 40,000 | 868,000 | |
Manufactured Home Communities, Inc. | 12,000 | 456,000 | |
Masco Corp. | 90,000 | 2,475,000 | |
Massey Energy Co. | 70,000 | 973,000 | |
MBNA Corp. | 160,000 | 3,960,000 | |
McDonald's Corp. | 240,000 | 6,002,400 | |
Medtronic, Inc. | 45,000 | 2,050,650 | |
MEMC Electronic Materials, Inc. (a) | 25,000 | 280,000 | |
Merck & Co., Inc. | 205,000 | 9,071,250 | |
Mercury Interactive Corp. (a) | 10,000 | 464,400 | |
Meredith Corp. | 11,600 | 562,832 | |
Merrill Lynch & Co., Inc. | 100,000 | 5,920,000 | |
Micron Technology, Inc. (a) | 100,000 | 1,434,000 | |
Microsoft Corp. | 575,000 | 15,036,254 | |
Millennium Chemicals, Inc. | 40,000 | 400,800 | |
Monster Worldwide, Inc. (a) | 60,000 | 1,528,200 | |
Morgan Stanley | 130,000 | 7,133,100 | |
Motorola, Inc. | 425,000 | 5,750,250 | |
Murphy Oil Corp. | 15,000 | 884,700 | |
National Semiconductor Corp. (a) | 32,300 | 1,312,349 | |
National-Oilwell, Inc. (a) | 56,100 | 1,069,827 | |
Common Stocks - continued | |||
Shares | Value (Note 1) | ||
United States of America - continued | |||
Nationwide Financial Services, Inc. | 21,241 | $ 721,557 | |
Navistar International Corp. (a) | 10,000 | 404,300 | |
Network Associates, Inc. (a) | 90,000 | 1,253,700 | |
New York Community Bancorp, Inc. | 25,000 | 905,000 | |
Newmont Mining Corp. Holding Co. | 35,000 | 1,532,300 | |
Nextel Communications, Inc. Class A (a) | 110,000 | 2,662,000 | |
Nordstrom, Inc. | 30,000 | 914,700 | |
Northrop Grumman Corp. | 10,000 | 894,000 | |
Northwest Airlines Corp. (a) | 60,000 | 821,400 | |
NTL, Inc. (a) | 61,400 | 3,790,222 | |
Nucor Corp. | 30,000 | 1,644,900 | |
NVIDIA Corp. (a) | 55,000 | 972,400 | |
Office Depot, Inc. (a) | 27,200 | 406,096 | |
Olin Corp. | 75,000 | 1,305,750 | |
Owens-Illinois, Inc. (a) | 125,000 | 1,537,500 | |
PacifiCare Health Systems, Inc. (a) | 10,000 | 595,000 | |
Parker Hannifin Corp. | 15,000 | 764,550 | |
PerkinElmer, Inc. | 75,000 | 1,350,750 | |
Pfizer, Inc. | 305,001 | 9,638,032 | |
PG&E Corp. (a) | 60,000 | 1,467,000 | |
Praxair, Inc. | 30,000 | 2,087,400 | |
Pride International, Inc. (a) | 132,800 | 2,175,264 | |
Procter & Gamble Co. | 85,000 | 8,354,650 | |
Qwest Communications | 150,000 | 529,500 | |
Reader's Digest Association, Inc. (non-vtg.) | 40,000 | 589,200 | |
Reliant Resources, Inc. (a) | 50,000 | 247,500 | |
Robert Half International, Inc. (a) | 80,000 | 1,888,800 | |
Safeway, Inc. (a) | 75,000 | 1,582,500 | |
SanDisk Corp. (a) | 8,000 | 644,800 | |
SBC Communications, Inc. | 100,000 | 2,398,000 | |
Schering-Plough Corp. | 237,200 | 3,622,044 | |
Scientific-Atlanta, Inc. | 15,000 | 444,000 | |
Siebel Systems, Inc. (a) | 50,000 | 629,500 | |
Six Flags, Inc. (a) | 175,000 | 1,036,000 | |
Smith International, Inc. (a) | 30,200 | 1,124,346 | |
Smurfit-Stone Container Corp. (a) | 30,000 | 465,000 | |
Solectron Corp. (a) | 50,000 | 277,000 | |
Sonic Automotive, Inc. Class A | 55,000 | 1,248,500 | |
Southern Co. | 70,000 | 2,086,000 | |
Southwest Airlines Co. | 75,000 | 1,455,000 | |
Sovereign Bancorp, Inc. | 175,000 | 3,641,750 | |
St. Jude Medical, Inc. (a) | 40,000 | 2,326,400 | |
Sun Microsystems, Inc. (a) | 550,000 | 2,178,000 | |
Synthes-Stratec, Inc. | 1,052 | 962,071 | |
Take-Two Interactive Software, Inc. (a) | 40,000 | 1,582,000 | |
Tech Data Corp. (a) | 35,000 | 1,152,200 | |
Terex Corp. (a) | 26,839 | 605,488 | |
Texas Industries, Inc. | 12,000 | 326,040 | |
Shares | Value (Note 1) | ||
Texas Instruments, Inc. | 150,000 | $ 4,338,000 | |
Textron, Inc. | 20,000 | 993,800 | |
The Chubb Corp. | 10,000 | 668,100 | |
The Coca-Cola Co. | 150,000 | 6,960,000 | |
The PMI Group, Inc. | 15,000 | 573,450 | |
Thermo Electron Corp. (a) | 30,000 | 659,400 | |
Time Warner, Inc. (a) | 300,000 | 4,587,000 | |
Timken Co. | 35,000 | 587,300 | |
Transocean, Inc. (a) | 30,000 | 575,700 | |
Travelers Property Casualty Corp.: | |||
Class A | 75,028 | 1,222,956 | |
Class B | 50,046 | 819,253 | |
Trex Co., Inc. (a) | 15,000 | 555,000 | |
TXU Corp. | 70,000 | 1,597,400 | |
Tyco International Ltd. | 575,000 | 12,006,000 | |
Tyson Foods, Inc. Class A | 65,000 | 927,550 | |
Union Pacific Corp. | 25,000 | 1,565,000 | |
United Defense Industries, Inc. (a) | 33,000 | 1,069,200 | |
United Technologies Corp. | 20,000 | 1,693,800 | |
UnitedHealth Group, Inc. | 75,000 | 3,816,000 | |
UnumProvident Corp. | 50,000 | 818,500 | |
Valero Energy Corp. | 20,000 | 854,000 | |
Varian Medical Systems, Inc. (a) | 1,000 | 63,940 | |
Vastera, Inc. (a) | 58,000 | 214,600 | |
VERITAS Software Corp. (a) | 20,000 | 723,000 | |
Verizon Communications, Inc. | 150,000 | 5,040,000 | |
Viacom, Inc. Class B (non-vtg.) | 100,000 | 3,987,000 | |
Vishay Intertechnology, Inc. (a) | 26,000 | 487,500 | |
Vitesse Semiconductor Corp. (a) | 100,000 | 704,000 | |
W.W. Grainger, Inc. | 20,000 | 915,600 | |
Wachovia Corp. | 20,009 | 917,813 | |
Wal-Mart Stores, Inc. | 115,000 | 6,779,250 | |
Walt Disney Co. | 135,000 | 3,056,400 | |
Waste Management, Inc. | 35,000 | 907,200 | |
Waters Corp. (a) | 40,000 | 1,257,200 | |
Weatherford International Ltd. (a) | 124,999 | 4,343,715 | |
WebMD Corp. (a) | 25,000 | 194,750 | |
Weight Watchers International, Inc. (a) | 5,000 | 184,500 | |
Western Digital Corp. (a) | 32,500 | 437,125 | |
Xcel Energy, Inc. | 30,000 | 492,000 | |
Xerox Corp. (a) | 40,000 | 420,000 | |
XL Capital Ltd. Class A | 25,000 | 1,737,500 | |
Yahoo!, Inc. (a) | 35,000 | 1,529,500 | |
TOTAL UNITED STATES OF AMERICA | 490,145,396 | ||
TOTAL COMMON STOCKS (Cost $746,981,543) | 818,102,578 | ||
Nonconvertible Preferred Stocks - 0.5% | |||
Shares | Value (Note 1) | ||
Germany - 0.5% | |||
Fresenius Medical Care AG | 61,000 | $ 2,494,490 | |
Porsche AG (non-vtg.) | 3,700 | 1,811,033 | |
TOTAL NONCONVERTIBLE (Cost $4,007,054) | 4,305,523 |
Nonconvertible Bonds - 0.5% | ||||
Principal Amount | ||||
United Kingdom - 0.5% | ||||
Telewest Communications PLC yankee: | ||||
0% 4/15/09 (c)(d) | $ 840,000 | 371,700 | ||
0% 2/1/10 (c)(d) | 315,000 | 126,788 | ||
9.875% 2/1/10 (c) | 2,170,000 | 1,117,550 | ||
Telewest PLC: | ||||
11% 10/1/07 (c) | 4,180,000 | 2,257,200 | ||
yankee 9.625% 10/1/06 (c) | 1,490,000 | 789,700 | ||
TOTAL NONCONVERTIBLE BONDS (Cost $4,269,644) | 4,662,938 |
Money Market Funds - 4.4% | |||
Shares | |||
Fidelity Cash Central Fund, 1.07% (b) | 27,166,260 | 27,166,260 | |
Fidelity Securities Lending Cash | 10,245,249 | 10,245,249 | |
TOTAL MONEY MARKET FUNDS (Cost $37,411,509) | 37,411,509 |
TOTAL INVESTMENT PORTFOLIO - 101.8% (Cost $792,669,750) | 864,482,548 |
NET OTHER ASSETS - (1.8)% | (15,395,480) | |
NET ASSETS - 100% | $ 849,087,068 |
Legend |
(a) Non-income producing |
(b) The rate quoted is the annualized seven-day yield of the fund at period end. A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request. |
(c) Non-income producing - issuer filed for bankruptcy or is in default of interest payments. |
(d) Debt obligation initially issued in zero coupon form which converts to coupon form at a specified rate and date. The rate shown is the rate 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 period end, the value of these securities amounted to $719,027 or 0.1% of net assets. |
(f) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
Other Information |
Purchases and sales of securities, other than short-term securities, aggregated $731,209,643 and $716,291,315, respectively. |
The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $75,479 for the period. |
Income Tax Information |
At October 31, 2003, the fund had a capital loss carryforward of approximately $69,570,000 of which $21,694,000 and $47,876,000 will expire on October 31, 2009 and 2010, respectively. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements
Statement of Assets and Liabilities
October 31, 2003 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $9,734,540) (cost $792,669,750) - See accompanying schedule | $ 864,482,548 | |
Cash | 619,575 | |
Foreign currency held at value (cost $4,807,003) | 4,907,894 | |
Receivable for investments sold | 10,501,665 | |
Receivable for fund shares sold | 1,647,411 | |
Dividends receivable | 1,084,124 | |
Interest receivable | 12,895 | |
Redemption fees receivable | 10 | |
Prepaid expenses | 3,942 | |
Other receivables | 4,738 | |
Total assets | 883,264,802 | |
Liabilities | ||
Payable for investments purchased | $ 21,374,658 | |
Delayed delivery | 511,444 | |
Payable for fund shares redeemed | 756,650 | |
Accrued management fee | 632,271 | |
Other payables and accrued expenses | 657,462 | |
Collateral on securities loaned, at value | 10,245,249 | |
Total liabilities | 34,177,734 | |
Net Assets | $ 849,087,068 | |
Net Assets consist of: | ||
Paid in capital | $ 854,677,824 | |
Undistributed net investment income | 3,209,929 | |
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (80,322,404) | |
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 71,521,719 | |
Net Assets, for 55,484,446 shares outstanding | $ 849,087,068 | |
Net Asset Value, offering price and redemption price per share ($849,087,068 ÷ 55,484,446 shares) | $ 15.30 |
Statement of Operations
Year ended October 31, 2003 | ||
Investment Income | ||
Dividends | $ 11,002,689 | |
Interest | 240,126 | |
Security lending | 150,616 | |
11,393,431 | ||
Less foreign taxes withheld | (523,734) | |
Total income | 10,869,697 | |
Expenses | ||
Management fee | $ 5,083,107 | |
Performance adjustment | 1,225,392 | |
Transfer agent fees | 2,172,786 | |
Accounting and security lending fees | 390,408 | |
Non-interested trustees' compensation | 2,518 | |
Custodian fees and expenses | 144,361 | |
Registration fees | 25,077 | |
Audit | 84,897 | |
Legal | 2,352 | |
Miscellaneous | 5,583 | |
Total expenses before reductions | 9,136,481 | |
Expense reductions | (209,498) | 8,926,983 |
Net investment income (loss) | 1,942,714 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities (net of foreign tax of $86,081) | 47,404,912 | |
Foreign currency transactions | 141,860 | |
Total net realized gain (loss) | 47,546,772 | |
Change in net unrealized appreciation (depreciation) on: Investment securities (net of deferred foreign taxes of $409,748) | 133,043,825 | |
Assets and liabilities in foreign currencies | 140,661 | |
Total change in net unrealized appreciation (depreciation) | 133,184,486 | |
Net gain (loss) | 180,731,258 | |
Net increase (decrease) in net assets resulting from operations | $ 182,673,972 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Worldwide
Financial Statements - continued
Statement of Changes in Net Assets
Year ended | Year ended | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $ 1,942,714 | $ 1,451,626 |
Net realized gain (loss) | 47,546,772 | (55,969,858) |
Change in net unrealized appreciation (depreciation) | 133,184,486 | (31,178,956) |
Net increase (decrease) in net assets resulting from operations | 182,673,972 | (85,697,188) |
Distributions to shareholders from net investment income | (1,083,362) | - |
Share transactions | 215,146,230 | 155,435,991 |
Reinvestment of distributions | 1,031,556 | - |
Cost of shares redeemed | (196,517,438) | (164,266,887) |
Net increase (decrease) in net assets resulting from share transactions | 19,660,348 | (8,830,896) |
Redemption fees | 46,732 | 23,607 |
Total increase (decrease) in net assets | 201,297,690 | (94,504,477) |
Net Assets | ||
Beginning of period | 647,789,378 | 742,293,855 |
End of period (including undistributed net investment income of $3,209,929 and undistributed net investment income of $738,323, respectively) | $ 849,087,068 | $ 647,789,378 |
Other Information Shares | ||
Sold | 16,234,019 | 11,337,298 |
Issued in reinvestment of distributions | 86,178 | - |
Redeemed | (15,211,099) | (12,022,718) |
Net increase (decrease) | 1,109,098 | (685,420) |
Financial Highlights
Years ended October 31, | 2003 | 2002 | 2001 | 2000 | 1999 |
Selected Per-Share Data | |||||
Net asset value, beginning of period | $ 11.91 | $ 13.48 | $ 19.07 | $ 18.87 | $ 15.59 |
Income from Investment Operations | |||||
Net investment income (loss) B | .04 | .03 | .04 | .09 | .08 |
Net realized and unrealized gain (loss) | 3.37 | (1.60) | (2.98) | 1.73 | 3.74 |
Total from investment operations | 3.41 | (1.57) | (2.94) | 1.82 | 3.82 |
Distributions from net investment income | (.02) | - | (.40) | (.10) | (.10) |
Distributions from net realized gain | - | - | (2.25) | (1.52) | (.44) |
Total distributions | (.02) | - | (2.65) | (1.62) | (.54) |
Redemption fees added to paid in capital B | -D | -D | -D | -D | - |
Net asset value, end of period | $ 15.30 | $ 11.91 | $ 13.48 | $ 19.07 | $ 18.87 |
Total Return A | 28.68% | (11.65)% | (17.21)% | 9.80% | 25.18% |
Ratios to Average Net Assets C | |||||
Expenses before expense reductions | 1.31% | 1.24% | 1.12% | 1.09% | 1.12% |
Expenses net of voluntary waivers, if any | 1.31% | 1.24% | 1.12% | 1.09% | 1.12% |
Expenses net of all reductions | 1.28% | 1.20% | 1.05% | 1.04% | 1.07% |
Net investment income (loss) | .28% | .19% | .29% | .48% | .47% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $ 849,087 | $ 647,789 | $ 742,294 | $ 984,038 | $ 980,835 |
Portfolio turnover rate | 106% | 120% | 152% | 235% | 164% |
ATotal returns would have been lower had certain expenses not been reduced during the periods shown. BCalculated based on average shares outstanding during the period. CExpense ratios reflect operating expenses of the fund. 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 fund during periods when reimbursements or reductions occur. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the fund. DAmount represents less than $.01 per-share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
1. Significant Accounting Policies.
Fidelity Global Balanced Fund, Fidelity International Growth & Income Fund, Fidelity Diversified International Fund, Fidelity Aggressive International Fund, Fidelity Overseas Fund, and Fidelity Worldwide Fund (the funds) are funds of Fidelity Investment Trust (the trust). The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. Each fund is authorized to issue an unlimited number of shares. Certain funds' investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the funds:
Security Valuation. Net asset value per share (NAV calculation) is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Equity securities for which market quotations are available are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) on the primary market or exchange on which they trade. Debt securities for which quotations are readily available are valued at their most recent bid prices (sales prices if the principal market is an exchange) in the principal market in which such securities are normally traded, as determined by recognized dealers in such securities, or securities are valued on the basis of information provided by a pricing service. Pricing services use valuation matrices that incorporate both dealer-supplied valuations and valuation models. If an event that is expected to materially affect the value of a security occurs after the close of an exchange or market on which that security trades, but prior to the NAV calculation, then that security will be fair valued taking the event into account. Securities (including restricted securities) for which market quotations are not readily available are valued at their fair value as determined in good faith under consistently applied procedures under the general supervision of the Board of Trustees. Price movements in futures contracts and ADRs, market and trading trends, the bid/ask quotes of brokers and off-exchange institutional trading may be reviewed in the course of making a good faith determination of a security's fair value. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued on the basis of amortized cost. Investments in open-end investment companies are valued at their net asset value each business day.
Foreign Currency. Certain funds may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the funds are informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Fidelity Global Balanced Fund and Fidelity Worldwide Fund estimate the components of distributions received from Real Estate Investment Trusts (REITs). Distributions received in excess of income are recorded as a reduction of cost of investments and/or realized gain. Interest income is accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities, which is accrued using the interest method. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectibility of interest is reasonably assured.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among the funds in the trust.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), non-interested Trustees must defer receipt of a portion of, and may elect to defer receipt of an additional portion of, their annual compensation. Deferred amounts are treated as though equivalent dollar amounts had been invested in shares of each applicable fund or are invested in a cross-section of other Fidelity funds, and are marked-to-market. Deferred amounts remain in the fund until distributed in accordance with the Plan.
1. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders. Each year each fund intends to qualify as a regulated investment company by distributing all of their taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required in the accompanying financial statements. Foreign taxes are provided for based on each fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. Distributions are recorded on the ex-dividend date.
Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Capital accounts within the financial statements are adjusted for permanent and temporary book and tax differences. These adjustments have no impact on net assets or the results of operations. Temporary differences will reverse in a subsequent period. These differences are primarily due to futures transactions, foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), prior period premium and discount on debt securities, market discount, non-taxable dividends, net operating losses, capital loss carryforwards, and losses deferred due to wash sales and futures transactions.
The tax-basis components of distributable earnings and the federal tax cost as of period end were as follows for each fund:
Cost for Federal Income Tax Purposes | Unrealized | Unrealized | Net Unrealized | |
Global Balanced | $ 97,550,738 | $ 16,870,026 | $ (1,315,817) | $ 15,554,209 |
International Growth & Income | 1,191,890,802 | 197,970,442 | (58,002,405) | 139,968,037 |
Diversified International | 9,742,617,968 | 2,279,791,740 | (251,049,723) | 2,028,742,017 |
Aggressive International | 478,104,946 | 83,456,021 | (7,765,312) | 75,690,709 |
Overseas | 3,435,883,411 | 398,956,660 | (238,064,064) | 160,892,596 |
Worldwide | 804,179,272 | 101,596,784 | (41,293,508) | 60,303,276 |
Undistributed | Undistributed | Capital Loss | |
Global Balanced | $ 1,892,079 | $ - | $ (7,285,476) |
International Growth & Income | 10,405,269 | - | (76,616,565) |
Diversified International | 155,093,240 | - | (843,476,785) |
Aggressive International | 3,546,333 | - | (84,118,251) |
Overseas | 35,834,499 | - | (696,626,782) |
Worldwide | 3,675,694 | - | (69,569,721) |
The tax character of distributions paid was as follows:
October 31, 2003 | ||||
Ordinary Income | Long-term | Return of Capital | Total | |
Global Balanced | $ 1,305,719 | $ - | $ - | $ 1,305,719 |
International Growth & Income | 4,820,830 | - | - | 4,820,830 |
Diversified International | 53,240,295 | - | - | 53,240,295 |
Aggressive International | 285,614 | - | - | 285,614 |
Overseas | 11,619,951 | - | - | 11,619,951 |
Worldwide | 1,083,362 | - | - | 1,083,362 |
October 31, 2002 | ||||
Ordinary Income | Long-term | Return of Capital | Total | |
Global Balanced | $ 173,044 | $ - | $ - | $ 173,044 |
Diversified International | 3,276,430 | - | - | 3,276,430 |
Aggressive International | 1,108,095 | - | - | 1,108,095 |
Short-Term Trading (Redemption) Fees. Shares held in each fund less than 30 days are subject to a short-term trading fee equal to 1% of the proceeds of the redeemed shares. These fees, which are retained by the funds, are accounted for as an addition to paid in capital.
2. Operating Policies.
Repurchase Agreements. Fidelity Management & Research Company (FMR) has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the funds and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts. These accounts are then invested in repurchase agreements that are collateralized by U.S. Treasury or Government obligations. Certain funds may also invest directly with institutions, in repurchase agreements that are collateralized by commercial paper obligations and corporate obligations. Collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. Collateral is marked-to-market daily and maintained at a value at least equal to the principal amount of the repurchase agreement (including accrued interest).
Delayed Delivery Transactions and When-Issued Securities. Each fund may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. During the time a delayed delivery sell is outstanding, the contract is marked-to-market daily and equivalent deliverable securities are held for the transaction. The value of the securities purchased on a delayed delivery or when-issued basis are identified as such in each applicable fund's Schedule of Investments. Each fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, each fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract, or if the issuer does not issue the securities due to political, economic, or other factors.
Futures Contracts. Certain funds may use futures contracts to manage their 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. Losses may arise from changes in the value of the underlying instruments or if the counterparties do not perform under the contracts' terms. Gains (losses) are realized upon the expiration or closing of the futures contracts. Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded.
Restricted Securities. Certain funds 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 each applicable fund's Schedule of Investments.
3. Purchases and Sales of Investments.
Information regarding purchases and sales of securities is included under the caption "Other Information" at the end of each applicable fund's Schedule of Investments.
4. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the funds with investment management related services for which the funds pay a monthly management fee. The management fee is the sum of an individual fund fee rate and a group fee rate. The individual fund fee rate is applied to each fund's average net assets. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee for Diversified International, Aggressive International, Overseas and Worldwide is subject to a performance adjustment (up to a maximum ±.20% of each applicable fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on each fund's relative investment performance as compared to an appropriate benchmark index. Worldwide's performance adjustment took effect in March 2002. Subsequent months will be added until the performance period includes 36 months. For the period, each fund's annual management fee rate expressed as a percentage of each fund's average net assets, including the performance adjustment, if applicable was as follows:
Individual Rate | Group Rate | Total | |
Global Balanced | .45% | .28% | .73% |
International Growth & Income | .45% | .28% | .73% |
Diversified International | .45% | .28% | .89% |
Aggressive International | .45% | .28% | .76% |
Overseas | .45% | .28% | .62% |
Worldwide | .45% | .28% | .91% |
Sales Load. Fidelity Distributors Corporation (FDC), an affiliate of FMR, receives a 1% deferred sales charge upon redemption of the fund shares of International Growth & Income purchased prior to October 12, 1990. The amounts received by FDC, if any, are shown under the caption "Other Information" on the fund's Statement of Operations.
4. Fees and Other Transactions with Affiliates - continued
Transfer Agent Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, is the funds' transfer, dividend disbursing and shareholder servicing agent. FSC receives account fees and asset-based fees that vary according to account size and type of account. FSC pays for typesetting, printing and mailing of all shareholder reports, except proxy statements. For the period, the transfer agent fees were equivalent to the following annual rates expressed as a percentage of average net assets:
Global Balanced | .29% | | |
International Growth & Income | .30% | |
Diversified International | .30% | |
Aggressive International | .33% | |
Overseas | .33% | |
Worldwide | .31% |
Accounting and Security Lending Fees. FSC maintains each fund's accounting records and administers the security lending program. The security lending fee is based on the number and duration of lending transactions. The accounting fee is based on the level of average net assets for the month plus out-of-pocket expenses.
Central Funds. The funds may invest in affiliated Central Funds managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR. The Central Funds are open-end investment companies available only to investment companies and other accounts managed by FMR and its affiliates. The Central Funds seek preservation of capital and current income and do not pay a management fee. Income distributions earned by the funds are recorded as income in the accompanying financial statements. Distributions from the Central Funds are noted in the table below:
Income | ||
Global Balanced | $ 51,498 | |
International Growth & Income | 759,515 | |
Diversified International | 5,127,432 | |
Aggressive International | 486,529 | |
Overseas | 2,241,519 | |
Worldwide | 152,235 |
Brokerage Commissions. Certain funds placed a portion of their portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms are shown under the caption "Other Information" at the end of each applicable fund's Schedule of Investments.
5. Committed Line of Credit.
Certain funds participate with other funds managed by FMR in a $3.5 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The funds have agreed to pay commitment fees on their pro rata portion of the line of credit. During the period, there were no borrowings on this line of credit.
6. Security Lending.
Certain funds lend portfolio securities from time to time in order to earn additional income. Each applicable fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the funds and any additional required collateral is delivered to the funds on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Cash collateral is invested in cash equivalents. The value of loaned securities and cash collateral at period end are disclosed on each applicable fund's Statement of Assets and Liabilities.
7. Expense Reductions.
Many of the brokers with whom FMR places trades on behalf of certain funds provided services to these funds in addition to trade execution. These services included payments of expenses on behalf of each applicable fund. In addition, through arrangements with each applicable fund's custodian and transfer agent, credits realized as a result of uninvested cash balances were used to reduce each applicable fund's expenses. All of the applicable expense reductions are noted in the table below.
Brokerage Service Arrangements | Custody | Transfer | |
Global Balanced | $ 13,486 | $ 1,432 | $ - |
International Growth & Income | 294,815 | 1,841 | 7,527 |
Diversified International | 1,725,849 | 2,747 | 80,612 |
Aggressive International | 239,048 | 53 | - |
Overseas | 1,203,945 | 2,256 | 26,837 |
Worldwide | 205,555 | - | 3,943 |
8. Transactions with Affiliated Companies.
An affiliated company is a company which the fund has ownership of at least 5% of the voting securities. Information regarding transactions with affiliated companies is included in "Other Information" at the end of each applicable fund's Schedule of Investments.
To the Trustees of Fidelity Investment Trust and the Shareholders of Fidelity Global Balanced Fund, Fidelity International Growth & Income Fund and Fidelity Overseas Fund:
In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Global Balanced Fund, Fidelity International Growth & Income Fund and Fidelity Overseas Fund (funds of Fidelity Investment Trust) at October 31, 2003 and the results of their operations, the changes in their net assets and the financial highlights for the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fidelity Investment Trust's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with auditing standards generally accepted in the United States of America which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at October 31, 2003 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
December 19, 2003
To the Trustees of Fidelity Investment Trust and Shareholders of Fidelity Diversified International Fund, Fidelity Aggressive International Fund and Fidelity Worldwide Fund:
We have audited the accompanying statements of assets and liabilities of Fidelity Diversified International Fund, Fidelity Aggressive International Fund and Fidelity Worldwide Fund (the Funds), funds of Fidelity Investment Trust including the portfolios of investments, as of
October 31, 2003, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2003, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Fidelity Diversified International Fund, Fidelity Aggressive International Fund and Fidelity Worldwide Fund as of October 31, 2003, and the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and their financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
/s/DELOITTE & TOUCHE LLP
DELOITTE & TOUCHE LLP
Boston, Massachusetts
December 12, 2003
The Trustees and executive officers of the trust and funds, as applicable, are listed below. The Board of Trustees governs each fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee each fund's activities, review contractual arrangements with companies that provide services to each fund, and review each fund's performance. Except for William O. McCoy, each of the Trustees oversees 289 funds advised by FMR or an affiliate. Mr. McCoy oversees 291 funds advised by FMR or an affiliate.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. In any event, each non-interested Trustee shall retire not later than the last day of the calendar year in which his or her 72nd birthday occurs. The executive officers hold office without limit in time, except that any officer may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The funds' Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Interested Trustees*:
Correspondence intended for each Trustee who is an "interested person" (as defined in the 1940 Act) may be sent to 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation | |
Edward C. Johnson 3d (73)** | |
Year of Election or Appointment: 1976 Mr. Johnson is Chairman of the Board of Trustees. Mr. Johnson serves as Chief Executive Officer, Chairman, and a Director of FMR Corp.; a Director and Chairman of the Board and of the Executive Committee of FMR; Chairman and a Director of Fidelity Management & Research (Far East) Inc.; Chairman (1998) and a Director of Fidelity Investments Money Management, Inc.; and Chairman (2001) and a Director (2000) of FMR Co., Inc. | |
Abigail P. Johnson (41)** | |
Year of Election or Appointment: 2001 Senior Vice President of Global Balanced, International Growth & Income, Diversified International, Aggressive International, Overseas, and Worldwide. Ms. Johnson also serves as Senior Vice President of other Fidelity funds (2001). She is President and a Director of FMR (2001), Fidelity Investments Money Management, Inc. (2001), FMR Co., Inc. (2001), and a Director of FMR Corp. Previously, Ms. Johnson managed a number of Fidelity funds. | |
Laura B. Cronin (49) | |
Year of Election or Appointment: 2003 Ms. Cronin is an Executive Vice President (2002) and Chief Financial Officer (2002) of FMR Corp. and is a member of the Fidelity Management Committee (2003). Previously, Ms. Cronin served as Vice President of Finance of FMR (1997-1999), and Chief Financial Officer of FMR (1999-2001), Fidelity Personal Investments (2001), and Fidelity Brokerage Company (2001-2002). | |
Robert L. Reynolds (51) | |
Year of Election or Appointment: 2003 Mr. Reynolds is a Director (2003) and Chief Operating Officer (2002) of FMR Corp. and is the head of the Fidelity Management Committee (2003). He also serves on the Board at Fidelity Investments Canada, Ltd. (2000). Previously, Mr. Reynolds served as President of Fidelity Investments Institutional Retirement Group (1996-2000). |
* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with FMR.
** Edward C. Johnson 3d, Trustee, is Abigail P. Johnson's father.
Non-Interested Trustees:
Correspondence intended for each non-interested Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Age; Principal Occupation | |
J. Michael Cook (61) | |
Year of Election or Appointment: 2001 Prior to Mr. Cook's retirement in May 1999, he served as Chairman and Chief Executive Officer of Deloitte & Touche LLP (accounting/consulting), Chairman of the Deloitte & Touche Foundation, and a member of the Board of Deloitte Touche Tohmatsu. He currently serves as a Director of Comcast (telecommunications, 2002), International Flavors & Fragrances, Inc. (2000), Rockwell Automation (2000) and The Dow Chemical Company (2000). He is a Member of the Diversity Advisory Council of Marakon (2003) and the Advisory Board of the Directorship Search Group, Chairman Emeritus of the Board of Catalyst (a leading organization for the advancement of women in business), and is Chairman of the Accountability Advisory Council to the Comptroller General of the United States. He also serves as a Member of the Advisory Board of the Graduate School of Business of the University of Florida, his alma mater. | |
Ralph F. Cox (71) | |
Year of Election or Appointment: 1991 Mr. Cox is President of RABAR Enterprises (management consulting for the petroleum industry). Prior to February 1994, he was President of Greenhill Petroleum Corporation (petroleum exploration and production). Until March 1990, Mr. Cox was President and Chief Operating Officer of Union Pacific Resources Company (exploration and production). He is a Director of CH2M Hill Companies (engineering), and Abraxas Petroleum (petroleum exploration and production, 1999). In addition, he is a member of advisory boards of Texas A&M University and the University of Texas at Austin. | |
Phyllis Burke Davis (71) | |
Year of Election or Appointment: 1992 Mrs. Davis is retired from Avon Products, Inc. (consumer products) where she held various positions including Senior Vice President of Corporate Affairs and Group Vice President of U.S. product marketing, sales, distribution, and manufacturing. Mrs. Davis is a member of the Board of Directors of the Southampton Hospital in Southampton, N.Y. (1998). Previously, she served as a Director of BellSouth Corporation (telecommunications), Eaton Corporation (diversified industrial), the TJX Companies, Inc. (retail stores), Hallmark Cards, Inc., and Nabisco Brands, Inc. | |
Robert M. Gates (60) | |
Year of Election or Appointment: 1997 Dr. Gates is President of Texas A&M University (2002). He was Director of the Central Intelligence Agency (CIA) from 1991 to 1993. From 1989 to 1991, Dr. Gates served as Assistant to the President of the United States and Deputy National Security Advisor. Dr. Gates is a Director of NACCO Industries, Inc. (mining and manufacturing), and Parker Drilling Co., Inc. (drilling and rental tools for the energy industry, 2001). He also serves as a member of the Advisory Board of VoteHere.net (secure internet voting, 2001). Previously, Dr. Gates served as a Director of LucasVarity PLC (automotive components and diesel engines), a Director of TRW Inc. (automotive, space, defense, and information technology), and Dean of the George Bush School of Government and Public Service at Texas A&M University (1999-2001). Dr. Gates also is a Trustee of the Forum for International Policy. | |
Donald J. Kirk (70) | |
Year of Election or Appointment: 1987 Mr. Kirk is a Governor of the American Stock Exchange (2001), a Trustee and former Chairman of the Board of Trustees of the Greenwich Hospital Association, a Director of the Yale-New Haven Health Services Corp. (1998), and a Director Emeritus and former Chairman of the Board of Directors of National Arts Strategies Inc. Mr. Kirk was an Executive-in-Residence (1995-2000) and a Professor (1987-1995) at Columbia University Graduate School of Business. Prior to 1987, he was Chairman of the Financial Accounting Standards Board. Previously, Mr. Kirk served as a Governor of the National Association of Securities Dealers, Inc. (1996-2002), a member and Vice Chairman of the Public Oversight Board of the American Institute of Certified Public Accountants' SEC Practice Section (1995-2002), a Director of General Re Corporation (reinsurance, 1987-1998) and as a Director of Valuation Research Corp. (appraisals and valuations). | |
Marie L. Knowles (57) | |
Year of Election or Appointment: 2001 Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. She currently serves as a Director of Phelps Dodge Corporation (copper mining and manufacturing), URS Corporation (multidisciplinary engineering, 1999), and McKesson Corporation (healthcare service, 2002). Ms. Knowles is a Trustee of the Brookings Institution and the Catalina Island Conservancy and also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California. | |
Ned C. Lautenbach (59) | |
Year of Election or Appointment: 2000 Mr. Lautenbach has been a partner of Clayton, Dubilier & Rice, Inc. (private equity investment firm) since September 1998. Previously, Mr. Lautenbach was with the International Business Machines Corporation (IBM) from 1968 until his retirement in 1998. He was most recently Senior Vice President and Group Executive of Worldwide Sales and Services. From 1993 to 1995, he was Chairman of IBM World Trade Corporation, and from 1994 to 1998 was a member of IBM's Corporate Executive Committee. Mr. Lautenbach serves as Chairman and as a Director (1998) of Acterna Corporation (communications test equipment). He is also Co-Chairman of Covansys, Inc. (global provider of business and technology solutions, 2000). In addition, he is a Director of Eaton Corporation (diversified industrial) and the Philharmonic Center for the Arts in Naples, Florida (1999). He also is a member of the Council on Foreign Relations. | |
Marvin L. Mann (70) | |
Year of Election or Appointment: 1993 Mr. Mann is Chairman of the non-interested Trustees (2001). He is Chairman Emeritus of Lexmark International, Inc. (computer peripherals) where he served as CEO until April 1998 and retired as Chairman May 1999, and remains a member of the Board. Prior to 1991, he held the positions of Vice President of International Business Machines Corporation (IBM) and President and General Manager of various IBM divisions and subsidiaries. Mr. Mann is a Board member of Imation Corp. (imaging and information) and Acterna Corporation (communications test equipment, 1999). He is also a member of the Director Services Committee of the Investment Company Institute. In addition, Mr. Mann is a member of the President's Cabinet at the University of Alabama and the Board of Visitors of the Culverhouse College of Commerce and Business Administration at the University of Alabama. | |
William O. McCoy (70) | |
Year of Election or Appointment: 1997 Prior to his retirement in December 1994, Mr. McCoy was Vice Chairman of the Board of BellSouth Corporation (telecommunications) and President of BellSouth Enterprises. He is currently a Director of Liberty Corporation (holding company), Duke Realty Corporation (real estate), Progress Energy, Inc. (electric utility), and Acterna Corporation (communications test equipment, 1999). He is also a partner of Franklin Street Partners (private investment management) and a member of the Research Triangle Foundation Board. In addition, Mr. McCoy served as the Interim Chancellor (1999-2000) and a member of the Board of Visitors (1994-1998) for the University of North Carolina at Chapel Hill and currently serves on the Board of Directors of the University of North Carolina Health Care System and the Board of Visitors of the Kenan-Flagler Business School (University of North Carolina at Chapel Hill). He also served as Vice President of Finance for the University of North Carolina (16-school system, 1995-1998). | |
William S. Stavropoulos (64) | |
Year of Election or Appointment: 2001 Mr. Stavropoulos is Chairman of the Board, President and CEO (2002), and Chairman of the Executive Committee (2000) and a Director of The Dow Chemical Company. Since joining The Dow Chemical Company in 1967, Mr. Stavropoulos served in numerous senior management positions, including President (1993-2000) and Chief Executive Officer (1995-2000). Currently, he is a Director of NCR Corporation (data warehousing and technology solutions), BellSouth Corporation (telecommunications), Chemical Financial Corporation, and Maersk Inc. (industrial conglomerate, 2002). He also serves as a member of the Board of Trustees of the American Enterprise Institute for Public Policy Research. In addition, Mr. Stavropoulos is a member of The Business Council, J.P. Morgan International Council, World Business Council for Sustainable Development, and the University of Notre Dame Advisory Council for the College of Science. |
Advisory Board Members and Executive Officers:
Correspondence intended for Dr. Heilmeier may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for each executive officer and Mr. Lynch may be sent to 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation | |
George H. Heilmeier (67) | |
Year of Election or Appointment: 2003 Dr. Heilmeier is Chairman Emeritus of Telcordia Technologies (communication software and systems), where prior to his retirement, he served as company Chairman and Chief Executive Officer. He currently serves on the Boards of Directors of The Mitre Corporation (systems engineering and information technology support for the government), INET Technologies Inc. (telecommunications network surveillance, 2001) and Teletech Holdings (customer management services, 1998). He is Chairman of the General Motors Technology Advisory Committee and a Life Fellow of the IEEE (2000). Dr. Heilmeier is a member of the Defense Science Board and the National Security Agency Advisory Board. He is also a member of the National Academy of Engineering, the American Academy of Arts and Sciences and The Board of Overseers of the School of Engineering and Applied Science of the University of Pennsylvania. Previously, Dr. Heilmeier served as a Director of TRW Inc. (automotive, space, defense, and information technology, 1992-2002) and Compaq (1994-2002). | |
Peter S. Lynch (60) | |
Year of Election or Appointment: 2003 Member of the Advisory Board of Fidelity Investment Trust. Vice Chairman and a Director of FMR, and Vice Chairman (2001) and a Director (2000) of FMR Co., Inc. Previously, Mr. Lynch served as a Trustee of the Fidelity funds (1990-2003). Prior to May 31, 1990, he was a Director of FMR and Executive Vice President of FMR (a position he held until March 31, 1991), Vice President of Fidelity® Magellan® Fund and FMR Growth Group Leader, and Managing Director of FMR Corp. Mr. Lynch was also Vice President of Fidelity Investments Corporate Services. In addition, he serves as a Trustee of Boston College, Massachusetts Eye & Ear Infirmary, Historic Deerfield, John F. Kennedy Library, and the Museum of Fine Arts of Boston. | |
Philip L. Bullen (44) | |
Year of Election or Appointment: 2001 Vice President of Global Balanced, International Growth & Income, Diversified International, Aggressive International, Overseas, and Worldwide. Mr. Bullen also serves as Vice President of certain Equity Funds (2001) and certain High Income Funds (2001). He is Senior Vice President of FMR (2001) and FMR Co., Inc. (2001), President and a Director of Fidelity Management & Research (Far East) Inc. (2001), President and a Director of Fidelity Management & Research (U.K.) Inc. (2002), and a Director of Strategic Advisers, Inc. (2002). Before joining Fidelity Investments, Mr. Bullen was President and Chief Investment Officer of Santander Global Advisors (1997-2000) and President and Chief Executive Officer of Boston's Baring Asset Management Inc. (1994-1997). | |
Penelope A. Dobkin (49) | |
Year of Election or Appointment: 2001 Vice President of International Growth & Income. Prior to assuming her current responsibilities, Ms. Dobkin managed a variety of Fidelity funds. | |
Kevin R. McCarey (43) | |
Year of Election or Appointment: 1999 Vice President of Aggressive International. Mr. McCarey is also Vice President of another fund advised by FMR. Prior to assuming his current responsibilities, Mr. McCarey managed a variety of Fidelity funds. | |
Richard R. Mace, Jr. (42) | |
Year of Election or Appointment: 1996 or 2001 Vice President of Global Balanced (1996), Overseas (1996), and Worldwide (2001). Mr. Mace is also Vice President of other funds advised by FMR. Prior to assuming his current responsibilities, Mr. Mace managed a variety of Fidelity funds. | |
William Bower (36) | |
Year of Election or Appointment: 2001 Vice President of Diversified International. Mr. Bower is also Vice President of other funds advised by FMR. Prior to assuming his current responsibilities, Mr. Bower served as an analyst and manager of a variety of Fidelity funds. | |
Eric D. Roiter (54) | |
Year of Election or Appointment: 1998 Secretary of Global Balanced, International Growth & Income, Diversified International, Aggressive International, Overseas, and Worldwide. He also serves as Secretary of other Fidelity funds (1998); Vice President, General Counsel, and Clerk of FMR Co., Inc. (2001) and FMR (1998); Vice President and Clerk of FDC (1998); Assistant Clerk of Fidelity Management & Research (U.K.) Inc. (2001) and Fidelity Management & Research (Far East) Inc. (2001); and Assistant Secretary of Fidelity Investments Money Management Inc. (2001). Prior to joining Fidelity, Mr. Roiter was with the law firm of Debevoise & Plimpton, as an associate (1981-1984) and as a partner (1985-1997), and served as an Assistant General Counsel of the U.S. Securities and Exchange Commission (1979-1981). Mr. Roiter is an Adjunct Member, Faculty of Law, at Boston College Law School (2003). | |
Stuart Fross (44) | |
Year of Election or Appointment: 2003 Assistant Secretary of Global Balanced, International Growth & Income, Diversified International, Aggressive International, Overseas, and Worldwide. Mr. Fross also serves as Assistant Secretary of other Fidelity funds (2003) and is an employee of FMR. | |
Maria F. Dwyer (44) | |
Year of Election or Appointment: 2002 President and Treasurer of Global Balanced, International Growth & Income, Diversified International, Aggressive International, Overseas, and Worldwide. Ms. Dwyer also serves as President and Treasurer of other Fidelity funds (2002) and is a Vice President (1999) and an employee (1996) of FMR. Prior to joining Fidelity, Ms. Dwyer served as Director of Compliance for MFS Investment Management. | |
Timothy F. Hayes (53) | |
Year of Election or Appointment: 2002 Chief Financial Officer of Global Balanced, International Growth & Income, Diversified International, Aggressive International, Overseas, and Worldwide. Mr. Hayes also serves as Chief Financial Officer of other Fidelity funds (2002). Recently he was appointed President of Fidelity Service Company (2003) where he also serves as a Director. Mr. Hayes also serves as President of Fidelity Investments Operations Group (FIOG, 2002), which includes Fidelity Pricing and Cash Management Services Group (FPCMS), where he was appointed President in 1998. Previously, Mr. Hayes served as Chief Financial Officer of Fidelity Investments Corporate Systems and Service Group (1998) and Fidelity Systems Company (1997-1998). | |
John H. Costello (57) | |
Year of Election or Appointment: 1986, 1990, 1991, 1993, or 1994 Assistant Treasurer of Global Balanced (1993), International Growth & Income (1986), Diversified International (1991), Aggressive International (1994), Overseas (1986), and Worldwide (1990). Mr. Costello also serves as Assistant Treasurer of other Fidelity funds and is an employee of FMR. | |
Francis V. Knox, Jr. (56) | |
Year of Election or Appointment: 2002 Assistant Treasurer of Global Balanced, International Growth & Income, Diversified International, Aggressive International, Overseas, and Worldwide. Mr. Knox also serves as Assistant Treasurer of other Fidelity funds (2002), and is a Vice President and an employee of FMR. Previously, Mr. Knox served as Vice President of Investment & Advisor Compliance (1990-2001), and Compliance Officer of Fidelity Management & Research (U.K.) Inc. (1992-2002), Fidelity Management & Research (Far East) Inc. (1991-2002), and FMR Corp (1995-2002). | |
Mark Osterheld (48) | |
Year of Election or Appointment: 2002 Assistant Treasurer of Global Balanced, International Growth & Income, Diversified International, Aggressive International, Overseas, and Worldwide. Mr. Osterheld also serves as Assistant Treasurer of other Fidelity funds (2002) and is an employee of FMR. | |
Thomas J. Simpson (45) | |
Year of Election or Appointment: 2000 Assistant Treasurer of Global Balanced, International Growth & Income, Diversified International, Aggressive International, Overseas, and Worldwide. Mr. Simpson is Assistant Treasurer of other Fidelity funds (2000) and an employee of FMR (1996). Prior to joining FMR, Mr. Simpson was Vice President and Fund Controller of Liberty Investment Services (1987-1995). |
A percentage of the dividends distributed during the fiscal year for the following funds was derived from interest on U.S. Government securities which is generally exempt from state income tax:
Fidelity Global Balanced Fund | 17.2% |
A percentage of the dividends distributed during the fiscal year for the following funds qualifies for the dividends-received deduction for corporate shareholders:
Fidelity Global Balanced Fund | 23% | |
Fidelity Worldwide Fund | 100% |
The amounts per share which represent income derived from sources within, and taxes paid to, foreign countries or possessions of the United States are as follows:
Fund | Pay Date | Income | Taxes |
Fidelity Global Balanced Fund | 12/09/02 | $0.167 | $0.010 |
Fidelity International Growth & Income Fund | 12/09/02 | $0.109 | $0.019 |
Fidelity Diversified International Fund | 12/16/02 | $0.155 | $0.025 |
Fidelity Aggressive International Fund | 12/16/02 | $0.020 | $0.010 |
Fidelity Overseas Fund | 12/09/02 | $0.121 | $0.031 |
The funds will notify shareholders in January 2004 of amounts for use in preparing 2003 income tax returns.
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research (U.K.) Inc.
Fidelity Management & Research (Far East) Inc.
Fidelity International Investment Advisors
Fidelity International Investment Advisors
(U.K.) Limited
Fidelity Investments Japan Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Shareholder
Servicing Agent
Fidelity Service Company, Inc.
Boston, MA
Custodians
Brown Brothers Harriman & Co.
Boston, MA
Global Balanced Fund
JPMorgan Chase Bank
New York, NY
Aggressive International Fund, Diversified International Fund, International Growth & Income Fund, Overseas Fund, Worldwide Fund
Fidelity's International Equity Funds
Aggressive International Fund
Canada Fund
China Region Fund
Diversified International Fund
Emerging Markets Fund
Europe Fund
Europe Capital Appreciation Fund
Global Balanced Fund
International Growth & Income Fund
International Small Cap Fund
Japan Fund
Japan Smaller Companies Fund
Latin America Fund
Nordic Fund
Overseas Fund
Pacific Basin Fund
Southeast Asia Fund
Worldwide Fund
Corporate Headquarters
82 Devonshire Street
Boston, MA 02109
1-800-544-8888
The Fidelity Telephone Connection
Mutual Fund 24-Hour Service
Exchanges/Redemptions
and Account Assistance 1-800-544-6666
Product Information 1-800-544-6666
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
Fidelity Automated Service
Telephone (FAST®) (automated graphic) 1-800-544-5555
(automated graphic) Automated line for quickest service
(Fidelity (registered trademark) INVESTMENTS)
P.O. Box 193
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Investments
Item 2. Code of Ethics
As of the end of the period, October 31, 2003, the Fidelity Investment Trust has adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies to its President and Treasurer and its Chief Financial Officer. A copy of the code of ethics is filed as an exhibit to this Form N-CSR.
Item 3. Audit Committee Financial Expert
The Board of Trustees of Fidelity Investment Trust has determined that Marie L. Knowles and Donald J. Kirk are each audit committee financial experts, as defined in Item 3 of Form N-CSR. Ms. Knowles and Mr. Kirk are each independent for purposes of Item 3 of Form N-CSR.
Item 4. Principal Accountant Fees and Services
Not applicable.
Item 5. Audit Committee of Listed Registrants
Not applicable.
Item 6. Reserved
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8. Reserved
Item 9. Controls and Procedures
(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the Fidelity Investment Trust'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 Trust's second fiscal half-year that has materially affected, or is reasonably likely to materially affect, the Trust's internal control over financial reporting.
Item 10. Exhibits
(a) | (1) | Code of Ethics pursuant to Item 2 of Form N-CSR is filed and attached hereto as EX-99.CODE ETH. |
(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. |
(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 Investment Trust
By: | /s/Maria Dwyer |
Maria Dwyer | |
President and Treasurer | |
Date: | December 23, 2003 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/Maria Dwyer |
Maria Dwyer | |
President and Treasurer | |
Date: | December 23, 2003 |
By: | /s/Timothy F. Hayes |
Timothy F. Hayes | |
Chief Financial Officer | |
Date: | December 23, 2003 |