N-CSRS 1 main.htm

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-3855

Fidelity Advisor Series VIII
 (Exact name of registrant as specified in charter)

82 Devonshire St., Boston, Massachusetts 02109
 (Address of principal executive offices)       (Zip code)

Scott C. Goebel, Secretary

82 Devonshire St.

Boston, Massachusetts 02109
(Name and address of agent for service)

Registrant's telephone number, including area code: 617-563-7000

Date of fiscal year end:

December 31

 

 

Date of reporting period:

June 30, 2011

Item 1. Reports to Stockholders

(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Emerging Markets Income
Fund - Class A, Class T, Class B
and Class C

Semiannual Report

June 30, 2011

(2_fidelity_logos) (Registered_Trademark)

Contents

Chairman's Message

<Click Here>

The Chairman's message to shareholders.

Shareholder Expense Example

<Click Here>

An example of shareholder expenses.

Investment Changes

<Click Here>

A summary of major shifts in the fund's investments over the past six months.

Investments

<Click Here>

A complete list of the fund's investments with their market values.

Financial Statements

<Click Here>

Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights.

Notes

<Click Here>

Notes to the financial statements.

To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.

Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.

Other third party marks appearing herein are the property of their respective owners.

All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.

This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.

A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.

NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE

Neither the fund nor Fidelity Distributors Corporation is a bank.

Semiannual Report

Chairman's Message

(photo_of_James_C_Curvey)

Dear Shareholder:

Despite bouts of short-term volatility, U.S. equities gained ground in the first half of 2011, buoyed by solid corporate earnings and modest improvement in employment. A strong start had the market up more than 100% off its March 2009 low, but investors were unnerved by this past March's natural disaster in Japan, while weaker economic data and new concern about Greek debt hurt performance during May and June. The longer-term outlook remains clouded by the impact of inflationary pressure and persistently high unemployment. Financial markets are always unpredictable, of course, but there are several time-tested investment principles that can help put the odds in your favor.

One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.

You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).

A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.

We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.

Sincerely,


(The acting chairman's signature appears here.)

James C. Curvey
Acting Chairman

Semiannual Report

Shareholder Expense Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (January 1, 2011 to June 30, 2011).

Actual Expenses

The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.

Hypothetical Example for Comparison Purposes

The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Semiannual Report

Shareholder Expense Example - continued

 

Annualized
Expense
Ratio

Beginning
Account Value
January 1, 2011

Ending
Account Value
June 30, 2011

Expenses Paid
During Period*
January 1, 2011
to June 30, 2011

Class A

1.19%

 

 

 

Actual

 

$ 1,000.00

$ 1,043.90

$ 6.03

HypotheticalA

 

$ 1,000.00

$ 1,018.89

$ 5.96

Class T

1.20%

 

 

 

Actual

 

$ 1,000.00

$ 1,043.30

$ 6.08

HypotheticalA

 

$ 1,000.00

$ 1,018.84

$ 6.01

Class B

1.88%

 

 

 

Actual

 

$ 1,000.00

$ 1,039.90

$ 9.51

HypotheticalA

 

$ 1,000.00

$ 1,015.47

$ 9.39

Class C

1.93%

 

 

 

Actual

 

$ 1,000.00

$ 1,039.80

$ 9.76

HypotheticalA

 

$ 1,000.00

$ 1,015.22

$ 9.64

Institutional Class

.90%

 

 

 

Actual

 

$ 1,000.00

$ 1,044.60

$ 4.56

HypotheticalA

 

$ 1,000.00

$ 1,020.33

$ 4.51

A 5% return per year before expenses

* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

Semiannual Report

Investment Changes (Unaudited)

Top Five Countries as of June 30, 2011

(excluding cash equivalents)

% of fund's
net assets

% of fund's net assets
6 months ago

Venezuela

11.4

9.0

Turkey

9.0

7.0

Russia

6.8

7.8

Mexico

5.6

4.0

Philippines

5.6

4.6

Percentages are adjusted for the effect of open futures contracts, if applicable.

Top Five Holdings as of June 30, 2011

(by issuer, excluding cash equivalents)

% of fund's
net assets

% of fund's net assets
6 months ago

Turkish Republic

8.0

6.8

Russian Federation

6.4

7.6

Venezuelan Republic

6.1

6.2

United Mexican States

4.7

3.2

Brazilian Federative Republic

4.4

3.4

 

29.6

Asset Allocation (% of fund's net assets)

As of June 30, 2011

As of December 31, 2010

fid322

Corporate Bonds 35.0%

 

fid322

Corporate Bonds 28.1%

 

fid325

Government
Obligations 60.3%

 

fid325

Government
Obligations 59.4%

 

fid328

Supranational Obligations 0.5%

 

fid328

Supranational Obligations 0.4%

 

fid331

Short-Term
Investments and
Net Other Assets 4.2%

 

fid331

Short-Term
Investments and
Net Other Assets 12.1%

 

fid334

Semiannual Report

Investments June 30, 2011 (Unaudited)

Showing Percentage of Net Assets

Nonconvertible Bonds - 35.0%

 

Principal Amount (c)

Value

Argentina - 0.4%

City of Buenos Aires 12.5% 4/6/15 (e)

$ 970,000

$ 1,097,555

Empresa Distribuidora y Comercializadora Norte SA 9.75% 10/25/22 (e)

1,170,000

1,181,700

Pan American Energy LLC 7.875% 5/7/21 (e)

950,000

1,014,125

Transportadora de Gas del Sur SA 7.875% 5/14/17 (e)

1,065,000

1,033,050

TOTAL ARGENTINA

4,326,430

Bermuda - 0.6%

Noble Group Ltd. 6.75% 1/29/20 (e)

930,000

973,013

Qtel International Finance Ltd.:

3.375% 10/14/16 (e)

2,045,000

2,038,701

5% 10/19/25 (e)

3,780,000

3,493,930

TOTAL BERMUDA

6,505,644

Brazil - 1.2%

Banco Nacional de Desenvolvimento Economico e Social 5.5% 7/12/20 (e)

2,560,000

2,713,600

Braskem Finance Ltd. 7% 5/7/20 (e)

1,830,000

1,992,413

Centrais Eletricas Brasileiras SA (Electrobras) 6.875% 7/30/19 (e)

2,325,000

2,633,063

Globo Comunicacoes e Participacoes SA 6.25% (d)(e)(f)

2,675,000

2,822,125

Net Servicos de Comunicacao SA 7.5% 1/27/20

920,000

1,051,100

Rearden G Holdings Eins GmbH 7.875% 3/30/20 (e)

1,980,000

2,148,300

TOTAL BRAZIL

13,360,601

British Virgin Islands - 0.8%

Gerdau Trade, Inc. 5.75% 1/30/21 (e)

1,585,000

1,610,756

Gold Fields Orogen Holding BVI Ltd. 4.875% 10/7/20 (e)

2,190,000

2,048,263

Sinochem Overseas Capital Co. Ltd. 4.5% 11/12/20 (e)

5,775,000

5,561,903

TOTAL BRITISH VIRGIN ISLANDS

9,220,922

Cayman Islands - 3.4%

CSN Islands XI Corp. 6.875% 9/21/19 (e)

1,910,000

2,081,900

Hutchison Whampoa International 09 Ltd. 7.625% 4/9/19 (Reg. S)

1,035,000

1,226,998

Hutchison Whampoa International 10 Ltd. 6% (e)(f)(g)

9,360,000

9,594,000

Odebrecht Finance Ltd.:

6% 4/5/23 (e)

1,615,000

1,606,925

7% 4/21/20 (e)

1,480,000

1,626,150

7.5% (e)(f)

3,325,000

3,358,250

Nonconvertible Bonds - continued

 

Principal Amount (c)

Value

Cayman Islands - continued

Petrobras International Finance Co. Ltd.:

5.375% 1/27/21

$ 8,705,000

$ 8,966,585

5.75% 1/20/20

1,795,000

1,914,825

6.875% 1/20/40

4,735,000

5,113,800

8.375% 12/10/18

1,990,000

2,452,679

TOTAL CAYMAN ISLANDS

37,942,112

Colombia - 1.8%

BanColombia SA:

4.25% 1/12/16 (e)

4,955,000

4,979,775

5.95% 6/3/21 (e)

5,385,000

5,446,928

6.125% 7/26/20

3,260,000

3,292,600

Ecopetrol SA 7.625% 7/23/19

4,140,000

4,957,650

Empresas Publicas de Medellin 7.625% 7/29/19 (e)

1,390,000

1,615,875

TOTAL COLOMBIA

20,292,828

Egypt - 0.2%

African Export-Import Bank 8.75% 11/13/14

1,740,000

1,961,850

Georgia - 0.1%

Georgian Railway Ltd. 9.875% 7/22/15

1,255,000

1,394,619

Indonesia - 1.3%

PT Adaro Indonesia 7.625% 10/22/19 (e)

2,210,000

2,453,100

PT Pertamina Persero 5.25% 5/23/21 (e)

12,130,000

12,251,300

TOTAL INDONESIA

14,704,400

Ireland - 2.0%

Novatek Finance Ltd. 6.604% 2/3/21 (e)

2,535,000

2,639,696

SCF Capital Ltd. 5.375% 10/27/17 (e)

5,170,000

5,170,000

Vimpel Communications 8.375% 4/30/13 (Issued by VIP Finance Ireland Ltd. for Vimpel Communications) (e)

1,955,000

2,106,513

VIP Finance Ireland Ltd.:

6.493% 2/2/16 (e)

1,095,000

1,123,799

7.748% 2/2/21 (e)

1,210,000

1,243,275

Vnesheconombank Via VEB Finance Ltd.:

5.45% 11/22/17 (e)

4,110,000

4,192,200

6.8% 11/22/25 (e)

4,980,000

5,048,475

TOTAL IRELAND

21,523,958

Isle of Man - 0.2%

AngloGold Ashanti Holdings PLC 5.375% 4/15/20

2,385,000

2,353,971

Nonconvertible Bonds - continued

 

Principal Amount (c)

Value

Kazakhstan - 0.1%

Development Bank of Kazakhstan JSC 5.5% 12/20/15 (e)

$ 1,510,000

$ 1,562,850

Korea (South) - 1.7%

Export-Import Bank of Korea:

3.75% 10/20/16

2,145,000

2,159,157

5.125% 6/29/20

2,160,000

2,203,200

Hyundai Capital Services, Inc. 6% 5/5/15 (e)

2,460,000

2,702,925

Industrial Bank of Korea 7.125% 4/23/14 (e)

2,120,000

2,387,968

Korea Development Bank 4.375% 8/10/15

1,930,000

2,020,131

Korea Expressway Corp. 4.5% 3/23/15 (e)

1,940,000

2,030,986

POSCO 8.75% 3/26/14 (e)

1,590,000

1,862,526

Woori Bank 5.875% 4/13/21 (e)

3,215,000

3,223,038

TOTAL KOREA (SOUTH)

18,589,931

Luxembourg - 2.7%

ArcelorMittal SA 7% 10/15/39

2,160,000

2,183,963

Gaz Capital SA (Luxembourg):

6.51% 3/7/22 (e)

1,845,000

1,946,475

9.25% 4/23/19 (e)

4,610,000

5,733,918

Gazprom International SA 7.201% 2/1/20

1,909,636

2,091,051

OJSC Russian Agricultural Bank:

6.299% 5/15/17 (Issued by RSHB Capital SA for OJSC Russian Agricultural Bank) (e)

1,665,000

1,769,063

6.97% 9/21/16 (Issued by RSHB Capital SA for OJSC Russian Agricultural Bank) (g)

1,765,000

1,767,206

7.125% 1/14/14 (Issued by RSHB Capital SA for OJSC Russian Agricultural Bank) (e)

1,355,000

1,465,094

7.175% 5/16/13 (Issued by RSHB Capital SA for OJSC Russian Agricultural Bank) (e)

1,040,000

1,118,000

7.75% 5/29/18 (Issued by RSHB Capital SA for OJSC Russian Agricultural Bank) (e)

2,265,000

2,593,425

RSHB Capital SA 9% 6/11/14 (e)

1,215,000

1,386,801

Steel Capital SA 6.7% 10/25/17 (e)

2,575,000

2,636,285

TNK-BP Finance SA:

7.5% 3/13/13 (e)

1,070,000

1,158,275

7.875% 3/13/18 (Reg. S)

1,450,000

1,662,063

VTB Capital SA 6.465% 3/4/15 (e)

1,860,000

1,971,600

TOTAL LUXEMBOURG

29,483,219

Mexico - 0.9%

Alestra SA de RL de CV 11.75% 8/11/14

1,320,000

1,511,400

Bbva Bancomer SA 4.5% 3/10/16 (e)

1,630,000

1,654,450

Nonconvertible Bonds - continued

 

Principal Amount (c)

Value

Mexico - continued

Petroleos Mexicanos:

6% 3/5/20

$ 2,105,000

$ 2,304,975

6.625% (e)(f)

4,855,000

4,891,413

TOTAL MEXICO

10,362,238

Mongolia - 0.2%

Trade & Development Bank of Mongolia LLC 8.5% 10/25/13 (Reg. S)

1,950,000

2,003,625

Netherlands - 4.3%

Bulgaria Steel Finance BV 12% 5/4/13 unit (b)

EUR

600,000

87,018

Indosat Palapa Co. BV 7.375% 7/29/20 (e)

2,390,000

2,646,925

Intergas Finance BV 6.375% 5/14/17 (Reg. S)

5,489,000

5,900,675

Kazakhstan Temir Zholy Finance BV 6.375% 10/6/20 (e)

2,445,000

2,610,038

KazMunaiGaz Finance Sub BV:

6.375% 4/9/21 (e)

1,840,000

1,941,200

7% 5/5/20 (e)

1,720,000

1,892,000

8.375% 7/2/13 (e)

1,480,000

1,616,900

9.125% 7/2/18 (e)

5,865,000

7,213,950

11.75% 1/23/15 (e)

1,930,000

2,395,709

Lukoil International Finance BV 6.125% 11/9/20 (e)

2,385,000

2,452,472

Majapahit Holding BV:

7.25% 6/28/17 (Reg. S)

1,105,000

1,256,938

7.75% 10/17/16 (Reg. S)

1,720,000

1,999,500

7.75% 1/20/20 (e)

2,900,000

3,393,000

7.875% 6/29/37 (Reg. S)

4,065,000

4,664,588

8% 8/7/19 (e)

1,700,000

2,010,250

Myriad International Holding BV 6.375% 7/28/17 (e)

2,455,000

2,648,331

VimpelCom Holdings BV 7.5043% 3/1/22 (e)

2,150,000

2,150,000

TOTAL NETHERLANDS

46,879,494

Peru - 0.2%

Banco de Credito del Peru 4.75% 3/16/16 (e)

1,845,000

1,821,938

Philippines - 1.4%

National Power Corp. 6.875% 11/2/16 (e)

3,335,000

3,818,575

Power Sector Assets and Liabilities Management Corp.:

7.25% 5/27/19 (e)

4,250,000

5,036,250

7.39% 12/2/24 (e)

5,760,000

6,825,600

TOTAL PHILIPPINES

15,680,425

Qatar - 0.2%

Qtel International Finance Ltd. 6.5% 6/10/14 (e)

2,310,000

2,564,100

Nonconvertible Bonds - continued

 

Principal Amount (c)

Value

Russia - 0.4%

MTS International Funding Ltd. 8.625% 6/22/20 (e)

$ 3,655,000

$ 4,162,314

South Africa - 0.4%

Eskom Holdings Ltd. 5.75% 1/26/21 (Reg. S)

4,430,000

4,585,050

Trinidad & Tobago - 0.3%

Petroleum Co. of Trinidad & Tobago Ltd. 9.75% 8/14/19 (e)

2,745,000

3,294,000

Turkey - 1.0%

Turkiye Garanti Bankasi AS:

2.774% 4/20/16 (e)(g)

5,365,000

5,324,763

6.25% 4/20/21 (e)

5,365,000

5,210,756

TOTAL TURKEY

10,535,519

Ukraine - 0.4%

Naftogaz of Ukraine NJSC 9.5% 9/30/14

3,645,000

3,982,163

United Kingdom - 0.3%

Afren PLC 11.5% 2/1/16 (e)

1,405,000

1,534,963

Biz Finance PLC 8.375% 4/27/15 (Reg. S)

1,865,000

1,948,925

TOTAL UNITED KINGDOM

3,483,888

United States of America - 3.2%

Drummond Co., Inc.:

7.375% 2/15/16

1,555,000

1,570,550

9% 10/15/14 (e)

3,062,000

3,222,755

Gerdau Holdings, Inc. 7% 1/20/20 (e)

1,365,000

1,515,150

Korea Development Bank 4% 9/9/16

2,580,000

2,640,372

NII Capital Corp.:

8.875% 12/15/19

1,875,000

2,062,500

10% 8/15/16

2,955,000

3,427,800

Pemex Project Funding Master Trust:

6.625% 6/15/35

9,415,000

9,826,906

8.625% 2/1/22

8,545,000

10,681,250

TOTAL UNITED STATES OF AMERICA

34,947,283

Venezuela - 5.3%

Petroleos de Venezuela SA:

4.9% 10/28/14

3,815,000

2,928,013

5.25% 4/12/17

12,015,000

7,539,413

5.375% 4/12/27

20,680,000

10,340,000

5.5% 4/12/37

23,250,000

11,392,500

Nonconvertible Bonds - continued

 

Principal Amount (c)

Value

Venezuela - continued

Petroleos de Venezuela SA 144A:

8.5% 11/2/17 (e)

$ 23,100,000

$ 17,036,250

12.75% 2/17/22 (e)

11,730,000

9,589,275

TOTAL VENEZUELA

58,825,451

TOTAL NONCONVERTIBLE BONDS

(Cost $371,685,360)

386,350,823

Government Obligations - 60.3%

 

Argentina - 2.2%

Argentine Republic:

discount:

(with partial capitalization through 12/31/13) 8.28% 12/31/33

11,133,093

9,824,955

(with partial capitalization through 12/31/13) 8.28% 12/31/33

2,325,574

1,988,366

2.5% 12/31/38 (d)

12,110,000

5,267,850

7% 9/12/13

5,705,000

5,792,952

8.75% 6/2/17

1,283,801

1,335,153

TOTAL ARGENTINA

24,209,276

Bahamas (Nassau) - 0.4%

Bahamian Republic 6.95% 11/20/29 (e)

3,740,000

4,039,200

Barbados - 0.8%

Barbados Government:

7% 8/4/22 (e)

4,557,000

4,693,710

7.25% 12/15/21 (e)

3,635,000

3,816,750

TOTAL BARBADOS

8,510,460

Belarus - 0.6%

Belarus Republic:

8.75% 8/3/15 (Reg. S)

6,380,000

5,742,000

8.95% 1/26/18

925,000

814,000

TOTAL BELARUS

6,556,000

Belize - 0.1%

Belize Government 6% 2/20/29 (d)(e)

2,114,700

1,395,702

Government Obligations - continued

 

Principal Amount (c)

Value

Bermuda - 0.6%

Bermuda Government 5.603% 7/20/20 (e)

$ 4,078,000

$ 4,516,385

Noble Group Ltd. 6.625% 8/5/20 (e)

1,660,000

1,703,575

TOTAL BERMUDA

6,219,960

Brazil - 4.4%

Brazilian Federative Republic:

5.625% 1/7/41

3,595,000

3,688,470

5.875% 1/15/19

4,815,000

5,568,548

7.125% 1/20/37

3,070,000

3,783,775

8% 1/15/18

1,481,667

1,781,704

8.25% 1/20/34

2,040,000

2,799,900

8.875% 4/15/24

2,290,000

3,274,700

10.125% 5/15/27

3,920,000

6,134,800

11% 8/17/40

5,450,000

7,425,625

12.25% 3/6/30

6,315,000

11,556,450

12.75% 1/15/20

1,225,000

2,021,250

TOTAL BRAZIL

48,035,222

Cayman Islands - 0.4%

Cayman Island Government 5.95% 11/24/19 (e)

3,880,000

4,141,900

Colombia - 2.0%

Colombian Republic:

6.125% 1/18/41

2,580,000

2,805,750

7.375% 3/18/19

2,605,000

3,243,225

7.375% 9/18/37

2,040,000

2,570,400

10.375% 1/28/33

4,490,000

7,094,200

11.75% 2/25/20

4,093,000

6,323,685

TOTAL COLOMBIA

22,037,260

Congo - 0.5%

Congo Republic 3% 6/30/29 (d)

9,267,250

6,023,713

Croatia - 1.3%

Croatia Republic:

6.375% 3/24/21 (e)

3,665,000

3,797,856

6.625% 7/14/20 (e)

4,980,000

5,272,575

6.75% 11/5/19 (e)

4,890,000

5,270,002

TOTAL CROATIA

14,340,433

Government Obligations - continued

 

Principal Amount (c)

Value

Dominican Republic - 0.3%

Dominican Republic:

7.5% 5/6/21 (e)

$ 1,450,000

$ 1,508,000

9.04% 1/23/18 (e)

1,420,870

1,594,926

TOTAL DOMINICAN REPUBLIC

3,102,926

Ecuador - 0.1%

Ecuador Republic 9.375% 12/15/15 (e)

1,695,000

1,686,525

El Salvador - 0.3%

El Salvador Republic:

7.375% 12/1/19 (e)

1,315,000

1,446,500

7.65% 6/15/35 (Reg. S)

1,725,000

1,785,375

TOTAL EL SALVADOR

3,231,875

Gabon - 0.2%

Gabonese Republic 8.2% 12/12/17 (e)

1,665,000

1,952,213

Georgia - 0.4%

Georgia Republic 6.875% 4/12/21 (e)

4,285,000

4,392,125

Ghana - 0.4%

Ghana Republic:

8.5% 10/4/17 (e)

1,375,000

1,550,313

14.25% 7/29/13

GHS

1,330,000

896,600

14.99% 3/11/13

GHS

2,380,000

1,621,313

TOTAL GHANA

4,068,226

Iceland - 0.2%

Republic of Iceland 4.875% 6/16/16 (e)

2,150,000

2,158,063

Indonesia - 4.1%

Indonesian Republic:

5.875% 3/13/20 (e)

3,185,000

3,543,313

6.625% 2/17/37 (e)

3,765,000

4,188,563

6.75% 3/10/14 (Reg. S)

2,515,000

2,801,207

6.875% 3/9/17 (e)

2,990,000

3,502,187

6.875% 1/17/18 (e)

3,825,000

4,480,223

7.25% 4/20/15 (e)

1,615,000

1,879,537

7.5% 1/15/16 (e)

2,310,000

2,740,353

7.75% 1/17/38 (e)

5,465,000

6,844,913

8.5% 10/12/35 (e)

4,815,000

6,500,250

10.375% 5/4/14 (e)

1,715,000

2,098,817

11.625% 3/4/19 (e)

4,665,000

6,892,538

TOTAL INDONESIA

45,471,901

Government Obligations - continued

 

Principal
Amount (c)

Value

Iraq - 1.0%

Republic of Iraq 5.8% 1/15/28 (Reg. S)

$ 11,790,000

$ 10,611,000

Korea (South) - 0.5%

Korean Republic 4% 6/10/12

KRW

5,890,000,000

5,539,188

Lebanon - 1.1%

Lebanese Republic:

4% 12/31/17

4,982,250

4,801,893

9% 3/20/17

2,365,000

2,778,875

11.625% 5/11/16 (Reg. S)

3,290,000

4,170,075

TOTAL LEBANON

11,750,843

Lithuania - 1.4%

Lithuanian Republic:

5.125% 9/14/17 (e)

5,560,000

5,712,900

6.125% 3/9/21 (e)

1,870,000

1,984,538

6.75% 1/15/15 (e)

3,515,000

3,870,894

7.375% 2/11/20 (e)

3,545,000

4,085,613

TOTAL LITHUANIA

15,653,945

Mexico - 4.7%

United Mexican States:

5.125% 1/15/20

6,622,000

7,151,760

5.625% 1/15/17

6,607,000

7,515,463

5.75% 10/12/2110

3,202,000

2,984,264

6.05% 1/11/40

19,442,000

20,686,288

6.75% 9/27/34

3,410,000

3,964,125

11.375% 9/15/16

2,439,000

3,463,380

11.5% 5/15/26

3,595,000

6,650,750

TOTAL MEXICO

52,416,030

Nigeria - 0.2%

Republic of Nigeria 6.75% 1/28/21 (e)

2,620,000

2,751,000

Peru - 0.8%

Peruvian Republic:

7.35% 7/21/25

3,725,000

4,535,188

8.75% 11/21/33

2,940,000

4,005,750

TOTAL PERU

8,540,938

Philippines - 4.2%

Philippine Republic:

4% 1/15/21

2,380,000

2,341,444

Government Obligations - continued

 

Principal Amount (c)

Value

Philippines - continued

Philippine Republic: - continued

6.375% 10/23/34

$ 7,350,000

$ 8,057,805

6.5% 1/20/20

6,615,000

7,706,475

7.75% 1/14/31

8,955,000

11,283,300

9.5% 2/2/30

3,300,000

4,793,250

10.625% 3/16/25

8,265,000

12,604,125

TOTAL PHILIPPINES

46,786,399

Poland - 0.5%

Polish Government 6.375% 7/15/19

5,350,000

6,099,000

Qatar - 0.5%

State of Qatar:

4% 1/20/15 (e)

3,555,000

3,723,258

6.4% 1/20/40 (e)

2,095,000

2,315,729

TOTAL QATAR

6,038,987

Russia - 6.4%

Russian Federation:

3.625% 4/29/15 (e)

5,100,000

5,227,500

5% 4/29/20 (e)

5,100,000

5,259,630

7.5% 3/31/30 (Reg. S)

41,494,050

48,900,718

12.75% 6/24/28 (Reg. S)

6,364,000

11,264,280

TOTAL RUSSIA

70,652,128

Senegal - 0.1%

Republic of Senegal 8.75% 5/13/21 (e)

1,310,000

1,347,663

Serbia - 0.2%

Republic of Serbia 6.75% 11/1/24 (e)

2,542,500

2,542,500

Sri Lanka - 0.5%

Democratic Socialist Republic of Sri Lanka:

6.25% 10/4/20 (e)

3,680,000

3,707,600

8.25% 10/24/12 (e)

1,460,000

1,556,725

TOTAL SRI LANKA

5,264,325

Turkey - 8.0%

Turkish Republic:

0% 2/20/13

TRY

10,095,000

5,381,802

5.625% 3/30/21

11,425,000

11,956,263

6% 1/14/41

2,700,000

2,629,800

6.75% 4/3/18

1,615,000

1,836,255

6.75% 5/30/40

5,200,000

5,616,000

Government Obligations - continued

 

Principal Amount (c)

Value

Turkey - continued

Turkish Republic: - continued

6.875% 3/17/36

$ 7,600,000

$ 8,360,000

7% 9/26/16

1,225,000

1,403,238

7% 3/11/19

5,940,000

6,845,850

7% 6/5/20

4,955,000

5,710,638

7.25% 3/15/15

2,095,000

2,389,348

7.25% 3/5/38

2,445,000

2,810,528

7.375% 2/5/25

7,920,000

9,381,240

7.5% 7/14/17

1,735,000

2,039,493

7.5% 11/7/19

2,255,000

2,676,685

8% 2/14/34

8,380,000

10,403,770

11.875% 1/15/30

5,055,000

8,593,500

TOTAL TURKEY

88,034,410

Ukraine - 2.1%

Ukraine Financing of Infrastructure Projects State Enterprise 8.375% 11/3/17 (e)

3,145,000

3,278,663

Ukraine Government:

6.25% 6/17/16 (e)

5,605,000

5,599,395

6.385% 6/26/12 (e)

1,260,000

1,291,500

6.58% 11/21/16 (e)

2,095,000

2,111,760

6.75% 11/14/17 (e)

2,690,000

2,703,450

7.65% 6/11/13 (Reg. S)

2,980,000

3,130,490

7.75% 9/23/20 (e)

3,665,000

3,798,773

7.95% 2/23/21 (e)

1,505,000

1,567,458

TOTAL UKRAINE

23,481,489

United States of America - 2.2%

U.S. Treasury Bonds 4.375% 5/15/41

23,782,000

23,748,467

Uruguay - 0.4%

Uruguay Republic 7.625% 3/21/36

3,300,000

4,149,750

Venezuela - 6.1%

Venezuelan Republic:

oil recovery rights 4/15/20 (h)

10,490

285,853

5.75% 2/26/16 (Reg S.)

3,635,000

2,798,950

6% 12/9/20

4,160,000

2,575,040

7.75% 10/13/19 (Reg. S)

12,750,000

9,148,125

8.25% 10/13/24

6,450,000

4,369,875

8.5% 10/8/14

3,490,000

3,158,450

9% 5/7/23 (Reg. S)

9,045,000

6,503,355

9.25% 9/15/27

8,805,000

6,603,750

Government Obligations - continued

 

Principal Amount (c)

Value

Venezuela - continued

Venezuelan Republic: - continued

9.25% 5/7/28 (Reg. S)

$ 10,105,000

$ 7,053,290

9.375% 1/13/34

3,460,000

2,435,840

10.75% 9/19/13

7,670,000

7,574,125

12.75% 8/23/22

15,995,000

14,315,525

TOTAL VENEZUELA

66,822,178

Vietnam - 0.1%

Vietnamese Socialist Republic 6.875% 1/15/16 (e)

1,445,000

1,538,925

TOTAL GOVERNMENT OBLIGATIONS

(Cost $623,344,593)

665,342,145

Supranational Obligations - 0.5%

 

Central American Bank 5.375% 9/24/14 (e)

1,770,000

1,924,875

Corporacion Andina de Fomento 8.125% 6/4/19

1,610,000

1,951,803

Eurasian Development Bank 7.375% 9/29/14 (e)

980,000

1,078,000

TOTAL SUPRANATIONAL OBLIGATIONS

(Cost $4,451,285)

4,954,678

Money Market Funds - 4.0%

Shares

 

Fidelity Cash Central Fund, 0.11% (a)
(Cost $44,492,836)

44,492,836

44,492,836

TOTAL INVESTMENT PORTFOLIO - 99.8%

(Cost $1,043,974,074)

1,101,140,482

NET OTHER ASSETS (LIABILITIES) - 0.2%

1,878,728

NET ASSETS - 100%

$ 1,103,019,210

Currency Abbreviations

EUR

-

European Monetary Unit

GHS

-

Ghana Cedi

KRW

-

Korean won

TRY

-

New Turkish Lira

Legend

(a) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.

(b) Non-income producing - Security is in default.

(c) Principal amount is stated in United States dollars unless otherwise noted.

(d) Security initially issued at one coupon which converts to a higher coupon at a specified 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 end of the period, the value of these securities amounted to $411,508,577 or 37.3% of net assets.

(f) Security is perpetual in nature with no stated maturity date.

(g) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end.

(h) Quantity represents share amount.

Affiliated Central Funds

Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:

Fund

Income earned

Fidelity Cash Central Fund

$ 31,755

Other Information

The following is a summary of the inputs used, as of June 30, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.

Valuation Inputs at Reporting Date:

Description

Total

Level 1

Level 2

Level 3

Investments in Securities:

Corporate Bonds

$ 386,350,823

$ -

$ 386,263,805

$ 87,018

Government Obligations

665,342,145

-

665,342,145

-

Supranational Obligations

4,954,678

-

4,954,678

-

Money Market Funds

44,492,836

44,492,836

-

-

Total Investments in Securities:

$ 1,101,140,482

$ 44,492,836

$ 1,056,560,628

$ 87,018

The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value:

Investments in Securities:

Beginning Balance

$ -

Total Realized Gain (Loss)

(1,382,023)

Total Unrealized Gain (Loss)

1,388,821

Cost of Purchases

-

Proceeds of Sales

-

Amortization/Accretion

-

Transfers in to Level 3

80,220

Transfers out of Level 3

-

Ending Balance

$ 87,018

The change in unrealized gain (loss) for the period attributable to Level 3 securities held at June 30, 2011

$ 6,798

The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations.

Other Information

The composition of credit quality ratings as a percentage of net assets is as follows (Unaudited):

U.S. Government and U.S. Government Agency Obligations

2.2%

AAA,AA,A

7.6%

BBB

37.8%

BB

24.0%

B

19.0%

CCC,CC,C

0.1%

Not Rated

5.1%

Equities

0.0%

Short-Term Investments and Net Other Assets

4.2%

 

100.0%

We have used ratings from Moody's® Investors Service, Inc. Where Moody's ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes. Percentages are adjusted for the effect of futures contracts, if applicable.

Income Tax Information

At December 31, 2010, the Fund had a capital loss carryforward of approximately $6,239,615 of which $3,380,295 and $2,859,320 will expire in fiscal 2016 and 2018, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited.

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Financial Statements

Statement of Assets and Liabilities

 

June 30, 2011 (Unaudited)

 

 

 

Assets

Investment in securities, at value - See accompanying schedule:

Unaffiliated issuers (cost $999,481,238)

$ 1,056,647,646

 

Fidelity Central Funds (cost $44,492,836)

44,492,836

 

Total Investments (cost $1,043,974,074)

 

$ 1,101,140,482

Cash

1,629,868

Receivable for investments sold

383,249

Receivable for fund shares sold

2,183,377

Interest receivable

19,631,662

Distributions receivable from Fidelity Central Funds

4,688

Other receivables

1,591

Total assets

1,124,974,917

 

 

 

Liabilities

Payable for investments purchased

$ 16,329,272

Payable for fund shares redeemed

2,994,648

Distributions payable

1,565,459

Accrued management fee

605,996

Distribution and service plan fees payable

199,862

Other affiliated payables

201,107

Other payables and accrued expenses

59,363

Total liabilities

21,955,707

 

 

 

Net Assets

$ 1,103,019,210

Net Assets consist of:

 

Paid in capital

$ 1,044,457,053

Undistributed net investment income

6,750,185

Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions

(5,279,449)

Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies

57,091,421

Net Assets

$ 1,103,019,210

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Statement of Assets and Liabilities - continued

June 30, 2011 (Unaudited)

 

 

Calculation of Maximum Offering Price

 

 Class A:
Net Asset Value and redemption price per share ($313,188,182 ÷ 23,121,128 shares)

$ 13.55

 

 

Maximum offering price per share (100/96.00 of $13.55)

$ 14.11

Class T:
Net Asset Value and redemption price per share ($105,874,963 ÷ 7,844,581 shares)

$ 13.50

 

 

Maximum offering price per share (100/96.00 of $13.50)

$ 14.06

Class B:
Net Asset Value and offering price per share ($19,306,649 ÷ 1,410,746 shares)A

$ 13.69

 

 

Class C:
Net Asset Value and offering price per share ($119,286,113 ÷ 8,752,590 shares)A

$ 13.63

 

 

Institutional Class:
Net Asset Value, offering price and redemption price per share ($545,363,303 ÷ 40,914,114 shares)

$ 13.33

A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Financial Statements - continued

Statement of Operations

Six months ended June 30, 2011 (Unaudited)

 

 

 

Investment Income

 

 

Interest

 

$ 34,824,767

Income from Fidelity Central Funds

 

31,755

Total income

 

34,856,522

 

 

 

Expenses

Management fee

$ 3,546,609

Transfer agent fees

957,633

Distribution and service plan fees

1,204,302

Accounting fees and expenses

247,192

Custodian fees and expenses

31,934

Independent trustees' compensation

2,701

Registration fees

120,463

Audit

39,323

Legal

912

Miscellaneous

1,710

Total expenses before reductions

6,152,779

Expense reductions

(64,272)

6,088,507

Net investment income (loss)

28,768,015

Realized and Unrealized Gain (Loss)

Net realized gain (loss) on:

Investment securities:

 

 

Unaffiliated issuers

6,915,142

Foreign currency transactions

(83,028)

Total net realized gain (loss)

 

6,832,114

Change in net unrealized appreciation (depreciation) on:

Investment securities

9,879,752

Assets and liabilities in foreign currencies

(4,837)

Total change in net unrealized appreciation (depreciation)

 

9,874,915

Net gain (loss)

16,707,029

Net increase (decrease) in net assets resulting from operations

$ 45,475,044

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Statement of Changes in Net Assets

 

Six months ended
June 30, 2011
(Unaudited)

Year ended
December 31,
2010

Increase (Decrease) in Net Assets

 

 

Operations

 

 

Net investment income (loss)

$ 28,768,015

$ 44,504,861

Net realized gain (loss)

6,832,114

1,509,426

Change in net unrealized appreciation (depreciation)

9,874,915

23,657,764

Net increase (decrease) in net assets resulting
from operations

45,475,044

69,672,051

Distributions to shareholders from net investment income

(26,864,957)

(41,828,114)

Distributions to shareholders from net realized gain

(1,205,889)

(4,787,777)

Total distributions

(28,070,846)

(46,615,891)

Share transactions - net increase (decrease)

23,449,578

478,286,286

Redemption fees

118,428

333,024

Total increase (decrease) in net assets

40,972,204

501,675,470

 

 

 

Net Assets

Beginning of period

1,062,047,006

560,371,536

End of period (including undistributed net investment income of $6,750,185 and undistributed net investment income of $4,847,127, respectively)

$ 1,103,019,210

$ 1,062,047,006

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Financial Highlights - Class A

 

Six months ended
June 30, 2011

Years ended December 31,

 

(Unaudited)

2010

2009

2008

2007

2006

Selected Per-Share Data

 

 

 

 

 

Net asset value, beginning of period

$ 13.32

$ 12.76

$ 9.51

$ 12.32

$ 12.40

$ 12.11

Income from Investment Operations

 

 

 

 

 

 

Net investment income (loss) E

  .357

  .717

  .950

  .675

  .709

  .715

Net realized and unrealized gain (loss)

  .217

  .568

  3.126

  (2.793)

  (.066)

  .638

Total from investment operations

  .574

  1.285

  4.076

  (2.118)

  .643

  1.353

Distributions from net investment income

  (.330)

  (.670)

  (.814)

  (.664)

  (.705)

  (.699)

Distributions from net realized gain

  (.015)

  (.060)

  (.015)

  (.030)

  (.020)

  (.367)

Total distributions

  (.345)

  (.730)

  (.829)

  (.694)

  (.725)

  (1.066)

Redemption fees added to paid in capital E

  .001

  .005

  .003

  .002

  .002

  .003

Net asset value, end of period

$ 13.55

$ 13.32

$ 12.76

$ 9.51

$ 12.32

$ 12.40

Total Return B,C,D

  4.39%

  10.28%

  44.11%

  (17.82)%

  5.36%

  11.57%

Ratios to Average Net Assets F,H

 

 

 

 

 

Expenses before reductions

  1.21% A

  1.24%

  1.29%

  1.32%

  1.27%

  1.28%

Expenses net of fee waivers, if any

  1.19% A

  1.20%

  1.20%

  1.20%

  1.18%

  1.10%

Expenses net of all reductions

  1.19% A

  1.20%

  1.20%

  1.20%

  1.17%

  1.09%

Net investment income (loss)

  5.39% A

  5.40%

  8.13%

  5.94%

  5.75%

  5.80%

Supplemental Data

 

 

 

 

 

 

Net assets, end of period (000 omitted)

$ 313,188

$ 310,674

$ 167,196

$ 60,543

$ 75,584

$ 65,593

Portfolio turnover rate G

  97% A

  96%

  123%

  57%

  72%

  105%

A Annualized

B Total returns for periods of less than one year are not annualized.

C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.

D Total returns do not include the effect of the sales charges.

E Calculated based on average shares outstanding during the period.

F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Financial Highlights - Class T

 

Six months ended
June 30, 2011

Years ended December 31,

 

(Unaudited)

2010

2009

2008

2007

2006

Selected Per-Share Data

 

 

 

 

 

Net asset value, beginning of period

$ 13.28

$ 12.71

$ 9.48

$ 12.28

$ 12.37

$ 12.08

Income from Investment Operations

 

 

 

 

 

 

Net investment income (loss) E

  .355

  .714

  .924

  .676

  .704

  .701

Net realized and unrealized gain (loss)

  .209

  .581

  3.132

  (2.784)

  (.074)

  .640

Total from investment operations

  .564

  1.295

  4.056

  (2.108)

  .630

  1.341

Distributions from net investment income

  (.330)

  (.670)

  (.814)

  (.664)

  (.702)

  (.687)

Distributions from net realized gain

  (.015)

  (.060)

  (.015)

  (.030)

  (.020)

  (.367)

Total distributions

  (.345)

  (.730)

  (.829)

  (.694)

  (.722)

  (1.054)

Redemption fees added to paid in capital E

  .001

  .005

  .003

  .002

  .002

  .003

Net asset value, end of period

$ 13.50

$ 13.28

$ 12.71

$ 9.48

$ 12.28

$ 12.37

Total Return B,C,D

  4.33%

  10.41%

  44.04%

  (17.80)%

  5.26%

  11.49%

Ratios to Average Net Assets F.H

 

 

 

 

 

Expenses before reductions

  1.23% A

  1.24%

  1.30%

  1.32%

  1.29%

  1.36%

Expenses net of fee waivers, if any

  1.20% A

  1.20%

  1.20%

  1.20%

  1.20%

  1.20%

Expenses net of all reductions

  1.20% A

  1.20%

  1.20%

  1.20%

  1.19%

  1.19%

Net investment income (loss)

  5.39% A

  5.40%

  8.13%

  5.95%

  5.73%

  5.70%

Supplemental Data

 

 

 

 

 

 

Net assets, end of period (000 omitted)

$ 105,875

$ 114,786

$ 106,446

$ 87,427

$ 136,031

$ 137,200

Portfolio turnover rate G

  97% A

  96%

  123%

  57%

  72%

  105%

A Annualized

B Total returns for periods of less than one year are not annualized.

C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.

D Total returns do not include the effect of the sales charges.

E Calculated based on average shares outstanding during the period.

F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Financial Highlights - Class B

 

Six months ended
June 30, 2011

Years ended December 31,

 

(Unaudited)

2010

2009

2008

2007

2006

Selected Per-Share Data

 

 

 

 

 

Net asset value, beginning of period

$ 13.46

$ 12.88

$ 9.60

$ 12.42

$ 12.50

$ 12.20

Income from Investment Operations

 

 

 

 

 

 

Net investment income (loss) E

  .315

  .637

  .861

  .609

  .632

  .628

Net realized and unrealized gain (loss)

  .213

  .580

  3.169

  (2.812)

  (.073)

  .642

Total from investment operations

  .528

  1.217

  4.030

  (2.203)

  .559

  1.270

Distributions from net investment income

  (.284)

  (.582)

  (.738)

  (.589)

  (.621)

  (.606)

Distributions from net realized gain

  (.015)

  (.060)

  (.015)

  (.030)

  (.020)

  (.367)

Total distributions

  (.299)

  (.642)

  (.753)

  (.619)

  (.641)

  (.973)

Redemption fees added to paid in capital E

  .001

  .005

  .003

  .002

  .002

  .003

Net asset value, end of period

$ 13.69

$ 13.46

$ 12.88

$ 9.60

$ 12.42

$ 12.50

Total Return B,C,D

  3.99%

  9.63%

  43.08%

  (18.29)%

  4.61%

  10.74%

Ratios to Average Net Assets F,H

 

 

 

 

 

Expenses before reductions

  1.92% A

  1.93%

  1.97%

  1.97%

  1.94%

  2.10%

Expenses net of fee waivers, if any

  1.88% A

  1.85%

  1.85%

  1.85%

  1.85%

  1.85%

Expenses net of all reductions

  1.88% A

  1.85%

  1.85%

  1.85%

  1.84%

  1.84%

Net investment income (loss)

  4.71% A

  4.75%

  7.48%

  5.30%

  5.08%

  5.06%

Supplemental Data

 

 

 

 

 

 

Net assets, end of period (000 omitted)

$ 19,307

$ 21,843

$ 18,398

$ 14,324

$ 22,418

$ 26,442

Portfolio turnover rate G

  97% A

  96%

  123%

  57%

  72%

  105%

A Annualized

B Total returns for periods of less than one year are not annualized.

C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.

D Total returns do not include the effect of the contingent deferred sales charge.

E Calculated based on average shares outstanding during the period.

F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Financial Highlights - Class C

 

Six months ended
June 30, 2011

Years ended December 31,

 

(Unaudited)

2010

2009

2008

2007

2006

Selected Per-Share Data

 

 

 

 

 

Net asset value, beginning of period

$ 13.40

$ 12.83

$ 9.56

$ 12.37

$ 12.46

$ 12.16

Income from Investment Operations

 

 

 

 

 

 

Net investment income (loss) E

  .310

  .622

  .867

  .594

  .616

  .613

Net realized and unrealized gain (loss)

  .215

  .572

  3.142

  (2.798)

  (.080)

  .645

Total from investment operations

  .525

  1.194

  4.009

  (2.204)

  .536

  1.258

Distributions from net investment income

  (.281)

  (.569)

  (.727)

  (.578)

  (.608)

  (.594)

Distributions from net realized gain

  (.015)

  (.060)

  (.015)

  (.030)

  (.020)

  (.367)

Total distributions

  (.296)

  (.629)

  (.742)

  (.608)

  (.628)

  (.961)

Redemption fees added to paid in capital E

  .001

  .005

  .003

  .002

  .002

  .003

Net asset value, end of period

$ 13.63

$ 13.40

$ 12.83

$ 9.56

$ 12.37

$ 12.46

Total Return B,C,D

  3.98%

  9.48%

  43.02%

  (18.37)%

  4.44%

  10.66%

Ratios to Average Net Assets F,H

 

 

 

 

 

Expenses before reductions

  1.96% A

  1.96%

  2.02%

  2.06%

  2.04%

  2.12%

Expenses net of fee waivers, if any

  1.93% A

  1.95%

  1.95%

  1.95%

  1.95%

  1.95%

Expenses net of all reductions

  1.93% A

  1.95%

  1.95%

  1.95%

  1.94%

  1.94%

Net investment income (loss)

  4.65% A

  4.65%

  7.38%

  5.20%

  4.98%

  4.95%

Supplemental Data

 

 

 

 

 

 

Net assets, end of period (000 omitted)

$ 119,286

$ 124,907

$ 63,669

$ 22,464

$ 30,962

$ 28,628

Portfolio turnover rate G

  97% A

  96%

  123%

  57%

  72%

  105%

A Annualized

B Total returns for periods of less than one year are not annualized.

C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.

D Total returns do not include the effect of the contingent deferred sales charge.

E Calculated based on average shares outstanding during the period.

F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Financial Highlights - Institutional Class

 

Six months ended
June 30, 2011

Years ended December 31,

 

(Unaudited)

2010

2009

2008

2007

2006

Selected Per-Share Data

 

 

 

 

 

Net asset value, beginning of period

$ 13.12

$ 12.57

$ 9.39

$ 12.16

$ 12.25

$ 11.98

Income from Investment Operations

 

 

 

 

 

 

Net investment income (loss) D

  .370

  .743

  .990

  .695

  .725

  .725

Net realized and unrealized gain (loss)

  .203

  .568

  3.044

  (2.745)

  (.064)

  .628

Total from investment operations

  .573

  1.311

  4.034

  (2.050)

  .661

  1.353

Distributions from net investment income

  (.349)

  (.706)

  (.842)

  (.692)

  (.733)

  (.718)

Distributions from net realized gain

  (.015)

  (.060)

  (.015)

  (.030)

  (.020)

  (.367)

Total distributions

  (.364)

  (.766)

  (.857)

  (.722)

  (.753)

  (1.085)

Redemption fees added to paid in capital D

  .001

  .005

  .003

  .002

  .002

  .002

Net asset value, end of period

$ 13.33

$ 13.12

$ 12.57

$ 9.39

$ 12.16

$ 12.25

Total Return B,C

  4.46%

  10.67%

  44.29%

  (17.52)%

  5.58%

  11.70%

Ratios to Average Net Assets E,G

 

 

 

 

 

Expenses before reductions

  .90% A

  .92%

  .97%

  1.02%

  .99%

  1.02%

Expenses net of fee waivers, if any

  .90% A

  .92%

  .95%

  .95%

  .95%

  .95%

Expenses net of all reductions

  .90% A

  .92%

  .95%

  .95%

  .95%

  .94%

Net investment income (loss)

  5.68% A

  5.68%

  8.38%

  6.19%

  5.97%

  5.96%

Supplemental Data

 

 

 

 

 

 

Net assets, end of period (000 omitted)

$ 545,363

$ 489,838

$ 204,663

$ 32,947

$ 45,232

$ 25,177

Portfolio turnover rate F

  97% A

  96%

  123%

  57%

  72%

  105%

A Annualized

B Total returns for periods of less than one year are not annualized.

C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.

D Calculated based on average shares outstanding during the period.

E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Notes to Financial Statements

For the period ended June 30, 2011 (Unaudited)

1. Organization.

Fidelity Advisor Emerging Markets Income Fund (the Fund) is a non-diversified fund of Fidelity Advisor Series VIII (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases, except for exchanges and reinvestments, by existing shareholders. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class.

2. Investments in Fidelity Central Funds.

The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.

The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.

A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, are available on the SEC web site or upon request.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

3. Significant Accounting Policies.

The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:

Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.

The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:

Level 1 - quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)

Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of June 30, 2011 for the Fund's investments, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows:

Debt securities, including restricted securities, are valued based on evaluated prices received from independent pricing services or from dealers who make markets in such securities. For corporate bonds, foreign government and government agency obligations, supranational obligations and U.S. government and government agency obligations,

Semiannual Report

3. Significant Accounting Policies - continued

Security Valuation - continued

pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy. The Fund invests a significant portion of its assets in below investment grade securities. The value of these securities can be more volatile due to changes in the credit quality of the issuer and is sensitive to changes in economic, market and regulatory conditions.

When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.

Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.

Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and 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. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Interest income and distributions from the Fidelity Central Funds are accrued as

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

3. Significant Accounting Policies - continued

Investment Transactions and Income - continued

earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. 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 collectability of interest is reasonably assured.

Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.

Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.

Dividends are declared and recorded daily and paid monthly from net investment income. Distributions from realized gains, if any, are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.

Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.

Book-tax differences are primarily due to foreign currency transactions, defaulted bonds, market discount, contingent interest, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.

Semiannual Report

3. Significant Accounting Policies - continued

Income Tax Information and Distributions to Shareholders - continued

The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:

Gross unrealized appreciation

$ 67,859,571

Gross unrealized depreciation

(6,432,710)

Net unrealized appreciation (depreciation) on securities and other investments

$ 61,426,861

 

 

Tax cost

$ 1,039,713,621

Under the recently enacted Regulated Investment Company Modernization Act of 2010 (the Act), the Fund will be permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. However, any losses incurred during those future taxable years will be required to be utilized prior to any losses incurred in pre-enactment taxable years, which generally expire after eight years from when they are incurred. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law. The Fund's first fiscal year end subject to the Act will be December 31, 2011.

Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days are subject to a redemption fee equal to 1.00% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.

New Accounting Pronouncement. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update changes the wording used to describe the requirements in GAAP for measuring fair value and for disclosing information about fair value measurements. The update is effective during interim and annual periods beginning after December 15, 2011. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

4. Operating Policies.

Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.

5. Purchases and Sales of Investments.

Purchases and sales of securities, other than short-term securities and U.S. government securities, aggregated $431,825,236 and $349,793,473, respectively.

6. Fees and Other Transactions with Affiliates.

Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .55% of the Fund's average net assets and a group fee rate that averaged .11% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .67% of the Fund's average net assets.

Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:

 

Distribution
Fee

Service
Fee

Total
Fees

Retained
by FDC

Class A

-%

.25%

$ 382,830

$ 22,927

Class T

-%

.25%

136,502

-

Class B

.65%

.25%

89,977

65,261

Class C

.75%

.25%

594,993

257,465

 

 

 

$ 1,204,302

$ 345,653

Semiannual Report

6. Fees and Other Transactions with Affiliates - continued

Sales Load. FDC may receive a front-end sales charge of up to 4.00% for selling Class A shares and Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, .75% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.

For the period, sales charge amounts retained by FDC were as follows:

 

Retained
by FDC

Class A

$ 34,040

Class T

6,131

Class B*

18,694

Class C*

27,040

 

$ 85,905

* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.

Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:

 

Amount

% of
Average
Net Assets*

Class A

$ 315,956

.21

Class T

122,329

.23

Class B

25,771

.26

Class C

113,730

.19

Institutional Class 

379,847

.15

 

$ 957,633

 

* Annualized

Accounting Fees. Fidelity Service Company, Inc.(FSC), an affiliate of FMR, maintains the Fund's accounting records. The fee is based on the level of average net assets for the month.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

7. Committed Line of Credit.

The Fund participates with other funds managed by FMR or an affiliate in a $4.0 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $1,850 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.

8. Expense Reductions.

FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.

The following classes were in reimbursement during the period:

 

Expense
Limitations

Reimbursement
from adviser

 

 

 

Class A

1.20% - 1.25%*

$ 32,904

Class T

1.20% - 1.25%*

13,059

Class B

1.85% - 1.90%*

4,303

Class C

1.95% - 2.00%*

13,656

 

 

$ 63,922

* Expense limitation in effect at period end.

Effective March 1, 2011 the expense limitations were changed to 1.25%, 1.25%, 1.90% and 2.00% for Class A, T, B and C, respectively.

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. During the period, these credits reduced the Fund's custody expenses by $350.

Semiannual Report

9. Distributions to Shareholders.

Distributions to shareholders of each class were as follows:

Six months ended
June 30, 2011

Year ended
December 31, 2010

From net investment income

 

 

Class A

$ 7,584,943

$ 12,186,295

Class T

2,711,921

5,976,443

Class B

421,938

914,328

Class C

2,488,448

3,972,728

Institutional Class

13,657,707

18,778,320

Total

$ 26,864,957

$ 41,828,114

From net realized gain

 

 

Class A

$ 343,619

$ 1,393,614

Class T

126,989

521,718

Class B

23,136

97,418

Class C

137,304

555,098

Institutional Class 

574,841

2,219,929

Total

$ 1,205,889

$ 4,787,777

10. Share Transactions.

Transactions for each class of shares were as follows:

 

Shares

Dollars

Six months ended
June 30, 2011

Year ended
December 31, 2010

Six months ended
June 30, 2011

Year ended
December 31, 2010

Class A

 

 

 

 

Shares sold

4,417,244

15,644,323

$ 58,818,088

$ 208,168,500

Reinvestment of distributions

487,345

841,869

6,495,608

11,180,339

Shares redeemed

(5,102,873)

(6,273,296)

(67,749,970)

(82,997,450)

Net increase (decrease)

(198,284)

10,212,896

$ (2,436,274)

$ 136,351,389

Class T

 

 

 

 

Shares sold

578,935

3,068,075

$ 7,664,108

$ 40,708,889

Reinvestment of distributions

177,497

416,301

2,356,138

5,498,083

Shares redeemed

(1,558,212)

(3,210,330)

(20,649,868)

(42,651,952)

Net increase (decrease)

(801,780)

274,046

$ (10,629,622)

$ 3,555,020

Class B

 

 

 

 

Shares sold

55,091

701,294

$ 739,521

$ 9,385,461

Reinvestment of distributions

25,235

59,456

339,517

795,918

Shares redeemed

(292,829)

(566,246)

(3,927,769)

(7,562,381)

Net increase (decrease)

(212,503)

194,504

$ (2,848,731)

$ 2,618,998

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

10. Share Transactions - continued

 

Shares

Dollars

Six months ended
June 30, 2011

Year ended
December 31, 2010

Six months ended
June 30, 2011

Year ended
December 31, 2010

Class C

 

 

 

 

Shares sold

1,337,959

6,058,011

$ 17,944,144

$ 81,407,797

Reinvestment of distributions

155,276

267,388

2,080,948

3,576,622

Shares redeemed

(2,060,714)

(1,968,577)

(27,524,399)

(26,199,626)

Net increase (decrease)

(567,479)

4,356,822

$ (7,499,307)

$ 58,784,793

Institutional Class

 

 

 

 

Shares sold

10,557,536

27,986,820

$ 138,356,959

$ 367,469,375

Reinvestment of distributions

527,008

827,765

6,914,153

10,850,982

Shares redeemed

(7,517,186)

(7,749,845)

(98,407,600)

(101,344,271)

Net increase (decrease)

3,567,358

21,064,740

$ 46,863,512

$ 276,976,086

11. Other.

The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.

12. Credit Risk.

The Fund's relatively large investments in countries with limited or developing capital markets may involve greater risks than investments in more developed markets and the prices of such investments may be volatile. The yields of emerging market debt obligations reflect, among other things, perceived credit risk. The consequences of political, social or economic changes in these markets may have disruptive effects on the market prices of the Fund's investments and income they generate, as well as the Fund's ability to repatriate such amounts.

Semiannual Report

Investment Adviser

Fidelity Management & Research Company

Boston, MA

Investment Sub-Advisers

FMR Co., Inc.

Fidelity Management &
Research (U.K.) Inc.

FIL Investments (Japan) Limited

FIL Investment Advisors

FIL Investment Advisors (U.K.) Limited

Fidelity Management & Research
(Hong Kong) Limited

Fidelity Management & Research
(Japan) Inc.

General Distributor

Fidelity Distributors Corporation

Boston, MA

Transfer and Service Agents

Fidelity Investments Institutional Operations Company, Inc.

Boston, MA

Fidelity Service Company, Inc.

Boston, MA

Custodian

JPMorgan Chase Bank

New York, NY

EMI-USAN-0811
1.787773.108

fid336

(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®
Emerging Markets Income
Fund - Institutional Class

Semiannual Report

June 30, 2011

(2_fidelity_logos) (Registered_Trademark)

Contents

Chairman's Message

<Click Here>

The Chairman's message to shareholders.

Shareholder Expense Example

<Click Here>

An example of shareholder expenses.

Investment Changes

<Click Here>

A summary of major shifts in the fund's investments over the past six months.

Investments

<Click Here>

A complete list of the fund's investments with their market values.

Financial Statements

<Click Here>

Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights.

Notes

<Click Here>

Notes to the financial statements.

To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.

Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.

Other third party marks appearing herein are the property of their respective owners.

All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.

This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.

A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.

NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE

Neither the fund nor Fidelity Distributors Corporation is a bank.

Semiannual Report

Chairman's Message

(photo_of_James_C_Curvey)

Dear Shareholder:

Despite bouts of short-term volatility, U.S. equities gained ground in the first half of 2011, buoyed by solid corporate earnings and modest improvement in employment. A strong start had the market up more than 100% off its March 2009 low, but investors were unnerved by this past March's natural disaster in Japan, while weaker economic data and new concern about Greek debt hurt performance during May and June. The longer-term outlook remains clouded by the impact of inflationary pressure and persistently high unemployment. Financial markets are always unpredictable, of course, but there are several time-tested investment principles that can help put the odds in your favor.

One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.

You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).

A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.

We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.

Sincerely,


(The acting chairman's signature appears here.)

James C. Curvey
Acting Chairman

Semiannual Report

Shareholder Expense Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, redemption fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (January 1, 2011 to June 30, 2011).

Actual Expenses

The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.

Hypothetical Example for Comparison Purposes

The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Semiannual Report

Shareholder Expense Example - continued

 

Annualized
Expense
Ratio

Beginning
Account Value
January 1, 2011

Ending
Account Value
June 30, 2011

Expenses Paid
During Period*
January 1, 2011
to June 30, 2011

Class A

1.19%

 

 

 

Actual

 

$ 1,000.00

$ 1,043.90

$ 6.03

HypotheticalA

 

$ 1,000.00

$ 1,018.89

$ 5.96

Class T

1.20%

 

 

 

Actual

 

$ 1,000.00

$ 1,043.30

$ 6.08

HypotheticalA

 

$ 1,000.00

$ 1,018.84

$ 6.01

Class B

1.88%

 

 

 

Actual

 

$ 1,000.00

$ 1,039.90

$ 9.51

HypotheticalA

 

$ 1,000.00

$ 1,015.47

$ 9.39

Class C

1.93%

 

 

 

Actual

 

$ 1,000.00

$ 1,039.80

$ 9.76

HypotheticalA

 

$ 1,000.00

$ 1,015.22

$ 9.64

Institutional Class

.90%

 

 

 

Actual

 

$ 1,000.00

$ 1,044.60

$ 4.56

HypotheticalA

 

$ 1,000.00

$ 1,020.33

$ 4.51

A 5% return per year before expenses

* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

Semiannual Report

Investment Changes (Unaudited)

Top Five Countries as of June 30, 2011

(excluding cash equivalents)

% of fund's
net assets

% of fund's net assets
6 months ago

Venezuela

11.4

9.0

Turkey

9.0

7.0

Russia

6.8

7.8

Mexico

5.6

4.0

Philippines

5.6

4.6

Percentages are adjusted for the effect of open futures contracts, if applicable.

Top Five Holdings as of June 30, 2011

(by issuer, excluding cash equivalents)

% of fund's
net assets

% of fund's net assets
6 months ago

Turkish Republic

8.0

6.8

Russian Federation

6.4

7.6

Venezuelan Republic

6.1

6.2

United Mexican States

4.7

3.2

Brazilian Federative Republic

4.4

3.4

 

29.6

Asset Allocation (% of fund's net assets)

As of June 30, 2011

As of December 31, 2010

fid322

Corporate Bonds 35.0%

 

fid322

Corporate Bonds 28.1%

 

fid325

Government
Obligations 60.3%

 

fid325

Government
Obligations 59.4%

 

fid328

Supranational Obligations 0.5%

 

fid328

Supranational Obligations 0.4%

 

fid331

Short-Term
Investments and
Net Other Assets 4.2%

 

fid331

Short-Term
Investments and
Net Other Assets 12.1%

 

fid352

Semiannual Report

Investments June 30, 2011 (Unaudited)

Showing Percentage of Net Assets

Nonconvertible Bonds - 35.0%

 

Principal Amount (c)

Value

Argentina - 0.4%

City of Buenos Aires 12.5% 4/6/15 (e)

$ 970,000

$ 1,097,555

Empresa Distribuidora y Comercializadora Norte SA 9.75% 10/25/22 (e)

1,170,000

1,181,700

Pan American Energy LLC 7.875% 5/7/21 (e)

950,000

1,014,125

Transportadora de Gas del Sur SA 7.875% 5/14/17 (e)

1,065,000

1,033,050

TOTAL ARGENTINA

4,326,430

Bermuda - 0.6%

Noble Group Ltd. 6.75% 1/29/20 (e)

930,000

973,013

Qtel International Finance Ltd.:

3.375% 10/14/16 (e)

2,045,000

2,038,701

5% 10/19/25 (e)

3,780,000

3,493,930

TOTAL BERMUDA

6,505,644

Brazil - 1.2%

Banco Nacional de Desenvolvimento Economico e Social 5.5% 7/12/20 (e)

2,560,000

2,713,600

Braskem Finance Ltd. 7% 5/7/20 (e)

1,830,000

1,992,413

Centrais Eletricas Brasileiras SA (Electrobras) 6.875% 7/30/19 (e)

2,325,000

2,633,063

Globo Comunicacoes e Participacoes SA 6.25% (d)(e)(f)

2,675,000

2,822,125

Net Servicos de Comunicacao SA 7.5% 1/27/20

920,000

1,051,100

Rearden G Holdings Eins GmbH 7.875% 3/30/20 (e)

1,980,000

2,148,300

TOTAL BRAZIL

13,360,601

British Virgin Islands - 0.8%

Gerdau Trade, Inc. 5.75% 1/30/21 (e)

1,585,000

1,610,756

Gold Fields Orogen Holding BVI Ltd. 4.875% 10/7/20 (e)

2,190,000

2,048,263

Sinochem Overseas Capital Co. Ltd. 4.5% 11/12/20 (e)

5,775,000

5,561,903

TOTAL BRITISH VIRGIN ISLANDS

9,220,922

Cayman Islands - 3.4%

CSN Islands XI Corp. 6.875% 9/21/19 (e)

1,910,000

2,081,900

Hutchison Whampoa International 09 Ltd. 7.625% 4/9/19 (Reg. S)

1,035,000

1,226,998

Hutchison Whampoa International 10 Ltd. 6% (e)(f)(g)

9,360,000

9,594,000

Odebrecht Finance Ltd.:

6% 4/5/23 (e)

1,615,000

1,606,925

7% 4/21/20 (e)

1,480,000

1,626,150

7.5% (e)(f)

3,325,000

3,358,250

Nonconvertible Bonds - continued

 

Principal Amount (c)

Value

Cayman Islands - continued

Petrobras International Finance Co. Ltd.:

5.375% 1/27/21

$ 8,705,000

$ 8,966,585

5.75% 1/20/20

1,795,000

1,914,825

6.875% 1/20/40

4,735,000

5,113,800

8.375% 12/10/18

1,990,000

2,452,679

TOTAL CAYMAN ISLANDS

37,942,112

Colombia - 1.8%

BanColombia SA:

4.25% 1/12/16 (e)

4,955,000

4,979,775

5.95% 6/3/21 (e)

5,385,000

5,446,928

6.125% 7/26/20

3,260,000

3,292,600

Ecopetrol SA 7.625% 7/23/19

4,140,000

4,957,650

Empresas Publicas de Medellin 7.625% 7/29/19 (e)

1,390,000

1,615,875

TOTAL COLOMBIA

20,292,828

Egypt - 0.2%

African Export-Import Bank 8.75% 11/13/14

1,740,000

1,961,850

Georgia - 0.1%

Georgian Railway Ltd. 9.875% 7/22/15

1,255,000

1,394,619

Indonesia - 1.3%

PT Adaro Indonesia 7.625% 10/22/19 (e)

2,210,000

2,453,100

PT Pertamina Persero 5.25% 5/23/21 (e)

12,130,000

12,251,300

TOTAL INDONESIA

14,704,400

Ireland - 2.0%

Novatek Finance Ltd. 6.604% 2/3/21 (e)

2,535,000

2,639,696

SCF Capital Ltd. 5.375% 10/27/17 (e)

5,170,000

5,170,000

Vimpel Communications 8.375% 4/30/13 (Issued by VIP Finance Ireland Ltd. for Vimpel Communications) (e)

1,955,000

2,106,513

VIP Finance Ireland Ltd.:

6.493% 2/2/16 (e)

1,095,000

1,123,799

7.748% 2/2/21 (e)

1,210,000

1,243,275

Vnesheconombank Via VEB Finance Ltd.:

5.45% 11/22/17 (e)

4,110,000

4,192,200

6.8% 11/22/25 (e)

4,980,000

5,048,475

TOTAL IRELAND

21,523,958

Isle of Man - 0.2%

AngloGold Ashanti Holdings PLC 5.375% 4/15/20

2,385,000

2,353,971

Nonconvertible Bonds - continued

 

Principal Amount (c)

Value

Kazakhstan - 0.1%

Development Bank of Kazakhstan JSC 5.5% 12/20/15 (e)

$ 1,510,000

$ 1,562,850

Korea (South) - 1.7%

Export-Import Bank of Korea:

3.75% 10/20/16

2,145,000

2,159,157

5.125% 6/29/20

2,160,000

2,203,200

Hyundai Capital Services, Inc. 6% 5/5/15 (e)

2,460,000

2,702,925

Industrial Bank of Korea 7.125% 4/23/14 (e)

2,120,000

2,387,968

Korea Development Bank 4.375% 8/10/15

1,930,000

2,020,131

Korea Expressway Corp. 4.5% 3/23/15 (e)

1,940,000

2,030,986

POSCO 8.75% 3/26/14 (e)

1,590,000

1,862,526

Woori Bank 5.875% 4/13/21 (e)

3,215,000

3,223,038

TOTAL KOREA (SOUTH)

18,589,931

Luxembourg - 2.7%

ArcelorMittal SA 7% 10/15/39

2,160,000

2,183,963

Gaz Capital SA (Luxembourg):

6.51% 3/7/22 (e)

1,845,000

1,946,475

9.25% 4/23/19 (e)

4,610,000

5,733,918

Gazprom International SA 7.201% 2/1/20

1,909,636

2,091,051

OJSC Russian Agricultural Bank:

6.299% 5/15/17 (Issued by RSHB Capital SA for OJSC Russian Agricultural Bank) (e)

1,665,000

1,769,063

6.97% 9/21/16 (Issued by RSHB Capital SA for OJSC Russian Agricultural Bank) (g)

1,765,000

1,767,206

7.125% 1/14/14 (Issued by RSHB Capital SA for OJSC Russian Agricultural Bank) (e)

1,355,000

1,465,094

7.175% 5/16/13 (Issued by RSHB Capital SA for OJSC Russian Agricultural Bank) (e)

1,040,000

1,118,000

7.75% 5/29/18 (Issued by RSHB Capital SA for OJSC Russian Agricultural Bank) (e)

2,265,000

2,593,425

RSHB Capital SA 9% 6/11/14 (e)

1,215,000

1,386,801

Steel Capital SA 6.7% 10/25/17 (e)

2,575,000

2,636,285

TNK-BP Finance SA:

7.5% 3/13/13 (e)

1,070,000

1,158,275

7.875% 3/13/18 (Reg. S)

1,450,000

1,662,063

VTB Capital SA 6.465% 3/4/15 (e)

1,860,000

1,971,600

TOTAL LUXEMBOURG

29,483,219

Mexico - 0.9%

Alestra SA de RL de CV 11.75% 8/11/14

1,320,000

1,511,400

Bbva Bancomer SA 4.5% 3/10/16 (e)

1,630,000

1,654,450

Nonconvertible Bonds - continued

 

Principal Amount (c)

Value

Mexico - continued

Petroleos Mexicanos:

6% 3/5/20

$ 2,105,000

$ 2,304,975

6.625% (e)(f)

4,855,000

4,891,413

TOTAL MEXICO

10,362,238

Mongolia - 0.2%

Trade & Development Bank of Mongolia LLC 8.5% 10/25/13 (Reg. S)

1,950,000

2,003,625

Netherlands - 4.3%

Bulgaria Steel Finance BV 12% 5/4/13 unit (b)

EUR

600,000

87,018

Indosat Palapa Co. BV 7.375% 7/29/20 (e)

2,390,000

2,646,925

Intergas Finance BV 6.375% 5/14/17 (Reg. S)

5,489,000

5,900,675

Kazakhstan Temir Zholy Finance BV 6.375% 10/6/20 (e)

2,445,000

2,610,038

KazMunaiGaz Finance Sub BV:

6.375% 4/9/21 (e)

1,840,000

1,941,200

7% 5/5/20 (e)

1,720,000

1,892,000

8.375% 7/2/13 (e)

1,480,000

1,616,900

9.125% 7/2/18 (e)

5,865,000

7,213,950

11.75% 1/23/15 (e)

1,930,000

2,395,709

Lukoil International Finance BV 6.125% 11/9/20 (e)

2,385,000

2,452,472

Majapahit Holding BV:

7.25% 6/28/17 (Reg. S)

1,105,000

1,256,938

7.75% 10/17/16 (Reg. S)

1,720,000

1,999,500

7.75% 1/20/20 (e)

2,900,000

3,393,000

7.875% 6/29/37 (Reg. S)

4,065,000

4,664,588

8% 8/7/19 (e)

1,700,000

2,010,250

Myriad International Holding BV 6.375% 7/28/17 (e)

2,455,000

2,648,331

VimpelCom Holdings BV 7.5043% 3/1/22 (e)

2,150,000

2,150,000

TOTAL NETHERLANDS

46,879,494

Peru - 0.2%

Banco de Credito del Peru 4.75% 3/16/16 (e)

1,845,000

1,821,938

Philippines - 1.4%

National Power Corp. 6.875% 11/2/16 (e)

3,335,000

3,818,575

Power Sector Assets and Liabilities Management Corp.:

7.25% 5/27/19 (e)

4,250,000

5,036,250

7.39% 12/2/24 (e)

5,760,000

6,825,600

TOTAL PHILIPPINES

15,680,425

Qatar - 0.2%

Qtel International Finance Ltd. 6.5% 6/10/14 (e)

2,310,000

2,564,100

Nonconvertible Bonds - continued

 

Principal Amount (c)

Value

Russia - 0.4%

MTS International Funding Ltd. 8.625% 6/22/20 (e)

$ 3,655,000

$ 4,162,314

South Africa - 0.4%

Eskom Holdings Ltd. 5.75% 1/26/21 (Reg. S)

4,430,000

4,585,050

Trinidad & Tobago - 0.3%

Petroleum Co. of Trinidad & Tobago Ltd. 9.75% 8/14/19 (e)

2,745,000

3,294,000

Turkey - 1.0%

Turkiye Garanti Bankasi AS:

2.774% 4/20/16 (e)(g)

5,365,000

5,324,763

6.25% 4/20/21 (e)

5,365,000

5,210,756

TOTAL TURKEY

10,535,519

Ukraine - 0.4%

Naftogaz of Ukraine NJSC 9.5% 9/30/14

3,645,000

3,982,163

United Kingdom - 0.3%

Afren PLC 11.5% 2/1/16 (e)

1,405,000

1,534,963

Biz Finance PLC 8.375% 4/27/15 (Reg. S)

1,865,000

1,948,925

TOTAL UNITED KINGDOM

3,483,888

United States of America - 3.2%

Drummond Co., Inc.:

7.375% 2/15/16

1,555,000

1,570,550

9% 10/15/14 (e)

3,062,000

3,222,755

Gerdau Holdings, Inc. 7% 1/20/20 (e)

1,365,000

1,515,150

Korea Development Bank 4% 9/9/16

2,580,000

2,640,372

NII Capital Corp.:

8.875% 12/15/19

1,875,000

2,062,500

10% 8/15/16

2,955,000

3,427,800

Pemex Project Funding Master Trust:

6.625% 6/15/35

9,415,000

9,826,906

8.625% 2/1/22

8,545,000

10,681,250

TOTAL UNITED STATES OF AMERICA

34,947,283

Venezuela - 5.3%

Petroleos de Venezuela SA:

4.9% 10/28/14

3,815,000

2,928,013

5.25% 4/12/17

12,015,000

7,539,413

5.375% 4/12/27

20,680,000

10,340,000

5.5% 4/12/37

23,250,000

11,392,500

Nonconvertible Bonds - continued

 

Principal Amount (c)

Value

Venezuela - continued

Petroleos de Venezuela SA 144A:

8.5% 11/2/17 (e)

$ 23,100,000

$ 17,036,250

12.75% 2/17/22 (e)

11,730,000

9,589,275

TOTAL VENEZUELA

58,825,451

TOTAL NONCONVERTIBLE BONDS

(Cost $371,685,360)

386,350,823

Government Obligations - 60.3%

 

Argentina - 2.2%

Argentine Republic:

discount:

(with partial capitalization through 12/31/13) 8.28% 12/31/33

11,133,093

9,824,955

(with partial capitalization through 12/31/13) 8.28% 12/31/33

2,325,574

1,988,366

2.5% 12/31/38 (d)

12,110,000

5,267,850

7% 9/12/13

5,705,000

5,792,952

8.75% 6/2/17

1,283,801

1,335,153

TOTAL ARGENTINA

24,209,276

Bahamas (Nassau) - 0.4%

Bahamian Republic 6.95% 11/20/29 (e)

3,740,000

4,039,200

Barbados - 0.8%

Barbados Government:

7% 8/4/22 (e)

4,557,000

4,693,710

7.25% 12/15/21 (e)

3,635,000

3,816,750

TOTAL BARBADOS

8,510,460

Belarus - 0.6%

Belarus Republic:

8.75% 8/3/15 (Reg. S)

6,380,000

5,742,000

8.95% 1/26/18

925,000

814,000

TOTAL BELARUS

6,556,000

Belize - 0.1%

Belize Government 6% 2/20/29 (d)(e)

2,114,700

1,395,702

Government Obligations - continued

 

Principal Amount (c)

Value

Bermuda - 0.6%

Bermuda Government 5.603% 7/20/20 (e)

$ 4,078,000

$ 4,516,385

Noble Group Ltd. 6.625% 8/5/20 (e)

1,660,000

1,703,575

TOTAL BERMUDA

6,219,960

Brazil - 4.4%

Brazilian Federative Republic:

5.625% 1/7/41

3,595,000

3,688,470

5.875% 1/15/19

4,815,000

5,568,548

7.125% 1/20/37

3,070,000

3,783,775

8% 1/15/18

1,481,667

1,781,704

8.25% 1/20/34

2,040,000

2,799,900

8.875% 4/15/24

2,290,000

3,274,700

10.125% 5/15/27

3,920,000

6,134,800

11% 8/17/40

5,450,000

7,425,625

12.25% 3/6/30

6,315,000

11,556,450

12.75% 1/15/20

1,225,000

2,021,250

TOTAL BRAZIL

48,035,222

Cayman Islands - 0.4%

Cayman Island Government 5.95% 11/24/19 (e)

3,880,000

4,141,900

Colombia - 2.0%

Colombian Republic:

6.125% 1/18/41

2,580,000

2,805,750

7.375% 3/18/19

2,605,000

3,243,225

7.375% 9/18/37

2,040,000

2,570,400

10.375% 1/28/33

4,490,000

7,094,200

11.75% 2/25/20

4,093,000

6,323,685

TOTAL COLOMBIA

22,037,260

Congo - 0.5%

Congo Republic 3% 6/30/29 (d)

9,267,250

6,023,713

Croatia - 1.3%

Croatia Republic:

6.375% 3/24/21 (e)

3,665,000

3,797,856

6.625% 7/14/20 (e)

4,980,000

5,272,575

6.75% 11/5/19 (e)

4,890,000

5,270,002

TOTAL CROATIA

14,340,433

Government Obligations - continued

 

Principal Amount (c)

Value

Dominican Republic - 0.3%

Dominican Republic:

7.5% 5/6/21 (e)

$ 1,450,000

$ 1,508,000

9.04% 1/23/18 (e)

1,420,870

1,594,926

TOTAL DOMINICAN REPUBLIC

3,102,926

Ecuador - 0.1%

Ecuador Republic 9.375% 12/15/15 (e)

1,695,000

1,686,525

El Salvador - 0.3%

El Salvador Republic:

7.375% 12/1/19 (e)

1,315,000

1,446,500

7.65% 6/15/35 (Reg. S)

1,725,000

1,785,375

TOTAL EL SALVADOR

3,231,875

Gabon - 0.2%

Gabonese Republic 8.2% 12/12/17 (e)

1,665,000

1,952,213

Georgia - 0.4%

Georgia Republic 6.875% 4/12/21 (e)

4,285,000

4,392,125

Ghana - 0.4%

Ghana Republic:

8.5% 10/4/17 (e)

1,375,000

1,550,313

14.25% 7/29/13

GHS

1,330,000

896,600

14.99% 3/11/13

GHS

2,380,000

1,621,313

TOTAL GHANA

4,068,226

Iceland - 0.2%

Republic of Iceland 4.875% 6/16/16 (e)

2,150,000

2,158,063

Indonesia - 4.1%

Indonesian Republic:

5.875% 3/13/20 (e)

3,185,000

3,543,313

6.625% 2/17/37 (e)

3,765,000

4,188,563

6.75% 3/10/14 (Reg. S)

2,515,000

2,801,207

6.875% 3/9/17 (e)

2,990,000

3,502,187

6.875% 1/17/18 (e)

3,825,000

4,480,223

7.25% 4/20/15 (e)

1,615,000

1,879,537

7.5% 1/15/16 (e)

2,310,000

2,740,353

7.75% 1/17/38 (e)

5,465,000

6,844,913

8.5% 10/12/35 (e)

4,815,000

6,500,250

10.375% 5/4/14 (e)

1,715,000

2,098,817

11.625% 3/4/19 (e)

4,665,000

6,892,538

TOTAL INDONESIA

45,471,901

Government Obligations - continued

 

Principal
Amount (c)

Value

Iraq - 1.0%

Republic of Iraq 5.8% 1/15/28 (Reg. S)

$ 11,790,000

$ 10,611,000

Korea (South) - 0.5%

Korean Republic 4% 6/10/12

KRW

5,890,000,000

5,539,188

Lebanon - 1.1%

Lebanese Republic:

4% 12/31/17

4,982,250

4,801,893

9% 3/20/17

2,365,000

2,778,875

11.625% 5/11/16 (Reg. S)

3,290,000

4,170,075

TOTAL LEBANON

11,750,843

Lithuania - 1.4%

Lithuanian Republic:

5.125% 9/14/17 (e)

5,560,000

5,712,900

6.125% 3/9/21 (e)

1,870,000

1,984,538

6.75% 1/15/15 (e)

3,515,000

3,870,894

7.375% 2/11/20 (e)

3,545,000

4,085,613

TOTAL LITHUANIA

15,653,945

Mexico - 4.7%

United Mexican States:

5.125% 1/15/20

6,622,000

7,151,760

5.625% 1/15/17

6,607,000

7,515,463

5.75% 10/12/2110

3,202,000

2,984,264

6.05% 1/11/40

19,442,000

20,686,288

6.75% 9/27/34

3,410,000

3,964,125

11.375% 9/15/16

2,439,000

3,463,380

11.5% 5/15/26

3,595,000

6,650,750

TOTAL MEXICO

52,416,030

Nigeria - 0.2%

Republic of Nigeria 6.75% 1/28/21 (e)

2,620,000

2,751,000

Peru - 0.8%

Peruvian Republic:

7.35% 7/21/25

3,725,000

4,535,188

8.75% 11/21/33

2,940,000

4,005,750

TOTAL PERU

8,540,938

Philippines - 4.2%

Philippine Republic:

4% 1/15/21

2,380,000

2,341,444

Government Obligations - continued

 

Principal Amount (c)

Value

Philippines - continued

Philippine Republic: - continued

6.375% 10/23/34

$ 7,350,000

$ 8,057,805

6.5% 1/20/20

6,615,000

7,706,475

7.75% 1/14/31

8,955,000

11,283,300

9.5% 2/2/30

3,300,000

4,793,250

10.625% 3/16/25

8,265,000

12,604,125

TOTAL PHILIPPINES

46,786,399

Poland - 0.5%

Polish Government 6.375% 7/15/19

5,350,000

6,099,000

Qatar - 0.5%

State of Qatar:

4% 1/20/15 (e)

3,555,000

3,723,258

6.4% 1/20/40 (e)

2,095,000

2,315,729

TOTAL QATAR

6,038,987

Russia - 6.4%

Russian Federation:

3.625% 4/29/15 (e)

5,100,000

5,227,500

5% 4/29/20 (e)

5,100,000

5,259,630

7.5% 3/31/30 (Reg. S)

41,494,050

48,900,718

12.75% 6/24/28 (Reg. S)

6,364,000

11,264,280

TOTAL RUSSIA

70,652,128

Senegal - 0.1%

Republic of Senegal 8.75% 5/13/21 (e)

1,310,000

1,347,663

Serbia - 0.2%

Republic of Serbia 6.75% 11/1/24 (e)

2,542,500

2,542,500

Sri Lanka - 0.5%

Democratic Socialist Republic of Sri Lanka:

6.25% 10/4/20 (e)

3,680,000

3,707,600

8.25% 10/24/12 (e)

1,460,000

1,556,725

TOTAL SRI LANKA

5,264,325

Turkey - 8.0%

Turkish Republic:

0% 2/20/13

TRY

10,095,000

5,381,802

5.625% 3/30/21

11,425,000

11,956,263

6% 1/14/41

2,700,000

2,629,800

6.75% 4/3/18

1,615,000

1,836,255

6.75% 5/30/40

5,200,000

5,616,000

Government Obligations - continued

 

Principal Amount (c)

Value

Turkey - continued

Turkish Republic: - continued

6.875% 3/17/36

$ 7,600,000

$ 8,360,000

7% 9/26/16

1,225,000

1,403,238

7% 3/11/19

5,940,000

6,845,850

7% 6/5/20

4,955,000

5,710,638

7.25% 3/15/15

2,095,000

2,389,348

7.25% 3/5/38

2,445,000

2,810,528

7.375% 2/5/25

7,920,000

9,381,240

7.5% 7/14/17

1,735,000

2,039,493

7.5% 11/7/19

2,255,000

2,676,685

8% 2/14/34

8,380,000

10,403,770

11.875% 1/15/30

5,055,000

8,593,500

TOTAL TURKEY

88,034,410

Ukraine - 2.1%

Ukraine Financing of Infrastructure Projects State Enterprise 8.375% 11/3/17 (e)

3,145,000

3,278,663

Ukraine Government:

6.25% 6/17/16 (e)

5,605,000

5,599,395

6.385% 6/26/12 (e)

1,260,000

1,291,500

6.58% 11/21/16 (e)

2,095,000

2,111,760

6.75% 11/14/17 (e)

2,690,000

2,703,450

7.65% 6/11/13 (Reg. S)

2,980,000

3,130,490

7.75% 9/23/20 (e)

3,665,000

3,798,773

7.95% 2/23/21 (e)

1,505,000

1,567,458

TOTAL UKRAINE

23,481,489

United States of America - 2.2%

U.S. Treasury Bonds 4.375% 5/15/41

23,782,000

23,748,467

Uruguay - 0.4%

Uruguay Republic 7.625% 3/21/36

3,300,000

4,149,750

Venezuela - 6.1%

Venezuelan Republic:

oil recovery rights 4/15/20 (h)

10,490

285,853

5.75% 2/26/16 (Reg S.)

3,635,000

2,798,950

6% 12/9/20

4,160,000

2,575,040

7.75% 10/13/19 (Reg. S)

12,750,000

9,148,125

8.25% 10/13/24

6,450,000

4,369,875

8.5% 10/8/14

3,490,000

3,158,450

9% 5/7/23 (Reg. S)

9,045,000

6,503,355

9.25% 9/15/27

8,805,000

6,603,750

Government Obligations - continued

 

Principal Amount (c)

Value

Venezuela - continued

Venezuelan Republic: - continued

9.25% 5/7/28 (Reg. S)

$ 10,105,000

$ 7,053,290

9.375% 1/13/34

3,460,000

2,435,840

10.75% 9/19/13

7,670,000

7,574,125

12.75% 8/23/22

15,995,000

14,315,525

TOTAL VENEZUELA

66,822,178

Vietnam - 0.1%

Vietnamese Socialist Republic 6.875% 1/15/16 (e)

1,445,000

1,538,925

TOTAL GOVERNMENT OBLIGATIONS

(Cost $623,344,593)

665,342,145

Supranational Obligations - 0.5%

 

Central American Bank 5.375% 9/24/14 (e)

1,770,000

1,924,875

Corporacion Andina de Fomento 8.125% 6/4/19

1,610,000

1,951,803

Eurasian Development Bank 7.375% 9/29/14 (e)

980,000

1,078,000

TOTAL SUPRANATIONAL OBLIGATIONS

(Cost $4,451,285)

4,954,678

Money Market Funds - 4.0%

Shares

 

Fidelity Cash Central Fund, 0.11% (a)
(Cost $44,492,836)

44,492,836

44,492,836

TOTAL INVESTMENT PORTFOLIO - 99.8%

(Cost $1,043,974,074)

1,101,140,482

NET OTHER ASSETS (LIABILITIES) - 0.2%

1,878,728

NET ASSETS - 100%

$ 1,103,019,210

Currency Abbreviations

EUR

-

European Monetary Unit

GHS

-

Ghana Cedi

KRW

-

Korean won

TRY

-

New Turkish Lira

Legend

(a) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.

(b) Non-income producing - Security is in default.

(c) Principal amount is stated in United States dollars unless otherwise noted.

(d) Security initially issued at one coupon which converts to a higher coupon at a specified 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 end of the period, the value of these securities amounted to $411,508,577 or 37.3% of net assets.

(f) Security is perpetual in nature with no stated maturity date.

(g) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end.

(h) Quantity represents share amount.

Affiliated Central Funds

Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:

Fund

Income earned

Fidelity Cash Central Fund

$ 31,755

Other Information

The following is a summary of the inputs used, as of June 30, 2011, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.

Valuation Inputs at Reporting Date:

Description

Total

Level 1

Level 2

Level 3

Investments in Securities:

Corporate Bonds

$ 386,350,823

$ -

$ 386,263,805

$ 87,018

Government Obligations

665,342,145

-

665,342,145

-

Supranational Obligations

4,954,678

-

4,954,678

-

Money Market Funds

44,492,836

44,492,836

-

-

Total Investments in Securities:

$ 1,101,140,482

$ 44,492,836

$ 1,056,560,628

$ 87,018

The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value:

Investments in Securities:

Beginning Balance

$ -

Total Realized Gain (Loss)

(1,382,023)

Total Unrealized Gain (Loss)

1,388,821

Cost of Purchases

-

Proceeds of Sales

-

Amortization/Accretion

-

Transfers in to Level 3

80,220

Transfers out of Level 3

-

Ending Balance

$ 87,018

The change in unrealized gain (loss) for the period attributable to Level 3 securities held at June 30, 2011

$ 6,798

The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations.

Other Information

The composition of credit quality ratings as a percentage of net assets is as follows (Unaudited):

U.S. Government and U.S. Government Agency Obligations

2.2%

AAA,AA,A

7.6%

BBB

37.8%

BB

24.0%

B

19.0%

CCC,CC,C

0.1%

Not Rated

5.1%

Equities

0.0%

Short-Term Investments and Net Other Assets

4.2%

 

100.0%

We have used ratings from Moody's® Investors Service, Inc. Where Moody's ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes. Percentages are adjusted for the effect of futures contracts, if applicable.

Income Tax Information

At December 31, 2010, the Fund had a capital loss carryforward of approximately $6,239,615 of which $3,380,295 and $2,859,320 will expire in fiscal 2016 and 2018, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited.

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Financial Statements

Statement of Assets and Liabilities

 

June 30, 2011 (Unaudited)

 

 

 

Assets

Investment in securities, at value - See accompanying schedule:

Unaffiliated issuers (cost $999,481,238)

$ 1,056,647,646

 

Fidelity Central Funds (cost $44,492,836)

44,492,836

 

Total Investments (cost $1,043,974,074)

 

$ 1,101,140,482

Cash

1,629,868

Receivable for investments sold

383,249

Receivable for fund shares sold

2,183,377

Interest receivable

19,631,662

Distributions receivable from Fidelity Central Funds

4,688

Other receivables

1,591

Total assets

1,124,974,917

 

 

 

Liabilities

Payable for investments purchased

$ 16,329,272

Payable for fund shares redeemed

2,994,648

Distributions payable

1,565,459

Accrued management fee

605,996

Distribution and service plan fees payable

199,862

Other affiliated payables

201,107

Other payables and accrued expenses

59,363

Total liabilities

21,955,707

 

 

 

Net Assets

$ 1,103,019,210

Net Assets consist of:

 

Paid in capital

$ 1,044,457,053

Undistributed net investment income

6,750,185

Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions

(5,279,449)

Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies

57,091,421

Net Assets

$ 1,103,019,210

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Statement of Assets and Liabilities - continued

June 30, 2011 (Unaudited)

 

 

Calculation of Maximum Offering Price

 

 Class A:
Net Asset Value and redemption price per share ($313,188,182 ÷ 23,121,128 shares)

$ 13.55

 

 

Maximum offering price per share (100/96.00 of $13.55)

$ 14.11

Class T:
Net Asset Value and redemption price per share ($105,874,963 ÷ 7,844,581 shares)

$ 13.50

 

 

Maximum offering price per share (100/96.00 of $13.50)

$ 14.06

Class B:
Net Asset Value and offering price per share ($19,306,649 ÷ 1,410,746 shares)A

$ 13.69

 

 

Class C:
Net Asset Value and offering price per share ($119,286,113 ÷ 8,752,590 shares)A

$ 13.63

 

 

Institutional Class:
Net Asset Value, offering price and redemption price per share ($545,363,303 ÷ 40,914,114 shares)

$ 13.33

A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Financial Statements - continued

Statement of Operations

Six months ended June 30, 2011 (Unaudited)

 

 

 

Investment Income

 

 

Interest

 

$ 34,824,767

Income from Fidelity Central Funds

 

31,755

Total income

 

34,856,522

 

 

 

Expenses

Management fee

$ 3,546,609

Transfer agent fees

957,633

Distribution and service plan fees

1,204,302

Accounting fees and expenses

247,192

Custodian fees and expenses

31,934

Independent trustees' compensation

2,701

Registration fees

120,463

Audit

39,323

Legal

912

Miscellaneous

1,710

Total expenses before reductions

6,152,779

Expense reductions

(64,272)

6,088,507

Net investment income (loss)

28,768,015

Realized and Unrealized Gain (Loss)

Net realized gain (loss) on:

Investment securities:

 

 

Unaffiliated issuers

6,915,142

Foreign currency transactions

(83,028)

Total net realized gain (loss)

 

6,832,114

Change in net unrealized appreciation (depreciation) on:

Investment securities

9,879,752

Assets and liabilities in foreign currencies

(4,837)

Total change in net unrealized appreciation (depreciation)

 

9,874,915

Net gain (loss)

16,707,029

Net increase (decrease) in net assets resulting from operations

$ 45,475,044

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Statement of Changes in Net Assets

 

Six months ended
June 30, 2011
(Unaudited)

Year ended
December 31,
2010

Increase (Decrease) in Net Assets

 

 

Operations

 

 

Net investment income (loss)

$ 28,768,015

$ 44,504,861

Net realized gain (loss)

6,832,114

1,509,426

Change in net unrealized appreciation (depreciation)

9,874,915

23,657,764

Net increase (decrease) in net assets resulting
from operations

45,475,044

69,672,051

Distributions to shareholders from net investment income

(26,864,957)

(41,828,114)

Distributions to shareholders from net realized gain

(1,205,889)

(4,787,777)

Total distributions

(28,070,846)

(46,615,891)

Share transactions - net increase (decrease)

23,449,578

478,286,286

Redemption fees

118,428

333,024

Total increase (decrease) in net assets

40,972,204

501,675,470

 

 

 

Net Assets

Beginning of period

1,062,047,006

560,371,536

End of period (including undistributed net investment income of $6,750,185 and undistributed net investment income of $4,847,127, respectively)

$ 1,103,019,210

$ 1,062,047,006

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Financial Highlights - Class A

 

Six months ended
June 30, 2011

Years ended December 31,

 

(Unaudited)

2010

2009

2008

2007

2006

Selected Per-Share Data

 

 

 

 

 

Net asset value, beginning of period

$ 13.32

$ 12.76

$ 9.51

$ 12.32

$ 12.40

$ 12.11

Income from Investment Operations

 

 

 

 

 

 

Net investment income (loss) E

  .357

  .717

  .950

  .675

  .709

  .715

Net realized and unrealized gain (loss)

  .217

  .568

  3.126

  (2.793)

  (.066)

  .638

Total from investment operations

  .574

  1.285

  4.076

  (2.118)

  .643

  1.353

Distributions from net investment income

  (.330)

  (.670)

  (.814)

  (.664)

  (.705)

  (.699)

Distributions from net realized gain

  (.015)

  (.060)

  (.015)

  (.030)

  (.020)

  (.367)

Total distributions

  (.345)

  (.730)

  (.829)

  (.694)

  (.725)

  (1.066)

Redemption fees added to paid in capital E

  .001

  .005

  .003

  .002

  .002

  .003

Net asset value, end of period

$ 13.55

$ 13.32

$ 12.76

$ 9.51

$ 12.32

$ 12.40

Total Return B,C,D

  4.39%

  10.28%

  44.11%

  (17.82)%

  5.36%

  11.57%

Ratios to Average Net Assets F,H

 

 

 

 

 

Expenses before reductions

  1.21% A

  1.24%

  1.29%

  1.32%

  1.27%

  1.28%

Expenses net of fee waivers, if any

  1.19% A

  1.20%

  1.20%

  1.20%

  1.18%

  1.10%

Expenses net of all reductions

  1.19% A

  1.20%

  1.20%

  1.20%

  1.17%

  1.09%

Net investment income (loss)

  5.39% A

  5.40%

  8.13%

  5.94%

  5.75%

  5.80%

Supplemental Data

 

 

 

 

 

 

Net assets, end of period (000 omitted)

$ 313,188

$ 310,674

$ 167,196

$ 60,543

$ 75,584

$ 65,593

Portfolio turnover rate G

  97% A

  96%

  123%

  57%

  72%

  105%

A Annualized

B Total returns for periods of less than one year are not annualized.

C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.

D Total returns do not include the effect of the sales charges.

E Calculated based on average shares outstanding during the period.

F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Financial Highlights - Class T

 

Six months ended
June 30, 2011

Years ended December 31,

 

(Unaudited)

2010

2009

2008

2007

2006

Selected Per-Share Data

 

 

 

 

 

Net asset value, beginning of period

$ 13.28

$ 12.71

$ 9.48

$ 12.28

$ 12.37

$ 12.08

Income from Investment Operations

 

 

 

 

 

 

Net investment income (loss) E

  .355

  .714

  .924

  .676

  .704

  .701

Net realized and unrealized gain (loss)

  .209

  .581

  3.132

  (2.784)

  (.074)

  .640

Total from investment operations

  .564

  1.295

  4.056

  (2.108)

  .630

  1.341

Distributions from net investment income

  (.330)

  (.670)

  (.814)

  (.664)

  (.702)

  (.687)

Distributions from net realized gain

  (.015)

  (.060)

  (.015)

  (.030)

  (.020)

  (.367)

Total distributions

  (.345)

  (.730)

  (.829)

  (.694)

  (.722)

  (1.054)

Redemption fees added to paid in capital E

  .001

  .005

  .003

  .002

  .002

  .003

Net asset value, end of period

$ 13.50

$ 13.28

$ 12.71

$ 9.48

$ 12.28

$ 12.37

Total Return B,C,D

  4.33%

  10.41%

  44.04%

  (17.80)%

  5.26%

  11.49%

Ratios to Average Net Assets F.H

 

 

 

 

 

Expenses before reductions

  1.23% A

  1.24%

  1.30%

  1.32%

  1.29%

  1.36%

Expenses net of fee waivers, if any

  1.20% A

  1.20%

  1.20%

  1.20%

  1.20%

  1.20%

Expenses net of all reductions

  1.20% A

  1.20%

  1.20%

  1.20%

  1.19%

  1.19%

Net investment income (loss)

  5.39% A

  5.40%

  8.13%

  5.95%

  5.73%

  5.70%

Supplemental Data

 

 

 

 

 

 

Net assets, end of period (000 omitted)

$ 105,875

$ 114,786

$ 106,446

$ 87,427

$ 136,031

$ 137,200

Portfolio turnover rate G

  97% A

  96%

  123%

  57%

  72%

  105%

A Annualized

B Total returns for periods of less than one year are not annualized.

C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.

D Total returns do not include the effect of the sales charges.

E Calculated based on average shares outstanding during the period.

F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Financial Highlights - Class B

 

Six months ended
June 30, 2011

Years ended December 31,

 

(Unaudited)

2010

2009

2008

2007

2006

Selected Per-Share Data

 

 

 

 

 

Net asset value, beginning of period

$ 13.46

$ 12.88

$ 9.60

$ 12.42

$ 12.50

$ 12.20

Income from Investment Operations

 

 

 

 

 

 

Net investment income (loss) E

  .315

  .637

  .861

  .609

  .632

  .628

Net realized and unrealized gain (loss)

  .213

  .580

  3.169

  (2.812)

  (.073)

  .642

Total from investment operations

  .528

  1.217

  4.030

  (2.203)

  .559

  1.270

Distributions from net investment income

  (.284)

  (.582)

  (.738)

  (.589)

  (.621)

  (.606)

Distributions from net realized gain

  (.015)

  (.060)

  (.015)

  (.030)

  (.020)

  (.367)

Total distributions

  (.299)

  (.642)

  (.753)

  (.619)

  (.641)

  (.973)

Redemption fees added to paid in capital E

  .001

  .005

  .003

  .002

  .002

  .003

Net asset value, end of period

$ 13.69

$ 13.46

$ 12.88

$ 9.60

$ 12.42

$ 12.50

Total Return B,C,D

  3.99%

  9.63%

  43.08%

  (18.29)%

  4.61%

  10.74%

Ratios to Average Net Assets F,H

 

 

 

 

 

Expenses before reductions

  1.92% A

  1.93%

  1.97%

  1.97%

  1.94%

  2.10%

Expenses net of fee waivers, if any

  1.88% A

  1.85%

  1.85%

  1.85%

  1.85%

  1.85%

Expenses net of all reductions

  1.88% A

  1.85%

  1.85%

  1.85%

  1.84%

  1.84%

Net investment income (loss)

  4.71% A

  4.75%

  7.48%

  5.30%

  5.08%

  5.06%

Supplemental Data

 

 

 

 

 

 

Net assets, end of period (000 omitted)

$ 19,307

$ 21,843

$ 18,398

$ 14,324

$ 22,418

$ 26,442

Portfolio turnover rate G

  97% A

  96%

  123%

  57%

  72%

  105%

A Annualized

B Total returns for periods of less than one year are not annualized.

C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.

D Total returns do not include the effect of the contingent deferred sales charge.

E Calculated based on average shares outstanding during the period.

F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Financial Highlights - Class C

 

Six months ended
June 30, 2011

Years ended December 31,

 

(Unaudited)

2010

2009

2008

2007

2006

Selected Per-Share Data

 

 

 

 

 

Net asset value, beginning of period

$ 13.40

$ 12.83

$ 9.56

$ 12.37

$ 12.46

$ 12.16

Income from Investment Operations

 

 

 

 

 

 

Net investment income (loss) E

  .310

  .622

  .867

  .594

  .616

  .613

Net realized and unrealized gain (loss)

  .215

  .572

  3.142

  (2.798)

  (.080)

  .645

Total from investment operations

  .525

  1.194

  4.009

  (2.204)

  .536

  1.258

Distributions from net investment income

  (.281)

  (.569)

  (.727)

  (.578)

  (.608)

  (.594)

Distributions from net realized gain

  (.015)

  (.060)

  (.015)

  (.030)

  (.020)

  (.367)

Total distributions

  (.296)

  (.629)

  (.742)

  (.608)

  (.628)

  (.961)

Redemption fees added to paid in capital E

  .001

  .005

  .003

  .002

  .002

  .003

Net asset value, end of period

$ 13.63

$ 13.40

$ 12.83

$ 9.56

$ 12.37

$ 12.46

Total Return B,C,D

  3.98%

  9.48%

  43.02%

  (18.37)%

  4.44%

  10.66%

Ratios to Average Net Assets F,H

 

 

 

 

 

Expenses before reductions

  1.96% A

  1.96%

  2.02%

  2.06%

  2.04%

  2.12%

Expenses net of fee waivers, if any

  1.93% A

  1.95%

  1.95%

  1.95%

  1.95%

  1.95%

Expenses net of all reductions

  1.93% A

  1.95%

  1.95%

  1.95%

  1.94%

  1.94%

Net investment income (loss)

  4.65% A

  4.65%

  7.38%

  5.20%

  4.98%

  4.95%

Supplemental Data

 

 

 

 

 

 

Net assets, end of period (000 omitted)

$ 119,286

$ 124,907

$ 63,669

$ 22,464

$ 30,962

$ 28,628

Portfolio turnover rate G

  97% A

  96%

  123%

  57%

  72%

  105%

A Annualized

B Total returns for periods of less than one year are not annualized.

C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.

D Total returns do not include the effect of the contingent deferred sales charge.

E Calculated based on average shares outstanding during the period.

F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Financial Highlights - Institutional Class

 

Six months ended
June 30, 2011

Years ended December 31,

 

(Unaudited)

2010

2009

2008

2007

2006

Selected Per-Share Data

 

 

 

 

 

Net asset value, beginning of period

$ 13.12

$ 12.57

$ 9.39

$ 12.16

$ 12.25

$ 11.98

Income from Investment Operations

 

 

 

 

 

 

Net investment income (loss) D

  .370

  .743

  .990

  .695

  .725

  .725

Net realized and unrealized gain (loss)

  .203

  .568

  3.044

  (2.745)

  (.064)

  .628

Total from investment operations

  .573

  1.311

  4.034

  (2.050)

  .661

  1.353

Distributions from net investment income

  (.349)

  (.706)

  (.842)

  (.692)

  (.733)

  (.718)

Distributions from net realized gain

  (.015)

  (.060)

  (.015)

  (.030)

  (.020)

  (.367)

Total distributions

  (.364)

  (.766)

  (.857)

  (.722)

  (.753)

  (1.085)

Redemption fees added to paid in capital D

  .001

  .005

  .003

  .002

  .002

  .002

Net asset value, end of period

$ 13.33

$ 13.12

$ 12.57

$ 9.39

$ 12.16

$ 12.25

Total Return B,C

  4.46%

  10.67%

  44.29%

  (17.52)%

  5.58%

  11.70%

Ratios to Average Net Assets E,G

 

 

 

 

 

Expenses before reductions

  .90% A

  .92%

  .97%

  1.02%

  .99%

  1.02%

Expenses net of fee waivers, if any

  .90% A

  .92%

  .95%

  .95%

  .95%

  .95%

Expenses net of all reductions

  .90% A

  .92%

  .95%

  .95%

  .95%

  .94%

Net investment income (loss)

  5.68% A

  5.68%

  8.38%

  6.19%

  5.97%

  5.96%

Supplemental Data

 

 

 

 

 

 

Net assets, end of period (000 omitted)

$ 545,363

$ 489,838

$ 204,663

$ 32,947

$ 45,232

$ 25,177

Portfolio turnover rate F

  97% A

  96%

  123%

  57%

  72%

  105%

A Annualized

B Total returns for periods of less than one year are not annualized.

C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.

D Calculated based on average shares outstanding during the period.

E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Notes to Financial Statements

For the period ended June 30, 2011 (Unaudited)

1. Organization.

Fidelity Advisor Emerging Markets Income Fund (the Fund) is a non-diversified fund of Fidelity Advisor Series VIII (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class C and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Effective after the close of business on September 1, 2010, Class B shares were closed to new accounts and additional purchases, except for exchanges and reinvestments, by existing shareholders. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class.

2. Investments in Fidelity Central Funds.

The Fund invests in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.

The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.

A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, are available on the SEC web site or upon request.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

3. Significant Accounting Policies.

The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:

Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.

The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:

Level 1 - quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)

Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of June 30, 2011 for the Fund's investments, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows:

Debt securities, including restricted securities, are valued based on evaluated prices received from independent pricing services or from dealers who make markets in such securities. For corporate bonds, foreign government and government agency obligations, supranational obligations and U.S. government and government agency obligations,

Semiannual Report

3. Significant Accounting Policies - continued

Security Valuation - continued

pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy. The Fund invests a significant portion of its assets in below investment grade securities. The value of these securities can be more volatile due to changes in the credit quality of the issuer and is sensitive to changes in economic, market and regulatory conditions.

When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.

Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.

Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and 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. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Interest income and distributions from the Fidelity Central Funds are accrued as

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

3. Significant Accounting Policies - continued

Investment Transactions and Income - continued

earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. 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 collectability of interest is reasonably assured.

Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.

Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company, including distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.

Dividends are declared and recorded daily and paid monthly from net investment income. Distributions from realized gains, if any, are declared and recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.

Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.

Book-tax differences are primarily due to foreign currency transactions, defaulted bonds, market discount, contingent interest, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.

Semiannual Report

3. Significant Accounting Policies - continued

Income Tax Information and Distributions to Shareholders - continued

The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:

Gross unrealized appreciation

$ 67,859,571

Gross unrealized depreciation

(6,432,710)

Net unrealized appreciation (depreciation) on securities and other investments

$ 61,426,861

 

 

Tax cost

$ 1,039,713,621

Under the recently enacted Regulated Investment Company Modernization Act of 2010 (the Act), the Fund will be permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. However, any losses incurred during those future taxable years will be required to be utilized prior to any losses incurred in pre-enactment taxable years, which generally expire after eight years from when they are incurred. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law. The Fund's first fiscal year end subject to the Act will be December 31, 2011.

Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days are subject to a redemption fee equal to 1.00% of the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund and accounted for as an addition to paid in capital.

New Accounting Pronouncement. In May 2011, the Financial Accounting Standards Board issued Accounting Standard Update No. 2011-04, Fair Value Measurement (Topic 820) - Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The update changes the wording used to describe the requirements in GAAP for measuring fair value and for disclosing information about fair value measurements. The update is effective during interim and annual periods beginning after December 15, 2011. Management is currently evaluating the impact of the update's adoption on the Fund's financial statement disclosures.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

4. Operating Policies.

Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.

5. Purchases and Sales of Investments.

Purchases and sales of securities, other than short-term securities and U.S. government securities, aggregated $431,825,236 and $349,793,473, respectively.

6. Fees and Other Transactions with Affiliates.

Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .55% of the Fund's average net assets and a group fee rate that averaged .11% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .67% of the Fund's average net assets.

Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:

 

Distribution
Fee

Service
Fee

Total
Fees

Retained
by FDC

Class A

-%

.25%

$ 382,830

$ 22,927

Class T

-%

.25%

136,502

-

Class B

.65%

.25%

89,977

65,261

Class C

.75%

.25%

594,993

257,465

 

 

 

$ 1,204,302

$ 345,653

Semiannual Report

6. Fees and Other Transactions with Affiliates - continued

Sales Load. FDC may receive a front-end sales charge of up to 4.00% for selling Class A shares and Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, .75% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.

For the period, sales charge amounts retained by FDC were as follows:

 

Retained
by FDC

Class A

$ 34,040

Class T

6,131

Class B*

18,694

Class C*

27,040

 

$ 85,905

* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.

Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, transfer agent fees for each class were as follows:

 

Amount

% of
Average
Net Assets*

Class A

$ 315,956

.21

Class T

122,329

.23

Class B

25,771

.26

Class C

113,730

.19

Institutional Class 

379,847

.15

 

$ 957,633

 

* Annualized

Accounting Fees. Fidelity Service Company, Inc.(FSC), an affiliate of FMR, maintains the Fund's accounting records. The fee is based on the level of average net assets for the month.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

7. Committed Line of Credit.

The Fund participates with other funds managed by FMR or an affiliate in a $4.0 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $1,850 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.

8. Expense Reductions.

FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.

The following classes were in reimbursement during the period:

 

Expense
Limitations

Reimbursement
from adviser

 

 

 

Class A

1.20% - 1.25%*

$ 32,904

Class T

1.20% - 1.25%*

13,059

Class B

1.85% - 1.90%*

4,303

Class C

1.95% - 2.00%*

13,656

 

 

$ 63,922

* Expense limitation in effect at period end.

Effective March 1, 2011 the expense limitations were changed to 1.25%, 1.25%, 1.90% and 2.00% for Class A, T, B and C, respectively.

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. During the period, these credits reduced the Fund's custody expenses by $350.

Semiannual Report

9. Distributions to Shareholders.

Distributions to shareholders of each class were as follows:

Six months ended
June 30, 2011

Year ended
December 31, 2010

From net investment income

 

 

Class A

$ 7,584,943

$ 12,186,295

Class T

2,711,921

5,976,443

Class B

421,938

914,328

Class C

2,488,448

3,972,728

Institutional Class

13,657,707

18,778,320

Total

$ 26,864,957

$ 41,828,114

From net realized gain

 

 

Class A

$ 343,619

$ 1,393,614

Class T

126,989

521,718

Class B

23,136

97,418

Class C

137,304

555,098

Institutional Class 

574,841

2,219,929

Total

$ 1,205,889

$ 4,787,777

10. Share Transactions.

Transactions for each class of shares were as follows:

 

Shares

Dollars

Six months ended
June 30, 2011

Year ended
December 31, 2010

Six months ended
June 30, 2011

Year ended
December 31, 2010

Class A

 

 

 

 

Shares sold

4,417,244

15,644,323

$ 58,818,088

$ 208,168,500

Reinvestment of distributions

487,345

841,869

6,495,608

11,180,339

Shares redeemed

(5,102,873)

(6,273,296)

(67,749,970)

(82,997,450)

Net increase (decrease)

(198,284)

10,212,896

$ (2,436,274)

$ 136,351,389

Class T

 

 

 

 

Shares sold

578,935

3,068,075

$ 7,664,108

$ 40,708,889

Reinvestment of distributions

177,497

416,301

2,356,138

5,498,083

Shares redeemed

(1,558,212)

(3,210,330)

(20,649,868)

(42,651,952)

Net increase (decrease)

(801,780)

274,046

$ (10,629,622)

$ 3,555,020

Class B

 

 

 

 

Shares sold

55,091

701,294

$ 739,521

$ 9,385,461

Reinvestment of distributions

25,235

59,456

339,517

795,918

Shares redeemed

(292,829)

(566,246)

(3,927,769)

(7,562,381)

Net increase (decrease)

(212,503)

194,504

$ (2,848,731)

$ 2,618,998

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

10. Share Transactions - continued

 

Shares

Dollars

Six months ended
June 30, 2011

Year ended
December 31, 2010

Six months ended
June 30, 2011

Year ended
December 31, 2010

Class C

 

 

 

 

Shares sold

1,337,959

6,058,011

$ 17,944,144

$ 81,407,797

Reinvestment of distributions

155,276

267,388

2,080,948

3,576,622

Shares redeemed

(2,060,714)

(1,968,577)

(27,524,399)

(26,199,626)

Net increase (decrease)

(567,479)

4,356,822

$ (7,499,307)

$ 58,784,793

Institutional Class

 

 

 

 

Shares sold

10,557,536

27,986,820

$ 138,356,959

$ 367,469,375

Reinvestment of distributions

527,008

827,765

6,914,153

10,850,982

Shares redeemed

(7,517,186)

(7,749,845)

(98,407,600)

(101,344,271)

Net increase (decrease)

3,567,358

21,064,740

$ 46,863,512

$ 276,976,086

11. Other.

The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.

12. Credit Risk.

The Fund's relatively large investments in countries with limited or developing capital markets may involve greater risks than investments in more developed markets and the prices of such investments may be volatile. The yields of emerging market debt obligations reflect, among other things, perceived credit risk. The consequences of political, social or economic changes in these markets may have disruptive effects on the market prices of the Fund's investments and income they generate, as well as the Fund's ability to repatriate such amounts.

Semiannual Report

Investment Adviser

Fidelity Management & Research Company

Boston, MA

Investment Sub-Advisers

FMR Co., Inc.

Fidelity Management &
Research (U.K.) Inc.

FIL Investments (Japan) Limited

FIL Investment Advisors

FIL Investment Advisors (U.K.) Limited

Fidelity Management & Research
(Hong Kong) Limited

Fidelity Management & Research
(Japan) Inc.

General Distributor

Fidelity Distributors Corporation

Boston, MA

Transfer and Service Agents

Fidelity Investments Institutional Operations Company, Inc.

Boston, MA

Fidelity Service Company, Inc.

Boston, MA

Custodian

JPMorgan Chase Bank

New York, NY

EMII-USAN-0811
1.787774.108

fid336

Item 2. Code of Ethics

Not applicable.

Item 3. Audit Committee Financial Expert

Not applicable.

Item 4. Principal Accountant Fees and Services

Not applicable.

Item 5. Audit Committee of Listed Registrants

Not applicable.

Item 6. Investments

(a) Not applicable.

(b) Not applicable

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies

Not applicable.

Item 9. Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers

Not applicable.

Item 10. Submission of Matters to a Vote of Security Holders

There were no material changes to the procedures by which shareholders may recommend nominees to the Fidelity Advisor Series VIII's Board of Trustees.

Item 11. Controls and Procedures

(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the Fidelity Advisor Series VIII's (the "Trust") disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) provide reasonable assurances that material information relating to the Trust is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.

(a)(ii) There was no change in the Trust's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Trust's internal control over financial reporting.

Item 12. Exhibits

(a)

(1)

Not applicable.

(a)

(2)

Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT.

(a)

(3)

Not applicable.

(b)

 

Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Fidelity Advisor Series VIII

By:

/s/Kenneth B. Robins

 

Kenneth B. Robins

 

President and Treasurer

 

 

Date:

August 31, 2011

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:

/s/Kenneth B. Robins

 

Kenneth B. Robins

 

President and Treasurer

 

 

Date:

August 31, 2011

By:

/s/Christine Reynolds

 

Christine Reynolds

 

Chief Financial Officer

 

 

Date:

August 31, 2011