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)

245 Summer St., Boston, Massachusetts 02210
 (Address of principal executive offices)       (Zip code)

Scott C. Goebel, Secretary

245 Summer St.

Boston, Massachusetts 02210
(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, 2013

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, 2013

(Fidelity Cover Art)

Contents

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. © 2013 FMR LLC. All rights reserved.

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

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, 2013 to June 30, 2013).

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 RatioB

Beginning
Account Value
January 1, 2013

Ending
Account Value
June 30, 2013

Expenses Paid
During Period*
January 1, 2013
to June 30, 2013

Class A

1.18%

 

 

 

Actual

 

$ 1,000.00

$ 919.80

$ 5.62

HypotheticalA

 

$ 1,000.00

$ 1,018.94

$ 5.91

Class T

1.20%

 

 

 

Actual

 

$ 1,000.00

$ 919.40

$ 5.71

HypotheticalA

 

$ 1,000.00

$ 1,018.84

$ 6.01

Class B

1.90%

 

 

 

Actual

 

$ 1,000.00

$ 916.70

$ 9.03

HypotheticalA

 

$ 1,000.00

$ 1,015.37

$ 9.49

Class C

1.93%

 

 

 

Actual

 

$ 1,000.00

$ 916.20

$ 9.17

HypotheticalA

 

$ 1,000.00

$ 1,015.22

$ 9.64

Institutional Class

.89%

 

 

 

Actual

 

$ 1,000.00

$ 921.00

$ 4.24

HypotheticalA

 

$ 1,000.00

$ 1,020.38

$ 4.46

A 5% return per year before expenses

B Annualized expense ratio reflects expenses net of applicable fee waivers.

* 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, 2013

(excluding cash equivalents)

% of fund's
net assets

% of fund's net assets
6 months ago

Venezuela

10.9

13.2

Mexico

7.6

6.6

Russia

5.8

5.0

Netherlands

5.1

3.3

Indonesia

4.6

3.6

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

Top Five Holdings as of June 30, 2013

(by issuer, excluding cash equivalents)

% of fund's
net assets

% of fund's net assets
6 months ago

Petroleos de Venezuela SA

6.5

6.1

Russian Federation

5.5

4.8

Petroleos Mexicanos

4.4

2.4

Venezuelan Republic

4.4

7.1

Turkish Republic

3.4

7.6

 

24.2

Asset Allocation (% of fund's net assets)

As of June 30, 2013

As of December 31, 2012

jos471256

Corporate Bonds 36.5%

 

jos471256

Corporate Bonds 28.1%

 

jos471259

Government
Obligations 54.2%

 

jos471259

Government
Obligations 58.1%

 

jos471262

Stocks 0.1%

 

jos471262

Stocks 0.5%

 

jos471265

Preferred Securities 0.4%

 

jos471265

Preferred Securities 0.2%

 

jos471268

Investment
Companies 1.8%

 

jos471268

Investment
Companies 3.3%

 

jos471271

Short-Term
Investments and
Net Other Assets (Liabilities) 7.0%

 

jos471271

Short-Term
Investments and
Net Other Assets (Liabilities) 9.8%

 

jos471274

Semiannual Report

Investments June 30, 2013 (Unaudited)

Showing Percentage of Net Assets

Nonconvertible Bonds - 36.5%

 

Principal Amount (d)

Value

Bahamas (Nassau) - 0.1%

Ultrapetrol (Bahamas) Ltd. 8.875% 6/15/21 (g)

$ 1,495,000

$ 1,495,000

Bailiwick of Jersey - 0.2%

Polyus Gold International Ltd. 5.625% 4/29/20 (g)

4,730,000

4,493,500

Brazil - 0.8%

Banco Nacional de Desenvolvimento Economico e Social 6.5% 6/10/19 (g)

7,295,000

7,951,550

Brasil Foods SA 7.75% 5/22/18 (g)

BRL

5,035,000

1,951,857

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

6,980,000

7,294,100

TOTAL BRAZIL

17,197,507

British Virgin Islands - 0.3%

Arcos Dorados Holdings, Inc. 10.25% 7/13/16 (g)

BRL

4,795,000

2,154,296

Magnesita Finance Ltd. 8.625% (g)(h)

5,000,000

4,950,000

TOTAL BRITISH VIRGIN ISLANDS

7,104,296

Canada - 0.3%

Pacific Rubiales Energy Corp. 7.25% 12/12/21 (g)

6,290,000

6,667,400

Cayman Islands - 3.2%

AES Andres Dominicana Ltd./Itabo Dominicana Ltd. 9.5% 11/12/20 (g)

2,400,000

2,532,000

Hutchison Whampoa International 10 Ltd. 6% (g)(h)(i)

18,160,000

18,886,400

Odebrecht Finance Ltd. 7.5% (g)(h)

11,871,000

11,752,290

Petrobras International Finance Co. Ltd.:

5.375% 1/27/21

5,595,000

5,621,263

5.75% 1/20/20

3,075,000

3,199,162

6.75% 1/27/41

12,655,000

12,598,053

8.375% 12/10/18

9,781,000

11,573,368

TOTAL CAYMAN ISLANDS

66,162,536

Chile - 0.3%

Empresa Nacional de Petroleo 5.25% 8/10/20 (Reg. S)

5,440,000

5,517,515

Costa Rica - 0.1%

Instituto Costarricense de Electricidad 6.95% 11/10/21 (g)

2,189,000

2,298,450

Georgia - 1.0%

Georgia Bank Joint Stock Co. 7.75% 7/5/17 (g)

10,765,000

11,195,600

Georgian Oil & Gas Corp. 6.875% 5/16/17 (g)

6,265,000

6,233,675

JSC Georgian Railway 7.75% 7/11/22 (g)

2,385,000

2,575,800

TOTAL GEORGIA

20,005,075

Nonconvertible Bonds - continued

 

Principal Amount (d)

Value

Hungary - 0.1%

Magyar Export-Import Bank 5.5% 2/12/18 (g)

$ 1,895,000

$ 1,871,313

Indonesia - 1.6%

Indonesia Eximbank 3.75% 4/26/17 (Reg. S)

4,110,000

4,048,350

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

3,355,000

3,522,750

PT Pertamina Persero:

4.3% 5/20/23 (g)

6,275,000

5,773,000

4.875% 5/3/22 (g)

6,390,000

6,118,425

5.25% 5/23/21 (g)

3,890,000

3,851,100

6% 5/3/42 (g)

5,115,000

4,782,525

6.5% 5/27/41 (g)

1,791,000

1,728,315

PT Perusahaan Listrik Negara 5.5% 11/22/21 (Reg. S)

2,120,000

2,077,600

TOTAL INDONESIA

31,902,065

Ireland - 1.7%

CBOM Finance PLC 8.25% 8/5/14

3,460,000

3,577,640

MTS International Funding Ltd. 5% 5/30/23 (g)

2,810,000

2,690,575

RZD Capital Ltd. 5.7% 4/5/22 (Reg. S)

6,110,000

6,323,850

SCF Capital Ltd. 5.375% 10/27/17 (g)

7,930,000

7,692,100

Vnesheconombank Via VEB Finance PLC:

5.45% 11/22/17 (g)

2,110,000

2,196,932

6.025% 7/5/22 (g)

3,660,000

3,765,042

6.8% 11/22/25 (g)

3,330,000

3,558,771

6.902% 7/9/20 (g)

4,760,000

5,224,100

TOTAL IRELAND

35,029,010

Israel - 0.7%

Israel Electric Corp. Ltd.:

5.625% 6/21/18 (g)

3,960,000

4,068,900

6.7% 2/10/17 (g)

9,030,000

9,481,500

TOTAL ISRAEL

13,550,400

Kazakhstan - 1.9%

Development Bank of Kazakhstan JSC 4.125% 12/10/22 (g)

5,045,000

4,439,600

Kazagro National Management Holding JSC 4.625% 5/24/23 (g)

2,105,000

1,926,075

KazMunaiGaz National Co.:

4.4% 4/30/23 (g)

4,970,000

4,567,927

5.75% 4/30/43 (g)

9,940,000

8,777,020

Nonconvertible Bonds - continued

 

Principal Amount (d)

Value

Kazakhstan - continued

KazMunaiGaz Finance Sub BV 7% 5/5/20 (g)

$ 6,370,000

$ 7,198,100

Zhaikmunai International BV 7.125% 11/13/19 (g)

12,320,000

12,320,000

TOTAL KAZAKHSTAN

39,228,722

Luxembourg - 1.8%

Aquarius Investments Luxemburg 8.25% 2/18/16

2,895,000

3,010,800

Cosan Luxembourg SA 9.5% 3/14/18 (g)

BRL

13,290,000

5,665,679

EVRAZ Group SA 6.5% 4/22/20 (g)

3,705,000

3,343,763

Gaz Capital SA (Luxembourg):

6.212% 11/22/16 (Issued by Gazprom OAO for Gaz Capital SA) (g)

2,720,000

2,943,040

9.25% 4/23/19 (g)

2,640,000

3,194,400

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

3,580,000

3,785,850

RSHB Capital SA:

5.298% 12/27/17 (g)

13,435,000

13,686,235

6% 6/3/21 (g)(i)

2,365,000

2,344,188

TOTAL LUXEMBOURG

37,973,955

Mexico - 5.6%

America Movil S.A.B. de CV 6.45% 12/5/22

MXN

262,600,000

19,358,402

Comision Federal de Electricid 4.875% 5/26/21 (g)

2,645,000

2,697,900

Petroleos Mexicanos:

3.5% 1/30/23 (g)

3,500,000

3,228,750

4.875% 1/24/22

18,975,000

19,259,625

5.5% 1/21/21

8,625,000

9,241,688

5.5% 6/27/44

12,245,000

11,051,113

5.5% 6/27/44 (g)

4,550,000

4,101,825

6% 3/5/20

6,015,000

6,646,575

6.5% 6/2/41

8,935,000

9,225,388

6.625% (g)(h)

10,485,000

10,668,488

8% 5/3/19

13,730,000

16,750,600

TV Azteca SA de CV 7.5% 5/25/18 (Reg. S)

2,780,000

2,925,950

TOTAL MEXICO

115,156,304

Netherlands - 4.9%

Access Finance BV 7.25% 7/25/17 (g)

4,855,000

4,782,175

Bulgaria Steel Finance BV 12% 5/4/49 unit (c)

EUR

600,000

7,810

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

3,335,000

3,518,425

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

3,904,000

4,196,800

Nonconvertible Bonds - continued

 

Principal Amount (d)

Value

Netherlands - continued

Kazakhstan Temir Zholy Finance BV:

6.375% 10/6/20 (g)

$ 2,445,000

$ 2,658,938

6.95% 7/10/42 (g)

2,440,000

2,479,772

KazMunaiGaz Finance Sub BV:

6.375% 4/9/21 (g)

5,615,000

6,064,200

9.125% 7/2/18 (g)

5,865,000

7,008,675

11.75% 1/23/15 (g)

11,065,000

12,531,113

Majapahit Holding BV:

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

1,930,000

2,123,000

7.75% 1/20/20 (g)

4,750,000

5,272,500

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

2,065,000

2,395,400

8% 8/7/19 (g)

3,865,000

4,348,125

Petrobras Global Finance BV:

2.4141% 1/15/19 (i)

33,620,000

32,745,880

4.375% 5/20/23

3,815,000

3,477,754

VimpelCom Holdings BV:

5.2% 2/13/19 (g)

4,400,000

4,268,000

9% 2/13/18 (g)

RUB

106,100,000

3,204,999

TOTAL NETHERLANDS

101,083,566

Paraguay - 0.2%

Telefonica Celular del Paraguay SA 6.75% 12/13/22 (g)

3,140,000

3,234,200

Peru - 0.5%

Alicorp SA 3.875% 3/20/23 (g)

2,435,000

2,252,375

Corporacion Azucarera del Peru SA 6.375% 8/2/22 (g)

2,530,000

2,466,750

Corporacion Lindley SA 4.625% 4/12/23 (g)

1,985,000

1,855,975

Gas Nat de Lima Y Callao SA 4.375% 4/1/23 (g)

2,445,000

2,212,725

Transportadora de Gas Del Peru 4.25% 4/30/28 (g)

2,480,000

2,219,600

TOTAL PERU

11,007,425

Philippines - 0.5%

Power Sector Assets and Liabilities Management Corp.:

7.25% 5/27/19 (g)

3,751,000

4,444,935

7.39% 12/2/24 (g)

4,300,000

5,203,000

TOTAL PHILIPPINES

9,647,935

Russia - 0.3%

Far Eastern Shipping Co. 8% 5/2/18 (g)

3,745,000

3,398,588

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

2,620,000

3,078,500

TOTAL RUSSIA

6,477,088

Nonconvertible Bonds - continued

 

Principal Amount (d)

Value

South Africa - 0.4%

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

$ 7,480,000

$ 7,405,200

Sri Lanka - 0.3%

Bank of Ceylon 6.875% 5/3/17 (g)

5,195,000

5,337,863

Trinidad & Tobago - 0.4%

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

5,830,000

7,258,350

Turkey - 0.4%

Anadolu Efes Biracilik Ve Malt Sanayii A/S 3.375% 11/1/22 (g)

1,310,000

1,159,350

Arcelik A/S 5% 4/3/23 (g)

8,585,000

7,726,500

TOTAL TURKEY

8,885,850

Ukraine - 0.2%

Ukraine Financing of Infrastructure Projects State Enterprise 9% 12/7/17 (g)

3,610,000

3,357,300

United Kingdom - 0.6%

Afren PLC 11.5% 2/1/16 (g)

1,520,000

1,672,000

Biz Finance PLC:

8.375% 4/27/15 (Reg. S)

2,505,000

2,423,588

8.75% 1/22/18 (State Export-Import Bank of Ukraine JSC for Biz Finance PLC)(Reg. S)

2,430,000

2,162,700

JSC Oschadbank 8.25% 3/10/16 (Issued by SSB #1 PLC for JSC Oschadbank)

3,260,000

3,048,100

Shortline PLC 9.5% 5/21/18 (g)

2,510,000

2,290,375

TOTAL UNITED KINGDOM

11,596,763

United States of America - 1.6%

Pemex Project Funding Master Trust:

5.75% 3/1/18

1,310,000

1,444,275

6.625% 6/15/35

13,665,000

14,484,900

6.625% 6/15/38

1,905,000

1,995,488

8.625% 2/1/22

8,763,000

10,406,063

Severstal Columbus LLC 10.25% 2/15/18

3,725,000

3,939,188

TOTAL UNITED STATES OF AMERICA

32,269,914

Venezuela - 6.5%

Petroleos de Venezuela SA:

4.9% 10/28/14

36,660,000

34,277,100

5.25% 4/12/17

10,900,000

8,758,150

5.375% 4/12/27

12,040,000

7,224,000

5.5% 4/12/37

6,215,000

3,589,163

Nonconvertible Bonds - continued

 

Principal Amount (d)

Value

Venezuela - continued

Petroleos de Venezuela SA: - continued

8.5% 11/2/17 (g)

$ 64,935,000

$ 59,090,850

9% 11/17/21 (Reg. S)

13,550,000

11,382,000

9.75% 5/17/35 (g)

7,205,000

5,691,950

12.75% 2/17/22 (g)

3,320,000

3,344,900

TOTAL VENEZUELA

133,358,113

TOTAL NONCONVERTIBLE BONDS

(Cost $766,704,158)


746,572,615

Government Obligations - 55.3%

 

Argentina - 0.3%

Argentine Republic:

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

3,669,351

2,054,836

2.5% 12/31/38 (e)

3,965,000

1,278,713

7% 10/3/15

2,645,000

2,241,638

8.75% 6/2/17

1,595,000

1,208,213

TOTAL ARGENTINA

6,783,400

Aruba - 0.3%

Aruba Government 4.625% 9/14/23 (g)

5,970,000

5,611,800

Azerbaijan - 0.3%

State Oil Co. of Azerbaijan Republic:

4.75% 3/13/23 (Reg. S)

3,710,000

3,357,550

5.45% 2/9/17 (Reg. S)

3,600,000

3,708,000

TOTAL AZERBAIJAN

7,065,550

Bahamas (Nassau) - 0.3%

Bahamian Republic 6.95% 11/20/29 (g)

4,635,000

5,330,250

Barbados - 0.5%

Barbados Government:

7% 8/4/22 (g)

5,982,000

5,982,000

7.25% 12/15/21 (g)

3,982,000

4,021,820

TOTAL BARBADOS

10,003,820

Government Obligations - continued

 

Principal
Amount (d)

Value

Belarus - 1.3%

Belarus Republic:

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

$ 19,070,000

$ 18,974,650

8.95% 1/26/18

8,510,000

8,488,725

TOTAL BELARUS

27,463,375

Belize - 0.1%

Belize Government 5% 2/20/38 (e)(g)

3,696,600

2,217,960

Bermuda - 0.6%

Bermuda Government:

4.138% 1/3/23 (g)

4,840,000

4,682,700

5.603% 7/20/20 (g)

6,303,000

6,759,968

TOTAL BERMUDA

11,442,668

Bolivia - 0.1%

Plurinational State of Bolivia 4.875% 10/29/22 (g)

2,070,000

1,914,750

Brazil - 1.6%

Brazilian Federative Republic:

5.625% 1/7/41

2,505,000

2,486,213

8.25% 1/20/34

3,730,000

4,942,250

10.125% 5/15/27

7,760,000

12,086,200

12.25% 3/6/30

7,340,000

12,569,750

TOTAL BRAZIL

32,084,413

Cayman Islands - 0.3%

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

5,530,000

6,083,000

Colombia - 1.1%

Colombian Republic:

4.375% 7/12/21

5,220,000

5,415,750

6.125% 1/18/41

1,940,000

2,153,400

7.375% 9/18/37

4,410,000

5,578,650

8.125% 5/21/24

2,130,000

2,769,000

11.75% 2/25/20

4,793,000

7,057,693

TOTAL COLOMBIA

22,974,493

Congo - 0.9%

Congo Republic 3% 6/30/29 (e)

20,526,688

17,447,685

Costa Rica - 0.7%

Costa Rican Republic:

(Reg.S) 8.28% 3/19/14

CRC

1,829,180,000

3,725,160

4.25% 1/26/23 (g)

5,520,000

5,064,600

Government Obligations - continued

 

Principal Amount (d)

Value

Costa Rica - continued

Costa Rican Republic: - continued

4.375% 4/30/25 (g)

$ 2,850,000

$ 2,607,750

5.625% 4/30/43 (g)

2,355,000

2,166,600

TOTAL COSTA RICA

13,564,110

Croatia - 1.4%

Croatia Republic:

5.5% 4/4/23 (g)

6,300,000

6,111,000

6.25% 4/27/17 (g)

13,680,000

14,312,016

6.625% 7/14/20 (g)

7,825,000

8,255,375

TOTAL CROATIA

28,678,391

Dominican Republic - 1.0%

Dominican Republic:

5.875% 4/18/24 (g)

12,210,000

11,782,650

7.5% 5/6/21 (g)

3,185,000

3,423,875

9.04% 1/23/18 (g)

4,153,312

4,506,344

TOTAL DOMINICAN REPUBLIC

19,712,869

Ecuador - 0.2%

Ecuador Republic 9.375% 12/15/15 (g)

3,135,000

3,229,050

Georgia - 0.2%

Georgia Republic 6.875% 4/12/21 (g)

3,440,000

3,680,800

Guatemala - 0.3%

Guatemalan Republic:

4.875% 2/13/28 (g)

2,905,000

2,614,500

5.75% 6/6/22 (g)

4,230,000

4,230,000

TOTAL GUATEMALA

6,844,500

Honduras - 0.1%

Republic of Honduras 7.5% 3/15/24 (g)

2,920,000

2,569,600

Hungary - 1.8%

Hungarian Republic:

4.125% 2/19/18

5,209,000

5,059,241

4.75% 2/3/15

5,630,000

5,714,450

5.375% 2/21/23

6,578,000

6,331,325

6.25% 1/29/20

5,224,000

5,459,080

6.375% 3/29/21

8,479,000

8,818,160

7.625% 3/29/41

5,828,000

6,084,432

TOTAL HUNGARY

37,466,688

Government Obligations - continued

 

Principal Amount (d)

Value

Iceland - 0.8%

Republic of Iceland:

4.875% 6/16/16 (g)

$ 5,520,000

$ 5,727,000

5.875% 5/11/22 (g)

10,605,000

11,294,325

TOTAL ICELAND

17,021,325

Indonesia - 3.0%

Indonesian Republic:

3.375% 4/15/23 (g)

7,445,000

6,644,663

3.75% 4/25/22 (g)

4,550,000

4,220,125

4.875% 5/5/21 (g)

13,510,000

13,847,750

5.875% 3/13/20 (g)

8,000,000

8,620,000

6.875% 1/17/18 (g)

3,275,000

3,676,188

7.75% 1/17/38 (g)

2,950,000

3,643,250

8.5% 10/12/35 (g)

6,355,000

8,325,050

11.625% 3/4/19 (g)

8,745,000

11,893,200

TOTAL INDONESIA

60,870,226

Iraq - 0.7%

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

17,660,000

14,481,200

Israel - 0.2%

Israeli State 4.5% 1/30/43

5,190,000

4,606,125

Ivory Coast - 0.7%

Ivory Coast 7.1% 12/31/32 (e)

16,565,000

13,666,125

Jamaica - 0.2%

Jamaican Government:

8% 6/24/19

3,035,000

2,913,600

8% 3/15/39

2,325,000

2,046,000

TOTAL JAMAICA

4,959,600

Jordan - 0.3%

Jordanian Kingdom 3.875% 11/12/15

6,885,000

6,764,513

Latvia - 0.4%

Latvian Republic:

2.75% 1/12/20 (g)

6,015,000

5,571,695

5.25% 6/16/21 (g)

3,300,000

3,506,250

TOTAL LATVIA

9,077,945

Lebanon - 2.7%

Lebanese Republic:

4% 12/31/17

3,834,000

3,718,980

Government Obligations - continued

 

Principal
Amount (d)

Value

Lebanon - continued

Lebanese Republic: - continued

4.9947% to 5.3554% 8/29/13 to 3/20/14

LBP

21,925,905,000

$ 14,052,777

5.15% 11/12/18

2,345,000

2,239,475

5.45% 11/28/19

15,630,000

14,223,300

6.1% 10/4/22

5,460,000

5,200,650

8.25% 4/12/21 (Reg.S)

2,155,000

2,316,625

8.5% 8/6/15

1,745,000

1,854,063

8.5% 1/19/16 (Reg. S)

2,760,000

2,939,400

9% 3/20/17

2,535,000

2,772,783

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

4,345,000

5,083,650

TOTAL LEBANON

54,401,703

Lithuania - 1.0%

Lithuanian Republic:

6.125% 3/9/21 (g)

4,510,000

5,026,666

6.625% 2/1/22 (g)

5,960,000

6,839,100

7.375% 2/11/20 (g)

7,950,000

9,440,625

TOTAL LITHUANIA

21,306,391

Mexico - 2.0%

United Mexican States:

4.75% 3/8/44

5,842,000

5,287,010

5.125% 1/15/20

5,102,000

5,624,955

5.95% 3/19/19

5,734,000

6,562,563

6.05% 1/11/40

5,246,000

5,770,600

6.75% 9/27/34

6,585,000

7,803,225

8.3% 8/15/31

2,330,000

3,192,100

11.5% 5/15/26

3,595,000

5,904,788

TOTAL MEXICO

40,145,241

Morocco - 0.3%

Moroccan Kingdom:

4.25% 12/11/22 (g)

3,665,000

3,243,525

5.5% 12/11/42 (g)

2,725,000

2,275,375

TOTAL MOROCCO

5,518,900

Namibia - 0.1%

Republic of Namibia 5.5% 11/3/21 (g)

2,512,000

2,523,731

Netherlands - 0.2%

Republic of Angola 7% 8/16/19 (Issued by Northern Lights III BV for Republic of Angola) (Reg. S)

3,215,000

3,303,413

Government Obligations - continued

 

Principal
Amount (d)

Value

Nigeria - 0.6%

Republic of Nigeria:

4% 4/23/15

NGN

232,165,000

$ 1,205,321

6.75% 1/28/21 (g)

1,595,000

1,666,775

10.65% to 12.65% 1/9/14 to 2/6/14

NGN

1,638,945,000

9,337,179

TOTAL NIGERIA

12,209,275

Panama - 0.7%

Panamanian Republic:

4.3% 4/29/53

6,285,000

4,980,863

7.125% 1/29/26

2,870,000

3,508,575

8.875% 9/30/27

3,969,000

5,477,220

TOTAL PANAMA

13,966,658

Peru - 1.0%

Peruvian Republic:

7.35% 7/21/25

6,340,000

8,020,100

8.75% 11/21/33

9,245,000

13,405,250

TOTAL PERU

21,425,350

Philippines - 2.4%

Philippine Republic:

5.5% 3/30/26

3,640,000

4,149,600

6.375% 10/23/34

1,320,000

1,577,400

7.75% 1/14/31

8,055,000

10,552,050

9.5% 2/2/30

8,210,000

12,273,950

10.625% 3/16/25

13,615,000

21,511,700

TOTAL PHILIPPINES

50,064,700

Poland - 0.8%

Polish Government:

3% 3/17/23

7,760,000

7,022,800

5% 3/23/22

8,755,000

9,411,625

TOTAL POLAND

16,434,425

Romania - 0.8%

Romanian Republic:

4.375% 8/22/23 (g)

6,030,000

5,683,275

6.75% 2/7/22 (g)

9,490,000

10,605,075

TOTAL ROMANIA

16,288,350

Government Obligations - continued

 

Principal Amount (d)

Value

Russia - 5.5%

Russian Federation:

5.625% 4/4/42 (g)

$ 9,865,000

$ 10,234,938

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

56,322,000

65,755,912

11% 7/24/18 (Reg. S)

7,005,000

9,596,850

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

16,049,000

28,085,750

TOTAL RUSSIA

113,673,450

Senegal - 0.1%

Republic of Senegal 8.75% 5/13/21 (g)

2,725,000

2,834,000

Serbia - 1.5%

Republic of Serbia:

4.875% 2/25/20 (g)

4,845,000

4,457,400

5.25% 11/21/17 (g)

7,835,000

7,639,125

6.75% 11/1/24 (g)

13,487,523

13,352,647

7.25% 9/28/21 (g)

5,495,000

5,646,113

TOTAL SERBIA

31,095,285

Slovakia - 0.3%

Slovakia Republic 4.375% 5/21/22 (g)

5,145,000

5,273,625

Slovenia - 2.4%

Republic of Slovenia:

4.75% 5/10/18 (g)

3,645,000

3,453,638

5.5% 10/26/22 (g)

34,280,000

31,366,200

5.85% 5/10/23 (g)

15,375,000

14,183,438

TOTAL SLOVENIA

49,003,276

Sri Lanka - 0.7%

Democratic Socialist Republic of Sri Lanka:

5.875% 7/25/22 (g)

4,195,000

3,943,300

6.25% 10/4/20 (g)

5,160,000

5,056,800

6.25% 7/27/21 (g)

3,625,000

3,552,500

7.4% 1/22/15 (g)

1,810,000

1,900,500

TOTAL SRI LANKA

14,453,100

Tanzania - 0.2%

Tanzania United Republic of 6.4499% 3/8/20 (i)

4,160,000

4,180,800

Turkey - 3.4%

Turkish Republic:

5.125% 3/25/22

3,605,000

3,704,138

5.625% 3/30/21

7,860,000

8,410,200

6.25% 9/26/22

7,575,000

8,389,313

Government Obligations - continued

 

Principal Amount (d)

Value

Turkey - continued

Turkish Republic: - continued

6.75% 4/3/18

$ 3,930,000

$ 4,421,250

6.75% 5/30/40

3,995,000

4,444,438

6.875% 3/17/36

6,640,000

7,436,800

7% 6/5/20

7,575,000

8,768,063

7.375% 2/5/25

9,005,000

10,760,975

7.5% 11/7/19

5,240,000

6,183,200

8% 2/14/34

2,185,000

2,742,175

11.875% 1/15/30

2,385,000

4,018,725

TOTAL TURKEY

69,279,277

Ukraine - 3.2%

Ukraine Government:

7.5% 4/17/23 (g)

17,925,000

15,774,000

7.75% 9/23/20 (g)

5,515,000

5,018,650

7.8% 11/28/22 (g)

12,815,000

11,469,425

7.95% 6/4/14 (g)

20,260,000

20,108,050

7.95% 2/23/21 (g)

2,405,000

2,200,575

9.25% 7/24/17 (g)

10,945,000

10,904,504

TOTAL UKRAINE

65,475,204

United States of America - 1.1%

U.S. Treasury Bonds 2.875% 5/15/43

26,455,000

23,445,744

Venezuela - 4.4%

Venezuelan Republic:

oil recovery rights 4/15/20 (j)

113,320

2,917,990

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

7,205,000

6,340,400

6% 12/9/20

5,770,000

4,183,250

7.65% 4/21/25

5,290,000

3,861,700

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

8,615,000

7,085,838

8.25% 10/13/24

10,235,000

7,753,013

8.5% 10/8/14

20,315,000

19,959,488

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

6,630,000

5,469,750

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

7,150,000

5,755,750

9.375% 1/13/34

4,590,000

3,717,900

10.75% 9/19/13

7,670,000

7,650,825

11.75% 10/21/26 (Reg. S)

7,515,000

7,064,100

11.95% 8/5/31 (Reg. S)

6,875,000

6,462,500

12.75% 8/23/22

1,590,000

1,617,825

TOTAL VENEZUELA

89,840,329

Government Obligations - continued

 

Principal Amount (d)

Value

Vietnam - 0.1%

Vietnamese Socialist Republic 6.75% 1/29/20 (g)

$ 1,670,000

$ 1,770,200

Zambia - 0.1%

Republic of Zambia 5.375% 9/20/22 (g)

2,370,000

2,097,450

TOTAL GOVERNMENT OBLIGATIONS

(Cost $1,143,773,720)


1,133,626,108

Common Stocks - 0.1%

Shares

 

Colombia - 0.0%

Ecopetrol SA ADR

16,000

672,960

United Kingdom - 0.1%

Bank of Georgia Holdings PLC

44,500

1,130,294

TOTAL COMMON STOCKS

(Cost $1,822,516)


1,803,254

Investment Companies - 1.8%

 

 

 

 

United States of America - 1.8%

iShares MSCI Brazil Index ETF

232,200

10,184,292

iShares MSCI Emerging Markets Index ETF (f)

678,800

26,181,316

TOTAL INVESTMENT COMPANIES

(Cost $38,518,364)


36,365,608

Preferred Securities - 0.4%

Principal Amount (d)

 

Brazil - 0.4%

Globo Comunicacoes e Participacoes SA 6.25% (e)(g)(h)

$ 7,990,000

8,368,283

China - 0.0%

Sinochem Group 5% (e)(g)(h)

610,000

551,118

TOTAL PREFERRED SECURITIES

(Cost $9,052,896)


8,919,401

Money Market Funds - 7.1%

Shares

Value

Fidelity Cash Central Fund, 0.13% (a)

129,655,142

$ 129,655,142

Fidelity Securities Lending Cash Central Fund, 0.13% (a)(b)

16,469,300

16,469,300

TOTAL MONEY MARKET FUNDS

(Cost $146,124,442)


146,124,442

TOTAL INVESTMENT PORTFOLIO - 101.2%

(Cost $2,105,996,096)

2,073,411,428

NET OTHER ASSETS (LIABILITIES) - (1.2)%

(25,005,145)

NET ASSETS - 100%

$ 2,048,406,283

Currency Abbreviations

BRL

-

Brazilian real

CRC

-

Costa Rican colon

EUR

-

European Monetary Unit

LBP

-

Lebanese pound

MXN

-

Mexican peso

NGN

-

Nigerian naira

RUB

-

Russian ruble

Security Type Abbreviations

ETF

-

Exchange-Traded Fund

Legend

(a) Affiliated fund that is generally 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) Investment made with cash collateral received from securities on loan.

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

(d) Amount is stated in United States dollars unless otherwise noted.

(e) 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.

(f) Security or a portion of the security is on loan at period end.

(g) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $879,667,644 or 42.9% of net assets.

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

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

(j) 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

$ 115,938

Fidelity Securities Lending Cash Central Fund

68,463

Total

$ 184,401

Other Information

Categorizations in the Schedule of Investments are based on country or territory of incorporation.

The following is a summary of the inputs used, as of June 30, 2013, 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 table below, please refer to the Investment 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:

Equities:

Energy

$ 672,960

$ 672,960

$ -

$ -

Financials

1,130,294

1,130,294

-

-

Corporate Bonds

746,572,615

-

746,564,805

7,810

Government Obligations

1,133,626,108

-

1,133,626,108

-

Investment Companies

36,365,608

36,365,608

-

-

Preferred Securities

8,919,401

-

8,919,401

-

Money Market Funds

146,124,442

146,124,442

-

-

Total Investments in Securities:

$ 2,073,411,428

$ 184,293,304

$ 1,889,110,314

$ 7,810

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

1.1%

AAA,AA,A

6.6%

BBB

40.8%

BB

16.0%

B

20.2%

CCC,CC,C

0.4%

Not Rated

5.9%

Equities

2.0%

Short-Term Investments and Net Other Assets

7.0%

 

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.

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

Semiannual Report

Financial Statements

Statement of Assets and Liabilities

 

June 30, 2013 (Unaudited)

 

 

 

Assets

Investment in securities, at value (including securities loaned of $16,154,600) - See accompanying schedule:

Unaffiliated issuers (cost $1,959,871,654)

$ 1,927,286,986

 

Fidelity Central Funds (cost $146,124,442)

146,124,442

 

Total Investments (cost $2,105,996,096)

 

$ 2,073,411,428

Cash

 

28,840,574

Receivable for investments sold

9,079,849

Receivable for fund shares sold

4,369,341

Dividends receivable

637,379

Interest receivable

30,160,952

Distributions receivable from Fidelity Central Funds

20,076

Receivable from investment adviser for expense reductions

439

Other receivables

14,504

Total assets

2,146,534,542

 

 

 

Liabilities

Payable for investments purchased

$ 66,459,847

Payable for fund shares redeemed

10,485,090

Distributions payable

2,715,339

Accrued management fee

1,198,236

Distribution and service plan fees payable

303,036

Other affiliated payables

386,774

Other payables and accrued expenses

110,637

Collateral on securities loaned, at value

16,469,300

Total liabilities

98,128,259

 

 

 

Net Assets

$ 2,048,406,283

Net Assets consist of:

 

Paid in capital

$ 2,060,189,682

Undistributed net investment income

15,888,589

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

5,361,720

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

(33,033,708)

Net Assets

$ 2,048,406,283

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

Semiannual Report

Financial Statements - continued

Statement of Assets and Liabilities - continued

 

June 30, 2013 (Unaudited)

 

 

 

Calculation of Maximum Offering Price

Class A:
Net Asset Value and redemption price per share ($427,054,671 ÷ 31,107,139 shares)

$ 13.73

 

 

 

Maximum offering price per share (100/96.00 of $13.73)

$ 14.30

Class T:
Net Asset Value and redemption price per share ($111,331,154 ÷ 8,142,650 shares)

$ 13.67

 

 

 

Maximum offering price per share (100/96.00 of $13.67)

$ 14.24

Class B:
Net Asset Value and offering price per share ($12,562,798 ÷ 904,541 shares)A

$ 13.89

 

 

 

Class C:
Net Asset Value and offering price per share ($197,091,891 ÷ 14,257,721 shares)A

$ 13.82

 

 

 

Institutional Class:
Net Asset Value, offering price and redemption price per share ($1,300,365,769 ÷ 96,457,261 shares)

$ 13.48

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

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

Semiannual Report

Statement of Operations

 

Six months ended June 30, 2013 (Unaudited)

 

 

 

Investment Income

 

 

Dividends

 

$ 1,148,676

Interest

 

62,000,261

Income from Fidelity Central Funds

 

184,401

Total income

 

63,333,338

 

 

 

Expenses

Management fee

$ 7,644,662

Transfer agent fees

1,843,743

Distribution and service plan fees

1,964,150

Accounting and security lending fees

505,958

Custodian fees and expenses

115,084

Independent trustees' compensation

7,018

Registration fees

173,452

Audit

43,347

Legal

2,204

Miscellaneous

10,824

Total expenses before reductions

12,310,442

Expense reductions

(34,517)

12,275,925

Net investment income (loss)

51,057,413

Realized and Unrealized Gain (Loss)

Net realized gain (loss) on:

Investment securities:

 

 

Unaffiliated issuers

7,641,369

Foreign currency transactions

(214,617)

Total net realized gain (loss)

 

7,426,752

Change in net unrealized appreciation (depreciation) on:

Investment securities

(247,154,286)

Assets and liabilities in foreign currencies

(400,147)

Total change in net unrealized appreciation (depreciation)

 

(247,554,433)

Net gain (loss)

(240,127,681)

Net increase (decrease) in net assets resulting from operations

$ (189,070,268)

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

Semiannual Report

Financial Statements - continued

Statement of Changes in Net Assets

 

Six months ended
June 30, 2013
(Unaudited)

Year ended
December 31,
2012

Increase (Decrease) in Net Assets

 

 

Operations

 

 

Net investment income (loss)

$ 51,057,413

$ 75,826,117

Net realized gain (loss)

7,426,752

41,732,855

Change in net unrealized appreciation (depreciation)

(247,554,433)

165,944,115

Net increase (decrease) in net assets resulting
from operations

(189,070,268)

283,503,087

Distributions to shareholders from net investment income

(46,451,158)

(68,618,291)

Distributions to shareholders from net realized gain

(11,835,432)

(32,538,399)

Total distributions

(58,286,590)

(101,156,690)

Share transactions - net increase (decrease)

67,964,130

900,149,358

Redemption fees

254,860

249,805

Total increase (decrease) in net assets

(179,137,868)

1,082,745,560

 

 

 

Net Assets

Beginning of period

2,227,544,151

1,144,798,591

End of period (including undistributed net investment income of $15,888,589 and undistributed net investment income of $11,282,334, respectively)

$ 2,048,406,283

$ 2,227,544,151

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

Semiannual Report

Financial Highlights - Class A

 

Six months ended
June 30, 2013

Years ended December 31,

 

(Unaudited)

2012

2011

2010

2009

2008

Selected Per-Share Data

 

 

 

 

 

 

Net asset value, beginning of period

$ 15.30

$ 13.55

$ 13.32

$ 12.76

$ 9.51

$ 12.32

Income from Investment Operations

 

 

 

 

 

 

Net investment income (loss) E

  .322

  .668

  .726

  .717

  .950

  .675

Net realized and unrealized gain (loss)

  (1.529)

  1.920

  .256

  .568

  3.126

  (2.793)

Total from investment operations

  (1.207)

  2.588

  .982

  1.285

  4.076

  (2.118)

Distributions from net investment income

  (.289)

  (.603)

  (.698)

  (.670)

  (.814)

  (.664)

Distributions from net realized gain

  (.076)

  (.237)

  (.057)

  (.060)

  (.015)

  (.030)

Total distributions

  (.365)

  (.840)

  (.755)

  (.730)

  (.829)

  (.694)

Redemption fees added to paid in capital E

  .002

  .002

  .003

  .005

  .003

  .002

Net asset value, end of period

$ 13.73

$ 15.30

$ 13.55

$ 13.32

$ 12.76

$ 9.51

Total Return B, C, D

  (8.02)%

  19.54%

  7.59%

  10.28%

  44.11%

  (17.82)%

Ratios to Average Net Assets F, H

 

 

 

 

 

Expenses before reductions

  1.18% A

  1.18%

  1.19%

  1.24%

  1.29%

  1.32%

Expenses net of fee waivers, if any

  1.18% A

  1.18%

  1.18%

  1.20%

  1.20%

  1.20%

Expenses net of all reductions

  1.18% A

  1.18%

  1.18%

  1.20%

  1.20%

  1.20%

Net investment income (loss)

  4.37% A

  4.59%

  5.40%

  5.40%

  8.13%

  5.94%

Supplemental Data

 

 

 

 

 

 

Net assets, end of period (000 omitted)

$ 427,054

$ 480,718

$ 309,900

$ 310,674

$ 167,196

$ 60,543

Portfolio turnover rate G

  153% A

  87%

  133%

  96%

  123%

  57%

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, 2013

Years ended December 31,

 

(Unaudited)

2012

2011

2010

2009

2008

Selected Per-Share Data

 

 

 

 

 

 

Net asset value, beginning of period

$ 15.24

$ 13.50

$ 13.28

$ 12.71

$ 9.48

$ 12.28

Income from Investment Operations

 

 

 

 

 

 

Net investment income (loss) E

  .320

  .662

  .721

  .714

  .924

  .676

Net realized and unrealized gain (loss)

  (1.528)

  1.914

  .249

  .581

  3.132

  (2.784)

Total from investment operations

  (1.208)

  2.576

  .970

  1.295

  4.056

  (2.108)

Distributions from net investment income

  (.288)

  (.601)

  (.696)

  (.670)

  (.814)

  (.664)

Distributions from net realized gain

  (.076)

  (.237)

  (.057)

  (.060)

  (.015)

  (.030)

Total distributions

  (.364)

  (.838)

  (.753)

  (.730)

  (.829)

  (.694)

Redemption fees added to paid in capital E

  .002

  .002

  .003

  .005

  .003

  .002

Net asset value, end of period

$ 13.67

$ 15.24

$ 13.50

$ 13.28

$ 12.71

$ 9.48

Total Return B, C, D

  (8.06)%

  19.51%

  7.52%

  10.41%

  44.04%

  (17.80)%

Ratios to Average Net Assets F, H

 

 

 

 

 

Expenses before reductions

  1.20% A

  1.20%

  1.21%

  1.24%

  1.30%

  1.32%

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

  1.19% A

  1.20%

  1.20%

  1.20%

  1.20%

  1.20%

Net investment income (loss)

  4.35% A

  4.57%

  5.39%

  5.40%

  8.13%

  5.95%

Supplemental Data

 

 

 

 

 

 

Net assets, end of period (000 omitted)

$ 111,331

$ 138,448

$ 104,920

$ 114,786

$ 106,446

$ 87,427

Portfolio turnover rate G

  153% A

  87%

  133%

  96%

  123%

  57%

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, 2013

Years ended December 31,

 

(Unaudited)

2012

2011

2010

2009

2008

Selected Per-Share Data

 

 

 

 

 

 

Net asset value, beginning of period

$ 15.47

$ 13.69

$ 13.46

$ 12.88

$ 9.60

$ 12.42

Income from Investment Operations

 

 

 

 

 

 

Net investment income (loss) E

  .273

  .569

  .639

  .637

  .861

  .609

Net realized and unrealized gain (loss)

  (1.544)

  1.944

  .248

  .580

  3.169

  (2.812)

Total from investment operations

  (1.271)

  2.513

  .887

  1.217

  4.030

  (2.203)

Distributions from net investment income

  (.235)

  (.498)

  (.603)

  (.582)

  (.738)

  (.589)

Distributions from net realized gain

  (.076)

  (.237)

  (.057)

  (.060)

  (.015)

  (.030)

Total distributions

  (.311)

  (.735)

  (.660)

  (.642)

  (.753)

  (.619)

Redemption fees added to paid in capital E

  .002

  .002

  .003

  .005

  .003

  .002

Net asset value, end of period

$ 13.89

$ 15.47

$ 13.69

$ 13.46

$ 12.88

$ 9.60

Total Return B, C, D

  (8.33)%

  18.71%

  6.77%

  9.63%

  43.08%

  (18.29)%

Ratios to Average Net Assets F, H

 

 

 

 

 

Expenses before reductions

  1.91% A

  1.89%

  1.90%

  1.93%

  1.97%

  1.97%

Expenses net of fee waivers, if any

  1.90% A

  1.89%

  1.87%

  1.85%

  1.85%

  1.85%

Expenses net of all reductions

  1.90% A

  1.89%

  1.87%

  1.85%

  1.85%

  1.85%

Net investment income (loss)

  3.65% A

  3.87%

  4.71%

  4.75%

  7.48%

  5.30%

Supplemental Data

 

 

 

 

 

 

Net assets, end of period (000 omitted)

$ 12,563

$ 18,474

$ 18,427

$ 21,843

$ 18,398

$ 14,324

Portfolio turnover rate G

  153% A

  87%

  133%

  96%

  123%

  57%

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, 2013

Years ended December 31,

 

(Unaudited)

2012

2011

2010

2009

2008

Selected Per-Share Data

 

 

 

 

 

 

Net asset value, beginning of period

$ 15.40

$ 13.64

$ 13.40

$ 12.83

$ 9.56

$ 12.37

Income from Investment Operations

 

 

 

 

 

 

Net investment income (loss) E

  .268

  .564

  .630

  .622

  .867

  .594

Net realized and unrealized gain (loss)

  (1.541)

  1.925

  .262

  .572

  3.142

  (2.798)

Total from investment operations

  (1.273)

  2.489

  .892

  1.194

  4.009

  (2.204)

Distributions from net investment income

  (.233)

  (.494)

  (.598)

  (.569)

  (.727)

  (.578)

Distributions from net realized gain

  (.076)

  (.237)

  (.057)

  (.060)

  (.015)

  (.030)

Total distributions

  (.309)

  (.731)

  (.655)

  (.629)

  (.742)

  (.608)

Redemption fees added to paid in capital E

  .002

  .002

  .003

  .005

  .003

  .002

Net asset value, end of period

$ 13.82

$ 15.40

$ 13.64

$ 13.40

$ 12.83

$ 9.56

Total Return B, C, D

  (8.38)%

  18.59%

  6.83%

  9.48%

  43.02%

  (18.37)%

Ratios to Average Net Assets F, H

 

 

 

 

 

Expenses before reductions

  1.93% A

  1.92%

  1.93%

  1.96%

  2.02%

  2.06%

Expenses net of fee waivers, if any

  1.93% A

  1.92%

  1.92%

  1.95%

  1.95%

  1.95%

Expenses net of all reductions

  1.93% A

  1.92%

  1.92%

  1.95%

  1.95%

  1.95%

Net investment income (loss)

  3.62% A

  3.84%

  4.66%

  4.65%

  7.38%

  5.20%

Supplemental Data

 

 

 

 

 

 

Net assets, end of period (000 omitted)

$ 197,092

$ 213,626

$ 126,005

$ 124,907

$ 63,669

$ 22,464

Portfolio turnover rate G

  153% A

  87%

  133%

  96%

  123%

  57%

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, 2013

Years ended December 31,

 

(Unaudited)

2012

2011

2010

2009

2008

Selected Per-Share Data

 

 

 

 

 

Net asset value, beginning of period

$ 15.03

$ 13.33

$ 13.12

$ 12.57

$ 9.39

$ 12.16

Income from Investment
Operations

 

 

 

 

 

Net investment income (loss) D

  .337

  .701

  .753

  .743

  .990

  .695

Net realized and unrealized gain (loss)

  (1.503)

  1.881

  .249

  .568

  3.044

  (2.745)

Total from investment operations

  (1.166)

  2.582

  1.002

  1.311

  4.034

  (2.050)

Distributions from net investment income

  (.310)

  (.647)

  (.738)

  (.706)

  (.842)

  (.692)

Distributions from net realized gain

  (.076)

  (.237)

  (.057)

  (.060)

  (.015)

  (.030)

Total distributions

  (.386)

  (.884)

  (.795)

  (.766)

  (.857)

  (.722)

Redemption fees added to paid in capital D

  .002

  .002

  .003

  .005

  .003

  .002

Net asset value, end of period

$ 13.48

$ 15.03

$ 13.33

$ 13.12

$ 12.57

$ 9.39

Total Return B, C

  (7.90)%

  19.84%

  7.88%

  10.67%

  44.29%

  (17.52)%

Ratios to Average Net Assets E, G

 

 

 

 

 

Expenses before reductions

  .89% A

  .89%

  .89%

  .92%

  .97%

  1.02%

Expenses net of fee waivers, if any

  .89% A

  .89%

  .89%

  .92%

  .95%

  .95%

Expenses net of all reductions

  .89% A

  .89%

  .89%

  .92%

  .95%

  .95%

Net investment income (loss)

  4.66% A

  4.88%

  5.70%

  5.68%

  8.38%

  6.19%

Supplemental Data

 

 

 

 

 

 

Net assets, end of period (000 omitted)

$ 1,300,366

$ 1,376,278

$ 585,546

$ 489,838

$ 204,663

$ 32,947

Portfolio turnover rate F

  153% A

  87%

  133%

  96%

  123%

  57%

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, 2013 (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. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. 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.

2. Investments in Fidelity Central Funds.

The Fund invests in Fidelity Central Funds, which are open-end investment companies generally 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) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.

3. Significant Accounting Policies.

The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (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:

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

3. Significant Accounting Policies - continued

Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the FMR Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment 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 Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.

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)

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 third party pricing vendors or from brokers who make markets in such securities. For corporate bonds, foreign government and government agency obligations, preferred securities and U.S. government and government agency obligations, pricing vendors utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances. 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.

Semiannual Report

3. Significant Accounting Policies - continued

Investment Valuation - continued

Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2.

ETFs are valued at their last sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day but the exchange reports a closing bid level, ETFs are valued at the closing bid and would be categorized as Level 1 in the hierarchy. In the event there was no closing bid, ETFs may be valued by another method that the Board believes reflects fair value in accordance with the Board's fair value pricing policies and may be categorized as Level 2 in the hierarchy.

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

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, 2013, is included at the end of the Fund's Schedule of Investments.

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 rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

3. Significant Accounting Policies - continued

Foreign Currency - continued

The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.

Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV 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. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. 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.

Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, 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. 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 under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's federal

Semiannual Report

3. Significant Accounting Policies - continued

Income Tax Information and Distributions to Shareholders - continued

income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. 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, market discount and losses deferred due to wash sales and excise tax regulations.

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

Gross unrealized appreciation

$ 58,570,303

Gross unrealized depreciation

(81,447,421)

Net unrealized appreciation (depreciation) on securities and other investments

$ (22,877,118)

 

 

Tax cost

$ 2,096,288,546

Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days may have been 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.

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.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

4. Purchases and Sales of Investments.

Purchases and sales of securities, other than short-term securities and U.S. government securities, aggregated $1,360,799,055 and $1,258,124,997, respectively.

5. 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 an annualized 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 .66% 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%

$ 611,366

$ 34,188

Class T

-%

.25%

168,106

2,224

Class B

.65%

.25%

74,715

54,756

Class C

.75%

.25%

1,109,963

376,216

 

 

 

$ 1,964,150

$ 467,384

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 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.

Semiannual Report

5. Fees and Other Transactions with Affiliates - continued

Sales Load - continued

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

 

Retained
by FDC

Class A

$ 53,176

Class T

7,113

Class B*

10,766

Class C*

24,174

 

$ 95,229

* 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

$ 443,635

.18

Class T

133,346

.20

Class B

21,279

.26

Class C

197,657

.18

Institutional Class

1,047,826

.15

 

$ 1,843,743

 

* Annualized

Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

5. Fees and Other Transactions with Affiliates - continued

Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $47 for the period.

6. Committed Line of Credit.

The Fund participates with other funds managed by FMR or an affiliate in a $4.25 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 $2,868 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.

7. Security Lending.

The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $68,463. During the period, there were no securities loaned to FCM.

Semiannual Report

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

Class B

1.90%

$ 914

Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $32,280 for the period. 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 $1,323.

9. Distributions to Shareholders.

Distributions to shareholders of each class were as follows:

Six months ended
June 30, 2013

Year ended
December 31, 2012

From net investment income

 

 

Class A

$ 9,495,884

$ 15,676,894

Class T

2,610,152

4,950,246

Class B

258,698

627,179

Class C

3,446,796

5,515,543

Institutional Class

30,639,628

41,848,429

Total

$ 46,451,158

$ 68,618,291

From net realized gain

 

 

Class A

$ 2,512,182

$ 7,100,049

Class T

702,231

2,083,077

Class B

88,733

287,116

Class C

1,127,536

3,097,150

Institutional Class

7,404,750

19,971,007

Total

$ 11,835,432

$ 32,538,399

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

10. Share Transactions.

Transactions for each class of shares were as follows:

 

Shares

Dollars

Six months ended
June 30, 2013

Year ended
December 31, 2012

Six months ended
June 30, 2013

Year ended
December 31, 2012

Class A

 

 

 

 

Shares sold

7,347,695

15,721,662

$ 110,168,212

$ 229,826,711

Reinvestment of distributions

662,324

1,278,849

9,781,287

18,882,099

Shares redeemed

(8,320,517)

(8,453,919)

(121,576,756)

(121,945,548)

Net increase (decrease)

(310,498)

8,546,592

$ (1,627,257)

$ 126,763,262

Class T

 

 

 

 

Shares sold

988,743

2,530,723

$ 14,790,538

$ 36,981,180

Reinvestment of distributions

196,581

417,765

2,893,742

6,134,738

Shares redeemed

(2,127,094)

(1,636,381)

(30,752,881)

(23,728,350)

Net increase (decrease)

(941,770)

1,312,107

$ (13,068,601)

$ 19,387,568

Class B

 

 

 

 

Shares sold

57,209

151,696

$ 873,935

$ 2,257,860

Reinvestment of distributions

17,619

47,756

264,005

709,757

Shares redeemed

(364,094)

(351,266)

(5,388,361)

(5,157,858)

Net increase (decrease)

(289,266)

(151,814)

$ (4,250,421)

$ (2,190,241)

Class C

 

 

 

 

Shares sold

2,850,626

6,029,109

$ 43,203,114

$ 88,924,313

Reinvestment of distributions

251,732

469,415

3,745,788

6,993,519

Shares redeemed

(2,712,830)

(1,871,523)

(39,937,749)

(27,496,355)

Net increase (decrease)

389,528

4,627,001

$ 7,011,153

$ 68,421,477

Institutional Class

 

 

 

 

Shares sold

26,320,541

60,775,199

$ 386,541,336

$ 876,715,975

Reinvestment of distributions

1,428,296

2,225,793

20,705,470

32,473,671

Shares redeemed

(22,844,690)

(15,386,068)

(327,347,550)

(221,422,354)

Net increase (decrease)

4,904,147

47,614,924

$ 79,899,256

$ 687,767,292

Semiannual Report

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 investment 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 the 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.

Fidelity Management & Research
(Hong Kong) Limited

Fidelity Management & Research
(Japan) Inc.

FIL Investments (Japan) Limited

FIL Investment Advisors

FIL Investment Advisors (UK) Limited

General Distributor

Fidelity Distributors Corporation

Smithfield, RI

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

(Fidelity Investment logo)(registered trademark)

EMI-USAN-0813
1.787773.110

(Fidelity Investment logo)(registered trademark)
Fidelity Advisor®

Emerging Markets Income
Fund - Institutional Class

Semiannual Report

June 30, 2013

(Fidelity Cover Art)

Contents

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. © 2013 FMR LLC. All rights reserved.

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

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, 2013 to June 30, 2013).

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 RatioB

Beginning
Account Value
January 1, 2013

Ending
Account Value
June 30, 2013

Expenses Paid
During Period*
January 1, 2013
to June 30, 2013

Class A

1.18%

 

 

 

Actual

 

$ 1,000.00

$ 919.80

$ 5.62

HypotheticalA

 

$ 1,000.00

$ 1,018.94

$ 5.91

Class T

1.20%

 

 

 

Actual

 

$ 1,000.00

$ 919.40

$ 5.71

HypotheticalA

 

$ 1,000.00

$ 1,018.84

$ 6.01

Class B

1.90%

 

 

 

Actual

 

$ 1,000.00

$ 916.70

$ 9.03

HypotheticalA

 

$ 1,000.00

$ 1,015.37

$ 9.49

Class C

1.93%

 

 

 

Actual

 

$ 1,000.00

$ 916.20

$ 9.17

HypotheticalA

 

$ 1,000.00

$ 1,015.22

$ 9.64

Institutional Class

.89%

 

 

 

Actual

 

$ 1,000.00

$ 921.00

$ 4.24

HypotheticalA

 

$ 1,000.00

$ 1,020.38

$ 4.46

A 5% return per year before expenses

B Annualized expense ratio reflects expenses net of applicable fee waivers.

* 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, 2013

(excluding cash equivalents)

% of fund's
net assets

% of fund's net assets
6 months ago

Venezuela

10.9

13.2

Mexico

7.6

6.6

Russia

5.8

5.0

Netherlands

5.1

3.3

Indonesia

4.6

3.6

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

Top Five Holdings as of June 30, 2013

(by issuer, excluding cash equivalents)

% of fund's
net assets

% of fund's net assets
6 months ago

Petroleos de Venezuela SA

6.5

6.1

Russian Federation

5.5

4.8

Petroleos Mexicanos

4.4

2.4

Venezuelan Republic

4.4

7.1

Turkish Republic

3.4

7.6

 

24.2

Asset Allocation (% of fund's net assets)

As of June 30, 2013

As of December 31, 2012

jos471256

Corporate Bonds 36.5%

 

jos471256

Corporate Bonds 28.1%

 

jos471259

Government
Obligations 54.2%

 

jos471259

Government
Obligations 58.1%

 

jos471262

Stocks 0.1%

 

jos471262

Stocks 0.5%

 

jos471265

Preferred Securities 0.4%

 

jos471265

Preferred Securities 0.2%

 

jos471268

Investment
Companies 1.8%

 

jos471268

Investment
Companies 3.3%

 

jos471271

Short-Term
Investments and
Net Other Assets (Liabilities) 7.0%

 

jos471271

Short-Term
Investments and
Net Other Assets (Liabilities) 9.8%

 

jos471293

Semiannual Report

Investments June 30, 2013 (Unaudited)

Showing Percentage of Net Assets

Nonconvertible Bonds - 36.5%

 

Principal Amount (d)

Value

Bahamas (Nassau) - 0.1%

Ultrapetrol (Bahamas) Ltd. 8.875% 6/15/21 (g)

$ 1,495,000

$ 1,495,000

Bailiwick of Jersey - 0.2%

Polyus Gold International Ltd. 5.625% 4/29/20 (g)

4,730,000

4,493,500

Brazil - 0.8%

Banco Nacional de Desenvolvimento Economico e Social 6.5% 6/10/19 (g)

7,295,000

7,951,550

Brasil Foods SA 7.75% 5/22/18 (g)

BRL

5,035,000

1,951,857

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

6,980,000

7,294,100

TOTAL BRAZIL

17,197,507

British Virgin Islands - 0.3%

Arcos Dorados Holdings, Inc. 10.25% 7/13/16 (g)

BRL

4,795,000

2,154,296

Magnesita Finance Ltd. 8.625% (g)(h)

5,000,000

4,950,000

TOTAL BRITISH VIRGIN ISLANDS

7,104,296

Canada - 0.3%

Pacific Rubiales Energy Corp. 7.25% 12/12/21 (g)

6,290,000

6,667,400

Cayman Islands - 3.2%

AES Andres Dominicana Ltd./Itabo Dominicana Ltd. 9.5% 11/12/20 (g)

2,400,000

2,532,000

Hutchison Whampoa International 10 Ltd. 6% (g)(h)(i)

18,160,000

18,886,400

Odebrecht Finance Ltd. 7.5% (g)(h)

11,871,000

11,752,290

Petrobras International Finance Co. Ltd.:

5.375% 1/27/21

5,595,000

5,621,263

5.75% 1/20/20

3,075,000

3,199,162

6.75% 1/27/41

12,655,000

12,598,053

8.375% 12/10/18

9,781,000

11,573,368

TOTAL CAYMAN ISLANDS

66,162,536

Chile - 0.3%

Empresa Nacional de Petroleo 5.25% 8/10/20 (Reg. S)

5,440,000

5,517,515

Costa Rica - 0.1%

Instituto Costarricense de Electricidad 6.95% 11/10/21 (g)

2,189,000

2,298,450

Georgia - 1.0%

Georgia Bank Joint Stock Co. 7.75% 7/5/17 (g)

10,765,000

11,195,600

Georgian Oil & Gas Corp. 6.875% 5/16/17 (g)

6,265,000

6,233,675

JSC Georgian Railway 7.75% 7/11/22 (g)

2,385,000

2,575,800

TOTAL GEORGIA

20,005,075

Nonconvertible Bonds - continued

 

Principal Amount (d)

Value

Hungary - 0.1%

Magyar Export-Import Bank 5.5% 2/12/18 (g)

$ 1,895,000

$ 1,871,313

Indonesia - 1.6%

Indonesia Eximbank 3.75% 4/26/17 (Reg. S)

4,110,000

4,048,350

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

3,355,000

3,522,750

PT Pertamina Persero:

4.3% 5/20/23 (g)

6,275,000

5,773,000

4.875% 5/3/22 (g)

6,390,000

6,118,425

5.25% 5/23/21 (g)

3,890,000

3,851,100

6% 5/3/42 (g)

5,115,000

4,782,525

6.5% 5/27/41 (g)

1,791,000

1,728,315

PT Perusahaan Listrik Negara 5.5% 11/22/21 (Reg. S)

2,120,000

2,077,600

TOTAL INDONESIA

31,902,065

Ireland - 1.7%

CBOM Finance PLC 8.25% 8/5/14

3,460,000

3,577,640

MTS International Funding Ltd. 5% 5/30/23 (g)

2,810,000

2,690,575

RZD Capital Ltd. 5.7% 4/5/22 (Reg. S)

6,110,000

6,323,850

SCF Capital Ltd. 5.375% 10/27/17 (g)

7,930,000

7,692,100

Vnesheconombank Via VEB Finance PLC:

5.45% 11/22/17 (g)

2,110,000

2,196,932

6.025% 7/5/22 (g)

3,660,000

3,765,042

6.8% 11/22/25 (g)

3,330,000

3,558,771

6.902% 7/9/20 (g)

4,760,000

5,224,100

TOTAL IRELAND

35,029,010

Israel - 0.7%

Israel Electric Corp. Ltd.:

5.625% 6/21/18 (g)

3,960,000

4,068,900

6.7% 2/10/17 (g)

9,030,000

9,481,500

TOTAL ISRAEL

13,550,400

Kazakhstan - 1.9%

Development Bank of Kazakhstan JSC 4.125% 12/10/22 (g)

5,045,000

4,439,600

Kazagro National Management Holding JSC 4.625% 5/24/23 (g)

2,105,000

1,926,075

KazMunaiGaz National Co.:

4.4% 4/30/23 (g)

4,970,000

4,567,927

5.75% 4/30/43 (g)

9,940,000

8,777,020

Nonconvertible Bonds - continued

 

Principal Amount (d)

Value

Kazakhstan - continued

KazMunaiGaz Finance Sub BV 7% 5/5/20 (g)

$ 6,370,000

$ 7,198,100

Zhaikmunai International BV 7.125% 11/13/19 (g)

12,320,000

12,320,000

TOTAL KAZAKHSTAN

39,228,722

Luxembourg - 1.8%

Aquarius Investments Luxemburg 8.25% 2/18/16

2,895,000

3,010,800

Cosan Luxembourg SA 9.5% 3/14/18 (g)

BRL

13,290,000

5,665,679

EVRAZ Group SA 6.5% 4/22/20 (g)

3,705,000

3,343,763

Gaz Capital SA (Luxembourg):

6.212% 11/22/16 (Issued by Gazprom OAO for Gaz Capital SA) (g)

2,720,000

2,943,040

9.25% 4/23/19 (g)

2,640,000

3,194,400

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

3,580,000

3,785,850

RSHB Capital SA:

5.298% 12/27/17 (g)

13,435,000

13,686,235

6% 6/3/21 (g)(i)

2,365,000

2,344,188

TOTAL LUXEMBOURG

37,973,955

Mexico - 5.6%

America Movil S.A.B. de CV 6.45% 12/5/22

MXN

262,600,000

19,358,402

Comision Federal de Electricid 4.875% 5/26/21 (g)

2,645,000

2,697,900

Petroleos Mexicanos:

3.5% 1/30/23 (g)

3,500,000

3,228,750

4.875% 1/24/22

18,975,000

19,259,625

5.5% 1/21/21

8,625,000

9,241,688

5.5% 6/27/44

12,245,000

11,051,113

5.5% 6/27/44 (g)

4,550,000

4,101,825

6% 3/5/20

6,015,000

6,646,575

6.5% 6/2/41

8,935,000

9,225,388

6.625% (g)(h)

10,485,000

10,668,488

8% 5/3/19

13,730,000

16,750,600

TV Azteca SA de CV 7.5% 5/25/18 (Reg. S)

2,780,000

2,925,950

TOTAL MEXICO

115,156,304

Netherlands - 4.9%

Access Finance BV 7.25% 7/25/17 (g)

4,855,000

4,782,175

Bulgaria Steel Finance BV 12% 5/4/49 unit (c)

EUR

600,000

7,810

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

3,335,000

3,518,425

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

3,904,000

4,196,800

Nonconvertible Bonds - continued

 

Principal Amount (d)

Value

Netherlands - continued

Kazakhstan Temir Zholy Finance BV:

6.375% 10/6/20 (g)

$ 2,445,000

$ 2,658,938

6.95% 7/10/42 (g)

2,440,000

2,479,772

KazMunaiGaz Finance Sub BV:

6.375% 4/9/21 (g)

5,615,000

6,064,200

9.125% 7/2/18 (g)

5,865,000

7,008,675

11.75% 1/23/15 (g)

11,065,000

12,531,113

Majapahit Holding BV:

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

1,930,000

2,123,000

7.75% 1/20/20 (g)

4,750,000

5,272,500

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

2,065,000

2,395,400

8% 8/7/19 (g)

3,865,000

4,348,125

Petrobras Global Finance BV:

2.4141% 1/15/19 (i)

33,620,000

32,745,880

4.375% 5/20/23

3,815,000

3,477,754

VimpelCom Holdings BV:

5.2% 2/13/19 (g)

4,400,000

4,268,000

9% 2/13/18 (g)

RUB

106,100,000

3,204,999

TOTAL NETHERLANDS

101,083,566

Paraguay - 0.2%

Telefonica Celular del Paraguay SA 6.75% 12/13/22 (g)

3,140,000

3,234,200

Peru - 0.5%

Alicorp SA 3.875% 3/20/23 (g)

2,435,000

2,252,375

Corporacion Azucarera del Peru SA 6.375% 8/2/22 (g)

2,530,000

2,466,750

Corporacion Lindley SA 4.625% 4/12/23 (g)

1,985,000

1,855,975

Gas Nat de Lima Y Callao SA 4.375% 4/1/23 (g)

2,445,000

2,212,725

Transportadora de Gas Del Peru 4.25% 4/30/28 (g)

2,480,000

2,219,600

TOTAL PERU

11,007,425

Philippines - 0.5%

Power Sector Assets and Liabilities Management Corp.:

7.25% 5/27/19 (g)

3,751,000

4,444,935

7.39% 12/2/24 (g)

4,300,000

5,203,000

TOTAL PHILIPPINES

9,647,935

Russia - 0.3%

Far Eastern Shipping Co. 8% 5/2/18 (g)

3,745,000

3,398,588

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

2,620,000

3,078,500

TOTAL RUSSIA

6,477,088

Nonconvertible Bonds - continued

 

Principal Amount (d)

Value

South Africa - 0.4%

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

$ 7,480,000

$ 7,405,200

Sri Lanka - 0.3%

Bank of Ceylon 6.875% 5/3/17 (g)

5,195,000

5,337,863

Trinidad & Tobago - 0.4%

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

5,830,000

7,258,350

Turkey - 0.4%

Anadolu Efes Biracilik Ve Malt Sanayii A/S 3.375% 11/1/22 (g)

1,310,000

1,159,350

Arcelik A/S 5% 4/3/23 (g)

8,585,000

7,726,500

TOTAL TURKEY

8,885,850

Ukraine - 0.2%

Ukraine Financing of Infrastructure Projects State Enterprise 9% 12/7/17 (g)

3,610,000

3,357,300

United Kingdom - 0.6%

Afren PLC 11.5% 2/1/16 (g)

1,520,000

1,672,000

Biz Finance PLC:

8.375% 4/27/15 (Reg. S)

2,505,000

2,423,588

8.75% 1/22/18 (State Export-Import Bank of Ukraine JSC for Biz Finance PLC)(Reg. S)

2,430,000

2,162,700

JSC Oschadbank 8.25% 3/10/16 (Issued by SSB #1 PLC for JSC Oschadbank)

3,260,000

3,048,100

Shortline PLC 9.5% 5/21/18 (g)

2,510,000

2,290,375

TOTAL UNITED KINGDOM

11,596,763

United States of America - 1.6%

Pemex Project Funding Master Trust:

5.75% 3/1/18

1,310,000

1,444,275

6.625% 6/15/35

13,665,000

14,484,900

6.625% 6/15/38

1,905,000

1,995,488

8.625% 2/1/22

8,763,000

10,406,063

Severstal Columbus LLC 10.25% 2/15/18

3,725,000

3,939,188

TOTAL UNITED STATES OF AMERICA

32,269,914

Venezuela - 6.5%

Petroleos de Venezuela SA:

4.9% 10/28/14

36,660,000

34,277,100

5.25% 4/12/17

10,900,000

8,758,150

5.375% 4/12/27

12,040,000

7,224,000

5.5% 4/12/37

6,215,000

3,589,163

Nonconvertible Bonds - continued

 

Principal Amount (d)

Value

Venezuela - continued

Petroleos de Venezuela SA: - continued

8.5% 11/2/17 (g)

$ 64,935,000

$ 59,090,850

9% 11/17/21 (Reg. S)

13,550,000

11,382,000

9.75% 5/17/35 (g)

7,205,000

5,691,950

12.75% 2/17/22 (g)

3,320,000

3,344,900

TOTAL VENEZUELA

133,358,113

TOTAL NONCONVERTIBLE BONDS

(Cost $766,704,158)


746,572,615

Government Obligations - 55.3%

 

Argentina - 0.3%

Argentine Republic:

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

3,669,351

2,054,836

2.5% 12/31/38 (e)

3,965,000

1,278,713

7% 10/3/15

2,645,000

2,241,638

8.75% 6/2/17

1,595,000

1,208,213

TOTAL ARGENTINA

6,783,400

Aruba - 0.3%

Aruba Government 4.625% 9/14/23 (g)

5,970,000

5,611,800

Azerbaijan - 0.3%

State Oil Co. of Azerbaijan Republic:

4.75% 3/13/23 (Reg. S)

3,710,000

3,357,550

5.45% 2/9/17 (Reg. S)

3,600,000

3,708,000

TOTAL AZERBAIJAN

7,065,550

Bahamas (Nassau) - 0.3%

Bahamian Republic 6.95% 11/20/29 (g)

4,635,000

5,330,250

Barbados - 0.5%

Barbados Government:

7% 8/4/22 (g)

5,982,000

5,982,000

7.25% 12/15/21 (g)

3,982,000

4,021,820

TOTAL BARBADOS

10,003,820

Government Obligations - continued

 

Principal
Amount (d)

Value

Belarus - 1.3%

Belarus Republic:

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

$ 19,070,000

$ 18,974,650

8.95% 1/26/18

8,510,000

8,488,725

TOTAL BELARUS

27,463,375

Belize - 0.1%

Belize Government 5% 2/20/38 (e)(g)

3,696,600

2,217,960

Bermuda - 0.6%

Bermuda Government:

4.138% 1/3/23 (g)

4,840,000

4,682,700

5.603% 7/20/20 (g)

6,303,000

6,759,968

TOTAL BERMUDA

11,442,668

Bolivia - 0.1%

Plurinational State of Bolivia 4.875% 10/29/22 (g)

2,070,000

1,914,750

Brazil - 1.6%

Brazilian Federative Republic:

5.625% 1/7/41

2,505,000

2,486,213

8.25% 1/20/34

3,730,000

4,942,250

10.125% 5/15/27

7,760,000

12,086,200

12.25% 3/6/30

7,340,000

12,569,750

TOTAL BRAZIL

32,084,413

Cayman Islands - 0.3%

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

5,530,000

6,083,000

Colombia - 1.1%

Colombian Republic:

4.375% 7/12/21

5,220,000

5,415,750

6.125% 1/18/41

1,940,000

2,153,400

7.375% 9/18/37

4,410,000

5,578,650

8.125% 5/21/24

2,130,000

2,769,000

11.75% 2/25/20

4,793,000

7,057,693

TOTAL COLOMBIA

22,974,493

Congo - 0.9%

Congo Republic 3% 6/30/29 (e)

20,526,688

17,447,685

Costa Rica - 0.7%

Costa Rican Republic:

(Reg.S) 8.28% 3/19/14

CRC

1,829,180,000

3,725,160

4.25% 1/26/23 (g)

5,520,000

5,064,600

Government Obligations - continued

 

Principal Amount (d)

Value

Costa Rica - continued

Costa Rican Republic: - continued

4.375% 4/30/25 (g)

$ 2,850,000

$ 2,607,750

5.625% 4/30/43 (g)

2,355,000

2,166,600

TOTAL COSTA RICA

13,564,110

Croatia - 1.4%

Croatia Republic:

5.5% 4/4/23 (g)

6,300,000

6,111,000

6.25% 4/27/17 (g)

13,680,000

14,312,016

6.625% 7/14/20 (g)

7,825,000

8,255,375

TOTAL CROATIA

28,678,391

Dominican Republic - 1.0%

Dominican Republic:

5.875% 4/18/24 (g)

12,210,000

11,782,650

7.5% 5/6/21 (g)

3,185,000

3,423,875

9.04% 1/23/18 (g)

4,153,312

4,506,344

TOTAL DOMINICAN REPUBLIC

19,712,869

Ecuador - 0.2%

Ecuador Republic 9.375% 12/15/15 (g)

3,135,000

3,229,050

Georgia - 0.2%

Georgia Republic 6.875% 4/12/21 (g)

3,440,000

3,680,800

Guatemala - 0.3%

Guatemalan Republic:

4.875% 2/13/28 (g)

2,905,000

2,614,500

5.75% 6/6/22 (g)

4,230,000

4,230,000

TOTAL GUATEMALA

6,844,500

Honduras - 0.1%

Republic of Honduras 7.5% 3/15/24 (g)

2,920,000

2,569,600

Hungary - 1.8%

Hungarian Republic:

4.125% 2/19/18

5,209,000

5,059,241

4.75% 2/3/15

5,630,000

5,714,450

5.375% 2/21/23

6,578,000

6,331,325

6.25% 1/29/20

5,224,000

5,459,080

6.375% 3/29/21

8,479,000

8,818,160

7.625% 3/29/41

5,828,000

6,084,432

TOTAL HUNGARY

37,466,688

Government Obligations - continued

 

Principal Amount (d)

Value

Iceland - 0.8%

Republic of Iceland:

4.875% 6/16/16 (g)

$ 5,520,000

$ 5,727,000

5.875% 5/11/22 (g)

10,605,000

11,294,325

TOTAL ICELAND

17,021,325

Indonesia - 3.0%

Indonesian Republic:

3.375% 4/15/23 (g)

7,445,000

6,644,663

3.75% 4/25/22 (g)

4,550,000

4,220,125

4.875% 5/5/21 (g)

13,510,000

13,847,750

5.875% 3/13/20 (g)

8,000,000

8,620,000

6.875% 1/17/18 (g)

3,275,000

3,676,188

7.75% 1/17/38 (g)

2,950,000

3,643,250

8.5% 10/12/35 (g)

6,355,000

8,325,050

11.625% 3/4/19 (g)

8,745,000

11,893,200

TOTAL INDONESIA

60,870,226

Iraq - 0.7%

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

17,660,000

14,481,200

Israel - 0.2%

Israeli State 4.5% 1/30/43

5,190,000

4,606,125

Ivory Coast - 0.7%

Ivory Coast 7.1% 12/31/32 (e)

16,565,000

13,666,125

Jamaica - 0.2%

Jamaican Government:

8% 6/24/19

3,035,000

2,913,600

8% 3/15/39

2,325,000

2,046,000

TOTAL JAMAICA

4,959,600

Jordan - 0.3%

Jordanian Kingdom 3.875% 11/12/15

6,885,000

6,764,513

Latvia - 0.4%

Latvian Republic:

2.75% 1/12/20 (g)

6,015,000

5,571,695

5.25% 6/16/21 (g)

3,300,000

3,506,250

TOTAL LATVIA

9,077,945

Lebanon - 2.7%

Lebanese Republic:

4% 12/31/17

3,834,000

3,718,980

Government Obligations - continued

 

Principal
Amount (d)

Value

Lebanon - continued

Lebanese Republic: - continued

4.9947% to 5.3554% 8/29/13 to 3/20/14

LBP

21,925,905,000

$ 14,052,777

5.15% 11/12/18

2,345,000

2,239,475

5.45% 11/28/19

15,630,000

14,223,300

6.1% 10/4/22

5,460,000

5,200,650

8.25% 4/12/21 (Reg.S)

2,155,000

2,316,625

8.5% 8/6/15

1,745,000

1,854,063

8.5% 1/19/16 (Reg. S)

2,760,000

2,939,400

9% 3/20/17

2,535,000

2,772,783

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

4,345,000

5,083,650

TOTAL LEBANON

54,401,703

Lithuania - 1.0%

Lithuanian Republic:

6.125% 3/9/21 (g)

4,510,000

5,026,666

6.625% 2/1/22 (g)

5,960,000

6,839,100

7.375% 2/11/20 (g)

7,950,000

9,440,625

TOTAL LITHUANIA

21,306,391

Mexico - 2.0%

United Mexican States:

4.75% 3/8/44

5,842,000

5,287,010

5.125% 1/15/20

5,102,000

5,624,955

5.95% 3/19/19

5,734,000

6,562,563

6.05% 1/11/40

5,246,000

5,770,600

6.75% 9/27/34

6,585,000

7,803,225

8.3% 8/15/31

2,330,000

3,192,100

11.5% 5/15/26

3,595,000

5,904,788

TOTAL MEXICO

40,145,241

Morocco - 0.3%

Moroccan Kingdom:

4.25% 12/11/22 (g)

3,665,000

3,243,525

5.5% 12/11/42 (g)

2,725,000

2,275,375

TOTAL MOROCCO

5,518,900

Namibia - 0.1%

Republic of Namibia 5.5% 11/3/21 (g)

2,512,000

2,523,731

Netherlands - 0.2%

Republic of Angola 7% 8/16/19 (Issued by Northern Lights III BV for Republic of Angola) (Reg. S)

3,215,000

3,303,413

Government Obligations - continued

 

Principal
Amount (d)

Value

Nigeria - 0.6%

Republic of Nigeria:

4% 4/23/15

NGN

232,165,000

$ 1,205,321

6.75% 1/28/21 (g)

1,595,000

1,666,775

10.65% to 12.65% 1/9/14 to 2/6/14

NGN

1,638,945,000

9,337,179

TOTAL NIGERIA

12,209,275

Panama - 0.7%

Panamanian Republic:

4.3% 4/29/53

6,285,000

4,980,863

7.125% 1/29/26

2,870,000

3,508,575

8.875% 9/30/27

3,969,000

5,477,220

TOTAL PANAMA

13,966,658

Peru - 1.0%

Peruvian Republic:

7.35% 7/21/25

6,340,000

8,020,100

8.75% 11/21/33

9,245,000

13,405,250

TOTAL PERU

21,425,350

Philippines - 2.4%

Philippine Republic:

5.5% 3/30/26

3,640,000

4,149,600

6.375% 10/23/34

1,320,000

1,577,400

7.75% 1/14/31

8,055,000

10,552,050

9.5% 2/2/30

8,210,000

12,273,950

10.625% 3/16/25

13,615,000

21,511,700

TOTAL PHILIPPINES

50,064,700

Poland - 0.8%

Polish Government:

3% 3/17/23

7,760,000

7,022,800

5% 3/23/22

8,755,000

9,411,625

TOTAL POLAND

16,434,425

Romania - 0.8%

Romanian Republic:

4.375% 8/22/23 (g)

6,030,000

5,683,275

6.75% 2/7/22 (g)

9,490,000

10,605,075

TOTAL ROMANIA

16,288,350

Government Obligations - continued

 

Principal Amount (d)

Value

Russia - 5.5%

Russian Federation:

5.625% 4/4/42 (g)

$ 9,865,000

$ 10,234,938

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

56,322,000

65,755,912

11% 7/24/18 (Reg. S)

7,005,000

9,596,850

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

16,049,000

28,085,750

TOTAL RUSSIA

113,673,450

Senegal - 0.1%

Republic of Senegal 8.75% 5/13/21 (g)

2,725,000

2,834,000

Serbia - 1.5%

Republic of Serbia:

4.875% 2/25/20 (g)

4,845,000

4,457,400

5.25% 11/21/17 (g)

7,835,000

7,639,125

6.75% 11/1/24 (g)

13,487,523

13,352,647

7.25% 9/28/21 (g)

5,495,000

5,646,113

TOTAL SERBIA

31,095,285

Slovakia - 0.3%

Slovakia Republic 4.375% 5/21/22 (g)

5,145,000

5,273,625

Slovenia - 2.4%

Republic of Slovenia:

4.75% 5/10/18 (g)

3,645,000

3,453,638

5.5% 10/26/22 (g)

34,280,000

31,366,200

5.85% 5/10/23 (g)

15,375,000

14,183,438

TOTAL SLOVENIA

49,003,276

Sri Lanka - 0.7%

Democratic Socialist Republic of Sri Lanka:

5.875% 7/25/22 (g)

4,195,000

3,943,300

6.25% 10/4/20 (g)

5,160,000

5,056,800

6.25% 7/27/21 (g)

3,625,000

3,552,500

7.4% 1/22/15 (g)

1,810,000

1,900,500

TOTAL SRI LANKA

14,453,100

Tanzania - 0.2%

Tanzania United Republic of 6.4499% 3/8/20 (i)

4,160,000

4,180,800

Turkey - 3.4%

Turkish Republic:

5.125% 3/25/22

3,605,000

3,704,138

5.625% 3/30/21

7,860,000

8,410,200

6.25% 9/26/22

7,575,000

8,389,313

Government Obligations - continued

 

Principal Amount (d)

Value

Turkey - continued

Turkish Republic: - continued

6.75% 4/3/18

$ 3,930,000

$ 4,421,250

6.75% 5/30/40

3,995,000

4,444,438

6.875% 3/17/36

6,640,000

7,436,800

7% 6/5/20

7,575,000

8,768,063

7.375% 2/5/25

9,005,000

10,760,975

7.5% 11/7/19

5,240,000

6,183,200

8% 2/14/34

2,185,000

2,742,175

11.875% 1/15/30

2,385,000

4,018,725

TOTAL TURKEY

69,279,277

Ukraine - 3.2%

Ukraine Government:

7.5% 4/17/23 (g)

17,925,000

15,774,000

7.75% 9/23/20 (g)

5,515,000

5,018,650

7.8% 11/28/22 (g)

12,815,000

11,469,425

7.95% 6/4/14 (g)

20,260,000

20,108,050

7.95% 2/23/21 (g)

2,405,000

2,200,575

9.25% 7/24/17 (g)

10,945,000

10,904,504

TOTAL UKRAINE

65,475,204

United States of America - 1.1%

U.S. Treasury Bonds 2.875% 5/15/43

26,455,000

23,445,744

Venezuela - 4.4%

Venezuelan Republic:

oil recovery rights 4/15/20 (j)

113,320

2,917,990

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

7,205,000

6,340,400

6% 12/9/20

5,770,000

4,183,250

7.65% 4/21/25

5,290,000

3,861,700

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

8,615,000

7,085,838

8.25% 10/13/24

10,235,000

7,753,013

8.5% 10/8/14

20,315,000

19,959,488

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

6,630,000

5,469,750

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

7,150,000

5,755,750

9.375% 1/13/34

4,590,000

3,717,900

10.75% 9/19/13

7,670,000

7,650,825

11.75% 10/21/26 (Reg. S)

7,515,000

7,064,100

11.95% 8/5/31 (Reg. S)

6,875,000

6,462,500

12.75% 8/23/22

1,590,000

1,617,825

TOTAL VENEZUELA

89,840,329

Government Obligations - continued

 

Principal Amount (d)

Value

Vietnam - 0.1%

Vietnamese Socialist Republic 6.75% 1/29/20 (g)

$ 1,670,000

$ 1,770,200

Zambia - 0.1%

Republic of Zambia 5.375% 9/20/22 (g)

2,370,000

2,097,450

TOTAL GOVERNMENT OBLIGATIONS

(Cost $1,143,773,720)


1,133,626,108

Common Stocks - 0.1%

Shares

 

Colombia - 0.0%

Ecopetrol SA ADR

16,000

672,960

United Kingdom - 0.1%

Bank of Georgia Holdings PLC

44,500

1,130,294

TOTAL COMMON STOCKS

(Cost $1,822,516)


1,803,254

Investment Companies - 1.8%

 

 

 

 

United States of America - 1.8%

iShares MSCI Brazil Index ETF

232,200

10,184,292

iShares MSCI Emerging Markets Index ETF (f)

678,800

26,181,316

TOTAL INVESTMENT COMPANIES

(Cost $38,518,364)


36,365,608

Preferred Securities - 0.4%

Principal Amount (d)

 

Brazil - 0.4%

Globo Comunicacoes e Participacoes SA 6.25% (e)(g)(h)

$ 7,990,000

8,368,283

China - 0.0%

Sinochem Group 5% (e)(g)(h)

610,000

551,118

TOTAL PREFERRED SECURITIES

(Cost $9,052,896)


8,919,401

Money Market Funds - 7.1%

Shares

Value

Fidelity Cash Central Fund, 0.13% (a)

129,655,142

$ 129,655,142

Fidelity Securities Lending Cash Central Fund, 0.13% (a)(b)

16,469,300

16,469,300

TOTAL MONEY MARKET FUNDS

(Cost $146,124,442)


146,124,442

TOTAL INVESTMENT PORTFOLIO - 101.2%

(Cost $2,105,996,096)

2,073,411,428

NET OTHER ASSETS (LIABILITIES) - (1.2)%

(25,005,145)

NET ASSETS - 100%

$ 2,048,406,283

Currency Abbreviations

BRL

-

Brazilian real

CRC

-

Costa Rican colon

EUR

-

European Monetary Unit

LBP

-

Lebanese pound

MXN

-

Mexican peso

NGN

-

Nigerian naira

RUB

-

Russian ruble

Security Type Abbreviations

ETF

-

Exchange-Traded Fund

Legend

(a) Affiliated fund that is generally 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) Investment made with cash collateral received from securities on loan.

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

(d) Amount is stated in United States dollars unless otherwise noted.

(e) 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.

(f) Security or a portion of the security is on loan at period end.

(g) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $879,667,644 or 42.9% of net assets.

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

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

(j) 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

$ 115,938

Fidelity Securities Lending Cash Central Fund

68,463

Total

$ 184,401

Other Information

Categorizations in the Schedule of Investments are based on country or territory of incorporation.

The following is a summary of the inputs used, as of June 30, 2013, 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 table below, please refer to the Investment 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:

Equities:

Energy

$ 672,960

$ 672,960

$ -

$ -

Financials

1,130,294

1,130,294

-

-

Corporate Bonds

746,572,615

-

746,564,805

7,810

Government Obligations

1,133,626,108

-

1,133,626,108

-

Investment Companies

36,365,608

36,365,608

-

-

Preferred Securities

8,919,401

-

8,919,401

-

Money Market Funds

146,124,442

146,124,442

-

-

Total Investments in Securities:

$ 2,073,411,428

$ 184,293,304

$ 1,889,110,314

$ 7,810

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

1.1%

AAA,AA,A

6.6%

BBB

40.8%

BB

16.0%

B

20.2%

CCC,CC,C

0.4%

Not Rated

5.9%

Equities

2.0%

Short-Term Investments and Net Other Assets

7.0%

 

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.

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

Semiannual Report

Financial Statements

Statement of Assets and Liabilities

 

June 30, 2013 (Unaudited)

 

 

 

Assets

Investment in securities, at value (including securities loaned of $16,154,600) - See accompanying schedule:

Unaffiliated issuers (cost $1,959,871,654)

$ 1,927,286,986

 

Fidelity Central Funds (cost $146,124,442)

146,124,442

 

Total Investments (cost $2,105,996,096)

 

$ 2,073,411,428

Cash

 

28,840,574

Receivable for investments sold

9,079,849

Receivable for fund shares sold

4,369,341

Dividends receivable

637,379

Interest receivable

30,160,952

Distributions receivable from Fidelity Central Funds

20,076

Receivable from investment adviser for expense reductions

439

Other receivables

14,504

Total assets

2,146,534,542

 

 

 

Liabilities

Payable for investments purchased

$ 66,459,847

Payable for fund shares redeemed

10,485,090

Distributions payable

2,715,339

Accrued management fee

1,198,236

Distribution and service plan fees payable

303,036

Other affiliated payables

386,774

Other payables and accrued expenses

110,637

Collateral on securities loaned, at value

16,469,300

Total liabilities

98,128,259

 

 

 

Net Assets

$ 2,048,406,283

Net Assets consist of:

 

Paid in capital

$ 2,060,189,682

Undistributed net investment income

15,888,589

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

5,361,720

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

(33,033,708)

Net Assets

$ 2,048,406,283

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

Semiannual Report

Financial Statements - continued

Statement of Assets and Liabilities - continued

 

June 30, 2013 (Unaudited)

 

 

 

Calculation of Maximum Offering Price

Class A:
Net Asset Value and redemption price per share ($427,054,671 ÷ 31,107,139 shares)

$ 13.73

 

 

 

Maximum offering price per share (100/96.00 of $13.73)

$ 14.30

Class T:
Net Asset Value and redemption price per share ($111,331,154 ÷ 8,142,650 shares)

$ 13.67

 

 

 

Maximum offering price per share (100/96.00 of $13.67)

$ 14.24

Class B:
Net Asset Value and offering price per share ($12,562,798 ÷ 904,541 shares)A

$ 13.89

 

 

 

Class C:
Net Asset Value and offering price per share ($197,091,891 ÷ 14,257,721 shares)A

$ 13.82

 

 

 

Institutional Class:
Net Asset Value, offering price and redemption price per share ($1,300,365,769 ÷ 96,457,261 shares)

$ 13.48

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

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

Semiannual Report

Statement of Operations

 

Six months ended June 30, 2013 (Unaudited)

 

 

 

Investment Income

 

 

Dividends

 

$ 1,148,676

Interest

 

62,000,261

Income from Fidelity Central Funds

 

184,401

Total income

 

63,333,338

 

 

 

Expenses

Management fee

$ 7,644,662

Transfer agent fees

1,843,743

Distribution and service plan fees

1,964,150

Accounting and security lending fees

505,958

Custodian fees and expenses

115,084

Independent trustees' compensation

7,018

Registration fees

173,452

Audit

43,347

Legal

2,204

Miscellaneous

10,824

Total expenses before reductions

12,310,442

Expense reductions

(34,517)

12,275,925

Net investment income (loss)

51,057,413

Realized and Unrealized Gain (Loss)

Net realized gain (loss) on:

Investment securities:

 

 

Unaffiliated issuers

7,641,369

Foreign currency transactions

(214,617)

Total net realized gain (loss)

 

7,426,752

Change in net unrealized appreciation (depreciation) on:

Investment securities

(247,154,286)

Assets and liabilities in foreign currencies

(400,147)

Total change in net unrealized appreciation (depreciation)

 

(247,554,433)

Net gain (loss)

(240,127,681)

Net increase (decrease) in net assets resulting from operations

$ (189,070,268)

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

Semiannual Report

Financial Statements - continued

Statement of Changes in Net Assets

 

Six months ended
June 30, 2013
(Unaudited)

Year ended
December 31,
2012

Increase (Decrease) in Net Assets

 

 

Operations

 

 

Net investment income (loss)

$ 51,057,413

$ 75,826,117

Net realized gain (loss)

7,426,752

41,732,855

Change in net unrealized appreciation (depreciation)

(247,554,433)

165,944,115

Net increase (decrease) in net assets resulting
from operations

(189,070,268)

283,503,087

Distributions to shareholders from net investment income

(46,451,158)

(68,618,291)

Distributions to shareholders from net realized gain

(11,835,432)

(32,538,399)

Total distributions

(58,286,590)

(101,156,690)

Share transactions - net increase (decrease)

67,964,130

900,149,358

Redemption fees

254,860

249,805

Total increase (decrease) in net assets

(179,137,868)

1,082,745,560

 

 

 

Net Assets

Beginning of period

2,227,544,151

1,144,798,591

End of period (including undistributed net investment income of $15,888,589 and undistributed net investment income of $11,282,334, respectively)

$ 2,048,406,283

$ 2,227,544,151

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

Semiannual Report

Financial Highlights - Class A

 

Six months ended
June 30, 2013

Years ended December 31,

 

(Unaudited)

2012

2011

2010

2009

2008

Selected Per-Share Data

 

 

 

 

 

 

Net asset value, beginning of period

$ 15.30

$ 13.55

$ 13.32

$ 12.76

$ 9.51

$ 12.32

Income from Investment Operations

 

 

 

 

 

 

Net investment income (loss) E

  .322

  .668

  .726

  .717

  .950

  .675

Net realized and unrealized gain (loss)

  (1.529)

  1.920

  .256

  .568

  3.126

  (2.793)

Total from investment operations

  (1.207)

  2.588

  .982

  1.285

  4.076

  (2.118)

Distributions from net investment income

  (.289)

  (.603)

  (.698)

  (.670)

  (.814)

  (.664)

Distributions from net realized gain

  (.076)

  (.237)

  (.057)

  (.060)

  (.015)

  (.030)

Total distributions

  (.365)

  (.840)

  (.755)

  (.730)

  (.829)

  (.694)

Redemption fees added to paid in capital E

  .002

  .002

  .003

  .005

  .003

  .002

Net asset value, end of period

$ 13.73

$ 15.30

$ 13.55

$ 13.32

$ 12.76

$ 9.51

Total Return B, C, D

  (8.02)%

  19.54%

  7.59%

  10.28%

  44.11%

  (17.82)%

Ratios to Average Net Assets F, H

 

 

 

 

 

Expenses before reductions

  1.18% A

  1.18%

  1.19%

  1.24%

  1.29%

  1.32%

Expenses net of fee waivers, if any

  1.18% A

  1.18%

  1.18%

  1.20%

  1.20%

  1.20%

Expenses net of all reductions

  1.18% A

  1.18%

  1.18%

  1.20%

  1.20%

  1.20%

Net investment income (loss)

  4.37% A

  4.59%

  5.40%

  5.40%

  8.13%

  5.94%

Supplemental Data

 

 

 

 

 

 

Net assets, end of period (000 omitted)

$ 427,054

$ 480,718

$ 309,900

$ 310,674

$ 167,196

$ 60,543

Portfolio turnover rate G

  153% A

  87%

  133%

  96%

  123%

  57%

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, 2013

Years ended December 31,

 

(Unaudited)

2012

2011

2010

2009

2008

Selected Per-Share Data

 

 

 

 

 

 

Net asset value, beginning of period

$ 15.24

$ 13.50

$ 13.28

$ 12.71

$ 9.48

$ 12.28

Income from Investment Operations

 

 

 

 

 

 

Net investment income (loss) E

  .320

  .662

  .721

  .714

  .924

  .676

Net realized and unrealized gain (loss)

  (1.528)

  1.914

  .249

  .581

  3.132

  (2.784)

Total from investment operations

  (1.208)

  2.576

  .970

  1.295

  4.056

  (2.108)

Distributions from net investment income

  (.288)

  (.601)

  (.696)

  (.670)

  (.814)

  (.664)

Distributions from net realized gain

  (.076)

  (.237)

  (.057)

  (.060)

  (.015)

  (.030)

Total distributions

  (.364)

  (.838)

  (.753)

  (.730)

  (.829)

  (.694)

Redemption fees added to paid in capital E

  .002

  .002

  .003

  .005

  .003

  .002

Net asset value, end of period

$ 13.67

$ 15.24

$ 13.50

$ 13.28

$ 12.71

$ 9.48

Total Return B, C, D

  (8.06)%

  19.51%

  7.52%

  10.41%

  44.04%

  (17.80)%

Ratios to Average Net Assets F, H

 

 

 

 

 

Expenses before reductions

  1.20% A

  1.20%

  1.21%

  1.24%

  1.30%

  1.32%

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

  1.19% A

  1.20%

  1.20%

  1.20%

  1.20%

  1.20%

Net investment income (loss)

  4.35% A

  4.57%

  5.39%

  5.40%

  8.13%

  5.95%

Supplemental Data

 

 

 

 

 

 

Net assets, end of period (000 omitted)

$ 111,331

$ 138,448

$ 104,920

$ 114,786

$ 106,446

$ 87,427

Portfolio turnover rate G

  153% A

  87%

  133%

  96%

  123%

  57%

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, 2013

Years ended December 31,

 

(Unaudited)

2012

2011

2010

2009

2008

Selected Per-Share Data

 

 

 

 

 

 

Net asset value, beginning of period

$ 15.47

$ 13.69

$ 13.46

$ 12.88

$ 9.60

$ 12.42

Income from Investment Operations

 

 

 

 

 

 

Net investment income (loss) E

  .273

  .569

  .639

  .637

  .861

  .609

Net realized and unrealized gain (loss)

  (1.544)

  1.944

  .248

  .580

  3.169

  (2.812)

Total from investment operations

  (1.271)

  2.513

  .887

  1.217

  4.030

  (2.203)

Distributions from net investment income

  (.235)

  (.498)

  (.603)

  (.582)

  (.738)

  (.589)

Distributions from net realized gain

  (.076)

  (.237)

  (.057)

  (.060)

  (.015)

  (.030)

Total distributions

  (.311)

  (.735)

  (.660)

  (.642)

  (.753)

  (.619)

Redemption fees added to paid in capital E

  .002

  .002

  .003

  .005

  .003

  .002

Net asset value, end of period

$ 13.89

$ 15.47

$ 13.69

$ 13.46

$ 12.88

$ 9.60

Total Return B, C, D

  (8.33)%

  18.71%

  6.77%

  9.63%

  43.08%

  (18.29)%

Ratios to Average Net Assets F, H

 

 

 

 

 

Expenses before reductions

  1.91% A

  1.89%

  1.90%

  1.93%

  1.97%

  1.97%

Expenses net of fee waivers, if any

  1.90% A

  1.89%

  1.87%

  1.85%

  1.85%

  1.85%

Expenses net of all reductions

  1.90% A

  1.89%

  1.87%

  1.85%

  1.85%

  1.85%

Net investment income (loss)

  3.65% A

  3.87%

  4.71%

  4.75%

  7.48%

  5.30%

Supplemental Data

 

 

 

 

 

 

Net assets, end of period (000 omitted)

$ 12,563

$ 18,474

$ 18,427

$ 21,843

$ 18,398

$ 14,324

Portfolio turnover rate G

  153% A

  87%

  133%

  96%

  123%

  57%

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, 2013

Years ended December 31,

 

(Unaudited)

2012

2011

2010

2009

2008

Selected Per-Share Data

 

 

 

 

 

 

Net asset value, beginning of period

$ 15.40

$ 13.64

$ 13.40

$ 12.83

$ 9.56

$ 12.37

Income from Investment Operations

 

 

 

 

 

 

Net investment income (loss) E

  .268

  .564

  .630

  .622

  .867

  .594

Net realized and unrealized gain (loss)

  (1.541)

  1.925

  .262

  .572

  3.142

  (2.798)

Total from investment operations

  (1.273)

  2.489

  .892

  1.194

  4.009

  (2.204)

Distributions from net investment income

  (.233)

  (.494)

  (.598)

  (.569)

  (.727)

  (.578)

Distributions from net realized gain

  (.076)

  (.237)

  (.057)

  (.060)

  (.015)

  (.030)

Total distributions

  (.309)

  (.731)

  (.655)

  (.629)

  (.742)

  (.608)

Redemption fees added to paid in capital E

  .002

  .002

  .003

  .005

  .003

  .002

Net asset value, end of period

$ 13.82

$ 15.40

$ 13.64

$ 13.40

$ 12.83

$ 9.56

Total Return B, C, D

  (8.38)%

  18.59%

  6.83%

  9.48%

  43.02%

  (18.37)%

Ratios to Average Net Assets F, H

 

 

 

 

 

Expenses before reductions

  1.93% A

  1.92%

  1.93%

  1.96%

  2.02%

  2.06%

Expenses net of fee waivers, if any

  1.93% A

  1.92%

  1.92%

  1.95%

  1.95%

  1.95%

Expenses net of all reductions

  1.93% A

  1.92%

  1.92%

  1.95%

  1.95%

  1.95%

Net investment income (loss)

  3.62% A

  3.84%

  4.66%

  4.65%

  7.38%

  5.20%

Supplemental Data

 

 

 

 

 

 

Net assets, end of period (000 omitted)

$ 197,092

$ 213,626

$ 126,005

$ 124,907

$ 63,669

$ 22,464

Portfolio turnover rate G

  153% A

  87%

  133%

  96%

  123%

  57%

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, 2013

Years ended December 31,

 

(Unaudited)

2012

2011

2010

2009

2008

Selected Per-Share Data

 

 

 

 

 

Net asset value, beginning of period

$ 15.03

$ 13.33

$ 13.12

$ 12.57

$ 9.39

$ 12.16

Income from Investment
Operations

 

 

 

 

 

Net investment income (loss) D

  .337

  .701

  .753

  .743

  .990

  .695

Net realized and unrealized gain (loss)

  (1.503)

  1.881

  .249

  .568

  3.044

  (2.745)

Total from investment operations

  (1.166)

  2.582

  1.002

  1.311

  4.034

  (2.050)

Distributions from net investment income

  (.310)

  (.647)

  (.738)

  (.706)

  (.842)

  (.692)

Distributions from net realized gain

  (.076)

  (.237)

  (.057)

  (.060)

  (.015)

  (.030)

Total distributions

  (.386)

  (.884)

  (.795)

  (.766)

  (.857)

  (.722)

Redemption fees added to paid in capital D

  .002

  .002

  .003

  .005

  .003

  .002

Net asset value, end of period

$ 13.48

$ 15.03

$ 13.33

$ 13.12

$ 12.57

$ 9.39

Total Return B, C

  (7.90)%

  19.84%

  7.88%

  10.67%

  44.29%

  (17.52)%

Ratios to Average Net Assets E, G

 

 

 

 

 

Expenses before reductions

  .89% A

  .89%

  .89%

  .92%

  .97%

  1.02%

Expenses net of fee waivers, if any

  .89% A

  .89%

  .89%

  .92%

  .95%

  .95%

Expenses net of all reductions

  .89% A

  .89%

  .89%

  .92%

  .95%

  .95%

Net investment income (loss)

  4.66% A

  4.88%

  5.70%

  5.68%

  8.38%

  6.19%

Supplemental Data

 

 

 

 

 

 

Net assets, end of period (000 omitted)

$ 1,300,366

$ 1,376,278

$ 585,546

$ 489,838

$ 204,663

$ 32,947

Portfolio turnover rate F

  153% A

  87%

  133%

  96%

  123%

  57%

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, 2013 (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. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. 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.

2. Investments in Fidelity Central Funds.

The Fund invests in Fidelity Central Funds, which are open-end investment companies generally 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) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.

3. Significant Accounting Policies.

The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (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:

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

3. Significant Accounting Policies - continued

Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the FMR Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment 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 Committee oversees the Fund's valuation policies and procedures and is responsible for approving and reporting to the Board all fair value determinations.

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)

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 third party pricing vendors or from brokers who make markets in such securities. For corporate bonds, foreign government and government agency obligations, preferred securities and U.S. government and government agency obligations, pricing vendors utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances. 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.

Semiannual Report

3. Significant Accounting Policies - continued

Investment Valuation - continued

Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2.

ETFs are valued at their last sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day but the exchange reports a closing bid level, ETFs are valued at the closing bid and would be categorized as Level 1 in the hierarchy. In the event there was no closing bid, ETFs may be valued by another method that the Board believes reflects fair value in accordance with the Board's fair value pricing policies and may be categorized as Level 2 in the hierarchy.

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

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, 2013, is included at the end of the Fund's Schedule of Investments.

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 rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

3. Significant Accounting Policies - continued

Foreign Currency - continued

The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.

Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV 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. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. 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.

Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, 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. 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 under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's federal

Semiannual Report

3. Significant Accounting Policies - continued

Income Tax Information and Distributions to Shareholders - continued

income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. 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, market discount and losses deferred due to wash sales and excise tax regulations.

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

Gross unrealized appreciation

$ 58,570,303

Gross unrealized depreciation

(81,447,421)

Net unrealized appreciation (depreciation) on securities and other investments

$ (22,877,118)

 

 

Tax cost

$ 2,096,288,546

Short-Term Trading (Redemption) Fees. Shares held by investors in the Fund less than 90 days may have been 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.

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.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

4. Purchases and Sales of Investments.

Purchases and sales of securities, other than short-term securities and U.S. government securities, aggregated $1,360,799,055 and $1,258,124,997, respectively.

5. 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 an annualized 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 .66% 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%

$ 611,366

$ 34,188

Class T

-%

.25%

168,106

2,224

Class B

.65%

.25%

74,715

54,756

Class C

.75%

.25%

1,109,963

376,216

 

 

 

$ 1,964,150

$ 467,384

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 5.00% to 1.00% for Class B shares, 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.

Semiannual Report

5. Fees and Other Transactions with Affiliates - continued

Sales Load - continued

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

 

Retained
by FDC

Class A

$ 53,176

Class T

7,113

Class B*

10,766

Class C*

24,174

 

$ 95,229

* 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

$ 443,635

.18

Class T

133,346

.20

Class B

21,279

.26

Class C

197,657

.18

Institutional Class

1,047,826

.15

 

$ 1,843,743

 

* Annualized

Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

5. Fees and Other Transactions with Affiliates - continued

Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $47 for the period.

6. Committed Line of Credit.

The Fund participates with other funds managed by FMR or an affiliate in a $4.25 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 $2,868 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.

7. Security Lending.

The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $68,463. During the period, there were no securities loaned to FCM.

Semiannual Report

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

Class B

1.90%

$ 914

Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $32,280 for the period. 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 $1,323.

9. Distributions to Shareholders.

Distributions to shareholders of each class were as follows:

Six months ended
June 30, 2013

Year ended
December 31, 2012

From net investment income

 

 

Class A

$ 9,495,884

$ 15,676,894

Class T

2,610,152

4,950,246

Class B

258,698

627,179

Class C

3,446,796

5,515,543

Institutional Class

30,639,628

41,848,429

Total

$ 46,451,158

$ 68,618,291

From net realized gain

 

 

Class A

$ 2,512,182

$ 7,100,049

Class T

702,231

2,083,077

Class B

88,733

287,116

Class C

1,127,536

3,097,150

Institutional Class

7,404,750

19,971,007

Total

$ 11,835,432

$ 32,538,399

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

10. Share Transactions.

Transactions for each class of shares were as follows:

 

Shares

Dollars

Six months ended
June 30, 2013

Year ended
December 31, 2012

Six months ended
June 30, 2013

Year ended
December 31, 2012

Class A

 

 

 

 

Shares sold

7,347,695

15,721,662

$ 110,168,212

$ 229,826,711

Reinvestment of distributions

662,324

1,278,849

9,781,287

18,882,099

Shares redeemed

(8,320,517)

(8,453,919)

(121,576,756)

(121,945,548)

Net increase (decrease)

(310,498)

8,546,592

$ (1,627,257)

$ 126,763,262

Class T

 

 

 

 

Shares sold

988,743

2,530,723

$ 14,790,538

$ 36,981,180

Reinvestment of distributions

196,581

417,765

2,893,742

6,134,738

Shares redeemed

(2,127,094)

(1,636,381)

(30,752,881)

(23,728,350)

Net increase (decrease)

(941,770)

1,312,107

$ (13,068,601)

$ 19,387,568

Class B

 

 

 

 

Shares sold

57,209

151,696

$ 873,935

$ 2,257,860

Reinvestment of distributions

17,619

47,756

264,005

709,757

Shares redeemed

(364,094)

(351,266)

(5,388,361)

(5,157,858)

Net increase (decrease)

(289,266)

(151,814)

$ (4,250,421)

$ (2,190,241)

Class C

 

 

 

 

Shares sold

2,850,626

6,029,109

$ 43,203,114

$ 88,924,313

Reinvestment of distributions

251,732

469,415

3,745,788

6,993,519

Shares redeemed

(2,712,830)

(1,871,523)

(39,937,749)

(27,496,355)

Net increase (decrease)

389,528

4,627,001

$ 7,011,153

$ 68,421,477

Institutional Class

 

 

 

 

Shares sold

26,320,541

60,775,199

$ 386,541,336

$ 876,715,975

Reinvestment of distributions

1,428,296

2,225,793

20,705,470

32,473,671

Shares redeemed

(22,844,690)

(15,386,068)

(327,347,550)

(221,422,354)

Net increase (decrease)

4,904,147

47,614,924

$ 79,899,256

$ 687,767,292

Semiannual Report

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 investment 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 the 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.

Fidelity Management & Research
(Hong Kong) Limited

Fidelity Management & Research
(Japan) Inc.

FIL Investments (Japan) Limited

FIL Investment Advisors

FIL Investment Advisors (UK) Limited

General Distributor

Fidelity Distributors Corporation

Smithfield, RI

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

(Fidelity Investment logo)(registered trademark)

EMII-USAN-0813
1.787774.110

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 23, 2013

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 23, 2013

By:

/s/Christine Reynolds

 

Christine Reynolds

 

Chief Financial Officer

 

 

Date:

August 23, 2013