FIDELITY ADVISOR
FOCUS FUNDSSM
CLASS A, CLASS T, CLASS B, AND CLASS C
Please read this prospectus before investing, and keep it on file for
future reference. It contains important information, including how
each fund invests and the services available to shareholders.
To learn more about each fund and its investments, you can obtain a
copy of a fund's most recent financial report and portfolio listing or
a copy of the Statement of Additional Information (SAI) dated
September 28, 1998. The SAI has been filed with the Securities and
Exchange Commission (SEC) and is available along with other related
materials on the SEC's Internet Web site (http://www.sec.gov). The SAI
is incorporated herein by reference (legally forms a part of the
prospectus). For a free copy of either document, contact Fidelity
Distributors Corporation (FDC), 82 Devonshire Street, Boston, MA
02109, or your investment professional.
MUTUAL FUND SHARES ARE NOT DEPOSITS OR
OBLIGATIONS OF, OR GUARANTEED BY, ANY
DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY
THE FDIC, FEDERAL RESERVE BOARD OR ANY OTHER
AGENCY, AND ARE SUBJECT TO INVESTMENT RISKS,
INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT
INVESTED.
Each fund seeks to increase the value of your investment over the
long-term by investing mainly in equity securities of companies within
a particular market sector.
FIDELITY ADVISOR CONSUMER INDUSTRIES FUND
FIDELITY ADVISOR CYCLICAL INDUSTRIES FUND
FIDELITY ADVISOR FINANCIAL SERVICES FUND
FIDELITY ADVISOR HEALTH CARE FUND
FIDELITY ADVISOR NATURAL RESOURCES FUND
FIDELITY ADVISOR TECHNOLOGY FUND
FIDELITY ADVISOR UTILITIES GROWTH FUND
PROSPECTUS
SEPTEMBER 28, 1998(FIDELITY_LOGO_GRAPHIC) 82 DEVONSHIRE STREET,
BOSTON, MA 02109
LIKE ALL MUTUAL FUNDS, THESE SECURITIES HAVE
NOT BEEN APPROVED OR DISAPPROVED BY THE
SECURITIES AND EXCHANGE COMMISSION, NOR
HAS THE SECURITIES AND EXCHANGE
COMMISSION PASSED UPON THE ACCURACY OR
ADEQUACY OF THIS PROSPECTUS. ANY
REPRESENTATION TO THE CONTRARY IS A CRIMINAL
OFFENSE.
AFOC-PRO-0998
1.704309.101
CONTENTS
<TABLE>
<CAPTION>
<S> <C> <C>
KEY FACTS 2 WHO MAY WANT TO INVEST
3 EXPENSES EACH CLASS'S SALES CHARGE (LOAD) AND ITS YEARLY OPERATING
EXPENSES.
9 FINANCIAL HIGHLIGHTS A SUMMARY OF EACH FUND'S FINANCIAL DATA.
30 PERFORMANCE HOW EACH FUND HAS DONE OVER TIME.
THE FUNDS IN DETAIL 34 CHARTER HOW EACH FUND IS ORGANIZED.
35 INVESTMENT PRINCIPLES AND RISKS EACH FUND'S OVERALL APPROACH
TO INVESTING.
37 BREAKDOWN OF EXPENSES HOW OPERATING COSTS ARE CALCULATED
AND WHAT THEY INCLUDE.
YOUR ACCOUNT 39 TYPES OF ACCOUNTS DIFFERENT WAYS TO SET UP YOUR ACCOUNT,
INCLUDING TAX-ADVANTAGED RETIREMENT PLANS.
40 HOW TO BUY SHARES OPENING AN ACCOUNT AND MAKING ADDITIONAL
INVESTMENTS.
42 HOW TO SELL SHARES TAKING MONEY OUT AND CLOSING YOUR ACCOUNT.
44 INVESTOR SERVICES SERVICES TO HELP YOU MANAGE YOUR ACCOUNT.
SHAREHOLDER AND ACCOUNT POLICIES 46 DIVIDENDS, CAPITAL GAINS, AND TAXES
47 TRANSACTION DETAILS SHARE PRICE CALCULATIONS AND THE TIMING OF
PURCHASES AND REDEMPTIONS.
49 EXCHANGE RESTRICTIONS
49 SALES CHARGE REDUCTIONS AND WAIVERS
52 APPENDIX
</TABLE>
KEY FACTS
WHO MAY WANT TO INVEST
Class A, Class T, Class B, and Class C shares are offered to investors
who engage an investment professional for investment advice.
The funds may be appropriate for investors who want to pursue growth
aggressively by concentrating their investment on domestic and foreign
securities within a market sector. The funds are designed for those
who are interested in actively monitoring the progress of, and can
accept the risks of, industry-focused investing. Because the funds are
narrowly focused, changes in a particular industry, regulatory
changes, or legislation can have a substantial impact on a fund's
share price.
Consumer Industries, Cyclical Industries, Health Care, Natural
Resources, Technology, and Utilities Growth may invest a greater
portion of their assets in securities of individual issuers than
diversified funds. As a result, changes in the market value of a
single issuer could cause greater fluctuations in share value than
would occur in a more diversified fund.
The value of each fund's investments varies from day to day, generally
reflecting changes in market conditions and other company, political,
and economic news. In the short term, stock prices can fluctuate
dramatically in response to these factors. The securities of small,
less well-known companies may be more volatile than those of larger
companies. Over time, however, stocks have shown greater growth
potential than other types of securities. Investments in foreign
securities may involve risks in addition to those of U.S. investments,
including increased political and economic risk, as well as exposure
to currency fluctuations.
Each fund is not in itself a balanced investment plan. You should
consider your investment objective and tolerance for risk when making
an investment decision. When you sell your fund shares, they may be
worth more or less than what you paid for them.
Each fund is composed of multiple classes of shares. All classes of a
fund have a common investment objective and investment portfolio.
Class A and Class T shares have a front-end sales charge and pay a
12b-1 fee. Class A and Class T shares may be subject to a contingent
deferred sales charge (CDSC). Class B and Class C shares do not have a
front-end sales charge, but do have a CDSC, and pay a 12b-1 fee.
Institutional Class shares have no sales charge and do not pay a 12b-1
fee, but are available only to certain types of investors. See "Sales
Charge Reductions and Waivers," page , for Institutional Class
eligibility information. You may obtain more information about
Institutional Class shares, which are not offered through this
prospectus, by calling 1-800-522-7297 if you are investing through a
broker-dealer or insurance representative, or 1-800-843-3001 if you
are investing through a bank representative, or from your investment
professional.
The performance of one class of shares of a fund may be different from
the performance of another class of shares of the same fund because of
different sales charges and class expenses. Contact your investment
professional to discuss which class is appropriate for you.
In determining which class of shares is appropriate for you, you
should consider, among other factors, the amount you plan to invest,
the length of time you intend to hold your shares, your eligibility
for a sales charge waiver or reduction, and the package of services
provided to you by your investment professional and the overall costs
of those services.
In general, Class A shares have higher costs than Class T shares over
a short holding period because Class A shares have a higher front-end
sales charge, and Class A shares have lower costs than Class T shares
over a longer holding period because Class A shares have lower 12b-1
fees. If you are planning to invest a significant amount either at one
time or through a regular investment program, you should consider the
reduced front-end sales charges available on Class A and Class T
shares. If you are eligible for a front-end sales charge waiver on a
purchase of both Class A and Class T shares, Class A shares generally
will have lower costs than Class T shares because Class A shares have
lower 12b-1 fees. However, you should evaluate the overall costs of
purchasing Class A shares or Class T shares in the context of the
package of services provided to you by your investment professional.
See "Transaction Details," page , and "Sales Charge Reductions and
Waivers," page , for sales charge reduction and waiver information.
If you prefer not to pay a front-end sales charge, you should consider
Class B or Class C shares. While Class B and Class C shares are
subject to higher ongoing costs than Class A or Class T shares, in
general because of their higher 12b-1 fees, Class B and Class C shares
are sold with a CDSC instead of a front-end sales charge so your
entire purchase amount is immediately invested. In general, Class B
shares have higher costs than Class C shares over a short holding
period because Class B shares have a higher CDSC that declines over
six years, and Class B shares have lower costs than Class C shares
over a longer period because Class B shares convert to Class A shares
after seven years. Please note that purchase amounts of more than
$250,000 will not be accepted for Class B shares, that purchase
amounts of more than $1,000,000 generally will not be accepted for
Class C shares, and that Class A or Class T shares may have lower
costs for investments that qualify for a front-end sales charge
reduction or waiver. See "How to Buy Shares," page , for more
information on the maximum purchase amount for Class C shares. If you
sell your Class B shares within six years, you will normally pay a
CDSC that varies depending on how long you have held your shares. If
you sell your Class C shares within one year, you will normally pay a
1.00% CDSC. See "Transaction Details," page , for CDSC schedules and
related information. Class B shares will automatically convert to
Class A shares after a holding period of seven years. Class C shares
do not convert to another class of shares. See "Transaction Details,"
page , for conversion information.
EXPENSES
SHAREHOLDER TRANSACTION EXPENSES are charges you may pay when you buy
or sell shares of a fund. In addition, you may be charged an annual
account maintenance fee if your account balance falls below $2,500.
Lower front-end sales charges may be available with purchases of
$50,000 or more. See "Transaction Details," page , for an explanation
of how and when these charges apply.
A CDSC is imposed on Class B shares only if you redeem Class B shares
within six years of purchase. A CDSC is imposed on Class C shares only
if you redeem Class C shares within one year of purchase. See
"Transaction Details," page , for information about the CDSC.
CLASS A CLASS T CLASS B CLASS C
MAXIMUM SALES 5.75% 3.50% NONE NONE
CHARGE ON
PURCHASES (AS A
% OF OFFERING
PRICE)
MAXIMUM CDSC NONE[A] NONE[A] 5.00%[B] 1.00%[C]
(AS A % OF THE
LESSER OF ORIGINAL
PURCHASE PRICE OR
REDEMPTION
PROCEEDS)
SALES CHARGE ON NONE NONE NONE NONE
REINVESTED
DISTRIBUTIONS
REDEMPTION FEE 1.00% 1.00% 1.00% 1.00%
(SHORT-TERM
TRADING FEE) ON
SHARES HELD LESS
THAN 60 DAYS (AS
A % OF AMOUNT
REDEEMED)
ANNUAL ACCOUNT $12.00 $12.00 $12.00 $12.00
MAINTENANCE FEE
(FOR ACCOUNTS
UNDER $2,500)
[A] A CDSC OF 0.25% IS ASSESSED ON CERTAIN REDEMPTIONS OF CLASS A AND
CLASS T SHARES ON WHICH A FINDER'S FEE WAS PAID. SEE "TRANSACTION
DETAILS", PAGE .
[B] DECLINES OVER 6 YEARS FROM 5.00% TO 0%.
[C] ON CLASS C SHARES REDEEMED WITHIN 1 YEAR OF PURCHASE.
ANNUAL OPERATING EXPENSES are paid out of each fund's assets. Each
fund pays a management fee to Fidelity Management & Research Company
(FMR). Each fund also incurs other expenses for services such as
maintaining shareholder records and furnishing shareholder statements
and financial reports.
12b-1 fees for Class A, Class T, Class B, and Class C include a
distribution fee and, for Class B and Class C, a shareholder service
fee. Distribution fees are paid by each class of each fund to FDC for
services and expenses in connection with the distribution of the
applicable class's shares. Shareholder service fees are paid by Class
B and Class C of the funds to FDC for services and expenses incurred
in connection with providing personal service and/or maintenance of
Class B and Class C shareholder accounts. Long-term shareholders may
pay more than the economic equivalent of the maximum sales charges
permitted by the National Association of Securities Dealers, Inc., due
to 12b-1 fees.
Each class's expenses are factored into its share price or dividends
and are not charged directly to shareholder accounts (see "Breakdown
of Expenses" on page ).
The following figures are based on estimated or historical expenses of
each class of each fund and are calculated as a percentage of average
net assets of each class of each fund.
OPERATING CLASS A CLASS T CLASS B CLASS C
EXPENSES
CONSUMER MANAGEMENT 0.59% 0.59% 0.59% 0.59%[A]
INDUSTRIES FEE
12B-1 FEE 0.25% 0.50% 1.00% 1.00%
(INCLUDING
0.25%
SHAREHOLDER
SERVICE FEE FOR
CLASS B AND
CLASS C SHARES)
OTHER EXPENSES 0.91% 0.91% 0.91% 0.91%[A]
(AFTER
REIMBURSEMENT
FOR CLASS A,
CLASS T, CLASS
B, AND CLASS C)
TOTAL 1.75% 2.00% 2.50% 2.50%
OPERATING
EXPENSES
CYCLICAL MANAGEMENT 0.59% 0.59% 0.59% 0.59%[A]
INDUSTRIES FEE
12B-1 FEE 0.25% 0.50% 1.00% 1.00%
(INCLUDING
0.25%
SHAREHOLDER
SERVICE FEE FOR
CLASS B AND
CLASS C SHARES)
OTHER EXPENSES 0.91% 0.91% 0.91% 0.91%[A]
(AFTER
REIMBURSEMENT
FOR CLASS A,
CLASS T, CLASS
B, AND CLASS C)
TOTAL 1.75% 2.00% 2.50% 2.50%
OPERATING
EXPENSES
FINANCIAL MANAGEMENT 0.59% 0.59% 0.59% 0.59%[A]
SERVICES FEE
12B-1 FEE 0.25% 0.50% 1.00% 1.00%
(INCLUDING
0.25%
SHAREHOLDER
SERVICE FEE FOR
CLASS B AND
CLASS C SHARES)
OTHER EXPENSES 0.48% 0.43% 0.47% 0.50%[A]
TOTAL 1.32% 1.52% 2.06% 2.09%
OPERATING
EXPENSES
HEALTH CARE MANAGEMENT 0.59% 0.59% 0.59% 0.59%[A]
FEE
12B-1 FEE 0.25% 0.50% 1.00% 1.00%
(INCLUDING
0.25%
SHAREHOLDER
SERVICE FEE FOR
CLASS B AND
CLASS C SHARES)
OTHER EXPENSES 0.54% 0.45% 0.54% 0.59%[A]
TOTAL 1.38% 1.54% 2.13% 2.18%
OPERATING
EXPENSES
NATURAL MANAGEMENT 0.59% 0.59% 0.59% 0.59%[A]
RESOURCES FEE
12B-1 FEE 0.25% 0.50% 1.00% 1.00%
(INCLUDING
0.25%
SHAREHOLDER
SERVICE FEE FOR
CLASS B AND
CLASS C SHARES)
OTHER EXPENSES 0.50% 0.35% 0.39% 0.91%[A]
(AFTER
REIMBURSEMENT
FOR CLASS C)
TOTAL 1.34% 1.44% 1.98% 2.50%
OPERATING
EXPENSES
TECHNOLOGY MANAGEMENT 0.59% 0.59% 0.59% 0.59%[A]
FEE
12B-1 FEE 0.25% 0.50% 1.00% 1.00%
(INCLUDING
0.25%
SHAREHOLDER
SERVICE FEE FOR
CLASS B AND
CLASS C SHARES)
OTHER EXPENSES 0.55% 0.51% 0.62% 0.84%[A]
TOTAL 1.39% 1.60% 2.21% 2.43%
OPERATING
EXPENSES
UTILITIES MANAGEMENT 0.59% 0.59% 0.59% 0.59%[A]
GROWTH FEE
12B-1 FEE 0.25% 0.50% 1.00% 1.00%
(INCLUDING
0.25%
SHAREHOLDER
SERVICE FEE FOR
CLASS B AND
CLASS C SHARES)
OTHER EXPENSES 0.91% 0.85% 0.91% 0.91%[A]
(AFTER
REIMBURSEMENT
FOR CLASS A,
CLASS B, AND
CLASS C)
TOTAL 1.75% 1.94% 2.50% 2.50%
OPERATING
EXPENSES
[A] BASED ON ESTIMATED EXPENSES FOR THE FIRST YEAR.
A portion of the brokerage commissions that a fund pays is used to
reduce that fund's expenses. In addition, each fund has entered into
arrangements with its custodian and transfer agent whereby credits
realized as a result of uninvested cash balances are used to reduce
custodian and transfer agent expenses. Including these reductions, the
total Class A, Class T, Class B, and Class C operating expenses
presented in the preceding table would have been:
CLASS A CLASS T CLASS B CLASS C
CONSUMER 1.73% 1.98% 2.48% *
INDUSTRIES
CYCLICAL INDUSTRIES N/A N/A N/A *
FINANCIAL SERVICES 1.30% 1.50% 2.04% *
HEALTH CARE 1.36% 1.52% 2.12% *
NATURAL RESOURCES 1.30% 1.40% 1.94% *
TECHNOLOGY 1.35% 1.56% 2.18% *
UTILITIES GROWTH 1.72% 1.90% 2.47% *
* IMPACT OF CREDITS NOT APPLIED TO FIRST YEAR ESTIMATED EXPENSES.
EXPENSE TABLE EXAMPLE: You would pay the following amount in total
expenses on a $1,000 investment, assuming a 5% annual return and
either (1) full redemption or (2) no redemption at the end of each
time period. Total expenses shown below include your shareholder
transaction expenses, such as the maximum front-end sales charge or
CDSC, as applicable, and a class's annual operating expenses.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
FULL NO REDEMPTION
REDEMPTION
CLASS A CLASS T CLASS B CLASS C CLASS B CLASS C
CONSUMER 1 YEAR $ 74 $ 55 $ 75[A] $ 35[A] $ 25 $ 25
INDUSTRIES
3 YEARS $ 109 $ 96 $ 108[A] $ 78 $ 78 $ 78
5 YEARS $ 147 $ 139 $ 153[A] $ 133 $ 133 $ 133
10 $ 252 $ 260 $ 257 $ 284 $ 257 $ 284
YEARS[B]
CYCLICAL 1 YEAR $ 74 $ 55 $ 75[A] $ 35[A] $ 25 $ 25
INDUSTRIES
3 YEARS $ 109 $ 96 $ 108[A] $ 78 $ 78 $ 78
5 YEARS $ 147 $ 139 $ 153[A] $ 133 $ 133 $ 133
10 $ 252 $ 260 $ 257 $ 284 $ 257 $ 284
YEARS[B]
FINANCIAL 1 YEAR $ 70 $ 50 $ 71[A] $ 32[A] $ 21 $ 22
SERVICES
3 YEARS $ 97 $ 81 $ 95[A] $ 65 $ 65 $ 65
5 YEARS $ 126 $ 115 $ 131[A] $ 112 $ 111 $ 112
10 $ 207 $ 210 $ 211 $ 242 $ 211 $ 242
YEARS[B]
HEALTH CARE 1 YEAR $ 71 $ 50 $ 72[A] $ 32[A] $ 22 $ 22
3 YEARS $ 99 $ 82 $ 97[A] $ 68 $ 67 $ 68
5 YEARS $ 129 $ 116 $134[A] $ 117 $ 114 $ 117
10 $ 214 $ 212 $ 218 $ 251 $ 218 $ 251
YEARS[B]
NATURAL 1 YEAR $ 70 $ 49 $ 70[A] $ 35[A] $ 20 $ 25
RESOURCES
3 YEARS $ 98 $ 79 $ 92[A] $ 78 $ 62 $ 78
5 YEARS $ 127 $ 111 $ 127[A] $ 133 $ 107 $ 133
10 $ 210 $ 201 $ 206 $ 284 $ 206 $ 284
YEARS[B]
TECHNOLOGY 1 YEAR $ 71 $ 51 $ 72[A] $ 35[A] $ 22 $ 25
3 YEARS $ 99 $ 84 $ 99[A] $ 76 $ 69 $ 76
5 YEARS $ 129 $ 119 $ 138[A] $ 130 $ 118 $ 130
10 $ 215 $ 218 $ 224 $ 277 $ 224 $ 277
YEARS[B]
UTILITIES 1 YEAR $ 74 $ 54 $75[A] $ 35[A] $ 25 $ 25
GROWTH
3 YEARS $ 109 $ 94 $ 108[A] $ 78 $ 78 $ 78
5 YEARS $ 147 $ 136 $ 153[A] $ 133 $ 133 $ 133
10 $ 252 $ 254 $ 257 $ 284 $ 257 $ 284
YEARS[B]
</TABLE>
[A] REFLECTS DEDUCTION OF APPLICABLE CDSC.
[B] REFLECTS CONVERSION OF CLASS B SHARES TO CLASS A SHARES AFTER
SEVEN YEARS.
THESE EXAMPLES ILLUSTRATE THE EFFECT OF EXPENSES, BUT ARE NOT MEANT TO
SUGGEST ACTUAL OR EXPECTED EXPENSES OR RETURNS, ALL OF WHICH MAY VARY.
FMR has voluntarily agreed to reimburse Class A, Class T, Class B, and
Class C of each fund to the extent that total operating expenses
(excluding interest, taxes, brokerage commissions and extraordinary
expenses), as a percentage of their respective average net assets,
exceed the following rates:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CLASS A EFFECTIVE CLASS T EFFECTIVE CLASS B EFFECTIVE CLASS C EFFECTIVE
DATE DATE DATE DATE
CONSUMER INDUSTRIES 1.75% 9/1/96 2.00% 9/1/96 2.50% 3/1/97 2.50% 11/1/97
CYCLICAL INDUSTRIES 1.75% 9/1/96 2.00% 9/1/96 2.50% 3/1/97 2.50% 11/1/97
FINANCIAL SERVICES 1.75% 9/1/96 2.00% 9/1/96 2.50% 3/1/97 2.50% 11/1/97
HEALTH CARE 1.75% 9/1/96 2.00% 9/1/96 2.50% 3/1/97 2.50% 11/1/97
NATURAL RESOURCES 1.75% 8/30/96 2.00% 8/30/96 2.50% 8/30/96 2.50% 11/1/97
TECHNOLOGY 1.75% 9/1/96 2.00% 9/1/96 2.50% 3/1/97 2.50% 11/1/97
UTILITIES GROWTH 1.75% 9/1/96 2.00% 9/1/96 2.50% 3/1/97 2.50% 11/1/97
</TABLE>
If these agreements were not in effect, other expenses and total
operating expenses, as a percentage of average net assets, would have
been the following amounts:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
OTHER TOTAL
EXPENSES OPERATING
EXPENSES
CLASS A CLASS T CLASS B CLASS C[A] CLASS A CLASS T CLASS B CLASS C[A]
CONSUMER 1.62% 1.12% 1.87% 2.80% 2.46% 2.21% 3.46% 4.39%
INDUSTRIES
CYCLICAL INDUSTRIES 4.56% 2.91% 5.85% 14.42% 5.40% 4.00% 7.44% 16.01%
NATURAL RESOURCES * * * 1.15% * * * 2.74%
UTILITIES GROWTH 1.34% * 1.04% 1.52% 2.18% * 2.63% 3.11%
</TABLE>
[A] BASED ON ESTIMATED EXPENSES FOR THE FIRST YEAR.
* TOTAL OPERATING EXPENSES WERE LESS THAN THE VOLUNTARY EXPENSE CAPS
IN EFFECT DURING THE FISCAL YEAR ENDED 1998.
FINANCIAL HIGHLIGHTS
The financial highlights tables that follow contain annual information
which has been audited by PricewaterhouseCoopers LLP, independent
accountants. The funds' financial highlights, financial statements,
and reports of the auditor are included in the funds' Annual Report,
and are incorporated by reference into (are legally part of) the
funds' SAI. Contact FDC or your investment professional for a free
copy of the Annual Report or the SAI.
CONSUMER INDUSTRIES CLASS A
SELECTED PER-SHARE DATA AND RATIOS
YEARS ENDED JULY 31 1998 1997E
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.48 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME (LOSS)D (.06) (.05)
NET REALIZED AND UNREALIZED GAIN (LOSS) 3.31 3.60
TOTAL FROM INVESTMENT OPERATIONS 3.25 3.55
LESS DISTRIBUTIONS
FROM NET REALIZED GAIN (1.68)I (.07)I
REDEMPTION FEES ADDED TO PAID IN .03 --
CAPITAL
NET ASSET VALUE, END OF PERIOD $ 15.08 $ 13.48
TOTAL RETURNB,C 27.48% 35.68%
NET ASSETS, END OF PERIOD (000 $ 2,220 $ 944
OMITTED)
RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.75%F 1.75%A,F
RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.73%G 1.73%A,G
AFTER EXPENSE REDUCTIONS
RATIO OF NET INVESTMENT INCOME (LOSS) (.47)% (.50)%A
TO AVERAGE NET ASSETS
PORTFOLIO TURNOVER 144% 203%A
AVERAGE COMMISSION RATEH $ .0242 $ .0307
CONSUMER INDUSTRIES CLASS T
SELECTED PER-SHARE DATA AND RATIOS
YEARS ENDED JULY 31 1998 1997E
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.45 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME (LOSS)D (.10) (.09)
NET REALIZED AND UNREALIZED GAIN (LOSS) 3.28 3.60
TOTAL FROM INVESTMENT OPERATIONS 3.18 3.51
LESS DISTRIBUTIONS
FROM NET REALIZED GAIN (1.66) (.06)
REDEMPTION FEES ADDED TO PAID IN .03 --
CAPITAL
NET ASSET VALUE, END OF PERIOD $ 15.00 $ 13.45
TOTAL RETURNB,C 26.93% 35.25%
NET ASSETS, END OF PERIOD (000 $ 13,989 $ 7,314
OMITTED)
RATIO OF EXPENSES TO AVERAGE NET ASSETS 2.00%F 2.00%A,F
RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.98%G 1.97%A,G
AFTER EXPENSE REDUCTIONS
RATIO OF NET INVESTMENT INCOME (LOSS) (.71)% (.83)%A
TO AVERAGE NET ASSETS
PORTFOLIO TURNOVER 144% 203%A
AVERAGE COMMISSION RATEH $ .0242 $ .0307
A ANNUALIZED
B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
C TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR
PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
D NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON
AVERAGE SHARES OUTSTANDING DURING THE PERIOD.
E FOR THE PERIOD SEPTEMBER 3, 1996 (COMMENCEMENT OF SALE OF CLASS A
AND CLASS T SHARES) TO JULY 31, 1997
F FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD
HAVE BEEN HIGHER.
G FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES.
H A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE
FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY
VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF
TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND
COMMISSION RATE STRUCTURES MAY DIFFER.
I THE AMOUNTS SHOWN REFLECT CERTAIN RECLASSIFICATIONS RELATED TO BOOK
TO TAX DIFFERENCES.
CONSUMER INDUSTRIES CLASS B
SELECTED PER-SHARE DATA AND RATIOS
YEARS ENDED JULY 31 1998 1997E
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.42 $ 11.46
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME (LOSS)D (.17) (.08)
NET REALIZED AND UNREALIZED GAIN (LOSS) 3.26 2.04
TOTAL FROM INVESTMENT OPERATIONS 3.09 1.96
LESS DISTRIBUTIONS
FROM NET REALIZED GAIN (1.64) --
REDEMPTION FEES ADDED TO PAID IN .04 --
CAPITAL
NET ASSET VALUE, END OF PERIOD $ 14.91 $ 13.42
TOTAL RETURNB,C 26.30% 17.10%
NET ASSETS, END OF PERIOD (000 $ 5,419 $ 596
OMITTED)
RATIO OF EXPENSES TO AVERAGE NET ASSETS 2.50%F 2.50%A,F
RATIO OF EXPENSES TO AVERAGE NET ASSETS 2.48%G 2.46%A,G
AFTER EXPENSE REDUCTIONS
RATIO OF NET INVESTMENT INCOME (LOSS) (1.23)% (1.60)%A
TO AVERAGE NET ASSETS
PORTFOLIO TURNOVER 144% 203%A
AVERAGE COMMISSION RATEH $ .0242 $ .0307
CONSUMER INDUSTRIES CLASS C
SELECTED PER-SHARE DATA AND RATIOS
YEARS ENDED JULY 31 1998I
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.66
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME (LOSS)D (.13)
NET REALIZED AND UNREALIZED GAIN (LOSS) 2.87
TOTAL FROM INVESTMENT OPERATIONS 2.74
LESS DISTRIBUTIONS
FROM NET REALIZED GAIN (.49)
REDEMPTION FEES ADDED TO PAID IN .04
CAPITAL
NET ASSET VALUE, END OF PERIOD $ 14.95
TOTAL RETURNB,C 22.67%
NET ASSETS, END OF PERIOD (000 $ 1,461
OMITTED)
RATIO OF EXPENSES TO AVERAGE NET ASSETS 2.50%A,F
RATIO OF EXPENSES TO AVERAGE NET ASSETS 2.48%A,G
AFTER EXPENSE REDUCTIONS
RATIO OF NET INVESTMENT INCOME (LOSS) (1.27)%A
TO AVERAGE NET ASSETS
PORTFOLIO TURNOVER 144%
AVERAGE COMMISSION RATEH $ .0242
A ANNUALIZED
B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
C TOTAL RETURNS DO NOT INCLUDE THE CONTINGENT DEFERRED SALES CHARGE
AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
D NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON
AVERAGE SHARES OUTSTANDING DURING THE PERIOD.
E FOR THE PERIOD MARCH 3, 1997 (COMMENCEMENT OF SALE OF CLASS B
SHARES) TO JULY 31, 1997
F FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD
HAVE BEEN HIGHER.
G FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES.
H A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE
FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY
VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF
TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND
COMMISSION RATE STRUCTURES MAY DIFFER.
I FOR THE PERIOD NOVEMBER 3, 1997 (COMMENCEMENT OF SALE OF CLASS C
SHARES) TO JULY 31, 1998
CYCLICAL INDUSTRIES CLASS A
SELECTED PER-SHARE DATA AND RATIOS
YEARS ENDED JULY 31 1998 1997E
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.80 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME (LOSS)D (.03) (.01)
NET REALIZED AND UNREALIZED GAIN (LOSS) .76 3.89
TOTAL FROM INVESTMENT OPERATIONS .73 3.88
LESS DISTRIBUTIONS
FROM NET INVESTMENT INCOME -- (.01)
FROM NET REALIZED GAIN (.99) (.08)
TOTAL DISTRIBUTIONS (.99) (.09)
REDEMPTION FEES ADDED TO PAID IN .02 .01
CAPITAL
NET ASSET VALUE, END OF PERIOD $ 13.56 $ 13.80
TOTAL RETURNB,C 6.05% 39.11%
NET ASSETS, END OF PERIOD (000 $ 471 $ 365
OMITTED)
RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.75%F 1.75%A,F
RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.75% 1.73%A,G
AFTER EXPENSE REDUCTIONS
RATIO OF NET INVESTMENT INCOME (LOSS) (.22)% (.09)%A
TO AVERAGE NET ASSETS
PORTFOLIO TURNOVER 100% 155%A
AVERAGE COMMISSION RATEH $ .0245 $ .0210
CYCLICAL INDUSTRIES CLASS T
SELECTED PER-SHARE DATA AND RATIOS
YEARS ENDED JULY 31 1998 1997E
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.77 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME (LOSS)D (.06) (.04)
NET REALIZED AND UNREALIZED GAIN (LOSS) .77 3.89
TOTAL FROM INVESTMENT OPERATIONS .71 3.85
LESS DISTRIBUTIONS
FROM NET INVESTMENT INCOME - (.01)
FROM NET REALIZED GAIN (.99) (.08)
TOTAL DISTRIBUTIONS (.99) (.09)
REDEMPTION FEES ADDED TO PAID IN .02 .01
CAPITAL
NET ASSET VALUE, END OF PERIOD $ 13.51 $ 13.77
TOTAL RETURNB,C 5.91% 38.81%
NET ASSETS, END OF PERIOD (000 $ 2,973 $ 1,920
OMITTED)
RATIO OF EXPENSES TO AVERAGE NET 2.00%F 2.00%A,F
ASSETS
RATIO OF EXPENSES TO AVERAGE NET 2.00% 1.97%A,G
ASSETS AFTER EXPENSE REDUCTIONS
RATIO OF NET INVESTMENT INCOME (LOSS) (.47)% (.37)%A
TO AVERAGE NET ASSETS
PORTFOLIO TURNOVER 100% 155%A
AVERAGE COMMISSION RATEH $ .0245 $ .0210
A ANNUALIZED
B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
C TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR
PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
D NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON
AVERAGE SHARES OUTSTANDING DURING THE PERIOD.
E FOR THE PERIOD SEPTEMBER 3, 1996 (COMMENCEMENT OF SALE OF CLASS A
AND CLASS T SHARES) TO JULY 31, 1997
F FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD
HAVE BEEN HIGHER.
G FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES.
H A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE
FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY
VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF
TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND
COMMISSION RATE STRUCTURES MAY DIFFER.
CYCLICAL INDUSTRIES CLASS B
SELECTED PER-SHARE DATA AND RATIOS
YEARS ENDED JULY 31 1998 1997E
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.75 $ 11.56
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME (LOSS)D (.14) (.06)
NET REALIZED AND UNREALIZED GAIN .76 2.25
(LOSS)
TOTAL FROM INVESTMENT OPERATIONS .62 2.19
LESS DISTRIBUTIONS
FROM NET REALIZED GAIN (.99) --
REDEMPTION FEES ADDED TO PAID IN .02 --
CAPITAL
NET ASSET VALUE, END OF PERIOD $ 13.40 $ 13.75
TOTAL RETURNB,C 5.23% 18.94%
NET ASSETS, END OF PERIOD (000 $ 985 $ 252
OMITTED)
RATIO OF EXPENSES TO AVERAGE NET 2.50%G 2.50%A,G
ASSETS
RATIO OF EXPENSES TO AVERAGE NET 2.50% 2.45%A,H
ASSETS AFTER EXPENSE REDUCTIONS
RATIO OF NET INVESTMENT INCOME (LOSS) (1.03)% (1.11)%A
TO AVERAGE NET ASSETS
PORTFOLIO TURNOVER 100% 155%A
AVERAGE COMMISSION RATEI $ .0245 $ .0210
CYCLICAL INDUSTRIES CLASS C
SELECTED PER-SHARE DATA AND RATIOS
YEARS ENDED JULY 31 1998F
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.54
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME (LOSS)D (.11)
NET REALIZED AND UNREALIZED GAIN 1.39
(LOSS)
TOTAL FROM INVESTMENT OPERATIONS 1.28
LESS DISTRIBUTIONS
FROM NET REALIZED GAIN (.38)
REDEMPTION FEES ADDED TO PAID IN .01
CAPITAL
NET ASSET VALUE, END OF PERIOD $ 13.45
TOTAL RETURNB,C 10.62%
NET ASSETS, END OF PERIOD (000 $ 165
OMITTED)
RATIO OF EXPENSES TO AVERAGE NET 2.50%A,G
ASSETS
RATIO OF NET INVESTMENT INCOME (LOSS) (1.06)%A
TO AVERAGE NET ASSETS
PORTFOLIO TURNOVER 100%
AVERAGE COMMISSION RATEI $ .0245
A ANNUALIZED
B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
C TOTAL RETURNS DO NOT INCLUDE THE CONTINGENT DEFERRED SALES CHARGE
AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
D NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON
AVERAGE SHARES OUTSTANDING DURING THE PERIOD.
E FOR THE PERIOD MARCH 3, 1997 (COMMENCEMENT OF SALE OF CLASS B
SHARES) TO JULY 31, 1997
F FOR THE PERIOD NOVEMBER 3, 1997 (COMMENCEMENT OF SALE OF CLASS C
SHARES) TO JULY 31, 1998
G FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD
HAVE BEEN HIGHER.
H FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES.
I A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE
FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY
VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF
TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND
COMMISSION RATE STRUCTURES MAY DIFFER.
FINANCIAL SERVICES CLASS A
SELECTED PER-SHARE DATA AND RATIOS
YEARS ENDED JULY 31 1998 1997E
NET ASSET VALUE, BEGINNING OF PERIOD $ 15.11 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOMED .11 .06
NET REALIZED AND UNREALIZED GAIN 3.80 5.06
(LOSS)
TOTAL FROM INVESTMENT OPERATIONS 3.91 5.12
LESS DISTRIBUTIONS
FROM NET INVESTMENT INCOME (.06) (.01)
FROM NET REALIZED GAIN (.23) (.01)
TOTAL DISTRIBUTIONS (.29) (.02)
REDEMPTION FEES ADDED TO PAID IN .01 .01
CAPITAL
NET ASSET VALUE, END OF PERIOD $ 18.74 $ 15.11
TOTAL RETURNB,C 26.32% 51.35%
NET ASSETS, END OF PERIOD (000 $ 21,907 $ 6,275
OMITTED)
RATIO OF EXPENSES TO AVERAGE NET 1.32% 1.75%A,F
ASSETS
RATIO OF EXPENSES TO AVERAGE NET 1.30%G 1.73%A,G
ASSETS AFTER EXPENSE REDUCTIONS
RATIO OF NET INVESTMENT INCOME TO .63% .55%A
AVERAGE NET ASSETS
PORTFOLIO TURNOVER 54% 26%A
AVERAGE COMMISSION RATEH $ .0395 $ .0348
FINANCIAL SERVICES CLASS T
SELECTED PER-SHARE DATA AND RATIOS
YEARS ENDED JULY 31 1998 1997E
NET ASSET VALUE, BEGINNING OF PERIOD $ 15.07 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOMED .07 .04
NET REALIZED AND UNREALIZED GAIN 3.78 5.04
(LOSS)
TOTAL FROM INVESTMENT OPERATIONS 3.85 5.08
LESS DISTRIBUTIONS
FROM NET INVESTMENT INCOME (.04) (.01)
FROM NET REALIZED GAIN (.23) (.01)
TOTAL DISTRIBUTIONS (.27) (.02)
REDEMPTION FEES ADDED TO PAID IN .01 .01
CAPITAL
NET ASSET VALUE, END OF PERIOD $ 18.66 $ 15.07
TOTAL RETURNB,C 25.96% 50.95%
NET ASSETS, END OF PERIOD (000 $ 118,608 $ 52,003
OMITTED)
RATIO OF EXPENSES TO AVERAGE NET 1.52% 1.94%A
ASSETS
RATIO OF EXPENSES TO AVERAGE NET 1.50%G 1.91%A,G
ASSETS AFTER EXPENSE REDUCTIONS
RATIO OF NET INVESTMENT INCOME TO .44% .37%A
AVERAGE NET ASSETS
PORTFOLIO TURNOVER 54% 26%A
AVERAGE COMMISSION RATEH $ .0395 $ .0348
A ANNUALIZED
B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
C TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR
PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
D NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.
E FOR THE PERIOD SEPTEMBER 3, 1996 (COMMENCEMENT OF SALE OF CLASS A
AND CLASS T SHARES) TO JULY 31, 1997
F FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD
HAVE BEEN HIGHER.
G FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSE.
H A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE
FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY
VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF
TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND
COMMISSION RATE STRUCTURES MAY DIFFER.
FINANCIAL SERVICES CLASS B
SELECTED PER-SHARE DATA AND RATIOS
YEARS ENDED JULY 31 1998 1997E
NET ASSET VALUE, BEGINNING OF PERIOD $ 15.04 $ 12.56
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME (LOSS)D (.02) (.02)
NET REALIZED AND UNREALIZED GAIN 3.76 2.50
(LOSS)
TOTAL FROM INVESTMENT OPERATIONS 3.74 2.48
LESS DISTRIBUTIONS
FROM NET INVESTMENT INCOME (.04) --
FROM NET REALIZED GAIN (.23) --
TOTAL DISTRIBUTIONS (.27) --
REDEMPTION FEES ADDED TO PAID IN .01 --
CAPITAL
NET ASSET VALUE, END OF PERIOD $ 18.52 $ 15.04
TOTAL RETURNB,C 25.29% 19.75%
NET ASSETS, END OF PERIOD (000 $ 65,926 $ 7,737
OMITTED)
RATIO OF EXPENSES TO AVERAGE NET 2.06% 2.50%A,G
ASSETS
RATIO OF EXPENSES TO AVERAGE NET 2.04%H 2.49%A,H
ASSETS AFTER EXPENSE REDUCTIONS
RATIO OF NET INVESTMENT INCOME (LOSS) (.14)% (.37)%A
TO AVERAGE NET ASSETS
PORTFOLIO TURNOVER 54% 26%A
AVERAGE COMMISSION RATEI $ .0395 $ .0348
FINANCIAL SERVICES CLASS C
SELECTED PER-SHARE DATA AND RATIOS
YEARS ENDED JULY 31 1998F
NET ASSET VALUE, BEGINNING OF PERIOD $ 15.24
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME(LOSS)D (.03)
NET REALIZED AND UNREALIZED GAIN 3.57
(LOSS)
TOTAL FROM INVESTMENT OPERATIONS 3.54
LESS DISTRIBUTIONS
FROM NET INVESTMENT INCOME (.02)
FROM NET REALIZED GAIN (.21)
TOTAL DISTRIBUTIONS (.23)
REDEMPTION FEES ADDED TO PAID IN .01
CAPITAL
NET ASSET VALUE, END OF PERIOD $ 18.56
TOTAL RETURNB,C 23.56%
NET ASSETS, END OF PERIOD (000 $ 19,983
OMITTED)
RATIO OF EXPENSES TO AVERAGE NET 2.09%A
ASSETS
RATIO OF EXPENSES TO AVERAGE NET 2.07%A,H
ASSETS AFTER EXPENSE REDUCTIONS
RATIO OF NET INVESTMENT INCOME (LOSS) (.22)%A
TO AVERAGE NET ASSETS
PORTFOLIO TURNOVER 54%
AVERAGE COMMISSION RATEI $ .0395
A ANNUALIZED
B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
C TOTAL RETURNS DO NOT INCLUDE THE CONTINGENT DEFERRED SALES CHARGE
AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
D NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON
AVERAGE SHARES OUTSTANDING DURING THE PERIOD.
E FOR THE PERIOD MARCH 3, 1997 (COMMENCEMENT OF SALE OF CLASS B
SHARES) TO JULY 31, 1997
F FOR THE PERIOD NOVEMBER 3, 1997 (COMMENCEMENT OF SALE OF CLASS C
SHARES) TO JULY 31, 1998
G FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD
HAVE BEEN HIGHER.
H FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES.
I A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE
FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY
VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF
TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND
COMMISSION RATE STRUCTURES MAY DIFFER.
HEALTH CARE CLASS A
SELECTED PER-SHARE DATA AND RATIOS
YEARS ENDED JULY 31 1998 1997E
NET ASSET VALUE, BEGINNING OF PERIOD $ 14.10 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME (LOSS)D (.03) (.02)
NET REALIZED AND UNREALIZED GAIN 3.50 4.12
(LOSS)
TOTAL FROM INVESTMENT OPERATIONS 3.47 4.10
LESS DISTRIBUTIONS
FROM NET REALIZED GAIN (.88) --
REDEMPTION FEES ADDED TO PAID IN .01 --
CAPITAL
NET ASSET VALUE, END OF PERIOD $ 16.70 $ 14.10
TOTAL RETURNB,C 26.47% 41.00%
NET ASSETS, END OF PERIOD (000 $ 20,902 $ 5,488
OMITTED)
RATIO OF EXPENSES TO AVERAGE NET 1.38% 1.75%A,F
ASSETS
RATIO OF EXPENSES TO AVERAGE NET 1.36%G 1.74%A,G
ASSETS AFTER EXPENSE REDUCTIONS
RATIO OF NET INVESTMENT INCOME (LOSS) (.18)% (.18)%A
TO AVERAGE NET ASSETS
PORTFOLIO TURNOVER 85% 67%A
AVERAGE COMMISSION RATEH $ .0464 $ .0383
HEALTH CARE CLASS T
SELECTED PER-SHARE DATA AND RATIOS
YEARS ENDED JULY 31 1998 1997E
NET ASSET VALUE, BEGINNING OF PERIOD $ 14.05 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME (LOSS)D (.05) (.04)
NET REALIZED AND UNREALIZED GAIN 3.47 4.09
(LOSS)
TOTAL FROM INVESTMENT OPERATIONS 3.42 4.05
LESS DISTRIBUTIONS
FROM NET REALIZED GAIN (.87) --
REDEMPTION FEES ADDED TO PAID IN .01 --
CAPITAL
NET ASSET VALUE, END OF PERIOD $ 16.61 $ 14.05
TOTAL RETURNB,C 26.17% 40.50%
NET ASSETS, END OF PERIOD (000 $ 124,652 $ 50,868
OMITTED)
RATIO OF EXPENSES TO AVERAGE NET 1.54% 1.97%A
ASSETS
RATIO OF EXPENSES TO AVERAGE NET 1.52%G 1.96%A,G
ASSETS AFTER EXPENSE REDUCTIONS
RATIO OF NET INVESTMENT INCOME (LOSS) (.31)% (.39)%A
TO AVERAGE NET ASSETS
PORTFOLIO TURNOVER 85% 67%A
AVERAGE COMMISSION RATEH $ .0464 $ .0383
A ANNUALIZED
B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
C TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR
PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
D NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON
AVERAGE SHARES OUTSTANDING DURING THE PERIOD.
E FOR THE PERIOD SEPTEMBER 3, 1996 (COMMENCEMENT OF SALE OF CLASS A
AND CLASS T SHARES) TO JULY 31, 1997
F FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD
HAVE BEEN HIGHER.
G FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSE.
H A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE
FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY
VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF
TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND
COMMISSION RATE STRUCTURES MAY DIFFER.
HEALTH CARE CLASS B
SELECTED PER-SHARE DATA AND RATIOS
YEARS ENDED JULY 31 1998 1997E
NET ASSET VALUE, BEGINNING OF PERIOD $ 14.01 $ 11.88
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME (LOSS)D (.14) (.05)
NET REALIZED AND UNREALIZED GAIN 3.45 2.18
(LOSS)
TOTAL FROM INVESTMENT OPERATIONS 3.31 2.13
LESS DISTRIBUTIONS
FROM NET REALIZED GAIN (.86) --
REDEMPTION FEES ADDED TO PAID IN .01 --
CAPITAL
NET ASSET VALUE, END OF PERIOD $ 16.47 $ 14.01
TOTAL RETURNB,C 25.40% 17.93%
NET ASSETS, END OF PERIOD (000 $ 57,074 $ 6,159
OMITTED)
RATIO OF EXPENSES TO AVERAGE NET 2.13% 2.50%A,G
ASSETS
RATIO OF EXPENSES TO AVERAGE NET 2.12%H 2.49%A,H
ASSETS AFTER EXPENSE REDUCTIONS
RATIO OF NET INVESTMENT INCOME (LOSS) (.95)% (.99)%A
TO AVERAGE NET ASSETS
PORTFOLIO TURNOVER 85% 67%A
AVERAGE COMMISSION RATEI $ .0464 $ .0383
HEATH CARE CLASS C
SELECTED PER-SHARE DATA AND RATIOS
YEARS ENDED JULY 31 1998F
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.85
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME(LOSS)D (.12)
NET REALIZED AND UNREALIZED GAIN 3.39
(LOSS)
TOTAL FROM INVESTMENT OPERATIONS 3.27
LESS DISTRIBUTIONS
FROM NET REALIZED GAIN (.63)
REDEMPTION FEES ADDED TO PAID IN .00
CAPITAL
NET ASSET VALUE, END OF PERIOD $ 16.49
TOTAL RETURNB,C 24.84%
NET ASSETS, END OF PERIOD (000 $ 19,154
OMITTED)
RATIO OF EXPENSES TO AVERAGE NET 2.18%A
ASSETS
RATIO OF EXPENSES TO AVERAGE NET 2.17%A,H
ASSETS AFTER EXPENSE REDUCTIONS
RATIO OF NET INVESTMENT INCOME (LOSS) (1.06)%A
TO AVERAGE NET ASSETS
PORTFOLIO TURNOVER 85%
AVERAGE COMMISSION RATEI $ .0464
A ANNUALIZED
B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
C TOTAL RETURNS DO NOT INCLUDE THE CONTINGENT DEFERRED SALES CHARGE
AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
D NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON
AVERAGE SHARES OUTSTANDING DURING THE PERIOD.
E FOR THE PERIOD MARCH 3, 1997 (COMMENCEMENT OF SALE OF CLASS B
SHARES) TO JULY 31, 1997
F FOR THE PERIOD NOVEMBER 3, 1997 (COMMENCEMENT OF SALE OF CLASS C
SHARES) TO JULY 31, 1998
G FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD
HAVE BEEN HIGHER.
H FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES.
I A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE
FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY
VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF
TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND
COMMISSION RATE STRUCTURES MAY DIFFER.
NATURAL RESOURCES CLASS A
SELECTED PER-SHARE
DATA AND RATIOS
YEARS ENDED JULY 31 1998 1997J 1996K
NET ASSET VALUE, $ 26.16 $ 25.11 $ 23.65
BEGINNING OF PERIOD
INCOME FROM
INVESTMENT OPERATIONS
NET INVESTMENT .06 (.05) 0.00
INCOME (LOSS)E
NET REALIZED AND (3.33) 2.81 1.46
UNREALIZED GAIN (LOSS)
TOTAL FROM (3.27) 2.76 1.46
INVESTMENT OPERATIONS
LESS DISTRIBUTIONS
FROM NET -- (.10) --
INVESTMENT INCOME
IN EXCESS OF NET -- (.04) --
INVESTMENT INCOME
FROM NET REALIZED (3.96) (1.57) --
GAIN
TOTAL DISTRIBUTIONS (3.96) (1.71) --
REDEMPTION FEES .01 -- --
ADDED TO PAID IN CAPITAL
NET ASSET VALUE, END $ 18.94 $ 26.16 $ 25.11
OF PERIOD
TOTAL RETURNB,C (14.61)% 11.45% 6.17%
NET ASSETS, END OF $ 6,474 $ 6,372 $ 1,609
PERIOD (000 OMITTED)
RATIO OF EXPENSES TO 1.34% 1.71%A,G 1.66%A,G
AVERAGE NET ASSETS
RATIO OF EXPENSES TO 1.30%H 1.68%A,H 1.58%A,H
AVERAGE NET ASSETS AFTER
EXPENSE REDUCTIONS
RATIO OF NET .28% (.28)%A (.01)%A
INVESTMENT INCOME (LOSS) TO
AVERAGE NET ASSETS
PORTFOLIO TURNOVER 97% 116%A 137%
AVERAGE COMMISSION $ .0185 $ .0286 .0337
RATEI
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
NATURAL RESOURCES CLASS T
YEARS ENDED JULY 31 1998 1997J 1996F 1995F 1994F 1993F
SELECTED PER-SHARE
DATA AND RATIOS
NET ASSET VALUE, $ 26.34 $ 25.12 $ 19.25 $ 17.56 $ 17.59 $ 13.88
BEGINNING OF PERIOD
INCOME FROM
INVESTMENT OPERATIONS
NET INVESTMENT .02E (.02)E .00E (.05)E (.11)E .22
INCOME (LOSS)
NET REALIZED AND (3.34) 2.83 6.56 2.00 .76 4.91
UNREALIZED GAIN (LOSS)
TOTAL FROM (3.32) 2.81 6.56 1.95 .65 5.13
INVESTMENT OPERATIONS
LESS DISTRIBUTIONS
FROM NET -- (.01) -- -- -- --
INVESTMENT INCOME
IN EXCESS OF NET -- (.01) -- -- -- --
INVESTMENT INCOME
FROM NET REALIZED (3.92) (1.57) (.69) (.26) (.68) (1.42)
GAIN
TOTAL DISTRIBUTIONS (3.92) (1.59) (.69) (.26) (.68) (1.42)
REDEMPTION FEES .01 -- -- -- -- --
ADDED TO PAID IN CAPITAL
NET ASSET VALUE, END $ 19.11 $ 26.34 $ 25.12 $ 19.25 $ 17.56 $ 17.59
OF PERIOD
TOTAL RETURNB,C (14.69)% 11.62% 35.01% 11.40% 3.97% 41.05%
NET ASSETS, END OF $ 342,347 $ 618,083 $ 602,915 $ 272,979 $ 199,361 $ 40,309
PERIOD (000 OMITTED)
RATIO OF EXPENSES TO 1.43% 1.47%A 1.59% 1.86%G 2.10% 2.63%
AVERAGE NET ASSETS
RATIO OF EXPENSES TO 1.39%H 1.44%A,H 1.56%H 1.84%H 2.07%H 2.62%H
AVERAGE NET ASSETS AFTER
EXPENSE REDUCTIONS
RATIO OF NET .10% (.12)%A 0.00 (.30)% (.67)% (1.18)%
INVESTMENT INCOME (LOSS) TO
AVERAGE NET ASSETS
PORTFOLIO TURNOVER 97% 116%A 137% 161% 125% 208%
AVERAGE COMMISSION $ .0185 $ .0286 $ .0337
RATEI
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
YEARS ENDED JULY 31 1992F 1991F,L 1990F 1989F 1988N
SELECTED PER-SHARE
DATA AND RATIOS
NET ASSET VALUE, $ 14.11 $ 12.30 $ 12.60 $ 11.47 $ 10.00
BEGINNING OF PERIOD
INCOME FROM
INVESTMENT OPERATIONS
NET INVESTMENT (.10) (.15) (.10) .10M (.05)
INCOME (LOSS)
NET REALIZED AND .79 2.45 .93 1.96 1.52
UNREALIZED GAIN (LOSS)
TOTAL FROM .69 2.30 .83 2.06 1.47
INVESTMENT OPERATIONS
LESS DISTRIBUTIONS
FROM NET -- -- (.08) -- --
INVESTMENT INCOME
IN EXCESS OF NET -- -- -- -- --
INVESTMENT INCOME
FROM NET REALIZED (.92) (.49) (1.05) (.93) --
GAIN
TOTAL DISTRIBUTIONS (.92) (.49) (1.13) (.93) --
REDEMPTION FEES -- -- -- -- --
ADDED TO PAID IN CAPITAL
NET ASSET VALUE, END $ 13.88 $ 14.11 $ 12.30 $ 12.60 $ 11.47
OF PERIOD
TOTAL RETURNB,C 5.97% 19.50% 6.37% 19.63% 14.70%
NET ASSETS, END OF $ 7,087 $ 5,940 $ 4,615 $ 2,049 $ 916
PERIOD (000 OMITTED)
RATIO OF EXPENSES TO 3.27%D 3.35%D 3.34%D 3.23% 2.85%A
AVERAGE NET ASSETS
RATIO OF EXPENSES TO 3.27% 3.35% 3.34% 3.23% 2.85%A
AVERAGE NET ASSETS AFTER
EXPENSE REDUCTIONS
RATIO OF NET (1.22)% (1.28)% (1.13)% .83% (.64)%A
INVESTMENT INCOME (LOSS) TO
AVERAGE NET ASSETS
PORTFOLIO TURNOVER 248% 256% 229% 249% 220%A
AVERAGE COMMISSION
RATEI
</TABLE>
A ANNUALIZED
B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
C TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR
PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
D LIMITED IN ACCORDANCE WITH A STATE EXPENSE LIMITATION.
E NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON
AVERAGE SHARES OUTSTANDING DURING THE PERIOD.
F YEARS ENDED OCTOBER 31
G FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD
HAVE BEEN HIGHER.
H FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES.
I FOR FISCAL YEARS BEGINNING ON OR AFTER SEPTEMBER 1, 1995, A FUND IS
REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR
SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY
VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF
TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND
COMMISSION RATE STRUCTURES MAY DIFFER.
J NINE MONTHS ENDED JULY 31, 1997
K FOR THE PERIOD SEPTEMBER 3, 1996 (COMMENCEMENT OF SALE OF CLASS A
SHARES) TO OCTOBER 31, 1996
L AS OF OCTOBER 1, 1991, THE FUND DISCONTINUED THE USE OF EQUALIZATION
ACCOUNTING.
M NET INVESTMENT INCOME PER SHARE REFLECTS A SPECIAL DIVIDEND WHICH
AMOUNTED TO $.17 PER SHARE.
N FOR THE PERIOD DECEMBER 29, 1987, (COMMENCEMENT OF OPERATIONS) TO
OCTOBER 31, 1988
NATURAL RESOURCES CLASS B
SELECTED PER-SHARE
DATA AND RATIOS
YEARS ENDED JULY 31 1998 1997I 1996K 1995H
NET ASSET VALUE, $ 25.99 $ 24.88 $ 19.23 $ 18.87
BEGINNING OF PERIOD
INCOME FROM
INVESTMENT OPERATIONS
NET INVESTMENT (.09) (.12) (.15) (.03)
INCOME (LOSS)D
NET REALIZED AND (3.29) 2.80 6.49 .39
UNREALIZED GAIN (LOSS)
TOTAL FROM (3.38) 2.68 6.34 .36
INVESTMENT OPERATIONS
LESS DISTRIBUTIONS
FROM NET REALIZED (3.81) (1.57) (.69) --
GAIN
REDEMPTION FEES .01 -- -- --
ADDED TO PAID IN CAPITAL
NET ASSET VALUE, END $ 18.81 $ 25.99 $ 24.88 $ 19.23
OF PERIOD
TOTAL RETURNB,C (15.12)% 11.19% 33.87% 1.91%
NET ASSETS, END OF $ 44,351 $ 59,044 $ 36,106 $ 2,508
PERIOD (000 OMITTED)
RATIO OF EXPENSES TO 1.98% 2.04%A 2.28% 2.23%A,E
AVERAGE NET ASSETS
RATIO OF EXPENSES TO 1.94%F 2.02%A,F 2.24%F 2.21%A,F
AVERAGE NET ASSETS AFTER
EXPENSE REDUCTIONS
RATIO OF NET (.41)% (.67)%A (.68)% (.67)%A
INVESTMENT INCOME (LOSS) TO
AVERAGE NET ASSETS
PORTFOLIO TURNOVER 97% 116%A 137% 161%
AVERAGE COMMISSION $ .0185 $ .0286 $ .0337
RATEG
NATURAL RESOURCES CLASS C
SELECTED PER-SHARE DATA AND RATIOS
YEARS ENDED JULY 31 1998J
NET ASSET VALUE, BEGINNING OF PERIOD $ 24.39
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME (LOSS)D (.07)
NET REALIZED AND UNREALIZED GAIN (4.15)
(LOSS)
TOTAL FROM INVESTMENT OPERATIONS (4.22)
LESS DISTRIBUTIONS
FROM NET REALIZED GAIN (1.22)
REDEMPTION FEES ADDED TO PAID IN .01
CAPITAL
NET ASSET VALUE, END OF PERIOD $ 18.96
TOTAL RETURNB,C (17.72)%
NET ASSETS, END OF PERIOD (000 $ 2,972
OMITTED)
RATIO OF EXPENSES TO AVERAGE NET 2.50%A,E
ASSETS
RATIO OF EXPENSES TO AVERAGE NET 2.44%A,F
ASSETS AFTER EXPENSE REDUCTIONS
RATIO OF NET INVESTMENT INCOME (LOSS) (.48)%
TO AVERAGE NET ASSETS
PORTFOLIO TURNOVER 97%
AVERAGE COMMISSION RATEG $ .0185
A ANNUALIZED
B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
C TOTAL RETURNS DO NOT INCLUDE THE CONTINGENT DEFERRED SALES CHARGE
AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
D NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON
AVERAGE SHARES OUTSTANDING DURING THE PERIOD.
E FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD
HAVE BEEN HIGHER.
F FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES.
G FOR FISCAL YEARS BEGINNING ON OR AFTER SEPTEMBER 1, 1995, A FUND IS
REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR
SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY
FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF TRADES
EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION
RATE STRUCTURES MAY DIFFER.
H FOR THE PERIOD JULY 3, 1995 (COMMENCEMENT OF SALE OF CLASS B SHARES)
TO OCTOBER 31, 1995
I NINE MONTHS ENDED JULY 31, 1997
J FOR THE PERIOD NOVEMBER 3, 1997 (COMMENCEMENT OF SALE OF CLASS C
SHARES) TO JULY 31, 1998
K YEAR ENDED OCTOBER 31
TECHNOLOGY CLASS A
SELECTED PER-SHARE DATA AND RATIOS
YEARS ENDED JULY 31 1998 1997E
NET ASSET VALUE, BEGINNING OF PERIOD $ 15.96 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME (LOSS)D (.08) (.10)
NET REALIZED AND UNREALIZED GAIN .58 6.13
(LOSS)
TOTAL FROM INVESTMENT OPERATIONS .50 6.03
LESS DISTRIBUTIONS
FROM NET REALIZED GAIN (1.14) (.08)
IN EXCESS OF NET REALIZED GAIN (.45) --
TOTAL DISTRIBUTIONS (1.59) (.08)
REDEMPTION FEES ADDED TO PAID IN .01 .01
CAPITAL
NET ASSET VALUE, END OF PERIOD $ 14.88 $ 15.96
TOTAL RETURNB,C 4.20% 60.62%
NET ASSETS, END OF PERIOD (000 $ 15,414 $ 7,313
OMITTED)
RATIO OF EXPENSES TO AVERAGE NET 1.39% 1.75%A,F
ASSETS
RATIO OF EXPENSES TO AVERAGE NET 1.35%G 1.70%A,G
ASSETS AFTER EXPENSE REDUCTIONS
RATIO OF NET INVESTMENT INCOME (LOSS) (.59)% (.79)%A
TO AVERAGE NET ASSETS
PORTFOLIO TURNOVER 348% 517%A
AVERAGE COMMISSION RATEH $ .0418 $ .0415
TECHNOLOGY CLASS T
SELECTED PER-SHARE DATA AND RATIOS
YEARS ENDED JULY 31 1998 1997E
NET ASSET VALUE, BEGINNING OF PERIOD $ 15.91 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME (LOSS)D (.11) (.11)
NET REALIZED AND UNREALIZED GAIN .56 6.09
(LOSS)
TOTAL FROM INVESTMENT OPERATIONS .45 5.98
LESS DISTRIBUTIONS
FROM NET REALIZED GAIN (1.12) (.08)
IN EXCESS OF NET REALIZED GAIN (.45) --
TOTAL DISTRIBUTIONS (1.57) (.08)
REDEMPTION FEES ADDED TO PAID IN .01 .01
CAPITAL
NET ASSET VALUE, END OF PERIOD $ 14.80 $ 15.91
TOTAL RETURNB,C 3.85% 60.12%
NET ASSETS, END OF PERIOD (000 $ 90,499 $ 57,624
OMITTED)
RATIO OF EXPENSES TO AVERAGE NET 1.60% 1.92%A
ASSETS
RATIO OF EXPENSES TO AVERAGE NET 1.56%G 1.87%A,G
ASSETS AFTER EXPENSE REDUCTIONS
RATIO OF NET INVESTMENT INCOME (LOSS) (.80)% (.93)%A
TO AVERAGE NET ASSETS
PORTFOLIO TURNOVER 348% 517%A
AVERAGE COMMISSION RATEH $ .0418 $ .0415
A ANNUALIZED
B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
C TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR
PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
D NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON
AVERAGE SHARES OUTSTANDING DURING THE PERIOD.
E FOR THE PERIOD SEPTEMBER 3, 1996 (COMMENCEMENT OF SALE OF CLASS A
AND CLASS T SHARES) TO JULY 31, 1997
F FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD
HAVE BEEN HIGHER.
G FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES.
H A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE
FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY
VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF
TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND
COMMISSION RATE STRUCTURES MAY DIFFER.
TECHNOLOGY CLASS B
SELECTED PER-SHARE DATA AND RATIOS
YEARS ENDED JULY 31 1998 1997E
NET ASSET VALUE, BEGINNING OF PERIOD $ 15.88 $ 12.88
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME (LOSS)D (.20) (.08)
NET REALIZED AND UNREALIZED GAIN .57 3.08
(LOSS)
TOTAL FROM INVESTMENT OPERATIONS .37 3.00
LESS DISTRIBUTIONS
FROM NET REALIZED GAIN (1.13) --
IN EXCESS OF NET REALIZED GAIN (.45) --
TOTAL DISTRIBUTIONS (1.58) --
REDEMPTION FEES ADDED TO PAID IN .01 --
CAPITAL
NET ASSET VALUE, END OF PERIOD $ 14.68 $ 15.88
TOTAL RETURNB,C 3.27% 23.29%
NET ASSETS, END OF PERIOD (000 $ 31,041 $ 5,105
OMITTED)
RATIO OF EXPENSES TO AVERAGE NET 2.21% 2.50%A,G
ASSETS
RATIO OF EXPENSES TO AVERAGE NET 2.18%H 2.45%A,H
ASSETS AFTER EXPENSE REDUCTIONS
RATIO OF NET INVESTMENT INCOME (LOSS) (1.40)% (1.41)%A
TO AVERAGE NET ASSETS
PORTFOLIO TURNOVER 348% 517%A
AVERAGE COMMISSION RATEI $ .0418 $ .0415
TECHNOLOGY CLASS C
SELECTED PER-SHARE DATA AND RATIOS
YEARS ENDED JULY 31 1998F
NET ASSET VALUE, BEGINNING OF PERIOD $ 14.28
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME (LOSS)D (.17)
NET REALIZED AND UNREALIZED GAIN 1.27
(LOSS)
TOTAL FROM INVESTMENT OPERATIONS 1.10
LESS DISTRIBUTIONS
FROM NET REALIZED GAIN (.49)
IN EXCESS OF NET REALIZED GAIN (.20)
TOTAL DISTRIBUTIONS (.69)
REDEMPTION FEES ADDED TO PAID IN .01
CAPITAL
NET ASSET VALUE, END OF PERIOD $ 14.70
TOTAL RETURNB,C 8.96%
NET ASSETS, END OF PERIOD (000 $ 6,754
OMITTED)
RATIO OF EXPENSES TO AVERAGE NET 2.43%A
ASSETS
RATIO OF EXPENSES TO AVERAGE NET 2.41%A,H
ASSETS AFTER EXPENSE REDUCTIONS
RATIO OF NET INVESTMENT INCOME (LOSS) (1.64)%A
TO AVERAGE NET ASSETS
PORTFOLIO TURNOVER 348%
AVERAGE COMMISSION RATEI $ .0418
A ANNUALIZED
B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
C TOTAL RETURNS DO NOT INCLUDE THE CONTINGENT DEFERRED SALES CHARGE
AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
D NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON
AVERAGE SHARES OUTSTANDING DURING THE PERIOD.
E FOR THE PERIOD MARCH 3, 1997 (COMMENCEMENT OF SALE OF CLASS B
SHARES) TO JULY 31, 1997
F FOR THE PERIOD NOVEMBER 3, 1997 (COMMENCEMENT OF SALE OF CLASS C
SHARES) TO JULY 31, 1998
G FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD
HAVE BEEN HIGHER.
H FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES.
I A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE
FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY
VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF
TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND
COMMISSION RATE STRUCTURES MAY DIFFER.
UTILITIES GROWTH CLASS A
SELECTED PER-SHARE DATA AND RATIOS
YEARS ENDED JULY 31 1998 1997E
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.07 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME (LOSS)D (.02) .12
NET REALIZED AND UNREALIZED GAIN 4.19 3.09
(LOSS)
TOTAL FROM INVESTMENT OPERATIONS 4.17 3.21
LESS DISTRIBUTIONS
FROM NET INVESTMENT INCOME (.04)I (.03)
FROM NET REALIZED GAIN (1.21)I (.11)
TOTAL DISTRIBUTIONS (1.25) (.14)
REDEMPTION FEES ADDED TO PAID IN .01 --
CAPITAL
NET ASSET VALUE, END OF PERIOD $ 16.00 $ 13.07
TOTAL RETURNB,C 33.99% 32.36%
NET ASSETS, END OF PERIOD (000 $ 3,186 $ 531
OMITTED)
RATIO OF EXPENSES TO AVERAGE NET 1.75%F 1.75%A,F
ASSETS
RATIO OF EXPENSES TO AVERAGE NET 1.72%G 1.75%A
ASSETS AFTER EXPENSE REDUCTIONS
RATIO OF NET INVESTMENT INCOME (LOSS) (.11)% 1.09%A
TO AVERAGE NET ASSETS
PORTFOLIO TURNOVER 151% 13%A
AVERAGE COMMISSION RATEH $ .0298 $ .0162
UTILITIES GROWTH CLASS T
SELECTED PER-SHARE DATA AND RATIOS
YEARS ENDED JULY 31 1998 1997E
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.03 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME (LOSS)D (.04) .08
NET REALIZED AND UNREALIZED GAIN 4.17 3.09
(LOSS)
TOTAL FROM INVESTMENT OPERATIONS 4.13 3.17
LESS DISTRIBUTIONS
FROM NET INVESTMENT INCOME (.03) (.03)
FROM NET REALIZED GAIN (1.19) (.11)
TOTAL DISTRIBUTIONS (1.22) (.14)
REDEMPTION FEES ADDED TO PAID IN .01 --
CAPITAL
NET ASSET VALUE, END OF PERIOD $ 15.95 $ 13.03
TOTAL RETURNB,C 33.72% 31.96%
NET ASSETS, END OF PERIOD (000 $ 19,918 $ 7,085
OMITTED)
RATIO OF EXPENSES TO AVERAGE NET 1.94% 2.00%A,F
ASSETS
RATIO OF EXPENSES TO AVERAGE NET 1.90%G 2.00%A
ASSETS AFTER EXPENSE REDUCTIONS
RATIO OF NET INVESTMENT INCOME (LOSS) (.23)% .79%A
TO AVERAGE NET ASSETS
PORTFOLIO TURNOVER 151% 13%A
AVERAGE COMMISSION RATEH $ .0298 $ .0162
A ANNUALIZED
B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
C TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR
PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
D NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON
AVERAGE SHARES OUTSTANDING DURING THE PERIOD.
E FOR THE PERIOD SEPTEMBER 3, 1996 (COMMENCEMENT OF SALE OF CLASS A
AND CLASS T SHARES) TO JULY 31, 1997
F FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD
HAVE BEEN HIGHER.
G FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES.
H A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE
FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY
VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF
TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND
COMMISSION RATE STRUCTURES MAY DIFFER.
I THE AMOUNTS SHOWN REFLECT CERTAIN RECLASSIFICATIONS RELATED TO BOOK
TO TAX DIFFERENCES.
UTILITIES GROWTH CLASS B
SELECTED PER-SHARE DATA AND RATIOS
YEARS ENDED JULY 31 1998 1997E
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.01 $ 11.76
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME (LOSS)D (.13) .02
NET REALIZED AND UNREALIZED GAIN 4.16 1.23
(LOSS)
TOTAL FROM INVESTMENT OPERATIONS 4.03 1.25
LESS DISTRIBUTIONS
FROM NET INVESTMENT INCOME (.03)J --
FROM NET REALIZED GAIN (1.19)J --
TOTAL DISTRIBUTIONS (1.22) --
REDEMPTION FEES ADDED TO PAID IN .01 --
CAPITAL
NET ASSET VALUE, END OF PERIOD $ 15.83 $ 13.01
TOTAL RETURNB,C 32.97% 10.63%
NET ASSETS, END OF PERIOD (000 $ 12,919 $ 2,039
OMITTED)
RATIO OF EXPENSES TO AVERAGE NET 2.50%G 2.50%A,G
ASSETS
RATIO OF EXPENSES TO AVERAGE NET 2.47%H 2.50%A
ASSETS AFTER EXPENSE REDUCTIONS
RATIO OF NET INVESTMENT INCOME (LOSS) (.85)% .32%A
TO AVERAGE NET ASSETS
PORTFOLIO TURNOVER 151% 13%A
AVERAGE COMMISSION RATEI $ .0298 $ .0162
UTILITIES GROWTH CLASS C
SELECTED PER-SHARE DATA AND RATIOS
YEARS ENDED JULY 31 1998F
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.90
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME (LOSS)D (.10)
NET REALIZED AND UNREALIZED GAIN 3.16
(LOSS)
TOTAL FROM INVESTMENT OPERATIONS 3.06
LESS DISTRIBUTIONS
FROM NET INVESTMENT INCOME (.02)
FROM NET REALIZED GAIN (1.10)
TOTAL DISTRIBUTIONS (1.12)
REDEMPTION FEES ADDED TO PAID IN .01
CAPITAL
NET ASSET VALUE, END OF PERIOD $ 15.85
TOTAL RETURNB,C 23.60%
NET ASSETS, END OF PERIOD (000 $ 3,489
OMITTED)
RATIO OF EXPENSES TO AVERAGE NET 2.50%A,G
ASSETS
RATIO OF EXPENSES TO AVERAGE NET 2.48%A,H
ASSETS AFTER EXPENSE REDUCTIONS
RATIO OF NET INVESTMENT INCOME (LOSS) (.91)%A
TO AVERAGE NET ASSETS
PORTFOLIO TURNOVER 151%
AVERAGE COMMISSION RATEI $ .0298
A ANNUALIZED
B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
C TOTAL RETURNS DO NOT INCLUDE THE CONTINGENT DEFERRED SALES CHARGE
AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
D NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON
AVERAGE SHARES OUTSTANDING DURING THE PERIOD.
E FOR THE PERIOD MARCH 3, 1997 (COMMENCEMENT OF SALE OF CLASS B
SHARES) TO JULY 31, 1997
F FOR THE PERIOD NOVEMBER 3, 1997 (COMMENCEMENT OF SALE OF CLASS C
SHARES) TO JULY 31, 1998
G FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD
HAVE BEEN HIGHER.
H FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES.
I A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE
FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY
VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF
TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND
COMMISSION RATE STRUCTURES MAY DIFFER.
J THE AMOUNTS SHOWN REFLECT CERTAIN RECLASSIFICATIONS RELATED TO BOOK
TO TAX DIFFERENCES.
PERFORMANCE
Mutual fund performance is commonly measured as TOTAL RETURN. The
total returns that follow are based on historical fund results and do
not reflect the effect of taxes.
Each fund's fiscal year runs from August 1 through July 31. The tables
below show the performance of each class of each fund over past fiscal
years. The charts beginning on page present calendar year performance
for each class of each fund compared to different measures.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
CLASS A
AVERAGE ANNUAL TOTAL RETURN [A] CUMULATIVE TOTAL RETURN [A]
PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS/ PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS/
LIFE OF FUND(DAGGER) LIFE OF FUND(DAGGER)
CONSUMER 27.48% N/A 33.28% 27.48% N/A 72.96%
INDUSTRIES -
CLASS A
CONSUMER 20.15% N/A 29.21% 20.15% N/A 63.02%
INDUSTRIES -
CLASS A (LOAD
ADJ.)[B]
CYCLICAL 6.05% N/A 22.62% 6.05% N/A 47.54%
INDUSTRIES -
CLASS A
CYCLICAL -0.04% N/A 18.87% -0.04% N/A 39.05%
INDUSTRIES -
CLASS A (LOAD
ADJ.)[B]
FINANCIAL 26.32% N/A 40.48% 26.32% N/A 91.20%
SERVICES -
CLASS A
FINANCIAL 19.06% N/A 36.18% 19.06% N/A 80.20%
SERVICES -
CLASS A (LOAD
ADJ.)[B]
HEALTH CARE - 26.47% N/A 35.43% 26.47% N/A 78.32%
CLASS A
HEALTH CARE - 19.20% N/A 31.29% 19.20% N/A 68.07%
CLASS A (LOAD
ADJ.)[B]
NATURAL -14.61% 10.34% 12.84% -14.61% 63.54% 234.61%
RESOURCES -
CLASS A
NATURAL -19.52% 9.04% 12.17% -19.52% 54.13% 215.37%
RESOURCES -
CLASS A (LOAD
ADJ.)[B]
TECHNOLOGY - 4.20% N/A 31.00% 4.20% N/A 67.36%
CLASS A
TECHNOLOGY - -1.79% N/A 27.00% -1.79% N/A 57.74%
CLASS A (LOAD
ADJ.)[B]
UTILITIES GROWTH 33.99% N/A 35.05% 33.99% N/A 77.35%
- - CLASS A
UTILITIES GROWTH 26.29% N/A 30.92% 26.29% N/A 67.16%
- - CLASS A (LOAD
ADJ.)[B]
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
CLASS T
AVERAGE ANNUAL TOTAL RETURN [A] CUMULATIVE TOTAL RETURN [A]
PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS/ PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS/
LIFE OF FUND(DAGGER) LIFE OF FUND(DAGGER)
CONSUMER 26.93% N/A 32.76% 26.93% N/A 71.67%
INDUSTRIES -
CLASS T
CONSUMER 22.49% N/A 30.31% 22.49% N/A 65.67%
INDUSTRIES -
CLASS T (LOAD
ADJ.)[B]
CYCLICAL 5.91% N/A 22.40% 5.91% N/A 47.02%
INDUSTRIES -
CLASS T
CYCLICAL 2.20% N/A 20.13% 2.20% N/A 41.87%
INDUSTRIES -
CLASS T (LOAD
ADJ.)[B]
FINANCIAL 25.96% N/A 40.07% 25.96% N/A 90.14%
SERVICES -
CLASS T
FINANCIAL 21.55% N/A 37.48% 21.55% N/A 83.48%
SERVICES -
CLASS T (LOAD
ADJ.)[B]
HEALTH CARE - 26.17% N/A 35.01% 26.17% N/A 77.26%
CLASS T
HEALTH CARE - 21.75% N/A 32.51% 21.75% N/A 71.06%
CLASS T (LOAD
ADJ.)[B]
NATURAL -14.69% 10.36% 12.85% -14.69% 63.69% 234.92%
RESOURCES -
CLASS T
NATURAL -17.68% 9.57% 12.45% -17.68% 57.96% 223.20%
RESOURCES -
CLASS T (LOAD
ADJ.)[B]
TECHNOLOGY - 3.85% N/A 30.56% 3.85% N/A 66.28%
CLASS T
TECHNOLOGY - 0.22% N/A 28.14% 0.22% N/A 60.46%
CLASS T (LOAD
ADJ.)[B]
UTILITIES GROWTH 33.72% N/A 34.69% 33.72% N/A 76.45%
- - CLASS T
UTILITIES GROWTH 29.04% N/A 32.19% 29.04% N/A 70.27%
- - CLASS T (LOAD
ADJ.)[B]
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
CLASS B
AVERAGE ANNUAL TOTAL RETURN [A] CUMULATIVE TOTAL RETURN [A]
PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS/ PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS/
LIFE OF FUND(DAGGER) LIFE OF FUND(DAGGER)
CONSUMER 26.30% N/A 32.26% 26.30% N/A 70.44%
INDUSTRIES -
CLASS B
CONSUMER 21.30% N/A 30.62% 21.30% N/A 66.44%
INDUSTRIES -
CLASS B (LOAD
ADJ.)[C]
CYCLICAL 5.23% N/A 21.89% 5.23% N/A 45.86%
INDUSTRIES -
CLASS B
CYCLICAL 0.36% N/A 20.12% 0.36% N/A 41.86%
INDUSTRIES -
CLASS B (LOAD
ADJ.)[C]
FINANCIAL 25.29% N/A 39.53% 25.29% N/A 88.75%
SERVICES -
CLASS B
FINANCIAL 20.29% N/A 37.97% 20.29% N/A 84.75%
SERVICES -
CLASS B (LOAD
ADJ.)[C]
HEALTH CARE - 25.40% N/A 34.38% 25.40% N/A 75.69%
CLASS B
HEALTH CARE - 20.40% N/A 32.77% 20.40% N/A 71.69%
CLASS B (LOAD
ADJ.)[C]
NATURAL -15.12% 9.95% 12.64% -15.12% 60.70% 228.80%
RESOURCES -
CLASS B
NATURAL -18.74% 9.68% 12.64% -18.74% 58.70% 228.80%
RESOURCES -
CLASS B (LOAD
ADJ.)[C]
TECHNOLOGY - 3.27% N/A 30.04% 3.27% N/A 65.03%
CLASS B
TECHNOLOGY - -1.36% N/A 28.38% -1.36% N/A 61.03%
CLASS B (LOAD
ADJ.)[C]
UTILITIES GROWTH 32.97% N/A 34.18% 32.97% N/A 75.20%
- - CLASS B
UTILITIES GROWTH 27.97% N/A 32.57% 27.97% N/A 71.20%
- - CLASS B (LOAD
ADJ.)[C]
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
CLASS C
AVERAGE ANNUAL TOTAL RETURN [A] CUMULATIVE TOTAL RETURN [A]
PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS/ PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS/
LIFE OF FUND(DAGGER) LIFE OF FUND(DAGGER)
CONSUMER 26.32% N/A 32.27% 26.32% N/A 70.47%
INDUSTRIES -
CLASS C
CONSUMER 25.32% N/A 32.27% 25.32% N/A 70.47%
INDUSTRIES -
CLASS C (LOAD
ADJ.)[C]
CYCLICAL 5.19% N/A 21.86% 5.19% N/A 45.80%
INDUSTRIES -
CLASS C
CYCLICAL 4.19% N/A 21.86% 4.19% N/A 45.80%
INDUSTRIES -
CLASS C (LOAD
ADJ.)[C]
FINANCIAL 25.14% N/A 39.44% 25.14% N/A 88.52%
SERVICES -
CLASS C
FINANCIAL 24.14% N/A 39.44% 24.14% N/A 88.52%
SERVICES -
CLASS C (LOAD
ADJ.)[C]
HEALTH CARE - 25.18% N/A 34.26% 25.18% N/A 75.38%
CLASS C
HEALTH CARE - 24.18% N/A 34.26% 24.18% N/A 75.38%
CLASS C (LOAD
ADJ.)[C]
NATURAL -15.42% 9.87% 12.60% -15.42% 60.13% 227.63%
RESOURCES -
CLASS C
NATURAL -16.22% 9.87% 12.60% -16.22% 60.13% 227.63%
RESOURCES -
CLASS C (LOAD
ADJ.)[C]
TECHNOLOGY - 3.12% N/A 29.95% 3.12% N/A 64.81%
CLASS C
TECHNOLOGY - 2.15% N/A 29.95% 2.15% N/A 64.81%
CLASS C (LOAD
ADJ.)[C]
UTILITIES GROWTH 33.02% N/A 34.21% 33.02% N/A 75.25%
- - CLASS C
UTILITIES GROWTH 32.02% N/A 34.21% 32.02% N/A 75.25%
- - CLASS C (LOAD
ADJ.)[C]
</TABLE>
(dagger) FOR EACH FUND (EXCEPT NATURAL RESOURCES), LIFE OF FUND
FIGURES ARE FROM COMMENCEMENT OF OPERATIONS (SEPTEMBER 3, 1996)
THROUGH THE PERIOD ENDED JULY 31, 1998.
[A] INITIAL OFFERING OF CLASS A OF EACH FUND TOOK PLACE ON SEPTEMBER
3, 1996. FOR NATURAL RESOURCES, CLASS A RETURNS PRIOR TO SEPTEMBER 3,
1996 ARE THOSE OF CLASS T WHICH REFLECT A 12B-1 FEE OF 0.50% (0.65%
PRIOR TO JANUARY 1, 1996). IF CLASS A'S 12B-1 FEE HAD BEEN REFLECTED,
TOTAL RETURNS PRIOR TO SEPTEMBER 3, 1996 WOULD HAVE BEEN HIGHER.
INITIAL OFFERING OF CLASS B OF EACH FUND (EXCEPT NATURAL RESOURCES)
TOOK PLACE ON MARCH 3, 1997. CLASS B RETURNS PRIOR TO MARCH 3, 1997
ARE THOSE OF CLASS T WHICH REFLECT A 12B-1 FEE OF 0.50%. IF CLASS B'S
12B-1 FEE HAD BEEN REFLECTED, TOTAL RETURNS PRIOR TO MARCH 3, 1997
WOULD HAVE BEEN LOWER.
INITIAL OFFERING OF CLASS B OF NATURAL RESOURCES TOOK PLACE ON JULY
3, 1995. CLASS B RETURNS PRIOR TO JULY 3, 1995 ARE THOSE OF CLASS T
WHICH REFLECT A 12B-1 FEE OF 0.65%. IF CLASS B'S 12B-1 FEE HAD BEEN
REFLECTED, TOTAL RETURNS PRIOR TO JULY 3, 1995 WOULD HAVE BEEN LOWER.
INITIAL OFFERING OF CLASS C OF EACH FUND TOOK PLACE ON NOVEMBER 3,
1997.CLASS C RETURNS FOR EACH FUND (EXCEPT NATURAL RESOURCES) FROM
NOVEMBER 3, 1997 THROUGH MARCH 3, 1997 ARE THOSE OF CLASS B WHICH
REFLECT A 12B-1 FEE OF 1.00%. CLASS C RETURNS PRIOR TO MARCH 3, 1997
ARE THOSE OF CLASS T WHICH REFLECT A 12B-1 FEE OF 0.50%. IF CLASS C'S
12B-1 FEE HAD BEEN REFLECTED, TOTAL RETURNS PRIOR TO MARCH 3, 1997
WOULD HAVE BEEN LOWER. CLASS C RETURNS FOR NATURAL RESOURCES FROM
NOVEMBER 3, 1997 THROUGH JULY 3, 1995 ARE THOSE OF CLASS B WHICH
REFLECT A 12B-1 FEE OF 1.00%. CLASS C RETURNS PRIOR TO JULY 3, 1995
ARE THOSE OF CLASS T WHICH REFLECT A 12B-1 FEE OF 0.65%. IF CLASS C'S
12B-1 FEE HAD BEEN REFLECTED, TOTAL RETURNS PRIOR TO JULY 3, 1995
WOULD HAVE BEEN LOWER.
[B] LOAD ADJUSTED RETURNS FOR CLASS A SHARES INCLUDE THE EFFECT OF
PAYING CLASS A'S MAXIMUM 5.75% FRONT-END SALES CHARGE. LOAD ADJUSTED
RETURNS FOR CLASS T SHARES INCLUDE THE EFFECT OF CLASS T'S MAXIMUM
3.50% FRONT-END SALES CHARGE.
[C] LOAD ADJUSTED RETURNS FOR CLASS B AND CLASS C ARE CALCULATED
PURSUANT TO THE CDSC INFORMATION FOUND ON PAGE .
The exclusion of any applicable sales charge from a performance
calculation produces a higher return.
If FMR had not reimbursed certain class expenses during these periods,
total returns would have been lower.
EXPLANATION OF TERMS
TOTAL RETURN is the change in value of an investment over a given
period, assuming reinvestment of any dividends and capital gains. A
CUMULATIVE TOTAL RETURN reflects actual performance over a stated
period of time. An AVERAGE ANNUAL TOTAL RETURN is a hypothetical rate
of return that, if achieved annually, would have produced the same
cumulative total return if performance had been constant over the
entire period. Average annual total returns smooth out variations in
performance; they are not the same as actual year-by-year results.
Average annual and cumulative total returns usually will include the
effect of paying the maximum applicable sales charge.
STANDARD & POOR'S 500 INDEX (S&P 500(registered trademark)) is a
widely recognized, unmanaged index of common stocks.
Unlike each class's returns, the total returns of each comparative
index do not include the effect of any brokerage commissions,
transaction fees, or other costs of investing.
THE CONSUMER PRICE INDEX is a widely recognized measure of inflation
calculated by the U.S. Government.
GOLDMAN SACHS CONSUMER INDUSTRIES INDEX is a market
capitalization-weighted index of 300 stocks designed to measure the
performance of companies in the consumer industries sector.
GOLDMAN SACHS CYCLICAL INDUSTRIES INDEX is a market
capitalization-weighted index of 277 stocks designed to measure the
performance of companies in the cyclical industries sector.
GOLDMAN SACHS FINANCIAL SERVICES INDEX is a market
capitalization-weighted index of 271 stocks designed to measure the
performance of companies in the financial services sector.
GOLDMAN SACHS HEALTH CARE INDEX is a market capitalization-weighted
index of 93 stocks designed to measure the performance of companies in
the health care sector.
GOLDMAN SACHS NATURAL RESOURCES INDEX is a market
capitalization-weighted index of 96 stocks designed to measure the
performance of companies in the natural resource sector.
GOLDMAN SACHS TECHNOLOGY INDEX is a market capitalization-weighted
index of 190 stocks designed to measure the performance of companies
in the technology sector.
GOLDMAN SACHS UTILITIES INDEX is a market capitalization-weighted
index of 136 stocks designed to measure the performance of companies
in the utilities sector.
Other illustrations of fund performance may show moving averages over
specified periods.
The funds' recent strategies, performance, and holdings are detailed
twice a year in financial reports, which are sent to all shareholders.
For current performance or a free annual report, please contact your
investment professional or, if you are investing through a
broker-dealer or insurance representative, call 1-800-522-7297 or, if
you are investing through a bank representative, call 1-800-843-3001.
TOTAL RETURNS ARE BASED ON PAST RESULTS AND ARE NOT AN INDICATION OF
FUTURE PERFORMANCE.
THE FUNDS IN DETAIL
CHARTER
EACH FUND IS A MUTUAL FUND: an investment that pools shareholders'
money and invests it toward a specified goal. Financial Services is a
diversified fund, and Consumer Industries, Cyclical Industries, Health
Care, Natural Resources, Technology, and Utilities Growth are
non-diversified funds of Fidelity Advisor Series VII, an open-end
management investment company organized as a Massachusetts business
trust on March 21, 1980.
EACH FUND IS GOVERNED BY A BOARD OF TRUSTEES which is responsible for
protecting the interests of shareholders. The trustees are experienced
executives who meet periodically throughout the year to oversee the
funds' activities, review contractual arrangements with companies that
provide services to the funds, and review the funds' performance. The
trustees serve as trustees for other Fidelity funds. The majority of
trustees are not otherwise affiliated with Fidelity.
THE FUNDS MAY HOLD SPECIAL SHAREHOLDER MEETINGS AND MAIL PROXY
MATERIALS. These meetings may be called to elect or remove trustees,
change fundamental policies, approve a management contract, or for
other purposes. Shareholders not attending these meetings are
encouraged to vote by proxy. The transfer agent will mail proxy
materials in advance, including a voting card and information about
the proposals to be voted on. The number of votes you are entitled to
is based upon the dollar value of your investment.
Separate votes are taken by each class of shares, fund, or trust, if a
matter affects just that class of shares, fund, or trust,
respectively.
FMR AND ITS AFFILIATES
Fidelity Investments(registered trademark) is one of the largest
investment management organizations in the United States and has its
principal business address at 82 Devonshire Street, Boston,
Massachusetts 02109. It includes a number of different subsidiaries
and divisions which provide a variety of financial services and
products. The funds employ various Fidelity companies to perform
activities required for their operation.
The funds are managed by FMR which chooses the funds' investments and
handles their business affairs.
Affiliates assist FMR with foreign investments:
(small solid bullet) Fidelity Management & Research (U.K.) Inc. (FMR
U.K.), in London, England, serves as a sub-adviser for each fund.
(small solid bullet) Fidelity Management & Research Far East Inc. (FMR
Far East), in Tokyo, Japan, serves as a sub-adviser for each fund.
As of July 31, 1998, FMR advised funds having approximately 38 million
shareholder accounts with a total value of more than $611 billion.
Douglas Chase is manager of Advisor Consumer Industries, which he has
managed since August 1997. He also manages other Fidelity funds. Mr.
Chase joined Fidelity as an equity analyst in 1993 after receiving his
MBA from the University of Michigan.
Albert Ruback is manager of Advisor Cyclical Industries, which he has
managed since September 1996. Previously, he managed other Fidelity
funds. Mr. Ruback joined Fidelity as an analyst in 1991, after
receiving his MBA from Harvard Business School.
Robert Ewing is manager of Advisor Financial Services, which he has
managed since January 1998. He also manages another Fidelity fund.
Since joining Fidelity in 1990, Mr. Ewing has worked as a research
associate, analyst and manager.
Beso Sikharulidze is manager of Advisor Health Care, which he has
managed since June 1997. He also manages another Fidelity fund. Mr.
Sikharulidze joined Fidelity as an analyst in 1992, after receiving
his MBA from Harvard University.
Lawrence Rakers is manager of Advisor Natural Resources, which he has
managed since January 1997. He also manages other Fidelity funds. Mr.
Rakers joined Fidelity as an analyst in 1993. Previously, he was a
project engineer for Loral Corporation from 1986 to 1993.
Michael Tempero is manager of Advisor Technology, which he has managed
since July 1998. He also manages another Fidelity fund. Mr. Tempero
joined Fidelity as an analyst in 1993, after receiving his MBA from
the University of Chicago.
Nick Thakore is manager of Advisor Utilities Growth, which he has
managed since August 1997. He also manages other Fidelity funds. Mr.
Thakore joined Fidelity in 1993 as an analyst, after receiving his MBA
from The Wharton School at the University of Pennsylvania.
Fidelity investment personnel may invest in securities for their own
accounts pursuant to a code of ethics that establishes procedures for
personal investing and restricts certain transactions.
FDC distributes and markets Fidelity's funds and services.
Fidelity Investments Institutional Operations Company, Inc. (FIIOC)
performs transfer agent servicing functions for each class of each
fund.
FMR Corp. is the ultimate parent company of FMR, FMR U.K., and FMR Far
East. Members of the Edward C. Johnson 3d family are the predominant
owners of a class of shares of common stock representing approximately
49% of the voting power of FMR Corp. Under the Investment Company Act
of 1940 (the 1940 Act), control of a company is presumed where one
individual or group of individuals owns more than 25% of the voting
stock of that company; therefore, the Johnson family may be deemed
under the 1940 Act to form a controlling group with respect to FMR
Corp.
As of July 31, 1998, approximately 27% of Advisor Cyclical Industries
Fund's total outstanding shares were held by FMR.
FMR may allocate brokerage transactions to its broker-dealer
affiliates and in a manner that takes into account the sale of shares
of Fidelity Advisor Funds , provided that the fund receives
brokerage services and commission rates comparable to those of other
broker-dealers.
INVESTMENT PRINCIPLES AND RISKS
Each fund concentrates its investments in the securities of companies
in a particular market sector. FMR normally invests at least 80% of
each fund's assets in securities of companies principally engaged in
the business activities of its named market sector. For this purpose,
Natural Resources treats investments in precious metals and
instruments whose value is linked to the price of precious metals as
investments in its named market sector. The funds will invest
primarily in equity securities, although they may invest in other
types of instruments as well.
The funds may involve significantly greater risks and therefore may
experience greater volatility than a mutual fund that does not
concentrate its investments. Because of the funds' narrow focus, each
fund's performance is closely tied to and affected by industries
within its market sector. Companies in an industry are often faced
with the same obstacles, issues, or regulatory burdens, and their
securities may react similarly and move in unison with these or other
market conditions. Also, because the funds (except Financial Services)
are non-diversified, they are further exposed to increased volatility.
Non-diversified funds may have greater investments in a single issuer
than diversified funds, so the performance of a single issuer can have
a substantial impact on a fund's share price. Finally, the funds'
strategies in seeking to achieve their investment objectives may lead
to investments in smaller companies. Securities of smaller companies,
especially those whose business involves emerging products or
concepts, may be more volatile due to their limited product lines,
markets, or financial resources, or their susceptibility to major
setbacks or downturns.
The value of the funds' investments varies in response to many
factors. Stock values fluctuate in response to the activities of
individual companies and general market and economic conditions.
Investments in foreign securities may involve risks in addition to
those of U.S. investments, including increased political and economic
risk, as well as exposure to currency fluctuations.
FMR may use various investment techniques to hedge a portion of a
fund's risks, but there is no guarantee that these strategies will
work as FMR intends. When you sell your shares of a fund, they may be
worth more or less than what you paid for them.
FMR normally invests each fund's assets according to its investment
strategy. Each fund also reserves the right to invest without
limitation in preferred stocks and investment-grade debt instruments
for temporary, defensive purposes.
CONSUMER INDUSTRIES FUND seeks capital appreciation.
The fund invests primarily in companies engaged in the manufacture and
distribution of goods to consumers both domestically and
internationally. These companies may include, for example, companies
that manufacture or sell durable goods such as homes, cars, boats,
major appliances, and personal computers. The fund may also invest in
companies that manufacture, wholesale or retail non-durable goods such
as food, beverages, tobacco, health care products, household and
personal care products, apparel, and entertainment products (e.g.,
books, magazines, TV, cable, movies, music, gaming, sports). In
addition, the fund may invest in companies that provide consumer
products and services such as lodging, childcare, convenience stores
and car rentals.
The success of consumer product manufacturers and retailers is closely
tied to the performance of the overall economy, interest rates,
competition, and consumer confidence. Success depends heavily on
disposable household income and consumer spending. Changes in
demographics and consumer tastes can also affect the demand for, and
success of, consumer products in the marketplace.
CYCLICAL INDUSTRIES FUND seeks capital appreciation.
The fund invests primarily in companies engaged in the research,
development, manufacture, distribution, supply, or sale of materials,
equipment, products or services related to cyclical industries. These
may include the automotive, chemical, construction and housing,
defense and aerospace, environmental services, industrial equipment
and materials, paper and forest products, and transportation
industries.
Many companies in these industries are significantly affected by
general economic trends including employment, economic growth, and
interest rates. Other factors that may affect these industries are
changes in consumer sentiment and spending, commodity prices,
legislation, government regulation and spending, import controls, and
worldwide competition. At times, worldwide production of these
materials used in cyclical industries has exceeded demand as a result
of, for example, over-building or economic downturns. During these
times, commodity price declines and unit volume reductions resulted in
poor investment returns and losses. Furthermore, a company in the
cyclical industries may be subject to liability for environmental
damage, depletion of resources, and mandated expenditures for safety
and pollution control.
FINANCIAL SERVICES FUND seeks capital appreciation.
The fund invests primarily in companies that provide financial
services to consumers and industry. Examples of companies in the
financial services sector include commercial banks, savings and loan
associations, brokerage companies, insurance companies, real estate
and leasing companies, and companies that span across these segments.
Under SEC regulations, the fund may not invest more than 5% of its
total assets in the equity securities of any company that derives more
than 15% of its revenues from brokerage or investment management
activities.
Financial services companies are subject to extensive governmental
regulation which may limit both the amounts and types of loans and
other financial commitments they can make, and the interest rates and
fees they can charge. Profitability is largely dependent on the
availability and cost of capital funds, and can fluctuate
significantly when interest rates change. Credit losses resulting from
financial difficulties of borrowers can negatively impact the sector.
Insurance companies may be subject to severe price competition.
Legislation is currently being considered which would reduce the
separation between commercial and investment banking businesses. If
enacted, it could significantly impact the sector and the fund.
HEALTH CARE FUND seeks capital appreciation.
The fund invests primarily in companies engaged in the design,
manufacture, or sale of products or services used for or in connection
with health care or medicine. Companies in the health care sector may
include, for example, pharmaceutical companies, companies involved in
research and development, companies involved in the operation of
health care facilities, and other companies involved in the design,
manufacture, or sale of related products or services.
Many of these companies are subject to government regulation and
approval of their products and services, which could have a
significant effect on their price and availability. Furthermore, the
types of products or services produced or provided by these companies
may quickly become obsolete.
NATURAL RESOURCES FUND seeks long-term growth of capital and
protection of the purchasing power of shareholders' capital by
investing primarily in securities of foreign and domestic companies
that own or develop natural resources, or supply goods and services to
such companies, or in physical commodities.
The fund invests primarily in companies that own or develop natural
resources, or supply goods and services to such companies. These may
include companies involved either directly or through subsidiaries in
exploring, mining, refining, processing, transporting, fabricating,
dealing in, or owning natural resources. Natural resources include
precious metals (e.g., gold, platinum and silver), ferrous and
nonferrous metals (e.g., iron, aluminum and copper), strategic metals
(e.g., uranium and titanium), hydrocarbons (e.g., coal, oil and
natural gases), chemicals, forest products, real estate, food, textile
and tobacco products, and other basic commodities. The fund may also
invest in precious metals and instruments whose value is linked to the
price of precious metals.
Securities of companies in the natural resources sector are subject to
swift price and supply fluctuations that may be caused by events
relating to international political and economic developments, energy
conservation, the success of exploration projects, and tax and other
governmental regulatory policies. Investments in precious metals can
present concerns such as delivery, storage and maintenance, possible
illiquidity and the unavailability of accurate market valuations.
TECHNOLOGY FUND seeks capital appreciation.
The fund invests primarily in companies which have or will develop,
products, processes, or services that will provide or will benefit
significantly from technological advances and improvements. These
companies may include, for example, companies that develop, produce or
distribute products or services in the computer, semi-conductor,
electronics, communications, health care, and biotechnology sectors.
Competitive pressures may have a significant effect on the financial
condition of companies in the technology sector. For example, if
technology continues to advance at an accelerated rate, and the number
of companies and product offerings continues to expand, these
companies could become increasingly sensitive to short product cycles
and aggressive pricing.
UTILITIES GROWTH FUND seeks capital appreciation.
The fund invests primarily in companies in the public utilities
industry and companies deriving a majority of their revenues from
their public utility operations. These may include, for example,
companies that manufacture, produce, sell, or transmit gas or electric
energy; water supply, waste disposal and sewerage, sanitary service
companies; and companies involved in telephone, satellite, and other
communication fields.
Public utility stocks have traditionally produced above-average
dividend income, but the fund's investments are based on growth
potential. The fund may not own more than 5% of the outstanding voting
securities of more than one public utility company as defined by the
Public Utility Holding Company Act of 1935. The public utilities
industries may be subject to broad risks resulting from governmental
regulation, financing difficulties, supply and demand of services or
fuel, and special risks associated with natural resource conservation.
SECURITIES AND INVESTMENT PRACTICES
The following pages contain more detailed information about types of
instruments in which a fund may invest, strategies FMR may employ in
pursuit of a fund's investment objective, and a summary of related
risks. Any restrictions listed supplement those discussed earlier in
this section. A complete listing of each fund's limitations and more
detailed information about each fund's investments are contained in
the funds' SAI. Policies and limitations are considered at the time of
purchase; the sale of instruments is not required in the event of a
subsequent change in circumstances.
FMR may not buy all of these instruments or use all of these
techniques unless it believes that they are consistent with a fund's
investment objective and policies and that doing so will help a fund
achieve its goal. Fund holdings and recent investment strategies are
detailed in each fund's financial reports, which are sent to
shareholders twice a year. For a free SAI or financial report, call
your investment professional.
EQUITY SECURITIES may include common stocks, preferred stocks,
convertible securities, and warrants. Common stocks, the most familiar
type, represent an equity (ownership) interest in a corporation.
Although equity securities have a history of long-term growth in
value, their prices fluctuate based on changes in a company's
financial condition and on overall market and economic conditions.
Smaller companies are especially sensitive to these factors.
RESTRICTIONS: With respect to 75% of its total assets, Financial
Services may not invest in more than 10% of the outstanding voting
securities of a single issuer. This limitation does not apply to
securities of other investment companies.
Utilities Growth may not invest in more than 5% of the outstanding
voting securities of more than one public utility company as defined
by the Public Utility Holding Company Act of 1935.
Financial Services may not invest more than 5% of its total assets in
the equity securities of any company that derives more than 15% of its
revenues from brokerage or investment management activities.
DEBT SECURITIES. Bonds and other debt instruments are used by issuers
to borrow money from investors. The issuer generally pays the investor
a fixed, variable, or floating rate of interest, and must repay the
amount borrowed at maturity. Some debt securities, such as zero coupon
bonds, do not pay current interest, but are sold at a discount from
their face values.
Debt securities have varying levels of sensitivity to changes in
interest rates and varying degrees of credit quality. In general, bond
prices rise when interest rates fall, and fall when interest rates
rise. Longer-term bonds and zero coupon bonds are generally more
sensitive to interest rate changes.
In addition, bond prices are also affected by the credit quality of
the issuer. Investment-grade debt securities are medium- and
high-quality securities. Some, however, may possess speculative
characteristics, and may be more sensitive to economic changes and to
changes in the financial condition of issuers.
RESTRICTIONS: Purchase of a debt security is consistent with a fund's
debt quality policy if it is rated at or above the stated level by
Moody's Investors Service or rated in the equivalent categories by
Standard & Poor's, or is unrated but judged to be of equivalent
quality by FMR.
Each fund currently intends to limit its investments in lower than
Baa-quality debt securities (sometimes called "junk bonds") to 5% of
its assets.
EXPOSURE TO FOREIGN MARKETS. Foreign securities, foreign currencies,
and securities issued by U.S. entities with substantial foreign
operations may involve additional risks and considerations. These
include risks relating to political, economic, or regulatory
conditions in foreign countries; fluctuations in foreign currencies;
withholding or other taxes; trading, settlement, custodial, and other
operational risks; and the potentially less stringent investor
protection and disclosure standards of foreign markets. Additionally,
governmental issuers of foreign debt securities may be unwilling to
pay interest and repay principal when due and may require that the
conditions for payment be renegotiated. All of these factors can make
foreign investments, especially those in emerging markets, more
volatile and potentially less liquid than U.S. investments.
REPURCHASE AGREEMENTS. In a repurchase agreement, a fund buys a
security at one price and simultaneously agrees to sell it back at a
higher price. Delays or losses could result if the other party to the
agreement defaults or becomes insolvent.
ADJUSTING INVESTMENT EXPOSURE. A fund can use various techniques to
increase or decrease its exposure to changing security prices,
interest rates, currency exchange rates, commodity prices, or other
factors that affect security values. These techniques may involve
derivative transactions such as buying and selling options and futures
contracts, entering into currency exchange contracts or swap
agreements, and purchasing indexed securities.
FMR can use these practices to adjust the risk and return
characteristics of a fund's portfolio of investments. If FMR judges
market conditions incorrectly or employs a strategy that does not
correlate well with a fund's investments, these techniques could
result in a loss, regardless of whether the intent was to reduce risk
or increase return. These techniques may increase the volatility of a
fund and may involve a small investment of cash relative to the
magnitude of the risk assumed. In addition, these techniques could
result in a loss if the counterparty to the transaction does not
perform as promised.
ILLIQUID AND RESTRICTED SECURITIES. Some investments may be determined
by FMR, under the supervision of the Board of Trustees, to be
illiquid, which means that they may be difficult to sell promptly at
an acceptable price. The sale of some illiquid securities, and some
other securities, may be subject to legal restrictions. Difficulty in
selling securities may result in a loss or may be costly to a fund.
RESTRICTIONS: Each fund may not invest more than 10% of its assets in
illiquid securities.
OTHER INSTRUMENTS may include real estate-related instruments.
CASH MANAGEMENT. A fund may invest in money market securities, in
repurchase agreements, and in a money market fund available only to
funds and accounts managed by FMR or its affiliates, whose goal is to
seek a high level of current income while maintaining a stable $1.00
share price. A major change in interest rates or a default on the
money market fund's investments could cause its share price to change.
DIVERSIFICATION. Diversifying a fund's investment portfolio can reduce
the risks of investing. This may include limiting the amount of money
invested in any one issuer or, on a broader scale, in any one
industry. Economic, business, or political changes can affect all
securities of a similar type. A fund that is not diversified may be
more sensitive to changes in the market value of a single issuer or
industry.
RESTRICTIONS: Each fund, except Financial Services, is considered
non-diversified. Generally, to meet federal tax requirements at the
close of each quarter, each fund (except Financial Services) does not
invest more than 25% of its total assets in the securities of any one
issuer and, with respect to 50% of total assets, does not invest more
than 5% of its total assets in the securities of any one issuer. With
respect to 75% of its total assets, Financial Services may not invest
more than 5% in the securities of any one issuer. These limitations do
not apply to U.S. Government securities or to securities of other
investment companies.
Each fund normally invests at least 80% of its assets, but always
invests at least 25% of its total assets, in securities of companies
principally engaged in the business activities of the industries in
the market sector identified for the fund.
BORROWING. Each fund may borrow from banks or from other funds advised
by FMR or its affiliates, or through reverse repurchase agreements. If
a fund borrows money, its share price may be subject to greater
fluctuation until the borrowing is paid off. If a fund makes
additional investments while borrowings are outstanding, this may be
considered a form of leverage.
RESTRICTIONS: Each fund may borrow only for temporary or emergency
purposes, but not in an amount exceeding 331/3% of its total assets.
LENDING securities to broker-dealers and institutions, including
Fidelity Brokerage Services, Inc. (FBSI), an affiliate of FMR, is a
means of earning income. This practice could result in a loss or a
delay in recovering a fund's securities. A fund may also lend money to
other funds advised by FMR or its affiliates.
RESTRICTIONS: Loans, in the aggregate, may not exceed 331/3% of a
fund's total assets.
FUNDAMENTAL INVESTMENT POLICIES AND RESTRICTIONS
Some of the policies and restrictions discussed on the preceding pages
are fundamental, that is, subject to change only by shareholder
approval. The following paragraphs restate all those that are
fundamental. All policies stated throughout this prospectus, other
than those identified in the following paragraphs, can be changed
without shareholder approval.
CONSUMER INDUSTRIES FUND invests primarily in companies engaged in the
manufacture and distribution of goods to consumers both domestically
and internationally.
CYCLICAL INDUSTRIES FUND invests primarily in companies engaged in the
research, development, manufacture, distribution, supply or sale of
materials, equipment, products or services related to cyclical
industries.
FINANCIAL SERVICES FUND invests primarily in companies providing
financial services to consumers and industry.
HEALTH CARE FUND invests primarily in companies engaged in the design,
manufacture, or sale of products or services used for or in connection
with health care or medicine.
NATURAL RESOURCES FUND seeks long-term growth of capital and
protection of the purchasing power of shareholders' capital by
investing primarily in securities of foreign and domestic companies
that own or develop natural resources, or supply goods and services to
such companies, or in physical commodities.
TECHNOLOGY FUND invests primarily in companies which have, or will
develop, products, processes or services that will provide or will
benefit significantly from technological advances and improvements.
UTILITIES GROWTH FUND invests primarily in companies in the public
utilities industry and companies deriving a majority of their revenues
from their public utility operations.
EACH FUND (except Natural Resources) seeks capital appreciation.
With respect to 75% of total assets, Financial Services may not invest
more than 5% in the securities of any one issuer and may not invest in
more than 10% of the outstanding voting securities of a single issuer.
These limitations do not apply to U.S. Government securities or to
securities of other investment companies.
Each fund invests at least 25% of its total assets in securities of
companies principally engaged in the business activities of the
industries in the market sector identified for the fund.
Each fund may borrow only for temporary or emergency purposes, but not
in an amount exceeding 331/3% of its total assets.
Loans, in the aggregate, may not exceed 331/3% of each fund's total
assets.
BREAKDOWN OF EXPENSES
Like all mutual funds, the funds pay fees related to their daily
operations. Expenses paid out of each class's assets are reflected in
that class's share price or dividends; they are neither billed
directly to shareholders nor deducted from shareholder accounts.
Each fund pays a MANAGEMENT FEE to FMR for managing its investments
and business affairs. FMR in turn pays fees to affiliates who provide
assistance with these services. Each fund also pays OTHER EXPENSES,
which are explained on page .
FMR may, from time to time, agree to reimburse each class of each fund
for management fees and other expenses above a specified limit. FMR
retains the ability to be repaid by a class if expenses fall below the
specified limit prior to the end of the fiscal year. Reimbursement
arrangements, which may be terminated at any time without notice, can
decrease a class's expenses and boost its performance.
MANAGEMENT FEE
The management fee is calculated and paid to FMR every month. The fee
is calculated by adding a group fee rate to an individual fund fee
rate, multiplying the result by the fund's monthly average net assets
and dividing by twelve.
The group fee rate is based on the average net assets of all the
mutual funds advised by FMR. This rate cannot rise above 0.52%, and it
drops as total assets under management increase.
For July 1998, the group fee rate for each fund was 0.2875%.
The individual fund fee rate for each fund is 0.30%.
The following table states the management fee, as a percentage of each
fund's average net assets for the fiscal year ended July 1998.
TOTAL MANAGEMENT
FEE
CONSUMER INDUSTRIES 0.59%
CYCLICAL INDUSTRIES 0.59%
FINANCIAL SERVICES 0.59%
HEALTH CARE 0.59%
NATURAL RESOURCES 0.59%
TECHNOLOGY 0.59%
UTILITIES GROWTH 0.59%
FMR HAS SUB-ADVISORY AGREEMENTS with FMR U.K. and FMR Far East. These
sub-advisers provide FMR with investment research and advice on
issuers based outside the United States. Under the sub-advisory
agreements, FMR pays FMR U.K. and FMR Far East fees equal to 110% and
105%, respectively, of the costs of providing these services.
The sub-advisers may also provide investment management services. In
return, FMR pays FMR U.K. and FMR Far East a fee equal to 50% of its
management fee rate with respect to a fund's investments that the
sub-adviser manages on a discretionary basis.
For the fiscal year ended July 1998, FMR, on behalf of each fund paid
FMR U.K. and FMR Far East fees equal to less than 0.02% of each fund's
average net assets.
OTHER EXPENSES
While the management fee is a significant component of each fund's
annual operating costs, the funds have other expenses as well.
FIIOC performs transfer agency, dividend disbursing and shareholder
servicing functions for each class of each fund. Fidelity Service
Company, Inc. (FSC) calculates the net asset value per share (NAV) and
dividends for each class of each fund, maintains the general
accounting records for each class of each fund, and administers the
securities lending program for each fund.
For the fiscal year ended July 1998, transfer agency and pricing and
bookkeeping fees paid (as a percentage of average net assets) amounted
to the following. These amounts are before expense reductions, if any.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
TRANSFER PRICING AND
AGENCY BOOKKEEPING
FEES PAID FEES PAID BY
BY
CLASS A CLASS T CLASS B CLASS C(DAGGER) FUND
CONSUMER INDUSTRIES 0.31% 0.28% 0.35% 0.35% 0.35%
CYCLICAL INDUSTRIES 0.45% 0.34% 0.44% 0.91% 1.15%
FINANCIAL SERVICES 0.26% 0.24% 0.27% 0.23% 0.06%
HEALTH CARE 0.29% 0.25% 0.30% 0.26% 0.06%
NATURAL RESOURCES 0.32% 0.24% 0.28% 0.29% 0.07%
TECHNOLOGY 0.29% 0.28% 0.34% 0.30% 0.06%
UTILITIES GROWTH 0.31% 0.25% 0.24% 0.26% 0.23%
</TABLE>
(dagger) ANNUALIZED
Each fund also pays other expenses, such as legal, audit, and
custodian fees; in some instances, proxy solicitation costs; and the
compensation of trustees who are not affiliated with Fidelity. A
broker-dealer may use a portion of the commissions paid by a fund to
reduce that fund's custodian or transfer agent fees.
Class A shares of each fund have adopted a DISTRIBUTION AND SERVICE
PLAN. Under the plans, Class A of each fund is authorized to pay FDC a
monthly distribution fee as compensation for its services and expenses
in connection with the distribution of Class A shares. Class A of each
fund may pay FDC a distribution fee at an annual rate of 0.75% of its
average net assets, or such lesser amount as the Trustees may
determine from time to time. Class A of each fund currently pays FDC a
monthly distribution fee at an annual rate of 0.25% of its average net
assets throughout the month. Class A distribution fee rates may be
increased only when the Trustees believe that it is in the best
interests of Class A shareholders to do so.
Class T shares of each fund have adopted a DISTRIBUTION AND SERVICE
PLAN. Under the plans, Class T of each fund is authorized to pay FDC a
monthly distribution fee as compensation for its services and expenses
in connection with the distribution of Class T shares. Class T of
Natural Resources may pay FDC a distribution fee at an annual rate of
0.65% of its average net assets, or such lesser amount as the Trustees
may determine from time to time. Class T of Consumer Industries,
Cyclical Industries, Financial Services, Health Care, Technology, and
Utilities Growth may pay FDC a distribution fee at an annual rate of
0.75% of its average net assets, or such lesser amount as the Trustees
may determine from time to time. Class T of each fund currently pays
FDC a monthly distribution fee at an annual rate of 0.50% of its
average net assets throughout the month. Class T distribution fee
rates may be increased only when the Trustees believe that it is in
the best interests of Class T shareholders to do so.
Up to the full amount of the Class A and Class T distribution fees may
be reallowed to investment professionals, as compensation for their
services in connection with the distribution of Class A and Class T
shares and for providing support services to Class A and Class T
shareholders, based upon the level of such services provided. These
services may include, without limitation, answering investor inquiries
regarding the funds; providing assistance to investors in changing
dividend options, account designations, and addresses; performing
subaccounting and maintaining Class A and Class T shareholder
accounts; processing purchase and redemption transactions, including
automatic investment and redemption of investor account balances;
providing periodic statements showing an investor's account balance
and integrating other transactions into such statements; and
performing other administrative services in support of the
shareholder.
Class B shares of each fund have adopted a DISTRIBUTION AND SERVICE
PLAN. Under the plans, Class B of each fund is authorized to pay FDC a
monthly distribution fee as compensation for its services and expenses
in connection with the distribution of Class B shares. Class B of each
fund currently pays FDC a monthly distribution fee at an annual rate
of 0.75% of its average net assets throughout the month.
In addition, pursuant to each Class B plan, Class B of each fund pays
FDC a monthly service fee at an annual rate of 0.25% of Class B's
average net assets throughout the month. Up to the full amount of the
Class B service fee may be reallowed to investment professionals for
providing personal service to and/or maintenance of Class B
shareholder accounts.
Class C shares of each fund have adopted a DISTRIBUTION AND SERVICE
PLAN. Under the plans, Class C of each fund is authorized to pay FDC a
monthly distribution fee as compensation for its services and expenses
in connection with the distribution of Class C shares. Class C of each
fund may pay FDC a distribution fee at an annual rate of 0.75% of its
average net assets, or such lesser amount as the Trustees may
determine from time to time. Class C of each fund currently pays FDC a
monthly distribution fee at an annual rate of 0.75% of its average net
assets throughout the month. Normally, after the first year of
investment, up to the full amount of the Class C distribution fee may
be reallowed to investment professionals as compensation for their
services in connection with the distribution of Class C shares.
In addition, pursuant to each Class C plan, Class C of each fund pays
FDC a monthly service fee at an annual rate of 0.25% of Class C's
average net assets throughout the month. Normally, after the first
year of investment, up to the full amount of the Class C service fee
may be reallowed to investment professionals for providing personal
service to and/or maintenance of Class C shareholder accounts.
For purchases of Class C shares made for an employee benefit plan or
through reinvested dividends or capital gains distributions, during
the first year of investment and thereafter, up to the full amount of
the Class C distribution fee and Class C service fee paid by such
shares may be reallowed to investment professionals as compensation
for their services in connection with the distribution of Class C
shares and for providing personal service to and/or maintenance of
Class C shareholder accounts.
The Class A, Class T, Class B, and Class C plans specifically
recognize that FMR may make payments from its management fee revenue,
past profits, or other resources to FDC for expenses incurred in
connection with the distribution of the applicable class's shares,
including payments made to investment professionals that provide
shareholder support services or engage in the sale of the applicable
class's shares. Currently, the Board of Trustees of each fund has
authorized such payments.
For the fiscal year ended July 1998, the portfolio turnover rate was
144% for Consumer Industries, 100% for Cyclical Industries, 54% for
Financial Services, 85% for Health Care, 97% for Natural Resources,
348% for Technology, and 151% for Utilities Growth. These rates vary
from year to year. High turnover rates increase transaction costs and
may increase taxable capital gains. FMR considers these effects when
evaluating the anticipated benefits of short-term investing.
YOUR ACCOUNT
TYPES OF ACCOUNTS
When you invest through an investment professional, your investment
professional, including a broker-dealer or financial institution, may
charge you a transaction fee with respect to the purchase and sale of
fund shares. Read your investment professional's program materials in
conjunction with this prospectus for additional service features or
fees that may apply. Certain features of the funds, such as minimum
initial or subsequent investment amounts, may be modified.
The different ways to set up (register) your account with Fidelity are
listed at right.
The account guidelines that follow may not apply to certain retirement
accounts. If you are investing through a retirement account or if your
employer offers the funds through a retirement program, you may be
subject to additional fees. For more information, please refer to your
program materials, contact your employer, or call your retirement
benefits number or your investment professional directly, as
appropriate.
If you have selected Fidelity Advisor funds as an investment option
through an insurance company group pension program, please contact the
provider directly.
WAYS TO SET UP YOUR ACCOUNT
INDIVIDUAL OR JOINT TENANT
FOR YOUR GENERAL INVESTMENT NEEDS
Individual accounts are owned by one person. Joint accounts can have
two or more owners (tenants).
RETIREMENT
FOR TAX-ADVANTAGED RETIREMENT SAVINGS
Retirement plans provide individuals with tax-advantaged ways to save
for retirement, either with tax-deductible contributions or tax-free
growth. Retirement accounts require special applications and typically
have lower minimums.
TRADITIONAL INDIVIDUAL RETIREMENT ACCOUNTS (IRAS) allow individuals
under age 70 with compensation to contribute up to $2,000 per tax
year. Married couples can contribute up to $4,000 per tax year,
provided no more than $2,000 is contributed on behalf of either
spouse. (These limits are aggregate for Traditional and Roth IRAs.)
Contributions may be tax-deductible, subject to certain income limits.
ROTH IRAS allow individuals to make non-deductible contributions of
up to $2,000 per tax year. Married couples can contribute up to $4,000
per tax year, provided no more than $2,000 is contributed on behalf of
either spouse. (These limits are aggregate for Traditional and Roth
IRAs.) Eligibility is subject to certain income limits. Qualified
distributions are tax-free.
ROTH CONVERSION IRAS allow individuals with assets held in a
Traditional IRA or Rollover IRA to convert those assets to a Roth
Conversion IRA. Eligibility is subject to certain income limits.
Qualified distributions are tax-free.
(solid bullet) ROLLOVER IRAS help retain special tax advantages for
certain eligible rollover distributions from employer-sponsored
retirement plans.
(solid bullet) 401(K) PLANS, and certain other 401(a)-qualified plans,
are employer-sponsored retirement plans that allow employer
contributions and may allow employee after-tax contributions. In
addition, 401(k) plans allow employee pre-tax (tax-deferred)
contributions. Contributions to these plans may be tax-deductible to
the employer.
(solid bullet) KEOGH PLANS are generally profit sharing or money
purchase pension plans that allow self-employed individuals or small
business owners to make tax-deductible contributions for themselves
and any eligible employees.
(solid bullet) SIMPLE IRAS provide small business owners and those
with self-employment income (and their eligible employees) with many
of the advantages of a 401(k) plan, but with fewer administrative
requirements.
(solid bullet)SIMPLIFIED EMPLOYEE PENSION PLANS (SEP-IRAS) provide
small business owners or those with self-employment income (and their
eligible employees) with many of the same advantages as a Keogh, but
with fewer administrative requirements.
(solid bullet) SALARY REDUCTION SEP-IRAS (SARSEPS) allow employees of
businesses with 25 or fewer employees to contribute a percentage of
their wages on a tax-deferred basis. These plans must have been
established by the employer prior to January 1, 1997.
GIFTS OR TRANSFERS TO A MINOR (UGMA, UTMA)
TO INVEST FOR A CHILD'S EDUCATION OR OTHER FUTURE NEEDS
These custodial accounts provide a way to give money to a child and
obtain tax benefits. An individual can give up to $10,000 a year per
child without paying federal gift tax. Depending on state laws, you
can set up a custodial account under the Uniform Gifts to Minors Act
(UGMA) or the Uniform Transfers to Minors Act (UTMA). Contact your
investment professional.
TRUST
FOR MONEY BEING INVESTED BY A TRUST
The trust must be established before an account can be opened.
BUSINESS OR ORGANIZATION
FOR INVESTMENT NEEDS OF CORPORATIONS, ASSOCIATIONS, PARTNERSHIPS, OR
OTHER GROUPS
Contact your investment professional.
HOW TO BUY SHARES
THE PRICE TO BUY ONE SHARE of Class A or Class T is the class's
offering price or the class's net asset value per share (NAV),
depending on whether you pay a front-end sales charge. If you pay a
front-end sales charge, your price will be Class A's or Class T's
offering price. When you buy Class A or Class T shares at the offering
price, Fidelity deducts the appropriate sales charge and invests the
rest in Class A or Class T shares of the fund. If you qualify for a
front-end sales charge waiver, your price will be Class A's or Class
T's NAV. See "Transaction Details," page , and "Sales Charge
Reductions and Waivers," page , for explanations of how and when the
sales charge and waivers apply.
For Class B and Class C, the PRICE TO BUY ONE SHARE is the class's
NAV. Class B and Class C shares are sold without a front-end sales
charge, but may be subject to a CDSC upon redemption. See "Transaction
Details," page , for information on how the CDSC is calculated.
Your shares will be purchased at the next offering price or NAV, as
applicable, calculated after your order is received in proper form.
Each class's offering price and NAV, as applicable, are normally
calculated each business day at 4:00 p.m. Eastern time.
Each fund reserves the right to reject any specific purchase order,
including certain purchases by exchange. See "Exchange Restrictions"
on page . Purchase orders may be refused if, in FMR's opinion, they
would disrupt management of a fund.
It is the responsibility of your investment professional to transmit
your order to buy shares to Fidelity before the close of business on
the day you place your order.
Fidelity must receive payment within three business days after an
order for shares is placed; otherwise your purchase order may be
canceled and you could be held liable for resulting fees and/or
losses.
Share certificates are not available for Class A, Class T, Class B, or
Class C shares.
IF YOU ARE NEW TO THE FIDELITY ADVISOR FUNDS, complete and sign an
account application and mail it along with your check. If there is no
account application accompanying this prospectus, call your investment
professional or, if you are investing through a broker-dealer or
insurance representative, call 1-800-522-7297 or, if you are investing
through a bank representative, call 1-800-843-3001.
If you are investing through a tax-advantaged retirement plan, such as
an IRA, for the first time, you will need a special application.
Contact your investment professional for more information and a
retirement account application.
IF YOU ALREADY HAVE MONEY INVESTED IN A FIDELITY ADVISOR FUND, you
can:
(small solid bullet) Mail an account application with a check,
(small solid bullet) Place an order and wire money into your account,
(small solid bullet) Open your account by exchanging from the same
class of another Fidelity Advisor fund or from another Fidelity fund,
or
(small solid bullet) Contact your investment professional.
MINIMUM INVESTMENTS
TO OPEN AN ACCOUNT $2,500
For certain Fidelity Advisor retirement accounts* $500
Through regular investment plans** $1,000
TO ADD TO AN ACCOUNT $250
For certain Fidelity Advisor retirement accounts* $100
Through regular investment plans** $100
MINIMUM BALANCE $1,000
For certain Fidelity Advisor retirement accounts* None
* THESE LOWER MINIMUMS APPLY TO FIDELITY ADVISOR TRADITIONAL IRA, ROTH
IRA, ROTH CONVERSION IRA, ROLLOVER IRA, SEP-IRA, AND KEOGH ACCOUNTS.
** AN ACCOUNT MAY BE OPENED WITH A MINIMUM OF $1,000, PROVIDED THAT A
REGULAR INVESTMENT PLAN IS ESTABLISHED AT THE TIME THE ACCOUNT IS
OPENED. FOR MORE INFORMATION ABOUT REGULAR INVESTMENT PLANS, PLEASE
REFER TO "INVESTOR SERVICES," PAGE .
Investment and account minimums are waived for purchases of Class T
shares with distributions from a Fidelity Defined Trust account.
There is no minimum account balance or initial or subsequent
investment minimum for certain retirement accounts funded through
salary deduction, or accounts opened with the proceeds of
distributions from such Fidelity retirement accounts. Refer to the
program materials for details.
PURCHASE AMOUNTS OF MORE THAN $250,000 WILL NOT BE ACCEPTED FOR CLASS
B SHARES.
PURCHASE AMOUNTS OF MORE THAN $1 MILLION WILL NOT BE ACCEPTED FOR
CLASS C SHARES. THIS LIMIT DOES NOT APPLY TO PURCHASES OF CLASS C
SHARES MADE BY AN EMPLOYEE BENEFIT PLAN.
For further information on opening an account, please consult your
investment professional or refer to the account application.
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TO OPEN AN TO ADD TO AN
ACCOUNT ACCOUNT
PHONE (SMALL SOLID BULLET) CONTACT YOUR (SMALL SOLID BULLET) CONTACT YOUR
YOUR INVESTMENT INVESTMENT
INVESTMEN PROFESSIONAL OR, IF YOU PROFESSIONAL OR, IF
T ARE INVESTING THROUGH YOU ARE INVESTING
PROFESSIO A BROKER-DEALER OR THROUGH A
NAL INSURANCE BROKER-DEALER OR
REPRESENTATIVE, CALL INSURANCE
1-800-522-7297. IF REPRESENTATIVE, CALL
YOU ARE INVESTING 1-800-522-7297.
THROUGH A BANK IF YOU ARE INVESTING
REPRESENTATIVE, CALL THROUGH A BANK
1-800-843-3001. REPRESENTATIVE, CALL
(SMALL SOLID BULLET) EXCHANGE FROM THE 1-800-843-3001.
SAME CLASS OF ANOTHER (SMALL SOLID BULLET) EXCHANGE FROM THE
FIDELITY ADVISOR FUND OR SAME CLASS OF
FROM ANOTHER FIDELITY ANOTHER FIDELITY
FUND ACCOUNT WITH THE ADVISOR FUND OR FROM
SAME REGISTRATION, ANOTHER FIDELITY FUND
INCLUDING NAME, ACCOUNT WITH THE
ADDRESS, AND TAXPAYER SAME REGISTRATION,
ID NUMBER. INCLUDING NAME,
ADDRESS, AND
TAXPAYER ID NUMBER.
MAIL (MAIL_GRAPHIC) (SMALL SOLID BULLET) COMPLETE AND SIGN THE (SMALL SOLID BULLET) MAKE YOUR CHECK
ACCOUNT APPLICATION. PAYABLE TO THE
MAKE YOUR CHECK COMPLETE NAME OF
PAYABLE TO THE THE FUND OF YOUR
COMPLETE NAME OF THE CHOICE AND NOTE THE
FUND OF YOUR CHOICE AND APPLICABLE CLASS.
NOTE THE APPLICABLE INDICATE YOUR FUND
CLASS. MAIL TO THE ACCOUNT NUMBER ON
ADDRESS INDICATED ON YOUR CHECK AND MAIL
THE APPLICATION. TO THE ADDRESS
PRINTED ON YOUR
ACCOUNT STATEMENT.
(SMALL SOLID BULLET) EXCHANGE BY MAIL:
CALL YOUR INVESTMENT
PROFESSIONAL FOR
INSTRUCTIONS.
IN PERSON (HAND_GRAPHIC) (SMALL SOLID BULLET) BRING YOUR ACCOUNT (SMALL SOLID BULLET) BRING YOUR CHECK TO
APPLICATION AND CHECK YOUR INVESTMENT
TO YOUR INVESTMENT PROFESSIONAL.
PROFESSIONAL.
WIRE (WIRE_GRAPHIC) (SMALL SOLID BULLET) NOT AVAILABLE (SMALL SOLID BULLET) WIRE TO:
BANKER'S
TRUST CO.
ROUTING #
021001033
FIDELITY
DART DEPOSITORY
ACCOUNT #
00159759
FBO: (ACCOUNT
NAME)
(ACCOUNT
NUMBER)
SPECIFY THE
COMPLETE NAME OF
THE FUND OF YOUR
CHOICE, NOTE THE
APPLICABLE CLASS, AND
INCLUDE YOUR ACCOUNT
NUMBER AND YOUR
NAME.
AUTOMATICALLY (AUTOMATIC_GRAPHIC) (SMALL SOLID BULLET) NOT AVAILABLE (SMALL SOLID BULLET) USE FIDELITY ADVISOR
SYSTEMATIC
INVESTMENT
PROGRAM. SIGN UP
FOR THIS SERVICE
WHEN OPENING YOUR
ACCOUNT, OR CALL
YOUR INVESTMENT
PROFESSIONAL TO
BEGIN THE PROGRAM.
</TABLE>
HOW TO SELL SHARES
You can arrange to take money out of your fund account at any time by
selling (redeeming) some or all of your shares.
THE PRICE TO SELL ONE SHARE of each class is the class's NAV, minus
each fund's short-term trading fee, if applicable, and any applicable
CDSC. If you sell shares of a fund after holding them less than 60
days, the fund will deduct a short-term trading fee equal to 1.00% of
the value of those shares.
Your shares will be sold at the next NAV calculated after your order
is received in proper form, minus the short-term trading fee, if
applicable, and any applicable CDSC. Each class's NAV is normally
calculated each business day at 4:00 p.m. Eastern time.
It is the responsibility of your investment professional to transmit
your order to sell shares to Fidelity before the close of business on
the day you place your order.
TO SELL SHARES IN A NON-RETIREMENT ACCOUNT, you may use any of the
methods described on these two pages.
TO SELL SHARES IN A FIDELITY ADVISOR RETIREMENT ACCOUNT, your request
must be made in writing, except for exchanges to shares of the same
class of another Fidelity Advisor fund or shares of other Fidelity
funds, which can be requested by phone or in writing.
IF YOU ARE SELLING SOME BUT NOT ALL OF YOUR SHARES, leave at least
$1,000 worth of shares in the account to keep it open (account minimum
balances do not apply to retirement and Fidelity Defined Trust
accounts).
TO SELL SHARES BY BANK WIRE, you will need to sign up for this service
in advance.
CERTAIN REQUESTS MUST INCLUDE A SIGNATURE GUARANTEE. It is designed to
protect you and Fidelity from fraud. Your request must be made in
writing and include a signature guarantee if any of the following
situations apply:
(small solid bullet) You wish to redeem more than $100,000 worth of
shares,
(small solid bullet) Your account registration has changed within the
last 30 days,
(small solid bullet) The check is being mailed to a different address
than the one on your account (record address),
(small solid bullet) The check is being made payable to someone other
than the account owner,
(small solid bullet) The redemption proceeds are being transferred to
a Fidelity Advisor account with a different registration,
(small solid bullet) You wish to set up the bank wire feature, or
(small solid bullet) You wish to have redemption proceeds wired to a
non-predesignated bank account.
You should be able to obtain a signature guarantee from a bank,
broker, dealer, credit union (if authorized under state law),
securities exchange or association, clearing agency, or savings
association. A notary public cannot provide a signature guarantee.
SELLING SHARES IN WRITING
Write a "letter of instruction" with:
(small solid bullet) Your name,
(small solid bullet) The fund's name,
(small solid bullet) The applicable class name,
(small solid bullet) Your fund account number,
(small solid bullet) The dollar amount or number of shares to be
redeemed, signed certificates (if previously issued), and
(small solid bullet) Any other applicable requirements listed in the
table on page .
Deliver your letter to your investment professional, or mail it to the
following address:
Fidelity Investments
P.O. Box 770002
Cincinnati, OH 45277-0081
Unless otherwise instructed, Fidelity will send a check to the record
address.
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IF YOU SELL YOUR SHARES OF A FUND AFTER HOLDING THEM LESS THAN 60 DAYS, THE FUND WILL DEDUCT A SHORT-TERM
TRADING FEE EQUAL TO 1.00% OF THE VALUE OF THOSE SHARES.
</TABLE>
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ACCOUNT TYPE SPECIAL REQUIREMENTS
PHONE ALL ACCOUNT TYPES EXCEPT (SMALL SOLID BULLET) MAXIMUM CHECK
YOUR RETIREMENT REQUEST: $100,000.
INVESTMENT ALL ACCOUNT TYPES (SMALL SOLID BULLET) YOU MAY EXCHANGE TO
PROFESSIONAL THE SAME CLASS OF
(PHONE_GRAPHIC) OTHER FIDELITY ADVISOR
FUNDS OR TO OTHER
FIDELITY FUNDS IF BOTH
ACCOUNTS ARE
REGISTERED WITH THE
SAME NAME(S),
ADDRESS, AND
TAXPAYER ID NUMBER.
MAIL OR IN PERSON (MAIL_GRAPHIC)(HAND_GRAPHIC) INDIVIDUAL, JOINT TENANT, (SMALL SOLID BULLET) THE LETTER OF
SOLE PROPRIETORSHIP, INSTRUCTION MUST BE
UGMA, UTMA SIGNED BY ALL PERSONS
REQUIRED TO SIGN FOR
TRANSACTIONS, EXACTLY
RETIREMENT ACCOUNT AS THEIR NAMES
APPEAR ON THE
ACCOUNT AND SENT TO
YOUR INVESTMENT
PROFESSIONAL.
(SMALL SOLID BULLET) THE ACCOUNT OWNER
SHOULD COMPLETE A
RETIREMENT
DISTRIBUTION FORM.
CONTACT YOUR
INVESTMENT
PROFESSIONAL OR, IF
YOU PURCHASED YOUR
SHARES THROUGH A
BROKER-DEALER OR
INSURANCE
REPRESENTATIVE, CALL
1-800-522-7297. IF
YOU PURCHASED YOUR
SHARES THROUGH A
BANK REPRESENTATIVE,
CALL
1-800-843-3001.
TRUST (SMALL SOLID BULLET) THE TRUSTEE MUST SIGN
THE LETTER INDICATING
CAPACITY AS TRUSTEE. IF
THE TRUSTEE'S NAME IS
NOT IN THE ACCOUNT
REGISTRATION, PROVIDE A
COPY OF THE TRUST
DOCUMENT CERTIFIED
WITHIN THE LAST 60
DAYS.
BUSINESS OR (SMALL SOLID BULLET) AT LEAST ONE PERSON
ORGANIZATION AUTHORIZED BY
CORPORATE RESOLUTION
TO ACT ON THE
ACCOUNT MUST SIGN
THE LETTER.
EXECUTOR, (SMALL SOLID BULLET) FOR INSTRUCTIONS,
ADMINISTRATOR, CONTACT YOUR
CONSERVATOR/GUARDIAN INVESTMENT
PROFESSIONAL OR, IF
YOU PURCHASED YOUR
SHARES THROUGH A
BROKER-DEALER OR
INSURANCE
REPRESENTATIVE, CALL
1-800-522-7297. IF
YOU PURCHASED YOUR
SHARES THROUGH A
BANK REPRESENTATIVE,
CALL
1-800-843-3001.
WIRE (WIRE_GRAPHIC) ALL ACCOUNT TYPES EXCEPT (SMALL SOLID BULLET) YOU MUST SIGN UP FOR
RETIREMENT THE WIRE FEATURE
BEFORE USING IT. TO
VERIFY THAT IT IS IN
PLACE, CONTACT YOUR
INVESTMENT
PROFESSIONAL OR, IF
YOU PURCHASED YOUR
SHARES THROUGH A
BROKER-DEALER OR
INSURANCE
REPRESENTATIVE, CALL
1-800-522-7297. IF
YOU PURCHASED YOUR
SHARES THROUGH A
BANK REPRESENTATIVE,
CALL
1-800-843-3001.
MINIMUM WIRE:
$500
(SMALL SOLID BULLET) YOUR WIRE REDEMPTION
REQUEST MUST BE
RECEIVED IN PROPER
FORM BY FIDELITY
BEFORE 4:00 P.M.
EASTERN TIME FOR
MONEY TO BE WIRED
ON THE NEXT BUSINESS
DAY.
</TABLE>
INVESTOR SERVICES
Fidelity Advisor funds provide a variety of services to help you
manage your account.
INFORMATION SERVICES
STATEMENTS AND REPORTS that Fidelity sends to you include the
following:
(small solid bullet) Confirmation statements after certain
transactions
(small solid bullet) Account statements (quarterly)
(small solid bullet) Financial reports (every six months)
To reduce expenses, only one copy of most financial reports and
prospectuses will be mailed, even if you have more than one account in
a fund. Call your investment professional if you need additional
copies of financial reports and prospectuses.
TRANSACTION SERVICES
EXCHANGE PRIVILEGE. You may sell your Class A or Class T shares and
buy the same class of shares of other Fidelity Advisor funds or Daily
Money Class shares of Treasury Fund, Prime Fund, and Tax-Exempt Fund
by telephone or in writing. You may sell your Class B shares and buy
Class B shares of other Fidelity Advisor funds or Advisor B Class
shares of Treasury Fund by telephone or in writing. You may sell your
Class C shares and buy Class C shares of other Fidelity Advisor funds
or Advisor C Class shares of Treasury Fund by telephone or in writing.
The shares you exchange will carry credit for any front-end sales
charge you previously paid in connection with their purchase.
Note that exchanges between Focus Funds are unlimited, but exchanges
out of the Focus Funds to other Advisor funds are limited to four per
calendar year. Exchanges may have tax consequences for you. For
details on policies and restrictions governing exchanges, including
circumstances under which a shareholder's exchange privilege may be
suspended or revoked, see "Exchange Restrictions," page .
FIDELITY ADVISOR SYSTEMATIC WITHDRAWAL PROGRAM lets you set up
periodic redemptions from your Class A, Class T, Class B, or Class C
account. Accounts with a value of $10,000 or more in Class A, Class T,
Class B, or Class C shares are eligible for this program. Aggregate
redemptions per 12-month period from your Class B or Class C account
may not exceed 10% of the account value and are not subject to a CDSC.
Because of Class A's and Class T's front-end sales charge, you may not
want to set up a systematic withdrawal plan during a period when you
are buying Class A or Class T shares on a regular basis.
One easy way to pursue your financial goals is to invest money
regularly. Fidelity Advisor funds offer convenient services that let
you transfer money into your fund account, or between fund accounts,
automatically. While regular investment plans do not guarantee a
profit and will not protect you against loss in a declining market,
they can be an excellent way to invest for retirement, a home,
educational expenses, and other long-term financial goals. Certain
restrictions apply for retirement accounts. Call your investment
professional for more information.
REGULAR INVESTMENT PLANS
FIDELITY ADVISOR SYSTEMATIC INVESTMENT PROGRAM
TO MOVE MONEY FROM YOUR BANK ACCOUNT TO A FIDELITY ADVISOR FUND
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MINIMUM MINIMUM FREQUENCY
INITIAL ADDITIONAL MONTHLY, BIMONTHLY, QUARTERLY, SETTING UP OR
$1,000 $100 OR SEMI-ANNUALLY CHANGING
(SMALL SOLID BULLET) FOR A NEW ACCOUNT,
COMPLETE THE
APPROPRIATE SECTION ON
THE APPLICATION.
(SMALL SOLID BULLET) FOR EXISTING ACCOUNTS,
CALL YOUR INVESTMENT
PROFESSIONAL FOR AN
APPLICATION.
(SMALL SOLID BULLET) TO CHANGE THE AMOUNT
OR FREQUENCY OF YOUR
INVESTMENT, CONTACT
YOUR INVESTMENT
PROFESSIONAL DIRECTLY
OR, IF YOU PURCHASED
YOUR SHARES THROUGH A
BROKER-DEALER OR
INSURANCE
REPRESENTATIVE, CALL
1-800-522-7297. IF
YOU PURCHASED YOUR
SHARES THROUGH A BANK
REPRESENTATIVE, CALL
1-800-843-3001.
CALL AT LEAST 10
BUSINESS DAYS PRIOR TO
YOUR NEXT SCHEDULED
INVESTMENT DATE (20
BUSINESS DAYS IF YOU
PURCHASED YOUR SHARES
THROUGH A BANK).
</TABLE>
TO DIRECT DISTRIBUTIONS FROM A FIDELITY DEFINED TRUST TO CLASS T OF A
FIDELITY ADVISOR FUND
MINIMUM MINIMUM
INITIAL ADDITIONAL SETTING UP OR
NOT NOT CHANGING
APPLICABLE APPLICABLE (SMALL SOLID BULLET) FOR A NEW OR EXISTING
ACCOUNT, ASK YOUR
INVESTMENT
PROFESSIONAL FOR THE
APPROPRIATE
ENROLLMENT FORM.
(SMALL SOLID BULLET) TO CHANGE THE FUND TO
WHICH YOUR
DISTRIBUTIONS ARE
DIRECTED, CONTACT YOUR
INVESTMENT
PROFESSIONAL FOR
INSTRUCTIONS.
FIDELITY ADVISOR SYSTEMATIC EXCHANGE PROGRAM
TO MOVE MONEY FROM A FIDELITY MONEY MARKET FUND OR A FIDELITY ADVISOR
FUND TO ANOTHER FIDELITY ADVISOR FUND
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MINIMUM FREQUENCY SETTING UP OR
$100 Monthly, quarterly, CHANGING
semi-annually, or annually (small solid bullet) To establish, call your
investment
professional after both
accounts are opened.
(small solid bullet) To change the amount
or frequency of your
investment, contact
your investment
professional directly
or, if you purchased
your shares through a
broker-dealer or
insurance
representative, call
1-800-522-7297. If
you purchased your
shares through a bank
representative, call
1-800-843-3001.
(small solid bullet) The account from
which the exchanges
are to be processed
must have a minimum
balance of $10,000.
The account into
which the exchange is
being processed must
have a minimum of
$1,000.
(small solid bullet) Both accounts must
have the same
registrations and
taxpayer ID numbers.
(small solid bullet) Call at least 2
business days prior to
your next scheduled
exchange date.
</TABLE>
SHAREHOLDER AND ACCOUNT POLICIES
DIVIDENDS, CAPITAL GAINS, AND TAXES
Each fund distributes substantially all of its net investment income
and capital gains to shareholders each year. Normally, dividends and
capital gains are distributed in September and December.
DISTRIBUTION OPTIONS
When you open an account, specify on your account application how you
want to receive your distributions. The funds offer four options:
1. REINVESTMENT OPTION. Your dividend and capital gain distributions
will be automatically reinvested in additional shares of the same
class of the fund. If you do not indicate a choice on your
application, you will be assigned this option.
2. INCOME-EARNED OPTION. Your capital gain distributions will be
automatically reinvested in additional shares of the same class of the
fund, but you will be sent a check for each dividend distribution.
3. CASH OPTION. You will be sent a check for your dividend and capital
gain distributions.
4. DIRECTED DIVIDENDS(registered trademark) PROGRAM. Your dividend
distributions will be automatically invested in the same class of
shares of another identically registered Fidelity Advisor fund. You
will be sent a check for your capital gain distributions or your
capital gain distributions will be automatically reinvested in
additional shares of the same class of the fund.
If you select distribution option 2, 3, or 4 and the U.S. Postal
Service does not deliver your checks, your election may be converted
to the Reinvestment Option. You will not receive interest on amounts
represented by uncashed distribution checks. To change your
distribution option, call your investment professional directly or, if
you purchased your shares through a broker-dealer or insurance
representative, call 1-800-522-7297. If you purchased your shares
through a bank representative, call 1-800-843-3001.
Shares purchased through reinvestment of dividend and capital gain
distributions are not subject to a sales charge. If you direct Class A
or Class T distributions to a class with a front-end sales charge, you
will not pay a sales charge on those purchases.
When a fund deducts a distribution from its NAV, the reinvestment
price is the applicable class's NAV at the close of business that day.
Distribution checks will be mailed within seven days.
TAXES
As with any investment, you should consider how your investment in a
fund will be taxed. If your account is not a tax-advantaged retirement
account, you should be aware of these tax implications.
TAXES ON DISTRIBUTIONS. Distributions are subject to federal income
tax, and may also be subject to state or local taxes. If you live
outside the United States, your distributions could also be taxed by
the country in which you reside. Your distributions are taxable when
they are paid, whether you take them in cash or reinvest them.
However, distributions declared in December and paid in January are
taxable as if they were paid on December 31.
For federal tax purposes, each fund's income and short-term capital
gains are distributed as dividends and taxed as ordinary income;
capital gain distributions are taxed as long-term capital gains.
Every January, Fidelity will send you and the IRS a statement showing
the tax characterization of distributions paid to you in the previous
year.
TAXES ON TRANSACTIONS. Your redemptions - including exchanges - are
subject to capital gains tax. A capital gain or loss is the difference
between the cost of your shares and the price you receive when you
sell them.
Whenever you sell shares of a fund, Fidelity will send you a
confirmation statement showing how many shares you sold and at what
price.
You will also receive a consolidated transaction statement at least
quarterly. However, it is up to you or your tax preparer to determine
whether this sale resulted in a capital gain and, if so, the amount of
tax to be paid. BE SURE TO KEEP YOUR REGULAR ACCOUNT STATEMENTS; the
information they contain will be essential in calculating the amount
of your capital gains.
"BUYING A DIVIDEND." If you buy shares when a class has realized but
not yet distributed income or capital gains, you will pay the full
price for the shares and then receive a portion of the price back in
the form of a taxable distribution.
CURRENCY CONSIDERATIONS. If a fund's dividends exceed its taxable
income in any year, which is sometimes the result of currency-related
losses, all or a portion of the fund's dividends may be treated as a
return of capital to shareholders for tax purposes. To minimize the
risk of a return of capital, each fund may adjust its dividends to
take currency fluctuations into account, which may cause the dividends
to vary. Any return of capital will reduce the cost basis of your
shares, which will result in a higher reported capital gain or a lower
reported capital loss when you sell your shares. The statement you
receive in January will specify if any distributions included a return
of capital.
EFFECT OF FOREIGN TAXES. Foreign governments may impose taxes on a
fund and its investments, and these taxes generally will reduce a
fund's distributions. However, if you meet certain holding period
requirements with respect to your fund shares, an offsetting tax
credit may be available to you. If you do not meet such holding period
requirements, you may still be entitled to a deduction for certain
foreign taxes. In either case, your tax statement will show more
taxable income or capital gains than were actually distributed by the
fund, but will also show the amount of the available offsetting credit
or deduction.
There are tax requirements that all funds must follow in order to
avoid federal taxation. In its effort to adhere to these requirements,
a fund may have to limit its investment activity in some types of
instruments.
TRANSACTION DETAILS
THE FUNDS ARE OPEN FOR BUSINESS each day the New York Stock Exchange
(NYSE) is open. FSC normally calculates each class's NAV and offering
price, as applicable, as of the close of business of the NYSE,
normally 4:00 p.m. Eastern time .
A CLASS'S NAV is the value of a single share. The NAV of each class is
computed by adding that class's pro rata share of the value of the
applicable fund's investments, cash, and other assets, subtracting
that class's pro rata share of the value of the applicable fund's
liabilities, subtracting the liabilities allocated to that class, and
dividing the result by the number of shares of that class that are
outstanding.
Each fund's assets are valued primarily on the basis of market
quotations. Short-term securities with remaining maturities of sixty
days or less for which quotations are not readily available are valued
on the basis of amortized cost. This method minimizes the effect of
changes in a security's market value. Foreign securities are valued on
the basis of quotations from the primary market in which they are
traded, and are translated from the local currency into U.S. dollars
using current exchange rates. In addition, if quotations are not
readily available, or if the values have been materially affected by
events occurring after the closing of a foreign market, assets may be
valued by another method that the Board of Trustees believes
accurately reflects fair value.
THE OFFERING PRICE of Class A or Class T is its NAV divided by the
difference between one and the applicable front-end sales charge
percentage. Class A has a maximum front-end sales charge of 5.75% of
the offering price. Class T has a maximum front-end sales charge of
3.50% of the offering price.
SALES CHARGES AND INVESTMENT PROFESSIONAL CONCESSIONS - CLASS A
Sales Charge: Investment
Professional
Concession as %
of Offering Price
As a % of As an approximate
Offering Price % of Net Amount
Invested
Up to $49,999 5.75% 6.10% 5.00%
$50,000 to 4.50% 4.71% 3.75%
$99,999
$100,000 to 3.50% 3.63% 2.75%
$249,999
$250,000 to 2.50% 2.56% 2.00%
$499,999
$500,000 to 2.00% 2.04% 1.75%
$999,999
$1,000,000 to 1.00% 1.01% 0.75%
$24,999,999
$25,000,000 or None* None* *
more
* SEE SECTION ENTITLED FINDER'S FEE.
SALES CHARGES AND INVESTMENT PROFESSIONAL CONCESSIONS - CLASS T
Sales Charge: Investment
Professional
Concession as %
of Offering Price
As a % of As an approximate
Offering Price % of Net Amount
Invested
Up to $49,999 3.50% 3.63% 3.00%
$50,000 to 3.00% 3.09% 2.50%
$99,999
$100,000 to 2.50% 2.56% 2.00%
$249,999
$250,000 to 1.50% 1.52% 1.25%
$499,999
$500,000 to 1.00% 1.01% 0.75%
$999,999
$1,000,000 or None* None* *
more
* SEE SECTION ENTITLED FINDER'S FEE.
FINDER'S FEE. On eligible purchases of (i) Class A shares in amounts
of $1 million or more that qualify for a Class A load waiver, (ii)
Class A shares in amounts of $25 million or more, and (iii) Class T
shares in amounts of $1 million or more, investment professionals will
be compensated with a fee at the rate of 0.25% of the purchase amount.
Any assets on which a finder's fee has been paid will bear a CDSC
(Class A or Class T CDSC) if they do not remain in Class A or Class T
shares of the Fidelity Advisor funds, or Daily Money Class shares of
Treasury Fund, Prime Fund, or Tax-Exempt Fund, for a period of at
least one uninterrupted year. The Class A or Class T CDSC will be
0.25% of the lesser of the cost of the Class A or Class T shares, as
applicable, at the initial date of purchase or the value of the Class
A or Class T shares, as applicable, at redemption, not including any
reinvested dividends or capital gains. Class A and Class T shares
acquired through distributions (dividends or capital gains) will not
be subject to a Class A or Class T CDSC. In determining the
applicability and rate of any Class A or Class T CDSC at redemption,
Class A or Class T shares representing reinvested dividends and
capital gains, if any, will be redeemed first, followed by those Class
A or Class T CDSC shares that have been held for the longest period of
time.
Shares held by an insurance company separate account will be
aggregated at the client (e.g., the contract holder or plan sponsor)
level, not at the separate account level. Upon request, anyone
claiming eligibility for the 0.25% fee with respect to shares held by
an insurance company separate account must provide FDC access to
records detailing purchases at the client level.
With respect to employee benefit plans, the Class A or Class T CDSC
does not apply to the following types of redemptions; (i) plan loans
or distributions or (ii) exchanges to non-Advisor fund investment
options. With respect to Individual Retirement Accounts, the Class A
or Class T CDSC does not apply to redemptions made for disability,
payment of death benefits, or required partial distributions starting
at age 70. Your investment professional should advise Fidelity at the
time your redemption order is placed if you qualify for a waiver of
the Class A or Class T CDSC.
Investment professionals must notify FDC in advance of a purchase
eligible for a finder's fee, and may be required to enter into an
agreement with FDC in order to receive the finder's fee.
CONTINGENT DEFERRED SALES CHARGE. Class B shares may, upon redemption,
be assessed a CDSC based on the following schedule:
From Date of Purchase Contingent Deferred
Sales Charge
Less than 1 year 5%
1 year to less than 2 years 4%
2 years to less than 3 years 3%
3 years to less than 4 years 3%
4 years to less than 5 years 2%
5 years to less than 6 years 1%
6 years to less than 7 years [A] 0%
[A] AFTER A HOLDING PERIOD OF SEVEN YEARS, CLASS B SHARES WILL CONVERT
AUTOMATICALLY TO CLASS A SHARES OF THE SAME FIDELITY ADVISOR FUND. SEE
"CONVERSION FEATURE" BELOW FOR MORE INFORMATION.
When exchanging Class B shares of one fund for Class B shares of
another Fidelity Advisor fund or Advisor B Class shares of Treasury
Fund, your Class B shares retain the CDSC schedule in effect when they
were originally purchased.
Except as provided below, investment professionals with whom FDC has
agreements receive as compensation from FDC, at the time of the sale,
a concession equal to 4.00% of your purchase of Class B shares. For
purchases of Class B shares through reinvested dividends or capital
gain distributions, investment professionals do not receive a
concession at the time of sale.
Class C shares may, upon redemption within one year of purchase, be
assessed a CDSC of 1.00%.
Except as provided below, investment professionals with whom FDC has
agreements receive as compensation from FDC, at the time of sale, a
concession equal to 1.00% of your purchase of Class C shares. For
purchases of Class C shares made for an employee benefit plan, or
through reinvested dividends or capital gain distributions, investment
professionals do not receive a concession at the time of sale.
The CDSC for Class B and Class C shares will be calculated based on
the lesser of the cost of the Class B or Class C shares, as
applicable, at the initial date of purchase or the value of those
Class B or Class C shares, as applicable, at redemption, not including
any reinvested dividends or capital gains. Class B and Class C shares
acquired through distributions (dividends or capital gains) will not
be subject to a CDSC. In determining the applicability and rate of any
CDSC at redemption, Class B or Class C shares representing reinvested
dividends and capital gains, if any, will be redeemed first, followed
by those Class B or Class C shares that have been held for the longest
period of time.
CONVERSION FEATURE. After a holding period of seven years from the
initial date of purchase, Class B shares and any capital appreciation
associated with those shares, convert automatically to Class A shares
of the same Fidelity Advisor fund. Conversion to Class A shares will
be made at NAV. At the time of conversion, a portion of the Class B
shares purchased through the reinvestment of dividends or capital
gains (Dividend Shares) will also convert to Class A shares. The
portion of Dividend Shares that will convert is determined by the
ratio of your converting Class B non-Dividend Shares to your total
Class B non-Dividend Shares.
For more information about the CDSC, including the conversion feature
and the permitted circumstances for CDSC waivers, contact your
investment professional.
REINSTATEMENT PRIVILEGE. If you have sold all or part of your Class A,
Class T, Class B, or Class C shares of a fund, you may reinvest an
amount equal to all or a portion of the redemption proceeds in the
same class of the fund or any of the other Fidelity Advisor funds, at
the NAV next determined after receipt in proper form of your
investment order, provided that such reinvestment is made within 90
days of redemption. Under these circumstances, the dollar amount of
the CDSC, if any, you paid on Class A, Class T, Class B, or Class C
shares will be reimbursed to you by reinvesting that amount in Class
A, Class T, Class B, or Class C shares, as applicable. You must
reinstate your shares into an account with the same registration. This
privilege may be exercised only once by a shareholder with respect to
a fund and certain restrictions may apply. For purposes of the CDSC
holding period schedule, the holding period of your Class A, Class T,
Class B, or Class C shares will continue as if the shares had not been
redeemed.
WHEN YOU SIGN YOUR ACCOUNT APPLICATION, you will be asked to certify
that your social security or taxpayer identification number is correct
and that you are not subject to 31% backup withholding for failing to
report income to the IRS. If you violate IRS regulations, the IRS can
require a fund to withhold 31% of your taxable distributions and
redemptions.
YOU MAY INITIATE MANY TRANSACTIONS BY TELEPHONE OR ELECTRONICALLY.
Fidelity will not be responsible for any losses resulting from
unauthorized transactions if it follows reasonable security procedures
designed to verify the identity of the investor. Fidelity will request
personalized security codes or other information, and may also record
calls. For transactions conducted through the Internet, Fidelity
recommends the use of an Internet browser with 128-bit encryption. You
should verify the accuracy of your confirmation statements immediately
after you receive them. If you do not want the ability to redeem and
exchange by telephone, call Fidelity for instructions. Additional
documentation may be required from corporations, associations, and
certain fiduciaries.
IF YOU ARE UNABLE TO REACH FIDELITY BY PHONE (for example, during
periods of unusual market activity), consider placing your order by
mail.
EACH FUND RESERVES THE RIGHT to suspend the offering of shares for a
period of time.
WHEN YOU PLACE AN ORDER TO BUY SHARES, your shares will be purchased
at the next offering price or NAV, as applicable, calculated after
your order is received in proper form. Note the following:
(small solid bullet) All of your purchases must be made in U.S.
dollars and checks must be drawn on U.S. banks.
(small solid bullet) Fidelity does not accept cash.
(small solid bullet) When making a purchase with more than one check,
each check must have a value of at least $50.
(small solid bullet) Each fund reserves the right to limit the number
of checks processed at one time.
(small solid bullet) If your check does not clear, your purchase will
be canceled and you could be liable for any losses or fees a fund or
Fidelity has incurred.
AUTOMATED PURCHASE ORDERS. Class A, Class T, Class B, and Class C
shares can be purchased or sold through investment professionals
utilizing an automated order placement and settlement system that
guarantees payment for orders on a specified date.
CONFIRMED PURCHASES. Certain financial institutions that meet FDC's
creditworthiness criteria may enter confirmed purchase orders on
behalf of customers by phone, with payment to follow no later than
close of business on the next business day. If payment is not received
by the next business day, the order will be canceled and the financial
institution will be liable for any losses.
TO AVOID THE COLLECTION PERIOD associated with check purchases,
consider buying shares by bank wire, U.S. Postal money order, U.S.
Treasury check, Federal Reserve check, or automatic investment plans.
WHEN YOU PLACE AN ORDER TO SELL SHARES, your shares will be sold at
the next NAV calculated after your order is received in proper form,
minus the short-term trading fee, if applicable, and any applicable
CDSC. Note the following:
(small solid bullet) Normally, redemption proceeds will be mailed to
you on the next business day, but if making immediate payment could
adversely affect a fund, it may take up to seven days to pay you.
(small solid bullet) Each fund may hold payment on redemptions until
it is reasonably satisfied that investments made by check have been
collected, which can take up to seven business days.
(small solid bullet) Redemptions may be suspended or payment dates
postponed when the NYSE is closed (other than weekends or holidays),
when trading on the NYSE is restricted, or as permitted by the SEC.
(small solid bullet) You will not receive interest on amounts
represented by uncashed redemption checks.
A SHORT-TERM TRADING FEE of 1.00% will be deducted from the redemption
amount if you sell your shares after holding them less than 60 days.
This fee is paid to the fund rather than Fidelity, and is designed to
offset the brokerage commissions, market impact, and other costs
associated with fluctuations in fund asset levels and cash flow caused
by short-term shareholder trading.
The short-term trading fee, if applicable, is charged on exchanges out
of a fund. If you bought shares on different days, the shares you held
longest will be redeemed first for purposes of determining whether the
short-term trading fee applies. The fee does not apply to shares that
were acquired through reinvestment of distributions. Any applicable
CDSC is calculated based on your original redemption amount.
FIDELITY RESERVES THE RIGHT TO DEDUCT AN ANNUAL MAINTENANCE FEE of
$12.00 from accounts with a value of less than $2,500 (including any
amount paid as a sales charge), subject to an annual maximum charge of
$60.00 per shareholder. Accounts opened after September 30 will not be
subject to the fee for that year. The fee, which is payable to the
transfer agent, is designed to offset in part the relatively higher
costs of servicing smaller accounts. The fee will not be deducted from
retirement accounts (except non-prototype retirement accounts),
accounts using a systematic investment program, certain (Network Level
I and III) accounts which are maintained through National Securities
Clearing Corporation (NSCC), or if total assets in Fidelity mutual
funds exceed $50,000. Eligibility for the $50,000 waiver is determined
by aggregating Fidelity mutual fund accounts (excluding contractual
plans) maintained (i) by FIIOC and (ii) through NSCC; provided those
accounts are registered under the same primary social security number.
IF YOUR NON-RETIREMENT ACCOUNT BALANCE FALLS BELOW $1,000, you will be
given 30 days' notice to reestablish the minimum balance. If you do
not increase your balance, Fidelity reserves the right to close your
account and send the proceeds to you. Your shares will be redeemed at
the NAV, minus the short-term trading fee, if applicable, and any
applicable CDSC, on the day your account is closed.
FIDELITY MAY CHARGE A FEE FOR SPECIAL SERVICES, such as providing
historical account documents, that are beyond the normal scope of its
services.
FDC will, at its expense, provide promotional incentives such as sales
contests and luxury trips to investment professionals who support the
sale of shares of the funds. In some instances, these incentives will
be offered only to certain types of investment professionals, such as
bank-affiliated or non-bank affiliated broker-dealers, or to
investment professionals whose representatives provide services in
connection with the sale or expected sale of significant amounts of
shares.
EXCHANGE RESTRICTIONS
As a shareholder, you have the privilege of exchanging Class A, Class
T, Class B, or Class C shares of a fund for the same class of shares
of other Fidelity Advisor funds; Class A or Class T shares for Daily
Money Class shares of Treasury Fund, Prime Fund, or Tax-Exempt Fund;
Class B shares for Advisor B Class shares of Treasury Fund; and Class
C shares for Advisor C Class shares of Treasury Fund. If you purchased
your Class T shares through certain investment professionals that have
signed an agreement with FDC, you also have the privilege of
exchanging your Class T shares for shares of Fidelity Capital
Appreciation Fund. However, you should note the following:
(small solid bullet) The fund or class you are exchanging into must be
available for sale in your state.
(small solid bullet) You may only exchange between accounts that are
registered in the same name, address, and taxpayer identification
number.
(small solid bullet) Before exchanging into a fund or class, read its
prospectus.
(small solid bullet) Exchanges may have tax consequences for you.
(small solid bullet) Although there is no limit on the exchanges you
may make between the Advisor Focus funds, the funds reserve the right
to enact limitations in the future. Because excessive trading can hurt
fund performance and shareholders, each fund reserves the right to
temporarily or permanently terminate the exchange privilege of any
investor who makes more than four exchanges out of a fund into a
Fidelity Advisor fund per calendar year. Accounts under common
ownership or control, including accounts with the same taxpayer
identification number, will be counted together for purposes of the
four exchange limit.
(small solid bullet) Each fund reserves the right to refuse exchange
purchases by any person or group if, in FMR's judgment, the fund would
be unable to invest the money effectively in accordance with its
investment objective and policies, or would otherwise potentially be
adversely affected.
(small solid bullet) The exchange limit may be modified for accounts
in certain institutional retirement plans to conform to plan exchange
limits and Department of Labor regulations. See your plan materials
for further information.
(small solid bullet) Each fund reserves the right to reject exchange
purchases in excess of 1% of its net assets or $1 million, whichever
is less. For purposes of this policy, accounts under common ownership
will be aggregated.
(small solid bullet) Your exchanges may be restricted or refused if a
fund receives or anticipates simultaneous orders affecting significant
portions of the fund's assets. In particular, a pattern of exchanges
that coincides with a "market timing" strategy may be disruptive to a
fund.
(small solid bullet) Any exchanges of Class A, Class T, Class B, or
Class C shares are not subject to a CDSC.
Although the funds will attempt to give you prior notice whenever they
are reasonably able to do so, they may impose these restrictions at
any time. The funds reserve the right to terminate or modify these
exchange privileges in the future.
OTHER FUNDS MAY HAVE DIFFERENT EXCHANGE RESTRICTIONS, and may impose
trading fees of up to 1.00% of the amount exchanged. Check each fund's
prospectus for details.
SALES CHARGE REDUCTIONS AND WAIVERS
If your purchase qualifies for one of the following sales charge
reduction plans, the front-end sales charge will be reduced for
purchases of Class A and Class T shares according to the Sales Charge
schedule shown on page 47. Please refer to the funds' SAI for more
details about each plan or call your investment professional.
If you purchased your shares through a broker-dealer or insurance
representative, call 1-800-522-7297. If you purchased your shares
through a bank representative, call 1-800-843-3001.
Your purchases and existing balances of Class A, Class T, Class B, and
Class C shares may be included in the following programs for purposes
of qualifying for a Class A or Class T front-end sales charge
reduction.
QUANTITY DISCOUNTS apply to purchases of Class A or Class T shares of
a single Fidelity Advisor fund or to combined purchases of (i) Class
A, Class T, Class B, and Class C shares of any Fidelity Advisor fund,
(ii) Advisor B Class shares and Advisor C Class shares of Treasury
Fund, and (iii) Daily Money Class shares of Treasury Fund, Prime Fund,
and Tax-Exempt Fund acquired by exchange from any Fidelity Advisor
fund. The minimum investment eligible for a quantity discount is
$50,000.
To qualify for a quantity discount, investing in a fund's Class A,
Class T, Class B, and Class C shares for several accounts at the same
time will be considered a single transaction (Combined Purchase), as
long as shares are purchased through one investment professional and
the total is at least $50,000.
RIGHTS OF ACCUMULATION let you determine your front-end sales charge
on Class A and Class T shares by adding to your new purchase of Class
A and Class T shares the value of all of the Fidelity Advisor fund
Class A, Class T, Class B, and Class C shares held by you, your
spouse, and your children under age 21. You can also add the value of
Advisor B Class shares and Advisor C Class shares of Treasury Fund and
Daily Money Class shares of Treasury Fund, Prime Fund, and Tax-Exempt
Fund acquired by exchange from any Fidelity Advisor fund.
A LETTER OF INTENT (the Letter) lets you receive the same reduced
front-end sales charge on purchases of Class A and Class T shares made
during a 13-month period as if the total amount invested during the
period had been invested in a single lump sum (see Quantity Discounts
above). Purchase of Class B and Class C shares during the 13-month
period will count toward the completion of your Letter. You must file
your non-binding Letter with Fidelity within 90 days of the start of
your purchases. Your initial investment must be at least 5% of the
amount you plan to invest. Out of the initial investment, Class A or
Class T shares equal to 5% of the dollar amount specified in the
Letter will be registered in your name and held in escrow. You will
earn income dividends and capital gain distributions on escrowed Class
A and Class T shares. Reinvested income and capital gain distributions
do not count toward the completion of the Letter. The escrow will be
released when your purchase of the total amount has been completed.
You are not obligated to complete the Letter, and in such a case,
sufficient escrowed Class A or Class T shares will be redeemed to pay
any applicable front-end sales charges.
A FRONT-END SALES CHARGE WILL NOT APPLY TO THE FOLLOWING CLASS A
SHARES:
1. Purchased for an insurance company separate account used to fund
annuity contracts for employee benefit plans;
2. Purchased by a trust institution or bank trust department for a
managed account that is charged an asset-based fee. Employee benefit
plans and accounts managed by third parties do not qualify for this
waiver;
3. Purchased by a broker-dealer for a managed account that is charged
an asset-based fee. Employee benefit plans do not qualify for this
waiver;
4. Purchased by a registered investment advisor that is not part of an
organization primarily engaged in the brokerage business for an
account that is managed on a discretionary basis and is charged an
asset-based fee. Employee benefit plans do not qualify for this
waiver;
5. Purchased for (i) an employee benefit plan that has $25 million or
more in plan assets or (ii) an employee benefit plan that is part of
an investment professional sponsored program that requires the
participating employee benefit plan to initially invest in Class C or
Class B shares and, upon meeting certain criteria, subsequently
requires the plan to invest in Class A shares; or
6. Purchased prior to December 31, 1998 by shareholders who have
closed their Class A Municipal Bond, Class A California Municipal
Income, or Class A New York Municipal Income accounts prior to
December 31, 1997. This waiver is limited to purchases of up to
$10,000; shareholders are entitled to this waiver after the original
load waiver certificate is received by FIIOC.
A FRONT-END SALES CHARGE WILL NOT APPLY TO THE FOLLOWING CLASS T
SHARES:
1. Purchased for an insurance company separate account used to fund
annuity contracts for employee benefit plans;
2. Purchased by a trust institution or bank trust department for a
managed account that is charged an asset-based fee. Accounts managed
by third parties do not qualify for this waiver;
3. Purchased by a broker-dealer for a managed account that is charged
an asset-based fee;
4. Purchased by a registered investment advisor that is not part of an
organization primarily engaged in the brokerage business for an
account that is managed on a discretionary basis and is charged an
asset-based fee;
5. Purchased for an employee benefit plan, except certain small
employer retirement plans;
6. Purchased for a Fidelity or Fidelity Advisor account with the
proceeds of a distribution from (i) an insurance company separate
account used to fund annuity contracts for employee benefit plans that
are invested in Fidelity Advisor or Fidelity funds, or (ii) an
employee benefit plan that is invested in Fidelity Advisor or Fidelity
funds. (Distributions other than those transferred to an IRA account
must be transferred directly into a Fidelity account.);
7. Purchased for any state, county, or city, or any governmental
instrumentality, department, authority or agency;
8. Purchased with redemption proceeds from other mutual fund complexes
on which you have previously paid a front-end sales charge or CDSC;
9. Purchased by a current or former trustee or officer of a Fidelity
fund or a current or retired officer, director or regular employee of
FMR Corp. or FIL or their direct or indirect subsidiaries (a Fidelity
trustee or employee), the spouse of a Fidelity trustee or employee, a
Fidelity trustee or employee acting as custodian for a minor child, or
a person acting as trustee of a trust for the sole benefit of the
minor child of a Fidelity trustee or employee;
10. Purchased by a charitable organization (as defined for purposes of
Section 501(c)(3) of the Internal Revenue Code) investing $100,000 or
more;
11. Purchased by a bank trust officer, registered representative, or
other employee (or a member of one of their immediate families) of
investment professionals having agreements with FDC;
12. Purchased for a charitable remainder trust or life income pool
established for the benefit of a charitable organization (as defined
for purposes of Section 501(c)(3) of the Internal Revenue Code);
13. Purchased with distributions of income, principal, and capital
gains from Fidelity Defined Trusts; or
14. Purchased prior to December 31, 1998 by shareholders who have
closed their Class T Municipal Bond, Class T California Municipal
Income, or Class T New York Municipal Income accounts prior to
December 31, 1997. This waiver is limited to purchases of up to
$10,000; shareholders are entitled to this waiver after the original
load waiver certificate is received by FIIOC.
You must notify FDC in advance if you qualify for a front-end sales
charge waiver. Employee benefit plan investors must meet additional
requirements specified in the funds' SAI.
If you are investing through an insurance company separate account, if
you are investing through a trust department, if you are investing
through an account managed by a broker-dealer, or if you have
authorized an investment adviser to make investment decisions for you,
you may qualify to purchase Class A shares without a sales charge (as
described in (1), (2), (3) and (4) on the previous page and above),
Class T shares without a sales charge (as described in (1), (2), (3)
and (4) at left), or Institutional Class shares. Because Institutional
Class shares have no sales charge, and do not pay a 12b-1 fee,
Institutional Class shares are expected to have a higher total return
than Class A, Class T, Class B, and Class C shares. Contact your
investment professional to discuss if you qualify.
THE CDSC ON CLASS B AND CLASS C SHARES MAY BE WAIVED:
1. In cases of disability or death, provided that the shares are
redeemed within one year following the death or the initial
determination of disability;
2. In connection with a total or partial redemption related to certain
distributions from retirement plans or accounts at age 701/2, which
are permitted without penalty pursuant to the Internal Revenue Code;
3. In connection with redemptions through the Fidelity Advisor
Systematic Withdrawal Program; or
4. (APPLICABLE TO CLASS C ONLY) In connection with any redemptions
from an employee benefit plan. Employee benefit plan investors must
meet additional requirements specified in the funds' SAI.
Your investment professional should call Fidelity for more
information.
No dealer, sales representative, or any other person has been
authorized to give any information or to make any representations,
other than those contained in this Prospectus and in the related SAI,
in connection with the offer contained in this Prospectus. If given or
made, such other information or representations must not be relied
upon as having been authorized by the funds or FDC. This Prospectus
and the related SAI do not constitute an offer by the funds or by FDC
to sell or to buy shares of the funds to any person to whom it is
unlawful to make such offer.
The product is not sponsored, endorsed, sold, or promoted by S&P. S&P
makes no representation or warranty, express or implied, to the owners
of the product or any member of the public regarding the advisability
of investing in securities generally or in the product particularly or
the ability of the S&P 500 Index to track general stock market
performance. S&P's only relationship to the licensee is the licensing
of certain trademarks and trade names of S&P and of the S&P 500 Index
which is determined, composed, and calculated by S&P without regard to
the licensee or the product. S&P has no obligation to take the needs
of the licensee or the owners of the product into consideration in
determining, composing, or calculating the S&P 500 Index. S&P is not
responsible for and has not participated in the determination of the
timing of, prices at, or quantities of the product to be issued or in
the determination or calculation of the equation by which the product
is to be converted into cash. S&P has no obligation or liability in
connection with the administration, marketing, or trading of the
product.
Fidelity, Fidelity Investments, and Directed Dividends are registered
trademarks of FMR Corp.
Fidelity Advisor Focus Funds is a registered service mark of FMR Corp.
The third party marks appearing above are the marks of their
respective owners.
APPENDIX
YEAR-BY-YEAR TOTAL RETURNS
Calendar year total returns(dagger) 1997
CONSUMER INDUSTRIES - CLASS A 36.92%
S&P 500 33.36%
Consumer Price Index 1.70%
Goldman Sachs Consumer Index 34.06%
YEAR-BY-YEAR TOTAL RETURNS
Calendar year total returns(dagger) 1997
CYCLICAL INDUSTRIES - CLASS A 18.66%
S&P 500 33.36%
Consumer Price Index 1.70%
Goldman Sachs Cyclical Index 22.49%
YEAR-BY-YEAR TOTAL RETURNS
Calendar year total returns(dagger) 1997
FINANCIAL SERVICES - CLASS A 40.16%
S&P 500 33.36%
Consumer Price Index 1.70%
Goldman Sachs Financial Index 48.73%
YEAR-BY-YEAR TOTAL RETURNS
Calendar year total returns(dagger) 1997
HEALTH CARE - CLASS A 30.88%
S&P 500 33.36%
Consumer Price Index 1.70%
Goldman Sachs Health Care Index 36.67%
YEAR-BY-YEAR TOTAL RETURNS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Calendar year total 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997
returns(dagger)
NATURAL 16.10% 33.14% -5.28% 14.47% 13.33% 37.94% -2.28% 28.67% 30.37% -0.83%
RESOURCES
- - CLASS A
S&P 500 16.61% 31.69% -3.10% 30.47% 7.62% 10.08% 1.32% 37.58% 22.96% 33.36%
Consumer 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32% 1.70%
Price Index
Goldman n/a n/a n/a n/a n/a n/a n/a n/a n/a 16.95%
Sachs
Natural
Resources
Index
</TABLE>
PERCENTAGE (%)
ROW: 1, COL: 1, VALUE: 16.1
ROW: 2, COL: 1, VALUE: 33.14
ROW: 3, COL: 1, VALUE: -5.28
ROW: 4, COL: 1, VALUE: 14.47
ROW: 5, COL: 1, VALUE: 13.33
ROW: 6, COL: 1, VALUE: 37.94
ROW: 7, COL: 1, VALUE: -2.28
ROW: 8, COL: 1, VALUE: 28.67
ROW: 9, COL: 1, VALUE: 30.37
ROW: 10, COL: 1, VALUE: -0.8300000000000001
(LARGE SOLID BOX) NATURAL RESOURCES - CLASS A
YEAR-BY-YEAR TOTAL RETURNS
Calendar year total returns(dagger) 1997
TECHNOLOGY - CLASS A 10.41%
S&P 500 33.36%
Consumer Price Index 1.70%
Goldman Sachs Technology Index 23.52%
YEAR-BY-YEAR TOTAL RETURNS
Calendar year total returns(dagger) 1997
UTILITIES GROWTH - CLASS A 30.08%
S&P 500 33.36%
Consumer Price Index 1.70%
Goldman Sachs Utilities Index 34.88%
YEAR-BY-YEAR TOTAL RETURNS
Calendar year total returns(dagger) 1997
CONSUMER INDUSTRIES - CLASS T 36.22%
S&P 500 33.36%
Consumer Price Index 1.70%
Goldman Sachs Consumer Index 34.06%
YEAR-BY-YEAR TOTAL RETURNS
Calendar year total returns(dagger) 1997
CYCLICAL INDUSTRIES - CLASS T 18.60%
S&P 500 33.36%
Consumer Price Index 1.70%
Goldman Sachs Cyclical Index 22.49%
YEAR-BY-YEAR TOTAL RETURNS
Calendar year total returns(dagger) 1997
FINANCIAL SERVICES - CLASS T 39.75%
S&P 500 33.36%
Consumer Price Index 1.70%
Goldman Sachs Financial Index 48.73%
YEAR-BY-YEAR TOTAL RETURNS
Calendar year total returns(dagger) 1997
HEALTH CARE - CLASS T 30.57%
S&P 500 33.36%
Consumer Price Index 1.70%
Goldman Sachs Health Care Index 36.67%
YEAR-BY-YEAR TOTAL RETURNS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Calendar year total 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997
returns(dagger)
NATURAL 16.10% 33.14% -5.28% 14.47% 13.33% 37.94% -2.28% 28.67% 30.52% -0.79%
RESOURCES
- - CLASS T
S&P 500 16.61% 31.69% -3.10% 30.47% 7.62% 10.08% 1.32% 37.58% 22.96% 33.36%
Consumer 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32% 1.70%
Price Index
Goldman n/a n/a n/a n/a n/a n/a n/a n/a n/a 16.95%
Sachs
Natural
Resources
Index
</TABLE>
PERCENTAGE (%)
ROW: 1, COL: 1, VALUE: 16.1
ROW: 2, COL: 1, VALUE: 33.14
ROW: 3, COL: 1, VALUE: -5.28
ROW: 4, COL: 1, VALUE: 14.47
ROW: 5, COL: 1, VALUE: 13.33
ROW: 6, COL: 1, VALUE: 37.94
ROW: 7, COL: 1, VALUE: -2.28
ROW: 8, COL: 1, VALUE: 28.67
ROW: 9, COL: 1, VALUE: 30.52
ROW: 10, COL: 1, VALUE: -0.79
(LARGE SOLID BOX) NATURAL RESOURCES - CLASS T
YEAR-BY-YEAR TOTAL RETURNS
Calendar year total returns(dagger) 1997
TECHNOLOGY - CLASS T 10.20%
S&P 500 33.36%
Consumer Price Index 1.70%
Goldman Sachs Technology Index 23.52%
YEAR-BY-YEAR TOTAL RETURNS
Calendar year total returns(dagger) 1997
UTILITIES GROWTH - CLASS T 29.53%
S&P 500 33.36%
Consumer Price Index 1.70%
Goldman Sachs Utilities Index 34.88%
YEAR-BY-YEAR TOTAL RETURNS
Calendar year total returns(dagger) 1997
CONSUMER INDUSTRIES - CLASS B 35.63%
S&P 500 33.36%
Consumer Price Index 1.70%
Goldman Sachs Consumer Index 34.06%
YEAR-BY-YEAR TOTAL RETURNS
Calendar year total returns(dagger) 1997
CYCLICAL INDUSTRIES - CLASS B 18.05%
S&P 500 33.36%
Consumer Price Index 1.70%
Goldman Sachs Cyclical Index 22.49%
YEAR-BY-YEAR TOTAL RETURNS
Calendar year total returns(dagger) 1997
FINANCIAL SERVICES - CLASS B 39.26%
S&P 500 33.36%
Consumer Price Index 1.70%
Goldman Sachs Financial Index 48.73%
YEAR-BY-YEAR TOTAL RETURNS
Calendar year total returns(dagger) 1997
HEALTH CARE - CLASS B 29.93%
S&P 500 33.36%
Consumer Price Index 1.70%
Goldman Sachs Health Care Index 36.67%
YEAR-BY-YEAR TOTAL RETURNS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Calendar year total 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997
returns(dagger)
NATURAL 16.10% 33.14% -5.28% 14.47% 13.33% 37.94% -2.28% 28.24% 29.63% -1.32%
RESOURCES
- - CLASS B
S&P 500 16.61% 31.69% -3.10% 30.47% 7.62% 10.08% 1.32% 37.58% 22.96% 33.36%
Consumer 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32% 1.70%
Price Index
Goldman n/a n/a n/a n/a n/a n/a n/a n/a n/a 16.95%
Sachs
Natural
Resources
Index
</TABLE>
PERCENTAGE (%)
ROW: 1, COL: 1, VALUE: NIL
ROW: 2, COL: 1, VALUE: 16.1
ROW: 3, COL: 1, VALUE: 33.14
ROW: 4, COL: 1, VALUE: -5.28
ROW: 5, COL: 1, VALUE: 14.47
ROW: 6, COL: 1, VALUE: 13.33
ROW: 7, COL: 1, VALUE: 37.94
ROW: 8, COL: 1, VALUE: -2.28
ROW: 9, COL: 1, VALUE: 28.24
ROW: 10, COL: 1, VALUE: 29.63
ROW: 11, COL: 1, VALUE: -1.32
(LARGE SOLID BOX) NATURAL RESOURCES - CLASS B
YEAR-BY-YEAR TOTAL RETURNS
Calendar year total returns(dagger) 1997
TECHNOLOGY - CLASS B 9.72%
S&P 500 33.36%
Consumer Price Index 1.70%
Goldman Sachs Technology Index 23.52%
YEAR-BY-YEAR TOTAL RETURNS
Calendar year total returns(dagger) 1997
UTILITIES GROWTH - CLASS B 29.01%
S&P 500 33.36%
Consumer Price Index 1.70%
Goldman Sachs Utilities Index 34.88%
YEAR-BY-YEAR TOTAL RETURNS
Calendar year total returns(dagger) 1997
CONSUMER INDUSTRIES - CLASS C 35.61%
S&P 500 33.36%
Consumer Price Index 1.70%
Goldman Sachs Consumer Index 34.06%
YEAR-BY-YEAR TOTAL RETURNS
Calendar year total returns(dagger) 1997
CYCLICAL INDUSTRIES - CLASS C 17.95%
S&P 500 33.36%
Consumer Price Index 1.70%
Goldman Sachs Cyclical Index 22.49%
YEAR-BY-YEAR TOTAL RETURNS
Calendar year total returns(dagger) 1997
FINANCIAL SERVICES - CLASS C 39.14%
S&P 500 33.36%
Consumer Price Index 1.70%
Goldman Sachs Financial Index 48.73%
YEAR-BY-YEAR TOTAL RETURNS
Calendar year total returns(dagger) 1997
HEALTH CARE - CLASS C 29.93%
S&P 500 33.36%
Consumer Price Index 1.70%
Goldman Sachs Health Care Index 36.67%
YEAR-BY-YEAR TOTAL RETURNS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Calendar year total 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997
returns(dagger)
NATURAL 16.10% 33.14% -5.28% 14.47% 13.33% 37.94% -2.28 28.24% 29.63% -1.36%
RESOURCES
- - CLASS C
S&P 500 16.61% 31.69% -3.10% 30.47% 7.62% 10.08% 1.32% 37.58% 22.96% 33.36%
Consumer 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32% 1.70%
Price Index
Goldman n/a n/a n/a n/a n/a n/a n/a n/a n/a 16.95%
Sachs
Natural
Resources
Index
</TABLE>
PERCENTAGE (%)
ROW: 1, COL: 1, VALUE: 0.0
ROW: 2, COL: 1, VALUE: 16.1
ROW: 3, COL: 1, VALUE: 33.14
ROW: 4, COL: 1, VALUE: -5.28
ROW: 5, COL: 1, VALUE: 14.47
ROW: 6, COL: 1, VALUE: 13.33
ROW: 7, COL: 1, VALUE: 37.94
ROW: 8, COL: 1, VALUE: -2.28
ROW: 9, COL: 1, VALUE: 28.24
ROW: 10, COL: 1, VALUE: 29.63
ROW: 11, COL: 1, VALUE: -1.36
(LARGE SOLID BOX) NATURAL RESOURCES - CLASS C
YEAR-BY-YEAR TOTAL RETURNS
Calendar year total returns(dagger) 1997
TECHNOLOGY - CLASS C 9.78%
S&P 500 33.36%
Consumer Price Index 1.70%
Goldman Sachs Technology Index 23.52%
YEAR-BY-YEAR TOTAL RETURNS
Calendar year total returns(dagger) 1997
UTILITIES GROWTH - CLASS C 29.08%
S&P 500 33.36%
Consumer Price Index 1.70%
Goldman Sachs Utilities Index 34.88%
(dagger) RETURNS DO NOT INCLUDE THE EFFECT OF CLASS A'S OR CLASS T'S
APPLICABLE FRONT-END SALES CHARGE OR CLASS B'S OR CLASS C'S APPLICABLE
CDSC.
INITIAL OFFERING OF CLASS A OF NATURAL RESOURCES TOOK PLACE ON
SEPTEMBER 3, 1996. CLASS A RETURNS PRIOR TO SEPTEMBER 3, 1996 ARE
THOSE OF CLASS T WHICH REFLECT A 12B-1 FEE OF 0.50% (0.65% PRIOR TO
JANUARY 1, 1996). IF CLASS A'S 12B-1 FEE HAD BEEN REFLECTED, TOTAL
RETURNS PRIOR TO SEPTEMBER 3, 1996 WOULD HAVE BEEN HIGHER.
INITIAL OFFERING OF CLASS B OF EACH FUND (EXCEPT NATURAL RESOURCES)
TOOK PLACE ON MARCH 3, 1997. CLASS B RETURNS PRIOR TO MARCH 3, 1997
ARE THOSE OF CLASS T WHICH REFLECT A 12B-1 FEE OF 0.50%. IF CLASS B'S
12B-1 FEE HAD BEEN REFLECTED, TOTAL RETURNS PRIOR TO MARCH 3, 1997
WOULD HAVE BEEN LOWER.
INITIAL OFFERING OF CLASS B OF NATURAL RESOURCES TOOK PLACE ON JULY
3, 1995. CLASS B RETURNS PRIOR TO JULY 3, 1995 ARE THOSE OF CLASS T
WHICH REFLECT A 12B-1 FEE OF 0.65%. IF CLASS B'S 12B-1 FEE HAD BEEN
REFLECTED, TOTAL RETURNS PRIOR TO JULY 3, 1995 WOULD HAVE BEEN LOWER.
INITIAL OFFERING OF CLASS C OF EACH FUND TOOK PLACE ON NOVEMBER 3,
1997. CLASS C RETURNS OF EACH FUND (EXCEPT NATURAL RESOURCES) FROM
NOVEMBER 3, 1997 THROUGH MARCH 3, 1997 ARE THOSE OF CLASS B WHICH
REFLECT A 12B-1 FEE OF 1.00%. IF CLASS C'S 12B-1 FEE HAD BEEN
REFLECTED, RETURNS PRIOR TO MARCH 3, 1997 WOULD HAVE BEEN LOWER. CLASS
C RETURNS FOR NATURAL RESOURCES FROM NOVEMBER 3, 1997 THROUGH JULY 3,
1995 ARE THOSE OF CLASS B WHICH REFLECT A 12B-1 FEE OF 1.00%. CLASS C
RETURNS PRIOR TO JULY 3, 1995 ARE THOSE OF CLASS T WHICH REFLECT A
12B-1 FEE OF 0.65%. IF CLASS C'S 12B-1 FEE HAD BEEN REFLECTED, TOTAL
RETURNS PRIOR TO JULY 3, 1995 WOULD HAVE BEEN LOWER.
FIDELITY ADVISOR
FOCUS FUNDSSM
INSTITUTIONAL CLASS
Please read this prospectus before investing, and keep it on file for
future reference. It contains important information, including how
each fund invests and the services available to shareholders.
To learn more about each fund and its investments, you can obtain a
copy of a fund's most recent financial report and portfolio listing or
a copy of the Statement of Additional Information (SAI) dated
September 28, 1998. The SAI has been filed with the Securities and
Exchange Commission (SEC) and is available along with other related
materials on the SEC's Internet Web site (http://www.sec.gov). The SAI
is incorporated herein by reference (legally forms a part of the
prospectus). For a free copy of either document, contact Fidelity
Distributors Corporation (FDC), 82 Devonshire Street, Boston, MA
02109, or your investment professional.
MUTUAL FUND SHARES ARE NOT DEPOSITS OR
OBLIGATIONS OF, OR GUARANTEED BY, ANY
DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY
THE FDIC, FEDERAL RESERVE BOARD OR ANY OTHER
AGENCY, AND ARE SUBJECT TO INVESTMENT RISKS,
INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT
INVESTED.
LIKE ALL MUTUAL FUNDS, THESE SECURITIES HAVE
NOT BEEN APPROVED OR DISAPPROVED BY THE
SECURITIES AND EXCHANGE COMMISSION, NOR
HAS THE SECURITIES AND EXCHANGE
COMMISSION PASSED UPON THE ACCURACY OR
ADEQUACY OF THIS PROSPECTUS. ANY
REPRESENTATION TO THE CONTRARY IS A CRIMINAL
OFFENSE.
AFOCI-pro-0998
1.705177.101
Each fund seeks to increase the value of your investment over the
long-term by investing mainly in equity securities of companies within
a particular market sector.
FIDELITY ADVISOR CONSUMER INDUSTRIES FUND
FIDELITY ADVISOR CYCLICAL INDUSTRIES FUND
FIDELITY ADVISOR FINANCIAL SERVICES FUND
FIDELITY ADVISOR HEALTH CARE FUND
FIDELITY ADVISOR NATURAL RESOURCES FUND
FIDELITY ADVISOR TECHNOLOGY FUND
FIDELITY ADVISOR UTILITIES GROWTH FUND
PROSPECTUS
SEPTEMBER 28, 1998(FIDELITY_LOGO_GRAPHIC) 82 DEVONSHIRE STREET,
BOSTON, MA 02109
CONTENTS
<TABLE>
<CAPTION>
<S> <C> <C>
KEY FACTS 2 WHO MAY WANT TO INVEST
3 EXPENSES INSTITUTIONAL CLASS'S YEARLY OPERATING EXPENSES.
6 FINANCIAL HIGHLIGHTS A SUMMARY OF EACH FUND'S FINANCIAL DATA.
13 PERFORMANCE HOW EACH FUND HAS DONE OVER TIME.
THE FUNDS IN DETAIL 14 CHARTER HOW EACH FUND IS ORGANIZED.
14 INVESTMENT PRINCIPLES AND RISKS EACH FUND'S OVERALL APPROACH
TO INVESTING.
17 BREAKDOWN OF EXPENSES HOW OPERATING COSTS ARE CALCULATED
AND WHAT THEY INCLUDE.
YOUR ACCOUNT 18 TYPES OF ACCOUNTS DIFFERENT WAYS TO SET UP YOUR ACCOUNT,
INCLUDING TAX-ADVANTAGED RETIREMENT PLANS.
20 HOW TO BUY SHARES OPENING AN ACCOUNT AND MAKING ADDITIONAL
INVESTMENTS.
21 HOW TO SELL SHARES TAKING MONEY OUT AND CLOSING YOUR ACCOUNT.
24 INVESTOR SERVICES SERVICES TO HELP YOU MANAGE YOUR ACCOUNT.
SHAREHOLDER AND ACCOUNT POLICIES 25 DIVIDENDS, CAPITAL GAINS, AND TAXES
25 TRANSACTION DETAILS SHARE PRICE CALCULATIONS AND THE TIMING OF
PURCHASES AND REDEMPTIONS.
26 EXCHANGE RESTRICTIONS
28 APPENDIX
</TABLE>
KEY FACTS
WHO MAY WANT TO INVEST
Institutional Class shares are offered to:
1. Broker-dealer managed account programs that (i) charge an
asset-based fee and (ii) will have at least $1 million invested in the
Institutional Class of the Advisor funds. In addition, employee
benefit plans must have at least $50 million in plan assets;
2. Registered investment advisor managed account programs, provided
the registered investment advisor is not part of an organization
primarily engaged in the brokerage business, and the program (i)
charges an asset-based fee and (ii) will have at least $1 million
invested in the Institutional Class of the Advisor funds. In addition,
non-employee benefit plan accounts in the program must be managed on a
discretionary basis;
3. Trust institution and bank trust department managed account
programs that (i) charge an asset-based fee and (ii) will have at
least $1 million invested in the Institutional Class of the Advisor
funds. Accounts managed by third parties are not eligible to purchase
Institutional Class shares;
4. Insurance company separate accounts that will have at least $1
million invested in the Institutional Class of the Advisor funds; and
5. Fidelity Trustees and employees.
For purchases made by managed account programs or insurance company
separate accounts, FDC reserves the right to waive the requirement
that $1 million be invested in the Institutional Class of the Advisor
funds. Employee benefit plan investors must meet additional
requirements specified in the funds' SAI.
The funds may be appropriate for investors who want to pursue growth
aggressively by concentrating their investment on domestic and foreign
securities within a market sector. The funds are designed for those
who are interested in actively monitoring the progress of, and can
accept the risks of, industry-focused investing. Because the funds are
narrowly focused, changes in a particular industry, regulatory
changes, or legislation can have a substantial impact on a fund's
share price.
Consumer Industries, Cyclical Industries, Health Care, Natural
Resources, Technology, and Utilities Growth may invest a greater
portion of their assets in securities of individual issuers than
diversified funds. As a result, changes in the market value of a
single issuer could cause greater fluctuations in share value than
would occur in a more diversified fund.
The value of each fund's investments varies from day to day, generally
reflecting changes in market conditions and other company, political,
and economic news. In the short term, stock prices can fluctuate
dramatically in response to these factors. The securities of small,
less well-known companies may be more volatile than those of larger
companies. Over time, however, stocks have shown greater growth
potential than other types of securities. Investments in foreign
securities may involve risks in addition to those of U.S. investments,
including increased political and economic risk, as well as exposure
to currency fluctuations.
Each fund is not in itself a balanced investment plan. You should
consider your investment objective and tolerance for risk when making
an investment decision. When you sell your fund shares, they may be
worth more or less than what you paid for them.
Each fund is composed of multiple classes of shares. All classes of a
fund have a common investment objective and investment portfolio. Each
fund offers Institutional Class shares, Class A shares, Class T
shares, Class B shares, and Class C shares. Class A and Class T shares
have a front-end sales charge and pay a 12b-1 fee. Class A and Class T
shares may be subject to a contingent deferred sales charge (CDSC).
Class B and Class C shares do not have a front-end sales charge, but
do have a CDSC, and pay a 12b-1 fee. You may obtain more information
about Class A, Class T, Class B, and Class C shares, which are not
offered through this prospectus, by calling 1-800-522-7297 if you are
investing through a broker-dealer or insurance representative, or
1-800-843-3001 if you are investing through a bank representative, or
from your investment professional.
The performance of one class of shares of a fund may be different from
the performance of another class of shares of the same fund because of
different sales charges and class expenses. For example, because
Institutional Class shares have no sales charge, and do not pay a
distribution fee or a shareholder service fee, Institutional Class
shares are expected to have a higher total return than Class A, Class
T, Class B, or Class C shares.
EXPENSES
SHAREHOLDER TRANSACTION EXPENSES are charges you may pay when you buy
or sell Institutional Class shares of a fund. In addition, you may be
charged an annual account maintenance fee if your account balance
falls below $2,500. See "Transaction Details," page , for an
explanation of how and when these charges apply.
INSTITUTIONAL CLASS
SALES CHARGE ON PURCHASES NONE
AND REINVESTED DISTRIBUTIONS
DEFERRED SALES CHARGE ON NONE
REDEMPTIONS
REDEMPTION FEE 1.00%
(SHORT-TERM TRADING FEE)
ON SHARES HELD LESS THAN
LESS THAN 60 DAYS (AS A %
OF AMOUNT REDEEMED)
ANNUAL ACCOUNT $12.00
MAINTENANCE FEE (FOR
ACCOUNTS UNDER $2,500)
ANNUAL OPERATING EXPENSES are paid out of each fund's assets. Each
fund pays a management fee to Fidelity Management & Research Company
(FMR). Each fund also incurs other expenses for services such as
maintaining shareholder records and furnishing shareholder statements
and financial reports.
Institutional Class's expenses are factored into its share price or
dividends and are not charged directly to shareholder accounts (see
"Breakdown of Expenses" on page ).
The following figures are based on historical expenses of
Institutional Class of each fund and are calculated as a percentage of
average net assets of the Institutional Class of each fund.
EXPENSE TABLE EXAMPLE: You would pay the following amount in total
expenses on a $1,000 investment in Institutional Class shares of a
fund, assuming a 5% annual return and full redemption at the end of
each time period. Total expenses shown below include any shareholder
transaction expenses and Institutional Class's annual operating
expenses.
OPERATING EXPENSES EXAMPLES
CONSUMER MANAGEMENT FEE 0.59% 1 YEAR $15
INDUSTRIES
12B-1 FEE NONE 3 YEARS $47
OTHER EXPENSES 0.91% 5 YEARS $82
(AFTER
REIMBURSEMENT)
TOTAL OPERATING 1.50% 10 YEARS $179
EXPENSES
CYCLICAL MANAGEMENT FEE 0.59% 1 YEAR $15
INDUSTRIES
12B-1 FEE NONE 3 YEARS $47
OTHER EXPENSES 0.91% 5 YEARS $82
(AFTER
REIMBURSEMENT)
TOTAL OPERATING 1.50% 10 YEARS $179
EXPENSES
FINANCIAL MANAGEMENT FEE 0.59% 1 YEAR $12
SERVICES
12B-1 FEE NONE 3 YEARS $36
OTHER EXPENSES 0.55% 5 YEARS $63
TOTAL OPERATING 1.14% 10 YEARS $139
EXPENSES
HEALTH CARE MANAGEMENT FEE 0.59% 1 YEAR $11
12B-1 FEE NONE 3 YEARS $34
OTHER EXPENSES 0.48% 5 YEARS $59
TOTAL OPERATING 1.07% 10 YEARS $131
EXPENSES
NATURAL MANAGEMENT FEE 0.59% 1 YEAR $10
RESOURCES
12B-1 FEE NONE 3 YEARS $30
OTHER EXPENSES 0.36% 5 YEARS $53
TOTAL OPERATING 0.95% 10 YEARS $117
EXPENSES
TECHNOLOGY MANAGEMENT FEE 0.59% 1 YEAR $11
12B-1 FEE NONE 3 YEARS $35
OTHER EXPENSES 0.51% 5 YEARS $61
TOTAL OPERATING 1.10% 10 YEARS $134
EXPENSES
UTILITIES MANAGEMENT FEE 0.59% 1 YEAR $15
GROWTH
12B-1 FEE NONE 3 YEARS $46
OTHER EXPENSES 0.87% 5 YEARS $80
TOTAL OPERATING 1.46% 10 YEARS $175
EXPENSES
THESE EXAMPLES ILLUSTRATE THE EFFECT OF EXPENSES, BUT ARE NOT MEANT
TO SUGGEST ACTUAL OR EXPECTED EXPENSES OR RETURNS, ALL OF WHICH MAY
VARY.
A portion of the brokerage commissions that a fund pays is used to
reduce that fund's expenses. In addition, each fund has entered into
arrangements with its custodian and transfer agent whereby credits
realized as a result of uninvested cash balances are used to reduce
custodian and transfer agent expenses. Including these reductions, the
total Institutional Class operating expenses presented in the
preceding table would have been:
INSTITUTIONAL CLASS
CONSUMER INDUSTRIES 1.48%
CYCLICAL INDUSTRIES N/A
FINANCIAL SERVICES 1.13%
HEALTH CARE 1.04%
NATURAL RESOURCES 0.91%
TECHNOLOGY 1.07%
UTILITIES GROWTH 1.43%
FMR has voluntarily agreed to reimburse the Institutional Class of
each fund to the extent that total operating expenses (excluding
interest, taxes, brokerage commissions and extraordinary expenses), as
a percentage of their respective average net assets, exceed the
following rates:
EFFECTIVE
DATE
CONSUMER INDUSTRIES 1.50% 9/1/96
CYCLICAL INDUSTRIES 1.50% 9/1/96
FINANCIAL SERVICES 1.50% 9/1/96
HEALTH CARE 1.50% 9/1/96
NATURAL RESOURCES 1.50% 8/30/96
TECHNOLOGY 1.50% 9/1/96
UTILITIES GROWTH 1.50% 9/1/96
If these agreements were not in effect, other expenses and total
operating expenses of the Institutional Class of each fund, as a
percentage of average net assets, would have been the following
amounts:
OTHER TOTAL
EXPENSES EXPENSES
CONSUMER INDUSTRIES 1.19% 1.78%
CYCLICAL INDUSTRIES 2.94% 3.53%
FINANCIAL HIGHLIGHTS
The financial highlights tables that follow contain annual information
which has been audited by PricewaterhouseCoopers LLP, independent
accountants. The funds' financial highlights, financial statements,
and reports of the auditor are included in the funds' Annual Report,
and are incorporated by reference into (are legally part of) the
funds' SAI. Contact FDC or your investment professional for a free
copy of the Annual Report or the SAI.
CONSUMER INDUSTRIES INSTITUTIONAL CLASS
SELECTED PER-SHARE DATA AND RATIOS
YEARS ENDED JULY 31 1998 1997E
NET ASSET VALUE, BEGINNING $ 13.51 $ 10.00
OF PERIOD
INCOME FROM INVESTMENT
OPERATIONS
NET INVESTMENT INCOME (.03) (.01)
(LOSS)D
NET REALIZED AND 3.31 3.59
UNREALIZED GAIN (LOSS)
TOTAL FROM INVESTMENT 3.28 3.58
OPERATIONS
LESS DISTRIBUTIONS
FROM NET REALIZED GAIN (1.70)I (.07)I
REDEMPTION FEES ADDED .03 --
TO PAID IN CAPITAL
NET ASSET VALUE, END OF $ 15.12 $ 13.51
PERIOD
TOTAL RETURNB,C 27.70% 35.98%
NET ASSETS, END OF $ 4,745 $ 1,333
PERIOD (000 OMITTED)
RATIO OF EXPENSES TO 1.50%F 1.50%A,F
AVERAGE NET ASSETS
RATIO OF EXPENSES TO 1.48%G 1.48%A.G
AVERAGE NET ASSETS AFTER
EXPENSE REDUCTIONS
RATIO OF NET INVESTMENT (.20)% (.13)%A
INCOME (LOSS) TO AVERAGE
NET ASSETS
PORTFOLIO TURNOVER 144% 203%A
AVERAGE COMMISSION $ .0242 $ .0307
RATEH
A ANNUALIZED
B THE TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT
ANNUALIZED.
C THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
D NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON
AVERAGE SHARES OUTSTANDING DURING THE PERIOD.
E FOR THE PERIOD SEPTEMBER 3, 1996 (COMMENCEMENT OF SALE OF
INSTITUTIONAL CLASS SHARES) TO JULY 31, 1997
F FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD
HAVE BEEN HIGHER.
G FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES.
H A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE
FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY
VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF
TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND
COMMISSION RATE STRUCTURES MAY DIFFER.
I THE AMOUNTS SHOWN REFLECT CERTAIN RECLASSIFICATIONS RELATED TO BOOK
TO TAX DIFFERENCES.
CYCLICAL INDUSTRIES INSTITUTIONAL CLASS
SELECTED PER-SHARE DATA AND RATIOS
YEARS ENDED JULY 31 1998 1997E
NET ASSET VALUE, $ 13.84 $ 10.00
BEGINNING OF PERIOD
INCOME FROM INVESTMENT
OPERATIONS
NET INVESTMENT .01I .03
INCOMED
NET REALIZED AND .75 3.91
UNREALIZED GAIN (LOSS)
TOTAL FROM INVESTMENT .76 3.94
OPERATIONS
LESS DISTRIBUTIONS
FROM NET INVESTMENT -- (.02)
INCOME
FROM NET REALIZED GAIN (.95) (.08)
TOTAL DISTRIBUTIONS (.95) (.10)
REDEMPTION FEES ADDED .03 --
TO PAID IN CAPITAL
NET ASSET VALUE, END OF $ 13.68 $ 13.84
PERIOD
TOTAL RETURNB,C 6.32% 39.64%
NET ASSETS, END OF $ 1,360 $ 1,756
PERIOD (000 OMITTED)
RATIO OF EXPENSES TO 1.50%F 1.50%A,F
AVERAGE NET ASSETS
RATIO OF EXPENSES TO 1.50% 1.48%A,G
AVERAGE NET ASSETS AFTER
EXPENSE REDUCTIONS
RATIO OF NET INVESTMENT .04% .25%A
INCOME TO AVERAGE NET
ASSETS
PORTFOLIO TURNOVER 100% 155%A
AVERAGE COMMISSION $ .0245 $ .0210
RATEH
A ANNUALIZED
B THE TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT
ANNUALIZED.
C THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
D NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.
E FOR THE PERIOD SEPTEMBER 3, 1996 (COMMENCEMENT OF SALE OF
INSTITUTIONAL CLASS SHARES) TO JULY 31, 1997
F FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD
HAVE BEEN HIGHER.
G FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES.
H A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE
FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY
VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF
TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND
COMMISSION RATE STRUCTURES MAY DIFFER.
I DURING THE PERIOD, A SIGNIFICANT SHAREHOLDER REDEMPTION CAUSED AN
UNUSUALLY HIGH LEVEL OF INVESTMENT INCOME PER SHARE.
FINANCIAL SERVICES INSTITUTIONAL CLASS
SELECTED PER-SHARE DATA AND RATIOS
YEARS ENDED JULY 31 1998 1997E
NET ASSET VALUE, $ 15.14 $ 10.00
BEGINNING OF PERIOD
INCOME FROM INVESTMENT
OPERATIONS
NET INVESTMENT .14 .10
INCOMED
NET REALIZED AND 3.79 5.06
UNREALIZED GAIN (LOSS)
TOTAL FROM INVESTMENT 3.93 5.16
OPERATIONS
LESS DISTRIBUTIONS
FROM NET INVESTMENT (.05) (.02)
INCOME
FROM NET REALIZED GAIN (.23) (.01)
TOTAL DISTRIBUTIONS (.28) (.03)
REDEMPTION FEES ADDED .01 .01
TO PAID IN CAPITAL
NET ASSET VALUE, END OF $ 18.80 $ 15.14
PERIOD
TOTAL RETURNB,C 26.39% 51.78%
NET ASSETS, END OF $ 5,270 $ 3,758
PERIOD (000 OMITTED)
RATIO OF EXPENSES TO 1.14% 1.50%A,F
AVERAGE NET ASSETS
RATIO OF EXPENSES TO 1.13%G 1.47%A,G
AVERAGE NET ASSETS AFTER
EXPENSE REDUCTIONS
RATIO OF NET INVESTMENT .81% .85%A
INCOME TO AVERAGE NET
ASSETS
PORTFOLIO TURNOVER 54% 26%A
AVERAGE COMMISSION $ .0395 $ .0348
RATEH
A ANNUALIZED
B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
C TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
D NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.
E FOR THE PERIOD SEPTEMBER 3, 1996 (COMMENCEMENT OF SALE OF
INSTITUTIONAL CLASS SHARES) TO JULY 31, 1997
F FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD
HAVE BEEN HIGHER.
G FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES.
H A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE
FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY
VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF
TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND
COMMISSION RATE STRUCTURES MAY DIFFER.
HEALTH CARE INSTITUTIONAL CLASS
SELECTED PER-SHARE DATA AND RATIOS
YEARS ENDED JULY 31 1998 1997E
NET ASSET VALUE, $ 14.12 $ 10.00
BEGINNING OF PERIOD
INCOME FROM INVESTMENT
OPERATIONS
NET INVESTMENT .03 .01
INCOMED
NET REALIZED AND 3.47 4.11
UNREALIZED GAIN (LOSS)
TOTAL FROM INVESTMENT 3.50 4.12
OPERATIONS
LESS DISTRIBUTIONS
FROM NET REALIZED GAIN (.90) --
REDEMPTION FEES ADDED .01 --
TO PAID IN CAPITAL
NET ASSET VALUE, END OF $ 16.73 $ 14.12
PERIOD
TOTAL RETURNB,C 26.70% 41.20%
NET ASSETS, END OF $ 10,424 $ 6,875
PERIOD (000 OMITTED)
RATIO OF EXPENSES TO 1.07% 1.50%A,F
AVERAGE NET ASSETS
RATIO OF EXPENSES TO 1.04%G 1.49%A,G
AVERAGE NET ASSETS AFTER
EXPENSE REDUCTIONS
RATIO OF NET INVESTMENT .17% .08%A
INCOME TO AVERAGE NET
ASSETS
PORTFOLIO TURNOVER 85% 67%A
AVERAGE COMMISSION $ .0464 $ .0383
RATEH
A ANNUALIZED
B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
C TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
D NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.
E FOR THE PERIOD SEPTEMBER 3, 1996 (COMMENCEMENT OF SALE OF
INSTITUTIONAL CLASS SHARES) TO JULY 31, 1997
F FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD
HAVE BEEN HIGHER.
G FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES .
H A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE
FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY
VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF
TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND
COMMISSION RATE STRUCTURES MAY DIFFER.
NATURAL RESOURCES INSTITUTIONAL CLASS
SELECTED PER-SHARE DATA
AND RATIOS
YEARS ENDED JULY 31 1998 1997I 1996J 1995H
NET ASSET VALUE, $ 26.42 $ 25.17 $ 19.27 $ 18.87
BEGINNING OF PERIOD
INCOME FROM INVESTMENT
OPERATIONS
NET INVESTMENT INCOME .13 .04 .04 (.01)
(LOSS)D
NET REALIZED AND (3.35) 2.85 6.55 .41
UNREALIZED GAIN (LOSS)
TOTAL FROM INVESTMENT (3.22) 2.89 6.59 .40
OPERATIONS
LESS DISTRIBUTIONS
FROM NET INVESTMENT (.09) (.05) -- --
INCOME
IN EXCESS OF NET -- (.02) -- --
INVESTMENT INCOME
FROM NET REALIZED GAIN (3.97) (1.57) (.69) --
TOTAL DISTRIBUTIONS (4.06) (1.64) (.69) --
REDEMPTION FEES ADDED .01 -- -- --
TO PAID IN CAPITAL
NET ASSET VALUE, END OF $ 19.15 $ 26.42 $ 25.17 $ 19.27
PERIOD
TOTAL RETURNB,C (14.29)% 11.95% 35.13% 2.12%
NET ASSETS, END OF $ 3,922 $ 10,042 $ 9,860 $ 718
PERIOD (000 OMITTED)
RATIO OF EXPENSES TO .95% 1.08%A 1.44% 1.68%A,E
AVERAGE NET ASSETS
RATIO OF EXPENSES TO .91%F 1.06%A,F 1.39%F 1.66%A,F
AVERAGE NET ASSETS AFTER
EXPENSE REDUCTIONS
RATIO OF NET INVESTMENT .55% .24%A .17% (.13)%A
INCOME (LOSS) TO AVERAGE
NET ASSETS
PORTFOLIO TURNOVER 97% 116%A 137% 161%
AVERAGE COMMISSION $ .0185 $ .0286 $ .0337
RATEG
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
D NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON
AVERAGE SHARES OUTSTANDING DURING THE PERIOD.
E FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD
HAVE BEEN HIGHER.
F FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES .
G FOR FISCAL YEARS BEGINNING ON OR AFTER SEPTEMBER 1, 1995, A FUND IS
REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR
SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY
FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF TRADES
EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION
RATE STRUCTURES MAY DIFFER.
H FOR THE PERIOD JULY 3, 1995 (COMMENCEMENT OF SALE OF INSTITUTIONAL
CLASS SHARES) TO OCTOBER 31, 1995
I NINE MONTHS ENDED JULY 31, 1997
J FOR THE YEAR ENDED OCTOBER 31, 1996
TECHNOLOGY INSTITUTIONAL CLASS
SELECTED PER-SHARE DATA AND RATIOS
YEARS ENDED JULY 31 1998 1997E
NET ASSET VALUE, $ 15.98 $ 10.00
BEGINNING OF PERIOD
INCOME FROM
INVESTMENT OPERATIONS
NET INVESTMENT (.04) (.06)
INCOME (LOSS)D
NET REALIZED AND .55 6.12
UNREALIZED GAIN (LOSS)
TOTAL FROM .51 6.06
INVESTMENT OPERATIONS
LESS DISTRIBUTIONS
FROM NET REALIZED (1.15) (.09)
GAIN
IN EXCESS OF NET (.46) --
REALIZED GAIN
TOTAL DISTRIBUTIONS (1.61) (.09)
REDEMPTION FEES .01 .01
ADDED TO PAID IN CAPITAL
NET ASSET VALUE, END $ 14.89 $ 15.98
OF PERIOD
TOTAL RETURNB,C 4.26% 60.95%
NET ASSETS, END OF $ 7,060 $ 3,598
PERIOD (000 OMITTED)
RATIO OF EXPENSES TO 1.10% 1.50%A,F
AVERAGE NET ASSETS
RATIO OF EXPENSES TO 1.07%G 1.44%A,G
AVERAGE NET ASSETS AFTER
EXPENSE REDUCTIONS
RATIO OF NET (.30)% (.50)%A
INVESTMENT INCOME (LOSS) TO
AVERAGE NET ASSETS
PORTFOLIO TURNOVER 348% 517%A
AVERAGE COMMISSION $ .0418 $ .0415
RATEH
A ANNUALIZED
B THE TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT
ANNUALIZED.
C THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
D NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON
AVERAGE SHARES OUTSTANDING DURING THE PERIOD.
E FOR THE PERIOD SEPTEMBER 3, 1996 (COMMENCEMENT OF SALE OF
INSTITUTIONAL CLASS SHARES) TO JULY 31, 1997
F FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD
HAVE BEEN HIGHER.
G FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES.
H A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE
FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY
VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF
TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND
COMMISSION RATE STRUCTURES MAY DIFFER.
UTILITIES GROWTH INSTITUTIONAL CLASS
SELECTED PER-SHARE DATA AND RATIOS
YEARS ENDED JULY 31 1998 1997E
NET ASSET VALUE, $ 13.09 $ 10.00
BEGINNING OF PERIOD
INCOME FROM
INVESTMENT OPERATIONS
NET INVESTMENT .04 .14
INCOMED
NET REALIZED AND 4.17 3.10
UNREALIZED GAIN (LOSS)
TOTAL FROM 4.21 3.24
INVESTMENT OPERATIONS
LESS DISTRIBUTIONS
FROM NET (.07)I (.04)
INVESTMENT INCOME
FROM NET REALIZED (1.22)I (.11)
GAIN
TOTAL DISTRIBUTIONS (1.29) (.15)
REDEMPTION FEES .01 --
ADDED TO PAID IN CAPITAL
NET ASSET VALUE, END $ 16.02 $ 13.09
OF PERIOD
TOTAL RETURNB,C 34.36% 32.68%
NET ASSETS, END OF $ 3,430 $ 2,246
PERIOD (000 OMITTED)
RATIO OF EXPENSES TO 1.46% 1.50%A,F
AVERAGE NET ASSETS
RATIO OF EXPENSES TO 1.43%G 1.50%A
AVERAGE NET ASSETS AFTER
EXPENSE REDUCTIONS
RATIO OF NET .30% 1.29%A
INVESTMENT INCOME TO
AVERAGE NET ASSETS
PORTFOLIO TURNOVER 151% 13%A
AVERAGE COMMISSION $ .0298 $ .0162
RATEH
A ANNUALIZED
B THE TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT
ANNUALIZED.
C THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
D NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.
E FOR THE PERIOD SEPTEMBER 3, 1996 (COMMENCEMENT OF SALE OF
INSTITUTIONAL CLASS SHARES) TO JULY 31, 1997
F FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD
HAVE BEEN HIGHER.
G FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES.
H A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE
FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY
VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF
TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND
COMMISSION RATE STRUCTURES MAY DIFFER.
I THE AMOUNTS SHOWN REFLECT CERTAIN RECLASSIFICATIONS RELATED TO BOOK
TO TAX DIFFERENCES.
PERFORMANCE
Mutual fund performance is commonly measured as TOTAL RETURN. The
total returns that follow are based on historical fund results and do
not reflect the effect of taxes.
Each fund's fiscal year runs from August 1 through July 31. The tables
below show the performance of the Institutional Class of each fund
over past fiscal years. The charts beginning on page present calendar
year performance for the Institutional Class of each fund compared to
different measures.
INSTITUTIONAL CLASS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
AVERAGE ANNUAL TOTAL RETURN CUMULATIVE TOTAL RETURN
PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS/ PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS/
LIFE OF FUND+ LIFE OF FUND+
CONSUMER 27.70% N/A 33.56% 27.70% N/A 73.64%
INDUSTRIES
CYCLICAL 6.32% N/A 23.03% 6.32% N/A 48.47%
INDUSTRIES
FINANCIAL 26.39% N/A 40.72% 26.39% N/A 91.83%
SERVICES
HEALTH CARE 26.70% N/A 35.66% 26.70% N/A 78.89%
NATURAL -14.29% 10.57% 12.96% -14.29% 65.26% 238.14%
RESOURCES*
TECHNOLOGY 4.26% N/A 31.18% 4.26% N/A 67.80%
UTILITIES GROWTH 34.36% N/A 35.41% 34.36% N/A 78.26%
</TABLE>
+ FOR EACH FUND (EXCEPT NATURAL RESOURCES), LIFE OF FUND FIGURES ARE
FROM COMMENCEMENT OF OPERATIONS (SEPTEMBER 3, 1996) THROUGH THE PERIOD
ENDED JULY 31, 1998.
* INITIAL OFFERING OF INSTITUTIONAL CLASS OF NATURAL RESOURCES TOOK
PLACE ON JULY 3, 1995. RETURNS PRIOR TO JULY 3, 1995 ARE THOSE OF
CLASS T WHICH REFLECT A 12B-1 FEE OF 0.65%. IF CLASS T'S 12B-1 FEE HAD
NOT BEEN REFLECTED, TOTAL RETURNS PRIOR TO JULY 3, 1995 WOULD HAVE
BEEN HIGHER.
If FMR had not reimbursed certain class expenses during these periods,
total returns would have been lower.
EXPLANATION OF TERMS
TOTAL RETURN is the change in value of an investment over a given
period, assuming reinvestment of any dividends and capital gains. A
CUMULATIVE TOTAL RETURN reflects actual performance over a stated
period of time. An AVERAGE ANNUAL TOTAL RETURN is a hypothetical rate
of return that, if achieved annually, would have produced the same
cumulative total return if performance had been constant over the
entire period. Average annual total returns smooth out variations in
performance; they are not the same as actual year-by-year results.
STANDARD & POOR'S 500 INDEX (S&P 500(registered trademark)) is a
widely recognized, unmanaged index of common stocks.
Unlike the Institutional Class's returns, the total returns of each
comparative index do not include the effect of any brokerage
commissions, transaction fees, or other costs of investing.
THE CONSUMER PRICE INDEX is a widely recognized measure of inflation
calculated by the U.S. Government.
GOLDMAN SACHS CONSUMER INDUSTRIES INDEX is a market
capitalization-weighted index of 300 stocks designed to measure the
performance of companies in the consumer industries sector.
GOLDMAN SACHS CYCLICAL INDUSTRIES INDEX is a market
capitalization-weighted index of 277 stocks designed to measure the
performance of companies in the cyclical industries sector.
GOLDMAN SACHS FINANCIAL SERVICES INDEX is a market
capitalization-weighted index of 271 stocks designed to measure the
performance of companies in the financial services sector.
GOLDMAN SACHS HEALTH CARE INDEX is a market capitalization-weighted
index of 93 stocks designed to measure the performance of companies in
the health care sector.
GOLDMAN SACHS NATURAL RESOURCES INDEX is a market
capitalization-weighted index of 96 stocks designed to measure the
performance of companies in the natural resource sector.
GOLDMAN SACHS TECHNOLOGY INDEX is a market capitalization-weighted
index of 190 stocks designed to measure the performance of companies
in the technology sector.
GOLDMAN SACHS UTILITIES INDEX is a market capitalization-weighted
index of 136 stocks designed to measure the performance of companies
in the utilities sector.
Other illustrations of fund performance may show moving averages over
specified periods.
The funds' recent strategies, performance, and holdings are detailed
twice a year in financial reports, which are sent to all shareholders.
For current performance or a free annual report, please contact your
investment professional or, if you are investing through a
broker-dealer or insurance representative, call 1-800-522-7297 or, if
you are investing through a bank representative, or call
1-800-843-3001.
TOTAL RETURNS ARE BASED ON PAST RESULTS AND ARE NOT AN INDICATION OF
FUTURE PERFORMANCE.
THE FUNDS IN DETAIL
CHARTER
EACH FUND IS A MUTUAL FUND: an investment that pools shareholders'
money and invests it toward a specified goal. Financial Services is a
diversified fund, and Consumer Industries, Cyclical Industries, Health
Care, Natural Resources, Technology, and Utilities Growth are
non-diversified funds of Fidelity Advisor Series VII, an open-end
management investment company organized as a Massachusetts business
trust on March 21, 1980.
EACH FUND IS GOVERNED BY A BOARD OF TRUSTEES which is responsible for
protecting the interests of shareholders. The trustees are experienced
executives who meet periodically throughout the year to oversee the
funds' activities, review contractual arrangements with companies that
provide services to the funds, and review the funds' performance. The
trustees serve as trustees for other Fidelity funds. The majority of
trustees are not otherwise affiliated with Fidelity.
THE FUNDS MAY HOLD SPECIAL SHAREHOLDER MEETINGS AND MAIL PROXY
MATERIALS. These meetings may be called to elect or remove trustees,
change fundamental policies, approve a management contract, or for
other purposes. Shareholders not attending these meetings are
encouraged to vote by proxy. The transfer agent will mail proxy
materials in advance, including a voting card and information about
the proposals to be voted on. The number of votes you are entitled to
is based upon the dollar value of your investment.
Separate votes are taken by each class of shares, fund, or trust, if a
matter affects just that class of shares, fund, or trust,
respectively.
FMR AND ITS AFFILIATES
Fidelity Investments(registered trademark) is one of the largest
investment management organizations in the United States and has its
principal business address at 82 Devonshire Street, Boston,
Massachusetts 02109. It includes a number of different subsidiaries
and divisions which provide a variety of financial services and
products. The funds employ various Fidelity companies to perform
activities required for their operation.
The funds are managed by FMR, which chooses the funds' investments and
handles their business affairs.
Affiliates assist FMR with foreign investments.
(small solid bullet) Fidelity Management & Research (U.K.) Inc. (FMR
U.K.), in London, England, serves as a sub-adviser for each fund.
(small solid bullet) Fidelity Management & Research Far East Inc. (FMR
Far East), in Tokyo, Japan, serves as a sub-adviser for each fund.
As of July 31, 1998, FMR advised funds having approximately 38 million
shareholder accounts with a total value of more than $611 billion.
Douglas Chase is manager of Advisor Consumer Industries, which he has
managed since August 1997. He also manages other Fidelity funds. Mr.
Chase joined Fidelity as an equity analyst in 1993 after receiving his
MBA from the University of Michigan.
Albert Ruback is manager of Advisor Cyclical Industries, which he has
managed since September 1996. Previously, he managed other Fidelity
funds. Mr. Ruback joined Fidelity as an analyst in 1991, after
receiving his MBA from Harvard Business School.
Robert Ewing is manager of Advisor Financial Services, which he has
managed since January 1998. He also manages another Fidelity fund.
Since joining Fidelity in 1990, Mr. Ewing has worked as a research
associate, analyst and manager.
Beso Sikharulidze is manager of Advisor Health Care, which he has
managed since June 1997. He also manages another Fidelity fund. Mr.
Sikharulidze joined Fidelity as an analyst in 1992, after receiving
his MBA from Harvard University.
Lawrence Rakers is manager of Advisor Natural Resources, which he has
managed since January 1997. He also manages other Fidelity funds. Mr.
Rakers joined Fidelity as an analyst in 1993. Previously, he was a
project engineer for Loral Corporation from 1986 to 1993.
Michael Tempero is manager of Advisor Technology, which he has managed
since July 1998. He also manages another Fidelity fund. Mr. Tempero
joined Fidelity as an analyst in 1993, after receiving his MBA from
the University of Chicago.
Nick Thakore is manager of Advisor Utilities Growth, which he has
managed since August 1997. He also manages other Fidelity funds. Mr.
Thakore joined Fidelity in 1993 as an analyst, after receiving his MBA
from The Wharton School at the University of Pennsylvania.
Fidelity investment personnel may invest in securities for their own
accounts pursuant to a code of ethics that establishes procedures for
personal investing and restricts certain transactions.
FDC distributes and markets Fidelity's funds and services.
Fidelity Investments Institutional Operations Company, Inc. (FIIOC)
performs transfer agent servicing functions for the Institutional
Class of each fund.
FMR Corp. is the ultimate parent company of FMR, FMR U.K., and FMR Far
East. Members of the Edward C. Johnson 3d family are the predominant
owners of a class of shares of common stock representing approximately
49% of the voting power of FMR Corp. Under the Investment Company Act
of 1940 (the 1940 Act), control of a company is presumed where one
individual or group of individuals owns more than 25% of the voting
stock of that company; therefore, the Johnson family may be deemed
under the 1940 Act to form a controlling group with respect to FMR
Corp.
As of July 31, 1998, approximately 27% of Advisor Cyclical Industries
Fund's total outstanding shares were held by FMR.
FMR may allocate brokerage transactions to its broker-dealer
affiliates and in a manner that takes into account the sale of shares
of Fidelity Advisor Funds , provided that the fund receives
brokerage services and commission rates comparable to those of other
broker-dealers.
INVESTMENT PRINCIPLES AND RISKS
Each fund concentrates its investments in the securities of companies
in a particular market sector. FMR normally invests at least 80% of
each fund's assets in securities of companies principally engaged in
the business activities of its named market sector. For this purpose,
Natural Resources treats investments in precious metals and
instruments whose value is linked to the price of precious metals as
investments in its named market sector. The funds will invest
primarily in equity securities, although they may invest in other
types of instruments as well.
The funds may involve significantly greater risks and therefore may
experience greater volatility than a mutual fund that does not
concentrate its investments. Because of the funds' narrow focus, each
fund's performance is closely tied to and affected by industries
within its market sector. Companies in an industry are often faced
with the same obstacles, issues, or regulatory burdens, and their
securities may react similarly and move in unison with these or other
market conditions. Also, because the funds (except Financial Services)
are non-diversified, they are further exposed to increased volatility.
Non-diversified funds may have greater investments in a single issuer
than diversified funds, so the performance of a single issuer can have
a substantial impact on a fund's share price. Finally, the funds'
strategies in seeking to achieve their investment objectives may lead
to investments in smaller companies. Securities of smaller companies,
especially those whose business involves emerging products or
concepts, may be more volatile due to their limited product lines,
markets, or financial resources, or their susceptibility to major
setbacks or downturns.
The value of the funds' investments varies in response to many
factors. Stock values fluctuate in response to the activities of
individual companies and general market and economic conditions.
Investments in foreign securities may involve risks in addition to
those of U.S. investments, including increased political and economic
risk, as well as exposure to currency fluctuations.
FMR may use various investment techniques to hedge a portion of a
fund's risks, but there is no guarantee that these strategies will
work as FMR intends. When you sell your shares of a fund, they may be
worth more or less than what you paid for them.
FMR normally invests each fund's assets according to its investment
strategy. Each fund also reserves the right to invest without
limitation in preferred stocks and investment-grade debt instruments
for temporary, defensive purposes.
CONSUMER INDUSTRIES FUND seeks capital appreciation.
The fund invests primarily in companies engaged in the manufacture and
distribution of goods to consumers both domestically and
internationally. These companies may include, for example, companies
that manufacture or sell durable goods such as homes, cars, boats,
major appliances, and personal computers. The fund may also invest in
companies that manufacture, wholesale or retail non-durable goods such
as food, beverages, tobacco, health care products, household and
personal care products, apparel, and entertainment products (e.g.,
books, magazines, TV, cable, movies, music, gaming, sports). In
addition, the fund may invest in companies that provide consumer
products and services such as lodging, childcare, convenience stores
and car rentals.
The success of consumer product manufacturers and retailers is closely
tied to the performance of the overall economy, interest rates,
competition, and consumer confidence. Success depends heavily on
disposable household income and consumer spending. Changes in
demographics and consumer tastes can also affect the demand for, and
success of, consumer products in the marketplace.
CYCLICAL INDUSTRIES FUND seeks capital appreciation.
The fund invests primarily in companies engaged in the research,
development, manufacture, distribution, supply, or sale of materials,
equipment, products or services related to cyclical industries. These
may include the automotive, chemical, construction and housing,
defense and aerospace, environmental services, industrial equipment
and materials, paper and forest products, and transportation
industries.
Many companies in these industries are significantly affected by
general economic trends including employment, economic growth, and
interest rates. Other factors that may affect these industries are
changes in consumer sentiment and spending, commodity prices,
legislation, government regulation and spending, import controls, and
worldwide competition. At times, worldwide production of these
materials used in cyclical industries has exceeded demand as a result
of, for example, over-building or economic downturns. During these
times, commodity price declines and unit volume reductions resulted in
poor investment returns and losses. Furthermore, a company in the
cyclical industries may be subject to liability for environmental
damage, depletion of resources, and mandated expenditures for safety
and pollution control.
FINANCIAL SERVICES Fund seeks capital appreciation.
The fund invests primarily in companies that provide financial
services to consumers and industry. Examples of companies in the
financial services sector include commercial banks, savings and loan
associations, brokerage companies, insurance companies, real estate
and leasing companies, and companies that span across these segments.
Under SEC regulations, the fund may not invest more than 5% of its
total assets in the equity securities of any company that derives more
than 15% of its revenues from brokerage or investment management
activities.
Financial services companies are subject to extensive governmental
regulation which may limit both the amounts and types of loans and
other financial commitments they can make, and the interest rates and
fees they can charge. Profitability is largely dependent on the
availability and cost of capital funds, and can fluctuate
significantly when interest rates change. Credit losses resulting from
financial difficulties of borrowers can negatively impact the sector.
Insurance companies may be subject to severe price competition.
Legislation is currently being considered which would reduce the
separation between commercial and investment banking businesses. If
enacted, it could significantly impact the sector and the fund.
HEALTH CARE FUND seeks capital appreciation.
The fund invests primarily in companies engaged in the design,
manufacture, or sale of products or services used for or in connection
with health care or medicine. Companies in the health care sector may
include, for example, pharmaceutical companies, companies involved in
research and development, companies involved in the operation of
health care facilities, and other companies involved in the design,
manufacture, or sale of related products or services.
Many of these companies are subject to government regulation and
approval of their products and services, which could have a
significant effect on their price and availability. Furthermore, the
types of products or services produced or provided by these companies
may quickly become obsolete.
NATURAL RESOURCES FUND seeks long-term growth of capital and
protection of the purchasing power of shareholders' capital by
investing primarily in securities of foreign and domestic companies
that own or develop natural resources, or supply goods and services to
such companies, or in physical commodities.
The fund invests primarily in companies that own or develop natural
resources, or supply goods and services to such companies. These may
include companies involved either directly or through subsidiaries in
exploring, mining, refining, processing, transporting, fabricating,
dealing in, or owning natural resources. Natural resources include
precious metals (e.g., gold, platinum and silver), ferrous and
nonferrous metals (e.g., iron, aluminum and copper), strategic metals
(e.g., uranium and titanium), hydrocarbons (e.g., coal, oil and
natural gases), chemicals, forest products, real estate, food, textile
and tobacco products, and other basic commodities. The fund may also
invest in precious metals and instruments whose value is linked to the
price of precious metals.
Securities of companies in the natural resources sector are subject to
swift price and supply fluctuations that may be caused by events
relating to international political and economic developments, energy
conservation, the success of exploration projects, and tax and other
governmental regulatory policies. Investments in precious metals can
present concerns such as delivery, storage and maintenance, possible
illiquidity and the unavailability of accurate market valuations.
TECHNOLOGY FUND seeks capital appreciation.
The fund invests primarily in companies which have or will develop
products, processes, or services that will provide or will benefit
significantly from technological advances and improvements. These
companies may include, for example, companies that develop produce or
distribute products or services in the computer, semi-conductor,
electronics, communications, health care, and biotechnology sectors.
Competitive pressures may have a significant effect on the financial
condition of companies in the technology sector. For example, if
technology continues to advance at an accelerated rate, and the number
of companies and product offerings continues to expand, these
companies could become increasingly sensitive to short product cycles
and aggressive pricing.
UTILITIES GROWTH FUND seeks capital appreciation.
The fund invests primarily in companies in the public utilities
industry and companies deriving a majority of their revenues from
their public utility operations. These may include, for example,
companies that manufacture, produce, sell, or transmit gas or electric
energy; water supply, waste disposal and sewerage, sanitary service
companies; and companies involved in telephone, satellite, and other
communication fields.
Public utility stocks have traditionally produced above-average
dividend income, but the fund's investments are based on growth
potential. The fund may not own more than 5% of the outstanding voting
securities of more than one public utility company as defined by the
Public Utility Holding Company Act of 1935. The public utilities
industries may be subject to broad risks resulting from governmental
regulation, financing difficulties, supply and demand of services or
fuel, and special risks associated with natural resource conservation.
SECURITIES AND INVESTMENT PRACTICES
The following pages contain more detailed information about types of
instruments in which a fund may invest, strategies FMR may employ in
pursuit of a fund's investment objective, and a summary of related
risks. Any restrictions listed supplement those discussed earlier in
this section. A complete listing of each fund's limitations and more
detailed information about each fund's investments are contained in
the funds' SAI. Policies and limitations are considered at the time of
purchase; the sale of instruments is not required in the event of a
subsequent change in circumstances.
FMR may not buy all of these instruments or use all of these
techniques unless it believes that they are consistent with a fund's
investment objective and policies and that doing so will help a fund
achieve its goal. Fund holdings and recent investment strategies are
detailed in each fund's financial reports, which are sent to
shareholders twice a year. For a free SAI or financial report, call
your investment professional.
EQUITY SECURITIES may include common stocks, preferred stocks,
convertible securities, and warrants. Common stocks, the most familiar
type, represent an equity (ownership) interest in a corporation.
Although equity securities have a history of long-term growth in
value, their prices fluctuate based on changes in a company's
financial condition and on overall market and economic conditions.
Smaller companies are especially sensitive to these factors.
RESTRICTIONS: With respect to 75% of its total assets, Financial
Services may not invest in more than 10% of the outstanding voting
securities of a single issuer. This limitation does not apply to
securities of other investment companies.
Utilities Growth may not invest in more than 5% of the outstanding
voting securities of more than one public utility company as defined
by the Public Utility Holding Company Act of 1935.
Financial Services may not invest more than 5% of its total assets in
the equity securities of any company that derives more than 15% of its
revenues from brokerage or investment management activities.
DEBT SECURITIES. Bonds and other debt instruments are used by issuers
to borrow money from investors. The issuer generally pays the investor
a fixed, variable, or floating rate of interest, and must repay the
amount borrowed at maturity. Some debt securities, such as zero coupon
bonds, do not pay current interest, but are sold at a discount from
their face values.
Debt securities have varying levels of sensitivity to changes in
interest rates and varying degrees of credit quality. In general, bond
prices rise when interest rates fall, and fall when interest rates
rise. Longer-term bonds and zero coupon bonds are generally more
sensitive to interest rate changes.
In addition, bond prices are also affected by the credit quality of
the issuer. Investment-grade debt securities are medium- and
high-quality securities. Some, however, may possess speculative
characteristics, and may be more sensitive to economic changes and to
changes in the financial condition of issuers.
RESTRICTIONS: Purchase of a debt security is consistent with a fund's
debt quality policy if it is rated at or above the stated level by
Moody's Investors Service or rated in the equivalent categories by
Standard & Poor's, or is unrated but judged to be of equivalent
quality by FMR.
Each fund currently intends to limit its investments in lower than
Baa-quality debt securities (sometimes called "junk bonds") to 5% of
its assets.
EXPOSURE TO FOREIGN MARKETS. Foreign securities, foreign currencies,
and securities issued by U.S. entities with substantial foreign
operations may involve additional risks and considerations. These
include risks relating to political, economic, or regulatory
conditions in foreign countries; fluctuations in foreign currencies;
withholding or other taxes; trading, settlement, custodial, and other
operational risks; and the potentially less stringent investor
protection and disclosure standards of foreign markets. Additionally,
governmental issuers of foreign debt securities may be unwilling to
pay interest and repay principal when due and may require that the
conditions for payment be renegotiated. All of these factors can make
foreign investments, especially those in emerging markets, more
volatile and potentially less liquid than U.S. investments.
REPURCHASE AGREEMENTS. In a repurchase agreement, a fund buys a
security at one price and simultaneously agrees to sell it back at a
higher price. Delays or losses could result if the other party to the
agreement defaults or becomes insolvent.
ADJUSTING INVESTMENT EXPOSURE. A fund can use various techniques to
increase or decrease its exposure to changing security prices,
interest rates, currency exchange rates, commodity prices, or other
factors that affect security values. These techniques may involve
derivative transactions such as buying and selling options and futures
contracts, entering into currency exchange contracts or swap
agreements, and purchasing indexed securities.
FMR can use these practices to adjust the risk and return
characteristics of a fund's portfolio of investments. If FMR judges
market conditions incorrectly or employs a strategy that does not
correlate well with a fund's investments, these techniques could
result in a loss, regardless of whether the intent was to reduce risk
or increase return. These techniques may increase the volatility of a
fund and may involve a small investment of cash relative to the
magnitude of the risk assumed. In addition, these techniques could
result in a loss if the counterparty to the transaction does not
perform as promised.
ILLIQUID AND RESTRICTED SECURITIES. Some investments may be determined
by FMR, under the supervision of the Board of Trustees, to be
illiquid, which means that they may be difficult to sell promptly at
an acceptable price. The sale of some illiquid securities, and some
other securities, may be subject to legal restrictions. Difficulty in
selling securities may result in a loss or may be costly to a fund.
RESTRICTIONS: Each fund may not invest more than 10% of its assets in
illiquid securities.
OTHER INSTRUMENTS may include real estate-related instruments.
CASH MANAGEMENT. A fund may invest in money market securities, in
repurchase agreements, and in a money market fund available only to
funds and accounts managed by FMR or its affiliates, whose goal is to
seek a high level of current income while maintaining a stable $1.00
share price. A major change in interest rates or a default on the
money market fund's investments could cause its share price to change.
DIVERSIFICATION. Diversifying a fund's investment portfolio can reduce
the risks of investing. This may include limiting the amount of money
invested in any one issuer or, on a broader scale, in any one
industry. Economic, business, or political changes can affect all
securities of a similar type. A fund that is not diversified may be
more sensitive to changes in the market value of a single issuer or
industry.
RESTRICTIONS: Each fund, except Financial Services, is considered
non-diversified. Generally, to meet federal tax requirements at the
close of each quarter, each fund (except Financial Services) does not
invest more than 25% of its total assets in the securities of any one
issuer and, with respect to 50% of total assets, does not invest more
than 5% of its total assets in the securities of any one issuer. With
respect to 75% of its total assets, Financial Services may not invest
more than 5% in the securities of any one issuer. These limitations do
not apply to U.S. Government securities or to securities of other
investment companies.
Each fund normally invests at least 80% of its assets, but always
invests at least 25% of its total assets, in securities of companies
principally engaged in the business activities of the industries in
the market sector identified for the fund.
BORROWING. Each fund may borrow from banks or from other funds advised
by FMR or its affiliates, or through reverse repurchase agreements. If
a fund borrows money, its share price may be subject to greater
fluctuation until the borrowing is paid off. If a fund makes
additional investments while borrowings are outstanding, this may be
considered a form of leverage.
RESTRICTIONS: Each fund may borrow only for temporary or emergency
purposes, but not in an amount exceeding 331/3% of its total assets.
LENDING securities to broker-dealers and institutions, including
Fidelity Brokerage Services, Inc. (FBSI), an affiliate of FMR, is a
means of earning income. This practice could result in a loss or a
delay in recovering a fund's securities. A fund may also lend money to
other funds advised by FMR or its affiliates.
RESTRICTIONS: Loans, in the aggregate, may not exceed 331/3% of a
fund's total assets.
FUNDAMENTAL INVESTMENT POLICIES AND RESTRICTIONS
Some of the policies and restrictions discussed on the preceding pages
are fundamental, that is, subject to change only by shareholder
approval. The following paragraphs restate all those that are
fundamental. All policies stated throughout this prospectus, other
than those identified in the following paragraphs, can be changed
without shareholder approval.
CONSUMER INDUSTRIES FUND invests primarily in companies engaged in the
manufacture and distribution of goods to consumers both domestically
and internationally.
CYCLICAL INDUSTRIES FUND invests primarily in companies engaged in the
research, development, manufacture, distribution, supply or sale of
materials, equipment, products or services related to cyclical
industries.
FINANCIAL SERVICES FUND invests primarily in companies providing
financial services to consumers and industry.
HEALTH CARE FUND invests primarily in companies engaged in the design,
manufacture, or sale of products or services used for or in connection
with health care or medicine.
NATURAL RESOURCES FUND seeks long-term growth of capital and
protection of the purchasing power of shareholders' capital by
investing primarily in securities of foreign and domestic companies
that own or develop natural resources, or supply goods and services to
such companies, or in physical commodities.
TECHNOLOGY FUND invests primarily in companies which have, or will
develop, products, processes or services that will provide or will
benefit significantly from technological advances and improvements.
UTILITIES GROWTH FUND invests primarily in companies in the public
utilities industry and companies deriving a majority of their revenues
from their public utility operations.
EACH FUND (except Natural Resources) seeks capital appreciation.
With respect to 75% of total assets, Financial Services may not invest
more than 5% in the securities of any one issuer and may not invest in
more than 10% of the outstanding voting securities of a single issuer.
These limitations do not apply to U.S. Government securities or to
securities of other investment companies.
Each fund invests at least 25% of its total assets in securities of
companies principally engaged in the business activities of the
industries in the market sector identified for the fund.
Each fund may borrow only for temporary or emergency purposes, but not
in an amount exceeding 331/3% of its total assets.
Loans, in the aggregate, may not exceed 331/3% of each fund's total
assets.
BREAKDOWN OF EXPENSES
Like all mutual funds, the funds pay fees related to their daily
operations. Expenses paid out of each class's assets are reflected in
that class's share price or dividends; they are neither billed
directly to shareholders nor deducted from shareholder accounts.
Each fund pays a MANAGEMENT FEE to FMR for managing its investments
and business affairs. FMR in turn pays fees to affiliates who provide
assistance with these services. Each fund also pays OTHER EXPENSES,
which are explained on page .
FMR may, from time to time, agree to reimburse each class of each fund
for management fees and other expenses above a specified limit. FMR
retains the ability to be repaid by a class if expenses fall below the
specified limit prior to the end of the fiscal year. Reimbursement
arrangements, which may be terminated at any time without notice, can
decrease a class's expenses and boost its performance.
MANAGEMENT FEE
The management fee is calculated and paid to FMR every month. The fee
is calculated by adding a group fee rate to an individual fund fee
rate, multiplying the result by the fund's monthly average net assets
and dividing by twelve.
The group fee rate is based on the average net assets of all the
mutual funds advised by FMR. This rate cannot rise above 0.52%, and it
drops as total assets under management increase.
For July 1998. the group fee rate for each fund was 0.2875%.
The individual fund fee rate for each fund is 0.30%.
The following table states the management fee, as a percentage of each
fund's average net assets for the fiscal year ended July 1998.
TOTAL MANAGEMENT
FEE
CONSUMER INDUSTRIES 0.59%
CYCLICAL INDUSTRIES 0.59%
FINANCIAL SERVICES 0.59%
HEALTH CARE 0.59%
NATURAL RESOURCES 0.59%
TECHNOLOGY 0.59%
UTILITIES GROWTH 0.59%
FMR HAS SUB-ADVISORY AGREEMENTS with FMR U.K. and FMR Far East. These
sub-advisers provide FMR with investment research and advice on
issuers based outside the United States. Under the sub-advisory
agreements, FMR pays FMR U.K. and FMR Far East fees equal to 110% and
105%, respectively, of the costs of providing these services.
The sub-advisers may also provide investment management services. In
return, FMR pays FMR U.K. and FMR Far East a fee equal to 50% of its
management fee rate with respect to a fund's investments that the
sub-adviser manages on a discretionary basis.
For the fiscal year ended July 1998, FMR, on behalf of each fund, paid
FMR U.K. and FMR Far East fees equal to less than 0.02% of each fund's
average net assets.
OTHER EXPENSES
While the management fee is a significant component of each fund's
annual operating costs, the funds have other expenses as well.
FIIOC performs transfer agency, dividend disbursing and shareholder
servicing functions for the Institutional Class of each fund. Fidelity
Service Company, Inc. (FSC) calculates the net asset value per share
(NAV) and dividends for each class of each fund, maintains the general
accounting records for each class of each fund, and administers the
securities lending program for each class of each fund.
For the fiscal year ended July 1998, transfer agency and pricing and
bookkeeping fees paid (as a percentage of average net assets) amounted
to the following. These amounts are before expense reductions, if any.
TRANSFER AGENCY PRICING AND BOOKKEEPING
FEES PAID BY FEES PAID BY
INSTITUTIONAL CLASS FUND
CONSUMER INDUSTRIES 0.18% 0.35%
CYCLICAL INDUSTRIES 0.17% 1.15%
FINANCIAL SERVICES 0.20% 0.06%
HEALTH CARE 0.19% 0.06%
NATURAL RESOURCES 0.18% 0.07%
TECHNOLOGY 0.19% 0.06%
UTILITIES GROWTH 0.16% 0.23%
Each fund also pays other expenses, such as legal, audit, and
custodian fees; in some instances, proxy solicitation costs; and the
compensation of trustees who are not affiliated with Fidelity. A
broker-dealer may use a portion of the commissions paid by a fund to
reduce that fund's custodian or transfer agent fees.
The Institutional Class of each fund has adopted a DISTRIBUTION AND
SERVICE PLAN. Each plan recognizes that FMR may use its management fee
revenues, as well as its past profits or its resources from any other
source, to pay FDC for expenses incurred in connection with the
distribution of Institutional Class shares. FMR, directly or through
FDC, may make payments to third parties, such as banks or
broker-dealers, that engage in the sale of, or provide shareholder
support services for, Institutional Class shares. Currently, the Board
of Trustees of each fund has authorized such payments.
For the fiscal year ended July 1998, the portfolio turnover rate was
144% for Consumer Industries, 100% for Cyclical Industries, 54% for
Financial Services, 85% for Health Care, 97% for Natural Resources,
348% for Technology, and 151% for Utilities Growth. These rates vary
from year to year. High turnover rates increase transaction costs and
may increase taxable capital gains. FMR considers these effects when
evaluating the anticipated benefits of short-term investing.
YOUR ACCOUNT
TYPES OF ACCOUNTS
When you invest through an investment professional, your investment
professional, including a broker-dealer or financial institution, may
charge you a transaction fee with respect to the purchase and sale of
fund shares. Read your investment professional's program materials in
conjunction with this prospectus for additional service features or
fees that may apply. Certain features of the funds, such as minimum
initial or subsequent investment amounts, may be modified.
The different ways to set up (register) your account with Fidelity are
listed at right.
The account guidelines that follow may not apply to certain retirement
accounts. If you are investing through a retirement account or if your
employer offers the funds through a retirement program, you may be
subject to additional fees. For more information, please refer to your
program materials, contact your employer, or call your retirement
benefits number or your investment professional directly, as
appropriate.
WAYS TO SET UP YOUR ACCOUNT
INDIVIDUAL OR JOINT TENANT
FOR YOUR GENERAL INVESTMENT NEEDS
Individual accounts are owned by one person. Joint accounts can have
two or more owners (tenants).
RETIREMENT
FOR TAX-ADVANTAGED RETIREMENT SAVINGS
Retirement plans provide individuals with tax-advantaged ways to save
for retirement, either with tax-deductible contributions or tax-free
growth. Retirement accounts require special applications and typically
have lower minimums.
(solid bullet) TRADITIONAL INDIVIDUAL RETIREMENT ACCOUNTS (IRAS) allow
individuals under age 70 with compensation to contribute up to $2,000
per tax year. Married couples can contribute up to $4,000 per tax
year, provided no more than $2,000 is contributed on behalf of either
spouse. (These limits are aggregate for Traditional and Roth IRAs.)
Contributions may be tax-deductible, subject to certain income limits.
(solid bullet) ROTH IRAS allow individuals to make non-deductible
contributions of up to $2,000 per tax year. Married couples can
contribute up to $4,000 per tax year, provided no more than $2,000 is
contributed on behalf of either spouse. (These limits are aggregate
for Traditional and Roth IRAs.) Eligibility is subject to certain
income limits. Qualified distributions are tax-free.
(solid bullet) ROTH CONVERSION IRAS allow individuals with assets held
in a Traditional IRA or Rollover IRA to convert those assets to a Roth
Conversion IRA. Eligibility is subject to certain income limits.
Qualified distributions are tax-free.
(solid bullet) ROLLOVER IRAS help retain special tax advantages for
certain eligible rollover distributions from employer-sponsored
retirement plans.
(solid bullet) 401(K) PLANS, and certain other 401(a)-qualified plans,
are employer-sponsored retirement plans that allow employer
contributions and may allow employee after-tax contributions. In
addition, 401(k) plans allow employee pre-tax (tax-deferred)
contributions. Contributions to these plans may be tax-deductible to
the employer.
(solid bullet) KEOGH PLANS are generally profit sharing or money
purchase pension plans that allow self-employed individuals or small
business owners to make tax-deductible contributions for themselves
and any eligible employees.
(solid bullet) SIMPLE IRAS provide small business owners and those
with self-employment income (and their eligible employees) with many
of the advantages of a 401(k) plan, but with fewer administrative
requirements.
(solid bullet) SIMPLIFIED EMPLOYEE PENSION PLANS (SEP-IRAS) provide
small business owners or those with self-employment income (and their
eligible employees) with many of the same advantages as a Keogh, but
with fewer administrative requirements.
(solid bullet) SALARY REDUCTION SEP-IRAS (SARSEPS) allow employees of
businesses with 25 or fewer employees to contribute a percentage of
their wages on a tax-deferred basis. These plans must have been
established by the employer prior to January 1, 1997.
GIFTS OR TRANSFERS TO A MINOR (UGMA, UTMA)
TO INVEST FOR A CHILD'S EDUCATION OR OTHER FUTURE NEEDS
These custodial accounts provide a way to give money to a child and
obtain tax benefits. An individual can give up to $10,000 a year per
child without paying federal gift tax. Depending on state laws, you
can set up a custodial account under the Uniform Gifts to Minors Act
(UGMA) or the Uniform Transfers to Minors Act (UTMA). Contact your
investment professional.
TRUST
FOR MONEY BEING INVESTED BY A TRUST
The trust must be established before an account can be opened.
BUSINESS OR ORGANIZATION
FOR INVESTMENT NEEDS OF CORPORATIONS, ASSOCIATIONS, PARTNERSHIPS, OR
OTHER GROUPS
Contact your investment professional.
HOW TO BUY SHARES
THE PRICE TO BUY ONE SHARE of Institutional Class is the class's net
asset value per share (NAV). Institutional Class shares are sold
without a sales charge.
Your shares will be purchased at the next NAV calculated after your
order is received in proper form. Institutional Class's NAV is
normally calculated each business day at 4:00 p.m. Eastern time.
Each fund reserves the right to reject any specific purchase order,
including certain purchases by exchange. See "Exchange Restrictions"
on page . Purchase orders may be refused if, in FMR's opinion, they
would disrupt management of a fund.
It is the responsibility of your investment professional to transmit
your order to buy shares to Fidelity before the close of business on
the day you place your order.
Fidelity must receive payment within three business days after an
order for shares is placed; otherwise your purchase order may be
canceled and you could be held liable for resulting fees and/or
losses.
Share certificates are not available for Institutional Class shares.
IF YOU ARE NEW TO THE FIDELITY ADVISOR FUNDS, complete and sign an
account application and mail it along with your check. You may also
open your account by wire as described on page . If there is no
account application accompanying this prospectus, call 1-800-522-7297
if you are investing through a broker-dealer or insurance
representative, 1-800-843-3001 if you are investing through a bank
representative, or call your investment professional.
If you are investing through a tax-advantaged retirement plan, such as
an IRA, for the first time, you will need a special application.
Contact your investment professional for more information and a
retirement account application.
IF YOU ALREADY HAVE MONEY INVESTED IN A FIDELITY ADVISOR FUND, you
can:
(small solid bullet) Mail an account application with a check,
(small solid bullet) Place an order and wire money into your account,
(small solid bullet) Open your account by exchanging from the same
class of another Fidelity Advisor fund or from another Fidelity fund,
or
(small solid bullet) Contact your investment professional.
MINIMUM INVESTMENTS
TO OPEN AN ACCOUNT $2,500
For certain Fidelity Advisor retirement accounts* $500
Through regular investment plans** $1,000
TO ADD TO AN ACCOUNT $250
For certain Fidelity Advisor retirement accounts* $100
Through regular investment plans** $100
MINIMUM BALANCE $1,000
For certain Fidelity Advisor retirement accounts* None
*THESE LOWER MINIMUMS APPLY TO FIDELITY ADVISOR TRADITIONAL IRA, ROTH
IRA, ROTH CONVERSION IRA, ROLLOVER IRA, SEP-IRA, AND KEOGH ACCOUNTS.
**AN ACCOUNT MAY BE OPENED WITH A MINIMUM OF $1,000, PROVIDED THAT A
REGULAR INVESTMENT PLAN IS ESTABLISHED AT THE TIME THE ACCOUNT IS
OPENED. FOR MORE INFORMATION ABOUT REGULAR INVESTMENT PLANS, PLEASE
REFER TO "INVESTOR SERVICES," PAGE .
There is no minimum account balance or initial or subsequent
investment minimum for certain retirement accounts funded through
salary deduction, or accounts opened with the proceeds of
distributions from such Fidelity retirement accounts. Refer to the
program materials for details.
For further information on opening an account, please consult your
investment professional or refer to the account application.
<TABLE>
<CAPTION>
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YOUR INVESTMENT INVESTMENT
INVESTMEN PROFESSIONAL OR, IF YOU PROFESSIONAL OR, IF YOU
T ARE INVESTING THROUGH ARE INVESTING THROUGH
PROFESSION A BROKER-DEALER OR A BROKER-DEALER OR
AL INSURANCE INSURANCE
(PHONE GRAPHIC) REPRESENTATIVE, CALL REPRESENTATIVE, CALL
1-800-522-7297. IF 1-800-522-7297. IF
YOU ARE INVESTING YOU ARE INVESTING
THROUGH A BANK THROUGH A BANK
REPRESENTATIVE, CALL REPRESENTATIVE, CALL
1-800-843-3001. 1-800-843-3001.
(SMALL SOLID BULLET) EXCHANGE FROM THE (SMALL SOLID BULLET) EXCHANGE FROM THE
SAME CLASS OF ANOTHER SAME CLASS OF ANOTHER
FIDELITY ADVISOR FUND FIDELITY ADVISOR FUND
OR FROM ANOTHER OR FROM ANOTHER
FIDELITY FUND ACCOUNT FIDELITY FUND ACCOUNT
WITH THE SAME WITH THE SAME
REGISTRATION, INCLUDING REGISTRATION, INCLUDING
NAME, ADDRESS, AND NAME, ADDRESS, AND
TAXPAYER ID NUMBER. TAXPAYER ID NUMBER.
MAIL (MAIL_GRAPHIC) (SMALL SOLID BULLET) COMPLETE AND SIGN THE (SMALL SOLID BULLET) MAKE YOUR CHECK
ACCOUNT APPLICATION. PAYABLE TO THE
MAKE YOUR CHECK COMPLETE NAME OF THE
PAYABLE TO THE FUND OF YOUR CHOICE
COMPLETE NAME OF THE AND NOTE THE
FUND OF YOUR CHOICE APPLICABLE CLASS.
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TO THE ADDRESS YOUR CHECK AND MAIL TO
INDICATED ON THE THE ADDRESS PRINTED ON
APPLICATION. YOUR ACCOUNT
STATEMENT.
(SMALL SOLID BULLET) EXCHANGE BY MAIL: CALL
1-800-522-7297 IF
YOU ARE INVESTING
THROUGH A
BROKER-DEALER OR
INSURANCE
REPRESENTATIVE,
1-800-843-3001 IF
YOU ARE INVESTING
THROUGH A BANK
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IN PERSON (HAND_GRAPHIC) (SMALL SOLID BULLET) BRING YOUR ACCOUNT (SMALL SOLID BULLET) BRING YOUR CHECK TO
APPLICATION AND CHECK YOUR INVESTMENT
TO YOUR INVESTMENT PROFESSIONAL.
PROFESSIONAL.
WIRE (WIRE_GRAPHIC) (SMALL SOLID BULLET) CALL 1-800-522-7297, (SMALL SOLID BULLET) NOT AVAILABLE FOR
IF YOU ARE INVESTING RETIREMENT ACCOUNTS.
THROUGH A
BROKER-DEALER OR
INSURANCE
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1-800-843-3001, IF (SMALL SOLID BULLET) WIRE TO:
YOU ARE INVESTING BANKER'S TRUST CO.
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UP YOUR ACCOUNT AND FIDELITY DART
TO ARRANGE A WIRE DEPOSITORY
TRANSACTION. NOT ACCOUNT # 00159759
AVAILABLE FOR FBO: (ACCOUNT NAME)
RETIREMENT ACCOUNTS. (ACCOUNT NUMBER)
(SMALL SOLID BULLET) WIRE TO:
BANKER'S TRUST CO. SPECIFY THE COMPLETE
ROUTING # NAME OF THE FUND OF
021001033 YOUR CHOICE, NOTE THE
FIDELITY DART APPLICABLE CLASS AND
DEPOSITORY INCLUDE YOUR ACCOUNT
ACCOUNT #00159759 NUMBER AND YOUR
FBO: (ACCOUNT NAME) NAME.
(ACCOUNT NUMBER)
SPECIFY THE COMPLETE
NAME OF THE FUND OF
YOUR CHOICE, NOTE THE
APPLICABLE CLASS AND
INCLUDE YOUR NEW
ACCOUNT NUMBER AND
YOUR NAME.
AUTOMATICALLY
(AUTOMATIC_GRAPHIC) (SMALL SOLID BULLET) NOT AVAILABLE. (SMALL SOLID BULLET) USE FIDELITY ADVISOR
SYSTEMATIC
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SIGN UP FOR THIS
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YOUR ACCOUNT, OR CALL
YOUR INVESTMENT
PROFESSIONAL TO BEGIN
THE PROGRAM.
</TABLE>
HOW TO SELL SHARES
You can arrange to take money out of your fund account at any time by
selling (redeeming) some or all of your shares.
THE PRICE TO SELL ONE SHARE of Institutional Class is the class's NAV,
minus each fund's short-term trading fee, if applicable. If you sell
shares of a fund after holding them less than 60 days, the fund will
deduct a short-term trading fee equal to 1.00% of the value of those
shares.
Your shares will be sold at the next NAV calculated after your order
is received in proper form, minus the short-term trading fee, if
applicable. Institutional Class's NAV is normally calculated each
business day at 4:00 p.m. Eastern time.
It is the responsibility of your investment professional to transmit
your order to sell shares to Fidelity before the close of business on
the day you place your order.
TO SELL SHARES IN A NON-RETIREMENT ACCOUNT, you may use any of the
methods described on these two pages.
TO SELL SHARES IN A FIDELITY ADVISOR RETIREMENT ACCOUNT, your request
must be made in writing, except for exchanges to shares of the same
class of another Fidelity Advisor fund or shares of other Fidelity
funds, which can be requested by phone or in writing.
IF YOU ARE SELLING SOME BUT NOT ALL OF YOUR SHARES, leave at least
$1,000 worth of shares in the account to keep it open (account minimum
balances do not apply to retirement and Fidelity Defined Trust
accounts).
TO SELL SHARES BY BANK WIRE, you will need to sign up for this service
in advance.
CERTAIN REQUESTS MUST INCLUDE A SIGNATURE GUARANTEE. It is designed to
protect you and Fidelity from fraud. Your request must be made in
writing and include a signature guarantee if any of the following
situations apply:
(small solid bullet) You wish to redeem more than $100,000 worth of
shares,
(small solid bullet) Your account registration has changed within the
last 30 days,
(small solid bullet) The check is being mailed to a different address
than the one on your account (record address),
(small solid bullet) The check is being made payable to someone other
than the account owner,
(small solid bullet) The redemption proceeds are being transferred to
a Fidelity Advisor account with a different registration,
(small solid bullet) You wish to set up the bank wire feature, or
(small solid bullet) You wish to have redemption proceeds wired to a
non-predesignated bank account.
You should be able to obtain a signature guarantee from a bank,
broker, dealer, credit union (if authorized under state law),
securities exchange or association, clearing agency, or savings
association. A notary public cannot provide a signature guarantee.
SELLING SHARES IN WRITING
Write a "letter of instruction" with:
(small solid bullet) Your name,
(small solid bullet) The fund's name,
(small solid bullet) The applicable class name,
(small solid bullet) Your fund account number,
(small solid bullet) The dollar amount or number of shares to be
redeemed, and
(small solid bullet) Any other applicable requirements listed in the
table on page .
Deliver your letter to your investment professional, or mail it to the
following address:
Fidelity Investments
P.O. Box 770002
Cincinnati, OH 45277-0081
Unless otherwise instructed, Fidelity will send a check to the record
address.
<TABLE>
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ACCOUNT TYPE SPECIAL REQUIREMENTS
IF YOU SELL YOUR SHARES OF A FUND AFTER HOLDING THEM LESS THAN 60 DAYS, THE FUND WILL DEDUCT A SHORT-TERM
TRADING FEE EQUAL TO 1.00% OF THE VALUE OF THOSE SHARES.
PHONE ALL ACCOUNT TYPES EXCEPT (SMALL SOLID BULLET) MAXIMUM CHECK
1-800-522-7297, RETIREMENT REQUEST: $100,000.
1-800-843-3001
OR
YOUR
INVESTMENT
PROFESSIONAL
(PHONE_GRAPHIC) ALL ACCOUNT TYPES (SMALL SOLID BULLET) YOU MAY EXCHANGE TO
THE SAME CLASS OF
OTHER FIDELITY ADVISOR
FUNDS OR TO OTHER
FIDELITY FUNDS IF BOTH
ACCOUNTS ARE
REGISTERED WITH THE
SAME NAME(S),
ADDRESS, AND
TAXPAYER ID NUMBER.
MAIL OR IN PERSON (MAIL_GRAPHIC)(HAND_GRAPHIC) INDIVIDUAL, JOINT TENANT, (SMALL SOLID BULLET) THE LETTER OF
SOLE PROPRIETORSHIP, INSTRUCTION MUST BE
UGMA, UTMA SIGNED BY ALL PERSONS
REQUIRED TO SIGN FOR
TRANSACTIONS, EXACTLY
RETIREMENT ACCOUNT AS THEIR NAMES
APPEAR ON THE
ACCOUNT.
(SMALL SOLID BULLET) THE ACCOUNT OWNER
SHOULD COMPLETE A
RETIREMENT
DISTRIBUTION FORM.
CALL
1-800-522-7297 IF
YOU ARE INVESTING
THROUGH A
BROKER-DEALER OR
INSURANCE
REPRESENTATIVE,
1-800-843-3001 IF
YOU ARE INVESTING
THROUGH A BANK
REPRESENTATIVE, OR
CALL YOUR INVESTMENT
PROFESSIONAL TO
REQUEST ONE.
TRUST (SMALL SOLID BULLET) THE TRUSTEE MUST SIGN
THE LETTER INDICATING
CAPACITY AS TRUSTEE. IF
THE TRUSTEE'S NAME IS
NOT IN THE ACCOUNT
REGISTRATION, PROVIDE A
COPY OF THE TRUST
DOCUMENT CERTIFIED
WITHIN THE LAST 60
DAYS.
BUSINESS OR (SMALL SOLID BULLET) AT LEAST ONE PERSON
ORGANIZATION AUTHORIZED BY
CORPORATE RESOLUTION
TO ACT ON THE
ACCOUNT MUST SIGN
THE LETTER.
EXECUTOR, (SMALL SOLID BULLET) CALL
ADMINISTRATOR, 1-800-522-7297 IF
CONSERVATOR/GUARDIAN YOU ARE INVESTING
THROUGH A
BROKER-DEALER OR
INSURANCE
REPRESENTATIVE,
1-800-843-3001 IF
YOU ARE INVESTING
THROUGH A BANK
REPRESENTATIVE, OR
CALL YOUR INVESTMENT
PROFESSIONAL FOR
INSTRUCTIONS.
WIRE (WIRE_GRAPHIC) ALL ACCOUNT TYPES EXCEPT (SMALL SOLID BULLET) YOU MUST SIGN UP FOR
RETIREMENT THE WIRE FEATURE
BEFORE USING IT. TO
VERIFY THAT IT IS IN
PLACE, CALL
1-800-522-7297 IF
YOU ARE INVESTING
THROUGH A
BROKER-DEALER OR
INSURANCE
REPRESENTATIVE,
1-800-843-3001 IF
YOU ARE INVESTING
THROUGH A BANK
REPRESENTATIVE, OR
CALL YOUR INVESTMENT
PROFESSIONAL.
MINIMUM WIRE:
$500.
(SMALL SOLID BULLET) YOUR WIRE REDEMPTION
REQUEST MUST BE
RECEIVED IN PROPER
FORM BY THE FIDELITY
BEFORE 4:00 P.M.
EASTERN TIME FOR
MONEY TO BE WIRED
ON THE NEXT BUSINESS
DAY.
</TABLE>
INVESTOR SERVICES
Fidelity Advisor funds provide a variety of services to help you
manage your account.
INFORMATION SERVICES
STATEMENTS AND REPORTS that Fidelity sends to you include the
following:
(small solid bullet) Confirmation statements after certain
transactions
(small solid bullet) Account statements (quarterly)
(small solid bullet) Financial reports (every six months)
To reduce expenses, only one copy of most financial reports and
prospectuses will be mailed, even if you have more than one account in
a fund. Call your investment professional if you need additional
copies of financial reports and prospectuses.
TRANSACTION SERVICES
EXCHANGE PRIVILEGE. You may sell your Institutional Class shares and
buy Institutional Class shares of other Fidelity Advisor funds or
shares of other Fidelity funds by telephone or in writing.
Note that exchanges between Focus Funds are unlimited, but exchanges
out of the Focus Funds to other Advisor funds are limited to four per
calendar year. Exchanges may have tax consequences for you. For
details on policies and restrictions governing exchanges, including
circumstances under which a shareholder's exchange privilege may be
suspended or revoked, see "Exchange Restrictions," page .
FIDELITY ADVISOR SYSTEMATIC WITHDRAWAL PROGRAM lets you set up
periodic redemptions from your account. Accounts with a value of
$10,000 or more in Institutional Class shares are eligible for this
program.
One easy way to pursue your financial goals is to invest money
regularly. Fidelity Advisor funds offer convenient services that let
you transfer money into your fund account, or between fund accounts,
automatically. While regular investment plans do not guarantee a
profit and will not protect you against loss in a declining market,
they can be an excellent way to invest for retirement, a home,
educational expenses, and other long-term financial goals. Certain
restrictions apply for retirement accounts. Call your investment
professional for more information.
REGULAR INVESTMENT PLANS
FIDELITY ADVISOR SYSTEMATIC INVESTMENT PROGRAM
TO MOVE MONEY FROM YOUR BANK ACCOUNT TO A FIDELITY ADVISOR FUND
<TABLE>
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MINIMUM MINIMUM FREQUENCY SETTING UP OR
INITIAL ADDITIONAL Monthly, bimonthly, quarterly, CHANGING
$1,000 $100 or semi-annually (small solid bullet) For a new account,
complete the
appropriate section on
the application.
(small solid bullet) For existing accounts,
call your investment
professional for an
application.
(small solid bullet) To change the amount
or frequency of your
investment, contact
your investment
professional directly
or, if you purchased
your shares through a
broker-dealer or
insurance
representative, call
1-800-522-7297. If
you purchased your
shares through a bank
representative, call
1-800-843-3001.
Call at least 10
business days prior to
your next scheduled
investment date (20
business days if you
purchased your shares
through a bank).
</TABLE>
SHAREHOLDER AND ACCOUNT POLICIES
DIVIDENDS, CAPITAL GAINS, AND TAXES
Each fund distributes substantially all of its net investment income
and capital gains to shareholders each year. Normally, dividends and
capital gains are distributed in September and December.
DISTRIBUTION OPTIONS
When you open an account, specify on your account application how you
want to receive your distributions. The funds offer four options:
1. REINVESTMENT OPTION. Your dividend and capital gain distributions
will be automatically reinvested in additional shares of the same
class of the fund. If you do not indicate a choice on your
application, you will be assigned this option.
2. INCOME-EARNED OPTION. Your capital gain distributions will be
automatically reinvested in additional shares of the same class of the
fund, but you will be sent a check for each dividend distribution.
3. CASH OPTION. You will be sent a check for your dividend and capital
gain distributions.
4. DIRECTED DIVIDENDS(registered trademark) PROGRAM. Your dividend
distributions will be automatically invested in the same class of
shares of another identically registered Fidelity Advisor fund. You
will be sent a check for your capital gain distributions or your
capital gain distributions will be automatically reinvested in
additional shares of the same class of the fund.
If you select distribution option 2, 3, or 4 and the U.S. Postal
Service does not deliver your checks, your election may be converted
to the Reinvestment Option. You will not receive interest on amounts
represented by uncashed distribution checks. To change your
distribution option, call your investment professional directly or, if
you purchased your shares through a broker-dealer or insurance
representative, call 1-800-522-7297. If you purchased your shares
through a bank representative, call 1-800-843-3001.
When a fund deducts a distribution from its NAV, the reinvestment
price is the applicable class's NAV at the close of business that day.
Distribution checks will be mailed within seven days.
TAXES
As with any investment, you should consider how your investment in a
fund will be taxed. If your account is not a tax-advantaged retirement
account, you should be aware of these tax implications.
TAXES ON DISTRIBUTIONS. Distributions are subject to federal income
tax, and may also be subject to state or local taxes. If you live
outside the United States, your distributions could also be taxed by
the country in which you reside. Your distributions are taxable when
they are paid, whether you take them in cash or reinvest them.
However, distributions declared in December and paid in January are
taxable as if they were paid on December 31.
For federal tax purposes, each fund's income and short-term capital
gains are distributed as dividends and taxed as ordinary income;
capital gain distributions are taxed as long-term capital gains.
Every January, Fidelity will send you and the IRS a statement showing
the tax characterization of distributions paid to you in the previous
year.
TAXES ON TRANSACTIONS. Your redemptions - including exchanges - are
subject to capital gains tax. A capital gain or loss is the difference
between the cost of your shares and the price you receive when you
sell them.
Whenever you sell shares of a fund, Fidelity will send you a
confirmation statement showing how many shares you sold and at what
price.
You will also receive a consolidated transaction statement at least
quarterly. However, it is up to you or your tax preparer to determine
whether this sale resulted in a capital gain and, if so, the amount of
tax to be paid. BE SURE TO KEEP YOUR REGULAR ACCOUNT STATEMENTS; the
information they contain will be essential in calculating the amount
of your capital gains.
"BUYING A DIVIDEND." If you buy shares when a class has realized but
not yet distributed income or capital gains, you will pay the full
price for the shares and then receive a portion of the price back in
the form of a taxable distribution.
CURRENCY CONSIDERATIONS. If a fund's dividends exceed its taxable
income in any year, which is sometimes the result of currency-related
losses, all or a portion of the fund's dividends may be treated as a
return of capital to shareholders for tax purposes. To minimize the
risk of a return of capital, each fund may adjust its dividends to
take currency fluctuations into account, which may cause the dividends
to vary. Any return of capital will reduce the cost basis of your
shares, which will result in a higher reported capital gain or a lower
reported capital loss when you sell your shares. The statement you
receive in January will specify if any distributions included a return
of capital.
EFFECT OF FOREIGN TAXES. Foreign governments may impose taxes on a
fund and its investments, and these taxes generally will reduce a
fund's distributions. However, if you meet certain holding period
requirements with respect to your fund shares, an offsetting tax
credit may be available to you. If you do not meet such holding period
requirements, you may still be entitled to a deduction for certain
foreign taxes. In either case, your tax statement will show more
taxable income or capital gains than were actually distributed by the
fund, but will also show the amount of the available offsetting credit
or deduction.
There are tax requirements that all funds must follow in order to
avoid federal taxation. In its effort to adhere to these requirements,
a fund may have to limit its investment activity in some types of
instruments.
TRANSACTION DETAILS
THE FUNDS ARE OPEN FOR BUSINESS each day the New York Stock Exchange
(NYSE) is open. FSC normally calculates Institutional Class's NAV as
of the close of business of the NYSE, normally 4:00 p.m. Eastern time.
A CLASS'S NAV is the value of a single share. The NAV of each class is
computed by adding that class's pro rata share of the value of the
applicable fund's investments, cash, and other assets, subtracting
that class's pro rata share of the value of the applicable fund's
liabilities, subtracting the liabilities allocated to that class, and
dividing the result by the number of shares of that class that are
outstanding.
Each fund's assets are valued primarily on the basis of market
quotations. Short-term securities with remaining maturities of sixty
days or less for which quotations are not readily available are valued
on the basis of amortized cost. This method minimizes the effect of
changes in a security's market value. Foreign securities are valued on
the basis of quotations from the primary market in which they are
traded, and are translated from the local currency into U.S. dollars
using current exchange rates. In addition, if quotations are not
readily available, or if the values have been materially affected by
events occurring after the closing of a foreign market, assets may be
valued by another method that the Board of Trustees believes
accurately reflects fair value.
WHEN YOU SIGN YOUR ACCOUNT APPLICATION, you will be asked to certify
that your social security or taxpayer identification number is correct
and that you are not subject to 31% backup withholding for failing to
report income to the IRS. If you violate IRS regulations, the IRS can
require a fund to withhold 31% of your taxable distributions and
redemptions.
YOU MAY INITIATE MANY TRANSACTIONS BY TELEPHONE OR ELECTRONICALLY.
Fidelity will not be responsible for any losses resulting from
unauthorized transactions if it follows reasonable security procedures
designed to verify the identity of the investor. Fidelity will request
personalized security codes or other information, and may also record
calls. For transactions conducted through the Internet, Fidelity
recommends the use of an Internet browser with 128-bit encryption. You
should verify the accuracy of your confirmation statements immediately
after you receive them. If you do not want the ability to redeem and
exchange by telephone, call Fidelity for instructions. Additional
documentation may be required from corporations, associations, and
certain fiduciaries.
IF YOU ARE UNABLE TO REACH FIDELITY BY PHONE (for example, during
periods of unusual market activity), consider placing your order by
mail.
EACH FUND RESERVES THE RIGHT to suspend the offering of shares for a
period of time.
WHEN YOU PLACE AN ORDER TO BUY SHARES, your shares will be purchased
at the next NAV calculated after your order is received in proper
form. Note the following:
(small solid bullet) All of your purchases must be made in U.S.
dollars and checks must be drawn on U.S. banks.
(small solid bullet) Fidelity does not accept cash.
(small solid bullet) The funds do not accept cash.
(small solid bullet) When making a purchase with more than one check,
each check must have a value of at least $50.
(small solid bullet) Each fund reserves the right to limit the number
of checks processed at one time.
(small solid bullet) If your check does not clear, your purchase will
be canceled and you could be liable for any losses or fees a fund or
Fidelity has incurred.
AUTOMATED PURCHASE ORDERS. Institutional Class shares can be purchased
or sold through investment professionals utilizing an automated order
placement and settlement system that guarantees payment for orders on
a specified date.
CONFIRMED PURCHASES. Certain financial institutions that meet FDC's
creditworthiness criteria may enter confirmed purchase orders on
behalf of customers by phone, with payment to follow no later than
close of business on the next business day. If payment is not received
by the next business day, the order will be canceled and the financial
institution will be liable for any losses.
TO AVOID THE COLLECTION PERIOD associated with check purchases,
consider buying shares by bank wire, U.S. Postal money order, U.S.
Treasury check, Federal Reserve check, or automatic investment plans.
WHEN YOU PLACE AN ORDER TO SELL SHARES, your shares will be sold at
the next NAV calculated after your order is received in proper form,
minus the short-term trading fee, if applicable. Note the following:
(small solid bullet) Normally, redemption proceeds will be mailed to
you on the next business day, but if making immediate payment could
adversely affect a fund, it may take up to seven days to pay you.
(small solid bullet) Each fund may hold payment on redemptions until
it is reasonably satisfied that investments made by check have been
collected, which can take up to seven business days.
(small solid bullet) Redemptions may be suspended or payment dates
postponed when the NYSE is closed (other than weekends or holidays),
when trading on the NYSE is restricted, or as permitted by the SEC.
(small solid bullet) You will not receive interest on amounts
represented by uncashed redemption checks.
A SHORT-TERM TRADING FEE of 1.00% will be deducted from the redemption
amount if you sell your shares after holding them less than 60 days.
This fee is paid to the fund rather than Fidelity, and is designed to
offset the brokerage commissions, market impact, and other costs
associated with fluctuations in fund asset levels and cash flow caused
by short-term shareholder trading.
The short-term trading fee, if applicable, is charged on exchanges out
of a fund. If you bought shares on different days, the shares you held
longest will be redeemed first for purposes of determining whether the
short-term trading fee applies. The fee does not apply to shares that
were acquired through reinvestment of distributions. Any applicable
CDSC is calculated based on your original redemption amount.
FIDELITY RESERVES THE RIGHT TO DEDUCT AN ANNUAL MAINTENANCE FEE of
$12.00 from accounts with a value of less than $2,500, subject to an
annual maximum charge of $60.00 per shareholder. Accounts opened after
September 30 will not be subject to the fee for that year. The fee,
which is payable to the transfer agent, is designed to offset in part
the relatively higher costs of servicing smaller accounts. The fee
will not be deducted from retirement accounts (except non-prototype
retirement accounts), accounts using a systematic investment program,
certain (Network Level I and III) accounts which are maintained
through National Securities Clearing Corporation (NSCC), or if total
assets in Fidelity mutual funds exceed $50,000. Eligibility for the
$50,000 waiver is determined by aggregating Fidelity mutual fund
accounts (excluding contractual plans) maintained (i) by FIIOC and
(ii) through NSCC; provided those accounts are registered under the
same primary social security number.
IF YOUR NON-RETIREMENT ACCOUNT BALANCE FALLS BELOW $1,000, you will be
given 30 days' notice to reestablish the minimum balance. If you do
not increase your balance, Fidelity reserves the right to close your
account and send the proceeds to you. Your shares will be redeemed at
the NAV, minus the short-term trading fee, if applicable, on the day
your account is closed.
FIDELITY MAY CHARGE A FEE FOR SPECIAL SERVICES, such as providing
historical account documents, that are beyond the normal scope of its
services.
FDC will, at its expense, provide promotional incentives such as sales
contests and luxury trips to investment professionals who support the
sale of shares of the funds. In some instances, these incentives will
be offered only to certain types of investment professionals, such as
bank-affiliated or non-bank affiliated broker-dealers, or to
investment professionals whose representatives provide services in
connection with the sale or expected sale of significant amounts of
shares.
EXCHANGE RESTRICTIONS
As a shareholder, you have the privilege of exchanging your
Institutional Class shares for Institutional Class shares of other
Fidelity Advisor funds or for shares of other Fidelity funds. However,
you should note the following:
(small solid bullet) The fund or class you are exchanging into must be
available for sale in your state.
(small solid bullet) You may only exchange between accounts that are
registered in the same name, address, and taxpayer identification
number.
(small solid bullet) Before exchanging into a fund or class, read its
prospectus.
(small solid bullet) If you exchange into a fund with a sales charge,
you pay the percentage difference between that fund's sales charge and
any sales charge you may have previously paid in connection with the
shares you are exchanging. For example, if you had already paid a
sales charge of 2% on your shares and you exchange them into a fund
with a 3% sales charge, you would pay an additional 1% sales charge.
(small solid bullet) Exchanges may have tax consequences for you.
(small solid bullet) Although there is no limit on the exchanges you
may make between the Advisor Focus funds, the funds reserve the right
to enact limitations in the future. Because excessive trading can hurt
fund performance and shareholders, each fund reserves the right to
temporarily or permanently terminate the exchange privilege of any
investor who makes more than four exchanges out of a fund into a
Fidelity Advisor fund per calendar year. Accounts under common
ownership or control, including accounts with the same taxpayer
identification number, will be counted together for purposes of the
four exchange limit.
(small solid bullet) Each fund reserves the right to refuse exchange
purchases by any person or group if, in FMR's judgment, the fund would
be unable to invest the money effectively in accordance with its
investment objective and policies, or would otherwise potentially be
adversely affected.
(small solid bullet) The exchange limit may be modified for accounts
in certain institutional retirement plans to conform to plan exchange
limits and Department of Labor regulations. See your plan materials
for further information.
(small solid bullet) Each fund reserves the right to reject exchange
purchases in excess of 1% of its net assets or $1 million, whichever
is less. For purposes of this policy, accounts under common ownership
will be aggregated.
(small solid bullet) Your exchanges may be restricted or refused if a
fund receives or anticipates simultaneous orders affecting significant
portions of the fund's assets. In particular, a pattern of exchanges
that coincides with a "market timing" strategy may be disruptive to a
fund.
Although the funds will attempt to give you prior notice whenever they
are reasonably able to do so, they may impose these restrictions at
any time. The funds reserve the right to terminate or modify these
exchange privileges in the future.
OTHER FUNDS MAY HAVE DIFFERENT EXCHANGE RESTRICTIONS, and may impose
administrative fees of up to 1.00% and trading fees of up to 3.00% of
the amount exchanged. Check each fund's prospectus for details.
Your investment professional should call Fidelity for more
information.
No dealer, sales representative, or any other person has been
authorized to give any information or to make any representations,
other than those contained in this Prospectus and in the related SAI,
in connection with the offer contained in this Prospectus. If given or
made, such other information or representations must not be relied
upon as having been authorized by the funds or FDC. This Prospectus
and the related SAI do not constitute an offer by the funds or by FDC
to sell or to buy shares of the funds to any person to whom it is
unlawful to make such offer.
The product is not sponsored, endorsed, sold, or promoted by S&P. S&P
makes no representation or warranty, express or implied, to the owners
of the product or any member of the public regarding the advisability
of investing in securities generally or in the product particularly or
the ability of the S&P 500 Index to track general stock market
performance. S&P's only relationship to the licensee is the licensing
of certain trademarks and trade names of S&P and of the S&P 500 Index
which is determined, composed, and calculated by S&P without regard to
the licensee or the product. S&P has no obligation to take the needs
of the licensee or the owners of the product into consideration in
determining, composing, or calculating the S&P 500 Index. S&P is not
responsible for and has not participated in the determination of the
timing of, prices at, or quantities of the product to be issued or in
the determination or calculation of the equation by which the product
is to be converted into cash. S&P has no obligation or liability in
connection with the administration, marketing, or trading of the
product.
Fidelity, Fidelity Investments, and Directed Dividends are registered
trademarks of FMR Corp.
Fidelity Advisor Focus Funds is a registered service mark of FMR Corp.
The third party marks appearing above are the marks of their
respective owners.
APPENDIX
YEAR-BY-YEAR TOTAL RETURNS
Calendar year total returns 1997
CONSUMER 36.94%
INDUSTRIES
S&P 500 33.36%
Consumer Price 1.70%
Index
Goldman Sachs 34.06%
Consumer Index
YEAR-BY-YEAR TOTAL RETURNS
Calendar year total returns 1997
CYCLICAL INDUSTRIES 19.23%
S&P 500 33.36%
Consumer Price 1.70%
Index
Goldman Sachs 22.49%
Cyclical Index
YEAR-BY-YEAR TOTAL RETURNS
Calendar year total returns 1997
FINANCIAL SERVICES 40.32%
S&P 500 33.36%
Consumer Price 1.70%
Index
Goldman Sachs 48.73%
Financial Index
YEAR-BY-YEAR TOTAL RETURNS
Calendar year total returns 1997
HEALTH CARE 31.17%
S&P 500 33.36%
Consumer Price 1.70%
Index
Goldman Sachs 36.67%
Health Care
Index
YEAR-BY-YEAR TOTAL RETURNS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Calendar year total 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997
returns*
NATURAL RESOURCES 16.10% 33.14% -5.28% 14.47% 13.33% 37.94% -2.28% 28.86% 30.72% -0.44%
S&P 500 16.61% 31.69% -3.10% 30.47% 7.62% 10.08% 1.32% 37.58% 22.96% 33.36%
Consumer Price 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32% 1.70%
Index
Goldman Sachs N/A N/A N/A N/A N/A N/A N/A N/A N/A 16.95%
Natural
Resources Index
</TABLE>
PERCENTAGE (%)
ROW: 1, COL: 1, VALUE: 16.1
ROW: 2, COL: 1, VALUE: 33.14
ROW: 3, COL: 1, VALUE: -5.28
ROW: 4, COL: 1, VALUE: 14.47
ROW: 5, COL: 1, VALUE: 13.33
ROW: 6, COL: 1, VALUE: 37.94
ROW: 7, COL: 1, VALUE: -2.28
ROW: 8, COL: 1, VALUE: 28.86
ROW: 9, COL: 1, VALUE: 30.72
ROW: 10, COL: 1, VALUE: NIL
(LARGE SOLID BOX) NATURAL RESOURCES -
INSTITUTIONAL CLASS
YEAR-BY-YEAR TOTAL RETURNS
Calendar year total returns 1997
TECHNOLOGY 10.72%
S&P 500 33.36%
Consumer Price 1.70%
Index
Goldman Sachs 23.52%
Technology Index
YEAR-BY-YEAR TOTAL RETURNS
Calendar year total returns 1997
UTILITIES GROWTH 30.25%
S&P 500 33.36%
Consumer Price 1.70%
Index
Goldman Sachs 34.88%
Utilities Index
* INITIAL OFFERING OF INSTITUTIONAL CLASS OF NATURAL RESOURCES TOOK
PLACE ON JULY 3, 1995. RETURNS PRIOR TO JULY 3, 1995 ARE THOSE OF
CLASS T WHICH REFLECT A 12B-1 FEE OF 0.65%. IF CLASS T'S 12B-1 FEE HAD
NOT BEEN REFLECTED, TOTAL RETURNS PRIOR TO JULY 3, 1995 WOULD HAVE
BEEN HIGHER.
