SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-1A
REGISTRATION STATEMENT (No. 2-67004)
UNDER THE SECURITIES ACT OF 1933 [X]
Pre-Effective Amendment No.
Post-Effective Amendment No. 40 [X]
and
REGISTRATION STATEMENT (No. 811-3010)
UNDER THE INVESTMENT COMPANY ACT OF 1940 [X]
Amendment No. 40 [X]
Fidelity Advisor Series VII
(Exact Name of Registrant as Specified in Charter)
82 Devonshire St., Boston, Massachusetts 02109
(Address Of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number: 617-563-7000
Eric D. Roiter, Secretary
82 Devonshire Street
Boston, Massachusetts 02109
(Name and Address of Agent for Service)
It is proposed that this filing will become effective
( ) immediately upon filing pursuant to paragraph (b).
(X) on (September 28, 1998) pursuant to paragraph (b).
( ) 60 days after filing pursuant to paragraph (a)(1).
( ) on ( ) pursuant to paragraph (a)(1) of Rule 485.
( ) 75 days after filing pursuant to paragraph (a)(2).
( ) on ( ) pursuant to paragraph (a)(2) of Rule 485.
If appropriate, check the following box:
( ) this post-effective amendment designates a new effective date
for a previously filed
post-effective amendment.
FIDELITY ADVISOR FOCUS FUNDS CLASS A, CLASS T, CLASS B, AND CLASS C
PROSPECTUS
CROSS REFERENCE SHEET
FORM N-1A
ITEM NUMBER PROSPECTUS SECTION
<TABLE>
<CAPTION>
<S> <C> <C> <C>
1 .............................. COVER PAGE
2 A .............................. EXPENSES
B,C .............................. CONTENTS; WHO MAY WANT TO INVEST
3 A .............................. FINANCIAL HIGHLIGHTS
B .............................. *
C .............................. PERFORMANCE
D .............................. PERFORMANCE; COVER PAGE
4 A I............................. CHARTER
II........................... INVESTMENT PRINCIPLES AND RISKS
B .............................. INVESTMENT PRINCIPLES AND RISKS
C .............................. WHO MAY WANT TO INVEST; INVESTMENT PRINCIPLES
AND RISKS
5 A .............................. CHARTER
B I............................. COVER PAGE; CHARTER
II........................... CHARTER; BREAKDOWN OF EXPENSES
III.......................... EXPENSES; BREAKDOWN OF EXPENSES
C .............................. CHARTER
D .............................. CHARTER; BREAKDOWN OF EXPENSES
E .............................. BREAKDOWN OF EXPENSES
F .............................. EXPENSES
G I............................ CHARTER
II............................ *
5A .............................. *
6 A I............................. CHARTER
II........................... HOW TO BUY SHARES; HOW TO SELL SHARES; INVESTOR
SERVICES; TRANSACTION DETAILS; EXCHANGE
RESTRICTIONS; SALES CHARGE REDUCTIONS AND WAIVERS
III.......................... CHARTER
B ............................. CHARTER
C .............................. TRANSACTION DETAILS; EXCHANGE RESTRICTIONS
D .............................. WHO MAY WANT TO INVEST
E .............................. COVER PAGE; HOW TO BUY SHARES; HOW TO SELL
SHARES; INVESTOR SERVICES; EXCHANGE RESTRICTIONS;
SALES CHARGE REDUCTIONS AND WAIVERS
F, G .............................. DIVIDENDS, CAPITAL GAINS, AND TAXES
H .............................. WHO MAY WANT TO INVEST
7 A .............................. CHARTER; COVER PAGE
B .............................. HOW TO BUY SHARES; TRANSACTION DETAILS
C .............................. SALES CHARGE REDUCTIONS AND WAIVERS
D .............................. HOW TO BUY SHARES
E .............................. TRANSACTION DETAILS; BREAKDOWN OF EXPENSES
F .............................. BREAKDOWN OF EXPENSES
8 .............................. HOW TO SELL SHARES; INVESTOR SERVICES; TRANSACTION
DETAILS; EXCHANGE RESTRICTIONS
9 .............................. *
</TABLE>
* Not Applicable
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 4 WHO MAY WANT TO INVEST
4 EXPENSES EACH CLASS'S SALES CHARGE (LOAD) AND ITS YEARLY OPERATING
EXPENSES.
11 FINANCIAL HIGHLIGHTS A SUMMARY OF EACH FUND'S FINANCIAL DATA.
31 PERFORMANCE HOW EACH FUND HAS DONE OVER TIME.
THE FUNDS IN DETAIL 35 CHARTER HOW EACH FUND IS ORGANIZED.
36 INVESTMENT PRINCIPLES AND RISKS EACH FUND'S OVERALL APPROACH
TO INVESTING.
38 BREAKDOWN OF EXPENSES HOW OPERATING COSTS ARE CALCULATED
AND WHAT THEY INCLUDE.
YOUR ACCOUNT 40 TYPES OF ACCOUNTS DIFFERENT WAYS TO SET UP YOUR ACCOUNT,
INCLUDING TAX-ADVANTAGED RETIREMENT PLANS.
41 HOW TO BUY SHARES OPENING AN ACCOUNT AND MAKING ADDITIONAL
INVESTMENTS.
43 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.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
CLASS A CLASS T CLASS B CLASS C
MAXIMUM SALES CHARGE ON PURCHASES (AS A % OF OFFERING PRICE) 5.75% 3.50% NONE NONE
MAXIMUM CDSC (AS A % OF THE LESSER OF ORIGINAL PURCHASE
PRICE OR REDEMPTION PROCEEDS) NONE[A] NONE[A] 5.00%[B] 1.00%[C]
SALES CHARGE ON NONE NONE NONE NONE
REINVESTED DISTRIBUTIONS
REDEMPTION FEE (SHORT-TERM TRADING FEE) ON SHARES HELD
LESS THAN 60 DAYS (AS A % OF AMOUNT REDEEMED) 1.00% 1.00% 1.00% 1.00%
ANNUAL ACCOUNT MAINTENANCE FEE $12.00 $12.00 $12.00 $12.00
(FOR ACCOUNTS UNDER $2,500)
</TABLE>
[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 ex penses
of each class of each fund and are calculated as a percentage of
average net assets of each class of each fund.
OPERATING EXPENSES CLASS A CLASS T CLASS B CLASS C
CONSUMER MANAGEMENT FEE 0.59% 0.59% 0.59% 0.59%[A]
INDUSTRIES
12B-1 FEE (INCLUDING 0.25% 0.50% 1.00% 1.00%
0.25% SHAREHOLDER
SERVICE FEE FOR CLASS
B AND CLASS C SHARES)
OTHER EXPENSES (AFTER 0.91% 0.91% 0.91% 0.91%[A]
REIMBURSEMENT FOR
CLASS A, CLASS T, CLASS
B, AND CLASS C)
TOTAL OPERATING 1.75% 2.00% 2.50% 2.50%
EXPENSES
CYCLICAL MANAGEMENT FEE 0.59% 0.59% 0.59% 0.59%[A]
INDUSTRIES
12B-1 FEE (INCLUDING 0.25% 0.50% 1.00% 1.00%
0.25% SHAREHOLDER
SERVICE FEE FOR CLASS
B AND CLASS C SHARES)
OTHER EXPENSES (AFTER 0.91% 0.91% 0.91% 0.91%[A]
REIMBURSEMENT FOR
CLASS A, CLASS T, CLASS
B, AND CLASS C)
TOTAL OPERATING 1.75% 2.00% 2.50% 2.50%
EXPENSES
FINANCIAL MANAGEMENT FEE 0.59% 0.59% 0.59% 0.59%[A]
SERVICES
12B-1 FEE (INCLUDING 0.25% 0.50% 1.00% 1.00%
0.25% SHAREHOLDER
SERVICE FEE FOR CLASS
B AND CLASS C SHARES)
OTHER EXPENSES 0.48% 0.43% 0.47% 0.50%[A]
TOTAL OPERATING 1.32% 1.52% 2.06% 2.09%
EXPENSES
HEALTH MANAGEMENT FEE 0.59% 0.59% 0.59% 0.59%[A]
CARE
12B-1 FEE (INCLUDING 0.25% 0.50% 1.00% 1.00%
0.25% SHAREHOLDER
SERVICE FEE FOR CLASS
B AND CLASS C SHARES)
OTHER EXPENSES 0.54% 0.45% 0.54% 0.59%[A]
TOTAL OPERATING 1.38% 1.54% 2.13% 2.18%
EXPENSES
NATURAL MANAGEMENT FEE 0.59% 0.59% 0.59% 0.59%[A]
RESOURCES
12B-1 FEE (INCLUDING 0.25% 0.50% 1.00% 1.00%
0.25% SHAREHOLDER
SERVICE FEE FOR CLASS
B AND CLASS C SHARES)
OTHER EXPENSES (AFTER 0.50% 0.35% 0.39% 0.91%[A]
REIMBURSEMENT FOR CLASS
C)
TOTAL OPERATING 1.34% 1.44% 1.98% 2.50%
EXPENSES
TECHNOLOGY MANAGEMENT FEE 0.59% 0.59% 0.59% 0.59%[A]
12B-1 FEE (INCLUDING 0.25% 0.50% 1.00% 1.00%
0.25% SHAREHOLDER
SERVICE FEE FOR CLASS
B AND CLASS C SHARES)
OTHER EXPENSES 0.55% 0.51% 0.62% 0.84%[A]
TOTAL OPERATING 1.39% 1.60% 2.21% 2.43%
EXPENSES
UTILITIES MANAGEMENT FEE 0.59% 0.59% 0.59% 0.59%[A]
GROWTH
12B-1 FEE (INCLUDING 0.25% 0.50% 1.00% 1.00%
0.25% SHAREHOLDER
SERVICE FEE FOR CLASS
B AND CLASS C SHARES)
OTHER EXPENSES (AFTER 0.91% 0.85% 0.91% 0.91%[A]
REIMBURSEMENT FOR
CLASS A, CLASS B, AND
CLASS C)
TOTAL OPERATING 1.75% 1.94% 2.50% 2.50%
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 REDEMPTION NO 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 YEARS[B] $ 252 $ 260 $ 257 $ 284 $ 257 $ 284
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 YEARS[B] $ 252 $ 260 $ 257 $ 284 $ 257 $ 284
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 YEARS[B] $ 207 $ 210 $ 211 $ 242 $ 211 $ 242
HEALTH 1 YEAR $ 71 $ 50 $ 72[A] $ 32[A] $ 22 $ 22
CARE
3 YEARS $ 99 $ 82 $ 97[A] $ 68 $ 67 $ 68
5 YEARS $ 129 $ 116 $134[A] $ 117 $ 114 $ 117
10 YEARS[B] $ 214 $ 212 $ 218 $ 251 $ 218 $ 251
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 YEARS[B] $ 210 $ 201 $ 206 $ 284 $ 206 $ 284
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 YEARS[B] $ 215 $ 218 $ 224 $ 277 $ 224 $ 277
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 YEARS[B] $ 252 $ 254 $ 257 $ 284 $ 257 $ 284
</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 EXPENSES TOTAL 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, BEGINNING OF PERIOD $ 26.16 $ 25.11 $ 23.65
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME (LOSS)E .06 (.05) 0.00
NET REALIZED AND UNREALIZED GAIN (3.33) 2.81 1.46
(LOSS)
TOTAL FROM INVESTMENT OPERATIONS (3.27) 2.76 1.46
LESS DISTRIBUTIONS
FROM NET INVESTMENT INCOME -- (.10) --
IN EXCESS OF NET INVESTMENT INCOME -- (.04) --
FROM NET REALIZED GAIN (3.96) (1.57) --
TOTAL DISTRIBUTIONS (3.96) (1.71) --
REDEMPTION FEES ADDED TO PAID IN .01 -- --
CAPITAL
NET ASSET VALUE, END OF PERIOD $ 18.94 $ 26.16 $ 25.11
TOTAL RETURNB,C (14.61)% 11.45% 6.17%
NET ASSETS, END OF PERIOD (000 $ 6,474 $ 6,372 $ 1,609
OMITTED)
RATIO OF EXPENSES TO AVERAGE NET 1.34% 1.71%A,G 1.66%A,G
ASSETS
RATIO OF EXPENSES TO AVERAGE NET 1.30%H 1.68%A,H 1.58%A,H
ASSETS AFTER EXPENSE REDUCTIONS
RATIO OF NET INVESTMENT INCOME (LOSS) .28% (.28)%A (.01)%A
TO AVERAGE NET ASSETS
PORTFOLIO TURNOVER 97% 116%A 137%
AVERAGE COMMISSION RATEI $ .0185 $ .0286 .0337
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NATURAL RESOURCES CLASS T
YEARS ENDED JULY 31
1998 1997J 1996F 1995F 1994F 1993F 1992F 1991F,L 1990F 1989F 1988N
SELECTED
PER-SHARE DATA AND
RATIOS
NET ASSET $26.34 $25.12 $19.25 $17.56 $17.59 $13.88 $14.11 $12.30 $12.60 $11.47 $10.00
VALUE,
BEGINNING OF
PERIOD
INCOME FROM
INVESTMENT
OPERATIONS
NET .02E (.02)E .00E (.05)E (.11)E .22 (.10) (.15) (.10) .10M (.05)
INVESTMENT INCOME
(LOSS)
NET REALIZED (3.34) 2.83 6.56 2.00 .76 4.91 .79 2.45 .93 1.96 1.52
AND UNREALIZED GAIN
(LOSS)
TOTAL FROM (3.32) 2.81 6.56 1.95 .65 5.13 .69 2.30 .83 2.06 1.47
INVESTMENT
OPERATIONS
LESS
DISTRIBUTIONS
FROM NET -- (.01) -- -- -- -- -- -- (.08) -- --
INVESTMENT INCOME
IN EXCESS OF -- (.01) -- -- -- -- -- -- -- -- --
NET INVESTMENT
INCOME
FROM NET (3.92) (1.57) (.69) (.26) (.68) (1.42) (.92) (.49) (1.05) (.93) --
REALIZED GAIN
TOTAL (3.92) (1.59) (.69) (.26) (.68) (1.42) (.92) (.49) (1.13) (.93) --
DISTRIBUTIONS
REDEMPTION .01 -- -- -- -- -- -- -- -- -- --
FEES ADDED TO PAID IN
CAPITAL
NET ASSET $19.11 $26.34 $25.12 $19.25 $17.56 $17.59 $13.88 $14.11 $12.30 $12.60 $11.47
VALUE, END OF PERIOD
TOTAL RETURNB,C (14.69)% 11.62% 35.01% 11.40% 3.97% 41.05% 5.97% 19.50% 6.37% 19.63% 14.70%
NET ASSETS, $342,347 $618,083 $602,915 $272,979 $199,361 $40,309 $7,087 $5,940 $4,615 $2,049 $916
END OF PERIOD (000
OMITTED)
RATIO OF 1.43% 1.47%A 1.59% 1.86%G 2.10% 2.63% 3.27%D 3.35%D 3.34%D 3.23% 2.85%A
EXPENSES TO AVERAGE
NET ASSETS
RATIO OF 1.39%H 1.44%A,H 1.56%H 1.84%H 2.07%H 2.62%H 3.27% 3.35% 3.34% 3.23% 2.85%A
EXPENSES TO AVERAGE
NET ASSETS AFTER
EXPENSE REDUCTIONS
RATIO OF NET .10% (.12)%A 0.00 (.30)% (.67)% (1.18)% (1.22)% (1.28)% (1.13)% .83% (.64)%A
INVESTMENT INCOME
(LOSS) TO AVERAGE NET
ASSETS
PORTFOLIO 97% 116%A 137% 161% 125% 208% 248% 256% 229% 249% 220%A
TURNOVER
AVERAGE $ .0185 $ .0286 $ .0337
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
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
NATURAL RESOURCES CLASS B
SELECTED PER-SHARE DATA AND RATIOS
YEARS ENDED JULY 31 1998 1997I 1996K 1995H
NET ASSET VALUE, BEGINNING OF PERIOD $ 25.99 $ 24.88 $ 19.23 $ 18.87
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME (LOSS)D (.09) (.12) (.15) (.03)
NET REALIZED AND UNREALIZED GAIN (3.29) 2.80 6.49 .39
(LOSS)
TOTAL FROM INVESTMENT OPERATIONS (3.38) 2.68 6.34 .36
LESS DISTRIBUTIONS
FROM NET REALIZED GAIN (3.81) (1.57) (.69) --
REDEMPTION FEES ADDED TO PAID IN .01 -- -- --
CAPITAL
NET ASSET VALUE, END OF PERIOD $ 18.81 $ 25.99 $ 24.88 $ 19.23
TOTAL RETURNB,C (15.12)% 11.19% 33.87% 1.91%
NET ASSETS, END OF PERIOD (000 $ 44,351 $ 59,044 $ 36,106 $ 2,508
OMITTED)
RATIO OF EXPENSES TO AVERAGE NET 1.98% 2.04%A 2.28% 2.23%A,E
ASSETS
RATIO OF EXPENSES TO AVERAGE NET 1.94%F 2.02%A,F 2.24%F 2.21%A,F
ASSETS AFTER EXPENSE REDUCTIONS
RATIO OF NET INVESTMENT INCOME (LOSS) (.41)% (.67)%A (.68)% (.67)%A
TO AVERAGE NET ASSETS
PORTFOLIO TURNOVER 97% 116%A 137% 161%
AVERAGE COMMISSION RATEG $ .0185 $ .0286 $ .0337
</TABLE>
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]
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]
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]
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) F OR 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 use its broker-dealer affiliates and other firms that sell
fund shares to carry out a fund's transactions, 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") t o
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 f or 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 AGENCY FEES PAID BY PRICING AND
BOOKKEEPING
FEES PAID 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, a fter 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, a fter 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 t ax-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. T HIS 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 ACCOUNT TO ADD TO AN ACCOUNT
PHONE
(SMALL SOLID BULLET) CONTACT YOUR INVESTMENT (SMALL SOLID BULLET) CONTACT YOUR INVESTMENT
YOUR
INVESTMENT
PROFESSIONAL PROFESSIONAL OR, IF YOU ARE INVESTING PROFESSIONAL OR, IF YOU ARE
(PHONE_GRAPHIC) THROUGH A BROKER-DEALER OR INVESTING THROUGH A BROKER-DEALER
INSURANCE REPRESENTATIVE, CALL OR INSURANCE REPRESENTATIVE, CALL
1-800-522-7297. IF YOU ARE 1-800-522-7297. IF YOU ARE
INVESTING THROUGH A BANK INVESTING THROUGH A BANK
REPRESENTATIVE, CALL REPRESENTATIVE, CALL
1-800-843-3001. 1-800-843-3001.
(SMALL SOLID BULLET) EXCHANGE FROM THE SAME CLASS OF (SMALL SOLID BULLET) EXCHANGE FROM THE SAME CLASS OF
ANOTHER FIDELITY ADVISOR FUND OR ANOTHER FIDELITY ADVISOR FUND OR
FROM ANOTHER FIDELITY FUND ACCOUNT FROM ANOTHER FIDELITY FUND ACCOUNT
WITH THE SAME REGISTRATION, WITH THE SAME REGISTRATION,
INCLUDING NAME, ADDRESS, AND INCLUDING NAME, ADDRESS, AND
TAXPAYER ID NUMBER. TAXPAYER ID NUMBER.
MAIL
(MAIL_GRAPHIC)
(SMALL SOLID BULLET) COMPLETE AND SIGN THE ACCOUNT (SMALL SOLID BULLET) MAKE YOUR CHECK PAYABLE TO THE
APPLICATION. MAKE YOUR CHECK COMPLETE NAME OF THE FUND OF
PAYABLE TO THE COMPLETE NAME OF YOUR CHOICE AND NOTE THE
THE FUND OF YOUR CHOICE AND NOTE THE APPLICABLE CLASS. INDICATE YOUR
APPLICABLE CLASS. MAIL TO THE ADDRESS FUND ACCOUNT NUMBER ON YOUR
INDICATED ON THE APPLICATION. CHECK AND MAIL 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 APPLICATION AND (SMALL SOLID BULLET) BRING YOUR CHECK TO YOUR
CHECK TO YOUR INVESTMENT 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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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 RETIREMENT (SMALL SOLID BULLET) MAXIMUM CHECK REQUEST:
YOUR INVESTMENT
PROFESSIONAL ALL ACCOUNT TYPES $100,000.
(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 INSTRUCTION MUST BE
SOLE PROPRIETORSHIP, UGMA, UTMA SIGNED BY ALL PERSONS REQUIRED TO
SIGN FOR TRANSACTIONS, EXACTLY AS
THEIR NAMES APPEAR ON THE
RETIREMENT ACCOUNT 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 ORGANIZATION (SMALL SOLID BULLET) AT LEAST ONE PERSON AUTHORIZED
BY CORPORATE RESOLUTION TO ACT ON
THE ACCOUNT MUST SIGN THE LETTER.
EXECUTOR, ADMINISTRATOR, (SMALL SOLID BULLET) FOR INSTRUCTIONS, 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 RETIREMENT (SMALL SOLID BULLET) YOU MUST SIGN UP FOR 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
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FIDELITY ADVISOR SYSTEMATIC INVESTMENT PROGRAM
TO MOVE MONEY FROM YOUR BANK ACCOUNT TO A FIDELITY ADVISOR FUND
MINIMUM MINIMUM FREQUENCY
INITIAL ADDITIONAL MONTHLY,
BIMONTHLY, QUARTERLY, SETTING UP OR 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).
TO DIRECT DISTRIBUTIONS FROM A FIDELITY DEFINED TRUST TO CLASS T OF A
FIDELITY ADVISOR FUND
MINIMUM MINIMUM
INITIAL ADDITIONAL SETTING UP OR CHANGING
NOT NOT (SMALL SOLID BULLET) FOR A NEW OR EXISTING ACCOUNT, ASK YOUR INVESTMENT
PROFESSIONAL FOR THE APPROPRIATE ENROLLMENT FORM.
APPLICABLE APPLICABLE (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
MINIMUM FREQUENCY SETTING UP OR CHANGING
$100 Monthly, quarterly, (small solid bullet) To establish, call your investment professional after
both accounts are opened.
semi-annually, or annually (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.
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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 $99,999 4.50% 4.71% 3.75%
$100,000 to $249,999 3.50% 3.63% 2.75%
$250,000 to $499,999 2.50% 2.56% 2.00%
$500,000 to $999,999 2.00% 2.04% 1.75%
$1,000,000 to $24,999,999 1.00% 1.01% 0.75%
$25,000,000 or more None* None* *
</TABLE>
* 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 $99,999 3.00% 3.09% 2.50%
$100,000 to $249,999 2.50% 2.56% 2.00%
$250,000 to $499,999 1.50% 1.52% 1.25%
$500,000 to $999,999 1.00% 1.01% 0.75%
$1,000,000 or more None* None* *
* 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. P urchased 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%
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
YEAR-BY-YEAR TOTAL RETURNS
Calendar year total returns (dagger)
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997
NATURAL RESOURCES - CLASS A
16.10% 33.14% -5.28% 14.47% 13.33% 37.94% -2.28% 28.67% 30.37% -0.83 %
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 Index
4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32% 1.70 %
Goldman Sachs Natural Resources Index
n/a n/a n/a n/a n/a n/a n/a n/a n/a 16.95%
</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%
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
YEAR-BY-YEAR TOTAL RETURNS
Calendar year total returns(dagger)
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997
NATURAL RESOURCES - CLASS T
16.10% 33.14% -5.28% 14.47% 13.33% 37.94% -2.28% 28.67% 30.52% -0.79 %
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 Index
4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32% 1.70 %
Goldman Sachs Natural Resources Index
n/a n/a n/a n/a n/a n/a n/a n/a n/a 16.95%
</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%
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
YEAR-BY-YEAR TOTAL RETURNS
Calendar year total returns(dagger)
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997
NATURAL RESOURCES - CLASS B
16.10% 33.14% -5.28% 14.47% 13.33% 37.94% -2.28% 28.24% 29.63% -1.32 %
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 Index
4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32% 1.70 %
Goldman Sachs Natural Resources Index
n/a n/a n/a n/a n/a n/a n/a n/a n/a 16.95%
</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%
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
YEAR-BY-YEAR TOTAL RETURNS
Calendar year total returns(dagger)
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997
NATURAL RESOURCES - CLASS C
16.10% 33.14% -5.28% 14.47% 13.33% 37.94% -2.28 28.24% 29.63% -1.36 %
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 Index
4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32% 1.70 %
Goldman Sachs Natural Resources Index
n/a n/a n/a n/a n/a n/a n/a n/a n/a 16.95%
</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 FUNDS INSTITUTIONAL CLASS PROSPECTUS
CROSS REFERENCE SHEET
FORM N-1A
ITEM NUMBER PROSPECTUS SECTION
<TABLE>
<CAPTION>
<S> <C> <C> <C>
1 .............................. COVER PAGE
2 A .............................. EXPENSES
B, C .............................. WHO MAY WANT TO INVEST
3 A .............................. FINANCIAL HIGHLIGHTS
B .............................. *
C .............................. PERFORMANCE
D .............................. PERFORMANCE; COVER PAGE
4 A I............................. CHARTER
II........................... INVESTMENT PRINCIPLES AND RISKS
B .............................. INVESTMENT PRINCIPLES AND RISKS
C .............................. WHO MAY WANT TO INVEST; INVESTMENT PRINCIPLES
AND RISKS
5 A .............................. CHARTER
B I............................. COVER PAGE; CHARTER
II........................... CHARTER; BREAKDOWN OF EXPENSES
III.......................... EXPENSES; BREAKDOWN OF EXPENSES
C .............................. CHARTER
D .............................. CHARTER; BREAKDOWN OF EXPENSES
E .............................. CHARTER; BREAKDOWN OF EXPENSES
F .............................. EXPENSES
G I............................. CHARTER
II............................. *
5 A .............................. *
6 A I............................. CHARTER
II........................... HOW TO BUY SHARES; HOW TO SELL SHARES; INVESTOR
SERVICES; TRANSACTION DETAILS; EXCHANGE
RESTRICTIONS
III.......................... CHARTER
B ............................. CHARTER
C .............................. TRANSACTION DETAILS; EXCHANGE RESTRICTIONS
D .............................. WHO MAY WANT TO INVEST
E .............................. COVER PAGE; HOW TO BUY SHARES; HOW TO SELL
SHARES; INVESTOR SERVICES; EXCHANGE RESTRICTIONS
F, G .............................. DIVIDENDS, CAPITAL GAINS, AND TAXES
H .............................. WHO MAY WANT TO INVEST
7 A .............................. CHARTER; COVER PAGE
B .............................. HOW TO BUY SHARES; TRANSACTION DETAILS
C .............................. *
D .............................. HOW TO BUY SHARES
E .............................. TRANSACTION DETAILS; BREAKDOWN OF EXPENSES
F .............................. BREAKDOWN OF EXPENSES
8 .............................. HOW TO SELL SHARES; INVESTOR SERVICES; TRANSACTION
DETAILS; EXCHANGE RESTRICTIONS
9 .............................. *
</TABLE>
* Not Applicable
FIDELITY ADVISOR
FOCUS FUNDS SM
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 3 WHO MAY WANT TO INVEST
4 EXPENSES INSTITUTIONAL CLASS'S YEARLY OPERATING EXPENSES.
7 FINANCIAL HIGHLIGHTS A SUMMARY OF EACH FUND'S FINANCIAL DATA.
14 PERFORMANCE HOW EACH FUND HAS DONE OVER TIME.
THE FUNDS IN DETAIL 15 CHARTER HOW EACH FUND IS ORGANIZED.
15 INVESTMENT PRINCIPLES AND RISKS EACH FUND'S OVERALL APPROACH
TO INVESTING.
18 BREAKDOWN OF EXPENSES HOW OPERATING COSTS ARE CALCULATED
AND WHAT THEY INCLUDE.
YOUR ACCOUNT 19 TYPES OF ACCOUNTS DIFFERENT WAYS TO SET UP YOUR ACCOUNT,
INCLUDING T AX-ADVANTAGED RETIREMENT PLANS.
21 HOW TO BUY SHARES OPENING AN ACCOUNT AND MAKING ADDITIONAL
INVESTMENTS.
22 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 24 DIVIDENDS, CAPITAL GAINS, AND TAXES
25 TRANSACTION DETAILS SHARE PRICE CALCULATIONS AND THE TIMING OF
PURCHASES AND REDEMPTIONS.
26 EXCHANGE RESTRICTIONS
27 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, i ndustry-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, an d 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.
<TABLE>
<CAPTION>
<S> <C>
INSTITUTIONAL CLASS
SALES CHARGE ON PURCHASES AND REINVESTED DISTRIBUTIONS NONE
DEFERRED SALES CHARGE ON REDEMPTIONS NONE
REDEMPTION FEE (SHORT-TERM TRADING FEE) ON SHARES HELD LESS THAN LESS THAN 60 DAYS (AS
A % OF AMOUNT REDEEMED) 1.00%
ANNUAL ACCOUNT MAINTENANCE FEE (FOR ACCOUNTS UNDER $2,500) $12.00
</TABLE>
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 INDUSTRIES MANAGEMENT FEE 0.59% 1 YEAR $15
12B-1 FEE NONE 3 YEARS $47
OTHER EXPENSES (AFTER 0.91% 5 YEARS $82
REIMBURSEMENT)
TOTAL OPERATING EXPENSES 1.50% 10 YEARS $179
CYCLICAL INDUSTRIES MANAGEMENT FEE 0.59% 1 YEAR $15
12B-1 FEE NONE 3 YEARS $47
OTHER EXPENSES (AFTER 0.91% 5 YEARS $82
REIMBURSEMENT)
TOTAL OPERATING EXPENSES 1.50% 10 YEARS $179
FINANCIAL SERVICES MANAGEMENT FEE 0.59% 1 YEAR $12
12B-1 FEE NONE 3 YEARS $36
OTHER EXPENSES 0.55% 5 YEARS $63
TOTAL OPERATING EXPENSES 1.14% 10 YEARS $139
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 EXPENSES 1.07% 10 YEARS $131
NATURAL RESOURCES MANAGEMENT FEE 0.59% 1 YEAR $10
12B-1 FEE NONE 3 YEARS $30
OTHER EXPENSES 0.36% 5 YEARS $53
TOTAL OPERATING EXPENSES 0.95% 10 YEARS $117
TECHNOLOGY MANAGEMENT FEE 0.59% 1 YEAR $11
12B-1 FEE NONE 3 YEARS $35
OTHER EXPENSES 0.51% 5 YEARS $61
TOTAL OPERATING EXPENSES 1.10% 10 YEARS $134
UTILITIES GROWTH MANAGEMENT FEE 0.59% 1 YEAR $15
12B-1 FEE NONE 3 YEARS $46
OTHER EXPENSES 0.87% 5 YEARS $80
TOTAL OPERATING EXPENSES 1.46% 10 YEARS $175
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
<TABLE>
<CAPTION>
<S> <C> <C>
SELECTED PER-SHARE DATA AND RATIOS
YEARS ENDED JULY 31 1998 1997E
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.51 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME (LOSS)D (.03) (.01)
NET REALIZED AND UNREALIZED GAIN (LOSS) 3.31 3.59
TOTAL FROM INVESTMENT OPERATIONS 3.28 3.58
LESS DISTRIBUTIONS
FROM NET REALIZED GAIN (1.70)I (.07)I
REDEMPTION FEES ADDED TO PAID IN .03 --
CAPITAL
NET ASSET VALUE, END OF PERIOD $ 15.12 $ 13.51
TOTAL RETURNB,C 27.70% 35.98%
NET ASSETS, END OF PERIOD (000 $ 4,745 $ 1,333
OMITTED)
RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.50%F 1.50%A,F
RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.48%G 1.48%A.G
AFTER EXPENSE REDUCTIONS
RATIO OF NET INVESTMENT INCOME (LOSS) (.20)% (.13)%A
TO AVERAGE NET ASSETS
PORTFOLIO TURNOVER 144% 203%A
AVERAGE COMMISSION RATEH $ .0242 $ .0307
</TABLE>
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
<TABLE>
<CAPTION>
<S> <C> <C>
SELECTED PER-SHARE DATA AND RATIOS
YEARS ENDED JULY 31 1998 1997E
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.84 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOMED .01I .03
NET REALIZED AND UNREALIZED GAIN (LOSS) .75 3.91
TOTAL FROM INVESTMENT OPERATIONS .76 3.94
LESS DISTRIBUTIONS
FROM NET INVESTMENT INCOME -- (.02)
FROM NET REALIZED GAIN (.95) (.08)
TOTAL DISTRIBUTIONS (.95) (.10)
REDEMPTION FEES ADDED TO PAID IN .03 --
CAPITAL
NET ASSET VALUE, END OF PERIOD $ 13.68 $ 13.84
TOTAL RETURNB,C 6.32% 39.64%
NET ASSETS, END OF PERIOD (000 $ 1,360 $ 1,756
OMITTED)
RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.50%F 1.50%A,F
RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.50% 1.48%A,G
AFTER EXPENSE REDUCTIONS
RATIO OF NET INVESTMENT INCOME TO .04% .25%A
AVERAGE NET ASSETS
PORTFOLIO TURNOVER 100% 155%A
AVERAGE COMMISSION RATEH $ .0245 $ .0210
</TABLE>
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
<TABLE>
<CAPTION>
<S> <C> <C>
SELECTED PER-SHARE DATA AND RATIOS
YEARS ENDED JULY 31 1998 1997E
NET ASSET VALUE, BEGINNING OF PERIOD $ 15.14 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOMED .14 .10
NET REALIZED AND UNREALIZED GAIN (LOSS) 3.79 5.06
TOTAL FROM INVESTMENT OPERATIONS 3.93 5.16
LESS DISTRIBUTIONS
FROM NET INVESTMENT INCOME (.05) (.02)
FROM NET REALIZED GAIN (.23) (.01)
TOTAL DISTRIBUTIONS (.28) (.03)
REDEMPTION FEES ADDED TO PAID IN .01 .01
CAPITAL
NET ASSET VALUE, END OF PERIOD $ 18.80 $ 15.14
TOTAL RETURNB,C 26.39% 51.78%
NET ASSETS, END OF PERIOD (000 $ 5,270 $ 3,758
OMITTED)
RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.14% 1.50%A,F
RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.13%G 1.47%A,G
AFTER EXPENSE REDUCTIONS
RATIO OF NET INVESTMENT INCOME TO .81% .85%A
AVERAGE NET ASSETS
PORTFOLIO TURNOVER 54% 26%A
AVERAGE COMMISSION RATEH $ .0395 $ .0348
</TABLE>
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
<TABLE>
<CAPTION>
<S> <C> <C>
SELECTED PER-SHARE DATA AND RATIOS
YEARS ENDED JULY 31 1998 1997E
NET ASSET VALUE, BEGINNING OF PERIOD $ 14.12 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOMED .03 .01
NET REALIZED AND UNREALIZED GAIN (LOSS) 3.47 4.11
TOTAL FROM INVESTMENT OPERATIONS 3.50 4.12
LESS DISTRIBUTIONS
FROM NET REALIZED GAIN (.90) --
REDEMPTION FEES ADDED TO PAID IN .01 --
CAPITAL
NET ASSET VALUE, END OF PERIOD $ 16.73 $ 14.12
TOTAL RETURNB,C 26.70% 41.20%
NET ASSETS, END OF PERIOD (000 $ 10,424 $ 6,875
OMITTED)
RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.07% 1.50%A,F
RATIO OF EXPENSES TO AVERAGE NET ASSETS 1.04%G 1.49%A,G
AFTER EXPENSE REDUCTIONS
RATIO OF NET INVESTMENT INCOME TO .17% .08%A
AVERAGE NET ASSETS
PORTFOLIO TURNOVER 85% 67%A
AVERAGE COMMISSION RATEH $ .0464 $ .0383
</TABLE>
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
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
SELECTED PER-SHARE DATA AND RATIOS
YEARS ENDED JULY 31 1998 1997I 1996J 1995H
NET ASSET VALUE, BEGINNING OF PERIOD $ 26.42 $ 25.17 $ 19.27 $ 18.87
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME (LOSS)D .13 .04 .04 (.01)
NET REALIZED AND UNREALIZED GAIN (LOSS) (3.35) 2.85 6.55 .41
TOTAL FROM INVESTMENT OPERATIONS (3.22) 2.89 6.59 .40
LESS DISTRIBUTIONS
FROM NET INVESTMENT INCOME (.09) (.05) -- --
IN EXCESS OF NET INVESTMENT INCOME -- (.02) -- --
FROM NET REALIZED GAIN (3.97) (1.57) (.69) --
TOTAL DISTRIBUTIONS (4.06) (1.64) (.69) --
REDEMPTION FEES ADDED TO PAID IN .01 -- -- --
CAPITAL
NET ASSET VALUE, END OF PERIOD $ 19.15 $ 26.42 $ 25.17 $ 19.27
TOTAL RETURNB,C (14.29)% 11.95% 35.13% 2.12%
NET ASSETS, END OF PERIOD (000 $ 3,922 $ 10,042 $ 9,860 $ 718
OMITTED)
RATIO OF EXPENSES TO AVERAGE NET ASSETS .95% 1.08%A 1.44% 1.68%A,E
RATIO OF EXPENSES TO AVERAGE NET ASSETS .91%F 1.06%A,F 1.39%F 1.66%A,F
AFTER EXPENSE REDUCTIONS
RATIO OF NET INVESTMENT INCOME (LOSS) .55% .24%A .17% (.13)%A
TO AVERAGE NET ASSETS
PORTFOLIO TURNOVER 97% 116%A 137% 161%
AVERAGE COMMISSION RATEG $ .0185 $ .0286 $ .0337
</TABLE>
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
<TABLE>
<CAPTION>
<S> <C> <C>
SELECTED PER-SHARE DATA AND RATIOS
YEARS ENDED JULY 31 1998 1997E
NET ASSET VALUE, BEGINNING OF PERIOD $ 15.98 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME (LOSS)D (.04) (.06)
NET REALIZED AND UNREALIZED GAIN .55 6.12
(LOSS)
TOTAL FROM INVESTMENT OPERATIONS .51 6.06
LESS DISTRIBUTIONS
FROM NET REALIZED GAIN (1.15) (.09)
IN EXCESS OF NET REALIZED GAIN (.46) --
TOTAL DISTRIBUTIONS (1.61) (.09)
REDEMPTION FEES ADDED TO PAID IN .01 .01
CAPITAL
NET ASSET VALUE, END OF PERIOD $ 14.89 $ 15.98
TOTAL RETURNB,C 4.26% 60.95%
NET ASSETS, END OF PERIOD (000 $ 7,060 $ 3,598
OMITTED)
RATIO OF EXPENSES TO AVERAGE NET 1.10% 1.50%A,F
ASSETS
RATIO OF EXPENSES TO AVERAGE NET 1.07%G 1.44%A,G
ASSETS AFTER EXPENSE REDUCTIONS
RATIO OF NET INVESTMENT INCOME (LOSS) (.30)% (.50)%A
TO AVERAGE NET ASSETS
PORTFOLIO TURNOVER 348% 517%A
AVERAGE COMMISSION RATEH $ .0418 $ .0415
</TABLE>
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
<TABLE>
<CAPTION>
<S> <C> <C>
SELECTED PER-SHARE DATA AND RATIOS
YEARS ENDED JULY 31 1998 1997E
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.09 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOMED .04 .14
NET REALIZED AND UNREALIZED GAIN 4.17 3.10
(LOSS)
TOTAL FROM INVESTMENT OPERATIONS 4.21 3.24
LESS DISTRIBUTIONS
FROM NET INVESTMENT INCOME (.07)I (.04)
FROM NET REALIZED GAIN (1.22)I (.11)
TOTAL DISTRIBUTIONS (1.29) (.15)
REDEMPTION FEES ADDED TO PAID IN .01 --
CAPITAL
NET ASSET VALUE, END OF PERIOD $ 16.02 $ 13.09
TOTAL RETURNB,C 34.36% 32.68%
NET ASSETS, END OF PERIOD (000 $ 3,430 $ 2,246
OMITTED)
RATIO OF EXPENSES TO AVERAGE NET 1.46% 1.50%A,F
ASSETS
RATIO OF EXPENSES TO AVERAGE NET 1.43%G 1.50%A
ASSETS AFTER EXPENSE REDUCTIONS
RATIO OF NET INVESTMENT INCOME TO .30% 1.29%A
AVERAGE NET ASSETS
PORTFOLIO TURNOVER 151% 13%A
AVERAGE COMMISSION RATEH $ .0298 $ .0162
</TABLE>
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 chart s beginning on page
present calendar year performance for the Institutional Class of
each fun d 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 INDUSTRIES
27.70 % N/A 33.56 % 27.70 % N/A 73.64 %
CYCLICAL INDUSTRIES
6.32 % N/A 23.03 % 6.32 % N/A 48.47 %
FINANCIAL SERVICES
26.39 % N/A 40.72 % 26.39 % N/A 91.83 %
HEALTH CARE
26.70 % N/A 35.66 % 26.70 % N/A 78.89 %
NATURAL RESOURCES*
-14.29 % 10.57 % 12.96 % -14.29 % 65.26 % 238.14 %
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 cont act
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 use its broker-dealer affiliates and other firms that sell
fund shares to carry out a fund's transactions, 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
o f 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
f und'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 p recious 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 regulator y
conditions in foreign countries; fluctuations in foreign
currencies; withholding or other taxes; trading, settlement,
custo dial , 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 s ecurities of any one issuer and may
not invest in more than 10% of th e 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 f or 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 rollove r 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.
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TO OPEN AN ACCOUNT TO ADD TO AN ACCOUNT
PHONE (SMALL SOLID BULLET) CONTACT
YOUR INVESTMENT (SMALL SOLID BULLET) CONTACT YOUR INVESTMENT
YOUR INVESTMENT PROFESSIONAL PROFESSIONAL OR, IF YOU ARE
(PHONE_GRAPHIC) INVESTING PROFESSIONAL OR, IF YOU ARE
THROUGH A BROKER-DEALER OR INVESTING THROUGH A BROKER-DEALER
INSURANCE REPRESENTATIVE, CALL OR INSURANCE REPRESENTATIVE, CALL
1-800-522-7297. IF YOU ARE 1-800-522-7297. IF YOU ARE
INVESTING THROUGH A BANK INVESTING THROUGH A BANK
REPRESENTATIVE, CALL REPRESENTATIVE, CALL
1-800-843-3001. 1-800-843-3001.
(SMALL SOLID BULLET) EXCHANGE
FROM THE SAME CLASS OF (SMALL SOLID BULLET) EXCHANGE FROM THE SAME CLASS OF
ANOTHER FIDELITY ADVISOR FUND OR ANOTHER FIDELITY ADVISOR FUND OR
FROM ANOTHER FIDELITY FUND
ACCOUNT FROM ANOTHER FIDELITY FUND ACCOUNT
WITH THE SAME REGISTRATION, WITH THE SAME REGISTRATION,
INCLUDING NAME, ADDRESS, AND INCLUDING NAME, ADDRESS, AND
TAXPAYER ID NUMBER. TAXPAYER ID NUMBER.
MAIL (MAIL_GRAPHIC) (SMALL SOLID BULLET) COMPLETE
AND SIGN THE ACCOUNT (SMALL SOLID BULLET) MAKE YOUR CHECK PAYABLE TO THE
APPLICATION. MAKE YOUR CHECK COMPLETE NAME OF THE FUND OF YOUR
PAYABLE TO THE COMPLETE NAME OF CHOICE AND NOTE THE APPLICABLE
THE FUND OF YOUR CHOICE AND NOTE CLASS. INDICATE YOUR FUND ACCOUNT
THE APPLICABLE CLASS. MAIL TO
THE NUMBER ON YOUR CHECK AND MAIL TO
ADDRESS INDICATED ON THE THE ADDRESS PRINTED ON YOUR
APPLICATION. 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
REPRESENTATIVE, OR CALL YOUR
INVESTMENT PROFESSIONAL FOR
INSTRUCTIONS.
IN PERSON (HAND_GRAPHIC) (SMALL SOLID BULLET) BRING YOUR
ACCOUNT APPLICATION AND (SMALL SOLID BULLET) BRING YOUR CHECK TO YOUR
CHECK TO YOUR INVESTMENT INVESTMENT PROFESSIONAL.
PROFESSIONAL.
WIRE (WIRE_GRAPHIC) (SMALL SOLID BULLET) CALL
1-800-522-7297, IF YOU ARE (SMALL SOLID BULLET) NOT AVAILABLE FOR RETIREMENT
INVESTING THROUGH A
BROKER-DEALER ACCOUNTS.
OR INSURANCE REPRESENTATIVE,
OR CALL
1-800-843-3001, IF YOU ARE
INVESTING THROUGH A BANK
REPRESENTATIVE, TO SET UP YOUR
ACCOUNT AND TO ARRANGE A WIRE (SMALL SOLID BULLET) WIRE TO:
TRANSACTION. NOT AVAILABLE FOR BANKER'S TRUST CO.
RETIREMENT ACCOUNTS. ROUTING # 021001033
(SMALL SOLID BULLET) WIRE TO: FIDELITY DART DEPOSITORY
BANKER'S TRUST CO. ACCOUNT # 00159759
ROUTING # 021001033 FBO: (ACCOUNT NAME)
FIDELITY DART DEPOSITORY (ACCOUNT NUMBER)
ACCOUNT #00159759
FBO: (ACCOUNT NAME) SPECIFY THE COMPLETE NAME OF THE
(ACCOUNT NUMBER) FUND OF YOUR CHOICE, NOTE THE
APPLICABLE CLASS AND INCLUDE YOUR
SPECIFY THE COMPLETE NAME OF THE ACCOUNT NUMBER AND YOUR NAME.
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
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 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 i n 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 Trus t
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.
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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 RETIREMENT (SMALL SOLID BULLET) MAXIMUM CHECK REQUEST:
1-800-522-7297, $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 INSTRUCTION MUST BE
SOLE PROPRIETORSHIP, UGMA, UTMA SIGNED BY ALL PERSONS REQUIRED TO
SIGN FOR TRANSACTIONS, EXACTLY AS
THEIR NAMES APPEAR ON THE
RETIREMENT ACCOUNT 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 ORGANIZATION (SMALL SOLID BULLET) AT LEAST ONE PERSON AUTHORIZED
BY CORPORATE RESOLUTION TO ACT ON
THE ACCOUNT MUST SIGN THE LETTER.
EXECUTOR, ADMINISTRATOR, (SMALL SOLID BULLET) C ALL 1-800-522-7297 IF YOU ARE
CONSERVATOR/GUARDIAN 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 RETIREMENT (SMALL SOLID BULLET) YOU MUST SIGN UP FOR 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 PROFESSIONA L.
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
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MINIMUM MINIMUM FREQUENCY SETTING UP OR CHANGING
INITIAL ADDITIONAL Monthly, bimonthly, quarterly, (small solid bullet) For a new account, complete the appropriate
section on the application.
$1,000 $100 or semi-annually (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, c all 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 ta x-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 INDUSTRIES 36.94%
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 1997
CYCLICAL INDUSTRIES 19.23%
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 1997
FINANCIAL SERVICES 40.32%
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 1997
HEALTH CARE 31.17%
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> <C>
Calendar year total returns* 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997
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 Index 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32% 1.70%
Goldman Sachs Natural Resources Index N/A N/A N/A N/A N/A N/A N/A N/A N/A 16.95%
</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 Index 1.70%
Goldman Sachs Technology Index 23.52%
YEAR-BY-YEAR TOTAL RETURNS
Calendar year total returns 1997
UTILITIES GROWTH 30.25%
S&P 500 33.36%
Consumer Price Index 1.70%
Goldman Sachs Utilities Index 34.88%
* 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.
FIDELITY ADVISOR FOCUS FUNDS: CLASS A, CLASS T, CLASS B, CLASS C &
INSTITUTIONAL CLASS
STATEMENT OF ADDITIONAL INFORMATION
CROSS REFERENCE SHEET
FORM N-1A
ITEM NUMBER STATEMENT OF ADDITIONAL INFORMATION SECTION
<TABLE>
<CAPTION>
<S> <C> <C> <C>
10, 11 ............................ COVER PAGE; TABLE OF CONTENTS
12 ............................ DESCRIPTION OF THE TRUST
13 A - C ............................ INVESTMENT POLICIES AND LIMITATIONS
D ............................ *
14 A - C ............................ TRUSTEES AND OFFICERS
15 A - C ............................ TRUSTEES AND OFFICERS
16 A (I) ............................ FMR; PORTFOLIO TRANSACTIONS
(II) ............................ TRUSTEES AND OFFICERS
(III) ............................ MANAGEMENT CONTRACTS
B ............................ MANAGEMENT CONTRACTS
C - D ............................ CONTRACTS WITH FMR AFFILIATES
E ............................ *
F ............................ DISTRIBUTION AND SERVICE PLANS
G ............................ *
H ............................ DESCRIPTION OF THE TRUST
I ............................ CONTRACTS WITH FMR AFFILIATES
17 A-D ............................ PORTFOLIO TRANSACTIONS
E ............................ *
18 A ............................ DESCRIPTION OF THE TRUST
B ............................ *
19 A ............................ ADDITIONAL PURCHASE, EXCHANGE AND REDEMPTION
INFORMATION
B ............................ ADDITIONAL PURCHASE, EXCHANGE AND REDEMPTION
INFORMATION; VALUATION
C ............................ *
20 ............................ DISTRIBUTIONS AND TAXES
21 A, B ............................ CONTRACTS WITH FMR AFFILIATES
C ............................ *
22 A ............................ *
B ............................ PERFORMANCE
23 ............................ FINANCIAL STATEMENTS
</TABLE>
* Not Applicable
FIDELITY ADVISOR FOCUS FUNDSSM
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
CLASS A, CLASS T, CLASS B, CLASS C, AND INSTITUTIONAL CLASS
FUNDS OF FIDELITY ADVISOR SERIES VII
STATEMENT OF ADDITIONAL INFORMATION
SEPTEMBER 28, 1998
This Statement of Additional Information (SAI) is not a prospectus but
should be read in conjunction with the funds' current Prospectuses
(dated September 28, 1998 ). Please retain this document for
future reference. The funds' Annual Reports are separate
documents supplied with this SAI. To obtain a free additional copy of
a Prospectus or an Annual Report, please call your investment
professional.
TABLE OF CONTENTS PAGE
INVESTMENT POLICIES AND LIMITATIONS 3
PORTFOLIO TRANSACTIONS 13
VALUATION 19
PERFORMANCE 19
ADDITIONAL PURCHASE, EXCHANGE AND REDEMPTION INFORMATION 47
DISTRIBUTIONS AND TAXES 49
FMR 49
TRUSTEES AND OFFICERS 50
MANAGEMENT CONTRACTS 54
DISTRIBUTION AND SERVICE PLANS 57
CONTRACTS WITH FMR AFFILIATES 61
DESCRIPTION OF THE TRUST 64
FINANCIAL STATEMENTS 64
APPENDIX 64
INVESTMENT ADVISER
Fidelity Management & Research Company (FMR)
INVESTMENT SUB-ADVISERS
Fidelity Management & Research (U.K.) Inc. (FMR U.K.)
Fidelity Management & Research (Far East) Inc. (FMR Far East)
DISTRIBUTOR
Fidelity Distributors Corporation (FDC)
TRANSFER AGENT
Fidelity Investments Institutional Operations Company, Inc. (FIIOC)
AFOC /AFOCI-ptb- 0998
1.473507.101
INVESTMENT POLICIES AND LIMITATIONS
The following policies and limitations supplement those set forth in
the Prospectus. Unless otherwise noted, whenever an investment policy
or limitation states a maximum percentage of a fund's assets that may
be invested in any security or other asset, or sets forth a policy
regarding quality standards, such standard or percentage limitation
will be determined immediately after and as a result of the fund's
acquisition of such security or other asset. Accordingly, any
subsequent change in values, net assets, or other circumstances will
not be considered when determining whether the investment complies
with the fund's investment policies and limitations.
A fund's fundamental investment policies and limitations cannot be
changed without approval by a "majority of the outstanding voting
securities" (as defined in the Investment Company Act of 1940 (the
1940 Act)) of the fund. However, except for the fundamental investment
limitations listed below, the investment policies and limitations
described in this SAI are not fundamental and may be changed without
shareholder approval.
INVESTMENT LIMITATIONS OF CONSUMER INDUSTRIES FUND
THE FOLLOWING ARE THE FUND'S FUNDAMENTAL INVESTMENT LIMITATIONS SET
FORTH IN THEIR ENTIRETY. THE FUND MAY NOT:
(1) issue senior securities, except as permitted under the Investment
Company Act of 1940;
(2) borrow money, except that each fund may borrow money for temporary
or emergency purposes (not for leveraging or investment) in an amount
not exceeding 33 1/3% of its total assets (including the amount
borrowed) less liabilities (other than borrowings). Any borrowings
that come to exceed this amount will be reduced within three days (not
including Sundays and holidays) to the extent necessary to comply with
the 33 1/3% limitation;
(3) underwrite securities issued by others, except to the extent that
a fund may be considered an underwriter within the meaning of the
Securities Act of 1933 in the disposition of restricted securities;
(4) purchase the securities of any issuer if, as a result, less than
25% of the fund's total assets would be invested in the securities of
issuers principally engaged in the business activities of the
industries in the consumer industries sector;
(5) purchase or sell real estate unless acquired as a result of
ownership of securities or other instruments (but this shall not
prevent a fund from investing in securities or other instruments
backed by real estate or securities of companies engaged in the real
estate business);
(6) purchase or sell physical commodities unless acquired as a result
of ownership of securities or other instruments (but this shall not
prevent each fund from purchasing or selling options and futures
contracts or from investing in securities or other instruments backed
by physical commodities); or
(7) lend any security or make any other loan if, as a result, more
than 33 1/3% of its total assets would be lent to other parties, but
this limitation does not apply to purchases of debt securities or to
repurchase agreements.
(8) The fund may, notwithstanding any other fundamental investment
policy or limitation, invest all of its assets in the securities of a
single open-end management investment company managed by Fidelity
Management & Research Company or an affiliate or successor with
substantially the same fundamental investment objective, policies, and
limitations as the fund.
THE FOLLOWING INVESTMENT LIMITATIONS ARE NOT FUNDAMENTAL AND MAY BE
CHANGED WITHOUT SHAREHOLDER APPROVAL.
(i) In order to qualify as a "regulated investment company" under
Subchapter M of the Internal Revenue Code of 1986, as amended, the
fund currently intends to comply with certain diversification limits
imposed by Subchapter M.
(ii) The fund does not currently intend to sell securities short,
unless it owns or has the right to obtain securities equivalent in
kind and amount to the securities sold short, and provided that
transactions in futures contracts and options are not deemed to
constitute selling securities short.
(iii) The fund does not currently intend to purchase securities on
margin, except that the fund may obtain such short-term credits as are
necessary for the clearance of transactions, and provided that margin
payments in connection with futures contracts and options on futures
contracts shall not constitute purchasing securities on margin.
(iv) The fund does not currently intend to hedge more than 40% of its
total assets with short sales against the box under normal conditions.
(v) The fund may borrow money only (a) from a bank or from a
registered investment company or portfolio for which FMR or an
affiliate serves as investment adviser or (b) by engaging in reverse
repurchase agreements with any party (reverse repurchase agreements
are treated as borrowings for purposes of fundamental investment
limitation (2)). The fund will not borrow from other funds advised by
FMR or its affiliates if total outstanding borrowings immediately
after such borrowing would exceed 15% of the fund's total assets.
(vi) The fund does not currently intend to purchase any security if,
as a result, more than 10% of its net assets would be invested in
securities that are deemed to be illiquid because they are subject to
legal or contractual restrictions on resale or because they cannot be
sold or disposed of in the ordinary course of business at
approximately the prices at which they are valued.
(vii) The fund does not currently intend to lend assets other than
securities to other parties, except by (a) lending money (up to 5% of
the fund's net assets) to a registered investment company or portfolio
for which FMR or an affiliate serves as investment adviser or (b)
acquiring loans, loan participations, or other forms of direct debt
instruments and, in connection therewith, assuming any associated
unfunded commitments of the sellers. (This limitation does not apply
to purchases of debt securities or to repurchase agreements.)
(viii) The fund does not currently intend to invest all of its assets
in the securities of a single open-end management investment company
managed by Fidelity Management & Research Company or an affiliate or
successor with substantially the same fundamental investment
objective, policies, and limitations as the fund.
For purposes of limitation (i), Subchapter M generally requires the
fund to invest no more than 25% of its total assets in securities of
any one issuer and to invest at least 50% of its total assets so that
no more than 5% of the fund's total assets are invested in securities
of any one issuer. However, Subchapter M allows unlimited investments
in cash, cash items, government securities (as defined in Subchapter
M) and securities of other investment companies. These tax
requirements are generally applied at the end of each quarter of the
fund's taxable year.
With respect to limitation (vi), if through a change in values, net
assets, or other circumstances, the fund were in a position where more
than 10% of its net assets was invested in illiquid securities, it
would consider appropriate steps to protect liquidity.
For purposes of limitation (4), FMR considers an issuer to be
principally engaged in a business activity normally based on standard
industry classifications published by the U.S. Government. However,
FMR may consider an issuer to be principally engaged in a business
activity if at least 50% of its assets, gross income, or net profits
are committed to, or derived from, that activity.
For the fund's limitations on futures and options transactions, see
the section entitled "Limitations on Futures and Options Transactions"
on page .
INVESTMENT LIMITATIONS OF CYCLICAL INDUSTRIES FUND
THE FOLLOWING ARE THE FUND'S FUNDAMENTAL INVESTMENT LIMITATIONS SET
FORTH IN THEIR ENTIRETY. THE FUND MAY NOT:
(1) issue senior securities, except as permitted under the Investment
Company Act of 1940;
(2) borrow money, except that each fund may borrow money for temporary
or emergency purposes (not for leveraging or investment) in an amount
not exceeding 33 1/3% of its total assets (including the amount
borrowed) less liabilities (other than borrowings). Any borrowings
that come to exceed this amount will be reduced within three days (not
including Sundays and holidays) to the extent necessary to comply with
the 33 1/3% limitation;
(3) underwrite securities issued by others, except to the extent that
a fund may be considered an underwriter within the meaning of the
Securities Act of 1933 in the disposition of restricted securities;
(4) purchase the securities of any issuer if, as a result, less than
25% of the fund's total assets would be invested in the securities of
issuers principally engaged in the business activities of the
industries in the cyclical industries sector;
(5) purchase or sell real estate unless acquired as a result of
ownership of securities or other instruments (but this shall not
prevent a fund from investing in securities or other instruments
backed by real estate or securities of companies engaged in the real
estate business);
(6) purchase or sell physical commodities unless acquired as a result
of ownership of securities or other instruments (but this shall not
prevent each fund from purchasing or selling options and futures
contracts or from investing in securities or other instruments backed
by physical commodities); or
(7) lend any security or make any other loan if, as a result, more
than 33 1/3% of its total assets would be lent to other parties, but
this limitation does not apply to purchases of debt securities or to
repurchase agreements.
(8) The fund may, notwithstanding any other fundamental investment
policy or limitation, invest all of its assets in the securities of a
single open-end management investment company managed by Fidelity
Management & Research Company or an affiliate or successor with
substantially the same fundamental investment objective, policies, and
limitations as the fund.
THE FOLLOWING INVESTMENT LIMITATIONS ARE NOT FUNDAMENTAL AND MAY BE
CHANGED WITHOUT SHAREHOLDER APPROVAL.
(i) In order to qualify as a "regulated investment company" under
Subchapter M of the Internal Revenue Code of 1986, as amended, the
fund currently intends to comply with certain diversification limits
imposed by Subchapter M.
(ii) The fund does not currently intend to sell securities short,
unless it owns or has the right to obtain securities equivalent in
kind and amount to the securities sold short, and provided that
transactions in futures contracts and options are not deemed to
constitute selling securities short.
(iii) The fund does not currently intend to purchase securities on
margin, except that the fund may obtain such short-term credits as are
necessary for the clearance of transactions, and provided that margin
payments in connection with futures contracts and options on futures
contracts shall not constitute purchasing securities on margin.
(iv) The fund does not currently intend to hedge more than 40% of its
total assets with short sales against the box under normal conditions.
(v) The fund may borrow money only (a) from a bank or from a
registered investment company or portfolio for which FMR or an
affiliate serves as investment adviser or (b) by engaging in reverse
repurchase agreements with any party (reverse repurchase agreements
are treated as borrowings for purposes of fundamental investment
limitation (2)). The fund will not borrow from other funds advised by
FMR or its affiliates if total outstanding borrowings immediately
after such borrowing would exceed 15% of the fund's total assets.
(vi) The fund does not currently intend to purchase any security if,
as a result, more than 10% of its net assets would be invested in
securities that are deemed to be illiquid because they are subject to
legal or contractual restrictions on resale or because they cannot be
sold or disposed of in the ordinary course of business at
approximately the prices at which they are valued.
(vii) The fund does not currently intend to lend assets other than
securities to other parties, except by (a) lending money (up to 5% of
the fund's net assets) to a registered investment company or portfolio
for which FMR or an affiliate serves as investment adviser or (b)
acquiring loans, loan participations, or other forms of direct debt
instruments and, in connection therewith, assuming any associated
unfunded commitments of the sellers. (This limitation does not apply
to purchases of debt securities or to repurchase agreements.)
(viii) The fund does not currently intend to invest all of its assets
in the securities of a single open-end management investment company
managed by Fidelity Management & Research Company or an affiliate or
successor with substantially the same fundamental investment
objective, policies, and limitations as the fund.
For purposes of limitation (i), Subchapter M generally requires the
fund to invest no more than 25% of its total assets in securities of
any one issuer and to invest at least 50% of its total assets so that
no more than 5% of the fund's total assets are invested in securities
of any one issuer. However, Subchapter M allows unlimited investments
in cash, cash items, government securities (as defined in Subchapter
M) and securities of other investment companies. These tax
requirements are generally applied at the end of each quarter of the
fund's taxable year.
With respect to limitation (vi), if through a change in values, net
assets, or other circumstances, the fund were in a position where more
than 10% of its net assets was invested in illiquid securities, it
would consider appropriate steps to protect liquidity.
For purposes of limitation (4), FMR considers an issuer to be
principally engaged in a business activity normally based on standard
industry classifications published by the U.S. Government. However,
FMR may consider an issuer to be principally engaged in a business
activity if at least 50% of its assets, gross income, or net profits
are committed to, or derived from, that activity.
For the fund's limitations on futures and options transactions, see
the section entitled "Limitations on Futures and Options Transactions"
on page .
INVESTMENT LIMITATIONS OF HEALTH CARE FUND
THE FOLLOWING ARE THE FUND'S FUNDAMENTAL INVESTMENT LIMITATIONS SET
FORTH IN THEIR ENTIRETY. THE FUND MAY NOT:
(1) issue senior securities, except as permitted under the Investment
Company Act of 1940;
(2) borrow money, except that each fund may borrow money for temporary
or emergency purposes (not for leveraging or investment) in an amount
not exceeding 33 1/3% of its total assets (including the amount
borrowed) less liabilities (other than borrowings). Any borrowings
that come to exceed this amount will be reduced within three days (not
including Sundays and holidays) to the extent necessary to comply with
the 33 1/3% limitation;
(3) underwrite securities issued by others, except to the extent that
a fund may be considered an underwriter within the meaning of the
Securities Act of 1933 in the disposition of restricted securities;
(4) purchase the securities of any issuer if, as a result, less than
25% of the fund's total assets would be invested in the securities of
issuers principally engaged in the business activities of the
industries in the health care sector;
(5) purchase or sell real estate unless acquired as a result of
ownership of securities or other instruments (but this shall not
prevent a fund from investing in securities or other instruments
backed by real estate or securities of companies engaged in the real
estate business);
(6) purchase or sell physical commodities unless acquired as a result
of ownership of securities or other instruments (but this shall not
prevent each fund from purchasing or selling options and futures
contracts or from investing in securities or other instruments backed
by physical commodities); or
(7) lend any security or make any other loan if, as a result, more
than 33 1/3% of its total assets would be lent to other parties, but
this limitation does not apply to purchases of debt securities or to
repurchase agreements.
(8) The fund may, notwithstanding any other fundamental investment
policy or limitation, invest all of its assets in the securities of a
single open-end management investment company managed by Fidelity
Management & Research Company or an affiliate or successor with
substantially the same fundamental investment objective, policies, and
limitations as the fund.
THE FOLLOWING INVESTMENT LIMITATIONS ARE NOT FUNDAMENTAL AND MAY BE
CHANGED WITHOUT SHAREHOLDER APPROVAL.
(i) In order to qualify as a "regulated investment company" under
Subchapter M of the Internal Revenue Code of 1986, as amended, the
fund currently intends to comply with certain diversification limits
imposed by Subchapter M.
(ii) The fund does not currently intend to sell securities short,
unless it owns or has the right to obtain securities equivalent in
kind and amount to the securities sold short, and provided that
transactions in futures contracts and options are not deemed to
constitute selling securities short.
(iii) The fund does not currently intend to purchase securities on
margin, except that the fund may obtain such short-term credits as are
necessary for the clearance of transactions, and provided that margin
payments in connection with futures contracts and options on futures
contracts shall not constitute purchasing securities on margin.
(iv) The fund does not currently intend to hedge more than 40% of its
total assets with short sales against the box under normal conditions.
(v) The fund may borrow money only (a) from a bank or from a
registered investment company or portfolio for which FMR or an
affiliate serves as investment adviser or (b) by engaging in reverse
repurchase agreements with any party (reverse repurchase agreements
are treated as borrowings for purposes of fundamental investment
limitation (2)). The fund will not borrow from other funds advised by
FMR or its affiliates if total outstanding borrowings immediately
after such borrowing would exceed 15% of the fund's total assets.
(vi) The fund does not currently intend to purchase any security if,
as a result, more than 10% of its net assets would be invested in
securities that are deemed to be illiquid because they are subject to
legal or contractual restrictions on resale or because they cannot be
sold or disposed of in the ordinary course of business at
approximately the prices at which they are valued.
(vii) The fund does not currently intend to lend assets other than
securities to other parties, except by (a) lending money (up to 5% of
the fund's net assets) to a registered investment company or portfolio
for which FMR or an affiliate serves as investment adviser or (b)
acquiring loans, loan participations, or other forms of direct debt
instruments and, in connection therewith, assuming any associated
unfunded commitments of the sellers. (This limitation does not apply
to purchases of debt securities or to repurchase agreements.)
(viii) The fund does not currently intend to invest all of its assets
in the securities of a single open-end management investment company
managed by Fidelity Management & Research Company or an affiliate or
successor with substantially the same fundamental investment
objective, policies, and limitations as the fund.
For purposes of limitation (i), Subchapter M generally requires the
fund to invest no more than 25% of its total assets in securities of
any one issuer and to invest at least 50% of its total assets so that
no more than 5% of the fund's total assets are invested in securities
of any one issuer. However, Subchapter M allows unlimited investments
in cash, cash items, government securities (as defined in Subchapter
M) and securities of other investment companies. These tax
requirements are generally applied at the end of each quarter of the
fund's taxable year.
With respect to limitation (vi), if through a change in values, net
assets, or other circumstances, the fund were in a position where more
than 10% of its net assets was invested in illiquid securities, it
would consider appropriate steps to protect liquidity.
For purposes of limitation (4), FMR considers an issuer to be
principally engaged in a business activity normally based on standard
industry classifications published by the U.S. Government. However,
FMR may consider an issuer to be principally engaged in a business
activity if at least 50% of its assets, gross income, or net profits
are committed to, or derived from, that activity.
For the fund's limitations on futures and options transactions, see
the section entitled "Limitations on Futures and Options Transactions"
on page .
INVESTMENT LIMITATIONS OF NATURAL RESOURCES FUND
THE FOLLOWING ARE THE FUND'S FUNDAMENTAL INVESTMENT LIMITATIONS SET
FORTH IN THEIR ENTIRETY. THE FUND MAY NOT:
(1) issue senior securities, except as permitted under the Investment
Company Act of 1940;
(2) borrow money, except that the fund may borrow money for temporary
or emergency purposes (not for leveraging or investment) in an amount
not exceeding 33 1/3% of its total assets (including the amount
borrowed) less liabilities (other than borrowings). Any borrowings
that come to exceed this amount will be reduced within three days (not
including Sundays and holidays) to the extent necessary to comply with
the 33 1/3% limitation;
(3) underwrite securities issued by others, except to the extent that
the fund may be considered an underwriter within the meaning of the
Securities Act of 1933 in the disposition of restricted securities;
(4) purchase the securities of any issuer if, as a result, less than
25% of the fund's total assets would be invested in the securities of
issuers principally engaged in the business activity of the industries
in the natural resources sector;
(5) purchase or sell real estate unless acquired as a result of
ownership of securities or other instruments (but this shall not
prevent the fund from investing in securities or other instruments
backed by real estate or securities of companies engaged in the real
estate business); or
(6) lend any security or make any other loan if, as a result, more
than 33 1/3% of its total assets would be lent to other parties, but
this limitation does not apply to purchases of debt securities or to
repurchase agreements.
(7) The fund may, notwithstanding any other fundamental investment
policy or limitation, invest all of its assets in the securities of a
single open-end management investment company with substantially the
same fundamental investment objective, policies, and limitations as
the fund.
(8) The fund is authorized to invest up to 50% of its assets in
physical commodities.
THE FOLLOWING LIMITATIONS ARE NOT FUNDAMENTAL AND MAY BE CHANGED
WITHOUT SHAREHOLDER APPROVAL.
(i) In order to qualify as a "regulated investment company" under
Subchapter M of the Internal Revenue Code of 1986, as amended, the
fund currently intends to comply with certain diversification limits
imposed by Subchapter M.
(ii) The fund does not currently intend to sell securities short,
unless it owns or has the right to obtain securities equivalent in
kind and amount to the securities sold short, and provided that
transactions in futures contracts and options are not deemed to
constitute selling securities short.
(iii) The fund does not currently intend to purchase securities on
margin, except that the fund may obtain such short-term credits as are
necessary for the clearance of transactions, and provided that margin
payments in connection with futures contracts and options on futures
contracts shall not constitute purchasing securities on margin.
(iv) The fund does not currently intend to hedge more than 40% of its
total assets with short sales against the box under normal conditions.
(v) The fund may borrow money only (a) from a bank or from a
registered investment company or portfolio for which FMR or an
affiliate serves as investment adviser or (b) by engaging in reverse
repurchase agreements with any party (reverse repurchase agreements
are treated as borrowings for purposes of fundamental investment
limitation (2)). The fund will not borrow from other funds advised by
FMR or its affiliates if total outstanding borrowings immediately
after such borrowing would exceed 15% of the fund's total assets.
(vi) The fund does not currently intend to purchase any security if,
as a result, more than 10% of its net assets would be invested in
securities that are deemed to be illiquid because they are subject to
legal or contractual restrictions on resale or because they cannot be
sold or disposed of in the ordinary course of business at
approximately the prices at which they are valued.
(vii) The fund does not currently intend to lend assets other than
securities to other parties, except by (a) lending money (up to 5% of
the fund's net assets) to a registered investment company or portfolio
for which FMR or an affiliate serves as investment adviser or (b)
acquiring loans, loan participations, or other forms of direct debt
instruments and, in connection therewith, assuming any associated
unfunded commitments of the sellers. (This limitation does not apply
to purchases of debt securities or to repurchase agreements.)
(viii) The fund does not currently intend to invest all of its assets
in the securities of a single open-end management investment company
with substantially the same fundamental investment objective,
policies, and limitations as the fund.
For purposes of limitation (i), Subchapter M generally requires the
fund to invest no more than 25% of its total assets in securities of
any one issuer and to invest at least 50% of its total assets so that
no more than 5% of the fund's total assets are invested in securities
of any one issuer. However, Subchapter M allows unlimited investments
in cash, cash items, government securities (as defined in Subchapter
M) and securities of other investment companies. These tax
requirements are generally applied at the end of each quarter of the
fund's taxable year.
With respect to limitation (vi), if through a change in values, net
assets, or other circumstances, the fund were in a position where more
than 10% of its net assets was invested in illiquid securities, it
would consider appropriate steps to protect liquidity.
For purposes of limitation (4), FMR considers an issuer to be
principally engaged in a business activity normally based on standard
industry classifications published by the U.S. Government. However,
FMR may consider an issuer to be principally engaged in a business
activity if at least 50% of its assets, gross income, or net profits
are committed to, or derived from, that activity.
For the fund's limitations on futures and options transactions, see
the section entitled "Limitations on Futures and Options Transactions"
on page .
INVESTMENT LIMITATIONS OF TECHNOLOGY FUND
THE FOLLOWING ARE THE FUND'S FUNDAMENTAL INVESTMENT LIMITATIONS SET
FORTH IN THEIR ENTIRETY. THE FUND MAY NOT:
(1) issue senior securities, except as permitted under the Investment
Company Act of 1940;
(2) borrow money, except that each fund may borrow money for temporary
or emergency purposes (not for leveraging or investment) in an amount
not exceeding 33 1/3% of its total assets (including the amount
borrowed) less liabilities (other than borrowings). Any borrowings
that come to exceed this amount will be reduced within three days (not
including Sundays and holidays) to the extent necessary to comply with
the 33 1/3% limitation;
(3) underwrite securities issued by others, except to the extent that
a fund may be considered an underwriter within the meaning of the
Securities Act of 1933 in the disposition of restricted securities;
(4) purchase the securities of any issuer if, as a result, less than
25% of the fund's total assets would be invested in the securities of
issuers principally engaged in the business activities of the
industries in the technology sector;
(5) purchase or sell real estate unless acquired as a result of
ownership of securities or other instruments (but this shall not
prevent a fund from investing in securities or other instruments
backed by real estate or securities of companies engaged in the real
estate business);
(6) purchase or sell physical commodities unless acquired as a result
of ownership of securities or other instruments (but this shall not
prevent each fund from purchasing or selling options and futures
contracts or from investing in securities or other instruments backed
by physical commodities); or
(7) lend any security or make any other loan if, as a result, more
than 33 1/3% of its total assets would be lent to other parties, but
this limitation does not apply to purchases of debt securities or to
repurchase agreements.
(8) The fund may, notwithstanding any other fundamental investment
policy or limitation, invest all of its assets in the securities of a
single open-end management investment company managed by Fidelity
Management & Research Company or an affiliate or successor with
substantially the same fundamental investment objective, policies, and
limitations as the fund.
THE FOLLOWING INVESTMENT LIMITATIONS ARE NOT FUNDAMENTAL AND MAY BE
CHANGED WITHOUT SHAREHOLDER APPROVAL.
(i) In order to qualify as a "regulated investment company" under
Subchapter M of the Internal Revenue Code of 1986, as amended, the
fund currently intends to comply with certain diversification limits
imposed by Subchapter M.
(ii) The fund does not currently intend to sell securities short,
unless it owns or has the right to obtain securities equivalent in
kind and amount to the securities sold short, and provided that
transactions in futures contracts and options are not deemed to
constitute selling securities short.
(iii) The fund does not currently intend to purchase securities on
margin, except that the fund may obtain such short-term credits as are
necessary for the clearance of transactions, and provided that margin
payments in connection with futures contracts and options on futures
contracts shall not constitute purchasing securities on margin.
(iv) The fund does not currently intend to hedge more than 40% of its
total assets with short sales against the box under normal conditions.
(v) The fund may borrow money only (a) from a bank or from a
registered investment company or portfolio for which FMR or an
affiliate serves as investment adviser or (b) by engaging in reverse
repurchase agreements with any party (reverse repurchase agreements
are treated as borrowings for purposes of fundamental investment
limitation (2)). The fund will not borrow from other funds advised by
FMR or its affiliates if total outstanding borrowings immediately
after such borrowing would exceed 15% of the fund's total assets.
(vi) The fund does not currently intend to purchase any security if,
as a result, more than 10% of its net assets would be invested in
securities that are deemed to be illiquid because they are subject to
legal or contractual restrictions on resale or because they cannot be
sold or disposed of in the ordinary course of business at
approximately the prices at which they are valued.
(vii) The fund does not currently intend to lend assets other than
securities to other parties, except by (a) lending money (up to 5% of
the fund's net assets) to a registered investment company or portfolio
for which FMR or an affiliate serves as investment adviser or (b)
acquiring loans, loan participations, or other forms of direct debt
instruments and, in connection therewith, assuming any associated
unfunded commitments of the sellers. (This limitation does not apply
to purchases of debt securities or to repurchase agreements.)
(viii) The fund does not currently intend to invest all of its assets
in the securities of a single open-end management investment company
managed by Fidelity Management & Research Company or an affiliate or
successor with substantially the same fundamental investment
objective, policies, and limitations as the fund.
For purposes of limitation (i), Subchapter M generally requires the
fund to invest no more than 25% of its total assets in securities of
any one issuer and to invest at least 50% of its total assets so that
no more than 5% of the fund's total assets are invested in securities
of any one issuer. However, Subchapter M allows unlimited investments
in cash, cash items, government securities (as defined in Subchapter
M) and securities of other investment companies. These tax
requirements are generally applied at the end of each quarter of the
fund's taxable year.
With respect to limitation (vi), if through a change in values, net
assets, or other circumstances, the fund were in a position where more
than 10% of its net assets was invested in illiquid securities, it
would consider appropriate steps to protect liquidity.
For purposes of limitation (4), FMR considers an issuer to be
principally engaged in a business activity normally based on standard
industry classifications published by the U.S. Government. However,
FMR may consider an issuer to be principally engaged in a business
activity if at least 50% of its assets, gross income, or net profits
are committed to, or derived from, that activity.
For the fund's limitations on futures and options transactions, see
the section entitled "Limitations on Futures and Options Transactions"
on page .
INVESTMENT LIMITATIONS OF UTILITIES GROWTH FUND
THE FOLLOWING ARE THE FUND'S FUNDAMENTAL INVESTMENT LIMITATIONS SET
FORTH IN THEIR ENTIRETY. THE FUND MAY NOT:
(1) issue senior securities, except as permitted under the Investment
Company Act of 1940;
(2) borrow money, except that each fund may borrow money for temporary
or emergency purposes (not for leveraging or investment) in an amount
not exceeding 33 1/3% of its total assets (including the amount
borrowed) less liabilities (other than borrowings). Any borrowings
that come to exceed this amount will be reduced within three days (not
including Sundays and holidays) to the extent necessary to comply with
the 33 1/3% limitation;
(3) underwrite securities issued by others, except to the extent that
a fund may be considered an underwriter within the meaning of the
Securities Act of 1933 in the disposition of restricted securities;
(4) purchase the securities of any issuer if, as a result, less than
25% of the fund's total assets would be invested in the securities of
issuers principally engaged in the business activities of the
industries in the utilities sector;
(5) purchase or sell real estate unless acquired as a result of
ownership of securities or other instruments (but this shall not
prevent a fund from investing in securities or other instruments
backed by real estate or securities of companies engaged in the real
estate business);
(6) purchase or sell physical commodities unless acquired as a result
of ownership of securities or other instruments (but this shall not
prevent each fund from purchasing or selling options and futures
contracts or from investing in securities or other instruments backed
by physical commodities); or
(7) lend any security or make any other loan if, as a result, more
than 33 1/3% of its total assets would be lent to other parties, but
this limitation does not apply to purchases of debt securities or to
repurchase agreements.
(8) The fund may, notwithstanding any other fundamental investment
policy or limitation, invest all of its assets in the securities of a
single open-end management investment company managed by Fidelity
Management & Research Company or an affiliate or successor with
substantially the same fundamental investment objective, policies, and
limitations as the fund.
THE FOLLOWING INVESTMENT LIMITATIONS ARE NOT FUNDAMENTAL AND MAY BE
CHANGED WITHOUT SHAREHOLDER APPROVAL.
(i) In order to qualify as a "regulated investment company" under
Subchapter M of the Internal Revenue Code of 1986, as amended, the
fund currently intends to comply with certain diversification limits
imposed by Subchapter M.
(ii) The fund does not currently intend to sell securities short,
unless it owns or has the right to obtain securities equivalent in
kind and amount to the securities sold short, and provided that
transactions in futures contracts and options are not deemed to
constitute selling securities short.
(iii) The fund does not currently intend to purchase securities on
margin, except that the fund may obtain such short-term credits as are
necessary for the clearance of transactions, and provided that margin
payments in connection with futures contracts and options on futures
contracts shall not constitute purchasing securities on margin.
(iv) The fund does not currently intend to hedge more than 40% of its
total assets with short sales against the box under normal conditions.
(v) The fund may borrow money only (a) from a bank or from a
registered investment company or portfolio for which FMR or an
affiliate serves as investment adviser or (b) by engaging in reverse
repurchase agreements with any party (reverse repurchase agreements
are treated as borrowings for purposes of fundamental investment
limitation (2)). The fund will not borrow from other funds advised by
FMR or its affiliates if total outstanding borrowings immediately
after such borrowing would exceed 15% of the fund's total assets.
(vi) The fund does not currently intend to purchase any security if,
as a result, more than 10% of its net assets would be invested in
securities that are deemed to be illiquid because they are subject to
legal or contractual restrictions on resale or because they cannot be
sold or disposed of in the ordinary course of business at
approximately the prices at which they are valued.
(vii) The fund does not currently intend to lend assets other than
securities to other parties, except by (a) lending money (up to 5% of
the fund's net assets) to a registered investment company or portfolio
for which FMR or an affiliate serves as investment adviser or (b)
acquiring loans, loan participations, or other forms of direct debt
instruments and, in connection therewith, assuming any associated
unfunded commitments of the sellers. (This limitation does not apply
to purchases of debt securities or to repurchase agreements.)
(viii) The fund does not currently intend to invest all of its assets
in the securities of a single open-end management investment company
managed by Fidelity Management & Research Company or an affiliate or
successor with substantially the same fundamental investment
objective, policies, and limitations as the fund.
For purposes of limitation (i), Subchapter M generally requires the
fund to invest no more than 25% of its total assets in securities of
any one issuer and to invest at least 50% of its total assets so that
no more than 5% of the fund's total assets are invested in securities
of any one issuer. However, Subchapter M allows unlimited investments
in cash, cash items, government securities (as defined in Subchapter
M) and securities of other investment companies. These tax
requirements are generally applied at the end of each quarter of the
fund's taxable year.
With respect to limitation (vi), if through a change in values, net
assets, or other circumstances, the fund were in a position where more
than 10% of its net assets was invested in illiquid securities, it
would consider appropriate steps to protect liquidity.
For purposes of limitation (4), FMR considers an issuer to be
principally engaged in a business activity normally based on standard
industry classifications published by the U.S. Government. However,
FMR may consider an issuer to be principally engaged in a business
activity if at least 50% of its assets, gross income, or net profits
are committed to, or derived from, that activity.
For the fund's limitations on futures and options transactions, see
the section entitled "Limitations on Futures and Options Transactions"
on page .
INVESTMENT LIMITATIONS OF FINANCIAL SERVICES FUND
THE FOLLOWING ARE THE FUND'S FUNDAMENTAL INVESTMENT LIMITATIONS SET
FORTH IN THEIR ENTIRETY. THE FUND MAY NOT:
(1) with respect to 75% of the fund's total assets, purchase the
securities of any issuer (other than securities issued or guaranteed
by the U.S. Government or any of its agencies or instrumentalities, or
securities of other investment companies) if, as a result, (a) more
than 5% of the fund's total assets would be invested in the securities
of that issuer or (b) the fund would hold more than 10% of the
outstanding voting securities of that issuer.
(2) issue senior securities, except as permitted under the Investment
Company Act of 1940;
(3) borrow money, except that the fund may borrow money for temporary
or emergency purposes (not for leveraging or investment) in an amount
not exceeding 33 1/3% of its total assets (including the amount
borrowed) less liabilities (other than borrowings). Any borrowings
that come to exceed this amount will be reduced within three days (not
including Sundays and holidays) to the extent necessary to comply with
the 33 1/3% limitation;
(4) underwrite securities issued by others, except to the extent that
the fund may be considered an underwriter within the meaning of the
Securities Act of 1933 in the disposition of restricted securities;
(5) purchase the securities of any issuer if, as a result, less than
25% of the fund's total assets would be invested in the securities of
issuers principally engaged in the business activities of the
industries in the financial services sector;
(6) purchase or sell real estate unless acquired as a result of
ownership of securities or other instruments (but this shall not
prevent the fund from investing in securities or other instruments
backed by real estate or securities of companies engaged in the real
estate business);
(7) purchase or sell physical commodities unless acquired as a result
of ownership of securities or other instruments (but this shall not
prevent the fund from purchasing or selling options and futures
contracts or from investing in securities or other instruments backed
by physical commodities); or
(8) lend any security or make any other loan if, as a result, more
than 33 1/3% of its total assets would be lent to other parties, but
this limitation does not apply to purchases of debt securities or to
repurchase agreements.
(9) The fund may, notwithstanding any other fundamental investment
policy or limitation, invest all of its assets in the securities of a
single open-end management investment company managed by Fidelity
Management & Research Company or an affiliate or successor with
substantially the same fundamental investment objective, policies, and
limitations as the fund.
THE FOLLOWING INVESTMENT LIMITATIONS ARE NOT FUNDAMENTAL AND MAY BE
CHANGED WITHOUT SHAREHOLDER APPROVAL.
(i) The fund does not currently intend to sell securities short,
unless it owns or has the right to obtain securities equivalent in
kind and amount to the securities sold short, and provided that
transactions in futures contracts and options are not deemed to
constitute selling securities short.
(ii) The fund does not currently intend to purchase securities on
margin, except that the fund may obtain such short-term credits as are
necessary for the clearance of transactions, and provided that margin
payments in connection with futures contracts and options on futures
contracts shall not constitute purchasing securities on margin.
(iii) The fund does not currently intend to hedge more than 40% of its
total assets with short sales against the box under normal conditions.
(iv) The fund may borrow money only (a) from a bank or from a
registered investment company or portfolio for which FMR or an
affiliate serves as investment adviser or (b) by engaging in reverse
repurchase agreements with any party (reverse repurchase agreements
are treated as borrowings for purposes of fundamental investment
limitation (3)). The fund will not borrow from other funds advised by
FMR or its affiliates if total outstanding borrowings immediately
after such borrowing would exceed 15% of the fund's total assets.
(v) The fund does not currently intend to purchase any security if, as
a result, more than 10% of its net assets would be invested in
securities that are deemed to be illiquid because they are subject to
legal or contractual restrictions on resale or because they cannot be
sold or disposed of in the ordinary course of business at
approximately the prices at which they are valued.
(vi) The fund does not currently intend to lend assets other than
securities to other parties, except by (a) lending money (up to 5% of
the fund's net assets) to a registered investment company or portfolio
for which FMR or an affiliate serves as investment adviser or (b)
acquiring loans, loan participations, or other forms of direct debt
instruments and, in connection therewith, assuming any associated
unfunded commitments of the sellers. (This limitation does not apply
to purchases of debt securities or to repurchase agreements.)
(vii) The fund does not currently intend to invest all of its assets
in the securities of a single open-end management investment company
managed by Fidelity Management & Research Company or an affiliate or
successor with substantially the same fundamental investment
objective, policies, and limitations as the fund.
With respect to limitation (v), if through a change in values, net
assets, or other circumstances, the fund were in a position where more
than 10% of its net assets was invested in illiquid securities, it
would consider appropriate steps to protect liquidity.
For purposes of limitation (5), FMR considers an issuer to be
principally engaged in a business activity normally based on standard
industry classifications published by the U.S. Government. However,
FMR may consider an issuer to be principally engaged in a business
activity if at least 50% of its assets, gross income, or net profits
are committed to, or derived from, that activity.
For the fund's limitations on futures and options transactions, see
the section entitled "Limitations on Futures and Options Transactions"
on page .
FINANCIAL SERVICES FUND. Rule 12d3-1 under the 1940 Act allows
investment portfolios such as this fund to invest in companies engaged
in securities-related activities subject to certain conditions.
Purchases of securities of a company that derived 15% or less of gross
revenues during its most recent fiscal year from securities-related
activities (i.e., broker/dealer, underwriting, or investment advisory
activities) are subject only to the same percentage limitations as
would apply to any other security the fund may purchase. The fund may
purchase securities of an issuer that derived more than 15% of its
gross revenues in its most recent fiscal year from securities-related
activities, subject to the following conditions:
a. the purchase cannot cause more than 5% of the fund's total assets
to be invested in securities of that issuer;
b. for an equity security, the purchase cannot result in the fund's
owning more than 5% of the issuer's outstanding securities in that
class;
c. for a debt security, the purchase cannot result in the fund's
owning more than 10% of the outstanding principal amount of the
issuer's debt securities.
In applying the gross revenue test, an issuer's own securities-related
activities must be combined with its ratable share of
securities-related revenues from enterprises in which it owns a 20% or
greater voting or equity interest. All of the above percentage
limitations, as well as the issuer's gross revenue test, are
applicable at the time of purchase. With respect to warrants, rights,
and convertible securities, a determination of compliance with the
above limitations shall be made as though such warrant, right, or
conversion privilege had been exercised. The fund will not be required
to divest its holdings of a particular issuer when circumstances
subsequent to the purchase cause one of the above conditions not to be
met. The fund is not permitted to acquire any security issued by FMR,
FDC, or any affiliated company of these companies that is a
securities-related business. The purchase of a general partnership
interest in a securities-related business is prohibited.
FUND DESCRIPTIONS
THE FUNDS INVEST PRIMARILY WITHIN THE INVESTMENT AREAS DESCRIBED
BELOW.
CONSUMER INDUSTRIES FUND: COMPANIES ENGAGED IN THE MANUFACTURE AND
DISTRIBUTION OF GOODS TO CONSUMERS BOTH DOMESTICALLY AND
INTERNATIONALLY. The fund may invest in companies that manufacture or
sell durable products such as homes, cars, boats, furniture, major
appliances, and personal computers.
The fund also may 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 consumer
products and services such as lodging, child care, convenience stores,
and car rentals.
The success of durable goods manufacturers and retailers is closely
tied to the performance of the overall economy, interest rates, and
consumer confidence. These segments are very competitive; success
depends heavily on household disposable income and consumer spending.
Consumer product and retailing concepts tend to rise and fall with
changes in demographics and consumer tastes.
CYCLICAL INDUSTRIES FUND: 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 the 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: COMPANIES PROVIDING FINANCIAL SERVICES TO
CONSUMERS AND INDUSTRY. Companies in the financial services sector
include: commercial banks and savings and loan associations, consumer
and industrial finance companies, securities brokerage companies, real
estate-related companies, leasing companies, and a variety of firms in
all segments of the insurance industry such as multi-line, property
and casualty, and life insurance.
The financial services sector is currently undergoing relatively rapid
change as existing distinctions between financial service segments
become less clear. For instance, recent business combinations have
included insurance, finance, and securities brokerage under single
ownership. Some primarily retail corporations have expanded into
securities and insurance industries. Moreover, the federal laws
generally separating commercial and investment banking are currently
being studied by Congress.
Banks, savings and loan associations, and finance 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. The
profitability of these groups is largely dependent on the availability
and cost of capital funds, and can fluctuate significantly when
interest rates change. In addition, general economic conditions are
important to the operations of these concerns, with exposure to credit
losses resulting from possible financial difficulties of borrowers
potentially having an adverse effect. Insurance companies are likewise
subject to substantial governmental regulation, predominantly at the
state level, and may be subject to severe price competition.
Securities and Exchange Commission (SEC) regulations provide that the
fund may not invest more than 5% of its total assets in the securities
of any one company that derives more than 15% of its revenues from
brokerage or investment management activities. These companies as well
as those deriving more than 15% of profits from brokerage and
investment management activities are considered to be "principally
engaged" in the business activities of the financial services sector.
HEALTH CARE FUND: 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 include
pharmaceutical companies; firms that design, manufacture, sell, or
supply medical, dental, and optical products, hardware or services;
companies involved in biotechnology, medical diagnostic, and
biochemical research and development, as well as companies involved in
the operation of health care facilities. Many of these companies are
subject to government regulation of their products and services, a
factor which could have a significant and possibly unfavorable effect
on the price and availability of such products or services.
Furthermore, the types of products or services produced or provided by
these companies may become obsolete quickly.
NATURAL RESOURCES FUND: COMPANIES THAT OWN OR DEVELOP NATURAL
RESOURCES, OR SUPPLY GOODS AND SERVICES TO SUCH COMPANIES, OR IN
PHYSICAL COMMODITIES. 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. Exploring, mining, refining, processing,
transporting, and fabricating are examples of activities of companies
in the natural resources sector.
Precious metals, at times, have been subject to substantial price
fluctuations over short periods of time and may be affected by
unpredictable international monetary and political policies such as
currency devaluations or revaluations, economic and social conditions
within a country, trade imbalances, or trade or currency restrictions
between countries. The fund may also consider instruments and
securities indexed to the price of gold or other precious metals as an
alternative to direct investments in precious metals.
As a practical matter, investments in physical commodities can present
concerns such as delivery, storage and maintenance, possible
illiquidity and the unavailability of accurate market valuations. FMR,
in addressing these concerns, currently intends to purchase only
readily marketable precious metals and to deliver and store them with
a qualified U.S. bank. Investments in bullion earn no investment
income and may involve higher custody and transaction costs than
investments in securities.
For the fund to qualify as a regulated investment company under
current federal tax law, gains from selling precious metals may not
exceed 10% of the fund's gross income for its taxable year. This tax
treatment could cause the fund to hold or sell precious metals or
securities when it would not otherwise do so.
TECHNOLOGY FUND: COMPANIES WHICH HAVE, OR WILL DEVELOP, PRODUCTS,
PROCESSES OR SERVICES THAT WILL PROVIDE OR WILL BENEFIT SIGNIFICANTLY
FROM TECHNOLOGICAL ADVANCES AND IMPROVEMENTS. These 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 continue to expand, these companies
could become increasingly sensitive to short product cycles and
aggressive pricing.
UTILITIES GROWTH FUND: COMPANIES IN THE PUBLIC UTILITIES INDUSTRY AND
COMPANIES DERIVING A MAJORITY OF THEIR REVENUES FROM THEIR PUBLIC
UTILITY OPERATIONS. The fund may invest in companies engaged in the
manufacture, production, generation, transmission and sale of gas and
electric energy; water supply, waste disposal and sewerage and
sanitary service companies; and companies engaged in the
communications field, including telephone, telegraph, satellite,
microwave and the provision of other communication facilities for the
public benefit (not including companies involved in public
broadcasting). Public utility stocks have traditionally produced
above-average dividend income, but the fund's investments are made
based on capital appreciation 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. This policy is non-fundamental and may be changed by the
Board of Trustees.
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. FMR may not buy all of these instruments or use all of these
techniques unless it believes that doing so will help a fund achieve
its goal.
AFFILIATED BANK TRANSACTIONS. A fund may engage in transactions with
financial institutions that are, or may be considered to be,
"affiliated persons" of the fund under the 1940 Act. These
transactions may involve repurchase agreements with custodian banks;
short-term obligations of, and repurchase agreements with, the 50
largest U.S. banks (measured by deposits); municipal securities; U.S.
Government securities with affiliated financial institutions that are
primary dealers in these securities; short-term currency transactions;
and short-term borrowings. In accordance with exemptive orders issued
by the SEC, the Board of Trustees has established and periodically
reviews procedures applicable to transactions involving affiliated
financial institutions.
CLOSED-END INVESTMENT COMPANIES are investment companies that issue a
fixed number of shares which trade on a stock exchange or
over-the-counter. Closed-end investment companies are professionally
managed and may invest in any type of security. Shares of closed-end
investment companies may trade at a premium or a discount to their net
asset value. A fund may purchase shares of closed-end investment
companies to facilitate investment in certain foreign countries.
CONVERTIBLE SECURITIES are bonds, debentures, notes, preferred stocks
or other securities that may be converted or exchanged (by the holder
or by the issuer) into shares of the underlying common stock (or cash
or securities of equivalent value) at a stated exchange ratio. A
convertible security may also be called for redemption or conversion
by the issuer after a particular date and under certain circumstances
(including a specified price) established upon issue. If a convertible
security held by a fund is called for redemption or conversion, the
fund could be required to tender it for redemption, convert it into
the underlying common stock, or sell it to a third party.
Convertible securities generally have less potential for gain or loss
than common stocks. Convertible securities generally provide yields
higher than the underlying common stocks, but generally lower than
comparable non-convertible securities. Because of this higher yield,
convertible securities generally sell at prices above their
"conversion value," which is the current market value of the stock to
be received upon conversion. The difference between this conversion
value and the price of convertible securities will vary over time
depending on changes in the value of the underlying common stocks and
interest rates. When the underlying common stocks decline in value,
convertible securities will tend not to decline to the same extent
because of the interest or dividend payments and the repayment of
principal at maturity for certain types of convertible securities.
However, securities that are convertible other than at the option of
the holder generally do not limit the potential for loss to the same
extent as securities convertible at the option of the holder. When the
underlying common stocks rise in value, the value of convertible
securities may also be expected to increase. At the same time,
however, the difference between the market value of convertible
securities and their conversion value will narrow, which means that
the value of convertible securities will generally not increase to the
same extent as the value of the underlying common stocks. Because
convertible securities may also be interest-rate sensitive, their
value may increase as interest rates fall and decrease as interest
rates rise. Convertible securities are also subject to credit risk,
and are often lower-quality securities.
EXPOSURE TO FOREIGN MARKETS. Foreign securities, foreign currencies,
and securities issued by U.S. entities with substantial foreign
operations may involve significant risks in addition to the risks
inherent in U.S. investments.
Foreign investments involve risks relating to local political,
economic, regulatory, or social instability, military action or
unrest, or adverse diplomatic developments, and may be affected by
actions of foreign governments adverse to the interests of U.S.
investors. Such actions may include expropriation or nationalization
of assets, confiscatory taxation, restrictions on U.S. investment or
on the ability to repatriate assets or convert currency into U.S.
dollars, or other government intervention. There is no assurance that
FMR will be able to anticipate these potential events or counter their
effects. In addition, the value of securities denominated in foreign
currencies and of dividends and interest paid with respect to such
securities will fluctuate based on the relative strength of the U.S.
dollar.
It is anticipated that in most cases the best available market for
foreign securities will be on an exchange or in over-the-counter (OTC)
markets located outside of the United States. Foreign stock markets,
while growing in volume and sophistication, are generally not as
developed as those in the United States, and securities of some
foreign issuers may be less liquid and more volatile than securities
of comparable U.S. issuers. Foreign security trading, settlement and
custodial practices (including those involving securities settlement
where fund assets may be released prior to receipt of payment) are
often less developed than those in U.S. markets, and may result in
increased risk or substantial delays in the event of a failed trade or
the insolvency of, or breach of duty by, a foreign broker-dealer,
securities depository or foreign subcustodian. In addition, the costs
associated with foreign investments, including withholding taxes,
brokerage commissions and custodial costs, are generally higher than
with U.S. investments.
Foreign markets may offer less protection to investors than U.S.
markets. Foreign issuers are generally not bound by uniform
accounting, auditing, and financial reporting requirements and
standards of practice comparable to those applicable to U.S. issuers.
Adequate public information on foreign issuers may not be available,
and it may be difficult to secure dividends and information regarding
corporate actions on a timely basis. In general, there is less overall
governmental supervision and regulation of securities exchanges,
brokers, and listed companies than in the United States. OTC markets
tend to be less regulated than stock exchange markets and, in certain
countries, may be totally unregulated. Regulatory enforcement may be
influenced by economic or political concerns, and investors may have
difficulty enforcing their legal rights in foreign countries.
Some foreign securities impose restrictions on transfer within the
United States or to U.S. persons. Although securities subject to such
transfer restrictions may be marketable abroad, they may be less
liquid than foreign securities of the same class that are not subject
to such restrictions.
American Depositary Receipts (ADRs) as well as other "hybrid" forms of
ADRs, including European Depositary Receipts (EDRs) and Global
Depositary Receipts (GDRs), are certificates evidencing ownership of
shares of a foreign issuer. These certificates are issued by
depository banks and generally trade on an established market in the
United States or elsewhere. The underlying shares are held in trust by
a custodian bank or similar financial institution in the issuer's home
country. The depository bank may not have physical custody of the
underlying securities at all times and may charge fees for various
services, including forwarding dividends and interest and corporate
actions. ADRs are alternatives to directly purchasing the underlying
foreign securities in their national markets and currencies. However,
ADRs continue to be subject to many of the risks associated with
investing directly in foreign securities. These risks include foreign
exchange risk as well as the political and economic risks of the
underlying issuer's country.
The risks of foreign investing may be magnified for investments in
emerging markets. Security prices in emerging markets can be
significantly more volatile than those in more developed markets,
reflecting the greater uncertainties of investing in less established
markets and economies. In particular, countries with emerging markets
may have relatively unstable governments, may present the risks of
nationalization of businesses, restrictions on foreign ownership and
prohibitions on the repatriation of assets, and may have less
protection of property rights than more developed countries. The
economies of countries with emerging markets may be based on only a
few industries, may be highly vulnerable to changes in local or global
trade conditions, and may suffer from extreme and volatile debt
burdens or inflation rates. Local securities markets may trade a small
number of securities and may be unable to respond effectively to
increases in trading volume, potentially making prompt liquidation of
holdings difficult or impossible at times.
FOREIGN CURRENCY TRANSACTIONS. A fund may conduct foreign currency
transactions on a spot (i.e., cash) or forward basis (i.e., by
entering into forward contracts to purchase or sell foreign
currencies). Although foreign exchange dealers generally do not charge
a fee for such conversions, they do realize a profit based on the
difference between the prices at which they are buying and selling
various currencies. Thus, a dealer may offer to sell a foreign
currency at one rate, while offering a lesser rate of exchange should
the counterparty desire to resell that currency to the dealer. Forward
contracts are customized transactions that require a specific amount
of a currency to be delivered at a specific exchange rate on a
specific date or range of dates in the future. Forward contracts are
generally traded in an interbank market directly between currency
traders (usually large commercial banks) and their customers. The
parties to a forward contract may agree to offset or terminate the
contract before its maturity, or may hold the contract to maturity and
complete the contemplated currenc y exchange.
The following discussion summarizes the principal currency management
strategies involving forward contracts that could be used by a fund. A
fund may also use swap agreements, indexed securities, and options and
futures contracts relating to foreign currencies for the same
purposes.
A "settlement hedge" or "transaction hedge" is designed to protect a
fund against an adverse change in foreign currency values between the
date a security is purchased or sold and the date on which payment is
made or received. Entering into a forward contract for the purchase or
sale of the amount of foreign currency involved in an underlying
security transaction for a fixed amount of U.S. dollars "locks in" the
U.S. dollar price of the security. Forward contracts to purchase or
sell a foreign currency may also be used by a fund in anticipation of
future purchases or sales of securities denominated in foreign
currency, even if the specific investments have not yet been selected
by FMR.
A fund may also use forward contracts to hedge against a decline in
the value of existing investments denominated in foreign currency. For
example, if a fund owned securities denominated in pounds sterling, it
could enter into a forward contract to sell pounds sterling in return
for U.S. dollars to hedge against possible declines in the pound's
value. Such a hedge, sometimes referred to as a "position hedge,"
would tend to offset both positive and negative currency fluctuations,
but would not offset changes in security values caused by other
factors. A fund could also hedge the position by selling another
currency expected to perform similarly to the pound sterling. This
type of hedge, sometimes referred to as a "proxy hedge," could offer
advantages in terms of cost, yield, or efficiency, but generally would
not hedge currency exposure as effectively as a direct hedge into U.S.
dollars. Proxy hedges may result in losses if the currency used to
hedge does not perform similarly to the currency in which the hedged
securities are denominated.
A fund may enter into forward contracts to shift its investment
exposure from one currency into another. This may include shifting
exposure from U.S. dollars to a foreign currency, or from one foreign
currency to another foreign currency. This type of strategy, sometimes
known as a "cross-hedge," will tend to reduce or eliminate exposure to
the currency that is sold, and increase exposure to the currency that
is purchased, much as if a fund had sold a security denominated in one
currency and purchased an equivalent security denominated in another.
Cross-hedges protect against losses resulting from a decline in the
hedged currency, but will cause a fund to assume the risk of
fluctuations in the value of the currency it purchases.
Under certain conditions, SEC guidelines require mutual funds to set
aside appropriate liquid assets in a segregated custodial account to
cover currency forward contracts. As required by SEC guidelines, a
fund will segregate assets to cover currency forward contracts, if
any, whose purpose is essentially speculative. A fund will not
segregate assets to cover forward contracts entered into for hedging
purposes, including settlement hedges, position hedges, and proxy
hedges.
Successful use of currency management strategies will depend on FMR's
skill in analyzing currency values. Currency management strategies may
substantially change a fund's investment exposure to changes in
currency exchange rates and could result in losses to a fund if
currencies do not perform as FMR anticipates. For example, if a
currency's value rose at a time when FMR had hedged a fund by selling
that currency in exchange for dollars, a fund would not participate in
the currency's appreciation. If FMR hedges currency exposure through
proxy hedges, a fund could realize currency losses from both the hedge
and the security position if the two currencies do not move in tandem.
Similarly, if FMR increases a fund's exposure to a foreign currency
and that currency's value declines, a fund will realize a loss. There
is no assurance that FMR's use of currency management strategies will
be advantageous to a fund or that it will hedge at appropriate times.
FUNDS' RIGHTS AS SHAREHOLDERS. The funds do not intend to
direct or administer the day-to-day operations of any company. A fund,
however, may exercise its rights as a shareholder and may communicate
its views on important matters of policy to management, the Board of
Directors, and shareholders of a company when FMR determines that such
matters could have a significant effect on the value of the fund's
investment in the company. The activities in which a fund may engage,
either individually or in conjunction with others, may include, among
others, supporting or opposing proposed changes in a company's
corporate structure or business activities; seeking changes in a
company's directors or management; seeking changes in a company's
direction or policies; seeking the sale or reorganization of the
company or a portion of its assets; or supporting or opposing
third-party takeover efforts. This area of corporate activity is
increasingly prone to litigation and it is possible that a fund could
be involved in lawsuits related to such activities. FMR will monitor
such activities with a view to mitigating, to the extent possible, the
risk of litigation against a fund and the risk of actual liability if
a fund is involved in litigation. No guarantee can be made, however,
that litigation against a fund will not be undertaken or liabilities
incurred.
FUTURES AND OPTIONS. The following paragraphs pertain to futures and
options: Asset Coverage for Futures and Options Positions, Combined
Positions, Correlation of Price Changes, Futures Contracts, Futures
Margin Payments, Limitations on Futures and Options Transactions,
Liquidity of Options and Futures Contracts, Options and Futures
Relating to Foreign Currencies, OTC Options, Purchasing Put and Call
Options, and Writing Put and Call Options.
ASSET COVERAGE FOR FUTURES AND OPTIONS POSITIONS. The funds will
comply with guidelines established by the SEC with respect to coverage
of options and futures strategies by mutual funds and, if the
guidelines so require, will set aside appropriate liquid assets in a
segregated custodial account in the amount prescribed. Securities held
in a segregated account cannot be sold while the futures or option
strategy is outstanding, unless they are replaced with other suitable
assets. As a result, there is a possibility that segregation of a
large percentage of a fund's assets could impede portfolio management
or the fund's ability to meet redemption requests or other current
obligations.
COMBINED POSITIONS involve purchasing and writing options in
combination with each other, or in combination with futures or forward
contracts, to adjust the risk and return characteristics of the
overall position. For example, purchasing a put option and writing a
call option on the same underlying instrument would construct a
combined position whose risk and return characteristics are similar to
selling a futures contract. Another possible combined position would
involve writing a call option at one strike price and buying a call
option at a lower price, to reduce the risk of the written call option
in the event of a substantial price increase. Because combined options
positions involve multiple trades, they result in higher transaction
costs and may be more difficult to open and close out.
CORRELATION OF PRICE CHANGES. Because there are a limited number of
types of exchange-traded options and futures contracts, it is likely
that the standardized contracts available will not match a fund's
current or anticipated investments exactly. A fund may invest in
options and futures contracts based on securities with different
issuers, maturities, or other characteristics from the securities in
which the fund typically invests, which involves a risk that the
options or futures position will not track the performance of the
fund's other investments.
Options and futures prices can also diverge from the prices of their
underlying instruments, even if the underlying instruments match a
fund's investments well. Options and futures prices are affected by
such factors as current and anticipated short-term interest rates,
changes in volatility of the underlying instrument, and the time
remaining until expiration of the contract, which may not affect
security prices the same way. Imperfect correlation may also result
from differing levels of demand in the options and futures markets and
the securities markets, from structural differences in how options and
futures and securities are traded, or from imposition of daily price
fluctuation limits or trading halts. A fund may purchase or sell
options and futures contracts with a greater or lesser value than the
securities it wishes to hedge or intends to purchase in order to
attempt to compensate for differences in volatility between the
contract and the securities, although this may not be successful in
all cases. If price changes in a fund's options or futures positions
are poorly correlated with its other investments, the positions may
fail to produce anticipated gains or result in losses that are not
offset by gains in other investments.
FUTURES CONTRACTS. In purchasing a futures contract, the buyer agrees
to purchase a specified underlying instrument at a specified future
date. In selling a futures contract, the seller agrees to sell a
specified underlying instrument at a specified future date. The price
at which the purchase and sale will take place is fixed when the buyer
and seller enter into the contract. Some currently available futures
contracts are based on specific securities, such as U.S. Treasury
bonds or notes, and some are based on indices of securities prices,
such as the Standard & Poor's 500 Index (S&P 500(registered
trademark)). Futures can be held until their delivery dates, or can be
closed out before then if a liquid secondary market is available.
The value of a futures contract tends to increase and decrease in
tandem with the value of its underlying instrument. Therefore,
purchasing futures contracts will tend to increase a fund's exposure
to positive and negative price fluctuations in the underlying
instrument, much as if it had purchased the underlying instrument
directly. When a fund sells a futures contract, by contrast, the value
of its futures position will tend to move in a direction contrary to
the market. Selling futures contracts, therefore, will tend to offset
both positive and negative market price changes, much as if the
underlying instrument had been sold.
FUTURES MARGIN PAYMENTS. The purchaser or seller of a futures contract
is not required to deliver or pay for the underlying instrument unless
the contract is held until the delivery date. However, both the
purchaser and seller are required to deposit "initial margin" with a
futures broker, known as a futures commission merchant (FCM), when the
contract is entered into. Initial margin deposits are typically equal
to a percentage of the contract's value. If the value of either
party's position declines, that party will be required to make
additional "variation margin" payments to settle the change in value
on a daily basis. The party that has a gain may be entitled to receive
all or a portion of this amount. Initial and variation margin payments
do not constitute purchasing securities on margin for purposes of a
fund's investment limitations. In the event of the bankruptcy of an
FCM that holds margin on behalf of a fund, the fund may be entitled to
return of margin owed to it only in proportion to the amount received
by the FCM's other customers, potentially resulting in losses to the
fund.
LIMITATIONS ON FUTURES AND OPTIONS TRANSACTIONS. Each fund has filed a
notice of eligibility for exclusion from the definition of the term
"commodity pool operator" with the Commodity Futures Trading
Commission (CFTC) and the National Futures Association, which regulate
trading in the futures markets. The funds intend to comply with Rule
4.5 under the Commodity Exchange Act, which limits the extent to which
the funds can commit assets to initial margin deposits and option
premiums.
In addition, each fund will not: (a) sell futures contracts, purchase
put options, or write call options if, as a result, more than 25% of
the fund's total assets would be hedged with futures and options under
normal conditions; (b) purchase futures contracts or write put options
if, as a result, the fund's total obligations upon settlement or
exercise of purchased futures contracts and written put options would
exceed 25% of its total assets under normal conditions; or (c)
purchase call options if, as a result, the current value of option
premiums for call options purchased by the fund would exceed 5% of the
fund's total assets. These limitations do not apply to options
attached to or acquired or traded together with their underlying
securities, and do not apply to securities that incorporate features
similar to options.
The above limitations on the funds' investments in futures contracts
and options, and the funds' policies regarding futures contracts and
options discussed elsewhere in this SAI, may be changed as regulatory
agencies permit.
LIQUIDITY OF OPTIONS AND FUTURES CONTRACTS. There is no assurance a
liquid secondary market will exist for any particular options or
futures contract at any particular time. Options may have relatively
low trading volume and liquidity if their strike prices are not close
to the underlying instrument's current price. In addition, exchanges
may establish daily price fluctuation limits for options and futures
contracts, and may halt trading if a contract's price moves upward or
downward more than the limit in a given day. On volatile trading days
when the price fluctuation limit is reached or a trading halt is
imposed, it may be impossible to enter into new positions or close out
existing positions. If the secondary market for a contract is not
liquid because of price fluctuation limits or otherwise, it could
prevent prompt liquidation of unfavorable positions, and potentially
could require a fund to continue to hold a position until delivery or
expiration regardless of changes in its value. As a result, a fund's
access to other assets held to cover its options or futures positions
could also be impaired.
OPTIONS AND FUTURES RELATING TO FOREIGN CURRENCIES. Currency futures
contracts are similar to forward currency exchange contracts, except
that they are traded on exchanges (and have margin requirements) and
are standardized as to contract size and delivery date. Most currency
futures contracts call for payment or delivery in U.S. dollars. The
underlying instrument of a currency option may be a foreign currency,
which generally is purchased or delivered in exchange for U.S.
dollars, or may be a futures contract. The purchaser of a currency
call obtains the right to purchase the underlying currency, and the
purchaser of a currency put obtains the right to sell the underlying
currency.
The uses and risks of currency options and futures are similar to
options and futures relating to securities or indices, as discussed
above. A fund may purchase and sell currency futures and may purchase
and write currency options to increase or decrease its exposure to
different foreign currencies. Currency options may also be purchased
or written in conjunction with each other or with currency futures or
forward contracts. Currency futures and options values can be expected
to correlate with exchange rates, but may not reflect other factors
that affect the value of a fund's investments. A currency hedge, for
example, should protect a Yen-denominated security from a decline in
the Yen, but will not protect a fund against a price decline resulting
from deterioration in the issuer's creditworthiness. Because the value
of a fund's foreign-denominated investments changes in response to
many factors other than exchange rates, it may not be possible to
match the amount of currency options and futures to the value of the
fund's investments exactly over time.
OTC OPTIONS. Unlike exchange-traded options, which are standardized
with respect to the underlying instrument, expiration date, contract
size, and strike price, the terms of over-the-counter (OTC) options
(options not traded on exchanges) generally are established through
negotiation with the other party to the option contract. While this
type of arrangement allows the purchaser or writer greater flexibility
to tailor an option to its needs, OTC options generally involve
greater credit risk than exchange-traded options, which are guaranteed
by the clearing organization of the exchanges where they are traded.
PURCHASING PUT AND CALL OPTIONS. By purchasing a put option, the
purchaser obtains the right (but not the obligation) to sell the
option's underlying instrument at a fixed strike price. In return for
this right, the purchaser pays the current market price for the option
(known as the option premium). Options have various types of
underlying instruments, including specific securities, indices of
securities prices, and futures contracts. The purchaser may terminate
its position in a put option by allowing it to expire or by exercising
the option. If the option is allowed to expire, the purchaser will
lose the entire premium. If the option is exercised, the purchaser
completes the sale of the underlying instrument at the strike price. A
purchaser may also terminate a put option position by closing it out
in the secondary market at its current price, if a liquid secondary
market exists.
The buyer of a typical put option can expect to realize a gain if
security prices fall substantially. However, if the underlying
instrument's price does not fall enough to offset the cost of
purchasing the option, a put buyer can expect to suffer a loss
(limited to the amount of the premium, plus related transaction
costs).
The features of call options are essentially the same as those of put
options, except that the purchaser of a call option obtains the right
to purchase, rather than sell, the underlying instrument at the
option's strike price. A call buyer typically attempts to participate
in potential price increases of the underlying instrument with risk
limited to the cost of the option if security prices fall. At the same
time, the buyer can expect to suffer a loss if security prices do not
rise sufficiently to offset the cost of the option.
WRITING PUT AND CALL OPTIONS. The writer of a put or call option takes
the opposite side of the transaction from the option's purchaser. In
return for receipt of the premium, the writer assumes the obligation
to pay the strike price for the option's underlying instrument if the
other party to the option chooses to exercise it. The writer may seek
to terminate a position in a put option before exercise by closing out
the option in the secondary market at its current price. If the
secondary market is not liquid for a put option, however, the writer
must continue to be prepared to pay the strike price while the option
is outstanding, regardless of price changes, and must continue to set
aside assets to cover its position. When writing an option on a
futures contract, a fund will be required to make margin payments to
an FCM as described above for futures contracts.
If security prices rise, a put writer would generally expect to
profit, although its gain would be limited to the amount of the
premium it received. If security prices remain the same over time, it
is likely that the writer will also profit, because it should be able
to close out the option at a lower price. If security prices fall, the
put writer would expect to suffer a loss. This loss should be less
than the loss from purchasing the underlying instrument directly,
however, because the premium received for writing the option should
mitigate the effects of the decline.
Writing a call option obligates the writer to sell or deliver the
option's underlying instrument, in return for the strike price, upon
exercise of the option. The characteristics of writing call options
are similar to those of writing put options, except that writing calls
generally is a profitable strategy if prices remain the same or fall.
Through receipt of the option premium, a call writer mitigates the
effects of a price decline. At the same time, because a call writer
must be prepared to deliver the underlying instrument in return for
the strike price, even if its current value is greater, a call writer
gives up some ability to participate in security price increases.
ILLIQUID INVESTMENTS are investments that cannot be sold or disposed
of in the ordinary course of business at approximately the prices at
which they are valued. Under the supervision of the Board of Trustees,
FMR determines the liquidity of a fund's investments and, through
reports from FMR, the Board monitors investments in illiquid
instruments. In determining the liquidity of a fund's investments, FMR
may consider various factors, including (1) the frequency of trades
and quotations, (2) the number of dealers and prospective purchasers
in the marketplace, (3) dealer undertakings to make a market, (4) the
nature of the security (including any demand or tender features), and
(5) the nature of the marketplace for trades (including the ability to
assign or offset the fund's rights and obligations relating to the
investment).
Investments currently considered by FMR to be illiquid include
repurchase agreements not entitling the holder to repayment of
principal and payment of interest within seven days, over-the-counter
options, and non-government stripped fixed-rate mortgage-backed
securities. Also, FMR may determine some restricted securities,
government-stripped fixed-rate mortgage-backed securities, loans and
other direct debt instruments, emerging market securities, and swap
agreements to be illiquid. However, with respect to over-the-counter
options a fund writes, all or a portion of the value of the underlying
instrument may be illiquid depending on the assets held to cover the
option and the nature and terms of any agreement the fund may have to
close out the option before expiration.
In the absence of market quotations, illiquid investments are priced
at fair value as determined in good faith by a committee appointed by
the Board of Trustees.
INDEXED SECURITIES are instruments whose prices are indexed to the
prices of other securities, securities indices, currencies, precious
metals or other commodities, or other financial indicators. Indexed
securities typically, but not always, are debt securities or deposits
whose value at maturity or coupon rate is determined by reference to a
specific instrument or statistic.
Gold-indexed securities typically provide for a maturity value that
depends on the price of gold, resulting in a security whose price
tends to rise and fall together with gold prices. Currency-indexed
securities typically are short-term to intermediate-term debt
securities whose maturity values or interest rates are determined by
reference to the values of one or more specified foreign currencies,
and may offer higher yields than U.S. dollar-denominated securities.
Currency-indexed securities may be positively or negatively indexed;
that is, their maturity value may increase when the specified currency
value increases, resulting in a security that performs similarly to a
foreign-denominated instrument, or their maturity value may decline
when foreign currencies increase, resulting in a security whose price
characteristics are similar to a put on the underlying currency.
Currency-indexed securities may also have prices that depend on the
values of a number of different foreign currencies relative to each
other.
The performance of indexed securities depends to a great extent on the
performance of the security, currency, or other instrument to which
they are indexed, and may also be influenced by interest rate changes
in the United States and abroad. Indexed securities may be more
volatile than the underlying instruments. Indexed securities are also
subject to the credit risks associated with the issuer of the
security, and their values may decline substantially if the issuer's
creditworthiness deteriorates. Recent issuers of indexed securities
have included banks, corporations, and certain U.S. Government
agencies.
Natural Resources may consider purchasing securities indexed to the
price of precious metals as an alternative to direct investment in
precious metals. The fund will only buy precious metals-indexed
securities when FMR is satisfied with the creditworthiness of the
issuers liable for payment. The securities generally will earn a
nominal rate of interest while held by the fund, and may have
maturities of one year or more. In addition, the securities may be
subject to being put by the fund to the issuer, with payment to be
received on no more than seven days' notice. The put feature would
ensure the liquidity of the notes in the absence of an active
secondary market.
INTERFUND BORROWING AND LENDING PROGRAM. Pursuant to an exemptive
order issued by the SEC, a fund may lend money to, and borrow money
from, other funds advised by FMR or its affiliates. A fund will lend
through the program only when the returns are higher than those
available from an investment in repurchase agreements, and will borrow
through the program only when the costs are equal to or lower than the
cost of bank loans. Interfund loans and borrowings normally
extend overnight, but can have a maximum duration of seven days. Loans
may be called on one day's notice. A fund may have to borrow from a
bank at a higher interest rate if an interfund loan is called or not
renewed. Any delay in repayment to a lending fund could result in a
lost investment opportunity or additional borrowing costs.
LOANS AND OTHER DIRECT DEBT INSTRUMENTS. Direct debt instruments are
interests in amounts owed by a corporate, governmental, or other
borrower to lenders or lending syndicates (loans and loan
participations), to suppliers of goods or services (trade claims or
other receivables), or to other parties. Direct debt instruments
involve a risk of loss in case of default or insolvency of the
borrower and may offer less legal protection to the purchaser in the
event of fraud or misrepresentation. In addition, loan participations
involve a risk of insolvency of the lending bank or other financial
intermediary. Direct debt instruments may also include standby
financing commitments that obligate the purchaser to supply additional
cash to the borrower on demand.
LOWER-QUALITY DEBT SECURITIES. Lower-quality debt securities have poor
protection with respect to the payment of interest and repayment of
principal, or may be in default. These securities are often considered
to be speculative and involve greater risk of loss or price changes
due to changes in the issuer's capacity to pay. The market prices of
lower-quality debt securities may fluctuate more than those of
higher-quality debt securities and may decline significantly in
periods of general economic difficulty, which may follow periods of
rising interest rates.
While the market for high-yield corporate debt securities has been in
existence for many years and has weathered previous economic
downturns, the 1980s brought a dramatic increase in the use of such
securities to fund highly leveraged corporate acquisitions and
restructurings. Past experience may not provide an accurate indication
of the future performance of the high-yield bond market, especially
during periods of economic recession.
The market for lower-quality debt securities may be thinner and less
active than that for higher-quality debt securities, which can
adversely affect the prices at which the former are sold. If market
quotations are not available, lower-quality debt securities will be
valued in accordance with procedures established by the Board of
Trustees, including the use of outside pricing services. Judgment
plays a greater role in valuing high-yield debt securities than is the
case for securities for which more external sources for quotations and
last-sale information are available. Adverse publicity and changing
investor perceptions may affect the liquidity of lower-quality debt
securities and the ability of outside pricing services to value
lower-quality debt securities.
Since the risk of default is higher for lower-quality debt securities,
FMR's research and credit analysis are an especially important part of
managing securities of this type. FMR will attempt to identify those
issuers of high-yielding securities whose financial condition is
adequate to meet future obligations, has improved, or is expected to
improve in the future. FMR's analysis focuses on relative values based
on such factors as interest or dividend coverage, asset coverage,
earnings prospects, and the experience and managerial strength of the
issuer.
A fund may choose, at its expense or in conjunction with others, to
pursue litigation or otherwise to exercise its rights as a security
holder to seek to protect the interests of security holders if it
determines this to be in the best interest of the fund's shareholders.
REAL ESTATE INVESTMENT TRUSTS. Equity real estate investment trusts
own real estate properties, while mortgage real estate investment
trusts make construction, development, and long-term mortgage loans.
Their value may be affected by changes in the value of the underlying
property of the trusts, the creditworthiness of the issuer, property
taxes, interest rates, and tax and regulatory requirements, such as
those relating to the environment. Both types of trusts are dependent
upon management skill, are not diversified, and are subject to heavy
cash flow dependency, defaults by borrowers, self-liquidation, and the
possibility of failing to qualify for tax-free status of income under
the Internal Revenue Code and failing to maintain exemption from the
1940 Act.
REPURCHASE AGREEMENTS. In a repurchase agreement, a fund purchases a
security and simultaneously commits to sell that security back to the
original seller at an agreed-upon price. The resale price reflects the
purchase price plus an agreed-upon incremental amount which is
unrelated to the coupon rate or maturity of the purchased security. As
protection against the risk that the original seller will not fulfill
its obligation, the securities are held in a separate account at a
bank, marked-to-market daily, and maintained at a value at least equal
to the sale price plus the accrued incremental amount. While it does
not presently appear possible to eliminate all risks from these
transactions (particularly the possibility that the value of the
underlying security will be less than the resale price, as well as
delays and costs to a fund in connection with bankruptcy proceedings),
the funds will engage in repurchase agreement transactions with
parties whose creditworthiness has been reviewed and found
satisfactory by FMR.
RESTRICTED SECURITIES generally can be sold in privately negotiated
transactions, pursuant to an exemption from registration under the
Securities Act of 1933, or in a registered public offering. Where
registration is required, a fund may be obligated to pay all or part
of the registration expense and a considerable period may elapse
between the time it decides to seek registration and the time it may
be permitted to sell a security under an effective registration
statement. If, during such a period, adverse market conditions were to
develop, a fund might obtain a less favorable price than prevailed
when it decided to seek registration of the security.
REVERSE REPURCHASE AGREEMENTS. In a reverse repurchase agreement, a
fund sells a security to another party, such as a bank or
broker-dealer, in return for cash and agrees to repurchase that
security at an agreed-upon price and time. While a reverse repurchase
agreement is outstanding, a fund will maintain appropriate liquid
assets in a segregated custodial account to cover its obligation under
the agreement. The funds will enter into reverse repurchase agreements
with parties whose creditworthiness has been reviewed and found
satisfactory by FMR. Such transactions may increase fluctuations in
the market value of fund assets and may be viewed as a form of
leverage.
SECURITIES LENDING. A fund may lend securities to parties such as
broker-dealers or institutional investors, including Fidelity
Brokerage Services, Inc. (FBSI). FBSI is a member of the New York
Stock Exchange and a subsidiary of FMR Corp.
Securities lending allows a fund to retain ownership of the securities
loaned and, at the same time, to earn additional income. Since there
may be delays in the recovery of loaned securities, or even a loss of
rights in collateral supplied should the borrower fail financially,
loans will be made only to parties deemed by FMR to be of good
standing. Furthermore, they will only be made if, in FMR's judgment,
the consideration to be earned from such loans would justify the risk.
FMR understands that it is the current view of the SEC Staff that a
fund may engage in loan transactions only under the following
conditions: (1) the fund must receive 100% collateral in the form of
cash or cash equivalents (e.g., U.S. Treasury bills or notes) from the
borrower; (2) the borrower must increase the collateral whenever the
market value of the securities loaned (determined on a daily basis)
rises above the value of the collateral; (3) after giving notice, the
fund must be able to terminate the loan at any time; (4) the fund must
receive reasonable interest on the loan or a flat fee from the
borrower, as well as amounts equivalent to any dividends, interest, or
other distributions on the securities loaned and to any increase in
market value; (5) the fund may pay only reasonable custodian fees in
connection with the loan; and (6) the Board of Trustees must be able
to vote proxies on the securities loaned, either by terminating the
loan or by entering into an alternative arrangement with the borrower.
Cash received through loan transactions may be invested in other
eligible securities. Investing this cash subjects that investment, as
well as the security loaned, to market forces (i.e., capital
appreciation or depreciation).
SHORT SALES "AGAINST THE BOX." A fund may sell securities short when
it owns or has the right to obtain securities equivalent in kind or
amount to the securities sold short. Such short sales are known as
short sales "against the box." If a fund enters into a short sale
against the box, it will be required to set aside securities
equivalent in kind and amount to the securities sold short (or
securities convertible or exchangeable into such securities) and will
be required to hold such securities while the short sale is
outstanding. The fund will incur transaction costs, including interest
expenses, in connection with opening, maintaining, and closing short
sales against the box.
SWAP AGREEMENTS can be individually negotiated and structured to
include exposure to a variety of different types of investments or
market factors. Depending on their structure, swap agreements may
increase or decrease a fund's exposure to long- or short-term interest
rates (in the United States or abroad), foreign currency values,
mortgage securities, corporate borrowing rates, or other factors such
as security prices or inflation rates. Swap agreements can take many
different forms and are known by a variety of names.
In a typical cap or floor agreement, one party agrees to make payments
only under specified circumstances, usually in return for payment of a
fee by the other party. For example, the buyer of an interest rate cap
obtains the right to receive payments to the extent that a specified
interest rate exceeds an agreed-upon level, while the seller of an
interest rate floor is obligated to make payments to the extent that a
specified interest rate falls below an agreed-upon level. An interest
rate collar combines elements of buying a cap and selling a floor.
Swap agreements will tend to shift a fund's investment exposure from
one type of investment to another. For example, if the fund agreed to
exchange payments in dollars for payments in foreign currency, the
swap agreement would tend to decrease the fund's exposure to U.S.
interest rates and increase its exposure to foreign currency and
interest rates. Caps and floors have an effect similar to buying or
writing options. Depending on how they are used, swap agreements may
increase or decrease the overall volatility of a fund's investments
and its share price.
The most significant factor in the performance of swap agreements is
the change in the specific interest rate, currency, or other factors
that determine the amounts of payments due to and from a fund. If a
swap agreement calls for payments by the fund, the fund must be
prepared to make such payments when due. In addition, if the
counterparty's creditworthiness declined, the value of a swap
agreement would be likely to decline, potentially resulting in losses.
A fund may be able to eliminate its exposure under a swap agreement
either by assignment or other disposition, or by entering into an
offsetting swap agreement with the same party or a similarly
creditworthy party.
A fund will maintain appropriate liquid assets in a segregated
custodial account to cover its current obligations under swap
agreements. If a fund enters into a swap agreement on a net basis, it
will segregate assets with a daily value at least equal to the excess,
if any, of the fund's accrued obligations under the swap agreement
over the accrued amount the fund is entitled to receive under the
agreement. If a fund enters into a swap agreement on other than a net
basis, it will segregate assets with a value equal to the full amount
of the fund's accrued obligations under the agreement.
WARRANTS. Warrants are instruments which entitle the holder to buy an
equity security at a specific price for a specific period of time.
Changes in the value of a warrant do not necessarily correspond to
changes in the value of its underlying security. The price of a
warrant may be more volatile than the price of its underlying
security, and a warrant may offer greater potential for capital
appreciation as well as capital loss.
Warrants do not entitle a holder to dividends or voting rights with
respect to the underlying security and do not represent any rights in
the assets of the issuing company. A warrant ceases to have value if
it is not exercised prior to its expiration date. These factors can
make warrants more speculative than other types of investments.
PORTFOLIO TRANSACTIONS
All orders for the purchase or sale of portfolio securities are placed
on behalf of each fund by FMR pursuant to authority contained in the
management contract. FMR is also responsible for the placement of
transaction orders for other investment companies and accounts for
which it or its affiliates act as investment adviser. In selecting
broker-dealers, subject to applicable limitations of the federal
securities laws, FMR considers various relevant factors, including,
but not limited to: the size and type of the transaction; the nature
and character of the markets for the security to be purchased or sold;
the execution efficiency, settlement capability, and financial
condition of the broker-dealer firm; the broker-dealer's execution
services rendered on a continuing basis; the reasonableness of any
commissions; and, if applicable, arrangements for payment of fund
expenses.
If FMR grants investment management authority to a sub-adviser (see
the section entitled "Management Contracts"), that sub-adviser is
authorized to place orders for the purchase and sale of portfolio
securities, and will do so in accordance with the policies described
above.
Generally, commissions for investments traded on foreign exchanges
will be higher than for investments traded on U.S. exchanges and may
not be subject to negotiation.
Each fund may execute portfolio transactions with broker-dealers who
provide research and execution services to the fund or other accounts
over which FMR or its affiliates exercise investment discretion. Such
services may include advice concerning the value of securities; the
advisability of investing in, purchasing, or selling securities; and
the availability of securities or the purchasers or sellers of
securities. In addition, such broker-dealers may furnish analyses and
reports concerning issuers, industries, securities, economic factors
and trends, portfolio strategy, and performance of accounts; and
effect securities transactions and perform functions incidental
thereto (such as clearance and settlement).
The selection of such broker-dealers for transactions in equity
securities is generally made by FMR (to the extent possible consistent
with execution considerations) in accordance with a ranking of
broker-dealers determined periodically by FMR's investment staff based
upon the quality of research and execution services provided.
For transactions in fixed-income securities, FMR's selection of
broker-dealers is generally based on the availability of a security
and its price and, to a lesser extent, on the overall quality of
execution and other services, including research, provided by the
broker-dealer.
The receipt of research from broker-dealers that execute transactions
on behalf of a fund may be useful to FMR in rendering investment
management services to that fund or its other clients, and conversely,
such research provided by broker-dealers who have executed transaction
orders on behalf of other FMR clients may be useful to FMR in carrying
out its obligations to a fund. The receipt of such research has not
reduced FMR's normal independent research activities; however, it
enables FMR to avoid the additional expenses that could be incurred if
FMR tried to develop comparable information through its own efforts.
Fixed-income securities are generally purchased from an issuer or
underwriter acting as principal for the securities, on a net basis
with no brokerage commission paid. However, the dealer is
compensated by a difference between the security's original purchase
price and the selling price, the so-called "bid-asked spread."
Securities may also be purchased from underwriters at prices that
include underwriting fees.
Subject to applicable limitations of the federal securities laws, a
fund may pay a broker-dealer commissions for agency transactions that
are in excess of the amount of commissions charged by other
broker-dealers in recognition of their research and execution
services. In order to cause a fund to pay such higher commissions, FMR
must determine in good faith that such commissions are reasonable in
relation to the value of the brokerage and research services provided
by such executing broker-dealers, viewed in terms of a particular
transaction or FMR's overall responsibilities to that fund or its
other clients. In reaching this determination, FMR will not attempt to
place a specific dollar value on the brokerage and research services
provided, or to determine what portion of the compensation should be
related to those services.
To the extent permitted by applicable law, FMR is authorized to
allocate portfolio transactions in a manner that takes into account
assistance received in the distribution of shares of the funds or
other Fidelity(registered trademark) funds and to use research
services of the brokerage and other firms that have provided such
assistance. FMR may use research services provided by and place
agency transactions with National Financial Services Corporation
(NFSC) and Fidelity Brokerage Services Japan LLC (FBSJ), indirect
subsidiaries of FMR Corp., if the commissions are fair, reasonable,
and comparable to commissions charged by non-affiliated, qualified
brokerage firms for similar services. Prior to December 9, 1997, FMR
used research services provided by and placed agency transactions with
Fidelity Brokerage Services (FBS), an indirect subsidiary of FMR Corp.
FMR may allocate brokerage transactions to broker-dealers (including
affiliates of FMR) who have entered into arrangements with FMR under
which the broker-dealer allocates a portion of the commissions paid by
a fund toward the reduction of that fund's expenses. The transaction
quality must, however, be comparable to those of other qualified
broker-dealers.
Section 11(a) of the Securities Exchange Act of 1934 prohibits members
of national securities exchanges from executing exchange transactions
for accounts which they or their affiliates manage, unless certain
requirements are satisfied. Pursuant to such requirements, the Board
of Trustees has authorized NFSC to execute portfolio transactions on
national securities exchanges in accordance with approved procedures
and applicable SEC rules.
The Trustees of each fund periodically review FMR's performance of its
responsibilities in connection with the placement of portfolio
transactions on behalf of the fund and review the commissions paid by
the fund over representative periods of time to determine if they are
reasonable in relation to the benefits to the fund.
The following table shows each fund's portfolio turnover rate for the
fiscal periods ended July 31, 1998 and 1997. Because a high turnover
rate increases transaction costs and may increase taxable gains, FMR
carefully weighs the anticipated benefits of short-term investing
against these consequences. Variations in turnover rate may be due to
fluctuating volume of shareholder purchase and redemption orders,
market conditions, or changes in FMR's investment outlook.
FUND 1998 1997*
CONSUMER INDUSTRIES 144 % 203 %
CYCLICAL INDUSTRIES 100 % 155 %
FINANCIAL SERVICES 54 % 26 %
HEALTH CARE 85 % 67 %
NATURAL RESOURCES 97 % 116 %
TECHNOLOGY 348 % 517 %
UTILITIES GROWTH 151 % 13 %
* For the period September 3, 1996 (commencement of operations for all
funds except Natural Resources) to July 31, 1997 and for the period
November 1, 1996 to July 31, 1997 for Natural Resources
The following tables show the brokerage commissions paid by the funds.
Significant changes in brokerage commissions paid by a fund from year
to year may result from changing asset levels throughout the year. A
fund may pay both commissions and spreads in connection with the
placement of portfolio transactions.
The following table shows the total amount of brokerage commissions
paid by each fund.
FISCAL YEAR TOTAL
ENDED AMOUNT PAID
CONSUMER INDUSTRIES JULY
1998 $ 27,151
1997* $ 18,632
CYCLICAL INDUSTRIES JULY
1998 $ 5,532
1997* $ 7,727
FINANCIAL SERVICES JULY
1998 $ 131,749
1997* $ 33,913
HEALTH CARE JULY
1998 $ 175,518
1997* $ 56,012
NATURAL RESOURCES JULY
1998 $ 1,439,851
1997* $ 1,806,488
1996** $ 1,485,040
1995** $ 947,646
TECHNOLOGY JULY
1998 $ 299,227
1997* $ 129,089
UTILITIES GROWTH JULY
1998 $ 62,090
1997* $ 4,033
* For the period September 3, 1996 (commencement of operations)
to July 31, 1997 for all funds except Natural Resources and for the
period November 1, 1996 to July 1, 1997 for Natural Resources
** Fiscal year ended October 31
Of the following tables, the first shows the total amount of brokerage
commissions paid by each fund to NFSC and FBS for the fiscal years
ended July 1998 and 1997 and for the past four fiscal
period s for Natural Resources. The second table shows the
approximate percentage of aggregate brokerage commissions paid by a
fund to NFSC and FBS for transactions involving the approximate
percentage of the aggregate dollar amount of transactions for which
the fund paid brokerage commissions for the fiscal year ended 1998.
NFSC and FBS are paid on a commission basis.
<TABLE>
<CAPTION>
<S> <C> <C> <C>
TOTAL AMOUNT PAID
FISCAL YEAR TO NFSC TO FBS
ENDED
CONSUMER INDUSTRIES JULY
1998 $ 3,349 $ 0
1997* $ 3,290 $ 0
CYCLICAL INDUSTRIES JULY
1998 $ 806 $ 0
1997* $ 629 $ 0
FINANCIAL SERVICES JULY
1998 $ 24,154 $ 0
1997* $ 6,594 $ 0
HEALTH CARE JULY
1998 $ 26,935 $ 492
1997* $ 5,393 $ 372
NATURAL RESOURCES JULY
1998 $ 135,628 $ 0
1997* $ 208,562 $ 8,250
1996** $ 288,669 $ 10,616
1995** $ 243,517 $ 0
TECHNOLOGY JULY
1998 $ 46,656 $ 0
1997* $ 23,843 $ 0
UTILITIES GROWTH JULY
1998 $ 6,775 $ 0
1997* $ 451 $ 0
</TABLE>
* For the period September 3, 1996 (commencement of operations) to
July 31, 1997 for all funds except Natural Resources and for the
period November 1, 1996 to July 1, 1997 for Natural Resources
** Fiscal year ended October 31
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
FISCAL % OF % OF % OF % OF
YEAR AGGREGATE AGGREGATE DOLLAR AGGREGATE AGGREGATE
ENDED 1998 COMMISSIONS AMOUNT OF COMMISSIONS DOLLAR AMOUNT
PAID TO NFSC (DAGGER) TRANSACTIONS PAID TO FBS OF TRANSACTIONS
EFFECTED THROUGH EFFECTED THROUGH
NFSC FBS
CONSUMER INDUSTRIES JULY 12.33 % 17.58 % 0 % 0 %
CYCLICAL INDUSTRIES JULY 14.57 % 20.19 % 0 % 0 %
FINANCIAL SERVICES JULY 18.33 % 25.38 % 0 % 0 %
HEALTH CARE JULY 15.34 % 26.39 % 0.28 % 0.13 %
NATURAL RESOURCES JULY 9.42 % 18.05 % 0 % 0 %
TECHNOLOGY JULY 15.59 % 20.07 % 0 % 0 %
UTILITIES GROWTH JULY 10.91 % 16.77 % 0 % 0 %
</TABLE>
(dagger) The difference between the percentage of aggregate brokerage
commissions paid to, and the percentage of the aggregate dollar amount
of transactions effected through, NFSC and FBS is a result of the low
commission rates charged by NFSC and FBS.
The following table shows the dollar amount of brokerage commissions
paid to firms that provided research services and the approximate
dollar amount of the transactions involved for the fiscal year ended
1998.
<TABLE>
<CAPTION>
<S> <C> <C> <C>
FISCAL YEAR $ AMOUNT OF $ AMOUNT OF
ENDED 1998 COMMISSIONS BROKERAGE
PAID TO FIRMS TRANSACTIONS
THAT PROVIDED INVOLVED*
RESEARCH SERVICES*
CONSUMER INDUSTRIES JULY $ 17,702 $ 15,646,382
CYCLICAL INDUSTRIES JULY $ 3,506 $ 3,283,089
FINANCIAL SERVICES JULY $ 119,248 $ 164,362,570
HEALTH CARE JULY $ 168,074 $ 179,160,876
NATURAL RESOURCES JULY $ 1,333,342 $ 929,069,812
TECHNOLOGY JULY $ 278,328 $ 276,700,123
UTILITIES GROWTH JULY $ 57,052 $ 47,966,846
</TABLE>
* The provision of research services was not necessarily a factor in
the placement of all this business with such firms.
The Trustees of each fund have approved procedures in conformity with
Rule 10f-3 under the 1940 Act whereby a fund may purchase securities
that are offered in underwritings in which an affiliate of FMR
participates. These procedures prohibit the funds from directly
or indirectly benefiting an FMR affiliate in connection with such
underwritings. In addition, for underwritings where an FMR affiliate
participates as a principal underwriter, certain restrictions may
apply that could, among other things, limit the amount of securities
that the funds could purchase in the underwriting.
From time to time the Trustees will review whether the recapture for
the benefit of the funds of some portion of the brokerage commissions
or similar fees paid by the funds on portfolio transactions is legally
permissible and advisable. Each fund seeks to recapture soliciting
broker-dealer fees on the tender of portfolio securities, but at
present no other recapture arrangements are in effect. The Trustees
intend to continue to review whether recapture opportunities are
available and are legally permissible and, if so, to determine in the
exercise of their business judgment whether it would be advisable for
each fund to seek such recapture.
Although the Trustees and officers of each fund are substantially the
same as those of other funds managed by FMR or its affiliates,
investment decisions for each fund are made independently from those
of other funds managed by FMR or accounts managed by FMR affiliates.
It sometimes happens that the same security is held in the portfolio
of more than one of these funds or accounts. Simultaneous transactions
are inevitable when several funds and accounts are managed by the same
investment adviser, particularly when the same security is suitable
for the investment objective of more than one fund or account.
When two or more funds are simultaneously engaged in the purchase or
sale of the same security, the prices and amounts are allocated in
accordance with procedures believed to be appropriate and equitable
for each fund. In some cases this system could have a detrimental
effect on the price or value of the security as far as each fund is
concerned. In other cases, however, the ability of the funds to
participate in volume transactions will produce better executions and
prices for the funds. It is the current opinion of the Trustees that
the desirability of retaining FMR as investment adviser to each fund
outweighs any disadvantages that may be said to exist from exposure to
simultaneous transactions.
VALUATION
Fidelity Service Company, Inc. (FSC) normally determines each class's
net asset value per share (NAV) as of the close of the New York Stock
Exchange (NYSE) (normally 4:00 p.m. Eastern time). The valuation of
portfolio securities is determined as of this time for the purpose of
computing each class's NAV.
Portfolio securities are valued by various methods depending on the
primary market or exchange on which they trade. Most equity securities
for which the primary market is the United States are valued at last
sale price or, if no sale has occurred, at the closing bid price. Most
equity securities for which the primary market is outside the United
States are valued using the official closing price or the last sale
price in the principal market in which they are traded. If the last
sale price (on the local exchange) is unavailable, the last evaluated
quote or last bid price normally is used. Securities of other open-end
investment companies are valued at their respective NAVs.
Fixed-income securities and other assets for which market quotations
are readily available may be valued at market values determined by
such securities' most recent bid prices (sales prices if the principal
market is an exchange) in the principal market in which they normally
are traded, as furnished by recognized dealers in such securities or
assets. Or, fixed-income securities and convertible securities may be
valued on the basis of information furnished by a pricing service that
uses a valuation matrix which incorporates both dealer-supplied
valuations and electronic data processing techniques. Use of pricing
services has been approved by the Board of Trustees. A number of
pricing services are available, and the funds may use various pricing
services or discontinue the use of any pricing service.
Futures contracts and options are valued on the basis of market
quotations, if available.
Foreign securities are valued based on prices furnished by independent
brokers or quotation services which express the value of securities in
their local currency. FSC gathers all exchange rates daily at the
close of the NYSE using the last quoted price on the local currency
and then translates the value of foreign securities from their local
currencies into U.S. dollars. Any changes in the value of forward
contracts due to exchange rate fluctuations and days to maturity are
included in the calculation of NAV. If an extraordinary event that is
expected to materially affect the value of a portfolio security occurs
after the close of an exchange on which that security is traded, then
that security will be valued as determined in good faith by a
committee appointed by the Board of Trustees.
Short-term securities with remaining maturities of sixty days or less
for which market quotations and information furnished by a pricing
service are not readily available are valued either at amortized cost
or at original cost plus accrued interest, both of which approximate
current value. In addition, securities and other assets for which
there is no readily available market value may be valued in good faith
by a committee appointed by the Board of Trustees. The procedures set
forth above need not be used to determine the value of the securities
owned by a fund if, in the opinion of a committee appointed by the
Board of Trustees, some other method would more accurately reflect the
fair market value of such securities.
PERFORMANCE
A class may quote performance in various ways. All performance
information supplied by the funds in advertising is historical and is
not intended to indicate future returns. Each class's share price and
total return fluctuate in response to market conditions and other
factors, and the value of fund shares when redeemed may be more or
less than their original cost.
TOTAL RETURN CALCULATIONS. Total returns quoted in advertising reflect
all aspects of a class's return, including the effect of reinvesting
dividends and capital gain distributions, and any change in a class's
NAV over a stated period. A class's total return may be calculated by
using the performance data of a previously existing class prior to the
date that the new class commenced operations, adjusted to reflect
differences in sales charges but not 12b-1 fees. Average annual total
returns are calculated by determining the growth or decline in value
of a hypothetical historical investment in a class over a stated
period, and then calculating the annually compounded percentage rate
that would have produced the same result if the rate of growth or
decline in value had been constant over the period. For example, a
cumulative total return of 100% over ten years would produce an
average annual total return of 7.18%, which is the steady annual rate
of return that would equal 100% growth on a compounded basis in ten
years. Average annual total returns covering periods of less than one
year are calculated by determining a class's total return for the
period, extending that return for a full year (assuming that return
remains constant over the year), and quoting the result as an annual
return. While average annual total returns are a convenient means of
comparing investment alternatives, investors should realize that a
class's performance is not constant over time, but changes from year
to year, and that average annual total returns represent averaged
figures as opposed to the actual year-to-year performance of a class.
In addition to average annual total returns, a class may quote
unaveraged or cumulative total returns reflecting the simple change in
value of an investment over a stated period. Average annual and
cumulative total returns may be quoted as a percentage or as a dollar
amount, and may be calculated for a single investment, a series of
investments, or a series of redemptions, over any time period. Total
returns may be broken down into their components of income and capital
(including capital gains and changes in share price) in order to
illustrate the relationship of these factors and their contributions
to total return. Total returns may be quoted on a before-tax or
after-tax basis and may be quoted with or without taking a class's
maximum sales charge into account and may or may not include the
effect of a fund's 1.00% short-term trading fee on shares held less
than 60 days. Excluding a class's sales charge or short-term trading
fee from a total return calculation produces a higher total return
figure. Total returns, yields, and other performance information may
be quoted numerically or in a table, graph, or similar illustration.
NET ASSET VALUE. Charts and graphs using a class's net asset values,
adjusted net asset values, and benchmark indices may be used to
exhibit performance. An adjusted NAV includes any distributions paid
by a fund and reflects all elements of a class's return. Unless
otherwise indicated, a class's adjusted NAV is not adjusted for sales
charges, if any.
MOVING AVERAGES. A fund may illustrate performance using moving
averages. A long-term moving average is the average of each week's
adjusted closing NAV for a specified period. A short-term moving
average is the average of each day's adjusted closing NAV for a
specified period. Moving Average Activity Indicators combine adjusted
closing NAVs from the last business day of each week with moving
averages for a specified period to produce indicators showing when an
NAV has crossed, stayed above, or stayed below its moving average. The
13-week and 39-week short-term moving averages for each class of each
fund on July 31, 1998 are shown below.
FUND 13-WEEK 39-WEEK
CONSUMER INDUSTRIES - $ 15.06 $ 13.97
CLASS A
CONSUMER INDUSTRIES - $ 14.99 $ 13.91
CLASS T
CONSUMER INDUSTRIES - $ 14.91 $ 13.85
CLASS B
CONSUMER INDUSTRIES - $ 14.95 $ 13.88
CLASS C
CONSUMER INDUSTRIES - $ 15.09 $ 13.99
INSTITUTIONAL
CYCLICAL INDUSTRIES - $ 14.18 $ 13.42
CLASS A
CYCLICAL INDUSTRIES - $ 14.13 $ 13.38
CLASS T
CYCLICAL INDUSTRIES - $ 14.03 $ 13.30
CLASS B
CYCLICAL INDUSTRIES - $ 14.08 $ 13.35
CLASS C
CYCLICAL INDUSTRIES - $ 14.31 $ 13.53
INSTITUTIONAL
FINANCIAL SERVICES - $ 18.72 $ 17.39
CLASS A
FINANCIAL SERVICES - $ 18.65 $ 17.34
CLASS T
FINANCIAL SERVICES - $ 18.52 $ 17.24
CLASS B
FINANCIAL SERVICES - $ 18.56 $ 17.29
CLASS C
FINANCIAL SERVICES - $ 18.78 $ 17.44
INSTITUTIONAL
HEALTH CARE - CLASS A $ 16.39 $ 15.07
HEALTH CARE - CLASS T $ 16.31 $ 15.01
HEALTH CARE - CLASS B $ 16.19 $ 14.91
HEALTH CARE - CLASS C $ 16.21 $ 14.95
HEALTH CARE - $ 16.43 $ 15.09
INSTITUTIONAL
NATURAL RESOURCES - $ 20.96 $ 21.00
CLASS A
NATURAL RESOURCES - $ 21.15 $ 21.20
CLASS T
NATURAL RESOURCES - $ 20.83 $ 20.90
CLASS B
NATURAL RESOURCES - $ 21.02 $ 21.11
CLASS C
NATURAL RESOURCES - $ 21.18 $ 21.21
INSTITUTIONAL
TECHNOLOGY - CLASS A $ 14.71 $ 13.85
TECHNOLOGY - CLASS T $ 14.63 $ 13.79
TECHNOLOGY - CLASS B $ 14.53 $ 13.71
TECHNOLOGY - CLASS C $ 14.55 $ 13.74
TECHNOLOGY - $ 14.72 $ 13.86
INSTITUTIONAL
UTILITIES GROWTH - CLASS $ 16.12 $ 15.21
A
UTILITIES GROWTH - CLASS $ 16.07 $ 15.17
T
UTILITIES GROWTH - CLASS $ 15.95 $ 15.09
B
UTILITIES GROWTH - CLASS $ 15.98 $ 15.11
C
UTILITIES GROWTH - $ 16.13 $ 15.21
INSTITUTIONAL
CALCULATING HISTORICAL FUND RESULTS. The following table shows
performance for each class of each fund calculated including certain
class expenses. Class A and Class T shares have a maximum front-end
sales charge of 5.75% and 3.50%, respectively, which is included in
the average annual and cumulative total returns. Class B and Class C
shares have a maximum CDSC of 5.00% and 1.00%, respectively, which is
included in the average annual and cumulative total returns. Class A,
Class T, Class B and Class C shares have a 12b-1 fee of 0.25%, 0.50%,
1.00% and 1.00%, respectively, which is included in the average annual
and cumulative total returns. Institutional Class shares do not have a
sales charge or 12b-1 fee.
Total returns do not include the effect of the funds' 1.00% short-term
trading fee, applicable to shares held less than 60 days.
HISTORICAL FUND RESULTS. The following table shows each class's total
return for the period ended July 31, 1998.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
AVERAGE ANNUAL TOTAL RETURNS1 CUMULATIVE TOTAL RETURNS1
</TABLE>
<ERROR: WIDE TABLE>
ERROR: THE FOLLOWING TABLE: "HISTORICA2" IS TOO WIDE!
TABLE WIDTH IS 148 CHARACTERS.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
<C>
ONE
FIVE
TEN YEARS/ ONE
FIVE
TEN YEARS/
YEAR YEARS LIFE OF YEAR YEARS
LIFE OF
FUND*
FUND*
CONSUMER INDUSTRIES - 20.15% N/A 29.21% 20.15% N/A
63.02%
CLASS A
CONSUMER INDUSTRIES - 22.49% N/A 30.31% 22.49% N/A
65.67%
CLASS T
CONSUMER INDUSTRIES - 21.30% N/A 30.62% 21.30% N/A
66.44%
CLASS B
CONSUMER INDUSTRIES - 25.32% N/A 32.27% 25.32% N/A
70.47%
CLASS C
CONSUMER INDUSTRIES - 27.70% N/A 33.56% 27.70% N/A
73.64%
INSTITUTIONAL CLASS
CYCLICAL INDUSTRIES - -0.04% N/A 18.87% -0.04% N/A
39.05%
CLASS A
CYCLICAL INDUSTRIES - 2.20% N/A 20.13% 2.20% N/A
41.87%
CLASS T
CYCLICAL INDUSTRIES - 0.36% N/A 20.12% 0.36% N/A
41.86%
CLASS B
CYCLICAL INDUSTRIES - 4.19% N/A 21.86% 4.19% N/A
45.80%
CLASS C
CYCLICAL INDUSTRIES - 6.32% N/A 23.03% 6.32% N/A
48.47%
INSTITUTIONAL CLASS
FINANCIAL SERVICES - 19.06% N/A 36.18% 19.06% N/A
80.20%
CLASS A
FINANCIAL SERVICES - 21.55% N/A 37.48% 21.55% N/A
83.48%
CLASS T
FINANCIAL SERVICES - 20.29% N/A 37.97% 20.29% N/A
84.75%
CLASS B
FINANCIAL SERVICES - 24.14% N/A 39.44% 24.14% N/A
88.52%
CLASS C
FINANCIAL SERVICES - 26.39% N/A 40.72% 26.39% N/A
91.83%
INSTITUTIONAL CLASS
HEALTH CARE - CLASS A 19.20% N/A 31.29% 19.20% N/A
68.07%
HEALTH CARE - CLASS T 21.75% N/A 32.51% 21.75% N/A
71.06%
HEALTH CARE - CLASS B 20.40% N/A 32.77% 20.40% N/A
71.69%
HEALTH CARE - CLASS C 24.18% N/A 34.26% 24.18% N/A
75.38%
HEALTH CARE - 26.70% N/A 35.66% 26.70% N/A
78.89%
INSTITUTIONAL CLASS
NATURAL RESOURCES - -19.52% 9.04% 12.17% -19.52% 54.13%
215.37%
CLASS A
NATURAL RESOURCES - -17.68% 9.57% 12.45% -17.68% 57.96%
223.20%
CLASS T
NATURAL RESOURCES - -18.74% 9.68% 12.64% -18.74% 58.70%
228.80%
CLASS B
NATURAL RESOURCES - -16.22% 9.87% 12.60% -16.22% 60.13%
227.63%
CLASS C
NATURAL RESOURCES - -14.29% 10.57% 12.96% -14.29% 65.26%
238.14%
INSTITUTIONAL CLASS
TECHNOLOGY - CLASS A -1.79% N/A 27.00% -1.79% N/A
57.74%
TECHNOLOGY - CLASS T 0.22% N/A 28.14% 0.22% N/A
60.46%
TECHNOLOGY - CLASS B -1.36% N/A 28.38% -1.36% N/A
61.03%
TECHNOLOGY - CLASS C 2.15% N/A 29.95% 2.15% N/A
64.81%
TECHNOLOGY - 4.26% N/A 31.18% 4.26% N/A
67.80%
INSTITUTIONAL CLASS
UTILITIES GROWTH - 26.29% N/A 30.92% 26.29% N/A
67.16%
CLASS A
UTILITIES GROWTH - 29.04% N/A 32.19% 29.04% N/A
70.27%
CLASS T
UTILITIES GROWTH - 27.97% N/A 32.57% 27.97% N/A
71.20%
CLASS B
UTILITIES GROWTH - 32.02% N/A 34.21% 32.02% N/A
75.25%
CLASS C
UTILITIES GROWTH - 34.36% N/A 35.41% 34.36% N/A
78.26%
INSTITUTIONAL CLASS
</TABLE>
* Life of fund figures are from September 3, 1996 (commencement of
operations) for Consumer Industries, Cyclical Industries, Financial
Services, Health Care, Technology, and Utilities Growth.
1 Average annual and cumulative total returns for Class A include the
effect of paying Class A's maximum front-end sales charge of 5.75%.
Average annual and cumulative total returns for Class T include the
effect of paying Class T's maximum front-end sales charge of 3.50%.
Average annual and cumulative total returns for Class B include the
effect of paying Class B's CDSC upon redemption based on the following
schedule: one year or less, 5.00%; greater than one year to two years,
4.00%; greater than 2 years to four years, 3.00%; greater than four
years to five years, 2.00%; greater than five years to six years,
1.00%; greater than six years, 0%.
Average annual and cumulative returns for Class C include the effect
of paying Class C's 1.00% CDSC imposed on Class C shares redeemed
within one year of purchase.
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.
Initial offering of Institutional Class of Natural Resources took
place on July 3, 1995. Institutional Class 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.
Note: If FMR had not reimbursed certain class expenses during these
periods, the total return for Consumer Industries, Cyclical
Industries, Financial Services, Health Care, Natural Resources,
Technology and Utilities Growth would have been lower.
The following tables show the income and capital elements of each
class's cumulative total return. The tables compare each class's
return to the record of the S&P 500, the Dow Jones Industrial Average
(DJIA), and the cost of living, as measured by the Consumer Price
Index (CPI), over the same period. The CPI information is as of the
month-end closest to the initial investment date for each class. The
S&P 500 and DJIA comparisons are provided to show how each class's
total return compared to the record of a broad unmanaged index of
common stocks and a narrower set of stocks of major industrial
companies, respectively, over the same period. Each fund has the
ability to invest in securities not included in either index, and its
investment portfolio may or may not be similar in composition to the
indexes. The S&P 500 and DJIA returns are based on the prices of
unmanaged groups of stocks and, unlike each class's returns, do not
include the effect of brokerage commissions or other costs of
investing.
The following tables show the growth in value of a hypothetical
$10,000 investment in each class of each fund during the 10-year
period ended July 31, 1998 or life of each fund, as applicable,
assuming all distributions were reinvested. Total returns are based on
past results and are not an indication of future performance. Tax
consequences of different investments have not been factored into the
figures below.
During the period from September 3, 1996 (commencement of operations
of the fund) to July 31, 1998, a hypothetical $10,000 investment in
Class A of Consumer Industries would have grown to $ 16,302 ,
including the effect of Class A's 5.75% maximum sales charge.
CONSUMER INDUSTRIES - CLASS A INDICES
<ERROR: WIDE TABLE>
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<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
PERIOD ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF
INITIAL REINVESTED REINVESTED VALUE LIVING**
$10,000 DIVIDEND CAPITAL GAIN
INVESTMENT DISTRIBUTIONS DISTRIBUTIONS
1998 $ 14,213 $ 25 $ 2,064 $ 16,302 $ 17,695 $ 16,269 $
10,375
1997* $ 12,705 $ 12 $ 71 $ 12,788 $ 14,835 $ 14,816 $
10,203
</TABLE>
* From September 3, 1996 (commencement of operations)
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Class A of
Consumer Industries on September 3, 1996, assuming the 5.75% maximum
sales charge had been in effect, the net amount invested in Class A
shares was $ 9,425 . The cost of the initial investment ($10,000)
together with the aggregate cost of reinvested dividends and capital
gain distributions for the period covered (their cash value at the
time they were reinvested) amounted to $ 11,705 . If
distributions had not been reinvested, the amount of distributions
earned from the class over time would have been smaller, and cash
payments for the period would have amounted to $ 19 for
dividends and $1,631 for capital gain distributions. The
figures in the table do not include the effect of the fund's 1.00%
short-term trading fee applicable to shares held less than 60 days.
During the period from September 3, 1996 (commencement of operations
of the fund) to July 31, 1998, a hypothetical $10,000 investment in
Class T of Consumer Industries would have grown to $ 16,567 ,
including the effect of Class T's 3.50% maximum sales charge.
CONSUMER INDUSTRIES - CLASS T INDICES
<ERROR: WIDE TABLE>
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<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
PERIOD ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF
INITIAL REINVESTED REINVESTED VALUE LIVING**
$10,000 DIVIDEND CAPITAL GAIN
INVESTMENT DISTRIBUTIONS DISTRIBUTIONS
1998 $ 14,475 $ 0 $ 2,092 $ 16,567 $ 17,695 $ 16,269 $
10,375
1997* $ 12,979 $ 0 $ 73 $ 13,052 $ 14,835 $ 14,816 $
10,203
</TABLE>
* From September 3, 1996 (commencement of operations)
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Class T of
Consumer Industries on September 3, 1996, assuming the 3.50% maximum
sales charge had been in effect, the net amount invested in Class T
shares was $ 9,650 . The cost of the initial investment ($10,000)
together with the aggregate cost of reinvested dividends and capital
gain distributions for the period covered (their cash value at the
time they were reinvested) amounted to $ 11,714 . If
distributions had not been reinvested, the amount of distributions
earned from the class over time would have been smaller, and cash
payments for the period would have amounted to $ 0 for dividends
and $ 1,660 for capital gain distributions. The figures in the
table do not include the effect of the fund's 1.00% short-term trading
fee applicable to shares held less than 60 days.
During the period from September 3, 1996 (commencement of operations
of the fund) to July 31, 1998, a hypothetical $10,000 investment in
Class B of Consumer Industries would have grown to $ 16,644 ,
including the effect of Class B's maximum CDSC.
CONSUMER INDUSTRIES - CLASS B INDICES
<ERROR: WIDE TABLE>
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<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
PERIOD ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF
INITIAL REINVESTED REINVESTED VALUE LIVING**
$10,000 DIVIDEND CAPITAL GAIN
INVESTMENT DISTRIBUTIONS DISTRIBUTIONS
1998 $ 14,510 $ 0 $ 2,134 $ 16,644 $ 17,695 $ 16,269 $
10,375
1997* $ 13,420 $ 0 $ 75 $ 13,495 $ 14,835 $ 14,816 $
10,203
</TABLE>
* From September 3, 1996 (commencement of operations)
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Class B of
Consumer Industries on September 3, 1996, the net amount invested in
Class B shares was $10,000. The cost of the initial investment
($10,000) together with the aggregate cost of reinvested dividends and
capital gain distributions for the period covered (their cash value at
the time they were reinvested) amounted to $11,754 . If
distributions had not been reinvested, the amount of distributions
earned from the class over time would have been smaller, and cash
payments for the period would have amounted to $ 0 for dividends
and $1,700 for capital gain distributions. The figures in the
table do not include the effect of the fund's 1.00% short-term trading
fee applicable to shares held less than 60 days. Initial offering of
Class B 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.
During the period from September 3, 1996 (commencement of operations
of the fund) to July 31, 1998, a hypothetical $10,000 investment in
Class C of Consumer Industries would have grown to $ 17,047 ,
including the effect of Class C's maximum CDSC.
CONSUMER INDUSTRIES - CLASS C INDICES
<ERROR: WIDE TABLE>
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<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
PERIOD ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF
INITIAL REINVESTED REINVESTED VALUE LIVING**
$10,000 DIVIDEND CAPITAL GAIN
INVESTMENT DISTRIBUTIONS DISTRIBUTIONS
1998 $ 14,891 $ 0 $ 2,156 $ 17,047 $ 17,695 $ 16,269 $
10,375
1997* $ 13,420 $ 0 $ 75 $ 13,495 $ 14,835 $ 14,816 $
10,203
</TABLE>
* From September 3, 1996 (commencement of operations)
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Class C of
Consumer Industries on September 3, 1996, the net amount invested in
Class C shares was $10,000. The cost of the initial investment
($10,000) together with the aggregate cost of reinvested dividends and
capital gain distributions for the period covered (their cash value at
the time they were reinvested) amounted to $ 11,774 . If
distributions had not been reinvested, the amount of distributions
earned from the class over time would have been smaller, and cash
payments for the period would have amounted to $ 0 for dividends
and $ 1,718 for capital gain distributions. The figures in the
table do not include the effect of the fund's 1.00% short-term trading
fee applicable to shares held less than 60 days. Initial offering of
Class C took place on November 3, 1997. Class C returns 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.
During the period from September 3, 1996 (commencement of operations
of the fund) to July 31, 1998, a hypothetical $10,000 investment in
Institutional Class of Consumer Industries would have grown to
$ 17,364 .
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
CONSUMER INDUSTRIES - INSTITUTIONAL CLASS INDICES
</TABLE>
<ERROR: WIDE TABLE>
ERROR: THE FOLLOWING TABLE: "HYPO" IS TOO WIDE!
TABLE WIDTH IS 135 CHARACTERS.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
PERIOD ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF
INITIAL REINVESTED REINVESTED VALUE LIVING**
$10,000 DIVIDEND CAPITAL GAIN
INVESTMENT DISTRIBUTIONS DISTRIBUTIONS
1998 $ 15,120 $ 39 $ 2,205 $ 17,364 $ 17,695 $ 16,269 $
10,375
1997* $ 13,510 $ 13 $ 75 $ 13,598 $ 14,835 $ 14,816 $
10,203
</TABLE>
* From September 3, 1996 (commencement of operations)
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in
Institutional Class of Consumer Industries on September 3, 1996, the
net amount invested in Institutional Class shares was $10,000. The
cost of the initial investment ($10,000) together with the aggregate
cost of reinvested dividends and capital gain distributions for the
period covered (their cash value at the time they were reinvested)
amounted to $ 11,831 . If distributions had not been reinvested,
the amount of distributions earned from the class over time would have
been smaller, and cash payments for the period would have amounted to
$ 30 for dividends and $ 1,740 for capital gain
distributions. The figures in the table do not include the effect of
the fund's 1.00% short-term trading fee applicable to shares held less
than 60 days.
During the period from September 3, 1996 (commencement of operations
of the fund) to July 31, 1998, a hypothetical $10,000 investment in
Class A of Cyclical Industries would have grown to $ 13,905 ,
including the effect of Class A's 5.75% maximum sales charge.
CYCLICAL INDUSTRIES - CLASS A INDICES
<ERROR: WIDE TABLE>
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<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
PERIOD ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF
INITIAL REINVESTED REINVESTED VALUE LIVING**
$10,000 DIVIDEND CAPITAL GAIN
INVESTMENT DISTRIBUTIONS DISTRIBUTIONS
1998 $ 12,780 $ 12 $ 1,113 $ 13,905 $ 17,695 $ 16,269 $
10,375
1997* $ 13,007 $ 11 $ 93 $ 13,111 $ 14,835 $ 14,816 $
10,203
</TABLE>
* From September 3, 1996 (commencement of operations)
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Class A of
Cyclical Industries on September 3, 1996, assuming the 5.75% maximum
sales charge had been in effect, the net amount invested in Class A
shares was $ 9,425 . The cost of the initial investment ($10,000)
together with the aggregate cost of reinvested dividends and capital
gain distributions for the period covered (their cash value at the
time they were reinvested) amounted to $ 11,042 . If
distributions had not been reinvested, the amount of distributions
earned from the class over time would have been smaller, and cash
payments for the period would have amounted to $ 9 for dividends
and $ 1,008 for capital gain distributions. The figures in the
table do not include the effect of the fund's 1.00% short-term trading
fee applicable to shares held less than 60 days.
During the period from September 3, 1996 (commencement of operations
of the fund) to July 31, 1998, a hypothetical $10,000 investment in
Class T of Cyclical Industries would have grown to $ 14,187 ,
including the effect of Class T's 3.50% maximum sales charge.
CYCLICAL INDUSTRIES - CLASS T INDICES
<ERROR: WIDE TABLE>
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<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
PERIOD ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF
INITIAL REINVESTED REINVESTED VALUE LIVING**
$10,000 DIVIDEND CAPITAL GAIN
INVESTMENT DISTRIBUTIONS DISTRIBUTIONS
1998 $ 13,037 $ 12 $ 1,138 $ 14,187 $ 17,695 $ 16,269 $
10,375
1997* $ 13,288 $ 12 $ 95 $ 13,395 $ 14,835 $ 14,816 $
10,203
</TABLE>
* From September 3, 1996 (commencement of operations)
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Class T of
Cyclical Industries on September 3, 1996, assuming the 3.50% maximum
sales charge had been in effect, the net amount invested in Class T
shares was $ 9,650 . The cost of the initial investment ($10,000)
together with the aggregate cost of reinvested dividends and capital
gain distributions for the period covered (their cash value at the
time they were reinvested) amounted to $ 11,067 . If
distributions had not been reinvested, the amount of distributions
earned from the class over time would have been smaller, and cash
payments for the period would have amounted to $ 10 for
dividends and $ 1,033 for capital gain distributions. The
figures in the table do not include the effect of the fund's 1.00%
short-term trading fee applicable to shares held less than 60 days.
During the period from September 3, 1996 (commencement of operations
of the fund) to July 31, 1998, a hypothetical $10,000 investment in
Class B of Cyclical Industries would have grown to $ 14,186 ,
including the effect of Class B's maximum CDSC.
CYCLICAL INDUSTRIES - CLASS B INDICES
<ERROR: WIDE TABLE>
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<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
PERIOD ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF
INITIAL REINVESTED REINVESTED VALUE LIVING**
$10,000 DIVIDEND CAPITAL GAIN
INVESTMENT DISTRIBUTIONS DISTRIBUTIONS
1998 $ 13,000 $ 12 $ 1,174 $ 14,186 $ 17,695 $ 16,269 $
10,375
1997* $ 13,750 $ 12 $ 99 $ 13,861 $ 14,835 $ 14,816 $
10,203
</TABLE>
* From September 3, 1996 (commencement of operations)
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Class B of
Cyclical Industries on September 3, 1996, the net amount invested in
Class B shares was $10,000. The cost of the initial investment
($10,000) together with the aggregate cost of reinvested dividends and
capital gain distributions for the period covered (their cash value at
the time they were reinvested) amounted to $ 11,106 . If
distributions had not been reinvested, the amount of distributions
earned from the class over time would have been smaller, and cash
payments for the period would have amounted to $ 10 for
dividends and $ 1,070 for capital gain distributions. The
figures in the table do not include the effect of the fund's 1.00%
short-term trading fee applicable to shares held less than 60 days.
Initial offering of Class B 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.
During the period from September 3, 1996 (commencement of operations
of the fund) to July 31, 1998, a hypothetical $10,000 investment in
Class C of Cyclical Industries would have grown to $ 14,580 ,
including the effect of Class C's maximum CDSC.
CYCLICAL INDUSTRIES - CLASS C INDICES
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<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
PERIOD ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF
INITIAL REINVESTED REINVESTED VALUE LIVING**
$10,000 DIVIDEND CAPITAL GAIN
INVESTMENT DISTRIBUTIONS DISTRIBUTIONS
1998 $ 13,396 $ 12 $ 1,172 $ 14,580 $ 17,695 $ 16,269 $
10,375
1997* $ 13,750 $ 12 $ 99 $ 13,861 $ 14,835 $ 14,816 $
10,203
</TABLE>
* From September 3, 1996 (commencement of operations)
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Class C of
Cyclical Industries on September 3, 1996, the net amount invested in
Class C shares was $10,000. The cost of the initial investment
($10,000) together with the aggregate cost of reinvested dividends and
capital gain distributions for the period covered (their cash value at
the time they were reinvested) amounted to $ 11,104 . If
distributions had not been reinvested, the amount of distributions
earned from the class over time would have been smaller, and cash
payments for the period would have amounted to $ 12 for
dividends and $ 1,094 for capital gain distributions. The
figures in the table do not include the effect of the fund's 1.00%
short-term trading fee applicable to shares held less than 60 days.
Initial offering of Class C took place on November 3, 1997. Class C
returns 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.
During the period from September 3, 1996 (commencement of operations
of the fund) to July 31, 1998, a hypothetical $10,000 investment in
Institutional Class of Cyclical Industries would have grown to
$ 14,847 .
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
CYCLICAL INDUSTRIES - INSTITUTIONAL CLASS INDICES
</TABLE>
<ERROR: WIDE TABLE>
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<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
PERIOD ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF
INITIAL REINVESTED REINVESTED VALUE LIVING**
$10,000 DIVIDEND CAPITAL GAIN
INVESTMENT DISTRIBUTIONS DISTRIBUTIONS
1998 $ 13,680 $ 25 $ 1,142 $ 14,847 $ 17,695 $ 16,269 $
10,375
1997* $ 13,840 $ 25 $ 99 $ 13,964 $ 14,835 $ 14,816 $
10,203
</TABLE>
* From September 3, 1996 (commencement of operations)
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in
Institutional Class of Cyclical Industries on September 3, 1996, the
net amount invested in Institutional Class shares was $10,000. The
cost of the initial investment ($10,000) together with the aggregate
cost of reinvested dividends and capital gain distributions for the
period covered (their cash value at the time they were reinvested)
amounted to $ 11,075 . If distributions had not been reinvested,
the amount of distributions earned from the class over time would have
been smaller, and cash payments for the period would have amounted to
$ 20 for dividends and $ 1,030 for capital gain
distributions. The figures in the table do not include the effect of
the fund's 1.00% short-term trading fee applicable to shares held less
than 60 days.
During the period from September 3, 1996 (commencement of operations
of the fund) to July 31, 1998, a hypothetical $10,000 investment in
Class A of Financial Services would have grown to $ 18,020 ,
including the effect of Class A's 5.75% maximum sales charge.
FINANCIAL SERVICES - CLASS A INDICES
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<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
PERIOD ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF
INITIAL REINVESTED REINVESTED VALUE LIVING**
$10,000 DIVIDEND CAPITAL GAIN
INVESTMENT DISTRIBUTIONS DISTRIBUTIONS
1998 $ 17,662 $ 84 $ 274 $ 18,020 $ 17,695 $ 16,269 $
10,375
1997* $ 14,241 $ 12 $ 12 $ 14,265 $ 14,835 $ 14,816 $
10,203
</TABLE>
* From September 3, 1996 (commencement of operations)
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Class A of
Financial Services on September 3, 1996, assuming the 5.75% maximum
sales charge had been in effect, the net amount invested in Class A
shares was $ 9,425 . The cost of the initial investment ($10,000)
together with the aggregate cost of reinvested dividends and capital
gain distributions for the period covered (their cash value at the
time they were reinvested) amounted to $ 10,293 . If
distributions had not been reinvested, the amount of distributions
earned from the class over time would have been smaller, and cash
payments for the period would have amounted to $ 66 for
dividends and $ 226 for capital gain distributions. The figures
in the table do not include the effect of the fund's 1.00% short-term
trading fee applicable to shares held less than 60 days.
During the period from September 3, 1996 (commencement of operations
of the fund) to July 31, 1998, a hypothetical $10,000 investment in
Class T of Financial Services would have grown to $ 18,348 ,
including the effect of Class T's 3.50% maximum sales charge.
FINANCIAL SERVICES - CLASS T INDICES
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<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
PERIOD ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF
INITIAL REINVESTED REINVESTED VALUE LIVING**
$10,000 DIVIDEND CAPITAL GAIN
INVESTMENT DISTRIBUTIONS DISTRIBUTIONS
1998 $ 18,007 $ 61 $ 280 $ 18,348 $ 17,695 $ 16,269 $
10,375
1997* $ 14,543 $ 12 $ 12 $ 14,567 $ 14,835 $ 14,816 $
10,203
</TABLE>
* From September 3, 1996 (commencement of operations)
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Class T of
Financial Services on September 3, 1996, assuming the 3.50% maximum
sales charge had been in effect, the net amount invested in Class T
shares was $ 9,650 . The cost of the initial investment ($10,000)
together with the aggregate cost of reinvested dividends and capital
gain distributions for the period covered (their cash value at the
time they were reinvested) amounted to $ 10,281 . If
distributions had not been reinvested, the amount of distributions
earned from the class over time would have been smaller, and cash
payments for the period would have amounted to $ 48 for
dividends and $ 232 for capital gain distributions. The figures
in the table do not include the effect of the fund's 1.00% short-term
trading fee applicable to shares held less than 60 days.
During the period from September 3, 1996 (commencement of operations
of the fund) to July 31, 1998, a hypothetical $10,000 investment in
Class B of Financial Services would have grown to $ 18,475 ,
including the effect of Class B's maximum CDSC.
FINANCIAL SERVICES - CLASS B INDICES
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<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
PERIOD ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF
INITIAL REINVESTED REINVESTED VALUE LIVING**
$10,000 DIVIDEND CAPITAL GAIN
INVESTMENT DISTRIBUTIONS DISTRIBUTIONS
1998 $ 18,120 $ 66 $ 289 $ 18,475 $ 17,695 $ 16,269 $
10,375
1997* $ 15,040 $ 12 $ 13 $ 15,065 $ 14,835 $ 14,816 $
10,203
</TABLE>
* From September 3, 1996 (commencement of operations)
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Class B of
Financial Services on September 3, 1996, the net amount invested in
Class B shares was $10,000. The cost of the initial investment
($10,000) together with the aggregate cost of reinvested dividends and
capital gain distributions for the period covered (their cash value at
the time they were reinvested) amounted to $ 10,291 . If
distributions had not been reinvested, the amount of distributions
earned from the class over time would have been smaller, and cash
payments for the period would have amounted to $ 50 for
dividends and $ 240 for capital gain distributions. The figures
in the table do not include the effect of the fund's 1.00% short-term
trading fee applicable to shares held less than 60 days. Initial
offering of Class B 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.
During the period from September 3, 1996 (commencement of operations
of the fund) to July 31, 1998, a hypothetical $10,000 investment in
Class C of Financial Services would have grown to $ 18,852 ,
including the effect of Class C's maximum CDSC.
FINANCIAL SERVICES - CLASS C INDICES
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<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
PERIOD ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF
INITIAL REINVESTED REINVESTED VALUE LIVING**
$10,000 DIVIDEND CAPITAL GAIN
INVESTMENT DISTRIBUTIONS DISTRIBUTIONS
1998 $ 18,487 $ 77 $ 288 $ 18,852 $ 17,695 $ 16,269 $
10,375
1997* $ 15,040 $ 12 $ 13 $ 15,065 $ 14,835 $ 14,816 $
10,203
</TABLE>
* From September 3, 1996 (commencement of operations)
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Class C of
Financial Services on September 3, 1996, the net amount invested in
Class C shares was $10,000. The cost of the initial investment
($10,000) together with the aggregate cost of reinvested dividends and
capital gain distributions for the period covered (their cash value at
the time they were reinvested) amounted to $ 10,300 . If
distributions had not been reinvested, the amount of distributions
earned from the class over time would have been smaller, and cash
payments for the period would have amounted to $ 60 for
dividends and $ 239 for capital gain distributions. The figures
in the table do not include the effect of the fund's 1.00% short-term
trading fee applicable to shares held less than 60 days. Initial
offering of Class C took place on November 3, 1997. Class C returns
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.
During the period from September 3, 1996 (commencement of operations
of the fund) to July 31, 1998, a hypothetical $10,000 investment in
Institutional Class of Financial Services would have grown to
$ 19,183 .
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
FINANCIAL SERVICES - INSTITUTIONAL CLASS INDICES
</TABLE>
<ERROR: WIDE TABLE>
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<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
PERIOD ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF
INITIAL REINVESTED REINVESTED VALUE LIVING**
$10,000 DIVIDEND CAPITAL GAIN
INVESTMENT DISTRIBUTIONS DISTRIBUTIONS
1998 $ 18,800 $ 92 $ 291 $ 19,183 $ 17,695 $ 16,269 $
10,375
1997* $ 15,140 $ 25 $ 13 $ 15,178 $ 14,835 $ 14,816 $
10,203
</TABLE>
* From September 3, 1996 (commencement of operations)
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in
Institutional Class of Financial Services on September 3, 1996, the
net amount invested in Institutional Class shares was $10,000. The
cost of the initial investment ($10,000) together with the aggregate
cost of reinvested dividends and capital gain distributions for the
period covered (their cash value at the time they were reinvested)
amounted to $ 10,311 . If distributions had not been reinvested,
the amount of distributions earned from the class over time would have
been smaller, and cash payments for the period would have amounted to
$ 70 for dividends and $ 240 for capital gain
distributions. The figures in the table do not include the effect of
the fund's 1.00% short-term trading fee applicable to shares held less
than 60 days.
During the period from September 3, 1996 (commencement of operations
of the fund) to July 31, 1998, a hypothetical $10,000 investment in
Class A of Health Care would have grown to $ 16,807 , including
the effect of Class A's 5.75% maximum sales charge.
HEALTH CARE - CLASS A INDICES
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<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
PERIOD ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF
INITIAL REINVESTED REINVESTED VALUE LIVING**
$10,000 DIVIDEND CAPITAL GAIN
INVESTMENT DISTRIBUTIONS DISTRIBUTIONS
1998 $ 15,740 $ 0 $ 1,067 $ 16,807 $ 17,695 $ 16,269 $
10,375
1997* $ 13,289 $ 0 $ 0 $ 13,289 $ 14,835 $ 14,816 $
10,203
</TABLE>
* From September 3, 1996 (commencement of operations)
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Class A of
Health Care on September 3, 1996, assuming the 5.75% maximum sales
charge had been in effect, the net amount invested in Class A shares
was $ 9,425 . The cost of the initial investment ($10,000)
together with the aggregate cost of reinvested dividends and capital
gain distributions for the period covered (their cash value at the
time they were reinvested) amounted to $ 10,841 . If
distributions had not been reinvested, the amount of distributions
earned from the class over time would have been smaller, and cash
payments for the period would have amounted to $ 0 for dividends
and $ 829 for capital gain distributions. The figures in the
table do not include the effect of the fund's 1.00% short-term trading
fee applicable to shares held less than 60 days.
During the period from September 3, 1996 (commencement of operations
of the fund) to July 31, 1998, a hypothetical $10,000 investment in
Class T of Health Care would have grown to $ 17,106 , including
the effect of Class T's 3.50% maximum sales charge.
HEALTH CARE - CLASS T INDICES
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<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
PERIOD ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF
INITIAL REINVESTED REINVESTED VALUE LIVING**
$10,000 DIVIDEND CAPITAL GAIN
INVESTMENT DISTRIBUTIONS DISTRIBUTIONS
1998 $ 16,029 $ 0 $ 1,077 $ 17,106 $ 17,695 $ 16,269 $
10,375
1997* $ 13,558 $ 0 $ 0 $ 13,558 $ 14,835 $ 14,816 $
10,203
</TABLE>
* From September 3, 1996 (commencement of operations)
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Class T of
Health Care on September 3, 1996, assuming the 3.50% maximum sales
charge had been in effect, the net amount invested in Class T shares
was $ 9,650 . The cost of the initial investment ($10,000)
together with the aggregate cost of reinvested dividends and capital
gain distributions for the period covered (their cash value at the
time they were reinvested) amounted to $ 10,851 . If
distributions had not been reinvested, the amount of distributions
earned from the class over time would have been smaller, and cash
payments for the period would have amounted to $ 0 for dividends
and $ 840 for capital gain distributions. The figures in the
table do not include the effect of the fund's 1.00% short-term trading
fee applicable to shares held less than 60 days.
During the period from September 3, 1996 (commencement of operations
of the fund) to July 31, 1998, a hypothetical $10,000 investment in
Class B of Health Care would have grown to $ 17,169 , including
the effect of Class B's maximum CDSC.
HEALTH CARE - CLASS B INDICES
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<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
PERIOD ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF
INITIAL REINVESTED REINVESTED VALUE LIVING**
$10,000 DIVIDEND CAPITAL GAIN
INVESTMENT DISTRIBUTIONS DISTRIBUTIONS
1998 $ 16,070 $ 0 $ 1,099 $ 17,169 $ 17,695 $ 16,269 $
10,375
1997* $ 14,010 $ 0 $ 0 $ 14,010 $ 14,835 $ 14,816 $
10,203
</TABLE>
* From September 3, 1996 (commencement of operations)
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Class B of
Health Care on September 3, 1996, the net amount invested in Class B
shares was $10,000. The cost of the initial investment ($10,000)
together with the aggregate cost of reinvested dividends and capital
gain distributions for the period covered (their cash value at the
time they were reinvested) amounted to $ 10,872 . If
distributions had not been reinvested, the amount of distributions
earned from the class over time would have been smaller, and cash
payments for the period would have amounted to $ 0 for dividends
and $ 860 for capital gain distributions. The figures in the
table do not include the effect of the fund's 1.00% short-term trading
fee applicable to shares held less than 60 days. Initial offering of
Class B 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.
During the period from September 3, 1996 (commencement of operations
of the fund) to July 31, 1998, a hypothetical $10,000 investment in
Class C of Health Care would have grown to $ 17,538 , including
the effect of Class C's maximum CDSC.
HEALTH CARE - CLASS C INDICES
<ERROR: WIDE TABLE>
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<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
PERIOD ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF
INITIAL REINVESTED REINVESTED VALUE LIVING**
$10,000 DIVIDEND CAPITAL GAIN
INVESTMENT DISTRIBUTIONS DISTRIBUTIONS
1998 $ 16,395 $ 0 $ 1,143 $ 17,538 $ 17,695 $ 16,269 $
10,375
1997* $ 14,010 $ 0 $ 0 $ 14,010 $ 14,835 $ 14,816 $
10,203
</TABLE>
* From September 3, 1996 (commencement of operations)
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Class C of
Health Care on September 3, 1996, the net amount invested in Class C
shares was $10,000. The cost of the initial investment ($10,000)
together with the aggregate cost of reinvested dividends and capital
gain distributions for the period covered (their cash value at the
time they were reinvested) amounted to $ 10,639 . If
distributions had not been reinvested, the amount of distributions
earned from the class over time would have been smaller, and cash
payments for the period would have amounted to $ 0 for dividends
and $ 639 for capital gain distributions. The figures in the
table do not include the effect of the fund's 1.00% short-term trading
fee applicable to shares held less than 60 days. Initial offering of
Class C took place on November 3, 1997. Class C returns 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.
During the period from September 3, 1996 (commencement of operations
of the fund) to July 31, 1998, a hypothetical $10,000 investment in
Institutional Class of Health Care would have grown to $ 17,889 .
HEALTH CARE - INSTITUTIONAL CLASS INDICES
<ERROR: WIDE TABLE>
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<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
PERIOD ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF
INITIAL REINVESTED REINVESTED VALUE LIVING**
$10,000 DIVIDEND CAPITAL GAIN
INVESTMENT DISTRIBUTIONS DISTRIBUTIONS
1998 $ 16,730 $ 0 $ 1,159 $ 17,889 $ 17,695 $ 16,269 $
10,375
1997* $ 14,120 $ 0 $ 0 $ 14,120 $ 14,835 $ 14,816 $
10,203
</TABLE>
* From September 3, 1996 (commencement of operations)
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in
Institutional Class of Health Care on September 3, 1996, the net
amount invested in Institutional Class shares was $10,000. The cost of
the initial investment ($10,000) together with the aggregate cost of
reinvested dividends and capital gain distributions for the period
covered (their cash value at the time they were reinvested) amounted
to $ 10,913 . If distributions had not been reinvested, the
amount of distributions earned from the class over time would have
been smaller, and cash payments for the period would have amounted to
$ 0 for dividends and $ 900 for capital gain
distributions. The figures in the table do not include the effect of
the fund's 1.00% short-term trading fee applicable to shares held less
than 60 days.
During the 10-year period ended July 31, 1998, a hypothetical $10,000
investment in Class A of Natural Resources would have grown to
$ 31,537 , including the effect of Class A's 5.75% sales charge.
NATURAL RESOURCES - CLASS A INDICES
<ERROR: WIDE TABLE>
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<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
PERIOD ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF
INITIAL REINVESTED REINVESTED VALUE LIVING
$10,000 DIVIDEND CAPITAL GAIN
INVESTMENT DISTRIBUTIONS DISTRIBUTIONS
1998 $ 15,402 $ 250 $ 15,885 $ 31,537 $ 54,515 $ 55,318 $
13,772
1997 $ 21,273 $ 345 $ 15,315 $ 36,933 $ 45,702 $ 50,736 $
13,544
1996 $ 18,297 $ 126 $ 11,270 $ 29,693 $ 30,040 $ 33,218 $
13,249
1995 $ 15,963 $ 110 $ 8,966 $ 25,039 $ 25,770 $ 27,670 $
12,869
1994 $ 13,898 $ 96 $ 7,458 $ 21,452 $ 20,435 $ 21,556 $
12,523
1993 $ 13,011 $ 90 $ 6,183 $ 19,284 $ 19,433 $ 19,721 $
12,186
1992 $ 11,588 $ 81 $ 3,763 $ 15,432 $ 17,870 $ 18,358 $
11,857
1991 $ 11,377 $ 79 $ 2,608 $ 14,064 $ 15,842 $ 15,882 $
11,494
1990 $ 11,425 $ 79 $ 2,054 $ 13,558 $ 14,049 $ 14,704 $
11,004
1989 $ 10,596 $ 0 $ 943 $ 11,539 $ 13,192 $ 12,967 $
10,498
</TABLE>
Explanatory Notes: With an initial investment of $10,000 in Class A of
Natural Resources on August 1, 1988, assuming the 5.75% sales charge
had been in effect, the net amount invested in Class A shares was
$ 9,425 . The cost of the initial investment ($10,000) together
with the aggregate cost of reinvested dividends and capital gain
distributions for the period covered (their cash value at the time
they were reinvested) amounted to $ 24,763 . If distributions had
not been reinvested, the amount of distributions earned from the class
over time would have been smaller, and cash payments for the period
would have amounted to $ 179 for dividends and $ 9,734 for
capital gain distributions. The figures in the table do not include
the effect of the fund's 1.00% short-term trading fee applicable to
shares held less than 60 days. Initial offering of Class A 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.
During the 10-year period ended July 31, 1998, a hypothetical $10,000
investment in Class T of Natural Resources would have grown to
$ 32,320 , including the effect of Class T's 3.50% sales charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
NATURAL RESOURCES - CLASS T INDICES
PERIOD ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF
INITIAL REINVESTED REINVESTED VALUE LIVING
$10,000 DIVIDEND CAPITAL GAIN
INVESTMENT DISTRIBUTIONS DISTRIBUTIONS
1998 $ 15,911 $ 131 $ 16,278 $ 32,320 $ 54,515 $ 55,318 $ 13,772
1997 $ 21,931 $ 180 $ 15,776 $ 37,887 $ 45,702 $ 50,376 $ 13,554
1996 $ 18,734 $ 129 $ 11,539 $ 30,402 $ 30,040 $ 33,218 $ 13,249
1995 $ 16,344 $ 113 $ 9,180 $ 25,637 $ 25,770 $ 27,670 $ 12,869
1994 $ 14,229 $ 99 $ 7,636 $ 21,964 $ 20,435 $ 21,556 $ 12,523
1993 $ 13,322 $ 91 $ 6,331 $ 19,744 $ 19,433 $ 19,721 $ 12,186
1992 $ 11,865 $ 82 $ 3,853 $ 15,800 $ 17,870 $ 18,358 $ 11,857
1991 $ 11,648 $ 80 $ 2,671 $ 14,399 $ 15,842 $ 15,882 $ 11,494
1990 $ 11,698 $ 81 $ 2,103 $ 13,882 $ 14,049 $ 14,704 $ 11,004
1989 $ 10,849 $ 0 $ 965 $ 11,814 $ 13,192 $ 12,967 $ 10,498
</TABLE>
Explanatory Notes: With an initial investment of $10,000 in Class T of
Natural Resources on August 1, 1988, assuming the 3.50% sales charge
had been in effect, the net amount invested in Class T shares was
$ 9,650 . The cost of the initial investment ($10,000) together
with the aggregate cost of reinvested dividends and capital gain
distributions for the period covered (their cash value at the time
they were reinvested) amounted to $ 24,860 . If distributions had
not been reinvested, the amount of distributions earned from the class
over time would have been smaller, and cash payments for the period
would have amounted to $ 83 for dividends and $ 9,933 for
capital gain distributions. The figures in the table do not include
the effect of the fund's 1.00% short-term trading fee applicable to
shares held less than 60 days.
During the 10-year period ended July 31, 1998, a hypothetical $10,000
investment in Class B of Natural Resources would have grown to
$ 32,880.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
NATURAL RESOURCES - CLASS B INDICES
PERIOD ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF
INITIAL REINVESTED REINVESTED VALUE LIVING
$10,000 DIVIDEND CAPITAL GAIN
INVESTMENT DISTRIBUTIONS DISTRIBUTIONS
1998 $ 16,230 $ 112 $ 16,538 $ 32,880 $ 54,515 $ 55,318 $ 13,772
1997 $ 22,425 $ 155 $ 16,157 $ 38,737 $ 45,702 $ 50,376 $ 13,554
1996 $ 19,258 $ 133 $ 11,864 $ 31,255 $ 30,040 $ 33,218 $ 13,249
1995 $ 16,928 $ 117 $ 9,508 $ 26,553 $ 25,770 $ 27,670 $ 12,869
1994 $ 14,745 $ 103 $ 7,913 $ 22,761 $ 20,435 $ 21,556 $ 12,523
1993 $ 13,805 $ 96 $ 6,560 $ 20,461 $ 19,433 $ 19,721 $ 12,186
1992 $ 12,295 $ 85 $ 3,993 $ 16,373 $ 17,870 $ 18,358 $ 11,857
1991 $ 12,071 $ 84 $ 2,767 $ 14,922 $ 15,842 $ 15,882 $ 11,494
1990 $ 12,123 $ 83 $ 2,179 $ 14,385 $ 14,049 $ 14,704 $ 11,004
1989 $ 11,242 $ 0 $ 1,001 $ 12,243 $ 13,192 $ 12,967 $ 10,498
</TABLE>
Explanatory Notes: With an initial investment of $10,000 in Class B of
Natural Resources on August 1, 1988, the net amount invested in Class
B shares was $10,000. The cost of the initial investment ($10,000)
together with the aggregate cost of reinvested dividends and capital
gain distributions for the period covered (their cash value at the
time they were reinvested) amounted to $ 25,196 . If
distributions had not been reinvested, the amount of distributions
earned from the class over time would have been smaller, and cash
payments for the period would have amounted to $ 69 for
dividends and $ 10,198 for capital gain distributions. The
figures in the table do not include the effect of the fund's 1.00%
short-term trading fee applicable to shares held less than 60 days.
Initial offering of Class B 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.
During the 10-year period ended July 31, 1998, a hypothetical $10,000
investment in Class C of Natural Resources would have grown to
$ 32,763.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
NATURAL RESOURCES - CLASS C INDICES
PERIOD ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF
INITIAL REINVESTED REINVESTED VALUE LIVING
$10,000 DIVIDEND CAPITAL GAIN
INVESTMENT DISTRIBUTIONS DISTRIBUTIONS
1998 $ 16,138 $ 111 $ 16,514 $ 32,763 $ 54,515 $ 55,318 $ 13,772
1997 $ 22,425 $ 155 $ 16,157 $ 38,737 $ 45,702 $ 50,376 $ 13,554
1996 $ 19,258 $ 133 $ 11,864 $ 31,255 $ 30,040 $ 33,218 $ 13,249
1995 $ 16,928 $ 117 $ 9,508 $ 26,553 $ 25,770 $ 27,670 $ 12,869
1994 $ 14,745 $ 103 $ 7,913 $ 22,761 $ 20,435 $ 21,556 $ 12,523
1993 $ 13,805 $ 96 $ 6,560 $ 20,461 $ 19,433 $ 19,721 $ 12,186
1992 $ 12,295 $ 85 $ 3,993 $ 16,373 $ 17,870 $ 18,358 $ 11,857
1991 $ 12,071 $ 84 $ 2,767 $ 14,922 $ 15,842 $ 15,882 $ 11,494
1990 $ 12,123 $ 83 $ 2,179 $ 14,385 $ 14,049 $ 14,704 $ 11,004
1989 $ 11,242 $ 0 $ 1,001 $ 12,243 $ 13,192 $ 12,967 $ 10,498
</TABLE>
Explanatory Notes: With an initial investment of $10,000 in Class C of
Natural Resources on August 1, 1988, the net amount invested in Class
C shares was $10,000. The cost of the initial investment ($10,000)
together with the aggregate cost of reinvested dividends and capital
gain distributions for the period covered (their cash value at the
time they were reinvested) amounted to $ 25,268 . If
distributions had not been reinvested, the amount of distributions
earned from the class over time would have been smaller, and cash
payments for the period would have amounted to $ 69 for
dividends and $ 10,236 for capital gain distributions. The
figures in the table do not include the effect of the fund's 1.00%
short-term trading fee applicable to shares held less than 60 days.
Initial offering of Class C took place on November 3, 1997. Class C
returns 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.
During the 10-year period ended July 31, 1998, a hypothetical $10,000
investment in Institutional Class of Natural Resources would have
grown to $ 33,814 .
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
NATURAL RESOURCES - INSTITUTIONAL CLASS INDICES
PERIOD ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF
INITIAL REINVESTED REINVESTED VALUE LIVING
$10,000 DIVIDEND CAPITAL GAIN
INVESTMENT DISTRIBUTIONS DISTRIBUTIONS
1998 $ 16,523 $ 311 $ 16,980 $ 33,814 $ 54,515 $ 55,318 $ 13,772
1997 $ 22,796 $ 262 $ 16,394 $ 39,452 $ 45,702 $ 50,376 $ 13,554
1996 $ 19,431 $ 134 $ 11,966 $ 31,531 $ 30,040 $ 33,218 $ 13,249
1995 $ 16,946 $ 116 $ 9,518 $ 26,580 $ 25,770 $ 27,670 $ 12,869
1994 $ 14,745 $ 103 $ 7,913 $ 22,761 $ 20,435 $ 21,556 $ 12,523
1993 $ 13,805 $ 96 $ 6,560 $ 20,461 $ 19,433 $ 19,721 $ 12,186
1992 $ 12,295 $ 85 $ 3,993 $ 16,373 $ 17,870 $ 18,358 $ 11,857
1991 $ 12,071 $ 84 $ 2,767 $ 14,922 $ 15,842 $ 15,882 $ 11,494
1990 $ 12,123 $ 83 $ 2,179 $ 14,385 $ 14,049 $ 14,704 $ 11,004
1989 $ 11,242 $ 0 $ 1,001 $ 12,243 $ 13,192 $ 12,967 $ 10,498
</TABLE>
Explanatory Notes: With an initial investment of $10,000 in
Institutional Class of Natural Resources on August 1, 1988, the net
amount invested in Institutional Class shares was $10,000. The cost of
the initial investment ($10,000) together with the aggregate cost of
reinvested dividends and capital gain distributions for the period
covered (their cash value at the time they were reinvested) amounted
to $ 25,705 . If distributions had not been reinvested, the
amount of distributions earned from the class over time would have
been smaller, and cash payments for the period would have amounted to
$ 207 for dividends and $ 10,336 for capital gain
distributions. The figures in the table do not include the effect of
the fund's 1.00% short-term trading fee applicable to shares held less
than 60 days. Initial offering of Institutional Class took place on
July 3, 1995. Institutional Class returns prior to July 3, 1995 are
those of Class T which reflect a 0.65% 12b-1 fee. If Class T's 12b-1
fee had not been reflected, total returns prior to July 3, 1995 would
have been higher.
During the period from September 3, 1996 (commencement of operations
of the fund) to July 31, 1998, a hypothetical $10,000 investment in
Class A of Technology would have grown to $ 15,774 , including
the effect of Class A's 5.75% maximum sales charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
TECHNOLOGY - CLASS A INDICES
PERIOD ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF
INITIAL REINVESTED REINVESTED VALUE LIVING**
$10,000 DIVIDEND CAPITAL GAIN
INVESTMENT DISTRIBUTIONS DISTRIBUTIONS
1998 $ 14,024 $ 0 $ 1,750 $ 15,774 $ 17,695 $ 16,269 $ 10,375
1997* $ 15,042 $ 0 $ 96 $ 15,138 $ 14,835 $ 14,816 $ 10,203
</TABLE>
* From September 3, 1996 (commencement of operations)
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Class A of
Technology on September 3, 1996, assuming the 5.75% maximum sales
charge had been in effect, the net amount invested in Class A shares
was $ 9,425 . The cost of the initial investment ($10,000)
together with the aggregate cost of reinvested dividends and capital
gain distributions for the period covered (their cash value at the
time they were reinvested) amounted to $ 11,620 . If
distributions had not been reinvested, the amount of distributions
earned from the class over time would have been smaller, and cash
payments for the period would have amounted to $ 0 for dividends
and $ 1,574 for capital gain distributions. The figures in the
table do not include the effect of the fund's 1.00% short-term trading
fee applicable to shares held less than 60 days.
During the period from September 3, 1996 (commencement of operations
of the fund) to July 31, 1998, a hypothetical $10,000 investment in
Class T of Technology would have grown to $ 16,046 , including
the effect of Class T's 3.50% maximum sales charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
TECHNOLOGY - CLASS T INDICES
PERIOD ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF
INITIAL REINVESTED REINVESTED VALUE LIVING**
$10,000 DIVIDEND CAPITAL GAIN
INVESTMENT DISTRIBUTIONS DISTRIBUTIONS
1998 $ 14,282 $ 0 $ 1,764 $ 16,046 $ 17,695 $ 16,269 $ 10,375
1997* $ 15,353 $ 0 $ 98 $ 15,451 $ 14,835 $ 14,816 $ 10,203
</TABLE>
* From September 3, 1996 (commencement of operations)
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Class T of
Technology on September 3, 1996, assuming the 3.50% maximum sales
charge had been in effect, the net amount invested in Class T shares
was $ 9,650 . The cost of the initial investment ($10,000)
together with the aggregate cost of reinvested dividends and capital
gain distributions for the period covered (their cash value at the
time they were reinvested) amounted to $ 11,639 . If
distributions had not been reinvested, the amount of distributions
earned from the class over time would have been smaller, and cash
payments for the period would have amounted to $ 0 for dividends
and $ 1,592 for capital gain distributions. The figures in the
table do not include the effect of the fund's 1.00% short-term trading
fee applicable to shares held less than 60 days.
During the period from September 3, 1996 (commencement of operations
of the fund) to July 31, 1998, a hypothetical $10,000 investment in
Class B of Technology would have grown to $ 16,103 , including
the effect of Class B's maximum CDSC.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
TECHNOLOGY - CLASS B INDICES
PERIOD ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF
INITIAL REINVESTED REINVESTED VALUE LIVING**
$10,000 DIVIDEND CAPITAL GAIN
INVESTMENT DISTRIBUTIONS DISTRIBUTIONS
1998 $ 14,280 $ 0 $ 1,823 $ 16,103 $ 17,695 $ 16,269 $ 10,375
1997* $ 15,880 $ 0 $ 101 $ 15,981 $ 14,835 $ 14,816 $ 10,203
</TABLE>
* From September 3, 1996 (commencement of operations)
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Class B of
Technology on September 3, 1996, the net amount invested in Class B
shares was $10,000. The cost of the initial investment ($10,000)
together with the aggregate cost of reinvested dividends and capital
gain distributions for the period covered (their cash value at the
time they were reinvested) amounted to $ 11,708 . If
distributions had not been reinvested, the amount of distributions
earned from the class over time would have been smaller, and cash
payments for the period would have amounted to $ 0 for dividends
and $ 1,660 for capital gain distributions. The figures in the
table do not include the effect of the fund's 1.00% short-term trading
fee applicable to shares held less than 60 days. Initial offering of
Class B 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.
During the period from September 3, 1996 (commencement of operations
of the fund) to July 31, 1998, a hypothetical $10,000 investment in
Class C of Technology would have grown to $ 16,481 , including
the effect of Class C's maximum CDSC.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
TECHNOLOGY - CLASS C INDICES
PERIOD ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF
INITIAL REINVESTED REINVESTED VALUE LIVING**
$10,000 DIVIDEND CAPITAL GAIN
INVESTMENT DISTRIBUTIONS DISTRIBUTIONS
1998 $ 14,638 $ 0 $ 1,843 $ 16,481 $ 17,695 $ 16,269 $ 10,375
1997* $ 15,880 $ 0 $ 101 $ 15,981 $ 14,835 $ 14,816 $ 10,203
</TABLE>
* From September 3, 1996 (commencement of operations)
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Class C of
Technology on September 3, 1996, the net amount invested in Class C
shares was $10,000. The cost of the initial investment ($10,000)
together with the aggregate cost of reinvested dividends and capital
gain distributions for the period covered (their cash value at the
time they were reinvested) amounted to $ 11,727 . If
distributions had not been reinvested, the amount of distributions
earned from the class over time would have been smaller, and cash
payments for the period would have amounted to $ 0 for dividends
and $ 1,677 for capital gain distributions. The figures in the
table do not include the effect of the fund's 1.00% short-term trading
fee applicable to shares held less than 60 days. Initial offering of
Class C took place on November 3, 1997. Class C returns 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.
During the period from September 3, 1996 (commencement of operations
of the fund) to July 31, 1998, a hypothetical $10,000 investment in
Institutional Class of Technology would have grown to $ 16,780 .
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
TECHNOLOGY - INSTITUTIONAL CLASS INDICES
PERIOD ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF
INITIAL REINVESTED REINVESTED VALUE LIVING**
$10,000 DIVIDEND CAPITAL GAIN
INVESTMENT DISTRIBUTIONS DISTRIBUTIONS
1998 $ 14,890 $ 0 $ 1,890 $ 16,780 $ 17,695 $ 16,269 $ 10,375
1997* $ 15,980 $ 0 $ 115 $ 16,095 $ 14,835 $ 14,816 $ 10,203
</TABLE>
* From September 3, 1996 (commencement of operations)
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in
Institutional Class of Technology on September 3, 1996, the net amount
invested in Institutional Class shares was $10,000. The cost of the
initial investment ($10,000) together with the aggregate cost of
reinvested dividends and capital gain distributions for the period
covered (their cash value at the time they were reinvested) amounted
to $ 11,751 . If distributions had not been reinvested, the
amount of distributions earned from the class over time would have
been smaller, and cash payments for the period would have amounted to
$ 0 for dividends and $ 1,700 for capital gain
distributions. The figures in the table do not include the effect of
the fund's 1.00% short-term trading fee applicable to shares held less
than 60 days.
During the period from September 3, 1996 (commencement of operations
of the fund) to July 31, 1998, a hypothetical $10,000 investment in
Class A of Utilities Growth would have grown to $ 16,716,
including the effect of Class A's 5.75% maximum sales charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
UTILITIES GROWTH - CLASS A INDICES
PERIOD ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF
INITIAL REINVESTED REINVESTED VALUE LIVING**
$10,000 DIVIDEND CAPITAL GAIN
INVESTMENT DISTRIBUTIONS DISTRIBUTIONS
1998 $ 15,080 $ 100 $ 1,536 $ 16,716 $ 17,695 $ 16,269 $ 10,375
1997* $ 12,318 $ 34 $ 123 $ 12,475 $ 14,835 $ 14,816 $ 10,203
</TABLE>
* From September 3, 1996 (commencement of operations)
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Class A of
Utilities Growth on September 3, 1996, assuming the 5.75% maximum
sales charge had been in effect, the net amount invested in Class A
shares was $ 9,425 . The cost of the initial investment ($10,000)
together with the aggregate cost of reinvested dividends and capital
gain distributions for the period covered (their cash value at the
time they were reinvested) amounted to $ 11,337 . If
distributions had not been reinvested, the amount of distributions
earned from the class over time would have been smaller, and cash
payments for the period would have amounted to $ 75 for
dividends and $ 1,235 for capital gain distributions. The
figures in the table do not include the effect of the fund's 1.00%
short-term trading fee applicable to shares held less than 60 days.
During the period from September 3, 1996 (commencement of operations
of the fund) to July 31, 1998, a hypothetical $10,000 investment in
Class T of Utilities Growth would have grown to $ 17,027 ,
including the effect of Class T's 3.50% maximum sales charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
UTILITIES GROWTH - CLASS T INDICES
PERIOD ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF
INITIAL REINVESTED REINVESTED VALUE LIVING**
$10,000 DIVIDEND CAPITAL GAIN
INVESTMENT DISTRIBUTIONS DISTRIBUTIONS
1998 $ 15,392 $ 78 $ 1,557 $ 17,027 $ 17,695 $ 16,269 $ 10,375
1997* $ 12,574 $ 34 $ 126 $ 12,734 $ 14,835 $ 14,816 $ 10,203
</TABLE>
* From September 3, 1996 (commencement of operations)
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Class T of
Utilities Growth on September 3, 1996, assuming the 3.50% maximum
sales charge had been in effect, the net amount invested in Class T
shares was $ 9,650 . The cost of the initial investment ($10,000)
together with the aggregate cost of reinvested dividends and capital
gain distributions for the period covered (their cash value at the
time they were reinvested) amounted to $11,338 . If
distributions had not been reinvested, the amount of distributions
earned from the class over time would have been smaller, and cash
payments for the period would have amounted to $ 58 for
dividends and $ 1,255 for capital gain distributions. The
figures in the table do not include the effect of the fund's 1.00%
short-term trading fee applicable to shares held less than 60 days.
During the period from September 3, 1996 (commencement of operations
of the fund) to July 31, 1998, a hypothetical $10,000 investment in
Class B of Utilities Growth would have grown to $ 17,120,
including the effect of Class B's maximum CDSC.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
UTILITIES GROWTH - CLASS B INDICES
PERIOD ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF
INITIAL REINVESTED REINVESTED VALUE LIVING**
$10,000 DIVIDEND CAPITAL GAIN
INVESTMENT DISTRIBUTIONS DISTRIBUTIONS
1998 $ 15,430 $ 93 $ 1,597 $ 17,120 $ 17,695 $ 16,269 $ 10,375
1997* $ 13,010 $ 35 $ 130 $ 13,175 $ 14,835 $ 14,816 $ 10,203
</TABLE>
* From September 3, 1996 (commencement of operations)
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Class B of
Utilities Growth on September 3, 1996, the net amount invested in
Class B shares was $10,000. The cost of the initial investment
($10,000) together with the aggregate cost of reinvested dividends and
capital gain distributions for the period covered (their cash value at
the time they were reinvested) amounted to $ 11,387 . If
distributions had not been reinvested, the amount of distributions
earned from the class over time would have been smaller, and cash
payments for the period would have amounted to $ 70 for
dividends and $ 1,290 for capital gain distributions. The
figures in the table do not include the effect of the fund's 1.00%
short-term trading fee applicable to shares held less than 60 days.
Initial offering of Class B 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.
During the period from September 3, 1996 (commencement of operations
of the fund) to July 31, 1998, a hypothetical $10,000 investment in
Class C of Utilities Growth would have grown to $ 17,525 ,
including the effect of Class C's maximum CDSC.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
UTILITIES GROWTH - CLASS C INDICES
PERIOD ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF
INITIAL REINVESTED REINVESTED VALUE LIVING**
$10,000 DIVIDEND CAPITAL GAIN
INVESTMENT DISTRIBUTIONS DISTRIBUTIONS
1998 $ 15,793 $ 117 $ 1,615 $ 17,525 $ 17,695 $ 16,269 $ 10,375
1997* $ 13,010 $ 35 $ 130 $ 13,175 $ 14,835 $ 14,816 $ 10,203
</TABLE>
* From September 3, 1996 (commencement of operations)
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Class C of
Utilities Growth on September 3, 1996, the net amount invested in
Class C shares was $10,000. The cost of the initial investment
($10,000) together with the aggregate cost of reinvested dividends and
capital gain distributions for the period covered (their cash value at
the time they were reinvested) amounted to $11,142 . If
distributions had not been reinvested, the amount of distributions
earned from the class over time would have been smaller, and cash
payments for the period would have amounted to $9 0 for
dividends and $ 1,306 for capital gain distributions. The
figures in the table do not include the effect of the fund's 1.00%
short-term trading fee applicable to shares held less than 60 days.
Initial offering of Class C took place on November 3, 1997. Class C
returns 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.
During the period from September 3, 1996 (commencement of operations
of the fund) to July 31, 1998, a hypothetical $10,000 investment in
Institutional Class of Utilities Growth would have grown to
$ 17,826 .
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
UTILITIES GROWTH - INSTITUTIONAL CLASS INDICES
PERIOD ENDED VALUE OF VALUE OF VALUE OF TOTAL S&P 500 DJIA COST OF
INITIAL REINVESTED REINVESTED VALUE LIVING**
$10,000 DIVIDEND CAPITAL GAIN
INVESTMENT DISTRIBUTIONS DISTRIBUTIONS
1998 $ 16,020 $ 170 $ 1,636 $ 17,826 $ 17,695 $ 16,269 $ 10,375
1997* $ 13,090 $ 47 $ 131 $ 13,268 $ 14,835 $ 14,816 $ 10,203
</TABLE>
* From September 3, 1996 (commencement of operations)
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in
Institutional Class of Utilities Growth on September 3, 1996, the net
amount invested in Institutional Class shares was $10,000. The cost of
the initial investment ($10,000) together with the aggregate cost of
reinvested dividends and capital gain distributions for the period
covered (their cash value at the time they were reinvested) amounted
to $ 11,472 . If distributions had not been reinvested, the
amount of distributions earned from the class over time would have
been smaller, and cash payments for the period would have amounted to
$ 130 for dividends and $ 1,310 for capital gain
distributions. The figures in the table do not include the effect of
the fund's 1.00% short-term trading fee applicable to shares held less
than 60 days.
PERFORMANCE COMPARISONS. A class's performance may be compared to the
performance of other mutual funds in general, or to the performance of
particular types of mutual funds. These comparisons may be expressed
as mutual fund rankings prepared by Lipper Analytical Services, Inc.
(Lipper), an independent service located in Summit, New Jersey that
monitors the performance of mutual funds. Generally, Lipper rankings
are based on total return, assume reinvestment of distributions, do
not take sales charges or trading fees into consideration, and are
prepared without regard to tax consequences. In addition to the mutual
fund rankings, a class's performance may be compared to stock, bond,
and money market mutual fund performance indices prepared by Lipper or
other organizations. When comparing these indices, it is important to
remember the risk and return characteristics of each type of
investment. For example, while stock mutual funds may offer higher
potential returns, they also carry the highest degree of share price
volatility. Likewise, money market funds may offer greater stability
of principal, but generally do not offer the higher potential returns
available from stock mutual funds.
From time to time, a class's performance may also be compared to other
mutual funds tracked by financial or business publications and
periodicals. For example, a fund may quote Morningstar, Inc. in its
advertising materials. Morningstar, Inc. is a mutual fund rating
service that rates mutual funds on the basis of risk-adjusted
performance. Rankings that compare the performance of Fidelity funds
to one another in appropriate categories over specific periods of time
may also be quoted in advertising.
A class's performance may also be compared to that of a benchmark
index representing the universe of securities in which the fund may
invest. The total return of a benchmark index reflects reinvestment of
all dividends and capital gains paid by securities included in the
index. Unlike a class's returns, however, the index returns do not
reflect brokerage commissions, transaction fees, or other costs of
investing directly in the securities included in the index.
Each fund may compare its performance to that of the Standard & Poor's
500 Index, a widely recognized, unmanaged index of common stocks.
Consumer Industries may also compare its performance to that of the
Goldman Sachs Consumer Industries Index, a market
capitalization-weighted index of 300 stocks designed to measure the
performance of companies in the consumer industries sector. Issues in
the index include providers of consumer services and products,
including producers of beverages - alcoholic and non-alcoholic, food -
packaged and processed, personal care and household products, and
tobacco companies. Also includes retailers of food and drugs,
specialty apparel and accessories, and hardlines, providers of
entertainment and leisure facilities, lodging and accommodations,
restaurants and pubs, business services and media services including
publishing, broadcasting, and advertising.
Cyclical Industries may also compare its performance to that of the
Goldman Sachs Cyclical Industries Index, a market
capitalization-weighted index of 277 stocks designed to measure the
performance of companies in the cyclical industries sector. Issues in
the index include providers of consumer and commercial goods and
services where performance is influenced by the cyclicality of
economy; manufacturers of automobiles and companies involved with
construction of residential and commercial properties. Also includes
producers of chemicals - specialty, hybrid, and commodity, steel -
processors, specialty and stainless, producers of electrical equipment
and components; providers of environmental services - waste
management, water treatment and manufacturers of machinery, commercial
vehicles and packaging containers - metal, paperboard, glass, and
plastic; providers of transportation services - air, ground,
water.
Financial Services may also compare its performance to that of the
Goldman Sachs Financial Services Index, a market
capitalization-weighted index of 271 stocks designed to measure the
performance of companies in the financial services sector. Issues in
the index include financial institutions providing banking services -
regional, trust, money centers; commercial and consumer finance
services - including credit cards, savings and loans, and mortgage
finance. Also includes brokerage firms and asset managers, insurance
companies including brokers, life insurance, property and casualty,
disability and re-insurance; real estate holding and development
companies, property agencies and investment trusts.
Health Care may also compare its performance to that of the Goldman
Sachs Health Care Index, a market capitalization-weighted index of 93
stocks designed to measure the performance of companies in the health
care sector. Issues in the index include providers of health care
related services including long term care and hospital facilities,
health care management organizations and continuing care services.
Also includes researchers, manufacturers and distributors of
pharmaceuticals, drugs and related sciences, and medical supplies,
instruments and products, including biotechnology companies - those
companies involved in the use of molecular biology, small molecule
engineering, genetic engineering, and other scientific modalities to
target diseases of immunology, hematology, oncology, and other orphan
drug categories.
Natural Resources may also compare its performance to that of the
Goldman Sachs Natural Resources Index, a market
capitalization-weighted index of 96 stocks designed to measure the
performance of companies in the natural resource sector. Issues in the
index include extractive industries including gold and precious metals
mining along with other mineral mining. Also includes energy companies
providing oil and gas services, exploration and production and
integrated services including refining, distributing and supply;
owners and operators of timber tracts, forestry services and producer
of pulp and paper and owners of plantations.
Technology may also compare its performance to that of the Goldman
Sachs Technology Index, a market capitalization-weighted index of 190
stocks designed to measure the performance of companies in the
technology sector. Issues in the index include producers of
sophisticated devices, services and software related to the fields of
computers, electronics, networking and Internet services. Also
includes producers of computer and Internet software, consultants for
information technology and providers of computer services.
Utilities Growth may also compare its performance to that of the
Goldman Sachs Utilities Index, a market capitalization-weighted index
of 136 stocks designed to measure the performance of companies in the
utilities sector. Issues in the index include generators and
distributors of electricity, distributors of natural gas and water.
Also includes providers of telecommunications services, both fixed
line networks and wireless/mobile networks.
A class may be compared in advertising to Certificates of Deposit
(CDs) or other investments issued by banks or other depository
institutions. Mutual funds differ from bank investments in several
respects. For example, a fund may offer greater liquidity or higher
potential returns than CDs, a fund does not guarantee your principal
or your return, and fund shares are not FDIC insured.
Fidelity may provide information designed to help individuals
understand their investment goals and explore various financial
strategies. Such information may include information about current
economic, market, and political conditions; materials that describe
general principles of investing, such as asset allocation,
diversification, risk tolerance, and goal setting; questionnaires
designed to help create a personal financial profile; worksheets used
to project savings needs based on assumed rates of inflation and
hypothetical rates of return; and action plans offering investment
alternatives. Materials may also include discussions of Fidelity's
asset allocation funds and other Fidelity funds, products, and
services.
Ibbotson Associates of Chicago, Illinois (Ibbotson) provides
historical returns of the capital markets in the United States,
including common stocks, small capitalization stocks, long-term
corporate bonds, intermediate-term government bonds, long-term
government bonds, Treasury bills, the U.S. rate of inflation (based on
the CPI), and combinations of various capital markets. The performance
of these capital markets is based on the returns of different indices.
Fidelity funds may use the performance of these capital markets in
order to demonstrate general risk-versus-reward investment scenarios.
Performance comparisons may also include the value of a hypothetical
investment in any of these capital markets. The risks associated with
the security types in any capital market may or may not correspond
directly to those of the funds. Ibbotson calculates total returns in
the same method as the funds. The funds may also compare performance
to that of other compilations or indices that may be developed and
made available in the future.
In advertising materials, Fidelity may reference or discuss its
products and services, which may include other Fidelity funds;
retirement investing; model portfolios or allocations; and saving for
college or other goals. In addition, Fidelity may quote or reprint
financial or business publications and periodicals, as they relate to
current economic and political conditions, fund management, portfolio
composition, investment philosophy, investment techniques, the
desirability of owning a particular mutual fund, and Fidelity services
and products.
Each fund may be advertised as part of certain asset allocation
programs involving other Fidelity or non-Fidelity mutual funds. These
asset allocation programs may advertise a model portfolio and its
performance results.
Each fund may be advertised as part of a no transaction fee (NTF)
program in which Fidelity and non-Fidelity mutual funds are offered.
An NTF program may advertise performance results.
A class may present its fund number, Quotron(trademark) number, and
CUSIP number, and discuss or quote the fund's current portfolio
manager.
VOLATILITY. A class may quote various measures of volatility and
benchmark correlation in advertising. In addition, the fund may
compare these measures to those of other funds. Measures of volatility
seek to compare a class's historical share price fluctuations or total
returns to those of a benchmark. Measures of benchmark correlation
indicate how valid a comparative benchmark may be. All measures of
volatility and correlation are calculated using averages of historical
data.
MOMENTUM INDICATORS indicate a class's price movements over specific
periods of time. Each point on the momentum indicator represents a
class's percentage change in price movements over that period.
A fund may advertise examples of the effects of periodic investment
plans, including the principle of dollar cost averaging. In such a
program, an investor invests a fixed dollar amount in a fund at
periodic intervals, thereby purchasing fewer shares when prices are
high and more shares when prices are low. While such a strategy does
not assure a profit or guard against loss in a declining market, the
investor's average cost per share can be lower than if fixed numbers
of shares are purchased at the same intervals. In evaluating such a
plan, investors should consider their ability to continue purchasing
shares during periods of low price levels.
A fund may be available for purchase through retirement plans or other
programs offering deferral of, or exemption from, income taxes, which
may produce superior after-tax returns over time. For example, a
$1,000 investment earning a taxable return of 10% annually would have
an after-tax value of $1,949 after ten years, assuming tax was
deducted from the return each year at a 31% rate. An equivalent
tax-deferred investment would have an after-tax value of $2,100 after
ten years, assuming tax was deducted at a 31% rate from the
tax-deferred earnings at the end of the ten-year period.
As of July 31, 1998, FMR advised over $ 31 billion in municipal
fund assets, $ 107 billion in money market fund assets,
$ 460 billion in equity fund assets, $ 71 billion in
international fund assets, and $ 27 billion in
Spartan(registered trademark) fund assets. The funds may reference the
growth and variety of money market mutual funds and the adviser's
innovation and participation in the industry. The equity funds under
management figure represents the largest amount of equity fund assets
under management by a mutual fund investment adviser in the United
States, making FMR America's leading equity (stock) fund manager. FMR,
its subsidiaries, and affiliates maintain a worldwide information and
communications network for the purpose of researching and managing
investments abroad.
ADDITIONAL PURCHASE, EXCHANGE AND REDEMPTION INFORMATION
CLASS A SHARES ONLY
Pursuant to Rule 22d-1 under the 1940 Act, FDC exercises its right to
waive Class A's front-end sales charge in connection with a fund's
merger with or acquisition of any investment company or trust. In
addition, FDC has chosen to waive Class A's front-end sales charge in
certain instances because of efficiencies in those sales of shares.
The sales charge will not apply:
1. to shares purchased for an insurance company separate account used
to fund annuity contracts for employee benefit plans (including 403(b)
programs, but otherwise as defined in ERISA);
2. to shares purchased by a trust institution or bank trust department
for a managed account that is charged an asset-based fee. Employee
benefit plans (including 403(b) programs, but otherwise as defined in
ERISA) and accounts managed by third parties do not qualify for this
waiver;
3. to shares purchased by a broker-dealer for a managed account that
is charged an asset-based fee. Employee benefit plans (including
403(b) programs, but otherwise as defined in ERISA) do not qualify for
this waiver;
4. to shares purchased by a registered investment adviser 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 (including 403(b) programs,
but otherwise as defined in ERISA) do not qualify for this waiver;
5. to shares purchased for (i) an employee benefit plan (including
403(b) programs, but otherwise as defined in ERISA) having $25 million
or more in plan assets or (ii) an employee benefit plan (including
403(b) programs, but otherwise as defined in ERISA) 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. to shares 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 sales load waiver form must accompany these transactions.
CLASS T SHARES ONLY
Pursuant to Rule 22d-1 under the 1940 Act, FDC exercises its right to
waive Class T's front-end sales charge in connection with a fund's
merger with or acquisition of any investment company or trust. In
addition, FDC has chosen to waive Class T's front-end sales charge in
certain instances because of efficiencies in those sales of shares.
The sales charge will not apply:
1. to shares purchased for an insurance company separate account used
to fund annuity contracts for employee benefit plans (including 403(b)
programs, but otherwise as defined in ERISA);
2. to shares 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. to shares purchased by a broker-dealer for a managed account that
is charged an asset-based fee;
4. to shares purchased by a registered investment adviser 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. to shares purchased for an employee benefit plan (as defined by
ERISA (except SIMPLE IRA, SEP, and SARSEP plans and plans covering
self-employed individuals and their employees (formerly, Keogh/H.R. 10
plans), but including 403(b) programs));
6. to shares purchased for a Fidelity or Fidelity Advisor account
(including purchases by exchange) with the proceeds of a distribution
from (i) an insurance company separate account used to fund annuity
contracts for employee benefit plans (including 403(b) programs, but
otherwise as defined in ERISA) that are invested in Fidelity Advisor
or Fidelity funds or (ii) an employee benefit plan (including 403(b)
programs, but otherwise as defined in ERISA) 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. to shares purchased for any state, county, or city, or any
governmental instrumentality, department, authority or agency;
8. to shares purchased with redemption proceeds from other mutual fund
complexes on which the investor has paid a front-end or contingent
deferred sales charge;
9. to shares 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 Fidelity International Limited (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. to shares 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. to shares 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. to shares 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. to shares purchased with distributions of income, principal, and
capital gains from Fidelity Defined Trusts; or
14. to shares 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.
A sales load waiver form must accompany these transactions.
CLASS B AND CLASS C SHARES ONLY
The contingent deferred sales charge (CDSC) on Class B and Class C
shares may be waived (1) in the case 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 70 1/2, 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 (including 403(b)
programs , but otherwise as defined by ERISA).
A sales load waiver form must accompany these transactions.
INSTITUTIONAL CLASS SHARES ONLY
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 (including 403(b) programs, but otherwise as defined by
ERISA) 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. Current or former Trustees or officers of a Fidelity fund or
current or retired officers, directors, or regular employees of FMR
Corp. or FIL or their direct or indirect subsidiaries (Fidelity
Trustee or employee), spouses of Fidelity Trustees or employees,
Fidelity Trustees or employees acting as a custodian for a minor
child, or persons acting as trustee of a trust for the sole benefit of
the minor child of a Fidelity Trustee or employee.
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.
FOR CLASS A AND CLASS T SHARES ONLY
FINDER'S FEE. For all funds, 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, or
(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. Except as provided below, Class A eligible
purchases are the following purchases made through broker-dealers and
banks: an individual trade of $25 million or more; an individual trade
of $1 million or more that is load waived; a trade which brings the
value of the accumulated account(s) of an investor (including an
employee benefit plan (including 403(b) programs, but otherwise as
defined by ERISA)) past $25 million; a load waived trade that brings
the value of the accumulated account(s) of an investor (including an
employee benefit plan (including 403(b) programs, but otherwise as
defined by ERISA)) past $1 million; a trade for an investor with an
accumulated account value of $25 million or more; a load waived trade
for an investor with an accumulated account value of $1 million or
more; an incremental trade toward an investor's $25 million "Letter of
Intent"; and an incremental load waived trade toward an investor's $1
million "Letter of Intent . " Except as provided below, Class T
eligible purchases are the following purchases made through
broker-dealers and banks: an individual trade of $1 million or more; a
trade which brings the value of the accumulated account(s) of an
investor (including an employee benefit plan (including 403(b)
programs, but otherwise as defined by ERISA)) past $1 million; a trade
for an investor with an accumulated account value of $1 million or
more; and an incremental trade toward an investor's $1 million "Letter
of Intent."
For the purpose of determining the availability of Class A or Class T
finder's fees, purchases of Class A or Class T shares made with the
proceeds from the redemption of shares of any Fidelity fund will not
be considered "eligible purchases."
Any assets on which a finder's fee has been paid will bear a
contingent deferred sales charge (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 shares that have been held for the longest
period of time.
With respect to employee benefit plans (including 403(b) programs, but
otherwise as defined by ERISA), 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 1/2.
CLASS A, CLASS T, CLASS B, AND CLASS C SHARES ONLY
QUANTITY DISCOUNTS. To obtain a reduction of the front-end sales
charge on Class A or Class T shares, you or your investment
professional must notify Fidelity at the time of purchase whenever a
quantity discount is applicable to your purchase. Upon such
notification, you will receive the lowest applicable front-end sales
charge.
For purposes of qualifying for a reduction in front-end sales charges
under the Combined Purchase, Rights of Accumulation or Letter of
Intent programs, the following may qualify as an individual or a
"company" as defined in Section 2(a)(8) of the 1940 Act: an
individual, spouse, and their children under age 21 purchasing for
his, her, or their own account; a trustee, administrator or other
fiduciary purchasing for a single trust estate or a single fiduciary
account or for a single or a parent-subsidiary group of "employee
benefits plans" (as defined in Section 3(3) of ERISA); and tax-exempt
organizations as defined under Section 501(c)(3) of the Internal
Revenue Code.
RIGHTS OF ACCUMULATION permit reduced front-end sales charges on any
future purchases of Class A or Class T shares after you have reached a
new breakpoint in a fund's sales charge schedule. The value of
currently held (i) Fidelity Advisor fund Class A, Class T, Class B and
Class C shares, (ii) Advisor B Class and 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, is determined at the current day's NAV at the close of business,
and is added to the amount of your new purchase valued at the current
offering price to determine your reduced front-end sales charge.
LETTER OF INTENT. You may obtain Class A or Class T shares at the same
reduced front-end sales charge by filing a non-binding Letter of
Intent (Letter) within 90 days of the start of Class A or Class T
purchases. Each Class A or Class T investment you make after signing
the Letter will be entitled to the front-end sales charge applicable
to the total investment indicated in the Letter. For example, a $2,500
purchase of Class A or Class T shares toward a $50,000 Letter would
receive the same reduced sales charge as if the $50,000 had been
invested at one time. Purchases of Class B and Class C shares during
the 13-month period also will count toward the completion of the
Letter. To ensure that you receive a reduced front-end sales charge on
future purchases, you or your investment professional must inform
Fidelity that the Letter is in effect each time Class A or Class T
shares are purchased. Reinvested income and capital gain distributions
do not count toward the completion of the Letter.
Your initial investment must be at least 5% of the total amount you
plan to invest. Out of the initial purchase, 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. The Class A or Class T
shares held in escrow cannot be redeemed or exchanged until the Letter
is satisfied or the additional sales charges have been paid. You will
earn income dividends and capital gain distributions on escrowed Class
A or Class T shares. The escrow will be released when your purchase of
the total amount has been completed. You are not obligated to complete
the Letter.
If you purchase more than the amount specified in the Letter and
qualify for a future front-end sales charge reduction, the front-end
sales charge will be adjusted to reflect your total purchase at the
end of 13 months. Surplus funds will be applied to the purchase of
additional Class A or Class T shares at the then-current offering
price applicable to the total purchase.
If you do not complete your purchase under the Letter within the
13-month period, 30 days' written notice will be provided for you to
pay the increased front-end sales charges due. Otherwise, sufficient
escrowed Class A or Class T shares will be redeemed to pay such
charges.
FIDELITY ADVISOR SYSTEMATIC INVESTMENT PROGRAM. You can make regular
investments in Class A, Class T, Class B, Class C , or Institutional
Class shares of the funds monthly, bimonthly, quarterly, or
semi-annually with the Systematic Investment Program by completing the
appropriate section of the account application and attaching a voided
personal check with your bank's magnetic ink coding number across the
front. If your bank account is jointly owned, be sure that all owners
sign.
You may cancel your participation in the Systematic Investment Program
at any time without payment of a cancellation fee. You will receive a
confirmation from the transfer agent for every transaction, and a
debit entry will appear on your bank statement.
FIDELITY ADVISOR SYSTEMATIC WITHDRAWAL PROGRAM. If you own Class A,
Class T, or Institutional Class shares worth $10,000 or more, you can
have monthly, quarterly or semi-annual checks sent from your account
to you, to a person named by you, or to your bank checking account. If
you own Class B or Class C shares worth $10,000 or more you can have
monthly or quarterly checks sent from your account to you, to a person
named by you, or to your bank checking account. Aggregate redemptions
per 12-month period from your Class B or Class C account may not
exceed 10% of the value of the account and are not subject to a CDSC;
and you may set your withdrawal amount as a percentage of the value of
your account or a fixed dollar amount. Your Systematic Withdrawal
Program payments are drawn from Class A, Class T, Class B, Class C, or
Institutional Class share redemptions, as applicable. If Systematic
Withdrawal Plan redemptions exceed income dividends earned on your
shares, your account eventually may be exhausted.
ALL CLASSES
Each fund is open for business and each class's NAV is calculated each
day the NYSE is open for trading. The NYSE has designated the
following holiday closings for 1998: New Year's Day, Martin Luther
King's Birthday, Presidents' Day, Good Friday, Memorial Day,
Independence Day (observed), Labor Day, Thanksgiving Day, and
Christmas Day. Although FMR expects the same holiday schedule to be
observed in the future, the NYSE may modify its holiday schedule at
any time. In addition, on days when the Federal Reserve Wire System is
closed, federal funds wires cannot be sent.
FSC normally determines each class's NAV as of the close of the NYSE
(normally 4:00 p.m. Eastern time). However, NAV may be calculated
earlier if trading on the NYSE is restricted or as permitted by the
SEC. To the extent that portfolio securities are traded in other
markets on days when the NYSE is closed, a class's NAV may be affected
on days when investors do not have access to the fund to purchase or
redeem shares. In addition, trading in some of a fund's portfolio
securities may not occur on days when the fund is open for business.
If the Trustees determine that existing conditions make cash payments
undesirable, redemption payments may be made in whole or in part in
securities or other property, valued for this purpose as they are
valued in computing each class's NAV. Shareholders receiving
securities or other property on redemption may realize a gain or loss
for tax purposes, and will incur any costs of sale, as well as the
associated inconveniences.
Pursuant to Rule 11a-3 under the 1940 Act, each fund is required to
give shareholders at least 60 days' notice prior to terminating or
modifying its exchange privilege. Under the Rule, the 60-day
notification requirement may be waived if (i) the only effect of a
modification would be to reduce or eliminate an administrative fee,
redemption fee, or deferred sales charge ordinarily payable at the
time of an exchange, or (ii) the fund suspends the redemption of the
shares to be exchanged as permitted under the 1940 Act or the rules
and regulations thereunder, or the fund to be acquired suspends the
sale of its shares because it is unable to invest amounts effectively
in accordance with its investment objective and policies.
In the Prospectus, each fund has notified shareholders that it
reserves the right at any time, without prior notice, to refuse
exchange purchases by any person or group if, in FMR's judgment, the
fund would be unable to invest effectively in accordance with its
investment objective and policies, or would otherwise potentially be
adversely affected.
DISTRIBUTIONS AND TAXES
DIVIDENDS. A portion of each fund's income may qualify for the
dividends-received deduction available to corporate shareholders to
the extent that the fund's income is derived from qualifying
dividends. Because each fund may earn other types of income, such as
interest, income from securities loans, non-qualifying dividends, and
short-term capital gains, the percentage of dividends from the fund
that qualifies for the deduction generally will be less than 100%.
Each fund will notify corporate shareholders annually of the
percentage of fund dividends that qualifies for the dividends-received
deduction. A portion of each fund's dividends derived from certain
U.S. Government securities may be exempt from state and local
taxation. Gains (losses) attributable to foreign currency fluctuations
are generally taxable as ordinary income, and therefore will increase
(decrease) dividend distributions. If a fund's distributions exceed
its net investment company taxable income during a taxable year, all
or a portion of the distributions made in the same taxable year would
be recharacterized as a return of capital to shareholders, thereby
reducing each shareholder's cost basis in the fund. Short-term capital
gains are distributed as dividend income. Each fund will send each
shareholder a notice in January describing the tax status of dividends
and capital gain distributions for the prior year.
CAPITAL GAIN DISTRIBUTIONS. Long-term capital gains earned by each
fund on the sale of securities and distributed to shareholders are
federally taxable as long-term capital gains, regardless of the length
of time shareholders have held their shares. If a shareholder receives
a capital gain distribution on shares of a fund, and such shares are
held six months or less and are sold at a loss, the portion of the
loss equal to the amount of the capital gain distribution will be
considered a long-term loss for tax purposes. Short-term capital gains
distributed by each fund are taxable to shareholders as dividends, not
as capital gains.
As of July 31, 1998, Consumer Industries hereby designates
approximately $ 37,000 as a capital gain dividend for the
purpose of the dividend-paid deduction.
As of July 31, 1998, Cyclical Industries hereby designates
approximately $ 67,000 as a capital gain dividend for the
purpose of the dividend-paid deduction.
As of July 31, 1998, Financial Services hereby designates
approximately $ 602,000 as a capital gain dividend for the
purpose of the dividend-paid deduction.
As of July 31, 1998, Health Care hereby designates approximately
$ 488,000 as a capital gain dividend for the purpose of the
dividend-paid deduction.
As of July 31, 1998, Natural Resources hereby designates approximately
$ 68,594,000 as a capital gain dividend for the purpose of the
dividend-paid deduction.
As of July 31, 1998, Utilities Growth hereby designates approximately
$236,000 as a capital gain dividend for the purpose of the
dividend-paid deduction.
FOREIGN TAXES. Foreign governments may withhold taxes on dividends and
interest paid with respect to foreign securities. Foreign governments
may also impose taxes on other payments or gains with respect to
foreign securities. Because each fund does not currently anticipate
that securities of foreign issuers will constitute more than 50% of
its total assets at the end of its fiscal year, shareholders should
not expect to claim a foreign tax credit or deduction on their federal
income tax returns with respect to foreign taxes withheld.
TAX STATUS OF THE FUNDS. Each fund intends to qualify each year as a
"regulated investment company" for tax purposes so that it will not be
liable for federal tax on income and capital gains distributed to
shareholders. In order to qualify as a regulated investment company
and avoid being subject to federal income or excise taxes at the fund
level, each fund intends to distribute substantially all of its net
investment income and net realized capital gains within each calendar
year as well as on a fiscal year basis, and intends to comply with
other tax rules applicable to regulated investment companies.
Each fund is treated as a separate entity from the other funds, if
any, of its trust for tax purposes.
If a fund purchases shares in certain foreign investment entities,
defined as passive foreign investment companies (PFICs) in the
Internal Revenue Code, it may be subject to U.S. federal income tax on
a portion of any excess distribution or gain from the disposition of
such shares. Interest charges may also be imposed on a fund with
respect to deferred taxes arising from such distributions or gains.
Generally, a fund will elect to mark-to-market any PFIC shares.
Unrealized gains will be recognized as income for tax purposes and
must be distributed to shareholders as dividends.
OTHER TAX INFORMATION. The information above is only a summary of some
of the tax consequences generally affecting each fund and its
shareholders, and no attempt has been made to discuss individual tax
consequences. In addition to federal income taxes, shareholders may be
subject to state and local taxes on fund distributions, and shares may
be subject to state and local personal property taxes. Investors
should consult their tax advisers to determine whether a fund is
suitable to their particular tax situation.
FMR
All of the stock of FMR is owned by FMR Corp., its parent organized in
1972. The voting common stock of FMR Corp. is divided into two
classes. Class B is held predominantly by members of the Edward C.
Johnson 3d family and is entitled to 49% of the vote on any matter
acted upon by the voting common stock. Class A is held predominantly
by non-Johnson family member employees of FMR Corp. and its affiliates
and is entitled to 51% of the vote on any such matter. The Johnson
family group and all other Class B shareholders have entered into a
shareholders' voting agreement under which all Class B shares will be
voted in accordance with the majority vote of Class B shares. Under
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, through their ownership of voting common stock and
the execution of the shareholders' voting agreement, members of the
Johnson family may be deemed, under the 1940 Act, to form a
controlling group with respect to FMR Corp.
At present, the principal operating activities of FMR Corp. are those
conducted by its division, Fidelity Investments Retail Marketing
Company, which provides marketing services to various companies within
the Fidelity organization.
Fidelity investment personnel may invest in securities for their own
accounts pursuant to a code of ethics that sets forth all employees'
fiduciary responsibilities regarding the funds, establishes procedures
for personal investing and restricts certain transactions. For
example, all personal trades in most securities require pre-clearance,
and participation in initial public offerings is prohibited. In
addition, restrictions on the timing of personal investing in relation
to trades by Fidelity funds and on short-term trading have been
adopted.
TRUSTEES AND OFFICERS
The Trustees, Members of the Advisory Board, and executive officers of
the trust are listed below. Except as indicated, each individual has
held the office shown or other offices in the same company for the
last five years. All persons named as Trustees and Members of the
Advisory Board also serve in similar capacities for other funds
advised by FMR. The business address of each Trustee, Member of the
Advisory Board, and officer who is an "interested person" (as defined
in the Investment Company Act of 1940) is 82 Devonshire Street,
Boston, Massachusetts 02109, which is also the address of FMR. The
business address of all the other Trustees is Fidelity Investments,
P.O. Box 9235, Boston, Massachusetts 02205-9235. Those Trustees who
are "interested persons" by virtue of their affiliation with either
the trust or FMR are indicated by an asterisk (*).
*EDWARD C. JOHNSON 3d (68), Trustee and President, is Chairman, Chief
Executive Officer and a Director of FMR Corp.; a Director and Chairman
of the Board and of the Executive Committee of FMR; Chairman and a
Director of Fidelity Investments Money Management, Inc. (1998),
Fidelity Management & Research (U.K.) Inc., and Fidelity Management &
Research (Far East) Inc.
J. GARY BURKHEAD (57), Member of the Advisory Board (1997), is Vice
Chairman and a Member of the Board of Directors of FMR Corp. (1997)
and President of Fidelity Personal Investments and Brokerage Group
(1997). Previously, Mr. Burkhead served as President of Fidelity
Management & Research Company.
RALPH F. COX (66), Trustee, is President of RABAR Enterprises
(management consulting-engineering industry, 1994). Prior to February
1994, he was President of Greenhill Petroleum Corporation (petroleum
exploration and production). Until March 1990, Mr. Cox was President
and Chief Operating Officer of Union Pacific Resources Company
(exploration and production). He is a Director of USA Waste Services,
Inc. (non-hazardous waste, 1993), CH2M Hill Companies (engineering),
Rio Grande, Inc. (oil and gas production), and Daniel Industries
(petroleum measurement equipment manufacturer). In addition, he is a
member of advisory boards of Texas A&M University and the University
of Texas at Austin.
PHYLLIS BURKE DAVIS (66), Trustee. Prior to her retirement in
September 1991, Mrs. Davis was the Senior Vice President of Corporate
Affairs of Avon Products, Inc. She is currently a Director of
BellSouth Corporation (telecommunications), Eaton Corporation
(manufacturing, 1991), and the TJX Companies, Inc. (retail stores),
and previously served as a Director of Hallmark Cards, Inc.
(1985-1991) and Nabisco Brands, Inc. In addition, she is a member of
the President's Advisory Council of The University of Vermont School
of Business Administration.
ROBERT M. GATES (54), Trustee (1997), is a consultant, author, and
lecturer (1993). Mr. Gates was Director of the Central Intelligence
Agency (CIA) from 1991-1993. From 1989 to 1991, Mr. Gates served as
Assistant to the President of the United States and Deputy National
Security Advisor. Mr. Gates is a Director of LucasVarity PLC
(automotive components and diesel engines), Charles Stark Draper
Laboratory (non-profit), NACCO Industries, Inc. (mining and
manufacturing), and TRW Inc. (original equipment and replacement
products). Mr. Gates also is a Trustee of the Forum for International
Policy and of the Endowment Association of the College of William and
Mary. In addition, he is a member of the National Executive Board of
the Boy Scouts of America.
E. BRADLEY JONES (70), Trustee. Prior to his retirement in 1984, Mr.
Jones was Chairman and Chief Executive Officer of LTV Steel Company.
He is a Director of TRW Inc. (original equipment and replacement
products), Consolidated Rail Corporation, Birmingham Steel
Corporation, and RPM, Inc. (manufacturer of chemical products), and he
previously served as a Director of NACCO Industries, Inc. (mining and
manufacturing, 1985-1995), Hyster-Yale Materials Handling, Inc.
(1985-1995), and Cleveland-Cliffs Inc. (mining), and as a Trustee of
First Union Real Estate Investments. In addition, he serves as a
Trustee of the Cleveland Clinic Foundation, where he has also been a
member of the Executive Committee as well as Chairman of the Board and
President, a Trustee and member of the Executive Committee of
University School (Cleveland), and a Trustee of Cleveland Clinic
Florida.
DONALD J. KIRK (65), Trustee, is Executive-in-Residence (1995) at
Columbia University Graduate School of Business and a financial
consultant. From 1987 to January 1995, Mr. Kirk was a Professor at
Columbia University Graduate School of Business. Prior to 1987, he was
Chairman of the Financial Accounting Standards Board. Mr. Kirk is a
Director of General Re Corporation (reinsurance), and he previously
served as a Director of Valuation Research Corp. (appraisals and
valuations, 1993-1995). In addition, he serves as Chairman of the
Board of Directors of National Arts Stabilization Inc. ,
Chairman of the Board of Trustees of the Greenwich Hospital
Association, Director of the Yale-New Haven Health Services Corp.
(1998), a Member of the Public Oversight Board of the American
Institute of Certified Public Accountants' SEC Practice Section
(1995), and as a Public Governor of the National Association of
Securities Dealers, Inc. (1996).
*PETER S. LYNCH (55), Trustee, is Vice Chairman and Director of FMR.
Prior to May 31, 1990, he was a Director of FMR and Executive Vice
President of FMR (a position he held until March 31, 1991); Vice
President of Fidelity Magellan Fund and FMR Growth Group Leader; and
Managing Director of FMR Corp. Mr. Lynch was also Vice President of
Fidelity Investments Corporate Services (1991-1992). In addition, he
serves as a Trustee of Boston College, Massachusetts Eye & Ear
Infirmary, Historic Deerfield (1989) and Society for the Preservation
of New England Antiquities, and as an Overseer of the Museum of Fine
Arts of Boston.
WILLIAM O. McCOY (64), Trustee (1997), is the Vice President of
Finance for the University of North Carolina (16-school system, 1995).
Prior to his retirement in December 1994, Mr. McCoy was Vice Chairman
of the Board of BellSouth Corporation (telecommunications, 1984) and
President of BellSouth Enterprises (1986). He is currently a Director
of Liberty Corporation (holding company, 1984), Weeks Corporation of
Atlanta (real estate, 1994), Carolina Power and Light Company
(electric utility, 1996), and the Kenan Transport Co. (1996).
Previously, he was a Director of First American Corporation (bank
holding company, 1979-1996). In addition, Mr. McCoy serves as a member
of the Board of Visitors for the University of North Carolina at
Chapel Hill (1994) and for the Kenan-Flager Business School
(University of North Carolina at Chapel Hill, 1988).
GERALD C. McDONOUGH (70), Trustee and Chairman of the non-interested
Trustees, is Chairman of G.M. Management Group (strategic advisory
services). Mr. McDonough is a Director of York International Corp.
(air conditioning and refrigeration), Commercial Intertech Corp.
(hydraulic systems, building systems, and metal products, 1992), CUNO,
Inc. (liquid and gas filtration products, 1996), and Associated
Estates Realty Corporation (a real estate investment trust, 1993). Mr.
McDonough served as a Director of ACME-Cleveland Corp. (metal working,
telecommunications, and electronic products) from 1987-1996 and
Brush-Wellman Inc. (metal refining) from 1983-1997.
MARVIN L. MANN (65), Trustee (1993), is Chairman of the Board
of Lexmark International, Inc. (office machines, 1991). Prior to
1991, he held the positions of Vice President of International
Business Machines Corporation ("IBM") and President and General
Manager of various IBM divisions and subsidiaries. Mr. Mann is a
Director of M.A. Hanna Company (chemicals, 1993) and Imation
Corp. (imaging and information storage, 1997) .
*ROBERT C. POZEN (51), Trustee (1997) and Senior Vice President, is
also President and a Director of FMR (1997); and President and a
Director of Fidelity Investments Money Management, Inc. (1998),
Fidelity Management & Research (U.K.) Inc. (1997), and Fidelity
Management & Research (Far East) Inc. (1997). Previously, Mr. Pozen
served as General Counsel, Managing Director, and Senior Vice
President of FMR Corp.
THOMAS R. WILLIAMS (69), Trustee, is President of The Wales Group,
Inc. (management and financial advisory services). Prior to retiring
in 1987, Mr. Williams served as Chairman of the Board of First
Wachovia Corporation (bank holding company), and Chairman and Chief
Executive Officer of The First National Bank of Atlanta and First
Atlanta Corporation (bank holding company). He is currently a Director
of ConAgra, Inc. (agricultural products), Georgia Power Company
(electric utility), National Life Insurance Company of Vermont,
American Software, Inc., and AppleSouth, Inc. (restaurants, 1992).
ERIC D. ROITER (49), Secretary (1998), is Vice President (1998) and
General Counsel of FMR (1998). Mr. Roiter was an Adjunct
Member, Faculty of Law, at Columbia University Law School (1996-1997).
Prior to joining Fidelity, Mr. Roiter was a partner at Debevoise &
Plimpton (1981-1997) and served as an Assistant General Counsel of the
U.S. Securities and Exchange Commission (1979-1981).
RICHARD A. SILVER (51), Treasurer (1997), is Treasurer of the Fidelity
funds and is an employee of FMR (1997). Before joining FMR, Mr. Silver
served as Executive Vice President, Fund Accounting & Administration
at First Data Investor Services Group, Inc. (1996-1997). Prior to
1996, Mr. Silver was Senior Vice President and Chief Financial Officer
at The Colonial Group, Inc. Mr. Silver also served as Chairman of the
Accounting/Treasurer's Committee of the Investment Company Institute
(1987-1993).
JOHN H. COSTELLO (51), Assistant Treasurer, is an employee of FMR.
LEONARD M. RUSH (52), Assistant Treasurer (1994), is an employee of
FMR (1994). Prior to becoming Assistant Treasurer of the Fidelity
funds, Mr. Rush was Chief Compliance Officer of FMR Corp. (1993-1994)
and Chief Financial Officer of Fidelity Brokerage Services, Inc.
(1990-1993).
The following table sets forth information describing the compensation
of each Trustee and Member of the Advisory Board of each fund for his
or her services for the fiscal year ended July 31, 1998, or calendar
year ended December 31, 1997, as applicable.
COMPENSATION TABLE
<ERROR: WIDE TABLE>
ERROR: The Following Table: "Tran_fees" is Too Wide!
Table Width is 134 characters.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Aggregate Compensation
from J. Gary Ralph Phyllis Robert Edward C. E.
a Fund Burkhead F. Burke M. Johnson Bradley
** Cox Davis Gates*** 3d** Jones
Consumer
IndustriesB $ 0 $ 6 $ 6 $ 5 $ 0 $ 6
Cyclical
IndustriesB $ 0 $ 2 $ 2 $ 2 $ 0 $ 2
Financial
ServicesB $ 0 $ 43 $ 43 $ 42 $ 0 $ 44
Health CareB $ 0 $ 39 $ 39 $ 38 $ 0 $ 40
Natural ResourcesB $ 0 $ 216 $ 216 $ 219 $ 0 $ 217
TechnologyB $ 0 $ 38 $ 38 $ 37 $ 0 $ 39
Utilities GrowthB $ 0 $ 8 $ 8 $ 8 $ 0 $ 8
TOTAL COMPENSATION
FROM $ 0 $ 214,500 $ 210,000 $ 176,000 $ 0 $ 211,500
THE FUND COMPLEX*,A
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
Aggregate
Compensation
from Donald Peter S. William Gerald Marvin L. Robert Thomas
a Fund J. Lynch O. C. Mann C. R.
Kirk ** McCoy McDonough Pozen** Williams
****
Consumer IndustriesB
$ 6 $ 0 $ 5 $ 7 $ 6 $ 0 $ 6
Cyclical IndustriesB
$ 2 $ 0 $ 2 $ 2 $ 2 $ 0 $ 2
Financial ServicesB
$ 44 $ 0 $ 42 $ 54 $ 43 $ 0 $ 44
Health CareB
$ 40 $ 0 $ 38 $ 49 $ 39 $ 0 $ 40
Natural ResourcesB
$ 217 $ 0 $ 219 $ 269 $ 214 $ 0 $ 217
TechnologyB
$ 39 $ 0 $ 37 $ 48 $ 38 $ 0 $ 39
Utilities GrowthB
$ 8 $ 0 $ 8 $ 10 $ 8 $ 0 $ 8
TOTAL COMPENSATION FROM
$ 211,500 $ 0 $ 214,500 $ 264,500 $ 214,500 $ 0 $ 214,500
THE FUND COMPLEX*,A
</TABLE>
* Information is for the calendar year ended December 31, 1997 for 230
funds in the complex.
** Interested Trustees of the funds and Mr. Burkhead are compensated
by FMR.
*** Mr. Gates was elected to the Board of Trustees of Fidelity Advisor
Series VII on September 17, 1997.
**** Mr. McCoy was elected to the Board of Trustees of Fidelity
Advisor Series VII on September 17, 1997.
A Compensation figures include cash, amounts required to be deferred,
and may include amounts deferred at the election of Trustees. For the
calendar year ended December 31, 1997, the Trustees accrued required
deferred compensation from the funds as follows: Ralph F. Cox,
$ 75,000 ; Phyllis Burke Davis, $ 75,000 ; Robert M. Gates,
$ 62,500 ; E. Bradley Jones, $ 75,000 ; Donald J. Kirk,
$75,000 ; William O. McCoy, $ 75,000 ; Gerald C. McDonough,
$ 87,500 ; Marvin L. Mann, $ 75,000 ; and Thomas R.
Williams, $ 75,000 . Certain of the non-interested Trustees
elected voluntarily to defer a portion of their compensation as
follows: Ralph F. Cox, $ 53,699 ; Marvin L. Mann, $ 53,699 ;
and Thomas R. Williams, $ 62,462 .
B Compensation figures include cash .
Under a deferred compensation plan adopted in September 1995 and
amended in November 1996 (the Plan), non-interested Trustees must
defer receipt of a portion of, and may elect to defer receipt of an
additional portion of, their annual fees. Amounts deferred under the
Plan are subject to vesting and are treated as though equivalent
dollar amounts had been invested in shares of a cross-section of
Fidelity funds including funds in each major investment discipline and
representing a majority of Fidelity's assets under management (the
Reference Funds). The amounts ultimately received by the Trustees
under the Plan will be directly linked to the investment performance
of the Reference Funds. Deferral of fees in accordance with the Plan
will have a negligible effect on a fund's assets, liabilities, and net
income per share, and will not obligate a fund to retain the services
of any Trustee or to pay any particular level of compensation to the
Trustee. A fund may invest in the Reference Funds under the Plan
without shareholder approval.
As of July 31, 1998, approximately 7.71% of Advisor Consumer
Industries Class A's, 2.74% of Advisor Consumer Industries Class B's,
29.56% of Advisor Consumer Industries Institutional Class's, 30.78% of
Advisor Cyclical Industries Class A's, 4.90% of Advisor Cyclical
Industries Class T's, 12.77% of Advisor Cyclical Industries Class B's,
6.91% of Advisor Cyclical Industries Class C's, 84.90% of Advisor
Cyclical Industries Institutional Class's, 28.96% of Advisor Financial
Services Institutional Class's, 13.77% of Advisor Health Care
Institutional Class's, 18.91% of Advisor Technology Institutional
Class's, 5.43% of Advisor Utilities Growth Class A's, 1.14% of Advisor
Utilities Growth Class B's, and 30.34% of Advisor Utilities Growth
Institutional Class's total outstanding shares was held by FMR and an
FMR affiliate. FMR Corp. is the ultimate parent company of FMR and
this affiliate. By virtue of his ownership interest in FMR Corp. as
described in the "FMR" section on page 50, Mr. Edward C. Johnson 3d,
President and Trustee of the fund, may be deemed to be a beneficial
owner of these shares. As of the above date, with the exception of Mr.
Johnson 3d's deemed ownership of Advisor Consumer Industries Class
A's, Advisor Consumer Industries Class B's, Advisor Consumer
Industries Institutional Class's, Advisor Cyclical Industries Class
A's, Advisor Cyclical Industries Class T's, Advisor Cyclical
Industries Class B's, Advisor Cyclical Industries Class C's, Advisor
Cyclical Industries Institutional Class's, Advisor Financial Services
Institutional Class's, Advisor Health Care Institutional Class's,
Advisor Technology Institutional Class's, Advisor Utilities Growth
Class A's, Advisor Utilities Growth Class B's, and Advisor Utilities
Growth Institutional Class's shares, the Trustees, Members of the
Advisory Board, and officers of the funds owned, in the aggregate,
less than 1% of each class's total outstanding shares.
As of July 31, 1998, the following owned of record or beneficially
5% or more of each class's outstanding shares:
ADVISOR CONSUMER INDUSTRIES-CLASS A: Prudential Securities, New
York, NY (9.60%); FMR Corp., Boston, MA (7.71%); Centennial Securities
Co., Grand Rapids, MI (5.86%); The Advisors Group, Washington, DC
(5.11%); Salomon Smith Barney, Inc., New York, NY (5.09%).
ADVISOR CONSUMER INDUSTRIES-CLASS T: Royal Alliance Assoc. Inc.,
Birmingham, AL (7.52%); Donaldson, Lufkin & Jenrette, New York, NY
(6.25%); Securities America, Inc., Omaha, NE (6.12%).
ADVISOR CONSUMER INDUSTRIES-CLASS B: Morgan Keegan & Company, Inc.,
Memphis, TN (12.46%); Royal Alliance Assoc. Inc., Birmingham, AL
(8.04%); Southwest Securities Inc., Dallas, TX (5.78%).
ADVISOR CONSUMER INDUSTRIES-CLASS C: Securities America, Inc.,
Omaha, NE (18.98%); Securities Corp. of Iowa, Cedar Rapids, IA
(12.28%); Jefferson Pilot Securities Corp., Concord, NH (12.00%);
Merrill Lynch Pierce Fenner & Smith, Jacksonville, FL (9.11%); Piper
Jaffry & Hopwood, Inc., Minneapolis, MN (6.92%); FSC Securities Corp.,
Atlanta, GA (6.20%).
ADVISOR CONSUMER INDUSTRIES-INSTITUTIONAL CLASS: Donaldson, Lufkin
& Jenrette, New York, NY (60.02%); FMR Corp., Boston, MA (29.56%);
Charles Schwab & Co., Inc., San Francisco, CA (5.59%).
ADVISOR CYCLICAL INDUSTRIES-CLASS A: FMR Corp., Boston, MA
(30.78%); PNC Securities, Pittsburgh, PA (8.43%); American Investors
Company, Hayward, CA (7.12%); Lincoln Financial Advisors, Fort Wayne,
IN (6.36%).
ADVISOR CYCLICAL INDUSTRIES-CLASS T: Royal Alliance Assoc. Inc.,
Birmingham, AL (15.29%); McFarland Grossman & Associates, Houston, TX
(12.03%); FSC Securities Corp., Atlanta, GA (8.84%); Dain Rauscher
Inc., Minneapolis, MN (8.34%); G W & Wade Asset Management Co.,
Wellesley, MA (7.36%).
ADVISOR CYCLICAL INDUSTRIES-CLASS B: FMR Corp., Boston, MA
(12.77%); Strategic Assets Inc., Melville, NY (9.90%); The Ohio
Company, Columbus, OH (6.82%); Guardian Investor Services Corp., New
York, NY (5.07%).
ADVISOR CYCLICAL INDUSTRIES-CLASS C: W.S. Griffith & Co. Inc., San
Diego, CA (22.83%); Walnut Street Securities, Inc., Clayton, MO
(9.62%); Terra Securities Corp., Oak Brook, IL (8.72%); Fidelity
Distributors Corp., Boston, MA (6.91%); Royal Alliance Assoc. Inc.,
Birmingham, AL (6.91%); Jefferson Pilot Securities Corp., Concord, NH
(6.44%); John Hancock Distributors, Boston, MA (6.35%); Allmerica
Investments, Worcester, MA (5.68%).
ADVISOR CYCLICAL INDUSTRIES-INSTITUTIONAL CLASS: FMR Corp., Boston,
MA (84.90%).
ADVISOR FINANCIAL SERVICES-CLASS A: Prudential Securities, New
York, NY (13.43%); Merrill Lynch Pierce Fenner & Smith, Jacksonville,
FL (5.67%).
ADVISOR FINANCIAL SERVICES-CLASS T: Securities America, Inc.,
Omaha, NE (11.60%); A.G. Edwards & Sons, St. Louis, MO (5.32%).
ADVISOR FINANCIAL SERVICES-CLASS B: Merrill Lynch Pierce Fenner &
Smith, Jacksonville, FL (16.39%); Prudential Securities, New York, NY
(5.75%).
ADVISOR FINANCIAL SERVICES-CLASS C: Merrill Lynch Pierce Fenner &
Smith, Jacksonville, FL (33.04%); Securities America, Inc., Omaha, NE
(6.04%); Hilliard Lyons Inc., Louisville, KY (5.89%); Prudential
Securities, New York, NY (5.17%).
ADVISOR FINANCIAL SERVICES-INSTITUTIONAL CLASS: FMR Corp., Boston,
MA (28.96%); Charles Schwab & Co., Inc., San Francisco, CA (18.77%);
Merrill Lynch Pierce Fenner & Smith, Jacksonville, FL (12.31%);
Investment Centers of America, Bismarck, ND (6.48%).
ADVISOR HEALTH CARE-CLASS A: Prudential Securities, New York, NY
(11.36%); Merrill Lynch Pierce Fenner & Smith, Jacksonville, FL
(7.45%).
ADVISOR HEALTH CARE-CLASS T: Securities America, Inc., Omaha, NE
(7.65%); A.G. Edwards & Sons, St. Louis, MO (6.30%).
ADVISOR HEALTH CARE-CLASS B: Merrill Lynch Pierce Fenner & Smith,
Jacksonville, FL (9.78%).
ADVISOR HEALTH CARE-CLASS C: Merrill Lynch Pierce Fenner & Smith,
Jacksonville, FL (20.14%); Prudential Securities, New York, NY
(10.96%); Securities America, Inc., Omaha, NE (9.37%); PaineWebber
Inc., Weehawken, NJ (7.28%).
ADVISOR HEALTH CARE-INSTITUTIONAL CLASS: The H Group, Portland, OR
(30.55%); FMR Corp., Boston, MA (13.77%); Charles Schwab & Co., Inc.,
San Francisco, CA (10.97%); Sampson Investment Mgmt., Danville, CA
(5.36%); Merrill Lynch Pierce Fenner & Smith, Jacksonville, FL
(5.18%).
ADVISOR NATURAL RESOURCES-CLASS A: Brenton Banks, Inc., Des Moines,
IA (5.67%); Piper Jaffry & Hipwood, Inc., Minneapolis, MN (5.51%).
ADVISOR NATURAL RESOURCES-CLASS T: Salomon Smith Barney, Inc., New
York, NY (7.67%).
ADVISOR NATURAL RESOURCES-CLASS B: Merrill Lynch Pierce Fenner &
Smith, Jacksonville, FL (10.45%); Salomon Smith Barney, Inc., New
York, NY (7.58%); Donaldson, Lufkin & Jenrette, New York, NY
(5.68%).
ADVISOR NATURAL RESOURCES-CLASS C: Linsco/Private Ledger, San
Diego, CA (14.59%); Merrill Lynch Pierce Fenner & Smith, Jacksonville,
FL (12.39%); Dain Rauscher, Inc., Minneapolis, MN (9.00%); Salomon
Smith Barney, Inc., New York, NY (6.87%); Financial Designs
Corporation, San Gabriel, CA (6.72%); Securities America, Inc., Omaha,
NE (5.10%); A.G. Edwards & Sons, St. Louis, MO (5.04%).
ADVISOR NATURAL RESOURCES-INSTITUTIONAL CLASS: Charles Schwab &
Co., Inc., San Francisco, CA (47.05%); Investment Centers of America,
Bismarck, ND (14.10%); Donaldson, Lufkin & Jenrette, New York, NY
(8.20%); Merrill Lynch Pierce Fenner & Smith, Jacksonville, FL
(5.71%).
ADVISOR TECHNOLOGY-CLASS A: Prudential Securities, New York, NY
(7.98%); Marquis Investments Inc., New Orleans, LA (5.91%); Merrill
Lynch Pierce Fenner & Smith, Jacksonville, FL (5.60%); PaineWebber
Inc., Weehawken, NJ (5.28%).
ADVISOR TECHNOLOGY-CLASS T: Securities America, Omaha, NE (5.79%);
Donaldson, Lufkin & Jenrette, New York, NY (5.64%); A.G. Edwards &
Sons, St. Louis, MO (5.36%).
ADVISOR TECHNOLOGY-CLASS B: Merrill Lynch Pierce Fenner & Smith,
Jacksonville, FL (8.23%).
ADVISOR TECHNOLOGY-CLASS C: Bank One, N.A., Columbus, OH (9.15%);
American Freedom Sec. Inc., Fairport, NY (7.20%); Merrill Lynch Pierce
Fenner & Smith, Jacksonville, FL (6.77%); Securities America, Inc.,
Omaha, NE (5.91%).
ADVISOR TECHNOLOGY-INSTITUTIONAL CLASS: Resources Trust Company,
Englewood, CO (42.90%); FMR Corp., Boston, MA (18.91%); Charles Schwab
& Co., Inc., San Francisco, CA (8.27%); Merrill Lynch Pierce Fenner &
Smith, Jacksonville, FL (5.01%).
ADVISOR UTILITIES GROWTH-CLASS A: Merrill Lynch Pierce Fenner &
Smith, Jacksonville, FL (13.87%); A.G. Edwards & Sons, St. Louis, MO
(8.64%); FMR Corp., Boston, MA (5.43%); Walnut Street Securities,
Inc., Clayton, MO (5.04%).
ADVISOR UTILITIES GROWTH-CLASS T: Securities America, Inc., Omaha,
NE (10.63%); Royal Alliance Assoc. Inc., Birmingham, AL (5.56%).
ADVISOR UTILITIES GROWTH-CLASS B: Merrill Lynch Pierce Fenner &
Smith, Jacksonville, FL (16.50%); Prudential Securities, New York, NY
(9.46%); PaineWebber Inc., Weehawken, NJ (9.22%).
ADVISOR UTILITIES GROWTH-CLASS C: PaineWebber Inc., Weehawken, NJ
(24.00%); Merrill Lynch Pierce Fenner & Smith, Jacksonville, FL
(19.74%); Prudential Securities, New York, NY (8.14%); Securities
America, Inc., Omaha, NE (5.33%).
ADVISOR UTILITIES GROWTH-INSTITUTIONAL CLASS: FMR Corp., Boston, MA
(30.34%); Charles Schwab & Co., Inc., San Francisco, CA (29.48%).
A shareholder owning of record or beneficially more than 25% of a
fund's outstanding shares may be considered a controlling person. That
shareholder's vote could have a more significant effect on matters
presented at a shareholders' meeting than votes of other
shareholders.
MANAGEMENT CONTRACTS
Each fund has entered into a management contract with FMR, pursuant to
which FMR furnishes investment advisory and other services.
MANAGEMENT SERVICES. Under the terms of its management contract with
each fund, FMR acts as investment adviser and, subject to the
supervision of the Board of Trustees, directs the investments of the
fund in accordance with its investment objective, policies, and
limitations. FMR also provides each fund with all necessary office
facilities and personnel for servicing the fund's investments,
compensates all officers of each fund and all Trustees who are
"interested persons" of the trust or of FMR, and all personnel of each
fund or FMR performing services relating to research, statistical, and
investment activities.
In addition, FMR or its affiliates, subject to the supervision of the
Board of Trustees, provide the management and administrative services
necessary for the operation of each fund. These services include
providing facilities for maintaining each fund's organization;
supervising relations with custodians, transfer and pricing agents,
accountants, underwriters, and other persons dealing with each fund;
preparing all general shareholder communications and conducting
shareholder relations; maintaining each fund's records and the
registration of each fund's shares under federal securities laws and
making necessary filings under state securities laws; developing
management and shareholder services for each fund; and furnishing
reports, evaluations, and analyses on a variety of subjects to the
Trustees.
MANAGEMENT-RELATED EXPENSES. In addition to the management fee payable
to FMR and the fees payable to the transfer, dividend disbursing, and
shareholder servicing agent, pricing and bookkeeping agent, and
securities lending agent, as applicable, each fund or each class
thereof, as applicable, pays all of its expenses that are not assumed
by those parties. Each fund pays for the typesetting, printing, and
mailing of its proxy materials to shareholders, legal expenses, and
the fees of the custodian, auditor and non-interested Trustees. Each
fund's management contract further provides that the fund will pay for
typesetting, printing, and mailing prospectuses, statements of
additional information, notices, and reports to shareholders; however,
under the terms of each fund's transfer agent agreement, the transfer
agent bears the costs of providing these services to existing
shareholders of the applicable classes. Other expenses paid by each
fund include interest, taxes, brokerage commissions, the fund's
proportionate share of insurance premiums and Investment Company
Institute dues, and the costs of registering shares under federal
securities laws and making necessary filings under state securities
laws. Each fund is also liable for such non-recurring expenses as may
arise, including costs of any litigation to which the fund may be a
party, and any obligation it may have to indemnify its officers and
Trustees with respect to litigation.
MANAGEMENT FEES. For the services of FMR under the management
contract, each fund pays FMR a monthly management fee which has two
components: a group fee rate and an individual fund fee rate.
The group fee rate is based on the monthly average net assets of all
of the registered investment companies with which FMR has management
contracts.
GROUP FEE RATE SCHEDULE EFFECTIVE ANNUAL FEE RATES
Average Group Annualized Group Net Effective Annual Fee
Assets Rate Assets Rate
0 - $3 billion .5200% $ 0.5 billion .5200%
3 - 6 .4900 25 .4238
6 - 9 .4600 50 .3823
9 - 12 .4300 75 .3626
12 - 15 .4000 100 .3512
15 - 18 .3850 125 .3430
18 - 21 .3700 150 .3371
21 - 24 .3600 175 .3325
24 - 30 .3500 200 .3284
30 - 36 .3450 225 .3249
36 - 42 .3400 250 .3219
42 - 48 .3350 275 .3190
48 - 66 .3250 300 .3163
66 - 84 .3200 325 .3137
84 - 102 .3150 350 .3113
102 - 138 .3100 375 .3090
138 - 174 .3050 400 .3067
174 - 210 .3000 425 .3046
210 - 246 .2950 450 .3024
246 - 282 .2900 475 .3003
282 - 318 .2850 500 .2982
318 - 354 .2800 525 .2962
354 - 390 .2750 550 .2942
390 - 426 .2700
426 - 462 .2650
462 - 498 .2600
498 - 534 .2550
Over 534 .2500
The group fee rate is calculated on a cumulative basis pursuant to the
graduated fee rate schedule shown above on the left. The schedule
above on the right shows the effective annual group fee rate at
various asset levels, which is the result of cumulatively applying the
annualized rates on the left. For example, the effective annual fee
rate at $ 648 billion of group net assets - the approximate
level for July 1998 - was 0.2875 %, which is the weighted
average of the respective fee rates for each level of group net assets
up to $ 648 billion.
Each fund's individual fund fee rate is 0.30 %. Based on the
average group net assets of the funds advised by FMR for July 1998,
each fund's annual management fee rate would be calculated as follows:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
GROUP FEE RATE INDIVIDUAL FUND FEE RATE MANAGEMENT FEE RATE
Consumer Industries 0. 29 % + 0. 30 % = 0. 59 %
Cyclical Industries 0. 29 % + 0. 30 % = 0. 59 %
Financial Services 0. 29 % + 0. 30 % = 0. 59 %
Health Care 0. 29 % + 0. 30 % = 0. 59 %
Natural Resources 0. 29 % + 0. 30 % = 0. 59 %
Technology 0. 29 % + 0. 30 % = 0. 59 %
Utilities Growth 0. 29 % + 0. 30 % = 0. 59 %
</TABLE>
One-twelfth of this annual management fee rate is applied to each
fund's net assets averaged for the most recent month, giving a dollar
amount, which is the fee for that month.
The following table shows the amount of management fees paid by each
fund to FMR for the fiscal periods ended July 31, 1998 and 1997
and, for Natural Resources, for the fiscal years ended October 31,
1996 and 1995.
FUND FISCAL YEARS ENDED MANAGEMENT FEES
JULY 31 PAID TO FMR
Consumer Industries 1998 $ 101,756
1997* $ 32,305
Cyclical Industries 1998 $ 30,832
1997* $ 30,106
Financial Services 1998 $ 797,075
1997* $ 156,182
Health Care 1998 $ 727,332
1997* $ 158,600
Natural Resources 1998 $ 3,365,961
1997* $ 3,146,193
1996** $ 3,344,653
1995** $ 1,730,945
Technology 1998 $ 667,737
1997* $ 174,663
Utilities Growth 1998 $ 154,189
1997* $ 34,303
* For the period September 3, 1996 (commencement of operations) to
July 31, 1997 for all funds other than Natural Resources and for the
period November 1, 1996 to July 31, 1997 for Natural Resources.
** Fiscal year ended October 31
During the reporting period, FMR voluntarily modified the breakpoints
in the group fee rate schedule on January 1, 1996 to provide for lower
management fee rates as FMR's assets under management increase.
FMR may, from time to time, voluntarily reimburse all or a portion of
a class's operating expenses (exclusive of interest, taxes, brokerage
commissions, and extraordinary expenses), which is subject to revision
or termination. FMR retains the ability to be repaid for these expense
reimbursements in the amount that expenses fall below the limit prior
to the end of the fiscal year.
Expense reimbursements by FMR will increase a class's total returns,
and repayment of the reimbursement by a class will lower its total
returns.
SUB-ADVISERS. On behalf of each fund, FMR has entered into
sub-advisory agreements with FMR U.K. and FMR Far East. Pursuant to
the sub-advisory agreements, FMR may receive investment advice and
research services outside the United States from the sub-advisers.
On behalf of each fund, FMR may also grant the sub-advisers investment
management authority as well as the authority to buy and sell
securities if FMR believes it would be beneficial to the funds.
Currently, FMR U.K. and FMR Far East each focus on issuers in
countries other than the United States such as those in Europe, Asia,
and the Pacific Basin.
FMR U.K. and FMR Far East, which were organized in 1986, are wholly
owned subsidiaries of FMR. Under the sub-advisory agreements FMR pays
the fees of FMR U.K. and FMR Far East. For providing non-discretionary
investment advice and research services, FMR pays FMR U.K. and FMR Far
East fees equal to 110% and 105%, respectively, of FMR U.K.'s and FMR
Far East's costs incurred in connection with providing investment
advice and research services.
On behalf of each fund, for providing discretionary investment
management and executing portfolio transactions, FMR pays FMR U.K. and
FMR Far East a fee equal to 50% of its monthly management fee rate
with respect to each fund's average net assets managed by the
sub-adviser on a discretionary basis.
For providing investment advice and research services, fees paid to
the sub-advisers by FMR for the fiscal periods ended July 31, 1998 and
1997, and, for Natural Resources, for the past three fiscal periods
are shown in the table below.
<ERROR: WIDE TABLE>
ERROR: The Following Table: "table" is Too Wide!
Table Width is 186 characters.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
FUND FEES PAID BY FMR TO FMR U.K. FEES PAID BY FMR TO FMR FAR EAST
1998 1997 1996 1998 1997 1996
Consumer $ 209 $ 66 * N/A $ 198 $ 68 * N/A
Industries
Cyclical $ 22 $ 41 * N/A $ 21 $ 38 * N/A
Industries
Financial $ 558 $ 24 * N/A $ 540 $ 34 * N/A
Services
Health Care $ 3,800 $ 1,907 * N/A $ 3,572 $ 1,968 * N/A
Natural $ 54,559 $ 40,785 * $ 28,042 ** $ 51,612 $ 39,529 * $ 28,590 **
Resources
Technolog $ 4,853 $ 1,409 * N/A $ 4,633 $ 1,702 * N/A
y
Utilities $ 88 $ 24 * N/A $ 87 $ 24 * N/A
Growth
TOTAL $ 64,089 $ 44,256 $ 28,042 $ 60,663 $ 43,363 $ 28,590
</TABLE>
* For the period September 3, 1996 (commencement of operations)
through July 31, 1997 for all funds other than Natural Resources and
for the period November 1, 1996 to July 31, 1997 for Natural Resources
** For the fiscal year ended October 31
For discretionary investment management and execution of portfolio
transactions, no fees were paid to the sub-advisers by FMR on
behalf of the funds for the fiscal periods ended July 31, 1998 and
1997, and for Natural Resources, for the past three fiscal
periods.
DISTRIBUTION AND SERVICE PLANS
The Trustees have approved Distribution and Service Plans on behalf of
each class of shares of the funds (the Plans) pursuant to Rule 12b-1
under the 1940 Act (the Rule). The Rule provides in substance that a
mutual fund may not engage directly or indirectly in financing any
activity that is primarily intended to result in the sale of shares of
the fund except pursuant to a plan approved on behalf of the fund
under the Rule. The Plans, as approved by the Trustees, allow Class A,
Class T, Class B, Class C, and Institutional Class shares of the funds
and FMR to incur certain expenses that might be considered to
constitute direct or indirect payment by the funds of distribution
expenses.
Pursuant to the Class A Plans, FDC is paid a monthly distribution fee
at an annual rate of up to 0.75% of Class A's average net assets.
Pursuant to the Class T Plans, FDC is paid a monthly distribution fee
at an annual rate of up to 0.75% of Class T's average net assets
(except for Natural Resources). Pursuant to Natural Resources' Class T
Plan, FDC is paid a monthly distribution fee at an annual rate of up
to 0.65% of Class T's average net assets. Pursuant to the Class
B Plans, FDC is paid a monthly distribution fee at an annual rate of
up to 0.75% of Class B's average net assets. Pursuant to the Class C
Plans, FDC is paid a monthly distribution fee at an annual rate of up
to 0.75% of Class C's average net assets. For the purpose of
calculating the distribution fees, average net assets are determined
at the close of business on each day throughout the month. Currently,
the Trustees have approved a distribution fee for Class A at an annual
rate of 0.25% of its average net assets; a distribution fee for Class
T at an annual rate of 0.50% of its average net assets; a distribution
fee for Class B at an annual rate of 0.75% of its average net assets;
and a distribution fee for Class C at an annual rate of 0.75% of its
average net assets. These fee rates may be increased only when, in the
opinion of the Trustees, it is in the best interests of the
shareholders of the applicable class to do so. Class B and Class C of
each fund also pay investment professionals a service fee at an annual
rate of 0.25% of Class B's or Class C's, as applicable, average daily
net assets determined at the close of business on each day throughout
the month for personal service and/or the maintenance of shareholder
accounts.
Currently, up to the full amount of distribution fees paid by
Class A and Class T may be reallowed to investment
professionals as compensation for their services in connection with
the distribution of Class A or Class T shares, as applicable, and for
providing support services to Class A or Class T shareholders, as
applicable, based upon the level of services provided.
Currently, the full amount of distribution fees paid by Class B is
retained by FDC as compensation for its services and expenses in
connection with the distribution of Class B shares, and up to
the full amount of service fees paid by Class B may be
reallowed to investment professionals for providing personal
service to and/or maintenance of Class B shareholder accounts.
Currently and except as provided below, for the first year of
investment, the full amount of distribution fees paid by Class C is
retained by FDC as compensation for its services and expenses in
connection with the distribution of Class C shares, and the full
amount of service fees paid by Class C is retained by FDC for
providing personal service to and/or maintenance of Class C
shareholder accounts. Normally, after the first year of investment,
up to the full amount of distribution fees paid by Class C may
be reallowed to investment professionals as compensation
for their services in connection with the distribution of Class C
shares, and up to the full amount of service fees paid by Class
C 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 (including 403(b) programs, but otherwise as
defined in ERISA) or through reinvested dividends or capital gain
distributions, during the first year of investment and thereafter,
up to the full amount of distribution fees and service fees
paid by such Class C 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.
CLASS A DISTRIBUTION FEES
The table below shows the distribution fees paid for Class A shares
of each fund for the fiscal year ended July 31, 1998.
1998
FUND PAID TO RETAINED BY TOTAL
INVESTMENT FDC
PROFESSIONALS
Consumer Industries $ 2,961 $ 374 $ 3,335
Cyclical Industries $ 671 $ 359 $ 1,030
Financial Services $ 31,370 $ 10 $ 31,380
Health Care $ 26,011 $ 36 $ 26,047
Natural Resources $ 17,132 $ 97 $ 17,229
Technology $ 29,156 $ 202 $ 29,358
Utilities Growth $ 3,180 $ 364 $ 3,544
CLASS T DISTRIBUTION FEES
The table below shows the distribution fees paid for Class T shares of
each fund for the fiscal year ended July 31, 1998 .
<TABLE>
<CAPTION>
<S> <C> <C> <C>
1998
FUND PAID TO RETAINED BY TOTAL
INVESTMENT FDC
PROFESSIONALS
Consumer Industries $ 53,135 $ 19 $ 53,154
Cyclical Industries $ 12,608 $ 718 $ 13,326
Financial Services $ 411,863 $ 549 $ 412,412
Health Care $ 393,799 $ 980 $ 394,779
Natural Resources $ 2,466,691 $ 29,992 $ 2,496,683
Technology $ 380,217 $ 1,030 $ 381,247
Utilities Growth $ 69,499 $ 50 $ 69,549
</TABLE>
C LASS B DISTRIBUTION AND SERVICE FEES
The table below shows the distribution and shareholder service fees
paid for Class B shares of each fund for the fiscal year ended
July 31, 1998 .
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
1998
FUND DISTRIBUTION RETAINED BY SHAREHOLDER SERVICE RETAINED BY
FEES FDC FEES FDC
Consumer Industries $ 16,206 $ 16,206 $ 5,402 $ 246
Cyclical Industries $ 4,073 $ 4,073 $ 1,357 $ 312
Financial Services $ 222,959 $ 222,959 $ 74,733 $ 77
Health Care $ 164,664 $ 164,664 $ 54,888 $ 16
Natural Resources $ 410,300 $ 410,300 $ 136,768 $ 680
Technology $ 131,604 $ 131,604 $ 43,869 $ 10
Utilities Growth $ 44,132 $ 44,132 $ 14,713 $ 163
</TABLE>
C LASS C DISTRIBUTION AND SERVICE FEES
The table below shows the distribution and shareholder service fees
paid for Class C shares of each fund for the fiscal year ended
July 31, 1998 (Class C shares were not offered prior to November 3,
1997).
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
1998
FUND DISTRIBUTION RETAINED BY SHAREHOLDER SERVICE RETAINED BY
FEES FDC FEES FDC
Consumer Industries $ 2,968 $ 2,968 $ 990 $ 990
Cyclical Industries $ 452 $ 452 $ 151 $ 151
Financial Services $ 45,581 $ 45,581 $ 15,194 $ 15,194
Health Care $ 35,384 $ 35,384 $ 11,794 $ 11,794
Natural Resources $ 8,598 $ 8,598 $ 2,865 $ 2,865
Technology $ 16,613 $ 16,613 $ 5,537 $ 5,537
Utilities Growth $ 8,671 $ 8,671 $ 2,889 $ 2,889
</TABLE>
Under each Institutional Class Plan, if the payment of management fees
by the fund to FMR is deemed to be indirect financing by the fund of
the distribution of its shares, such payment is authorized by the
Plan. Each Institutional Class Plan specifically recognizes that FMR
may use its management fee revenue, as well as its past profits or its
other resources, to pay FDC for expenses incurred in connection with
the distribution of Institutional Class shares. In addition, each
Institutional Class Plan provides that FMR, directly or through
FDC, may make payments to third parties, such as banks or
broker-dealers, that engage in the sale of Institutional Class shares,
or provide shareholder support services. Currently, the Board of
Trustees has authorized such payment s for Institutional Class
shares.
Under each Class A, Class T, Class B, and Class C Plan, if the payment
of management fees by the fund to FMR is deemed to be indirect
financing by the fund of the distribution of its shares, such payment
is authorized by the Plan. Each Class A, Class T, Class B, and Class C
Plan specifically recognizes that FMR may use its management fee
revenue, as well as its past profits, or its other resources, to pay
FDC for expenses incurred in connection with the distribution of the
applicable class's shares, including payments made to third parties
that engage in the sale of the applicable class's shares or to third
parties, including banks, that provide shareholder support services.
Currently, the Board of Trustees has authorized such payments for
Class A, Class T, Class B, and Class C shares.
Payments made by FMR either directly or through FDC to third parties
for the fiscal year ended 1998 amounted to the following:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
FUND CLASS A CLASS T CLASS B CLASS C INSTITUTIONAL
Consumer Industries $ 1,254 $ 2,350 $ 647 $ 690 $ 165
Cyclical Industries $ 466 $ 757 $ 163 $ 356 $ 31
Financial Services $ 7,789 $ 13,765 $ 7,433 $ 10,797 $ 310
Health Care $ 9,013 $ 13,575 $ 6,849 $ 6,551 $ 270
Natural Resources $ 10,032 $ 138,724 $ 42,668 $ 4,947 $ 952
Technology $ 10,739 $ 17,681 $ 8,594 $ 8,447 $ 310
Utilities Growth $ 897 $ 2,005 $ 929 $ 1,874 $ 76
</TABLE>
Prior to approving each Plan, the Trustees carefully considered all
pertinent factors relating to the implementation of the Plan, and
determined that there is a reasonable likelihood that the Plan will
benefit the applicable class of the fund and its shareholders. In
particular, the Trustees noted that each Institutional Class Plan does
not authorize payments by the Institutional Class of the fund other
than those made to FMR under its management contract with the fund. To
the extent that each Plan gives FMR and FDC greater flexibility in
connection with the distribution of the shares of the applicable
class, additional sales of fund shares may result. Furthermore,
certain shareholder support services may be provided more effectively
under the Plans by local entities with whom shareholders have other
relationships.
Each Class A, Class T, Class B, and Class C Plan does not provide for
specific payments by the applicable class of any of the expenses of
FDC, or obligate FDC or FMR to perform any specific type or level of
distribution activities or incur any specific level of expense in
connection with distribution activities.
The Glass-Steagall Act generally prohibits federally and state
chartered or supervised banks from engaging in the business of
underwriting, selling, or distributing securities. Although the scope
of this prohibition under the Glass-Steagall Act has not been clearly
defined by the courts or appropriate regulatory agencies, FDC believes
that the Glass-Steagall Act should not preclude a bank from performing
shareholder support services, or servicing and recordkeeping
functions. FDC intends to engage banks only to perform such functions.
However, changes in federal or state statutes and regulations
pertaining to the permissible activities of banks and their affiliates
or subsidiaries, as well as further judicial or administrative
decisions or interpretations, could prevent a bank from continuing to
perform all or a part of the contemplated services. If a bank were
prohibited from so acting, the Trustees would consider what actions,
if any, would be necessary to continue to provide efficient and
effective shareholder services. In such event, changes in the
operation of the funds might occur, including possible termination of
any automatic investment or redemption or other services then provided
by the bank. It is not expected that shareholders would suffer any
adverse financial consequences as a result of any of these
occurrences. In addition, state securities laws on this issue may
differ from the interpretations of federal law expressed herein, and
banks and other financial institutions may be required to register as
dealers pursuant to state law.
Each fund may execute portfolio transactions with, and purchase
securities issued by, depository institutions that receive payments
under the Plans. No preference for the instruments of such depository
institutions will be shown in the selection of investments.
CONTRACTS WITH FMR AFFILIATES
Each class of each fund has entered into a transfer agent agreement
with FIIOC, an affiliate of FMR. Under the terms of the agreements,
FIIOC performs transfer agency, dividend disbursing, and shareholder
services for each class of each fund.
For providing transfer agency services, FIIOC receives an account fee
and an asset-based fee each paid monthly with respect to each account
in a fund. For retail accounts and certain institutional accounts,
these fees are based on account size and fund type. For certain
institutional retirement accounts, these fees are based on fund type.
For certain other institutional retirement accounts, these fees are
based on account type (i.e., omnibus or non-omnibus) and, for
non-omnibus accounts, fund type. The account fees are subject to
increase based on postage rate changes.
The asset-based fees are subject to adjustment if the year-to-date
total return of the S&P 500 exceeds a positive or negative 15%.
FIIOC also collects small account fees from certain accounts with
balances of less than $2,500.
FIIOC pays out-of-pocket expenses associated with providing transfer
agent services. In addition, FIIOC bears the expense of typesetting,
printing, and mailing prospectuses, statements of additional
information, and all other reports, notices, and statements to
existing shareholders, with the exception of proxy statements.
Each fund has also entered into a service agent agreement with FSC.
Under the terms of the agreements, FSC calculates the NAV and
dividends for each class of each fund, maintains each fund's portfolio
and general accounting records, and administers each fund's securities
lending program.
For providing pricing and bookkeeping services, FSC receives a monthly
fee based on each fund's average daily net assets throughout the
month. The annual fee rates for pricing and bookkeeping services are
.0600% of the first $500 million of average net assets and .0300% of
average net assets in excess of $500 million. The fee, not including
reimbursement for out-of-pocket expenses, is limited to a minimum of
$60,000 and a maximum of $800,000 per year.
Pricing and bookkeeping fees, including reimbursement for
out-of-pocket expenses, paid by the funds to FSC for the fiscal
periods ended July 31, 1998 and 1997 and, for Natural Resources, for
the past three fiscal years are shown in the table below.
FUND 1998 1997* 1996
Consumer Industries $ 60,446 $ 55,209 N/A
Cyclical Industries $ 60,218 $ 55,106 N/A
Financial Services $ 86,010 $ 55,208 N/A
Health Care $ 79,943 $ 55,207 N/A
Natural Resources $ 396,771 $ 346,819 $323,423 **
Technology $ 70,851 $ 55,209 N/A
Utilities Growth $ 60,324 $ 55,003 N/A
* For the period September 3, 1996 (commencement of operations) to
July 31, 1997 for all funds except Natural Resources and for the
period November 1, 1996 to July 31, 1997 for Natural Resources
** Fiscal year ended October 31
For administering each fund's securities lending program, FSC receives
fees based on the number and duration of individual securities loans.
For the fiscal periods ended July 31, 199 8 and 199 7, the
funds paid no securities lending fees. For the fiscal year ended 1996,
Natural Resources paid no securities lending fees.
Each fund has entered into a distribution agreement with FDC, an
affiliate of FMR organized as a Massachusetts corporation on July 18,
1960. FDC is a broker-dealer registered under the Securities Exchange
Act of 1934 and a member of the National Association of Securities
Dealers, Inc. The distribution agreements call for FDC to use all
reasonable efforts, consistent with its other business, to secure
purchasers for shares of the fund, which are continuously offered.
Promotional and administrative expenses in connection with the offer
and sale of shares are paid by FMR.
Sales charge revenues collected and retained by FDC for the periods
ended July 31, 1998 and 1997 and, for Natural Resources, for the past
three fiscal years are shown in the table below.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
SALES CHARGE REVENUE CDSC REVENUE
FISCAL PERIOD AMOUNT PAID AMOUNT RETAINED AMOUNT PAID AMOUNT RETAINED
ENDED TO FDC BY FDC TO FDC BY FDC
CLASS A CLASS T CLASS A CLASS T CLASS B CLASS C CLASS B CLASS C
Consumer July 31, 1998 $ 17,058 $ 42,495 $ 5,788 $ 12,506 $ 3,503 $ 38 $ 3,503 $ 38
Industries
July 31, 1997* $ 25,257 $ 50,036 $ 5,217 $ 10,321 $ 501 -- $ 501 --
Cyclical
Industries July 31, 1998 $ 1,572 $ 8,776 $ 758 $ 2,902 $ 328 $ 61 $ 328 $ 61
July 31, 1997* $ 8,537 $ 8,587 $ 3,162 $ 2,204 $ 50 -- $ 50 --
Financial
Services July 31, 1998 $ 226,919 $ 375,688 $ 96,375 $ 137,727 $ 49,800 $ 6,588 $ 49,800 $ 6,588
July 31, 1997* $ 89,581 $ 266,965 $ 23,881 $ 80,153 $ 1,297 -- $ 1,297 --
Health Care July 31, 1998 $ 193,119 $ 403,740 $ 86,859 $ 153,952 $ 31,102 $ 3,519 $ 31,102 $ 3,519
July 31, 1997* $ 145,733 $ 289,655 $ 37,870 $ 79,679 $ 3,867 -- $ 3,867 --
Natural Resources July 31, 1998 $ 61,964 $ 310,088 $ 20,495 $ 98,963 $ 220,346 $ 1,202 $ 220,346 $ 1,202
July 31, 1997* $ 136,219 $ 916,737 $ 26,145 $ 249,176 $ 110,966 -- $ 110,966 --
October 31, 1996** $ 61,535 $ 3,256,662 $ 6,151 $ 530,816 $ 21,872 -- $ 21,872 --
Technology July 31, 1998 $ 172,036 $ 341,738 $ 65,577 $ 124,571 $ 46,822 $ 3,066 $ 46,822 $ 3,066
July 31, 1997* $ 137,804 $ 326,277 $ 33,035 $ 90,829 $ 1,501 -- $ 1,501 --
Utilities Growth July 31, 1998 $ 43,487 $ 57,287 $ 16,090 $ 21,339 $ 7,417 $ 803 $ 7,417 $ 803
July 31, 1997* $ 14,745 $ 49,162 $ 3,264 $ 10,311 $ 200 -- $ 200 --
</TABLE>
* For the period September 3, 1996 (commencement of operations) to
July 31, 1997 for all funds except Natural Resources and for the
period November 1, 1996 to July 31, 1997 for Natural Resources
** Fiscal year ended October 31
DESCRIPTION OF THE TRUST
TRUST ORGANIZATION. 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, and Fidelity
Advisor Utilities Growth Fund are funds of Fidelity Advisor Series
VII , an open-end management investment company organized as a
Massachusetts business trust by a Declaration of Trust dated March 21,
1980 as amended and restated October 12, 1987 and July 18, 1991, and
as supplemented April 15, 1993 and September 30, 1997. On July 18,
1991, the Board of Trustees voted to change the name of the trust from
Plymouth Securities Trust to Fidelity Securities Trust, and on April
15, 1993 the Board of Trustees voted to change the name of the trust
to Fidelity Advisor Series VII. Currently, there are seven funds of
the trust: 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, and Fidelity Advisor
Utilities Growth Fund. The Declaration of Trust permits the Trustees
to create additional funds.
In the event that FMR ceases to be the investment adviser to the trust
or a fund, the right of the trust or fund to use the identifying name
"Fidelity" may be withdrawn. There is a remote possibility that one
fund might become liable for any misstatement in its prospectus or
statement of additional information about another fund.
The assets of the trust received for the issue or sale of shares of
each fund and all income, earnings, profits, and proceeds thereof,
subject only to the rights of creditors, are especially allocated to
such fund, and constitute the underlying assets of such fund. The
underlying assets of each fund are segregated on the books of account,
and are to be charged with the liabilities with respect to such fund
and with a share of the general expenses of the trust. Expenses with
respect to the trust are to be allocated in proportion to the asset
value of the respective funds, except where allocations of direct
expense can otherwise be fairly made. The officers of the trust,
subject to the general supervision of the Board of Trustees, have the
power to determine which expenses are allocable to a given fund, or
which are general or allocable to all of the funds. In the event of
the dissolution or liquidation of the trust, shareholders of each fund
are entitled to receive as a class the underlying assets of such fund
available for distribution.
SHAREHOLDER AND TRUSTEE LIABILITY. The trust is an entity of the type
commonly known as "Massachusetts business trust." Under Massachusetts
law, shareholders of such a trust may, under certain circumstances, be
held personally liable for the obligations of the trust. The
Declaration of Trust provides that the trust shall not have any claim
against shareholders except for the payment of the purchase price of
shares and requires that each agreement, obligation, or instrument
entered into or executed by the trust or the Trustees shall include a
provision limiting the obligations created thereby to the trust and
its assets. The Declaration of Trust provides for indemnification out
of each fund's property of any shareholder held personally liable for
the obligations of the fund. The Declaration of Trust also provides
that each fund shall, upon request, assume the defense of any claim
made against any shareholder for any act or obligation of the fund and
satisfy any judgment thereon. Thus, the risk of a shareholder
incurring financial loss on account of shareholder liability is
limited to circumstances in which the fund itself would be unable to
meet its obligations. FMR believes that, in view of the above, the
risk of personal liability to shareholders is remote.
The Declaration of Trust further provides that the Trustees, if they
have exercised reasonable care, will not be liable for any neglect or
wrongdoing, but nothing in the Declaration of Trust protects Trustees
against any liability to which they would otherwise be subject by
reason of willful misfeasance, bad faith, gross negligence, or
reckless disregard of the duties involved in the conduct of their
office. Claims asserted against one class of shares may subject
holders of another class of shares to certain liabilities.
VOTING RIGHTS. Each fund's capital consists of shares of beneficial
interest. As a shareholder, you receive one vote for each dollar value
of net asset value you own. The shares have no preemptive or
conversion rights; the voting and dividend rights, the right of
redemption, and the privilege of exchange are described in the
Prospectus. Shares are fully paid and nonassessable, except as set
forth under the heading "Shareholder and Trustee Liability" above.
Shareholders representing 10% or more of the trust or a fund may, as
set forth in the Declaration of Trust, call meetings of the trust or a
fund for any purpose related to the trust or fund, as the case may be,
including, in the case of a meeting of the entire trust, the purpose
of voting on removal of one or more Trustees. The trust or any fund
may be terminated upon the sale of its assets to another open-end
management investment company, or upon liquidation and distribution of
its assets, if approved by vote of the holders of a majority of the
trust or the fund, as determined by the current value of each
shareholder's investment in the fund or trust. If not so terminated,
the trust and the funds will continue indefinitely. Each fund may
invest all of its assets in another investment company.
CUSTODIAN. Brown Brothers Harriman & Co., 40 Water Street, Boston,
Massachusetts, is custodian of the assets of Natural Resources. The
Chase Manhattan Bank, 1 Chase Manhattan Plaza, New York, New York, is
custodian of the assets of Consumer Industries, Cyclical Industries,
Financial Services, Health Care, Technology, and Utilities Growth.
Each custodian is responsible for the safekeeping of a fund's assets
and the appointment of any subcustodian banks and clearing agencies. A
custodian takes no part in determining the investment policies of a
fund or in deciding which securities are purchased or sold by a fund.
However, a fund may invest in obligations of its custodian and may
purchase securities from or sell securities to the custodian. The Bank
of New York, headquartered in New York, also may serve as a
special purpose custodian of certain assets in connection with
repurchase agreement transactions.
FMR, its officers and directors, its affiliated companies, and the
Board of Trustees may, from time to time, conduct transactions with
various banks, including banks serving as custodians for certain funds
advised by FMR. The Boston branch of Natural Resources' custodian
leases its office space from an affiliate of FMR at a lease payment
which, when entered into, was consistent with prevailing market rates.
Transactions that have occurred to date include mortgages and personal
and general business loans. In the judgment of FMR, the terms and
conditions of those transactions were not influenced by existing or
potential custodial or other fund relationships.
AUDITOR. PricewaterhouseCoopers LLC , One Post Office Square,
Boston, Massachusetts serves as each fund's independent accountant.
The auditor examines financial statements for the funds and provides
other audit, tax, and related services.
FINANCIAL STATEMENTS
Each fund's financial statements and financial highlights for the
fiscal year ended July 31, 1998, and report of the auditor, are
included in the funds' Annual Report s , which are
separate report s supplied with this SAI. The funds' financial
statements, including the financial highlights, and report of the
auditor are incorporated herein by reference. For a free additional
copy of the funds' Annual Report s , contact your
investment professional.
APPENDIX
DESCRIPTION OF MOODY'S INVESTORS SERVICE RATINGS OF CORPORATE BONDS
Moody's ratings for obligations with an original remaining maturity in
excess of one year fall within nine categories. They range from Aaa
(highest quality) to C (lowest quality). Moody's applies numerical
modifiers of 1, 2, or 3 to each generic rating classification from Aa
through B. The modifier 1 indicates that the security ranks in the
higher end of its generic rating category; the modifier 2 indicates a
mid-range ranking; and the modifier 3 indicates that the issue ranks
on the lower end of its generic rating category.
AAA - Bonds that are rated Aaa are judged to be of the best quality.
They carry the smallest degree of investment risk and are generally
referred to as "gilt edged." Interest payments are protected by a
large or by an exceptionally stable margin and principal is secure.
While the various protective elements are likely to change, such
changes as can be visualized are most unlikely to impair the
fundamentally strong position of such issues.
AA - Bonds that are rated Aa are judged to be of high quality by all
standards. Together with the Aaa group they comprise what are
generally known as high-grade bonds. They are rated lower than the
best bonds because margins of protection may not be as large as in Aaa
securities or fluctuation of protective elements may be of greater
amplitude or there may be other elements present which make the
long-term risks appear somewhat larger than the Aaa securities.
A - Bonds that are rated A possess many favorable investment
attributes and are to be considered as upper-medium-grade obligations.
Factors giving security to principal and interest are considered
adequate but elements may be present which suggest a susceptibility to
impairment sometime in the future.
BAA - Bonds that are rated Baa are considered as medium-grade
obligations, (i.e., they are neither highly protected nor poorly
secured). Interest payments and principal security appear adequate for
the present but certain protective elements may be lacking or may be
characteristically unreliable over any great length of time. Such
bonds lack outstanding investment characteristics and in fact have
speculative characteristics as well.
BA - Bonds that are rated Ba are judged to have speculative elements;
their future cannot be considered as well assured. Often the
protection of interest and principal payments may be very moderate and
thereby not well safeguarded during both good and bad times over the
future. Uncertainty of position characterizes bonds in this class.
B - Bonds that are rated B generally lack characteristics of the
desirable investment. Assurance of interest and principal payments or
of maintenance of other terms of the contract over any long period of
time may be small.
CAA - Bonds that are rated Caa are of poor standing. Such issues may
be in default or there may be present elements of danger with respect
to principal or interest.
CA - Bonds that are rated Ca represent obligations which are
speculative in a high degree. Such issues are often in default or have
other marked short-comings.
C - Bonds that are rated C are the lowest-rated class of bonds and
issues so rated can be regarded as having extremely poor prospects of
ever attaining any real investment standing.
DESCRIPTION OF STANDARD & POOR'S RATINGS OF CORPORATE BONDS
Debt issues may be designated by Standard & Poor's as either
investment grade ("AAA" through "BBB") or speculative grade ("BB"
through "D"). While speculative grade debt will likely have some
quality and protective characteristics, these are outweighed by large
uncertainties or major exposures to adverse conditions. Ratings from
AA to CCC may be modified by the addition of a plus sign (+) or minus
sign (-) to show relative standing within the major rating categories.
AAA - Debt rated AAA has the highest rating assigned by Standard &
Poor's to a debt obligation. Capacity to pay interest and repay
principal is extremely strong.
AA - Debt rated AA has a very strong capacity to pay interest and
repay principal and differs from the higher-rated issues only in small
degree.
A - Debt rated A has a strong capacity to pay interest and repay
principal, although it is somewhat more susceptible to the adverse
effects of changes in circumstances and economic conditions than debt
in higher rated categories.
BBB - Debt rated BBB is regarded as having an adequate capacity to pay
interest and repay principal. Whereas it normally exhibits adequate
protection parameters, adverse economic conditions or changing
circumstances are more likely to lead to a weakened capacity to pay
interest and repay principal for debt in this category than in
higher-rated categories.
BB - Debt rated BB has less near-term vulnerability to default than
other speculative issues. However, it faces major ongoing
uncertainties or exposure to adverse business, financial, or economic
conditions which could lead to inadequate capacity to meet timely
interest and principal payments. The BB rating category is also used
for debt subordinated to senior debt that is assigned an actual or
implied BBB- rating.
B - Debt rated B has a greater vulnerability to default but currently
has the capacity to meet interest payments and principal repayments.
Adverse business, financial, or economic conditions will likely impair
capacity or willingness to pay interest and repay principal. The B
rating category is also used for debt subordinated to senior debt that
is assigned an actual or implied BB or BB- rating.
CCC - Debt rated CCC has a currently identifiable vulnerability to
default, and is dependent upon favorable business, financial, and
economic conditions to meet timely payment of interest and repayment
of principal. In the event of adverse business, financial, or economic
conditions, it is not likely to have the capacity to pay interest and
repay principal. The CCC rating category is also used for debt
subordinated to senior debt that is assigned an actual or implied B or
B- rating.
CC - Debt rated CC is typically applied to debt subordinated to senior
debt which is assigned an actual or implied CCC debt rating.
C - The rating C is typically applied to debt subordinated to senior
debt which is assigned an actual or implied CCC- debt rating. The C
rating may be used to cover a situation where a bankruptcy petition
has been filed but debt service payments are continued.
CI - The rating CI is reserved for income bonds on which no interest
is being paid.
D - Debt rated D is in payment default. The D rating category is used
when interest payments or principal payments are not made on the date
due even if the applicable grace period has not expired, unless S&P
believes that such payments will be made during such grace period. The
D rating will also be used upon the filing of a bankruptcy petition if
debt service payments are jeopardized.
Fidelity and Spartan are registered trademarks of FMR Corp.
Fidelity Advisor Focus Funds is a service mark of FMR Corp.
The third party marks appearing above are the marks of their
respective owners.
PART C. OTHER INFORMATION
Item 24. Financial Statements and Exhibits
(a) (1) Financial Statements and Financial Highlights included in
the Annual Reports for Fidelity Advisor Series VII on behalf of
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, and Fidelity Advisor Utilities
Growth Fund for the fiscal year ended July 31, 1998 are included in
the funds' prospectuses, are incorporated by reference into the funds'
Statement of Additional Information, and were filed on September 21,
1998 pursuant to Rule 30d-1 under the Investment Company Act of 1940
and are incorporated herein by reference.
(b) Exhibits:
(1) (a) Amended and Restated Declaration of Trust dated October 12,
1987 was filed and is incorporated herein by reference to Exhibit 1(a)
of Post-Effective Amendment No. 31.
(b) Amendment to the Fund's Declaration of Trust, dated December
20, 1991, was filed and is incorporated herein by reference to Exhibit
1(b) of Post-Effective Amendment No. 31.
(c) Amendment to the Fund's Declaration of Trust, dated April 15,
1993, was filed and is incorporated herein by reference to Exhibit
1(c) of Post-Effective Amendment No. 31.
(d) Amendment to the Declaration of Trust, dated September 30,
1997 was filed and is incorporated herein by reference to Exhibit 1(d)
of Post-Effective Amendment No. 38.
(2) (a) Bylaws of the Trust are incorporated herein by reference to
Exhibit 2(a) of Post-Effective Amendment 37.
(3) Not applicable.
(4) Not applicable.
(5) (a) Management Contract between Fidelity Advisor Natural Resources
Fund and Fidelity Management & Research Co., dated October 31, 1997,
is incorporated herein by reference to Exhibit 5(a) of Post-Effective
Amendment No. 38.
(b) Sub-Advisory Agreement between Fidelity Management & Research
Co., on behalf of Fidelity Advisor Natural Resources Fund, and
Fidelity Management & Research (U.K.) Inc., dated October 31, 1997, is
incorporated herein by reference to Exhibit 5(b) of Post-Effective
Amendment No. 38.
(c) Sub-Advisory Agreement between Fidelity Management and Research
Co., on behalf of Fidelity Advisor Natural Resources Fund, and
Fidelity Management & Research (Far East) Inc., dated October 31,
1997, is incorporated herein by reference to Exhibit 5(c) of
Post-Effective Amendment No. 38.
(d) Management Contract between Fidelity Advisor Consumer Industries
Fund and Fidelity Management & Research Co., dated July, 18, 1996, is
incorporated herein by reference to Exhibit 5(f) of Post-Effective
Amendment No. 33.
(e) Management Contract between Fidelity Advisor Cyclical Industries
Fund and Fidelity Management & Research Co., dated July 18, 1996, is
incorporated herein by reference to Exhibit 5(g) of Post-Effective
Amendment No. 33.
(f) Management Contract between Fidelity Advisor Financial Services
Fund and Fidelity Management & Research Co., dated July 18, 1996, is
incorporated herein by reference to Exhibit 5(h) of Post-Effective
Amendment No. 33.
(g) Management Contract between Fidelity Advisor Health Care Fund and
Fidelity Management & Research Co., dated July 18, 1996, is
incorporated herein by reference to Exhibit 5(i) of Post-Effective
Amendment No. 33.
(h) Management Contract between Fidelity Advisor Technology Fund and
Fidelity Management & Research Co., dated July 18, 1996, is
incorporated herein by reference to Exhibit 5(j) of Post-Effective
Amendment No. 33.
(i) Management Contract between Fidelity Advisor Utilities Growth
Fund and Fidelity Management & Research Co., dated July 18, 1996, is
incorporated herein by reference to Exhibit 5(k) of Post-Effective
Amendment No. 33.
(j) Sub-Advisory Agreement between Fidelity Management & Research
Co., on behalf of Fidelity Advisor Consumer Industries Fund, and
Fidelity Management & Research (U.K.) Inc., dated July 18, 1996, is
incorporated herein by reference to Exhibit 5(l) of Post-Effective
Amendment No. 33.
(k) Sub-Advisory Agreement between Fidelity Management & Research
Co., on behalf of Fidelity Advisor Cyclical Industries Fund, and
Fidelity Management & Research (U.K.) Inc., dated July 18, 1996, is
incorporated herein by reference to Exhibit 5(m) of Post-Effective
Amendment No. 33.
(l) Sub-Advisory Agreement between Fidelity Management & Research
Co., on behalf of Fidelity Advisor Financial Services Fund, and
Fidelity Management & Research (U.K.) Inc., dated July 18, 1996, is
incorporated herein by reference to Exhibit 5(n) of Post-Effective
Amendment No. 33.
(m) Sub-Advisory Agreement between Fidelity Management & Research
Co., on behalf of Fidelity Advisor Health Care Fund, and Fidelity
Management & Research (U.K.) Inc., dated July 18, 1996, is
incorporated herein by reference to Exhibit 5(o) of Post-Effective
Amendment No. 33.
(n) Sub-Advisory Agreement between Fidelity Management & Research
Co., on behalf of Fidelity Advisor Technology Fund, and Fidelity
Management & Research (U.K.) Inc., dated July 18, 1996, is
incorporated herein by reference to Exhibit 5(p) of Post-Effective
Amendment No. 33.
(o) Sub-Advisory Agreement between Fidelity Management & Research
Co., on behalf of Fidelity Advisor Utilities Growth Fund, and Fidelity
Management & Research (U.K.) Inc., dated July 18, 1996, is
incorporated herein by reference to Exhibit 5(q) of Post-Effective
Amendment No. 33.
(p) Sub-Advisory Agreement between Fidelity Management and Research
Co., on behalf of Fidelity Advisor Consumer Industries Fund, and
Fidelity Management & Research (Far East) Inc., dated July 18, 1996,
is incorporated herein by reference to Exhibit 5(r) of Post-Effective
Amendment No. 33.
(q) Sub-Advisory Agreement between Fidelity Management and Research
Co., on behalf of Fidelity Advisor Cyclical Industries Fund, and
Fidelity Management & Research (Far East) Inc., dated July 18, 1996,
is incorporated herein by reference to Exhibit 5(s) of Post-Effective
Amendment No. 33.
(r) Sub-Advisory Agreement between Fidelity Management and Research
Co., on behalf of Fidelity Advisor Financial Services Fund, and
Fidelity Management & Research (Far East) Inc., dated July 18, 1996,
is incorporated herein by reference to Exhibit 5(t) of Post-Effective
Amendment No. 33.
(s) Sub-Advisory Agreement between Fidelity Management and Research
Co., on behalf of Fidelity Advisor Health Care Fund, and Fidelity
Management & Research (Far East) Inc., dated July 18, 1996, is
incorporated herein by reference to Exhibit 5(u) of Post-Effective
Amendment No. 33.
(t) Sub-Advisory Agreement between Fidelity Management and Research
Co., on behalf of Fidelity Advisor Technology Fund, and Fidelity
Management & Research (Far East) Inc., dated July 18, 1996, is
incorporated herein by reference to Exhibit 5(v) of Post-Effective
Amendment No. 33.
(u) Sub-Advisory Agreement between Fidelity Management and Research
Co., on behalf of Fidelity Advisor Utilities Growth Fund, and Fidelity
Management & Research (Far East) Inc., dated July 18, 1996, is
incorporated herein by reference to Exhibit 5(w) of Post-Effective
Amendment No. 33.
(6) (a) General Distribution Agreement between Fidelity Advisor
Natural Resources Fund and Fidelity Distributors Corporation, dated
October 31, 1997, is incorporated herein by reference to Exhibit 6(a)
of Post-Effective Amendment No. 39.
(b) General Distribution Agreement between Fidelity Advisor Consumer
Industries Fund and Fidelity Distributors Corporation, dated July 18,
1996, is incorporated herein by reference to Exhibit 6(f) of
Post-Effective Amendment No. 33.
(c) General Distribution Agreement between Fidelity Advisor Cyclical
Industries Fund and Fidelity Distributors Corporation, dated July 18,
1996, is incorporated herein by reference to Exhibit 6(g) of
Post-Effective Amendment No. 33.
(d) General Distribution Agreement between Fidelity Advisor Financial
Services Fund and Fidelity Distributors Corporation, dated July 18,
1996, is incorporated herein by reference to Exhibit 6(h) of
Post-Effective Amendment No. 33.
(e) General Distribution Agreement between Fidelity Advisor Health
Care Fund and Fidelity Distributors Corporation, dated July 18, 1996,
is incorporated herein by reference to Exhibit 6(i) of Post-Effective
Amendment No. 33.
(f) General Distribution Agreement between Fidelity Advisor
Technology Fund and Fidelity Distributors Corporation, dated July 18,
1996, is incorporated herein by reference to Exhibit 6(j) of
Post-Effective Amendment No. 33.
(g) General Distribution Agreement between Fidelity Advisor Utilities
Growth Fund and Fidelity Distributors Corporation, dated July 18,
1996, is incorporated herein by reference to Exhibit 6(k) of
Post-Effective Amendment No. 33.
(h) Form of Bank Agency Agreement (most recently revised January,
1997) is filed herein as Exhibit 6(h).
(i) Form of Selling Dealer Agreement (most recently revised January,
1997) is filed herein as Exhibit 6(i).
(j) Form of Selling Dealer Agreement for Bank Related Transactions
(most recently revised January, 1997) is filed herein as Exhibit 6(j).
(7) (a) Retirement Plan for Non Interested Person Trustees, Directors
or General Partners, as amended on November 16, 1995 is incorporated
herein by reference to Exhibit 7(a) of Fidelity Select Portfolio's
(File No. 2-69972) Post-Effective Amendment No. 54.
(b) The Fee Deferral plan for Non-Interested Person Directors and
Trustees of the Fidelity Funds, effective as of December 1, 1995 is
incorporated herein by reference to Exhibit 7(b) of Fidelity School
Street Trust's (File No. 2-57167) Post-Effective Amendment No. 47.
(8) (a) Custodian Agreement and Appendix C, dated August 1, 1994,
between The Chase Manhattan Bank, N.A. and Fidelity Advisor Series VII
on behalf of Fidelity Advisor Consumer Industries Fund, Fidelity
Advisor Cyclical Industries Fund, Fidelity Advisor Financial Services
Fund, Fidelity Advisor Health Care Fund, Fidelity Advisor Technology
Fund, and Fidelity Advisor Utilities Growth Fund is incorporated
herein by reference to Exhibit 8(a) of Fidelity Investment Trust's
Post-Effective Amendment No. 59 (File No. 2-90649).
(b) Appendix A, dated February 26, 1998, to the Custodian
Agreement, dated August 1, 1994, between The Chase Manhattan Bank,
N.A. and Fidelity Advisor Series VII on behalf of Fidelity Advisor
Consumer Industries Fund, Fidelity Advisor Cyclical Industries Fund,
Fidelity Advisor Financial Services Fund, Fidelity Advisor Health Care
Fund, Fidelity Advisor Technology Fund, and Fidelity Advisor Utilities
Growth Fund is incorporated herein by reference to Exhibit 8(b) of
Fidelity Puritan Trust's Post-Effective Amendment No. 116 (File No.
2-11884).
(c) Appendix B, dated June 18, 1998, to the Custodian Agreement,
dated August 1, 1994, between The Chase Manhattan Bank, N.A. and
Fidelity Advisor Series VII on behalf of Fidelity Advisor Consumer
Industries Fund, Fidelity Advisor Cyclical Industries Fund, Fidelity
Advisor Financial Services Fund, Fidelity Advisor Health Care Fund,
Fidelity Advisor Technology Fund, and Fidelity Advisor Utilities
Growth Fund is incorporated herein by reference to Exhibit 8(c) of
Fidelity Puritan Trust's Post-Effective Amendment No. 116 (File No.
2-11884).
(d) Custodian Agreement and Appendix C, dated September 1, 1994,
between Brown Brothers Harriman & Company and Fidelity Advisor Series
V on behalf of Fidelity Advisor Global Resources Fund (currently known
as Fidelity Advisor Natural Resources Fund) is incorporated herein by
reference to Exhibit 8(a) of Fidelity Commonwealth Trust's
Post-Effective Amendment No. 56 (File No. 2-52322).
(e) Appendix A, dated March 19, 1998, to the Custodian Agreement,
dated September 1, 1994, between Brown Brothers Harriman & Company and
Fidelity Advisor Series VII on behalf of Fidelity Advisor Natural
Resources Fund is incorporated herein by reference to Exhibit 8(e) of
Fidelity Puritan Trust's Post-Effective Amendment No. 116 (File No.
2-11884).
(f) Appendix B, dated June 18, 1998, to the Custodian Agreement,
dated September 1, 1994, between Brown Brothers Harriman & Company and
Fidelity Advisor Series VII on behalf of Fidelity Advisor Natural
Resources Fund is incorporated herein by reference to Exhibit 8(f) of
Fidelity Puritan Trust's Post-Effective Amendment No. 116 (File No.
2-11884).
(g) Fidelity Group Repo Custodian Agreement among The Bank of New
York, J. P. Morgan Securities, Inc., and Fidelity Advisor Series V on
behalf of Fidelity Advisor Natural Resources Fund, dated February 12,
1996, is incorporated herein by reference to Exhibit 8(d) of Fidelity
Institutional Cash Portfolios Trust's (File No. 2-74708)
Post-Effective Amendment No. 31.
(h) Schedule 1 to the Fidelity Group Repo Custodian Agreement among
The Bank of New York, J. P. Morgan Securities, Inc., and Fidelity
Advisor Series V on behalf of Fidelity Advisor Natural Resources Fund,
dated February 12, 1996, is incorporated herein by reference to
Exhibit 8(e) of Fidelity Institutional Cash Portfolios Trust's
Post-Effective Amendment No. 31.
(i) Fidelity Group Repo Custodian Agreement between Chemical Bank,
Greenwich Capital Markets, Inc., and Fidelity Advisor Series V on
behalf of Fidelity Advisor Natural Resources Fund, dated November 13,
1995, is incorporated herein by reference to Exhibit 8(f) of Fidelity
Institutional Cash Portfolios Trust's Post-Effective Amendment No. 31.
(j) Schedule 1 to the Fidelity Group Repo Custodian Agreement between
Chemical and Fidelity Advisor Series V on behalf of Fidelity Advisor
Natural Resources Fund, dated November 13, 1995, is incorporated
herein by reference to Exhibit 8(h) of Fidelity Institutional Cash
Portfolios Trust's Post-Effective Amendment No. 31.
(k) Joint Trading Account Custody Agreement between the The Bank of
New York and Fidelity Advisor Series V on behalf of Fidelity Advisor
Natural Resources Fund, dated May 11, 1995, is incorporated herein by
reference to Exhibit 8(i) of Fidelity Institutional Cash Portfolios
Trust's Post-Effective Amendment No. 31.
(l) First Amendment to Joint Trading Account Custody Agreement
between the The Bank of New York and Fidelity Advisor Series V on
behalf of Fidelity Advisor Natural Resources Fund, dated July 14,
1995, is incorporated herein by reference to Exhibit 8(i) of Fidelity
Institutional Cash Portfolios Trust's Post-Effective Amendment No. 31.
(9) Not applicable.
(10) Not applicable.
(11) Consent of PricewaterhouseCoopers LLP is filed herein as Exhibit
11.
(12) Not applicable.
(13) Not applicable.
(14) (a) Fidelity Individual Retirement Account Custodial
Agreement and Disclosure Statement, as currently in effect, is
incorporated herein by reference to Exhibit 14(a) of Fidelity Union
Street Trust's (File No. 2-50318) Post-Effective Amendment No. 87.
(b) Fidelity Institutional Individual Retirement Account
Custodial Agreement and Disclosure Statement, as currently in effect,
is incorporated herein by reference to Exhibit 14(d) of Fidelity Union
Street Trust's (File No. 2-50318) Post-Effective Amendment No. 87.
(c) National Financial Services Corporation Individual
Retirement Account Custodial Agreement and Disclosure Statement, as
currently in effect, is incorporated herein by reference to Exhibit
14(h) of Fidelity Union Street Trust's (File No. 2-50318)
Post-Effective Amendment No. 87.
(d) Fidelity Portfolio Advisory Services Individual
Retirement Account Custodial Agreement and Disclosure Statement, as
currently in effect, is incorporated herein by reference to Exhibit
14(i) of Fidelity Union Street Trust's (File No. 2-50318)
Post-Effective Amendment No. 87.
(e) Fidelity 403(b)(7) Custodial Account Agreement, as
currently in effect, is incorporated herein by reference to Exhibit
14(e) of Fidelity Union Street Trust's (File No. 2-50318)
Post-Effective Amendment No. 87.
(f) National Financial Services Corporation Defined
Contribution Retirement Plan and Trust Agreement, as currently in
effect, is incorporated herein by reference to Exhibit 14(k) of
Fidelity Union Street Trust's (File No. 2-50318) Post-Effective
Amendment No. 87.
(g) The CORPORATEplan for Retirement Profit Sharing/401K
Plan, as currently in effect, is incorporated herein by reference to
Exhibit 14(l) of Fidelity Union Street Trust's (File No. 2-50318)
Post-Effective Amendment No. 87.
(h) The CORPORATEplan for Retirement Money Purchase
Pension Plan, as currently in effect, is incorporated herein by
reference to Exhibit 14(m) of Fidelity Union Street Trust's (File No.
2-50318) Post-Effective Amendment No. 87.
(i) Fidelity Investments Section 403(b)(7) Individual
Custodial Account Agreement and Disclosure Statement, as currently in
effect, is incorporated herein by reference to Exhibit 14(f) of
Fidelity Commonwealth Trust's (File No. 2-52322) Post-Effective
Amendment No. 57.
(j) Plymouth Investments Defined Contribution Retirement
Plan and Trust Agreement, as currently in effect, is incorporated
herein by reference to Exhibit 14(o) of Fidelity Commonwealth Trust's
(File No. 2-52322) Post-Effective Amendment No. 57.
(k) The Fidelity Prototype Defined Benefit Pension Plan and
Trust Basic Plan Document and Adoption Agreement, as currently in
effect, is incorporated herein by reference to Exhibit 14(d) of
Fidelity Securities Fund's (File No. 2-93601) Post-Effective Amendment
No. 33.
(l) The Institutional Prototype Plan Basic Plan Document,
Standardized Adoption Agreement, and Non-Standardized Adoption
Agreement, as currently in effect, is incorporated herein by reference
to Exhibit 14(o) of Fidelity Securities Fund's (File No. 2-93601)
Post-Effective Amendment No. 33.
(m) The CORPORATEplan for Retirement 100SM Profit
Sharing/401(k) Basic Plan Document, Standardized Adoption Agreement,
and Non-Standardized Adoption Agreement, as currently in effect, is
incorporated herein by reference to Exhibit 14(f) of Fidelity
Securities Fund's (File No. 2-93601) Post-Effective Amendment No. 33.
(n) The Fidelity Investments 401(a) Prototype Plan for
Tax-Exempt Employers Basic Plan Document, Standardized Profit Sharing
Plan Adoption Agreement, Non-Standardized Discretionary Contribution
Plan No. 002 Adoption Agreement, and Non-Standardized Discretionary
Contribution Plan No. 003 Adoption Agreement, as currently in effect,
is incorporated herein by reference to Exhibit 14(g) of Fidelity
Securities Fund's (File No. 2-93601) Post-Effective Amendment No. 33.
(o) Fidelity Investments 403(b) Sample Plan Basic Plan
Document and Adoption Agreement, as currently in effect, is
incorporated herein by reference to Exhibit 14(p) of Fidelity
Securities Fund's (File No. 2-93601) Post-Effective Amendment No. 33.
(p) Fidelity Defined Contribution Retirement Plan and Trust
Agreement, as currently in effect, is incorporated herein by reference
to Exhibit 14(c) of Fidelity Securities Fund's (File No. 2-93601)
Post-Effective Amendment No. 33.
(q) Fidelity SIMPLE-IRAPlan Adoption Agreement, Company
Profile Form, and Plan Document, as currently in effect, is
incorporated herein by reference to Exhibit 14(q) of Fidelity Aberdeen
Street Trust's (File No. 33-43529) Post-Effective Amendment No. 19.
(15) (a) Distribution and Service Plan pursuant to Rule 12b-1 for
Fidelity Advisor Consumer Industries Fund: Class A is incorporated
herein by reference to Exhibit 15(e) of Post-Effective Amendment No.
33.
(b) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity
Advisor Cyclical Industries Fund: Class A is incorporated herein by
reference to Exhibit 15(f) of Post-Effective Amendment No. 33.
(c) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity
Advisor Financial Services Fund: Class A is incorporated herein by
reference to Exhibit 15(g) of Post-Effective Amendment No. 33.
(d) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity
Advisor Health Care Fund: Class A is incorporated herein by reference
to Exhibit 15(h) of Post-Effective Amendment No. 33.
(e) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity
Advisor Technology Fund: Class A is incorporated herein by reference
to Exhibit 15(i) of Post-Effective Amendment No. 33.
(f) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity
Advisor Utilities Growth Fund: Class A is incorporated herein by
reference to Exhibit 15(j) of Post-Effective Amendment No. 33.
(g) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity
Advisor Consumer Industries Fund: Class T is incorporated herein by
reference to Exhibit 15(k) of Post-Effective Amendment No. 33.
(h) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity
Advisor Cyclical Industries Fund: Class T is incorporated herein by
reference to Exhibit 15(l) of Post-Effective Amendment No. 33.
(i) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity
Advisor Financial Services Fund: Class T is incorporated herein by
reference to Exhibit 15(m) of Post-Effective Amendment No. 33.
(j) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity
Advisor Health Care Fund: Class T is incorporated herein by reference
to Exhibit 15(n) of Post-Effective Amendment No. 33.
(k) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity
Advisor Technology Fund: Class T is incorporated herein by reference
to Exhibit 15(o) of Post-Effective Amendment No. 33.
(l) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity
Advisor Utilities Growth Fund: Class T is incorporated herein by
reference to Exhibit 15(p) of Post Effective Amendment No. 33.
(m) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity
Advisor Consumer Industries Fund: Institutional Class is incorporated
herein by reference to Exhibit 15(q) of Post-Effective Amendment No.
33.
(n) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity
Advisor Cyclical Industries Fund: Institutional Class is incorporated
herein by reference to Exhibit 15(r) of Post-Effective Amendment No.
33.
(o) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity
Advisor Financial Services Fund: Institutional Class is incorporated
herein by reference to Exhibit 15(s) of Post-Effective Amendment No.
33.
(p) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity
Advisor Health Care Fund: Institutional Class is incorporated herein
by reference to Exhibit 15(t) of Post-Effective Amendment No. 33.
(q) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity
Advisor Technology Fund: Institutional Class is incorporated herein by
reference to Exhibit 15(u) of Post-Effective Amendment No. 33.
(r) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity
Advisor Utilities Growth Fund: Institutional Class is incorporated
herein by reference to Exhibit 15(v) of Post-Effective Amendment No.
33.
(s) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity
Advisor Consumer Industries Fund: Class B is incorporated herein by
reference to Exhibit 15(s) of Post-Effective Amendment No. 38.
(t) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity
Advisor Cyclical Industries Fund: Class B is incorporated herein by
reference to Exhibit 15(t) of Post-Effective Amendment No. 38.
(u) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity
Advisor Financial Services Fund: Class B is incorporated herein by
reference to Exhibit 15(u) of Post-Effective Amendment No. 38.
(v) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity
Advisor Health Care Fund: Class B is incorporated herein by reference
to Exhibit 15(v) of Post-Effective Amendment No. 38.
(w) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity
Advisor Technology Fund: Class B is incorporated herein by reference
to Exhibit 15(w) of Post-Effective Amendment No. 38.
(x) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity
Advisor Utilities Growth Fund: Class B is incorporated herein by
reference to Exhibit 15(x) of Post-Effective Amendment No. 38.
(y) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity
Advisor Consumer Industries Fund: Class C is incorporated herein by
reference to Exhibit 15(y) of Post-Effective Amendment No. 38.
(z) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity
Advisor Cyclical Industries Fund: Class C is filed herein by reference
to Exhibit 15(z) of Post-Effective Amendment No. 38.
(aa) Distribution and Service Plan pursuant to Rule 12b-1 for
Fidelity Advisor Financial Services Fund: Class C is incorporated
herein by reference to Exhibit 15(aa) of Post-Effective Amendment No.
38.
(bb) Distribution and Service Plan pursuant to Rule 12b-1 for
Fidelity Advisor Health Care Fund: Class C is incorporated herein by
reference to Exhibit 15(bb) of Post-Effective Amendment No. 38.
(cc) Distribution and Service Plan pursuant to Rule 12b-1 for
Fidelity Advisor Natural Resources Fund: Class C is incorporated
herein by reference to Exhibit 15(cc) of Post-Effective Amendment No.
38.
(dd) Distribution and Service Plan pursuant to Rule 12b-1 for
Fidelity Advisor Technology Fund: Class C is incorporated herein by
reference to Exhibit 15(dd) of Post-Effective Amendment No. 38.
(ee) Distribution and Service Plan pursuant to Rule 12b-1 for
Fidelity Advisor Utilities Growth Fund: Class C is incorporated herein
by reference to Exhibit 15(ee) of Post-Effective Amendment No. 38.
(ff) Distribution and Service Plan pursuant to Rule 12b-1 for
Fidelity Advisor Natural Resources Fund: Class A is incorporated
herein by reference to Exhibit 15(ff) of Post-Effective Amendment No.
38.
(gg) Distribution and Service Plan pursuant to Rule 12b-1 for
Fidelity Advisor Natural Resources Fund: Class T is incorporated
herein by reference to Exhibit 15(gg) of Post-Effective Amendment No.
38.
(hh) Distribution and Service Plan pursuant to Rule 12b-1 for
Fidelity Advisor Natural Resources Fund: Class B is incorporated
herein by reference to Exhibit 15(hh) of Post-Effective Amendment No.
38.
(ii) Distribution and Service Plan pursuant to Rule 12b-1 for
Fidelity Advisor Natural Resources Fund: Institutional Class is
incorporated herein by reference to Exhibit 15(ii) of Post-Effective
Amendment No. 38.
(16) (a) Schedule for computation of cumulative total returns and
average annual returns is incorporated herein by reference to Exhibit
16(b) of Post-Effective Amendment No. 29.
(b) Formula for computing adjusted net asset value and moving
averages is incorporated herein by reference to Exhibit 16(b) of
Post-Effective Amendment No. 31.
(17) Financial Data Schedules for the funds are filed herein as
Exhibit 27.
(18) Rule 18f-3 Plan, dated March 19, 1998, is incorporated herein by
reference to Exhibit 18 of Post-Effective Amendment No. 39.
Item 25. Persons Controlled by or under Common Control with
Registrant
The Board of Trustees of the Registrant is the same as the board of
other funds advised by FMR, each of which has Fidelity Management &
Research Company as its investment adviser. In addition, the officers
of these funds are substantially identical. Nonetheless, the
Registrant takes the position that it is not under common control with
these other funds since the power residing in the respective boards
and officers arises as the result of an official position with the
respective funds.
Item 26. Number of Holders of Securities
July 31, 1998
Title of Class: Shares of Beneficial Interest
Name of Series Number of
Record
Holders
Fidelity Advisor Consumer Industries Fund: Class A 207
Fidelity Advisor Consumer Industries Fund: Class T 1,128
Fidelity Advisor Consumer Industries Fund: Class B 558
Fidelity Advisor Consumer Industries Fund: Class C 130
Fidelity Advisor Consumer Industries Fund: Institutional
Class 109
Fidelity Advisor Cyclical Industries Fund: Class A 47
Fidelity Advisor Cyclical Industries Fund: Class T 328
Fidelity Advisor Cyclical Industries Fund: Class B 99
Fidelity Advisor Cyclical Industries Fund: Class C 26
Fidelity Advisor Cyclical Industries Fund: Institutional
Class 16
Fidelity Advisor Financial Services Fund: Class A 1,841
Fidelity Advisor Financial Services Fund: Class T 8,551
Fidelity Advisor Financial Services Fund: Class B 5,485
Fidelity Advisor Financial Services Fund: Class C 1,120
Fidelity Advisor Financial Services Fund: Institutional
Class 193
Fidelity Advisor Health Care Fund: Class A 1,841
Fidelity Advisor Health Care Fund: Class T 9,455
Fidelity Advisor Health Care Fund: Class B 5,461
Fidelity Advisor Health Care Fund: Class C 1,412
Fidelity Advisor Health Care Fund: Institutional Class 336
Fidelity Advisor Natural Resources Fund: Class A 762
Fidelity Advisor Natural Resources Fund: Class T 26,968
Fidelity Advisor Natural Resources Fund: Class B 4,644
Fidelity Advisor Natural Resources Fund: Class C 246
Fidelity Advisor Natural Resources Fund: Institutional
Class 71
Fidelity Advisor Technology Fund: Class A 1,496
Fidelity Advisor Technology Fund: Class T 8,416
Fidelity Advisor Technology Fund: Class B 3,620
Fidelity Advisor Technology Fund: Class C 631
Fidelity Advisor Technology Fund: Institutional Class 190
Fidelity Advisor Utilities Growth Fund: Class A 260
Fidelity Advisor Utilities Growth Fund: Class T 1,512
Fidelity Advisor Utilities Growth Fund: Class B 998
Fidelity Advisor Utilities Growth Fund: Class C 232
Fidelity Advisor Utilities Growth Fund: Institutional
Class 20
Item 27. Indemnification
Article XI, Section 2 of the Declaration of Trust sets forth the
reasonable and fair means for determining whether indemnification
shall be provided to any past or present Trustee or officer. It states
that the Registrant shall indemnify any present or past Trustee or
officer to the fullest extent permitted by law against liability and
all expenses reasonably incurred by him in connection with any claim,
action, suit, or proceeding in which he is involved by virtue of his
service as a Trustee, an officer, or both. Additionally, amounts paid
or incurred in settlement of such matters are covered by this
indemnification. Indemnification will not be provided in certain
circumstances, however. These include instances of willful
misfeasance, bad faith, gross negligence, and reckless disregard of
the duties involved in the conduct of the particular office involved.
Pursuant to Section 11 of the Distribution Agreement, the Registrant
agrees to indemnify and hold harmless the Distributor and each of its
directors and officers and each person, if any, who controls the
Distributor within the meaning of Section 15 of the 1933 Act against
any loss, liability, claim, damages or expense arising by reason of
any person acquiring any shares, based upon the ground that the
registration statement, Prospectus, Statement of Additional
Information, shareholder reports or other information filed or made
public by the Registrant included a materially misleading statement or
omission. However, the Registrant does not agree to indemnify the
Distributor or hold it harmless to the extent that the statement or
omission was made in reliance upon, and in conformity with,
information furnished to the Registrant by or on behalf of the
Distributor. The Registrant does not agree to indemnify the parties
against any liability to which they would be subject by reason of
willful misfeasance, bad faith, gross negligence, and reckless
disregard of the obligations and duties under the Distribution
Agreement.
Pursuant to the agreement by which Fidelity Investments Institutional
Operations Company, Inc. ("FIIOC") is appointed transfer agent, the
Registrant agrees to indemnify and hold FIIOC harmless against any
losses, claims, damages, liabilities or expenses (including reasonable
counsel fees and expenses) resulting from:
(1) any claim, demand, action or suit brought by any person other
than the Registrant, including by a shareholder, which names FIIOC
and/or the Registrant as a party and is not based on and does not
result from FIIOC's willful misfeasance, bad faith or negligence or
reckless disregard of duties, and arises out of or in connection with
FIIOC's performance under the Transfer Agency Agreement; or
(2) any claim, demand, action or suit (except to the extent
contributed to by FIIOC's willful misfeasance, bad faith or negligence
or reckless disregard of duties) which results from the negligence of
the Registrant, or from FIIOC's acting upon any instruction(s)
reasonably believed by it to have been executed or communicated by any
person duly authorized by the Registrant, or as a result of FIIOC's
acting in reliance upon advice reasonably believed by FIIOC to have
been given by counsel for the Registrant, or as a result of FIIOC's
acting in reliance upon any instrument or stock certificate reasonably
believed by it to have been genuine and signed, countersigned or
executed by the proper person.
Item 28. Business and Other Connections of Investment Adviser
(1) FIDELITY MANAGEMENT & RESEARCH COMPANY (FMR)
82 Devonshire Street, Boston, MA 02109
FMR serves as investment adviser to a number of other investment
companies. The directors and officers of the Adviser have held,
during the past two fiscal years, the following positions of a
substantial nature.
<TABLE>
<CAPTION>
<S> <C>
Edward C. Johnson 3d Chairman of the Board and Director of FMR; President
and Chief Executive Officer of FMR Corp.; Chairman
of the Board and Director of FMR Corp., Fidelity
Investments Money Management, Inc. (FIMM), Fidelity
Management & Research (U.K.) Inc. (FMR U.K.), and
Fidelity Management & Research (Far East) Inc. (FMR
Far East); Chairman of the Executive Committee of
FMR; Director of Fidelity Investments Japan Limited
(FIJ); President and Trustee of funds advised by FMR.
Robert C. Pozen President and Director of FMR; Senior Vice President
and Trustee of funds advised by FMR; President and
Director of FIMM, FMR U.K., and FMR Far East;
Previously, General Counsel, Managing Director, and
Senior Vice President of FMR Corp.
Peter S. Lynch Vice Chairman of the Board and Director of FMR.
Marta Amieva Vice President of FMR.
John H. Carlson Vice President of FMR and of funds advised by FMR.
Dwight D. Churchill Senior Vice President of FMR and Vice President of
Bond Funds advised by FMR; Vice President of FIMM.
Brian Clancy Vice President of FMR and Treasurer of FMR, FIMM,
FMR U.K., and FMR Far East.
Barry Coffman Vice President of FMR.
Arieh Coll Vice President of FMR.
Frederic G. Corneel Tax Counsel of FMR.
Stephen G. Manning Assistant Treasurer of FMR, FIMM, FMR U.K., FMR
Far East; Vice President and Treasurer of FMR Corp.;
Treasurer of Strategic Advisers, Inc.
William Danoff Senior Vice President of FMR and Vice President of a
fund advised by FMR.
Scott E. DeSano Vice President of FMR.
Penelope Dobkin Vice President of FMR and of a fund advised by FMR.
Walter C. Donovan Vice President of FMR.
Bettina Doulton Vice President of FMR and of funds advised by FMR.
Margaret L. Eagle Vice President of FMR and of funds advised by FMR.
William R. Ebsworth Vice President of FMR.
Richard B. Fentin Senior Vice President of FMR and Vice President of a
fund advised by FMR.
Gregory Fraser Vice President of FMR and of a fund advised by FMR.
Jay Freedman Assistant Clerk of FMR; Clerk of FMR Corp., FMR
U.K., FMR Far East, and Strategic Advisers, Inc.;
Secretary of FIMM; Associate General Counsel FMR
Corp.
Robert Gervis Vice President of FMR.
David L. Glancy Vice President of FMR and of a fund advised by FMR.
Kevin E. Grant Vice President of FMR and of funds advised by FMR.
Barry A. Greenfield Vice President of FMR and of a fund advised by FMR.
Boyce I. Greer Senior Vice President of FMR and Vice President of
Money Market Funds advised by FMR; Vice President
of FIMM.
Bart A. Grenier Vice President of High-Income Funds advised by FMR;
Vice President of FMR.
Robert Haber Vice President of FMR.
Richard C. Habermann Senior Vice President of FMR; Vice President of funds
advised by FMR.
Fred L. Henning Jr. Senior Vice President of FMR and Vice President of
Fixed-Income Funds advised by FMR.
Bruce T. Herring Vice President of FMR.
Robert F. Hill Vice President of FMR; Director of Technical Research.
Curt Hollingsworth Vice President of FMR and of funds advised by FMR.
Abigail P. Johnson Senior Vice President of FMR and Vice President of
funds advised by FMR; Director of FMR Corp.;
Associate Director and Senior Vice President of Equity
Funds advised by FMR.
David B. Jones Vice President of FMR.
Steven Kaye Vice President of FMR and of a fund advised by FMR.
Francis V. Knox Vice President of FMR; Compliance Officer of FMR
U.K.
Robert A. Lawrence Senior Vice President of FMR and Vice President of
Fidelity Real Estate High Income and Fidelity Real
Estate High Income II Funds advised by FMR;
Associate Director and Senior Vice President of Equity
Funds advised by FMR; Previously, Vice President of
High Income Funds advised by FMR.
Harris Leviton Vice President of FMR and of a fund advised by FMR.
Bradford E. Lewis Vice President of FMR and of funds advised by FMR.
Richard R. Mace Jr. Vice President of FMR and of funds advised by FMR.
Charles A. Mangum Vice President of FMR and of a fund advised by FMR.
Kevin McCarey Vice President of FMR and of a fund advised by FMR.
Diane M. McLaughlin Vice President of FMR.
Neal P. Miller Vice President of FMR.
David L. Murphy Vice President of FMR and of funds advised by FMR.
Scott A. Orr Vice President of FMR and of funds advised by FMR.
Jacques Perold Vice President of FMR.
Anne Punzak Vice President of FMR.
Alan Radlo Vice President of FMR.
Kevin A. Richardson Vice President of FMR.
Eric D. Roiter Senior Vice President and General Counsel of FMR and
Secretary of funds advised by FMR.
Lee H. Sandwen Vice President of FMR.
Patricia A. Satterthwaite Vice President of FMR and of a fund advised by FMR.
Fergus Shiel Vice President of FMR.
Richard A. Silver Vice President of FMR.
Carol A. Smith-Fachetti Vice President of FMR.
Steven J. Snider Vice President of FMR.
Thomas T. Soviero Vice President of FMR and of a fund advised by FMR.
Richard Spillane Senior Vice President of FMR; Associate Director and
Senior Vice President of Equity Funds advised by FMR;
Previously, Senior Vice President and Director of
Operations and Compliance of FMR U.K.
Thomas M. Sprague Vice President of FMR and of funds advised by FMR.
Robert E. Stansky Senior Vice President of FMR and Vice President of a
fund advised by FMR.
Scott D. Stewart Vice President of FMR.
Cynthia L. Strauss Vice President of FMR.
Thomas Sweeney Vice President of FMR and of a fund advised by FMR.
Beth F. Terrana Senior Vice President of FMR and Vice President of a
fund advised by FMR.
Yoko Tilley Vice President of FMR.
Joel C. Tillinghast Vice President of FMR and of a fund advised by FMR.
Robert Tuckett Vice President of FMR.
Jennifer Uhrig Vice President of FMR and of funds advised by FMR.
George A. Vanderheiden Senior Vice President of FMR and Vice President of
funds advised by FMR; Director of FMR Corp.
Steven S. Wymer Vice President of FMR and of a fund advised by FMR.
</TABLE>
(2) FIDELITY MANAGEMENT & RESEARCH (U.K.) INC. (FMR U.K.)
25 Lovat Lane, London, EC3R 8LL, England
FMR U.K. provides investment advisory services to Fidelity Management
& Research Company and Fidelity Management Trust Company. The
directors and officers of the Sub-Adviser have held the following
positions of a substantial nature during the past two fiscal years.
Edward C. Johnson 3d Chairman of the Board and Director of FMR U.K.,
FMR, FMR Corp., FIMM, and FMR Far East; President
and Chief Executive Officer of FMR Corp.; Chairman
of the Executive Committee of FMR; Director of
Fidelity Investments Japan Limited (FIJ); President and
Trustee of funds advised by FMR.
Robert C. Pozen President and Director of FMR; Senior Vice President
and Trustee of funds advised by FMR; President and
Director of FIMM, FMR U.K., and FMR Far East;
Previously, General Counsel, Managing Director, and
Senior Vice President of FMR Corp.
Brian Clancy Treasurer of FMR U.K., FMR Far East, FMR, and
FIMM and Vice President of FMR.
Stephen G. Manning Assistant Treasurer of FMR U.K., FMR, FMR Far East,
and FIMM; Vice President and Treasurer of FMR
Corp.; Treasurer of Strategic Advisers, Inc.
Francis V. Knox Compliance Officer of FMR U.K.; Vice President of
FMR.
Jay Freedman Clerk of FMR U.K., FMR Far East, FMR Corp. and
Strategic Advisers, Inc.; Assistant Clerk of FMR;
Secretary of FIMM; Associate General Counsel FMR
Corp.
Sarah H. Zenoble Senior Vice President and Director of Operations and
Compliance.
(3) FIDELITY MANAGEMENT & RESEARCH (Far East) INC. (FMR Far East)
Shiroyama JT Mori Bldg., 4-3-1 Toranomon Minato-ku, Tokyo 105,
Japan
FMR Far East provides investment advisory services to Fidelity
Management & Research Company and Fidelity Management Trust Company.
The directors and officers of the Sub-Adviser have held the following
positions of a substantial nature during the past two fiscal years.
Edward C. Johnson 3d Chairman of the Board and Director of FMR Far
East, FMR, FMR Corp., FIMM, and FMR U.K.;
Chairman of the Executive Committee of FMR;
President and Chief Executive Officer of FMR
Corp.; Director of Fidelity Investments Japan
Limited (FIJ); President and Trustee of funds
advised by FMR.
Robert C. Pozen President and Director of FMR; Senior Vice
President and Trustee of funds advised by FMR;
President and Director of FIMM, FMR U.K., and
FMR Far East; Previously, General Counsel,
Managing Director, and Senior Vice President of
FMR Corp.
Robert H. Auld Senior Vice President of FMR Far East.
Brian Clancy Treasurer of FMR Far East, FMR U.K., FMR,
and FIMM and Vice President of FMR.
Jay Freedman Clerk of FMR Far East, FMR U.K., FMR Corp.
and Strategic Advisers, Inc.; Assistant Clerk of
FMR; Secretary of FIMM; Associate General
Counsel FMR Corp.
Stephen G. Manning Assistant Treasurer of FMR Far East, FMR,
FMR U.K., and FIMM; Vice President and
Treasurer of FMR Corp.; Treasurer of Strategic
Advisers, Inc.
Billy Wilder Vice President of FMR Far East; President and
Representative Director of Fidelity Investments
Japan Limited.
Item 29. Principal Underwriters
(a) Fidelity Distributors Corporation (FDC) acts as distributor for
all funds advised by FMR or an affiliate.
(b)
Name and Principal Positions and Offices Positions and Offices
Business Address* with Underwriter with Fund
Edward C. Johnson 3d Director Trustee and President
Michael Mlinac Director None
James Curvey Director None
Martha B. Willis President None
Eric D. Roiter Senior Vice President Secretary
Caron Ketchum Treasurer and Controller None
Gary Greenstein Assistant Treasurer None
Jay Freedman Assistant Clerk None
Linda Holland Compliance Officer None
* 82 Devonshire Street, Boston, MA
(c) Not applicable.
Item 30. Location of Accounts and Records
All accounts, books, and other documents required to be maintained by
Section 31a of the 1940 Act and the Rules promulgated thereunder are
maintained by Fidelity Management & Research Company or Fidelity
Service Company, Inc., 82 Devonshire Street, Boston, MA 02109, or the
funds' respective custodians, The Chase Manhattan Bank, 1 Chase
Manhattan Plaza, New York, NY and Brown Brothers Harriman & Co., 40
Water Street, Boston, MA.
Item 31. Management Services
Not applicable.
Item 32. Undertakings
The Registrant, on behalf of 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, and
Fidelity Advisor Utilities Growth Fund, provided the information
required by Item 5A is contained in the annual report, undertakes to
furnish to each person to whom a prospectus has been delivered, upon
their request and without charge, a copy of the Registrant's latest
annual report to shareholders.
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, the Registrant certifies that it meets
all of the requirements for the effectiveness of this Registration
Statement pursuant to Rule 485(b) under the Securities Act of 1933 and
has duly caused this Post-Effective Amendment No. 40 to the
Registration Statement to be signed on its behalf by the undersigned,
thereunto duly authorized, in the City of Boston, and the Commonwealth
of Massachusetts, on the 25th day of September 1998.
FIDELITY ADVISOR SERIES VII
By /s/Edward C. Johnson 3d (dagger)
Edward C. Johnson 3d, President
Pursuant to the requirements of the Securities Act of 1933, this
Registration Statement has been signed below by the following persons
in the capacities and on the dates indicated.
(Signature) (Title) (Date)
<TABLE>
<CAPTION>
<S> <C> <C>
/s/Edward C. Johnson 3d (dagger) President and Trustee September 25, 1998
Edward C. Johnson 3d (Principal Executive Officer)
/s/Richard A. Silver Treasurer September 25, 1998
Richard A. Silver
/s/Robert C. Pozen Trustee September 25, 1998
Robert C. Pozen
/s/Ralph F. Cox * Trustee September 25, 1998
Ralph F. Cox
/s/Phyllis Burke Davis * Trustee September 25, 1998
Phyllis Burke Davis
/s/Robert M. Gates ** Trustee September 25, 1998
Robert M. Gates
/s/E. Bradley Jones * Trustee September 25, 1998
E. Bradley Jones
/s/Donald J. Kirk * Trustee September 25, 1998
Donald J. Kirk
/s/Peter S. Lynch * Trustee September 25, 1998
Peter S. Lynch
/s/Marvin L. Mann * Trustee September 25, 1998
Marvin L. Mann
/s/William O. McCoy * Trustee September 25, 1998
William O. McCoy
/s/Gerald C. McDonough * Trustee September 25, 1998
Gerald C. McDonough
/s/Thomas R. Williams * Trustee September 25, 1998
Thomas R. Williams
</TABLE>
(dagger) Signatures affixed by Robert C. Pozen pursuant to a power of
attorney dated July 17, 1997 and filed herewith.
* Signature affixed by Robert C. Hacker pursuant to a power of
attorney dated December 19, 1996 and filed herewith.
** Signature affixed by Robert C. Hacker pursuant to a power of
attorney dated March 6, 1997 and filed herewith.
POWER OF ATTORNEY
I, the undersigned President and Director, Trustee, or General
Partner, as the case may be, of the following investment companies:
<TABLE>
<CAPTION>
<S> <C>
Fidelity Aberdeen Street Trust Fidelity Hereford Street Trust
Fidelity Advisor Series I Fidelity Income Fund
Fidelity Advisor Series II Fidelity Institutional Cash Portfolios
Fidelity Advisor Series III Fidelity Institutional Tax-Exempt Cash Portfolios
Fidelity Advisor Series IV Fidelity Investment Trust
Fidelity Advisor Series V Fidelity Magellan Fund
Fidelity Advisor Series VI Fidelity Massachusetts Municipal Trust
Fidelity Advisor Series VII Fidelity Money Market Trust
Fidelity Advisor Series VIII Fidelity Mt. Vernon Street Trust
Fidelity Beacon Street Trust Fidelity Municipal Trust
Fidelity Boston Street Trust Fidelity Municipal Trust II
Fidelity California Municipal Trust Fidelity New York Municipal Trust
Fidelity California Municipal Trust II Fidelity New York Municipal Trust II
Fidelity Capital Trust Fidelity Phillips Street Trust
Fidelity Charles Street Trust Fidelity Puritan Trust
Fidelity Commonwealth Trust Fidelity Revere Street Trust
Fidelity Concord Street Trust Fidelity School Street Trust
Fidelity Congress Street Fund Fidelity Securities Fund
Fidelity Contrafund Fidelity Select Portfolios
Fidelity Corporate Trust Fidelity Sterling Performance Portfolio, L.P.
Fidelity Court Street Trust Fidelity Summer Street Trust
Fidelity Court Street Trust II Fidelity Trend Fund
Fidelity Covington Trust Fidelity U.S. Investments-Bond Fund, L.P.
Fidelity Daily Money Fund Fidelity U.S. Investments-Government Securities
Fidelity Destiny Portfolios Fund, L.P.
Fidelity Deutsche Mark Performance Fidelity Union Street Trust
Portfolio, L.P. Fidelity Union Street Trust II
Fidelity Devonshire Trust Fidelity Yen Performance Portfolio, L.P.
Fidelity Exchange Fund Newbury Street Trust
Fidelity Financial Trust Variable Insurance Products Fund
Fidelity Fixed-Income Trust Variable Insurance Products Fund II
Fidelity Government Securities Fund Variable Insurance Products Fund III
Fidelity Hastings Street Trust
</TABLE>
in addition to any other investment company for which Fidelity
Management & Research Company or an affiliate acts as investment
adviser and for which the undersigned individual serves as President
and Director, Trustee, or General Partner (collectively, the "Funds"),
hereby constitute and appoint Robert C. Pozen my true and lawful
attorney-in-fact, with full power of substitution, and with full power
to him to sign for me and in my name in the appropriate capacity, all
Registration Statements of the Funds on Form N-1A, Form N-8A, or any
successor thereto, any and all subsequent Amendments, Pre-Effective
Amendments, or Post-Effective Amendments to said Registration
Statements on Form N-1A, Form N-8A, or any successor thereto, any
Registration Statements on Form N-14, and any supplements or other
instruments in connection therewith, and generally to do all such
things in my name and on my behalf in connection therewith as said
attorney-in-fact deems necessary or appropriate, to comply with the
provisions of the Securities Act of 1933 and the Investment Company
Act of 1940, and all related requirements of the Securities and
Exchange Commission. I hereby ratify and confirm all that said
attorney-in-fact or his substitutes may do or cause to be done by
virtue hereof. This power of attorney is effective for all documents
filed on or after August 1, 1997.
WITNESS my hand on the date set forth below.
/s/Edward C. Johnson 3d_ July 17, 1997
Edward C. Johnson 3d
POWER OF ATTORNEY
We, the undersigned Directors, Trustees, or General Partners, as the
case may be, of the following investment companies:
<TABLE>
<CAPTION>
<S> <C>
Fidelity Aberdeen Street Trust Fidelity Government Securities Fund
Fidelity Advisor Annuity Fund Fidelity Hastings Street Trust
Fidelity Advisor Series I Fidelity Hereford Street Trust
Fidelity Advisor Series II Fidelity Income Fund
Fidelity Advisor Series III Fidelity Institutional Cash Portfolios
Fidelity Advisor Series IV Fidelity Institutional Tax-Exempt Cash Portfolios
Fidelity Advisor Series V Fidelity Institutional Trust
Fidelity Advisor Series VI Fidelity Investment Trust
Fidelity Advisor Series VII Fidelity Magellan Fund
Fidelity Advisor Series VIII Fidelity Massachusetts Municipal Trust
Fidelity Beacon Street Trust Fidelity Money Market Trust
Fidelity Boston Street Trust Fidelity Mt. Vernon Street Trust
Fidelity California Municipal Trust Fidelity Municipal Trust
Fidelity California Municipal Trust II Fidelity Municipal Trust II
Fidelity Capital Trust Fidelity New York Municipal Trust
Fidelity Charles Street Trust Fidelity New York Municipal Trust II
Fidelity Commonwealth Trust Fidelity Phillips Street Trust
Fidelity Congress Street Fund Fidelity Puritan Trust
Fidelity Contrafund Fidelity Revere Street Trust
Fidelity Corporate Trust Fidelity School Street Trust
Fidelity Court Street Trust Fidelity Securities Fund
Fidelity Court Street Trust II Fidelity Select Portfolios
Fidelity Covington Trust Fidelity Sterling Performance Portfolio, L.P.
Fidelity Daily Money Fund Fidelity Summer Street Trust
Fidelity Daily Tax-Exempt Fund Fidelity Trend Fund
Fidelity Destiny Portfolios Fidelity U.S. Investments-Bond Fund, L.P.
Fidelity Deutsche Mark Performance Fidelity U.S. Investments-Government Securities
Portfolio, L.P. Fund, L.P.
Fidelity Devonshire Trust Fidelity Union Street Trust
Fidelity Exchange Fund Fidelity Union Street Trust II
Fidelity Financial Trust Fidelity Yen Performance Portfolio, L.P.
Fidelity Fixed-Income Trust Variable Insurance Products Fund
Variable Insurance Products Fund II
</TABLE>
plus any other investment company for which Fidelity Management &
Research Company or an affiliate acts as investment adviser and for
which the undersigned individual serves as Directors, Trustees, or
General Partners (collectively, the "Funds"), hereby constitute and
appoint Arthur J. Brown, Arthur C. Delibert, Stephanie A. Djinis,
Robert C. Hacker, Thomas M. Leahey, Richard M. Phillips, and Dana L.
Platt, each of them singly, our true and lawful attorneys-in-fact,
with full power of substitution, and with full power to each of them,
to sign for us and in our names in the appropriate capacities, all
Registration Statements of the Funds on Form N-1A, Form N-8A or any
successor thereto, any and all subsequent Amendments, Pre-Effective
Amendments, or Post-Effective Amendments to said Registration
Statements on Form N-1A or any successor thereto, any Registration
Statements on Form N-14, and any supplements or other instruments in
connection therewith, and generally to do all such things in our names
and behalf in connection therewith as said attorneys-in-fact deems
necessary or appropriate, to comply with the provisions of the
Securities Act of 1933 and the Investment Company Act of 1940, and all
related requirements of the Securities and Exchange Commission. I
hereby ratify and confirm all that said attorneys-in-fact or their
substitutes may do or cause to be done by virtue hereof. This power
of attorney is effective for all documents filed on or after January
1, 1997.
WITNESS our hands on this nineteenth day of December, 1996.
/s/Edward C. Johnson 3d___________ /s/Peter S. Lynch________________
Edward C. Johnson 3d Peter S. Lynch
/s/J. Gary Burkhead_______________ /s/William O. McCoy______________
J. Gary Burkhead William O. McCoy
/s/Ralph F. Cox __________________ /s/Gerald C. McDonough___________
Ralph F. Cox Gerald C. McDonough
/s/Phyllis Burke Davis_____________ /s/Marvin L. Mann________________
Phyllis Burke Davis Marvin L. Mann
/s/E. Bradley Jones________________ /s/Thomas R. Williams ____________
E. Bradley Jones Thomas R. Williams
/s/Donald J. Kirk __________________
Donald J. Kirk
POWER OF ATTORNEY
I, the undersigned Director, Trustee, or General Partner, as the case
may be, of the following investment companies:
<TABLE>
<CAPTION>
<S> <C>
Fidelity Aberdeen Street Trust Fidelity Government Securities Fund
Fidelity Advisor Annuity Fund Fidelity Hastings Street Trust
Fidelity Advisor Series I Fidelity Hereford Street Trust
Fidelity Advisor Series II Fidelity Income Fund
Fidelity Advisor Series III Fidelity Institutional Cash Portfolios
Fidelity Advisor Series IV Fidelity Institutional Tax-Exempt Cash Portfolios
Fidelity Advisor Series V Fidelity Institutional Trust
Fidelity Advisor Series VI Fidelity Investment Trust
Fidelity Advisor Series VII Fidelity Magellan Fund
Fidelity Advisor Series VIII Fidelity Massachusetts Municipal Trust
Fidelity Beacon Street Trust Fidelity Money Market Trust
Fidelity Boston Street Trust Fidelity Mt. Vernon Street Trust
Fidelity California Municipal Trust Fidelity Municipal Trust
Fidelity California Municipal Trust II Fidelity Municipal Trust II
Fidelity Capital Trust Fidelity New York Municipal Trust
Fidelity Charles Street Trust Fidelity New York Municipal Trust II
Fidelity Commonwealth Trust Fidelity Phillips Street Trust
Fidelity Congress Street Fund Fidelity Puritan Trust
Fidelity Contrafund Fidelity Revere Street Trust
Fidelity Corporate Trust Fidelity School Street Trust
Fidelity Court Street Trust Fidelity Securities Fund
Fidelity Court Street Trust II Fidelity Select Portfolios
Fidelity Covington Trust Fidelity Sterling Performance Portfolio, L.P.
Fidelity Daily Money Fund Fidelity Summer Street Trust
Fidelity Daily Tax-Exempt Fund Fidelity Trend Fund
Fidelity Destiny Portfolios Fidelity U.S. Investments-Bond Fund, L.P.
Fidelity Deutsche Mark Performance Fidelity U.S. Investments-Government Securities
Portfolio, L.P. Fund, L.P.
Fidelity Devonshire Trust Fidelity Union Street Trust
Fidelity Exchange Fund Fidelity Union Street Trust II
Fidelity Financial Trust Fidelity Yen Performance Portfolio, L.P.
Fidelity Fixed-Income Trust Variable Insurance Products Fund
Variable Insurance Products Fund II
</TABLE>
plus any other investment company for which Fidelity Management &
Research Company or an affiliate acts as investment adviser and for
which the undersigned individual serves as Director, Trustee, or
General Partner (collectively, the "Funds"), hereby constitute and
appoint Arthur J. Brown, Arthur C. Delibert, Stephanie A. Djinis,
Robert C. Hacker, Thomas M. Leahey, Richard M. Phillips, and Dana L.
Platt, each of them singly, my true and lawful attorneys-in-fact, with
full power of substitution, and with full power to each of them, to
sign for me and in my name in the appropriate capacities, all
Registration Statements of the Funds on Form N-1A, Form N-8A or any
successor thereto, any and all subsequent Amendments, Pre-Effective
Amendments, or Post-Effective Amendments to said Registration
Statements on Form N-1A or any successor thereto, any Registration
Statements on Form N-14, and any supplements or other instruments in
connection therewith, and generally to do all such things in my name
and behalf in connection therewith as said attorneys-in-fact deem
necessary or appropriate, to comply with the provisions of the
Securities Act of 1933 and the Investment Company Act of 1940, and all
related requirements of the Securities and Exchange Commission. I
hereby ratify and confirm all that said attorneys-in-fact or their
substitutes may do or cause to be done by virtue hereof. This power
of attorney is effective for all documents filed on or after March 1,
1997.
WITNESS my hand on the date set forth below.
/s/Robert M. Gates March 6, 1997
Robert M. Gates
Exhibit 6(h)
BANK AGENCY AGREEMENT
We at Fidelity Distributors Corporation offer to make available to
your customers shares of the mutual funds, or the separate series or
classes of the mutual funds, listed on Schedules A and B attached to
this Agreement (the "Portfolios"). We may periodically change the
list of Portfolios by giving you written notice of the change. We are
the Portfolios' principal underwriter and act as agent for the
Portfolios. You (____________________________________) are a division
or affiliate of a bank (____________________________________) and
desire to make Portfolio shares available to your customers on the
following terms:
1. Certain Defined Terms: As used in this Agreement, the term
"Prospectus" means the applicable Portfolio's prospectus and related
statement of additional information, whether in paper format or
electronic format, included in the Portfolio's then currently
effective registration statement (or post-effective amendment
thereto), and any information that we or the Portfolio may issue to
you as a supplement to such prospectus or statement of additional
information (a "sticker"), all as filed with the Securities and
Exchange Commission (the "SEC") pursuant to the Securities Act of
1933.
2. Making Portfolio Shares Available to Your Customers: (a) In all
transactions covered by this Agreement: (i) you will act as agent for
your customers; in no transaction are you authorized to act as agent
for us or for any Portfolio; (ii) you will initiate transactions only
upon your customers' orders; (iii) we will execute transactions only
upon receiving instructions from you acting as agent for your
customers; and (iv) each transaction will be for your customer's
account and not for your own account. Each transaction will be
without recourse to you, provided that you act in accordance with the
terms of this Agreement.
(b) You agree to make Portfolio shares available to your customers
only at the applicable public offering price in accordance with the
Prospectus. If your customer qualifies for a reduced sales charge
pursuant to a special purchase plan (for example, a quantity discount,
letter of intent, or right of accumulation) as described in the
Prospectus, you agree to make Portfolio shares available to your
customer at the applicable reduced sales charge. You agree to deliver
or cause to be delivered to each customer, at or prior to the time of
any purchase of shares, a copy of the then current prospectus
(including any stickers thereto), unless such prospectus has already
been delivered to the customer, and to each customer who so requests,
a copy of the then current statement of additional information
(including any stickers thereto).
(c) You agree to order Portfolio shares from us only to cover
purchase orders that you have already received from your customers, or
for your own investment. You will not withhold placing customers'
orders so as to profit yourself as a result of such withholding (for
example, by a change in a Portfolio's net asset value from that used
in determining the offering price to your customers).
(d) We will accept your purchase orders only at the public offering
price applicable to each order, as determined in accordance with the
Prospectus. We will not accept from you a conditional order for
Portfolio shares. All orders are subject to acceptance or rejection
by us in our sole discretion. We may, without notice, suspend sales
or withdraw the offering of Portfolio shares, or make a limited
offering of Portfolio shares.
(e) The placing of orders with us will be governed by instructions
that we will periodically issue to you. You must pay for Portfolio
shares in New York or Boston clearing house funds or in federal funds
in accordance with such instructions, and we must receive your payment
on or before the settlement date established in accordance with Rule
15c6-1 under the Securities Exchange Act of 1934 (the "1934 Act").
(f) You agree to comply with all applicable state and federal laws
and with the rules and regulations of authorized regulatory agencies
thereunder. You agree to make Portfolio shares available to your
customers only in states where you may legally make such Portfolio's
shares available. You will not make available shares of any Portfolio
unless such shares are registered under the applicable state and
federal laws and the rules and regulations thereunder.
(g) Certificates evidencing Portfolio shares are not available; any
transaction in Portfolio shares will be effected and evidenced by
book-entry on the records maintained by Fidelity Investments
Institutional Operations Company, Inc. ("FIIOC"). A confirmation
statement evidencing transactions in Portfolio shares will be
transmitted to you.
(h) You may designate FIIOC to execute your customers' transactions
in Portfolio shares in accordance with the terms of any account,
program, plan, or service established or used by your customers, and
to confirm each transaction to your customers on your behalf on a
fully disclosed basis. At the time of the transaction, you guarantee
the legal capacity of your customers and any co-owners of such shares
so transacting in such shares.
3. Your Compensation: (a) Your fee, if any, for acting as agent
with respect to sales of Portfolio shares will be as provided in the
Prospectus or in the applicable schedule of agency fees issued by us
and in effect at the time of the sale. Upon written notice to you, we
or any Portfolio may change or discontinue any schedule of agency
fees, or issue a new schedule.
(b) If a Portfolio has adopted a plan pursuant to Rule 12b-1 under
the Investment Company Act of 1940 (a "Plan"), we may make
distribution payments or service payments to you under the Plan. If a
Portfolio does not have a currently effective Plan, we or Fidelity
Management & Research Company may make distribution payments or
service payments to you from our own funds. Any distribution payments
or service payments will be made in the amount and manner set forth in
the Prospectus or in the applicable schedule of distribution payments
or service payments issued by us and then in effect. Upon written
notice to you, we or any Portfolio may change or discontinue any
schedule of distribution payments or service payments, or issue a new
schedule. A schedule of distribution payments or service payments
will be in effect with respect to a Portfolio that has a Plan only so
long as that Portfolio's Plan remains in effect.
(c) After the effective date of any change in or discontinuance of
any schedule of agency fees, distribution payments, or service
payments, or the termination of a Plan, any agency fees, distribution
payments, or service payments will be allowable or payable to you only
in accordance with such change, discontinuance, or termination. You
agree that you will have no claim against us or any Portfolio by
virtue of any such change, discontinuance, or termination. In the
event of any overpayment by us of any agency fee, distribution
payment, or service payment, you will remit such overpayment.
(d) If, within seven (7) business days after our confirmation of
the original purchase order for shares of a Portfolio, such shares are
redeemed by the issuing Portfolio or tendered for redemption by the
customer, you agree (i) to refund promptly to us the full amount of
any agency fee, distribution payment, or service payment paid to you
on such shares, and (ii) if not yet paid to you, to forfeit the right
to receive any agency fee, distribution payment, or service payment
payable to you on such shares. We will notify you of any such
redemption within ten (10) days after the date of the redemption.
4. Certain Types of Accounts: (a) You may instruct FIIOC to
register purchased shares in your name and account as nominee for your
customers. If you hold Portfolio shares as nominee for your
customers, all Prospectuses, proxy statements, periodic reports, and
other printed material will be sent to you, and all confirmations and
other communications to shareholders will be transmitted to you. You
will be responsible for forwarding such printed material,
confirmations, and communications, or the information contained
therein, to all customers for whose account you hold any Portfolio
shares as nominee. However, we or FIIOC on behalf of itself or the
Portfolios will be responsible for the costs associated with your
forwarding such printed material, confirmations, and communications.
You will be responsible for complying with all reporting and tax
withholding requirements with respect to the customers for whose
account you hold any Portfolio shares as nominee.
(b) With respect to accounts other than those accounts referred to
in paragraph 4(a) above, you agree to provide us with all information
(including certification of taxpayer identification numbers and
back-up withholding instructions) necessary or appropriate for us to
comply with legal and regulatory reporting requirements.
(c) Accounts opened or maintained pursuant to the NETWORKING system
of the National Securities Clearing Corporation ("NSCC") will be
governed by applicable NSCC rules and procedures and any agreement or
other arrangement with us relating to NETWORKING.
(d) If you hold Portfolio shares in an omnibus account for two or
more customers, you will be responsible for determining, in accordance
with the Prospectus, whether, and the extent to which, a CDSC is
applicable to a purchase of Portfolio shares from such a customer, and
you agree to transmit immediately to us any CDSC to which such
purchase was subject. You hereby represent that if you hold Portfolio
shares subject to a CDSC, you have the capability to track and account
for such charge, and we reserve the right, at our discretion, to
verify that capability by inspecting your tracking and accounting
system or otherwise.
5. Status as Registered Broker/Dealer or "Bank": (a) Each party to
this Agreement represents to the other party that it is either (i) a
registered broker/dealer under the 1934 Act, or (ii) a "bank" as
defined in Section 3(a)(6) of the 1934 Act.
(b) If a party is a registered broker/dealer, such party represents
that it is qualified to act as a broker/dealer in the states where it
transacts business, and it is a member in good standing of the
National Association of Securities Dealers, Inc. ("NASD"). It agrees
to maintain its broker/dealer registration and qualifications and its
NASD membership in good standing throughout the term of this
Agreement. It agrees to abide by all of the NASD's rules and
regulations, including the NASD's Conduct Rules -- in particular,
Section 2830 of such Rules, which section is deemed a part of and is
incorporated by reference in this Agreement. This Agreement will
terminate automatically without notice in the event that a party's
NASD membership is terminated.
(c) If you are a "bank", you represent that you are duly authorized
to engage in the transactions to be performed under this Agreement,
and you agree to comply with all applicable federal and state laws,
including the rules and regulations of all applicable federal and
state bank regulatory agencies and authorities. This Agreement will
terminate automatically without notice in the event that you cease to
be a "bank" as defined in Section 3(a)(6) of the 1934 Act.
(d) Nothing in this Agreement shall cause you to be our partner,
employee, or agent, or give you any authority to act for us or for any
Portfolio. Neither we nor any Portfolio shall be liable for any of
your acts or obligations as a dealer under this Agreement.
6. Information Relating to the Portfolios: (a) No person is
authorized to make any representations concerning shares of a
Portfolio other than those contained in the Portfolio's Prospectus.
In ordering Portfolio shares from us under this Agreement, you will
rely only on the representations contained in the Prospectus. Upon
your request, we will furnish you with a reasonable number of copies
of the Portfolios' current prospectuses or statements of additional
information or both (including any stickers thereto).
(b) Any printed or electronic information that we furnish you
(other than the Portfolios' Prospectuses and periodic reports) is our
sole responsibility and not the responsibility of the respective
Portfolios. You agree that the Portfolios will have no liability or
responsibility to you with respect to any such printed or electronic
information. We or the respective Portfolio will bear the expense of
qualifying its shares under the state securities laws.
(c) You may not use any sales literature or advertising material
(including material disseminated through radio, television, or other
electronic media) concerning Portfolio shares, other than the printed
or electronic information referred to in paragraph 6(b) above, in
connection with making Portfolio shares available to your customers
without obtaining our prior written approval. You may not distribute
or make available to investors any information that we furnish you
marked "FOR DEALER USE ONLY" or that otherwise indicates that it is
confidential or not intended to be distributed to investors.
7. Indemnification: (a) We will indemnify and hold you harmless
from any claim, demand, loss, expense, or cause of action resulting
from the misconduct or negligence, as measured by industry standards,
of us, our agents and employees, in carrying out our obligations under
this Agreement. Such indemnification will survive the termination of
this Agreement.
(b) You will indemnify and hold us harmless from any claim, demand,
loss, expense, or cause of action resulting from the misconduct or
negligence, as measured by industry standards, of you, your agents and
employees, in carrying out your obligations under this Agreement.
Such indemnification will survive the termination of this Agreement.
8. Customer Lists: We hereby agree that we shall not use any list of
your customers which may be obtained in connection with this Agreement
for the purpose of solicitation of any product or service without your
express written consent. However, nothing in this paragraph or
otherwise shall be deemed to prohibit or restrict us or our affiliates
in any way from solicitations of any product or service directed at,
without limitation, the general public, any segment thereof, or any
specific individual, provided such solicitation is not based upon such
list.
9. Duration of Agreement: This Agreement, with respect to any Plan,
will continue in effect for one year from its effective date, and
thereafter will continue automatically for successive annual periods;
provided, however, that such continuance is subject to termination at
any time without penalty if a majority of a Portfolio's Trustees who
are not interested persons of the Portfolio (as defined in the
Investment Company Act of 1940 (the "1940 Act")), or a majority of the
outstanding shares of the Portfolio, vote to terminate or not to
continue the Plan. This Agreement, other than with respect to a Plan,
will continue in effect from year to year after its effective date,
unless terminated as provided herein.
10. Amendment and Termination of Agreement: (a) We may amend any
provision of this Agreement by giving you written notice of the
amendment. Either party to this Agreement may terminate the Agreement
without cause by giving the other party at least thirty (30) days'
written notice of its intention to terminate. This Agreement will
terminate automatically in the event of its assignment (as defined in
the 1940 Act).
(b) In the event that (i) an application for a protective decree
under the provisions of the Securities Investor Protection Act of 1970
is file against you; (ii) you file a petition in bankruptcy or a
petition seeking similar relief under any bankruptcy, insolvency, or
similar law, or a proceeding is commenced against you seeking such
relief; or (iii) you are found by the SEC, the NASD, or any other
federal or state regulatory agency or authority to have violated any
applicable federal or state law, rule or regulation arising out of
your activities as a broker/dealer or in connection with this
Agreement, this Agreement will terminate effective immediately upon
our giving notice of termination to you. You agree to notify us
promptly and to immediately suspend making Portfolio shares available
to your customers in the event of any such filing or violation, or in
the event that you cease to be a member in good standing of the NASD
or you cease to be a "bank" as defined in Section 3(a)(6) of the 1934
Act.
(c) Your or our failure to terminate this Agreement for a
particular cause will not constitute a waiver of the right to
terminate this Agreement at a later date for the same or another
cause. The termination of this Agreement with respect to any one
Portfolio will not cause its termination with respect to any other
Portfolio.
11. Arbitration: In the event of a dispute, such dispute will be
settled by arbitration before arbitrators sitting in Boston,
Massachusetts in accordance with the NASD's Code of Arbitration
Procedure in effect at the time of the dispute. The arbitrators will
act by majority decision and their award may allocate attorneys' fees
and arbitration costs between us. Their award will be final and
binding between us, and such award may be entered as a judgment in any
court of competent jurisdiction.
12. Notices: All notices required or permitted to be given under this
Agreement shall be given in writing and delivered by personal
delivery, by postage prepaid mail, or by facsimile machine or a
similar means of same day delivery (with a confirming copy by mail).
All notices to us shall be given or sent to us at our offices located
at 82 Devonshire Street, Mail Zone L12A, Boston, Massachusetts 02109,
Attn: Bank Wholesale Market. All notices to you shall be given or
sent to you at the address specified by you below. Each of us may
change the address to which notices shall be sent by giving notice to
the other party in accordance with this paragraph 12.
13. Miscellaneous: This Agreement, as it may be amended from time to
time, shall become effective as of the date when it is accepted and
dated below by us. This Agreement is to be construed in accordance
with the laws of the Commonwealth of Massachusetts. This Agreement
supersedes and cancels any prior agreement between us, whether oral or
written, relating to the sale of shares of the Portfolios or any other
subject covered by this Agreement. The captions in this Agreement are
included for convenience of reference only and in no way define or
limit any of the provisions of this Agreement or otherwise affect
their construction or effect.
Very truly yours,
FIDELITY DISTRIBUTORS
CORPORATION
Please return two signed copies of this Agreement to Fidelity
Distributors Corporation. Upon acceptance, one countersigned copy
will be returned to you for your files.
_____________________________________
Name of Firm
Address: _____________________________
_____________________________________
_____________________________________
By __________________________________
Authorized Representative
_____________________________________
Name and Title (please print or type)
ACCEPTED AND AGREED:
FIDELITY DISTRIBUTORS CORPORATION
By __________________________________
Dated: ________________
** DISCARD THIS PAGE AND ATTACH REVISED SCHEDULES A AND B **
Exhibit 6(i)
SELLING DEALER AGREEMENT
We at Fidelity Distributors Corporation invite you
(______________________________) to distribute shares of the mutual
funds, or the separate series or classes of the mutual funds, listed
on Schedule A attached to this Agreement (the "Portfolios"). We may
periodically change the list of Portfolios by giving you written
notice of the change. We are the Portfolios' principal underwriter
and, as agent for the Portfolios, we offer to sell Portfolio shares to
you on the following terms:
1. Certain Defined Terms: As used in this Agreement, the term
"Prospectus" means the applicable Portfolio's prospectus and related
statement of additional information, whether in paper format or
electronic format, included in the Portfolio's then currently
effective registration statement (or post-effective amendment
thereto), and any information that we or the Portfolio may issue to
you as a supplement to such prospectus or statement of additional
information (a "sticker"), all as filed with the Securities and
Exchange Commission (the "SEC") pursuant to the Securities Act of
1933.
2. Purchases of Portfolio Shares for Sale to Customers: (a) In
offering and selling Portfolio shares to your customers, you agree to
act as dealer for your own account; you are not authorized to act as
agent for us or for any Portfolio.
(b) You agree to offer and sell Portfolio shares to your customers
only at the applicable public offering price in accordance with the
Prospectus. If your customer qualifies for a reduced sales charge
pursuant to a special purchase plan (for example, a quantity discount,
letter of intent, or right of accumulation) as described in the
Prospectus, you agree to offer and sell Portfolio shares to your
customer at the applicable reduced sales charge. You agree to deliver
or cause to be delivered to each customer, at or prior to the time of
any purchase of shares, a copy of the then current prospectus
(including any stickers thereto), unless such prospectus has already
been delivered to the customer, and to each customer who so requests,
a copy of the then current statement of additional information
(including any stickers thereto).
(c) You agree to purchase Portfolio shares from us only to cover
purchase orders that you have already received from your customers, or
for your own investment. You also agree not to purchase any Portfolio
shares from your customers at a price lower than the applicable
redemption price, determined in the manner described in the
Prospectus. You will not withhold placing customers' orders so as to
profit yourself as a result of such withholding (for example, by a
change in a Portfolio's net asset value from that used in determining
the offering price to your customers).
(d) We will accept your purchase orders only at the public offering
price applicable to each order, as determined in accordance with the
Prospectus. We will not accept from you a conditional order for
Portfolio shares. All orders are subject to acceptance or rejection
by us in our sole discretion. We may, without notice, suspend sales
or withdraw the offering of Portfolio shares, or make a limited
offering of Portfolio shares.
(e) The placing of orders with us will be governed by instructions
that we will periodically issue to you. You must pay for Portfolio
shares in New York or Boston clearing house funds or in federal funds
in accordance with such instructions, and we must receive your payment
on or before the settlement date established in accordance with Rule
15c6-1 under the Securities Exchange Act of 1934 (the "1934 Act"). If
we do not receive your payment on or before such settlement date, we
may, without notice, cancel the sale, or, at our option, sell the
shares that you ordered back to the issuing Portfolio, and we may hold
you responsible for any loss suffered by us or the issuing Portfolio
as a result of your failure to make payment as required.
(f) You agree to comply with all applicable state and federal laws
and with the rules and regulations of authorized regulatory agencies
thereunder. You agree to offer and sell Portfolio shares only in
states where you may legally offer and sell such Portfolio's shares.
You will not offer shares of any Portfolio for sale unless such shares
are registered for sale under the applicable state and federal laws
and the rules and regulations thereunder.
(g) Certificates evidencing Portfolio shares are not available; any
transaction in Portfolio shares will be effected and evidenced by
book-entry on the records maintained by Fidelity Investments
Institutional Operations Company, Inc. ("FIIOC"). A confirmation
statement evidencing transactions in Portfolio shares will be
transmitted to you.
(h) You may designate FIIOC to execute your customers' transactions
in Portfolio shares in accordance with the terms of any account,
program, plan, or service established or used by your customers, and
to confirm each transaction to your customers on your behalf. At the
time of the transaction, you guarantee the legal capacity of your
customers and any co-owners of such shares so transacting in such
shares.
3. Your Compensation: (a) Your concession, if any, on your sales of
Portfolio shares will be as provided in the Prospectus or in the
applicable schedule of concessions issued by us and in effect at the
time of our sale to you. Upon written notice to you, we or any
Portfolio may change or discontinue any schedule of concessions, or
issue a new schedule.
(b) If a Portfolio has adopted a plan pursuant to Rule 12b-1 under
the Investment Company Act of 1940 (a "Plan"), we may make
distribution payments or service payments to you under the Plan. If a
Portfolio does not have a currently effective Plan, we or Fidelity
Management & Research Company may make distribution payments or
service payments to you from our own funds. Any distribution payments
or service payments will be made in the amount and manner set forth in
the Prospectus or in the applicable schedule of distribution payments
or service payments issued by us and then in effect. Upon written
notice to you, we or any Portfolio may change or discontinue any
schedule of distribution payments or service payments, or issue a new
schedule. A schedule of distribution payments or service payments
will be in effect with respect to a Portfolio that has a Plan only so
long as that Portfolio's Plan remains in effect.
(c) After the effective date of any change in or discontinuance of
any schedule of concessions, distribution payments, or service
payments, or the termination of a Plan, any concessions, distribution
payments, or service payments will be allowable or payable to you only
in accordance with such change, discontinuance, or termination. You
agree that you will have no claim against us or any Portfolio by
virtue of any such change, discontinuance, or termination. In the
event of any overpayment by us of any concession, distribution
payment, or service payment, you will remit such overpayment.
(d) If any Portfolio shares sold to you by us under the terms of
this Agreement are redeemed by the issuing Portfolio or tendered for
redemption by the customer within seven (7) business days after the
date of our confirmation of your original purchase order for such
shares, you agree (i) to refund promptly to us the full amount of any
concession, distribution payment, or service payment allowed or paid
to you on such shares, and (ii) if not yet allowed or paid to you, to
forfeit the right to receive any concession, distribution payment, or
service payment allowable or payable to you on such shares. We will
notify you of any such redemption within ten (10) days after the date
of the redemption.
4. Certain Types of Accounts: (a) You may instruct FIIOC to
register purchased shares in your name and account as nominee for your
customers. If you hold Portfolio shares as nominee for your
customers, all Prospectuses, proxy statements, periodic reports, and
other printed material will be sent to you, and all confirmations and
other communications to shareholders will be transmitted to you. You
will be responsible for forwarding such printed material,
confirmations, and communications, or the information contained
therein, to all customers for whose account you hold any Portfolio
shares as nominee. However, we or FIIOC on behalf of itself or the
Portfolios will be responsible for the costs associated with your
forwarding such printed material, confirmations, and communications.
You will be responsible for complying with all reporting and tax
withholding requirements with respect to the customers for whose
account you hold any Portfolio shares as nominee.
(b) With respect to accounts other than those accounts referred to
in paragraph 4(a) above, you agree to provide us with all information
(including certification of taxpayer identification numbers and
back-up withholding instructions) necessary or appropriate for us to
comply with legal and regulatory reporting requirements.
(c) Accounts opened or maintained pursuant to the NETWORKING system
of the National Securities Clearing Corporation ("NSCC") will be
governed by applicable NSCC rules and procedures and any agreement or
other arrangement with us relating to NETWORKING.
(d) If you hold Portfolio shares in an omnibus account for two or
more customers, you will be responsible for determining, in accordance
with the Prospectus, whether, and the extent to which, a CDSC is
applicable to a purchase of Portfolio shares from such a customer, and
you agree to transmit immediately to us any CDSC to which such
purchase was subject. You hereby represent that if you hold Portfolio
shares subject to a CDSC, you have the capability to track and account
for such charge, and we reserve the right, at our discretion, to
verify that capability by inspecting your tracking and accounting
system or otherwise.
5. Status as Registered Broker/Dealer: (a) Each party to this
Agreement represents to the other party that (i) it is registered as a
broker/dealer under the 1934 Act, (ii) it is qualified to act as a
broker/dealer in the states where it transacts business, and (iii) it
is a member in good standing of the National Association of Securities
Dealers, Inc. ("NASD"). Each party agrees to maintain its
broker/dealer registration and qualifications and its NASD membership
in good standing throughout the term of this Agreement. Each party
agrees to abide by all of the NASD's rules and regulations, including
the NASD's Conduct Rules -- in particular, Section 2830 of such Rules,
which section is deemed a part of and is incorporated by reference in
this Agreement. This Agreement will terminate automatically without
notice in the event that either party's NASD membership is terminated.
(b) Nothing in this Agreement shall cause you to be our partner,
employee, or agent, or give you any authority to act for us or for any
Portfolio. Neither we nor any Portfolio shall be liable for any of
your acts or obligations as a dealer under this Agreement.
6. Information Relating to the Portfolios: (a) No person is
authorized to make any representations concerning shares of a
Portfolio other than those contained in the Portfolio's Prospectus.
In buying Portfolio shares from us under this Agreement, you will rely
only on the representations contained in the Prospectus. Upon your
request, we will furnish you with a reasonable number of copies of the
Portfolios' current prospectuses or statements of additional
information or both (including any stickers thereto).
(b) Any printed or electronic information that we furnish you
(other than the Portfolios' Prospectuses and periodic reports) is our
sole responsibility and not the responsibility of the respective
Portfolios. You agree that the Portfolios will have no liability or
responsibility to you with respect to any such printed or electronic
information. We or the respective Portfolio will bear the expense of
qualifying its shares under the state securities laws.
(c) You may not use any sales literature or advertising material
(including material disseminated through radio, television, or other
electronic media) concerning Portfolio shares, other than the printed
or electronic information referred to in paragraph 6(b) above, in
connection with the offer or sale of Portfolio shares without
obtaining our prior written approval. You may not distribute or make
available to investors any information that we furnish you marked "FOR
DEALER USE ONLY" or that otherwise indicates that it is confidential
or not intended to be distributed to investors.
7. Indemnification: (a) We will indemnify and hold you harmless
from any claim, demand, loss, expense, or cause of action resulting
from the misconduct or negligence, as measured by industry standards,
of us, our agents and employees, in carrying out our obligations under
this Agreement. Such indemnification will survive the termination of
this Agreement.
(b) You will indemnify and hold us harmless from any claim, demand,
loss, expense, or cause of action resulting from the misconduct or
negligence, as measured by industry standards, of you, your agents and
employees, in carrying out your obligations under this Agreement.
Such indemnification will survive the termination of this Agreement.
8. Customer Lists: We hereby agree that we shall not use any list of
your customers which may be obtained in connection with this Agreement
for the purpose of solicitation of any product or service without your
express written consent. However, nothing in this paragraph or
otherwise shall be deemed to prohibit or restrict us or our affiliates
in any way from solicitations of any product or service directed at,
without limitation, the general public, any segment thereof, or any
specific individual, provided such solicitation is not based upon such
list.
9. Duration of Agreement: This Agreement, with respect to any Plan,
will continue in effect for one year from its effective date, and
thereafter will continue automatically for successive annual periods;
provided, however, that such continuance is subject to termination at
any time without penalty if a majority of a Portfolio's Trustees who
are not interested persons of the Portfolio (as defined in the
Investment Company Act of 1940 (the "1940 Act")), or a majority of the
outstanding shares of the Portfolio, vote to terminate or not to
continue the Plan. This Agreement, other than with respect to a Plan,
will continue in effect from year to year after its effective date,
unless terminated as provided herein.
10. Amendment and Termination of Agreement: (a) We may amend any
provision of this Agreement by giving you written notice of the
amendment. Either party to this Agreement may terminate the Agreement
without cause by giving the other party at least thirty (30) days'
written notice of its intention to terminate. This Agreement will
terminate automatically in the event of its assignment (as defined in
the 1940 Act).
(b) In the event that (i) an application for a protective decree
under the provisions of the Securities Investor Protection Act of 1970
is filed against you; (ii) you file a petition in bankruptcy or a
petition seeking similar relief under any bankruptcy, insolvency, or
similar law, or a proceeding is commenced against you seeking such
relief; or (iii) you are found by the SEC, the NASD, or any other
federal or state regulatory agency or authority to have violated any
applicable federal or state law, rule or regulation arising out of
your activities as a broker/dealer or in connection with this
Agreement, this Agreement will terminate effective immediately upon
our giving notice of termination to you. You agree to notify us
promptly and to immediately suspend sales of Portfolio shares in the
event of any such filing or violation, or in the event that you cease
to be a member in good standing of the NASD.
(c) Your or our failure to terminate this Agreement for a
particular cause will not constitute a waiver of the right to
terminate this Agreement at a later date for the same or another
cause. The termination of this Agreement with respect to any one
Portfolio will not cause its termination with respect to any other
Portfolio.
11. Arbitration: In the event of a dispute, such dispute will be
settled by arbitration before arbitrators sitting in Boston,
Massachusetts in accordance with the NASD's Code of Arbitration
Procedure in effect at the time of the dispute. The arbitrators will
act by majority decision and their award may allocate attorneys' fees
and arbitration costs between us. Their award will be final and
binding between us, and such award may be entered as a judgment in any
court of competent jurisdiction.
12. Notices: All notices required or permitted to be given under this
Agreement shall be given in writing and delivered by personal
delivery, by postage prepaid mail, or by facsimile machine or a
similar means of same day delivery (with a confirming copy by mail).
All notices to us shall be given or sent to us at our offices located
at 82 Devonshire Street, Mail Zone L10A, Boston, Massachusetts 02109,
Attn: Broker Dealer Services Group. All notices to you shall be given
or sent to you at the address specified by you below. Each of us may
change the address to which notices shall be sent by giving notice to
the other party in accordance with this paragraph 12.
13. Miscellaneous: This Agreement, as it may be amended from time to
time, shall become effective as of the date when it is accepted and
dated below by us. This Agreement is to be construed in accordance
with the laws of the Commonwealth of Massachusetts. This Agreement
supersedes and cancels any prior agreement between us, whether oral or
written, relating to the sale of shares of the Portfolios or any other
subject covered by this Agreement. The captions in this Agreement are
included for convenience of reference only and in no way define or
limit any of the provisions of this Agreement or otherwise affect
their construction or effect.
Very truly yours,
FIDELITY DISTRIBUTORS
CORPORATION
Please return two signed copies of this Agreement to Fidelity
Distributors Corporation. Upon acceptance, one countersigned copy
will be returned to you for your files.
_____________________________________
Name of Firm
Address: _____________________________
_____________________________________
_____________________________________
By __________________________________
Authorized Representative
_____________________________________
Name and Title (please print or type)
CRD # _______________________________
ACCEPTED AND AGREED:
FIDELITY DISTRIBUTORS CORPORATION
By __________________________________
Dated: _________________
BEFORE MAILING: DISCARD THIS PAGE AND ATTACH REVISED SCHEDULE A
Exhibit 6(j)
SELLING DEALER AGREEMENT
(FOR BANK-RELATED TRANSACTIONS)
We at Fidelity Distributors Corporation invite you to distribute
shares of the mutual funds, or the separate series or classes of the
mutual funds, listed on Schedules A and B attached to this Agreement
(the "Portfolios"). We may periodically change the list of Portfolios
by giving you written notice of the change. We are the Portfolios'
principal underwriter and, as agent for the Portfolios, we offer to
sell Portfolio shares to you on the following terms:
1. Certain Defined Terms: (a) You
(_____________________________________) are registered as a
broker/dealer under the Securities Exchange Act of 1934 (the "1934
Act") and have executed a written agreement with a bank or bank
affiliate to provide brokerage services to that bank, bank affiliate
and/or their customers. As used in this Agreement, the term "Bank"
means a bank as defined in Section 3(a)(6) of the 1934 Act, or an
affiliate of such a bank, with which you have entered into a written
agreement to provide brokerage services; and the term "Bank Client"
means a customer of such a Bank.
(b) As used in this Agreement, the term "Prospectus" means the
applicable Portfolio's prospectus and related statement of additional
information, whether in paper format or electronic format, included in
the Portfolio's then currently effective registration statement (or
post-effective amendment thereto), and any information that we or the
Portfolio may issue to you as a supplement to such prospectus or
statement of additional information (a "sticker"), all as filed with
the Securities and Exchange Commission (the "SEC") pursuant to the
Securities Act of 1933.
2. Purchases of Portfolio Shares for Sale to Customers: (a) In
offering and selling Portfolio shares to your customers, you agree to
act as dealer for your own account; you are not authorized to act as
agent for us or for any Portfolio.
(b) You agree to offer and sell Portfolio shares to your customers
only at the applicable public offering price in accordance with the
Prospectus. If your customer qualifies for a reduced sales charge
pursuant to a special purchase plan (for example, a quantity discount,
letter of intent, or right of accumulation) as described in the
Prospectus, you agree to offer and sell Portfolio shares to your
customer at the applicable reduced sales charge. You agree to deliver
or cause to be delivered to each customer, at or prior to the time of
any purchase of shares, a copy of the then current prospectus
(including any stickers thereto), unless such prospectus has already
been delivered to the customer, and to each customer who so requests,
a copy of the then current statement of additional information
(including any stickers thereto).
(c) You agree to purchase Portfolio shares from us only to cover
purchase orders that you have already received from your customers, or
for your own investment. You also agree not to purchase any Portfolio
shares from your customers at a price lower than the applicable
redemption price, determined in the manner described in the
Prospectus. You will not withhold placing customers' orders so as to
profit yourself as a result of such withholding (for example, by a
change in a Portfolio's net asset value from that used in determining
the offering price to your customers).
(d) We will accept your purchase orders only at the public offering
price applicable to each order, as determined in accordance with the
Prospectus. We will not accept from you a conditional order for
Portfolio shares. All orders are subject to acceptance or rejection
by us in our sole discretion. We may, without notice, suspend sales
or withdraw the offering of Portfolio shares, or make a limited
offering of Portfolio shares.
(e) The placing of orders with us will be governed by instructions
that we will periodically issue to you. You must pay for Portfolio
shares in New York or Boston clearing house funds or in federal funds
in accordance with such instructions, and we must receive your payment
on or before the settlement date established in accordance with Rule
15c6-1 under the 1934 Act. If we do not receive your payment on or
before such settlement date, we may, without notice, cancel the sale,
or, at our option, sell the shares that you ordered back to the
issuing Portfolio, and we may hold you responsible for any loss
suffered by us or the issuing Portfolio as a result of your failure to
make payment as required.
(f) You agree to comply with all applicable state and federal laws
and with the rules and regulations of authorized regulatory agencies
thereunder. You agree to offer and sell Portfolio shares only in
states where you may legally offer and sell such Portfolio's shares.
You will not offer shares of any Portfolio for sale unless such shares
are registered for sale under the applicable state and federal laws
and the rules and regulations thereunder.
(g) Certificates evidencing Portfolio shares are not available; any
transaction in Portfolio shares will be effected and evidenced by
book-entry on the records maintained by Fidelity Investments
Institutional Operations Company, Inc. ("FIIOC"). A confirmation
statement evidencing transactions in Portfolio shares will be
transmitted to you.
(h) You may designate FIIOC to execute your customers' transactions
in Portfolio shares in accordance with the terms of any account,
program, plan, or service established or used by your customers, and
to confirm each transaction to your customers on your behalf on a
fully disclosed basis. At the time of the transaction, you guarantee
the legal capacity of your customers and any co-owners of such shares
so transacting in such shares.
3. Your Compensation: (a) Your concession, if any, on your sales of
Portfolio shares will be as provided in the Prospectus or in the
applicable schedule of concessions issued by us and in effect at the
time of our sale to you. Upon written notice to you, we or any
Portfolio may change or discontinue any schedule of concessions, or
issue a new schedule.
(b) If a Portfolio has adopted a plan pursuant to Rule 12b-1 under
the Investment Company Act of 1940 (a "Plan"), we may make
distribution payments or service payments to you under the Plan. If a
Portfolio does not have a currently effective Plan, we or Fidelity
Management & Research Company may make distribution payments or
service payments to you from our own funds. Any distribution payments
or service payments will be made in the amount and manner set forth in
the Prospectus or in the applicable schedule of distribution payments
or service payments issued by us and then in effect. Upon written
notice to you, we or any Portfolio may change or discontinue any
schedule of distribution payments or service payments, or issue a new
schedule. A schedule of distribution payments or service payments
will be in effect with respect to a Portfolio that has a Plan only so
long as that Portfolio's Plan remains in effect.
(c) Concessions, distribution payments, and service payments apply
only with respect to (i) shares of the "Fidelity Funds" (as designated
on Schedule A attached to this Agreement) purchased or maintained for
the account of Bank Clients, and (ii) shares of the "Fidelity Advisor
Funds" (as designated on Schedule B attached to this Agreement).
Anything to the contrary notwithstanding, neither we nor any Portfolio
will provide to you, nor may you retain, concessions on your sales of
shares of, or distribution payments or service payments with respect
to assets of, the Fidelity Funds attributable to you or any of your
clients, other than Bank Clients. When you place an order in shares
of the Fidelity Funds with us, you will identify the Bank on behalf of
whose Clients you are placing the order; and you will identify as a
non-Bank Client Order, any order in shares of the Fidelity Funds
placed for the account of a non-Bank Client.
(d) After the effective date of any change in or discontinuance of
any schedule of concessions, distribution payments, or service
payments, or the termination of a Plan, any concessions, distribution
payments, or service payments will be allowable or payable to you only
in accordance with such change, discontinuance, or termination. You
agree that you will have no claim against us or any Portfolio by
virtue of any such change, discontinuance, or termination. In the
event of any overpayment by us of any concession, distribution
payment, or service payment, you will remit such overpayment.
(e) If any Portfolio shares sold to you by us under the terms of
this Agreement are redeemed by the issuing Portfolio or tendered for
redemption by the customer within seven (7) business days after the
date of our confirmation of your original purchase order for such
shares, you agree (i) to refund promptly to us the full amount of any
concession, distribution payment, or service payment allowed or paid
to you on such shares, and (ii) if not yet allowed or paid to you, to
forfeit the right to receive any concession, distribution payment, or
service payment allowable or payable to you on such shares. We will
notify you of any such redemption within ten (10) days after the date
of the redemption.
4. Certain Types of Accounts: (a) You may instruct FIIOC to
register purchased shares in your name and account as nominee for your
customers. If you hold Portfolio shares as nominee for your
customers, all Prospectuses, proxy statements, periodic reports, and
other printed material will be sent to you, and all confirmations and
other communications to shareholders will be transmitted to you. You
will be responsible for forwarding such printed material,
confirmations, and communications, or the information contained
therein, to all customers for whose account you hold any Portfolio
shares as nominee. However, we or FIIOC on behalf of itself or the
Portfolios will be responsible for the costs associated with your
forwarding such printed material, confirmations, and communications.
You will be responsible for complying with all reporting and tax
withholding requirements with respect to the customers for whose
account you hold any Portfolio shares as nominee.
(b) With respect to accounts other than those accounts referred to
in paragraph 4(a) above, you agree to provide us with all information
(including certification of taxpayer identification numbers and
back-up withholding instructions) necessary or appropriate for us to
comply with legal and regulatory reporting requirements.
(c) Accounts opened or maintained pursuant to the NETWORKING system
of the National Securities Clearing Corporation ("NSCC") will be
governed by applicable NSCC rules and procedures and any agreement or
other arrangement with us relating to NETWORKING.
(d) If you hold Portfolio shares in an omnibus account for two or
more customers, you will be responsible for determining, in accordance
with the Prospectus, whether, and the extent to which, a CDSC is
applicable to a purchase of Portfolio shares from such a customer, and
you agree to transmit immediately to us any CDSC to which such
purchase was subject. You hereby represent that if you hold Portfolio
shares subject to a CDSC, you have the capability to track and account
for such charge, and we reserve the right, at our discretion, to
verify that capability by inspecting your tracking and accounting
system or otherwise.
5. Status as Registered Broker/Dealer: (a) Each party to this
Agreement represents to the other party that (i) it is registered as a
broker/dealer under the 1934 Act, (ii) it is qualified to act as a
broker/dealer in the states where it transacts business, and (iii) it
is a member in good standing of the National Association of Securities
Dealers, Inc. ("NASD"). Each party agrees to maintain its
broker/dealer registration and qualifications and its NASD membership
in good standing throughout the term of this Agreement. Each party
agrees to abide by all of the NASD's rules and regulations, including
the NASD's Conduct Rules -- in particular, Section 2830 of such Rules,
which section is deemed a part of and is incorporated by reference in
this Agreement. This Agreement will terminate automatically without
notice in the event that either
party's NASD membership is terminated.
(b) Nothing in this Agreement shall cause you to be our partner,
employee, or agent, or give you any authority to act for us or for any
Portfolio. Neither we nor any Portfolio shall be liable for any of
your acts or obligations as a dealer under this Agreement.
6. Information Relating to the Portfolios: (a) No person is
authorized to make any representations concerning shares of a
Portfolio other than those contained in the Portfolio's Prospectus.
In buying Portfolio shares from us under this Agreement, you will rely
only on the representations contained in the Prospectus. Upon your
request, we will furnish you with a reasonable number of copies of the
Portfolios' current prospectuses or statements of additional
information or both (including any stickers thereto).
(b) Any printed or electronic information that we furnish you
(other than the Portfolios' Prospectuses and periodic reports) is our
sole responsibility and not the responsibility of the respective
Portfolios. You agree that the Portfolios will have no liability or
responsibility to you with respect to any such printed or electronic
information. We or the respective Portfolio will bear the expense of
qualifying its shares under the state securities laws.
(c) You may not use any sales literature or advertising material
(including material disseminated through radio, television, or other
electronic media) concerning Portfolio shares, other than the printed
or electronic information referred to in paragraph 6(b) above, in
connection with the offer or sale of Portfolio shares without
obtaining our prior written approval. You may not distribute or make
available to investors any information that we furnish you marked "FOR
DEALER USE ONLY" or that otherwise indicates that it is confidential
or not intended to be distributed to investors.
7. Indemnification: (a) We will indemnify and hold you harmless
from any claim, demand, loss, expense, or cause of action resulting
from the misconduct or negligence, as measured by industry standards,
of us, our agents and employees, in carrying out our obligations under
this Agreement. Such indemnification will survive the termination of
this Agreement.
(b) You will indemnify and hold us harmless from any claim, demand,
loss, expense, or cause of action resulting from the misconduct or
negligence, as measured by industry standards, of you, your agents and
employees, in carrying out your obligations under this Agreement.
Such indemnification will survive the termination of this Agreement.
8. Customer Lists: We hereby agree that we shall not use any list of
your customers which may be obtained in connection with this Agreement
for the purpose of solicitation of any product or service without your
express written consent. However, nothing in this paragraph or
otherwise shall be deemed to prohibit or restrict us or our affiliates
in any way from solicitations of any product or service directed at,
without limitation, the general public, any segment thereof, or any
specific individual, provided such solicitation is not based upon such
list.
9. Duration of Agreement: This Agreement, with respect to any Plan,
will continue in effect for one year from its effective date, and
thereafter will continue automatically for successive annual periods;
provided, however, that such continuance is subject to termination at
any time without penalty if a majority of a Portfolio's Trustees who
are not interested persons of the Portfolio (as defined in the
Investment Company Act of 1940 (the "1940 Act")), or a majority of the
outstanding shares of the Portfolio, vote to terminate or not to
continue the Plan. This Agreement, other than with respect to a Plan,
will continue in effect from year to year after its effective date,
unless terminated as provided herein.
10. Amendment and Termination of Agreement: (a) We may amend any
provision of this Agreement by giving you written notice of the
amendment. Either party to this Agreement may terminate the Agreement
without cause by giving the other party at least thirty (30) days'
written notice of its intention to terminate. This Agreement will
terminate automatically in the event of its assignment (as defined in
the 1940 Act).
(b) In the event that (i) an application for a protective decree
under the provisions of the Securities Investor Protection Act of 1970
is filed against you; (ii) you file a petition in bankruptcy or a
petition seeking similar relief under any bankruptcy, insolvency, or
similar law, or a proceeding is commenced against you seeking such
relief; or (iii) you are found by the SEC, the NASD, or any other
federal or state regulatory agency or authority to have violated any
applicable federal or state law, rule or regulation arising out of
your activities as a broker/dealer or in connection with this
Agreement, this Agreement will terminate effective immediately upon
our giving notice of termination to you. You agree to notify us
promptly and to immediately suspend sales of Portfolio shares in the
event of any such filing or violation, or in the event that you cease
to be a member in good standing of the NASD.
(c) Your or our failure to terminate this Agreement for a
particular cause will not constitute a waiver of the right to
terminate this Agreement at a later date for the same or another
cause. The termination of this Agreement with respect to any one
Portfolio will not cause its termination with respect to any other
Portfolio.
11. Arbitration: In the event of a dispute, such dispute will be
settled by arbitration before arbitrators sitting in Boston,
Massachusetts in accordance with the NASD's Code of Arbitration
Procedure in effect at the time of the dispute. The arbitrators will
act by majority decision and their award may allocate attorneys' fees
and arbitration costs between us. Their award will be final and
binding between us, and such award may be entered as a judgment in any
court of competent jurisdiction.
12. Notices: All notices required or permitted to be given under this
Agreement shall be given in writing and delivered by personal
delivery, by postage prepaid mail, or by facsimile machine or a
similar means of same day delivery (with a confirming copy by mail).
All notices to us shall be given or sent to us at our offices located
at 82 Devonshire Street, Mail Zone L12A, Boston, Massachusetts 02109,
Attn: Bank Wholesale Market. All notices to you shall be given or
sent to you at the address specified by you below. Each of us may
change the address to which notices shall be sent by giving notice to
the other party in accordance with this paragraph 11.
13. Miscellaneous: This Agreement, as it may be amended from time to
time, shall become effective as of the date when it is accepted and
dated below by us. This Agreement is to be construed in accordance
with the laws of the Commonwealth of Massachusetts. This Agreement
supersedes and cancels any prior agreement between us, whether oral or
written, relating to the sale of shares of the Portfolios or any other
subject covered by this Agreement. The captions in this Agreement are
included for convenience of reference only and in no way define or
limit any of the provisions of this Agreement or otherwise affect
their construction or effect.
Very truly yours,
FIDELITY DISTRIBUTORS
CORPORATION
Please return two signed copies of this Agreement to Fidelity
Distributors Corporation. Upon acceptance, one countersigned copy
will be returned to you for your files.
_____________________________________
Name of Firm
Address: _____________________________
_____________________________________
_____________________________________
By __________________________________
Authorized Representative
_____________________________________
Name and Title (please print or type)
CRD # _______________________________
ACCEPTED AND AGREED:
FIDELITY DISTRIBUTORS CORPORATION
By __________________________________
Dated: ________________
** DISCARD THIS PAGE AND ATTACH REVISED SCHEDULES A AND B **
Exhibit 11
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the incorporation by reference into the
Prospectuses and Statement of Additional Information of Post-Effective
Amendment No. 40 to the Registration Statement on Form N-1A of
Fidelity Advisor Series VII: Fidelity Advisor Consumer Industries
Fund, Fidelity Advisor Cyclical Industries Fund, Fidelity Advisor
Financial Services Fund, Fidelity Advisor Technology Fund, Fidelity
Advisor Health Care Fund, Fidelity Advisor Natural Resources Fund, and
Fidelity Advisor Utilities Growth Fund, of our report dated September
14, 1998, on the financial statements and financial highlights
included in the July 31, 1998 Annual Report to Shareholders of
Fidelity Advisor Consumer Industries Fund, Fidelity Advisor Cyclical
Industries Fund, Fidelity Advisor Financial Services Fund, Fidelity
Advisor Technology Fund, Fidelity Advisor Health Care Fund, Fidelity
Advisor Natural Resources Fund, and Fidelity Advisor Utilities Growth
Fund.
We further consent to the references to our Firm under the headings
"Financial Highlights" in the Prospectuses and "Auditor" in the
Statement of Additional Information.
/s/PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
September 23, 1998
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