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. 42 [X]
and
REGISTRATION STATEMENT (No. 811-3010)
UNDER THE INVESTMENT COMPANY ACT OF 1940 [X]
Amendment No. 42 [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 29, 1999) 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.
Like securities of all mutual funds, these securities
have not been approved or disapproved by the
Securities and Exchange Commission, and the
Securities and Exchange Commission has not
determined if this prospectus is accurate or
complete. Any representation to the contrary is a
criminal offense.
FIDELITY ADVISOR
FOCUS FUNDSSM
CLASS A, CLASS T, CLASS B, AND CLASS C
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 29, 1999
(FIDELITY_LOGO_GRAPHIC) (registered trademark)
82 DEVONSHIRE STREET, BOSTON, MA 02109
CONTENTS
FUND SUMMARY 2 INVESTMENT SUMMARY
6 PERFORMANCE
14 FEE TABLE
FUND BASICS 22 INVESTMENT DETAILS
25 VALUING SHARES
SHAREHOLDER INFORMATION 25 BUYING AND SELLING SHARES
33 EXCHANGING SHARES
33 ACCOUNT FEATURES AND POLICIES
37 DIVIDENDS AND CAPITAL GAIN
DISTRIBUTIONS
37 TAX CONSEQUENCES
FUND SERVICES 38 FUND MANAGEMENT
39 FUND DISTRIBUTION
APPENDIX 43 FINANCIAL HIGHLIGHTS
FUND SUMMARY
INVESTMENT SUMMARY
INVESTMENT OBJECTIVE
ADVISOR CONSUMER INDUSTRIES FUND seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
Fidelity Management & Research Company (FMR)'s principal investment
strategies include:
(small solid bullet) Normally investing primarily in common stocks.
(small solid bullet) Investing primarily in companies engaged in the
manufacture and distribution of goods to consumers both domestically
and internationally.
(small solid bullet) Normally investing at least 80% of assets in
securities of companies principally engaged in the business activities
of the consumer industries sector.
(small solid bullet) Investing in domestic and foreign issuers.
(small solid bullet) Using fundamental analysis of each issuer's
financial condition and industry position and market and economic
conditions to select investments.
PRINCIPAL INVESTMENT RISKS
The fund is subject to the following principal investment risks:
(small solid bullet) STOCK MARKET VOLATILITY. Stock markets are
volatile and can decline significantly in response to adverse issuer,
political, regulatory, market or economic developments. Different
parts of the market can react differently to these developments.
(small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more
volatile than the U.S. market due to increased risks of adverse
issuer, political, regulatory, market or economic developments and can
perform differently than the U.S. market.
(small solid bullet) CONSUMER INDUSTRY CONCENTRATION. The consumer
industries can be significantly affected by the performance of the
overall economy, interest rates, competition, consumer confidence and
spending, and changes in demographics and consumer tastes.
(small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an
individual security or particular type of security can be more
volatile than the market as a whole and can perform differently than
the value of the market as a whole. The value of securities of smaller
issuers can be more volatile than that of larger issuers.
In addition, the fund is considered non-diversified and can invest a
greater portion of assets in securities of individual issuers than a
diversified fund. As a result, changes in the market value of a single
issuer could cause greater fluctuations in share price than
would occur in a more diversified fund.
An investment in the fund is not a deposit of a bank and is not
insured or guaranteed by the Federal Deposit Insurance Corporation or
any other government agency.
When you sell your shares of the fund, they could be worth more or
less than what you paid for them.
INVESTMENT OBJECTIVE
ADVISOR CYCLICAL INDUSTRIES FUND seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Normally investing primarily in common stocks.
(small solid bullet) Investing primarily in companies engaged in the
research, development, manufacture, distribution, supply or sale of
materials, equipment, products or services related to cyclical
industries.
(small solid bullet) Normally investing at least 80% of assets in
securities of companies principally engaged in the business activities
of the cyclical industries sector.
(small solid bullet) Investing in domestic and foreign issuers.
(small solid bullet) Using fundamental analysis of each issuer's
financial condition and industry position and market and economic
conditions to select investments.
PRINCIPAL INVESTMENT RISKS
The fund is subject to the following principal investment risks:
(small solid bullet) STOCK MARKET VOLATILITY. Stock markets are
volatile and can decline significantly in response to adverse issuer,
political, regulatory, market or economic developments. Different
parts of the market can react differently to these developments.
(small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more
volatile than the U.S. market due to increased risks of adverse
issuer, political, regulatory, market or economic developments and can
perform differently than the U.S. market.
(small solid bullet) CYCLICAL INDUSTRY CONCENTRATION. Cyclical
industries can be significantly affected by general economic trends,
changes in consumer sentiment and spending, commodity prices,
legislation, government regulation and spending, import controls, and
worldwide competition, and can be subject to liability for
environmental damage, depletion of resources, and mandated
expenditures for safety and pollution control.
(small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an
individual security or particular type of security can be more
volatile than the market as a whole and can perform differently than
the value of the market as a whole. The value of securities of smaller
issuers can be more volatile than that of larger issuers.
In addition, the fund is considered non-diversified and can invest a
greater portion of assets in securities of individual issuers than a
diversified fund. As a result, changes in the market value of a single
issuer could cause greater fluctuations in share price than
would occur in a more diversified fund.
An investment in the fund is not a deposit of a bank and is not
insured or guaranteed by the Federal Deposit Insurance Corporation or
any other government agency.
When you sell your shares of the fund, they could be worth more or
less than what you paid for them.
INVESTMENT OBJECTIVE
ADVISOR FINANCIAL SERVICES FUND seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Normally investing primarily in common stocks.
(small solid bullet) Investing primarily in companies providing
financial services to consumers and industry.
(small solid bullet) Normally investing at least 80% of assets in
securities of companies principally engaged in the business activities
of the financial services sector.
(small solid bullet) Investing in domestic and foreign issuers.
(small solid bullet) Using fundamental analysis of each issuer's
financial condition and industry position and market and economic
conditions to select investments.
PRINCIPAL INVESTMENT RISKS
The fund is subject to the following principal investment risks:
(small solid bullet) STOCK MARKET VOLATILITY. Stock markets are
volatile and can decline significantly in response to adverse issuer,
political, regulatory, market or economic developments. Different
parts of the market can react differently to these developments.
(small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more
volatile than the U.S. market due to increased risks of adverse
issuer, political, regulatory, market or economic developments and can
perform differently than the U.S. market.
(small solid bullet) FINANCIAL SERVICES INDUSTRY CONCENTRATION. The
financial services industries are subject to extensive government
regulation and relatively rapid change due to increasingly blurred
distinctions between service segments, and can be significantly
affected by availability and cost of capital funds, changes in
interest rates, and price competition.
(small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an
individual security or particular type of security can be more
volatile than the market as a whole and can perform differently than
the value of the market as a whole. The value of securities of smaller
issuers can be more volatile than that of larger issuers.
An investment in the fund is not a deposit of a bank and is not
insured or guaranteed by the Federal Deposit Insurance Corporation or
any other government agency.
When you sell your shares of the fund, they could be worth more or
less than what you paid for them.
INVESTMENT OBJECTIVE
ADVISOR HEALTH CARE FUND seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Normally investing primarily in common stocks.
(small solid bullet) Investing primarily in companies engaged in the
design, manufacture, or sale of products or services used for or in
connection with health care or medicine.
(small solid bullet) Normally investing at least 80% of assets in
securities of companies principally engaged in the business activities
of the health care sector.
(small solid bullet) Investing in domestic and foreign issuers.
(small solid bullet) Using fundamental analysis of each issuer's
financial condition and industry position and market and economic
conditions to select investments.
PRINCIPAL INVESTMENT RISKS
The fund is subject to the following principal investment risks:
(small solid bullet) STOCK MARKET VOLATILITY. Stock markets are
volatile and can decline significantly in response to adverse issuer,
political, regulatory, market or economic developments. Different
parts of the market can react differently to these developments.
(small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more
volatile than the U.S. market due to increased risks of adverse
issuer, political, regulatory, market or economic developments and can
perform differently than the U.S. market.
(small solid bullet) HEALTH CARE INDUSTRY CONCENTRATION. The health
care industries are subject to government regulation and government
approval of products and services, which could have a significant
effect on price and availability, and can be significantly affected by
rapid obsolescence.
(small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an
individual security or particular type of security can be more
volatile than the market as a whole and can perform differently than
the value of the market as a whole. The value of securities of smaller
issuers can be more volatile than that of larger issuers.
In addition, the fund is considered non-diversified and can invest a
greater portion of assets in securities of individual issuers than a
diversified fund. As a result, changes in the market value of a single
issuer could cause greater fluctuations in share price than
would occur in a more diversified fund.
An investment in the fund is not a deposit of a bank and is not
insured or guaranteed by the Federal Deposit Insurance Corporation or
any other government agency.
When you sell your shares of the fund, they could be worth more or
less than what you paid for them.
INVESTMENT OBJECTIVE
ADVISOR NATURAL RESOURCES FUND seeks long-term growth of capital and
protection of the purchasing power of shareholders' capital.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Normally investing primarily in common stocks and
in certain precious metals.
(small solid bullet) Investing primarily in securities of companies
that own or develop natural resources, or supply goods and services to
such companies, or in physical commodities.
(small solid bullet) Normally investing at least 80% of assets in
securities of companies principally engaged in the business activities
of the natural resources sector.
(small solid bullet) Investing in domestic and foreign issuers.
(small solid bullet) Using fundamental analysis of each issuer's
financial condition and industry position and market and economic
conditions to select investments.
PRINCIPAL INVESTMENT RISKS
The fund is subject to the following principal investment risks:
(small solid bullet) STOCK MARKET VOLATILITY. Stock markets are
volatile and can decline significantly in response to adverse issuer,
political, regulatory, market or economic developments. Different
parts of the market can react differently to these developments.
(small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more
volatile than the U.S. market due to increased risks of adverse
issuer, political, regulatory, market or economic developments and can
perform differently than the U.S. market.
(small solid bullet) NATURAL RESOURCES INDUSTRY CONCENTRATION. The
natural resources industries can be significantly affected by events
relating to international political and economic developments, energy
conservation, the success of exploration projects, and tax and other
government regulations.
(small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an
individual security or particular type of security can be more
volatile than the market as a whole and can perform differently than
the value of the market as a whole. The value of securities of smaller
issuers can be more volatile than that of larger issuers.
In addition, the fund is considered non-diversified and can invest a
greater portion of assets in securities of individual issuers than a
diversified fund. As a result, changes in the market value of a single
issuer could cause greater fluctuations in share price than
would occur in a more diversified fund.
An investment in the fund is not a deposit of a bank and is not
insured or guaranteed by the Federal Deposit Insurance Corporation or
any other government agency.
When you sell your shares of the fund, they could be worth more or
less than what you paid for them.
INVESTMENT OBJECTIVE
ADVISOR TECHNOLOGY FUND seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Normally investing primarily in common stocks.
(small solid bullet) Investing primarily in companies which have, or
will develop, products, processes or services that will provide or
will benefit significantly from technological advances and
improvements.
(small solid bullet) Normally investing at least 80% of assets in
securities of companies principally engaged in the business activities
of the technology sector.
(small solid bullet) Investing in domestic and foreign issuers.
(small solid bullet) Using fundamental analysis of each issuer's
financial condition and industry position and market and economic
conditions to select investments.
PRINCIPAL INVESTMENT RISKS
The fund is subject to the following principal investment risks:
(small solid bullet) STOCK MARKET VOLATILITY. Stock markets are
volatile and can decline significantly in response to adverse issuer,
political, regulatory, market or economic developments. Different
parts of the market can react differently to these developments.
(small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more
volatile than the U.S. market due to increased risks of adverse
issuer, political, regulatory, market or economic developments and can
perform differently than the U.S. market.
(small solid bullet) TECHNOLOGY INDUSTRY CONCENTRATION. The technology
industries can be significantly affected by obsolescence of existing
technology, short product cycles, falling prices and profits, and
competition from new market entrants.
(small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an
individual security or particular type of security can be more
volatile than the market as a whole and can perform differently than
the value of the market as a whole. The value of securities of smaller
issuers can be more volatile than that of larger issuers.
In addition, the fund is considered non-diversified and can invest a
greater portion of assets in securities of individual issuers than a
diversified fund. As a result, changes in the market value of a single
issuer could cause greater fluctuations in share price than
would occur in a more diversified fund.
An investment in the fund is not a deposit of a bank and is not
insured or guaranteed by the Federal Deposit Insurance Corporation or
any other government agency.
When you sell your shares of the fund, they could be worth more or
less than what you paid for them.
INVESTMENT OBJECTIVE
ADVISOR UTILITIES GROWTH FUND seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Normally investing primarily in common stocks.
(small solid bullet) Investing primarily in companies in the public
utilities industry and companies deriving a majority of their revenues
from their public utility operations.
(small solid bullet) Normally investing at least 80% of assets in
securities of companies principally engaged in the business activities
of the utilities sector.
(small solid bullet) Investing in domestic and foreign issuers.
(small solid bullet) Using fundamental analysis of each issuer's
financial condition and industry position and market and economic
conditions to select investments.
PRINCIPAL INVESTMENT RISKS
The fund is subject to the following principal investment risks:
(small solid bullet) STOCK MARKET VOLATILITY. Stock markets are
volatile and can decline significantly in response to adverse issuer,
political, regulatory, market or economic developments. Different
parts of the market can react differently to these developments.
(small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more
volatile than the U.S. market due to increased risks of adverse
issuer, political, regulatory, market or economic developments and can
perform differently than the U.S. market.
(small solid bullet) UTILITIES INDUSTRY CONCENTRATION. The utilities
industries can be significantly affected by government regulation,
financing difficulties, supply and demand of services or fuel, and
natural resource conservation.
(small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an
individual security or particular type of security can be more
volatile than the market as a whole and can perform differently than
the value of the market as a whole. The value of securities of smaller
issuers can be more volatile than that of larger issuers.
In addition, the fund is considered non-diversified and can invest a
greater portion of assets in securities of individual issuers than a
diversified fund. As a result, changes in the market value of a single
issuer could cause greater fluctuations in share price than
would occur in a more diversified fund.
An investment in the fund is not a deposit of a bank and is not
insured or guaranteed by the Federal Deposit Insurance Corporation or
any other government agency.
When you sell your shares of the fund, they could be worth more or
less than what you paid for them.
PERFORMANCE
The following information illustrates the changes in each fund's
performance from year to year as represented by the performance of
Class T, and compares Class T's performance to the performance
of a market index and an additional index over various periods of
time. Returns are based on past results and are not an indication of
future performance.
YEAR-BY-YEAR RETURNS
The returns in the charts do not include the effect of Class T's
front-end sales charge. If the effect of the sales charge was
reflected, returns would be lower than those shown.
<TABLE>
<CAPTION>
<S> <C> <C>
ADVISOR CONSUMER INDUSTRIES -
CLASS T
Calendar Years 1997 1998
36.22% 28.42%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: nil
Row: 2, Col: 1, Value: nil
Row: 3, Col: 1, Value: nil
Row: 4, Col: 1, Value: nil
Row: 5, Col: 1, Value: nil
Row: 6, Col: 1, Value: nil
Row: 7, Col: 1, Value: nil
Row: 8, Col: 1, Value: nil
Row: 9, Col: 1, Value: 36.22000000000001
Row: 10, Col: 1, Value: 28.42
DURING THE PERIODS SHOWN IN THE CHART FOR CLASS T OF ADVISOR CONSUMER
INDUSTRIES, THE HIGHEST RETURN FOR A QUARTER WAS 26.98 %
(QUARTER ENDING DECEMBER 31 , 199 8 ) AND THE LOWEST RETURN
FOR A QUARTER WAS -14.41 % (QUARTER ENDING SEPTEMBER 30 ,
199 8 ).
THE YEAR-TO-DATE RETURN AS OF JUNE 30, 1999 FOR CLASS T OF ADVISOR
CONSUMER INDUSTRIES WAS 5.99 %.
<TABLE>
<CAPTION>
<S> <C> <C>
ADVISOR CYCLICAL INDUSTRIES -
CLASS T
Calendar Years 1997 1998
18.60% 10.93%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: nil
Row: 2, Col: 1, Value: nil
Row: 3, Col: 1, Value: nil
Row: 4, Col: 1, Value: nil
Row: 5, Col: 1, Value: nil
Row: 6, Col: 1, Value: nil
Row: 7, Col: 1, Value: nil
Row: 8, Col: 1, Value: nil
Row: 9, Col: 1, Value: 18.6
Row: 10, Col: 1, Value: 10.93
DURING THE PERIODS SHOWN IN THE CHART FOR CLASS T OF ADVISOR CYCLICAL
INDUSTRIES, THE HIGHEST RETURN FOR A QUARTER WAS 17.86 %
(QUARTER ENDING DECEMBER 31 , 199 8 ) AND THE LOWEST RETURN
FOR A QUARTER WAS -18.69 % (QUARTER ENDING SEPTEMBER 30 ,
199 8 ).
THE YEAR-TO-DATE RETURN AS OF JUNE 30, 1999 FOR CLASS T OF ADVISOR
CYCLICAL INDUSTRIES WAS 12.34 %.
<TABLE>
<CAPTION>
<S> <C> <C>
ADVISOR FINANCIAL SERVICES -
CLASS T
Calendar Years 1997 1998
39.75% 11.30%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: nil
Row: 2, Col: 1, Value: nil
Row: 3, Col: 1, Value: nil
Row: 4, Col: 1, Value: nil
Row: 5, Col: 1, Value: nil
Row: 6, Col: 1, Value: nil
Row: 7, Col: 1, Value: nil
Row: 8, Col: 1, Value: nil
Row: 9, Col: 1, Value: 39.75
Row: 10, Col: 1, Value: 11.3
DURING THE PERIODS SHOWN IN THE CHART FOR CLASS T OF ADVISOR FINANCIAL
SERVICES, THE HIGHEST RETURN FOR A QUARTER WAS 18.66 % (QUARTER
ENDING DECEMBER 31 , 199 8 ) AND THE LOWEST RETURN FOR A
QUARTER WAS -19.61 % (QUARTER ENDING SEPTEMBER 30 ,
199 8 ).
THE YEAR-TO-DATE RETURN AS OF JUNE 30, 1999 FOR CLASS T OF ADVISOR
FINANCIAL SERVICES WAS 10.72 %.
<TABLE>
<CAPTION>
<S> <C> <C>
ADVISOR HEALTH CARE - CLASS T
Calendar Years 1997 1998
30.57% 39.40%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: nil
Row: 2, Col: 1, Value: nil
Row: 3, Col: 1, Value: nil
Row: 4, Col: 1, Value: nil
Row: 5, Col: 1, Value: nil
Row: 6, Col: 1, Value: nil
Row: 7, Col: 1, Value: nil
Row: 8, Col: 1, Value: nil
Row: 9, Col: 1, Value: 30.57
Row: 10, Col: 1, Value: 39.4
DURING THE PERIODS SHOWN IN THE CHART FOR CLASS T OF ADVISOR HEALTH
CARE, THE HIGHEST RETURN FOR A QUARTER WAS 21.31 % (QUARTER
ENDING JUNE 30 , 199 7 ) AND THE LOWEST RETURN FOR A
QUARTER WAS -1.48 % (QUARTER ENDING SEPTEMBER 30 ,
199 8 ).
THE YEAR-TO-DATE RETURN AS OF JUNE 30, 1999 FOR CLASS T OF ADVISOR
HEALTH CARE WAS 2.89 %.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
ADVISOR NATURAL RESOURCES -
CLASS T
Calendar Years 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
33.14% -5.28% 14.47% 13.33% 37.94% -2.28% 28.67% 30.52% -0.79% -16.29%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: 33.14
Row: 2, Col: 1, Value: -5.28
Row: 3, Col: 1, Value: 14.47
Row: 4, Col: 1, Value: 13.33
Row: 5, Col: 1, Value: 37.94
Row: 6, Col: 1, Value: -2.28
Row: 7, Col: 1, Value: 28.67
Row: 8, Col: 1, Value: 30.52
Row: 9, Col: 1, Value: -0.79
Row: 10, Col: 1, Value: -16.29
DURING THE PERIODS SHOWN IN THE CHART FOR CLASS T OF ADVISOR NATURAL
RESOURCES, THE HIGHEST RETURN FOR A QUARTER WAS 15.40 % (QUARTER
ENDING MARCH 31 , 19 91 ) AND THE LOWEST RETURN FOR A
QUARTER WAS -13.22 % (QUARTER ENDING DECEMBER 31 ,
19 97 ).
THE YEAR-TO-DATE RETURN AS OF JUNE 30, 1999 FOR CLASS T OF ADVISOR
NATURAL RESOURCES WAS 30.40 %.
<TABLE>
<CAPTION>
<S> <C> <C>
ADVISOR TECHNOLOGY - CLASS T
Calendar Years 1997 1998
10.20% 66.78%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: nil
Row: 2, Col: 1, Value: nil
Row: 3, Col: 1, Value: nil
Row: 4, Col: 1, Value: nil
Row: 5, Col: 1, Value: nil
Row: 6, Col: 1, Value: nil
Row: 7, Col: 1, Value: nil
Row: 8, Col: 1, Value: nil
Row: 9, Col: 1, Value: 10.2
Row: 10, Col: 1, Value: 66.78
DURING THE PERIODS SHOWN IN THE CHART FOR CLASS T OF ADVISOR
TECHNOLOGY, THE HIGHEST RETURN FOR A QUARTER WAS 41.72 %
(QUARTER ENDING DECEMBER 31 , 199 8 ) AND THE LOWEST RETURN
FOR A QUARTER WAS -20.02 % (QUARTER ENDING DECEMBER 31 ,
199 7 ).
THE YEAR-TO-DATE RETURN AS OF JUNE 30, 1999 FOR CLASS T OF ADVISOR
TECHNOLOGY WAS 23.80 %.
<TABLE>
<CAPTION>
<S> <C> <C>
ADVISOR UTILITIES GROWTH -
CLASS T
Calendar Years 1997 1998
29.53% 32.01%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: nil
Row: 2, Col: 1, Value: nil
Row: 3, Col: 1, Value: nil
Row: 4, Col: 1, Value: nil
Row: 5, Col: 1, Value: nil
Row: 6, Col: 1, Value: nil
Row: 7, Col: 1, Value: nil
Row: 8, Col: 1, Value: nil
Row: 9, Col: 1, Value: 29.53
Row: 10, Col: 1, Value: 32.01
DURING THE PERIODS SHOWN IN THE CHART FOR CLASS T OF ADVISOR UTILITIES
GROWTH, THE HIGHEST RETURN FOR A QUARTER WAS 23.31 % (QUARTER
ENDING MARCH 31 , 199 8 ) AND THE LOWEST RETURN FOR A
QUARTER WAS -5.58 % (QUARTER ENDING SEPTEMBER 30 ,
199 8 ).
THE YEAR-TO-DATE RETURN AS OF JUNE 30, 1999 FOR CLASS T OF ADVISOR
UTILITIES GROWTH WAS 24.19 %.
AVERAGE ANNUAL RETURNS
The returns in the following table include the effect of Class A's and
Class T's maximum applicable front-end sales charge and Class B's and
Class C's maximum applicable contingent deferred sales charge (CDSC).
<TABLE>
<CAPTION>
For the periods ended Past 1 year Past 5 years Past 10 years/ Life of class
December 31, 1998
<S> <C> <C> <C>
Advisor Consumer Industries - 21.31% n/a 28.76%A
Class A
S&P 500 28.58% n/a 33.37%A
Goldman Sachs Consumer 24.91% n/a 29.45%A
Industries Index
Advisor Consumer Industries - 23.93% n/a 29.61%A
Class T
S&P 500 28.58% n/a 33.37%A
Goldman Sachs Consumer 24.91% n/a 29.45%A
Industries Index
Advisor Consumer Industries - 22.79% n/a 28.77%B
Class B
S&P 500 28.58% n/a 28.93%B
Goldman Sachs Consumer 24.91% n/a 27.24%B
Industries Index
Advisor Consumer Industries - 26.85% n/a 29.65%C
Class C
S&P 500 28.58% n/a 28.12%C
Goldman Sachs Consumer 24.91% n/a 28.33%C
Industries Index
Advisor Cyclical Industries - 4.72% n/a 15.53%A
Class A
S&P 500 28.58% n/a 33.37%A
Goldman Sachs Cyclical 4.74% n/a 16.42%A
Industries Index
Advisor Cyclical Industries - 7.05% n/a 16.52%A
Class T
S&P 500 28.58% n/a 33.37%A
Goldman Sachs Cyclical 4.74% n/a 16.42%A
Industries Index
Advisor Cyclical Industries - 5.31% n/a 11.27%B
Class B
S&P 500 28.58% n/a 28.93%B
Goldman Sachs Cyclical 4.74% n/a 12.00%B
Industries Index
Advisor Cyclical Industries - 9.30% n/a 9.38%C
Class C
S&P 500 28.58% n/a 28.12%C
Goldman Sachs Cyclical 4.74% n/a 5.26%C
Industries Index
Advisor Financial Services - 5.16% n/a 26.49%A
Class A
S&P 500 28.58% n/a 33.37%A
Goldman Sachs Financial 9.04% n/a 33.63%A
Services Index
Advisor Financial Services - 7.41% n/a 27.44%A
Class T
S&P 500 28.58% n/a 33.37%A
Goldman Sachs Financial 9.04% n/a 33.63%A
Services Index
Advisor Financial Services - 5.70% n/a 19.92%B
Class B
S&P 500 28.58% n/a 28.93%B
Goldman Sachs Financial 9.04% n/a 22.66%B
Services Index
Advisor Financial Services - 9.62% n/a 15.45%C
Class C
S&P 500 28.58% n/a 28.12%C
Goldman Sachs Financial 9.04% n/a 14.29%C
Services Index
</TABLE>
A FROM SEPTEMBER 3, 1996.
B FROM MARCH 3, 1997.
C FROM NOVEMBER 3, 1997.
<TABLE>
<CAPTION>
For the periods ended Past 1 year Past 5 years Past 10 years/ Life of class
December 31, 1998
<S> <C> <C> <C>
Advisor Health Care - Class A 31.77% n/a 31.85%A
S&P 500 28.58% n/a 33.37%A
Goldman Sachs Health Care Index 40.26% n/a 38.95%A
Advisor Health Care - Class T 34.52% n/a 32.78%A
S&P 500 28.58% n/a 33.37%A
Goldman Sachs Health Care Index 40.26% n/a 38.95%A
Advisor Health Care - Class B 33.58% n/a 30.52%B
S&P 500 28.58% n/a 28.93%B
Goldman Sachs Health Care Index 40.26% n/a 34.73%B
Advisor Health Care - Class C 37.43% n/a 34.47%C
S&P 500 28.58% n/a 28.12%C
Goldman Sachs Health Care Index 40.26% n/a 39.14%C
Advisor Natural Resources - -21.02% n/a -5.59%A
Class A
S&P 500 28.58% n/a 33.37%A
Goldman Sachs Natural -14.19% n/a 5.09%A
Resources Index
Advisor Natural Resources - -19.22% 5.63% 11.49%
Class T
S&P 500 28.58% 24.06% 19.21%
Goldman Sachs Natural -14.19% n/a n/a
Resources Index
Advisor Natural Resources - -20.76% n/a 3.70%D
Class B
S&P 500 28.58% n/a 28.47%D
Goldman Sachs Natural -14.19% n/a n/a
Resources Index
Advisor Natural Resources - -17.74% n/a -21.62%C
Class C
S&P 500 28.58% n/a 28.12%C
Goldman Sachs Natural -14.19% n/a -18.72%C
Resources Index
Advisor Technology - Class A 57.67% n/a 39.64%A
S&P 500 28.58% n/a 33.37%A
Goldman Sachs Technology Index 69.16% n/a 48.92%A
Advisor Technology - Class T 60.94% n/a 40.61%A
S&P 500 28.58% n/a 33.37%A
Goldman Sachs Technology Index 69.16% n/a 48.92%A
Advisor Technology - Class B 60.87% n/a 34.01%B
S&P 500 28.58% n/a 28.93%B
Goldman Sachs Technology Index 69.16% n/a 47.15%B
Advisor Technology - Class C 64.66% n/a 41.72%C
S&P 500 28.58% n/a 28.12%C
Goldman Sachs Technology Index 69.16% n/a 48.76%C
Advisor Utilities Growth - 24.77% n/a 30.79%A
Class A
S&P 500 28.58% n/a 33.37%A
Goldman Sachs Utilities Index 34.29% n/a 34.36%A
</TABLE>
A FROM SEPTEMBER 3, 1996.
B FROM MARCH 3, 1997.
C FROM NOVEMBER 3, 1997.
D FROM JULY 3, 1995.
<TABLE>
<CAPTION>
For the periods ended Past 1 year Past 5 years Past 10 years/ Life of class
December 31, 1998
<S> <C> <C> <C>
Advisor Utilities Growth - 27.39% n/a 31.73%A
Class T
S&P 500 28.58% n/a 33.37%A
Goldman Sachs Utilities Index 34.29% n/a 34.36%A
Advisor Utilities Growth - 26.35% n/a 29.12%B
Class B
S&P 500 28.58% n/a 28.93%B
Goldman Sachs Utilities Index 34.29% n/a 36.30%B
Advisor Utilities Growth - 30.27% n/a 31.60%C
Class C
S&P 500 28.58% n/a 28.12%C
Goldman Sachs Utilities Index 34.29% n/a 43.72%C
</TABLE>
A FROM SEPTEMBER 3, 1996.
B FROM MARCH 3, 1997.
C FROM NOVEMBER 3, 1997.
If FMR had not reimbursed certain class expenses during these periods,
each class's returns would have been lower , except for Class
T and Class C of Advisor Financial Services, Advisor Health Care, and
Advisor Technology.
Standard & Poor's 500 Index (S&P 500(registered trademark)) is a
market capitalization-weighted index of common stocks.
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 resources 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.
FEE TABLE
The following table describes the fees and expenses that are incurred
when you buy, hold, or sell Class A, Class T, Class B , and
Class C shares of a fund. The annual class operating expenses provided
below for each class do not reflect the effect of any expense
reimbursements or reduction of certain expenses during the period.
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.
SHAREHOLDER F EES (PAID BY THE INVESTOR DIRECTLY)
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Class A Class T Class B Class C
Maximum sales charge (load) 5.75%A 3.50%B None None
on purchases (as a % of
offering price)
Maximum CDSC (as a % of the NoneC NoneC 5.00%D 1.00%E
lesser of original purchase
price or redemption proceeds)
Sales charge (load) on None None None None
reinvested distributions
Redemption fee on shares held 1.00% 1.00% 1.00% 1.00%
less than less than 60 days
(as a % of amount redeemed)
</TABLE>
A LOWER FRONT-END SALES CHARGES FOR CLASS A MAY BE AVAILABLE WITH
PURCHASE OF $50,000 OR MORE.
B LOWER FRONT-END SALES CHARGES FOR CLASS T MAY BE AVAILABLE WITH
PURCHASE OF $50,000 OR MORE.
C A CONTINGENT DEFERRED SALES CHARGE OF 0.25% IS ASSESSED ON
CERTAIN REDEMPTIONS OF CLASS A AND CLASS T SHARES ON WHICH A FINDER'S
FEE WAS PAID.
D DECLINES OVER 6 YEARS FROM 5.00% TO 0%.
E ON CLASS C SHARES REDEEMED WITHIN ONE YEAR OF PURCHASE.
ANNUAL CLASS OPERATING EXPENSES (PAID FROM CLASS ASSETS)
<TABLE>
<CAPTION>
Class A Class T Class B Class C
<S> <C> <C> <C> <C> <C>
ADVISOR CONSUMER INDUSTRIES Management fee 0.58% 0.58% 0.58% 0.58%
Distribution and Service 0.25% 0.50% 1.00% 1.00%
(12b-1) fee (including 0.25%
Service fee only for Class B
and Class C)
Other expenses 0.78% 0.75% 0.81% 0.84%
Total annual class operating 1.61% 1.83% 2.39% 2.42%
expensesA
ADVISOR CYCLICAL INDUSTRIES Management fee 0.58% 0.58% 0.58% 0.58%
Distribution and Service 0.25% 0.50% 1.00% 1.00%
(12b-1) fee (including 0.25%
Service fee only for Class B
and Class C)
Other expenses 2.70% 2.69% 2.72% 2.76%
Total annual class operating 3.53% 3.77% 4.30% 4.34%
expensesA
ADVISOR FINANCIAL SERVICES Management fee 0.58% 0.58% 0.58% 0.58%
Distribution and Service 0.25% 0.50% 1.00% 1.00%
(12b-1) fee (including 0.25%
Service fee only for Class B
and Class C)
Other expenses 0.41% 0.39% 0.41% 0.37%
Total annual class operating 1.24% 1.47% 1.99% 1.95%
expensesA
ADVISOR HEALTH CARE Management fee 0.58% 0.58% 0.58% 0.58%
Distribution and Service 0.25% 0.50% 1.00% 1.00%
(12b-1) fee (including 0.25%
Service fee only for Class B
and Class C)
Other expenses 0.40% 0.38% 0.40% 0.37%
Total annual class operating 1.23% 1.46% 1.98% 1.95%
expensesA
ADVISOR NATURAL RESOURCES Management fee 0.58% 0.58% 0.58% 0.58%
Distribution and Service 0.25% 0.50% 1.00% 1.00%
(12b-1) fee (including 0.25%
Service fee only for Class B
and Class C)
Other expenses 0.45% 0.37% 0.41% 0.36%
Total annual class operating 1.28% 1.45% 1.99% 1.94%
expensesA
ADVISOR TECHNOLOGY Management fee 0.58% 0.58% 0.58% 0.58%
Distribution and Service 0.25% 0.50% 1.00% 1.00%
(12b-1) fee (including 0.25%
Service fee only for Class B
and Class C)
Other expenses 0.42% 0.39% 0.43% 0.39%
Total annual class operating 1.25% 1.47% 2.01% 1.97%
expensesA
ADVISOR UTILITIES GROWTH Management fee 0.58% 0.58% 0.58% 0.58%
Distribution and Service 0.25% 0.50% 1.00% 1.00%
(12b-1) fee (including 0.25%
Service fee only for Class B
and Class C)
Other expenses 0.51% 0.50% 0.50% 0.49%
Total annual class operating 1.34% 1.58% 2.08% 2.07%
expensesA
</TABLE>
A 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, SECURITIES LENDING FEES, 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>
Class A Effective Date Class T Effective Date Class B Effective Date
Advisor Consumer Industries 1.50% 12/1/98 1.75% 12/1/98 2.25% 12/1/98
Advisor Cyclical Industries 1.50% 12/1/98 1.75% 12/1/98 2.25% 12/1/98
Advisor Financial Services 1.50% 12/1/98 1.75% 12/1/98 2.25% 12/1/98
Advisor Health Care 1.50% 12/1/98 1.75% 12/1/98 2.25% 12/1/98
Advisor Natural Resources 1.50% 12/1/98 1.75% 12/1/98 2.25% 12/1/98
Advisor Technology 1.50% 12/1/98 1.75% 12/1/98 2.25% 12/1/98
Advisor Utilities Growth 1.50% 12/1/98 1.75% 12/1/98 2.25% 12/1/98
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
Class C Effective Date
Advisor Consumer Industries 2.25% 12/1/98
Advisor Cyclical Industries 2.25% 12/1/98
Advisor Financial Services 2.25% 12/1/98
Advisor Health Care 2.25% 12/1/98
Advisor Natural Resources 2.25% 12/1/98
Advisor Technology 2.25% 12/1/98
Advisor Utilities Growth 2.25% 12/1/98
</TABLE>
THESE ARRANGEMENTS CAN BE DISCONTINUED BY FMR AT ANY TIME.
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, after
reimbursement for Advisor Consumer Industries and Advisor Cyclical
Industries , would have been:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Class A Class T Class B Class C
Advisor Consumer Industries 1.54% 1.77% 2.30% 2.30%
Advisor Cyclical Industries 1.54% 1.81% 2.29% 2.27%
Advisor Financial Services 1.23% 1.46% 1.98% 1.94%
Advisor Health Care 1.21% 1.43% 1.96% 1.92%
Advisor Natural Resources 1.23% 1.40% 1.95% 1.89%
Advisor Technology 1.24% 1.46% 2.00% 1.96%
Advisor Utilities Growth 1.32% 1.55% 2.05% 2.04%
</TABLE>
This EXAMPLE helps you compare the cost of investing in the funds with
the cost of investing in other mutual funds.
Let's say, hypothetically, that each class's annual return is 5% and
that your shareholder fees and each class's annual operating expenses
are exactly as described in the fee table. This example illustrates
the effect of fees and expenses, but is not meant to suggest actual or
expected fees and expenses or returns, all of which may vary. For
every $10,000 you invested, here's how much you would pay in total
expenses if you close your account after the number of years indicated
and if you leave your account open:
<TABLE>
<CAPTION>
Class A Class T Class B
<S> <C> <C> <C> <C> <C> <C> <C>
Account open Account closed Account open Account closed Account open Account closed
ADVISOR CONSUMER
INDUSTRIES 1 year $ 729 $ 729 $ 529 $ 529 $ 242 $ 742
3 years $ 1,054 $ 1,054 $ 905 $ 905 $ 745 $ 1,045
5 years $ 1,401 $ 1,401 $ 1,306 $ 1,306 $ 1,275 $ 1,475
10 years $ 2,376 $ 2,376 $ 2,423 $ 2,423 $ 2,442A $ 2,442A
ADVISOR CYCLICAL
INDUSTRIES 1 year $ 910 $ 910 $ 716 $ 716 $ 432 $ 932
3 years $ 1,595 $ 1,595 $ 1,462 $ 1,462 $ 1,304 $ 1,604
5 years $ 2,301 $ 2,301 $ 2,226 $ 2,226 $ 2,188 $ 2,388
10 years $ 4,157 $ 4,157 $ 4,220 $ 4,220 $ 4,221A $ 4,221A
ADVISOR FINANCIAL
SERVICES 1 year $ 694 $ 694 $ 494 $ 494 $ 202 $ 702
3 years $ 946 $ 946 $ 799 $ 799 $ 624 $ 924
5 years $ 1,217 $ 1,217 $ 1,125 $ 1,125 $ 1,073 $ 1,273
10 years $ 1,989 $ 1,989 $ 2,046 $ 2,046 $ 2,032A $ 2,032A
ADVISOR HEALTH CARE 1 year $ 693 $ 693 $ 493 $ 493 $ 201 $ 701
3 years $ 943 $ 943 $ 796 $ 796 $ 621 $ 921
5 years $ 1,212 $ 1,212 $ 1,120 $ 1,120 $ 1,068 $ 1,268
10 years $ 1,978 $ 1,978 $ 2,035 $ 2,035 $ 2,022A $ 2,022A
ADVISOR NATURAL
RESOURCES 1 year $ 698 $ 698 $ 492 $ 492 $ 202 $ 702
3 years $ 958 $ 958 $ 793 $ 793 $ 624 $ 924
5 years $ 1,237 $ 1,237 $ 1,114 $ 1,114 $ 1,073 $ 1,273
10 years $ 2,031 $ 2,031 $ 2,025 $ 2,025 $ 2,048A $ 2,048A
ADVISOR TECHNOLOGY 1 year $ 695 $ 695 $ 494 $ 494 $ 204 $ 704
3 years $ 949 $ 949 $ 799 $ 799 $ 630 $ 930
5 years $ 1,222 $ 1,222 $ 1,125 $ 1,125 $ 1,083 $ 1,283
10 years $ 1,999 $ 1,999 $ 2,046 $ 2,046 $ 2,050A $ 2,050A
ADVISOR UTILITIES
GROWTH 1 year $ 704 $ 704 $ 505 $ 505 $ 211 $ 711
3 years $ 975 $ 975 $ 831 $ 831 $ 652 $ 952
5 years $ 1,267 $ 1,267 $ 1,180 $ 1,180 $ 1,119 $ 1,319
10 years $ 2,095 $ 2,095 $ 2,163 $ 2,163 $ 2,132A $ 2,132A
</TABLE>
<TABLE>
<CAPTION>
Class C
<S> <C> <C>
Account open Account closed
ADVISOR CONSUMER INDUSTRIES $ 245 $ 345
$ 755 $ 755
$ 1,291 $ 1,291
$ 2,756 $ 2,756
ADVISOR CYCLICAL INDUSTRIES $ 435 $ 535
$ 1,315 $ 1,315
$ 2,206 $ 2,206
$ 4,486 $ 4,486
ADVISOR FINANCIAL SERVICES $ 198 $ 298
$ 612 $ 612
$ 1,052 $ 1,052
$ 2,275 $ 2,275
ADVISOR HEALTH CARE $ 198 $ 298
$ 612 $ 612
$ 1,052 $ 1,052
$ 2,275 $ 2,275
ADVISOR NATURAL RESOURCES $ 197 $ 297
$ 609 $ 609
$ 1,047 $ 1,047
$ 2,264 $ 2,264
ADVISOR TECHNOLOGY $ 200 $ 300
$ 618 $ 618
$ 1,062 $ 1,062
$ 2,296 $ 2,296
ADVISOR UTILITIES GROWTH $ 210 $ 310
$ 649 $ 649
$ 1,114 $ 1,114
$ 2,400 $ 2,400
</TABLE>
A REFLECTS CONVERSION TO CLASS A SHARES AFTER SEVEN YEARS.
FUND BASICS
INVESTMENT DETAILS
INVESTMENT OBJECTIVE
ADVISOR CONSUMER INDUSTRIES FUND seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR normally invests the fund's assets primarily in common stocks.
FMR invests the fund's assets primarily in companies engaged in the
manufacture and distribution of goods to consumers both domestically
and internationally.
FMR normally invests at least 80% of the fund's assets in securities
of companies principally engaged in the business activities of the
consumer industries sector. These companies may include, for example,
companies that manufacture or sell durable goods such as homes, cars,
boats, furniture, major appliances, and personal computers; and
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, and
sports). They may also include companies that provide consumer
services such as lodging, child care, convenience stores, and car
rentals.
FMR may invest the fund's assets in securities of foreign issuers in
addition to securities of domestic issuers.
Because the fund is considered non-diversified, FMR may invest a
significant percentage of the fund's assets in a single issuer.
In buying and selling securities for the fund, FMR relies on
fundamental analysis of each issuer and its potential for success in
light of its current financial condition, its industry position, and
economic and market conditions. Factors considered include growth
potential, earnings estimates , and management.
FMR may lend the fund's securities to broker-dealers or other
institutions to earn income for the fund.
FMR may use various techniques, such as buying and selling futures
contracts, to increase or decrease the fund's exposure to changing
security prices or other factors that affect security values. If FMR's
strategies do not work as intended, the fund may not achieve its
objective.
INVESTMENT OBJECTIVE
ADVISOR CYCLICAL INDUSTRIES FUND seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR normally invests the fund's assets primarily in common stocks.
FMR invests the fund's assets primarily in companies engaged in the
research, development, manufacture, distribution, supply or sale of
materials, equipment, products , or services related to cyclical
industries.
FMR normally invests at least 80% of the fund's assets in securities
of companies principally engaged in the business activities of the
cyclical industries sector. These companies may include, for example,
companies in the automotive, chemical, construction and housing,
defense and aerospace, environmental services, industrial equipment
and materials, paper and forest products, and transportation
industries.
FMR may invest the fund's assets in securities of foreign issuers in
addition to securities of domestic issuers.
Because the fund is considered non-diversified, FMR may invest a
significant percentage of the fund's assets in a single issuer.
In buying and selling securities for the fund, FMR relies on
fundamental analysis of each issuer and its potential for success in
light of its current financial condition, its industry position, and
economic and market conditions. Factors considered include growth
potential, earnings estimates , and management.
FMR may lend the fund's securities to broker-dealers or other
institutions to earn income for the fund.
FMR may use various techniques, such as buying and selling futures
contracts, to increase or decrease the fund's exposure to changing
security prices or other factors that affect security values. If FMR's
strategies do not work as intended, the fund may not achieve its
objective.
INVESTMENT OBJECTIVE
ADVISOR FINANCIAL SERVICES FUND seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR normally invests the fund's assets primarily in common stocks.
FMR invests the fund's assets primarily in companies providing
financial services to consumers and industry.
FMR normally invests at least 80% of the fund's assets in securities
of companies principally engaged in the business activities of the
financial services sector. These companies may include, for example,
commercial banks, savings and loan associations, brokerage companies,
insurance companies, real estate-related companies, leasing companies,
and consumer and industrial finance companies.
FMR may invest the fund's assets in securities of foreign issuers in
addition to securities of domestic issuers.
In buying and selling securities for the fund, FMR relies on
fundamental analysis of each issuer and its potential for success in
light of its current financial condition, its industry position, and
economic and market conditions. Factors considered include growth
potential, earnings estimates , and management.
FMR may lend the fund's securities to broker-dealers or other
institutions to earn income for the fund.
FMR may use various techniques, such as buying and selling futures
contracts, to increase or decrease the fund's exposure to changing
security prices or other factors that affect security values. If FMR's
strategies do not work as intended, the fund may not achieve its
objective.
INVESTMENT OBJECTIVE
ADVISOR HEALTH CARE FUND seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR normally invests the fund's assets primarily in common stocks.
FMR invests the fund's assets primarily in companies engaged in the
design, manufacture, or sale of products or services used for or in
connection with health care or medicine.
FMR normally invests at least 80% of the fund's assets in securities
of companies principally engaged in the business activities of the
health care sector. These companies may include, for example,
pharmaceutical companies; companies involved in biotechnology, medical
diagnostic, biochemical , or other health care research and
development; companies involved in the operation of health care
facilities; and other companies involved in the design, manufacture,
or sale of health care-related products or services , such as
medical, dental , and optical products, hardware , or
services.
FMR may invest the fund's assets in securities of foreign issuers in
addition to securities of domestic issuers.
Because the fund is considered non-diversified, FMR may invest a
significant percentage of the fund's assets in a single issuer.
In buying and selling securities for the fund, FMR relies on
fundamental analysis of each issuer and its potential for success in
light of its current financial condition, its industry position, and
economic and market conditions. Factors considered include growth
potential, earnings estimates , and management.
FMR may lend the fund's securities to broker-dealers or other
institutions to earn income for the fund.
FMR may use various techniques, such as buying and selling futures
contracts, to increase or decrease the fund's exposure to changing
security prices or other factors that affect security values. If FMR's
strategies do not work as intended, the fund may not achieve its
objective.
INVESTMENT OBJECTIVE
ADVISOR NATURAL RESOURCES FUND seeks long-term growth of capital and
protection of the purchasing power of shareholders' capital.
PRINCIPAL INVESTMENT STRATEGIES
FMR normally invests the fund's assets primarily in common stocks and
in certain precious metals.
FMR invests the fund's assets primarily in companies that own or
develop natural resources, or supply goods and services to such
companies, or in physical commodities.
FMR normally invests at least 80% of the fund's assets in securities
of companies principally engaged in the business activities of the
natural resources sector. These companies may include, for example,
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. FMR treats
investments in instruments whose value is linked to the price of
precious metals as investments in precious metals.
FMR may invest the fund's assets in securities of foreign issuers in
addition to securities of domestic issuers.
Because the fund is considered non-diversified, FMR may invest a
significant percentage of the fund's assets in a single issuer.
In buying and selling securities for the fund, FMR relies on
fundamental analysis of each issuer and its potential for success in
light of its current financial condition, its industry position, and
economic and market conditions. Factors considered include growth
potential, earnings estimates , and management.
FMR may lend the fund's securities to broker-dealers or other
institutions to earn income for the fund.
FMR may use various techniques, such as buying and selling futures
contracts, to increase or decrease the fund's exposure to changing
security prices or other factors that affect security values. If FMR's
strategies do not work as intended, the fund may not achieve its
objective.
INVESTMENT OBJECTIVE
ADVISOR TECHNOLOGY FUND seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR normally invests the fund's assets primarily in common stocks.
FMR invests the fund's assets primarily in companies which have, or
will develop, products, processes or services that will provide or
will benefit significantly from technological advances and
improvements.
FMR normally invests at least 80% of the fund's assets in securities
of companies principally engaged in the business activities of the
technology sector. 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.
FMR may invest the fund's assets in securities of foreign issuers in
addition to securities of domestic issuers.
Because the fund is considered non-diversified, FMR may invest a
significant percentage of the fund's assets in a single issuer.
In buying and selling securities for the fund, FMR relies on
fundamental analysis of each issuer and its potential for success in
light of its current financial condition, its industry position, and
economic and market conditions. Factors considered include growth
potential, earnings estimates , and management.
FMR may lend the fund's securities to broker-dealers or other
institutions to earn income for the fund.
FMR may use various techniques, such as buying and selling futures
contracts, to increase or decrease the fund's exposure to changing
security prices or other factors that affect security values. If FMR's
strategies do not work as intended, the fund may not achieve its
objective.
INVESTMENT OBJECTIVE
ADVISOR UTILITIES GROWTH FUND seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR normally invests the fund's assets primarily in common stocks.
FMR invests the fund's assets primarily in companies in the public
utilities industry and companies deriving a majority of their revenues
from their public utility operations.
FMR normally invests at least 80% of the fund's assets in securities
of companies principally engaged in the business activities of the
utilities sector. These companies may include, for example, companies
that manufacture, produce, generate, transmit , or sell gas or
electric energy; water supply, waste disposal and sewerage, and
sanitary service companies; and companies involved in the
communication field, including telephone, telegraph, satellite,
microwave , and the provision of other communication facilities
for the public benefit.
FMR may invest the fund's assets in securities of foreign issuers in
addition to securities of domestic issuers.
Because the fund is considered non-diversified, FMR may invest a
significant percentage of the fund's assets in a single issuer.
In buying and selling securities for the fund, FMR relies on
fundamental analysis of each issuer and its potential for success in
light of its current financial condition, its industry position, and
economic and market conditions. Factors considered include growth
potential, earnings estimates , and management.
FMR may lend the fund's securities to broker-dealers or other
institutions to earn income for the fund.
FMR may use various techniques, such as buying and selling futures
contracts, to increase or decrease the fund's exposure to changing
security prices or other factors that affect security values. If FMR's
strategies do not work as intended, the fund may not achieve its
objective.
DESCRIPTION OF PRINCIPAL SECURITY TYPES
EQUITY SECURITIES represent an ownership interest, or the right to
acquire an ownership interest, in an issuer. Different types of equity
securities provide different voting and dividend rights and priority
in the event of the bankruptcy of the issuer. Equity securities
include common stocks, preferred stocks, convertible
securities , and warrants.
PRINCIPAL INVESTMENT RISKS
Many factors affect each fund's performance. A fund's share price
changes daily based on changes in market conditions and interest rates
and in response to other economic, political , or financial
developments. A fund's reaction to these events will be affected by
the types of the securities in which the fund invests, the financial
condition, industry and economic sector, and geographic location of an
issuer, and the fund's level of investment in the securities of that
issuer. Because FMR concentrates each fund's investments in a
particular market sector, each fund's performance is expected to be
closely tied to economic and market conditions within that sector and
to be more volatile than the performance of less concentrated funds.
In addition, because FMR may invest a significant percentage of the
assets of each fund (except Advisor Financial Services) in a single
issuer, the fund's performance could be closely tied to the market
value of that one issuer and could be more volatile than the
performance of more diversified funds. When you sell your shares of a
fund, they could be worth more or less than what you paid for them.
The following factors may significantly affect a fund's performance:
STOCK MARKET VOLATILITY. The value of equity securities fluctuates in
response to issuer, political, market , and economic
developments. In the short term, equity prices can fluctuate
dramatically in response to these developments. Different parts of the
market and different types of equity securities can react differently
to these developments. For example, large cap stocks can react
differently than small cap stocks, and "growth" stocks can react
differently than "value" stocks. Issuer, political , or economic
developments can affect a single issuer, issuers within an industry or
economic sector or geographic region, or the market as a whole.
FOREIGN EXPOSURE. Foreign securities, foreign currencies, and
securities issued by U.S. entities with substantial foreign operations
can involve additional risks relating to political, economic ,
or regulatory conditions in foreign countries. These risks include
fluctuations in foreign currencies; withholding or other taxes;
trading, settlement, custodial , and other operational risks;
and the less stringent investor protection and disclosure standards of
some foreign markets. All of these factors can make foreign
investments, especially those in emerging markets, more volatile and
potentially less liquid than U.S. investments. In addition, foreign
markets can perform differently than the U.S. market.
INDUSTRY CONCENTRATION. Market conditions, interest rates, and
economic, regulatory , or financial developments could
significantly affect a market sector, and the securities of companies
in that sector could react similarly to these or other developments.
The CONSUMER industries can be significantly affected by 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.
The CYCLICAL industries can be significantly affected by general
economic trends, including employment, economic growth, and interest
rates, changes in consumer sentiment and spending, commodity prices,
legislation, government regulation and spending, import controls, and
worldwide competition. For example, commodity price declines and unit
volume reductions resulting from an over-supply of materials used in
cyclical industries can adversely affect those industries.
Furthermore, a company in the cyclical industries can be subject to
liability for environmental damage, depletion of resources, and
mandated expenditures for safety and pollution control.
The FINANCIAL SERVICES industries are subject to extensive government
regulation which can 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 affect the
financial services industries. Insurance companies can be subject to
severe price competition. The financial service industries are
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.
The HEALTH CARE industries are subject to government regulation and
government approval of products and services, which could have a
significant effect on price and availability. Furthermore, the types
of products or services produced or provided by health care companies
quickly can become obsolete.
The NATURAL RESOURCES industries can be significantly affected by
events relating to international political and economic developments,
energy conservation, the success of exploration projects, and tax and
other government regulations.
The TECHNOLOGY industries can be significantly affected by
obsolescence of existing technology, short product cycles, falling
prices and profits, and competition from new market entrants.
The UTILITIES industries can be significantly affected by government
regulation, financing difficulties, supply and demand of services or
fuel, and natural resource conservation.
ISSUER-SPECIFIC CHANGES. Changes in the financial condition o f
an issuer, changes in specific economic or political conditions that
affect a particular type of security or issuer, and changes in general
economic or political conditions can affect the value of an issuer's
securities. The value of securities of smaller, less well-known
issuers can be more volatile than that of larger issuers. Smaller
issuers can have more limited product lines, markets , or
financial resources.
In response to market, economic, political , or other
conditions, FMR may temporarily use a different investment strategy
for defensive purposes. If FMR does so, different factors could affect
a fund's performance and the fund may not achieve its investment
objective.
FUNDAMENTAL INVESTMENT POLICIES
The policies discussed below are fundamental, that is, subject to
change only by shareholder approval.
ADVISOR CONSUMER INDUSTRIES FUND invests primarily in companies
engaged in the manufacture and distribution of goods to consumers both
domestically and internationally.
ADVISOR 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.
ADVISOR FINANCIAL SERVICES FUND invests primarily in companies
providing financial services to consumers and industry.
ADVISOR 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.
ADVISOR 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.
ADVISOR 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.
ADVISOR 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 OF ADVISOR CONSUMER INDUSTRIES, ADVISOR CYCLICAL INDUSTRIES,
ADVISOR FINANCIAL SERVICES, ADVISOR HEALTH CARE, ADVISOR TECHNOLOGY
AND ADVISOR UTILITIES GROWTH seeks capital appreciation.
VALUING SHARES
Each fund is open for business each day the New York Stock Exchange
(NYSE) is open.
A class's net asset value per share (NAV) is the value of a single
share. Fidelity(registered trademark) normally calculates each class's
NAV as of the close of business 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 Securities and Exchange
Commission (SEC). Each fund's assets are valued as of this time for
the purpose of computing each class's NAV.
To the extent that each fund's assets are traded in other markets on
days when the NYSE is closed, the value of the fund's assets may be
affected on days when the fund is not open for business. In addition,
trading in some of a fund's assets may not occur on days when the fund
is open for business.
Each fund's assets are valued primarily on the basis of market
quotations. Certain short-term securities are valued on the basis of
amortized cost. If market quotations are not readily available for a
security or if a security's value has been materially affected by
events occurring after the close of the exchange or market on which
the security is principally traded (for example, a foreign exchange or
market), that security may be valued by another method that the Board
of Trustees believes accurately reflects fair value. A security's
valuation may differ depending on the method used for determining
value.
SHAREHOLDER INFORMATION
BUYING AND SELLING SHARES
GENERAL INFORMATION
For account, product and service information, please use the following
phone numbers:
(small solid bullet) If you are investing through a broker-dealer or
insurance representative, 1-800-522-7297 (8:30 a.m. - 7:00 p.m.
Eastern time, Monday through Friday).
(small solid bullet) If you are investing through a bank
representative, 1-800-843-3001 (8:30 a.m. - 7:00 p.m. Eastern time,
Monday through Friday).
Please use the following addresses:
BUYING OR SELLING SHARES
Fidelity Investments
P.O. Box 770002
Cincinnati, OH 45277-0081
OVERNIGHT EXPRESS
Fidelity Investments
2300 Litton Lane - KH2A
Hebron, KY 41048
You may buy or sell Class A, Class T, Class B, and Class C shares of
the funds through a retirement account or an investment professional.
When you invest through a retirement account or an investment
professional, the procedures for buying, selling , and
exchanging Class A, Class T, Class B, and Class C shares of a
fund and the account features and policies may differ. Additional fees
may also apply to your investment in Class A, Class T, Class B, and
Class C shares of a fund, including a transaction fee if you buy or
sell Class A, Class T, Class B, or Class C shares of the fund
through a broker or other investment professional.
Certain methods of contacting Fidelity, such as by telephone, may be
unavailable or delayed (for example, during periods of unusual market
activity).
The different ways to set up (register) your account with Fidelity are
listed in the following table.
WAYS TO SET UP YOUR ACCOUNT
INDIVIDUAL OR JOINT TENANT
FOR YOUR GENERAL INVESTMENT NEEDS
RETIREMENT
FOR TAX-ADVANTAGED RETIREMENT SAVINGS
(solid bullet) TRADITIONAL INDIVIDUAL RETIREMENT ACCOUNTS (IRAS)
(solid bullet) ROTH IRAS
(solid bullet) ROLLOVER IRAS
(solid bullet) 401(K) PLANS AND CERTAIN OTHER 401(A)-QUALIFIED
PLANS
(solid bullet) KEOGH PLANS
(solid bullet) SIMPLE IRAS
(solid bullet) SIMPLIFIED EMPLOYEE PENSION PLANS (SEP-IRAS)
(solid bullet) SALARY REDUCTION SEP-IRAS (SARSEPS)
GIFTS OR TRANSFERS TO A MINOR (UGMA, UTMA)
TO INVEST FOR A CHILD'S EDUCATION OR OTHER FUTURE NEEDS
TRUST
FOR MONEY BEING INVESTED BY A TRUST
BUSINESS OR ORGANIZATION
FOR INVESTMENT NEEDS OF CORPORATIONS, ASSOCIATIONS, PARTNERSHIPS OR
OTHER GROUPS
BUYING SHARES
The price to buy one share of Class A or Class T is the class's
offering price or the class's NAV, depending on whether you pay a
front-end sales charge.
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.
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.
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.
Your shares will be bought at the next offering price or NAV, as
applicable, calculated after your order is received in proper form.
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.
Short-term or excessive trading into and out of a fund may harm
performance by disrupting portfolio management strategies and by
increasing expenses. Accordingly, a fund may reject any purchase
orders, including exchanges, particularly from market timers or
investors who, in FMR's opinion, have a pattern of short-term or
excessive trading or whose trading has been or may be disruptive to
that fund. For these purposes, FMR may consider an investor's trading
history in that fund or other Fidelity funds, and accounts under
common ownership or control.
Each fund may stop offering shares completely or may offer shares only
on a limited basis, for a period of time or permanently.
When you place an order to buy shares, 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) Fidelity reserves the right to limit the number
of checks processed at one time.
(small solid bullet) 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 liable for any losses
or fees a fund or Fidelity has incurred.
(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.
Shares can be bought or sold through investment professionals using an
automated order placement and settlement system that guarantees
payment for orders on a specified date.
Certain financial institutions that meet creditworthiness criteria
established by Fidelity Distributors Corporation (FDC) 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 that time, the order will be
canceled and the financial institution will be liable for any losses.
MINIMUMS
TO OPEN AN ACCOUNT $2,500
For certain Fidelity Advisor retirement accountsA $500
Through regular investment plansB $100
TO ADD TO AN ACCOUNT $100
MINIMUM BALANCE $1,000
For certain Fidelity Advisor retirement accountsA None
A FIDELITY ADVISOR TRADITIONAL IRA, ROTH IRA, ROLLOVER IRA, SEP-IRA,
AND KEOGH ACCOUNTS.
B AN ACCOUNT MAY BE OPENED WITH A MINIMUM OF $100, PROVIDED THAT A
REGULAR INVESTMENT PLAN IS ESTABLISHED AT THE TIME THE ACCOUNT IS
OPENED.
There is no minimum account balance or initial or subsequent purchase
minimum for certain Fidelity retirement accounts funded through salary
deduction, or accounts opened with the proceeds of distributions from
such retirement accounts. In addition, each fund may waive or lower
purchase minimums in other circumstances.
Purchase and account minimums are waived for purchases of Class T
shares with distributions from a Fidelity Defined Trust account.
PURCHASE AMOUNTS OF MORE THAN $250,000 WILL NOT BE ACCEPTED FOR CLASS
B SHARES.
PURCHASE AMOUNTS OF MORE THAN $1 MILLION WILL NOT BE ACCEPTED FOR
CLASS C SHARES. THIS LIMIT DOES NOT APPLY TO PURCHASES OF CLASS C
SHARES MADE BY AN EMPLOYEE BENEFIT PLAN (AS DEFINED IN THE EMPLOYEE
RETIREMENT INCOME SECURITY ACT), 403(B) PROGRAM OR PLAN COVERING A
SOLE-PROPRIETOR (FORMERLY KEOGH/H.R. 10 PLAN).
KEY INFORMATION
PHONE TO OPEN AN ACCOUNT
(small solid bullet) Exchange
from the same class of
another Fidelity Advisor
fund or from certain other
Fidelity funds. Call your
investment professional or
call Fidelity at the
appropriate number found in
"General Information."
TO ADD TO AN ACCOUNT
(small solid bullet) Exchange
from the same class of
another Fidelity Advisor
fund or from certain other
Fidelity funds. Call your
investment professional or
call Fidelity at the
appropriate number found in
"General Information."
MAIL FIDELITY INVESTMENTS TO OPEN AN ACCOUNT
P.O. BOX 770002 CINCINNATI, (small solid bullet) Complete
OH 45277-0081 and sign the application.
Make your check payable to
the complete name of the
fund and note the applicable
class. Mail to your
investment professional or
to the address at left.
TO ADD TO AN ACCOUNT
(small solid bullet) Make
your check payable to the
complete name of the fund
and note the applicable
class. Indicate your fund
account number on your check
and mail to your investment
professional or to the
address at left.
(small solid bullet) Exchange
from the same class of other
Fidelity Advisor funds or
from certain other Fidelity
funds. Send a letter of
instruction to your
investment professional or
to the address at left,
including your name, the
funds' names, the applicable
class names, the fund
account numbers, and the
dollar amount or number of
shares to be exchanged.
IN PERSON TO OPEN AN ACCOUNT
(small solid bullet) Bring
your application and check
to your investment
professional.
TO ADD TO AN ACCOUNT
(small solid bullet) Bring
your check to your
investment professional.
WIRE TO OPEN AN ACCOUNT
(small solid bullet) Call
your investment professional
or call Fidelity at the
appropriate number found in
"General Information" to set
up your account and to
arrange a wire transaction.
(small solid bullet) Wire to:
Banker's Trust Company, Bank
Routing # 021001033, Account
# 00159759.
(small solid bullet) Specify
the complete name of the
fund, note the applicable
class, and include your new
fund account number and your
name.
TO ADD TO AN ACCOUNT
(small solid bullet) Wire to:
Banker's Trust Company, Bank
Routing # 021001033, Account
# 00159759.
(small solid bullet) Specify
the complete name of the
fund, note the applicable
class, and include your fund
account number and your name.
AUTOMATICALLY TO OPEN AN ACCOUNT
(small solid bullet) Not
available.
TO ADD TO AN ACCOUNT
(small solid bullet) Use
Fidelity Advisor Systematic
Investment Program.
(small solid bullet) Use
Fidelity Advisor Systematic
Exchange Program to exchange
from certain Fidelity money
market funds or a Fidelity
Advisor fund.
SELLING SHARES
The price to sell one share of each class is the class's NAV, minus
the redemption fee (short-term trading fee), if applicable, and any
applicable CDSC.
Each fund will deduct a short-term trading fee of 1.00% 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.
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 short-term trading fee does not
apply to shares that were acquired through reinvestment of
distributions.
Any applicable CDSC is calculated based on your original
redemption amount.
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.
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.
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 sell 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; or
(small solid bullet) The redemption proceeds are being transferred to
a Fidelity account with a different registration.
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.
When you place an order to sell shares, note the following:
(small solid bullet) 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, except accounts not subject to account minimums.
(small solid bullet) Normally, Fidelity will process redemptions by
the next business day, but Fidelity may take up to seven days to
process redemptions if making immediate payment would adversely affect
a fund.
(small solid bullet) Redemption proceeds (other than exchanges) may be
delayed until money from prior purchases sufficient to cover your
redemption has been received and collected. This can take up to seven
business days after a purchase.
(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) Redemption proceeds may be paid in securities or
other assets rather than in cash if the Board of Trustees determines
it is in the best interests of a fund.
(small solid bullet) You will not receive interest on amounts
represented by uncashed redemption checks.
(small solid bullet) Unless otherwise instructed, Fidelity will send a
check to the record address.
KEY INFORMATION
PHONE (small solid bullet) Call
your investment professional
or call Fidelity at the
appropriate number found in
"General Information" to
initiate a wire transaction
or to request a check for
your redemption.
(small solid bullet) Exchange
to the same class of other
Fidelity Advisor funds or to
certain other Fidelity
funds. Call your investment
professional or call
Fidelity at the appropriate
number found in "General
Information."
MAIL FIDELITY INVESTMENTS INDIVIDUAL, JOINT TENANT,
P.O. BOX 770002 CINCINNATI, SOLE PROPRIETORSHIP, UGMA,
OH 45277-0081 UTMA
(small solid bullet) Send a
letter of instruction to
your investment professional
or to the address at left,
including your name, the
fund's name, the applicable
class name, your fund
account number, and the
dollar amount or number of
shares to be sold. The
letter of instruction must
be signed by all persons
required to sign for
transactions, exactly as
their names appear on the
account.
RETIREMENT ACCOUNT
(small solid bullet) The
account owner should
complete a retirement
distribution form. Call your
investment professional or
call Fidelity at the
appropriate number found in
"General Information" to
request one.
TRUST
(small solid bullet) Send a
letter of instruction to
your investment professional
or to the address at left,
including the trust's name,
the fund's name, the
applicable class name, the
trust's fund account number,
and the dollar amount or
number of shares to be sold.
The trustee must sign the
letter of instruction
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) Send a
letter of instruction to
your investment professional
or to the address at left,
including the firm's name,
the fund's name, the
applicable class name, the
firm's fund account number,
and the dollar amount or
number of shares to be sold.
At least one person
authorized by corporate
resolution to act on the
account must sign the letter
of instruction.
(small solid bullet) Include
a corporate resolution with
corporate seal or a
signature guarantee.
EXECUTOR, ADMINISTRATOR,
CONSERVATOR, GUARDIAN
(small solid bullet) Call
your investment professional
or call Fidelity at the
appropriate number found in
"General Information" for
instructions.
IN PERSON INDIVIDUAL, JOINT TENANT,
SOLE PROPRIETORSHIP, UGMA,
UTMA
(small solid bullet) Bring a
letter of instruction to
your investment
professional. The letter of
instruction must be signed
by all persons required to
sign for transactions,
exactly as their names
appear on the account.
RETIREMENT ACCOUNT
(small solid bullet) The
account owner should
complete a retirement
distribution form. Visit
your investment professional
to request one.
TRUST
(small solid bullet) Bring a
letter of instruction to
your investment
professional. The trustee
must sign the letter of
instruction 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) Bring a
letter of instruction to
your investment
professional. At least one
person authorized by
corporate resolution to act
on the account must sign the
letter of instruction.
(small solid bullet) Include
a corporate resolution with
corporate seal or a
signature guarantee.
EXECUTOR, ADMINISTRATOR,
CONSERVATOR, GUARDIAN
(small solid bullet) Visit
your investment professional
for instructions.
AUTOMATICALLY (small solid bullet) Use
Fidelity Advisor Systematic
Exchange Program to exchange
to the same class of another
Fidelity Advisor fund or to
certain Fidelity funds.
(small solid bullet) Use
Fidelity Advisor Systematic
Withdrawal Program to set up
periodic redemptions from
your Class A, Class T, Class
B, and Class C account.
EXCHANGING SHARES
An exchange involves the redemption of all or a portion of the shares
of one fund and the purchase of shares of another fund.
As a Class A shareholder, you have the privilege of exchanging Class A
shares of a fund for the same class of shares of other Fidelity
Advisor funds at NAV or for Daily Money Class shares of Treasury Fund,
Prime Fund or Tax-Exempt Fund.
As a Class T shareholder, you have the privilege of exchanging Class T
shares of a fund for the same class of shares of other Fidelity
Advisor funds at NAV or for Daily Money Class shares of Treasury Fund,
Prime Fund or Tax-Exempt 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.
As a Class B shareholder, you have the privilege of exchanging Class B
shares of a fund for the same class of shares of other Fidelity
Advisor funds or for Advisor B Class shares of Treasury Fund.
As a Class C shareholder, you have the privilege of exchanging Class C
shares of a fund for the same class of shares of other Fidelity
Advisor funds or for Advisor C Class shares of Treasury Fund.
However, you should note the following policies and restrictions
governing exchanges:
(small solid bullet) The fund or class you are exchanging into must be
available for sale in your state.
(small solid bullet) You may exchange only 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 number of
exchanges you may make between the Advisor Focus funds, the funds may
enact limitations in the future. Each fund may temporarily or
permanently terminate the exchange privilege of any investor who makes
more than four exchanges out of an Advisor Focus fund to another
Advisor fund per calendar year. Accounts under common ownership or
control will be counted together for purposes of the four exchange
limit.
(small solid bullet) Each fund may reject exchange purchases in excess
of 1% of its net assets or $1 million, whichever is less.
(small solid bullet) The exchange limit may be modified for accounts
held by 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 may 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) Any exchanges of Class A, Class T, Class B, and
Class C shares are not subject to a CDSC.
The funds may terminate or modify the 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.
ACCOUNT FEATURES AND POLICIES
FEATURES
The following features are available to buy and sell shares of the
funds.
AUTOMATIC INVESTMENT AND WITHDRAWAL PROGRAMS. Fidelity offers
convenient services that let you automatically transfer money into
your account, between accounts, or out of your account. While
automatic investment programs 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. Automatic withdrawal or exchange
programs can be a convenient way to provide a consistent income flow
or to move money between your investments.
<TABLE>
<CAPTION>
<S> <C> <C> <C>
FIDELITY ADVISOR SYSTEMATIC
INVESTMENT PROGRAM TO MOVE
MONEY FROM YOUR BANK ACCOUNT
TO A FIDELITY ADVISOR FUND.
MINIMUM MINIMUM FREQUENCY PROCEDURES
INITIAL ADDITIONAL
$100 $100 Monthly, bimonthly, (small solid bullet) To set
quarterly, or semi-annually up for a new account,
complete the appropriate
section on the application.
(small solid bullet) To set
up for existing accounts,
call your investment
professional or call
Fidelity at the appropriate
number found in "General
Information" for an
application.
(small solid bullet) To make
changes, call your
investment professional or
call Fidelity at the
appropriate number found in
"General Information." Call
at least 10 business days
prior to your next scheduled
investment date.
TO DIRECT DISTRIBUTIONS FROM
A FIDELITY DEFINED TRUST TO
CLASS T OF A FIDELITY
ADVISOR FUND.
MINIMUM MINIMUM PROCEDURES
INITIAL ADDITIONAL
Not Not (small solid bullet) To set
Applicable Applicable up for a new or existing
account, call your
investment professional or
call Fidelity at the
appropriate number found in
"General Information" for
the appropriate enrollment
form.
(small solid bullet) To make
changes, call your
investment professional or
call Fidelity at the
appropriate number found in
"General Information."
FIDELITY ADVISOR SYSTEMATIC
EXCHANGE PROGRAM TO MOVE
MONEY FROM CERTAIN FIDELITY
MONEY MARKET FUNDS TO CLASS
A, CLASS T, CLASS B, OR
CLASS C OF A FIDELITY
ADVISOR FUND OR FROM CLASS
A, CLASS T, CLASS B, OR
CLASS C OF A FIDELITY
ADVISOR FUND TO THE SAME
CLASS OF ANOTHER FIDELITY
ADVISOR FUND.
MINIMUM FREQUENCY PROCEDURES
$100 Monthly, quarterly, (small solid bullet) To set
semi-annually, or annually up, call your investment
professional or call
Fidelity at the appropriate
number found in "General
Information" after both
accounts are opened.
(small solid bullet) To make
changes, call your
investment professional or
call Fidelity at the
appropriate number found in
"General Information." Call
at least 2 business days
prior to your next scheduled
exchange date.
(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 balance
of $1,000.
FIDELITY ADVISOR SYSTEMATIC
WITHDRAWAL PROGRAM TO SET UP
PERIODIC REDEMPTIONS FROM
YOUR CLASS A, CLASS T, CLASS
B, OR CLASS C ACCOUNT TO YOU
OR TO YOUR BANK CHECKING
ACCOUNT.
MINIMUM MAXIMUM FREQUENCY PROCEDURES
$100 $50,000 Class A and Class T: (small solid bullet) Accounts
Monthly, quarterly, or with a value of $10,000 or
semi-annually Class B and more in Class A, Class T,
Class C: Monthly or Class B, or Class C shares
quarterly are eligible for this program.
(small solid bullet) To set
up, call your investment
professional or call
Fidelity at the appropriate
number found in "General
Information" for instructions.
(small solid bullet) To make
changes, call your
investment professional or
call Fidelity at the
appropriate number found in
"General Information." Call
at least 10 business days
prior to your next scheduled
withdrawal date.
(small solid bullet)
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; and you
may set your withdrawal
amount as a percentage of
the value of your account or
a fixed dollar amount.
(small solid bullet) 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.
</TABLE>
OTHER FEATURES. The following other features are also available to buy
and sell shares of the funds.
WIRE
TO PURCHASE AND SELL SHARES VIA THE FEDERAL RESERVE WIRE SYSTEM.
(small solid bullet) You must sign up for the Wire feature before
using it. Complete the appropriate section on the application when
opening your account.
(small solid bullet) Call your investment professional or call
Fidelity at the appropriate number found in "General Information"
before your first use to verify that this feature is set up on your
account.
(small solid bullet) To sell shares by wire, you must designate the
U.S. commercial bank account(s) into which you wish the redemption
proceeds deposited.
(small solid bullet) To add the wire feature or to change the bank
account designated to receive redemption proceeds at any time prior to
making a redemption request, you should send a letter of instruction,
including a signature guarantee, to your investment professional or to
Fidelity at the address found in "General Information."
POLICIES
The following policies apply to you as a shareholder.
STATEMENTS AND REPORTS that Fidelity sends to you include the
following:
(small solid bullet) Confirmation statements (after transactions
affecting your account balance except reinvestment of distributions in
the fund or another fund and certain transactions through automatic
investment or withdrawal programs).
(small solid bullet) Monthly or quarterly account statements
(detailing account balances and all transactions completed during the
prior month or quarter).
(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 Fidelity at 1-888-622-3175 if you need additional copies
of financial reports or prospectuses.
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 sell and
exchange by telephone, call Fidelity for instructions. Additional
documentation may be required from corporations, associations, and
certain fiduciaries.
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.
If your ACCOUNT BALANCE falls below $1,000 (except accounts not
subject to account minimums), you will be given 30 days' notice to
reestablish the minimum balance. If you do not increase your balance,
Fidelity may close your account and send the proceeds to you. Your
shares will be sold 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 CERTAIN SERVICES, such as providing
historical account documents.
DIVIDENDS AND CAPITAL GAIN DISTRIBUTIONS
Each fund earns dividends, interest , and other income from its
investments, and distributes this income (less expenses) to
shareholders as dividends. Each fund also realizes capital gains from
its investments, and distributes these gains (less any losses) to
shareholders as capital gain distributions.
Each fund normally pays dividends and capital gain distributions in
September and December.
DISTRIBUTION OPTIONS
When you open an account, specify on your application how you want to
receive your distributions. The following options may be available for
each class's distributions:
1. REINVESTMENT OPTION. Your dividends 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. Your dividends will be paid in cash.
3. CASH OPTION. Your dividends and capital gain distributions will be
paid in cash.
4. DIRECTED DIVIDENDS(registered trademark) OPTION. Your dividends
will be automatically invested in the same class of shares of another
identically registered Fidelity Advisor fund or shares of certain
identically registered Fidelity funds. Your capital gain distributions
will be automatically invested in the same class of shares of another
identically registered Fidelity Advisor fund or shares of certain
identically registered Fidelity funds, automatically reinvested in
additional shares of the same class of the fund, or paid in cash.
Not all distribution options are available for every account. If the
option you prefer is not listed on your account application, or if you
want to change your current option, contact your investment
professional directly or call Fidelity.
If you elect to receive distributions paid in cash by check and the
U.S. Postal Service does not deliver your checks, your distribution
option may be converted to the Reinvestment Option. You will not
receive interest on amounts represented by uncashed distribution
checks.
TAX CONSEQUENCES
As with any investment, your investment in a fund could have tax
consequences for you. If you are not investing through a
tax-advantaged retirement account, you should consider these tax
consequences.
TAXES ON DISTRIBUTIONS. Distributions you receive from each fund are
subject to federal income tax, and may also be subject to state or
local taxes.
For federal tax purposes, each fund's dividends and distributions of
short-term capital gains are taxable to you as ordinary income. Each
fund's distributions of long-term capital gains are taxable to you
generally as capital gains.
If you buy shares when a fund has realized but not yet distributed
income or capital gains, you will be "buying a dividend" by paying the
full price for the shares and then receiving a portion of the price
back in the form of a taxable distribution.
Any taxable distributions you receive from a fund will normally be
taxable to you when you receive them, regardless of your distribution
option.
TAXES ON TRANSACTIONS. Your redemptions, including exchanges, may
result in a capital gain or loss for federal tax purposes. A capital
gain or loss on your investment in a fund is the difference between
the cost of your shares and the price you receive when you sell them.
FUND SERVICES
FUND MANAGEMENT
Each fund is a mutual fund, an investment that pools shareholders'
money and invests it toward a specified goal.
FMR is each fund's manager.
As of March 25, 1999, FMR had approximately $522 billion in
discretionary assets under management.
As the manager, FMR is responsible for choosing each fund's
investments and handling its 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. FMR
U.K. was organized in 1986 to provide investment research and advice
to FMR. Currently, FMR U.K. provides investment research and advice on
issuers based outside the United States and may also provide
investment advisory services 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. FMR
Far East was organized in 1986 to provide investment research and
advice to FMR. Currently, FMR Far East provides investment research
and advice on issuers based outside the United States and may also
provide investment advisory services for each fund.
A fund could be adversely affected if the computer systems used by FMR
and other service providers do not properly process and calculate
date-related information from and after January 1, 2000. FMR has
advised each fund that it is actively working on necessary changes to
its computer systems and expects that its systems, and those of other
major service providers, will be modified prior to January 1, 2000.
However, there can be no assurance that there will be no adverse
impact on a fund.
Ramin Arani is an analyst and manager of Advisor Health Care, which he
has managed since August 1999. He also manages other Fidelity funds.
Mr. Arani joined Fidelity as a research associate in 1992.
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.
Scott Offen is manager of Advisor Natural Resources, which he has
managed since September 1999. He also manages other Fidelity funds.
Since joining Fidelity in 1985, Mr. Offen has worked as a research
analyst and portfolio manager.
John Porter is manager of Advisor Consumer Industries, which he has
managed since September 1999. He also manages another Fidelity fund.
Mr. Porter joined Fidelity as an analyst in 1995, after receiving his
MBA from the University of Chicago.
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.
Peter Saperstone is manager of Advisor Utilities Growth, which he has
managed since October 1998. He also manages other Fidelity funds. Mr.
Saperstone joined Fidelity in 1995 and has worked as an analyst and
manager.
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.
From time to time a manager, analyst , or other Fidelity
employee may express views regarding a particular company, security,
industry or market sector. The views expressed by any such person are
the views of only that individual as of the time expressed and do not
necessarily represent the views of Fidelity or any other person in the
Fidelity organization. Any such views are subject to change at any
time based upon market or other conditions and Fidelity disclaims any
responsibility to update such views. These views may not be relied on
as investment advice and, because investment decisions for a Fidelity
fund are based on numerous factors, may not be relied on as an
indication of trading intent on behalf of any Fidelity fund.
Fidelity investment personnel may invest in securities for their own
investment accounts pursuant to a code of ethics that establishes
procedures for personal investing and restricts certain transactions.
Each fund pays a management fee to FMR. 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, dividing by
twelve, and multiplying the result by the fund's average net assets
throughout the month.
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 1999, the group fee rate was 0.2811 % for each fund.
The individual fund fee rate is 0.30% for each fund.
The total management fee for the fiscal year ended July 31, 1999, of
each fund's average net assets is shown in the table below.
Total Management Fee
Advisor Consumer Industries 0.58%
Advisor Cyclical Industries 0.58%
Advisor Financial Services 0.58%
Advisor Health Care 0.58%
Advisor Natural Resources 0.58%
Advisor Technology 0.58%
Advisor Utilities Growth 0.58%
FMR pays FMR U.K. and FMR Far East for providing assistance with
investment advisory services.
FMR may, from time to time, agree to reimburse a class 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 discontinued by FMR at any time, can
decrease a class's expenses and boost its performance.
FUND DISTRIBUTION
Each fund is composed of multiple classes of shares. All classes of a
fund have a common investment objective and investment portfolio.
FDC distributes each class's shares.
You may pay a sales charge when you buy or sell your shares.
FDC collects the sales charge.
The front-end sales charge will be reduced for purchases of Class A
and Class T shares according to the sales charge schedules below.
SALES CHARGES AND CONCESSIONS - CLASS A
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Sales Charge
As a % of offering price As an approximate % of net Investment professional
amount invested concession as % of offering
price
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 "FINDER'S FEE" SECTION ON PAGE 55.
SALES CHARGES AND CONCESSIONS - CLASS T
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Sales Charge
As a % of offering price As an approximate % of net Investment professional
amount invested concession as % of offering
price
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* *
</TABLE>
* SEE "FINDER'S FEE" SECTION ON PAGE 55.
Class A or Class T shares purchased by an individual or company
through the Combined Purchase, Rights of Accumulation or Letter of
Intent program may receive a reduced front-end sales charge according
to the sales charge schedules above. To qualify for a Class A or Class
T front-end sales charge reduction under one of these programs, you
must notify Fidelity in advance of your purchase. More detailed
information about these programs is contained in the statement of
additional information (SAI).
COMBINED PURCHASE. To receive a Class A or Class T front-end sales
charge reduction, if you are a new shareholder, you may combine your
purchase of Class A or Class T shares with purchases of: (i) Class A,
Class T, Class B, and Class C shares of any Fidelity Advisor fund and
(ii) Advisor B Class shares and Advisor C Class shares of Treasury
Fund.
RIGHTS OF ACCUMULATION. To receive a Class A or Class T front-end
sales charge reduction, if you are an existing shareholder, you may
add to your purchase of Class A or Class T shares the current value of
your holdings in: (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 or Tax-Exempt Fund acquired by exchange from
any Fidelity Advisor fund.
LETTER OF INTENT. You may receive a Class A or Class T front-end sales
charge reduction on your purchases of Class A and Class T shares made
during a 13-month period by signing a Letter of Intent (Letter). Each
Class A or Class T purchase you make after you sign the Letter will be
entitled to the reduced front-end sales charge applicable to the total
investment indicated in the Letter. Purchases of the following may be
aggregated for the purpose of completing your Letter: (i) Class A and
Class T shares of any Fidelity Advisor fund (except those acquired by
exchange from Daily Money Class shares of Treasury Fund, Prime Fund or
Tax-Exempt Fund that had been previously exchanged from a Fidelity
Advisor fund), (ii) Class B and Class C shares of any Fidelity Advisor
fund and (iii) Advisor B Class shares and Advisor C Class shares of
Treasury Fund. Reinvested income and capital gain distributions will
not be considered purchases for the purpose of completing your Letter.
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 SEVEN YEARS, CLASS B SHARES WILL CONVERT AUTOMATICALLY TO
CLASS A SHARES OF THE SAME FIDELITY ADVISOR FUND.
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 bought.
Except as provided below, investment professionals receive as
compensation from FDC, at the time of 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 will receive as
compensation from FDC, at the time of the 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, 403(b) program or plan
covering a sole-proprietor (formerly Keogh/H.R. 10 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 reinvestment of dividends or capital gain
distributions 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 will be
redeemed first, followed by those Class B or Class C shares that have
been held for the longest period of time.
A front-end sales charge will not apply to the following Class A
shares:
1. Purchased for an employee benefit plan (except a SIMPLE IRA, SEP,
or SARSEP plan or a plan covering self-employed individuals and their
employees (formerly Keogh/H.R. 10 plans)) or a 403(b) program with at
least $25 million or more in plan assets;
2. Purchased for an employee benefit plan (except a SIMPLE IRA, SEP,
or SARSEP plan or a plan covering self-employed individuals and their
employees (formerly Keogh/H.R. 10 plans)) or a 403(b) program
investing through an insurance company separate account used to fund
annuity contracts;
3. Purchased for an employee benefit plan (except a SIMPLE IRA, SEP,
or SARSEP plan or a plan covering self-employed individuals and their
employees (formerly Keogh/H.R. 10 plans)) or a 403(b) program
investing through a trust institution, bank trust department or
insurance company, or any such institution's broker-dealer affiliate
that is not part of an organization primarily engaged in the brokerage
business. Employee benefit plans (except SIMPLE IRA, SEP, and SARSEP
plans and plans covering self-employed individuals and their employees
(formerly Keogh/H.R. 10 plans)) and 403(b) programs that participate
in the Advisor Retirement Connection do not qualify for this waiver;
4. Purchased for an employee benefit plan (except a SIMPLE IRA, SEP,
or SARSEP plan or a plan covering self-employed individuals and their
employees (formerly Keogh/H.R. 10 plans)) or a 403(b) program
investing through an investment professional sponsored program that
requires the participating employee benefit plan to invest initially
in Class C or Class B shares and, upon meeting certain criteria,
subsequently requires the plan to invest in Class A shares;
5. Purchased by a trust institution or bank trust department for a
managed account that is charged an asset-based fee. Employee benefit
plans (except SIMPLE IRA, SEP, and SARSEP plans and plans covering
self-employed individuals and their employees (formerly Keogh/H.R. 10
plans)), 403(b) programs and accounts managed by third parties do not
qualify for this waiver;
6. Purchased by a broker-dealer for a managed account that is charged
an asset-based fee. Employee benefit plans (except SIMPLE IRA, SEP,
and SARSEP plans and plans covering self-employed individuals and
their employees (formerly Keogh/H.R. 10 plans)) and 403(b) programs do
not qualify for this waiver;
7. 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 (except SIMPLE IRA, SEP, and
SARSEP plans and plans covering self-employed individuals and their
employees (formerly Keogh/H.R. 10 plans)) and 403(b) programs do not
qualify for this waiver;
8. Purchased with proceeds from the sale of front-end load shares of a
non-Advisor mutual fund for an account participating in the FundSelect
by Nationwide program ;
9. 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 ; or
10. Purchased by the Fidelity Investments Charitable Gift Fund.
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 (except SIMPLE IRA, SEP,
and SARSEP plans and plans covering self-employed individuals and
their employees (formerly Keogh/H.R. 10 plans)) or 403(b) programs;
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 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. Purchased for an employee benefit plan (except a SIMPLE IRA, SEP,
or SARSEP plan or a plan covering self-employed individuals and their
employees (formerly Keogh/H.R. 10 plans)) or a 403(b) program;
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,
403(b) programs or plans covering sole-proprietors (formerly
Keogh/H.R. 10 plans) that are invested in Fidelity Advisor or Fidelity
funds, or (ii) an employee benefit plan, 403(b) program or plan
covering a sole-proprietor (formerly Keogh/H.R. 10 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 Fidelity International Limited 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, but excluding the
Fidelity Investments Charitable Gift Fund ) 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 by the Fidelity Investments Charitable Gift
Fund.
The Class B or Class C CDSC will not apply to the redemption of
shares:
1. For disability or death, provided that the shares are sold within
one year following the death or the initial determination of
disability;
2. That are permitted without penalty at age 70 1/2 pursuant to the
Internal Revenue Code from retirement plans or accounts (other than of
shares purchased on or after February 11, 1999 for Traditional IRAs,
Roth IRAs and Rollover IRAs);
3. For disability, payment of death benefits, or minimum required
distributions starting at age 70 1/2 from Traditional IRAs, Roth IRAs
and Rollover IRAs purchased on or after February 11, 1999;
4. Through the Fidelity Advisor Systematic Withdrawal Program; or
5. (Applicable to Class C only) From an employee benefit plan, 403(b)
program or plan covering a sole-proprietor (formerly Keogh/H.R. 10
plan).
To qualify for a Class A or Class T front-end sales charge reduction
or waiver, you must notify Fidelity in advance of your purchase.
To qualify for a Class B or Class C CDSC waiver, you must notify
Fidelity in advance of your redemption.
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.
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 Fidelity access to
records detailing purchases at the client level.
Except as provided below, 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 those 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 reinvestment of dividends or capital gain
distributions 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 will be redeemed first, followed by those
Class A or Class T CDSC shares that have been held for the longest
period of time.
The Class A or Class T CDSC will not apply to the redemption of
shares:
1. Held by insurance company separate accounts;
2. For plan loans or distributions or exchanges to non-Advisor fund
investment options from employee benefit plans (except shares of
SIMPLE IRA, SEP, and SARSEP plans and plans covering self-employed
individuals and their employees (formerly Keogh/H.R. 10 plans)
purchased on or after February 11, 1999) and 403(b) programs; or
3. For disability, payment of death benefits, or minimum required
distributions starting at age 70 1/2 from Traditional IRAs, Roth IRAs,
SIMPLE IRAs, SEPs, SARSEPs and plans covering a sole proprietor or
self-employed individuals and their employees (formerly Keogh/H.R. 10
plans).
To qualify for a Class A or Class T finder's fee or CDSC waiver, you
must notify Fidelity in advance of your purchase or redemption,
respectively.
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 another Fidelity Advisor fund, 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 you paid, if
any, on 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 Class A, Class T, Class B, or Class C 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 schedule, the holding
period will continue as if the Class A, Class T, Class B, or Class C
shares had not been redeemed.
CONVERSION FEATURE. After 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 bought
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.
Class A of each fund has adopted a Distribution and Service Plan
pursuant to Rule 12b-1 under the Investment Company Act of 1940. Under
the plan, Class A of each fund is authorized to pay FDC a monthly
12b-1 fee as compensation for providing services intended to result in
the sale of Class A shares and/or shareholder support services. Class
A of each fund may pay FDC a 12b-1 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 12b-1 fee at an annual rate of 0.25% of its average
net assets throughout the month. Class A's 12b-1 fee rate for each
fund may be increased only when the Trustees believe that it is in the
best interests of Class A shareholders to do so.
Class T of each fund has adopted a Distribution and Service Plan
pursuant to Rule 12b-1 under the Investment Company Act of 1940. Under
the plan, Class T of each fund is authorized to pay FDC a monthly
12b-1 fee as compensation for providing services intended to result in
the sale of Class T shares and/or shareholder support services. Class
T of Advisor Natural Resources may pay FDC a 12b-1 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 Advisor Consumer
Industries, Advisor Cyclical Industries, Advisor Financial Services,
Advisor Health Care, Advisor Technology, and Advisor Utilities Growth
may pay FDC a 12b-1 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 12b-1 fee
at an annual rate of 0.50% of its average net assets throughout the
month. Class T's 12b-1 fee rate for each fund may be increased only
when the Trustees believe that it is in the best interests of Class T
shareholders to do so.
FDC may reallow to intermediaries (such as banks, broker-dealers and
other service-providers), including its affiliates, up to the full
amount of the Class A and Class T 12b-1 fee, for providing services
intended to result in the sale of Class A or Class T shares and/or
shareholder support services.
Class B of each fund has adopted a Distribution and Service Plan
pursuant to Rule 12b-1 under the Investment Company Act of 1940. Under
the plan, Class B of each fund is authorized to pay FDC a monthly
12b-1 (distribution) fee as compensation for providing services
intended to result in the sale of Class B shares. Class B of each fund
currently pays FDC a monthly 12b-1 (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 12b-1 (service) fee at an annual rate of 0.25% of Class
B's average net assets throughout the month for providing shareholder
support services.
FDC may reallow up to the full amount of the Class B 12b-1 (service)
fee to intermediaries (such as banks, broker-dealers and other
service-providers) for providing shareholder support services.
Class C of each fund has adopted a Distribution and Service Plan
pursuant to Rule 12b-1 under the Investment Company Act of 1940. Under
the plan, Class C of each fund is authorized to pay FDC a monthly
12b-1 (distribution) fee as compensation for providing services
intended to result in the sale of Class C shares. Class C of each fund
currently pays FDC a monthly 12b-1 (distribution) fee at an annual
rate of 0.75% of its average net assets throughout the month.
In addition, pursuant to each Class C plan, Class C of each fund pays
FDC a monthly 12b-1 (service) fee at an annual rate of 0.25% of Class
C's average net assets throughout the month for providing shareholder
support services.
Normally, after the first year of investment, FDC may reallow up to
the full amount of the Class C 12b-1 (distribution) fees to
intermediaries (such as banks, broker-dealers and other
service-providers) for providing services intended to result in the
sale of Class C shares and may reallow up to the full amount of the
Class C 12b-1 (service) fee to intermediaries for providing
shareholder support services.
For purchases of Class C shares made for an employee benefit plan,
403(b) program or plan covering a sole-proprietor (formerly Keogh/H.R.
10 plan) or through reinvestment of dividends or capital gain
distributions, during the first year of investment and thereafter, FDC
may reallow up to the full amount of the Class C 12b-1 (distribution)
fee paid by such shares to intermediaries, including its affiliates,
for providing services intended to result in the sale of Class C
shares and may reallow up to the full amount of the Class C 12b-1
(service) fee paid by such shares to intermediaries, including its
affiliates, for providing shareholder support services.
Because 12b-1 fees are paid out of each class's assets on an ongoing
basis, they will increase the cost of your investment and may cost you
more than paying other types of sales charges.
In addition, each plan specifically recognizes that FMR may make
payments from its management fee revenue, past profits, or other
resources to FDC for expenses incurred in connection with providing
services intended to result in the sale of the applicable class's
shares and/or shareholder support services, including payments made to
intermediaries that provide those services. Currently, the Board of
Trustees of each fund has authorized such payments for Class A, Class
T, Class B, and Class C.
To receive sales concessions, finder's fees and payments made pursuant
to a Distribution and Service Plan, intermediaries must sign the
appropriate agreement with FDC in advance.
FMR may allocate brokerage transactions in a manner that takes into
account the sale of shares of the Fidelity Advisor funds, provided
that a fund receives brokerage services and commission rates
comparable to those of other broker-dealers.
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 shares of the funds to or to buy shares of the funds from any
person to whom it is unlawful to make such offer.
APPENDIX
FINANCIAL HIGHLIGHTS
The financial highlights tables are intended to help you understand
each class's financial history for the past 5 years or, if
shorter, the period of the class's operations. Certain information
reflects financial results for a single class share. The total
returns in the table represent the rate that an investor would have
earned (or lost) on an investment in the class (assuming
reinvestment of all dividends and distributions ). This
information has been audited by Deloitte & Touche LLP (1999 annual
information only) , independent accountants, whose report, along
with each fund's financial highlights and financial statements,
are included in each fund's annual report. Annual information prior
to 1999 was audited by PricewaterhouseCoopers LLP. A free copy of
the annual report is available upon request.
CONSUMER INDUSTRIES - CLASS A
Years ended July 31, 1999 1998 1997 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 15.08 $ 13.48 $ 10.00
period
Income from Investment
Operations
Net investment income (loss) (.03) (.06) (.05)
D
Net realized and unrealized 1.80 3.31 3.60
gain (loss)
Total from investment 1.77 3.25 3.55
operations
Less Distributions
From net realized gain (.85) (1.68) (.07)
Redemption fees added to paid .01 .03 -
in capital
Net asset value, end of period $ 16.01 $ 15.08 $ 13.48
TOTAL RETURN B, C 13.49% 27.48% 35.68%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 3,504 $ 2,220 $ 944
(000 omitted)
Ratio of expenses to average 1.55% F 1.75% F 1.75% A, F
net assets
Ratio of expenses to average 1.54% G 1.73% G 1.73% A, G
net assets after expense
reductions
Ratio of net investment (.19)% (.47)% (.50)% A
income (loss) to average net
assets
Portfolio turnover 80% 144% 203% A
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
SHARES) TO JULY 31, 1997.
F FMR AGREED TO REIMBURSE A PORTION OF THE CLASS'S EXPENSES DURING
THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS'S 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'S
EXPENSES.
CONSUMER INDUSTRIES - CLASS T
Years ended July 31, 1999 1998 1997 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 15.00 $ 13.45 $ 10.00
period
Income from Investment
Operations
Net investment income (loss) (.06) (.10) (.09)
D
Net realized and unrealized 1.79 3.28 3.60
gain (loss)
Total from investment 1.73 3.18 3.51
operations
Less Distributions
From net realized gain (.81) (1.66) (.06)
Redemption fees added to paid .01 .03 -
in capital
Net asset value, end of period $ 15.93 $ 15.00 $ 13.45
TOTAL RETURN B, C 13.20% 26.93% 35.25%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 21,714 $ 13,989 $ 7,314
(000 omitted)
Ratio of expenses to average 1.79% F 2.00% F 2.00% A, F
net assets
Ratio of expenses to average 1.77% G 1.98% G 1.97% A, G
net assets after expense
reductions
Ratio of net investment (.42)% (.71)% (.83)% A
income (loss) to average net
assets
Portfolio turnover 80% 144% 203% A
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 T
SHARES) TO JULY 31, 1997.
F FMR AGREED TO REIMBURSE A PORTION OF THE CLASS'S EXPENSES DURING
THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS'S 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'S
EXPENSES.
CONSUMER INDUSTRIES - CLASS B
Years ended July 31, 1999 1998 1997 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 14.91 $ 13.42 $ 11.46
period
Income from Investment
Operations
Net investment income (loss) (.14) (.17) (.08)
D
Net realized and unrealized 1.79 3.26 2.04
gain (loss)
Total from investment 1.65 3.09 1.96
operations
Less Distributions
From net realized gain (.81) (1.64) -
Redemption fees added to paid .01 .04 -
in capital
Net asset value, end of period $ 15.76 $ 14.91 $ 13.42
TOTAL RETURN B, C 12.71% 26.30% 17.10%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 9,832 $ 5,419 $ 596
(000 omitted)
Ratio of expenses to average 2.31% F 2.50% F 2.50% A, F
net assets
Ratio of expenses to average 2.30% G 2.48% G 2.46% A, G
net assets after expense
reductions
Ratio of net investment (.95)% (1.23)% (1.60)% A
income (loss) to average net
assets
Portfolio turnover 80% 144% 203% A
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'S EXPENSES DURING
THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS'S 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'S
EXPENSES.
CONSUMER INDUSTRIES - CLASS C
Years ended July 31, 1999 1998 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 14.95 $ 12.66
period
Income from Investment
Operations
Net investment income (loss) (.15) (.13)
D
Net realized and unrealized 1.80 2.87
gain (loss)
Total from investment 1.65 2.74
operations
Less Distributions
From net realized gain (.83) (.49)
Redemption fees added to paid .01 .04
in capital
Net asset value, end of period $ 15.78 $ 14.95
TOTAL RETURN B, C 12.72% 22.67%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 2,758 $ 1,461
(000 omitted)
Ratio of expenses to average 2.32% F 2.50% A, F
net assets
Ratio of expenses to average 2.30% G 2.48% A, G
net assets after expense
reductions
Ratio of net investment (.95)% (1.27)% A
income (loss) to average net
assets
Portfolio turnover 80% 144%
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 NOVEMBER 3, 1997 (COMMENCEMENT OF SALE OF CLASS C
SHARES) TO JULY 31, 1998.
F FMR AGREED TO REIMBURSE A PORTION OF THE CLASS'S EXPENSES DURING
THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS'S 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'S
EXPENSES.
CYCLICAL INDUSTRIES - CLASS A
Years ended July 31, 1999 1998 1997 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 13.56 $ 13.80 $ 10.00
period
Income from Investment
Operations
Net investment income (loss) .01 (.03) (.01)
D
Net realized and unrealized 1.23 .76 3.89
gain (loss)
Total from investment 1.24 .73 3.88
operations
Less Distributions
From net investment income - - (.01)
From net realized gain (.68) (.99) (.08)
Total distributions (.68) (.99) (.09)
Redemption fees added to paid .01 .02 .01
in capital
Net asset value, end of period $ 14.13 $ 13.56 $ 13.80
TOTAL RETURN B, C 10.81% 6.05% 39.11%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 896 $ 471 $ 365
(000 omitted)
Ratio of expenses to average 1.56% F 1.75% F 1.75% A, F
net assets
Ratio of expenses to average 1.54% G 1.75% 1.73% A, G
net assets after expense
reductions
Ratio of net investment .05% (.22)% (.09)% A
income (loss) to average net
assets
Portfolio turnover 115% 100% 155% A
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
SHARES) TO JULY 31, 1997.
F FMR AGREED TO REIMBURSE A PORTION OF THE CLASS'S EXPENSES DURING
THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS'S 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'S
EXPENSES.
CYCLICAL INDUSTRIES - CLASS T
Years ended July 31, 1999 1998 1997 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 13.51 $ 13.77 $ 10.00
period
Income from Investment
Operations
Net investment income (loss) (.03) (.06) (.04)
D
Net realized and unrealized 1.24 .77 3.89
gain (loss)
Total from investment 1.21 .71 3.85
operations
Less Distributions
From net investment income - - (.01)
From net realized gain (.66) (.99) (.08)
Total distributions (.66) (.99) (.09)
Redemption fees added to paid .01 .02 .01
in capital
Net asset value, end of period $ 14.07 $ 13.51 $ 13.77
TOTAL RETURN B, C 10.57% 5.91% 38.81%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 3,471 $ 2,973 $ 1,920
(000 omitted)
Ratio of expenses to average 1.83% F 2.00% F 2.00% A, F
net assets
Ratio of expenses to average 1.81% G 2.00% 1.97% A, G
net assets after expense
reductions
Ratio of net investment (.22)% (.47)% (.37)% A
income (loss) to average net
assets
Portfolio turnover 115% 100% 155% A
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 T
SHARES) TO JULY 31, 1997.
F FMR AGREED TO REIMBURSE A PORTION OF THE CLASS'S EXPENSES DURING
THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS'S 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'S
EXPENSES.
CYCLICAL INDUSTRIES - CLASS B
Years ended July 31, 1999 1998 1997 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 13.40 $ 13.75 $ 11.56
period
Income from Investment
Operations
Net investment income (loss) (.09) (.14) (.06)
D
Net realized and unrealized 1.22 .76 2.25
gain (loss)
Total from investment 1.13 .62 2.19
operations
Less Distributions
From net realized gain (.65) (.99) -
Redemption fees added to paid .01 .02 -
in capital
Net asset value, end of period $ 13.89 $ 13.40 $ 13.75
TOTAL RETURN B, C 10.01% 5.23% 18.94%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 2,043 $ 985 $ 252
(000 omitted)
Ratio of expenses to average 2.31% F 2.50% F 2.50% A, F
net assets
Ratio of expenses to average 2.29% G 2.50% 2.45% A, G
net assets after expense
reductions
Ratio of net investment (.70)% (1.03)% (1.11)% A
income (loss) to average net
assets
Portfolio turnover 115% 100% 155% A
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'S EXPENSES DURING
THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS'S 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'S
EXPENSES.
CYCLICAL INDUSTRIES - CLASS C
Years ended July 31, 1999 1998 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 13.45 $ 12.54
period
Income from Investment
Operations
Net investment income (loss) (.09) (.11)
D
Net realized and unrealized 1.20 1.39
gain (loss)
Total from investment 1.11 1.28
operations
Less Distributions
From net realized gain (.67) (.38)
Redemption fees added to paid .02 .01
in capital
Net asset value, end of period $ 13.91 $ 13.45
TOTAL RETURN B, C 9.94% 10.62%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 1,451 $ 165
(000 omitted)
Ratio of expenses to average 2.28% F 2.50% A, F
net assets
Ratio of expenses to average 2.27% G 2.50% A
net assets after expense
reductions
Ratio of net investment (.67)% (1.06)% A
income (loss) to average net
assets
Portfolio turnover 115% 100%
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 NOVEMBER 3, 1997 (COMMENCEMENT OF SALE OF CLASS C
SHARES) TO JULY 31, 1998.
F FMR AGREED TO REIMBURSE A PORTION OF THE CLASS'S EXPENSES DURING
THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS'S 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'S
EXPENSES.
FINANCIAL SERVICES - CLASS A
Years ended July 31, 1999 1998 1997 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 18.74 $ 15.11 $ 10.00
period
Income from Investment
Operations
Net investment income D .12 .11 .06
Net realized and unrealized (.31) 3.80 5.06
gain (loss)
Total from investment (.19) 3.91 5.12
operations
Less Distributions
From net investment income (.06)H (.06) (.01)
From net realized gain (1.01)H (.23) (.01)
Total distributions (1.07) (.29) (.02)
Redemption fees added to paid .01 .01 .01
in capital
Net asset value, end of period $ 17.49 $ 18.74 $ 15.11
TOTAL RETURN B, C 0.69% 26.32% 51.35%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 27,440 $ 21,907 $ 6,275
(000 omitted)
Ratio of expenses to average 1.24% 1.32% 1.75% A, F
net assets
Ratio of expenses to average 1.23% G 1.30% G 1.73% A, G
net assets after expense
reductions
Ratio of net investment .73% .63% .55% A
income to average net assets
Portfolio turnover 38% 54% 26% A
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
SHARES) TO JULY 31, 1997.
F FMR AGREED TO REIMBURSE A PORTION OF THE CLASS'S EXPENSES DURING
THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS'S 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'S
EXPENSES.
H THE AMOUNTS SHOWN REFLECT CERTAIN RECLASSIFICATIONS RELATED TO
BOOK-TO-TAX DIFFERENCES.
FINANCIAL SERVICES - CLASS T
Years ended July 31, 1999 1998 1997 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 18.66 $ 15.07 $ 10.00
period
Income from Investment
Operations
Net investment income D .09 .07 .04
Net realized and unrealized (.30) 3.78 5.04
gain (loss)
Total from investment (.21) 3.85 5.08
operations
Less Distributions
From net investment income (.03)G (.04) (.01)
From net realized gain (1.01)G (.23) (.01)
Total distributions (1.04) (.27) (.02)
Redemption fees added to paid .01 .01 .01
in capital
Net asset value, end of period $ 17.42 $ 18.66 $ 15.07
TOTAL RETURN B, C 0.53% 25.96% 50.95%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 123,361 $ 118,608 $ 52,003
(000 omitted)
Ratio of expenses to average 1.47% 1.52% 1.94% A
net assets
Ratio of expenses to average 1.46% F 1.50% F 1.91% A, F
net assets after expense
reductions
Ratio of net investment .50% .44% .37% A
income to average net assets
Portfolio turnover 38% 54% 26% A
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 T
SHARES) TO JULY 31, 1997.
F FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS'S
EXPENSES.
G THE AMOUNTS SHOWN REFLECT CERTAIN RECLASSIFICATIONS RELATED TO
BOOK-TO-TAX DIFFERENCES.
FINANCIAL SERVICES - CLASS B
Years ended July 31, 1999 1998 1997 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 18.52 $ 15.04 $ 12.56
period
Income from Investment
Operations
Net investment income (loss) - (.02) (.02)
D
Net realized and unrealized (.29) 3.76 2.50
gain (loss)
Total from investment (.29) 3.74 2.48
operations
Less Distributions
From net investment income (.02)H (.04) -
From net realized gain (1.01)H (.23) -
Total distributions (1.03) (.27) -
Redemption fees added to paid .01 .01 -
in capital
Net asset value, end of period $ 17.21 $ 18.52 $ 15.04
TOTAL RETURN B, C 0.05% 25.29% 19.75%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 94,072 $ 65,926 $ 7,737
(000 omitted)
Ratio of expenses to average 1.99% 2.06% 2.50% A, F
net assets
Ratio of expenses to average 1.98% G 2.04% G 2.49% A, G
net assets after expense
reductions
Ratio of net investment (.02)% (.14)% (.37)% A
income (loss) to average net
assets
Portfolio turnover 38% 54% 26% A
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'S EXPENSES DURING
THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS'S 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'S
EXPENSES.
H THE AMOUNTS SHOWN REFLECT CERTAIN RECLASSIFICATIONS RELATED TO
BOOK-TO-TAX DIFFERENCES.
FINANCIAL SERVICES - CLASS C
Years ended July 31, 1999 1998 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 18.56 $ 15.24
period
Income from Investment
Operations
Net investment income (loss) - (.03)
D
Net realized and unrealized (.29) 3.57
gain (loss)
Total from investment (.29) 3.54
operations
Less Distributions
From net investment income (.03)G (.02)
From net realized gain (1.01)G (.21)
Total distributions (1.04) (.23)
Redemption fees added to paid .01 .01
in capital
Net asset value, end of period $ 17.24 $ 18.56
TOTAL RETURN B, C 0.07% 23.56%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 36,552 $ 19,983
(000 omitted)
Ratio of expenses to average 1.95% 2.09% A
net assets
Ratio of expenses to average 1.94% F 2.07% A, F
net assets after expense
reductions
Ratio of net investment .02% (.22)% A
income (loss) to average net
assets
Portfolio turnover 38% 54%
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 NOVEMBER 3, 1997 (COMMENCEMENT OF SALE OF CLASS C
SHARES) TO JULY 31, 1998.
F FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS'S
EXPENSES.
G THE AMOUNTS SHOWN REFLECT CERTAIN RECLASSIFICATIONS RELATED TO
BOOK-TO-TAX DIFFERENCES.
HEALTH CARE - CLASS A
Years ended July 31, 1999 1998 1997 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 16.70 $ 14.10 $ 10.00
period
Income from Investment
Operations
Net investment income (loss) .00 (.03) (.02)
D
Net realized and unrealized 2.20 3.50 4.12
gain (loss)
Total from investment 2.20 3.47 4.10
operations
Less Distributions
From net realized gain (.39) (.88) -
Redemption fees added to paid .01 .01 -
in capital
Net asset value, end of period $ 18.52 $ 16.70 $ 14.10
TOTAL RETURN B, C 13.80% 26.47% 41.00%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 66,142 $ 20,902 $ 5,488
(000 omitted)
Ratio of expenses to average 1.23% 1.38% 1.75% A, F
net assets
Ratio of expenses to average 1.21% G 1.36% G 1.74% A, G
net assets after expense
reductions
Ratio of net investment .01% (.18)% (.18)% A
income (loss) to average net
assets
Portfolio turnover 98% 85% 67% A
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
SHARES) TO JULY 31, 1997.
F FMR AGREED TO REIMBURSE A PORTION OF THE CLASS'S EXPENSES DURING
THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS'S 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'S
EXPENSES.
HEALTH CARE - CLASS T
Years ended July 31, 1999 1998 1997 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 16.61 $ 14.05 $ 10.00
period
Income from Investment
Operations
Net investment income (loss) (.04) (.05) (.04)
D
Net realized and unrealized 2.19 3.47 4.09
gain (loss)
Total from investment 2.15 3.42 4.05
operations
Less Distributions
From net realized gain (.37) (.87) -
Redemption fees added to paid .01 .01 -
in capital
Net asset value, end of period $ 18.40 $ 16.61 $ 14.05
TOTAL RETURN B, C 13.54% 26.17% 40.50%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 248,442 $ 124,652 $ 50,868
(000 omitted)
Ratio of expenses to average 1.46% 1.54% 1.97% A
net assets
Ratio of expenses to average 1.43% F 1.52% F 1.96% A, F
net assets after expense
reductions
Ratio of net investment (.21)% (.31)% (.39)% A
income (loss) to average net
assets
Portfolio turnover 98% 85% 67% A
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 T
SHARES) TO JULY 31, 1997.
F FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS'S
EXPENSES.
HEALTH CARE - CLASS B
Years ended July 31, 1999 1998 1997 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 16.47 $ 14.01 $ 11.88
period
Income from Investment
Operations
Net investment income (loss) (.13) (.14) (.05)
D
Net realized and unrealized 2.17 3.45 2.18
gain (loss)
Total from investment 2.04 3.31 2.13
operations
Less Distributions
From net realized gain (.36) (.86) -
Redemption fees added to paid .01 .01 -
in capital
Net asset value, end of period $ 18.16 $ 16.47 $ 14.01
TOTAL RETURN B, C 12.96% 25.40% 17.93%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 225,441 $ 57,074 $ 6,159
(000 omitted)
Ratio of expenses to average 1.98% 2.13% 2.50% A, F
net assets
Ratio of expenses to average 1.96% G 2.12% G 2.49% A, G
net assets after expense
reductions
Ratio of net investment (.73)% (.95)% (.99)% A
income (loss) to average net
assets
Portfolio turnover 98% 85% 67% A
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'S EXPENSES DURING
THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS'S 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'S
EXPENSES.
HEALTH CARE - CLASS C
Years ended July 31, 1999 1998 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 16.49 $ 13.85
period
Income from Investment
Operations
Net investment income (loss) (.12) (.12)
D
Net realized and unrealized 2.17 3.39
gain (loss)
Total from investment 2.05 3.27
operations
Less Distributions
From net realized gain (.38) (.63)
Redemption fees added to paid .01 -
in capital
Net asset value, end of period $ 18.17 $ 16.49
TOTAL RETURN B, C 13.04% 24.84%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 109,372 $ 19,154
(000 omitted)
Ratio of expenses to average 1.95% 2.18% A
net assets
Ratio of expenses to average 1.92% F 2.17% A, F
net assets after expense
reductions
Ratio of net investment (.70)% (1.06)% A
income (loss) to average net
assets
Portfolio turnover 98% 85%
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 NOVEMBER 3, 1997 (COMMENCEMENT OF SALE OF CLASS C
SHARES) TO JULY 31, 1998.
F FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS'S
EXPENSES.
NATURAL RESOURCES - CLASS A
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Years ended July 31, 1999 1998 1997 E 1996 F
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 18.94 $ 26.16 $ 25.11 $ 23.65
period
Income from Investment
Operations
Net investment income (loss) .07 .06 (.05) (0.00)
D
Net realized and unrealized 3.71 (3.33) 2.81 1.46
gain (loss)
Total from investment 3.78 (3.27) 2.76 1.46
operations
Less Distributions
From net investment income (.04) I - (.10) -
In excess of net investment - - (.04) -
income
From net realized gain (.71) I (3.96) (1.57) -
Total distributions (.75) (3.96) (1.71) -
Redemption fees added to paid .01 .01 - -
in capital
Net asset value, end of period $ 21.98 $ 18.94 $ 26.16 $ 25.11
TOTAL RETURN B, C 21.48% (14.61)% 11.45% 6.17%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 7,801 $ 6,474 $ 6,372 $ 1,609
(000 omitted)
Ratio of expenses to average 1.28% 1.34% 1.71% A, G 1.66% A, G
net assets
Ratio of expenses to average 1.23% H 1.30% H 1.68% A, H 1.58% A, H
net assets after expense
reductions
Ratio of net investment .38% .28% (.28)% A (.01)% A
income (loss) to average net
assets
Portfolio turnover 99% 97% 116% A 137%
</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 NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED
ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD.
E NINE MONTHS ENDED JULY 31, 1997.
F FOR THE PERIOD SEPTEMBER 3, 1996 (COMMENCEMENT OF SALE OF CLASS A
SHARES) TO OCTOBER 31, 1996.
G FMR AGREED TO REIMBURSE A PORTION OF THE CLASS'S EXPENSES DURING
THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS'S 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'S
EXPENSES.
I THE AMOUNTS SHOWN REFLECT CERTAIN RECLASSIFICATIONS RELATED TO
BOOK-TO-TAX DIFFERENCES.
NATURAL RESOURCES - CLASS T
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Years ended July 31, 1999 1998 1997 E 1996 F 1995 F 1994 F
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 19.11 $ 26.34 $ 25.12 $ 19.25 $ 17.56 $ 17.59
period
Income from Investment
Operations
Net investment income (loss) .04 .02 (.02) .00 (.05) (.11)
D
Net realized and unrealized 3.76 (3.34) 2.83 6.56 2.00 .76
gain (loss)
Total from investment 3.80 (3.32) 2.81 6.56 1.95 .65
operations
Less Distributions
From net investment income (.01) - (.01) - - -
In excess of net investment - - (.01) - - -
income
From net realized gain (.70) (3.92) (1.57) (.69) (.26) (.68)
Total distributions (.71) (3.92) (1.59) (.69) (.26) (.68)
Redemption fees added to paid .01 .01 - - - -
in capital
Net asset value, end of period $ 22.21 $ 19.11 $ 26.34 $ 25.12 $ 19.25 $ 17.56
TOTAL RETURN B, C 21.31% (14.69)% 11.62% 35.01% 11.40% 3.97%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 283,419 $ 342,347 $ 618,083 $ 602,915 $ 272,979 $ 199,361
(000 omitted)
Ratio of expenses to average 1.45% 1.43% 1.47% A 1.59% 1.86% G 2.10%
net assets
Ratio of expenses to average 1.40% H 1.39% H 1.44% A, H 1.56% H 1.84% H 2.07% H
net assets after expense
reductions
Ratio of net investment .20% .10% (.12)% A .00% (.30)% (.67)%
income (loss) to average net
assets
Portfolio turnover 99% 97% 116% A 137% 161% 125%
</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 NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED
ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD.
E NINE MONTHS ENDED JULY 31, 1997.
F YEARS ENDED OCTOBER 31.
G FMR AGREED TO REIMBURSE A PORTION OF THE CLASS'S EXPENSES DURING
THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS'S 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'S
EXPENSES.
NATURAL RESOURCES - CLASS B
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended July 31, 1999 1998 1997 E 1996 F 1995 G
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 18.81 $ 25.99 $ 24.88 $ 19.23 $ 18.87
period
Income from Investment
Operations
Net investment income (loss) (.06) (.09) (.12) (.15) (.03)
D
Net realized and unrealized 3.68 (3.29) 2.80 6.49 .39
gain (loss)
Total from investment 3.62 (3.38) 2.68 6.34 .36
operations
Less Distributions
From net realized gain (.66) (3.81) (1.57) (.69) -
Redemption fees added to paid .01 .01 - - -
in capital
Net asset value, end of period $ 21.78 $ 18.81 $ 25.99 $ 24.88 $ 19.23
TOTAL RETURN B, C 20.57% (15.12)% 11.19% 33.87% 1.91%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 47,792 $ 44,351 $ 59,044 $ 36,106 $ 2,508
(000 omitted)
Ratio of expenses to average 1.99% 1.98% 2.04% A 2.28% 2.23% A, H
net assets
Ratio of expenses to average 1.95% I 1.94% I 2.02% A, I 2.24% I 2.21% A, I
net assets after expense
reductions
Ratio of net investment (.34)% (.41)% (.67)% A (.68)% (.67)% A
income (loss) to average net
assets
Portfolio turnover 99% 97% 116% A 137% 161%
</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 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 NINE MONTHS ENDED JULY 31, 1997.
F YEAR ENDED OCTOBER 31.
G FOR THE PERIOD JULY 3, 1995 (COMMENCEMENT OF SALE OF CLASS B
SHARES) TO OCTOBER 31, 1995.
H FMR AGREED TO REIMBURSE A PORTION OF THE CLASS'S EXPENSES DURING
THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS'S EXPENSE RATIO
WOULD HAVE BEEN HIGHER.
I FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS'S
EXPENSES.
NATURAL RESOURCES - CLASS C
Years ended July 31, 1999 1998 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 18.96 $ 24.39
period
Income from Investment
Operations
Net investment income (loss) (.05) (.07)
D
Net realized and unrealized 3.71 (4.15)
gain (loss)
Total from investment 3.66 (4.22)
operations
Less Distributions
From net investment income (.01) -
From net realized gain (.70) (1.22)
Total distributions (.71) (1.22)
Redemption fees added to paid .01 .01
in capital
Net asset value, end of period $ 21.92 $ 18.96
TOTAL RETURN B, C 20.72% (17.72)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 8,761 $ 2,972
(000 omitted)
Ratio of expenses to average 1.94% 2.50% A, F
net assets
Ratio of expenses to average 1.89% G 2.44% A, G
net assets after expense
reductions
Ratio of net investment (.28)% (.48)% A
income (loss) to average net
assets
Portfolio turnover 99% 97%
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 NOVEMBER 3, 1997 (COMMENCEMENT OF SALE OF CLASS C
SHARES) TO JULY 31, 1998.
F FMR AGREED TO REIMBURSE A PORTION OF THE CLASS'S EXPENSES DURING
THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS'S 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'S
EXPENSES.
TECHNOLOGY - CLASS A
Years ended July 31, 1999 1998 1997 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 14.88 $ 15.96 $ 10.00
period
Income from Investment
Operations
Net investment income (loss) (.09) (.08) (.10)
D
Net realized and unrealized 10.15 .58 6.13
gain (loss)
Total from investment 10.06 .50 6.03
operations
Less Distributions
From net realized gain - (1.14) (.08)
In excess of net realized - (.45) -
gain
Total distributions - (1.59) (.08)
Redemption fees added to paid .01 .01 .01
in capital
Net asset value, end of period $ 24.95 $ 14.88 $ 15.96
TOTAL RETURN B, C 67.67% 4.20% 60.62%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 94,621 $ 15,414 $ 7,313
(000 omitted)
Ratio of expenses to average 1.25% 1.39% 1.75% A, F
net assets
Ratio of expenses to average 1.24% G 1.35% G 1.70% A, G
net assets after expense
reductions
Ratio of net investment (.44)% (.59)% (.79)% A
income (loss) to average net
assets
Portfolio turnover 170% 348% 517% A
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
SHARES) TO JULY 31, 1997.
F FMR AGREED TO REIMBURSE A PORTION OF THE CLASS'S EXPENSES DURING
THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS'S 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'S
EXPENSES.
TECHNOLOGY - CLASS T
Years ended July 31, 1999 1998 1997 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 14.80 $ 15.91 $ 10.00
period
Income from Investment
Operations
Net investment income (loss) (.14) (.11) (.11)
D
Net realized and unrealized 10.09 .56 6.09
gain (loss)
Total from investment 9.95 .45 5.98
operations
Less Distributions
From net realized gain - (1.12) (.08)
In excess of net realized - (.45) -
gain
Total distributions - (1.57) (.08)
Redemption fees added to paid .01 .01 .01
in capital
Net asset value, end of period $ 24.76 $ 14.80 $ 15.91
TOTAL RETURN B, C 67.30% 3.85% 60.12%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 349,533 $ 90,499 $ 57,624
(000 omitted)
Ratio of expenses to average 1.47% 1.60% 1.92% A
net assets
Ratio of expenses to average 1.46% F 1.56% F 1.87% A, F
net assets after expense
reductions
Ratio of net investment (.65)% (.80)% (.93)% A
income (loss) to average net
assets
Portfolio turnover 170% 348% 517% A
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 T
SHARES) TO JULY 31, 1997.
F FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS'S
EXPENSES.
TECHNOLOGY - CLASS B
Years ended July 31, 1999 1998 1997 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 14.68 $ 15.88 $ 12.88
period
Income from Investment
Operations
Net investment income (loss) (.26) (.20) (.08)
D
Net realized and unrealized 10.01 .57 3.08
gain (loss)
Total from investment 9.75 .37 3.00
operations
Less Distributions
From net realized gain - (1.13) -
In excess of net realized - (.45) -
gain
Total distributions - (1.58) -
Redemption fees added to paid .01 .01 -
in capital
Net asset value, end of period $ 24.44 $ 14.68 $ 15.88
TOTAL RETURN B, C 66.49% 3.27% 23.29%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 298,768 $ 31,041 $ 5,105
(000 omitted)
Ratio of expenses to average 2.01% 2.21% 2.50% A, F
net assets
Ratio of expenses to average 2.00% G 2.18% G 2.45% A, G
net assets after expense
reductions
Ratio of net investment (1.19)% (1.40)% (1.41)% A
income (loss) to average net
assets
Portfolio turnover 170% 348% 517% A
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'S EXPENSES DURING
THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS'S 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'S
EXPENSES.
TECHNOLOGY - CLASS C
Years ended July 31, 1999 1998 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 14.70 $ 14.28
period
Income from Investment
Operations
Net investment income (loss) (.25) (.17)
D
Net realized and unrealized 10.03 1.27
gain (loss)
Total from investment 9.78 1.10
operations
Less Distributions
From net realized gain - (.49)
In excess of net realized - (.20)
gain
Total distributions - (.69)
Redemption fees added to paid .01 .01
in capital
Net asset value, end of period $ 24.49 $ 14.70
TOTAL RETURN B, C 66.60% 8.96%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 88,120 $ 6,754
(000 omitted)
Ratio of expenses to average 1.97% 2.43% A
net assets
Ratio of expenses to average 1.96% F 2.41% A, F
net assets after expense
reductions
Ratio of net investment (1.16)% (1.64)% A
income (loss) to average net
assets
Portfolio turnover 170% 348%
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 NOVEMBER 3, 1997 (COMMENCEMENT OF SALE OF CLASS C
SHARES) TO JULY 31, 1998.
F FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS'S
EXPENSES.
UTILITIES GROWTH - CLASS A
Years ended July 31, 1999 1998 1997 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 16.00 $ 13.07 $ 10.00
period
Income from Investment
Operations
Net investment income (loss) .05 (.02) .12
D
Net realized and unrealized 5.45 4.19 3.09
gain (loss)
Total from investment 5.50 4.17 3.21
operations
Less Distributions
From net investment income - (.04) (.03)
From net realized gain (1.20) (1.21) (.11)
Total distributions (1.20) (1.25) (.14)
Redemption fees added to paid .01 .01 -
in capital
Net asset value, end of period $ 20.31 $ 16.00 $ 13.07
TOTAL RETURN B, C 38.83% 33.99% 32.36%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 14,400 $ 3,186 $ 531
(000 omitted)
Ratio of expenses to average 1.34% 1.75% F 1.75% A, F
net assets
Ratio of expenses to average 1.32% G 1.72% G 1.75% A
net assets after expense
reductions
Ratio of net investment .30% (.11)% 1.09% A
income (loss) to average net
assets
Portfolio turnover 149% 151% 13% A
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
SHARES) TO JULY 31, 1997.
F FMR AGREED TO REIMBURSE A PORTION OF THE CLASS'S EXPENSES DURING
THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS'S 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'S
EXPENSES.
UTILITIES GROWTH - CLASS T
Years ended July 31, 1999 1998 1997 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 15.95 $ 13.03 $ 10.00
period
Income from Investment
Operations
Net investment income (loss) .01 (.04) .08
D
Net realized and unrealized 5.43 4.17 3.09
gain (loss)
Total from investment 5.44 4.13 3.17
operations
Less Distributions
From net investment income - (.03) (.03)
From net realized gain (1.17) (1.19) (.11)
Total distributions (1.17) (1.22) (.14)
Redemption fees added to paid .01 .01 -
in capital
Net asset value, end of period $ 20.23 $ 15.95 $ 13.03
TOTAL RETURN B, C 38.45% 33.72% 31.96%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 65,085 $ 19,918 $ 7,085
(000 omitted)
Ratio of expenses to average 1.58% 1.94% 2.00% A, F
net assets
Ratio of expenses to average 1.55% G 1.90% G 2.00% A
net assets after expense
reductions
Ratio of net investment .07% (.23)% .79% A
income (loss) to average net
assets
Portfolio turnover 149% 151% 13% A
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 T
SHARES) TO JULY 31, 1997.
F FMR AGREED TO REIMBURSE A PORTION OF THE CLASS'S EXPENSES DURING
THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS'S 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'S
EXPENSES.
UTILITIES GROWTH - CLASS B
Years ended July 31, 1999 1998 1997 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 15.83 $ 13.01 $ 11.76
period
Income from Investment
Operations
Net investment income (loss) (.08) (.13) .02
D
Net realized and unrealized 5.39 4.16 1.23
gain (loss)
Total from investment 5.31 4.03 1.25
operations
Less Distributions
From net investment income - (.03) -
From net realized gain (1.13) (1.19) -
Total distributions (1.13) (1.22) -
Redemption fees added to paid .01 .01 -
in capital
Net asset value, end of period $ 20.02 $ 15.83 $ 13.01
TOTAL RETURN B, C 37.76% 32.97% 10.63%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 65,645 $ 12,919 $ 2,039
(000 omitted)
Ratio of expenses to average 2.08% 2.50% F 2.50% A, F
net assets
Ratio of expenses to average 2.05% G 2.47% G 2.50% A
net assets after expense
reductions
Ratio of net investment (.43)% (.85)% .32% A
income (loss) to average net
assets
Portfolio turnover 149% 151% 13% A
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'S EXPENSES DURING
THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS'S 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'S
EXPENSES.
UTILITIES GROWTH - CLASS C
Years ended July 31, 1999 1998 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 15.85 $ 13.90
period
Income from Investment
Operations
Net investment income (loss) (.08) (.10)
D
Net realized and unrealized 5.38 3.16
gain (loss)
Total from investment 5.30 3.06
operations
Less Distributions
From net investment income - (.02)
From net realized gain (1.15) (1.10)
Total distributions (1.15) (1.12)
Redemption fees added to paid .01 .01
in capital
Net asset value, end of period $ 20.01 $ 15.85
TOTAL RETURN B, C 37.72% 23.60%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 23,524 $ 3,489
(000 omitted)
Ratio of expenses to average 2.07% 2.50% A, F
net assets
Ratio of expenses to average 2.04% G 2.48% A, G
net assets after expense
reductions
Ratio of net investment (.43)% (.91)% A
income (loss) to average net
assets
Portfolio turnover 149% 151% A
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 NOVEMBER 3, 1997 (COMMENCEMENT OF SALE OF CLASS C
SHARES) TO JULY 31, 1998.
F FMR AGREED TO REIMBURSE A PORTION OF THE CLASS'S EXPENSES DURING
THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS'S 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'S
EXPENSES.
You can obtain additional information about the funds. The funds' SAI
includes more detailed information about each fund and its
investments. The SAI is incorporated herein by reference (legally
forms a part of the prospectus). Each fund's annual and semi-annual
reports include a discussion of the fund's holdings and recent market
conditions and the fund's investment strategies that affected
performance.
For a free copy of any of these documents or to request other
information or ask questions about a fund, call Fidelity at
1-888-622-3175.
The SAI, the funds' annual and semi-annual reports and other related
materials are available on the SEC's Internet Web site
(http://www.sec.gov). You can obtain copies of this information upon
paying a duplicating fee, by writing the Public Reference Section of
the SEC, Washington, D.C. 20549-6009. You can also review and copy
information about the funds, including the funds' SAI, at the SEC's
Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for
information on the operation of the SEC's Public Reference Room.
INVESTMENT COMPANY ACT OF 1940, FILE NUMBER, 811-3010
Fidelity Investments & (Pyramid) Design, Fidelity, Fidelity
Investments, and Directed Dividends 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.
1.704309.102 AFOC-pro-0999
Like securities of all mutual funds, these securities
have not been approved or disapproved by the
Securities and Exchange Commission, and the
Securities and Exchange Commission has not
determined if this prospectus is accurate or
complete. Any representation to the contrary is a
criminal offense.
FIDELITY ADVISOR
FOCUS FUNDSSM
INSTITUTIONAL CLASS
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 29, 1999
(FIDELITY_LOGO_GRAPHIC)(registered trademark)
82 DEVONSHIRE STREET, BOSTON, MA 02109
CONTENTS
FUND SUMMARY 2 INVESTMENT SUMMARY
5 PERFORMANCE
11 FEE TABLE
FUND BASICS 15 INVESTMENT DETAILS
18 VALUING SHARES
SHAREHOLDER INFORMATION 18 BUYING AND SELLING SHARES
25 EXCHANGING SHARES
26 ACCOUNT FEATURES AND POLICIES
27 DIVIDENDS AND CAPITAL GAIN
DISTRIBUTIONS
28 TAX CONSEQUENCES
FUND SERVICES 28 FUND MANAGEMENT
29 FUND DISTRIBUTION
APPENDIX 29 FINANCIAL HIGHLIGHTS
FUND SUMMARY
INVESTMENT SUMMARY
INVESTMENT OBJECTIVE
ADVISOR CONSUMER INDUSTRIES FUND seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
Fidelity Management & Research Company (FMR)'s principal investment
strategies include:
(small solid bullet) Normally investing primarily in common stocks.
(small solid bullet) Investing primarily in companies engaged in the
manufacture and distribution of goods to consumers both domestically
and internationally.
(small solid bullet) Normally investing at least 80% of assets in
securities of companies principally engaged in the business activities
of the consumer industries sector.
(small solid bullet) Investing in domestic and foreign issuers.
(small solid bullet) Using fundamental analysis of each issuer's
financial condition and industry position and market and economic
conditions to select investments.
PRINCIPAL INVESTMENT RISKS
The fund is subject to the following principal investment risks:
(small solid bullet) STOCK MARKET VOLATILITY. Stock markets are
volatile and can decline significantly in response to adverse issuer,
political, regulatory, market or economic developments. Different
parts of the market can react differently to these developments.
(small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more
volatile than the U.S. market due to increased risks of adverse
issuer, political, regulatory, market or economic developments and can
perform differently than the U.S. market.
(small solid bullet) CONSUMER INDUSTRY CONCENTRATION. The consumer
industries can be significantly affected by the performance of the
overall economy, interest rates, competition, consumer confidence and
spending, and changes in demographics and consumer tastes.
(small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an
individual security or particular type of security can be more
volatile than the market as a whole and can perform differently than
the value of the market as a whole. The value of securities of smaller
issuers can be more volatile than that of larger issuers.
In addition, the fund is considered non-diversified and can invest a
greater portion of assets in securities of individual issuers than a
diversified fund. As a result, changes in the market value of a single
issuer could cause greater fluctuations in share price than
would occur in a more diversified fund.
An investment in the fund is not a deposit of a bank and is not
insured or guaranteed by the Federal Deposit Insurance Corporation or
any other government agency.
When you sell your shares of the fund, they could be worth more or
less than what you paid for them.
INVESTMENT OBJECTIVE
ADVISOR CYCLICAL INDUSTRIES FUND seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Normally investing primarily in common stocks.
(small solid bullet) Investing primarily in companies engaged in the
research, development, manufacture, distribution, supply or sale of
materials, equipment, products or services related to cyclical
industries.
(small solid bullet) Normally investing at least 80% of assets in
securities of companies principally engaged in the business activities
of the cyclical industries sector.
(small solid bullet) Investing in domestic and foreign issuers.
(small solid bullet) Using fundamental analysis of each issuer's
financial condition and industry position and market and economic
conditions to select investments.
PRINCIPAL INVESTMENT RISKS
The fund is subject to the following principal investment risks:
(small solid bullet) STOCK MARKET VOLATILITY. Stock markets are
volatile and can decline significantly in response to adverse issuer,
political, regulatory, market or economic developments. Different
parts of the market can react differently to these developments.
(small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more
volatile than the U.S. market due to increased risks of adverse
issuer, political, regulatory, market or economic developments and can
perform differently than the U.S. market.
(small solid bullet) CYCLICAL INDUSTRY CONCENTRATION. Cyclical
industries can be significantly affected by general economic trends,
changes in consumer sentiment and spending, commodity prices,
legislation, government regulation and spending, import controls, and
worldwide competition, and can be subject to liability for
environmental damage, depletion of resources, and mandated
expenditures for safety and pollution control.
(small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an
individual security or particular type of security can be more
volatile than the market as a whole and can perform differently than
the value of the market as a whole. The value of securities of smaller
issuers can be more volatile than that of larger issuers.
In addition, the fund is considered non-diversified and can invest a
greater portion of assets in securities of individual issuers than a
diversified fund. As a result, changes in the market value of a single
issuer could cause greater fluctuations in share price than
would occur in a more diversified fund.
An investment in the fund is not a deposit of a bank and is not
insured or guaranteed by the Federal Deposit Insurance Corporation or
any other government agency.
When you sell your shares of the fund, they could be worth more or
less than what you paid for them.
INVESTMENT OBJECTIVE
ADVISOR FINANCIAL SERVICES FUND seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Normally investing primarily in common stocks.
(small solid bullet) Investing primarily in companies providing
financial services to consumers and industry.
(small solid bullet) Normally investing at least 80% of assets in
securities of companies principally engaged in the business activities
of the financial services sector.
(small solid bullet) Investing in domestic and foreign issuers.
(small solid bullet) Using fundamental analysis of each issuer's
financial condition and industry position and market and economic
conditions to select investments.
PRINCIPAL INVESTMENT RISKS
The fund is subject to the following principal investment risks:
(small solid bullet) STOCK MARKET VOLATILITY. Stock markets are
volatile and can decline significantly in response to adverse issuer,
political, regulatory, market or economic developments. Different
parts of the market can react differently to these developments.
(small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more
volatile than the U.S. market due to increased risks of adverse
issuer, political, regulatory, market or economic developments and can
perform differently than the U.S. market.
(small solid bullet) FINANCIAL SERVICES INDUSTRY CONCENTRATION. The
financial services industries are subject to extensive government
regulation and relatively rapid change due to increasingly blurred
distinctions between service segments, and can be significantly
affected by availability and cost of capital funds, changes in
interest rates, and price competition.
(small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an
individual security or particular type of security can be more
volatile than the market as a whole and can perform differently than
the value of the market as a whole. The value of securities of smaller
issuers can be more volatile than that of larger issuers.
An investment in the fund is not a deposit of a bank and is not
insured or guaranteed by the Federal Deposit Insurance Corporation or
any other government agency.
When you sell your shares of the fund, they could be worth more or
less than what you paid for them.
INVESTMENT OBJECTIVE
ADVISOR HEALTH CARE FUND seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Normally investing primarily in common stocks.
(small solid bullet) Investing primarily in companies engaged in the
design, manufacture, or sale of products or services used for or in
connection with health care or medicine.
(small solid bullet) Normally investing at least 80% of assets in
securities of companies principally engaged in the business activities
of the health care sector.
(small solid bullet) Investing in domestic and foreign issuers.
(small solid bullet) Using fundamental analysis of each issuer's
financial condition and industry position and market and economic
conditions to select investments.
PRINCIPAL INVESTMENT RISKS
The fund is subject to the following principal investment risks:
(small solid bullet) STOCK MARKET VOLATILITY. Stock markets are
volatile and can decline significantly in response to adverse issuer,
political, regulatory, market or economic developments. Different
parts of the market can react differently to these developments.
(small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more
volatile than the U.S. market due to increased risks of adverse
issuer, political, regulatory, market or economic developments and can
perform differently than the U.S. market.
(small solid bullet) HEALTH CARE INDUSTRY CONCENTRATION. The health
care industries are subject to government regulation and government
approval of products and services, which could have a significant
effect on price and availability, and can be significantly affected by
rapid obsolescence.
(small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an
individual security or particular type of security can be more
volatile than the market as a whole and can perform differently than
the value of the market as a whole. The value of securities of smaller
issuers can be more volatile than that of larger issuers.
In addition, the fund is considered non-diversified and can invest a
greater portion of assets in securities of individual issuers than a
diversified fund. As a result, changes in the market value of a single
issuer could cause greater fluctuations in share price than
would occur in a more diversified fund.
An investment in the fund is not a deposit of a bank and is not
insured or guaranteed by the Federal Deposit Insurance Corporation or
any other government agency.
When you sell your shares of the fund, they could be worth more or
less than what you paid for them.
INVESTMENT OBJECTIVE
ADVISOR NATURAL RESOURCES FUND seeks long-term growth of capital and
protection of the purchasing power of shareholders' capital.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Normally investing primarily in common stocks and
in certain precious metals.
(small solid bullet) Investing primarily in securities of companies
that own or develop natural resources, or supply goods and services to
such companies, or in physical commodities.
(small solid bullet) Normally investing at least 80% of assets in
securities of companies principally engaged in the business activities
of the natural resources sector.
(small solid bullet) Investing in domestic and foreign issuers.
(small solid bullet) Using fundamental analysis of each issuer's
financial condition and industry position and market and economic
conditions to select investments.
PRINCIPAL INVESTMENT RISKS
The fund is subject to the following principal investment risks:
(small solid bullet) STOCK MARKET VOLATILITY. Stock markets are
volatile and can decline significantly in response to adverse issuer,
political, regulatory, market or economic developments. Different
parts of the market can react differently to these developments.
(small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more
volatile than the U.S. market due to increased risks of adverse
issuer, political, regulatory, market or economic developments and can
perform differently than the U.S. market.
(small solid bullet) NATURAL RESOURCES INDUSTRY CONCENTRATION. The
natural resources industries can be significantly affected by events
relating to international political and economic developments, energy
conservation, the success of exploration projects, and tax and other
government regulations.
(small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an
individual security or particular type of security can be more
volatile than the market as a whole and can perform differently than
the value of the market as a whole. The value of securities of smaller
issuers can be more volatile than that of larger issuers.
In addition, the fund is considered non-diversified and can invest a
greater portion of assets in securities of individual issuers than a
diversified fund. As a result, changes in the market value of a single
issuer could cause greater fluctuations in share price than
would occur in a more diversified fund.
An investment in the fund is not a deposit of a bank and is not
insured or guaranteed by the Federal Deposit Insurance Corporation or
any other government agency.
When you sell your shares of the fund, they could be worth more or
less than what you paid for them.
INVESTMENT OBJECTIVE
ADVISOR TECHNOLOGY FUND seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Normally investing primarily in common stocks.
(small solid bullet) Investing primarily in companies which have, or
will develop, products, processes or services that will provide or
will benefit significantly from technological advances and
improvements.
(small solid bullet) Normally investing at least 80% of assets in
securities of companies principally engaged in the business activities
of the technology sector.
(small solid bullet) Investing in domestic and foreign issuers.
(small solid bullet) Using fundamental analysis of each issuer's
financial condition and industry position and market and economic
conditions to select investments.
PRINCIPAL INVESTMENT RISKS
The fund is subject to the following principal investment risks:
(small solid bullet) STOCK MARKET VOLATILITY. Stock markets are
volatile and can decline significantly in response to adverse issuer,
political, regulatory, market or economic developments. Different
parts of the market can react differently to these developments.
(small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more
volatile than the U.S. market due to increased risks of adverse
issuer, political, regulatory, market or economic developments and can
perform differently than the U.S. market.
(small solid bullet) TECHNOLOGY INDUSTRY CONCENTRATION. The technology
industries can be significantly affected by obsolescence of existing
technology, short product cycles, falling prices and profits, and
competition from new market entrants.
(small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an
individual security or particular type of security can be more
volatile than the market as a whole and can perform differently than
the value of the market as a whole. The value of securities of smaller
issuers can be more volatile than that of larger issuers.
In addition, the fund is considered non-diversified and can invest a
greater portion of assets in securities of individual issuers than a
diversified fund. As a result, changes in the market value of a single
issuer could cause greater fluctuations in share price than
would occur in a more diversified fund.
An investment in the fund is not a deposit of a bank and is not
insured or guaranteed by the Federal Deposit Insurance Corporation or
any other government agency.
When you sell your shares of the fund, they could be worth more or
less than what you paid for them.
INVESTMENT OBJECTIVE
ADVISOR UTILITIES GROWTH FUND seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Normally investing primarily in common stocks.
(small solid bullet) Investing primarily in companies in the public
utilities industry and companies deriving a majority of their revenues
from their public utility operations.
(small solid bullet) Normally investing at least 80% of assets in
securities of companies principally engaged in the business activities
of the utilities sector.
(small solid bullet) Investing in domestic and foreign issuers.
(small solid bullet) Using fundamental analysis of each issuer's
financial condition and industry position and market and economic
conditions to select investments.
PRINCIPAL INVESTMENT RISKS
The fund is subject to the following principal investment risks:
(small solid bullet) STOCK MARKET VOLATILITY. Stock markets are
volatile and can decline significantly in response to adverse issuer,
political, regulatory, market or economic developments. Different
parts of the market can react differently to these developments.
(small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more
volatile than the U.S. market due to increased risks of adverse
issuer, political, regulatory, market or economic developments and can
perform differently than the U.S. market.
(small solid bullet) UTILITIES INDUSTRY CONCENTRATION. The utilities
industries can be significantly affected by government regulation,
financing difficulties, supply and demand of services or fuel, and
natural resource conservation.
(small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an
individual security or particular type of security can be more
volatile than the market as a whole and can perform differently than
the value of the market as a whole. The value of securities of smaller
issuers can be more volatile than that of larger issuers.
In addition, the fund is considered non-diversified and can invest a
greater portion of assets in securities of individual issuers than a
diversified fund. As a result, changes in the market value of a single
issuer could cause greater fluctuations in share price than
would occur in a more diversified fund.
An investment in the fund is not a deposit of a bank and is not
insured or guaranteed by the Federal Deposit Insurance Corporation or
any other government agency.
When you sell your shares of the fund, they could be worth more or
less than what you paid for them.
PERFORMANCE
The following information illustrates the changes in each fund's
performance from year to year and compares Institutional
Class 's performance to the performance of a market index and an
additional index over various periods of time. Returns are based on
past results and are not an indication of future performance.
YEAR-BY-YEAR RETURNS
<TABLE>
<CAPTION>
<S> <C> <C>
ADVISOR CONSUMER INDUSTRIES -
INSTITUTIONAL CLASS
Calendar Years 1997 1998
36.94% 29.16%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: nil
Row: 2, Col: 1, Value: nil
Row: 3, Col: 1, Value: nil
Row: 4, Col: 1, Value: nil
Row: 5, Col: 1, Value: nil
Row: 6, Col: 1, Value: nil
Row: 7, Col: 1, Value: nil
Row: 8, Col: 1, Value: nil
Row: 9, Col: 1, Value: 36.94
Row: 10, Col: 1, Value: 29.16
DURING THE PERIODS SHOWN IN THE CHART FOR INSTITUTIONAL CLASS OF
ADVISOR CONSUMER INDUSTRIES, THE HIGHEST RETURN FOR A QUARTER WAS
27.24 % (QUARTER ENDING DECEMBER 31 , 199 8 ) AND THE
LOWEST RETURN FOR A QUARTER WAS -14.36 % (QUARTER ENDING
SEPTEMBER 30 , 199 8 ).
THE YEAR-TO-DATE RETURN AS OF JUNE 30, 1999 FOR INSTITUTIONAL CLASS OF
ADVISOR CONSUMER INDUSTRIES WAS 6.26 %.
<TABLE>
<CAPTION>
<S> <C> <C>
ADVISOR CYCLICAL INDUSTRIES -
INSTITUTIONAL CLASS
Calendar Years 1997 1998
19.23% 11.47%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: nil
Row: 2, Col: 1, Value: nil
Row: 3, Col: 1, Value: nil
Row: 4, Col: 1, Value: nil
Row: 5, Col: 1, Value: nil
Row: 6, Col: 1, Value: nil
Row: 7, Col: 1, Value: nil
Row: 8, Col: 1, Value: nil
Row: 9, Col: 1, Value: 19.23
Row: 10, Col: 1, Value: 11.47
DURING THE PERIODS SHOWN IN THE CHART FOR INSTITUTIONAL CLASS OF
ADVISOR CYCLICAL INDUSTRIES, THE HIGHEST RETURN FOR A QUARTER WAS
17.94 % (QUARTER ENDING DECEMBER 31 , 199 8 ) AND THE
LOWEST RETURN FOR A QUARTER WAS -18.59 % (QUARTER ENDING
SEPTEMBER 30 , 199 8 ).
THE YEAR-TO-DATE RETURN AS OF JUNE 30, 1999 FOR INSTITUTIONAL CLASS OF
ADVISOR CYCLICAL INDUSTRIES WAS 12.59 %.
<TABLE>
<CAPTION>
<S> <C> <C>
ADVISOR FINANCIAL SERVICES -
INSTITUTIONAL CLASS
Calendar Years 1997 1998
40.32% 11.97%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: nil
Row: 2, Col: 1, Value: nil
Row: 3, Col: 1, Value: nil
Row: 4, Col: 1, Value: nil
Row: 5, Col: 1, Value: nil
Row: 6, Col: 1, Value: nil
Row: 7, Col: 1, Value: nil
Row: 8, Col: 1, Value: nil
Row: 9, Col: 1, Value: 40.32
Row: 10, Col: 1, Value: 11.97
DURING THE PERIODS SHOWN IN THE CHART FOR INSTITUTIONAL CLASS OF
ADVISOR FINANCIAL SERVICES, THE HIGHEST RETURN FOR A QUARTER WAS
18.92 % (QUARTER ENDING DECEMBER 31 , 199 8 ) AND THE
LOWEST RETURN FOR A QUARTER WAS -19.48 % (QUARTER ENDING
SEPTEMBER 30 , 199 8 ).
THE YEAR-TO-DATE RETURN AS OF JUNE 30, 1999 FOR INSTITUTIONAL CLASS OF
ADVISOR FINANCIAL SERVICES WAS 11.00 %.
ADVISOR HEALTH CARE -
INSTITUTIONAL CLASS
Calendar Years 1997 1998
31.17% 40.19%
Percentage (%)
Row: 1, Col: 1, Value: nil
Row: 2, Col: 1, Value: nil
Row: 3, Col: 1, Value: nil
Row: 4, Col: 1, Value: nil
Row: 5, Col: 1, Value: nil
Row: 6, Col: 1, Value: nil
Row: 7, Col: 1, Value: nil
Row: 8, Col: 1, Value: nil
Row: 9, Col: 1, Value: 31.17
Row: 10, Col: 1, Value: 40.19000000000001
DURING THE PERIODS SHOWN IN THE CHART FOR INSTITUTIONAL CLASS OF
ADVISOR HEALTH CARE, THE HIGHEST RETURN FOR A QUARTER WAS
21.50 % (QUARTER ENDING JUNE 30 , 199 7 ) AND THE
LOWEST RETURN FOR A QUARTER WAS -1.33 % (QUARTER ENDING
SEPTEMBER 30 , 199 8 ).
THE YEAR-TO-DATE RETURN AS OF JUNE 30, 1999 FOR INSTITUTIONAL CLASS OF
ADVISOR HEALTH CARE WAS 3.14 %.
<TABLE>
<CAPTION>
<S> <C> <C> <C>
ADVISOR NATURAL RESOURCES -
INSTITUTIONAL CLASS
Calendar Years 1996 1997 1998
30.72% -0.44% -15.86%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: nil
Row: 2, Col: 1, Value: nil
Row: 3, Col: 1, Value: nil
Row: 4, Col: 1, Value: nil
Row: 5, Col: 1, Value: nil
Row: 6, Col: 1, Value: nil
Row: 7, Col: 1, Value: nil
Row: 8, Col: 1, Value: 30.72
Row: 9, Col: 1, Value: -0.4400000000000001
Row: 10, Col: 1, Value: -15.86
DURING THE PERIODS SHOWN IN THE CHART FOR INSTITUTIONAL CLASS OF
ADVISOR NATURAL RESOURCES, THE HIGHEST RETURN FOR A QUARTER WAS
14.33 % (QUARTER ENDING SEPTEMBER 30 , 199 7 ) AND
THE LOWEST RETURN FOR A QUARTER WAS -13.16 % (QUARTER ENDING
DECEMBER 31 , 199 7 ).
THE YEAR-TO-DATE RETURN AS OF JUNE 30, 1999 FOR INSTITUTIONAL CLASS OF
ADVISOR NATURAL RESOURCES WAS 30.76 %.
ADVISOR TECHNOLOGY -
INSTITUTIONAL CLASS
Calendar Years 1997 1998
10.72% 67.70%
Percentage (%)
Row: 1, Col: 1, Value: nil
Row: 2, Col: 1, Value: nil
Row: 3, Col: 1, Value: nil
Row: 4, Col: 1, Value: nil
Row: 5, Col: 1, Value: nil
Row: 6, Col: 1, Value: nil
Row: 7, Col: 1, Value: nil
Row: 8, Col: 1, Value: nil
Row: 9, Col: 1, Value: 10.72
Row: 10, Col: 1, Value: 67.7
DURING THE PERIODS SHOWN IN THE CHART FOR INSTITUTIONAL CLASS OF
ADVISOR TECHNOLOGY, THE HIGHEST RETURN FOR A QUARTER WAS 41.89 %
(QUARTER ENDING DECEMBER 30 , 199 8 ) AND THE LOWEST RETURN
FOR A QUARTER WAS -19.95 % (QUARTER ENDING DECEMBER 31 ,
199 7 ).
THE YEAR-TO-DATE RETURN AS OF JUNE 30, 1999 FOR INSTITUTIONAL CLASS OF
ADVISOR TECHNOLOGY WAS 24.03 %.
<TABLE>
<CAPTION>
<S> <C> <C>
ADVISOR UTILITIES GROWTH -
INSTITUTIONAL CLASS
Calendar Years 1997 1998
30.25% 32.72%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: nil
Row: 2, Col: 1, Value: nil
Row: 3, Col: 1, Value: nil
Row: 4, Col: 1, Value: nil
Row: 5, Col: 1, Value: nil
Row: 6, Col: 1, Value: nil
Row: 7, Col: 1, Value: nil
Row: 8, Col: 1, Value: nil
Row: 9, Col: 1, Value: 30.25
Row: 10, Col: 1, Value: 32.72000000000001
DURING THE PERIODS SHOWN IN THE CHART FOR INSTITUTIONAL CLASS OF
ADVISOR UTILITIES GROWTH, THE HIGHEST RETURN FOR A QUARTER WAS
23.42 % (QUARTER ENDING MARCH 31 , 199 8 ) AND THE
LOWEST RETURN FOR A QUARTER WAS -5.42 % (QUARTER ENDING
SEPTEMBER 30 , 199 8 ).
THE YEAR-TO-DATE RETURN AS OF JUNE 30, 1999 FOR INSTITUTIONAL CLASS OF
ADVISOR UTILITIES GROWTH WAS 24.59 %.
AVERAGE ANNUAL RETURNS
For the periods ended Past 1 year Life of class
December 31, 1998
Advisor Consumer Industries - 29.16% 32.40%A
Institutional Class
S&P 500 28.58% 33.37%A
Goldman Sachs Consumer 24.91% 29.45%A
Industries Index
Advisor Cyclical Industries - 11.47% 18.92%A
Institutional Class
S&P 500 28.58% 33.37%A
Goldman Sachs Cyclical 4.74% 16.42%A
Industries Index
Advisor Financial Services - 11.97% 30.06%A
Institutional Class
S&P 500 28.58% 33.37%A
Goldman Sachs Financial 9.04% 33.63%A
Services Index
Advisor Health Care - 40.19% 35.53%A
Institutional Class
S&P 500 28.58% 33.37%A
Goldman Sachs Health Care Index 40.26% 38.95%A
Advisor Natural Resources - -15.86% 5.80%B
Institutional Class
S&P 500 28.58% 28.47%B
Goldman Sachs Natural -14.19% n/a
Resources Index
Advisor Technology - 67.70% 43.51%A
Institutional Class
S&P 500 28.58% 33.37%A
Goldman Sachs Technology Index 69.16% 48.92%A
Advisor Utilities Growth - 32.72% 34.49%A
Institutional Class
S&P 500 28.58% 33.37%A
Goldman Sachs Utilities Index 34.29% 34.36%A
A FROM SEPTEMBER 3, 1996.
B FROM JULY 3, 1995.
If FMR had not reimbursed certain class expenses during these periods,
Institutional Class's returns would have been lower.
Standard & Poor's 500 Index (S&P 500(registered trademark)) is a
market capitalization-weighted index of common stocks.
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 resources 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.
FEE TABLE
The following table describes the fees and expenses that are incurred
when you buy, hold, or sell Institutional Class shares of a fund. The
annual class operating expenses provided below for Institutional Class
do not reflect the effect of any expense reimbursements or reduction
of certain expenses during the period.
SHAREHOLDER FEES (PAID BY THE INVESTOR DIRECTLY)
Institutional Class
Sales charge (load) on None
purchases and reinvested
distributions
Deferred sales charge (load) None
on redemptions
Redemption fee on shares held 1.00%
less than less than 60 days
(as a % of amount redeemed)
ANNUAL CLASS OPERATING EXPENSES (PAID FROM CLASS ASSETS)
Institutional Class
ADVISOR CONSUMER INDUSTRIES Management fee 0.58%
Distribution and Service None
(12b-1) fee
Other expenses 0.71%
Total annual class operating 1.29%
expensesA
ADVISOR CYCLICAL INDUSTRIES Management fee 0.58%
Distribution and Service None
(12b-1) fee
Other expenses 2.54%
Total annual class operating 3.12%
expensesA
ADVISOR FINANCIAL SERVICES Management fee 0.58%
Distribution and Service None
(12b-1) fee
Other expenses 0.35%
Total annual class operating 0.93%
expensesA
ADVISOR HEALTH CARE Management fee 0.58%
Distribution and Service None
(12b-1) fee
Other expenses 0.39%
Total annual class operating 0.97%
expensesA
ADVISOR NATURAL RESOURCES Management fee 0.58%
Distribution and Service None
(12b-1) fee
Other expenses 0.29%
Total annual class operating 0.87%
expensesA
ADVISOR TECHNOLOGY Management fee 0.58%
Distribution and Service None
(12b-1) fee
Other expenses 0.40%
Total annual class operating 0.98%
expensesA
ADVISOR UTILITIES GROWTH Management fee 0.58%
Distribution and Service None
(12b-1) fee
Other expenses 0.44%
Total annual class operating 1.02%
expensesA
A FMR HAS VOLUNTARILY AGREED TO REIMBURSE INSTITUTIONAL CLASS OF EACH
FUND TO THE EXTENT THAT TOTAL OPERATING EXPENSES (EXCLUDING INTEREST,
TAXES, SECURITIES LENDING FEES, BROKERAGE COMMISSIONS , AND
EXTRAORDINARY EXPENSES), AS A PERCENTAGE OF THEIR RESPECTIVE AVERAGE
NET ASSETS, EXCEED THE FOLLOWING RATES:
Institutional Class Effective Date
Advisor Consumer Industries 1.25% 12/1/98
Advisor Cyclical Industries 1.25% 12/1/98
Advisor Financial Services 1.25% 12/1/98
Advisor Health Care 1.25% 12/1/98
Advisor Natural Resources 1.25% 12/1/98
Advisor Technology 1.25% 12/1/98
Advisor Utilities Growth 1.25% 12/1/98
THESE ARRANGEMENTS CAN BE DISCONTINUED BY FMR AT ANY TIME.
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 , after
reimbursement, would have been:
Institutional Class
Advisor Consumer Industries 1.24%
Advisor Cyclical Industries 1.29%
Advisor Financial Services 0.92%
Advisor Health Care 0.95%
Advisor Natural Resources 0.82%
Advisor Technology 0.97%
Advisor Utilities Growth 0.99%
This EXAMPLE helps you compare the cost of investing in the funds with
the cost of investing in other mutual funds.
Let's say, hypothetically, that Institutional Class's annual return is
5% and that your shareholder fees and Institutional Class's annual
operating expenses are exactly as described in the fee table. This
example illustrates the effect of fees and expenses, but is not meant
to suggest actual or expected fees and expenses or returns, all of
which may vary. For every $10,000 you invested, here's how much you
would pay in total expenses if you close your account after the number
of years indicated:
Institutional Class
ADVISOR CONSUMER INDUSTRIES 1 year $ 131
3 years $ 409
5 years $ 708
10 years $ 1,556
ADVISOR CYCLICAL INDUSTRIES 1 year $ 315
3 years $ 963
5 years $ 1,635
10 years $ 3,430
ADVISOR FINANCIAL SERVICES 1 year $ 95
3 years $ 296
5 years $ 515
10 years $ 1,143
ADVISOR HEALTH CARE 1 year $ 99
3 years $ 309
5 years $ 536
10 years $ 1,190
ADVISOR NATURAL RESOURCES 1 year $ 89
3 years $ 278
5 years $ 482
10 years $ 1,073
ADVISOR TECHNOLOGY 1 year $ 100
3 years $ 312
5 years $ 542
10 years $ 1,201
ADVISOR UTILITIES GROWTH 1 year $ 104
3 years $ 325
5 years $ 563
10 years $ 1,248
FUND BASICS
INVESTMENT DETAILS
INVESTMENT OBJECTIVE
ADVISOR CONSUMER INDUSTRIES FUND seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR normally invests the fund's assets primarily in common stocks.
FMR invests the fund's assets primarily in companies engaged in the
manufacture and distribution of goods to consumers both domestically
and internationally.
FMR normally invests at least 80% of the fund's assets in securities
of companies principally engaged in the business activities of the
consumer industries sector. These companies may include, for example,
companies that manufacture or sell durable goods such as homes, cars,
boats, furniture, major appliances, and personal computers; and
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, and
sports). They may also include companies that provide consumer
services such as lodging, child care, convenience stores, and car
rentals.
FMR may invest the fund's assets in securities of foreign issuers in
addition to securities of domestic issuers.
Because the fund is considered non-diversified, FMR may invest a
significant percentage of the fund's assets in a single issuer.
In buying and selling securities for the fund, FMR relies on
fundamental analysis of each issuer and its potential for success in
light of its current financial condition, its industry position, and
economic and market conditions. Factors considered include growth
potential, earnings estimates , and management.
FMR may lend the fund's securities to broker-dealers or other
institutions to earn income for the fund.
FMR may use various techniques, such as buying and selling futures
contracts, to increase or decrease the fund's exposure to changing
security prices or other factors that affect security values. If FMR's
strategies do not work as intended, the fund may not achieve its
objective.
INVESTMENT OBJECTIVE
ADVISOR CYCLICAL INDUSTRIES FUND seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR normally invests the fund's assets primarily in common stocks.
FMR invests the fund's assets primarily in companies engaged in the
research, development, manufacture, distribution, supply or sale of
materials, equipment, products , or services related to cyclical
industries.
FMR normally invests at least 80% of the fund's assets in securities
of companies principally engaged in the business activities of the
cyclical industries sector. These companies may include, for example,
companies in the automotive, chemical, construction and housing,
defense and aerospace, environmental services, industrial equipment
and materials, paper and forest products, and transportation
industries.
FMR may invest the fund's assets in securities of foreign issuers in
addition to securities of domestic issuers.
Because the fund is considered non-diversified, FMR may invest a
significant percentage of the fund's assets in a single issuer.
In buying and selling securities for the fund, FMR relies on
fundamental analysis of each issuer and its potential for success in
light of its current financial condition, its industry position, and
economic and market conditions. Factors considered include growth
potential, earnings estimates , and management.
FMR may lend the fund's securities to broker-dealers or other
institutions to earn income for the fund.
FMR may use various techniques, such as buying and selling futures
contracts, to increase or decrease the fund's exposure to changing
security prices or other factors that affect security values. If FMR's
strategies do not work as intended, the fund may not achieve its
objective.
INVESTMENT OBJECTIVE
ADVISOR FINANCIAL SERVICES FUND seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR normally invests the fund's assets primarily in common stocks.
FMR invests the fund's assets primarily in companies providing
financial services to consumers and industry.
FMR normally invests at least 80% of the fund's assets in securities
of companies principally engaged in the business activities of the
financial services sector. These companies may include, for example,
commercial banks, savings and loan associations, brokerage companies,
insurance companies, real estate-related companies, leasing companies,
and consumer and industrial finance companies.
FMR may invest the fund's assets in securities of foreign issuers in
addition to securities of domestic issuers.
In buying and selling securities for the fund, FMR relies on
fundamental analysis of each issuer and its potential for success in
light of its current financial condition, its industry position, and
economic and market conditions. Factors considered include growth
potential, earnings estimates , and management.
FMR may lend the fund's securities to broker-dealers or other
institutions to earn income for the fund.
FMR may use various techniques, such as buying and selling futures
contracts, to increase or decrease the fund's exposure to changing
security prices or other factors that affect security values. If FMR's
strategies do not work as intended, the fund may not achieve its
objective.
INVESTMENT OBJECTIVE
ADVISOR HEALTH CARE FUND seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR normally invests the fund's assets primarily in common stocks.
FMR invests the fund's assets primarily in companies engaged in the
design, manufacture, or sale of products or services used for or in
connection with health care or medicine.
FMR normally invests at least 80% of the fund's assets in securities
of companies principally engaged in the business activities of the
health care sector. These companies may include, for example,
pharmaceutical companies; companies involved in biotechnology, medical
diagnostic, biochemical , or other health care research and
development; companies involved in the operation of health care
facilities; and other companies involved in the design, manufacture,
or sale of health care-related products or services , such as
medical, dental , and optical products, hardware , or
services.
FMR may invest the fund's assets in securities of foreign issuers in
addition to securities of domestic issuers.
Because the fund is considered non-diversified, FMR may invest a
significant percentage of the fund's assets in a single issuer.
In buying and selling securities for the fund, FMR relies on
fundamental analysis of each issuer and its potential for success in
light of its current financial condition, its industry position, and
economic and market conditions. Factors considered include growth
potential, earnings estimates , and management.
FMR may lend the fund's securities to broker-dealers or other
institutions to earn income for the fund.
FMR may use various techniques, such as buying and selling futures
contracts, to increase or decrease the fund's exposure to changing
security prices or other factors that affect security values. If FMR's
strategies do not work as intended, the fund may not achieve its
objective.
INVESTMENT OBJECTIVE
ADVISOR NATURAL RESOURCES FUND seeks long-term growth of capital and
protection of the purchasing power of shareholders' capital.
PRINCIPAL INVESTMENT STRATEGIES
FMR normally invests the fund's assets primarily in common stocks and
in certain precious metals.
FMR invests the fund's assets primarily in companies that own or
develop natural resources, or supply goods and services to such
companies, or in physical commodities.
FMR normally invests at least 80% of the fund's assets in securities
of companies principally engaged in the business activities of the
natural resources sector. These companies may include, for example,
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. FMR treats
investments in instruments whose value is linked to the price of
precious metals as investments in precious metals.
FMR may invest the fund's assets in securities of foreign issuers in
addition to securities of domestic issuers.
Because the fund is considered non-diversified, FMR may invest a
significant percentage of the fund's assets in a single issuer.
In buying and selling securities for the fund, FMR relies on
fundamental analysis of each issuer and its potential for success in
light of its current financial condition, its industry position, and
economic and market conditions. Factors considered include growth
potential, earnings estimates , and management.
FMR may lend the fund's securities to broker-dealers or other
institutions to earn income for the fund.
FMR may use various techniques, such as buying and selling futures
contracts, to increase or decrease the fund's exposure to changing
security prices or other factors that affect security values. If FMR's
strategies do not work as intended, the fund may not achieve its
objective.
INVESTMENT OBJECTIVE
ADVISOR TECHNOLOGY FUND seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR normally invests the fund's assets primarily in common stocks.
FMR invests the fund's assets primarily in companies which have, or
will develop, products, processes or services that will provide or
will benefit significantly from technological advances and
improvements.
FMR normally invests at least 80% of the fund's assets in securities
of companies principally engaged in the business activities of the
technology sector. 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.
FMR may invest the fund's assets in securities of foreign issuers in
addition to securities of domestic issuers.
Because the fund is considered non-diversified, FMR may invest a
significant percentage of the fund's assets in a single issuer.
In buying and selling securities for the fund, FMR relies on
fundamental analysis of each issuer and its potential for success in
light of its current financial condition, its industry position, and
economic and market conditions. Factors considered include growth
potential, earnings estimates , and management.
FMR may lend the fund's securities to broker-dealers or other
institutions to earn income for the fund.
FMR may use various techniques, such as buying and selling futures
contracts, to increase or decrease the fund's exposure to changing
security prices or other factors that affect security values. If FMR's
strategies do not work as intended, the fund may not achieve its
objective.
INVESTMENT OBJECTIVE
ADVISOR UTILITIES GROWTH FUND seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR normally invests the fund's assets primarily in common stocks.
FMR invests the fund's assets primarily in companies in the public
utilities industry and companies deriving a majority of their revenues
from their public utility operations.
FMR normally invests at least 80% of the fund's assets in securities
of companies principally engaged in the business activities of the
utilities sector. These companies may include, for example, companies
that manufacture, produce, generate, transmit , or sell gas or
electric energy; water supply, waste disposal and sewerage, and
sanitary service companies; and companies involved in the
communication field, including telephone, telegraph, satellite,
microwave , and the provision of other communication facilities
for the public benefit.
FMR may invest the fund's assets in securities of foreign issuers in
addition to securities of domestic issuers.
Because the fund is considered non-diversified, FMR may invest a
significant percentage of the fund's assets in a single issuer.
In buying and selling securities for the fund, FMR relies on
fundamental analysis of each issuer and its potential for success in
light of its current financial condition, its industry position, and
economic and market conditions. Factors considered include growth
potential, earnings estimates , and management.
FMR may lend the fund's securities to broker-dealers or other
institutions to earn income for the fund.
FMR may use various techniques, such as buying and selling futures
contracts, to increase or decrease the fund's exposure to changing
security prices or other factors that affect security values. If FMR's
strategies do not work as intended, the fund may not achieve its
objective.
DESCRIPTION OF PRINCIPAL SECURITY TYPES
EQUITY SECURITIES represent an ownership interest, or the right to
acquire an ownership interest, in an issuer. Different types of equity
securities provide different voting and dividend rights and priority
in the event of the bankruptcy of the issuer. Equity securities
include common stocks, preferred stocks, convertible
securities , and warrants.
PRINCIPAL INVESTMENT RISKS
Many factors affect each fund's performance. A fund's share price
changes daily based on changes in market conditions and interest rates
and in response to other economic, political , or financial
developments. A fund's reaction to these events will be affected by
the types of the securities in which the fund invests, the financial
condition, industry and economic sector, and geographic location of an
issuer, and the fund's level of investment in the securities of that
issuer. Because FMR concentrates each fund's investments in a
particular market sector, each fund's performance is expected to be
closely tied to economic and market conditions within that sector and
to be more volatile than the performance of less concentrated funds.
In addition, because FMR may invest a significant percentage of the
assets of each fund (except Advisor Financial Services) in a single
issuer, the fund's performance could be closely tied to the market
value of that one issuer and could be more volatile than the
performance of more diversified funds. When you sell your shares of a
fund, they could be worth more or less than what you paid for them.
The following factors may significantly affect a fund's performance:
STOCK MARKET VOLATILITY. The value of equity securities fluctuates in
response to issuer, political, market , and economic
developments. In the short term, equity prices can fluctuate
dramatically in response to these developments. Different parts of the
market and different types of equity securities can react differently
to these developments. For example, large cap stocks can react
differently than small cap stocks, and "growth" stocks can react
differently than "value" stocks. Issuer, political , or economic
developments can affect a single issuer, issuers within an industry or
economic sector or geographic region, or the market as a whole.
FOREIGN EXPOSURE. Foreign securities, foreign currencies, and
securities issued by U.S. entities with substantial foreign operations
can involve additional risks relating to political, economic ,
or regulatory conditions in foreign countries. These risks include
fluctuations in foreign currencies; withholding or other taxes;
trading, settlement, custodial , and other operational risks;
and the less stringent investor protection and disclosure standards of
some foreign markets. All of these factors can make foreign
investments, especially those in emerging markets, more volatile and
potentially less liquid than U.S. investments. In addition, foreign
markets can perform differently than the U.S. market.
INDUSTRY CONCENTRATION. Market conditions, interest rates, and
economic, regulatory , or financial developments could
significantly affect a market sector, and the securities of companies
in that sector could react similarly to these or other developments.
The CONSUMER industries can be significantly affected by 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.
The CYCLICAL industries can be significantly affected by general
economic trends, including employment, economic growth, and interest
rates, changes in consumer sentiment and spending, commodity prices,
legislation, government regulation and spending, import controls, and
worldwide competition. For example, commodity price declines and unit
volume reductions resulting from an over-supply of materials used in
cyclical industries can adversely affect those industries.
Furthermore, a company in the cyclical industries can be subject to
liability for environmental damage, depletion of resources, and
mandated expenditures for safety and pollution control.
The FINANCIAL SERVICES industries are subject to extensive government
regulation which can 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 affect the
financial services industries. Insurance companies can be subject to
severe price competition. The financial service industries are
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.
The HEALTH CARE industries are subject to government regulation and
government approval of products and services, which could have
a significant effect on price and availability. Furthermore, the types
of products or services produced or provided by health care companies
quickly can become obsolete.
The NATURAL RESOURCES industries can be significantly affected by
events relating to international political and economic developments,
energy conservation, the success of exploration projects, and tax and
other government regulations.
The TECHNOLOGY industries can be significantly affected by
obsolescence of existing technology, short product cycles, falling
prices and profits, and competition from new market entrants.
The UTILITIES industries can be significantly affected by government
regulation, financing difficulties, supply and demand of services or
fuel, and natural resource conservation.
ISSUER - SPECIFIC CHANGES. Changes in the financial condition of
an issuer, changes in specific economic or political conditions that
affect a particular type of security or issuer, and changes in general
economic or political conditions can affect the value of an issuer's
securities. The value of securities of smaller, less well-known
issuers can be more volatile than that of larger issuers. Smaller
issuers can have more limited product lines, markets , or
financial resources.
In response to market, economic, political , or other
conditions, FMR may temporarily use a different investment strategy
for defensive purposes. If FMR does so, different factors could affect
a fund's performance and the fund may not achieve its investment
objective.
FUNDAMENTAL INVESTMENT POLICIES
The policies discussed below are fundamental, that is, subject to
change only by shareholder approval.
ADVISOR CONSUMER INDUSTRIES FUND invests primarily in companies
engaged in the manufacture and distribution of goods to consumers both
domestically and internationally.
ADVISOR 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.
ADVISOR FINANCIAL SERVICES FUND invests primarily in companies
providing financial services to consumers and industry.
ADVISOR 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.
ADVISOR 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.
ADVISOR 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.
ADVISOR 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 OF ADVISOR CONSUMER INDUSTRIES, ADVISOR CYCLICAL INDUSTRIES,
ADVISOR FINANCIAL SERVICES, ADVISOR HEALTH CARE, ADVISOR TECHNOLOGY
AND ADVISOR UTILITIES GROWTH seeks capital appreciation.
VALUING SHARES
Each fund is open for business each day the New York Stock Exchange
(NYSE) is open.
A class's net asset value per share (NAV) is the value of a single
share. Fidelity(registered trademark) normally calculates
Institutional Class's NAV as of the close of business 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
Securities and Exchange Commission (SEC). Each fund's assets are
valued as of this time for the purpose of computing Institutional
Class's NAV.
To the extent that each fund's assets are traded in other markets on
days when the NYSE is closed, the value of the fund's assets may be
affected on days when the fund is not open for business. In addition,
trading in some of a fund's assets may not occur on days when the fund
is open for business.
Each fund's assets are valued primarily on the basis of market
quotations. Certain short-term securities are valued on the basis of
amortized cost. If market quotations are not readily available for a
security or if a security's value has been materially affected by
events occurring after the close of the exchange or market on which
the security is principally traded (for example, a foreign exchange or
market), that security may be valued by another method that the Board
of Trustees believes accurately reflects fair value. A security's
valuation may differ depending on the method used for determining
value.
SHAREHOLDER INFORMATION
BUYING AND SELLING SHARES
GENERAL INFORMATION
For account, product and service information, please use the following
phone numbers:
(small solid bullet) If you are investing through a broker-dealer or
insurance representative, 1-800-522-7297 (8:30 a.m. - 7:00 p.m.
Eastern time, Monday through Friday).
(small solid bullet) If you are investing through a bank
representative, 1-800-843-3001 (8:30 a.m. - 7:00 p.m. Eastern time,
Monday through Friday).
Please use the following addresses:
BUYING OR SELLING SHARES
Fidelity Investments
P.O. Box 770002
Cincinnati, OH 45277-0081
OVERNIGHT EXPRESS
Fidelity Investments
2300 Litton Lane - KH2A
Hebron, KY 41048
You may buy or sell Institutional Class shares of the funds through a
retirement account or an investment professional. When you invest
through a retirement account or an investment professional, the
procedures for buying, selling , and exchanging Institutional
Class shares of a fund and the account features and policies may
differ. Additional fees may also apply to your investment in
Institutional Class shares of a fund, including a transaction fee if
you buy or sell Institutional Class shares of the fund through a
broker or other investment professional.
Certain methods of contacting Fidelity, such as by telephone, may be
unavailable or delayed (for example, during periods of unusual market
activity).
The different ways to set up (register) your account with Fidelity are
listed in the following table.
WAYS TO SET UP YOUR ACCOUNT
INDIVIDUAL OR JOINT TENANT
FOR YOUR GENERAL INVESTMENT NEEDS
RETIREMENT
FOR TAX-ADVANTAGED RETIREMENT SAVINGS
(solid bullet) TRADITIONAL INDIVIDUAL RETIREMENT ACCOUNTS (IRAS)
(solid bullet) ROTH IRAS
(solid bullet) ROLLOVER IRAS
(solid bullet) 401(K) PLANS AND CERTAIN OTHER 401(A)-QUALIFIED PLANS
(solid bullet) KEOGH PLANS
(solid bullet) SIMPLE IRAS
(solid bullet) SIMPLIFIED EMPLOYEE PENSION PLANS (SEP-IRAS)
(solid bullet) SALARY REDUCTION SEP-IRAS (SARSEPS)
GIFTS OR TRANSFERS TO A MINOR (UGMA, UTMA)
TO INVEST FOR A CHILD'S EDUCATION OR OTHER FUTURE NEEDS
TRUST
FOR MONEY BEING INVESTED BY A TRUST
BUSINESS OR ORGANIZATION
FOR INVESTMENT NEEDS OF CORPORATIONS, ASSOCIATIONS, PARTNERSHIPS OR
OTHER GROUPS
BUYING SHARES
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 (as defined in the Employee Retirement Income Security
Act), 403(b) programs and plans covering sole-proprietors (formerly
Keogh/H.R. 10 plans) must have at least $50 million in plan assets;
2. Registered investment adviser managed account programs, provided
the registered investment adviser 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,
accounts other than an employee benefit plan, 403(b) program or plan
covering a sole-proprietor (formerly a Keogh/H.R. 10 plan) 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;
5. Fidelity Trustees and employees; and
6. Insurance company programs for employee benefit plans, 403(b)
programs or plans covering sole-proprietors (formerly Keogh/H.R. 10
plans) that (i) charge an asset-based fee and (ii) will have at least
$1 million invested in the Institutional Class of the Advisor funds.
Insurance company programs for employee benefit plans, 403(b) programs
and plans covering sole-proprietors (formerly Keogh/H.R. 10 plans)
include such programs offered by a broker-dealer affiliate of an
insurance company, provided that the affiliate is not part of an
organization primarily engaged in the brokerage business.
For purchases made by managed account programs, insurance company
separate accounts or insurance company programs for employee benefit
plans, 403(b) programs or plans covering sole-proprietors (formerly
Keogh/H.R. 10 plans), Fidelity may waive the requirement that $1
million be invested in the Institutional Class of the Advisor funds.
The price to buy one share of Institutional Class is the class's NAV.
Institutional Class shares are sold without a sales charge.
Your shares will be bought at the next NAV calculated after your order
is received in proper form.
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.
Short-term or excessive trading into and out of a fund may harm
performance by disrupting portfolio management strategies and by
increasing expenses. Accordingly, a fund may reject any purchase
orders, including exchanges, particularly from market timers or
investors who, in FMR's opinion, have a pattern of short-term or
excessive trading or whose trading has been or may be disruptive to
that fund. For these purposes, FMR may consider an investor's trading
history in that fund or other Fidelity funds, and accounts under
common ownership or control.
Each fund may stop offering shares completely or may offer shares only
on a limited basis, for a period of time or permanently.
When you place an order to buy shares, 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) Fidelity reserves the right to limit the number
of checks processed at one time.
(small solid bullet) 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 liable for any losses
or fees a fund or Fidelity has incurred.
(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.
Shares can be bought or sold through investment professionals using an
automated order placement and settlement system that guarantees
payment for orders on a specified date.
Certain financial institutions that meet creditworthiness criteria
established by Fidelity Distributors Corporation (FDC) 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 that time, the order will be
canceled and the financial institution will be liable for any losses.
MINIMUMS
TO OPEN AN ACCOUNT $2,500
For certain Fidelity Advisor retirement accountsA $500
Through regular investment plansB $100
TO ADD TO AN ACCOUNT $100
MINIMUM BALANCE $1,000
For certain Fidelity Advisor retirement accountsA None
A FIDELITY ADVISOR TRADITIONAL IRA, ROTH IRA, ROLLOVER IRA, SEP-IRA,
AND KEOGH ACCOUNTS.
B AN ACCOUNT MAY BE OPENED WITH A MINIMUM OF $100, PROVIDED THAT A
REGULAR INVESTMENT PLAN IS ESTABLISHED AT THE TIME THE ACCOUNT IS
OPENED.
There is no minimum account balance or initial or subsequent purchase
minimum for certain Fidelity retirement accounts funded through salary
deduction, or accounts opened with the proceeds of distributions from
such retirement accounts. In addition, each fund may waive or lower
purchase minimums in other circumstances.
KEY INFORMATION
PHONE TO OPEN AN ACCOUNT
(small solid bullet) Exchange
from the same class of
another Fidelity Advisor
fund or from another
Fidelity fund. Call your
investment professional or
call Fidelity at the
appropriate number found in
"General Information."
TO ADD TO AN ACCOUNT
(small solid bullet) Exchange
from the same class of
another Fidelity Advisor
fund or from another
Fidelity fund. Call your
investment professional or
call Fidelity at the
appropriate number found in
"General Information."
MAIL FIDELITY INVESTMENTS TO OPEN AN ACCOUNT
P.O. BOX 770002 CINCINNATI, (small solid bullet) Complete
OH 45277-0081 and sign the application.
Make your check payable to
the complete name of the
fund and note the applicable
class. Mail to your
investment professional or
to the address at left.
TO ADD TO AN ACCOUNT
(small solid bullet) Make
your check payable to the
complete name of the fund
and note the applicable
class. Indicate your fund
account number on your check
and mail to your investment
professional or to the
address at left.
(small solid bullet) Exchange
from the same class of other
Fidelity Advisor funds or
from another Fidelity fund.
Send a letter of instruction
to your investment
professional or to the
address at left, including
your name, the funds' names,
the applicable class names,
the fund account numbers,
and the dollar amount or
number of shares to be
exchanged.
IN PERSON TO OPEN AN ACCOUNT
(small solid bullet) Bring
your application and check
to your investment
professional.
TO ADD TO AN ACCOUNT
(small solid bullet) Bring
your check to your
investment professional.
WIRE TO OPEN AN ACCOUNT
(small solid bullet) Call
your investment professional
or call Fidelity at the
appropriate number found in
"General Information" to set
up your account and to
arrange a wire transaction.
(small solid bullet) Wire to:
Banker's Trust Company, Bank
Routing # 021001033, Account
# 00159759.
(small solid bullet) Specify
the complete name of the
fund, note the applicable
class, and include your new
fund account number and your
name.
TO ADD TO AN ACCOUNT
(small solid bullet) Wire to:
Banker's Trust Company, Bank
Routing # 021001033, Account
# 00159759.
(small solid bullet) Specify
the complete name of the
fund, note the applicable
class, and include your fund
account number and your name.
AUTOMATICALLY TO OPEN AN ACCOUNT
(small solid bullet) Not
available.
TO ADD TO AN ACCOUNT
(small solid bullet) Use
Fidelity Advisor Systematic
Investment Program.
SELLING SHARES
The price to sell one share of Institutional Class is the class's NAV,
minus the redemption fee (short-term trading fee), if applicable.
Each fund will deduct a short-term trading fee of 1.00% 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.
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 short-term trading fee does not
apply to shares that were acquired through reinvestment of
distributions.
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.
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.
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 sell 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; or
(small solid bullet) The redemption proceeds are being transferred to
a Fidelity account with a different registration.
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.
When you place an order to sell shares, note the following:
(small solid bullet) 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, except accounts not subject to account minimums.
(small solid bullet) Normally, Fidelity will process redemptions by
the next business day, but Fidelity may take up to seven days to
process redemptions if making immediate payment would adversely affect
a fund.
(small solid bullet) Redemption proceeds (other than exchanges) may be
delayed until money from prior purchases sufficient to cover your
redemption has been received and collected. This can take up to seven
business days after a purchase.
(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) Redemption proceeds may be paid in securities or
other assets rather than in cash if the Board of Trustees determines
it is in the best interests of a fund.
(small solid bullet) You will not receive interest on amounts
represented by uncashed redemption checks.
(small solid bullet) Unless otherwise instructed, Fidelity will send a
check to the record address.
KEY INFORMATION
PHONE (small solid bullet) Call
your investment professional
or call Fidelity at the
appropriate number found in
"General Information" to
initiate a wire transaction
or to request a check for
your redemption.
(small solid bullet) Exchange
to the same class of other
Fidelity Advisor funds or to
another Fidelity fund. Call
your investment professional
or call Fidelity at the
appropriate number found in
"General Information."
MAIL FIDELITY INVESTMENTS INDIVIDUAL, JOINT TENANT,
P.O. BOX 770002 CINCINNATI, SOLE PROPRIETORSHIP, UGMA,
OH 45277-0081 UTMA
(small solid bullet) Send a
letter of instruction to
your investment professional
or to the address at left,
including your name, the
fund's name, the applicable
class name, your fund
account number, and the
dollar amount or number of
shares to be sold. The
letter of instruction must
be signed by all persons
required to sign for
transactions, exactly as
their names appear on the
account.
RETIREMENT ACCOUNT
(small solid bullet) The
account owner should
complete a retirement
distribution form. Call your
investment professional or
call Fidelity at the
appropriate number found in
"General Information" to
request one.
TRUST
(small solid bullet) Send a
letter of instruction to
your investment professional
or to the address at left,
including the trust's name,
the fund's name, the
applicable class name, the
trust's fund account number,
and the dollar amount or
number of shares to be sold.
The trustee must sign the
letter of instruction
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) Send a
letter of instruction to
your investment professional
or to the address at left,
including the firm's name,
the fund's name, the
applicable class name, the
firm's fund account number,
and the dollar amount or
number of shares to be sold.
At least one person
authorized by corporate
resolution to act on the
account must sign the letter
of instruction.
(small solid bullet) Include
a corporate resolution with
corporate seal or a
signature guarantee.
EXECUTOR, ADMINISTRATOR,
CONSERVATOR, GUARDIAN
(small solid bullet) Call
your investment professional
or call Fidelity at the
appropriate number found in
"General Information" for
instructions.
IN PERSON INDIVIDUAL, JOINT TENANT,
SOLE PROPRIETORSHIP, UGMA,
UTMA
(small solid bullet) Bring a
letter of instruction to
your investment
professional. The letter of
instruction must be signed
by all persons required to
sign for transactions,
exactly as their names
appear on the account.
RETIREMENT ACCOUNT
(small solid bullet) The
account owner should
complete a retirement
distribution form. Visit
your investment professional
to request one.
TRUST
(small solid bullet) Bring a
letter of instruction to
your investment
professional. The trustee
must sign the letter of
instruction 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) Bring a
letter of instruction to
your investment
professional. At least one
person authorized by
corporate resolution to act
on the account must sign the
letter of instruction.
(small solid bullet) Include
a corporate resolution with
corporate seal or a
signature guarantee.
EXECUTOR, ADMINISTRATOR,
CONSERVATOR, GUARDIAN
(small solid bullet) Visit
your investment professional
for instructions.
AUTOMATICALLY (small solid bullet) Use
Fidelity Advisor Systematic
Withdrawal Program to set up
periodic redemptions from
your Institutional Class
account.
EXCHANGING SHARES
An exchange involves the redemption of all or a portion of the shares
of one fund and the purchase of shares of another fund.
As an Institutional Class shareholder, you have the privilege of
exchanging your Institutional Class shares for Institutional Class
shares of other Fidelity Advisor funds or for shares of Fidelity
funds.
However, you should note the following policies and restrictions
governing exchanges:
(small solid bullet) The fund or class you are exchanging into must be
available for sale in your state.
(small solid bullet) You may exchange only 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 number of
exchanges you may make between the Advisor Focus funds, the funds may
enact limitations in the future. Each fund may temporarily or
permanently terminate the exchange privilege of any investor who makes
more than four exchanges out of an Advisor Focus fund to another
Advisor fund per calendar year. Accounts under common ownership or
control will be counted together for purposes of the four exchange
limit.
(small solid bullet) Each fund may reject exchange purchases in excess
of 1% of its net assets or $1 million, whichever is less.
(small solid bullet) The exchange limit may be modified for accounts
held by 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 may 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.
The funds may terminate or modify the exchange privileges in the
future.
Other funds may have different exchange restrictions, and may impose
trading fees of up to 3.00% of the amount exchanged. Check each fund's
prospectus for details.
ACCOUNT FEATURES AND POLICIES
FEATURES
The following features are available to buy and sell shares of the
funds.
AUTOMATIC INVESTMENT AND WITHDRAWAL PROGRAMS. Fidelity offers
convenient services that let you automatically transfer money into
your account, between accounts, or out of your account. While
automatic investment programs 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. Automatic withdrawal or exchange
programs can be a convenient way to provide a consistent income flow
or to move money between your investments.
<TABLE>
<CAPTION>
<S> <C> <C> <C>
FIDELITY ADVISOR SYSTEMATIC
INVESTMENT PROGRAM TO MOVE
MONEY FROM YOUR BANK ACCOUNT
TO A FIDELITY ADVISOR FUND.
MINIMUM MINIMUM FREQUENCY PROCEDURES
INITIAL ADDITIONAL
$100 $100 Monthly, bimonthly, (small solid bullet) To set
quarterly, or semi-annually up for a new account,
complete the appropriate
section on the application.
(small solid bullet) To set
up for existing accounts,
call your investment
professional or call
Fidelity at the appropriate
number found in "General
Information" for an
application.
(small solid bullet) To make
changes, call your
investment professional or
call Fidelity at the
appropriate number found in
"General Information." Call
at least 10 business days
prior to your next scheduled
investment date.
FIDELITY ADVISOR SYSTEMATIC
WITHDRAWAL PROGRAM TO SET UP
PERIODIC REDEMPTIONS FROM
YOUR INSTITUTIONAL CLASS
ACCOUNT TO YOU OR TO YOUR
BANK CHECKING ACCOUNT.
MINIMUM MAXIMUM FREQUENCY PROCEDURES
$100 $50,000 Monthly, quarterly, or (small solid bullet) Accounts
semi-annually with a value of $10,000 or
more in Institutional Class
shares are eligible for this
program.
(small solid bullet) To set
up, call your investment
professional or call
Fidelity at the appropriate
number found in "General
Information" for instructions.
(small solid bullet) To make
changes, call your
investment professional or
call Fidelity at the
appropriate number found in
"General Information." Call
at least 10 business days
prior to your next scheduled
withdrawal date.
</TABLE>
OTHER FEATURES. The following other features are also available to buy
and sell shares of the funds.
WIRE
TO PURCHASE AND SELL SHARES VIA THE FEDERAL RESERVE WIRE SYSTEM.
(small solid bullet) You must sign up for the Wire feature before
using it. Complete the appropriate section on the application when
opening your account.
(small solid bullet) Call your investment professional or call
Fidelity at the appropriate number found in "General Information"
before your first use to verify that this feature is set up on your
account.
(small solid bullet) To sell shares by wire, you must designate the
U.S. commercial bank account(s) into which you wish the redemption
proceeds deposited.
(small solid bullet) To add the wire feature or to change the bank
account designated to receive redemption proceeds at any time prior to
making a redemption request, you should send a letter of instruction,
including a signature guarantee, to your investment professional or to
Fidelity at the address found in "General Information."
POLICIES
The following policies apply to you as a shareholder.
STATEMENTS AND REPORTS that Fidelity sends to you include the
following:
(small solid bullet) Confirmation statements (after transactions
affecting your account balance except reinvestment of distributions in
the fund or another fund and certain transactions through automatic
investment or withdrawal programs).
(small solid bullet) Monthly or quarterly account statements
(detailing account balances and all transactions completed during the
prior month or quarter).
(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 Fidelity at 1-888-622-3175 if you need additional copies
of financial reports or prospectuses.
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 sell and
exchange by telephone, call Fidelity for instructions. Additional
documentation may be required from corporations, associations, and
certain fiduciaries.
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.
If your ACCOUNT BALANCE falls below $1,000 (except accounts not
subject to account minimums), you will be given 30 days' notice to
reestablish the minimum balance. If you do not increase your balance,
Fidelity may close your account and send the proceeds to you. Your
shares will be sold at the NAV, minus the short-term trading fee, if
applicable, on the day your account is closed.
Fidelity may charge a FEE FOR CERTAIN SERVICES, such as providing
historical account documents.
DIVIDENDS AND CAPITAL GAIN DISTRIBUTIONS
Each fund earns dividends, interest , and other income from its
investments, and distributes this income (less expenses) to
shareholders as dividends. Each fund also realizes capital gains from
its investments, and distributes these gains (less any losses) to
shareholders as capital gain distributions.
Each fund normally pays dividends and capital gain distributions in
September and December.
DISTRIBUTION OPTIONS
When you open an account, specify on your application how you want to
receive your distributions. The following options may be available for
Institutional Class's distributions:
1. REINVESTMENT OPTION. Your dividends and capital gain distributions
will be automatically reinvested in additional Institutional Class
shares 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 Institutional Class shares of
the fund. Your dividends will be paid in cash.
3. CASH OPTION. Your dividends and capital gain distributions will be
paid in cash.
4. DIRECTED DIVIDENDS(registered trademark) OPTION. Your dividends
will be automatically invested in Institutional Class shares of
another identically registered Fidelity Advisor fund or shares of
identically registered Fidelity funds. Your capital gain distributions
will be automatically invested in Institutional Class shares of
another identically registered Fidelity Advisor fund or shares of
identically registered Fidelity funds, automatically reinvested in
additional Institutional Class shares of the fund, or paid in cash.
Not all distribution options are available for every account. If the
option you prefer is not listed on your account application, or if you
want to change your current option, contact your investment
professional directly or call Fidelity.
If you elect to receive distributions paid in cash by check and the
U.S. Postal Service does not deliver your checks, your distribution
option may be converted to the Reinvestment Option. You will not
receive interest on amounts represented by uncashed distribution
checks.
TAX CONSEQUENCES
As with any investment, your investment in a fund could have tax
consequences for you. If you are not investing through a
tax-advantaged retirement account, you should consider these tax
consequences.
TAXES ON DISTRIBUTIONS. Distributions you receive from each fund are
subject to federal income tax, and may also be subject to state or
local taxes.
For federal tax purposes, each fund's dividends and distributions of
short-term capital gains are taxable to you as ordinary income. Each
fund's distributions of long-term capital gains are taxable to you
generally as capital gains.
If you buy shares when a fund has realized but not yet distributed
income or capital gains, you will be "buying a dividend" by paying the
full price for the shares and then receiving a portion of the price
back in the form of a taxable distribution.
Any taxable distributions you receive from a fund will normally be
taxable to you when you receive them, regardless of your distribution
option.
TAXES ON TRANSACTIONS. Your redemptions, including exchanges, may
result in a capital gain or loss for federal tax purposes. A capital
gain or loss on your investment in a fund is the difference between
the cost of your shares and the price you receive when you sell them.
FUND SERVICES
FUND MANAGEMENT
Each fund is a mutual fund, an investment that pools shareholders'
money and invests it toward a specified goal.
FMR is each fund's manager.
As of March 25, 1999, FMR had approximately $522 billion in
discretionary assets under management.
As the manager, FMR is responsible for choosing each fund's
investments and handling it s 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. FMR
U.K. was organized in 1986 to provide investment research and advice
to FMR. Currently, FMR U.K. provides investment research and advice on
issuers based outside the United States and may also provide
investment advisory services 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. FMR
Far East was organized in 1986 to provide investment research and
advice to FMR. Currently, FMR Far East provides investment research
and advice on issuers based outside the United States and may also
provide investment advisory services for each fund.
A fund could be adversely affected if the computer systems used by FMR
and other service providers do not properly process and calculate
date-related information from and after January 1, 2000. FMR has
advised each fund that it is actively working on necessary changes to
its computer systems and expects that its systems, and those of other
major service providers, will be modified prior to January 1, 2000.
However, there can be no assurance that there will be no adverse
impact on a fund.
Ramin Arani is an analyst and manager of Advisor Health Care, which he
has managed since August 1999. He also manages other Fidelity funds.
Mr. Arani joined Fidelity as a research associate in 1992.
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.
Scott Offen is manager of Advisor Natural Resources, which he has
managed since September 1999. He also manages other Fidelity funds.
Since joining Fidelity in 1985, Mr. Offen has worked as a research
analyst and portfolio manager.
John Porter is manager of Advisor Consumer Industries, which he has
managed since September 1999. He also manages another Fidelity fund.
Mr. Porter joined Fidelity as an analyst in 1995, after receiving his
MBA from the University of Chicago.
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.
Peter Saperstone is manager of Advisor Utilities Growth, which he has
managed since October 1998. He also manages other Fidelity funds. Mr.
Saperstone joined Fidelity in 1995 and has worked as an analyst and
manager.
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.
From time to time a manager, analyst , or other Fidelity
employee may express views regarding a particular company, security,
industry or market sector. The views expressed by any such person are
the views of only that individual as of the time expressed and do not
necessarily represent the views of Fidelity or any other person in the
Fidelity organization. Any such views are subject to change at any
time based upon market or other conditions and Fidelity disclaims any
responsibility to update such views. These views may not be relied on
as investment advice and, because investment decisions for a Fidelity
fund are based on numerous factors, may not be relied on as an
indication of trading intent on behalf of any Fidelity fund.
Fidelity investment personnel may invest in securities for their own
investment accounts pursuant to a code of ethics that establishes
procedures for personal investing and restricts certain transactions.
Each fund pays a management fee to FMR. 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, dividing by
twelve, and multiplying the result by the fund's average net assets
throughout the month.
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 1999, the group fee rate was 0.2811 % for each fund.
The individual fund fee rate is 0.30% for each fund.
The total management fee for the fiscal year ended July 31, 1999, of
each fund's average net assets is shown in the table below.
Total Management Fee
Advisor Consumer Industries 0.58%
Advisor Cyclical Industries 0.58%
Advisor Financial Services 0.58%
Advisor Health Care 0.58%
Advisor Natural Resources 0.58%
Advisor Technology 0.58%
Advisor Utilities Growth 0.58%
FMR pays FMR U.K. and FMR Far East for providing assistance with
investment advisory services.
FMR may, from time to time, agree to reimburse a class 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 discontinued by FMR at any time, can
decrease a class's expenses and boost its performance.
FUND DISTRIBUTION
Each fund is composed of multiple classes of shares. All classes of a
fund have a common investment objective and investment portfolio.
FDC distributes Institutional Class's shares.
Institutional Class has adopted a Distribution and Service Plan
pursuant to Rule 12b-1 under the Investment Company Act of 1940 that
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 providing services intended
to result in the sale of Institutional Class shares and/or shareholder
support services. FMR, directly or through FDC, may pay
intermediaries, such as banks, broker-dealers and other
service-providers, that provide those services. Currently, the Board
of Trustees of each fund has authorized such payments for
Institutional Class.
To receive payments made pursuant to a Distribution and Service Plan,
intermediaries must sign the appropriate agreement with FDC in
advance.
FMR may allocate brokerage transactions in a manner that takes into
account the sale of shares of the Fidelity Advisor funds, provided
that a fund receives brokerage services and commission rates
comparable to those of other broker-dealers.
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
statement of additional information (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 shares of the
funds to or to buy shares of the funds from any person to whom it is
unlawful to make such offer.
APPENDIX
FINANCIAL HIGHLIGHTS
The financial highlights tables are intended to help you understand
Institutional Class's financial history for the period of the class's
operations. Certain information reflects financial results for a
single class share. The total returns in the table represent the
rate that an investor would have earned (or lost) on an investment in
the class (assuming reinvestment of all dividends and
distributions ) . This information has been audited by
Deloitte & Touche LLP (1999 annual information only) ,
independent accountants, whose report, along with each fund's
financial highlights and financial statements, are included in each
fund's annual report. Annual information prior to 1999 was audited
by PricewaterhouseCoopers LLP. A free copy of the annual report is
available upon request.
CONSUMER INDUSTRIES - INSTITUTIONAL CLASS
Years ended July 31, 1999 1998 1997 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 15.12 $ 13.51 $ 10.00
period
Income from Investment
Operations
Net investment income (loss) .02 (.03) (.01)
D
Net realized and unrealized 1.81 3.31 3.59
gain (loss)
Total from investment 1.83 3.28 3.58
operations
Less Distributions
From net realized gain (.85) (1.70) (.07)
Redemption fees added to paid .01 .03 -
in capital
Net asset value, end of period $ 16.11 $ 15.12 $ 13.51
TOTAL RETURN B, C 13.87% 27.70% 35.98%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 5,954 $ 4,745 $ 1,333
(000 omitted)
Ratio of expenses to average 1.26% F 1.50% F 1.50% A, F
net assets
Ratio of expenses to average 1.24% G 1.48% G 1.48% A, G
net assets after expense
reductions
Ratio of net investment .11% (.20)% (.13)% A
income (loss) to average net
assets
Portfolio turnover 80% 144% 203% A
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'S EXPENSES DURING
THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS'S 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'S
EXPENSES.
CYCLICAL INDUSTRIES - INSTITUTIONAL CLASS
Years ended July 31, 1999 1998 1997 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 13.68 $ 13.84 $ 10.00
period
Income from Investment
Operations
Net investment income D .04 .01 H .03
Net realized and unrealized 1.25 .75 3.91
gain (loss)
Total from investment 1.29 .76 3.94
operations
Less Distributions
From net investment income - - (.02)
From net realized gain (.70) (.95) (.08)
Total distributions (.70) (.95) (.10)
Redemption fees added to paid .01 .03 -
in capital
Net asset value, end of period $ 14.28 $ 13.68 $ 13.84
TOTAL RETURN B, C 11.15% 6.32% 39.64%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 3,377 $ 1,360 $ 1,756
(000 omitted)
Ratio of expenses to average 1.31% F 1.50% F 1.50% A, F
net assets
Ratio of expenses to average 1.29% G 1.50% 1.48% A, G
net assets after expense
reductions
Ratio of net investment .31% .04% .25% A
income to average net assets
Portfolio turnover 115% 100% 155% A
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'S EXPENSES DURING
THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS'S 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'S
EXPENSES.
H DURING THE PERIOD, A SIGNIFICANT SHAREHOLDER REDEMPTION CAUSED AN
UNUSUALLY HIGH LEVEL OF INVESTMENT INCOME PER SHARE.
FINANCIAL SERVICES - INSTITUTIONAL CLASS
Years ended July 31, 1999 1998 1997 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 18.80 $ 15.14 $ 10.00
period
Income from Investment
Operations
Net investment income D .18 .14 .10
Net realized and unrealized (.30) 3.79 5.06
gain (loss)
Total from investment (.12) 3.93 5.16
operations
Less Distributions
From net investment income (.08)H (.05) (.02)
From net realized gain (1.01)H (.23) (.01)
Total distributions (1.09) (.28) (.03)
Redemption fees added to paid .01 .01 .01
in capital
Net asset value, end of period $ 17.60 $ 18.80 $ 15.14
TOTAL RETURN B, C 1.12% 26.39% 51.78%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 11,956 $ 5,270 $ 3,758
(000 omitted)
Ratio of expenses to average .93% 1.14% 1.50% A, F
net assets
Ratio of expenses to average .92% G 1.13% G 1.47% A, G
net assets after expense
reductions
Ratio of net investment 1.04% .81% .85% A
income to average net assets
Portfolio turnover 38% 54% 26% A
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'S EXPENSES DURING
THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS'S 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'S
EXPENSES.
H THE AMOUNTS SHOWN REFLECT CERTAIN RECLASSIFICATIONS RELATED TO
BOOK-TO-TAX DIFFERENCES.
HEALTH CARE - INSTITUTIONAL CLASS
Years ended July 31, 1999 1998 1997 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 16.73 $ 14.12 $ 10.00
period
Income from Investment
Operations
Net investment income D .05 .03 .01
Net realized and unrealized 2.21 3.47 4.11
gain (loss)
Total from investment 2.26 3.50 4.12
operations
Less Distributions
From net realized gain (.41) (.90) -
Redemption fees added to paid .01 .01 -
in capital
Net asset value, end of period $ 18.59 $ 16.73 $ 14.12
TOTAL RETURN B, C 14.17% 26.70% 41.20%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 33,540 $ 10,424 $ 6,875
(000 omitted)
Ratio of expenses to average .97% 1.07% 1.50% A, F
net assets
Ratio of expenses to average .95% G 1.04% G 1.49% A, G
net assets after expense
reductions
Ratio of net investment .28% .17% .08% A
income to average net assets
Portfolio turnover 98% 85% 67% A
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 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'S EXPENSES DURING
THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS'S 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'S
EXPENSES.
NATURAL RESOURCES - INSTITUTIONAL CLASS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended July 31, 1999 1998 1997 E 1996 F 1995 G
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 19.15 $ 26.42 $ 25.17 $ 19.27 $ 18.87
period
Income from Investment
Operations
Net investment income (loss) .14 .13 .04 .04 (.01)
D
Net realized and unrealized 3.76 (3.35) 2.85 6.55 .41
gain (loss)
Total from investment 3.90 (3.22) 2.89 6.59 .40
operations
Less Distributions
From net investment income (.07) J (.09) (.05) - -
In excess of net investment - - (.02) - -
income
From net realized gain (.71) J (3.97) (1.57) (.69) -
Total distributions (.78) (4.06) (1.64) (.69) -
Redemption fees added to paid .01 .01 - - -
in capital
Net asset value, end of period $ 22.28 $ 19.15 $ 26.42 $ 25.17 $ 19.27
TOTAL RETURN B, C 21.95% (14.29)% 11.95% 35.13% 2.12%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 4,505 $ 3,922 $ 10,042 $ 9,860 $ 718
(000 omitted)
Ratio of expenses to average .87% .95% 1.08% A 1.44% 1.68% A, H
net assets
Ratio of expenses to average .82% I .91% I 1.06% A, I 1.39% I 1.66% A, I
net assets after expense
reductions
Ratio of net investment .78% .55% .24% A .17% (.13)% A
income (loss) to average net
assets
Portfolio turnover 99% 97% 116% A 137% 161%
</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 (LOSS) PER SHARE HAS BEEN CALCULATED BASED
ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD.
E NINE MONTHS ENDED JULY 31.
F YEAR ENDED OCTOBER 31.
G FOR THE PERIOD JULY 3, 1995 (COMMENCEMENT OF SALE OF
INSTITUTIONAL CLASS SHARES) TO OCTOBER 31, 1995.
H FMR AGREED TO REIMBURSE A PORTION OF THE CLASS'S EXPENSES DURING
THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS'S EXPENSE RATIO
WOULD HAVE BEEN HIGHER.
I FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS'S
EXPENSES.
J THE AMOUNTS SHOWN REFLECT CERTAIN RECLASSIFICATIONS RELATED TO
BOOK-TO-TAX DIFFERENCES.
TECHNOLOGY - INSTITUTIONAL CLASS
Years ended July 31, 1999 1998 1997 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 14.89 $ 15.98 $ 10.00
period
Income from Investment
Operations
Net investment income (loss) (.04) (.04) (.06)
D
Net realized and unrealized 10.19 .55 6.12
gain (loss)
Total from investment 10.15 .51 6.06
operations
Less Distributions
From net realized gain - (1.15) (.09)
In excess of net realized - (.46) -
gain
Total distributions - (1.61) (.09)
Redemption fees added to paid .01 .01 .01
in capital
Net asset value, end of period $ 25.05 $ 14.89 $ 15.98
TOTAL RETURN B, C 68.23% 4.26% 60.95%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 32,722 $ 7,060 $ 3,598
(000 omitted)
Ratio of expenses to average .98% 1.10% 1.50% A, F
net assets
Ratio of expenses to average .97% G 1.07% G 1.44% A, G
net assets after expense
reductions
Ratio of net investment (.17)% (.30)% (.50)% A
income (loss) to average net
assets
Portfolio turnover 170% 348% 517% A
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 (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'S EXPENSES DURING
THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS'S 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'S
EXPENSES.
UTILITIES GROWTH - INSTITUTIONAL CLASS
Years ended July 31, 1999 1998 1997 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 16.02 $ 13.09 $ 10.00
period
Income from Investment
Operations
Net investment income D .11 .04 .14
Net realized and unrealized 5.46 4.17 3.10
gain (loss)
Total from investment 5.57 4.21 3.24
operations
Less Distributions
From net investment income -H (.07) (.04)
From net realized gain (1.22)H (1.22) (.11)
Total distributions (1.22) (1.29) (.15)
Redemption fees added to paid .01 .01 -
in capital
Net asset value, end of period $ 20.38 $ 16.02 $ 13.09
TOTAL RETURN B, C 39.31% 34.36% 32.68%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 6,963 $ 3,430 $ 2,246
(000 omitted)
Ratio of expenses to average 1.02% 1.46% 1.50% A, F
net assets
Ratio of expenses to average .99% G 1.43% G 1.50% A
net assets after expense
reductions
Ratio of net investment .63% .30% 1.29% A
income to average net assets
Portfolio turnover 149% 151% 13% A
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'S EXPENSES DURING
THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS'S 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'S
EXPENSES.
H THE AMOUNTS SHOWN REFLECT CERTAIN RECLASSIFICATIONS RELATED TO
BOOK-TO-TAX DIFFERENCES.
You can obtain additional information about the funds. The funds' SAI
includes more detailed information about each fund and its
investments. The SAI is incorporated herein by reference (legally
forms a part of the prospectus). Each fund's annual and semi-annual
reports include a discussion of the fund's holdings and recent market
conditions and the fund's investment strategies that affected
performance.
For a free copy of any of these documents or to request other
information or ask questions about a fund, call Fidelity at
1-888-622-3175.
The SAI, the funds' annual and semi-annual reports and other related
materials are available on the SEC's Internet Web site
(http://www.sec.gov). You can obtain copies of this information upon
paying a duplicating fee, by writing the Public Reference Section of
the SEC, Washington, D.C. 20549-6009. You can also review and copy
information about the funds, including the funds' SAI, at the SEC's
Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for
information on the operation of the SEC's Public Reference Room.
INVESTMENT COMPANY ACT OF 1940, FILE NUMBER, 811-3010
Fidelity Investments & (Pyramid) Design, Fidelity, Fidelity
Investments, and Directed Dividends 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.
1.705177.102 AFOCI-pro-0999
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 29, 1999
This statement of additional information (SAI) is not a prospectus.
Portions of the funds' annual reports are incorporated herein. The
annual reports are supplied with this SAI.
To obtain a free additional copy of a prospectus, dated September 29,
1999, or an annual report for each fund, please call
Fidelity(registered trademark) at 1-888-622-3175.
TABLE OF CONTENTS PAGE
Investment Policies and 2
Limitations
Portfolio Transactions 12
Valuation 19
Performance 19
Additional Purchase, Exchange 65
and Redemption Information
Distributions and Taxes 68
Trustees and Officers 70
Control of Investment Advisers 75
Management Contracts 75
Distribution Services 80
Transfer and Service Agent 93
Agreements
Description of the Trust 94
Financial Statements 94
Appendix 94
AFOC/AFOCI-ptb-0999
1.473507.102
(fidelity_logo_graphic)(registered trademark)
82 Devonshire Street, Boston, MA 02109
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 in connection with the insurance
program established by the fund pursuant to an exemptive order issued
by the Securities and Exchange Commission or as otherwise 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)).
(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 15% 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 were 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 if: (i) at least 50% of an
issuer's assets, income, sales or profits are committed to, or derived
from, the business activity, or (ii) a third party has given the
issuer an industry or sector classification consistent with the
designated business activity.
For the fund's limitations on futures and options transactions, see
the section entitled "Limitations on Futures and Options Transactions"
on page 11 .
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 in connection with the insurance
program established by the fund pursuant to an exemptive order issued
by the Securities and Exchange Commission or as otherwise 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)).
(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 15% 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 were 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 if: (i) at least 50% of an
issuer's assets, income, sales or profits are committed to, or derived
from, the business activity, or (ii) a third party has given the
issuer an industry or sector classification consistent with the
designated business activity.
For the fund's limitations on futures and options transactions, see
the section entitled "Limitations on Futures and Options Transactions"
on page 12 .
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 in connection with the insurance
program established by the fund pursuant to an exemptive order issued
by the Securities and Exchange Commission or as otherwise 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)).
(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 15% 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 were 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 if: (i) at least 50% of an
issuer's assets, income, sales or profits are committed to, or derived
from, the business activity, or (ii) a third party has given the
issuer an industry or sector classification consistent with the
designated business activity. For Financial Services, an issuer
that derives more than 15% of revenues or profits from brokerage or
investment management activities is considered to be principally
engaged in the business activities of its named market sector.
For the fund's limitations on futures and options transactions, see
the section entitled "Limitations on Futures and Options Transactions"
on page 14 .
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 in connection with the insurance
program established by the fund pursuant to an exemptive order issued
by the Securities and Exchange Commission or as otherwise 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)).
(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 15% 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 were 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 if: (i) at least 50% of an
issuer's assets, income, sales or profits are committed to, or derived
from, the business activity, or (ii) a third party has given the
issuer an industry or sector classification consistent with the
designated business activity.
For the fund's limitations on futures and options transactions, see
the section entitled "Limitations on Futures and Options Transactions"
on page 15 .
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 in connection with the insurance
program established by the fund pursuant to an exemptive order issued
by the Securities and Exchange Commission or as otherwise 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)).
(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 15% 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 were 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 if: (i) at least 50% of an
issuer's assets, income, sales or profits are committed to, or derived
from, the business activity, or (ii) a third party has given the
issuer an industry or sector classification consistent with the
designated business activity.
For the fund's limitations on futures and options transactions, see
the section entitled "Limitations on Futures and Options Transactions"
on page 16 .
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 in connection with the insurance
program established by the fund pursuant to an exemptive order issued
by the Securities and Exchange Commission or as otherwise 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)).
(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 15% 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 were 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 if: (i) at least 50% of an
issuer's assets, income, sales or profits are committed to, or derived
from, the business activity, or (ii) a third party has given the
issuer an industry or sector classification consistent with the
designated business activity.
For the fund's limitations on futures and options transactions, see
the section entitled "Limitations on Futures and Options Transactions"
on page 17 .
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 in connection with the insurance
program established by the fund pursuant to an exemptive order issued
by the Securities and Exchange Commission or as otherwise 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)).
(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 15% 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 were 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 if: (i) at least 50% of an
issuer's assets, income, sales or profits are committed to, or derived
from, the business activity, or (ii) a third party has given the
issuer an industry or sector classification consistent with the
designated business activity.
For the fund's limitations on futures and options transactions, see
the section entitled "Limitations on Futures and Options Transactions"
on page 18 .
ADVISOR FINANCIAL SERVICES FUND. The extent to which the fund
may invest in a company that engages in securities-related activities
is limited by federal securities laws.
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 Securities and Exchange Commission (SEC), the Board of Trustees
has established and periodically reviews procedures applicable to
transactions involving affiliated financial institutions.
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.
CASH MANAGEMENT. A fund can hold uninvested cash or can invest it in
cash equivalents such as money market securities, repurchase
agreements or shares of money market funds. Generally, these
securities offer less potential for gains than other types of
securities.
CENTRAL CASH FUNDS are money market funds managed by FMR or its
affiliates that seek to earn a high level of current income (free from
federal income tax in the case of a municipal money market fund) while
maintaining a stable $1.00 share price. The funds comply with
industry-standard requirements for money market funds regarding the
quality, maturity and diversification of their investments.
COMMON STOCK represents an equity or ownership interest in an issuer.
In the event an issuer is liquidated or declares bankruptcy, the
claims of owners of bonds and preferred stock take precedence over the
claims of those who own common stock.
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.
COMPANIES "PRINCIPALLY ENGAGED" IN A DESIGNATED BUSINESS ACTIVITY. For
purposes of each fund's policy of investing at least 80% of its assets
in securities of companies principally engaged in the business
activities of its named market sector, FMR considers a company to be
principally engaged in a designated business activity if: (i) at least
50% of a company's assets, income, sales or profits are committed to,
or derived from, the business activity, or (ii) a third party has
given the company an industry or sector classification consistent with
the designated business activity. For Financial Services, an issuer
that derives more than 15% of revenues or profits from brokerage or
investment management activities is considered to be principally
engaged in the business activities of its named market sector.
DEBT SECURITIES are used by issuers to borrow money. The issuer
usually pays a fixed, variable or floating rate of interest, and must
repay the amount borrowed at the maturity of the security. Some debt
securities, such as zero coupon bonds, do not pay interest but are
sold at a deep discount from their face values. Debt securities
include corporate bonds, government securities, and mortgage and other
asset-backed 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. 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. 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. For example, many
foreign countries are less prepared than the United States to properly
process and calculate information related to dates from and after
January 1, 2000. As a result, some foreign markets, brokers, banks or
securities depositories could experience at least temporary
disruptions, which could result in difficulty buying and selling
securities in certain foreign markets and pricing foreign investments,
and foreign issuers could fail to pay timely dividends, interest or
principal. 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 currency 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.
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: 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.
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. 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 SECURITIES cannot be sold or disposed of in the ordinary
course of business at approximately the prices at which they are
valued. Difficulty in selling securities may result in a loss or may
be costly to a fund. 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
securities. In determining the liquidity of a fund's investments, FMR
may consider various factors, including (1) the frequency and volume
of trades and quotations, (2) the number of dealers and prospective
purchasers in the marketplace, (3) dealer undertakings to make a
market , and (4) the nature of the security and the market in
which it trades (including any demand, put or tender features, the
mechanics and other requirements for transfer, any letters of credit
or other credit enhancement features, any ratings, the number of
holders, the method of soliciting offers, the time required to dispose
of the security, and the ability to assign or offset the rights and
obligations of the security).
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.
Advisor Natural Resources may purchase securities indexed to the price
of precious metals as an alternative to direct investment in precious
metals. Because the value of these securities is directly linked to
the price of gold or other precious metals, they involve risks and
pricing characteristics similar to direct investments in precious
metals. The fund will purchase precious metals-indexed securities only
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.
INVESTMENT-GRADE DEBT SECURITIES. Investment-grade debt securities are
medium and high-quality securities. Some may possess speculative
characteristics and may be more sensitive to economic changes and to
changes in the financial conditions of issuers. A debt security is
considered to be investment-grade if it is rated investment-grade by
Moody's Investors Service, Standard & Poor's, Duff & Phelps Credit
Rating Co., or Fitch IBCA Inc., or is unrated but considered to be of
equivalent quality by FMR.
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, or there may be a requirement
that a fund supply additional cash to a borrower on demand.
Purchasers of loans and other forms of direct indebtedness depend
primarily upon the creditworthiness of the borrower for payment of
interest and repayment of principal. If scheduled interest or
principal payments are not made, the value of the instrument may be
adversely affected. Loans that are fully secured provide more
protections than an unsecured loan in the event of failure to make
scheduled interest or principal payments. However, there is no
assurance that the liquidation of collateral from a secured loan would
satisfy the borrower's obligation, or that the collateral could be
liquidated. Indebtedness of borrowers whose creditworthiness is poor
involves substantially greater risks and may be highly speculative.
Borrowers that are in bankruptcy or restructuring may never pay off
their indebtedness, or may pay only a small fraction of the amount
owed. Direct indebtedness of developing countries also involves a risk
that the governmental entities responsible for the repayment of the
debt may be unable, or unwilling, to pay interest and repay principal
when due.
Investments in loans through direct assignment of a financial
institution's interests with respect to a loan may involve additional
risks. For example, if a loan is foreclosed, the purchaser could
become part owner of any collateral, and would bear the costs and
liabilities associated with owning and disposing of the collateral. In
addition, it is conceivable that under emerging legal theories of
lender liability, a purchaser could be held liable as a co-lender.
Direct debt instruments may also involve a risk of insolvency of the
lending bank or other intermediary.
A loan is often administered by a bank or other financial institution
that acts as agent for all holders. The agent administers the terms of
the loan, as specified in the loan agreement. Unless, under the terms
of the loan or other indebtedness, the purchaser has direct recourse
against the borrower, the purchaser may have to rely on the agent to
apply appropriate credit remedies against a borrower. If assets held
by the agent for the benefit of a purchaser were determined to be
subject to the claims of the agent's general creditors, the purchaser
might incur certain costs and delays in realizing payment on the loan
or loan participation and could suffer a loss of principal or
interest.
Direct indebtedness may include letters of credit, revolving credit
facilities, or other standby financing commitments that obligate
purchasers to make additional cash payments on demand. These
commitments may have the effect of requiring a purchaser to increase
its investment in a borrower at a time when it would not otherwise
have done so, even if the borrower's condition makes it unlikely that
the amount will ever be repaid.
Each fund limits the amount of total assets that it will invest in any
one issuer or in issuers within the same industry (see each fund's
investment limitations). For purposes of these limitations, a fund
generally will treat the borrower as the "issuer" of indebtedness held
by the fund. In the case of loan participations where a bank or other
lending institution serves as financial intermediary between a fund
and the borrower, if the participation does not shift to the fund the
direct debtor-creditor relationship with the borrower, SEC
interpretations require a fund, in appropriate circumstances, to treat
both the lending bank or other lending institution and the borrower as
"issuers" for these purposes. Treating a financial intermediary as an
issuer of indebtedness may restrict a fund's ability to invest in
indebtedness related to a single financial intermediary, or a group of
intermediaries engaged in the same industry, even if the underlying
borrowers represent many different companies and industries.
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.
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. 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.
Because 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.
PRECIOUS METALS. Precious metals, such as gold, silver, platinum and
palladium, at times have been subject to substantial price
fluctuations over short periods of time and may be affected by
unpredictable 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 prices of gold and other precious metals, however, are
less subject to local and company-specific factors than securities of
individual companies. As a result, precious metals may be more or less
volatile in price than securities of companies engaged in precious
metals-related businesses. Investments in precious metals can present
concerns such as delivery, storage and maintenance, possible
illiquidity , and the unavailability of accurate market valuations.
Although precious metals can be purchased in any form, including
bullion and coins, FMR intends to purchase only those forms of
precious metals that are readily marketable and that can be stored in
accordance with custody regulations applicable to mutual funds. A fund
may incur higher custody and transaction costs for precious metals
than for securities. Also, precious metals investments do not pay
income.
For a 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 requirement
could cause a fund to hold or sell precious metals or securities when
it would not otherwise do so.
PREFERRED STOCK represents an equity or ownership interest in
an issuer that pays dividends at a specified rate and that has
precedence over common stock in the payment of dividends. In the event
an issuer is liquidated or declares bankruptcy, the claims of owners
of bonds take precedence over the claims of those who own preferred
and common stock.
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 involve an agreement to purchase a security and
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. The value of the security purchased
may be more or less than the price at which the counterparty has
agreed to purchase the security. In addition, delays or losses could
result if the other party to the agreement defaults or becomes
insolvent. The funds will engage in repurchase agreement transactions
with parties whose creditworthiness has been reviewed and found
satisfactory by FMR.
RESTRICTED SECURITIES are subject to legal restrictions on their sale.
Difficulty in selling securities may result in a loss or be costly to
a fund. 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, the holder of a registered security
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, the holder 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. 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 OF OTHER INVESTMENT COMPANIES, including shares of
closed-end investment companies, unit investment trusts, and open-end
investment companies, represent interests in professionally managed
portfolios that may invest in any type of instrument. Investing in
other investment companies involves substantially the same risks as
investing directly in the underlying instruments, but may involve
additional expenses at the investment company-level, such as portfolio
management fees and operating expenses. Certain types of investment
companies, such as closed-end investment companies, issue a fixed
number of shares that trade on a stock exchange or over-the-counter at
a premium or a discount to their net asset value. Others are
continuously offered at net asset value, but may also be traded in the
secondary market.
The extent to which a fund can invest in securities of other
investment companies is limited by federal securities laws.
SECURITIES LENDING. A fund may lend securities to parties such as
broker-dealers or other institutions, 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, earn additional income. The borrower
provides the fund with collateral in an amount at least equal to the
value of the securities loaned. The fund maintains the ability to
obtain the right to vote or consent on proxy proposals involving
material events affecting securities loaned. If the borrower defaults
on its obligation to return the securities loaned because of
insolvency or other reasons, a fund could experience delays and costs
in recovering the securities loaned or in gaining access to the
collateral. These delays and costs could be greater for foreign
securities. If a fund is not able to recover the securities loaned, a
fund may sell the collateral and purchase a replacement investment in
the market. The value of the collateral could decrease below the value
of the replacement investment by the time the replacement investment
is purchased. Loans will be made only to parties deemed by FMR to be
in good standing and when, in FMR's judgment, the income earned would
justify the risks.
Cash received as collateral through loan transactions may be invested
in other eligible securities. Investing this cash subjects that
investment, as well as the securities loaned, to market appreciation
or depreciation.
SHORT SALES "AGAINST THE BOX" are short sales of securities that a
fund owns or has the right to obtain (equivalent in kind or amount to
the securities sold short). 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.
TEMPORARY DEFENSIVE POLICIES. Each fund reserves the right to invest
without limitation in preferred stocks and investment-grade debt
instruments for temporary, defensive purposes.
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.
ZERO COUPON BONDS do not make interest payments; instead, they are
sold at a discount from their face value and are redeemed at face
value when they mature. Because zero coupon bonds do not pay current
income, their prices can be more volatile than other types of
fixed-income securities when interest rates change. In calculating a
fund's dividend, a portion of the difference between a zero coupon
bond's purchase price and its face value is considered income.
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 investment
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
investment 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 investment 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 funds and to use the research services of 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 investment 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.
For the fiscal periods ended July 31, 1999 and 1998, the portfolio
turnover rates for each fund are presented in the table below.
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.
Turnover Rates 1999 1998
Consumer Industries 80% 144%
Cyclical Industries 115% 100%
Financial Services 38% 54%
Health Care 98% 85%
Natural Resources 99% 97%
Technology 170% 348%
Utilities Growth 149% 151%
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 Ended Total Amount Paid
CONSUMER INDUSTRIES July
1999 $ 39,783
1998 $ 27,151
1997* $ 18,632
CYCLICAL INDUSTRIES July
1999 $ 12,426
1998 $ 5,532
1997* $ 7,727
FINANCIAL SERVICES July
1999 $ 178,281
1998 $ 131,749
1997* $ 33,913
HEALTH CARE July
1999 $ 789,876
1998 $ 175,518
1997* $ 56,012
NATURAL RESOURCES July
1999 $ 1,008,405
1998 $ 1,439,851
1997* $ 1,806,488
TECHNOLOGY July
1999 $ 503,119
1998 $ 299,227
1997* $ 129,089
UTILITIES GROWTH July
1999 $ 221,415
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
Of the following tables, the first shows the total amount of brokerage
commissions paid by each fund to NFSC and FBS, as applicable,
for the past three fiscal years. 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 1999.
NFSC and FBS are paid on a commission basis.
Total Amount Paid
Fiscal Year Ended To NFSC To FBS
CONSUMER INDUSTRIES July
1999 $ 5,940 $ 0
1998 $ 3,349 $ 0
1997* $ 3,290 $ 0
CYCLICAL INDUSTRIES July
1999 $ 2,025 $ 0
1998 $ 806 $ 0
1997* $ 629 $ 0
FINANCIAL SERVICES July
1999 $ 12,796 $ 0
1998 $ 24,154 $ 0
1997* $ 6,594 $ 0
HEALTH CARE July
1999 $ 48,795 $ 0
1998 $ 26,935 $ 492
1997* $ 5,393 $ 372
NATURAL RESOURCES July
1999 $ 77,714 $ 0
1998 $ 135,628 $ 0
1997* $ 208,562 $ 8,250
TECHNOLOGY July
1999 $ 48,057 $ 0
1998 $ 46,656 $ 0
1997* $ 23,843 $ 0
UTILITIES GROWTH July
1999 $ 11,168 $ 0
1998 $ 6,775 $ 0
1997* $ 451 $ 0
* 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
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Fiscal Year Ended 1999 % of Aggregate Commissions % of Aggregate Dollar
Paid to NFSC(dagger) Amount of Transactions
Effected through NFSC
Consumer Industries July 14.93% 28.75%
Cyclical Industries July 16.30% 28.88%
Financial Services July 7.18% 13.91%
Health Care July 6.18% 15.47%
Natural Resources July 7.70% 15.36%
Technology July 9.55% 15.48%
Utilities Growth July 5.04% 11.18%
</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 is a result of the low
commission rates charged by NFSC.
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
1999.
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Fiscal Year Ended 1999 $ Amount of Commissions Paid $ Amount of Brokerage
to Firms that Provided Transactions Involved*
Research Services*
Consumer Industries July $ 31,978 $ 27,488,937
Cyclical Industries July 9,746 8,885,525
Financial Services July 166,283 173,998,634
Health Care July 743,268 725,353,869
Natural Resources July 899,705 543,694,432
Technology July 489,482 701,233,828
Utilities Growth July 186,061 183,973,993
</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 investment 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 investment accounts.
Simultaneous transactions are inevitable when several funds and
investment 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 investment 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
Each class's net asset value per share (NAV) is the value of a single
share. The NAV of each class is computed by adding the class's pro
rata share of the value of the applicable fund's investments, cash,
and other assets, subtracting the class's pro rata share of the
applicable fund's liabilities, subtracting the liabilities allocated
to the class, and dividing the result by the number of shares of that
class that are outstanding.
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 closing 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.
Independent brokers or quotation services provide prices of foreign
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 event that
is expected to materially affect the value of a portfolio security
occurs after the close of an exchange or market on which that security
is traded, then that security will be valued 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.
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 value of such securities. For example,
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. In making a good faith determination of the
value of a security, the committee may review price movements in
futures contracts and ADRs, market and trading trends, the bid/ask
quotes of brokers and off-exchange institutional trading.
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
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.
RETURN CALCULATIONS. 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 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. A cumulative return reflects actual
performance over a stated period of time. Average annual 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
return of 100% over ten years would produce an average annual return
of 7.18%, which is the steady annual rate of return that would equal
100% growth on a compounded basis in ten years. While average annual
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
returns represent averaged figures as opposed to the actual
year-to-year performance of a class.
In addition to average annual returns, a class may quote unaveraged or
cumulative returns reflecting the simple change in value of an
investment over a stated period. Average annual and cumulative 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. 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 return.
Returns may be quoted on a before-tax or after-tax basis. Returns may
or may not include the effect of a class's maximum sales charge or the
effect of a fund's short-term trading fee. Excluding a class's sales
charge and/or short-term trading fee from a return calculation
produces a higher return figure. Returns 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 NAVs, adjusted
NAVs, and benchmark indexes 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 NAVs are 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 are shown in the table below.
<TABLE>
<CAPTION>
Fund 13-Week Short-Term Moving 39-Week Short-Term Moving
Average* Average*
<S> <C> <C>
Consumer Industries - Class A $ 16.24 $ 15.72
Consumer Industries - Class T $ 16.17 $ 15.67
Consumer Industries - Class B $ 15.99 $ 15.52
Consumer Industries - Class C $ 16.01 $ 15.54
Consumer Industries - $ 16.33 $ 15.80
Institutional Class
Cyclical Industries - Class A $ 14.39 $ 13.20
Cyclical Industries - Class T $ 14.34 $ 13.16
Cyclical Industries - Class B $ 14.17 $ 13.01
Cyclical Industries - Class C $ 14.19 $ 13.03
Cyclical Industries - $ 14.54 $ 13.33
Institutional Class
Financial Services - Class A $ 18.15 $ 17.39
Financial Services - Class T $ 18.08 $ 17.33
Financial Services - Class B $ 17.88 $ 17.15
Financial Services - Class C $ 17.90 $ 17.18
Financial Services - $ 18.25 $ 17.47
Institutional Class
Health Care - Class A $ 18.59 $ 18.33
Health Care - Class T $ 18.47 $ 18.22
Health Care - Class B $ 18.25 $ 18.02
Health Care - Class C $ 18.26 $ 18.03
Health Care - Institutional $ 18.66 $ 18.38
Class
Natural Resources - Class A $ 21.41 $ 18.57
Natural Resources - Class T $ 21.63 $ 18.77
Natural Resources - Class B $ 21.23 $ 18.44
Natural Resources - Class C $ 21.36 $ 18.56
Natural Resources - $ 21.69 $ 18.79
Institutional Class
Technology - Class A $ 24.40 $ 22.16
Technology - Class T $ 24.22 $ 22.01
Technology - Class B $ 23.91 $ 21.75
Technology - Class C $ 23.97 $ 21.80
Technology - Institutional $ 24.48 $ 22.22
Class
Utilities Growth - Class A $ 20.08 $ 17.83
Utilities Growth - Class T $ 20.01 $ 17.77
Utilities Growth - Class B $ 19.81 $ 17.61
Utilities Growth - Class C $ 19.80 $ 17.61
Utilities Growth - $ 20.14 $ 17.86
Institutional Class
</TABLE>
* On July 30, 1999
HISTORICAL FUND RESULTS. The following table shows each class's return
for the fiscal period ended July 31, 1999.
Class A and Class T have a maximum front-end sales charge of 5.75%
and 3.50%, respectively, which is included in the average annual and
cumulative returns. Class B and Class C have a maximum CDSC of 5.00%
and 1.00%, respectively, which is included in the average annual and
cumulative returns.
Class A, Class T, Class B, and Class C 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 returns.
Returns do not include the effect of the fund's 1.00% short-term
trading fee, applicable to shares held less than 60 days.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Average Annual Returns Cumulative Returns
One Year Five Years Ten Years/ Life of Fund* One Year Five Years Ten Years/ Life of Fund*
Consumer Industries - Class A 6.97% N/A 23.57% 6.97% N/A 85.01%
Consumer Industries - Class T 9.24% N/A 24.15% 9.24% N/A 87.53%
Consumer Industries - Class B 7.71% N/A 24.51% 7.71% N/A 89.11%
Consumer Industries - Class C 11.72% N/A 25.19% 11.72% N/A 92.15%
Consumer Industries - 13.87% N/A 26.43% 13.87% N/A 97.73%
Institutional Class
Cyclical Industries - Class A 4.44% N/A 16.04% 4.44% N/A 54.09%
Cyclical Industries - Class T 6.70% N/A 16.75% 6.70% N/A 56.87%
Cyclical Industries - Class B 5.01% N/A 16.90% 5.01% N/A 57.45%
Cyclical Industries - Class C 8.94% N/A 17.62% 8.94% N/A 60.29%
Cyclical Industries - 11.15% N/A 18.80% 11.15% N/A 65.01%
Institutional Class
Financial Services - Class A -5.10% N/A 22.75% -5.10% N/A 81.44%
Financial Services - Class T -2.99% N/A 23.44% -2.99% N/A 84.45%
Financial Services - Class B -4.59% N/A 23.76% -4.59% N/A 85.85%
Financial Services - Class C -0.86% N/A 24.40% -0.86% N/A 88.66%
Financial Services - 1.12% N/A 25.60% 1.12% N/A 93.98%
Institutional Class
Health Care - Class A 7.26% N/A 24.99% 7.26% N/A 91.27%
Health Care - Class T 9.57% N/A 25.65% 9.57% N/A 94.23%
Health Care - Class B 7.96% N/A 25.93% 7.96% N/A 95.46%
Health Care - Class C 12.04% N/A 26.54% 12.04% N/A 98.24%
Health Care - Institutional 14.17% N/A 27.85% 14.17% N/A 104.25%
Class
Natural Resources - Class A 14.50% 10.98% 12.08% 14.50% 68.32% 212.92%
Natural Resources - Class T 17.06% 11.49% 12.34% 17.06% 72.26% 220.24%
Natural Resources - Class B 15.57% 11.48% 12.47% 15.57% 72.17% 223.80%
Natural Resources - Class C 19.72% 11.68% 12.44% 19.72% 73.77% 223.05%
Natural Resources - 21.95% 12.62% 12.91% 21.95% 81.17% 236.81%
Institutional Class
Technology - Class A 58.03% N/A 39.74% 58.03% N/A 164.49%
Technology - Class T 61.44% N/A 40.45% 61.44% N/A 168.45%
Technology - Class B 61.49% N/A 41.04% 61.49% N/A 171.76%
Technology - Class C 65.60% N/A 41.54% 65.60% N/A 174.56%
Technology - Institutional 68.23% N/A 42.90% 68.23% N/A 182.30%
Class
Utilities Growth - Class A 30.85% N/A 33.59% 30.85% N/A 132.07%
Utilities Growth - Class T 33.61% N/A 34.31% 33.61% N/A 135.75%
Utilities Growth - Class B 32.76% N/A 34.82% 32.76% N/A 138.35%
Utilities Growth - Class C 36.72% N/A 35.41% 36.72% N/A 141.36%
Utilities Growth - 39.31% N/A 36.74% 39.31% N/A 148.34%
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.
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 , each class's returns would have been lower, except for
Class T of Financial Services, Health Care and Technology.
The following tables show the income and capital elements of each
class's cumulative 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 S&P 500 and DJIA comparisons are provided to
show how each class's return compared to the record of a market
capitalization-weighted 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, 1999 or life of fund, as applicable, assuming
all distributions were reinvested. 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)
to July 31, 1999, a hypothetical $10,000 investment in Cla ss A
of Consumer Industries would have grown to $18,501, including the
effect of Class A's maximum sales charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
CONSUMER INDUSTRIES - CLASS A
Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value
Investment Distributions Gain Distributions
1999 $ 15,089 $ 27 $ 3,385 $ 18,501
1998 $ 14,213 $ 25 $ 2,064 $ 16,302
1997* $ 12,705 $ 12 $ 71 $ 12,788
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
CONSUMER INDUSTRIES - CLASS A INDEXES
Fiscal Year Ended S&P 500 DJIA Cost of Living**
1999 $ 21,270 $ 19,835 $ 10,598
1998 $ 17,695 $ 16,274 $ 10,375
1997* $ 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 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 v alue at
the time they were reinvested) amounted to $12,624. 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 $2,432 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)
to July 31, 1999, a hypothetical $10,000 investment in Cla ss T
of Consumer Industries would have grown to $ 18,753 , including
the effect of Class T's maximum sales charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
CONSUMER INDUSTRIES - CLASS T
Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value
Investment Distributions Gain Distributions
1999 $ 15,372 $ 0 $ 3,381 $ 18,753
1998 $ 14,475 $ 0 $ 2,092 $ 16,567
1997* $ 12,979 $ 0 $ 73 $ 13,052
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
CONSUMER INDUSTRIES - CLASS T INDEXES
Fiscal Year Ended S&P 500 DJIA Cost of Living**
1999 $ 21,270 $ 19,835 $ 10.598
1998 $ 17,695 $ 16,274 $ 10,375
1997* $ 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 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 va lue at
the time they were reinvested) amounted to $12,609. 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 an d $2,441 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)
to July 31, 1999, a hypothetical $10,000 investment in C lass B
of Consumer Industries would have grown to $ 18,911 , including
the effect of Class B's maximum CDSC.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
CONSUMER INDUSTRIES - CLASS B
Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value
Investment Distributions Gain Distributions
1999 $ 15,460 $ 0 $ 3,451 $ 18,911
1998 $ 14,910 $ 0 $ 2,134 $ 17,044
1997* $ 13,420 $ 0 $ 75 $ 13,495
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
CONSUMER INDUSTRIES - CLASS B INDEXES
Fiscal Year Ended S&P 500 DJIA Cost of Living**
1999 $ 21,270 $ 19,835 $ 10,598
1998 $ 17,695 $ 16,274 $ 10,375
1997* $ 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
divi de nds and capital gain distributions for the period covered
(their cash value at the time they were reinvested) amounted to
$12,680. If distributions had not been reinvested, the amount of
distributions earned from the class over time would have been smaller,
and cash pa yments for the period would have amounted to $0 for
dividends and $2,510 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)
to July 31, 1999, a hypothetical $10,000 investment in Clas s C
of Consumer Industries would have grown to $19,215.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
CONSUMER INDUSTRIES - CLASS C
Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value
Investment Distributions Gain Distributions
1999 $ 15,718 $ 0 $ 3,497 $ 19,215
1998 $ 14,891 $ 0 $ 2,156 $ 17,047
1997* $ 13,420 $ 0 $ 75 $ 13,495
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
CONSUMER INDUSTRIES - CLASS C INDEXES
Fiscal Year Ended S&P 500 DJIA Cost of Living**
1999 $ 21,270 $ 19,835 $ 10,598
1998 $ 17,695 $ 16,274 $ 10,375
1997* $ 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 divi dends
and capital gain distributions for the period covered (their cash
value at the time they were reinvested) amounted to $12,721. If
distributions had not been reinvested, the amount of distributions
earned from the class over time would have been smaller, and cash
pa yments for the period would have amounted to $0 for dividends
and $2,545 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)
to July 31, 1999, a hypothetical $10,000 investment in
Insti tutional Class of Consumer Industries would have grown to
$19,773.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
CONSUMER INDUSTRIES - INDEXES
INSTITUTIONAL CLASS
Fiscal Year
Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value S&P 500
Investment Distributions Gain Distributions
1999 $ 16,110 $ 41 $ 3,622 $ 19,773 $ 21,270
1998 $ 15,120 $ 39 $ 2,205 $ 17,364 $ 17,695
1997* $ 13,510 $ 13 $ 75 $ 13,598 $ 14,835
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
CONSUMER INDUSTRIES -
INSTITUTIONAL CLASS
Fiscal Year Ended DJIA Cost of Living**
1999 $ 19,835 $ 10,598
1998 $ 16,274 $ 10,375
1997* $ 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
rei nvested) amounted to $12,807. If distributions had not been
reinvested, the amount of distributions earned from the class over
ti me would have been smaller, and cash payments for the period
would have amounted to $30 for dividends and $2,590 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)
to July 31, 1999, a hypothetical $10,000 investment in Cl ass A
of Cyclical Industries would have grown to $15, 409 , including
the effect of Class A's maximum sales charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
CYCLICAL INDUSTRIES - CLASS A
Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value
Investment Distributions Gain Distributions
1999 $ 13,318 $ 12 $ 2,079 $ 15,409
1998 $ 12,780 $ 12 $ 1,113 $ 13,905
1997* $ 13,007 $ 11 $ 93 $ 13,111
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
CYCLICAL INDUSTRIES - CLASS A INDEXES
Fiscal Year Ended S&P 500 DJIA Cost of Living**
1999 $ 21,270 $ 19,835 $ 10,598
1998 $ 17,695 $ 16,274 $ 10,375
1997* $ 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 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 va lue at
the time they were reinvested) amounted to $11,740. 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
$1,649 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)
to July 31, 1999, a hypothetical $10,000 investment in Class T
of Cyclical Industries would have grown to $15,687, including the
effect of Class T's maximum sales charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
CYCLICAL INDUSTRIES - CLASS T
Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value
Investment Distributions Gain Distributions
1999 $ 13,578 $ 12 $ 2,097 $ 15,687
1998 $ 13,037 $ 12 $ 1,138 $ 14,187
1997* $ 13,288 $ 12 $ 95 $ 13,395
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
CYCLICAL INDUSTRIES - CLASS T INDEXES
Fiscal Year Ended S&P 500 DJIA Cost of Living**
1999 $ 21,270 $ 19,835 $ 10,598
1998 $ 17,695 $ 16,274 $ 10,375
1997* $ 14,835 $ 14,816 $ 10,203
</TABLE>
* From September 3, 1996 (commencement of operation s).
** 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 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 val ue at
the time they were reinvested) amounted to $11,760. If distributions
had not been reinvested, the amount of distributions earne d
from the class over time would have been smaller, and cash payments
for the period would have amounted to $10 for divi dend s and
$1,669 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)
to July 31, 1999, a hypothetical $10,000 investment in Clas s B
of Cyclical Industries would have grown to $ 15,745 , including
the effect of Class B's maximum CDSC.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
CYCLICAL INDUSTRIES - CLASS B
Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value
Investment Distributions Gain Distributions
1999 $ 13,590 $ 12 $ 2,143 $ 15,745
1998 $ 13,400 $ 12 $ 1,174 $ 14,586
1997* $ 13,750 $ 12 $ 99 $ 13,861
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
CYCLICAL INDUSTRIES - CLASS B INDEXES
Fiscal Year Ended S&P 500 DJIA Cost of Living**
1999 $ 21,270 $ 19,835 $ 10,598
1998 $ 17,695 $ 16,274 $ 10,375
1997* $ 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 $11,813. If
distributions had not been reinvested, the amount of distributions
earned from the class over time would have been sma l ler,
and cash payments for the period would have amounted to $10 for
dividends and $1,720 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)
to July 31, 1999, a hypothetical $10,000 investment in Cla ss C
of Cyclical Industries would have grown to $16,029.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
CYCLICAL INDUSTRIES - CLASS C
Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value
Investment Distributions Gain Distributions
1999 $ 13,855 $ 12 $ 2,162 $ 16,029
1998 $ 13,396 $ 12 $ 1,172 $ 14,580
1997* $ 13,750 $ 12 $ 99 $ 13,861
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
CYCLICAL INDUSTRIES - CLASS C INDEXES
Fiscal Year Ended S&P 500 DJIA Cost of Living**
1999 $ 21,270 $ 19,835 $ 10,598
1998 $ 17,695 $ 16,274 $ 10,375
1997* $ 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 $11,831. If
distributi ons had not been reinvested, the amount of
distributions earned from the class over time would have been smaller,
and cash pay ments for the period would have amounted to $10 for
dividends and $1,736 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)
to July 31, 1999, a hypothetical $10,000 investment in
Instit utional Class of Cyclical Industries would have grown to
$16,501.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
CYCLICAL INDUSTRIES - INDEXES
INSTITUTIONAL CLASS
Fiscal Year
Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value S&P 500
Investment Distributions Gain Distributions
1999 $ 14,280 $ 25 $ 2,196 $ 16,501 $ 21,270
1998 $ 13,680 $ 25 $ 1,142 $ 14,847 $ 17,695
1997* $ 13,840 $ 25 $ 99 $ 13,964 $ 14,835
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
CYCLICAL INDUSTRIES -
INSTITUTIONAL CLASS
Fiscal Year Ended DJIA Cost of Living**
1999 $ 19,835 $ 10,598
1998 $ 16,274 $ 10,375
1997* $ 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
re invested) amounted to $11,835. If distributions had not been
reinvested, the amount of distributions earned from the class over
time woul d have been smaller, and cash payments for the period
would have amounted to $20 for dividends and $1,730 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)
to July 31, 1999, a hypothetical $10,000 investment in Class A
of Financial Services would have grown to $ 18,144 , including
the effect of Class A's maximum sales charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
FINANCIAL SERVICES - CLASS A
Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value
Investment Distributions Gain Distributions
1999 $ 16,484 $ 140 $ 1,520 $ 18,144
1998 $ 17,662 $ 84 $ 274 $ 18,020
1997* $ 14,241 $ 12 $ 12 $ 14,265
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
FINANCIAL SERVICES - CLASS A INDEXES
Fiscal Year Ended S&P 500 DJIA Cost of Living**
1999 $ 21,270 $ 19,835 $ 10,598
1998 $ 17,695 $ 16,274 $ 10,375
1997* $ 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 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 val ue at
the time they were reinvested) amounted to $11,322. If distributions
had not been reinvested, the amount of distributions ear ned
from the class over time would have been smaller, and cash payments
for the period would have amounted to $113 for div idends and
$1,188 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)
to July 31, 1999, a hypothetical $10,000 investment in Cla ss T
of Financial Services would have grown to $18,445, including the
effect of Class T's maximum sales charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
FINANCIAL SERVICES - CLASS T
Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value
Investment Distributions Gain Distributions
1999 $ 16,810 $ 83 $ 1,552 $ 18,445
1998 $ 18,007 $ 61 $ 280 $ 18,348
1997* $ 14,543 $ 12 $ 12 $ 14,567
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
FINANCIAL SERVICES - CLASS T INDEXES
Fiscal Year Ended S&P 500 DJIA Cost of Living**
1999 $ 21,270 $ 19,835 $ 10,598
1998 $ 17,695 $ 16,274 $ 10,375
1997* $ 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 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 valu e at
the time they were reinvested) amounted to $11,303. If distributions
had not been reinvested, the amount of distributions earned from
th e class over time would have been smaller, and cash payments for
the period would have amounted to $68 for dividen ds and $1,216
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)
to July 31, 1999, a hypothetical $10,000 investment in Class B
of Financial Services would have grown to $ 18,585 , including
the effect of Class B's maximum CDSC.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
FINANCIAL SERVICES - CLASS B
Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value
Investment Distributions Gain Distributions
1999 $ 16,910 $ 74 $ 1,601 $ 18,585
1998 $ 18,520 $ 66 $ 289 $ 18,875
1997* $ 15,040 $ 12 $ 13 $ 15,065
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
FINANCIAL SERVICES - CLASS B INDEXES
Fiscal Year Ended S&P 500 DJIA Cost of Living**
1999 $ 21,270 $ 19,835 $ 10,598
1998 $ 17,695 $ 16,274 $ 10,375
1997* $ 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 $11,341. If
distributions had not been reinvested, the amount of
distributions earned from the class over time would have been smaller,
and cash payment s for the period would have amounted to $60 for
dividends and $1,260 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)
to July 31, 1999, a hypothetical $10,000 investment in Clas s C
of Financial Services would have grown to $18,866.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
FINANCIAL SERVICES - CLASS C
Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value
Investment Distributions Gain Distributions
1999 $ 17,172 $ 99 $ 1,595 $ 18,866
1998 $ 18,487 $ 77 $ 288 $ 18,852
1997* $ 15,040 $ 12 $ 13 $ 15,065
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
FINANCIAL SERVICES - CLASS C INDEXES
Fiscal Year Ended S&P 500 DJIA Cost of Living**
1999 $ 21,270 $ 19,835 $ 10,598
1998 $ 17,695 $ 16,274 $ 10,375
1997* $ 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 $11,357. 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 $80 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. 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)
to July 31, 1999, a hypothetical $10,000 investment in
Institutio nal Class of Financial Services would have grown to
$19,398.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
FINANCIAL SERVICES - INDEXES
INSTITUTIONAL CLASS
Fiscal Year
Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value S&P 500
Investment Distributions Gain Distributions
1999 $ 17,600 $ 178 $ 1,620 $ 19,398 $ 21,270
1998 $ 18,800 $ 92 $ 291 $ 19,183 $ 17,695
1997* $ 15,140 $ 25 $ 13 $ 15,178 $ 14,835
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
FINANCIAL SERVICES -
INSTITUTIONAL CLASS
Fiscal Year Ended DJIA Cost of Living**
1999 $ 19,835 $ 10,598
1998 $ 16,274 $ 10,375
1997* $ 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
reinveste d) amounted to $11,423. If distributions had not been
reinvested, the amount of distributions earned from the class over
time wou ld have been smaller, and cash payments for the period
would have amounted to $140 for dividends and $1,260 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)
to July 31, 1999, a hypothetical $10,000 investment in Class A
of Health Care would have grown to $19,127, including the effect
of Class A's maximum sales charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
HEALTH CARE - CLASS A INDEXES
Fiscal Year
Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value S&P 500
Investment Distributions Gain Distributions
1999 $ 17,455 $ 0 $ 1,672 $ 19,127 $ 21,270
1998 $ 15,740 $ 0 $ 1,067 $ 16,807 $ 17,695
1997* $ 13,289 $ 0 $ 0 $ 13,289 $ 14,835
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
HEALTH CARE - CLASS A
Fiscal Year Ended DJIA Cost of Living**
1999 $ 19,835 $ 10,598
1998 $ 16,274 $ 10,375
1997* $ 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 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 w ere reinvested) amounted to $11,233. If distributions had
not been reinvested, the amount of distributions earned fro m
the class over time would have been smaller, and cash payments for the
period would have amounted to $0 for dividends and $1,197 for
capit al 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)
to July 31, 1999, a hypothetical $10,000 investment in Class T
of Health Care would have grown to $19,423, including the effect of
Class T's maximum sales charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
HEALTH CARE - CLASS T INDEXES
Fiscal Year
Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value S&P 500
Investment Distributions Gain Distributions
1999 $ 17,756 $ 0 $ 1,667 $ 19,423 $ 21,270
1998 $ 16,029 $ 0 $ 1,077 $ 17,106 $ 17,695
1997* $ 13,558 $ 0 $ 0 $ 13,558 $ 14,835
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
HEALTH CARE - CLASS T
Fiscal Year Ended DJIA Cost of Living**
1999 $ 19,835 $ 10,598
1998 $ 16,274 $ 10,375
1997* $ 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 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 $11,232. If distributions had
not been reinvested, the amount of distributions earne d from
the class over time would have been smaller, and cash payments for the
period would have amounted to $0 for dividends and $1,197 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)
to July 31, 1999, a hypothetical $10,000 investment in Class B of
H ealth Care would have grown to $19,546, including the effect of
Class B's maximum CDSC.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
HEALTH CARE - CLASS B INDEXES
Fiscal Year
Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value S&P 500
Investment Distributions Gain Distributions
1999 $ 17,860 $ 0 $ 1,686 $ 19,546 $ 21,270
1998 $ 16,470 $ 0 $ 1,099 $ 17,569 $ 17,695
1997* $ 14,010 $ 0 $ 0 $ 14,010 $ 14,835
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
HEALTH CARE - CLASS B
Fiscal Year Ended DJIA Cost of Living**
1999 $ 19,835 $ 10,598
1998 $ 16,274 $ 10,375
1997* $ 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 $11,256. 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 $1,220 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)
to July 31, 1999, a hypothetical $10,000 investment in Class C
of Health Care would have grown to $19, 824 .
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
HEALTH CARE - CLASS C INDEXES
Fiscal Year
Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value S&P 500
Investment Distributions Gain Distributions
1999 $ 18,065 $ 0 $ 1,760 $ 19,824 $ 21,270
1998 $ 16,395 $ 0 $ 1,143 $ 17,538 $ 17,695
1997* $ 14,010 $ 0 $ 0 $ 14,010 $ 14,835
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
HEALTH CARE - CLASS C
Fiscal Year Ended DJIA Cost of Living**
1999 $ 19,835 $ 10,598
1998 $ 16,274 $ 10,375
1997* $ 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 $11,313. 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 $1,274 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)
to July 31, 1999, a hypothetical $10,000 investment in
Instituti onal Class of Health Care would have grown to $20,425.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
HEALTH CARE - INSTITUTIONAL
CLASS
Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value
Investment Distributions Gain Distributions
1999 $ 18,590 $ 0 $ 1,835 $ 20,425
1998 $ 16,730 $ 0 $ 1,159 $ 17,889
1997* $ 14,120 $ 0 $ 0 $ 14,120
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
HEALTH CARE - INSTITUTIONAL INDEXES
CLASS
Fiscal Year Ended S&P 500 DJIA Cost of Living**
1999 $ 21,270 $ 19,835 $ 10,598
1998 $ 17,695 $ 16,274 $ 10,375
1997* $ 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 $11,3 51. If distributions had not been reinvested,
the amount of distributions earned from the class over time would
have bee n smaller, and cash payments for the period would have
amounted to $0 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.
During the 10-year period ended July 31, 1999, a hypothetical $10,000
investment in Class A of Natural Resources would have grown to
$3 1,292, including the effect of Class A's maximum sales
charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
NATURAL RESOURCES - CLASS A
Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value
Investment Distributions Gain Distributions
1999 $ 15,899 $ 329 $ 15,064 $ 31,292
1998 $ 13,700 $ 203 $ 11,856 $ 25,759
1997 $ 18,922 $ 282 $ 10,963 $ 30,167
1996 $ 16,275 $ 103 $ 7,875 $ 24,253
1995 $ 14,199 $ 90 $ 6,163 $ 20,452
1994 $ 12,362 $ 78 $ 5,082 $ 17,522
1993 $ 11,573 $ 74 $ 4,104 $ 15,751
1992 $ 10,307 $ 65 $ 2,232 $ 12,604
1991 $ 10,119 $ 64 $ 1,304 $ 11,487
1990 $ 10,163 $ 64 $ 847 $ 11,074
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
NATURAL RESOURCES - CLASS A INDEXES
Fiscal Year Ended S&P 500 DJIA Cost of Living
1999 $ 49,675 $ 52,013 $ 13,400
1998 $ 41,326 $ 42,674 $ 13,119
1997 $ 34,645 $ 38,850 $ 12,902
1996 $ 22,772 $ 25,618 $ 12,621
1995 $ 19,535 $ 21,339 $ 12,259
1994 $ 15,491 $ 16,624 $ 11,929
1993 $ 14,731 $ 15,209 $ 11,608
1992 $ 13,546 $ 14,157 $ 11,294
1991 $ 12,009 $ 12,248 $ 10,949
1990 $ 10,650 $ 11,339 $ 10,482
</TABLE>
Explanatory Notes: With an initial investment of $10,000 in Class A of
Natural Resources on August 1, 1988, assuming the 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 $22,460. If distributions had
not been reinvested, the amount of distributions earned fro m
the class over time would have been smaller, and cash payments for the
period would have amounted to $195 for dividend s and $8,492 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, 199 9 , a hypothetical
$10,000 investment in Class T of Natural Resources would have grown
to $32,0 24 , including the effect of Class T's maximum sales
charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
NATURAL RESOURCES - CLASS T
Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value
Investment Distributions Gain Distributions
1999 $ 16,449 $ 143 $ 15,432 $ 32,024
1998 $ 14,153 $ 107 $ 12,139 $ 26,399
1997 $ 19,507 $ 148 $ 11,291 $ 30,946
1996 $ 16,663 $ 106 $ 8,063 $ 24,832
1995 $ 14,538 $ 92 $ 6,310 $ 20,940
1994 $ 12,657 $ 80 $ 5,203 $ 17,940
1993 $ 11,850 $ 75 $ 4,202 $ 16,127
1992 $ 10,554 $ 66 $ 2,285 $ 12,905
1991 $ 10,361 $ 65 $ 1,335 $ 11,761
1990 $ 10,405 $ 67 $ 867 $ 11,339
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
NATURAL RESOURCES - CLASS T INDEXES
Fiscal Year Ended S&P 500 DJIA Cost of Living
1999 $ 49,675 $ 52,013 $ 13,400
1998 $ 41,326 $ 42,674 $ 13,119
1997 $ 34,645 $ 38,850 $ 12,902
1996 $ 22,772 $ 25,618 $ 12,621
1995 $ 19,535 $ 21,339 $ 12,259
1994 $ 15,491 $ 16,624 $ 11,929
1993 $ 14,731 $ 15,209 $ 11,608
1992 $ 13,546 $ 14,157 $ 11,294
1991 $ 12,009 $ 12,248 $ 10,949
1990 $ 10,650 $ 11,339 $ 10,482
</TABLE>
Explanatory Notes: With an initial investment of $10,000 in Class T of
Natural Resources on August 1, 1988, assuming the 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 rei nvested) amounted to $22,486. If
distributions had not been reinvested, the amount of distributions
earned from the class ove r time would have been smaller, and
cash payments for the period would have amounted to $81 for dividends
and $8,665 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, 1999, a hypothetical $10,000
investment in Class B of Natural Resources would have grown to
$32,380.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
NATURAL RESOURCES - CLASS B
Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value
Investment Distributions Gain Distributions
1999 $ 16,715 $ 106 $ 15,559 $ 32,380
1998 $ 14,436 $ 92 $ 12,328 $ 26,856
1997 $ 19,946 $ 127 $ 11,567 $ 31,640
1996 $ 17,130 $ 109 $ 8,290 $ 25,529
1995 $ 15,058 $ 95 $ 6,536 $ 21,689
1994 $ 13,116 $ 83 $ 5,392 $ 18,591
1993 $ 12,279 $ 78 $ 4,355 $ 16,712
1992 $ 10,936 $ 69 $ 2,368 $ 13,373
1991 $ 10,737 $ 68 $ 1,383 $ 12,188
1990 $ 10,783 $ 68 $ 899 $ 11,750
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
NATURAL RESOURCES - CLASS B INDEXES
Fiscal Year Ended S&P 500 DJIA Cost of Living
1999 $ 49,675 $ 52,013 $ 13,400
1998 $ 41,326 $ 42,674 $ 13,119
1997 $ 34,645 $ 38,850 $ 12,902
1996 $ 22,772 $ 25,618 $ 12,621
1995 $ 19,535 $ 21,339 $ 12,259
1994 $ 15,491 $ 16,624 $ 11,929
1993 $ 14,731 $ 15,209 $ 11,608
1992 $ 13,546 $ 14,157 $ 11,294
1991 $ 12,009 $ 12,248 $ 10,949
1990 $ 10,650 $ 11,339 $ 10,482
</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 distrib utions for the period covered (their cash
value at the time they were reinvested) amounted to $22,699. 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 wo uld have amounted to $61 for
dividends and $8,864 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, 1999, a hypothetical $10,000
investment in Class C of Natural Resources would have grown to
$ 32, 305 .
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
NATURAL RESOURCES - CLASS C
Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value
Investment Distributions Gain Distributions
1999 $ 16,595 $ 125 $ 15,585 $ 32,305
1998 $ 14,354 $ 91 $ 12,316 $ 26,761
1997 $ 19,946 $ 127 $ 11,567 $ 31,640
1996 $ 17,130 $ 109 $ 8,290 $ 25,529
1995 $ 15,058 $ 95 $ 6,536 $ 21,689
1994 $ 13,116 $ 83 $ 5,392 $ 18,591
1993 $ 12,279 $ 78 $ 4,355 $ 16,712
1992 $ 10,936 $ 69 $ 2,368 $ 13,373
1991 $ 10,737 $ 68 $ 1,383 $ 12,188
1990 $ 10,783 $ 68 $ 899 $ 11,750
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
NATURAL RESOURCES - CLASS C INDEXES
Fiscal Year Ended S&P 500 DJIA Cost of Living
1999 $ 49,675 $ 52,013 $ 13,400
1998 $ 41,326 $ 42,674 $ 13,119
1997 $ 34,645 $ 38,850 $ 12,902
1996 $ 22,772 $ 25,618 $ 12,621
1995 $ 19,535 $ 21,339 $ 12,259
1994 $ 15,491 $ 16,624 $ 11,929
1993 $ 14,731 $ 15,209 $ 11,608
1992 $ 13,546 $ 14,157 $ 11,294
1991 $ 12,009 $ 12,248 $ 10,949
1990 $ 10,650 $ 11,339 $ 10,482
</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 $22,818. If
distri butions 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 $8,921 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, 1999, a hypothetical $10,000
investment in Institutional Class of Natural Resources would
h ave grown to $33,6 81 .
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
NATURAL RESOURCES - INDEXES
INSTITUTIONAL CLASS
Fiscal Year
Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value S&P 500
Investment Distributions Gain Distributions
1999 $ 17,099 $ 454 $ 16,128 $ 33,681 $ 49,675
1998 $ 14,697 $ 253 $ 12,669 $ 27,619 $ 41,326
1997 $ 20,276 $ 215 $ 11,733 $ 32,224 $ 34,645
1996 $ 17,283 $ 110 $ 8,362 $ 25,755 $ 22,772
1995 $ 15,073 $ 96 $ 6,542 $ 21,711 $ 19,535
1994 $ 13,116 $ 83 $ 5,392 $ 18,591 $ 15,491
1993 $ 12,279 $ 78 $ 4,355 $ 16,712 $ 14,731
1992 $ 10,936 $ 69 $ 2,368 $ 13,373 $ 13,546
1991 $ 10,737 $ 68 $ 1,383 $ 12,188 $ 12,009
1990 $ 10,783 $ 68 $ 899 $ 11,750 $ 10,650
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
NATURAL RESOURCES -
INSTITUTIONAL CLASS
Fiscal Year Ended DJIA Cost of Living
1999 $ 52,013 $ 13,400
1998 $ 42,674 $ 13,119
1997 $ 38,850 $ 12,902
1996 $ 25,618 $ 12,621
1995 $ 21,339 $ 12,259
1994 $ 16,624 $ 11,929
1993 $ 15,209 $ 11,608
1992 $ 14,157 $ 11,294
1991 $ 12,248 $ 10,949
1990 $ 11,339 $ 10,482
</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 $23,29 7. If distributions had not been reinvested,
the amount of distributions earned from the class over time would
have been sm aller, and cash payments for the period would have
amounted to $246 for dividends and $9,018 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)
to July 31, 1999, a hypothetical $10,000 investment in Class A of
T echnology would have grown to $26,449, including the effect of
Class A's maximum sales charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
TECHNOLOGY - CLASS A INDEXES
Fiscal Year
Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value S&P 500
Investment Distributions Gain Distributions
1999 $ 23,515 $ 0 $ 2,934 $ 26,449 $ 21,270
1998 $ 14,024 $ 0 $ 1,750 $ 15,774 $ 17,695
1997* $ 15,042 $ 0 $ 96 $ 15,138 $ 14,835
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
TECHNOLOGY - CLASS A
Fiscal Year Ended DJIA Cost of Living**
1999 $ 19,835 $ 10,598
1998 $ 16,274 $ 10,375
1997* $ 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 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
ti me they were reinvested) amounted to $11,620. If distributions
had not been reinvested, the amount of distributions earned
fro m the class over time would have been smaller, and cash
payments for the period would have amounted to $0 for dividends and
$1,5 74 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)
to July 31, 1999, a hypothetical $10,000 investment in Class T of
Techn ology would have grown to $26,845, including the effect of
Class T's maximum sales charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
TECHNOLOGY - CLASS T INDEXES
Fiscal Year
Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value S&P 500
Investment Distributions Gain Distributions
1999 $ 23,893 $ 0 $ 2,952 $ 26,845 $ 21,270
1998 $ 14,282 $ 0 $ 1,764 $ 16,046 $ 17,695
1997* $ 15,353 $ 0 $ 98 $ 15,451 $ 14,835
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
TECHNOLOGY - CLASS T
Fiscal Year Ended DJIA Cost of Living**
1999 $ 19,835 $ 10,598
1998 $ 16,274 $ 10,375
1997* $ 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 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 fr om
the class over time would have been smaller, and cash payments for the
period would have amounted to $0 for dividends and $1,5 92 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)
to July 31, 1999, a hypothetical $10,000 investment in Class B
of Technology would have grown to $27,1 76 , including the
effect of Class B's maximum CDSC.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
TECHNOLOGY - CLASS B INDEXES
Fiscal Year
Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value S&P 500
Investment Distributions Gain Distributions
1999 $ 24,140 $ 0 $ 3,036 $ 27,176 $ 21,270
1998 $ 14,680 $ 0 $ 1,823 $ 16,503 $ 17,695
1997* $ 15,880 $ 0 $ 101 $ 15,981 $ 14,835
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
TECHNOLOGY - CLASS B
Fiscal Year Ended DJIA Cost of Living**
1999 $ 19,835 $ 10,598
1998 $ 16,274 $ 10,375
1997* $ 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
distri butions 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)
to July 31, 1998, a hypothetical $10,000 investment in Class C
of Technology would have grown to $27,456.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
TECHNOLOGY - CLASS C INDEXES
Fiscal Year
Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value S&P 500
Investment Distributions Gain Distributions
1999 $ 24,387 $ 0 $ 3,069 $ 27,456 $ 21,270
1998 $ 14,638 $ 0 $ 1,843 $ 16,481 $ 17,695
1997* $ 15,880 $ 0 $ 101 $ 15,981 $ 14,835
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
TECHNOLOGY - CLASS C
Fiscal Year Ended DJIA Cost of Living**
1999 $ 19,835 $ 10,598
1998 $ 16,274 $ 10,375
1997* $ 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
distri butions had not been reinvested, the amount of distributions
earned from the class over time would have been smaller, and cash
pa yments 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)
to July 31, 1999, a hypothetical $10,000 investment in
Instit utional Class of Technology would have grown to $28,230.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
TECHNOLOGY - INSTITUTIONAL
CLASS
Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value
Investment Distributions Gain Distributions
1999 $ 25,050 $ 0 $ 3,180 $ 28,230
1998 $ 14,890 $ 0 $ 1,890 $ 16,780
1997* $ 15,980 $ 0 $ 115 $ 16,095
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
TECHNOLOGY - INSTITUTIONAL INDEXES
CLASS
Fiscal Year Ended S&P 500 DJIA Cost of Living**
1999 $ 21,270 $ 19,835 $ 10,598
1998 $ 17,695 $ 16,274 $ 10,375
1997* $ 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 $1 1,751. If distributions had not been reinvested,
the amount of distributions earned from the class over time would
have been sm aller, 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)
to July 31, 1999, a hypothetical $10,000 investment in Class A of
Utilit ies Growth would have grown to $23,207, including the effect
of Class A's maximum sales charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
UTILITIES GROWTH - CLASS A
Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value
Investment Distributions Gain Distributions
1999 $ 19,142 $ 127 $ 3,938 $ 23,207
1998 $ 15,080 $ 100 $ 1,536 $ 16,716
1997* $ 12,318 $ 34 $ 123 $ 12,475
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
UTILITIES GROWTH - CLASS A INDEXES
Fiscal Year Ended S&P 500 DJIA Cost of Living**
1999 $ 21,270 $ 19,835 $ 10,598
1998 $ 17,695 $ 16,274 $ 10,375
1997* $ 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 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 $12,608. If
distributions had not been reinvested, the amount of distributions
earned from th e class over time would have been smaller, and
cash payments for the period would have amounted to $75 for
divid ends and $2,366 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)
to July 31, 1999, a hypothetical $10,000 investment in Class T of
Utilities Growth would have grown to $23,575, including the effect
of Class T's maximum sales charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
UTILITIES GROWTH - CLASS T
Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value
Investment Distributions Gain Distributions
1999 $ 19,522 $ 100 $ 3,953 $ 23,575
1998 $ 15,392 $ 78 $ 1,557 $ 17,027
1997* $ 12,574 $ 34 $ 126 $ 12,734
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
UTILITIES GROWTH - CLASS T INDEXES
Fiscal Year Ended S&P 500 DJIA Cost of Living**
1999 $ 21,270 $ 19,835 $ 10,598
1998 $ 17,695 $ 16,274 $ 10,375
1997* $ 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 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 $12,604. 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 $2,384 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)
to July 31, 1999, a hypothetical $10,000 investment in Class B of
Utilitie s Growth would have grown to $ 23,835 , including the
effect of Class B's maximum CDSC.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
UTILITIES GROWTH - CLASS B
Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value
Investment Distributions Gain Distributions
1999 $ 19,720 $ 117 $ 3,998 $ 23,835
1998 $ 15,830 $ 93 $ 1,597 $ 17,520
1997* $ 13,010 $ 35 $ 130 $ 13,175
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
UTILITIES GROWTH - CLASS B INDEXES
Fiscal Year Ended S&P 500 DJIA Cost of Living**
1999 $ 21,270 $ 19,835 $ 10,598
1998 $ 17,695 $ 16,274 $ 10,375
1997* $ 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 $12,653. If
distrib utions had not been reinvested, the amount of distributions
earned from the class over time would have been smaller, and cash
paym ents for the period would have amounted to $70 for dividends
and $2,420 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)
to July 31, 1999, a hypothetical $10,000 investment in Class C of
Utilitie s Growth would have grown to $24,136.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
UTILITIES GROWTH - CLASS C
Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value
Investment Distributions Gain Distributions
1999 $ 19,938 $ 147 $ 4,051 $ 24,136
1998 $ 15,793 $ 117 $ 1,615 $ 17,525
1997* $ 13,010 $ 35 $ 130 $ 13,175
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
UTILITIES GROWTH - CLASS C INDEXES
Fiscal Year Ended S&P 500 DJIA Cost of Living**
1999 $ 21,270 $ 19,835 $ 10,598
1998 $ 17,695 $ 16,274 $ 10,375
1997* $ 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 g ain distributions for the period covered (their cash
value at the time they were reinvested) amounted to $12,711. 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 $90 for
dividends and $2,452 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)
to July 31, 1999, a hypothetical $10,000 investment in
Institutional Class of Utilities Growth would have grown to
$24,834.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
UTILITIES GROWTH - INDEXES
INSTITUTIONAL CLASS
Fiscal Year
Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value S&P 500
Investment Distributions Gain Distributions
1999 $ 20,380 $ 251 $ 4,203 $ 24,834 $ 21,270
1998 $ 16,020 $ 170 $ 1,636 $ 17,826 $ 17,695
1997* $ 13,090 $ 47 $ 131 $ 13,268 $ 14,835
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
UTILITIES GROWTH -
INSTITUTIONAL CLASS
Fiscal Year Ended DJIA Cost of Living**
1999 $ 19,835 $ 10,598
1998 $ 16,274 $ 10,375
1997* $ 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 $12,8 50. If distributions had not been reinvested,
the amount of distributions earned from the class over time would
have been smalle r, and cash payments for the period would have
amounted to $150 for dividends and $2,510 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 Inc. (Lipper), an
independent service located in Summit, New Jersey that monitors the
performance of mutual funds. Generally, Lipper rankings are based on
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 indexes prepared by Lipper or other
organizations. When comparing these indexes, 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 class 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 each index
representing the universe of securities in which the fund may invest.
The return of each index reflects reinvestment of all dividends and
capital gains paid by securities included in each index. Unlike a
class's returns, however, each index's returns do not reflect
brokerage commissions, transaction fees, or other costs of investing
directly in the securities included in the index.
Each of Consumer Industries, Cyclical Industries, Financial
Services, Health Care, Natural Resources, Technology and Utilities
Growth may compare its performance to that of the Standard & Poor's
500 Index, a market capitalization-weighted 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,
personal care, household products and tobacco companies.
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, such as: manufacturers of automobiles and companies involved
with construction of residential and commercial properties, producers
of chemicals, electrical equipment and components, and providers of
environmental services.
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,
brokerage firms and asset managers, insurance companies, and real
estate holding and development companies.
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.
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 resources sector. Issues in
the index include extractive industries including gold & precious
metals mining along with other mineral mining, energy companies
providing oil & gas services, and owners and operators of timber
tracts and forestry services.
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.
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, and providers of telecommunications services.
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 indexes.
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 returns in the
same method as the funds. The funds may also compare performance to
that of other compilations or indexes 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 class may
compare these measures to those of other funds. Measures of volatility
seek to compare a class's historical share price fluctuations or
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, 1999, FMR advised over $ 34 billion in municipal
fund assets, $ 128 billion in taxable fixed-income fund assets,
$ 132 billion in money market fund assets, $ 556 billion
in equity fund assets, $ 15 billion in international fund
assets, and $ 43 billion in Spartan 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
Pursuant to Rule 22d-1 under the 1940 Act, FDC exercises its right to
waive Class A's and Class T's front-end sales charge on shares
acquired through reinvestment of dividends and capital gain
distributions or 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 and Class T's front-end sales charge in
certain instances due to sales efficiencies and competitive
considerations. The sales charge will not apply:
CLASS A SHARES ONLY
1. to shares purchased for an employee benefit plan (as defined in the
Employee Retirement Income Security Act) (except a SIMPLE IRA, SEP, or
SARSEP plan or a plan covering self-employed individuals and their
employees (formerly Keogh/H.R. 10 plans)) or a 403(b) program with at
least $25 million or more in plan assets;
2. to shares purchased for an employee benefit plan (except a SIMPLE
IRA, SEP, or SARSEP plan or a plan covering self-employed individuals
and their employees (formerly Keogh/H.R. 10 plans)) or a 403(b)
program investing through an insurance company separate account used
to fund annuity contracts;
3. to shares purchased for an employee benefit plan (except a SIMPLE
IRA, SEP, or SARSEP plan or a plan covering self-employed individuals
and their employees (formerly Keogh/H.R. 10 plans)) or a 403(b)
program investing through a trust institution, bank trust department
or insurance company, or any such institution's broker-dealer
affiliate that is not part of an organization primarily engaged in the
brokerage business. Employee benefit plans (except SIMPLE IRA, SEP,
and SARSEP plans and plans covering self-employed individuals and
their employees (formerly Keogh/H.R. 10 plans)) and 403(b) programs
that participate in the Advisor Retirement Connection do not qualify
for this waiver;
4. to shares purchased for an employee benefit plan (except a SIMPLE
IRA, SEP, or SARSEP plan or a plan covering self-employed individuals
and their employees (formerly Keogh/H.R. 10 plans)) or a 403(b)
program investing through 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;
5. 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 (except SIMPLE IRA, SEP, and SARSEP plans and plans
covering self-employed individuals and their employees (formerly
Keogh/H.R. 10 plans)), 403(b) programs and accounts managed by third
parties do not qualify for this waiver;
6. to shares purchased by a broker-dealer for a managed account that
is charged an asset-based fee. Employee benefit plans (except SIMPLE
IRA, SEP, and SARSEP plans and plans covering self-employed
individuals and their employees (formerly Keogh/H.R. 10 plans)) and
403(b) programs do not qualify for this waiver;
7. 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 (except SIMPLE IRA, SEP,
and SARSEP plans and plans covering self-employed individuals and
their employees (formerly Keogh/H.R. 10 plans)) and 403(b) programs do
not qualify for this waiver;
8. to shares purchased with proceeds from the sale of front-end load
shares of a non-Advisor mutual fund for an account participating in
the FundSelect by Nationwide program ;
9. 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 ; or
10. to shares purchased by the Fidelity Investments Charitable Gift
Fund.
A sales load waiver form must accompany these transactions.
CLASS T SHARES ONLY
1. to shares purchased for an insurance company separate account used
to fund annuity contracts for employee benefit plans (except SIMPLE
IRA, SEP, and SARSEP plans and plans covering self-employed
individuals and their employees (formerly Keogh/H.R. 10 plans)) or
403(b) programs;
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 (except a SIMPLE
IRA, SEP, or SARSEP plan or a plan covering self-employed individuals
and their employees (formerly Keogh/H.R. 10 plans)) or a 403(b)
program;
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, 403(b) programs or plans
covering sole-proprietors (formerly Keogh/H.R. 10 plans) that are
invested in Fidelity Advisor or Fidelity funds or (ii) an employee
benefit plan, 403(b) program or plan covering a sole-proprietor
(formerly Keogh/H.R. 10 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. 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 , but
excluding the Fidelity Investments Charitable Gift Fund ) 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 by the Fidelity Investments Charitable Gift
Fund.
A sales load waiver form must accompany these transactions.
CLASS B AND CLASS C SHARES ONLY
The Class B or Class C contingent deferred sales charge (CDSC) will
not apply to the redemption of shares:
1. For disability or death, provided that the shares are sold within
one year following the death or the initial determination of
disability;
2. That are permitted without penalty at age 70 1/2 pursuant to the
Internal Revenue Code from retirement plans or accounts (other than of
shares purchased on or after February 11, 1999 for Traditional IRAs,
Roth IRAs and Rollover IRAs);
3. For disability, payment of death benefits, or minimum required
distributions starting at age 70 1/2 from Traditional IRAs, Roth IRAs
and Rollover IRAs purchased on or after February 11, 1999;
4. Through the Fidelity Advisor Systematic Withdrawal Program; or
5. (Applicable to Class C only) From an employee benefit plan, 403(b)
program or plan covering a sole-proprietor (formerly Keogh/H.R. 10
plan).
A 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, 403(b) programs and plans covering sole-proprietors
(formerly Keogh/H.R. 10 plans) must have at least $50 million in plan
assets;
2. Registered investment adviser managed account programs, provided
the registered investment adviser 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,
accounts other than an employee benefit plan, 403(b) program or plan
covering a sole-proprietor (formerly a Keogh/H.R. 10 plan) 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;
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; and
6. Insurance company programs for employee benefit plans, 403(b)
programs or plans covering sole-proprietors (formerly Keogh/H.R. 10
plans) that (i) charge an asset-based fee and (ii) will have at least
$1 million invested in the Institutional Class of the Advisor funds.
Insurance company programs for employee benefit plans, 403(b) programs
and plans covering sole-proprietors (formerly Keogh/H.R. 10 plans)
include such programs offered by a broker-dealer affiliate of an
insurance company, provided that the affiliate is not part of an
organization primarily engaged in the brokerage business.
For purchases made by managed account programs, insurance company
separate accounts or insurance company programs for employee benefit
plans, 403(b) programs or plans covering sole-proprietors (formerly
Keogh/H.R. 10 plans), Fidelity 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 (except a SEP or SARSEP plan or a plan covering
self-employed individuals and their employees (formerly a Keogh/H.R.
10 plan)) or 403(b) program) past $25 million; a load waived trade
that brings the value of the accumulated account(s) of an investor
(including an employee benefit plan (except a SEP or SARSEP plan or a
plan covering self-employed individuals and their employees (formerly
a Keogh/H.R. 10 plan)) or 403(b) program) 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 (except a SEP or
SARSEP plan or a plan covering self-employed individuals and their
employees (formerly a Keogh/H.R. 10 plan)) or 403(b) program) 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."
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.
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 (i)
with the proceeds from the redemption of shares of any Fidelity
fund or (ii) by the Fidelity Investments Charitable Gift Fund,
will not be considered "eligible purchases."
Except as provided below, 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 those 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 will be
redeemed first, followed by those Class A or Class T shares that have
been held for the longest period of time.
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.
The Class A or Class T CDSC will not apply to the redemption of
shares:
1. Held by insurance company separate accounts;
2. For plan loans or distributions or exchanges to non-Advisor fund
investment options from employee benefit plans (except shares of
SIMPLE IRA, SEP, and SARSEP plans and plans covering self-employed
individuals and their employees (formerly Keogh/H.R. 10 plans)
purchased on or after February 11, 1999) and 403(b) programs; or
3. For disability, payment of death benefits, or minimum required
distributions starting at age 70 1/2 from Traditional IRAs, Roth IRAs,
SIMPLE IRAs, SEPs, SARSEPS and plans covering a sole proprietor or
self-employed individuals and their employees (formerly Keogh/H.R. 10
plans).
A waiver form must accompany these transactions.
CLASS A AND CLASS T SHARES ONLY
COMBINED PURCHASE, RIGHTS OF ACCUMULATION AND LETTER OF INTENT
PROGRAMS. The following qualify as an "individual" or "company" for
the purposes of determining eligibility for the Combined Purchase,
Rights of Accumulation or Letter of Intent program: 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 parent-subsidiary group of "employee benefit plans" (except
SEP and SARSEP plans and plans covering self-employed individuals and
their employees (formerly Keogh/H.R. 10 plans)) and 403(b) programs;
and tax-exempt organizations (as defined in Section 501(c)(3) of the
Internal Revenue Code).
COMBINED PURCHASE. For your purchases to be aggregated for the purpose
of qualifying for the Combined Purchase program, they must be made on
the same day through one investment professional.
RIGHTS OF ACCUMULATION. The current value of your holdings is
determined at the NAV at the close of business on the day you purchase
the Class A or Class T shares to which the current value of your
holdings will be added. For your purchases and holdings to be
aggregated for the purpose of qualifying for the Rights of
Accumulation program, they must have been made through one investment
professional.
LETTER OF INTENT. You must file your Letter of Intent (Letter) with
Fidelity within 90 days of the start of your purchases toward
completing your Letter. For your purchases to be aggregated for the
purpose of completing your Letter, they must be made through one
investment professional. Your initial purchase toward completing your
Letter must be at least 5% of the total investment specified in your
Letter. Fidelity will register Class A or Class T shares equal to 5%
of the total investment specified in your Letter in your name and will
hold those shares in escrow. You will earn income, dividends and
capital gain distributions on escrowed Class A and Class T shares. The
escrow will be released when you complete your Letter. You are not
obligated to complete your Letter. If you do not complete your Letter,
Fidelity will provide you with 30-days' written notice to pay the
increased front-end sales charges due. If you do not pay the increased
front-end sales charges within 30 days, Fidelity will redeem
sufficient escrowed Class A or Class T shares to pay any applicable
front-end sales charges. If you purchase more than the amount
specified in your Letter and qualify for additional Class A or Class T
front-end sales charge reductions, the front-end sales charge will be
adjusted to reflect your total purchase at the end of 13 months and
the surplus amount will be applied to your purchase of additional
Class A or Class T shares at the then-current offering price
applicable to the total investment.
ALL CLASSES
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.
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, short-term capital gains, and non-qualifying dividends, the
percentage of dividends from the fund that qualifies for the deduction
generally will be less than 100%. A portion of each fund's dividends
derived from certain U.S. Government securities and securities of
certain other investment companies may be exempt from state and local
taxation.
CAPITAL GAIN DISTRIBUTIONS. Each fund's long-term capital gain
distributions are federally taxable to shareholders generally as
capital gains.
As of July 31, 1999, Financial Services had a capital loss
carryforward aggregating approximately $ 4,198,000 . This loss
carryforward, which will expire on July 31, 2007, is available
to offset future capital gains.
As of July 31, 1999, Natural Resources had a capital loss carryforward
aggregating approximately $ 21,051,000 . This loss carryforward,
which will expire on July 31, 2007, is available to offset future
capital gains.
RETURNS OF CAPITAL. If a fund's distributions exceed its taxable
income and capital gains realized during a taxable year, all or a
portion of the distributions made in the same taxable year may be
recharacterized as a return of capital to shareholders. A return of
capital distribution will generally not be taxable, but will reduce
each shareholder's cost basis in the fund and result in a higher
reported capital gain or lower reported capital loss when those shares
on which the distribution was received are sold.
FOREIGN TAX CREDIT OR DEDUCTION. Foreign governments may withhold
taxes on dividends and interest earned by a fund with respect to
foreign securities. Foreign governments may also impose taxes on other
payments or gains with respect to foreign securities. If, at the close
of its fiscal year, more than 50% of a fund's total assets is invested
in securities of foreign issuers, the fund may elect to pass through
eligible foreign taxes paid and thereby allow shareholders to take a
deduction or, if they meet certain holding period requirements with
respect to fund shares, a credit on their individual tax returns.
TAX STATUS OF THE FUNDS. Each fund intends to qualify each year as a
"regulated investment company" under Subchapter M of the Internal
Revenue Code 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.
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. It is up to you or your tax preparer to determine
whether the sale of shares of a fund resulted in a capital gain or
loss or other tax consequence to you. 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.
TRUSTEES AND OFFICERS
The Trustees, Members of the Advisory Board, and executive officers of
the trust are listed below. The Board of Trustees governs each fund
and is responsible for protecting the interests of shareholders. The
Trustees are experienced executives who meet periodically throughout
the year to oversee each fund's activities, review contractual
arrangements with companies that provide services to each fund, and
review each fund's performance. Except 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 or its affiliates. The business address of each
Trustee, Member of the Advisory Board, and officer who is an
"interested person" (as defined in the 1940 Act) 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(registered trademark), 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 (69), 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.; and a Director of FDC. Abigail Johnson,
Member of the Advisory Board of Advisor Series VII, is Mr. Johnson's
daughter.
ABIGAIL P. JOHNSON (37), Member of the Advisory Board of Advisor
Series VII (1999), is Vice President of certain Equity Funds (1997),
and is a Director of FMR Corp. (1994). Before assuming her current
responsibilities, Ms. Johnson managed a number of Fidelity funds.
Edward C. Johnson 3d, Trustee and President of the Funds, is Ms.
Johnson's father.
J. GARY BURKHEAD (58), 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 (67), 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 (67), 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 (55), 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 (71), 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 (66), 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
previously served as a Director of General Re Corporation
(reinsurance, 1987-1998) and Valuation Research Corp. (appraisals and
valuations, 1993-1995). 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 (56), 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(registered trademark) 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 (65), 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 (71), 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 (66), 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), Imation Corp. (imaging and
information storage, 1997).
*ROBERT C. POZEN (52), 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 (70), 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 (50), Secretary (1998), is Vice President (1998) and
General Counsel of FMR (1998) and Vice President and Clerk of FDC
(1998). Prior to joining Fidelity, Mr. Roiter was with the law firm of
Debevoise & Plimpton, as an associate (1981-1984) and as a partner
(1985-1997), and served as an Assistant General Counsel of the U.S.
Securities and Exchange Commission (1979-1981). Mr. Roiter was an
Adjunct Member, Faculty of Law, at Columbia University Law School
(1996-1997).
RICHARD A. SILVER (52), 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).
MATTHEW N. KARSTETTER (38), Deputy Treasurer (1998), is Deputy
Treasurer of the Fidelity funds and is an employee of FMR (1998).
Before joining FMR, Mr. Karstetter served as Vice President of
Investment Accounting and Treasurer of IDS Mutual Funds at American
Express Financial Advisors (1996-1998). Prior to 1996, Mr. Karstetter
was Vice President, Mutual Fund Services at State Street Bank & Trust
(1991-1996).
JOHN H. COSTELLO (52), Assistant Treasurer, is an employee of FMR.
LEONARD M. RUSH (53), 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, 1999, or calendar
year ended December 31, 1998, as applicable.
COMPENSATION TABLE
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
AGGREGATE COMPENSATION FROM A Edward C. Johnson 3d** Abigail P. Johnson ** J. Gary Burkhead** Ralph F. Cox
FUND
Consumer IndustriesB $ 0 $ 0 $ 0 $ 11
Cyclical IndustriesB $ 0 $ 0 $ 0 $ 2
Financial ServicesB $ 0 $ 0 $ 0 $ 76
Health CareB $ 0 $ 0 $ 0 $ 123
Natural ResourcesB $ 0 $ 0 $ 0 $ 109
TechnologyB $ 0 $ 0 $ 0 $ 106
Utilities GrowthB $ 0 $ 0 $ 0 $ 22
TOTAL COMPENSATION FROM THE $ 0 $ 0 $ 0 $223,500
FUND COMPLEX*,A
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
AGGREGATE COMPENSATION FROM A Phyllis Burke Davis Robert M. Gates E. Bradley Jones Donald J. Kirk Peter S. Lynch**
FUND
Consumer IndustriesB $ 10 $ 11 $ 10 $ 11 $ 0
Cyclical IndustriesB $ 2 $ 2 $ 2 $ 2 $ 0
Financial ServicesB $ 72 $ 76 $ 75 $ 76 $ 0
Health CareB $ 117 $ 123 $ 122 $ 123 $ 0
Natural ResourcesB $ 104 $ 108 $ 108 $ 110 $ 0
TechnologyB $ 99 $ 105 $ 105 $ 106 $ 0
Utilities GrowthB $ 21 $ 22 $ 22 $ 22 $ 0
TOTAL COMPENSATION FROM THE $220,500 $223,500 $222,000 $226,500 $ 0
FUND COMPLEX*,A
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
AGGREGATE COMPENSATION
FROM A FUND William O. McCoy Gerald C. McDonough Marvin L. Mann Robert C. Pozen** Thomas R. Williams
Consumer IndustriesB $ 11 $ 13 $ 11 $ 0 $ 10
Cyclical IndustriesB $ 2 $ 2 $ 2 $ 0 $ 2
Financial ServicesB $ 76 $ 93 $ 76 $ 0 $ 74
Health CareB $ 123 $ 150 $ 123 $ 0 $ 119
Natural ResourcesB $ 108 $ 133 $ 108 $ 0 $ 106
TechnologyB $ 105 $ 129 $ 105 $ 0 $ 102
Utilities GrowthB $ 22 $ 27 $ 22 $ 0 $ 22
TOTAL COMPENSATION FROM THE $223,500 $273,500 $220,500 $ 0 $223,500
FUND COMPLEX*,A
</TABLE>
* Information is for the calendar year ended December 31, 1998 for 237
funds in the complex.
** Interested Trustees of the funds, Ms. Johnson and Mr. Burkhead are
compensated by FMR.
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, 1998, the Trustees accrued required
deferred compensation from the funds as follows: Ralph F. Cox,
$75,000; Phyllis Burke Davis, $75,000; Robert M. Gates, $75,000; 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, $55,039; Marvin L. Mann, $55,039; Thomas R.
Williams, $63,433; and William O. McCoy, $55,039.
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, 1999, approximately 16.18% of Fidelity Advisor
Cyclical Industries', approximately 1.28% of Fidelity Advisor Health
Care's, approximately 1.21% of Fidelity Advisor Natural Resources' and
approximately 1.85% of Fidelity Advisor Technology's total outstanding
shares were held by FMR affiliates. FMR Corp. is the ultimate parent
company of these FMR affiliates. By virtue of their ownership
interest in FMR Corp., as described in the "Control of Investment
Advisers" section on page 111, Mr. Edward C. Johnson 3d, President and
Trustee of the funds and Ms. Abigail P. Johnson, Member of the
Advisory Board of the funds, may be deemed to be a
beneficial owner of these shares. As of the above date, with
the exception of Mr. Johnson 3d' s and Ms. Johnson's deemed
ownership of Fidelity Advisor Cyclical Industries', Fidelity Advisor
Health Care's, Fidelity Advisor Natural Resources' and Fidelity
Advisor Technology's shares, the Trustees, Members of the Advisory
Board, and officers of the funds owned, in the aggregate, less than 1%
of each fund's total outstanding shares.
As of July 31, 1999, the following owned of record or beneficially 5%
or more (up to and including 25%) of each class's outstanding shares:
Advisor Consumer Industries Class A: Union Bank of California, Los
Angeles, CA (6.08%); Centennial Securities Company, Grand Rapids, MI
(5.14%).
Advisor Consumer Industries Class T: SunAmerica, New York, NY
(10.11%); Fidelity Investment Advisor Group (FIAG), Boston, MA
(8.39%); Securities America, Omaha, NE (5.40%).
Advisor Consumer Industries Class B: First Union Corp., Roanoke, VA
(8.92%)
Advisor Consumer Industries Class C: Securities Corporation of Iowa,
Cedar Rapids, IA (12.91%); Prudential, New York, NY (9.56%); Merrill
Lynch, Pierce, Fenner & Smith Inc., Jacksonville, FL (5.49%).
Advisor Consumer Industries Institutional Class: Aetna Inc., Torrance,
CA (50.37%); Charles Schwab & Co., Inc., San Francisco, CA (38.51%);
Merrill Lynch, Pierce, Fenner & Smith Inc., Jacksonville, FL (6.66%).
Advisor Cyclical Industries Class A: Fidelity Investments, Boston, MA
(18.12%); Metropolitan Life Insurance Company, Boston, MA (10.65%);
LINCOLN, Fort Wayne, IN (9.09%); Key Investments, Cleveland, OH
(6.69%).
Advisor Cyclical Industries Class T: SunAmerica, New York, NY
(17.97%); G.W. & Wade Asset Management Co., Wellesley, MA (6.37%);
A.G. Edwards & Sons Inc., Stillwater, OK (5.52%); Prudential, New
York, NY (5.49%); Dain Rauscher Inc., Minneapolis, MN (5.19%).
Advisor Cyclical Industries Class B: Merrill Lynch, Pierce, Fenner &
Smith Inc., Jacksonville, FL (16.11%); Fidelity Investments
Distributors Corp., Boston, MA (7.21%); SunAmerica, New York, NY
(5.53%); Securities America, Omaha, NE (5.49%).
Advisor Cyclical Industries Class C: Merrill Lynch, Pierce, Fenner &
Smith Inc., Jacksonville, FL (53.61%); L.M. Kohn & Company,
Cincinnati, OH (5.48%).
Advisor Cyclical Industries Institutional Class: Charles Schwab & Co.,
Inc., San Francisco, CA (53.13%); Fidelity Investments, Boston, MA
(39.17%).
Advisor Financial Services Class A: Prudential, New York, NY (10.34%);
Dain Rauscher Inc., Minneapolis, MN (6.44%).
Advisor Financial Services Class T: Securities America, Omaha, NE
(8.80%); A.G. Edwards & Sons Inc., Stillwater, OK (5.53%).
Advisor Financial Services Class B: Merrill Lynch, Pierce, Fenner &
Smith Inc., Jacksonville, FL (11.60%); Prudential, New York, NY
(5.81%); First Union Corp., Roanoke, VA (5.39%).
Advisor Financial Services Class C: Merrill Lynch, Pierce, Fenner &
Smith Inc., Jacksonville, FL (19.22%); Prudential, New York, NY
(10.54%); Jefferson Pilot Corp., Greensboro, NC (5.32%).
Advisor Financial Services Institutional Class: Charles Schwab & Co.,
Inc., San Francisco, CA (56.32%); Fidelity Investments, Boston, MA
(12.98%); Merrill Lynch, Pierce, Fenner & Smith Inc., Jacksonville, FL
(8.38%).
Advisor Health Care Class A: Prudential, New York, NY (6.54%).
Advisor Health Care Class T: A.G. Edwards & Sons Inc., Stillwater, OK
(6.52%); Securities America, Omaha, NE (6.31%).
Advisor Health Care Class B: Merrill Lynch, Pierce, Fenner & Smith
Inc., Jacksonville, FL (11.31%); Prudential, New York, NY (5.54%).
Advisor Health Care Class C: Merrill Lynch, Pierce, Fenner & Smith
Inc., Jacksonville, FL (26.78%); Prudential, New York, NY (8.08%);
Citigroup, Inc., New York, NY (5.99%).
Advisor Health Care Institutional Class: Charles Schwab & Co., Inc.,
San Francisco, CA (22.61%); Merrill Lynch, Pierce, Fenner & Smith
Inc., Jacksonville, FL (14.67%); First Trust Corporation, Denver, CO
(11.94%).
Advisor Natural Resources Class A: A.G. Edwards & Sons Inc.,
Stillwater, OK (8.04%); US Bancorp, Minneapolis, MA (5.86%).
Advisor Natural Resources Class T: Citigroup, Inc., New York, NY
(6.46%).
Advisor Natural Resources Class B: Merrill Lynch, Pierce, Fenner &
Smith Inc., Jacksonville, FL (9.20%); Prudential, New York, NY
(6.58%); Citigroup, Inc., New York, NY (5.22%).
Advisor Natural Resources Class C: Merrill Lynch, Pierce, Fenner &
Smith Inc., Jacksonville, FL (15.59%); Prudential, New York, NY
(14.33%); Citigroup, Inc., New York, NY (6.14%); Jefferson Pilot
Corp., Greensboro, NC (6.01%).
Advisor Natural Resources Institutional Class: Charles Schwab & Co.,
Inc., San Francisco, CA (24.17%); Merrill Lynch, Pierce, Fenner &
Smith Inc., Jacksonville, FL (15.76%); Investment Centers of America,
Bismarck, ND (12.67%); First Financial Trust, Tampa, FL (11.44%);
Cambridge Investment Research Inc., Littleton, CO (5.15%).
Advisor Technology Class A: Citigroup, Inc., Long Island City, NY
(10.70%).
Advisor Technology Class T: A.G. Edwards & Sons Inc., Stillwater, OK
(5.30%).
Advisor Technology Class B: Citigroup, Inc., Long Island City, NY
(12.75%); Merrill Lynch, Pierce, Fenner & Smith Inc., Jacksonville, FL
(6.38%).
Advisor Technology Class C: Merrill Lynch, Pierce, Fenner & Smith
Inc., Jacksonville, FL (14.45%); Citigroup, Inc., New York, NY
(7.46%); Securities America, Omaha, NE (6.59%).
Advisor Technology Institutional Class: Charles Schwab & Co., Inc.,
San Francisco, CA (35.67%); Resources Trust Company, Englewood, Co
(13.50%); Merrill Lynch, Pierce, Fenner & Smith Inc., Jacksonville, FL
(9.45%).
Advisor Utilities Growth Class A: Merrill Lynch, Pierce, Fenner &
Smith Inc., Jacksonville, FL (8.06%); LPL Financial Services, Inc.,
San Diego, CA (6.10%); A.G. Edwards & Sons Inc., Stillwater, OK
(5.15%).
Advisor Utilities Growth Class T: Securities America, Omaha, NE
(6.99%); Fidelity Investment Advisor Group (FIAG), Boston, MA (5.40%).
Advisor Utilities Growth Class B: Merrill Lynch, Pierce, Fenner &
Smith Inc., Jacksonville, FL (18.51%); First Union Corp., Roanoke, VA
(6.59%); Citigroup, Inc., Long Island City, NY (5.60%).
Advisor Utilities Growth Class C: Merrill Lynch, Pierce, Fenner &
Smith Inc., Jacksonville, FL (16.50%); PaineWebber, Inc., New York, NY
(10.41%); Jefferson Pilot Corp., Greensboro, NC (6.89%); SunAmerica,
Atlanta, GA (5.42%).
Advisor Utilities Growth Institutional Class: Merrill Lynch, Pierce,
Fenner & Smith Inc., Jacksonville, FL (33.02%); Fidelity Investments,
Boston, MA (28.45%); Charles Schwab & Co., Inc., San Francisco, Ca
(24.11%).
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.
CONTROL OF INVESTMENT ADVISERS
FMR Corp., organized in 1972, is the ultimate parent company of FMR,
FMR U.K. and FMR Far East. 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
investment 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.
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.
<TABLE>
<CAPTION>
<S> <C> <C> <C>
GROUP FEE RATE SCHEDULE EFFECTIVE ANNUAL FEE RATES
Average Group Assets Annualized Rate Group Net Assets Effective Annual Fee 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
</TABLE>
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 $ 780 billion of group net assets - the approximate
level for July 1999 - was 0.2811 %, which is the weighted
average of the respective fee rates for each level of group net assets
up to $ 780 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 1999, 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 0.2811% + 0.30% = 0.5811%
Cyclical Industries 0.2811% + 0.30% = 0.5811%
Financial Services 0.2811% + 0.30% = 0.5811%
Health Care 0.2811% + 0.30% = 0.5811%
Natural Resources 0.2811% + 0.30% = 0.5811%
Technology 0.2811% + 0.30% = 0.5811%
Utilities Growth 0.2811% + 0.30% = 0.5811%
</TABLE>
One-twelfth of the management fee rate is applied to each fund's
average net assets for the 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 past three fiscal years.
Fund Fiscal Years Ended July Management Fees Paid to FMR
Consumer Industries 1999 $ 201,981
1998 $ 101,756
1997* $ 32,305
Cyclical Industries 1999 $ 40,341
1998 $ 30,832
1997* $ 30,106
Financial Services 1999 $ 1,430,657
1998 $ 797,075
1997* $ 156,182
Health Care 1999 $ 2,532,771
1998 $ 727,332
1997* $ 158,600
Natural Resources 1999 $ 1,929,614
1998 $ 3,365,961
1997* $ 3,146,193
Technology 1999 $ 2,356,443
1998 $ 667,737
1997* $ 174,663
Utilities Growth 1999 $ 480,763
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.
FMR may, from time to time, voluntarily reimburse all or a portion of
a class's operating expenses (exclusive of interest, taxes, securities
lending fees, brokerage commissions, and extraordinary expenses),
which is subject to revision or discontinuance . 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 returns, and
repayment of the reimbursement by a class will lower its 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 FMR U.K. and FMR Far East
investment management authority as well as the authority to buy and
sell securities if FMR believes it would be beneficial to the funds.
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
FMR U.K. and FMR Far East for the past three fiscal years are
shown in the table below.
<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
1999 1998 1997* 1999 1998 1997*
Consumer Industries $ 198 $ 209 $ 66 $ 147 $ 198 $ 68
Cyclical Industries $ 0 $ 22 $ 41 $ 0 $ 21 $ 38
Financial Services $ 584 $ 558 $ 24 $ 441 $ 540 $ 34
Health Care $ 24,196 $ 3,800 $ 1,907 $ 14,900 $ 3,572 $ 1,968
Natural Resources $ 48,914 $ 54,559 $ 40,785 $ 34,436 $ 51,612 $ 39,529
Technology $ 44,369 $ 4,853 $ 1,409 $ 26,777 $ 4,633 $ 1,702
Utilities Growth $ 3,203 $ 88 $ 24 $ 1,981 $ 87 $ 24
</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 discretionary investment management and execution of portfolio
transactions, no fees were paid to FMR U.K. and FMR Far East on
behalf of the funds for the past three fiscal years.
DISTRIBUTION SERVICES
Each fund has entered into a distribution agreement with FDC, an
affiliate of FMR. 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 past three
fiscal years are shown in the table below.
<TABLE>
<CAPTION>
Sales Charge Revenue CDSC Revenue
<S> <C> <C> <C> <C>
Fiscal Year Ended Amount Paid to FDC Amount Retained by FDC Amount Paid to FDC
Consumer Industries - Class A July 31, 1999 $ 26,463 $ 9,732 $ 0
1998 $ 17,058 $ 5,788 $ 0
1997* $ 25,257 $ 5,217 $ 0
Consumer Industries - Class T July 31, 1999 $ 49,305 $ 13,689 $ 0
1998 $ 42,495 $ 12,506 $ 0
1997* $ 50,036 $ 10,321 $ 0
Consumer Industries - Class B July 31, 1999 $ 0 $ 0 $ 24,515
1998 $ 0 $ 0 $ 3,503
1997* $ 0 $ 0 $ 501
Consumer Industries - Class C July 31, 1999 $ 0 $ 0 $ 4,208
1998 $ 0 $ 0 $ 38
1997* $ 0 $ 0 $ 0
Consumer Industries - July 31, 1999 $ 0 $ 0 $ 0
Institutional Class
1998 $ 0 $ 0 $ 0
1997* $ 0 $ 0 $ 0
Fiscal Year Ended Amount Paid to FDC Amount Retained by FDC Amount Paid to FDC
Cyclical Industries - Class A July 31, 1999 $ 4,343 $ 1,348 $ 0
1998 $ 1,572 $ 758 $ 0
1997* $ 8,537 $ 3,162 $ 0
Cyclical Industries - Class T July 31, 1999 $ 9,332 $ 2,595 $ 223
1998 $ 8,776 $ 2,902 $ 0
1997* $ 8,587 $ 2,204 $ 0
Cyclical Industries - Class B July 31, 1999 $ 0 $ 0 $ 7,352
1998 $ 0 $ 0 $ 328
1997* $ 0 $ 0 $ 50
Cyclical Industries - Class C July 31, 1999 $ 0 $ 0 $ 805
1998 $ 0 $ 0 $ 61
1997* $ 0 $ 0 $ 0
Cyclical Industries - July 31, 1999 $ 0 $ 0 $ 0
Institutional Class
1998 $ 0 $ 0 $ 0
1997* $ 0 $ 0 $ 0
Financial Services - Class A July 31, 1999 $ 168,394 $ 73,369 $ 676
1998 $ 226,919 $ 96,375 $ 0
1997* $ 89,581 $ 23,881 $ 0
Financial Services - Class T July 31, 1999 $ 255,657 $ 88,448 $ 760
1998 $ 375,688 $ 137,727 $ 0
1997* $ 266,965 $ 80,153 $ 0
Financial Services - Class B July 31, 1999 $ 0 $ 0 $ 320,166
1998 $ 0 $ 0 $ 49,800
1997* $ 0 $ 0 $ 1,297
Financial Services - Class C July 31, 1999 $ 0 $ 0 $ 23,912
1998 $ 0 $ 0 $ 6,588
1997* $ 0 $ 0 $ 0
Financial Services - July 31, 1999 $ 0 $ 0 $ 0
Institutional Class
1998 $ 0 $ 0 $ 0
1997* $ 0 $ 0 $ 0
Fiscal Year Ended Amount Paid to FDC Amount Retained by FDC Amount Paid to FDC
Health Care - Class A July 31, 1999 $ 550,975 $ 279,574 $ 197
1998 $ 193,119 $ 86,859 $ 0
1997* $ 145,733 $ 37,870 $ 0
Health Care - Class T July 31, 1999 $ 799,232 $ 309,540 $ 1,215
1998 $ 403,740 $ 153,952 $ 0
1997* $ 289,655 $ 79,679 $ 0
Health Care - Class B July 31, 1999 $ 0 $ 0 $ 321,313
1998 $ 0 $ 0 $ 31,102
1997* $ 0 $ 0 $ 3,867
Health Care - Class C July 31, 1999 $ 0 $ 0 $ 43,426
1998 $ 0 $ 0 $ 3,519
1997* $ 0 $ 0 $ 0
Health Care - Institutional July 31, 1999 $ 0 $ 0 $ 0
Class
1998 $ 0 $ 0 $ 0
1997* $ 0 $ 0 $ 0
Natural Resources - Class A July 31, 1999 $ 45,741 $ 22,233 $ 0
1998 $ 61,964 $ 20,495 $ 0
1997* $ 136,219 $ 26,145 $ 0
Natural Resources - Class T July 31, 1999 $ 143,564 $ 48,622 $ 1,035
1998 $ 310,088 $ 98,963 $ 0
1997* $ 916,737 $ 249,176 $ 0
Natural Resources - Class B July 31, 1999 $ 0 $ 0 $ 243,263
1998 $ 0 $ 0 $ 220,346
1997* $ 0 $ 0 $ 110,966
Natural Resources - Class C July 31, 1999 $ 0 $ 0 $ 10,097
1998 $ 0 $ 0 $ 1,202
1997* $ 0 $ 0 $ 0
Natural Resources - July 31, 1999 $ 0 $ 0 $ 0
Institutional Class
1998 $ 0 $ 0 $ 0
1997* $ 0 $ 0 $ 0
Technology - Class A July 31, 1999 $ 794,303 $ 408,361 $ 590
1998 $ 172,036 $ 65,577 $ 0
1997* $ 137,804 $ 33,035 $ 0
Technology - Class T July 31, 1999 $ 1,084,550 $ 422,494 $ 3,329
1998 $ 341,738 $ 124,571 $ 0
1997* $ 326,277 $ 90,829 $ 0
Fiscal Year Ended Amount Paid to FDC Amount Retained by FDC Amount Paid to FDC
Technology - Class B July 31, 1999 $ 0 $ 0 $ 279,672
1998 $ 0 $ 0 $ 46,822
1997* $ 0 $ 0 $ 1,501
Technology - Class C July 31, 1999 $ 0 $ 0 $ 25,814
1998 $ 0 $ 0 $ 3,066
1997* $ 0 $ 0 $ 0
Technology - Institutional July 31, 1999 $ 0 $ 0 $ 0
Class
1998 $ 0 $ 0 $ 0
1997* $ 0 $ 0 $ 0
Utilities Growth - Class A July 31, 1999 $ 114,076 $ 55,950 $ 199
1998 $ 43,487 $ 16,090 $ 0
1997* $ 14,745 $ 3,264 $ 0
Utilities Growth - Class T July 31, 1999 $ 177,771 $ 58,245 $ 55
1998 $ 57,287 $ 21,339 $ 0
1997* $ 49,162 $ 10,311 $ 0
Utilities Growth - Class B July 31, 1999 $ 0 $ 0 $ 58,521
1998 $ 0 $ 0 $ 7,417
1997* $ 0 $ 0 $ 200
Utilities Growth - Class C July 31, 1999 $ 0 $ 0 $ 6,350
1998 $ 0 $ 0 $ 803
1997* $ 0 $ 0 $ 0
Utilities Growth - July 31, 1999 $ 0 $ 0 $ 0
Institutional Class
1998 $ 0 $ 0 $ 0
1997* $ 0 $ 0 $ 0
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
Amount Retained by FDC
Consumer Industries - Class A $ 0
$ 0
$ 0
Consumer Industries - Class T $ 0
$ 0
$ 0
Consumer Industries - Class B $ 24,515
$ 3,503
$ 501
Consumer Industries - Class C $ 4,208
$ 38
$ 0
Consumer Industries - $ 0
Institutional Class
$ 0
$ 0
Amount Retained by FDC
Cyclical Industries - Class A $ 0
$ 0
$ 0
Cyclical Industries - Class T $ 223
$ 0
$ 0
Cyclical Industries - Class B $ 7,352
$ 328
$ 50
Cyclical Industries - Class C $ 805
$ 61
$ 0
Cyclical Industries - $ 0
Institutional Class
$ 0
$ 0
Financial Services - Class A $ 676
$ 0
$ 0
Financial Services - Class T $ 760
$ 0
$ 0
Financial Services - Class B $ 320,166
$ 49,800
$ 1,297
Financial Services - Class C $ 23,912
$ 6,588
$ 0
Financial Services - $ 0
Institutional Class
$ 0
$ 0
Amount Retained by FDC
Health Care - Class A $ 197
$ 0
$ 0
Health Care - Class T $ 1,215
$ 0
$ 0
Health Care - Class B $ 321,313
$ 31,102
$ 3,867
Health Care - Class C $ 43,426
$ 3,519
$ 0
Health Care - Institutional $ 0
Class
$ 0
$ 0
Natural Resources - Class A $ 0
$ 0
$ 0
Natural Resources - Class T $ 1,035
$ 0
$ 0
Natural Resources - Class B $ 243,263
$ 220,346
$ 110,966
Natural Resources - Class C $ 10,097
$ 1,202
$ 0
Natural Resources - $ 0
Institutional Class
$ 0
$ 0
Technology - Class A $ 590
$ 0
$ 0
Technology - Class T $ 3,329
$ 0
$ 0
Amount Retained by FDC
Technology - Class B $ 279,672
$ 46,822
$ 1,501
Technology - Class C $ 25,814
$ 3,066
$ 0
Technology - Institutional $ 0
Class
$ 0
$ 0
Utilities Growth - Class A $ 199
$ 0
$ 0
Utilities Growth - Class T $ 55
$ 0
$ 0
Utilities Growth - Class B $ 58,521
$ 7,417
$ 200
Utilities Growth - Class C $ 6,350
$ 803
$ 0
Utilities Growth - $ 0
Institutional Class
$ 0
$ 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 31, 1997 for Natural Resources
The Trustees have approved Distribution and Service Plans on behalf of
each fund (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 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 Plan for each fund, FDC is paid a monthly
12b-1 fee at an annual rate of up to 0.75% of Class A's average net
assets determined at the close of business on each day throughout the
month. Currently, the Trustees have approved a monthly 12b-1 fee for
Class A at an annual rate of 0.25% of its average net assets. This fee
rate 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.
Currently, FDC may reallow to intermediaries (such as banks,
broker-dealers and other service-providers), including its affiliates,
up to the full amount of 12b-1 fees paid by Class A for providing
services intended to result in the sale of Class A shares and/or
shareholder support services.
Pursuant to the Class T Plan for each fund, FDC is paid a monthly
12b-1 fee at an annual rate of up to 0.75% of Class T's average net
assets (except for Natural Resources) determined at the close of
business on each day throughout the month. Pursuant to Natural
Resources' Class T Plan, FDC is paid a monthly 12b-1 fee at an annual
rate of up to 0.65% of Class T's average net assets. Currently, the
Trustees have approved a monthly 12b-1 fee for Class T at an annual
rate of 0.50% of its average net assets. This fee rate 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.
Currently, FDC may reallow to intermediaries (such as banks,
broker-dealers and other service-providers), including its affiliates,
up to the full amount of 12b-1 fees paid by Class T for providing
services intended to result in the sale of Class T shares and/or
shareholder support services.
Pursuant to the Class B Plan for each fund, FDC is paid a monthly
12b-1 (distribution) fee at an annual rate of 0.75% of Class B's
average net assets determined at the close of business on each day
throughout the month.
Pursuant to the Class B Plan for each fund, FDC is also paid a monthly
12b-1 (service) fee at an annual rate of 0.25% of Class B's average
net assets determined at the close of business on each day throughout
the month.
Currently, FDC retains the full amount of 12b-1 (distribution) fees
paid by Class B as compensation for providing services intended to
result in the sale of Class B shares, and FDC may reallow up to the
full amount of 12b-1 (service) fees paid by Class B to intermediaries
(such as banks, broker-dealers and other service-providers) for
providing shareholder support services.
Pursuant to the Class C Plan for each fund, FDC is paid a monthly
12b-1 (distribution) fee at an annual rate of 0.75% of Class C's
average net assets determined at the close of business on each day
throughout the month.
Pursuant to the Class C Plan for each fund, FDC is also paid a monthly
12b-1 (service) fee at an annual rate of 0.25% of Class C's average
net assets determined at the close of business on each day throughout
the month.
Currently and except as provided below, for the first year of
investment, FDC retains the full amount of 12b-1 (distribution) fees
paid by Class C as compensation for providing services intended to
result in the sale of Class C shares and retains the full amount of
12b-1 (service) fees paid by Class C for providing shareholder support
services. Normally, after the first year of investment, FDC may
reallow up to the full amount of 12b-1 (distribution) fees paid by
Class C to intermediaries (such as banks, broker-dealers and other
service-providers) for providing services intended to result in the
sale of Class C shares and may reallow up to the full amount of 12b-1
(service) fees paid by Class C to intermediaries for providing
shareholder support services. For purchases of Class C shares made for
an employee benefit plan, 403(b) program or plan covering a
sole-proprietor (formerly Keogh/H.R. 10 plan) or through reinvestment
of dividends or capital gain distributions, during the first year of
investment and thereafter, FDC may reallow up to the full amount of
12b-1 (distribution) fees paid by such Class C shares to
intermediaries, including its affiliates, for providing services
intended to result in the sale of Class C shares and may reallow up to
the full amount of 12b-1 (service) fees paid by such Class C shares to
intermediaries, including its affiliates, for providing shareholder
support services.
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, 1999.
1999
Fund Paid to Investment Retained by FDC* Total
Professionals
Consumer Industries $ 6,629 $ 136 $ 6,765
Cyclical Industries $ 1,134 $ 402 $ 1,536
Financial Services $ 57,861 $ 60 $ 57,921
Health Care $ 100,578 $ 94 $ 100,672
Natural Resources $ 15,722 $ 16 $ 15,738
Technology $ 104,585 $ 455 $ 105,040
Utilities Growth $ 16,693 $ 12 $ 16,705
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, 1999.
1999
Fund Paid to Investment Retained by FDC* Total
Professionals
Consumer Industries $ 87,501 $ 0 $ 87,501
Cyclical Industries $ 13,371 $ 732 $ 14,103
Financial Services $ 557,322 $ 1,685 $ 559,007
Health Care $ 928,951 $ 2,164 $ 931,115
Natural Resources $ 1,356,278 $ 14,057 $ 1,370,335
Technology $ 961,898 $ 2,134 $ 964,032
Utilities Growth $ 164,026 $ 470 $ 164,496
CLASS 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, 1999.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
1999
Fund Distribution Fees Retained by FDC** Shareholder Service Fees Retained by FDC*
Consumer Industries $ 55,931 $ 55,931 $ 18,642 $ 32
Cyclical Industries $ 8,323 $ 8,323 $ 2,776 $ 300
Financial Services $ 570,830 $ 570,830 $ 190,277 $ 261
Health Care $ 975,896 $ 975,896 $ 325,299 $ 495
Natural Resources $ 301,541 $ 301,541 $ 100,512 $ 596
Technology $ 885,319 $ 885,319 $ 295,106 $ 470
Utilities Growth $ 219,295 $ 219,295 $ 73,098 $ 57
</TABLE>
CLASS 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, 1999.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
1999
Fund Distribution Fees Retained by FDC* Shareholder Service Fees Retained by FDC*
Consumer Industries $ 14,222 $ 12,068 $ 4,741 $ 4,023
Cyclical Industries $ 3,665 $ 3,210 $ 1,222 $ 1,070
Financial Services $ 191,454 $ 157,447 $ 63,818 $ 52,482
Health Care $ 426,687 $ 390,144 $ 142,230 $ 130,048
Natural Resources $ 37,001 $ 32,012 $ 12,334 $ 10,671
Technology $ 256,368 $ 226,445 $ 85,456 $ 75,482
Utilities Growth $ 68,470 $ 57,860 $ 22,824 $ 19,287
</TABLE>
* Amounts retained by FDC represent fees paid to FDC but not yet
reallowed to intermediaries as of the close of the period reported and
fees paid to FDC that are not eligible to be reallowed to
intermediaries. Amounts not eligible for reallowance are retained by
FDC for use in its capacity as distributor.
* * These amounts are retained by FDC for use in its capacity as
distributor.
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
providing services intended to result in the sale of Institutional
Class shares and/or shareholder support services. In addition, each
Institutional Class Plan provides that FMR, directly or through FDC,
may pay intermediaries, such as banks, broker-dealers and other
service-providers, that provide those services. Currently, the Board
of Trustees has authorized such payments 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 providing services
intended to result in the sale of Class A, Class T, Class B and Class
C shares and/or shareholder support services, including payments made
to intermediaries that provide those 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
intermediaries for the fiscal year ended 1999 amounted to the
following:
Fund Class A Class T Class B Class C Institutional
Consumer Industries $ 617 $ 395 $ 785 $ 388 $ 156
Cyclical Industries $ 149 $ 37 $ 101 $ 108 $ 90
Financial Services $ 4,833 $ 2,126 $ 8,287 $ 6,813 $ 318
Health Care $ 10,263 $ 4,491 $ 15,951 $ 14,166 $ 345
Natural Resources $ 1,936 $ 38,871 $ 8,218 $ 1,649 $ 913
Technology $ 9,560 $ 5,882 $ 15,561 $ 9,454 $ 131
Utilities Growth $ 1,358 $ 1,186 $ 3,371 $ 2,209 $ 212
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 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 shares of the applicable class,
additional sales of fund shares or stabilization of cash flows 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.
FDC may compensate intermediaries that satisfy certain criteria
established from time to time by FDC relating to the level or type of
services provided by the intermediary, the sale or expected sale of
significant amounts of shares, or other factors.
TRANSFER AND SERVICE AGENT AGREEMENTS
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 and 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 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, an
affiliate of FMR. 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 rates for pricing and bookkeeping services for the funds
are 0.0450% of the first $500 million of average net assets, 0.0265%
of average net assets between $500 million and $3 billion, and 0.0010%
of average net assets in excess of $3 billion. The fee, not including
reimbursement for out-of-pocket expenses, is limited to a minimum of
$60,000 per year.
Pricing and bookkeeping fees, including reimbursement for
out-of-pocket expenses, paid by the funds to FSC for the past three
fiscal years are shown in the table below.
Fund 1999 1998 1997*
Consumer Industries $ 60,273 $ 60,446 $ 55,209
Cyclical Industries $ 60,011 $ 60,218 $ 55,106
Financial Services $ 124,777 $ 86,010 $ 55,208
Health Care $ 206,426 $ 79,943 $ 55,207
Natural Resources $ 192,837 $ 396,771 $ 346,819
Technology $ 181,834 $ 70,851 $ 55,209
Utilities Growth $ 62,475 $ 60,324 $ 55,003
* 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
For administering each fund's securities lending program, FSC receives
fees based on the number and duration of individual securities loans.
For the fiscal years ended July 31, 1999, 1998, and 1997, the funds
paid no securities lending fees.
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 on March 21, 1980. Currently, there are 7
funds in Fidelity Advisor Series VII: 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 Trustees are
permitted to create additional funds in the trust and to create
additional classes of the funds.
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 to the rights of creditors, are allocated to such fund, and
constitute the underlying assets of such fund. The underlying assets
of each fund in the trust shall be charged with the liabilities and
expenses attributable to such fund, except that liabilities and
expenses may be allocated to a particular class. Any general expenses
of the trust shall be allocated between or among any one or more of
the funds or classes.
SHAREHOLDER LIABILITY. The trust is an entity commonly known as a
"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
relating to the trust 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 or former shareholder held
personally liable for the obligations of the fund solely by reason of
his or her being or having been a shareholder and not because of his
or her acts or omissions or for some other reason. 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 a 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. 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 are entitled to one vote for each
dollar of net asset value that you own. The voting rights of
shareholders can be changed only by a shareholder vote. Shares may be
voted in the aggregate, by fund and by class.
The shares have no preemptive or, for Class A, Class T , Class C
and Institutional Class shares, conversion rights. Shares are fully
paid and nonassessable, except as set forth under the heading
"Shareholder Liability" above.
The trust or any of its funds 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 a vote of
shareholders of the trust or the fund. In the event of the dissolution
or liquidation of the trust, shareholders of each of its funds are
entitled to receive the underlying assets of such fund available for
distribution. In the event of the dissolution or liquidation of a
fund, shareholders of that fund are entitled to receive the underlying
assets of the fund available for distribution.
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. The
Bank of New York and, for Natural Resources, The Chase Manhattan Bank,
each headquartered in New York, also may serve as special purpose
custodians of certain assets in connection with repurchase agreement
transactions.
FMR, its officers and directors, its affiliated companies, and members
of 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. Deloitte & T ouche LLP, 200 Berkeley Street, Boston,
Massachusetts, serves as independent accountant for each fund. 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, 1999, and report of the auditor, are
included in the fund's annual report and are incorporated herein by
reference.
APPENDIX
Fidelity Advisor Focus Funds, Fidelity, Fidelity Investments &
(Pyramid) Design, Fidelity Investments , and Magellan are
registered trademarks of FMR Corp.
THE THIRD PARTY MARKS APPEARING ABOVE ARE THE MARKS OF THEIR
RESPECTIVE OWNERS.
PART C. OTHER INFORMATION
Item 23. Exhibits
(a) (1) 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.
(2) 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.
(3) 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.
(4) 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.
(b) Bylaws of the Trust are incorporated herein by reference to
Exhibit 2(a) of Post-Effective Amendment 37.
(c) Not applicable
(d) (1) 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.
(2) 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.
(3) 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.
(4) 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.
(5) 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.
(6) 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.
(7) 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.
(8) 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.
(9) 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.
(10) 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.
(11) 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.
(12) 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.
(13) 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.
(14) 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.
(15) 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.
(16) 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.
(17) 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.
(18) 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.
(19) 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.
(20) 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.
(21) 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.
(e) (1) 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.
(2) 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.
(3) 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.
(4) 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.
(5) 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.
(6) 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.
(7) 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.
(8) Bank Agency Agreement (most recently revised January, 1997) is
incorporated herein by reference to Exhibit 6(h) of Post-Effective
Amendment No. 40.
(9) Selling Dealer Agreement (most recently revised January, 1997) is
incorporated herein by reference to Exhibit 6(i) of Post-Effective
Amendment No. 40.
(10) Selling Dealer Agreement for Bank-Related Transactions (most
recently revised January, 1997) is incorporated herein by reference to
Exhibit 6(j) of Post-Effective Amendment No. 40.
(f) (1) The Fee Deferral Plan for Non-Interested Person Directors
and Trustees of the Fidelity Funds, effective as of September 14, 1995
and amended through November 14, 1996, is incorporated herein by
reference to Exhibit 7(b) of Fidelity Aberdeen Street Trust's (File
No. 33-43529) Post-Effective Amendment No. 19.
(g) (1) 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 are incorporated
herein by reference to Exhibit 8(a) of Fidelity Investment Trust's
(File No. 2-90649) Post-Effective Amendment No. 59.
(2) Appendix A, dated June 16, 1999, 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 g(2) of
Fidelity Union Street Trust's (File No. 2-50318) Post-Effective
Amendment No. 102.
(3) Appendix B, dated June 17, 1999, 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 g(3) of
Fidelity Union Street Trust's (File No. 2-50318) Post-Effective
Amendment No. 102
(4) Addendum, dated October 21, 1996, 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 g(4) of
Fidelity Charles Street Trust's (File No. 2-73133) Post-Effective
Amendment No. 65.
(5) Custodian Agreement and Appendix C, dated September 1,
1994, between Brown Brothers Harriman & Company and Fidelity Advisor
Series VII on behalf of Fidelity Advisor Natural Resources Fund are
incorporated herein by reference to Exhibit 8(a) of Fidelity
Commonwealth Trust's (File No. 2-52322) Post-Effective Amendment No.
56.
(6) Appendix A, dated January 14, 1999, 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
g(2) of Fidelity Commonwealth Trust's (File No. 2-52322)
Post-Effective Amendment No. 68.
(7) Appendix B, dated June 17, 1999, 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
g(11) of Fidelity Advisor VIII's (File No. 2-86711) Post-Effective
Amendment No. 54.
(8) Addendum, dated October 21, 1996, 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
g(4) of Fidelity Commonwealth Trust's (File No. 2-52322)
Post-Effective Amendment No. 68.
(9) 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.
(10) 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.
(11) 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.
(12) 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.
(13) 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.
(14) 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.
(h) Not applicable.
(i) Legal Opinion of Kirkpatrick & Lockhart LLP for 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, dated
September 29, 1999, is filed herein as Exhibit i(1).
(j) (1) Consent of PricewaterhouseCoopers LLP, dated September 29,
1999, is filed herein as Exhibit j(1).
(2) Consent of Deloitte & Touche LLP, dated September 29, 1999, is
filed herein as Exhibit j(2).
(k) Not applicable.
(l) Not applicable.
(m) (1) Distribution and Service Plan pursuant to Rule 12b-1 for
Fidelity Advisor Consumer Industries Fund: Class A is filed herein as
Exhibit m(1).
(2) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity
Advisor Cyclical Industries Fund: Class A is filed herein as Exhibit
m(2).
(3) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity
Advisor Financial Services Fund: Class A is filed herein as Exhibit
m(3).
(4) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity
Advisor Health Care Fund: Class A is filed herein as Exhibit m(4).
(5) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity
Advisor Technology Fund: Class A is filed herein as Exhibit m(5).
(6) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity
Advisor Utilities Growth Fund: Class A is filed herein as Exhibit
m(6).
(7) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity
Advisor Consumer Industries Fund: Class T is filed herein as Exhibit
m(7).
(8) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity
Advisor Cyclical Industries Fund: Class T is filed herein as Exhibit
m(8).
(9) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity
Advisor Financial Services Fund: Class T is filed herein as Exhibit
m(9).
(10) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity
Advisor Health Care Fund: Class T is filed herein as Exhibit m(10).
(11) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity
Advisor Technology Fund: Class T is filed herein as Exhibit m(11).
(12) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity
Advisor Utilities Growth Fund: Class T is filed herein as Exhibit
m(12).
(13) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity
Advisor Consumer Industries Fund: Institutional Class is filed herein
as Exhibit m(13).
(14) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity
Advisor Cyclical Industries Fund: Institutional Class is filed herein
as Exhibit m(14).
(15) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity
Advisor Financial Services Fund: Institutional Class is filed herein
as Exhibit m(15).
(16) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity
Advisor Health Care Fund: Institutional Class is filed herein as
Exhibit m(16).
(17) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity
Advisor Technology Fund: Institutional Class is filed herein as
Exhibit m(17).
(18) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity
Advisor Utilities Growth Fund: Institutional Class is filed herein as
Exhibit m(18).
(19) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity
Advisor Consumer Industries Fund: Class B is filed herein as Exhibit
m(19).
(20) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity
Advisor Cyclical Industries Fund: Class B is filed herein as Exhibit
m(20).
(21) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity
Advisor Financial Services Fund: Class B is filed herein as Exhibit
m(21).
(22) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity
Advisor Health Care Fund: Class B is filed herein as Exhibit m(22).
(23) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity
Advisor Technology Fund: Class B is filed herein as Exhibit m(23).
(24) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity
Advisor Utilities Growth Fund: Class B is filed herein as Exhibit
m(24).
(25) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity
Advisor Consumer Industries Fund: Class C is filed herein as Exhibit
m(25).
(26) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity
Advisor Cyclical Industries Fund: Class C is filed herein as Exhibit
m(26).
(27) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity
Advisor Financial Services Fund: Class C is filed herein as Exhibit
m(27).
(28) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity
Advisor Health Care Fund: Class C is filed herein as Exhibit m(28).
(29) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity
Advisor Natural Resources Fund: Class C is filed herein as Exhibit
m(29).
(30) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity
Advisor Technology Fund: Class C is filed herein as Exhibit m(30).
(31) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity
Advisor Utilities Growth Fund: Class C is filed herein as Exhibit
m(31).
(32) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity
Advisor Natural Resources Fund: Class A is filed herein as Exhibit
m(32).
(33) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity
Advisor Natural Resources Fund: Class T is filed herein as Exhibit
m(33).
(34) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity
Advisor Natural Resources Fund: Class B is filed herein as Exhibit
m(34).
(35) Distribution and Service Plan pursuant to Rule 12b-1 for Fidelity
Advisor Natural Resources Fund: Institutional Class is filed herein as
Exhibit m(35).
(n) Not applicable.
(o) (1) Rule 18f-3 Plan, dated March 19, 1998, is incorporated
herein by reference to Exhibit 18 of Post-Effective Amendment No. 39.
(2) Schedule 1 to Multiple Class of Shares Plan pursuant to
Rule 18f-3 on behalf of the registrant, dated August 30, 1999, is
filed herein as Exhibit o(2).
Item 24. Trusts Controlled by or under Common Control with this Trust
The Board of Trustees of the Trust is the same as the board of other
Fidelity funds, each of which has Fidelity Management & Research
Company, or an affiliate, as its investment adviser. In addition, the
officers of the Trust are substantially identical to those of the
other Fidelity funds. Nonetheless, the Trust takes the position that
it is not under common control with other Fidelity funds because the
power residing in the respective boards and officers arises as the
result of an official position with the respective trusts.
Item 25. 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 Trust 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 or her in connection with any
claim, action, suit or proceeding in which he or she is involved by
virtue of his or her service as a trustee or officer and against any
amount incurred in settlement thereof. Indemnification will not be
provided to a person adjudged by a court or other adjudicatory body to
be liable to the Trust or its shareholders by reason of willful
misfeasance, bad faith, gross negligence or reckless disregard of his
or her duties (collectively, "disabling conduct"), or not to have
acted in good faith in the reasonable belief that his or her action
was in the best interest of the Trust. In the event of a settlement,
no indemnification may be provided unless there has been a
determination, as specified in the Declaration of Trust, that the
officer or trustee did not engage in disabling conduct.
Pursuant to Section 11 of the Distribution Agreement, the Trust
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 (including the
reasonable cost of investigating or defending any alleged loss,
liability, claim, damages, or expense and reasonable counsel fees
incurred in connection therewith) 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
Trust (as from time to time amended) included an untrue statement of a
material fact or omitted to state a material fact required to be
stated or necessary in order to make the statements not misleading
under the 1933 Act, or any other statute or the common law. However,
the Trust 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
Trust by or on behalf of the Distributor. In no case is the indemnity
of the Trust in favor of the Distributor or any person indemnified to
be deemed to protect the Distributor or any person against any
liability to the Issuer or its security holders to which the
Distributor or such person would otherwise be subject by reason of
willful misfeasance, bad faith or gross negligence in the performance
of its duties or by reason of its reckless disregard of its
obligations and duties under this 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 26. Business and Other Connections of Investment Advisers
(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.
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; Director
of Strategic Advisers, Inc.;
Previously, General Counsel,
Managing Director, and
Senior Vice President of FMR
Corp.
Peter S. Lynch Vice Chairman of the Board
and Director 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.
Laura B. Cronin 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., and FMR Far
East; Vice President and
Treasurer of FMR Corp.
William Danoff Senior Vice President of FMR
and Vice President of funds
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
a fund 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; Vice President Deputy
General Counsel FMR Corp.
David L. Glancy Vice President of FMR and of
a fund advised by FMR.
Barry A. Greenfield Vice President of 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 Senior Vice President of FMR
and Vice President of
High-Income Funds advised by
FMR.
Robert J. Haber Vice President of FMR.
Richard C. Habermann Senior Vice President of FMR
and 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 and
Director of Technical
Research.
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 Senior Vice President of FMR
and of a fund advised by FMR.
Francis V. Knox Vice President of FMR;
Compliance Officer of FMR
U.K. and FMR Far East.
Harris Leviton Vice President of 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.
Neal P. Miller Vice President of FMR.
Jacques Perold Vice President of FMR.
Alan Radlo Vice President of FMR.
Eric D. Roiter Vice President, General
Counsel, and Clerk 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 and of
funds advised by 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
a fund 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.
Thomas Sweeney Vice President of FMR.
Beth F. Terrana Senior Vice President of FMR
and Vice President of funds
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.
(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
U.K.; Senior Vice President
and Trustee of funds advised
by FMR; President and
Director of FIMM, FMR, and
FMR Far East; Director of
Strategic Advisers, Inc.;
Previously, General Counsel,
Managing Director, and
Senior Vice President of FMR
Corp.
Laura B. Cronin 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.
Francis V. Knox Compliance Officer of FMR
U.K. and FMR Far East; 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; Vice
President Deputy General
Counsel FMR Corp.
Susan Englander Hislop Assistant Clerk of FMR U.K.,
FMR Far East, and FIMM.
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
Far East; Senior Vice
President and Trustee of
funds advised by FMR;
President and Director of
FIMM, FMR U.K., and FMR;
Director of Strategic
Advisers, Inc.; Previously,
General Counsel, Managing
Director, and Senior Vice
President of FMR Corp.
Robert H. Auld Senior Vice President of FMR
Far East.
Laura B. Cronin Treasurer of FMR Far East,
FMR U.K., FMR, and FIMM and
Vice President of FMR.
Francis V. Knox Compliance Officer of FMR Far
East and FMR U.K.; 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; Vice
President Deputy General
Counsel FMR Corp.
Susan Englander Hislop Assistant Clerk of FMR Far
East, FMR U.K., and FIMM.
Stephen G. Manning Assistant Treasurer of FMR
Far East, FMR, FMR U.K., and
FIMM; Vice President and
Treasurer of FMR Corp.
Billy Wilder Vice President of FMR Far
East; President and
Representative Director of
FIJ.
Item 27. 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 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 28. Location of Accounts and Records
All accounts, books, and other documents required to be maintained by
Section 31(a) of the 1940 Act and the Rules promulgated thereunder are
maintained by Fidelity Management & Research Company, Fidelity Service
Company, Inc. or Fidelity Investments Institutional Operations
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 29. Management Services
Not applicable.
Item 30. Undertakings
Not applicable.
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. 42 to the
Registration Statement to be signed on its behalf by the undersigned,
thereunto duly authorized, in the City of Boston, and Commonwealth of
Massachusetts, on the 28th day of September, 1999.
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.
<TABLE>
<CAPTION>
<S> <C> <C>
(Signature) (Title) (Date)
/s/Edward C. Johnson 3d (dagger) President and Trustee September 28, 1999
Edward C. Johnson 3d (Principal Executive Officer)
/s/Richard A. Silver Treasurer September 28, 1999
Richard A. Silver
/s/Robert C. Pozen Trustee September 28, 1999
Robert C. Pozen
/s/Ralph F. Cox* Trustee September 28, 1999
Ralph F. Cox
/s/Phyllis Burke Davis* Trustee September 28, 1999
Phyllis Burke Davis
/s/Robert M. Gates** Trustee September 28, 1999
Robert M. Gates
/s/E. Bradley Jones* Trustee September 28, 1999
E. Bradley Jones
/s/Donald J. Kirk* Trustee September 28, 1999
Donald J. Kirk
/s/Peter S. Lynch* Trustee September 28, 1999
Peter S. Lynch
/s/Marvin L. Mann* Trustee September 28, 1999
Marvin L. Mann
/s/William O. McCoy* Trustee September 28, 1999
William O. McCoy
/s/Gerald C. McDonough* Trustee September 28, 1999
Gerald C. McDonough
/s/Thomas R. Williams* Trustee September 28, 1999
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:
Fidelity Aberdeen Street Trust Fidelity Hereford Street Trust
Fidelity Advisor Series I Fidelity Income Fund
Fidelity Advisor Series II Fidelity Institutional Cash
Fidelity Advisor Series III Portfolios
Fidelity Advisor Series IV Fidelity Institutional
Fidelity Advisor Series V Tax-Exempt Cash Portfolios
Fidelity Advisor Series VI Fidelity Investment Trust
Fidelity Advisor Series VII Fidelity Magellan Fund
Fidelity Advisor Series VIII Fidelity Massachusetts
Fidelity Beacon Street Trust Municipal Trust
Fidelity Boston Street Trust Fidelity Money Market Trust
Fidelity California Municipal Fidelity Mt. Vernon Street
Trust Trust
Fidelity California Municipal Fidelity Municipal Trust
Trust II Fidelity Municipal Trust II
Fidelity Capital Trust Fidelity New York Municipal
Fidelity Charles Street Trust Trust
Fidelity Commonwealth Trust Fidelity New York Municipal
Fidelity Concord Street Trust Trust II
Fidelity Congress Street Fund Fidelity Phillips Street Trust
Fidelity Contrafund Fidelity Puritan Trust
Fidelity Corporate Trust Fidelity Revere Street Trust
Fidelity Court Street Trust Fidelity School Street Trust
Fidelity Court Street Trust II Fidelity Securities Fund
Fidelity Covington Trust Fidelity Select Portfolios
Fidelity Daily Money Fund Fidelity Sterling Performance
Fidelity Destiny Portfolios Portfolio, L.P.
Fidelity Deutsche Mark Fidelity Summer Street Trust
Performance Fidelity Trend Fund
Portfolio, L.P. Fidelity U.S.
Fidelity Devonshire Trust Investments-Bond Fund, L.P.
Fidelity Exchange Fund Fidelity U.S.
Fidelity Financial Trust Investments-Government
Fidelity Fixed-Income Trust Securities
Fidelity Government Fund, L.P.
Securities Fund Fidelity Union Street Trust
Fidelity Hastings Street Trust Fidelity Union Street Trust II
Fidelity Yen Performance
Portfolio, L.P.
Newbury Street Trust
Variable Insurance Products
Fund
Variable Insurance Products
Fund II
Variable Insurance Products
Fund III
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:
Fidelity Aberdeen Street Trust Fidelity Government
Fidelity Advisor Annuity Fund Securities Fund
Fidelity Advisor Series I Fidelity Hastings Street Trust
Fidelity Advisor Series II Fidelity Hereford Street Trust
Fidelity Advisor Series III Fidelity Income Fund
Fidelity Advisor Series IV Fidelity Institutional Cash
Fidelity Advisor Series V Portfolios
Fidelity Advisor Series VI Fidelity Institutional
Fidelity Advisor Series VII Tax-Exempt Cash Portfolios
Fidelity Advisor Series VIII Fidelity Institutional Trust
Fidelity Beacon Street Trust Fidelity Investment Trust
Fidelity Boston Street Trust Fidelity Magellan Fund
Fidelity California Municipal Fidelity Massachusetts
Trust Municipal Trust
Fidelity California Municipal Fidelity Money Market Trust
Trust II Fidelity Mt. Vernon Street
Fidelity Capital Trust Trust
Fidelity Charles Street Trust Fidelity Municipal Trust
Fidelity Commonwealth Trust Fidelity Municipal Trust II
Fidelity Congress Street Fund Fidelity New York Municipal
Fidelity Contrafund Trust
Fidelity Corporate Trust Fidelity New York Municipal
Fidelity Court Street Trust Trust II
Fidelity Court Street Trust II Fidelity Phillips Street Trust
Fidelity Covington Trust Fidelity Puritan Trust
Fidelity Daily Money Fund Fidelity Revere Street Trust
Fidelity Daily Tax-Exempt Fund Fidelity School Street Trust
Fidelity Destiny Portfolios Fidelity Securities Fund
Fidelity Deutsche Mark Fidelity Select Portfolios
Performance Fidelity Sterling Performance
Portfolio, L.P. Portfolio, L.P.
Fidelity Devonshire Trust Fidelity Summer Street Trust
Fidelity Exchange Fund Fidelity Trend Fund
Fidelity Financial Trust Fidelity U.S.
Fidelity Fixed-Income Trust Investments-Bond Fund, L.P.
Fidelity U.S.
Investments-Government
Securities
Fund, L.P.
Fidelity Union Street Trust
Fidelity Union Street Trust II
Fidelity Yen Performance
Portfolio, L.P.
Variable Insurance Products
Fund
Variable Insurance Products
Fund II
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 Burhead /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:
Fidelity Aberdeen Street Trust Fidelity Government
Fidelity Advisor Annuity Fund Securities Fund
Fidelity Advisor Series I Fidelity Hastings Street Trust
Fidelity Advisor Series II Fidelity Hereford Street Trust
Fidelity Advisor Series III Fidelity Income Fund
Fidelity Advisor Series IV Fidelity Institutional Cash
Fidelity Advisor Series V Portfolios
Fidelity Advisor Series VI Fidelity Institutional
Fidelity Advisor Series VII Tax-Exempt Cash Portfolios
Fidelity Advisor Series VIII Fidelity Institutional Trust
Fidelity Beacon Street Trust Fidelity Investment Trust
Fidelity Boston Street Trust Fidelity Magellan Fund
Fidelity California Municipal Fidelity Massachusetts
Trust Municipal Trust
Fidelity California Municipal Fidelity Money Market Trust
Trust II Fidelity Mt. Vernon Street
Fidelity Capital Trust Trust
Fidelity Charles Street Trust Fidelity Municipal Trust
Fidelity Commonwealth Trust Fidelity Municipal Trust II
Fidelity Congress Street Fund Fidelity New York Municipal
Fidelity Contrafund Trust
Fidelity Corporate Trust Fidelity New York Municipal
Fidelity Court Street Trust Trust II
Fidelity Court Street Trust II Fidelity Phillips Street Trust
Fidelity Covington Trust Fidelity Puritan Trust
Fidelity Daily Money Fund Fidelity Revere Street Trust
Fidelity Daily Tax-Exempt Fund Fidelity School Street Trust
Fidelity Destiny Portfolios Fidelity Securities Fund
Fidelity Deutsche Mark Fidelity Select Portfolios
Performance Fidelity Sterling Performance
Portfolio, L.P. Portfolio, L.P.
Fidelity Devonshire Trust Fidelity Summer Street Trust
Fidelity Exchange Fund Fidelity Trend Fund
Fidelity Financial Trust Fidelity U.S.
Fidelity Fixed-Income Trust Investments-Bond Fund, L.P.
Fidelity U.S.
Investments-Government
Securities
Fund, L.P.
Fidelity Union Street Trust
Fidelity Union Street Trust II
Fidelity Yen Performance
Portfolio, L.P.
Variable Insurance Products
Fund
Variable Insurance Products
Fund II
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 i
KIRKPATRICK & LOCKHART LLP
1800 Massachusetts Avenue, N.W.
2nd Floor
Washington, D.C. 20036-1800
Telephone (202) 778-9000
Facsimile (202) 778-9100
www.kl.com
September 17, 1999
Fidelity Advisor Series VII
82 Devonshire Street
Boston, Massachusetts 02109
Ladies and Gentlemen:
You have requested our opinion, as counsel to Fidelity Advisor Series
VII (the "Trust"), as to certain matters regarding the issuance of
Shares of the Trust. As used in this letter, the term "Shares" means
the Class A, Class T, Class B, Class C and Institutional Class shares
of beneficial interest 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, each a series of the Trust.
As such counsel, we have examined certified or other copies, believed
by us to be genuine, of the Trust's Declaration of Trust and by-laws
and such resolutions and minutes of meetings of the Trust's Board of
Trustees as we have deemed relevant to our opinion, as set forth
herein. Our opinion is limited to the laws and facts in existence on
the date hereof, and it is further limited to the laws (other than the
conflict of law rules) in the Commonwealth of Massachusetts that in
our experience are normally applicable to the issuance of shares by
unincorporated voluntary associations and to the Securities Act of
1933 ("1933 Act"), the Investment Company Act of 1940 ("1940 Act") and
the regulations of the Securities and Exchange Commission ("SEC")
thereunder.
Based on present laws and facts, we are of the opinion that the
issuance of the Shares has been duly authorized by the Trust and that,
when sold in accordance with the terms contemplated by Post-Effective
Amendment No. 42 to the Trust's Registration Statement on Form N-1A
and each subsequent Post-Effective Amendment ("PEA") to said
registration statement, including receipt by the Trust of full payment
for the Shares and compliance with the 1933 Act and the 1940 Act, the
Shares will have been validly issued, fully paid and non-assessable.
The Trust is an entity of the type commonly known as a "Massachusetts
business trust." Under Massachusetts law, shareholders could, under
certain circumstances, be held personally liable for the obligations
of the Trust. The Declaration of Trust states that all persons
extending credit to, contracting with or having any claim against the
Trust or the Trustees shall look only to the assets of the appropriate
series of the Trust for payment under such credit, contract or claim;
and neither the shareholders nor the Trustees, nor any of their
agents, whether past, present or future, shall be personally liable
therefor. It also requires that every note, bond, contract or other
undertaking issued by or on behalf of the Trust or the Trustees
relating to the Trust shall include a recitation limiting the
obligation represented thereby to the Trust and its assets. The
Declaration of Trust further provides: (1) for indemnification from
the assets of the series of the Trust for all loss and expense of any
shareholder held personally liable for the obligations of the Trust by
virtue of ownership of shares of the Trust; and (2) for the series of
the Trust to assume the defense of any claim made against the
shareholder for any act or obligation of the series of the Trust.
Thus, the risk of a shareholder incurring financial loss on account of
shareholder liability is limited to circumstances in which the Trust
or series would be unable to meet its obligations.
We hereby consent to this opinion accompanying or being incorporated
by reference in the PEA when it is filed with the SEC.
Very truly yours,
KIRKPATRICK & LOCKHART LLP
/s/ Kirkpatrick & Lockhart LLP
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the incorporation by reference into the
Prospectus and Statement of Additional Information in Post-Effective
Amendment No. 42 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 Health Care Fund, Fidelity
Advisor Natural Resources Fund, Fidelity Advisor Technology 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 Health Care
Fund, Fidelity Advisor Natural Resources Fund, Fidelity Advisor
Technology Fund, and Fidelity Advisor Utilities Growth Fund.
We further consent to the references to our Firm under the heading
"Financial Highlights" in the Prospectus.
/s/ PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
September 29, 1999
INDEPENDENT AUDITORS' CONSENT
We consent to the incorporation by reference in this Post-Effective
Amendment No. 42 to the Registration Statement No. 811-3010 on Form
N-1A of Fidelity Advisor Series VII of our report dated September 14,
1999 appearing in the Annual Report to Shareholders 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 year ended July 31, 1999.
We also consent to the references to us under the headings "Financial
Highlights" in the Prospectus and "Auditor" in the Statement of
Additional Information, which are part of such Registration Statement.
/s/Deloitte & Touche LLP
Boston, Massachusetts
September 29, 1999
Exhibit m(1)
DISTRIBUTION AND SERVICE PLAN
FIDELITY ADVISOR CONSUMER INDUSTRIES FUND
CLASS A SHARES
1. This Distribution and Service Plan (the "Plan"), when effective in
accordance with its terms, shall be the written plan contemplated by
Securities and Exchange Commission Rule 12b-1 under the Investment
Company Act of 1940, as amended (the "Act") for the Class A shares of
Fidelity Advisor Consumer Industries Fund ("Class A") a class of
shares of Fidelity Advisor Consumer Industries Fund, (the "Fund"), a
portfolio of Fidelity Advisor Series VII (the "Trust").
2. The Trust has entered into a General Distribution Agreement on
behalf of the Fund with Fidelity Distributors Corporation (the
"Distributor"), under which the Distributor uses all reasonable
efforts, consistent with its other business, to secure purchasers of
the Fund's shares of beneficial interest (the "Shares"). Such efforts
may include, but neither are required to include nor are limited to,
the following: (1) formulation and implementation of marketing and
promotional activities, such as mail promotions and television, radio,
newspaper, magazine and other mass media advertising; (2) preparation,
printing and distribution of sales literature; (3) preparation,
printing and distribution of prospectuses of the Fund and reports to
recipients other than existing shareholders of the Fund; (4) obtaining
such information, analyses and reports with respect to marketing and
promotional activities as the Distributor may, from time to time, deem
advisable; (5) making payments to securities dealers and others
engaged in the sale of Shares or who engage in shareholder support
services; and (6) providing training, marketing and support to such
dealers and others with respect to the sale of Shares.
3. In consideration for the services provided and the expenses
incurred by the Distributor pursuant to the General Distribution
Agreement and paragraph 2 hereof, all with respect to Class A Shares,
Class A shall pay to the Distributor a fee at the annual rate of 0.75%
(or such lesser amount as the Trustees may, from time to time,
determine) of the average daily net assets of Class A throughout the
month. The determination of daily net assets shall be made at the
close of business each day throughout the month and computed in the
manner specified in the Fund's then current Prospectus for the
determination of the net asset value of the Fund's Class A Shares.
The Distributor may use all or any portion of the fee received
pursuant to this Plan to compensate securities dealers or other
persons who have engaged in the sale of Class A Shares or in
shareholder support services pursuant to agreements with the
Distributor, or to pay any of the expenses associated with other
activities authorized under paragraph 2 hereof.
4. The Fund presently pays, and will continue to pay, a management
fee to Fidelity Management & Research Company (the "Adviser") pursuant
to a management agreement between the Fund and the Adviser (the
"Management Contract"). It is recognized that the Adviser may use its
management fee revenue, as well as its past profits or its resources
from any other source, to make payment to the Distributor with respect
to any expenses incurred in connection with the distribution of Class
A Shares, including the activities referred to in paragraph 2 hereof.
To the extent that the payment of management fees by the Fund to the
Adviser should be deemed to be indirect financing of any activity
primarily intended to result in the sale of Class A Shares within the
meaning of Rule 12b-1, then such payment shall be deemed to be
authorized by this Plan.
5. This Plan shall become effective upon the first business day of
the month following approval by a vote of at least a "majority of the
outstanding voting securities" (as defined in the Act) of Class A,
this Plan having been approved by a vote of a majority of the Trustees
of the Trust, including a majority of Trustees who are not "interested
persons" of the Trust (as defined in the Act) and who have no direct
or indirect financial interest in the operation of this Plan or in any
agreement related to the Plan (the "Independent Trustees"), cast in
person at a meeting called for the purpose of voting on this Plan.
6. This Plan shall, unless terminated as hereinafter provided, remain
in effect until April 30, 2000, and from year to year thereafter;
provided, however, that such continuance is subject to approval
annually by a vote of a majority of the Trustees of the Trust,
including a majority of the Independent Trustees, cast in person at a
meeting called for the purpose of voting on this Plan. This Plan may
be amended at any time by the Board of Trustees, provided that (a) any
amendment to increase materially the fee provided for in paragraph 3
hereof shall be effective only upon approval by a vote of a majority
of the outstanding voting securities of Class A and (b) any material
amendment of this Plan shall be effective only upon approval in the
manner provided in the first sentence of this paragraph 6.
7. This Plan may be terminated at any time, without the payment of
any penalty, by vote of a majority of the Independent Trustees or by a
vote of a majority of the outstanding voting securities of Class A.
8. During the existence of this Plan, the Trust shall require the
Adviser and/or the Distributor to provide the Trust, for review by the
Trustees, and the Trustees shall review, at least quarterly, a written
report of the amounts expended in connection with financing any
activity primarily intended to result in the sale of shares of Class A
(making estimates of such costs where necessary or desirable) and the
purposes for which such expenditures were made.
9. This Plan does not require the Adviser or Distributor to perform
any specific type or level of distribution activities or to incur any
specific level of expenses for activities primarily intended to result
in the sale of Class A Shares.
10. Consistent with the limitation of shareholder liability as set
forth in the Trust's Declaration of Trust, any obligation assumed by
Class A pursuant to this Plan and any agreement related to this Plan
shall be limited in all cases to Class A and its assets and shall not
constitute an obligation of any shareholder of the Trust or of any
other class of the Fund, series of the Trust or class of such series.
11. If any provision of the Plan shall be held or made invalid by a
court decision, statute, rule or otherwise, the remainder of the Plan
shall not be affected thereby.
Exhibit m(2)
DISTRIBUTION AND SERVICE PLAN
FIDELITY ADVISOR CYCLICAL INDUSTRIES FUND
CLASS A SHARES
1. This Distribution and Service Plan (the "Plan"), when effective in
accordance with its terms, shall be the written plan contemplated by
Securities and Exchange Commission Rule 12b-1 under the Investment
Company Act of 1940, as amended (the "Act") for the Class A shares of
Fidelity Advisor Cyclical Industries Fund ("Class A") a class of
shares of Fidelity Advisor Cyclical Industries Fund, (the "Fund"), a
portfolio of Fidelity Advisor Series VII (the "Trust").
2. The Trust has entered into a General Distribution Agreement on
behalf of the Fund with Fidelity Distributors Corporation (the
"Distributor"), under which the Distributor uses all reasonable
efforts, consistent with its other business, to secure purchasers of
the Fund's shares of beneficial interest (the "Shares"). Such efforts
may include, but neither are required to include nor are limited to,
the following: (1) formulation and implementation of marketing and
promotional activities, such as mail promotions and television, radio,
newspaper, magazine and other mass media advertising; (2) preparation,
printing and distribution of sales literature; (3) preparation,
printing and distribution of prospectuses of the Fund and reports to
recipients other than existing shareholders of the Fund; (4) obtaining
such information, analyses and reports with respect to marketing and
promotional activities as the Distributor may, from time to time, deem
advisable; (5) making payments to securities dealers and others
engaged in the sale of Shares or who engage in shareholder support
services; and (6) providing training, marketing and support to such
dealers and others with respect to the sale of Shares.
3. In consideration for the services provided and the expenses
incurred by the Distributor pursuant to the General Distribution
Agreement and paragraph 2 hereof, all with respect to Class A Shares,
Class A shall pay to the Distributor a fee at the annual rate of 0.75%
(or such lesser amount as the Trustees may, from time to time,
determine) of the average daily net assets of Class A throughout the
month. The determination of daily net assets shall be made at the
close of business each day throughout the month and computed in the
manner specified in the Fund's then current Prospectus for the
determination of the net asset value of the Fund's Class A Shares.
The Distributor may use all or any portion of the fee received
pursuant to this Plan to compensate securities dealers or other
persons who have engaged in the sale of Class A Shares or in
shareholder support services pursuant to agreements with the
Distributor, or to pay any of the expenses associated with other
activities authorized under paragraph 2 hereof.
4. The Fund presently pays, and will continue to pay, a management
fee to Fidelity Management & Research Company (the "Adviser") pursuant
to a management agreement between the Fund and the Adviser (the
"Management Contract"). It is recognized that the Adviser may use its
management fee revenue, as well as its past profits or its resources
from any other source, to make payment to the Distributor with respect
to any expenses incurred in connection with the distribution of Class
A Shares, including the activities referred to in paragraph 2 hereof.
To the extent that the payment of management fees by the Fund to the
Adviser should be deemed to be indirect financing of any activity
primarily intended to result in the sale of Class A Shares within the
meaning of Rule 12b-1, then such payment shall be deemed to be
authorized by this Plan.
5. This Plan shall become effective upon the first business day of
the month following approval by a vote of at least a "majority of the
outstanding voting securities" (as defined in the Act) of Class A,
this Plan having been approved by a vote of a majority of the Trustees
of the Trust, including a majority of Trustees who are not "interested
persons" of the Trust (as defined in the Act) and who have no direct
or indirect financial interest in the operation of this Plan or in any
agreement related to the Plan (the "Independent Trustees"), cast in
person at a meeting called for the purpose of voting on this Plan.
6. This Plan shall, unless terminated as hereinafter provided, remain
in effect until April 30, 2000, and from year to year thereafter;
provided, however, that such continuance is subject to approval
annually by a vote of a majority of the Trustees of the Trust,
including a majority of the Independent Trustees, cast in person at a
meeting called for the purpose of voting on this Plan. This Plan may
be amended at any time by the Board of Trustees, provided that (a) any
amendment to increase materially the fee provided for in paragraph 3
hereof shall be effective only upon approval by a vote of a majority
of the outstanding voting securities of Class A and (b) any material
amendment of this Plan shall be effective only upon approval in the
manner provided in the first sentence of this paragraph 6.
7. This Plan may be terminated at any time, without the payment of
any penalty, by vote of a majority of the Independent Trustees or by a
vote of a majority of the outstanding voting securities of Class A.
8. During the existence of this Plan, the Trust shall require the
Adviser and/or the Distributor to provide the Trust, for review by the
Trustees, and the Trustees shall review, at least quarterly, a written
report of the amounts expended in connection with financing any
activity primarily intended to result in the sale of shares of Class A
(making estimates of such costs where necessary or desirable) and the
purposes for which such expenditures were made.
9. This Plan does not require the Adviser or Distributor to perform
any specific type or level of distribution activities or to incur any
specific level of expenses for activities primarily intended to result
in the sale of Class A Shares.
10. Consistent with the limitation of shareholder liability as set
forth in the Trust's Declaration of Trust, any obligation assumed by
Class A pursuant to this Plan and any agreement related to this Plan
shall be limited in all cases to Class A and its assets and shall not
constitute an obligation of any shareholder of the Trust or of any
other class of the Fund, series of the Trust or class of such series.
11. If any provision of the Plan shall be held or made invalid by a
court decision, statute, rule or otherwise, the remainder of the Plan
shall not be affected thereby.
Exhibit m(3)
DISTRIBUTION AND SERVICE PLAN
FIDELITY ADVISOR FINANCIAL SERVICES FUND
CLASS A SHARES
1. This Distribution and Service Plan (the "Plan"), when effective in
accordance with its terms, shall be the written plan contemplated by
Securities and Exchange Commission Rule 12b-1 under the Investment
Company Act of 1940, as amended (the "Act") for the Class A shares of
Fidelity Advisor Financial Services Fund ("Class A") a class of shares
of Fidelity Advisor Financial Services Fund, (the "Fund"), a portfolio
of Fidelity Advisor Series VII (the "Trust").
2. The Trust has entered into a General Distribution Agreement on
behalf of the Fund with Fidelity Distributors Corporation (the
"Distributor"), under which the Distributor uses all reasonable
efforts, consistent with its other business, to secure purchasers of
the Fund's shares of beneficial interest (the "Shares"). Such efforts
may include, but neither are required to include nor are limited to,
the following: (1) formulation and implementation of marketing and
promotional activities, such as mail promotions and television, radio,
newspaper, magazine and other mass media advertising; (2) preparation,
printing and distribution of sales literature; (3) preparation,
printing and distribution of prospectuses of the Fund and reports to
recipients other than existing shareholders of the Fund; (4) obtaining
such information, analyses and reports with respect to marketing and
promotional activities as the Distributor may, from time to time, deem
advisable; (5) making payments to securities dealers and others
engaged in the sale of Shares or who engage in shareholder support
services; and (6) providing training, marketing and support to such
dealers and others with respect to the sale of Shares.
3. In consideration for the services provided and the expenses
incurred by the Distributor pursuant to the General Distribution
Agreement and paragraph 2 hereof, all with respect to Class A Shares,
Class A shall pay to the Distributor a fee at the annual rate of 0.75%
(or such lesser amount as the Trustees may, from time to time,
determine) of the average daily net assets of Class A throughout the
month. The determination of daily net assets shall be made at the
close of business each day throughout the month and computed in the
manner specified in the Fund's then current Prospectus for the
determination of the net asset value of the Fund's Class A Shares.
The Distributor may use all or any portion of the fee received
pursuant to this Plan to compensate securities dealers or other
persons who have engaged in the sale of Class A Shares or in
shareholder support services pursuant to agreements with the
Distributor, or to pay any of the expenses associated with other
activities authorized under paragraph 2 hereof.
4. The Fund presently pays, and will continue to pay, a management
fee to Fidelity Management & Research Company (the "Adviser") pursuant
to a management agreement between the Fund and the Adviser (the
"Management Contract"). It is recognized that the Adviser may use its
management fee revenue, as well as its past profits or its resources
from any other source, to make payment to the Distributor with respect
to any expenses incurred in connection with the distribution of Class
A Shares, including the activities referred to in paragraph 2 hereof.
To the extent that the payment of management fees by the Fund to the
Adviser should be deemed to be indirect financing of any activity
primarily intended to result in the sale of Class A Shares within the
meaning of Rule 12b-1, then such payment shall be deemed to be
authorized by this Plan.
5. This Plan shall become effective upon the first business day of
the month following approval by a vote of at least a "majority of the
outstanding voting securities" (as defined in the Act) of Class A,
this Plan having been approved by a vote of a majority of the Trustees
of the Trust, including a majority of Trustees who are not "interested
persons" of the Trust (as defined in the Act) and who have no direct
or indirect financial interest in the operation of this Plan or in any
agreement related to the Plan (the "Independent Trustees"), cast in
person at a meeting called for the purpose of voting on this Plan.
6. This Plan shall, unless terminated as hereinafter provided, remain
in effect until April 30, 2000, and from year to year thereafter;
provided, however, that such continuance is subject to approval
annually by a vote of a majority of the Trustees of the Trust,
including a majority of the Independent Trustees, cast in person at a
meeting called for the purpose of voting on this Plan. This Plan may
be amended at any time by the Board of Trustees, provided that (a) any
amendment to increase materially the fee provided for in paragraph 3
hereof shall be effective only upon approval by a vote of a majority
of the outstanding voting securities of Class A and (b) any material
amendment of this Plan shall be effective only upon approval in the
manner provided in the first sentence of this paragraph 6.
7. This Plan may be terminated at any time, without the payment of
any penalty, by vote of a majority of the Independent Trustees or by a
vote of a majority of the outstanding voting securities of Class A.
8. During the existence of this Plan, the Trust shall require the
Adviser and/or the Distributor to provide the Trust, for review by the
Trustees, and the Trustees shall review, at least quarterly, a written
report of the amounts expended in connection with financing any
activity primarily intended to result in the sale of shares of Class A
(making estimates of such costs where necessary or desirable) and the
purposes for which such expenditures were made.
9. This Plan does not require the Adviser or Distributor to perform
any specific type or level of distribution activities or to incur any
specific level of expenses for activities primarily intended to result
in the sale of Class A Shares.
10. Consistent with the limitation of shareholder liability as set
forth in the Trust's Declaration of Trust, any obligation assumed by
Class A pursuant to this Plan and any agreement related to this Plan
shall be limited in all cases to Class A and its assets and shall not
constitute an obligation of any shareholder of the Trust or of any
other class of the Fund, series of the Trust or class of such series.
11. If any provision of the Plan shall be held or made invalid by a
court decision, statute, rule or otherwise, the remainder of the Plan
shall not be affected thereby.
Exhibit m(4)
DISTRIBUTION AND SERVICE PLAN
FIDELITY ADVISOR HEALTH CARE FUND
CLASS A SHARES
1. This Distribution and Service Plan (the "Plan"), when effective in
accordance with its terms, shall be the written plan contemplated by
Securities and Exchange Commission Rule 12b-1 under the Investment
Company Act of 1940, as amended (the "Act") for the Class A shares of
Fidelity Advisor Health Care Fund ("Class A") a class of shares of
Fidelity Advisor Health Care Fund, (the "Fund"), a portfolio of
Fidelity Advisor Series VII (the "Trust").
2. The Trust has entered into a General Distribution Agreement on
behalf of the Fund with Fidelity Distributors Corporation (the
"Distributor"), under which the Distributor uses all reasonable
efforts, consistent with its other business, to secure purchasers of
the Fund's shares of beneficial interest (the "Shares"). Such efforts
may include, but neither are required to include nor are limited to,
the following: (1) formulation and implementation of marketing and
promotional activities, such as mail promotions and television, radio,
newspaper, magazine and other mass media advertising; (2) preparation,
printing and distribution of sales literature; (3) preparation,
printing and distribution of prospectuses of the Fund and reports to
recipients other than existing shareholders of the Fund; (4) obtaining
such information, analyses and reports with respect to marketing and
promotional activities as the Distributor may, from time to time, deem
advisable; (5) making payments to securities dealers and others
engaged in the sale of Shares or who engage in shareholder support
services; and (6) providing training, marketing and support to such
dealers and others with respect to the sale of Shares.
3. In consideration for the services provided and the expenses
incurred by the Distributor pursuant to the General Distribution
Agreement and paragraph 2 hereof, all with respect to Class A Shares,
Class A shall pay to the Distributor a fee at the annual rate of 0.75%
(or such lesser amount as the Trustees may, from time to time,
determine) of the average daily net assets of Class A throughout the
month. The determination of daily net assets shall be made at the
close of business each day throughout the month and computed in the
manner specified in the Fund's then current Prospectus for the
determination of the net asset value of the Fund's Class A Shares.
The Distributor may use all or any portion of the fee received
pursuant to this Plan to compensate securities dealers or other
persons who have engaged in the sale of Class A Shares or in
shareholder support services pursuant to agreements with the
Distributor, or to pay any of the expenses associated with other
activities authorized under paragraph 2 hereof.
4. The Fund presently pays, and will continue to pay, a management
fee to Fidelity Management & Research Company (the "Adviser") pursuant
to a management agreement between the Fund and the Adviser (the
"Management Contract"). It is recognized that the Adviser may use its
management fee revenue, as well as its past profits or its resources
from any other source, to make payment to the Distributor with respect
to any expenses incurred in connection with the distribution of Class
A Shares, including the activities referred to in paragraph 2 hereof.
To the extent that the payment of management fees by the Fund to the
Adviser should be deemed to be indirect financing of any activity
primarily intended to result in the sale of Class A Shares within the
meaning of Rule 12b-1, then such payment shall be deemed to be
authorized by this Plan.
5. This Plan shall become effective upon the first business day of
the month following approval by a vote of at least a "majority of the
outstanding voting securities" (as defined in the Act) of Class A,
this Plan having been approved by a vote of a majority of the Trustees
of the Trust, including a majority of Trustees who are not "interested
persons" of the Trust (as defined in the Act) and who have no direct
or indirect financial interest in the operation of this Plan or in any
agreement related to the Plan (the "Independent Trustees"), cast in
person at a meeting called for the purpose of voting on this Plan.
6. This Plan shall, unless terminated as hereinafter provided, remain
in effect until April 30, 2000, and from year to year thereafter;
provided, however, that such continuance is subject to approval
annually by a vote of a majority of the Trustees of the Trust,
including a majority of the Independent Trustees, cast in person at a
meeting called for the purpose of voting on this Plan. This Plan may
be amended at any time by the Board of Trustees, provided that (a) any
amendment to increase materially the fee provided for in paragraph 3
hereof shall be effective only upon approval by a vote of a majority
of the outstanding voting securities of Class A and (b) any material
amendment of this Plan shall be effective only upon approval in the
manner provided in the first sentence of this paragraph 6.
7. This Plan may be terminated at any time, without the payment of
any penalty, by vote of a majority of the Independent Trustees or by a
vote of a majority of the outstanding voting securities of Class A.
8. During the existence of this Plan, the Trust shall require the
Adviser and/or the Distributor to provide the Trust, for review by the
Trustees, and the Trustees shall review, at least quarterly, a written
report of the amounts expended in connection with financing any
activity primarily intended to result in the sale of shares of Class A
(making estimates of such costs where necessary or desirable) and the
purposes for which such expenditures were made.
9. This Plan does not require the Adviser or Distributor to perform
any specific type or level of distribution activities or to incur any
specific level of expenses for activities primarily intended to result
in the sale of Class A Shares.
10. Consistent with the limitation of shareholder liability as set
forth in the Trust's Declaration of Trust, any obligation assumed by
Class A pursuant to this Plan and any agreement related to this Plan
shall be limited in all cases to Class A and its assets and shall not
constitute an obligation of any shareholder of the Trust or of any
other class of the Fund, series of the Trust or class of such series.
11. If any provision of the Plan shall be held or made invalid by a
court decision, statute, rule or otherwise, the remainder of the Plan
shall not be affected thereby.
Exhibit m(5)
DISTRIBUTION AND SERVICE PLAN
FIDELITY ADVISOR TECHNOLOGY FUND
CLASS A SHARES
1. This Distribution and Service Plan (the "Plan"), when effective in
accordance with its terms, shall be the written plan contemplated by
Securities and Exchange Commission Rule 12b-1 under the Investment
Company Act of 1940, as amended (the "Act") for the Class A shares of
Fidelity Advisor Technology Fund ("Class A") a class of shares of
Fidelity Advisor Technology Fund, (the "Fund"), a portfolio of
Fidelity Advisor Series VII (the "Trust").
2. The Trust has entered into a General Distribution Agreement on
behalf of the Fund with Fidelity Distributors Corporation (the
"Distributor"), under which the Distributor uses all reasonable
efforts, consistent with its other business, to secure purchasers of
the Fund's shares of beneficial interest (the "Shares"). Such efforts
may include, but neither are required to include nor are limited to,
the following: (1) formulation and implementation of marketing and
promotional activities, such as mail promotions and television, radio,
newspaper, magazine and other mass media advertising; (2) preparation,
printing and distribution of sales literature; (3) preparation,
printing and distribution of prospectuses of the Fund and reports to
recipients other than existing shareholders of the Fund; (4) obtaining
such information, analyses and reports with respect to marketing and
promotional activities as the Distributor may, from time to time, deem
advisable; (5) making payments to securities dealers and others
engaged in the sale of Shares or who engage in shareholder support
services; and (6) providing training, marketing and support to such
dealers and others with respect to the sale of Shares.
3. In consideration for the services provided and the expenses
incurred by the Distributor pursuant to the General Distribution
Agreement and paragraph 2 hereof, all with respect to Class A Shares,
Class A shall pay to the Distributor a fee at the annual rate of 0.75%
(or such lesser amount as the Trustees may, from time to time,
determine) of the average daily net assets of Class A throughout the
month. The determination of daily net assets shall be made at the
close of business each day throughout the month and computed in the
manner specified in the Fund's then current Prospectus for the
determination of the net asset value of the Fund's Class A Shares.
The Distributor may use all or any portion of the fee received
pursuant to this Plan to compensate securities dealers or other
persons who have engaged in the sale of Class A Shares or in
shareholder support services pursuant to agreements with the
Distributor, or to pay any of the expenses associated with other
activities authorized under paragraph 2 hereof.
4. The Fund presently pays, and will continue to pay, a management
fee to Fidelity Management & Research Company (the "Adviser") pursuant
to a management agreement between the Fund and the Adviser (the
"Management Contract"). It is recognized that the Adviser may use its
management fee revenue, as well as its past profits or its resources
from any other source, to make payment to the Distributor with respect
to any expenses incurred in connection with the distribution of Class
A Shares, including the activities referred to in paragraph 2 hereof.
To the extent that the payment of management fees by the Fund to the
Adviser should be deemed to be indirect financing of any activity
primarily intended to result in the sale of Class A Shares within the
meaning of Rule 12b-1, then such payment shall be deemed to be
authorized by this Plan.
5. This Plan shall become effective upon the first business day of
the month following approval by a vote of at least a "majority of the
outstanding voting securities" (as defined in the Act) of Class A,
this Plan having been approved by a vote of a majority of the Trustees
of the Trust, including a majority of Trustees who are not "interested
persons" of the Trust (as defined in the Act) and who have no direct
or indirect financial interest in the operation of this Plan or in any
agreement related to the Plan (the "Independent Trustees"), cast in
person at a meeting called for the purpose of voting on this Plan.
6. This Plan shall, unless terminated as hereinafter provided, remain
in effect until April 30, 2000, and from year to year thereafter;
provided, however, that such continuance is subject to approval
annually by a vote of a majority of the Trustees of the Trust,
including a majority of the Independent Trustees, cast in person at a
meeting called for the purpose of voting on this Plan. This Plan may
be amended at any time by the Board of Trustees, provided that (a) any
amendment to increase materially the fee provided for in paragraph 3
hereof shall be effective only upon approval by a vote of a majority
of the outstanding voting securities of Class A and (b) any material
amendment of this Plan shall be effective only upon approval in the
manner provided in the first sentence of this paragraph 6.
7. This Plan may be terminated at any time, without the payment of
any penalty, by vote of a majority of the Independent Trustees or by a
vote of a majority of the outstanding voting securities of Class A.
8. During the existence of this Plan, the Trust shall require the
Adviser and/or the Distributor to provide the Trust, for review by the
Trustees, and the Trustees shall review, at least quarterly, a written
report of the amounts expended in connection with financing any
activity primarily intended to result in the sale of shares of Class A
(making estimates of such costs where necessary or desirable) and the
purposes for which such expenditures were made.
9. This Plan does not require the Adviser or Distributor to perform
any specific type or level of distribution activities or to incur any
specific level of expenses for activities primarily intended to result
in the sale of Class A Shares.
10. Consistent with the limitation of shareholder liability as set
forth in the Trust's Declaration of Trust, any obligation assumed by
Class A pursuant to this Plan and any agreement related to this Plan
shall be limited in all cases to Class A and its assets and shall not
constitute an obligation of any shareholder of the Trust or of any
other class of the Fund, series of the Trust or class of such series.
11. If any provision of the Plan shall be held or made invalid by a
court decision, statute, rule or otherwise, the remainder of the Plan
shall not be affected thereby.
Exhibit m(6)
DISTRIBUTION AND SERVICE PLAN
FIDELITY ADVISOR UTILITIES GROWTH FUND
CLASS A SHARES
1. This Distribution and Service Plan (the "Plan"), when effective in
accordance with its terms, shall be the written plan contemplated by
Securities and Exchange Commission Rule 12b-1 under the Investment
Company Act of 1940, as amended (the "Act") for the Class A shares of
Fidelity Advisor Utilities Growth Fund ("Class A") a class of shares
of Fidelity Advisor Utilities Growth Fund, (the "Fund"), a portfolio
of Fidelity Advisor Series VII (the "Trust").
2. The Trust has entered into a General Distribution Agreement on
behalf of the Fund with Fidelity Distributors Corporation (the
"Distributor"), under which the Distributor uses all reasonable
efforts, consistent with its other business, to secure purchasers of
the Fund's shares of beneficial interest (the "Shares"). Such efforts
may include, but neither are required to include nor are limited to,
the following: (1) formulation and implementation of marketing and
promotional activities, such as mail promotions and television, radio,
newspaper, magazine and other mass media advertising; (2) preparation,
printing and distribution of sales literature; (3) preparation,
printing and distribution of prospectuses of the Fund and reports to
recipients other than existing shareholders of the Fund; (4) obtaining
such information, analyses and reports with respect to marketing and
promotional activities as the Distributor may, from time to time, deem
advisable; (5) making payments to securities dealers and others
engaged in the sale of Shares or who engage in shareholder support
services; and (6) providing training, marketing and support to such
dealers and others with respect to the sale of Shares.
3. In consideration for the services provided and the expenses
incurred by the Distributor pursuant to the General Distribution
Agreement and paragraph 2 hereof, all with respect to Class A Shares,
Class A shall pay to the Distributor a fee at the annual rate of 0.75%
(or such lesser amount as the Trustees may, from time to time,
determine) of the average daily net assets of Class A throughout the
month. The determination of daily net assets shall be made at the
close of business each day throughout the month and computed in the
manner specified in the Fund's then current Prospectus for the
determination of the net asset value of the Fund's Class A Shares.
The Distributor may use all or any portion of the fee received
pursuant to this Plan to compensate securities dealers or other
persons who have engaged in the sale of Class A Shares or in
shareholder support services pursuant to agreements with the
Distributor, or to pay any of the expenses associated with other
activities authorized under paragraph 2 hereof.
4. The Fund presently pays, and will continue to pay, a management
fee to Fidelity Management & Research Company (the "Adviser") pursuant
to a management agreement between the Fund and the Adviser (the
"Management Contract"). It is recognized that the Adviser may use its
management fee revenue, as well as its past profits or its resources
from any other source, to make payment to the Distributor with respect
to any expenses incurred in connection with the distribution of Class
A Shares, including the activities referred to in paragraph 2 hereof.
To the extent that the payment of management fees by the Fund to the
Adviser should be deemed to be indirect financing of any activity
primarily intended to result in the sale of Class A Shares within the
meaning of Rule 12b-1, then such payment shall be deemed to be
authorized by this Plan.
5. This Plan shall become effective upon the first business day of
the month following approval by a vote of at least a "majority of the
outstanding voting securities" (as defined in the Act) of Class A,
this Plan having been approved by a vote of a majority of the Trustees
of the Trust, including a majority of Trustees who are not "interested
persons" of the Trust (as defined in the Act) and who have no direct
or indirect financial interest in the operation of this Plan or in any
agreement related to the Plan (the "Independent Trustees"), cast in
person at a meeting called for the purpose of voting on this Plan.
6. This Plan shall, unless terminated as hereinafter provided, remain
in effect until April 30, 2000, and from year to year thereafter;
provided, however, that such continuance is subject to approval
annually by a vote of a majority of the Trustees of the Trust,
including a majority of the Independent Trustees, cast in person at a
meeting called for the purpose of voting on this Plan. This Plan may
be amended at any time by the Board of Trustees, provided that (a) any
amendment to increase materially the fee provided for in paragraph 3
hereof shall be effective only upon approval by a vote of a majority
of the outstanding voting securities of Class A and (b) any material
amendment of this Plan shall be effective only upon approval in the
manner provided in the first sentence of this paragraph 6.
7. This Plan may be terminated at any time, without the payment of
any penalty, by vote of a majority of the Independent Trustees or by a
vote of a majority of the outstanding voting securities of Class A.
8. During the existence of this Plan, the Trust shall require the
Adviser and/or the Distributor to provide the Trust, for review by the
Trustees, and the Trustees shall review, at least quarterly, a written
report of the amounts expended in connection with financing any
activity primarily intended to result in the sale of shares of Class A
(making estimates of such costs where necessary or desirable) and the
purposes for which such expenditures were made.
9. This Plan does not require the Adviser or Distributor to perform
any specific type or level of distribution activities or to incur any
specific level of expenses for activities primarily intended to result
in the sale of Class A Shares.
10. Consistent with the limitation of shareholder liability as set
forth in the Trust's Declaration of Trust, any obligation assumed by
Class A pursuant to this Plan and any agreement related to this Plan
shall be limited in all cases to Class A and its assets and shall not
constitute an obligation of any shareholder of the Trust or of any
other class of the Fund, series of the Trust or class of such series.
11. If any provision of the Plan shall be held or made invalid by a
court decision, statute, rule or otherwise, the remainder of the Plan
shall not be affected thereby.
Exhibit m(7)
DISTRIBUTION AND SERVICE PLAN
FIDELITY ADVISOR CONSUMER INDUSTRIES FUND
CLASS T SHARES
1. This Distribution and Service Plan (the "Plan"), when effective in
accordance with its terms, shall be the written plan contemplated by
Securities and Exchange Commission Rule 12b-1 under the Investment
Company Act of 1940, as amended (the "Act") for the Class T shares of
Fidelity Advisor Consumer Industries Fund ("Class T") a class of
shares of Fidelity Advisor Consumer Industries Fund, (the "Fund"), a
portfolio of Fidelity Advisor Series VII (the "Trust").
2. The Trust has entered into a General Distribution Agreement on
behalf of the Fund with Fidelity Distributors Corporation (the
"Distributor"), under which the Distributor uses all reasonable
efforts, consistent with its other business, to secure purchasers of
the Fund's shares of beneficial interest (the "Shares"). Such efforts
may include, but neither are required to include nor are limited to,
the following: (1) formulation and implementation of marketing and
promotional activities, such as mail promotions and television, radio,
newspaper, magazine and other mass media advertising; (2) preparation,
printing and distribution of sales literature; (3) preparation,
printing and distribution of prospectuses of the Fund and reports to
recipients other than existing shareholders of the Fund; (4) obtaining
such information, analyses and reports with respect to marketing and
promotional activities as the Distributor may, from time to time, deem
advisable; (5) making payments to securities dealers and others
engaged in the sale of Shares or who engage in shareholder support
services; and (6) providing training, marketing and support to such
dealers and others with respect to the sale of Shares.
3. In consideration for the services provided and the expenses
incurred by the Distributor pursuant to the General Distribution
Agreement and paragraph 2 hereof, all with respect to Class T Shares,
Class T shall pay to the Distributor a fee at the annual rate of 0.75%
(or such lesser amount as the Trustees may, from time to time,
determine) of the average daily net assets of Class T throughout the
month. The determination of daily net assets shall be made at the
close of business each day throughout the month and computed in the
manner specified in the Fund's then current Prospectus for the
determination of the net asset value of the Fund's Class T Shares.
The Distributor may use all or any portion of the fee received
pursuant to this Plan to compensate securities dealers or other
persons who have engaged in the sale of Class T Shares or in
shareholder support services pursuant to agreements with the
Distributor, or to pay any of the expenses associated with other
activities authorized under paragraph 2 hereof.
4. The Fund presently pays, and will continue to pay, a management
fee to Fidelity Management & Research Company (the "Adviser") pursuant
to a management agreement between the Fund and the Adviser (the
"Management Contract"). It is recognized that the Adviser may use its
management fee revenue, as well as its past profits or its resources
from any other source, to make payment to the Distributor with respect
to any expenses incurred in connection with the distribution of Class
T Shares, including the activities referred to in paragraph 2 hereof.
To the extent that the payment of management fees by the Fund to the
Adviser should be deemed to be indirect financing of any activity
primarily intended to result in the sale of Class T Shares within the
meaning of Rule 12b-1, then such payment shall be deemed to be
authorized by this Plan.
5. This Plan shall become effective upon the first business day of
the month following approval by a vote of at least a "majority of the
outstanding voting securities" (as defined in the Act) of Class T,
this Plan having been approved by a vote of a majority of the Trustees
of the Trust, including a majority of Trustees who are not "interested
persons" of the Trust (as defined in the Act) and who have no direct
or indirect financial interest in the operation of this Plan or in any
agreement related to the Plan (the "Independent Trustees"), cast in
person at a meeting called for the purpose of voting on this Plan.
6. This Plan shall, unless terminated as hereinafter provided, remain
in effect until April 30, 2000, and from year to year thereafter;
provided, however, that such continuance is subject to approval
annually by a vote of a majority of the Trustees of the Trust,
including a majority of the Independent Trustees, cast in person at a
meeting called for the purpose of voting on this Plan. This Plan may
be amended at any time by the Board of Trustees, provided that (a) any
amendment to increase materially the fee provided for in paragraph 3
hereof shall be effective only upon approval by a vote of a majority
of the outstanding voting securities of Class T and (b) any material
amendment of this Plan shall be effective only upon approval in the
manner provided in the first sentence of this paragraph 6.
7. This Plan may be terminated at any time, without the payment of
any penalty, by vote of a majority of the Independent Trustees or by a
vote of a majority of the outstanding voting securities of Class T.
8. During the existence of this Plan, the Trust shall require the
Adviser and/or the Distributor to provide the Trust, for review by the
Trustees, and the Trustees shall review, at least quarterly, a written
report of the amounts expended in connection with financing any
activity primarily intended to result in the sale of shares of Class T
(making estimates of such costs where necessary or desirable) and the
purposes for which such expenditures were made.
9. This Plan does not require the Adviser or Distributor to perform
any specific type or level of distribution activities or to incur any
specific level of expenses for activities primarily intended to result
in the sale of Class T Shares.
10. Consistent with the limitation of shareholder liability as set
forth in the Trust's Declaration of Trust, any obligation assumed by
Class T pursuant to this Plan and any agreement related to this Plan
shall be limited in all cases to Class T and its assets and shall not
constitute an obligation of any shareholder of the Trust or of any
other class of the Fund, series of the Trust or class of such series.
11. If any provision of the Plan shall be held or made invalid by a
court decision, statute, rule or otherwise, the remainder of the Plan
shall not be affected thereby.
Exhibit m(8)
DISTRIBUTION AND SERVICE PLAN
FIDELITY ADVISOR CYCLICAL INDUSTRIES FUND
CLASS T SHARES
1. This Distribution and Service Plan (the "Plan"), when effective in
accordance with its terms, shall be the written plan contemplated by
Securities and Exchange Commission Rule 12b-1 under the Investment
Company Act of 1940, as amended (the "Act") for the Class T shares of
Fidelity Advisor Cyclical Industries Fund ("Class T") a class of
shares of Fidelity Advisor Cyclical Industries Fund, (the "Fund"), a
portfolio of Fidelity Advisor Series VII (the "Trust").
2. The Trust has entered into a General Distribution Agreement on
behalf of the Fund with Fidelity Distributors Corporation (the
"Distributor"), under which the Distributor uses all reasonable
efforts, consistent with its other business, to secure purchasers of
the Fund's shares of beneficial interest (the "Shares"). Such efforts
may include, but neither are required to include nor are limited to,
the following: (1) formulation and implementation of marketing and
promotional activities, such as mail promotions and television, radio,
newspaper, magazine and other mass media advertising; (2) preparation,
printing and distribution of sales literature; (3) preparation,
printing and distribution of prospectuses of the Fund and reports to
recipients other than existing shareholders of the Fund; (4) obtaining
such information, analyses and reports with respect to marketing and
promotional activities as the Distributor may, from time to time, deem
advisable; (5) making payments to securities dealers and others
engaged in the sale of Shares or who engage in shareholder support
services; and (6) providing training, marketing and support to such
dealers and others with respect to the sale of Shares.
3. In consideration for the services provided and the expenses
incurred by the Distributor pursuant to the General Distribution
Agreement and paragraph 2 hereof, all with respect to Class T Shares,
Class T shall pay to the Distributor a fee at the annual rate of 0.75%
(or such lesser amount as the Trustees may, from time to time,
determine) of the average daily net assets of Class T throughout the
month. The determination of daily net assets shall be made at the
close of business each day throughout the month and computed in the
manner specified in the Fund's then current Prospectus for the
determination of the net asset value of the Fund's Class T Shares.
The Distributor may use all or any portion of the fee received
pursuant to this Plan to compensate securities dealers or other
persons who have engaged in the sale of Class T Shares or in
shareholder support services pursuant to agreements with the
Distributor, or to pay any of the expenses associated with other
activities authorized under paragraph 2 hereof.
4. The Fund presently pays, and will continue to pay, a management
fee to Fidelity Management & Research Company (the "Adviser") pursuant
to a management agreement between the Fund and the Adviser (the
"Management Contract"). It is recognized that the Adviser may use its
management fee revenue, as well as its past profits or its resources
from any other source, to make payment to the Distributor with respect
to any expenses incurred in connection with the distribution of Class
T Shares, including the activities referred to in paragraph 2 hereof.
To the extent that the payment of management fees by the Fund to the
Adviser should be deemed to be indirect financing of any activity
primarily intended to result in the sale of Class T Shares within the
meaning of Rule 12b-1, then such payment shall be deemed to be
authorized by this Plan.
5. This Plan shall become effective upon the first business day of
the month following approval by a vote of at least a "majority of the
outstanding voting securities" (as defined in the Act) of Class T,
this Plan having been approved by a vote of a majority of the Trustees
of the Trust, including a majority of Trustees who are not "interested
persons" of the Trust (as defined in the Act) and who have no direct
or indirect financial interest in the operation of this Plan or in any
agreement related to the Plan (the "Independent Trustees"), cast in
person at a meeting called for the purpose of voting on this Plan.
6. This Plan shall, unless terminated as hereinafter provided, remain
in effect until April 30, 2000, and from year to year thereafter;
provided, however, that such continuance is subject to approval
annually by a vote of a majority of the Trustees of the Trust,
including a majority of the Independent Trustees, cast in person at a
meeting called for the purpose of voting on this Plan. This Plan may
be amended at any time by the Board of Trustees, provided that (a) any
amendment to increase materially the fee provided for in paragraph 3
hereof shall be effective only upon approval by a vote of a majority
of the outstanding voting securities of Class T and (b) any material
amendment of this Plan shall be effective only upon approval in the
manner provided in the first sentence of this paragraph 6.
7. This Plan may be terminated at any time, without the payment of
any penalty, by vote of a majority of the Independent Trustees or by a
vote of a majority of the outstanding voting securities of Class T.
8. During the existence of this Plan, the Trust shall require the
Adviser and/or the Distributor to provide the Trust, for review by the
Trustees, and the Trustees shall review, at least quarterly, a written
report of the amounts expended in connection with financing any
activity primarily intended to result in the sale of shares of Class T
(making estimates of such costs where necessary or desirable) and the
purposes for which such expenditures were made.
9. This Plan does not require the Adviser or Distributor to perform
any specific type or level of distribution activities or to incur any
specific level of expenses for activities primarily intended to result
in the sale of Class T Shares.
10. Consistent with the limitation of shareholder liability as set
forth in the Trust's Declaration of Trust, any obligation assumed by
Class T pursuant to this Plan and any agreement related to this Plan
shall be limited in all cases to Class T and its assets and shall not
constitute an obligation of any shareholder of the Trust or of any
other class of the Fund, series of the Trust or class of such series.
11. If any provision of the Plan shall be held or made invalid by a
court decision, statute, rule or otherwise, the remainder of the Plan
shall not be affected thereby.
Exhibit m(9)
DISTRIBUTION AND SERVICE PLAN
FIDELITY ADVISOR FINANCIAL SERVICES FUND
CLASS T SHARES
1. This Distribution and Service Plan (the "Plan"), when effective in
accordance with its terms, shall be the written plan contemplated by
Securities and Exchange Commission Rule 12b-1 under the Investment
Company Act of 1940, as amended (the "Act") for the Class T shares of
Fidelity Advisor Financial Services Fund ("Class T") a class of shares
of Fidelity Advisor Financial Services Fund, (the "Fund"), a portfolio
of Fidelity Advisor Series VII (the "Trust").
2. The Trust has entered into a General Distribution Agreement on
behalf of the Fund with Fidelity Distributors Corporation (the
"Distributor"), under which the Distributor uses all reasonable
efforts, consistent with its other business, to secure purchasers of
the Fund's shares of beneficial interest (the "Shares"). Such efforts
may include, but neither are required to include nor are limited to,
the following: (1) formulation and implementation of marketing and
promotional activities, such as mail promotions and television, radio,
newspaper, magazine and other mass media advertising; (2) preparation,
printing and distribution of sales literature; (3) preparation,
printing and distribution of prospectuses of the Fund and reports to
recipients other than existing shareholders of the Fund; (4) obtaining
such information, analyses and reports with respect to marketing and
promotional activities as the Distributor may, from time to time, deem
advisable; (5) making payments to securities dealers and others
engaged in the sale of Shares or who engage in shareholder support
services; and (6) providing training, marketing and support to such
dealers and others with respect to the sale of Shares.
3. In consideration for the services provided and the expenses
incurred by the Distributor pursuant to the General Distribution
Agreement and paragraph 2 hereof, all with respect to Class T Shares,
Class T shall pay to the Distributor a fee at the annual rate of 0.75%
(or such lesser amount as the Trustees may, from time to time,
determine) of the average daily net assets of Class T throughout the
month. The determination of daily net assets shall be made at the
close of business each day throughout the month and computed in the
manner specified in the Fund's then current Prospectus for the
determination of the net asset value of the Fund's Class T Shares.
The Distributor may use all or any portion of the fee received
pursuant to this Plan to compensate securities dealers or other
persons who have engaged in the sale of Class T Shares or in
shareholder support services pursuant to agreements with the
Distributor, or to pay any of the expenses associated with other
activities authorized under paragraph 2 hereof.
4. The Fund presently pays, and will continue to pay, a management
fee to Fidelity Management & Research Company (the "Adviser") pursuant
to a management agreement between the Fund and the Adviser (the
"Management Contract"). It is recognized that the Adviser may use its
management fee revenue, as well as its past profits or its resources
from any other source, to make payment to the Distributor with respect
to any expenses incurred in connection with the distribution of Class
T Shares, including the activities referred to in paragraph 2 hereof.
To the extent that the payment of management fees by the Fund to the
Adviser should be deemed to be indirect financing of any activity
primarily intended to result in the sale of Class T Shares within the
meaning of Rule 12b-1, then such payment shall be deemed to be
authorized by this Plan.
5. This Plan shall become effective upon the first business day of
the month following approval by a vote of at least a "majority of the
outstanding voting securities" (as defined in the Act) of Class T,
this Plan having been approved by a vote of a majority of the Trustees
of the Trust, including a majority of Trustees who are not "interested
persons" of the Trust (as defined in the Act) and who have no direct
or indirect financial interest in the operation of this Plan or in any
agreement related to the Plan (the "Independent Trustees"), cast in
person at a meeting called for the purpose of voting on this Plan.
6. This Plan shall, unless terminated as hereinafter provided, remain
in effect until April 30, 2000, and from year to year thereafter;
provided, however, that such continuance is subject to approval
annually by a vote of a majority of the Trustees of the Trust,
including a majority of the Independent Trustees, cast in person at a
meeting called for the purpose of voting on this Plan. This Plan may
be amended at any time by the Board of Trustees, provided that (a) any
amendment to increase materially the fee provided for in paragraph 3
hereof shall be effective only upon approval by a vote of a majority
of the outstanding voting securities of Class T and (b) any material
amendment of this Plan shall be effective only upon approval in the
manner provided in the first sentence of this paragraph 6.
7. This Plan may be terminated at any time, without the payment of
any penalty, by vote of a majority of the Independent Trustees or by a
vote of a majority of the outstanding voting securities of Class T.
8. During the existence of this Plan, the Trust shall require the
Adviser and/or the Distributor to provide the Trust, for review by the
Trustees, and the Trustees shall review, at least quarterly, a written
report of the amounts expended in connection with financing any
activity primarily intended to result in the sale of shares of Class T
(making estimates of such costs where necessary or desirable) and the
purposes for which such expenditures were made.
9. This Plan does not require the Adviser or Distributor to perform
any specific type or level of distribution activities or to incur any
specific level of expenses for activities primarily intended to result
in the sale of Class T Shares.
10. Consistent with the limitation of shareholder liability as set
forth in the Trust's Declaration of Trust, any obligation assumed by
Class T pursuant to this Plan and any agreement related to this Plan
shall be limited in all cases to Class T and its assets and shall not
constitute an obligation of any shareholder of the Trust or of any
other class of the Fund, series of the Trust or class of such series.
11. If any provision of the Plan shall be held or made invalid by a
court decision, statute, rule or otherwise, the remainder of the Plan
shall not be affected thereby.
Exhibit m(10)
DISTRIBUTION AND SERVICE PLAN
FIDELITY ADVISOR HEALTH CARE FUND
CLASS T SHARES
1. This Distribution and Service Plan (the "Plan"), when effective in
accordance with its terms, shall be the written plan contemplated by
Securities and Exchange Commission Rule 12b-1 under the Investment
Company Act of 1940, as amended (the "Act") for the Class T shares of
Fidelity Advisor Health Care Fund ("Class T") a class of shares of
Fidelity Advisor Health Care Fund, (the "Fund"), a portfolio of
Fidelity Advisor Series VII (the "Trust").
2. The Trust has entered into a General Distribution Agreement on
behalf of the Fund with Fidelity Distributors Corporation (the
"Distributor"), under which the Distributor uses all reasonable
efforts, consistent with its other business, to secure purchasers of
the Fund's shares of beneficial interest (the "Shares"). Such efforts
may include, but neither are required to include nor are limited to,
the following: (1) formulation and implementation of marketing and
promotional activities, such as mail promotions and television, radio,
newspaper, magazine and other mass media advertising; (2) preparation,
printing and distribution of sales literature; (3) preparation,
printing and distribution of prospectuses of the Fund and reports to
recipients other than existing shareholders of the Fund; (4) obtaining
such information, analyses and reports with respect to marketing and
promotional activities as the Distributor may, from time to time, deem
advisable; (5) making payments to securities dealers and others
engaged in the sale of Shares or who engage in shareholder support
services; and (6) providing training, marketing and support to such
dealers and others with respect to the sale of Shares.
3. In consideration for the services provided and the expenses
incurred by the Distributor pursuant to the General Distribution
Agreement and paragraph 2 hereof, all with respect to Class T Shares,
Class T shall pay to the Distributor a fee at the annual rate of 0.75%
(or such lesser amount as the Trustees may, from time to time,
determine) of the average daily net assets of Class T throughout the
month. The determination of daily net assets shall be made at the
close of business each day throughout the month and computed in the
manner specified in the Fund's then current Prospectus for the
determination of the net asset value of the Fund's Class T Shares.
The Distributor may use all or any portion of the fee received
pursuant to this Plan to compensate securities dealers or other
persons who have engaged in the sale of Class T Shares or in
shareholder support services pursuant to agreements with the
Distributor, or to pay any of the expenses associated with other
activities authorized under paragraph 2 hereof.
4. The Fund presently pays, and will continue to pay, a management
fee to Fidelity Management & Research Company (the "Adviser") pursuant
to a management agreement between the Fund and the Adviser (the
"Management Contract"). It is recognized that the Adviser may use its
management fee revenue, as well as its past profits or its resources
from any other source, to make payment to the Distributor with respect
to any expenses incurred in connection with the distribution of Class
T Shares, including the activities referred to in paragraph 2 hereof.
To the extent that the payment of management fees by the Fund to the
Adviser should be deemed to be indirect financing of any activity
primarily intended to result in the sale of Class T Shares within the
meaning of Rule 12b-1, then such payment shall be deemed to be
authorized by this Plan.
5. This Plan shall become effective upon the first business day of
the month following approval by a vote of at least a "majority of the
outstanding voting securities" (as defined in the Act) of Class T,
this Plan having been approved by a vote of a majority of the Trustees
of the Trust, including a majority of Trustees who are not "interested
persons" of the Trust (as defined in the Act) and who have no direct
or indirect financial interest in the operation of this Plan or in any
agreement related to the Plan (the "Independent Trustees"), cast in
person at a meeting called for the purpose of voting on this Plan.
6. This Plan shall, unless terminated as hereinafter provided, remain
in effect until April 30, 2000, and from year to year thereafter;
provided, however, that such continuance is subject to approval
annually by a vote of a majority of the Trustees of the Trust,
including a majority of the Independent Trustees, cast in person at a
meeting called for the purpose of voting on this Plan. This Plan may
be amended at any time by the Board of Trustees, provided that (a) any
amendment to increase materially the fee provided for in paragraph 3
hereof shall be effective only upon approval by a vote of a majority
of the outstanding voting securities of Class T and (b) any material
amendment of this Plan shall be effective only upon approval in the
manner provided in the first sentence of this paragraph 6.
7. This Plan may be terminated at any time, without the payment of
any penalty, by vote of a majority of the Independent Trustees or by a
vote of a majority of the outstanding voting securities of Class T.
8. During the existence of this Plan, the Trust shall require the
Adviser and/or the Distributor to provide the Trust, for review by the
Trustees, and the Trustees shall review, at least quarterly, a written
report of the amounts expended in connection with financing any
activity primarily intended to result in the sale of shares of Class T
(making estimates of such costs where necessary or desirable) and the
purposes for which such expenditures were made.
9. This Plan does not require the Adviser or Distributor to perform
any specific type or level of distribution activities or to incur any
specific level of expenses for activities primarily intended to result
in the sale of Class T Shares.
10. Consistent with the limitation of shareholder liability as set
forth in the Trust's Declaration of Trust, any obligation assumed by
Class T pursuant to this Plan and any agreement related to this Plan
shall be limited in all cases to Class T and its assets and shall not
constitute an obligation of any shareholder of the Trust or of any
other class of the Fund, series of the Trust or class of such series.
11. If any provision of the Plan shall be held or made invalid by a
court decision, statute, rule or otherwise, the remainder of the Plan
shall not be affected thereby.
Exhibit m(11)
DISTRIBUTION AND SERVICE PLAN
FIDELITY ADVISOR TECHNOLOGY FUND
CLASS T SHARES
1. This Distribution and Service Plan (the "Plan"), when effective in
accordance with its terms, shall be the written plan contemplated by
Securities and Exchange Commission Rule 12b-1 under the Investment
Company Act of 1940, as amended (the "Act") for the Class T shares of
Fidelity Advisor Technology Fund ("Class T") a class of shares of
Fidelity Advisor Technology Fund, (the "Fund"), a portfolio of
Fidelity Advisor Series VII (the "Trust").
2. The Trust has entered into a General Distribution Agreement on
behalf of the Fund with Fidelity Distributors Corporation (the
"Distributor"), under which the Distributor uses all reasonable
efforts, consistent with its other business, to secure purchasers of
the Fund's shares of beneficial interest (the "Shares"). Such efforts
may include, but neither are required to include nor are limited to,
the following: (1) formulation and implementation of marketing and
promotional activities, such as mail promotions and television, radio,
newspaper, magazine and other mass media advertising; (2) preparation,
printing and distribution of sales literature; (3) preparation,
printing and distribution of prospectuses of the Fund and reports to
recipients other than existing shareholders of the Fund; (4) obtaining
such information, analyses and reports with respect to marketing and
promotional activities as the Distributor may, from time to time, deem
advisable; (5) making payments to securities dealers and others
engaged in the sale of Shares or who engage in shareholder support
services; and (6) providing training, marketing and support to such
dealers and others with respect to the sale of Shares.
3. In consideration for the services provided and the expenses
incurred by the Distributor pursuant to the General Distribution
Agreement and paragraph 2 hereof, all with respect to Class T Shares,
Class T shall pay to the Distributor a fee at the annual rate of 0.75%
(or such lesser amount as the Trustees may, from time to time,
determine) of the average daily net assets of Class T throughout the
month. The determination of daily net assets shall be made at the
close of business each day throughout the month and computed in the
manner specified in the Fund's then current Prospectus for the
determination of the net asset value of the Fund's Class T Shares.
The Distributor may use all or any portion of the fee received
pursuant to this Plan to compensate securities dealers or other
persons who have engaged in the sale of Class T Shares or in
shareholder support services pursuant to agreements with the
Distributor, or to pay any of the expenses associated with other
activities authorized under paragraph 2 hereof.
4. The Fund presently pays, and will continue to pay, a management
fee to Fidelity Management & Research Company (the "Adviser") pursuant
to a management agreement between the Fund and the Adviser (the
"Management Contract"). It is recognized that the Adviser may use its
management fee revenue, as well as its past profits or its resources
from any other source, to make payment to the Distributor with respect
to any expenses incurred in connection with the distribution of Class
T Shares, including the activities referred to in paragraph 2 hereof.
To the extent that the payment of management fees by the Fund to the
Adviser should be deemed to be indirect financing of any activity
primarily intended to result in the sale of Class T Shares within the
meaning of Rule 12b-1, then such payment shall be deemed to be
authorized by this Plan.
5. This Plan shall become effective upon the first business day of
the month following approval by a vote of at least a "majority of the
outstanding voting securities" (as defined in the Act) of Class T,
this Plan having been approved by a vote of a majority of the Trustees
of the Trust, including a majority of Trustees who are not "interested
persons" of the Trust (as defined in the Act) and who have no direct
or indirect financial interest in the operation of this Plan or in any
agreement related to the Plan (the "Independent Trustees"), cast in
person at a meeting called for the purpose of voting on this Plan.
6. This Plan shall, unless terminated as hereinafter provided, remain
in effect until April 30, 2000, and from year to year thereafter;
provided, however, that such continuance is subject to approval
annually by a vote of a majority of the Trustees of the Trust,
including a majority of the Independent Trustees, cast in person at a
meeting called for the purpose of voting on this Plan. This Plan may
be amended at any time by the Board of Trustees, provided that (a) any
amendment to increase materially the fee provided for in paragraph 3
hereof shall be effective only upon approval by a vote of a majority
of the outstanding voting securities of Class T and (b) any material
amendment of this Plan shall be effective only upon approval in the
manner provided in the first sentence of this paragraph 6.
7. This Plan may be terminated at any time, without the payment of
any penalty, by vote of a majority of the Independent Trustees or by a
vote of a majority of the outstanding voting securities of Class T.
8. During the existence of this Plan, the Trust shall require the
Adviser and/or the Distributor to provide the Trust, for review by the
Trustees, and the Trustees shall review, at least quarterly, a written
report of the amounts expended in connection with financing any
activity primarily intended to result in the sale of shares of Class T
(making estimates of such costs where necessary or desirable) and the
purposes for which such expenditures were made.
9. This Plan does not require the Adviser or Distributor to perform
any specific type or level of distribution activities or to incur any
specific level of expenses for activities primarily intended to result
in the sale of Class T Shares.
10. Consistent with the limitation of shareholder liability as set
forth in the Trust's Declaration of Trust, any obligation assumed by
Class T pursuant to this Plan and any agreement related to this Plan
shall be limited in all cases to Class T and its assets and shall not
constitute an obligation of any shareholder of the Trust or of any
other class of the Fund, series of the Trust or class of such series.
11. If any provision of the Plan shall be held or made invalid by a
court decision, statute, rule or otherwise, the remainder of the Plan
shall not be affected thereby.
Exhibit m(12)
DISTRIBUTION AND SERVICE PLAN
FIDELITY ADVISOR UTILITIES GROWTH FUND
CLASS T SHARES
1. This Distribution and Service Plan (the "Plan"), when effective in
accordance with its terms, shall be the written plan contemplated by
Securities and Exchange Commission Rule 12b-1 under the Investment
Company Act of 1940, as amended (the "Act") for the Class T shares of
Fidelity Advisor Utilities Growth Fund ("Class T") a class of shares
of Fidelity Advisor Utilities Growth Fund, (the "Fund"), a portfolio
of Fidelity Advisor Series VII (the "Trust").
2. The Trust has entered into a General Distribution Agreement on
behalf of the Fund with Fidelity Distributors Corporation (the
"Distributor"), under which the Distributor uses all reasonable
efforts, consistent with its other business, to secure purchasers of
the Fund's shares of beneficial interest (the "Shares"). Such efforts
may include, but neither are required to include nor are limited to,
the following: (1) formulation and implementation of marketing and
promotional activities, such as mail promotions and television, radio,
newspaper, magazine and other mass media advertising; (2) preparation,
printing and distribution of sales literature; (3) preparation,
printing and distribution of prospectuses of the Fund and reports to
recipients other than existing shareholders of the Fund; (4) obtaining
such information, analyses and reports with respect to marketing and
promotional activities as the Distributor may, from time to time, deem
advisable; (5) making payments to securities dealers and others
engaged in the sale of Shares or who engage in shareholder support
services; and (6) providing training, marketing and support to such
dealers and others with respect to the sale of Shares.
3. In consideration for the services provided and the expenses
incurred by the Distributor pursuant to the General Distribution
Agreement and paragraph 2 hereof, all with respect to Class T Shares,
Class T shall pay to the Distributor a fee at the annual rate of 0.75%
(or such lesser amount as the Trustees may, from time to time,
determine) of the average daily net assets of Class T throughout the
month. The determination of daily net assets shall be made at the
close of business each day throughout the month and computed in the
manner specified in the Fund's then current Prospectus for the
determination of the net asset value of the Fund's Class T Shares.
The Distributor may use all or any portion of the fee received
pursuant to this Plan to compensate securities dealers or other
persons who have engaged in the sale of Class T Shares or in
shareholder support services pursuant to agreements with the
Distributor, or to pay any of the expenses associated with other
activities authorized under paragraph 2 hereof.
4. The Fund presently pays, and will continue to pay, a management
fee to Fidelity Management & Research Company (the "Adviser") pursuant
to a management agreement between the Fund and the Adviser (the
"Management Contract"). It is recognized that the Adviser may use its
management fee revenue, as well as its past profits or its resources
from any other source, to make payment to the Distributor with respect
to any expenses incurred in connection with the distribution of Class
T Shares, including the activities referred to in paragraph 2 hereof.
To the extent that the payment of management fees by the Fund to the
Adviser should be deemed to be indirect financing of any activity
primarily intended to result in the sale of Class T Shares within the
meaning of Rule 12b-1, then such payment shall be deemed to be
authorized by this Plan.
5. This Plan shall become effective upon the first business day of
the month following approval by a vote of at least a "majority of the
outstanding voting securities" (as defined in the Act) of Class T,
this Plan having been approved by a vote of a majority of the Trustees
of the Trust, including a majority of Trustees who are not "interested
persons" of the Trust (as defined in the Act) and who have no direct
or indirect financial interest in the operation of this Plan or in any
agreement related to the Plan (the "Independent Trustees"), cast in
person at a meeting called for the purpose of voting on this Plan.
6. This Plan shall, unless terminated as hereinafter provided, remain
in effect until April 30, 2000, and from year to year thereafter;
provided, however, that such continuance is subject to approval
annually by a vote of a majority of the Trustees of the Trust,
including a majority of the Independent Trustees, cast in person at a
meeting called for the purpose of voting on this Plan. This Plan may
be amended at any time by the Board of Trustees, provided that (a) any
amendment to increase materially the fee provided for in paragraph 3
hereof shall be effective only upon approval by a vote of a majority
of the outstanding voting securities of Class T and (b) any material
amendment of this Plan shall be effective only upon approval in the
manner provided in the first sentence of this paragraph 6.
7. This Plan may be terminated at any time, without the payment of
any penalty, by vote of a majority of the Independent Trustees or by a
vote of a majority of the outstanding voting securities of Class T.
8. During the existence of this Plan, the Trust shall require the
Adviser and/or the Distributor to provide the Trust, for review by the
Trustees, and the Trustees shall review, at least quarterly, a written
report of the amounts expended in connection with financing any
activity primarily intended to result in the sale of shares of Class T
(making estimates of such costs where necessary or desirable) and the
purposes for which such expenditures were made.
9. This Plan does not require the Adviser or Distributor to perform
any specific type or level of distribution activities or to incur any
specific level of expenses for activities primarily intended to result
in the sale of Class T Shares.
10. Consistent with the limitation of shareholder liability as set
forth in the Trust's Declaration of Trust, any obligation assumed by
Class T pursuant to this Plan and any agreement related to this Plan
shall be limited in all cases to Class T and its assets and shall not
constitute an obligation of any shareholder of the Trust or of any
other class of the Fund, series of the Trust or class of such series.
11. If any provision of the Plan shall be held or made invalid by a
court decision, statute, rule or otherwise, the remainder of the Plan
shall not be affected thereby.
Exhibit m(13)
DISTRIBUTION AND SERVICE PLAN
FIDELITY ADVISOR CONSUMER INDUSTRIES FUND
INSTITUTIONAL CLASS SHARES
1. This Distribution and Service Plan (the "Plan"), when effective in
accordance with its terms, shall be the written plan contemplated by
Rule 12b-1 under the Investment Company Act of 1940, as amended (the
"Act") for Institutional Class Shares of Fidelity Advisor Consumer
Industries Fund ("Institutional Class"), a class of shares of Fidelity
Advisor Consumer Industries Fund (the "Fund"), a series of Fidelity
Advisor Series VII (the "Trust").
2. The Trust has entered into a General Distribution Agreement on
behalf of the Fund with Fidelity Distributors Corporation (the
"Distributor") under which the Distributor uses all reasonable
efforts, consistent with its other business, to secure purchasers for
the Fund's shares of beneficial interest (the "Shares"). Under the
agreement, the Distributor pays the expenses of printing and
distributing any prospectuses, reports and other literature used by
the Distributor, advertising, and other promotional activities in
connection with the offering of Shares for sale to the public. It is
recognized that Fidelity Management & Research Company (the "Adviser")
may use its management fee revenues, as well as past profits or its
resources from any other source, to make payment to the Distributor
with respect to any expenses incurred in connection with the
distribution of Institutional Class Shares, including the activities
referred to above.
3. The Adviser directly, or through the Distributor, may, subject to
the approval of the Trustees, make payments to securities dealers and
other third parties who engage in the sale of Institutional Class
Shares or who render shareholder support services, including but not
limited to providing office space, equipment and telephone facilities,
answering routine inquiries regarding the Fund, processing shareholder
transactions and providing such other shareholder services as the
Trust may reasonably request.
4. The Institutional Class will not make separate payments as a
result of this Plan to the Adviser, Distributor or any other party, it
being recognized that the Fund presently pays, and will continue to
pay, a management fee to the Adviser. To the extent that any payments
made by the Fund to the Adviser, including payment of management fees,
should be deemed to be indirect financing of any activity primarily
intended to result in the sale of Institutional Class Shares within
the meaning of Rule 12b-1, then such payments shall be deemed to be
authorized by this Plan.
5. This Plan shall become effective upon the first business day of
the month following approval by a vote of at least a "majority of the
outstanding voting securities" (as defined in the Act) of the
Institutional Class, this Plan having been approved by a vote of a
majority of the Trustees of the Trust, including a majority of
Trustees who are not "interested persons" of the Trust (as defined in
the Act) and who have no direct or indirect financial interest in the
operation of this Plan or in any agreement related to the Plan (the
"Independent Trustees"), cast in person at a meeting called for the
purpose of voting on this Plan.
6. This Plan shall, unless terminated as hereinafter provided, remain
in effect until April 30, 2000, and from year to year thereafter;
provided, however, that such continuance is subject to approval
annually by a vote of a majority of the Trustees of the Trust,
including a majority of the Independent Trustees, cast in person at a
meeting called for the purpose of voting on this Plan. This Plan may
be amended at any time by the Board of Trustees, provided that (a) any
amendment to authorize direct payments by the Institutional Class to
finance any activity primarily intended to result in the sale of
Institutional Class Shares, or to increase materially the amount spent
by the Institutional Class for distribution, shall be effective only
upon approval by a vote of a majority of the outstanding voting
securities of the Institutional Class and (b) any material amendments
of this Plan shall be effective only upon approval in the manner
provided in the first sentence in this paragraph 6.
7. This Plan may be terminated at any time, without the payment of
any penalty, by vote of a majority of the Independent Trustees or by a
vote of a majority of the outstanding voting securities of the
Institutional Class.
8. During the existence of this Plan, the Trust shall require the
Adviser and/or Distributor to provide the Trust, for review by the
Trustees, and the Trustees shall review, at least quarterly, a written
report of the amounts expended in connection with financing any
activity primarily intended to result in the sale of Institutional
Class Shares (making estimates of such costs where necessary or
desirable) and the purposes for which such expenditures were made.
9. This Plan does not require the Adviser or Distributor to perform
any specific type or level of distribution activities or to incur any
specific level of expenses for activities primarily intended to result
in the sale of Institutional Class Shares.
10. Consistent with the limitation of shareholder liability as set
forth in the Trust's Declaration of Trust, any obligation assumed by
Institutional Class pursuant to this Plan and any agreement related to
this Plan shall be limited in all cases to the Institutional Class and
its assets and shall not constitute an obligation of any shareholder
of the Trust or of any other class of the Fund, series of the Trust or
class of such series.
11. If any provision of this Plan shall be held or made invalid by a
court decision, statute, rule or otherwise, the remainder of the Plan
shall not be affected thereby.
Exhibit m(14)
DISTRIBUTION AND SERVICE PLAN
FIDELITY ADVISOR CYCLICAL INDUSTRIES FUND
INSTITUTIONAL CLASS SHARES
1. This Distribution and Service Plan (the "Plan"), when effective in
accordance with its terms, shall be the written plan contemplated by
Rule 12b-1 under the Investment Company Act of 1940, as amended (the
"Act") for Institutional Class Shares of Fidelity Advisor Cyclical
Industries Fund ("Institutional Class"), a class of shares of Fidelity
Advisor Cyclical Industries Fund (the "Fund"), a series of Fidelity
Advisor Series VII (the "Trust").
2. The Trust has entered into a General Distribution Agreement on
behalf of the Fund with Fidelity Distributors Corporation (the
"Distributor") under which the Distributor uses all reasonable
efforts, consistent with its other business, to secure purchasers for
the Fund's shares of beneficial interest (the "Shares"). Under the
agreement, the Distributor pays the expenses of printing and
distributing any prospectuses, reports and other literature used by
the Distributor, advertising, and other promotional activities in
connection with the offering of Shares for sale to the public. It is
recognized that Fidelity Management & Research Company (the "Adviser")
may use its management fee revenues, as well as past profits or its
resources from any other source, to make payment to the Distributor
with respect to any expenses incurred in connection with the
distribution of Institutional Class Shares, including the activities
referred to above.
3. The Adviser directly, or through the Distributor, may, subject to
the approval of the Trustees, make payments to securities dealers and
other third parties who engage in the sale of Institutional Class
Shares or who render shareholder support services, including but not
limited to providing office space, equipment and telephone facilities,
answering routine inquiries regarding the Fund, processing shareholder
transactions and providing such other shareholder services as the
Trust may reasonably request.
4. The Institutional Class will not make separate payments as a
result of this Plan to the Adviser, Distributor or any other party, it
being recognized that the Fund presently pays, and will continue to
pay, a management fee to the Adviser. To the extent that any payments
made by the Fund to the Adviser, including payment of management fees,
should be deemed to be indirect financing of any activity primarily
intended to result in the sale of Institutional Class Shares within
the meaning of Rule 12b-1, then such payments shall be deemed to be
authorized by this Plan.
5. This Plan shall become effective upon the first business day of
the month following approval by a vote of at least a "majority of the
outstanding voting securities" (as defined in the Act) of the
Institutional Class, this Plan having been approved by a vote of a
majority of the Trustees of the Trust, including a majority of
Trustees who are not "interested persons" of the Trust (as defined in
the Act) and who have no direct or indirect financial interest in the
operation of this Plan or in any agreement related to the Plan (the
"Independent Trustees"), cast in person at a meeting called for the
purpose of voting on this Plan.
6. This Plan shall, unless terminated as hereinafter provided, remain
in effect until April 30, 2000, and from year to year thereafter;
provided, however, that such continuance is subject to approval
annually by a vote of a majority of the Trustees of the Trust,
including a majority of the Independent Trustees, cast in person at a
meeting called for the purpose of voting on this Plan. This Plan may
be amended at any time by the Board of Trustees, provided that (a) any
amendment to authorize direct payments by the Institutional Class to
finance any activity primarily intended to result in the sale of
Institutional Class Shares, or to increase materially the amount spent
by the Institutional Class for distribution, shall be effective only
upon approval by a vote of a majority of the outstanding voting
securities of the Institutional Class and (b) any material amendments
of this Plan shall be effective only upon approval in the manner
provided in the first sentence in this paragraph 6.
7. This Plan may be terminated at any time, without the payment of
any penalty, by vote of a majority of the Independent Trustees or by a
vote of a majority of the outstanding voting securities of the
Institutional Class.
8. During the existence of this Plan, the Trust shall require the
Adviser and/or Distributor to provide the Trust, for review by the
Trustees, and the Trustees shall review, at least quarterly, a written
report of the amounts expended in connection with financing any
activity primarily intended to result in the sale of Institutional
Class Shares (making estimates of such costs where necessary or
desirable) and the purposes for which such expenditures were made.
9. This Plan does not require the Adviser or Distributor to perform
any specific type or level of distribution activities or to incur any
specific level of expenses for activities primarily intended to result
in the sale of Institutional Class Shares.
10. Consistent with the limitation of shareholder liability as set
forth in the Trust's Declaration of Trust, any obligation assumed by
Institutional Class pursuant to this Plan and any agreement related to
this Plan shall be limited in all cases to the Institutional Class and
its assets and shall not constitute an obligation of any shareholder
of the Trust or of any other class of the Fund, series of the Trust or
class of such series.
11. If any provision of this Plan shall be held or made invalid by a
court decision, statute, rule or otherwise, the remainder of the Plan
shall not be affected thereby.
Exhibit m(15)
DISTRIBUTION AND SERVICE PLAN
FIDELITY ADVISOR FINANCIAL SERVICES FUND
INSTITUTIONAL CLASS SHARES
1. This Distribution and Service Plan (the "Plan"), when effective in
accordance with its terms, shall be the written plan contemplated by
Rule 12b-1 under the Investment Company Act of 1940, as amended (the
"Act") for Institutional Class Shares of Fidelity Advisor Financial
Services Fund ("Institutional Class"), a class of shares of Fidelity
Advisor Financial Services Fund (the "Fund"), a series of Fidelity
Advisor Series VII (the "Trust").
2. The Trust has entered into a General Distribution Agreement on
behalf of the Fund with Fidelity Distributors Corporation (the
"Distributor") under which the Distributor uses all reasonable
efforts, consistent with its other business, to secure purchasers for
the Fund's shares of beneficial interest (the "Shares"). Under the
agreement, the Distributor pays the expenses of printing and
distributing any prospectuses, reports and other literature used by
the Distributor, advertising, and other promotional activities in
connection with the offering of Shares for sale to the public. It is
recognized that Fidelity Management & Research Company (the "Adviser")
may use its management fee revenues, as well as past profits or its
resources from any other source, to make payment to the Distributor
with respect to any expenses incurred in connection with the
distribution of Institutional Class Shares, including the activities
referred to above.
3. The Adviser directly, or through the Distributor, may, subject to
the approval of the Trustees, make payments to securities dealers and
other third parties who engage in the sale of Institutional Class
Shares or who render shareholder support services, including but not
limited to providing office space, equipment and telephone facilities,
answering routine inquiries regarding the Fund, processing shareholder
transactions and providing such other shareholder services as the
Trust may reasonably request.
4. The Institutional Class will not make separate payments as a
result of this Plan to the Adviser, Distributor or any other party, it
being recognized that the Fund presently pays, and will continue to
pay, a management fee to the Adviser. To the extent that any payments
made by the Fund to the Adviser, including payment of management fees,
should be deemed to be indirect financing of any activity primarily
intended to result in the sale of Institutional Class Shares within
the meaning of Rule 12b-1, then such payments shall be deemed to be
authorized by this Plan.
5. This Plan shall become effective upon the first business day of
the month following approval by a vote of at least a "majority of the
outstanding voting securities" (as defined in the Act) of the
Institutional Class, this Plan having been approved by a vote of a
majority of the Trustees of the Trust, including a majority of
Trustees who are not "interested persons" of the Trust (as defined in
the Act) and who have no direct or indirect financial interest in the
operation of this Plan or in any agreement related to the Plan (the
"Independent Trustees"), cast in person at a meeting called for the
purpose of voting on this Plan.
6. This Plan shall, unless terminated as hereinafter provided, remain
in effect until April 30, 2000, and from year to year thereafter;
provided, however, that such continuance is subject to approval
annually by a vote of a majority of the Trustees of the Trust,
including a majority of the Independent Trustees, cast in person at a
meeting called for the purpose of voting on this Plan. This Plan may
be amended at any time by the Board of Trustees, provided that (a) any
amendment to authorize direct payments by the Institutional Class to
finance any activity primarily intended to result in the sale of
Institutional Class Shares, or to increase materially the amount spent
by the Institutional Class for distribution, shall be effective only
upon approval by a vote of a majority of the outstanding voting
securities of the Institutional Class and (b) any material amendments
of this Plan shall be effective only upon approval in the manner
provided in the first sentence in this paragraph 6.
7. This Plan may be terminated at any time, without the payment of
any penalty, by vote of a majority of the Independent Trustees or by a
vote of a majority of the outstanding voting securities of the
Institutional Class.
8. During the existence of this Plan, the Trust shall require the
Adviser and/or Distributor to provide the Trust, for review by the
Trustees, and the Trustees shall review, at least quarterly, a written
report of the amounts expended in connection with financing any
activity primarily intended to result in the sale of Institutional
Class Shares (making estimates of such costs where necessary or
desirable) and the purposes for which such expenditures were made.
9. This Plan does not require the Adviser or Distributor to perform
any specific type or level of distribution activities or to incur any
specific level of expenses for activities primarily intended to result
in the sale of Institutional Class Shares.
10. Consistent with the limitation of shareholder liability as set
forth in the Trust's Declaration of Trust, any obligation assumed by
Institutional Class pursuant to this Plan and any agreement related to
this Plan shall be limited in all cases to the Institutional Class and
its assets and shall not constitute an obligation of any shareholder
of the Trust or of any other class of the Fund, series of the Trust or
class of such series.
11. If any provision of this Plan shall be held or made invalid by a
court decision, statute, rule or otherwise, the remainder of the Plan
shall not be affected thereby.
Exhibit m(16)
DISTRIBUTION AND SERVICE PLAN
FIDELITY ADVISOR HEALTH CARE FUND
INSTITUTIONAL CLASS SHARES
1. This Distribution and Service Plan (the "Plan"), when effective in
accordance with its terms, shall be the written plan contemplated by
Rule 12b-1 under the Investment Company Act of 1940, as amended (the
"Act") for Institutional Class Shares of Fidelity Advisor Health Care
Fund ("Institutional Class"), a class of shares of Fidelity Advisor
Health Care Fund (the "Fund"), a series of Fidelity Advisor Series VII
(the "Trust").
2. The Trust has entered into a General Distribution Agreement on
behalf of the Fund with Fidelity Distributors Corporation (the
"Distributor") under which the Distributor uses all reasonable
efforts, consistent with its other business, to secure purchasers for
the Fund's shares of beneficial interest (the "Shares"). Under the
agreement, the Distributor pays the expenses of printing and
distributing any prospectuses, reports and other literature used by
the Distributor, advertising, and other promotional activities in
connection with the offering of Shares for sale to the public. It is
recognized that Fidelity Management & Research Company (the "Adviser")
may use its management fee revenues, as well as past profits or its
resources from any other source, to make payment to the Distributor
with respect to any expenses incurred in connection with the
distribution of Institutional Class Shares, including the activities
referred to above.
3. The Adviser directly, or through the Distributor, may, subject to
the approval of the Trustees, make payments to securities dealers and
other third parties who engage in the sale of Institutional Class
Shares or who render shareholder support services, including but not
limited to providing office space, equipment and telephone facilities,
answering routine inquiries regarding the Fund, processing shareholder
transactions and providing such other shareholder services as the
Trust may reasonably request.
4. The Institutional Class will not make separate payments as a
result of this Plan to the Adviser, Distributor or any other party, it
being recognized that the Fund presently pays, and will continue to
pay, a management fee to the Adviser. To the extent that any payments
made by the Fund to the Adviser, including payment of management fees,
should be deemed to be indirect financing of any activity primarily
intended to result in the sale of Institutional Class Shares within
the meaning of Rule 12b-1, then such payments shall be deemed to be
authorized by this Plan.
5. This Plan shall become effective upon the first business day of
the month following approval by a vote of at least a "majority of the
outstanding voting securities" (as defined in the Act) of the
Institutional Class, this Plan having been approved by a vote of a
majority of the Trustees of the Trust, including a majority of
Trustees who are not "interested persons" of the Trust (as defined in
the Act) and who have no direct or indirect financial interest in the
operation of this Plan or in any agreement related to the Plan (the
"Independent Trustees"), cast in person at a meeting called for the
purpose of voting on this Plan.
6. This Plan shall, unless terminated as hereinafter provided, remain
in effect until April 30, 2000, and from year to year thereafter;
provided, however, that such continuance is subject to approval
annually by a vote of a majority of the Trustees of the Trust,
including a majority of the Independent Trustees, cast in person at a
meeting called for the purpose of voting on this Plan. This Plan may
be amended at any time by the Board of Trustees, provided that (a) any
amendment to authorize direct payments by the Institutional Class to
finance any activity primarily intended to result in the sale of
Institutional Class Shares, or to increase materially the amount spent
by the Institutional Class for distribution, shall be effective only
upon approval by a vote of a majority of the outstanding voting
securities of the Institutional Class and (b) any material amendments
of this Plan shall be effective only upon approval in the manner
provided in the first sentence in this paragraph 6.
7. This Plan may be terminated at any time, without the payment of
any penalty, by vote of a majority of the Independent Trustees or by a
vote of a majority of the outstanding voting securities of the
Institutional Class.
8. During the existence of this Plan, the Trust shall require the
Adviser and/or Distributor to provide the Trust, for review by the
Trustees, and the Trustees shall review, at least quarterly, a written
report of the amounts expended in connection with financing any
activity primarily intended to result in the sale of Institutional
Class Shares (making estimates of such costs where necessary or
desirable) and the purposes for which such expenditures were made.
9. This Plan does not require the Adviser or Distributor to perform
any specific type or level of distribution activities or to incur any
specific level of expenses for activities primarily intended to result
in the sale of Institutional Class Shares.
10. Consistent with the limitation of shareholder liability as set
forth in the Trust's Declaration of Trust, any obligation assumed by
Institutional Class pursuant to this Plan and any agreement related to
this Plan shall be limited in all cases to the Institutional Class and
its assets and shall not constitute an obligation of any shareholder
of the Trust or of any other class of the Fund, series of the Trust or
class of such series.
11. If any provision of this Plan shall be held or made invalid by a
court decision, statute, rule or otherwise, the remainder of the Plan
shall not be affected thereby.
Exhibit m(17)
DISTRIBUTION AND SERVICE PLAN
FIDELITY ADVISOR TECHNOLOGY FUND
INSTITUTIONAL CLASS SHARES
1. This Distribution and Service Plan (the "Plan"), when effective in
accordance with its terms, shall be the written plan contemplated by
Rule 12b-1 under the Investment Company Act of 1940, as amended (the
"Act") for Institutional Class Shares of Fidelity Advisor Technology
Fund ("Institutional Class"), a class of shares of Fidelity Advisor
Technology Fund (the "Fund"), a series of Fidelity Advisor Series VII
(the "Trust").
2. The Trust has entered into a General Distribution Agreement on
behalf of the Fund with Fidelity Distributors Corporation (the
"Distributor") under which the Distributor uses all reasonable
efforts, consistent with its other business, to secure purchasers for
the Fund's shares of beneficial interest (the "Shares"). Under the
agreement, the Distributor pays the expenses of printing and
distributing any prospectuses, reports and other literature used by
the Distributor, advertising, and other promotional activities in
connection with the offering of Shares for sale to the public. It is
recognized that Fidelity Management & Research Company (the "Adviser")
may use its management fee revenues, as well as past profits or its
resources from any other source, to make payment to the Distributor
with respect to any expenses incurred in connection with the
distribution of Institutional Class Shares, including the activities
referred to above.
3. The Adviser directly, or through the Distributor, may, subject to
the approval of the Trustees, make payments to securities dealers and
other third parties who engage in the sale of Institutional Class
Shares or who render shareholder support services, including but not
limited to providing office space, equipment and telephone facilities,
answering routine inquiries regarding the Fund, processing shareholder
transactions and providing such other shareholder services as the
Trust may reasonably request.
4. The Institutional Class will not make separate payments as a
result of this Plan to the Adviser, Distributor or any other party, it
being recognized that the Fund presently pays, and will continue to
pay, a management fee to the Adviser. To the extent that any payments
made by the Fund to the Adviser, including payment of management fees,
should be deemed to be indirect financing of any activity primarily
intended to result in the sale of Institutional Class Shares within
the meaning of Rule 12b-1, then such payments shall be deemed to be
authorized by this Plan.
5. This Plan shall become effective upon the first business day of
the month following approval by a vote of at least a "majority of the
outstanding voting securities" (as defined in the Act) of the
Institutional Class, this Plan having been approved by a vote of a
majority of the Trustees of the Trust, including a majority of
Trustees who are not "interested persons" of the Trust (as defined in
the Act) and who have no direct or indirect financial interest in the
operation of this Plan or in any agreement related to the Plan (the
"Independent Trustees"), cast in person at a meeting called for the
purpose of voting on this Plan.
6. This Plan shall, unless terminated as hereinafter provided, remain
in effect until April 30, 2000, and from year to year thereafter;
provided, however, that such continuance is subject to approval
annually by a vote of a majority of the Trustees of the Trust,
including a majority of the Independent Trustees, cast in person at a
meeting called for the purpose of voting on this Plan. This Plan may
be amended at any time by the Board of Trustees, provided that (a) any
amendment to authorize direct payments by the Institutional Class to
finance any activity primarily intended to result in the sale of
Institutional Class Shares, or to increase materially the amount spent
by the Institutional Class for distribution, shall be effective only
upon approval by a vote of a majority of the outstanding voting
securities of the Institutional Class and (b) any material amendments
of this Plan shall be effective only upon approval in the manner
provided in the first sentence in this paragraph 6.
7. This Plan may be terminated at any time, without the payment of
any penalty, by vote of a majority of the Independent Trustees or by a
vote of a majority of the outstanding voting securities of the
Institutional Class.
8. During the existence of this Plan, the Trust shall require the
Adviser and/or Distributor to provide the Trust, for review by the
Trustees, and the Trustees shall review, at least quarterly, a written
report of the amounts expended in connection with financing any
activity primarily intended to result in the sale of Institutional
Class Shares (making estimates of such costs where necessary or
desirable) and the purposes for which such expenditures were made.
9. This Plan does not require the Adviser or Distributor to perform
any specific type or level of distribution activities or to incur any
specific level of expenses for activities primarily intended to result
in the sale of Institutional Class Shares.
10. Consistent with the limitation of shareholder liability as set
forth in the Trust's Declaration of Trust, any obligation assumed by
Institutional Class pursuant to this Plan and any agreement related to
this Plan shall be limited in all cases to the Institutional Class and
its assets and shall not constitute an obligation of any shareholder
of the Trust or of any other class of the Fund, series of the Trust or
class of such series.
11. If any provision of this Plan shall be held or made invalid by a
court decision, statute, rule or otherwise, the remainder of the Plan
shall not be affected thereby.
Exhibit m(18)
DISTRIBUTION AND SERVICE PLAN
FIDELITY ADVISOR UTILITIES GROWTH FUND
INSTITUTIONAL CLASS SHARES
1. This Distribution and Service Plan (the "Plan"), when effective in
accordance with its terms, shall be the written plan contemplated by
Rule 12b-1 under the Investment Company Act of 1940, as amended (the
"Act") for Institutional Class Shares of Fidelity Advisor Utilities
Growth Fund ("Institutional Class"), a class of shares of Fidelity
Advisor Utilities Growth Fund (the "Fund"), a series of Fidelity
Advisor Series VII (the "Trust").
2. The Trust has entered into a General Distribution Agreement on
behalf of the Fund with Fidelity Distributors Corporation (the
"Distributor") under which the Distributor uses all reasonable
efforts, consistent with its other business, to secure purchasers for
the Fund's shares of beneficial interest (the "Shares"). Under the
agreement, the Distributor pays the expenses of printing and
distributing any prospectuses, reports and other literature used by
the Distributor, advertising, and other promotional activities in
connection with the offering of Shares for sale to the public. It is
recognized that Fidelity Management & Research Company (the "Adviser")
may use its management fee revenues, as well as past profits or its
resources from any other source, to make payment to the Distributor
with respect to any expenses incurred in connection with the
distribution of Institutional Class Shares, including the activities
referred to above.
3. The Adviser directly, or through the Distributor, may, subject to
the approval of the Trustees, make payments to securities dealers and
other third parties who engage in the sale of Institutional Class
Shares or who render shareholder support services, including but not
limited to providing office space, equipment and telephone facilities,
answering routine inquiries regarding the Fund, processing shareholder
transactions and providing such other shareholder services as the
Trust may reasonably request.
4. The Institutional Class will not make separate payments as a
result of this Plan to the Adviser, Distributor or any other party, it
being recognized that the Fund presently pays, and will continue to
pay, a management fee to the Adviser. To the extent that any payments
made by the Fund to the Adviser, including payment of management fees,
should be deemed to be indirect financing of any activity primarily
intended to result in the sale of Institutional Class Shares within
the meaning of Rule 12b-1, then such payments shall be deemed to be
authorized by this Plan.
5. This Plan shall become effective upon the first business day of
the month following approval by a vote of at least a "majority of the
outstanding voting securities" (as defined in the Act) of the
Institutional Class, this Plan having been approved by a vote of a
majority of the Trustees of the Trust, including a majority of
Trustees who are not "interested persons" of the Trust (as defined in
the Act) and who have no direct or indirect financial interest in the
operation of this Plan or in any agreement related to the Plan (the
"Independent Trustees"), cast in person at a meeting called for the
purpose of voting on this Plan.
6. This Plan shall, unless terminated as hereinafter provided, remain
in effect until April 30, 2000, and from year to year thereafter;
provided, however, that such continuance is subject to approval
annually by a vote of a majority of the Trustees of the Trust,
including a majority of the Independent Trustees, cast in person at a
meeting called for the purpose of voting on this Plan. This Plan may
be amended at any time by the Board of Trustees, provided that (a) any
amendment to authorize direct payments by the Institutional Class to
finance any activity primarily intended to result in the sale of
Institutional Class Shares, or to increase materially the amount spent
by the Institutional Class for distribution, shall be effective only
upon approval by a vote of a majority of the outstanding voting
securities of the Institutional Class and (b) any material amendments
of this Plan shall be effective only upon approval in the manner
provided in the first sentence in this paragraph 6.
7. This Plan may be terminated at any time, without the payment of
any penalty, by vote of a majority of the Independent Trustees or by a
vote of a majority of the outstanding voting securities of the
Institutional Class.
8. During the existence of this Plan, the Trust shall require the
Adviser and/or Distributor to provide the Trust, for review by the
Trustees, and the Trustees shall review, at least quarterly, a written
report of the amounts expended in connection with financing any
activity primarily intended to result in the sale of Institutional
Class Shares (making estimates of such costs where necessary or
desirable) and the purposes for which such expenditures were made.
9. This Plan does not require the Adviser or Distributor to perform
any specific type or level of distribution activities or to incur any
specific level of expenses for activities primarily intended to result
in the sale of Institutional Class Shares.
10. Consistent with the limitation of shareholder liability as set
forth in the Trust's Declaration of Trust, any obligation assumed by
Institutional Class pursuant to this Plan and any agreement related to
this Plan shall be limited in all cases to the Institutional Class and
its assets and shall not constitute an obligation of any shareholder
of the Trust or of any other class of the Fund, series of the Trust or
class of such series.
11. If any provision of this Plan shall be held or made invalid by a
court decision, statute, rule or otherwise, the remainder of the Plan
shall not be affected thereby.
Exhibit m(19)
DISTRIBUTION AND SERVICE PLAN
Fidelity Advisor Consumer Industries Fund
Class B Shares
1. This Distribution and Service Plan (the "Plan"), when effective
in accordance with its terms, shall be the written plan contemplated
by Rule 12b-1 under the Investment Company Act of 1940, as amended
(the "Act") for Class B Shares of Fidelity Advisor Consumer Industries
Fund ("Class B"), a class of shares of Fidelity Advisor Consumer
Industries Fund (the "Fund"), a series of Fidelity Advisor Series VII
(the "Trust").
2. The Trust has entered into a General Distribution Agreement on
behalf of the Fund with Fidelity Distributors Corporation (the
"Distributor") under which the Distributor uses all reasonable
efforts, consistent with its other business, to secure purchasers of
the Fund's shares of beneficial interest (the "Shares"). Such efforts
may include, but neither are required to include nor are limited to,
the following: (1) formulation and implementation of marketing and
promotional activities, such as mail promotions and television, radio,
newspaper, magazine and other mass media advertising; (2) preparation,
printing and distribution of sales literature; (3) preparation,
printing and distribution of prospectuses of the Fund and reports to
recipients other than existing shareholders of the Fund; (4) obtaining
such information, analyses and reports with respect to marketing and
promotional activities as the Distributor may, from time to time, deem
advisable; (5) making payments to securities dealers and others
engaged in the sale of Shares or in shareholder support services
("Investment Professionals"); and (6) providing training, marketing
and support to Investment Professionals with respect to the sale of
Shares.
3. In accordance with such terms as the Trustees may, from time to
time establish, and in conjunction with its services under the General
Distribution Agreement with respect to Class B Shares, the Distributor
is hereby expressly authorized to make payments to Investment
Professionals in connection with the sale of Class B Shares. Such
payments may be paid as a percentage of the dollar amount of purchases
of Class B Shares attributable to a particular Investment
Professional, or may take such other form as may be approved by the
Trustees.
4. In consideration of the services provided and the expenses
incurred by the Distributor pursuant to the General Distribution
Agreement and paragraphs 2 and 3 hereof, all with respect to Class B
Shares:
(a) Class B shall pay to the Distributor a monthly distribution fee
at the annual rate of 0.75% (or such lesser amount as the Trustees
may, from time to time, determine) of the average daily net assets of
Class B throughout the month. The determination of daily net assets
shall be made at the close of business each day throughout the month
and computed in the manner specified in the Fund's then current
Prospectus for the determination of the net asset value of Class B
Shares, but shall exclude assets attributable to any other class of
Shares of the Fund. The Distributor may, but shall not be required
to, use all or any portion of the distribution fee received pursuant
to the Plan to compensate Investment Professionals who have engaged in
the sale of Class B Shares or in shareholder support services with
respect to Class B Shares pursuant to agreements with the Distributor,
or to pay any of the expenses associated with other activities
authorized under paragraphs 2 and 3 hereof; and
(b) In addition, the Plan recognizes that the Distributor may, in
accordance with such terms as the Trustees may from time to time
establish, receive all or a portion of any sales charges, including
contingent deferred sales charges, which may be imposed upon the sale
or redemption of Class B Shares.
5. Separate from any payments made as described in paragraph 4
hereof, Class B shall also pay to the Distributor a service fee at the
annual rate of 0.25% (or such lesser amount as the Trustees may, from
time to time, determine) of the average daily net assets of Class B
throughout the month. The determination of daily net assets shall be
made at the close of business each day throughout the month and
computed in the manner specified in the Fund's then current Prospectus
for the determination of the net asset value of Class B Shares, but
shall exclude assets attributable to any other class of Shares of the
Fund. In accordance with such terms as the Trustees may from time to
time establish, the Distributor may use all or a portion of such
service fees to compensate Investment Professionals for personal
service and/or the maintenance of shareholder accounts, or for other
services for which "service fees" lawfully may be paid in accordance
with applicable rules and regulations.
6. The Fund presently pays, and will continue to pay, a management
fee to Fidelity Management & Research Company (the "Adviser") pursuant
to a management agreement between the Fund and the Adviser (the
"Management Contract"). It is recognized that the Adviser may use its
management fee revenue, as well as its past profits or its resources
from any other source, to make payments to the Distributor with
respect to any expenses incurred in connection with the distribution
of Class B Shares, including the activities referred to in paragraphs
2 and 3 hereof. To the extent that the payment of management fees by
the Fund to the Adviser should be deemed to be indirect financing of
any activity primarily intended to result in the sale of Class B
Shares within the meaning of Rule 12b-1, then such payment shall be
deemed to be authorized by this Plan.
7. This Plan shall become effective upon the first business day of
the month following approval by a vote of at least a "majority of the
outstanding voting securities" (as defined in the Act) of Class B,
this Plan having been approved by a vote of a majority of the Trustees
of the Trust, including a majority of Trustees who are not "interested
persons" of the Trust (as defined in the Act) and who have no direct
or indirect financial interest in the operation of the Plan or in any
agreement related to the Plan (the "Independent Trustees"), cast in
person at a meeting called for the purpose of voting on this Plan.
8. This Plan shall, unless terminated as hereinafter provided,
remain in effect until April 30, 2000, and from year to year
thereafter; provided, however, that such continuance is subject to
approval annually by a vote of a majority of the Trustees of the
Trust, including a majority of the Independent Trustees, cast in
person at a meeting called for the purpose of voting on this Plan.
This Plan may be amended at any time by the Board of Trustees,
provided that (a) any amendment to increase materially the fees
provided for in paragraphs 4 and 5 hereof shall be effective only upon
approval by a vote of a majority of the outstanding voting securities
of Class B and (b) any material amendment of this Plan shall be
effective only upon approval in the manner provided in the first
sentence of this paragraph 8.
9. This Plan may be terminated at any time, without the payment of
any penalty, by vote of a majority of the Independent Trustees or by a
vote of a majority of the outstanding voting securities of Class B.
10. During the existence of this Plan, the Trust shall require the
Adviser and/or the Distributor to provide the Trust, for review by the
Trustees, and the Trustees shall review, at least quarterly, a written
report of the amounts expended in connection with financing any
activity primarily intended to result in the sale of Class B Shares
(making estimates of such costs where necessary or desirable) and the
purposes for which such expenditures were made.
11. This Plan does not require the Adviser or Distributor to perform
any specific type or level of distribution activities or to incur any
specific level of expenses for activities primarily intended to result
in the sale of Class B Shares.
12. Consistent with the limitation of shareholder liability as set
forth in the Trust's Declaration of Trust, any obligation assumed by
Class B pursuant to this Plan and any agreement related to this Plan
shall be limited in all cases to Class B and its assets and shall not
constitute an obligation of any shareholder of the Trust or of any
other class of the Fund, series of the Trust or class of such series.
13. If any provision of this Plan shall be held or made invalid by a
court decision, statute, rule or otherwise, the remainder of the Plan
shall not be affected thereby.
Exhibit m(20)
DISTRIBUTION AND SERVICE PLAN
Fidelity Advisor Cyclical Industries Fund
Class B Shares
1. This Distribution and Service Plan (the "Plan"), when effective
in accordance with its terms, shall be the written plan contemplated
by Rule 12b-1 under the Investment Company Act of 1940, as amended
(the "Act") for Class B Shares of Fidelity Advisor Cyclical Industries
Fund ("Class B"), a class of shares of Fidelity Advisor Cyclical
Industries Fund (the "Fund"), a series of Fidelity Advisor Series VII
(the "Trust").
2. The Trust has entered into a General Distribution Agreement on
behalf of the Fund with Fidelity Distributors Corporation (the
"Distributor") under which the Distributor uses all reasonable
efforts, consistent with its other business, to secure purchasers of
the Fund's shares of beneficial interest (the "Shares"). Such efforts
may include, but neither are required to include nor are limited to,
the following: (1) formulation and implementation of marketing and
promotional activities, such as mail promotions and television, radio,
newspaper, magazine and other mass media advertising; (2) preparation,
printing and distribution of sales literature; (3) preparation,
printing and distribution of prospectuses of the Fund and reports to
recipients other than existing shareholders of the Fund; (4) obtaining
such information, analyses and reports with respect to marketing and
promotional activities as the Distributor may, from time to time, deem
advisable; (5) making payments to securities dealers and others
engaged in the sale of Shares or in shareholder support services
("Investment Professionals"); and (6) providing training, marketing
and support to Investment Professionals with respect to the sale of
Shares.
3. In accordance with such terms as the Trustees may, from time to
time establish, and in conjunction with its services under the General
Distribution Agreement with respect to Class B Shares, the Distributor
is hereby expressly authorized to make payments to Investment
Professionals in connection with the sale of Class B Shares. Such
payments may be paid as a percentage of the dollar amount of purchases
of Class B Shares attributable to a particular Investment
Professional, or may take such other form as may be approved by the
Trustees.
4. In consideration of the services provided and the expenses
incurred by the Distributor pursuant to the General Distribution
Agreement and paragraphs 2 and 3 hereof, all with respect to Class B
Shares:
(a) Class B shall pay to the Distributor a monthly distribution fee
at the annual rate of 0.75% (or such lesser amount as the Trustees
may, from time to time, determine) of the average daily net assets of
Class B throughout the month. The determination of daily net assets
shall be made at the close of business each day throughout the month
and computed in the manner specified in the Fund's then current
Prospectus for the determination of the net asset value of Class B
Shares, but shall exclude assets attributable to any other class of
Shares of the Fund. The Distributor may, but shall not be required
to, use all or any portion of the distribution fee received pursuant
to the Plan to compensate Investment Professionals who have engaged in
the sale of Class B Shares or in shareholder support services with
respect to Class B Shares pursuant to agreements with the Distributor,
or to pay any of the expenses associated with other activities
authorized under paragraphs 2 and 3 hereof; and
(b) In addition, the Plan recognizes that the Distributor may, in
accordance with such terms as the Trustees may from time to time
establish, receive all or a portion of any sales charges, including
contingent deferred sales charges, which may be imposed upon the sale
or redemption of Class B Shares.
5. Separate from any payments made as described in paragraph 4
hereof, Class B shall also pay to the Distributor a service fee at the
annual rate of 0.25% (or such lesser amount as the Trustees may, from
time to time, determine) of the average daily net assets of Class B
throughout the month. The determination of daily net assets shall be
made at the close of business each day throughout the month and
computed in the manner specified in the Fund's then current Prospectus
for the determination of the net asset value of Class B Shares, but
shall exclude assets attributable to any other class of Shares of the
Fund. In accordance with such terms as the Trustees may from time to
time establish, the Distributor may use all or a portion of such
service fees to compensate Investment Professionals for personal
service and/or the maintenance of shareholder accounts, or for other
services for which "service fees" lawfully may be paid in accordance
with applicable rules and regulations.
6. The Fund presently pays, and will continue to pay, a management
fee to Fidelity Management & Research Company (the "Adviser") pursuant
to a management agreement between the Fund and the Adviser (the
"Management Contract"). It is recognized that the Adviser may use its
management fee revenue, as well as its past profits or its resources
from any other source, to make payments to the Distributor with
respect to any expenses incurred in connection with the distribution
of Class B Shares, including the activities referred to in paragraphs
2 and 3 hereof. To the extent that the payment of management fees by
the Fund to the Adviser should be deemed to be indirect financing of
any activity primarily intended to result in the sale of Class B
Shares within the meaning of Rule 12b-1, then such payment shall be
deemed to be authorized by this Plan.
7. This Plan shall become effective upon the first business day of
the month following approval by a vote of at least a "majority of the
outstanding voting securities" (as defined in the Act) of Class B,
this Plan having been approved by a vote of a majority of the Trustees
of the Trust, including a majority of Trustees who are not "interested
persons" of the Trust (as defined in the Act) and who have no direct
or indirect financial interest in the operation of the Plan or in any
agreement related to the Plan (the "Independent Trustees"), cast in
person at a meeting called for the purpose of voting on this Plan.
8. This Plan shall, unless terminated as hereinafter provided,
remain in effect until April 30, 2000, and from year to year
thereafter; provided, however, that such continuance is subject to
approval annually by a vote of a majority of the Trustees of the
Trust, including a majority of the Independent Trustees, cast in
person at a meeting called for the purpose of voting on this Plan.
This Plan may be amended at any time by the Board of Trustees,
provided that (a) any amendment to increase materially the fees
provided for in paragraphs 4 and 5 hereof shall be effective only upon
approval by a vote of a majority of the outstanding voting securities
of Class B and (b) any material amendment of this Plan shall be
effective only upon approval in the manner provided in the first
sentence of this paragraph 8.
9. This Plan may be terminated at any time, without the payment of
any penalty, by vote of a majority of the Independent Trustees or by a
vote of a majority of the outstanding voting securities of Class B.
10. During the existence of this Plan, the Trust shall require the
Adviser and/or the Distributor to provide the Trust, for review by the
Trustees, and the Trustees shall review, at least quarterly, a written
report of the amounts expended in connection with financing any
activity primarily intended to result in the sale of Class B Shares
(making estimates of such costs where necessary or desirable) and the
purposes for which such expenditures were made.
11. This Plan does not require the Adviser or Distributor to perform
any specific type or level of distribution activities or to incur any
specific level of expenses for activities primarily intended to result
in the sale of Class B Shares.
12. Consistent with the limitation of shareholder liability as set
forth in the Trust's Declaration of Trust, any obligation assumed by
Class B pursuant to this Plan and any agreement related to this Plan
shall be limited in all cases to Class B and its assets and shall not
constitute an obligation of any shareholder of the Trust or of any
other class of the Fund, series of the Trust or class of such series.
13. If any provision of this Plan shall be held or made invalid by a
court decision, statute, rule or otherwise, the remainder of the Plan
shall not be affected thereby.
Exhibit m(21)
DISTRIBUTION AND SERVICE PLAN
Fidelity Advisor Financial Services Fund
Class B Shares
1. This Distribution and Service Plan (the "Plan"), when effective
in accordance with its terms, shall be the written plan contemplated
by Rule 12b-1 under the Investment Company Act of 1940, as amended
(the "Act") for Class B Shares of Fidelity Advisor Financial Services
Fund ("Class B"), a class of shares of Fidelity Advisor Financial
Services Fund (the "Fund"), a series of Fidelity Advisor Series VII
(the "Trust").
2. The Trust has entered into a General Distribution Agreement on
behalf of the Fund with Fidelity Distributors Corporation (the
"Distributor") under which the Distributor uses all reasonable
efforts, consistent with its other business, to secure purchasers of
the Fund's shares of beneficial interest (the "Shares"). Such efforts
may include, but neither are required to include nor are limited to,
the following: (1) formulation and implementation of marketing and
promotional activities, such as mail promotions and television, radio,
newspaper, magazine and other mass media advertising; (2) preparation,
printing and distribution of sales literature; (3) preparation,
printing and distribution of prospectuses of the Fund and reports to
recipients other than existing shareholders of the Fund; (4) obtaining
such information, analyses and reports with respect to marketing and
promotional activities as the Distributor may, from time to time, deem
advisable; (5) making payments to securities dealers and others
engaged in the sale of Shares or in shareholder support services
("Investment Professionals"); and (6) providing training, marketing
and support to Investment Professionals with respect to the sale of
Shares.
3. In accordance with such terms as the Trustees may, from time to
time establish, and in conjunction with its services under the General
Distribution Agreement with respect to Class B Shares, the Distributor
is hereby expressly authorized to make payments to Investment
Professionals in connection with the sale of Class B Shares. Such
payments may be paid as a percentage of the dollar amount of purchases
of Class B Shares attributable to a particular Investment
Professional, or may take such other form as may be approved by the
Trustees.
4. In consideration of the services provided and the expenses
incurred by the Distributor pursuant to the General Distribution
Agreement and paragraphs 2 and 3 hereof, all with respect to Class B
Shares:
(a) Class B shall pay to the Distributor a monthly distribution fee
at the annual rate of 0.75% (or such lesser amount as the Trustees
may, from time to time, determine) of the average daily net assets of
Class B throughout the month. The determination of daily net assets
shall be made at the close of business each day throughout the month
and computed in the manner specified in the Fund's then current
Prospectus for the determination of the net asset value of Class B
Shares, but shall exclude assets attributable to any other class of
Shares of the Fund. The Distributor may, but shall not be required
to, use all or any portion of the distribution fee received pursuant
to the Plan to compensate Investment Professionals who have engaged in
the sale of Class B Shares or in shareholder support services with
respect to Class B Shares pursuant to agreements with the Distributor,
or to pay any of the expenses associated with other activities
authorized under paragraphs 2 and 3 hereof; and
(b) In addition, the Plan recognizes that the Distributor may, in
accordance with such terms as the Trustees may from time to time
establish, receive all or a portion of any sales charges, including
contingent deferred sales charges, which may be imposed upon the sale
or redemption of Class B Shares.
5. Separate from any payments made as described in paragraph 4
hereof, Class B shall also pay to the Distributor a service fee at the
annual rate of 0.25% (or such lesser amount as the Trustees may, from
time to time, determine) of the average daily net assets of Class B
throughout the month. The determination of daily net assets shall be
made at the close of business each day throughout the month and
computed in the manner specified in the Fund's then current Prospectus
for the determination of the net asset value of Class B Shares, but
shall exclude assets attributable to any other class of Shares of the
Fund. In accordance with such terms as the Trustees may from time to
time establish, the Distributor may use all or a portion of such
service fees to compensate Investment Professionals for personal
service and/or the maintenance of shareholder accounts, or for other
services for which "service fees" lawfully may be paid in accordance
with applicable rules and regulations.
6. The Fund presently pays, and will continue to pay, a management
fee to Fidelity Management & Research Company (the "Adviser") pursuant
to a management agreement between the Fund and the Adviser (the
"Management Contract"). It is recognized that the Adviser may use its
management fee revenue, as well as its past profits or its resources
from any other source, to make payments to the Distributor with
respect to any expenses incurred in connection with the distribution
of Class B Shares, including the activities referred to in paragraphs
2 and 3 hereof. To the extent that the payment of management fees by
the Fund to the Adviser should be deemed to be indirect financing of
any activity primarily intended to result in the sale of Class B
Shares within the meaning of Rule 12b-1, then such payment shall be
deemed to be authorized by this Plan.
7. This Plan shall become effective upon the first business day of
the month following approval by a vote of at least a "majority of the
outstanding voting securities" (as defined in the Act) of Class B,
this Plan having been approved by a vote of a majority of the Trustees
of the Trust, including a majority of Trustees who are not "interested
persons" of the Trust (as defined in the Act) and who have no direct
or indirect financial interest in the operation of the Plan or in any
agreement related to the Plan (the "Independent Trustees"), cast in
person at a meeting called for the purpose of voting on this Plan.
8. This Plan shall, unless terminated as hereinafter provided,
remain in effect until April 30, 2000, and from year to year
thereafter; provided, however, that such continuance is subject to
approval annually by a vote of a majority of the Trustees of the
Trust, including a majority of the Independent Trustees, cast in
person at a meeting called for the purpose of voting on this Plan.
This Plan may be amended at any time by the Board of Trustees,
provided that (a) any amendment to increase materially the fees
provided for in paragraphs 4 and 5 hereof shall be effective only upon
approval by a vote of a majority of the outstanding voting securities
of Class B and (b) any material amendment of this Plan shall be
effective only upon approval in the manner provided in the first
sentence of this paragraph 8.
9. This Plan may be terminated at any time, without the payment of
any penalty, by vote of a majority of the Independent Trustees or by a
vote of a majority of the outstanding voting securities of Class B.
10. During the existence of this Plan, the Trust shall require the
Adviser and/or the Distributor to provide the Trust, for review by the
Trustees, and the Trustees shall review, at least quarterly, a written
report of the amounts expended in connection with financing any
activity primarily intended to result in the sale of Class B Shares
(making estimates of such costs where necessary or desirable) and the
purposes for which such expenditures were made.
11. This Plan does not require the Adviser or Distributor to perform
any specific type or level of distribution activities or to incur any
specific level of expenses for activities primarily intended to result
in the sale of Class B Shares.
12. Consistent with the limitation of shareholder liability as set
forth in the Trust's Declaration of Trust, any obligation assumed by
Class B pursuant to this Plan and any agreement related to this Plan
shall be limited in all cases to Class B and its assets and shall not
constitute an obligation of any shareholder of the Trust or of any
other class of the Fund, series of the Trust or class of such series.
13. If any provision of this Plan shall be held or made invalid by a
court decision, statute, rule or otherwise, the remainder of the Plan
shall not be affected thereby.
Exhibit m(22)
DISTRIBUTION AND SERVICE PLAN
Fidelity Advisor Health Care Fund
Class B Shares
1. This Distribution and Service Plan (the "Plan"), when effective
in accordance with its terms, shall be the written plan contemplated
by Rule 12b-1 under the Investment Company Act of 1940, as amended
(the "Act") for Class B Shares of Fidelity Advisor Health Care Fund
("Class B"), a class of shares of Fidelity Advisor Health Care Fund
(the "Fund"), a series of Fidelity Advisor Series VII (the "Trust").
2. The Trust has entered into a General Distribution Agreement on
behalf of the Fund with Fidelity Distributors Corporation (the
"Distributor") under which the Distributor uses all reasonable
efforts, consistent with its other business, to secure purchasers of
the Fund's shares of beneficial interest (the "Shares"). Such efforts
may include, but neither are required to include nor are limited to,
the following: (1) formulation and implementation of marketing and
promotional activities, such as mail promotions and television, radio,
newspaper, magazine and other mass media advertising; (2) preparation,
printing and distribution of sales literature; (3) preparation,
printing and distribution of prospectuses of the Fund and reports to
recipients other than existing shareholders of the Fund; (4) obtaining
such information, analyses and reports with respect to marketing and
promotional activities as the Distributor may, from time to time, deem
advisable; (5) making payments to securities dealers and others
engaged in the sale of Shares or in shareholder support services
("Investment Professionals"); and (6) providing training, marketing
and support to Investment Professionals with respect to the sale of
Shares.
3. In accordance with such terms as the Trustees may, from time to
time establish, and in conjunction with its services under the General
Distribution Agreement with respect to Class B Shares, the Distributor
is hereby expressly authorized to make payments to Investment
Professionals in connection with the sale of Class B Shares. Such
payments may be paid as a percentage of the dollar amount of purchases
of Class B Shares attributable to a particular Investment
Professional, or may take such other form as may be approved by the
Trustees.
4. In consideration of the services provided and the expenses
incurred by the Distributor pursuant to the General Distribution
Agreement and paragraphs 2 and 3 hereof, all with respect to Class B
Shares:
(a) Class B shall pay to the Distributor a monthly distribution fee
at the annual rate of 0.75% (or such lesser amount as the Trustees
may, from time to time, determine) of the average daily net assets of
Class B throughout the month. The determination of daily net assets
shall be made at the close of business each day throughout the month
and computed in the manner specified in the Fund's then current
Prospectus for the determination of the net asset value of Class B
Shares, but shall exclude assets attributable to any other class of
Shares of the Fund. The Distributor may, but shall not be required
to, use all or any portion of the distribution fee received pursuant
to the Plan to compensate Investment Professionals who have engaged in
the sale of Class B Shares or in shareholder support services with
respect to Class B Shares pursuant to agreements with the Distributor,
or to pay any of the expenses associated with other activities
authorized under paragraphs 2 and 3 hereof; and
(b) In addition, the Plan recognizes that the Distributor may, in
accordance with such terms as the Trustees may from time to time
establish, receive all or a portion of any sales charges, including
contingent deferred sales charges, which may be imposed upon the sale
or redemption of Class B Shares.
5. Separate from any payments made as described in paragraph 4
hereof, Class B shall also pay to the Distributor a service fee at the
annual rate of 0.25% (or such lesser amount as the Trustees may, from
time to time, determine) of the average daily net assets of Class B
throughout the month. The determination of daily net assets shall be
made at the close of business each day throughout the month and
computed in the manner specified in the Fund's then current Prospectus
for the determination of the net asset value of Class B Shares, but
shall exclude assets attributable to any other class of Shares of the
Fund. In accordance with such terms as the Trustees may from time to
time establish, the Distributor may use all or a portion of such
service fees to compensate Investment Professionals for personal
service and/or the maintenance of shareholder accounts, or for other
services for which "service fees" lawfully may be paid in accordance
with applicable rules and regulations.
6. The Fund presently pays, and will continue to pay, a management
fee to Fidelity Management & Research Company (the "Adviser") pursuant
to a management agreement between the Fund and the Adviser (the
"Management Contract"). It is recognized that the Adviser may use its
management fee revenue, as well as its past profits or its resources
from any other source, to make payments to the Distributor with
respect to any expenses incurred in connection with the distribution
of Class B Shares, including the activities referred to in paragraphs
2 and 3 hereof. To the extent that the payment of management fees by
the Fund to the Adviser should be deemed to be indirect financing of
any activity primarily intended to result in the sale of Class B
Shares within the meaning of Rule 12b-1, then such payment shall be
deemed to be authorized by this Plan.
7. This Plan shall become effective upon the first business day of
the month following approval by a vote of at least a "majority of the
outstanding voting securities" (as defined in the Act) of Class B,
this Plan having been approved by a vote of a majority of the Trustees
of the Trust, including a majority of Trustees who are not "interested
persons" of the Trust (as defined in the Act) and who have no direct
or indirect financial interest in the operation of the Plan or in any
agreement related to the Plan (the "Independent Trustees"), cast in
person at a meeting called for the purpose of voting on this Plan.
8. This Plan shall, unless terminated as hereinafter provided,
remain in effect until April 30, 2000, and from year to year
thereafter; provided, however, that such continuance is subject to
approval annually by a vote of a majority of the Trustees of the
Trust, including a majority of the Independent Trustees, cast in
person at a meeting called for the purpose of voting on this Plan.
This Plan may be amended at any time by the Board of Trustees,
provided that (a) any amendment to increase materially the fees
provided for in paragraphs 4 and 5 hereof shall be effective only upon
approval by a vote of a majority of the outstanding voting securities
of Class B and (b) any material amendment of this Plan shall be
effective only upon approval in the manner provided in the first
sentence of this paragraph 8.
9. This Plan may be terminated at any time, without the payment of
any penalty, by vote of a majority of the Independent Trustees or by a
vote of a majority of the outstanding voting securities of Class B.
10. During the existence of this Plan, the Trust shall require the
Adviser and/or the Distributor to provide the Trust, for review by the
Trustees, and the Trustees shall review, at least quarterly, a written
report of the amounts expended in connection with financing any
activity primarily intended to result in the sale of Class B Shares
(making estimates of such costs where necessary or desirable) and the
purposes for which such expenditures were made.
11. This Plan does not require the Adviser or Distributor to perform
any specific type or level of distribution activities or to incur any
specific level of expenses for activities primarily intended to result
in the sale of Class B Shares.
12. Consistent with the limitation of shareholder liability as set
forth in the Trust's Declaration of Trust, any obligation assumed by
Class B pursuant to this Plan and any agreement related to this Plan
shall be limited in all cases to Class B and its assets and shall not
constitute an obligation of any shareholder of the Trust or of any
other class of the Fund, series of the Trust or class of such series.
13. If any provision of this Plan shall be held or made invalid by a
court decision, statute, rule or otherwise, the remainder of the Plan
shall not be affected thereby.
Exhibit m(23)
DISTRIBUTION AND SERVICE PLAN
Fidelity Advisor Technology Fund
Class B Shares
1. This Distribution and Service Plan (the "Plan"), when effective
in accordance with its terms, shall be the written plan contemplated
by Rule 12b-1 under the Investment Company Act of 1940, as amended
(the "Act") for Class B Shares of Fidelity Advisor Technology Fund
("Class B"), a class of shares of Fidelity Advisor Technology Fund
(the "Fund"), a series of Fidelity Advisor Series VII (the "Trust").
2. The Trust has entered into a General Distribution Agreement on
behalf of the Fund with Fidelity Distributors Corporation (the
"Distributor") under which the Distributor uses all reasonable
efforts, consistent with its other business, to secure purchasers of
the Fund's shares of beneficial interest (the "Shares"). Such efforts
may include, but neither are required to include nor are limited to,
the following: (1) formulation and implementation of marketing and
promotional activities, such as mail promotions and television, radio,
newspaper, magazine and other mass media advertising; (2) preparation,
printing and distribution of sales literature; (3) preparation,
printing and distribution of prospectuses of the Fund and reports to
recipients other than existing shareholders of the Fund; (4) obtaining
such information, analyses and reports with respect to marketing and
promotional activities as the Distributor may, from time to time, deem
advisable; (5) making payments to securities dealers and others
engaged in the sale of Shares or in shareholder support services
("Investment Professionals"); and (6) providing training, marketing
and support to Investment Professionals with respect to the sale of
Shares.
3. In accordance with such terms as the Trustees may, from time to
time establish, and in conjunction with its services under the General
Distribution Agreement with respect to Class B Shares, the Distributor
is hereby expressly authorized to make payments to Investment
Professionals in connection with the sale of Class B Shares. Such
payments may be paid as a percentage of the dollar amount of purchases
of Class B Shares attributable to a particular Investment
Professional, or may take such other form as may be approved by the
Trustees.
4. In consideration of the services provided and the expenses
incurred by the Distributor pursuant to the General Distribution
Agreement and paragraphs 2 and 3 hereof, all with respect to Class B
Shares:
(a) Class B shall pay to the Distributor a monthly distribution fee
at the annual rate of 0.75% (or such lesser amount as the Trustees
may, from time to time, determine) of the average daily net assets of
Class B throughout the month. The determination of daily net assets
shall be made at the close of business each day throughout the month
and computed in the manner specified in the Fund's then current
Prospectus for the determination of the net asset value of Class B
Shares, but shall exclude assets attributable to any other class of
Shares of the Fund. The Distributor may, but shall not be required
to, use all or any portion of the distribution fee received pursuant
to the Plan to compensate Investment Professionals who have engaged in
the sale of Class B Shares or in shareholder support services with
respect to Class B Shares pursuant to agreements with the Distributor,
or to pay any of the expenses associated with other activities
authorized under paragraphs 2 and 3 hereof; and
(b) In addition, the Plan recognizes that the Distributor may, in
accordance with such terms as the Trustees may from time to time
establish, receive all or a portion of any sales charges, including
contingent deferred sales charges, which may be imposed upon the sale
or redemption of Class B Shares.
5. Separate from any payments made as described in paragraph 4
hereof, Class B shall also pay to the Distributor a service fee at the
annual rate of 0.25% (or such lesser amount as the Trustees may, from
time to time, determine) of the average daily net assets of Class B
throughout the month. The determination of daily net assets shall be
made at the close of business each day throughout the month and
computed in the manner specified in the Fund's then current Prospectus
for the determination of the net asset value of Class B Shares, but
shall exclude assets attributable to any other class of Shares of the
Fund. In accordance with such terms as the Trustees may from time to
time establish, the Distributor may use all or a portion of such
service fees to compensate Investment Professionals for personal
service and/or the maintenance of shareholder accounts, or for other
services for which "service fees" lawfully may be paid in accordance
with applicable rules and regulations.
6. The Fund presently pays, and will continue to pay, a management
fee to Fidelity Management & Research Company (the "Adviser") pursuant
to a management agreement between the Fund and the Adviser (the
"Management Contract"). It is recognized that the Adviser may use its
management fee revenue, as well as its past profits or its resources
from any other source, to make payments to the Distributor with
respect to any expenses incurred in connection with the distribution
of Class B Shares, including the activities referred to in paragraphs
2 and 3 hereof. To the extent that the payment of management fees by
the Fund to the Adviser should be deemed to be indirect financing of
any activity primarily intended to result in the sale of Class B
Shares within the meaning of Rule 12b-1, then such payment shall be
deemed to be authorized by this Plan.
7. This Plan shall become effective upon the first business day of
the month following approval by a vote of at least a "majority of the
outstanding voting securities" (as defined in the Act) of Class B,
this Plan having been approved by a vote of a majority of the Trustees
of the Trust, including a majority of Trustees who are not "interested
persons" of the Trust (as defined in the Act) and who have no direct
or indirect financial interest in the operation of the Plan or in any
agreement related to the Plan (the "Independent Trustees"), cast in
person at a meeting called for the purpose of voting on this Plan.
8. This Plan shall, unless terminated as hereinafter provided,
remain in effect until April 30, 2000, and from year to year
thereafter; provided, however, that such continuance is subject to
approval annually by a vote of a majority of the Trustees of the
Trust, including a majority of the Independent Trustees, cast in
person at a meeting called for the purpose of voting on this Plan.
This Plan may be amended at any time by the Board of Trustees,
provided that (a) any amendment to increase materially the fees
provided for in paragraphs 4 and 5 hereof shall be effective only upon
approval by a vote of a majority of the outstanding voting securities
of Class B and (b) any material amendment of this Plan shall be
effective only upon approval in the manner provided in the first
sentence of this paragraph 8.
9. This Plan may be terminated at any time, without the payment of
any penalty, by vote of a majority of the Independent Trustees or by a
vote of a majority of the outstanding voting securities of Class B.
10. During the existence of this Plan, the Trust shall require the
Adviser and/or the Distributor to provide the Trust, for review by the
Trustees, and the Trustees shall review, at least quarterly, a written
report of the amounts expended in connection with financing any
activity primarily intended to result in the sale of Class B Shares
(making estimates of such costs where necessary or desirable) and the
purposes for which such expenditures were made.
11. This Plan does not require the Adviser or Distributor to perform
any specific type or level of distribution activities or to incur any
specific level of expenses for activities primarily intended to result
in the sale of Class B Shares.
12. Consistent with the limitation of shareholder liability as set
forth in the Trust's Declaration of Trust, any obligation assumed by
Class B pursuant to this Plan and any agreement related to this Plan
shall be limited in all cases to Class B and its assets and shall not
constitute an obligation of any shareholder of the Trust or of any
other class of the Fund, series of the Trust or class of such series.
13. If any provision of this Plan shall be held or made invalid by a
court decision, statute, rule or otherwise, the remainder of the Plan
shall not be affected thereby.
Exhibit m(24)
DISTRIBUTION AND SERVICE PLAN
Fidelity Advisor Utilities Growth Fund
Class B Shares
1. This Distribution and Service Plan (the "Plan"), when effective
in accordance with its terms, shall be the written plan contemplated
by Rule 12b-1 under the Investment Company Act of 1940, as amended
(the "Act") for Class B Shares of Fidelity Advisor Utilities Growth
Fund ("Class B"), a class of shares of Fidelity Advisor Utilities
Growth Fund (the "Fund"), a series of Fidelity Advisor Series VII (the
"Trust").
2. The Trust has entered into a General Distribution Agreement on
behalf of the Fund with Fidelity Distributors Corporation (the
"Distributor") under which the Distributor uses all reasonable
efforts, consistent with its other business, to secure purchasers of
the Fund's shares of beneficial interest (the "Shares"). Such efforts
may include, but neither are required to include nor are limited to,
the following: (1) formulation and implementation of marketing and
promotional activities, such as mail promotions and television, radio,
newspaper, magazine and other mass media advertising; (2) preparation,
printing and distribution of sales literature; (3) preparation,
printing and distribution of prospectuses of the Fund and reports to
recipients other than existing shareholders of the Fund; (4) obtaining
such information, analyses and reports with respect to marketing and
promotional activities as the Distributor may, from time to time, deem
advisable; (5) making payments to securities dealers and others
engaged in the sale of Shares or in shareholder support services
("Investment Professionals"); and (6) providing training, marketing
and support to Investment Professionals with respect to the sale of
Shares.
3. In accordance with such terms as the Trustees may, from time to
time establish, and in conjunction with its services under the General
Distribution Agreement with respect to Class B Shares, the Distributor
is hereby expressly authorized to make payments to Investment
Professionals in connection with the sale of Class B Shares. Such
payments may be paid as a percentage of the dollar amount of purchases
of Class B Shares attributable to a particular Investment
Professional, or may take such other form as may be approved by the
Trustees.
4. In consideration of the services provided and the expenses
incurred by the Distributor pursuant to the General Distribution
Agreement and paragraphs 2 and 3 hereof, all with respect to Class B
Shares:
(a) Class B shall pay to the Distributor a monthly distribution fee
at the annual rate of 0.75% (or such lesser amount as the Trustees
may, from time to time, determine) of the average daily net assets of
Class B throughout the month. The determination of daily net assets
shall be made at the close of business each day throughout the month
and computed in the manner specified in the Fund's then current
Prospectus for the determination of the net asset value of Class B
Shares, but shall exclude assets attributable to any other class of
Shares of the Fund. The Distributor may, but shall not be required
to, use all or any portion of the distribution fee received pursuant
to the Plan to compensate Investment Professionals who have engaged in
the sale of Class B Shares or in shareholder support services with
respect to Class B Shares pursuant to agreements with the Distributor,
or to pay any of the expenses associated with other activities
authorized under paragraphs 2 and 3 hereof; and
(b) In addition, the Plan recognizes that the Distributor may, in
accordance with such terms as the Trustees may from time to time
establish, receive all or a portion of any sales charges, including
contingent deferred sales charges, which may be imposed upon the sale
or redemption of Class B Shares.
5. Separate from any payments made as described in paragraph 4
hereof, Class B shall also pay to the Distributor a service fee at the
annual rate of 0.25% (or such lesser amount as the Trustees may, from
time to time, determine) of the average daily net assets of Class B
throughout the month. The determination of daily net assets shall be
made at the close of business each day throughout the month and
computed in the manner specified in the Fund's then current Prospectus
for the determination of the net asset value of Class B Shares, but
shall exclude assets attributable to any other class of Shares of the
Fund. In accordance with such terms as the Trustees may from time to
time establish, the Distributor may use all or a portion of such
service fees to compensate Investment Professionals for personal
service and/or the maintenance of shareholder accounts, or for other
services for which "service fees" lawfully may be paid in accordance
with applicable rules and regulations.
6. The Fund presently pays, and will continue to pay, a management
fee to Fidelity Management & Research Company (the "Adviser") pursuant
to a management agreement between the Fund and the Adviser (the
"Management Contract"). It is recognized that the Adviser may use its
management fee revenue, as well as its past profits or its resources
from any other source, to make payments to the Distributor with
respect to any expenses incurred in connection with the distribution
of Class B Shares, including the activities referred to in paragraphs
2 and 3 hereof. To the extent that the payment of management fees by
the Fund to the Adviser should be deemed to be indirect financing of
any activity primarily intended to result in the sale of Class B
Shares within the meaning of Rule 12b-1, then such payment shall be
deemed to be authorized by this Plan.
7. This Plan shall become effective upon the first business day of
the month following approval by a vote of at least a "majority of the
outstanding voting securities" (as defined in the Act) of Class B,
this Plan having been approved by a vote of a majority of the Trustees
of the Trust, including a majority of Trustees who are not "interested
persons" of the Trust (as defined in the Act) and who have no direct
or indirect financial interest in the operation of the Plan or in any
agreement related to the Plan (the "Independent Trustees"), cast in
person at a meeting called for the purpose of voting on this Plan.
8. This Plan shall, unless terminated as hereinafter provided,
remain in effect until April 30, 2000, and from year to year
thereafter; provided, however, that such continuance is subject to
approval annually by a vote of a majority of the Trustees of the
Trust, including a majority of the Independent Trustees, cast in
person at a meeting called for the purpose of voting on this Plan.
This Plan may be amended at any time by the Board of Trustees,
provided that (a) any amendment to increase materially the fees
provided for in paragraphs 4 and 5 hereof shall be effective only upon
approval by a vote of a majority of the outstanding voting securities
of Class B and (b) any material amendment of this Plan shall be
effective only upon approval in the manner provided in the first
sentence of this paragraph 8.
9. This Plan may be terminated at any time, without the payment of
any penalty, by vote of a majority of the Independent Trustees or by a
vote of a majority of the outstanding voting securities of Class B.
10. During the existence of this Plan, the Trust shall require the
Adviser and/or the Distributor to provide the Trust, for review by the
Trustees, and the Trustees shall review, at least quarterly, a written
report of the amounts expended in connection with financing any
activity primarily intended to result in the sale of Class B Shares
(making estimates of such costs where necessary or desirable) and the
purposes for which such expenditures were made.
11. This Plan does not require the Adviser or Distributor to perform
any specific type or level of distribution activities or to incur any
specific level of expenses for activities primarily intended to result
in the sale of Class B Shares.
12. Consistent with the limitation of shareholder liability as set
forth in the Trust's Declaration of Trust, any obligation assumed by
Class B pursuant to this Plan and any agreement related to this Plan
shall be limited in all cases to Class B and its assets and shall not
constitute an obligation of any shareholder of the Trust or of any
other class of the Fund, series of the Trust or class of such series.
13. If any provision of this Plan shall be held or made invalid by a
court decision, statute, rule or otherwise, the remainder of the Plan
shall not be affected thereby.
Exhibit m(25)
DISTRIBUTION AND SERVICE PLAN
FIDELITY ADVISOR CONSUMER INDUSTRIES FUND
CLASS C SHARES
1. This Distribution and Service Plan (the "Plan"), when effective
in accordance with its terms, shall be the written plan contemplated
by Rule 12b-1 under the Investment Company Act of 1940, as amended
(the "Act"), for Class C Shares of Fidelity Advisor Consumer
Industries Fund ("Class C"), a class of shares of Fidelity Advisor
Consumer Industries Fund (the "Fund"), a series of Fidelity Advisor
Series VII (the "Trust").
2. The Trust has entered into a General Distribution Agreement on
behalf of the Fund with Fidelity Distributors Corporation (the
"Distributor") under which the Distributor uses all reasonable
efforts, consistent with its other business, to secure purchasers of
the Fund's shares of beneficial interest (the "Shares"). Such efforts
may include, but neither are required to include nor are limited to,
the following: (1) formulation and implementation of marketing and
promotional activities, such as mail promotions and television, radio,
newspaper, magazine and other mass media advertising; (2) preparation,
printing and distribution of sales literature; (3) preparation,
printing and distribution of prospectuses of the Fund and reports to
recipients other than existing shareholders of the Fund; (4) obtaining
such information, analyses and reports with respect to marketing and
promotional activities as the Distributor may, from time to time, deem
advisable; (5) making payments to securities dealers and others
engaged in the sale of Shares or in shareholder support services
("Investment Professionals"); and (6) providing training, marketing
and support to Investment Professionals with respect to the sale of
Shares.
3. In accordance with such terms as the Trustees may, from time to
time establish, and in conjunction with its services under the General
Distribution Agreement with respect to Class C Shares, the Distributor
is hereby expressly authorized to make payments to Investment
Professionals in connection with the sale of Class C Shares. Such
payments may be paid as a percentage of the dollar amount of purchases
of Class C Shares attributable to a particular Investment
Professional, or may take such other form as may be approved by the
Trustees.
4. In consideration of the services provided and the expenses
incurred by the Distributor pursuant to the General Distribution
Agreement and paragraphs 2 and 3 hereof, all with respect to Class C
Shares:
(a) Class C shall pay to the Distributor a monthly distribution fee
at the annual rate of 0.75% (or such lesser amount as the Trustees
may, from time to time, determine) of the average daily net assets of
Class C throughout the month. The determination of daily net assets
shall be made at the close of business each day throughout the month
and computed in the manner specified in the Fund's then current
Prospectus for the determination of the net asset value of Class C
Shares, but shall exclude assets attributable to any other class of
Shares of the Fund. The Distributor may, but shall not be required
to, use all or any portion of the distribution fee received pursuant
to the Plan to compensate Investment Professionals who have engaged in
the sale of Class C Shares or in shareholder support services with
respect to Class C Shares pursuant to agreements with the Distributor,
or to pay any of the expenses associated with other activities
authorized under paragraphs 2 and 3 hereof; and
(b) In addition, the Plan recognizes that the Distributor may, in
accordance with such terms as the Trustees may from time to time
establish, receive all or a portion of any sales charges, including
contingent deferred sales charges, which may be imposed upon the sale
or redemption of Class C Shares.
5. Separate from any payments made as described in paragraph 4
hereof, Class C shall also pay to the Distributor a service fee at the
annual rate of 0.25% (or such lesser amount as the Trustees may, from
time to time, determine) of the average daily net assets of Class C
throughout the month. The determination of daily net assets shall be
made at the close of business each day throughout the month and
computed in the manner specified in the Fund's then current Prospectus
for the determination of the net asset value of Class C Shares, but
shall exclude assets attributable to any other class of Shares of the
Fund. In accordance with such terms as the Trustees may from time to
time establish, the Distributor may use all or a portion of such
service fees to compensate Investment Professionals for personal
service and/or the maintenance of shareholder accounts, or for other
services for which "service fees" lawfully may be paid in accordance
with applicable rules and regulations.
6. The Fund presently pays, and will continue to pay, a management
fee to Fidelity Management & Research Company (the "Adviser") pursuant
to a management agreement between the Fund and the Adviser (the
"Management Contract"). It is recognized that the Adviser may use its
management fee revenue, as well as its past profits or its resources
from any other source, to make payment to the Distributor with respect
to any expenses incurred in connection with the distribution of Class
C Shares, including the activities referred to in paragraphs 2 and 3
hereof. To the extent that the payment of management fees by the Fund
to the Adviser should be deemed to be indirect financing of any
activity primarily intended to result in the sale of Class C Shares
within the meaning of Rule 12b-1, then such payment shall be deemed to
be authorized by this Plan.
7. This Plan shall become effective upon approval by a vote of a
majority of the Trustees of the Trust, including a majority of
Trustees who are not "interested persons" of the Trust (as defined in
the Act) and who have no direct or indirect financial interest in the
operation of the Plan or in any agreement related to the Plan (the
"Independent Trustees"), cast in person at a meeting called for the
purpose of voting on this Plan.
8. This Plan shall, unless terminated as hereinafter provided,
remain in effect until April 30, 2000, and from year to year
thereafter; provided, however, that such continuance is subject to
approval annually by a vote of a majority of the Trustees of the
Trust, including a majority of the Independent Trustees, cast in
person at a meeting called for the purpose of voting on this Plan.
This Plan may be amended at any time by the Board of Trustees,
provided that (a) any amendment to increase materially the fees
provided for in paragraphs 4 and 5 hereof shall be effective only upon
approval by a vote of a majority of the outstanding voting securities
of Class C and (b) any material amendment of this Plan shall be
effective only upon approval in the manner provided in the first
sentence of this paragraph 8.
9. This Plan may be terminated at any time, without the payment of
any penalty, by vote of a majority of the Independent Trustees or by a
vote of a majority of the outstanding voting securities of Class C.
10. During the existence of this Plan, the Trust shall require the
Adviser and/or the Distributor to provide the Trust, for review by the
Trustees, and the Trustees shall review, at least quarterly, a written
report of the amounts expended in connection with financing any
activity primarily intended to result in the sale of Class C Shares
(making estimates of such costs where necessary or desirable) and the
purposes for which such expenditures were made.
11. This Plan does not require the Adviser or Distributor to perform
any specific type or level of distribution activities or to incur any
specific level of expenses for activities primarily intended to result
in the sale of Class C Shares.
12. Consistent with the limitation of shareholder liability as set
forth in the Trust's Declaration of Trust, any obligation assumed by
Class C pursuant to this Plan and any agreement related to this Plan
shall be limited in all cases to Class C and its assets and shall not
constitute an obligation of any shareholder of the Trust or of any
other class of the Fund, series of the Trust or class of such series.
13. If any provision of this Plan shall be held or made invalid by a
court decision, statute, rule or otherwise, the remainder of the Plan
shall not be affected thereby.
Exhibit m(26)
DISTRIBUTION AND SERVICE PLAN
FIDELITY ADVISOR CYCLICAL INDUSTRIES FUND
CLASS C SHARES
1. This Distribution and Service Plan (the "Plan"), when effective
in accordance with its terms, shall be the written plan contemplated
by Rule 12b-1 under the Investment Company Act of 1940, as amended
(the "Act"), for Class C Shares of Fidelity Advisor Cyclical
industries Fund ("Class C"), a class of shares of Fidelity Advisor
Cyclical Industries Fund (the "Fund"), a series of Fidelity Advisor
Series VII (the "Trust").
2. The Trust has entered into a General Distribution Agreement on
behalf of the Fund with Fidelity Distributors Corporation (the
"Distributor") under which the Distributor uses all reasonable
efforts, consistent with its other business, to secure purchasers of
the Fund's shares of beneficial interest (the "Shares"). Such efforts
may include, but neither are required to include nor are limited to,
the following: (1) formulation and implementation of marketing and
promotional activities, such as mail promotions and television, radio,
newspaper, magazine and other mass media advertising; (2) preparation,
printing and distribution of sales literature; (3) preparation,
printing and distribution of prospectuses of the Fund and reports to
recipients other than existing shareholders of the Fund; (4) obtaining
such information, analyses and reports with respect to marketing and
promotional activities as the Distributor may, from time to time, deem
advisable; (5) making payments to securities dealers and others
engaged in the sale of Shares or in shareholder support services
("Investment Professionals"); and (6) providing training, marketing
and support to Investment Professionals with respect to the sale of
Shares.
3. In accordance with such terms as the Trustees may, from time to
time establish, and in conjunction with its services under the General
Distribution Agreement with respect to Class C Shares, the Distributor
is hereby expressly authorized to make payments to Investment
Professionals in connection with the sale of Class C Shares. Such
payments may be paid as a percentage of the dollar amount of purchases
of Class C Shares attributable to a particular Investment
Professional, or may take such other form as may be approved by the
Trustees.
4. In consideration of the services provided and the expenses
incurred by the Distributor pursuant to the General Distribution
Agreement and paragraphs 2 and 3 hereof, all with respect to Class C
Shares:
(a) Class C shall pay to the Distributor a monthly distribution fee
at the annual rate of 0.75% (or such lesser amount as the Trustees
may, from time to time, determine) of the average daily net assets of
Class C throughout the month. The determination of daily net assets
shall be made at the close of business each day throughout the month
and computed in the manner specified in the Fund's then current
Prospectus for the determination of the net asset value of Class C
Shares, but shall exclude assets attributable to any other class of
Shares of the Fund. The Distributor may, but shall not be required
to, use all or any portion of the distribution fee received pursuant
to the Plan to compensate Investment Professionals who have engaged in
the sale of Class C Shares or in shareholder support services with
respect to Class C Shares pursuant to agreements with the Distributor,
or to pay any of the expenses associated with other activities
authorized under paragraphs 2 and 3 hereof; and
(b) In addition, the Plan recognizes that the Distributor may, in
accordance with such terms as the Trustees may from time to time
establish, receive all or a portion of any sales charges, including
contingent deferred sales charges, which may be imposed upon the sale
or redemption of Class C Shares.
5. Separate from any payments made as described in paragraph 4
hereof, Class C shall also pay to the Distributor a service fee at the
annual rate of 0.25% (or such lesser amount as the Trustees may, from
time to time, determine) of the average daily net assets of Class C
throughout the month. The determination of daily net assets shall be
made at the close of business each day throughout the month and
computed in the manner specified in the Fund's then current Prospectus
for the determination of the net asset value of Class C Shares, but
shall exclude assets attributable to any other class of Shares of the
Fund. In accordance with such terms as the Trustees may from time to
time establish, the Distributor may use all or a portion of such
service fees to compensate Investment Professionals for personal
service and/or the maintenance of shareholder accounts, or for other
services for which "service fees" lawfully may be paid in accordance
with applicable rules and regulations.
6. The Fund presently pays, and will continue to pay, a management
fee to Fidelity Management & Research Company (the "Adviser") pursuant
to a management agreement between the Fund and the Adviser (the
"Management Contract"). It is recognized that the Adviser may use its
management fee revenue, as well as its past profits or its resources
from any other source, to make payment to the Distributor with respect
to any expenses incurred in connection with the distribution of Class
C Shares, including the activities referred to in paragraphs 2 and 3
hereof. To the extent that the payment of management fees by the Fund
to the Adviser should be deemed to be indirect financing of any
activity primarily intended to result in the sale of Class C Shares
within the meaning of Rule 12b-1, then such payment shall be deemed to
be authorized by this Plan.
7. This Plan shall become effective upon approval by a vote of a
majority of the Trustees of the Trust, including a majority of
Trustees who are not "interested persons" of the Trust (as defined in
the Act) and who have no direct or indirect financial interest in the
operation of the Plan or in any agreement related to the Plan (the
"Independent Trustees"), cast in person at a meeting called for the
purpose of voting on this Plan.
8. This Plan shall, unless terminated as hereinafter provided,
remain in effect until April 30, 2000, and from year to year
thereafter; provided, however, that such continuance is subject to
approval annually by a vote of a majority of the Trustees of the
Trust, including a majority of the Independent Trustees, cast in
person at a meeting called for the purpose of voting on this Plan.
This Plan may be amended at any time by the Board of Trustees,
provided that (a) any amendment to increase materially the fees
provided for in paragraphs 4 and 5 hereof shall be effective only upon
approval by a vote of a majority of the outstanding voting securities
of Class C and (b) any material amendment of this Plan shall be
effective only upon approval in the manner provided in the first
sentence of this paragraph 8.
9. This Plan may be terminated at any time, without the payment of
any penalty, by vote of a majority of the Independent Trustees or by a
vote of a majority of the outstanding voting securities of Class C.
10. During the existence of this Plan, the Trust shall require the
Adviser and/or the Distributor to provide the Trust, for review by the
Trustees, and the Trustees shall review, at least quarterly, a written
report of the amounts expended in connection with financing any
activity primarily intended to result in the sale of Class C Shares
(making estimates of such costs where necessary or desirable) and the
purposes for which such expenditures were made.
11. This Plan does not require the Adviser or Distributor to perform
any specific type or level of distribution activities or to incur any
specific level of expenses for activities primarily intended to result
in the sale of Class C Shares.
12. Consistent with the limitation of shareholder liability as set
forth in the Trust's Declaration of Trust, any obligation assumed by
Class C pursuant to this Plan and any agreement related to this Plan
shall be limited in all cases to Class C and its assets and shall not
constitute an obligation of any shareholder of the Trust or of any
other class of the Fund, series of the Trust or class of such series.
13. If any provision of this Plan shall be held or made invalid by a
court decision, statute, rule or otherwise, the remainder of the Plan
shall not be affected thereby.
Exhibit m(27)
DISTRIBUTION AND SERVICE PLAN
FIDELITY ADVISOR FINANCIAL SERVICES FUND
CLASS C SHARES
1. This Distribution and Service Plan (the "Plan"), when effective
in accordance with its terms, shall be the written plan contemplated
by Rule 12b-1 under the Investment Company Act of 1940, as amended
(the "Act"), for Class C Shares of Fidelity Advisor Financial Services
Fund ("Class C"), a class of shares of Fidelity Advisor Financial
Services Fund (the "Fund"), a series of Fidelity Advisor Series VII
(the "Trust").
2. The Trust has entered into a General Distribution Agreement on
behalf of the Fund with Fidelity Distributors Corporation (the
"Distributor") under which the Distributor uses all reasonable
efforts, consistent with its other business, to secure purchasers of
the Fund's shares of beneficial interest (the "Shares"). Such efforts
may include, but neither are required to include nor are limited to,
the following: (1) formulation and implementation of marketing and
promotional activities, such as mail promotions and television, radio,
newspaper, magazine and other mass media advertising; (2) preparation,
printing and distribution of sales literature; (3) preparation,
printing and distribution of prospectuses of the Fund and reports to
recipients other than existing shareholders of the Fund; (4) obtaining
such information, analyses and reports with respect to marketing and
promotional activities as the Distributor may, from time to time, deem
advisable; (5) making payments to securities dealers and others
engaged in the sale of Shares or in shareholder support services
("Investment Professionals"); and (6) providing training, marketing
and support to Investment Professionals with respect to the sale of
Shares.
3. In accordance with such terms as the Trustees may, from time to
time establish, and in conjunction with its services under the General
Distribution Agreement with respect to Class C Shares, the Distributor
is hereby expressly authorized to make payments to Investment
Professionals in connection with the sale of Class C Shares. Such
payments may be paid as a percentage of the dollar amount of purchases
of Class C Shares attributable to a particular Investment
Professional, or may take such other form as may be approved by the
Trustees.
4. In consideration of the services provided and the expenses
incurred by the Distributor pursuant to the General Distribution
Agreement and paragraphs 2 and 3 hereof, all with respect to Class C
Shares:
(a) Class C shall pay to the Distributor a monthly distribution fee
at the annual rate of 0.75% (or such lesser amount as the Trustees
may, from time to time, determine) of the average daily net assets of
Class C throughout the month. The determination of daily net assets
shall be made at the close of business each day throughout the month
and computed in the manner specified in the Fund's then current
Prospectus for the determination of the net asset value of Class C
Shares, but shall exclude assets attributable to any other class of
Shares of the Fund. The Distributor may, but shall not be required
to, use all or any portion of the distribution fee received pursuant
to the Plan to compensate Investment Professionals who have engaged in
the sale of Class C Shares or in shareholder support services with
respect to Class C Shares pursuant to agreements with the Distributor,
or to pay any of the expenses associated with other activities
authorized under paragraphs 2 and 3 hereof; and
(b) In addition, the Plan recognizes that the Distributor may, in
accordance with such terms as the Trustees may from time to time
establish, receive all or a portion of any sales charges, including
contingent deferred sales charges, which may be imposed upon the sale
or redemption of Class C Shares.
5. Separate from any payments made as described in paragraph 4
hereof, Class C shall also pay to the Distributor a service fee at the
annual rate of 0.25% (or such lesser amount as the Trustees may, from
time to time, determine) of the average daily net assets of Class C
throughout the month. The determination of daily net assets shall be
made at the close of business each day throughout the month and
computed in the manner specified in the Fund's then current Prospectus
for the determination of the net asset value of Class C Shares, but
shall exclude assets attributable to any other class of Shares of the
Fund. In accordance with such terms as the Trustees may from time to
time establish, the Distributor may use all or a portion of such
service fees to compensate Investment Professionals for personal
service and/or the maintenance of shareholder accounts, or for other
services for which "service fees" lawfully may be paid in accordance
with applicable rules and regulations.
6. The Fund presently pays, and will continue to pay, a management
fee to Fidelity Management & Research Company (the "Adviser") pursuant
to a management agreement between the Fund and the Adviser (the
"Management Contract"). It is recognized that the Adviser may use its
management fee revenue, as well as its past profits or its resources
from any other source, to make payment to the Distributor with respect
to any expenses incurred in connection with the distribution of Class
C Shares, including the activities referred to in paragraphs 2 and 3
hereof. To the extent that the payment of management fees by the Fund
to the Adviser should be deemed to be indirect financing of any
activity primarily intended to result in the sale of Class C Shares
within the meaning of Rule 12b-1, then such payment shall be deemed to
be authorized by this Plan.
7. This Plan shall become effective upon approval by a vote of a
majority of the Trustees of the Trust, including a majority of
Trustees who are not "interested persons" of the Trust (as defined in
the Act) and who have no direct or indirect financial interest in the
operation of the Plan or in any agreement related to the Plan (the
"Independent Trustees"), cast in person at a meeting called for the
purpose of voting on this Plan.
8. This Plan shall, unless terminated as hereinafter provided,
remain in effect until April 30, 2000, and from year to year
thereafter; provided, however, that such continuance is subject to
approval annually by a vote of a majority of the Trustees of the
Trust, including a majority of the Independent Trustees, cast in
person at a meeting called for the purpose of voting on this Plan.
This Plan may be amended at any time by the Board of Trustees,
provided that (a) any amendment to increase materially the fees
provided for in paragraphs 4 and 5 hereof shall be effective only upon
approval by a vote of a majority of the outstanding voting securities
of Class C and (b) any material amendment of this Plan shall be
effective only upon approval in the manner provided in the first
sentence of this paragraph 8.
9. This Plan may be terminated at any time, without the payment of
any penalty, by vote of a majority of the Independent Trustees or by a
vote of a majority of the outstanding voting securities of Class C.
10. During the existence of this Plan, the Trust shall require the
Adviser and/or the Distributor to provide the Trust, for review by the
Trustees, and the Trustees shall review, at least quarterly, a written
report of the amounts expended in connection with financing any
activity primarily intended to result in the sale of Class C Shares
(making estimates of such costs where necessary or desirable) and the
purposes for which such expenditures were made.
11. This Plan does not require the Adviser or Distributor to perform
any specific type or level of distribution activities or to incur any
specific level of expenses for activities primarily intended to result
in the sale of Class C Shares.
12. Consistent with the limitation of shareholder liability as set
forth in the Trust's Declaration of Trust, any obligation assumed by
Class C pursuant to this Plan and any agreement related to this Plan
shall be limited in all cases to Class C and its assets and shall not
constitute an obligation of any shareholder of the Trust or of any
other class of the Fund, series of the Trust or class of such series.
13. If any provision of this Plan shall be held or made invalid by a
court decision, statute, rule or otherwise, the remainder of the Plan
shall not be affected thereby.
Exhibit m(28)
DISTRIBUTION AND SERVICE PLAN
FIDELITY ADVISOR HEALTH CARE FUND
CLASS C SHARES
1. This Distribution and Service Plan (the "Plan"), when effective
in accordance with its terms, shall be the written plan contemplated
by Rule 12b-1 under the Investment Company Act of 1940, as amended
(the "Act"), for Class C Shares of Fidelity Advisor Health Care Fund
("Class C"), a class of shares of Fidelity Advisor Health Care Fund
(the "Fund"), a series of Fidelity Advisor Series VII (the "Trust").
2. The Trust has entered into a General Distribution Agreement on
behalf of the Fund with Fidelity Distributors Corporation (the
"Distributor") under which the Distributor uses all reasonable
efforts, consistent with its other business, to secure purchasers of
the Fund's shares of beneficial interest (the "Shares"). Such efforts
may include, but neither are required to include nor are limited to,
the following: (1) formulation and implementation of marketing and
promotional activities, such as mail promotions and television, radio,
newspaper, magazine and other mass media advertising; (2) preparation,
printing and distribution of sales literature; (3) preparation,
printing and distribution of prospectuses of the Fund and reports to
recipients other than existing shareholders of the Fund; (4) obtaining
such information, analyses and reports with respect to marketing and
promotional activities as the Distributor may, from time to time, deem
advisable; (5) making payments to securities dealers and others
engaged in the sale of Shares or in shareholder support services
("Investment Professionals"); and (6) providing training, marketing
and support to Investment Professionals with respect to the sale of
Shares.
3. In accordance with such terms as the Trustees may, from time to
time establish, and in conjunction with its services under the General
Distribution Agreement with respect to Class C Shares, the Distributor
is hereby expressly authorized to make payments to Investment
Professionals in connection with the sale of Class C Shares. Such
payments may be paid as a percentage of the dollar amount of purchases
of Class C Shares attributable to a particular Investment
Professional, or may take such other form as may be approved by the
Trustees.
4. In consideration of the services provided and the expenses
incurred by the Distributor pursuant to the General Distribution
Agreement and paragraphs 2 and 3 hereof, all with respect to Class C
Shares:
(a) Class C shall pay to the Distributor a monthly distribution fee
at the annual rate of 0.75% (or such lesser amount as the Trustees
may, from time to time, determine) of the average daily net assets of
Class C throughout the month. The determination of daily net assets
shall be made at the close of business each day throughout the month
and computed in the manner specified in the Fund's then current
Prospectus for the determination of the net asset value of Class C
Shares, but shall exclude assets attributable to any other class of
Shares of the Fund. The Distributor may, but shall not be required
to, use all or any portion of the distribution fee received pursuant
to the Plan to compensate Investment Professionals who have engaged in
the sale of Class C Shares or in shareholder support services with
respect to Class C Shares pursuant to agreements with the Distributor,
or to pay any of the expenses associated with other activities
authorized under paragraphs 2 and 3 hereof; and
(b) In addition, the Plan recognizes that the Distributor may, in
accordance with such terms as the Trustees may from time to time
establish, receive all or a portion of any sales charges, including
contingent deferred sales charges, which may be imposed upon the sale
or redemption of Class C Shares.
5. Separate from any payments made as described in paragraph 4
hereof, Class C shall also pay to the Distributor a service fee at the
annual rate of 0.25% (or such lesser amount as the Trustees may, from
time to time, determine) of the average daily net assets of Class C
throughout the month. The determination of daily net assets shall be
made at the close of business each day throughout the month and
computed in the manner specified in the Fund's then current Prospectus
for the determination of the net asset value of Class C Shares, but
shall exclude assets attributable to any other class of Shares of the
Fund. In accordance with such terms as the Trustees may from time to
time establish, the Distributor may use all or a portion of such
service fees to compensate Investment Professionals for personal
service and/or the maintenance of shareholder accounts, or for other
services for which "service fees" lawfully may be paid in accordance
with applicable rules and regulations.
6. The Fund presently pays, and will continue to pay, a management
fee to Fidelity Management & Research Company (the "Adviser") pursuant
to a management agreement between the Fund and the Adviser (the
"Management Contract"). It is recognized that the Adviser may use its
management fee revenue, as well as its past profits or its resources
from any other source, to make payment to the Distributor with respect
to any expenses incurred in connection with the distribution of Class
C Shares, including the activities referred to in paragraphs 2 and 3
hereof. To the extent that the payment of management fees by the Fund
to the Adviser should be deemed to be indirect financing of any
activity primarily intended to result in the sale of Class C Shares
within the meaning of Rule 12b-1, then such payment shall be deemed to
be authorized by this Plan.
7. This Plan shall become effective upon approval by a vote of a
majority of the Trustees of the Trust, including a majority of
Trustees who are not "interested persons" of the Trust (as defined in
the Act) and who have no direct or indirect financial interest in the
operation of the Plan or in any agreement related to the Plan (the
"Independent Trustees"), cast in person at a meeting called for the
purpose of voting on this Plan.
8. This Plan shall, unless terminated as hereinafter provided,
remain in effect until April 30, 2000, and from year to year
thereafter; provided, however, that such continuance is subject to
approval annually by a vote of a majority of the Trustees of the
Trust, including a majority of the Independent Trustees, cast in
person at a meeting called for the purpose of voting on this Plan.
This Plan may be amended at any time by the Board of Trustees,
provided that (a) any amendment to increase materially the fees
provided for in paragraphs 4 and 5 hereof shall be effective only upon
approval by a vote of a majority of the outstanding voting securities
of Class C and (b) any material amendment of this Plan shall be
effective only upon approval in the manner provided in the first
sentence of this paragraph 8.
9. This Plan may be terminated at any time, without the payment of
any penalty, by vote of a majority of the Independent Trustees or by a
vote of a majority of the outstanding voting securities of Class C.
10. During the existence of this Plan, the Trust shall require the
Adviser and/or the Distributor to provide the Trust, for review by the
Trustees, and the Trustees shall review, at least quarterly, a written
report of the amounts expended in connection with financing any
activity primarily intended to result in the sale of Class C Shares
(making estimates of such costs where necessary or desirable) and the
purposes for which such expenditures were made.
11. This Plan does not require the Adviser or Distributor to perform
any specific type or level of distribution activities or to incur any
specific level of expenses for activities primarily intended to result
in the sale of Class C Shares.
12. Consistent with the limitation of shareholder liability as set
forth in the Trust's Declaration of Trust, any obligation assumed by
Class C pursuant to this Plan and any agreement related to this Plan
shall be limited in all cases to Class C and its assets and shall not
constitute an obligation of any shareholder of the Trust or of any
other class of the Fund, series of the Trust or class of such series.
13. If any provision of this Plan shall be held or made invalid by a
court decision, statute, rule or otherwise, the remainder of the Plan
shall not be affected thereby.
Exhibit m(29)
DISTRIBUTION AND SERVICE PLAN
FIDELITY ADVISOR NATURAL RESOURCES FUND
CLASS C SHARES
1. This Distribution and Service Plan (the "Plan"), when effective
in accordance with its terms, shall be the written plan contemplated
by Rule 12b-1 under the Investment Company Act of 1940, as amended
(the "Act"), for Class C Shares of Fidelity Advisor Natural Resources
Fund ("Class C"), a class of shares of Fidelity Advisor Natural
Resources Fund (the "Fund"), a series of Fidelity Advisor Series VII
(the "Trust").
2. The Trust has entered into a General Distribution Agreement on
behalf of the Fund with Fidelity Distributors Corporation (the
"Distributor") under which the Distributor uses all reasonable
efforts, consistent with its other business, to secure purchasers of
the Fund's shares of beneficial interest (the "Shares"). Such efforts
may include, but neither are required to include nor are limited to,
the following: (1) formulation and implementation of marketing and
promotional activities, such as mail promotions and television, radio,
newspaper, magazine and other mass media advertising; (2) preparation,
printing and distribution of sales literature; (3) preparation,
printing and distribution of prospectuses of the Fund and reports to
recipients other than existing shareholders of the Fund; (4) obtaining
such information, analyses and reports with respect to marketing and
promotional activities as the Distributor may, from time to time, deem
advisable; (5) making payments to securities dealers and others
engaged in the sale of Shares or in shareholder support services
("Investment Professionals"); and (6) providing training, marketing
and support to Investment Professionals with respect to the sale of
Shares.
3. In accordance with such terms as the Trustees may, from time to
time establish, and in conjunction with its services under the General
Distribution Agreement with respect to Class C Shares, the Distributor
is hereby expressly authorized to make payments to Investment
Professionals in connection with the sale of Class C Shares. Such
payments may be paid as a percentage of the dollar amount of purchases
of Class C Shares attributable to a particular Investment
Professional, or may take such other form as may be approved by the
Trustees.
4. In consideration of the services provided and the expenses
incurred by the Distributor pursuant to the General Distribution
Agreement and paragraphs 2 and 3 hereof, all with respect to Class C
Shares:
(a) Class C shall pay to the Distributor a monthly distribution fee
at the annual rate of 0.75% (or such lesser amount as the Trustees
may, from time to time, determine) of the average daily net assets of
Class C throughout the month. The determination of daily net assets
shall be made at the close of business each day throughout the month
and computed in the manner specified in the Fund's then current
Prospectus for the determination of the net asset value of Class C
Shares, but shall exclude assets attributable to any other class of
Shares of the Fund. The Distributor may, but shall not be required
to, use all or any portion of the distribution fee received pursuant
to the Plan to compensate Investment Professionals who have engaged in
the sale of Class C Shares or in shareholder support services with
respect to Class C Shares pursuant to agreements with the Distributor,
or to pay any of the expenses associated with other activities
authorized under paragraphs 2 and 3 hereof; and
(b) In addition, the Plan recognizes that the Distributor may, in
accordance with such terms as the Trustees may from time to time
establish, receive all or a portion of any sales charges, including
contingent deferred sales charges, which may be imposed upon the sale
or redemption of Class C Shares.
5. Separate from any payments made as described in paragraph 4
hereof, Class C shall also pay to the Distributor a service fee at the
annual rate of 0.25% (or such lesser amount as the Trustees may, from
time to time, determine) of the average daily net assets of Class C
throughout the month. The determination of daily net assets shall be
made at the close of business each day throughout the month and
computed in the manner specified in the Fund's then current Prospectus
for the determination of the net asset value of Class C Shares, but
shall exclude assets attributable to any other class of Shares of the
Fund. In accordance with such terms as the Trustees may from time to
time establish, the Distributor may use all or a portion of such
service fees to compensate Investment Professionals for personal
service and/or the maintenance of shareholder accounts, or for other
services for which "service fees" lawfully may be paid in accordance
with applicable rules and regulations.
6. The Fund presently pays, and will continue to pay, a management
fee to Fidelity Management & Research Company (the "Adviser") pursuant
to a management agreement between the Fund and the Adviser (the
"Management Contract"). It is recognized that the Adviser may use its
management fee revenue, as well as its past profits or its resources
from any other source, to make payment to the Distributor with respect
to any expenses incurred in connection with the distribution of Class
C Shares, including the activities referred to in paragraphs 2 and 3
hereof. To the extent that the payment of management fees by the Fund
to the Adviser should be deemed to be indirect financing of any
activity primarily intended to result in the sale of Class C Shares
within the meaning of Rule 12b-1, then such payment shall be deemed to
be authorized by this Plan.
7. This Plan shall become effective upon approval by a vote of a
majority of the Trustees of the Trust, including a majority of
Trustees who are not "interested persons" of the Trust (as defined in
the Act) and who have no direct or indirect financial interest in the
operation of the Plan or in any agreement related to the Plan (the
"Independent Trustees"), cast in person at a meeting called for the
purpose of voting on this Plan.
8. This Plan shall, unless terminated as hereinafter provided,
remain in effect until April 30, 2000, and from year to year
thereafter; provided, however, that such continuance is subject to
approval annually by a vote of a majority of the Trustees of the
Trust, including a majority of the Independent Trustees, cast in
person at a meeting called for the purpose of voting on this Plan.
This Plan may be amended at any time by the Board of Trustees,
provided that (a) any amendment to increase materially the fees
provided for in paragraphs 4 and 5 hereof shall be effective only upon
approval by a vote of a majority of the outstanding voting securities
of Class C and (b) any material amendment of this Plan shall be
effective only upon approval in the manner provided in the first
sentence of this paragraph 8.
9. This Plan may be terminated at any time, without the payment of
any penalty, by vote of a majority of the Independent Trustees or by a
vote of a majority of the outstanding voting securities of Class C.
10. During the existence of this Plan, the Trust shall require the
Adviser and/or the Distributor to provide the Trust, for review by the
Trustees, and the Trustees shall review, at least quarterly, a written
report of the amounts expended in connection with financing any
activity primarily intended to result in the sale of Class C Shares
(making estimates of such costs where necessary or desirable) and the
purposes for which such expenditures were made.
11. This Plan does not require the Adviser or Distributor to perform
any specific type or level of distribution activities or to incur any
specific level of expenses for activities primarily intended to result
in the sale of Class C Shares.
12. Consistent with the limitation of shareholder liability as set
forth in the Trust's Declaration of Trust, any obligation assumed by
Class C pursuant to this Plan and any agreement related to this Plan
shall be limited in all cases to Class C and its assets and shall not
constitute an obligation of any shareholder of the Trust or of any
other class of the Fund, series of the Trust or class of such series.
13. If any provision of this Plan shall be held or made invalid by a
court decision, statute, rule or otherwise, the remainder of the Plan
shall not be affected thereby.
Exhibit m(30)
DISTRIBUTION AND SERVICE PLAN
FIDELITY ADVISOR TECHNOLOGY FUND
CLASS C SHARES
1. This Distribution and Service Plan (the "Plan"), when effective
in accordance with its terms, shall be the written plan contemplated
by Rule 12b-1 under the Investment Company Act of 1940, as amended
(the "Act"), for Class C Shares of Fidelity Advisor Technology Fund
("Class C"), a class of shares of Fidelity Advisor Technology Fund
(the "Fund"), a series of Fidelity Advisor Series VII (the "Trust").
2. The Trust has entered into a General Distribution Agreement on
behalf of the Fund with Fidelity Distributors Corporation (the
"Distributor") under which the Distributor uses all reasonable
efforts, consistent with its other business, to secure purchasers of
the Fund's shares of beneficial interest (the "Shares"). Such efforts
may include, but neither are required to include nor are limited to,
the following: (1) formulation and implementation of marketing and
promotional activities, such as mail promotions and television, radio,
newspaper, magazine and other mass media advertising; (2) preparation,
printing and distribution of sales literature; (3) preparation,
printing and distribution of prospectuses of the Fund and reports to
recipients other than existing shareholders of the Fund; (4) obtaining
such information, analyses and reports with respect to marketing and
promotional activities as the Distributor may, from time to time, deem
advisable; (5) making payments to securities dealers and others
engaged in the sale of Shares or in shareholder support services
("Investment Professionals"); and (6) providing training, marketing
and support to Investment Professionals with respect to the sale of
Shares.
3. In accordance with such terms as the Trustees may, from time to
time establish, and in conjunction with its services under the General
Distribution Agreement with respect to Class C Shares, the Distributor
is hereby expressly authorized to make payments to Investment
Professionals in connection with the sale of Class C Shares. Such
payments may be paid as a percentage of the dollar amount of purchases
of Class C Shares attributable to a particular Investment
Professional, or may take such other form as may be approved by the
Trustees.
4. In consideration of the services provided and the expenses
incurred by the Distributor pursuant to the General Distribution
Agreement and paragraphs 2 and 3 hereof, all with respect to Class C
Shares:
(a) Class C shall pay to the Distributor a monthly distribution fee
at the annual rate of 0.75% (or such lesser amount as the Trustees
may, from time to time, determine) of the average daily net assets of
Class C throughout the month. The determination of daily net assets
shall be made at the close of business each day throughout the month
and computed in the manner specified in the Fund's then current
Prospectus for the determination of the net asset value of Class C
Shares, but shall exclude assets attributable to any other class of
Shares of the Fund. The Distributor may, but shall not be required
to, use all or any portion of the distribution fee received pursuant
to the Plan to compensate Investment Professionals who have engaged in
the sale of Class C Shares or in shareholder support services with
respect to Class C Shares pursuant to agreements with the Distributor,
or to pay any of the expenses associated with other activities
authorized under paragraphs 2 and 3 hereof; and
(b) In addition, the Plan recognizes that the Distributor may, in
accordance with such terms as the Trustees may from time to time
establish, receive all or a portion of any sales charges, including
contingent deferred sales charges, which may be imposed upon the sale
or redemption of Class C Shares.
5. Separate from any payments made as described in paragraph 4
hereof, Class C shall also pay to the Distributor a service fee at the
annual rate of 0.25% (or such lesser amount as the Trustees may, from
time to time, determine) of the average daily net assets of Class C
throughout the month. The determination of daily net assets shall be
made at the close of business each day throughout the month and
computed in the manner specified in the Fund's then current Prospectus
for the determination of the net asset value of Class C Shares, but
shall exclude assets attributable to any other class of Shares of the
Fund. In accordance with such terms as the Trustees may from time to
time establish, the Distributor may use all or a portion of such
service fees to compensate Investment Professionals for personal
service and/or the maintenance of shareholder accounts, or for other
services for which "service fees" lawfully may be paid in accordance
with applicable rules and regulations.
6. The Fund presently pays, and will continue to pay, a management
fee to Fidelity Management & Research Company (the "Adviser") pursuant
to a management agreement between the Fund and the Adviser (the
"Management Contract"). It is recognized that the Adviser may use its
management fee revenue, as well as its past profits or its resources
from any other source, to make payment to the Distributor with respect
to any expenses incurred in connection with the distribution of Class
C Shares, including the activities referred to in paragraphs 2 and 3
hereof. To the extent that the payment of management fees by the Fund
to the Adviser should be deemed to be indirect financing of any
activity primarily intended to result in the sale of Class C Shares
within the meaning of Rule 12b-1, then such payment shall be deemed to
be authorized by this Plan.
7. This Plan shall become effective upon approval by a vote of a
majority of the Trustees of the Trust, including a majority of
Trustees who are not "interested persons" of the Trust (as defined in
the Act) and who have no direct or indirect financial interest in the
operation of the Plan or in any agreement related to the Plan (the
"Independent Trustees"), cast in person at a meeting called for the
purpose of voting on this Plan.
8. This Plan shall, unless terminated as hereinafter provided,
remain in effect until April 30, 2000, and from year to year
thereafter; provided, however, that such continuance is subject to
approval annually by a vote of a majority of the Trustees of the
Trust, including a majority of the Independent Trustees, cast in
person at a meeting called for the purpose of voting on this Plan.
This Plan may be amended at any time by the Board of Trustees,
provided that (a) any amendment to increase materially the fees
provided for in paragraphs 4 and 5 hereof shall be effective only upon
approval by a vote of a majority of the outstanding voting securities
of Class C and (b) any material amendment of this Plan shall be
effective only upon approval in the manner provided in the first
sentence of this paragraph 8.
9. This Plan may be terminated at any time, without the payment of
any penalty, by vote of a majority of the Independent Trustees or by a
vote of a majority of the outstanding voting securities of Class C.
10. During the existence of this Plan, the Trust shall require the
Adviser and/or the Distributor to provide the Trust, for review by the
Trustees, and the Trustees shall review, at least quarterly, a written
report of the amounts expended in connection with financing any
activity primarily intended to result in the sale of Class C Shares
(making estimates of such costs where necessary or desirable) and the
purposes for which such expenditures were made.
11. This Plan does not require the Adviser or Distributor to perform
any specific type or level of distribution activities or to incur any
specific level of expenses for activities primarily intended to result
in the sale of Class C Shares.
12. Consistent with the limitation of shareholder liability as set
forth in the Trust's Declaration of Trust, any obligation assumed by
Class C pursuant to this Plan and any agreement related to this Plan
shall be limited in all cases to Class C and its assets and shall not
constitute an obligation of any shareholder of the Trust or of any
other class of the Fund, series of the Trust or class of such series.
13. If any provision of this Plan shall be held or made invalid by a
court decision, statute, rule or otherwise, the remainder of the Plan
shall not be affected thereby.
Exhibit m(31)
DISTRIBUTION AND SERVICE PLAN
FIDELITY ADVISOR UTILITIES GROWTH FUND
CLASS C SHARES
1. This Distribution and Service Plan (the "Plan"), when effective
in accordance with its terms, shall be the written plan contemplated
by Rule 12b-1 under the Investment Company Act of 1940, as amended
(the "Act"), for Class C Shares of Fidelity Advisor Utilities Growth
Fund ("Class C"), a class of shares of Fidelity Advisor Utilities
Growth Fund (the "Fund"), a series of Fidelity Advisor Series VII (the
"Trust").
2. The Trust has entered into a General Distribution Agreement on
behalf of the Fund with Fidelity Distributors Corporation (the
"Distributor") under which the Distributor uses all reasonable
efforts, consistent with its other business, to secure purchasers of
the Fund's shares of beneficial interest (the "Shares"). Such efforts
may include, but neither are required to include nor are limited to,
the following: (1) formulation and implementation of marketing and
promotional activities, such as mail promotions and television, radio,
newspaper, magazine and other mass media advertising; (2) preparation,
printing and distribution of sales literature; (3) preparation,
printing and distribution of prospectuses of the Fund and reports to
recipients other than existing shareholders of the Fund; (4) obtaining
such information, analyses and reports with respect to marketing and
promotional activities as the Distributor may, from time to time, deem
advisable; (5) making payments to securities dealers and others
engaged in the sale of Shares or in shareholder support services
("Investment Professionals"); and (6) providing training, marketing
and support to Investment Professionals with respect to the sale of
Shares.
3. In accordance with such terms as the Trustees may, from time to
time establish, and in conjunction with its services under the General
Distribution Agreement with respect to Class C Shares, the Distributor
is hereby expressly authorized to make payments to Investment
Professionals in connection with the sale of Class C Shares. Such
payments may be paid as a percentage of the dollar amount of purchases
of Class C Shares attributable to a particular Investment
Professional, or may take such other form as may be approved by the
Trustees.
4. In consideration of the services provided and the expenses
incurred by the Distributor pursuant to the General Distribution
Agreement and paragraphs 2 and 3 hereof, all with respect to Class C
Shares:
(a) Class C shall pay to the Distributor a monthly distribution fee
at the annual rate of 0.75% (or such lesser amount as the Trustees
may, from time to time, determine) of the average daily net assets of
Class C throughout the month. The determination of daily net assets
shall be made at the close of business each day throughout the month
and computed in the manner specified in the Fund's then current
Prospectus for the determination of the net asset value of Class C
Shares, but shall exclude assets attributable to any other class of
Shares of the Fund. The Distributor may, but shall not be required
to, use all or any portion of the distribution fee received pursuant
to the Plan to compensate Investment Professionals who have engaged in
the sale of Class C Shares or in shareholder support services with
respect to Class C Shares pursuant to agreements with the Distributor,
or to pay any of the expenses associated with other activities
authorized under paragraphs 2 and 3 hereof; and
(b) In addition, the Plan recognizes that the Distributor may, in
accordance with such terms as the Trustees may from time to time
establish, receive all or a portion of any sales charges, including
contingent deferred sales charges, which may be imposed upon the sale
or redemption of Class C Shares.
5. Separate from any payments made as described in paragraph 4
hereof, Class C shall also pay to the Distributor a service fee at the
annual rate of 0.25% (or such lesser amount as the Trustees may, from
time to time, determine) of the average daily net assets of Class C
throughout the month. The determination of daily net assets shall be
made at the close of business each day throughout the month and
computed in the manner specified in the Fund's then current Prospectus
for the determination of the net asset value of Class C Shares, but
shall exclude assets attributable to any other class of Shares of the
Fund. In accordance with such terms as the Trustees may from time to
time establish, the Distributor may use all or a portion of such
service fees to compensate Investment Professionals for personal
service and/or the maintenance of shareholder accounts, or for other
services for which "service fees" lawfully may be paid in accordance
with applicable rules and regulations.
6. The Fund presently pays, and will continue to pay, a management
fee to Fidelity Management & Research Company (the "Adviser") pursuant
to a management agreement between the Fund and the Adviser (the
"Management Contract"). It is recognized that the Adviser may use its
management fee revenue, as well as its past profits or its resources
from any other source, to make payment to the Distributor with respect
to any expenses incurred in connection with the distribution of Class
C Shares, including the activities referred to in paragraphs 2 and 3
hereof. To the extent that the payment of management fees by the Fund
to the Adviser should be deemed to be indirect financing of any
activity primarily intended to result in the sale of Class C Shares
within the meaning of Rule 12b-1, then such payment shall be deemed to
be authorized by this Plan.
7. This Plan shall become effective upon approval by a vote of a
majority of the Trustees of the Trust, including a majority of
Trustees who are not "interested persons" of the Trust (as defined in
the Act) and who have no direct or indirect financial interest in the
operation of the Plan or in any agreement related to the Plan (the
"Independent Trustees"), cast in person at a meeting called for the
purpose of voting on this Plan.
8. This Plan shall, unless terminated as hereinafter provided,
remain in effect until April 30, 2000, and from year to year
thereafter; provided, however, that such continuance is subject to
approval annually by a vote of a majority of the Trustees of the
Trust, including a majority of the Independent Trustees, cast in
person at a meeting called for the purpose of voting on this Plan.
This Plan may be amended at any time by the Board of Trustees,
provided that (a) any amendment to increase materially the fees
provided for in paragraphs 4 and 5 hereof shall be effective only upon
approval by a vote of a majority of the outstanding voting securities
of Class C and (b) any material amendment of this Plan shall be
effective only upon approval in the manner provided in the first
sentence of this paragraph 8.
9. This Plan may be terminated at any time, without the payment of
any penalty, by vote of a majority of the Independent Trustees or by a
vote of a majority of the outstanding voting securities of Class C.
10. During the existence of this Plan, the Trust shall require the
Adviser and/or the Distributor to provide the Trust, for review by the
Trustees, and the Trustees shall review, at least quarterly, a written
report of the amounts expended in connection with financing any
activity primarily intended to result in the sale of Class C Shares
(making estimates of such costs where necessary or desirable) and the
purposes for which such expenditures were made.
11. This Plan does not require the Adviser or Distributor to perform
any specific type or level of distribution activities or to incur any
specific level of expenses for activities primarily intended to result
in the sale of Class C Shares.
12. Consistent with the limitation of shareholder liability as set
forth in the Trust's Declaration of Trust, any obligation assumed by
Class C pursuant to this Plan and any agreement related to this Plan
shall be limited in all cases to Class C and its assets and shall not
constitute an obligation of any shareholder of the Trust or of any
other class of the Fund, series of the Trust or class of such series.
13. If any provision of this Plan shall be held or made invalid by a
court decision, statute, rule or otherwise, the remainder of the Plan
shall not be affected thereby.
Exhibit m(32)
DISTRIBUTION AND SERVICE PLAN
FIDELITY ADVISOR NATURAL RESOURCES FUND
CLASS A SHARES
1. This Distribution and Service Plan (the "Plan"), when effective in
accordance with its terms, shall be the written plan contemplated by
Securities and Exchange Commission Rule 12b-1 under the Investment
Company Act of 1940, as amended (the "Act") for the Class A shares of
Fidelity Advisor Natural Resources Fund ("Class A") a class of shares
of Fidelity Advisor Natural Resources Fund, (the "Fund"), a portfolio
of Fidelity Advisor Series VII (the "Trust").
2. The Trust has entered into a General Distribution Agreement on
behalf of the Fund with Fidelity Distributors Corporation (the
"Distributor"), under which the Distributor uses all reasonable
efforts, consistent with its other business, to secure purchasers of
the Fund's shares of beneficial interest (the "Shares"). Such efforts
may include, but neither are required to include nor are limited to,
the following: (1) formulation and implementation of marketing and
promotional activities, such as mail promotions and television, radio,
newspaper, magazine and other mass media advertising; (2) preparation,
printing and distribution of sales literature; (3) preparation,
printing and distribution of prospectuses of the Fund and reports to
recipients other than existing shareholders of the Fund; (4) obtaining
such information, analyses and reports with respect to marketing and
promotional activities as the Distributor may, from time to time, deem
advisable; (5) making payments to securities dealers and others
engaged in the sale of Shares or who engage in shareholder support
services; and (6) providing training, marketing and support to such
dealers and others with respect to the sale of Shares.
3. In consideration for the services provided and the expenses
incurred by the Distributor pursuant to the General Distribution
Agreement and paragraph 2 hereof, all with respect to Class A Shares,
Class A shall pay to the Distributor a fee at the annual rate of 0.75%
(or such lesser amount as the Trustees may, from time to time,
determine) of the average daily net assets of Class A throughout the
month. The determination of daily net assets shall be made at the
close of business each day throughout the month and computed in the
manner specified in the Fund's then current Prospectus for the
determination of the net asset value of the Fund's Class A Shares.
The Distributor may use all or any portion of the fee received
pursuant to this Plan to compensate securities dealers or other
persons who have engaged in the sale of Class A Shares or in
shareholder support services pursuant to agreements with the
Distributor, or to pay any of the expenses associated with other
activities authorized under paragraph 2 hereof.
4. The Fund presently pays, and will continue to pay, a management
fee to Fidelity Management & Research Company (the "Adviser") pursuant
to a management agreement between the Fund and the Adviser (the
"Management Contract"). It is recognized that the Adviser may use its
management fee revenue, as well as its past profits or its resources
from any other source, to make payment to the Distributor with respect
to any expenses incurred in connection with the distribution of Class
A Shares, including the activities referred to in paragraph 2 hereof.
To the extent that the payment of management fees by the Fund to the
Adviser should be deemed to be indirect financing of any activity
primarily intended to result in the sale of Class A Shares within the
meaning of Rule 12b-1, then such payment shall be deemed to be
authorized by this Plan.
5. This Plan shall become effective upon the first business day of
the month following approval by a vote of at least a "majority of the
outstanding voting securities" (as defined in the Act) of Class A,
this Plan having been approved by a vote of a majority of the Trustees
of the Trust, including a majority of Trustees who are not "interested
persons" of the Trust (as defined in the Act) and who have no direct
or indirect financial interest in the operation of this Plan or in any
agreement related to the Plan (the "Independent Trustees"), cast in
person at a meeting called for the purpose of voting on this Plan.
6. This Plan shall, unless terminated as hereinafter provided, remain
in effect until April 30, 2000, and from year to year thereafter;
provided, however, that such continuance is subject to approval
annually by a vote of a majority of the Trustees of the Trust,
including a majority of the Independent Trustees, cast in person at a
meeting called for the purpose of voting on this Plan. This Plan may
be amended at any time by the Board of Trustees, provided that (a) any
amendment to increase materially the fee provided for in paragraph 3
hereof shall be effective only upon approval by a vote of a majority
of the outstanding voting securities of Class A and (b) any material
amendment of this Plan shall be effective only upon approval in the
manner provided in the first sentence of this paragraph 6.
7. This Plan may be terminated at any time, without the payment of
any penalty, by vote of a majority of the Independent Trustees or by a
vote of a majority of the outstanding voting securities of Class A.
8. During the existence of this Plan, the Trust shall require the
Adviser and/or the Distributor to provide the Trust, for review by the
Trustees, and the Trustees shall review, at least quarterly, a written
report of the amounts expended in connection with financing any
activity primarily intended to result in the sale of shares of Class A
(making estimates of such costs where necessary or desirable) and the
purposes for which such expenditures were made.
9. This Plan does not require the Adviser or Distributor to perform
any specific type or level of distribution activities or to incur any
specific level of expenses for activities primarily intended to result
in the sale of Class A Shares.
10. Consistent with the limitation of shareholder liability as set
forth in the Trust's Declaration of Trust, any obligation assumed by
Class A pursuant to this Plan and any agreement related to this Plan
shall be limited in all cases to Class A and its assets and shall not
constitute an obligation of any shareholder of the Trust or of any
other class of the Fund, series of the Trust or class of such series.
11. If any provision of the Plan shall be held or made invalid by a
court decision, statute, rule or otherwise, the remainder of the Plan
shall not be affected thereby.
Exhibit m(33)
DISTRIBUTION AND SERVICE PLAN
FIDELITY ADVISOR NATURAL RESOURCES FUND: CLASS T SHARES
1. This Distribution and Service Plan (the "Plan"), when effective in
accordance with its terms, shall be the written plan contemplated by
Securities and Exchange Commission Rule 12b-1 under the Investment
Company Act of 1940, as amended (the "Act") for the Class T shares of
Fidelity Advisor Natural Resources Fund - Class T ("Class T"), a class
of shares of Fidelity Advisor Natural Resources Fund (the "Fund"), a
portfolio of Fidelity Advisor Series VII (the "Trust").
2. The Trust has entered into a General Distribution Agreement on
behalf of the Fund with Fidelity Distributors Corporation (the
"Distributor"), under which the Distributor uses all reasonable
efforts, consistent with its other business, to secure purchasers of
the Fund's shares of beneficial interest (the "Shares"). Such efforts
may include, but neither are required to include nor are limited to,
the following: (1) formulation and implementation of marketing and
promotional activities, such as mail promotions and television, radio,
newspaper, magazine and other mass media advertising; (2) preparation,
printing and distribution of sales literature; (3) preparation,
printing and distribution of prospectuses of the Fund and reports to
recipients other than existing shareholders of the Fund; (4) obtaining
such information, analyses and reports with respect to marketing and
promotional activities as the Distributor may, from time to time, deem
advisable; (5) making payments to securities dealers and others
engaged in the sale of Shares or who engage in shareholder support
services; and (6) providing training, marketing and support to such
dealers and others with respect to the sale of Shares.
3. In consideration for the services provided and the expenses
incurred by the Distributor pursuant to the General Distribution
Agreement, the Fund shall pay to the Distributor a fee at the annual
rate of ___% (or such lesser amount as the Trustees may, from time
to time, determine) of its average daily net assets throughout the
month. The determination of daily net assets shall be made at the
close of business each day throughout the month and computed in the
manner specified in the Fund's then current Prospectus for the
determination of the net asset value of the Fund's shares. The
Distributor may use all or any portion of the fee received pursuant to
the Plan to compensate securities dealers or other persons who have
engaged in the sale of Shares or in shareholder support services
pursuant to agreements with the Distributor, or to pay any of the
expenses associated with other activities authorized under paragraph 2
hereof.
4. The Fund presently pays, and will continue to pay, a management
fee to Fidelity Management & Research Company (the "Adviser") pursuant
to a management agreement between the Fund and the Adviser (the
"Management Contract"). It is recognized that the Adviser may use its
management fee revenue, as well as its past profits or its resources
from any other source, to make payments to the Distributor with
respect to any expenses incurred in connection with the distribution
of Shares, including the activities referred to in paragraphs 2 and 3
hereof. To the extent that the payment of management fees by the Fund
to the Adviser should be deemed to be indirect financing of any
activity primarily intended to result in the sale of Shares within the
meaning of Rule 12b-1, then such payment shall be deemed to be
authorized by this Plan.
5. This Plan shall become effective upon the first business day of
the month following approval by a vote of at least a "majority of the
outstanding voting securities of the Fund" (as defined in the Act),
this Plan having been approved by a vote of a majority of the Trustees
of the Trust, including a majority of Trustees who are not "interested
persons" of the Trust (as defined in the Act) and who have no direct
or indirect financial interest in the operation of this Plan or in any
agreement related to the Plan (the "Independent Trustees"), cast in
person at a meeting called for the purpose of voting on this Plan.
6. This Plan shall, unless terminated as hereinafter provided, remain
in effect until April 30, 2000, and from year to year thereafter;
provided, however, that such continuance is subject to approval
annually by a vote of a majority of the Trustees of the Trust,
including a majority of the Independent Trustees, cast in person at a
meeting called for the purpose of voting on this Plan. This Plan may
be amended at any time by the Board of Trustees, provided that (a) any
amendment to increase materially the fee provided for in paragraph 3
hereof shall be effective only upon approval by a vote of a majority
of the outstanding voting securities of the Fund, and (b) any material
amendment of this Plan shall be effective only upon approval in the
manner provided in the first sentence of this paragraph 6.
7. This Plan may be terminated at any time, without the payment of
any penalty, by vote of a majority of the Independent Trustees or by a
vote of a majority of the outstanding voting securities of the Fund.
8. During the existence of this Plan, the Trust shall require the
Adviser and/or the Distributor to provide the Trust, for review by the
Trust's Trustees, and the Trustees shall review, at least quarterly, a
written report of the amounts expended in connection with financing
any activity primarily intended to result in the sale of shares of the
Fund (making estimates of such costs where necessary or desirable) and
the purposes for which such expenditures were made.
9. This Plan does not require the Adviser or Distributor to perform
any specific type or level of distribution activities or to incur any
specific level of expenses for activities primarily intended to result
in the sale of shares of the Fund.
10. Consistent with the limitation of shareholder liability as set
forth in the Trust's Declaration of Trust, any obligation assumed by
the Fund pursuant to this Plan and any agreement related to this Plan
shall be limited in all cases to the Fund and its assets and shall not
constitute an obligation of any shareholder of the Trust or of any
other series of shares of the Trust.
11. If any provision of the Plan shall be held or made invalid by a
court decision, statute, rule or otherwise, the remainder of the Plan
shall not be affected thereby.
Exhibit m(34)
DISTRIBUTION AND SERVICE PLAN
FIDELITY ADVISOR NATURAL RESOURCES FUND
CLASS B SHARES
1. This Distribution and Service Plan (the "Plan"), when effective
in accordance with its terms, shall be the written plan contemplated
by Rule 12b-1 under the Investment Company Act of 1940, as amended
(the "Act") for Class B Shares of Fidelity Advisor Natural Resources
Fund ("Class B"), a class of shares of Fidelity Advisor Natural
Resources Fund (the "Fund"), a series of Fidelity Advisor Series VII
(the "Trust").
2. The Trust has entered into a General Distribution Agreement on
behalf of the Fund with Fidelity Distributors Corporation (the
"Distributor") under which the Distributor uses all reasonable
efforts, consistent with its other business, to secure purchasers of
the Fund's shares of beneficial interest (the "Shares"). Such efforts
may include, but neither are required to include nor are limited to,
the following: (1) formulation and implementation of marketing and
promotional activities, such as mail promotions and television, radio,
newspaper, magazine and other mass media advertising; (2) preparation,
printing and distribution of sales literature; (3) preparation,
printing and distribution of prospectuses of the Fund and reports to
recipients other than existing shareholders of the Fund; (4) obtaining
such information, analyses and reports with respect to marketing and
promotional activities as the Distributor may, from time to time, deem
advisable; (5) making payments to securities dealers and others
engaged in the sale of Shares or in shareholder support services
("Investment Professionals"); and (6) providing training, marketing
and support to Investment Professionals with respect to the sale of
Shares.
3. In accordance with such terms as the Trustees may, from time to
time establish, and in conjunction with its services under the General
Distribution Agreement with respect to Class B Shares, the Distributor
is hereby expressly authorized to make payments to Investment
Professionals in connection with the sale of Class B Shares. Such
payments may be paid as a percentage of the dollar amount of purchases
of Class B Shares attributable to a particular Investment
Professional, or may take such other form as may be approved by the
Trustees.
4. In consideration of the services provided and the expenses
incurred by the Distributor pursuant to the General Distribution
Agreement and paragraphs 2 and 3 hereof, all with respect to Class B
Shares:
(a) Class B shall pay to the Distributor a monthly distribution fee
at the annual rate of 0.75% (or such lesser amount as the Trustees
may, from time to time, determine) of the average daily net assets of
Class B throughout the month. The determination of daily net assets
shall be made at the close of business each day throughout the month
and computed in the manner specified in the Fund's then current
Prospectus for the determination of the net asset value of Class B
Shares, but shall exclude assets attributable to any other class of
Shares of the Fund. The Distributor may, but shall not be required
to, use all or any portion of the distribution fee received pursuant
to the Plan to compensate Investment Professionals who have engaged in
the sale of Class B Shares or in shareholder support services with
respect to Class B Shares pursuant to agreements with the Distributor,
or to pay any of the expenses associated with other activities
authorized under paragraphs 2 and 3 hereof; and
(b) In addition, the Plan recognizes that the Distributor may, in
accordance with such terms as the Trustees may from time to time
establish, receive all or a portion of any sales charges, including
contingent deferred sales charges, which may be imposed upon the sale
or redemption of Class B Shares.
5. Separate from any payments made as described in paragraph 4
hereof, Class B shall also pay to the Distributor a service fee at the
annual rate of 0.25% (or such lesser amount as the Trustees may, from
time to time, determine) of the average daily net assets of Class B
throughout the month. The determination of daily net assets shall be
made at the close of business each day throughout the month and
computed in the manner specified in the Fund's then current Prospectus
for the determination of the net asset value of Class B Shares, but
shall exclude assets attributable to any other class of Shares of the
Fund. In accordance with such terms as the Trustees may from time to
time establish, the Distributor may use all or a portion of such
service fees to compensate Investment Professionals for personal
service and/or the maintenance of shareholder accounts, or for other
services for which "service fees" lawfully may be paid in accordance
with applicable rules and regulations.
6. The Fund presently pays, and will continue to pay, a management
fee to Fidelity Management & Research Company (the "Adviser") pursuant
to a management agreement between the Fund and the Adviser (the
"Management Contract"). It is recognized that the Adviser may use its
management fee revenue, as well as its past profits or its resources
from any other source, to make payments to the Distributor with
respect to any expenses incurred in connection with the distribution
of Class B Shares, including the activities referred to in paragraphs
2 and 3 hereof. To the extent that the payment of management fees by
the Fund to the Adviser should be deemed to be indirect financing of
any activity primarily intended to result in the sale of Class B
Shares within the meaning of Rule 12b-1, then such payment shall be
deemed to be authorized by this Plan.
7. This Plan shall become effective upon the first business day of
the month following approval by a vote of at least a "majority of the
outstanding voting securities" (as defined in the Act) of Class B,
this Plan having been approved by a vote of a majority of the Trustees
of the Trust, including a majority of Trustees who are not "interested
persons" of the Trust (as defined in the Act) and who have no direct
or indirect financial interest in the operation of the Plan or in any
agreement related to the Plan (the "Independent Trustees"), cast in
person at a meeting called for the purpose of voting on this Plan.
8. This Plan shall, unless terminated as hereinafter provided,
remain in effect until April 30, 2000, and from year to year
thereafter; provided, however, that such continuance is subject to
approval annually by a vote of a majority of the Trustees of the
Trust, including a majority of the Independent Trustees, cast in
person at a meeting called for the purpose of voting on this Plan.
This Plan may be amended at any time by the Board of Trustees,
provided that (a) any amendment to increase materially the fees
provided for in paragraphs 4 and 5 hereof shall be effective only upon
approval by a vote of a majority of the outstanding voting securities
of Class B and (b) any material amendment of this Plan shall be
effective only upon approval in the manner provided in the first
sentence of this paragraph 8.
9. This Plan may be terminated at any time, without the payment of
any penalty, by vote of a majority of the Independent Trustees or by a
vote of a majority of the outstanding voting securities of Class B.
10. During the existence of this Plan, the Trust shall require the
Adviser and/or the Distributor to provide the Trust, for review by the
Trustees, and the Trustees shall review, at least quarterly, a written
report of the amounts expended in connection with financing any
activity primarily intended to result in the sale of Class B Shares
(making estimates of such costs where necessary or desirable) and the
purposes for which such expenditures were made.
11. This Plan does not require the Adviser or Distributor to perform
any specific type or level of distribution activities or to incur any
specific level of expenses for activities primarily intended to result
in the sale of Class B Shares.
12. Consistent with the limitation of shareholder liability as set
forth in the Trust's Declaration of Trust, any obligation assumed by
Class B pursuant to this Plan and any agreement related to this Plan
shall be limited in all cases to Class B and its assets and shall not
constitute an obligation of any shareholder of the Trust or of any
other class of the Fund, series of the Trust or class of such series.
13. If any provision of this Plan shall be held or made invalid by a
court decision, statute, rule or otherwise, the remainder of the Plan
shall not be affected thereby.
Exhibit m(35)
DISTRIBUTION AND SERVICE PLAN
FIDELITY ADVISOR NATURAL RESOURCES FUND
INSTITUTIONAL CLASS SHARES
1. This Distribution and Service Plan (the "Plan"), when effective in
accordance with its terms, shall be the written plan contemplated by
Rule 12b-1 under the Investment Company Act of 1940, as amended (the
"Act") for Institutional Class Shares of Fidelity Advisor Natural
Resources Fund ("Institutional Class"), a class of shares of Fidelity
Advisor Natural Resources Fund (the "Fund"), a series of Fidelity
Advisor Series VII (the "Trust").
2. The Trust has entered into a General Distribution Agreement on
behalf of the Fund with Fidelity Distributors Corporation (the
"Distributor") under which the Distributor uses all reasonable
efforts, consistent with its other business, to secure purchasers for
the Fund's shares of beneficial interest ("Shares"). Under the
agreement, the Distributor pays the expenses of printing and
distributing any prospectuses, reports and other literature used by
the Distributor, advertising, and other promotional activities in
connection with the offering of Shares of the Fund for sale to the
public. It is recognized that Fidelity Management & Research Company
(the "Adviser") may use its management fee revenues, as well as past
profits or its resources from any other source, to make payments to
the Distributor with respect to any expenses incurred in connection
with the distribution of Institutional Class Shares, including the
activities referenced to above.
3. The Adviser directly, or through the Distributor, may, subject to
the approval of the Trustees, make payments to securities dealers and
other third parties who engage in the sale of Shares or who render
shareholder support services, including but not limited to providing
office space, equipment and telephone facilities, answering routine
inquiries regarding the Fund, processing shareholder transactions and
providing such other shareholder services as the Trust may reasonably
request.
4. The Fund will not make separate payments as a result of this Plan
to the Adviser, Distributor or any other party, it being recognized
that the Fund presently pays, and will continue to pay, a management
fee to the Adviser. To the extent that any payments made by the Fund
to the Adviser, including payment of management fees, should be deemed
to be indirect financing of any activity primarily intended to result
in the sale of Shares of the Fund within the context of Rule 12b-1
under the Act, then such payments shall be deemed to be authorized by
this Plan.
5. This Plan shall become effective upon the first business day of
the month following approval by a vote of at least a "majority of the
outstanding voting securities of the Fund" (as defined in the Act),
the plan having been approved by a vote of a majority of the Trustees
of the Trust, including a majority of Trustees who are not "interested
persons" of the Trust (as defined in the Act) and who have no direct
or indirect financial interest in the operation of this Plan or in any
agreements related to this Plan (the "Independent Trustees"), cast in
person at a meeting called for the purpose of voting on this Plan.
6. This Plan shall, unless terminated as hereinafter provided, remain
in effect from the date specified above until April 30, 2000, and from
year to year thereafter, provided, however, that such continuance is
subject to approval annually by a vote of a majority of the Trustees
of the Trust, including a majority of the Independent Trustees, cast
in person at a meeting called for the purpose of voting on this Plan.
This Plan may be amended at any time by the Board of Trustees,
provided that (a) any amendment to authorize direct payments by the
Fund to finance any activity primarily intended to result in the sale
of Shares of the Fund, or to increase materially the amount spent by
the Fund for distribution, shall be effective only upon approval by a
vote of a majority of the outstanding voting securities of the Fund
and (b) any material amendments of this Plan shall be effective only
upon approval in the manner provided in the first sentence in this
paragraph.
7. This Plan may be terminated at any time, without the payment of
any penalty, by vote of a majority of the Independent Trustees or by a
vote of a majority of the outstanding voting securities of the Fund.
8. During the existence of this Plan, the Trust shall require the
Adviser and/or Distributor to provide the Trust, for review by the
Trust's Board of Trustees, and the Trustees shall review, at least
quarterly, a written report of the amounts expended in connection with
financing any activity primarily intended to result in the sale of
Shares of the Fund (making estimates of such costs where necessary or
desirable) and the purposes for which such expenditures were made.
9. This Plan does not require the Adviser or Distributor to perform
any specific type or level of distribution activities or to incur any
specific level of expenses for activities primarily intended to result
in the sale of Shares of the Fund.
10. Consistent with the limitation of shareholder liability as set
forth in the Trust's Declaration of Trust, any obligation assumed by
Institutional Class pursuant to this Plan and any agreement related to
this Plan shall be limited in all cases to Institutional Class and its
assets and shall not constitute an obligation of any shareholder of
the Trust or of any other class of the Fund, series of the Trust or
class of such series.
11. If any provision of this Plan shall be held or made invalid by a
court decision, statute, rule or otherwise, the remainder of the Plan
shall not be affected thereby.
Exhibit
SCHEDULE I DATED AUGUST 30, 1999 TO MULTIPLE CLASS OF SHARES PLAN FOR
FIDELITY ADVISOR FUNDS DATED MARCH 19, 1998
<TABLE>
<CAPTION>
<S> <C> <C> <C>
TRUST/FUND/CLASS SALES CHARGE DISTRIBUTION FEE (AS A SHAREHOLDER SERVICE FEE
PERCENTAGE OF AVERAGE NET (AS A PERCENTAGE OF AVERAGE
ASSETS) NET ASSETS)
Advisor Series II
High Income Fund:
Class A* front-end 0.15 none
Class T* front-end 0.25 none
Class B contingent deferred 0.65 0.25
Class C contingent deferred 0.75 0.25
Institutional Class none none none
Advisor Series VIII
Emerging Asia Fund:
Class A* front-end 0.25 none
Class T* front-end 0.50 none
Class B contingent deferred 0.75 0.25
Class C contingent deferred 0.75 0.25
Institutional Class none none none
Advisor Series VIII
Overseas Fund:
Class A* front-end 0.25 none
Class T* front-end 0.50 none
Class B contingent deferred 0.75 0.25
Class C contingent deferred 0.75 0.25
Institutional Class none none none
Advisor Series I
Equity Growth Fund:
Class A* front-end 0.25 none
Class T* front-end 0.50 none
Class B contingent deferred 0.75 0.25
Class C contingent deferred 0.75 0.25
Institutional Class none none none
Advisor Series VII
Natural Resources Fund:
Class A* front-end 0.25 none
Class T* front-end 0.50 none
Class B contingent deferred 0.75 0.25
Class C contingent deferred 0.75 0.25
Institutional Class none none none
Advisor Series I
Growth Opportunities Fund:
Class A* front-end 0.25 none
Class T* front-end 0.50 none
Class B contingent deferred 0.75 0.25
Class C contingent deferred 0.75 0.25
Institutional Class none none none
Advisor Series I
Equity Income Fund:
Class A* front-end 0.25 none
Class T* front-end 0.50 none
Class B contingent deferred 0.75 0.25
Class C contingent deferred 0.75 0.25
Institutional Class none none none
Advisor Series I
Balanced Fund:
Class A* front-end 0.25 none
Class T* front-end 0.50 none
Class B contingent deferred 0.75 0.25
Class C contingent deferred 0.75 0.25
Institutional Class none none none
Advisor Series I
Large Cap Fund:
Class A* front-end 0.25 none
Class T* front-end 0.50 none
Class B contingent deferred 0.75 0.25
Class C contingent deferred 0.75 0.25
Institutional Class none none none
Advisor Series I
Mid Cap Fund:
Class A* front-end 0.25 none
Class T* front-end 0.50 none
Class B contingent deferred 0.75 0.25
Class C contingent deferred 0.75 0.25
Institutional Class none none none
Advisor Series I
Small Cap Fund:
Class A* front-end 0.25 none
Class T* front-end 0.50 none
Class B contingent deferred 0.75 0.25
Class C contingent deferred 0.75 0.25
Institutional Class none none none
Advisor Series I
Value Strategies Fund:
Initial Class front-end none none
Class A* front-end 0.25 none
Class T* front-end 0.50 none
Class B contingent deferred 0.75 0.25
Institutional Class none none none
Advisor Series VII
Consumer Industries Fund:
Class A* front-end 0.25 none
Class T* front-end 0.50 none
Class B contingent deferred 0.75 0.25
Class C contingent deferred 0.75 0.25
Institutional Class none none none
Advisor Series VII
Cyclical Industries Fund:
Class A* front-end 0.25 none
Class T* front-end 0.50 none
Class B contingent deferred 0.75 0.25
Class C contingent deferred 0.75 0.25
Institutional Class none none none
Advisor Series VII
Financial Services Fund:
Class A* front-end 0.25 none
Class T* front-end 0.50 none
Class B contingent deferred 0.75 0.25
Class C contingent deferred 0.75 0.25
Institutional Class none none none
Advisor Series VII
Health Care Fund:
Class A* front-end 0.25 none
Class T* front-end 0.50 none
Class B contingent deferred 0.75 0.25
Class C contingent deferred 0.75 0.25
Institutional Class none none none
Advisor Series VII
Technology Fund:
Class A* front-end 0.25 none
Class T* front-end 0.50 none
Class B contingent deferred 0.75 0.25
Class C contingent deferred 0.75 0.25
Institutional Class none none none
Advisor Series VII
Utilities Growth Fund:
Class A* front-end 0.25 none
Class T* front-end 0.50 none
Class B contingent deferred 0.75 0.25
Class C contingent deferred 0.75 0.25
Institutional Class none none none
Advisor Series I
TechnoQuant Growth Fund:
Class A* front-end 0.25 none
Class T* front-end 0.50 none
Class B contingent deferred 0.75 0.25
Class C contingent deferred 0.75 0.25
Institutional Class none none none
Advisor Series I
Growth & Income Fund:
Class A* front-end 0.25 none
Class T* front-end 0.50 none
Class B contingent deferred 0.75 0.25
Class C contingent deferred 0.75 0.25
Institutional Class none none none
Advisor Series VIII
International Capital
Appreciation Fund:
Class A* front-end 0.25 none
Class T* front-end 0.50 none
Class B contingent deferred 0.75 0.25
Class C contingent deferred 0.75 0.25
Institutional Class none none none
Advisor Series I
Dividend Growth Fund:
Class A* front-end 0.25 none
Class T* front-end 0.50 none
Class B contingent deferred 0.75 0.25
Class C contingent deferred 0.75 0.25
Institutional Class none none none
Advisor Series I
Retirement Growth Fund:
Class A* front-end 0.25 none
Class T* front-end 0.50 none
Class B contingent deferred 0.75 0.25
Class C contingent deferred 0.75 0.25
Institutional Class none none none
Advisor Series I
Asset Allocation Fund:
Class A* front-end 0.25 none
Class T* front-end 0.50 none
Class B contingent deferred 0.75 0.25
Class C contingent deferred 0.75 0.25
Institutional Class none none none
Advisor Series VIII
Diversified International
Fund:
Class A* front-end 0.25 none
Class T* front-end 0.50 none
Class B contingent deferred 0.75 0.25
Class C contingent deferred 0.75 0.25
Institutional Class none none none
Advisor Series VIII
Europe Capital
Appreciation Fund:
Class A* front-end 0.25 none
Class T* front-end 0.50 none
Class B contingent deferred 0.75 0.25
Class C contingent deferred 0.75 0.25
Institutional Class none none none
Advisor Series VIII
Japan Fund:
Class A* front-end 0.25 none
Class T* front-end 0.50 none
Class B contingent deferred 0.75 0.25
Class C contingent deferred 0.75 0.25
Institutional Class none none none
Advisor Series VIII
Latin America Fund:
Class A* front-end 0.25 none
Class T* front-end 0.50 none
Class B contingent deferred 0.75 0.25
Class C contingent deferred 0.75 0.25
Institutional Class none none none
Advisor Series VIII
Global Equity Fund:
Class A* front-end 0.25 none
Class T* front-end 0.50 none
Class B contingent deferred 0.75 0.25
Class C contingent deferred 0.75 0.25
Institutional Class none none none
Advisor Series II
Intermediate Bond Fund:
Class A* front-end 0.15 none
Class T* front-end 0.25 none
Class B contingent deferred 0.65 0.25
Class C contingent deferred 0.75 0.25
Institutional Class none none none
Advisor Series II
Intermediate Municipal
Income Fund:
Class A* front-end 0.15 none
Class T* front-end 0.25 none
Class B contingent deferred 0.65 0.25
Class C contingent deferred 0.75 0.25
Institutional Class none none none
Advisor Series II
Short Fixed-Income Fund:
Class A* front-end 0.15 none
Class T* front-end 0.15 none
Class C contingent deferred 0.75 0.25
Institutional Class none none none
Advisor Series VIII
Emerging Markets Income Fund:
Class A* front-end 0.15 none
Class T* front-end 0.25 none
Class B contingent deferred 0.65 0.25
Class C contingent deferred 0.75 0.25
Institutional Class none none none
Advisor Series II
High Yield Fund:
Class A* front-end 0.15 none
Class T* front-end 0.25 none
Class B contingent deferred 0.65 0.25
Class C contingent deferred 0.75 0.25
Institutional Class none none none
Advisor Series II
Strategic Income Fund:
Class A* front-end 0.15 none
Class T* front-end 0.25 none
Class B contingent deferred 0.65 0.25
Class C contingent deferred 0.75 0.25
Institutional Class none none none
Advisor Series II
Government Investment Fund:
Class A* front-end 0.15 none
Class T* front-end 0.25 none
Class B contingent deferred 0.65 0.25
Class C contingent deferred 0.75 0.25
Institutional Class none none none
Advisor Series II
Municipal Income Fund:
Class A* front-end 0.15 none
Class T* front-end 0.25 none
Class B contingent deferred 0.65 0.25
Class C contingent deferred 0.75 0.25
Institutional Class none none none
</TABLE>
______________________________________________________________
* A contingent deferred sales charge of 0.25% is accessed on certain
redemptions of Class A and Class T shares on which a finder's fee was
paid.
