SUPPLEMENT TO THE FIDELITY SELECT PORTFOLIOS(registered trademark)
APRIL 29, 1997
STATEMENT OF ADDITIONAL INFORMATION
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOR THE
STOCK FUNDS (EXCEPT CYCLICAL INDUSTRIES AND NATURAL RESOURCES) FOUND
IN THE "INVESTMENT POLICIES AND LIMITATIONS" SECTION ON PAGE 3.
(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) for all stock funds). Each fund will not borrow from
other funds advised by FMR or its affiliates if total outstanding
borrowings immediately after such borrowing would exceed 15% of the
fund's total assets.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOR NATURAL
RESOURCES AND CYCLICAL INDUSTRIES FOUND IN THE "INVESTMENT POLICIES
AND LIMITATIONS" SECTION ON PAGE 4.
(v) The fund may borrow money only (a) from a bank or from a
registered investment company or portfolio for which FMR or an
affiliate serves as investment adviser or (b) by engaging in reverse
repurchase agreements with any party (reverse repurchase agreements
are treated as borrowings for purposes of fundamental investment
limitation (2)). The fund will not borrow from other funds advised by
FMR or its affiliates if total outstanding borrowings immediately
after such borrowing would exceed 15% of the fund's total assets.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOR SELECT
MONEY MARKET FOUND IN THE "INVESTMENT POLICIES AND LIMITATIONS"
SECTION ON PAGE 5.
(i) The fund does not currently intend to purchase a security (other
than a security issued or guaranteed by the U.S. Government or any of
its agencies or instrumentalities) if, as a result, more than 5% of
its total assets would be invested in the securities of a single
issuer; provided that the fund may invest up to 25% of its total
assets in the first tier securities of a single issuer for up to three
business days. (This limit does not apply to investments of up to 25%
of total assets in securities of other open-end investment companies
managed by FMR or a successor or affiliate purchased pursuant to an
exemptive order granted by the SEC).
THE FOLLOWING INFORMATION SUPPLEMENTS THE INFORMATION FOUND IN THE
"INVESTMENT POLICIES AND LIMITATIONS" SECTION ON PAGE 15.
EXPOSURE TO FOREIGN MARKETS (STOCK FUNDS). 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. 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.
Foreign investments involve a risk of local political, economic, 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
the possibility of expropriation or nationalization of assets,
confiscatory taxation, restrictions on U.S. investment or on the
ability to repatriate assets or convert currency into U.S. dollars, or
other government intervention. There is no assurance that FMR will be
able to anticipate these potential events or counter their effects.
These risks are magnified for investments in developing countries,
which may have relatively unstable governments, economies based on
only a few industries, and securities markets that trade a small
number of securities.
Economies of particular countries or areas of the world may differ
favorably or unfavorably from the economy of the United States.
Foreign markets may offer less protection to investors than U.S.
markets. It is anticipated that in most cases the best available
market for foreign securities will be on an exchange or in
over-the-counter 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 (particularly those located in
developing countries) may be less liquid and more volatile than
securities of comparable U.S. issuers. Foreign security trading
practices, including those involving securities settlement where fund
assets may be released prior to receipt of payment, may result in
increased risk in the event of a failed trade or the insolvency of a
foreign broker-dealer, and may involve substantial delays. In
addition, the costs of foreign investing, including withholding taxes,
brokerage commissions and custodial costs, are generally higher than
for U.S. investors. In general, there is less overall governmental
supervision and regulation of securities exchanges, brokers, and
listed companies than in the United States. It may also be difficult
to enforce legal rights in foreign countries. 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.
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 (ADR's) 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 an alternative 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 FOLLOWING INFORMATION SUPPLEMENTS THE INFORMATION FOUND UNDER
THE HEADING "HISTORICAL FUND RESULTS" IN THE "PERFORMANCE" SECTION ON
PAGE 31.
The Money Market fund's seven-day yield for the period ended February
28, 1997 was 4.75%.
SUPPLEMENT TO THE FIDELITY SELECT
PORTFOLIOS(registered trademark) APRIL 29, 1997 PROSPECTUS
The following information updates the similar information on the cover
of the prospectus:
MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED
BY, ANY DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE FDIC,
FEDERAL RESERVE BOARD, OR ANY OTHER AGENCY, AND ARE SUBJECT TO
INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT
INVESTED.
FUND
NUMBER
AMERICAN GOLD PORTFOLIO 041
BIOTECHNOLOGY PORTFOLIO 042
ENERGY SERVICE PORTFOLIO 043
HOME FINANCE PORTFOLIO 098
INSURANCE PORTFOLIO 045
RETAILING PORTFOLIO 046
The following information updates the similar information found in the
section entitled "Expenses," beginning on page P-7.
ANNUAL FUND OPERATING EXPENSES are paid out of each fund's assets.
Each fund pays a management fee to FMR. It also incurs other expenses
for services such as maintaining shareholder records and furnishing
shareholder statements and financial reports. A fund's expenses are
factored into its share price or dividends and are not charged
directly to shareholder accounts (see page P-50).
The tables beginning on this page show figures that are based on
estimated or historical expenses, adjusted to reflect current fees,
and are calculated as a percentage of average net assets.
EXAMPLES: Let's say, hypothetically, that each fund's annual return is
5% and that its operating expenses are exactly as just described. For
every $1,000 you invested, the tables below show how much you would
pay in total expenses if you close your account after the number of
years indicated.
The examples illustrate the effect of expenses, but are not meant to
suggest actual or expected costs or returns, all of which may vary.
Operating expenses Account Account
open closed
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
AIR TRANSPORTATION Management fee 0.60% After 1 year $ 47 $ 55
12b-1 fee None After 3 years $ 83 $ 91
Other expenses 1.12% After 5 years $ 1.21 $ 129
Total fund operating expenses 1.72% After 10 years $ 227 $ 235
AMERICAN GOLD Management fee 0.60% After 1 year $ 44 $ 52
12b-1 fee None After 3 years $ 73 $ 81
Other expenses 0.79% After 5 years $ 104 $ 112
Total fund operating expenses 1.39% After 10 years $ 192 $ 200
AUTOMOTIVE Management fee 0.60% After 1 year $ 45 $ 53
12b-1 fee None After 3 years $ 76 $ 84
Other expenses 0.89% After 5 years $ 109 $ 117
Total fund operating expenses 1.49% After 10 years $ 203 $ 211
BIOTECHNOLOGY Management fee 0.60% After 1 year $ 44 $ 52
12b-1 fee None After 3 years $ 74 $ 82
Other expenses 0.82% After 5 years $ 105 $ 113
Total fund operating expenses 1.42% After 10 years $ 195 $ 203
BROKERAGE AND INVESTMENT MANAGEMENT Management fee 0.62% After 1 year $ 47 $ 55
12b-1 fee None After 3 years $ 83 $ 91
Other expenses 1.13% After 5 years $ 122 $ 130
Total fund operating expenses 1.75% After 10 years $ 230 $ 238
</TABLE>
Operating expenses Account Account
open closed
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
CHEMICALS Management fee 0.60% After 1 year $ 45 $ 53
12b-1 fee None After 3 years $ 76 $ 84
Other expenses 0.89% After 5 years $ 109 $ 117
Total fund operating expenses 1.49% After 10 years $ 203 $ 211
COMPUTERS Management fee 0.61% After 1 year $ 43 $ 51
12b-1 fee None After 3 years $ 70 $ 78
Other expenses 0.70% After 5 years $ 100 $ 108
Total fund operating expenses 1.31% After 10 years $ 183 $ 191
CONSTRUCTION AND HOUSING Management fee 0.60% After 1 year $ 49 $ 57
12b-1 fee None After 3 years $ 87 $ 95
Other expenses 1.28% After 5 years $ 129 $ 137
Total fund operating expenses 1.88% After 10 years $ 243 $ 251
CONSUMER INDUSTRIES Management fee 0.60% After 1 year $ 49 $ 57
12b-1 fee None After 3 years $ 88 $ 96
Other expenses 1.31% After 5 years $ 130 $ 138
Total fund operating expenses 1.91% After 10 years $ 247 $ 255
CYCLICAL INDUSTRIES* Management fee -- After 1 year $ 55 $ 63
(after reimbursement)
12b-1 fee None After 3 years $ 106 $ 114
Other expenses 2.50%
(after reimbursement)
Total fund operating expenses 2.50%
DEFENSE AND AEROSPACE Management fee 0.61% After 1 year $ 46 $ 54
12b-1 fee None After 3 years $ 80 $ 88
Other expenses 1.01% After 5 years $ 115 $ 123
Total fund operating expenses 1.62% After 10 years $ 216 $ 224
DEVELOPING COMMUNICATIONS Management fee 0.60% After 1 year $ 45 $ 53
12b-1 fee None After 3 years $ 76 $ 84
Other expenses 0.89% After 5 years $ 109 $ 117
Total fund operating expenses 1.49% After 10 years $ 203 $ 211
ELECTRONICS Management fee 0.61% After 1 year $ 41 $ 49
12b-1 fee None After 3 years $ 65 $ 73
Other expenses 0.54% After 5 years $ 91 $ 99
Total fund operating expenses 1.15% After 10 years $ 166 $ 174
</TABLE>
* FIGURES ARE BASED ON ESTIMATED EXPENSES.
Operating expenses Account Account
open closed
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
ENERGY Management fee 0.60% After 1 year $ 44 $ 52
12b-1 fee None After 3 years $ 73 $ 81
Other expenses 0.81% After 5 years $ 105 $ 113
Total fund operating expenses 1.41% After 10 years $ 194 $ 202
ENERGY SERVICE Management fee 0.60% After 1 year $ 43 $ 51
12b-1 fee None After 3 years $ 69 $ 77
Other expenses 0.67% After 5 years $ 98 $ 106
Total fund operating expenses 1.27% After 10 years $ 179 $ 187
ENVIRONMENTAL SERVICES Management fee 0.61% After 1 year $ 50 $ 58
12b-1 fee None After 3 years $ 92 $ 100
Other expenses 1.43% After 5 years $ 137 $ 145
Total fund operating expenses 2.04% After 10 years $ 260 $ 268
FINANCIAL SERVICES Management fee 0.61% After 1 year $ 42 $ 50
12b-1 fee None After 3 years $ 69 $ 77
Other expenses 0.65% After 5 years $ 97 $ 105
Total fund operating expenses 1.26% After 10 years $ 178 $ 186
FOOD AND AGRICULTURE Management fee 0.60% After 1 year $ 44 $ 52
12b-1 fee None After 3 years $ 73 $ 81
Other expenses 0.79% After 5 years $ 104 $ 112
Total fund operating expenses 1.39% After 10 years $ 192 $ 200
HEALTH CARE Management fee 0.60% After 1 year $ 42 $ 50
12b-1 fee None After 3 years $ 66 $ 74
Other expenses 0.58% After 5 years $ 93 $ 101
Total fund operating expenses 1.18% After 10 years $ 169 $ 177
HOME FINANCE Management fee 0.61% After 1 year $ 42 $ 50
12b-1 fee None After 3 years $ 68 $ 76
Other expenses 0.62% After 5 years $ 96 $ 104
Total fund operating expenses 1.23% After 10 years $ 174 $ 182
INDUSTRIAL EQUIPMENT Management fee 0.61% After 1 year $ 44 $ 52
12b-1 fee None After 3 years $ 74 $ 82
Other expenses 0.81% After 5 years $ 105 $ 113
Total fund operating expenses 1.42% After 10 years $ 195 $ 203
INDUSTRIAL MATERIALS Management fee 0.60% After 1 year $ 45 $ 53
12b-1 fee None After 3 years $ 76 $ 84
Other expenses 0.89% After 5 years $ 109 $ 117
Total fund operating expenses 1.49% After 10 years $ 203 $ 211
</TABLE>
Operating expenses Account Account
open closed
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
INSURANCE Management fee 0.61% After 1 year $ 44 $ 52
12b-1 fee None After 3 years $ 74 $ 82
Other expenses 0.83% After 5 years $ 106 $ 114
Total fund operating expenses 1.44% After 10 years $ 197 $ 205
LEISURE Management fee 0.60% After 1 year $ 44 $ 52
12b-1 fee None After 3 years $ 74 $ 82
Other expenses 0.84% After 5 years $ 106 $ 114
Total fund operating expenses 1.44% After 10 years $ 197 $ 205
MEDICAL DELIVERY Management fee 0.60% After 1 year $ 44 $ 52
12b-1 fee None After 3 years $ 74 $ 82
Other expenses 0.83% After 5 years $ 106 $ 114
Total fund operating expenses 1.43% After 10 years $ 196 $ 204
MULTIMEDIA Management fee 0.60% After 1 year $ 46 $ 54
12b-1 fee None After 3 years $ 79 $ 87
Other expenses 1.00% After 5 years $ 114 $ 122
Total fund operating expenses 1.60% After 10 years $ 214 $ 222
NATURAL GAS Management fee 0.60% After 1 year $ 46 $ 54
12b-1 fee None After 3 years $ 80 $ 88
Other expenses 1.03% After 5 years $ 116 $ 124
Total fund operating expenses 1.63% After 10 years $ 217 $ 225
NATURAL RESOURCES* Management fee -- After 1 year $ 55 $ 63
(after reimbursement)
12b-1 fee None After 3 years $ 106 $ 114
Other expenses 2.50%
(after reimbursement)
Total fund operating expenses 2.50%
PAPER AND FOREST PRODUCTS Management fee 0.60% After 1 year $ 48 $ 56
12b-1 fee None After 3 years $ 85 $ 93
Other expenses 1.21% After 5 years $ 125 $ 133
Total fund operating expenses 1.81% After 10 years $ 236 $ 244
PRECIOUS METALS AND MINERALS Management fee 0.60% After 1 year $ 46 $ 54
12b-1 fee None After 3 years $ 79 $ 87
Other expenses 1.00% After 5 years $ 114 $ 122
Total fund operating expenses 1.60% After 10 years $ 214 $ 222
</TABLE>
* FIGURES ARE BASED ON ESTIMATED EXPENSES.
Operating expenses Account Account
open closed
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
REGIONAL BANKS Management fee 0.61% After 1 year $ 43 $ 51
12b-1 fee None After 3 years $ 70 $ 78
Other expenses 0.68% After 5 years $ 99 $ 107
Total fund operating expenses 1.29% After 10 years $ 181 $ 189
RETAILING Management fee 0.60% After 1 year $ 45 $ 53
12b-1 fee None After 3 years $ 77 $ 85
Other expenses 0.94% After 5 years $ 111 $ 119
Total fund operating expenses 1.54% After 10 years $ 208 $ 216
SOFTWARE AND COMPUTER SERVICES Management fee 0.60% After 1 year $ 44 $ 52
12b-1 fee None After 3 years $ 73 $ 81
Other expenses 0.79% After 5 years $ 104 $ 112
Total fund operating expenses 1.39% After 10 years $ 192 $ 200
TECHNOLOGY Management fee 0.60% After 1 year $ 43 $ 51
12b-1 fee None After 3 years $ 70 $ 78
Other expenses 0.71% After 5 years $ 100 $ 108
Total fund operating expenses 1.31% After 10 years $ 183 $ 191
TELECOMMUNICATIONS Management fee 0.60% After 1 year $ 44 $ 52
12b-1 fee None After 3 years $ 74 $ 82
Other expenses 0.84% After 5 years $ 106 $ 114
Total fund operating expenses 1.44% After 10 years $ 197 $ 205
TRANSPORTATION Management fee 0.60% After 1 year $ 50 $ 58
12b-1 fee None After 3 years $ 91 $ 99
Other expenses 1.42% After 5 years $ 136 $ 144
Total fund operating expenses 2.02% After 10 years $ 258 $ 266
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
UTILITIES GROWTH Management fee 0.60% After 1 year $ 43 $ 51
12b-1 fee None After 3 years $ 69 $ 77
Other expenses 0.68% After 5 years $ 98 $ 106
Total fund operating expenses 1.28% After 10 years $ 180 $ 188
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
MONEY MARKET Management fee 0.20% After 1 year $ 36 $ 36
12b-1 fee None After 3 years $ 47 $ 47
Other expenses 0.36% After 5 years $ 60 $ 60
Total fund operating expenses 0.56% After 10 years $ 98 $ 98
</TABLE>
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 interest
earned on uninvested cash balances is used to reduce custodian and
transfer agent expenses. Including these reductions, the total
operating expenses presented in the preceding tables would have been:
Air Transportation 1.63%
American Gold 1.37%
Automotive 1.45%
Biotechnology 1.41%
Brokerage and Investment Management 1.74%
Chemicals 1.47%
Computers 1.27%
Construction and Housing 1.82%
Consumer Industries 1.86%
Defense and Aerospace 1.59%
Developing Communications 1.47%
Electronics 1.11%
Energy 1.39%
Energy Service 1.25%
Environmental Services 1.97%
Financial Services 1.24%
Food and Agriculture 1.37%
Health Care 1.17%
Home Finance 1.19%
Industrial Equipment 1.35%
Industrial Materials 1.46%
Insurance 1.39%
Leisure 1.42%
Medical Delivery 1.39%
Multimedia 1.56%
Natural Gas 1.59%
Paper and Forest Products 1.78%
Precious Metals and Minerals 1.59%
Regional Banks 1.28%
Retailing 1.48%
Software and Computer Services 1.36%
Technology 1.26%
Telecommunications 1.40%
Transportation 2.00%
Utilities Growth 1.27%
Effective April 30, 1997, FMR has voluntarily agreed to reimburse each
fund to the extent that total operating expenses exceed 2.50% of its
average net assets. If these agreements were not in effect, the
management fee, other expenses and total operating expenses of
Cyclical Industries would be estimated to be 0.59%, 2.59%, and 3.18%,
respectively; and the management fee, other expenses and total
operating expenses of Natural Resources would be estimated to be
0.59%, 2.12%, and 2.71, respectively. Expenses eligible for
reimbursement do not include interest, taxes, brokerage commissions,
or extraordinary expenses.
The following information updates the similar information found in the
section entitled "FMR and Its Affiliates," beginning on page P-36.
Audra Barranco is manager of Chemicals, which she has managed since
June 1997. Ms. Barranco joined Fidelity in 1996 as an analyst, after
receiving her MBA from Columbia Business School. Previously, she
worked as an investment commentary writer and internal wholesaler for
Pioneer Funds Distributor from 1992 to 1995.
Steve Buller is manager of Environmental Services, which he has
managed since December 1997. He is also an associate manager for
another Fidelity fund. Mr. Buller joined Fidelity in 1992 as an
analyst. From 1995 to 1997, he worked as a fixed-income analyst for
Fidelity International, Limited, in London.
James Catudal is manager of Industrial Materials and Energy
Services, which he has managed since August 1997 and January 1998,
respectively. Mr. Catudal joined Fidelity in 1997 as a research
analyst. After receiving his MBA from the Amos Tuck School at
Dartmouth College in 1995, he joined State Street Research &
Management as an equity analyst. Previously, he worked for Textron,
McCord Winn Division, from 1987 to 1993.
Douglas Chase is manager of Consumer Industries which he has managed
since August 1997. He managed Industrial Materials from 1994 to 1997.
Mr. Chase joined Fidelity as an equity analyst in 1993 after receiving
his MBA from the University of Michigan. Previously, he was a
consultant for Stanford Resources from 1988 to 1991.
Jeff Dorsey is manager of Multimedia and Leisure, which he has
managed since December 1997 and January 1998, respectively. Since
joining Fidelity in 1991, Mr. Dorsey has worked as an analyst, senior
analyst, corporate strategist and manager.
Robert Ewing is manager of 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.
Albert Grosman is manager of Automotive, which he has managed since
December 1997. Mr. Grosman joined Fidelity in 1996 as an analyst
working part-time. After receiving his MBA from Columbia University in
1997, he joined Fidelity full-time. From 1993 to 1995, Mr. Grosman was
self-employed as an investment manager, managing investment portfolios
on a discretionary basis in Toronto, Canada.
Jamie Harmon is manager of Biotechnology, which he has managed since
June 1997. Since joining Fidelity in 1995, Mr. Harmon has worked as a
research associate, analyst and manager. Previously, he was a junior
analyst with Essex Investment Management Co., Inc. from 1994 to 1995.
Mr. Harmon received a bachelor of arts degree in government from
Harvard University in 1994.
Doug Lober is manager of Paper and Forest Products, which he has
managed since October 1997. Mr. Lober joined Fidelity in 1997 as a
senior equity analyst. Previously, he was an analyst and manager at
Fidelity from 1986 until 1989. Mr. Lober received his doctorate in
forestry and environmental studies from Yale University in 1993, and
was an assistant professor at Duke University from 1993 to 1997.
Yolanda McGettigan is manager of Construction and Housing, which she
has managed since December 1997. Ms. McGettigan joined Fidelity as an
analyst in 1997, after receiving her MBA from the Fuqua School of
Business at Duke University. Previously, she was employed as a sales
representative for Robinson-Humphrey from 1994 to 1995 and a trader
for Cantor Fitzgerald from 1992 to 1994.
John Porter is manager of Software and Computer Services and
Medical Delivery, which he has managed since June 1997 and February
1998, respectively. Previously, he managed another Fidelity fund.
Mr. Porter joined Fidelity as an analyst in 1995, after receiving his
MBA from the University of Chicago. Before that, he was a product
engineer for Ford Motor Company from 1991 to 1993.
Lawrence Rakers is manager of Energy and Natural Resources which he
has managed since January 1997 and March 1997, respectively. He also
manages another Fidelity fund. Mr. Rakers joined Fidelity as an
analyst in 1993. Previously, he was a project engineer for Loral
Corporation from 1986 to 1993.
Peter Saperstone is manager of Air Transportation and Defense and
Aerospace, both of which he has managed since July 1997. Mr.
Saperstone joined Fidelity as an analyst in August 1995. Previously,
he was an equity research analyst at Gabelli & Company, Inc. from 1993
to 1995, and a credit analyst at National Westminster Bank USA from
1991 to 1993.
Christine Schaulat is manager of Regional Banks, which she has
managed since January 1998. Ms. Schaulat joined Fidelity as a
research analyst after receiving her MBA from Harvard University in
1997. Previously, she was an investment manager for Indosuez Asset
Management Asia, Limited, in Hong Kong, from 1993 to 1995
Beso Sikharulidze is manager of Health Care, which he has managed
since June 1997. He also manages another Fidelity fund. Mr.
Sikharulidze joined Fidelity as an analyst in 1992, after receiving
his MBA from Harvard University.
Nick Thakore is manager of Telecommunications and Utilities Growth,
which he has managed since July 1996 and August 1997, respectively.
Mr. Thakore joined Fidelity as an analyst in 1993, after earning his
MBA from The Wharton School at the University of Pennsylvania.
Previously, he was a real estate analyst for Prudential Properties
Company from 1989 to 1991.
Victor Thay is manager of Natural Gas, which he has managed since
December 1997. Mr. Thay joined Fidelity as a research associate in
1995, after receiving undergraduate degrees in political science and
business administration from the University of California at Berkeley
in 1995.
Simon Wolf is manager of Industrial Equipment which he has managed
since August 1997. Mr. Wolf joined Fidelity in 1996 as a research
associate. Previously, he worked for Salomon Brothers as an analyst
and high yield research assistant analyst from 1993 to 1996. Mr. Wolf
received a bachelor of science in economics degree from The Wharton
School at the University of Pennsylvania in 1992.
The following information replaces the similar information found under
the heading "Diversification" in the section entitled "Securities and
Investment Practices," on page P-47.
The money market fund may not invest more than 5% of its total assets
in any one issuer, except that it may invest up to 25% of its total
assets in certain other money market funds and in the highest-quality
securities of a single issuer for up to three business days. This
limitation does not apply to U.S. Government securities.
The following information replaces in its entirety the similar
information in the section entitled "Key Information," on page P-54.
AUTOMATICALLY
NEW ACCOUNTS CANNOT BE OPENED WITH THESE SERVICES.
(small solid bullet) Use Fidelity Automatic Account Builder or Direct
Deposit to automatically purchase more shares. Sign up for these
services when opening your account, or call 1-800-544-6666 to add it.
Direct Deposit is not available for retirement accounts.
The short-selling program discussion found on page P-59 of the
prospectus incorrectly identifies Fidelity Brokerage Services, Inc. as
FSBI instead of FBSI.
