SUPPLEMENT TO THE FIDELITY SELECT PORTFOLIOS(registered trademark)
APRIL 29, 1999
STATEMENT OF ADDITIONAL INFORMATION
REGIONAL BANKS PORTFOLIO HAS BEEN RENAMED BANKING PORTFOLIO. ALL
REFERENCES TO REGIONAL BANKS PORTFOLIO THROUGHOUT THIS SAI SHOULD BE
REPLACED WITH BANKING PORTFOLIO.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOR EACH STOCK
FUND (EXCEPT BUSINESS SERVICES AND OUTSOURCING PORTFOLIO, CYCLICAL
INDUSTRIES PORTFOLIO, MEDICAL EQUIPMENT AND SYSTEMS PORTFOLIO, AND
NATURAL RESOURCES PORTFOLIO) FOUND IN THE "INVESTMENT POLICIES AND
LIMITATIONS" SECTION BEGINNING ON PAGE 2.
(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 limitation (2)).
(vii) The fund does not currently intend to lend assets other than
securities to other parties, except (a) by 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.)
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOR EACH OF
BUSINESS SERVICES AND OUTSOURCING PORTFOLIO, CYCLICAL INDUSTRIES
PORTFOLIO, MEDICAL EQUIPMENT AND SYSTEMS PORTFOLIO, AND NATURAL
RESOURCES PORTFOLIO FOUND IN THE "INVESTMENT POLICIES AND LIMITATIONS"
SECTION BEGINNING 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 limitation (2)).
(vii) The fund does not currently intend to lend assets other than
securities to other parties, except by 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.)
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOR MONEY
MARKET PORTFOLIO FOUND IN THE "INVESTMENT POLICIES AND LIMITATIONS"
SECTION BEGINNING ON PAGE 5.
(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.
(vii) The fund does not currently intend to lend assets other than
securities to other parties, except by 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. (This
limitation does not apply to purchases of debt securities or to
repurchase agreements.)
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND IN THE
"INVESTMENT POLICIES AND LIMITATIONS" SECTION BEGINNING ON PAGE 2.
SOURCES OF CREDIT OR LIQUIDITY SUPPORT. Issuers may employ various
forms of credit and liquidity enhancements, including letters of
credit, guarantees, puts, and demand features, and insurance provided
by domestic or foreign entities such as banks and other financial
institutions. FMR may rely on its evaluation of the credit of the
liquidity or credit enhancement provider in determining whether to
purchase a security supported by such enhancement. In evaluating the
credit of a foreign bank or other foreign entities, FMR will consider
whether adequate public information about the entity is available and
whether the entity may be subject to unfavorable political or economic
developments, currency controls, or other government restrictions that
might affect its ability to honor its commitment. Changes in the
credit quality of the entity providing the enhancement could affect
the value of the security or a fund's share price.
SUPPLEMENT TO THE FIDELITY SELECT
PORTFOLIOS(registered trademark) APRIL 29, 1999 PROSPECTUS
Effective the close of business on December 20, 1999, shares of Select
Precious Metals and Minerals Portfolio will no longer be available for
purchase except through the reinvestment of dividends and other
distributions by shareholders of the fund on December 20, 1999.
PROPOSED REORGANIZATION. The Board of Trustees of Fidelity Select
Portfolios has unanimously approved an Agreement and Plan of
Reorganization ("Agreement") between Select Precious Metals and
Minerals Portfolio and Select Gold Portfolio.
The Agreement provides for the transfer of all of the assets and the
assumption of all of the liabilities of Select Precious Metals and
Minerals Portfolio solely in exchange for the number of shares of
Select Gold Portfolio equal in value to the relative net asset value
of the outstanding shares of Select Precious Metals and Minerals
Portfolio. Following such exchange, Select Precious Metals and
Minerals Portfolio will distribute the Select Gold Portfolio shares to
its shareholders pro rata, in liquidation of Select Precious Metals
and Minerals Portfolio as provided in the Agreement (the transactions
contemplated by the Agreement referred to as the "Reorganization").
The Reorganization can be consummated only if, among other things, it
is approved by a majority vote of shareholders. A Special Meeting (the
"Meeting") of the Shareholders of Select Precious Metals and Minerals
Portfolio will be held on February 16, 2000, and approval of the
Agreement will be voted on at that time. In connection with the
Meeting, Select Precious Metals and Minerals Portfolio will be filing
with the Securities and Exchange Commission and delivering to its
shareholders of record a Proxy Statement describing the Reorganization
and a Prospectus for Select Gold Portfolio.
If the Agreement is approved at the Meeting and certain conditions
required by the Agreement are satisfied, the Reorganization is
expected to become effective on or about February 29, 2000. If
shareholder approval of the Agreement is delayed due to failure to
meet a quorum or otherwise, the Reorganization will become effective,
if approved, as soon as practicable thereafter.
In the event Select Precious Metals and Minerals Portfolio
shareholders fail to approve the Agreement, Select Precious Metals and
Minerals Portfolio will continue to engage in business as a registered
investment company and the Board of Trustees will consider other
proposals for the reorganization or liquidation of Select Precious
Metals and Minerals Portfolio.
REGIONAL BANKS PORTFOLIO HAS CHANGED ITS NAME TO "BANKING PORTFOLIO."
References in the Prospectus to "Regional Banks Portfolio" are each
hereby replaced by "Banking Portfolio" and references to "Regional
Banks" are each hereby replaced by "Banking."
The following information replaces similar information for "Banking
Portfolio" found in the "Fund Summary" section on page P-15:
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Investing primarily in common stocks.
(small solid bullet) Investing at least 80% of assets in securities of
companies principally engaged in accepting deposits and making
commercial and principally non-mortgage consumer loans.
(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.
The following information replaces the second paragraph for
"Environmental Services Portfolio" found under the heading "Principal
Investment Strategies" in the "Fund Basics" section beginning on page
P-46:
FMR normally invests at least 80% of the fund's assets in securities
of companies principally engaged in the research, development,
manufacture or distribution of products, processes, or services
related to waste management or pollution control. These companies may
include, for example, companies involved in the transportation,
treatment, or disposal of hazardous or other wastes; transforming
waste into energy; recycling; and remedial projects such as
groundwater and underground storage tank decontamination, asbestos
cleanup, and emergency cleanup response. They may also include
companies involved in the detection, analysis, evaluation, and
treatment of both existing and potential environmental problems such
as contaminated water, air pollution, and acid rain; companies that
provide sanitation or filtration equipment or services; companies
involved in the reduction of hazardous emissions or other pollution
reduction or prevention efforts; and companies that provide design,
engineering, construction, and consulting services to companies
engaged in waste management or pollution control.
The following information replaces the second paragraph for "Banking
Portfolio" found under the heading "Principal Investment Strategies"
in the "Fund Basics" section on page P-52:
FMR normally invests at least 80% of the fund's assets in securities
of companies principally engaged in accepting deposits and making
commercial and principally non-mortgage consumer loans. These
companies may include, for example, state chartered banks, savings and
loan institutions, banks that are members of the Federal Reserve
System, and U.S. institutions whose deposits are not insured by the
federal government. In addition, these companies may offer merchant
banking, consumer and commercial finance, discount brokerage, leasing
and insurance.
The following information replaces similar information found in the
"Fund Management" section beginning on page P-69:
Ramin Arani is an analyst and manager of 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.
Steven Calhoun is manager of Retailing, which he has managed since
August 1999. Mr. Calhoun joined Fidelity as a research analyst in
1994.
Shep Perkins is an analyst and manager of Medical Delivery, which he
has managed since August 1999. Mr. Perkins joined Fidelity as an
equity research associate in 1997.
Christian Zann is an analyst and manager of Natural Gas, which he has
managed since August 1999. Mr. Zann joined Fidelity as an equity
research associate in 1996.
