STATEMENT OF ADDITIONAL INFORMATION

The following information replaces similar information found under

the heading in the "Investment Policies and Limitations" section

beginning on page 2. (iii) 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 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.)

The following paragraph replaces the third paragraph under the

heading "Exposure to Foreign Markets" found in the "Investments

Policies and Limitations" section beginning on page 2.

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.