SUPPLEMENT TO THE FIDELITY ASSET MANAGER: INCOME PROSPECTUS
DATED NOVEMBER 27, 1996
Beginning on December 1, 1996, the fund will transition to the investment
policies outlined below. The new policies will be effective January 1,
1997.
The following information replaces similar information found under the
heading "The Fund at a Glance" in the Key Facts section beginning on page
3.
STRATEGY: The fund diversifies across stocks, bonds and short-term and
money market instruments, both here and abroad, to pursue its goal. The
fund has a neutral mix which represents the way the fund's investments will
generally be allocated over the long term. This mix will vary over
short-term periods as fund management gradually adjusts the fund's holdings
- - within defined ranges - based on the current outlook for the different
markets.
Neutral Mix
Stocks 20%
(can range
from 10-30%)
Row: 1, Col: 1, Value: 30.0
Row: 1, Col: 2, Value: 20.0
Row: 1, Col: 3, Value: 50.0
Bonds 50%
(can range
from 40-60%)
Short-Term/
Money Market
30%(can
range
from 10-50%)
The following information replaces similar information found under the
heading "Performance" in the Key Facts section beginning on page 3.
UNDERSTANDING
PERFORMANCE
As economic conditions
change, different types of
investments do better than
others. While Asset Manager:
Income usually invests in
stocks, bonds and short-term
and money market
instruments, its emphasis is in
bonds and short-term and
money market instruments.
The fund's performance tends
to be related to changes in
short-term interest rates, but
will also reflect the
performance of the other
investments in its mix during
the time period.
(checkmark)
The following information replaces similar information found under the
heading "The Fund's Investment Approach" in The Fund in Detail section
beginning on page 8.
THE FUND'S INVESTMENT APPROACH
The fund seeks a high level of current income by allocating its assets
among stocks, bonds and short- term and money market instruments, and
other instruments of U.S. and foreign issuers. The fund also considers the
potential for capital appreciation.
The fund allocates its assets among the following classes, or types, of
investments. The STOCK CLASS includes equity securities of all types. The
BOND CLASS includes all varieties of fixed-income securities maturing in
more than one year. The SHORT-TERM/MONEY MARKET CLASS includes all types of
short-term and money market instruments. FMR may use its judgment to place
a security in the most appropriate class based on its investment
characteristics. Fixed-income securities may be classified in the bond or
short-term/money market class according to interest rate sensitivity as
well as maturity. The fund may also make other investments that do not fall
within these classes.
FMR has the ability to allocate the fund's assets within specified ranges.
The fund's NEUTRAL MIX represents the benchmark for its combination of
investments in each asset class over time. FMR may change the neutral mix
from time to time. The range and approximate neutral mix for each asset
class are shown below.
Range Neutral Mix
STOCK CLASS 10 - 30% 20%
BOND CLASS 40 - 60% 50%
SHORT-TERM/
MONEY MARKET CLASS 10 - 50% 30%
Asset Manager: Income's approach focuses on bonds and short-term and
money market instruments for current income. However, its ability to
invest a portion of its assets in stocks offers the opportunity for capital
appreciation, and potentially more volatility, than other income-oriented
funds.
Effective December 1, 1996, the following information supplements the
similar information found under the heading "FMR and Its Affiliates" in The
Fund in Detail section beginning on page 8.
John Todd is vice president of Asset Manager: Income and manager of its
short-term and money market investments, which he has managed since
December 1996. He also manages several other Fidelity funds. Mr. Todd
joined Fidelity in 1981.
SUPPLEMENT TO THE FIDELITY ASSET MANAGERTM PROSPECTUS
DATED NOVEMBER 27, 1996
Beginning on December 1, 1996, the fund will transition to the investment
policies outlined below. The new policies will be effective January 1,
1997.
The following information replaces similar information located under the
heading "The Fund at a Glance" in the Key Facts section beginning on page
4.
STRATEGY: The fund diversifies across stocks, bonds and short-term and
money market instruments, both here and abroad, to pursue its goal. The
fund has a neutral mix which represents the way the fund's investments will
generally be allocated over the long term. This mix will vary over
short-term periods as fund management gradually adjusts the fund's holdings
- - within defined ranges - based on the current outlook for the different
markets.
Neutral Mix
STOCKS 50%
(can range
from 30-70%)
Row: 1, Col: 1, Value: 10.0
Row: 1, Col: 2, Value: 50.0
Row: 1, Col: 3, Value: 40.0
BONDS 40%
(can range
from
20-60%)
SHORT-TERM/M
ONEY MARKET
10%(can
range
from 0-50%)
The following information replaces similar information located under the
heading "The Fund's Investment Approach" in The Fund in Detail section
beginning on page 9.
THE FUND'S INVESTMENT APPROACH
The fund seeks high total return with reduced risk over the long term by
allocating its assets among stocks, bonds and short-term and money market
instruments, and other instruments of U.S. and foreign issuers.
The fund allocates its assets among the following classes, or types, of
investments. The STOCK CLASS includes equity securities of all types. The
BOND CLASS includes all varieties of fixed-income securities maturing in
more than one year. The SHORT-TERM/MONEY MARKET CLASS includes all types of
short-term and money market instruments. FMR may use its judgment to place
a security in the most appropriate class based on its investment
characteristics. Fixed-income securities may be classified in the bond or
short-term/money market class according to interest rate sensitivity as
well as maturity. The fund may also make other investments that do not fall
within these classes.
FMR has the ability to allocate the fund's assets within specified ranges.
The fund's NEUTRAL MIX represents the benchmark for its combination of
investments in each asset class over time. FMR may change the neutral mix
from time to time. The range and approximate neutral mix for each asset
class are shown below.
Range Neutral Mix
STOCK CLASS 30 - 70% 50%
BOND CLASS 20 - 60% 40%
SHORT-TERM/
MONEY MARKET CLASS 0 - 50% 10%
Asset Manager's approach spreads the fund's assets among all three classes,
moderating both the risk and return potential of stocks, bonds and
short-term and money market instruments.
Effective December 1, 1996, the following information supplements the
similar information located under the heading "FMR and Its Affiliates" in
The Fund in Detail section beginning on page 9.
John Todd is vice president of Asset Manager and manager of its short-term
and money market investments, which he has managed since December 1996. He
also manages several other Fidelity funds. Mr. Todd joined Fidelity in
1981.
SUPPLEMENT TO THE FIDELITY ASSET MANAGER: GROWTH PROSPECTUS
DATED NOVEMBER 27, 1996
Beginning on December 1, 1996, the fund will transition to the investment
policies outlined below. The new policies will be effective January 1,
1997.
The following information replaces similar information found under the
heading "The Fund at a Glance" in the Key Facts section beginning on page
3.
STRATEGY: The fund diversifies across stocks, bonds and short-term and
money market instruments, both here and abroad, to pursue its goal. The
fund has a neutral mix which represents the way the fund's investments will
generally be allocated over the long term. This mix will vary over
short-term periods as fund management gradually adjusts the fund's holdings
- - within defined ranges - based on the current outlook for the different
markets.
Neutral Mix
Stocks 70%
(can range
from
50-100%)
Row: 1, Col: 1, Value: 5.0
Row: 1, Col: 2, Value: 70.0
Row: 1, Col: 3, Value: 25.0
Bonds 25%
(can range
from 0-50%)
Short-Term/
Money Market
5%(can range
from 0-50%)
The following information replaces similar information found under the
heading "The Fund's Investment Approach" in The Fund in Detail section
beginning on page 9.
THE FUND'S INVESTMENT APPROACH
The fund seeks to maximize total return over the long term by allocating
its assets among stocks, bonds and short-term and money market instruments,
and other instruments of U.S. and foreign issuers.
The fund allocates its assets among the following classes, or types, of
investments. The STOCK CLASS includes equity securities of all types. The
BOND CLASS includes all varieties of fixed-income securities maturing in
more than one year. The SHORT-TERM/MONEY MARKET CLASS includes all types of
short-term and money market instruments. FMR may use its judgment to place
a security in the most appropriate class based on its investment
characteristics. Fixed-income securities may be classified in the bond or
short-term/money market class according to interest rate sensitivity as
well as maturity. The fund may also make other investments that do not fall
within these classes.
FMR has the ability to allocate the fund's assets within specified ranges.
The fund's NEUTRAL MIX represents the benchmark for its combination of
investments in each asset class over time. FMR may change the neutral mix
from time to time. The range and approximate neutral mix for each asset
class are shown below.
Range Neutral Mix
STOCK CLASS 50 - 100% 70%
BOND CLASS 0 - 50% 25%
SHORT-TERM/
MONEY MARKET CLASS 0 - 50% 5%
Asset Manager: Growth's aggressive approach focuses on stocks for high
potential returns. However, because the fund can invest in bonds and
short-term and money market instruments, its return may not be as high as a
fund that invests only in stocks.
Effective December 1, 1996, the following information supplements the
similar information found under the heading "FMR and Its Affiliates" in The
Fund in Detail section beginning on page 9.
John Todd is vice president of Asset Manager: Growth and manager of its
short-term and money market investments, which he has managed since
December 1996. He also manages several other Fidelity funds. Mr. Todd
joined Fidelity in 1981.
SUPPLEMENT TO THE FIDELITY ASSET MANAGER FUNDS PROSPECTUS
DATED NOVEMBER 27, 1996
Beginning on December 1, 1996, the funds will transition to the investment
policies outlined below. The new policies will be effective January 1,
1997.
The following information replaces similar information located under the
heading "The Funds at a Glance" in the Key Facts section beginning on page
3.
STRATEGY: The funds diversify across stocks, bonds and short- term and
money market instruments , both here and abroad, to pursue specific
goals. Each fund has a neutral mix which represents the way the fund's
investments will generally be allocated over the long term. This mix will
vary over short-term periods as fund management gradually adjusts the
fund's holdings - within defined ranges - based on the current outlook for
the different markets.
The following information replaces similar information located under the
heading "Who May Want to Invest" in the Key Facts section beginning on page
3.
Asset allocation funds are designed for investors who want to diversify
among domestic and foreign stocks, bonds and short-term and money market
instruments and other types of securities, in one fund. If you are
looking for a fund that can invest in a wide range of security types within
defined ranges, one of the Asset Manager funds may be appropriate for you.
Because each fund owns different types of investments, its performance is
affected by a variety of factors. The value of each fund's investments and
the income they generate will vary from day to day, and generally reflect
interest rates, market conditions, and other company, political and
economic news. Investments in foreign securities may involve risks in
addition to those of U.S. investments, including increased political and
economic risk, as well as exposure to currency fluctuations. Performance
also depends on FMR's skill in allocating assets. When you sell your fund
shares, they may be worth more or less than what you paid for them.
ASSET MANAGER: INCOME
GOAL: High current income, and capital appreciation when appropriate.
Neutral Mix
STOCKS 20%
(can range from
10-30%)
Row: 1, Col: 1, Value: 30.0
Row: 1, Col: 2, Value: 20.0
Row: 1, Col: 3, Value: 50.0
BONDS 50%
(can range from
40-60%)
SHORT-TERM/MONE
Y MARKET
30% (can range
from 10-50%)
With its emphasis on bonds and short-term and money market
instruments , Asset Manager: Income is the most conservative fund in the
family.
ASSET MANAGER
GOAL: High total return with reduced risk over the long term.
Neutral Mix
STOCKS 50%
(can range from
30-70%)
Row: 1, Col: 1, Value: 10.0
Row: 1, Col: 2, Value: 50.0
Row: 1, Col: 3, Value: 40.0
B ONDS 40%
(can range from
20-60%)
S HORT-TERM/MON
EY MARKET 10%
(can range from
0-50%)
With its more balanced approach, Asset Manager is the middle-of-the-road
member of the family.
ASSET MANAGER: GROWTH
GOAL: Maximum total return over the long term.
Neutral Mix
STOCKS 70%
(can range from
50-100%)
Row: 1, Col: 1, Value: 5.0
Row: 1, Col: 2, Value: 65.0
Row: 1, Col: 3, Value: 30.0
BO NDS 25%
(can range from
0-50%)
SHORT-TERM/MONE
Y MARKET 5% (can
range from
0-50%)
With its emphasis on stocks, Asset Manager: Growth is the most aggressive
fund in the family.
The following information replaces similar information located under the
heading "Investment Principles and Risks" in The Funds in Detail section
beginning on page 11.
Each fund seeks to achieve its investment objective by allocating its
assets among stocks, bonds and short-term and money market instruments
and other instruments of U.S. and foreign issuers. Each fund however,
has a different objective and pursues its objective by investing within
different asset allocation ranges.
ASSET MANAGER: INCOME seeks a high level of current income. The fund also
considers the potential for capital appreciation.
ASSET MANAGER seeks high total return with reduced risk over the long term.
ASSET MANAGER: GROWTH seeks to maximize total return over the long term.
Each fund allocates its assets among the following classes, or types, of
investments. The STOCK CLASS includes equity securities of all types. The
BOND CLASS includes all varieties of fixed-income securities maturing in
more than one year. The SHORT-TERM/MONEY MARKET CLASS includes all
types of sh ort-term and money market instruments. FMR may use its
judgment to place a security in the most appropriate class based on its
investment characteristics. Fixed-income securities may be classified in
the bond or short-term/money market class according to interest rate
sensitivity as well as maturity. The funds may also make other investments
that do not fall within these classes.
FMR has the ability to allocate each fund's assets within specified ranges.
Each fund's NEUTRAL MIX represents the benchmark for its combination of
investments in each asset class over time. FMR may change the neutral mix
from time to time. The range and approximate neutral mix for each asset
class are shown below.
ASSET MANAGER: INCOME
Range Neutral mix
STOCK CLASS 10 - 30% 20%
BOND CLASS 40 - 60% 50%
SHORT-TERM/MONEY MARKET CLASS 10 - 50% 30%
Asset Manager: Income's approach focuses on short-term and money market
instruments and bonds for current income. However, its ability to
invest a portion of its assets in stocks offers the opportunity for capital
appreciation, and potentially more volatility, than other income-oriented
funds.
ASSET MANAGER
Range Neutral mix
STOCK CLASS 30 - 70% 50%
BOND CLASS 20 - 60% 40%
SHORT-TERM/MONEY MARKET CLASS 0 - 50% 10%
Asset Manager's approach spreads the fund's assets among all three classes,
moderating both the risk and return potential of stocks, bonds and
short-term and money market instruments .
ASSET MANAGER: GROWTH
Range Neutral mix
STOCK CLASS 50 - 100% 70%
BOND CLASS 0 - 50% 25%
SHORT-TERM/MONEY MARKET CLASS 0 - 50% 5%
Asset Manager: Growth's more aggressive approach focuses on stocks for
high potential returns. However, because the fund can invest in bonds and
short-term and money market instruments, its return may not be as high as a
fund that invests only in stocks.
Effective December 1, 1996, the following information supplements the
similar information located under the heading "FMR and Its Affiliates" in
The Fund in Detail section beginning on page 11.
John Todd is vice president of each fund and manager of each fund's
short-term and money market investments, which he has managed since
December 1996. He also manages several other Fidelity funds. Mr. Todd
joined Fidelity in 1981.
SUPPLEMENT TO THE FIDELITY ASSET MANAGER: INCOME
FIDELITY ASSET MANAGER(trademark)
FIDELITY ASSET MANAGER: GROWTH
FUNDS OF FIDELITY CHARLES STREET TRUST
STATEMENT OF ADDITIONAL INFORMATION
DATED NOVEMBER 27, 1996
The following information replaces the similar information located under
the heading "Asset Allocation" in the Investment Policies and Limitations
section beginning on page 2.
ASSET ALLOCATION. The short-term/money market class includes all types of
domestic and foreign securities and short-term and money market instruments
with remaining maturities of 12 months or less or comparable interest rate
sensitivity. FMR will seek to maximize total return with respect to Asset
Manager and Asset Manager: Growth, and will seek to maximize income with
respect to Asset Manager: Income, within this asset class by taking
advantage of yield differentials between different instruments, issuers,
and currencies. Short-term and money market instruments may include
corporate debt securities, such as commercial paper and notes; government
securities issued by U.S. or foreign governments or their agencies or
instrumentalities; bank deposits and other financial institution
obligations; repurchase agreements involving any type of security; and
other similar short-term instruments. These instruments may be denominated
in U.S. dollars or foreign currency.
The bond class includes all varieties of domestic and foreign fixed-income
securities with maturities greater than 12 months or comparable interest
rate sensitivity. FMR will seek to maximize total return within the bond
class by adjusting a fund's investments in securities with different credit
qualities, maturities, and coupon or dividend rates, and by seeking to take
advantage of yield differentials between securities. Securities in this
class may include bonds, notes, adjustable-rate preferred stocks,
convertible bonds, mortgage-related and asset-backed securities, domestic
and foreign government and government agency securities, zero coupon bonds,
and other intermediate and long-term securities. As with the
short-term/money market class, these securities may be denominated in U.S.
dollars or foreign currency. Asset Manager and Asset Manager: Growth may
also invest in lower quality, high-yielding debt securities (commonly
referred to as "junk bonds"). Asset Manager and Asset Manager: Growth
currently intend to limit their investments in these securities to less
than 35% of their assets. Asset Manager: Income may invest up to 5% of its
assets in lower-quality convertible bonds.
The stock class includes domestic and foreign equity securities of all
types (other than adjustable rate preferred stocks which are included in
the bond class). FMR seeks to maximize total return within this asset class
by actively allocating assets to industry sectors expected to benefit from
major trends, and to individual stocks that FMR believes to have superior
investment potential. When FMR selects equity securities, it considers both
growth and anticipated dividend income. Securities in the stock class may
include common stocks, fixed-rate preferred stocks (including convertible
preferred stocks), warrants, rights, depositary receipts, securities of
closed-end investment companies, and other equity securities issued by
companies of any size, located anywhere in the world.
In making asset allocation decisions, FMR will evaluate projections of
risk, market conditions, economic conditions, volatility, yields, and
returns. FMR's management will use database systems to help analyze past
situations and trends, research specialists in each of the asset classes to
help in securities selection, portfolio management professionals to
determine asset allocation and to select individual securities, and its own
credit analysis as well as credit analyses provided by rating services.
The following information replaces the similar information located under
the heading "Performance Comparisons" in the Performance section beginning
on page 17.
PERFORMANCE COMPARISONS. The Asset Allocation Composite Indices are
hypothetical representations of the performance of the funds' three asset
classes according to their respective weighting in each fund's neutral mix.
The weightings are rebalanced monthly. Beginning January 1, 1997, the
Conservative Asset Allocation Composite Index represents Asset Manager:
Income's three asset classes according to their respective weighting in the
fund's neutral mix (30% - short-term/money market: 50% - bonds; and 20%
stocks), the Asset Allocation Composite Index represents Asset Manager's
three asset classes according to their respective weighting in the fund's
neutral mix (10% - short-term/money market: 40% - bonds; and 50% stocks),
and the Aggressive Asset Allocation Composite Index represents Asset
Manager: Growth's three asset classes according to their respective
weighting in the fund's neutral mix (5% - short-term/money market: 25% -
bonds; and 70% stocks). The following indices are used to calculate the
three asset allocation composite indices: the Salomon Brothers 3-month
T-Bill Total Rate of Return Index, representing the average of T-Bill rates
for each of the prior three months, adjusted to a bond equivalent yield
basis (short-term and money market instruments); the Lehman Brothers
Aggregate Bond Index, a market value weighted performance benchmark for
investment-grade fixed-rate debt issues, including government, corporate,
asset-backed, and mortgaged-backed securities with maturities of at least
one year; and the S&P 500, a widely recognized, unmanaged index of common
stocks. Prior to January 1, 1997, the Conservative Asset Allocation
Composite Index represented Asset Manager: Income's three asset classes
according to their respective weighting in the fund's neutral mix (50% -
short-term instruments: 30% - bonds; and 20% stocks) during that period of
time, between June 1, 1992 and January 1, 1997, the Asset Allocation
Composite Index represented Asset Manager's three asset classes according
to their respective weighting in the fund's neutral mix (20% - short-term
instruments: 40% - bonds; and 40% stocks) during that period of time, and
prior to January 1, 1997, the Aggressive Asset Allocation Composite Index
represented Asset Manager: Growth's three asset classes according to their
respective weighting in the fund's neutral mix (5% - short-term
instruments: 30% - bonds; and 65% stocks) during that period of time. The
following indices were used to calculate the three asset allocation
composite indices: the Salomon Brothers 3-month T-Bill Total Rate of Return
Index; the Lehman Brothers Treasury Bond Index, a widely utilized benchmark
of bond market performance that includes virtually all long-term public
obligations of the U.S. Treasury (bonds): and the S&P 500. Prior to June 1,
1992, the Asset Allocation Composite Index represented Asset Manager's
three asset classes according to their respective weighting in the fund's
neutral mix at that time (30% - money market instruments; 40% - bonds; and
30% stocks). The following indices were used to calculate the three asset
allocation composite indices: the Salomon Brothers 3-month T-Bill Total
Rate of Return Index; the Lehman Brothers Treasury Bond Index; and the S&P
500.
Each fund has the ability to invest in securities that are not included in
any of the indices, and each fund's actual investment portfolio may not
reflect the composition or the weighting of the indices used. The S&P 500
and the asset allocation composite indices include reinvestment of income
or dividends and are based on the prices of unmanaged groups of stocks or
U.S. Treasury obligations. Unlike each fund's returns, the indices do not
include the effect of paying brokerage commissions, spreads, or other costs
of investing. Historical results are used for illustrative purposes only
and do not reflect the past or future performance of the funds.
The following table represents the comparative indices calendar
year-to-year performance:
SALOMON BROTHERS 3-MONTH LEHMAN BROTHERS TREASURY
T-BILL TOTAL RATE OF BOND INDEX S&P 500
RETURN INDEX
1995 5.75% 18.35% 37.58%
1994 4.24 -3.38 1.32
1993 3.09 10.68 10.08
1992 3.61 7.21 7.62
1991 5.75 15.29 30.47
1990 7.90 8.54 -3.10
1989 8.64 14.38 31.69
1988 6.76 6.99 16.61
1987 5.91 2.00 5.10
1986 6.23 15.61 18.56
Effective December 1, 1996, the following information supplements the
similar information located in the "TRUSTEES AND OFFICERS" section
beginning on page 24.
John Todd (47), is Vice President of Fidelity Asset Manager: Income,
Fidelity Asset Manager, and Fidelity Asset Manager: Growth and manager of
their short-term and money market investments, which he has managed since
December 1996. He also manages several other Fidelity funds. Mr. Todd
joined Fidelity in 1981.
(PAGE 2 OF 2)
