SUPPLEMENT TO THE FIDELITY ASSET MANAGER:
INCOME
SM
FIDELITY ASSET MANAGER(Registered trademark)
FIDELITY ASSET MANAGER: GROWTH
SM
NOVEMBER 28, 1997
STATEMENT OF ADDITIONAL INFORMATION
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND ON PAGE
19 IN THE "PERFORMANCE" SECTION.
The following table represents the comparative indices calendar
year-to-year performance:
LEHMAN BROTHERS LEHMAN BROTHERS S&P 500
3-MONTH TREASURY
TREASURY BILL BOND INDEX
INDEX
1996 5.39% 2.70% 22.96%
1995 6.09 18.35 37.58
1994 4.26 -3.38 1.32
1993 3.20 10.68 10.08
1992 2.92 7.21 7.62
1991 6.22 15.29 30.47
1990 8.21 8.54 -3.10
1989 8.74 14.38 31.69
1988 6.40 6.99 16.61
1987 5.93 2.00 5.10
1986 6.57 15.61 18.56
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. For periods after
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 Lehman Brothers
3-month Treasury Bill 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. For periods 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;
for periods 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 for periods 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 are
used to calculate the three asset allocation composite indices during
that period of time: the Lehman Brothers 3-month Treasury Bill 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. For
periods 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 (30% - money market
instruments; 40% - bonds; and 30% stocks) during that period of time.
The following indices are used to calculate the three asset allocation
composite indices during that period of time: the Lehman Brothers
3-month Treasury Bill Index; the Lehman Brothers Treasury Bond Index;
and the S&P 500.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOR ASSET
MANAGER: INCOME FOUND IN THE "INVESTMENT POLICIES AND LIMITATIONS"
SECTION 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)). 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 ASSET
MANAGER FOUND IN THE "INVESTMENT POLICIES AND LIMITATIONS" SECTION ON
PAGE 3.
(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)). 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 ASSET
MANAGER: GROWTH FOUND IN THE "INVESTMENT POLICIES AND LIMITATIONS"
SECTION ON PAGE 4.
(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)). 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 FOUND IN THE
"DISTRIBUTION AND SERVICE PLANS" SECTION ON PAGE 31.
Under each 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 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 the distribution of fund shares.
In addition, each Plan provides that FMR, directly or through FDC, may
make payments to third parties, such as banks or broker-dealers, that
engage in the sale of fund shares, or provide shareholder support
services. Currently, the Board of Trustees has authorized such
payments for each fund's shares.
