FIDELITY ADVISOR SERIES IV, N-30D, 1995-07-25

FIDELITY ADVISOR SERIES IV
N-30D, 1995-07-25

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(registered trademark)
FIDELITY INSTITUTIONAL
SHORT-INTERMEDIATE
GOVERNMENT
PORTFOLIO
CLASS I

SEMIANNUAL REPORT
MAY 31, 1995
ISIG-7-95S
CHECK PAGE NUMBERS !!!

CONTENTS

PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.

PERFORMANCE 4 How the fund has done over time.

FUND TALK 7 The manager's review of fund
performance, strategy and outlook.

INVESTMENT CHANGES 9 A summary of major shifts in the
fund's investments over the past six
months.

INVESTMENTS 10 A complete list of the fund's
investments with their market
values.

FINANCIAL STATEMENTS 12 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.

NOTES 17 Notes to the financial statements.

THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL INFORMATION OF THE SHAREHOLDERS OF THE
FUND. THIS REPORT IS NOT AUTHORIZED FOR DISTRIBUTION TO PROSPECTIVE
INVESTORS IN THE FUND UNLESS PRECEDED OR ACCOMPANIED BY AN
EFFECTIVE PROSPECTUS.
MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED BY,
ANY DEPOSITORY
INSTITUTION. SHARES ARE NOT INSURED BY THE FDIC, THE FEDERAL RESERVE BOARD
OR ANY OTHER AGENCY,
AND ARE SUBJECT TO INVESTMENT RISK, INCLUDING THE POSSIBLE LOSS OF
PRINCIPAL. NEITHER THE FUND NOR
FIDELITY DISTRIBUTORS CORPORATION IS A BANK.
FOR MORE INFORMATION ON ANY FIDELITY FUND INCLUDING CHARGES AND EXPENSES,
CALL THE APPROPRIATE NUMBER LISTED BELOW. READ
THE PROSPECTUS CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
RETIREMENT PLAN LEVEL ACCOUNTS
CORPORATE CLIENTS (800) 962-1375
"NOT FOR PROFIT" CLIENTS (800) 343-0860
FINANCIAL AND OTHER INSTITUTIONS
NATIONWIDE (800) 843-3001
PRESIDENT'S MESSAGE

DEAR SHAREHOLDER:
Although there have been positive market indications so far in 1995, no one
can predict what lies ahead for investors. Last year, stocks posted
below-average returns and bonds had one of the worst years in history. This
downturn followed a period in which the investing environment was generally
very positive.
These market ups and downs are a normal part of investing, and there are
some basic principles that are helpful for investors to remember in
different types of markets.
Keeping in mind that the effects of interest rate changes on your bond
investments will only be "paper" gains or losses unless you sell your
shares, staying in your bond fund may be appropriate if your investment
horizon is at least a year or more. The longer your investing time frame,
the more likely it is that you will retain your principal investment
through both up and down markets. For example, a 10-year time frame, such
as saving for a college education, enables you to weather these ups and
downs in a long-term fund, which has higher potential returns. An
intermediate-length fund could be appropriate if your investment horizon is
two to four years, and a short-term bond fund could be the right choice if
you need your money in one or two years.
If your time horizon is less than a year, you might want to consider moving
some of your bond investment into a money market fund, which seeks income
and a stable share price by investing in high-quality, short-term
investments. Of course, there is no assurance that a money market fund will
achieve its goal, and it is important to remember that money market funds
are not insured or guaranteed by any agency of the U.S. government.
No matter what your investment horizon or portfolio diversity, it makes
good sense to follow a regular investment plan - investing a certain amount
of money at the same time each month or quarter - and to review your
portfolio periodically. A periodic investment plan will not, of course,
assure a profit or protect against a loss.
Remember to contact your investment professional if you need help with your
investments.
Best regards,
Edward C. Johnson 3d
PERFORMANCE: THE BOTTOM LINE

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
PERIODS ENDED MAY 31, 1995 PAST 6 PAST 1 PAST 5 LIFE OF
MONTHS YEAR YEARS FUND

Fidelity Institutional Short-Intermediate Government
Portfolio - Class I 7.28% 8.22% 43.45% 84.72%

Lehman Brothers 1-3 Year Government Bond Index 6.23% 7.36% 42.38% n/a

Salomon Brothers Treasury/Agency 1-5 Year Index 7.52% 8.15% 47.32% n/a

Average Short U.S. Government Fund 6.41% 6.65% 39.70% n/a

Consumer Price Index 1.53% 3.19% 17.80% 37.99%

</TABLE>

CUMULATIVE TOTAL RETURNS show Class I's performance in percentage terms
over a set period - in this case, six months, one year, five years, or
since the fund began on November 10, 1986. For example, if you invested
$1,000 in a fund that had a 5% return over the past year, the value of your
investment would be $1,050. You can compare Class I's returns to the
performance of the Lehman Brothers 1-3 Year Government Bond Index and the
Salomon Brothers Treasury/Agency 1-5 Year Index - both broad measures of
the performance of U.S. government bonds. To measure how Class I stacked up
against its peers, you can compare it to the average short U.S. government
fund, which reflects the performance of 137 funds with similar objectives
tracked by Lipper Analytical Services over the past six months. These
benchmarks include reinvested dividends and capital gains, if any.
Comparing Class I's performance to the consumer price index (CPI) helps
show how the Class did compared to inflation. (The CPI returns begin on the
month end closest to the fund's start date.)
AVERAGE ANNUAL TOTAL RETURNS

<TABLE>
<CAPTION>
<S> <C> <C> <C>
PERIODS ENDED MAY 31, 1995 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

Fidelity Institutional Short-Intermediate Government 8.22% 7.48% 7.43%
Portfolio - Class I

Lehman Brothers 1-3 Year Government Bond Index 7.36% 7.32% n/a

Salomon Brothers Treasury/Agency 1-5 Year Index 8.15% 8.06% n/a

Average Short U.S. Government Fund 6.65% 6.89% n/a

Consumer Price Index 3.19% 3.33% 3.82%

</TABLE>

AVERAGE ANNUAL TOTAL RETURNS take Class I shares' actual (or cumulative)
return and show you what would have happened if Class I had performed at a
constant rate each year.
$100,000 OVER LIFE OF FUND
Fidelity InstituSalomon Brothers T
11/30/86 100000.00 100000.00
12/31/86 100232.45 100210.00
01/31/87 100984.52 100981.62
02/28/87 101297.04 101466.33
03/31/87 101534.48 101314.13
04/30/87 100733.60 100402.30
05/31/87 101025.36 100382.22
06/30/87 102031.83 101496.46
07/31/87 102646.76 101922.75
08/31/87 102870.96 101973.71
09/30/87 102770.50 101249.70
10/31/87 104186.29 103710.07
11/30/87 104953.26 104342.70
12/31/87 105853.42 105156.57
01/31/88 107712.94 107228.15
02/29/88 108817.08 108203.93
03/31/88 108720.94 108182.29
04/30/88 108785.98 108182.29
05/31/88 108647.18 107976.74
06/30/88 109881.56 109272.46
07/31/88 110106.53 109206.90
08/31/88 110213.93 109370.71
09/30/88 111588.10 110836.28
10/31/88 112484.85 112121.98
11/30/88 112515.68 111550.16
12/31/88 112780.97 111684.02
01/31/89 113748.45 112655.67
02/28/89 113857.27 112497.95
03/31/89 114282.70 112947.94
04/30/89 115949.64 114777.70
05/31/89 117612.63 116786.31
06/30/89 119764.15 119367.29
07/31/89 121326.05 121432.34
08/31/89 120733.67 120242.30
09/30/89 121440.29 120927.68
10/31/89 123395.24 123080.20
11/30/89 124456.69 124224.84
12/31/89 125011.52 124672.05
01/31/90 124905.35 124447.64
02/28/90 125514.30 124970.32
03/31/90 126068.16 125295.25
04/30/90 126226.71 125370.42
05/31/90 128132.86 127539.33
06/30/90 129431.74 129044.30
07/31/90 130900.35 130812.20
08/31/90 131407.27 130903.77
09/30/90 132295.69 132108.09
10/31/90 133615.13 133733.01
11/30/90 135084.39 135230.82
12/31/90 136609.16 137015.87
01/31/91 137853.22 138303.82
02/28/91 138891.95 139023.00
03/31/91 139756.92 139954.45
04/30/91 141155.69 141423.98
05/31/91 142195.47 142230.09
06/30/91 142497.86 142614.11
07/31/91 143853.21 144111.56
08/31/91 146120.12 146374.11
09/30/91 147346.73 148408.71
10/31/91 148929.68 150056.05
11/30/91 150365.93 151811.71
12/31/91 154016.64 154696.13
01/31/92 152549.86 153907.18
02/29/92 153239.30 154368.90
03/31/92 153175.74 153982.98
04/30/92 154315.48 155553.60
05/31/92 156283.47 157358.03
06/30/92 158139.65 159403.68
07/31/92 159806.46 161842.56
08/31/92 161526.84 163541.90
09/30/92 163504.68 165488.05
10/31/92 161646.75 163866.27
11/30/92 161973.71 163276.35
12/31/92 163773.02 165121.37
01/31/93 165722.10 167779.83
02/28/93 167247.90 169642.18
03/31/93 168029.81 170235.93
04/30/93 168658.86 171597.82
05/31/93 169019.66 170997.23
06/30/93 170363.41 172844.00
07/31/93 170873.05 173172.40
08/31/93 171939.57 175233.15
09/30/93 172350.90 175846.47
10/31/93 172624.54 176162.99
11/30/93 172552.26 175810.67
12/31/93 173380.52 176531.49
01/31/94 174965.54 177943.74
02/28/94 173462.42 176235.48
03/31/94 170555.17 174455.50
04/30/94 169677.98 173478.55
05/31/94 169851.71 173704.07
06/30/94 170052.87 173982.00
07/31/94 171933.26 175826.21
08/31/94 172405.45 176371.27
09/30/94 171630.57 175418.87
10/31/94 171952.96 175646.91
11/30/94 171334.85 174715.98
12/31/94 171893.89 175170.24
01/31/95 174332.02 177902.90
02/28/95 177247.64 180838.30
03/31/95 178140.11 181832.91
04/30/95 180124.79 183687.60
05/31/95 183807.15 187894.05
$100,000 OVER LIFE OF FUND: Let's say you invested $100,000 in Fidelity
Institutional Short-Intermediate Government Portfolio - Class I on November
30, 1986, shortly after the fund started. As the chart shows, by May 31,
1995, the value of your investment would have grown to $183,807 - an 83.81%
increase on your initial investment. For comparison, look at how the
Salomon Brothers Treasury/Agency 1-5 Year Index did over the same period.
With dividends reinvested, the same $100,000 would have grown to $187,894 -
an 87.89% increase. Beginning with this report, the fund will compare its
performance to the Salomon Brothers Treasury/Agency 1-5 Year Index rather
than the Lehman Brothers Government Bond Index. Although the difference in
performance between the two indexes is small, the Salomon Brothers
Treasury/Agency 1-5 Year Index includes fewer securities and is more
straightforward to monitor on a daily basis. For comparison purposes, both
indexes are shown on Performance: The Bottom Line, Page 4.

UNDERSTANDING
PERFORMANCE
How a fund did yesterday is no guarantee of
how it will do tomorrow. Bond prices, for
example, generally move in the opposite
direction of interest rates. In turn, the share
price, return, and yield of a fund that invests in
bonds will vary. That means if you sell your
shares during a market downturn, you might
lose money. But if you can ride out the market's
ups and downs, you may have a gain.
(checkmark)
TOTAL RETURN COMPONENTS

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SIX MONTHS YEARS ENDED NOVEMBER 30,
ENDED

MAY 31, 1995 1994 1993 1992 1991 1990

Dividend return 3.81% 6.07% 6.12% 6.90% 8.25% 8.96%

Capital appreciation return 3.47% -6.78% 0.41% 0.82% 3.06% -0.42%

Total return 7.28% -0.71% 6.53% 7.72% 11.31% 8.54%

</TABLE>

DIVIDEND returns and capital appreciation returns are both part of a bond
fund's total return. A dividend return reflects the actual dividends paid
by the fund. A capital appreciation return reflects both the amount paid by
the fund to shareholders as capital gain distributions and changes in the
fund's share price. Both returns assume the dividends or gains are
reinvested.
DIVIDENDS AND YIELD
PERIODS ENDED MAY 31, 1995 PAST 1 PAST 6 PAST 1
MONTH MONTHS YEAR

Dividends per share 5.20(cents) 33.81(cents) 67.11(cents)

Annualized dividend rate 6.47% 7.28% 7.18%

30-day annualized yield 6.46% - -

DIVIDENDS per share show the income paid by Class I for a set period and do
not reflect any tax reclassifications. If you annualize this number, based
on an average net asset value of $9.47 over the past month, $9.32 over the
past six months and $9.35 over the past year, you can compare Class I's
income over these three periods.
The 30-day annualized YIELD is a standard formula for all bond funds based
on the yields of the bonds in the fund, averaged over the past 30 days.
This figure shows you the yield characteristics of the fund's investments
at the end of the period. It also helps you compare funds from different
companies on an equal basis.
PERFORMANCE INFORMATION: CLASS II
PERIODS ENDED MAY 31, 1995 PAST 6 PAST 1 PAST 5 LIFE OF
MONTHS YEAR YEARS FUND

Cumulative total return 7.15% 7.95% 42.94% 84.06%

Average annual total return n/a 7.95% 7.41% 7.39%

PAST 1
MONTH

30-day annualized yield 6.22%

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SIX MONTHS YEARS ENDED NOVEMBER 30,
ENDED

TOTAL RETURN COMPONENTS MAY 31, 1995 1994* 1993 1992 1991 1990

Dividend return 3.68% 5.37% 6.12% 6.90% 8.25% 8.96%

Capital appreciation return 3.47% -6.78% 0.41% 0.82% 3.06% -0.42%

Total return 7.15% -1.41% 6.53% 7.72% 11.31% 8.54%

</TABLE>

* For the period 12/30/93 through 11/30/94.
On December 30, 1993, the fund commenced sale of Class II shares with a
0.25% 12b-1 fee. All performance information for Class II prior to December
30, 1993 reflects the performance of Class I and therefore does not reflect
Class II's 12b-1 fee, which, if included, would have lowered Class II's
performance.
FUND TALK: THE MANAGER'S OVERVIEW

An interview with
Curt
Hollingsworth,
Portfolio Manager
of Fidelity
Institutional
Short-Intermediat
e Government
Portfolio - Class I
Q. CURT, HOW HAS THE FUND PERFORMED?
A. It has performed well. For the six months ended May 31, 1995, Class I
had a total return of 7.28%, compared to a total return of 6.41% for the
average short U.S. government bond fund tracked by Lipper Analytical
Services. For the 12 months ended May 31, Class I returned 8.22%, while the
average short U.S. government bond fund had a total return of 6.65%,
according to Lipper. For the six- and 12-month periods, the Salomon
Brothers Treasury/Agency 1-5 Year Index posted returns of 7.52% and 8.15%,
respectively.
Q. WHAT IS MEANT BY TOTAL RETURN?
A. We recently held focus groups around the country with a number of bond
investors who have holdings in Fidelity funds as well as other fund
companies. One point became very clear - many bond fund investors don't
understand total return. Unfortunately, they watch a fund's share price,
and if it's down 5% over a year, they assume they've lost 5% of their
money. But they're forgetting that they have received dividends every month
that offset much of the price decline. Investors need to know that interest
income is the main source of return for a bond fund over the long term.
Fortunately, total return is easy to explain by using a "dollars in,
dollars out" example. If someone invested $100 in this bond fund a year ago
and reinvested all dividends and capital gains, then their investment would
be worth $108.22 today. That is what is meant by a cumulative total return
of 8.22%.
Q. WHAT HELPED THE FUND BEAT THE AVERAGE FUND?
A. The fund took advantage of good opportunities in U.S. agency securities
during the period. Short-term agency issues reached their widest yield
spreads in several years, so I more than doubled the fund's weighting in
them by the end of April. By yield spread I mean a yield advantage, or the
difference in yield between agency issues and U.S. Treasuries with the same
maturities. By the end of April, the spread had tightened, causing the U.S.
agency securities to outperform comparable Treasury notes. As a result, I
started taking some profits.
Q. YOU'VE REDUCED THE FUND'S INVESTMENTS IN MORTGAGE-BACKED SECURITIES TO
19.3% AS OF MAY 31. WHAT'S THE STORY THERE?
A. Early in the period, the fund owned more mortgage-backed securities
because they offered a significant yield advantage over comparable Treasury
securities. When the yield spread between mortgage-backed securities and
U.S. Treasuries increases - as it had by early 1994 - mortgage securities
typically do quite well going forward. But by the end of 1994, mortgage
securities offered only a small yield advantage, so I started selling them
to take profits. In their place, I bought the agency securities I've just
mentioned.
Q. HOW HAVE YOU POSITIONED THE FUND IN TERMS OF BOND MATURITIES?
A. A year ago, the fund had a relatively large weighting in cash, which
obviously is a very short-term investment, and also in longer-term
securities. At that point, the fund was relatively light in intermediate
securities with maturities of two to three years. As interest rates rose,
yields on intermediate-term securities rose more than yields on longer-term
securities. This strategy, known as a "barbell," helped the fund's
performance through most of 1994.
Q. HOW HAVE YOU ALTERED YOUR STRATEGY NOW THAT YIELDS HAVE FALLEN IN 1995?
A. At the end of 1994, the yield curve, or the difference in yield between
securities with various maturities, was quite flat. When that occurs,
longer-term bonds offer very little additional yield over shorter
securities. Based on historical information, I felt that the yield curve
wouldn't flatten much more, and, if anything, might steepen a little. In
the fourth quarter of 1994, I moved the fund to a "laddered" maturity
distribution, meaning it was more diversified across securities with
maturities ranging from one to five years in most cases. In fact, the curve
started to steepen in December, and the fund benefited from having a
laddered structure.
Q. WHAT DO YOU SEE LOOKING OUT OVER THE NEXT SIX MONTHS?
A. It's very difficult to predict the direction of interest rates. As a
result, I don't intend to actively manage the fund's duration in
anticipation of interest rate changes. Instead, I will try to manage the
fund so that it will have approximately the same duration as the Salomon
Brothers Treasury/Agency 1-5 Year Index. Duration is an estimate of how
sensitive the fund's share price is to a change in comparable interest
rates. As I mentioned earlier, based on the current shape of the yield
curve, I have laddered the fund. During the next six months, if I concluded
that the yield curve were likely to steepen further, I might give the fund
a "bulleted" maturity distribution by overweighting intermediate securities
such as two-year and three-year Treasury notes, whose yields would drop
more than the yields on longer-term bonds, if the yield curve did steepen.
As far as sector weights go, I most likely will invest more of the fund in
mortgage-backed securities when they once again offer significantly higher
yields than comparable Treasuries.
FUND FACTS
GOAL: to provide a high level of current income
consistent with preserving principal
START DATE: November 10, 1986
SIZE: as of May 31, 1995, more than
$352 million
MANAGER: Curt Hollingsworth, since 1987;
manager, Spartan Limited Maturity
Government, Fidelity Short-Intermediate
Government, Spartan Long-Term Government
Bond and Spartan Short-Intermediate
Government funds; Fidelity Government
Securities Fund, 1990 - February 1995;
Fidelity Advisor Government Investment Fund,
1992 - February 1995; joined Fidelity in 1983
(checkmark)
CURT HOLLINGSWORTH ON THE DOLLAR AND
ITS IMPACT ON INTEREST RATES:
"The weakening U.S. dollar has garnered a lot
of media attention lately. Many analysts have
forecast that the Federal Reserve Board might
be forced to raise interest rates in order to
support the dollar. However, in my view, the
exchange rate won't be the driving factor in
determining Fed policy. Instead, inflation and
the economy will play bigger roles in
determining Fed actions.
"It's important to remember that most of today's
headlines relate to the dollar's value relative to
the yen or the deutsche mark. However, the
dollar has been strong against the currencies of
Mexico and Canada, two of our three biggest
trading partners. In fact, while the value of the
dollar has fallen against the yen and deutsche
mark since 1990, it has risen against a broader
index of 101 foreign currencies that is weighted
by the volume of trade with the United States."
(solid bullet) Most of the agency securities the manager
was selling during the period were callable
bonds, meaning they were redeemable before
their stated maturity dates. The manager
bought them at a deep discount. As short-term
Treasury rates dropped significantly over the
past few months, the risk the bonds would be
called increased, because the point where it
would be possible for the issuers to redeem
them and reissue new ones at lower rates was
near. Because the market hadn't priced in the
increased call risk, the manager was able to sell
the securities at prices that were high in light of
historical levels.
(solid bullet) With recent drops in short-term Treasury
yields, mortgage-backed securities started to
become inexpensive, relative to Treasuries.
One indication of this is that mortgage yield
spreads are significantly wider today than they
were at the beginning of the year.
INVESTMENT CHANGES

COUPON DISTRIBUTION AS OF MAY 31, 1995
% OF FUND'S INVESTMENTS % OF FUND'S INVESTMENTS
6 MONTHS AGO

Under 6% 20.5 0.9

6 - 6.99% 13.6 2.3

7 - 7.99% 13.3 16.2

8 - 8.99% 26.0 15.7

9 - 9.99% 9.9 50.6

10 - 10.99% 2.4 2.7

11 - 11.99% 0.7 0.7

12 - 12.99% 1.9 3.9

13% and over 0.4 0.2

Zero Coupon Bonds 0.1 0.1

COUPON DISTRIBUTION SHOWS THE RANGE OF STATED INTEREST RATES ON THE FUND'S
INVESTMENTS, EXCLUDING REPURCHASE AGREEMENTS.
AVERAGE YEARS TO MATURITY AS OF MAY 31, 1995
6 MONTHS AGO

Years 3.3 4.0

AVERAGE YEARS TO MATURITY IS BASED ON THE AVERAGE TIME UNTIL PRINCIPAL
PAYMENTS ARE EXPECTED FROM EACH OF THE FUND'S BONDS, WEIGHTED BY DOLLAR
AMOUNT.
DURATION AS OF MAY 31, 1995
6 MONTHS AGO

Years 2.2 2.6

DURATION SHOWS HOW MUCH A BOND FUND'S PRICE FLUCTUATES WITH CHANGES IN
COMPARABLE INTEREST RATES. IF RATES RISE 1%, FOR EXAMPLE, A FUND WITH A
FIVE-YEAR DURATION IS LIKELY TO LOSE ABOUT 5% OF ITS VALUE. OTHER FACTORS
ALSO CAN INFLUENCE A BOND FUND'S PERFORMANCE AND SHARE PRICE. ACCORDINGLY,
A BOND FUND'S ACTUAL PERFORMANCE MAY DIFFER FROM THIS EXAMPLE.
ASSET ALLOCATION
AS OF MAY 31, 1995 AS OF NOVEMBER 30, 1994
Row: 1, Col: 1, Value: 11.2
Row: 1, Col: 2, Value: 2.0
Row: 1, Col: 3, Value: 67.59999999999999
Row: 1, Col: 4, Value: 19.3
U.S. government
agency mortgage-
backed securities 30.5%**
U.S. government
and government
agency obligations 62.3%
Collateralized
mortgage obligations
(CMOs) 0.5%
Short-term
investments 6.7%
U.S. government
agency mortgage-
backed securities 19.3%*
U.S. government
and government
agency obligations 67.6%
Collateralized
mortgage obligations
(CMOs) 1.9%
Short-term
investments 11.2%
Row: 1, Col: 1, Value: 6.7
Row: 1, Col: 2, Value: 1.0
Row: 1, Col: 3, Value: 62.3
Row: 1, Col: 4, Value: 30.5
* GNMA SECURITIES - 1.4%
** GNMA SECURITIES - 6.7%

INVESTMENTS MAY 31, 1995 (UNAUDITED)

Showing Percentage of Total Value of Investment in Securities

U.S. GOVERNMENT AND GOVERNMENT
AGENCY OBLIGATIONS - 67.6%
PRINCIPAL VALUE
AMOUNT (NOTE 1)
U.S. TREASURY OBLIGATIONS - 46.4%
7 7/8%, 2/15/96 $ 9,100,000 $ 9,222,304
4 3/8%, 11/15/96 9,150,000 8,962,700
8 1/2%, 5/15/97 45,660,000 47,857,157
8 3/4%, 10/15/97 4,260,000 4,523,566
5 3/8%, 5/31/98 2,250,000 2,213,798
5 1/8%, 6/30/98 25,110,000 24,525,439
5 1/4%, 7/31/98 8,300,000 8,126,198
9 1/4%, 8/15/98 10,100,000 11,046,875
4 3/4%, 8/31/98 1,750,000 1,686,563
6 3/4%, 6/30/99 27,000,000 27,683,370
7 1/8%, 9/30/99 12,453,000 12,956,973
158,804,943
U.S. GOVERNMENT AGENCY OBLIGATIONS - 21.2%
Federal Agricultural Mortgage Corporation:
6.44%, 5/28/96 3,500,000 3,512,565
6.92%, 8/10/00 1,040,000 1,061,125
Federal Home Loan Bank:
7.59%, 12/23/96 1,050,000 1,075,266
6.52%, 4/24/97 830,000 837,130
5.60%, 2/23/99 (callable) 3,000,000 2,908,125
Federal Home Loan Mortgage Corporation:
4.78%, 2/10/97 440,000 430,581
6.47%, 7/7/97 610,000 614,599
5.60%, 3/1/99 (callable) 1,870,000 1,812,731
5.40%, 11/1/00 600,000 570,083
Federal National Mortgage Association:
8.45%, 11/4/96 3,000,000 3,094,710
5.20%, 7/10/98 (callable) 470,000 455,992
3%, 7/13/98 (b) 430,000 430,202
9.40%, 8/10/98 (b ) 600,000 654,654
4.70%, 9/10/98 (callable) 1,510,000 1,439,750
4 7/8%, 10/15/98 (callable) 200,000 191,500
4.82%, 10/21/98 (callable) 800,000 768,264
4.38%, 10/23/98 (callable) 530,000 510,024
4.94%, 10/30/98 (callable) 4,060,000 3,891,891
0%, 11/30/99 610,000 460,983
Government Trust Certificates
(assets of Trust guaranteed by U.S.
Government through Defense Security
Assistance):
Class 1-B, 9 1/8%, 11/15/96 659,469 673,146
Class 1-C, 9 1/4%, 11/15/01 1,125,000 1,238,704
Class 2-E, 9.40%, 5/15/02 2,600,000 2,874,846
Class T-2, 9 5/8%, 5/15/02 40,000 44,300

PRINCIPAL VALUE
AMOUNT (NOTE 1)
Government Trust Certificates
(assets of Trust guaranteed by U.S.
Government through Export-Import
Bank):
Series 1992-A, 7.02%, 9/1/04 $ 1,268,250 $ 1,297,766
Series 1994-F, 8.187%, 12/15/04 14,007,928 14,877,540
Private Export Funding Corporation:
Series CC (secured), 9 1/2%, 3/31/99 2,920,000 3,250,953
5.65%, 3/15/03 784,000 762,871
State of Israel (guaranteed by U.S.
Government through Agency for
International Development):
7 3/4%, 4/1/98 4,781,146 4,894,750
4 7/8%, 9/15/98 5,750,000 5,523,594
6%, 2/15/99 240,000 238,051
7 3/4%, 11/15/99 8,749,000 9,220,221
5 3/4%, 3/15/00 950,000 930,406
Student Loan Marketing Association
7.56%, 12/9/96 290,000 296,140
Tennessee Valley Authority 8 1/4%,
11/15/96 1,320,000 1,359,006
Twelve Federal Land Banks 7.95%,
10/21/96 410,000 420,250
TOTAL U.S. GOVERNMENT
AGENCY OBLIGATIONS 72,622,719
TOTAL U.S. GOVERNMENT AND
GOVERNMENT AGENCY OBLIGATIONS
(Cost $227,495,940) 231,427,662
U.S. GOVERNMENT AGENCY -
MORTGAGE-BACKED SECURITIES - 19.3%
FEDERAL HOME LOAN MORTGAGE CORPORATION - 10.7%
5 1/2%, 5/1/98 94,690 93,092
6%, 2/1/98 to 5/1/98 456,679 453,254
6 1/2%, 4/1/98 to 5/1/08 2,253,372 2,229,685
7%, 2/1/97 to 12/1/97 444,246 449,937
7 1/2%, 12/1/96 to 11/1/12 3,058,888 3,096,642
8%, 9/1/07 to 12/1/09 4,704,058 4,806,876
8 1/2%, 5/1/06 to 5/1/17 4,369,215 4,520,989
9%, 12/1/07 to 3/1/22 3,980,535 4,147,017
9 1/2%, 6/1/17 to 2/1/23 4,493,406 4,718,664
10%, 12/1/11 to 6/1/20 1,263,778 1,354,061
10 1/2%, 1/1/16 to 12/1/20 4,697,617 5,038,068
11%, 6/1/13 to 1/1/19 91,729 98,666
U.S. GOVERNMENT AGENCY -
MORTGAGE-BACKED SECURITIES - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
FEDERAL HOME LOAN MORTGAGE CORPORATION - CONTINUED
11 3/4%, 7/1/13 $ 56,349 $ 60,687
12%, 9/1/11 to 10/1/13 56,387 61,319
12 1/4%, 11/1/14 156,887 170,185
12 1/2%, 8/1/10 to 6/1/19 4,816,745 5,344,826
36,643,968
FEDERAL NATIONAL MORTGAGE ASSOCATION - 7.2%
6%, 6/1/01 (a) 5,100,000 5,005,956
6%, 6/1/01 to 9/08 725,303 703,945
6 1/2%, 6/1/09 (a) 200,000 197,812
6 1/2%, 7/1/00 to 2/1/10 3,113,655 3,074,344
7%, 6/1/00 to 1/1/10 2,632,096 2,644,398
7 1/2%, 3/1/99 to 1/1/10 25,032 23,214
8%, 5/1/99 to 8/1/09 1,200,270 1,234,110
8 1/4%, 12/1/01 1,902,122 2,025,760
8 1/2%, 10/1/98 to 9/1/23 3,895,537 4,045,179
9%, 11/1/97 to 8/1/21 2,586,035 2,701,173
9 1/2%, 5/1/09 to 11/1/21 657,113 690,456
10%, 1/1/17 1,691,730 1,833,768
12 1/2%, 3/1/16 308,642 342,013
12 3/4%, 10/1/13 30,077 33,253
24,555,381
GOVERNMENT NATIONAL MORTGAGE ASSOCATION - 1.4%
8 1/2%, 5/15/16 to 4/15/17 694,260 727,241
9%, 1/15/05 to 2/15/17 1,838,418 1,941,420
11%, 10/1/13 82,289 88,975
11 1/2%, 3/15/13 to 8/15/13 202,326 225,846
12%, 1/1/14 to 3/1/14 271,989 299,528
12 1/2%, 10/15/14 to 11/15/14 170,111 193,187
13%, 8/15/14 391,955 439,226
13 1/2%, 7/15/11 96,118 108,853
15%, 7/15/11 to 10/15/12 571,411 661,763
4,686,039
TOTAL U.S. GOVERNMENT AGENCY -
MORTGAGE-BACKED SECURITIES
(Cost $65,238,473) 65,885,388
COLLATERALIZED MORTGAGE OBLIGATIONS - 1.9%
U.S. GOVERNMENT AGENCY - 1.9%
Federal Home Loan Mortgage Corporation:
sequential pay Series 1353, Class A,
5 1/2%, 11/15/04 298,172 289,134
planned amortization class, Series 1661,
Class PE, 6%, 11/15/06 400,000 389,248

PRINCIPAL VALUE
AMOUNT (NOTE 1)
Federal National Mortgage Association
planned amortization class:
Series 1992, Class 155-D,
6.20%, 11/25/01 $ 700,000 $ 691,906
Series 1993, Class 11-C,
5 3/4%, 4/25/02 3,600,000 3,556,125
Federal National Mortgage Association
Series 1987-2, Z tranche, 11%,
11/25/17 1,591,325 1,740,014
TOTAL COLLATERALIZED
MORTGAGE OBLIGATIONS
(Cost $6,483,268) 6,666,427
REPURCHASE AGREEMENTS - 11.2%
MATURITY
AMOUNT
Investments in repurchase agreements
(U.S. Treasury obligations) in a joint
trading account at 6.13% dated
5/31/95 due 6/1/95 $ 38,294,520 38,288,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $337,505,681) $ 342,267,477
LEGEND
(a) Security purchased on a delayed delivery basis. Interest rate to be
determined at settlement date (see Note 2 of Notes to Financial
Statements).
(b) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
INCOME TAX INFORMATION
At May 31, 1995, the aggregate cost of investment securities for income tax
purposes was $337,509,439. Net unrealized appreciation aggregated
$4,758,038, of which $5,514,342 related to appreciated investment
securities and $756,304 related to depreciated investment securities.
At November 30, 1994, the fund had a capital loss carryforward of
approximately $14,816,000 which will expire on November 30, 2002.
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
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<S> <C> <C>
MAY 31, 1995 (UNAUDITED)

ASSETS 1. 2.

3.Investment in securities, at value (including repurchase agreements of $38,288,000) 4. $ 342,267,477
(cost $337,505,681) - See accompanying schedule

5.Cash 6. 60,522

7.Receivable for investments sold 8. 11,871,097

9.Receivable for fund shares sold 10. 28,143

11.Interest receivable 12. 4,226,466

13. 14.TOTAL ASSETS 15. 358,453,705

LIABILITIES 16. 17.

18.Payable for investments purchased $ 920,995 19.
Regular delivery

20. Delayed delivery 5,166,881 21.

22.Distributions payable 160,484 23.

24.Accrued management fee 130,135 25.

26.Distribution fees payable 208 27.

28. 29.TOTAL LIABILITIES 30. 6,378,703

31.NET ASSETS 32. $ 352,075,002

33.Net Assets consist of: 34. 35.

36.Paid in capital 37. $ 367,232,383

38.Undistributed net investment income 39. 462,450

40.Accumulated undistributed net realized gain (loss) on investments 41. (20,381,627)

42.Net unrealized appreciation (depreciation) on investments 43. 4,761,796

44.NET ASSETS 45. $ 352,075,002

CLASS I: 46. $9.53
NET ASSET VALUE, offering price and redemption price per share ($351,969,376 (divided by) 36,915,307
shares)

CLASS II: 47. $9.53
NET ASSET VALUE, offering price and redemption price per share ($105,626 (divided by) 11,082 shares)

</TABLE>

STATEMENT OF OPERATIONS

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<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED MAY 31, 1995 (UNAUDITED)

INVESTMENT INCOME 49. $ 13,325,802
48.Interest

EXPENSES 50. 51.

52.Management fee $ 761,843 53.

54.Distribution fees - Class II 125

55.Non-interested trustees' compensation 856

56.Interest 1,821 57.

58. 59.TOTAL EXPENSES 60. 764,645

61.62.NET INVESTMENT INCOME 63. 12,561,157

REALIZED AND UNREALIZED GAIN (LOSS) 65. (5,240,767)
64.Net realized gain (loss) on investment securities

66.Change in net unrealized appreciation (depreciation) on investment securities 67. 16,636,816

68.69.NET GAIN (LOSS) 70. 11,396,049

71.72.NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 73. $ 23,957,206

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR ENDED
ENDED NOVEMBER 30,
MAY 31, 1995 1994
(UNAUDITED)

INCREASE (DECREASE) IN NET ASSETS

74.Operations $ 12,561,157 $ 24,960,165
Net investment income

75. Net realized gain (loss) (5,240,767) (17,869,674)

76. Change in net unrealized appreciation (depreciation) 16,636,816 (9,160,828)

77. 78.NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 23,957,206 (2,070,337)

79.Distributions to shareholders (12,314,551) (22,380,525)
Net investment income
Class I

80. Class II (3,544) (5,500)

81. In excess of net realized gain - Class I - (314,479)

82. 83.TOTAL DISTRIBUTIONS (12,318,095) (22,700,504)

84.Net increase (decrease) in net assets resulting from share transactions 548,838 19,722,651

85. 86.TOTAL INCREASE (DECREASE) IN NET ASSETS 12,187,949 (5,048,190)

NET ASSETS 87. 88.

89. Beginning of period 339,887,053 344,935,243

90. End of period (including undistributed net investment income of $462,450 and $219,388, $ 352,075,002 $ 339,887,053
respectively)

</TABLE>

FINANCIAL HIGHLIGHTS - CLASS I
91. SIX MONTHS YEARS ENDED NOVEMBER 30,
ENDED
MAY 31, 1995

92. (UNAUDITED) 1994 C 1993 1992 1991 1990

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<CAPTION>
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93.SELECTED PER-SHARE DATA

94.Net asset value, beginning of period $ 9.210 $ 9.890 $ 9.850 $ 9.770 $ 9.480 $ 9.520

95.Income from Investment Operations

96. Net investment income .345 .597 .654 .721 .747 .813

97. Net realized and unrealized gain (loss) on .313 (.665) (.022) .014 .286 (.040)
investments

98. Total from investment operations .658 (.068) .632 .735 1.033 .773

99.Less Distributions

100. From net investment income (.338) (.602) (.592) (.655) (.743) (.813)

101. In excess of net realized gain - (.010) - - - -

102. Total distributions (.338) (.612) (.592) (.655) (.743) (.813)

103.Net asset value, end of period $ 9.530 $ 9.210 $ 9.890 $ 9.850 $ 9.770 $ 9.480

104.TOTAL RETURN B 7.28% (.71) 6.53% 7.72% 11.31% 8.54%
%

105.RATIOS AND SUPPLEMENTAL DATA

106.Net assets, end of period (000 omitted) $ 351,969 $ 339,788 $ 344,935 $ 188,918 $ 171,228 $ 142,211

107.Ratio of expenses to average net assets .45% .45% .45% .45% .45% .45%
A

108.Ratio of net investment income to average net 7.43% 7.06% 7.14% 7.29% 7.77% 8.65%
assets A

109.Portfolio turnover 248% 303% 351% 355% 192% 252%
A

</TABLE>

A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C EFFECTIVE DECEMBER 1, 1993, THE FUND ADOPTED STATEMENT OF POSITION 93-2,
"DETERMINATION, DISCLOSURE, AND FINANCIAL STATEMENT PRESENTATION OF INCOME,
CAPITAL GAIN, AND RETURN
OF CAPITAL DISTRIBUTIONS BY INVESTMENT COMPANIES." AS A RESULT, NET
INVESTMENT INCOME PER SHARE MAY REFLECT CERTAIN RECLASSIFICATIONS RELATED
TO BOOK TO TAX DIFFERENCES.
FINANCIAL HIGHLIGHTS - CLASS II

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<CAPTION>
<S> <C> <C>
110. SIX MONTHS YEAR ENDED
ENDED NOVEMBER 30,
MAY 31, 1995

111. (UNAUDITED) 1994 C

112.SELECTED PER-SHARE DATA

113.Net asset value, beginning of period $ 9.210 $ 9.880

114.Income from Investment Operations

115. Net investment income .333 .524

116. Net realized and unrealized gain (loss) on investments .313 (.662)

117. Total from investment operations .646 (.138)

118.Less Distributions

119. From net investment income (.326) (.532)

120.Net asset value, end of period $ 9.530 $ 9.210

121.TOTAL RETURN B 7.15% (1.41)%

122.RATIOS AND SUPPLEMENTAL DATA

123.Net assets, end of period (000 omitted) $ 106 $ 99

124.Ratio of expenses to average net assets .70% A .70% A

125.Ratio of net investment income to average net assets 7.18% A 6.79% A

126.Portfolio turnover 248% A 303%

</TABLE>

A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C FOR THE PERIOD DECEMBER 30,1993 (COMMENCEMENT OF SALES OF CLASS II
SHARES) TO NOVEMBER 30, 1994.
NOTES TO FINANCIAL STATEMENTS
For the period ended May 31, 1995 (Unaudited)

1. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity Institutional Short-Intermediate Government Portfolio (the fund)
is a fund of Fidelity Advisor Series IV (the trust) and is authorized to
issue an unlimited number of shares. The trust is registered under the
Investment Company Act of 1940, as amended (the 1940 Act), as an open-end
management investment company organized as a Massachusetts business trust.
The fund offers Class I and Class II shares, each of which has equal rights
as to assets and voting privileges. Each class has exclusive voting rights
with respect to its distribution plan. The fund commenced sale of Class II
shares on December 30, 1993. Investment income, realized and unrealized
capital gains and losses, and the common expenses of the fund are allocated
on a prorata basis to each class based on the relative net assets of each
class to the total net assets of the fund. Each class of shares differs in
its respective distribution fees and expenses.
The following summarizes the significant accounting policies of the fund:
SECURITY VALUATION. Securities are valued based upon a computerized matrix
system and/or appraisals by a pricing service, both of which consider
market transactions and dealer-supplied valuations. Short-term securities
maturing within sixty days of their purchase date are valued either at
amortized cost or original cost plus accrued interest, both of which
approximate current value. Securities for which market quotations are not
readily available are valued at their fair value as determined in good
faith under consistently applied procedures under the general supervision
of the Board of Trustees.
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, the fund is not subject to income taxes to
the extent that it distributes substantially all of its taxable income for
its fiscal year. The schedule of investments includes information regarding
income taxes under the caption "Income Tax Information."
INVESTMENT INCOME. Interest income, which includes accretion of original
issue discount, is accrued as earned.
DISTRIBUTIONS TO SHAREHOLDERS. Distributions are recorded on the
ex-dividend date. Income dividends are declared separately for each class,
while capital gain distributions are declared at the fund level and
allocated to each class on a prorata basis based on the number of shares
held by each class on the ex-dividend date.
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences, which may result in distribution
reclassifications, are primarily due to differing treatments for paydown
gains/losses on certain securities, market discount and losses deferred due
to wash sales.
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital and may
affect the per-share allocation between net investment income and realized
and unrealized gain (loss). Undistributed net investment income (loss) and
accumulated undistributed net realized gain (loss) on investments may
include temporary book and tax basis differences which will reverse in a
subsequent period. Any taxable income or gain remaining at fiscal year end
is distributed in the following year.
SECURITY TRANSACTIONS. Security transactions are accounted for as of trade
date. Gains and losses on securities sold are determined on the basis of
identified cost.
2. OPERATING POLICIES.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the fund, along with other affiliated
entities of Fidelity Management & Research Company (FMR), may transfer
uninvested cash balances into one or more joint trading accounts. These
balances are invested in one or more repurchase agreements that mature in
60 days or less from the date of purchase, and are collateralized by U.S.
Treasury or Federal Agency obligations.
2. OPERATING POLICIES - CONTINUED
REPURCHASE AGREEMENTS. The fund, through its custodian, receives delivery
of the underlying securities, whose market value is required to be at least
102% of the resale price at the time of purchase. FMR, the fund's
investment adviser, is responsible for determining that the value of these
underlying securities remains at least equal to the resale price.
DELAYED DELIVERY TRANSACTIONS. The fund may purchase or sell securities on
a when-issued or forward commitment basis. Payment and delivery may take
place a month or more after the date of the transaction. The price of the
underlying securities and the date when the securities will be delivered
and paid for are fixed at the time the transaction is negotiated. The
market value of the securities purchased or sold on a when-issued or
forward commitment basis are identified as such in the fund's schedule of
investments. The fund may receive compensation for interest forgone in the
purchase of a delayed delivery security. With respect to purchase
commitments, the fund identifies securities as segregated in its custodial
records with a value at least equal to the amount of the commitment. Losses
may arise due to changes in the market value of the underlying securities
or if the counterparty does not perform under the contract.
3. PURCHASES AND SALES OF INVESTMENTS.
Purchases and sales of long-term U.S. government and government agency
obligations aggregated $382,601,222 and $411,151,364, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, FMR pays all expenses,
except the compensation of the non-interested Trustees and certain
exceptions such as interest, taxes, brokerage commissions and extraordinary
expenses and
effective December 30, 1993, 12b-1 fees for Class II. FMR receives a fee
that is computed daily at an annual rate of .45% of the fund's average net
assets.
DISTRIBUTION AND SERVICE PLAN. In accordance with Rule 12b-1 of the 1940
Act, the Trustees have adopted a separate distribution plan with respect to
the fund's Class II shares ("Class II Plan"), pursuant to which the fund
pays Fidelity Distributors Corporation (FDC), an affiliate of FMR, a
distribution and service fee. This fee is based on an annual rate of .25%
of average net assets of the Class II shares. For the period, the fund paid
FDC $125 of which $0 was paid to securities dealers, banks and other
financial institutions for the distribution of Class II shares, and
providing shareholder support services.
In addition, FMR or FDC may use its resources to pay administrative and
promotional expenses related to the sale of the fund's shares. Subject to
the approval of the Board of Trustees, the Plan also authorizes payments to
third parties that assist in the sale of the fund's shares or render
shareholder support services. No payments were made to third parties under
the Plan during the period.
5. BANK BORROWINGS.
The fund is permitted to have bank borrowings for temporary or emergency
purposes to fund shareholder redemptions. The fund has established
borrowing arrangements with certain banks. Under the most restrictive
arrangement, the fund must pledge to the bank securities having a market
value in excess of 220% of the total bank borrowings. The interest rate on
the borrowings is the bank's base rate, as revised from time to time. The
maximum loan and the average daily loan balances during the periods for
which loans were outstanding amounted to $9,433,000 and $5,273,500,
respectively. The weighted average interest rate was 6.2139%.
6. SHARE TRANSACTIONS.
Share transactions for both classes were as follows:
SHARES DOLLARS
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED NOVEMBER 30, ENDED NOVEMBER 30,
MAY 31, 1995 1994 A MAY 31, 1995 1994 A
CLASS I
Shares sold 5,776,329 14,781,825 $ 53,794,990 $ 142,171,327
Reinvestment of distributions 1,212,900 2,187,213 11,319,722
20,788,384
Shares redeemed (6,952,648) (14,977,070) (64,569,418) (143,342,560)
Net increase (decrease) 36,581 1,991,968 $ 545,294 $ 19,617,151
CLASS II
Shares sold - 10,121 $ - $ 100,000
Reinvestment of distributions 380 581 3,544 5,500
Shares redeemed - - - -
Net increase (decrease) 380 10,702 $ 3,544 $ 105,500
A SHARE TRANSACTIONS FOR CLASS II ARE FOR THE PERIOD DECEMBER 30, 1993
(COMMENCEMENT OF SALE OF SHARES) TO NOVEMBER 30, 1994.

INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
OFFICERS
Edward C. Johnson 3d, PRESIDENT
J. Gary Burkhead, SENIOR VICE PRESIDENT
Curtis Hollingsworth, VICE PRESIDENT
Arthur S. Loring, SECRETARY
Stephen P. Jonas, TREASURER
John H. Costello, ASSISTANT TREASURER
Leonard M. Rush, ASSISTANT TREASURER
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox *
Phyllis Burke Davis *
Richard J. Flynn *
Edward C. Johnson 3d
E. Bradley Jones *
Donald J. Kirk *
Peter S. Lynch
Edward H. Malone *
Marvin L. Mann *
Gerald C. McDonough *
Thomas R. Williams *
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER SERVICING AGENT
Fidelity Investments Institutional Operations Company
Boston, MA
CUSTODIAN
The Bank of New York
New York, NY
* INDEPENDENT TRUSTEES

(registered trademark)
FIDELITY INSTITUTIONAL
SHORT-INTERMEDIATE
GOVERNMENT
PORTFOLIO
CLASS II

SEMIANNUAL REPORT
MAY 31, 1995
ISIG-7-95S
CONTENTS

PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.

PERFORMANCE 4 How the fund has done over time.

FUND TALK 7 The manager's review of fund
performance, strategy and outlook.

INVESTMENT CHANGES 9 A summary of major shifts in the
fund's investments over the past six
months.

INVESTMENTS 10 A complete list of the fund's
investments with their market
values.

FINANCIAL STATEMENTS 12 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.

NOTES 17 Notes to the financial statements.

THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL INFORMATION OF THE SHAREHOLDERS OF THE
FUND. THIS REPORT IS NOT AUTHORIZED FOR DISTRIBUTION TO PROSPECTIVE
INVESTORS IN THE FUND UNLESS PRECEDED OR ACCOMPANIED BY AN
EFFECTIVE PROSPECTUS.
MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED BY,
ANY DEPOSITORY
INSTITUTION. SHARES ARE NOT INSURED BY THE FDIC, THE FEDERAL RESERVE BOARD
OR ANY OTHER AGENCY,
AND ARE SUBJECT TO INVESTMENT RISK, INCLUDING THE POSSIBLE LOSS OF
PRINCIPAL. NEITHER THE FUND NOR
FIDELITY DISTRIBUTORS CORPORATION IS A BANK.
FOR MORE INFORMATION ON ANY FIDELITY FUND INCLUDING CHARGES AND EXPENSES,
CALL 1-800-843-3001. READ THE PROSPECTUS
CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
PRESIDENT'S MESSAGE

There are several ways to evaluate historical performance. You can look at
the total percentage change in value, the average annual percentage change,
or the growth of a hypothetical $100,000 investment. Total return includes
changes in share price, plus reinvestment of any dividends (or income) and
capital gains (the profits the fund earns when it sells investments that
have grown in value). You can also look at income to measure performance.
On December 30, 1993 the fund commenced sale of Class II shares. Class II
shares bear a .25% 12b-1 shareholder service fee. This fee is not reflected
in returns prior to that date. Returns prior to December 30, 1993 reflect
Class I's performance. Had Class II's 12b-1 fee been reflected, prior
returns would have been lower.
CUMULATIVE TOTAL RETURNS

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
PERIODS ENDED MAY 31, 1995 PAST 6 PAST 1 PAST 5 LIFE OF
MONTHS YEAR YEARS FUND

Fidelity Institutional Short-Intermediate Government
Portfolio - Class II 7.15% 7.95% 42.94% 84.06%

Lehman Brothers 1-3 Year Government Bond Index 6.23% 7.36% 42.38% n/a

Salomon Brothers Treasury/Agency 1-5 Year Index 7.52% 8.15% 47.32% n/a

Average Short U.S. Government Fund 6.41% 6.65% 39.70% n/a

Consumer Price Index 1.53% 3.19% 17.80% 37.99%

</TABLE>

CUMULATIVE TOTAL RETURNS show Class II's performance in percentage terms
over a set period - in this case, six months, one year, five years, or
since the fund began on November 10, 1986. For example, if you invested
$1,000 in a fund that had a 5% return over the past year, the value of your
investment would be $1,050. You can compare Class II's returns to the
performance of the Lehman Brothers 1-3 Year Government Bond Index and the
Salomon Brothers Treasury/Agency 1-5 Year Index - both broad measures of
the performance of U.S. government bonds. To measure how Class II stacked
up against its peers, you can compare it to the average short U.S.
government fund, which reflects the performance of 137 funds with similar
objectives tracked by Lipper Analytical Services over the past six months.
These benchmarks include reinvested dividends and capital gains, if any.
Comparing Class II's performance to the consumer price index (CPI) helps
show how the Class did compared to inflation. (The CPI returns begin on the
month end closest to the fund's start date.)
AVERAGE ANNUAL TOTAL RETURNS

<TABLE>
<CAPTION>
<S> <C> <C> <C>
PERIODS ENDED MAY 31, 1995 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

Fidelity Institutional Short-Intermediate Government 7.95% 7.41% 7.39%
Portfolio - Class II

Lehman Brothers 1-3 Year Government Bond Index 7.36% 7.32% n/a

Salomon Brothers Treasury/Agency 1-5 Year Index 8.15% 8.06% n/a

Average Short U.S. Government Fund 6.65% 6.89% n/a

Consumer Price Index 3.19% 3.33% 3.82%

</TABLE>

AVERAGE ANNUAL TOTAL RETURNS take Class II shares' actual (or cumulative)
return and show you what would have happened if Class II had performed at a
constant rate each year.
$100,000 OVER LIFE OF FUND
Fidelity InstitutSalomon Brothers T
11/30/86 100000.00 100000.00
12/31/86 100232.45 100210.00
01/31/87 100984.52 100981.62
02/28/87 101297.04 101466.33
03/31/87 101534.48 101314.13
04/30/87 100733.60 100402.30
05/31/87 101025.36 100382.22
06/30/87 102031.83 101496.46
07/31/87 102646.76 101922.75
08/31/87 102870.96 101973.71
09/30/87 102770.50 101249.70
10/31/87 104186.29 103710.07
11/30/87 104953.26 104342.70
12/31/87 105853.42 105156.57
01/31/88 107712.94 107228.15
02/29/88 108817.08 108203.93
03/31/88 108720.94 108182.29
04/30/88 108785.98 108182.29
05/31/88 108647.18 107976.74
06/30/88 109881.56 109272.46
07/31/88 110106.53 109206.90
08/31/88 110213.93 109370.71
09/30/88 111588.10 110836.28
10/31/88 112484.85 112121.98
11/30/88 112515.68 111550.16
12/31/88 112780.97 111684.02
01/31/89 113748.45 112655.67
02/28/89 113857.27 112497.95
03/31/89 114282.70 112947.94
04/30/89 115949.64 114777.70
05/31/89 117612.63 116786.31
06/30/89 119764.15 119367.29
07/31/89 121326.05 121432.34
08/31/89 120733.67 120242.30
09/30/89 121440.29 120927.68
10/31/89 123395.24 123080.20
11/30/89 124456.69 124224.84
12/31/89 125011.52 124672.05
01/31/90 124905.35 124447.64
02/28/90 125514.30 124970.32
03/31/90 126068.16 125295.25
04/30/90 126226.71 125370.42
05/31/90 128132.86 127539.33
06/30/90 129431.74 129044.30
07/31/90 130900.35 130812.20
08/31/90 131407.27 130903.77
09/30/90 132295.69 132108.09
10/31/90 133615.13 133733.01
11/30/90 135084.39 135230.82
12/31/90 136609.16 137015.87
01/31/91 137853.22 138303.82
02/28/91 138891.95 139023.00
03/31/91 139756.92 139954.45
04/30/91 141155.69 141423.98
05/31/91 142195.47 142230.09
06/30/91 142497.86 142614.11
07/31/91 143853.21 144111.56
08/31/91 146120.12 146374.11
09/30/91 147346.73 148408.71
10/31/91 148929.68 150056.05
11/30/91 150365.93 151811.71
12/31/91 154016.64 154696.13
01/31/92 152549.86 153907.18
02/29/92 153239.30 154368.90
03/31/92 153175.74 153982.98
04/30/92 154315.48 155553.60
05/31/92 156283.47 157358.03
06/30/92 158139.65 159403.68
07/31/92 159806.46 161842.56
08/31/92 161526.84 163541.90
09/30/92 163504.68 165488.05
10/31/92 161646.75 163866.27
11/30/92 161973.71 163276.35
12/31/92 163773.02 165121.37
01/31/93 165722.10 167779.83
02/28/93 167247.90 169642.18
03/31/93 168029.81 170235.93
04/30/93 168658.86 171597.82
05/31/93 169019.66 170997.23
06/30/93 170363.41 172844.00
07/31/93 170873.05 173172.40
08/31/93 171939.57 175233.15
09/30/93 172350.90 175846.47
10/31/93 172624.54 176162.99
11/30/93 172552.26 175810.67
12/31/93 173380.52 176531.49
01/31/94 174929.26 177943.74
02/28/94 173390.34 176235.48
03/31/94 170448.62 174455.50
04/30/94 169535.46 173478.55
05/31/94 169673.80 173704.07
06/30/94 169839.28 173982.00
07/31/94 171682.09 175826.21
08/31/94 172299.37 176371.27
09/30/94 171307.82 175418.87
10/31/94 171594.05 175646.91
11/30/94 170941.81 174715.98
12/31/94 171463.90 175170.24
01/31/95 173860.04 177902.90
02/28/95 176731.45 180838.30
03/31/95 177584.43 181832.91
04/30/95 179335.73 183687.60
05/31/95 183159.25 187894.05

$100,000 OVER LIFE OF FUND: Let's say you invested $100,000 in Fidelity
Institutional Short-Intermediate Government Portfolio - Class II on
November 30, 1986, shortly after the fund started. As the chart shows, by
May 31, 1995, the value of your investment would have grown to $183,159 -
an 83.16% increase on your initial investment. For comparison, look at how
the Salomon Brothers Treasury/Agency 1-5 Year Index did over the same
period. With dividends reinvested, the same $100,000 would have grown to
$187,894 - an 87.89% increase. Beginning with this report, the fund will
compare its performance to the Salomon Brothers Treasury/Agency 1-5 Year
Index rather than the Lehman Brothers Government Bond Index. Although the
difference in performance between the two indexes is small, the Salomon
Brothers Treasury/Agency 1-5 Year Index includes fewer securities and is
more straightforward to monitor on a daily basis. For comparison purposes,
both indexes are shown on Performance: The Botton Line, Page 4.

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SIX MONTHS YEARS ENDED NOVEMBER 30,
ENDED

MAY 31, 1995 1994* 1993 1992 1991 1990

Dividend return 3.68% 5.37% 6.12% 6.90% 8.25% 8.96%

Capital appreciation return 3.47% -6.78% 0.41% 0.82% 3.06% -0.42%

Total return 7.15% -1.41% 6.53% 7.72% 11.31% 8.54%

</TABLE>

* For the period 12/30/93 through 11/30/94.
DIVIDEND returns and capital appreciation returns are both part of a bond
fund's total return. A dividend return reflects the actual dividends paid
by the fund. A capital appreciation return reflects both the amount paid by
the fund to shareholders as capital gain distributions and changes in the
fund's share price. Both returns assume the dividends or gains are
reinvested.
DIVIDENDS AND YIELD
PERIODS ENDED MAY 31, 1995 PAST 1 PAST 6 PAST 1
MONTH MONTHS YEAR

Dividends per share 5.00(cents) 32.64(cents) 64.78(cents)

Annualized dividend rate 6.22% 7.03% 6.93%

30-day annualized yield 6.22% - -

DIVIDENDS per share show the income paid by Class II for a set period and
do not reflect any tax reclassifications. If you annualize this number,
based on an average net asset value of $9.47 over the past month, $9.31
over the past six months and $9.35 over the past year, you can compare
Class II's income over these three periods.
The 30-day annualized YIELD is a standard formula for all bond funds based
on the yields of the bonds in the fund, averaged over the past 30 days.
This figure shows you the yield characteristics of the fund's investments
at the end of the period. It also helps you compare funds from different
companies on an equal basis.
PERFORMANCE INFORMATION: CLASS I
PERIODS ENDED MAY 31, 1995 PAST 6 PAST 1 PAST 5 LIFE OF
MONTHS YEAR YEARS FUND

Cumulative total return 7.28% 8.22% 43.45% 84.72%

Average annual total return n/a 8.22% 7.48% 7.43%

PAST 1
MONTH

30-day annualized yield 6.46%

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SIX MONTHS YEARS ENDED NOVEMBER 30,
ENDED

TOTAL RETURN COMPONENTS MAY 31, 1995 1994 1993 1992 1991 1990

Dividend return 3.81% 6.07% 6.12% 6.90% 8.25% 8.96%

Capital appreciation return 3.47% -6.78% 0.41% 0.82% 3.06% -0.42%

Total return 7.28% -0.71% 6.53% 7.72% 11.31% 8.54%

</TABLE>

FUND TALK: THE MANAGER'S OVERVIEW

An interview with
Curt
Hollingsworth,
Portfolio Manager
of Fidelity
Institutional
Short-Intermediat
e Government
Portfolio - Class I
Q. CURT, HOW HAS THE FUND PERFORMED?
A. It has performed well. For the six months ended May 31, 1995, Class II
had a total return of 7.15%, compared to a total return of 6.41% for the
average short U.S. government bond fund tracked by Lipper Analytical
Services. For the 12 months ended May 31, Class II returned 7.95%, while
the average short U.S. government bond fund had a total return of 6.65%,
according to Lipper. For the six- and 12-month periods, the Salomon
Brothers Treasury/Agency 1-5 Year Index posted returns of 7.52% and 8.15%,
respectively.
Q. WHAT IS MEANT BY TOTAL RETURN?
A. We recently held focus groups around the country with a number of bond
investors who have holdings in Fidelity funds as well as other fund
companies. One point became very clear - many bond fund investors don't
understand total return. Unfortunately, they watch a fund's share price,
and if it's down 5% over a year, they assume they've lost 5% of their
money. But they're forgetting that they have received dividends every
month that offset much of the price decline. Investors need to know that
interest income is the main source of return for a bond fund over the long
term. Fortunately, total return is easy to explain by using a "dollars in,
dollars out" example. If someone invested $100 in this bond fund a year
ago and reinvested all dividends and capital gains, then their investment
would be worth $107.95 today. That is what is meant by a cumulative total
return of 7.95%.
Q. WHAT HELPED THE FUND BEAT THE AVERAGE FUND?
A. The fund took advantage of good opportunities in U.S. agency securities
during the period. Short-term agency issues reached their widest yield
spreads in several years, so I more than doubled the fund's weighting in
them by the end of April. By yield spread I mean a yield advantage, or the
difference in yield between agency issues and U.S. Treasuries with the same
maturities. By the end of April, the spread had tightened, causing the
U.S. agency securities to outperform comparable Treasury notes. As a
result, I started taking some profits.
Q. YOU'VE REDUCED THE FUND'S INVESTMENTS IN MORTGAGE-BACKED SECURITIES TO
19.3% AS OF MAY 31. WHAT'S THE STORY THERE?
A. Early in the period, the fund owned more mortgage-backed securities
because they offered a significant yield advantage over comparable Treasury
securities. When the yield spread between mortgage-backed securities and
U.S. Treasuries increases - as it had by early 1994 - mortgage securities
typically do quite well going forward. But by the end of 1994, mortgage
securities offered only a small yield advantage, so I started selling them
to take profits. In their place, I bought the agency securities I've just
mentioned.
Q. HOW HAVE YOU POSITIONED THE FUND IN TERMS OF BOND MATURITIES?
A. A year ago, the fund had a relatively large weighting in cash, which
obviously is a very short-term investment, and also in longer-term
securities. At that point, the fund was relatively light in intermediate
securities with maturities of two to three years. As interest rates rose,
yields on intermediate-term securities rose more than yields on longer-term
securities. This strategy, known as a "barbell," helped the fund's
performance through most of 1994.
Q. HOW HAVE YOU ALTERED YOUR STRATEGY NOW THAT YIELDS HAVE FALLEN IN 1995?
A. At the end of 1994, the yield curve, or the difference in yield between
securities with various maturities, was quite flat. When that occurs,
longer-term bonds offer very little additional yield over shorter
securities. Based on historical information, I felt that the yield curve
wouldn't flatten much more, and, if anything, might steepen a little. In
the fourth quarter of 1994, I moved the fund to a "laddered" maturity
distribution, meaning it was more diversified across securities with
maturities ranging from one to five years in most cases. In fact, the
curve started to steepen in December, and the fund benefited from having a
laddered structure.
Q. WHAT DO YOU SEE LOOKING OUT OVER THE NEXT SIX MONTHS?
A. It's very difficult to predict the direction of interest rates. As a
result, I don't intend to actively manage the fund's duration in
anticipation of interest rate changes. Instead, I will try to manage the
fund so that it will have approximately the same duration as the Salomon
Brothers Treasury/Agency 1-5 Year Index. Duration is an estimate of how
sensitive the fund's share price is to a change in comparable interest
rates. As I mentioned earlier, based on the current shape of the yield
curve, I have laddered the fund. During the next six months, if I
concluded that the yield curve were likely to steepen further, I might give
the fund a "bulleted" maturity distribution by overweighting intermediate
securities such as two-year and three-year Treasury notes, whose yields
would drop more than the yields on longer-term bonds, if the yield curve
did steepen. As far as sector weights go, I most likely will invest more
of the fund in mortgage-backed securities when they once again offer
significantly higher yields than comparable Treasuries.
FUND FACTS
GOAL: to provide a high level of current income
consistent with preserving principal.
START DATE: November 10, 1986
SIZE: as of May 31, 1995, more than $352 million
MANAGER: Curt Hollingsworth, since 1987;
manager, Spartan Limited Maturity
Government, Fidelity Short-Intermediate
Government, Spartan Long-Term Government
Bond and Spartan Short-Intermediate
Government funds; Fidelity Government
Securities Fund, 1990 - February 1995;
Fidelity Advisor Government Investment Fund,
1992 - February 1995, joined Fidelity in 1983
(checkmark)
CURT HOLLINGSWORTH ON THE DOLLAR AND
ITS IMPACT ON INTEREST RATES:
"The weakening U.S. dollar has garnered a lot
of media attention lately. Many analysts have
forecast that the Federal Reserve Board might
be forced to raise interest rates in order to
support the dollar. However, in my view, the
exchange rate won't be the driving factor in
determining Fed policy. Instead, inflation and
the economy will play bigger roles in
determining Fed actions.
"It's important to remember that most of today's
headlines relate to the dollar's value relative to
the yen or the deutsche mark. However, the
dollar has been strong against the currencies of
Mexico and Canada, two of our three biggest
trading partners. In fact, while the value of the
dollar has fallen against the yen and deutsche
mark since 1990, it has risen against a broader
index of 101 foreign currencies that is weighted
by the volume of trade with the United States."
(solid bullet) Most of the agency securities the manager
was selling during the period were callable
bonds, meaning they were redeemable before
their stated maturity dates. The manager
bought them at a deep discount. As short-term
Treasury rates dropped significantly over the
past few months, the risk the bonds would be
called increased, because the point where it
would be possible for the issuers to redeem
them and reissue new ones at lower rates was
near. Because the market hadn't priced in the
increased call risk, the manager was able to sell
the securities at prices that were high in light of
historical levels.
(solid bullet) With recent drops in short-term Treasury
yields, mortgage-backed securities started to
become inexpensive, relative to Treasuries.
One indication of this is that mortgage yield
spreads are significantly wider today than they
were at the beginning of the year.
INVESTMENT CHANGES

COUPON DISTRIBUTION AS OF MAY 31, 1995
% OF FUND'S INVESTMENTS % OF FUND'S INVESTMENTS
6 MONTHS AGO

Under 6% 20.5 0.9

6 - 6.99% 13.6 2.3

7 - 7.99% 13.3 16.2

8 - 8.99% 26.0 15.7

9 - 9.99% 9.9 50.6

10 - 10.99% 2.4 2.7

11 - 11.99% 0.7 0.7

12 - 12.99% 1.9 3.9

13% and over 0.4 0.2

Zero Coupon Bonds 0.1 0.1

COUPON DISTRIBUTION SHOWS THE RANGE OF STATED INTEREST RATES ON THE FUND'S
INVESTMENTS, EXCLUDING REPURCHASE AGREEMENTS.
AVERAGE YEARS TO MATURITY AS OF MAY 31, 1995
6 MONTHS AGO

Years 3.3 4.0

AVERAGE YEARS TO MATURITY IS BASED ON THE AVERAGE TIME UNTIL PRINCIPAL
PAYMENTS ARE EXPECTED FROM EACH OF THE FUND'S BONDS, WEIGHTED BY DOLLAR
AMOUNT.
DURATION AS OF MAY 31, 1995
6 MONTHS AGO

Years 2.2 2.6

INVESTMENTS MAY 31, 1995 (UNAUDITED)

Showing Percentage of Total Value of Investment in Securities

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
MAY 31, 1995 (UNAUDITED)

ASSETS 7. 8.

9.Investment in securities, at value (including repurchase agreements of $38,288,000) 10. $ 342,267,477
(cost $337,505,681) - See accompanying schedule

11.Cash 12. 60,522

13.Receivable for investments sold 14. 11,871,097

15.Receivable for fund shares sold 16. 28,143

17.Interest receivable 18. 4,226,466

19. 20.TOTAL ASSETS 21. 358,453,705

LIABILITIES 22. 23.

24.Payable for investments purchased $ 920,995 25.
Regular delivery

26. Delayed delivery 5,166,881 27.

28.Distributions payable 160,484 29.

30.Accrued management fee 130,135 31.

32.Distribution fees payable 208 33.

34. 35.TOTAL LIABILITIES 36. 6,378,703

37.NET ASSETS 38. $ 352,075,002

39.Net Assets consist of: 40. 41.

42.Paid in capital 43. $ 367,232,383

44.Undistributed net investment income 45. 462,450

46.Accumulated undistributed net realized gain (loss) on investments 47. (20,381,627)

48.Net unrealized appreciation (depreciation) on investments 49. 4,761,796

50.NET ASSETS 51. $ 352,075,002

CLASS I: 52. $9.53
NET ASSET VALUE, offering price and redemption price per share ($351,969,376 (divided by) 36,915,307
shares)

CLASS II: 53. $9.53
NET ASSET VALUE, offering price and redemption price per share ($105,626 (divided by) 11,082 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED MAY 31, 1995 (UNAUDITED)

INVESTMENT INCOME 55. $ 13,325,802
54.Interest

EXPENSES 56. 57.

58.Management fee $ 761,843 59.

60.Distribution fees - Class II 125

61.Non-interested trustees' compensation 856

62.Interest 1,821 63.

64. 65.TOTAL EXPENSES 66. 764,645

67.68.NET INVESTMENT INCOME 69. 12,561,157

REALIZED AND UNREALIZED GAIN (LOSS) 71. (5,240,767)
70.Net realized gain (loss) on investment securities

72.Change in net unrealized appreciation (depreciation) on investment securities 73. 16,636,816

74.75.NET GAIN (LOSS) 76. 11,396,049

77.78.NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 79. $ 23,957,206

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR ENDED
ENDED NOVEMBER 30,
MAY 31, 1995 1994
(UNAUDITED)

INCREASE (DECREASE) IN NET ASSETS

80.Operations $ 12,561,157 $ 24,960,165
Net investment income

81. Net realized gain (loss) (5,240,767) (17,869,674)

82. Change in net unrealized appreciation (depreciation) 16,636,816 (9,160,828)

83. 84.NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 23,957,206 (2,070,337)

85.Distributions to shareholders (12,314,551) (22,380,525)
Net investment income
Class I

86. Class II (3,544) (5,500)

87. In excess of net realized gain - Class I - (314,479)

88. 89.TOTAL DISTRIBUTIONS (12,318,095) (22,700,504)

90.Net increase (decrease) in net assets resulting from share transactions 548,838 19,722,651

91. 92.TOTAL INCREASE (DECREASE) IN NET ASSETS 12,187,949 (5,048,190)

NET ASSETS 93. 94.

95. Beginning of period 339,887,053 344,935,243

96. End of period (including undistributed net investment income of $462,450 and $219,388, $ 352,075,002 $ 339,887,053
respectively)

</TABLE>

FINANCIAL HIGHLIGHTS - CLASS I
97. SIX MONTHS YEARS ENDED NOVEMBER 30,
ENDED
MAY 31, 1995

98. (UNAUDITED) 1994 C 1993 1992 1991 1990

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
99.SELECTED PER-SHARE DATA

100.Net asset value, beginning of period $ 9.210 $ 9.890 $ 9.850 $ 9.770 $ 9.480 $ 9.520

101.Income from Investment Operations

102. Net investment income .345 .597 .654 .721 .747 .813

103. Net realized and unrealized gain (loss) on .313 (.665) (.022) .014 .286 (.040)
investments

104. Total from investment operations .658 (.068) .632 .735 1.033 .773

105.Less Distributions

106. From net investment income (.338) (.602) (.592) (.655) (.743) (.813)

107. In excess of net realized gain - (.010) - - - -

108. Total distributions (.338) (.612) (.592) (.655) (.743) (.813)

109.Net asset value, end of period $ 9.530 $ 9.210 $ 9.890 $ 9.850 $ 9.770 $ 9.480

110.TOTAL RETURN B 7.28% (.71) 6.53% 7.72% 11.31% 8.54%
%

111.RATIOS AND SUPPLEMENTAL DATA

112.Net assets, end of period (000 omitted) $ 351,969 $ 339,788 $ 344,935 $ 188,918 $ 171,228 $ 142,211

113.Ratio of expenses to average net assets .45% .45% .45% .45% .45% .45%
A

114.Ratio of net investment income to average net 7.43% 7.06% 7.14% 7.29% 7.77% 8.65%
assets A

115.Portfolio turnover 248% 303% 351% 355% 192% 252%
A

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C>
116. SIX MONTHS YEAR ENDED
ENDED NOVEMBER 30,
MAY 31, 1995

117. (UNAUDITED) 1994 C

118.SELECTED PER-SHARE DATA

119.Net asset value, beginning of period $ 9.210 $ 9.880

120.Income from Investment Operations

121. Net investment income .333 .524

122. Net realized and unrealized gain (loss) on investments .313 (.662)

123. Total from investment operations .646 (.138)

124.Less Distributions

125. From net investment income (.326) (.532)

126.Net asset value, end of period $ 9.530 $ 9.210

127.TOTAL RETURN B 7.15% (1.41)%

128.RATIOS AND SUPPLEMENTAL DATA

129.Net assets, end of period (000 omitted) $ 106 $ 99

130.Ratio of expenses to average net assets .70% A .70% A

131.Ratio of net investment income to average net assets 7.18% A 6.79% A

132.Portfolio turnover 248% A 303%

</TABLE>