SUPPLEMENT TO THE FIDELITY REAL ESTATE HIGH INCOME FUND
A FUND OF FIDELITY ADVISOR SERIES IV
STATEMENT OF ADDITIONAL INFORMATION
DATED JANUARY 29, 1997
The following information replaces similar information found in the
"Investment Policies and Limitations" section on page 2.
(iv) The fund may borrow money only (a) from a bank or from a
registered investment company or portfolio for which FMR or an
affiliate serves as investment adviser or (b) by engaging in reverse
repurchase agreements with any party (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 supplements the similar information found in
the "Trustees and Officers" section beginning on page 17.
ROBERT M. GATES (53), Trustee (1997), is a consultant, author, and
lecturer (1993). Mr. Gates was Director of the Central Intelligence
Agency (CIA) from 1991-1993. From 1989 to 1991, Mr. Gates served as
Assistant to the President of the United States and Deputy National
Security Advisor. Mr. Gates is currently a Trustee for the Forum For
International Policy, a Board Member for the Virginia Neurological
Institute, and a Senior Advisor of the Harvard Journal of World
Affairs. In addition, Mr. Gates also serves as a member of the
corporate board for LucasVarity PLC (automotive components and diesel
engines), Charles Stark Draper Laboratory (non-profit), NACCO
Industries, Inc. (mining and manufacturing), and TRW Inc. (original
equipment and replacement products).
The following information replaces the similar information found in
the "Trustees and Officers" section beginning on page 17.
The following table sets forth information describing the compensation
of each Trustee of the fund for his or her services for the fiscal
year ended November 30, 1996.
COMPENSATION TABLE
Trustees Aggregate Total
Compensation Compensation
from Fidelity from the
Real Estate Fund Complex*
High Income Fund A
A,B
J. Gary Burkhead ** $ 0 $ 0
Ralph F. Cox 27 137,700
Phyllis Burke Davis 26 134,700
Richard J. Flynn*** 33 168,000
Edward C. Johnson 3d ** 0 0
E. Bradley Jones 26 134,700
Donald J. Kirk 27 136,200
Peter S. Lynch ** 0 0
William O. McCoy**** 14 85,333
Gerald C. McDonough 26 136,200
Edward H. Malone*** 27 136,200
Marvin L. Mann 27 134,700
Thomas R. Williams 27 136,200
* Information is as of December 31, 1996 for 235 funds in the complex.
** Interested Trustees of the fund are compensated by FMR.
*** Richard J. Flynn and Edward H. Malone served on the Board of
Trustees through December 31, 1996.
****During the period from May 1, 1996 through December 31, 1996,
William O. McCoy served as a Member of the Advisory Board of Fidelity
Advisor Series IV.
A Compensation figures include cash, a pro rata portion of benefits
accrued under the retirement program for the period ended December 30,
1996 and required to be deferred, and may include amounts deferred at
the election of Trustees.
B The following amounts are required to be deferred by each
non-interested Trustee, most of which is subject to vesting: Ralph F.
Cox, $1, Phyllis Burke Davis, $1, Richard J. Flynn, $0, E. Bradley
Jones, $1, Donald J. Kirk, $1, William O. McCoy, $0, Gerald C.
McDonough, $1, Edward H. Malone, $1, Marvin L. Mann, $1, and Thomas R.
Williams, $1.
Under a retirement program adopted in July 1988 and modified in
November 1995 and November 1996, each non-interested Trustee who
retired before December 30, 1996 may receive payments from a Fidelity
fund during his or her lifetime based on his or her basic trustee fees
and length of service. The obligation of a fund to make such payments
is neither secured nor funded. A Trustee became eligible to
participate in the program at the end of the calendar year in which he
or she reached age 72, provided that, at the time of retirement, he or
she had served as a Fidelity fund Trustee for at least five years.
The non-interested Trustees may elect to defer receipt of all or a
percentage of their annual fees in accordance with the terms of a
Deferred Compensation Plan (the Plan). Under the Plan, compensation
deferred by a Trustee is periodically adjusted as though an equivalent
amount had been invested and reinvested in shares of one or more funds
in the complex designated by such Trustee (designated securities). The
amount paid to the Trustee under the Plan will be determined based
upon the performance of such investments. Deferral of fees in
accordance with the Plan will have a negligible effect on the fund's
assets, liabilities, and net income per share, and will not obligate
the funds to retain the services of any Trustee or to pay any
particular level of compensation to the Trustee. The funds may invest
in such designated securities under the Plan without shareholder
approval.
As of December 30, 1996, the non-interested Trustees terminated the
retirement program for Trustees who retire after such date. In
connection with the termination of the retirement program, each
existing non-interested Trustee received a credit to his or her Plan
account equal to the present value of the estimated benefits that
would have been payable under the retirement program. The amounts
credited to the non-interested Trustees' Plan accounts are subject to
vesting. The termination of the retirement program and related
crediting of estimated benefits to the Trustees' Plan accounts did not
result in a material cost to the funds.
