FIDELITY INSTITUTIONAL
SHORT-INTERMEDIATE
GOVERNMENT FUND
SEMIANNUAL REPORT
MAY 31, 1999
(2_fidelity_logos)(registered trademark)
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 CHANGE 10 A summary of major shifts in
the fund's investments over
the past six months.
INVESTMENTS 11 A complete list of the fund's
investments with their
market values.
FINANCIAL STATEMENTS 16 Statements of assets and
liabilities, operations, and
changes in net assets, as
well as financial highlights.
NOTES 20 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 RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT
INVESTED.
NEITHER THE FUND NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK.
FOR MORE INFORMATION ON ANY FIDELITY FUND, INCLUDING CHARGES AND
EXPENSES, CALL 1-800-544-8888
FOR A FREE PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST OR SEND
MONEY.
PRESIDENT'S MESSAGE
(PHOTO_OF_EDWARD_C_JOHNSON_3D)
DEAR SHAREHOLDER:
After its first-ever close above 11,000 on the first trading day of
May, the Dow Jones Industrial Average dropped over 450 points by
month's end. The Federal Reserve Board's shift in bias toward raising
rates to ward off inflation contributed to the decline. Government
securities followed a similar path during May, as expectations of an
eventual boost in interest rates drove the price of the bellwether
30-year Treasury consistently downwards.
While it's impossible to predict the future direction of the markets
with any degree of certainty, there are certain basic principles that
can help investors plan for their future needs.
The longer your investment time frame, the less likely it is that you
will be affected by short-term market volatility. A 10-year investment
horizon appropriate for saving for a college education, for example,
enables you to weather market cycles in a long-term fund, which may
have a higher risk potential, but also has a higher potential rate of
return.
An intermediate-length fund could make sense if your investment
horizon is two to four years, while 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. These
funds seek income and a stable share price by investing in
high-quality, short-term investments. Of course, it's important to
remember that an investment in a money market fund is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other
government agency. Although money market funds seek to preserve the
value of your investment at $1.00 per share, it is possible to lose
money by investing in these types of funds.
Finally, no matter what your time horizon or portfolio diversity, it
makes good sense to follow a regular investment plan, investing a
certain amount of money in a fund at the same time each month or
quarter and periodically reviewing your overall portfolio. By doing
so, you won't get caught up in the excitement of a rapidly rising
market, nor will you buy all your shares at market highs. While this
strategy - known as dollar cost averaging - won't assure a profit or
protect you from a loss in a declining market, it should help you
lower the average cost of your purchases. Of course, you should
consider your financial ability to continue your purchases through
periods of low price levels before undertaking such a strategy.
If you have questions, please call us at 1-800-544-8888, or visit our
web site at www.fidelity.com. We are available 24 hours a day, seven
days a week to provide you the information you need to make the
investments that are right for you.
Best regards,
Edward C. Johnson 3d
PERFORMANCE: THE BOTTOM LINE
There are several ways to evaluate a fund's 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 reflects the change in the value of an
investment, assuming reinvestment of the fund's dividend income and
capital gains (the profits earned upon the sale of securities that
have grown in value). You can also look at the fund's income, as
reflected in the fund's yield, to measure performance. If Fidelity had
not reimbursed certain fund expenses, the past five years and the past
10 years total returns would have been lower.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
CUMULATIVE TOTAL RETURNS
PERIODS ENDED MAY 31, 1999 PAST 6 MONTHS PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
Fidelity Inst Sht-Int Govt 0.80% 4.70% 36.70% 97.42%
LB 1-5 Year US Government Bond 0.61% 5.20% 37.42% 104.20%
Short-Intermediate US 0.20% 3.94% 33.19% 97.08%
Government Funds Average
</TABLE>
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, past six months, one year,
five years or 10 years. For example, if you had 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 the fund's returns to the
performance of the Lehman Brothers 1-5 Year U.S. Government Bond Index
- - a market value-weighted index of government fixed-rate debt issues
with maturities between one and five years. To measure how the fund's
performance stacked up against its peers, you can compare it to the
short-intermediate U.S. government funds average, which reflects the
performance of mutual funds with similar objectives tracked by Lipper
Inc. The past six months average represents a peer group of 98 mutual
funds. These benchmarks reflect reinvestment of dividends and capital
gains, if any, and exclude the effect of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED MAY 31, 1999 PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
Fidelity Inst Sht-Int Govt 4.70% 6.45% 7.04%
LB 1-5 Year US Government Bond 5.20% 6.56% 7.40%
Short-Intermediate US 3.94% 5.89% 7.01%
Government Funds Average
AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and
show you what would have happened if the fund had performed at a
constant rate each year. (Note: Lipper calculates average annual total
returns by annualizing each fund's total return, then taking an
arithmetic average. This may produce a different figure than that
obtained by averaging the cumulative total returns and annualizing the
result.)
$100,000 OVER 10 YEARS
Inst Sht-Int Govt LB 1-5 Year U.S. Govt
00662 LB069
1989/05/31 100000.00 100000.00
1989/06/30 101829.33 102176.15
1989/07/31 103157.34 103955.33
1989/08/31 102653.67 102958.65
1989/09/30 103254.47 103506.97
1989/10/31 104916.66 105371.83
1989/11/30 105819.16 106362.81
1989/12/31 106290.90 106742.63
1990/01/31 106200.63 106551.29
1990/02/28 106718.39 107039.64
1990/03/31 107189.30 107262.39
1990/04/30 107324.12 107293.81
1990/05/31 108944.81 109210.08
1990/06/30 110049.19 110492.35
1990/07/31 111297.87 111977.38
1990/08/31 111728.88 112097.33
1990/09/30 112484.26 113051.18
1990/10/31 113606.11 114450.54
1990/11/30 114855.35 115778.50
1990/12/31 116151.78 117260.68
1991/01/31 117209.54 118405.87
1991/02/28 118092.72 119145.53
1991/03/31 118828.16 119885.20
1991/04/30 120017.46 121104.64
1991/05/31 120901.53 121824.31
1991/06/30 121158.64 122118.46
1991/07/31 122311.03 123332.19
1991/08/31 124238.47 125356.98
1991/09/30 125281.39 127050.49
1991/10/31 126627.28 128526.96
1991/11/30 127848.46 129977.72
1991/12/31 130952.47 132439.46
1992/01/31 129705.35 131794.04
1992/02/29 130291.54 132139.59
1992/03/31 130237.49 131839.73
1992/04/30 131206.55 133122.00
1992/05/31 132879.84 134755.54
1992/06/30 134458.05 136489.03
1992/07/31 135875.26 138588.07
1992/08/31 137338.01 139961.73
1992/09/30 139019.66 141623.83
1992/10/31 137439.96 140250.17
1992/11/30 137717.96 139784.67
1992/12/31 139247.82 141329.68
1993/01/31 140905.02 143537.24
1993/02/28 142202.33 145216.47
1993/03/31 142867.15 145721.96
1993/04/30 143402.00 146815.74
1993/05/31 143708.77 146344.53
1993/06/30 144851.29 147898.10
1993/07/31 145284.61 148166.55
1993/08/31 146191.42 149920.04
1993/09/30 146541.15 150408.38
1993/10/31 146773.81 150773.93
1993/11/30 146712.36 150454.08
1993/12/31 147416.59 151050.95
1994/01/31 148764.24 152290.38
1994/02/28 147486.22 150773.93
1994/03/31 145014.34 149300.32
1994/04/30 144268.50 148437.86
1994/05/31 144416.22 148594.93
1994/06/30 144587.26 148820.54
1994/07/31 146186.05 150454.08
1994/08/31 146587.53 150922.44
1994/09/30 145928.69 150117.09
1994/10/31 146202.80 150305.57
1994/11/30 145677.26 149554.49
1994/12/31 146152.58 149882.91
1995/01/31 148225.60 152159.01
1995/02/28 150704.60 154734.98
1995/03/31 151463.43 155594.59
1995/04/30 153150.90 157193.85
1995/05/31 156281.81 160792.21
1995/06/30 157275.92 161728.92
1995/07/31 157652.29 162103.04
1995/08/31 158891.15 163222.53
1995/09/30 159780.57 164136.39
1995/10/31 161410.63 165709.96
1995/11/30 162854.39 167429.18
1995/12/31 164337.47 168859.95
1996/01/31 165839.88 170373.54
1996/02/29 164701.41 169222.64
1996/03/31 164300.50 168714.30
1996/04/30 164012.16 168577.22
1996/05/31 164074.39 168691.46
1996/06/30 165672.41 170150.79
1996/07/31 166244.49 170761.94
1996/08/31 166614.40 171193.17
1996/09/30 168404.30 173052.32
1996/10/31 170767.57 175425.52
1996/11/30 172400.11 177061.91
1996/12/31 172075.24 176627.83
1997/01/31 172663.29 177427.46
1997/02/28 173169.34 177764.45
1997/03/31 172497.47 177230.41
1997/04/30 174235.01 178935.34
1997/05/31 175433.83 180226.18
1997/06/30 176786.67 181616.98
1997/07/31 179088.33 184230.07
1997/08/31 179095.87 184018.73
1997/09/30 180612.72 185692.25
1997/10/31 182169.12 187428.60
1997/11/30 182731.30 187797.01
1997/12/31 183917.25 189193.51
1998/01/31 185869.29 191363.95
1998/02/28 185979.65 191329.68
1998/03/31 186585.40 191983.66
1998/04/30 187358.73 192906.10
1998/05/31 188558.34 194059.86
1998/06/30 189338.22 195162.21
1998/07/31 190317.91 196001.83
1998/08/31 192523.91 199009.02
1998/09/30 195741.69 202627.37
1998/10/31 196116.81 203427.00
1998/11/30 195842.55 202972.93
1998/12/31 196627.66 203669.75
1999/01/31 197631.56 204546.49
1999/02/28 196260.00 202818.71
1999/03/31 197303.02 204236.77
1999/04/30 197874.86 204818.41
1999/05/28 197417.03 204203.79
IMATRL PRASUN SHR__CHT 19990531 19990614 113329 R00000000000123
$100,000 OVER 10 YEARS: Let's say hypothetically that $100,000 was
invested in Fidelity Institutional Short-Intermediate Government Fund
on May 31, 1989. As the chart shows, by May 31, 1999, the value of the
investment would have grown to $197,417 - a 97.42% increase on the
initial investment. For comparison, look at how the Lehman Brothers
1-5 Year U.S. Government Bond Index did over the same period. With
dividends and capital gains, if any, reinvested, the same $100,000
would have grown to $204,204 - a 104.20% increase.
(checkmark)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.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
TOTAL RETURN COMPONENTS
SIX MONTHS ENDED MAY 31, YEARS ENDED NOVEMBER 30,
1999 1998 1997 1996 1995 1994
Dividend returns 3.23% 6.54% 6.83% 6.90% 7.56% 6.07%
Capital returns -2.43% 0.64% -0.84% -1.04% 4.23% -6.78%
Total returns 0.80% 7.18% 5.99% 5.86% 11.79% -0.71%
</TABLE>
TOTAL RETURN COMPONENTS include both dividend returns and capital
returns. A dividend return reflects the actual dividends paid by the
fund. A capital 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 capital gains, if
any, paid by the fund are reinvested.
DIVIDENDS AND YIELD
PERIODS ENDED MAY 31, 1999 PAST 1 MONTH PAST 6 MONTHS PAST 1 YEAR
Dividends per share 4.84(cents) 30.58(cents) 59.54(cents)
Annualized dividend rate 6.13% 6.54% 6.32%
30-day annualized yield 5.66% - -
DIVIDENDS per share show the income paid by the fund for a set period.
If you annualize this number, based on an average share price of $9.29
over the past one month, $9.38 over the past six months and $9.42 over
the past one year, you can compare the fund'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.
FUND TALK: THE MANAGER'S OVERVIEW
MARKET RECAP
Signs of continued strength and
emerging inflationary pressures
in the U.S. economy, along with
improving conditions abroad,
weighed heavily on the
taxable-bond market, limiting its
advance for the six-month period
that ended May 31, 1999. The
Lehman Brothers Aggregate Bond
Index - a widely followed
measure of taxable bond
performance - returned -0.76%
for this period. Treasury bond bears
were on the prowl late in the
period as a sharp rise in consumer
prices sparked the worst sell-off in
three years, pushing bond prices
down and bringing yields up to the
pre-crisis levels of last summer. The
negative sentiment that pervaded
the marketplace for much of the
period was fueled further in
mid-May by the Federal Reserve
Board's shift in bias toward raising
interest rates. The Lehman Brothers
Treasury Index, sensitive to these
changing conditions, returned
- -2.11% for the six-month period that
ended May 31, 1999. As investors
fled Treasuries for more attractive
alternatives, spread sector securities
- - mortgages, agencies and the
like - rallied in response. Although
the emergence of volatility as well
as a new range in yields late in the
period slowed the rise in spread
products, their performance
outlasted that of their Treasury
counterparts over the length of the
period. The Lehman Brothers U.S.
Agency Index and the Lehman
Brothers Mortgage-Backed
Securities Index had returns of
- -0.77% and 1.32%, respectively.
(photograph of Andrew Dudley)
An interview with Andrew Dudley, Portfolio Manager of Fidelity
Institutional Short-Intermediate Government Fund
Q. HOW DID THE FUND PERFORM, ANDREW?
A. For the six-month period that ended May 31, 1999, the fund posted a
return of 0.80%. By comparison, the short-intermediate U.S. government
funds average tracked by Lipper Inc. returned 0.20%, and the Lehman
Brothers 1-5 Year U.S. Government Bond Index returned 0.61%. For the
12 months that ended May 31, 1999, the fund returned 4.70%. During the
same period, the Lipper peer group returned 3.94%, while the Lehman
Brothers index returned 5.20%.
Q. OVERALL, WHAT FACTORS CONTRIBUTED TO THE FUND'S SOUND PERFORMANCE
RELATIVE TO ITS BENCHMARK OVER THE SIX-MONTH PERIOD?
A. I'd say that sector allocation was the primary contributor to the
fund's success. By maintaining a significant overweighting in agency
securities and a corresponding underweighting in Treasuries relative
to the index, the fund was well-positioned to take advantage of the
rebound in spread sectors - mortgages, agencies and the like - that
occurred over the past six months. Agencies soundly outperformed
comparable duration Treasuries in this time frame. Also helping
performance was the fund's investment in mortgage securities - a
sector not included in the index - which benefited from a slowdown in
refinancing activity and also outpaced Treasuries. The fund's overall
return was further supported by a rise in the general level of
interest rates over the period, which resulted in spread compression,
or tightening, between the yields of Treasuries and those of
non-government issues.
Q. WHAT WERE YOUR PRINCIPAL STRATEGIES DURING THE PERIOD?
A. I added to the fund's exposure to mortgages at the expense of its
heavily overweighted agency position. The reduction in agencies was
attributable to a subtle shift away from some of the less highly
visible agencies in the portfolio. These are securities of similar
credit quality that are not traded as frequently as some other
well-known issues, such as Fannie Mae and Freddie Mac. I was able to
replace these positions with mortgages and various other
short-duration agency issues. Since taking over the fund last
December, I have chosen to hang on to the fund's position in
higher-coupon mortgages. I did so given my assessment of their
valuations relative to where I anticipated the market would go in
response to slackening prepayment activity. This strategy helped the
fund, which benefited from the sector's rally.
Q. HOW WOULD YOU DESCRIBE THE INVESTMENT CLIMATE OVER THE PAST SIX
MONTHS?
A. Most of the period through March was marked by the rebound in
spread securities. Over the last two months of the period, we began to
flirt with a potential new range in yields amid growing concern of a
Fed rate hike, which could lead to volatility in the marketplace. This
uncertainty, in part, prevented the spread sectors from gaining any
more ground versus Treasuries. Higher volatility usually spells
trouble for spread products.
Q. WHAT MOVES DETRACTED FROM PERFORMANCE?
A. There was very little that hurt us during the period. The fund did,
however, maintain a slight barbell strategy - owning more securities
on both ends of the yield curve relative to its benchmark - which
weighed on performance. In a period such as the past six months, where
the short end of the curve steepened considerably, the strategy
failed. In effect, we owned a greater proportion of the belly of the
curve - the three-to-five-year segment, which performed the worst.
Q. WHAT'S YOUR OUTLOOK?
A. I am still confident about spread securities in general and their
relative weighting in the portfolio. The market is certainly different
now than it was earlier in the period, as spread compression, on the
whole, has seemingly ended. We are presented with a new set of
challenges as we enter into the
next period, since most of the easier trades, as I see it, on a sector
basis are gone. This will require us to concentrate our efforts on
security selection as the way to extract value from the marketplace
going forward. There are opportunities out there among the different
sectors, and we will leverage Fidelity's research strength to find
them.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER AND DO NOT NECESSARILY REPRESENT THE VIEWS OF FIDELITY OR
ANY OTHER PERSON IN THE FIDELITY ORGANIZATION. ANY SUCH VIEWS ARE
SUBJECT TO CHANGE AT ANY TIME BASED UPON MARKET OR OTHER CONDITIONS
AND FIDELITY DISCLAIMS ANY RESPONSIBILITY TO UPDATE SUCH VIEWS. THESE
VIEWS MAY NOT BE RELIED ON AS INVESTMENT ADVICE AND, BECAUSE
INVESTMENT DECISIONS FOR A FIDELITY FUND ARE BASED ON NUMEROUS
FACTORS, MAY NOT BE RELIED ON AS AN INDICATION OF TRADING INTENT ON
BEHALF OF ANY FIDELITY FUND.
(checkmark)FUND FACTS
GOAL: seeks a high level of
current income in a manner
consistent with preservation of
capital
START DATE: November 10, 1986
SIZE: as of May 31, 1999,
more than $421 million
MANAGER: Andrew Dudley, since
December 1998; manager,
various Fidelity and Spartan
government and mortgage
funds; joined Fidelity in 1996
ANDREW DUDLEY ON THE
CHANGING FACE OF
FIXED-INCOME SUPPLY:
"Today, in the midst of a federal
budget surplus, the U.S. has cut
its borrowing and thus reduced the
level of new Treasury issuance.
This drop-off in supply is
potentially troublesome for active
traders in the market who hold
liquidity at a premium.
Government agencies, hearing
the call, responded, in part, by
consolidating their former pattern
of several smaller issues into
fewer, but larger, issues. So,
instead of issuing five $200 million
issues, for instance, they now offer
a single $1 billion deal. What this
does is create more liquidity for
trading in the secondary market.
These new deals, over time, could
make up for the lesser amount of
Treasuries available in the
marketplace. The enhanced
liquidity found in these repackaged
offerings is attractive to certain
types of buyers. At the margin, I
will probably shift the type of
securities the fund buys toward
these new issues. So, on the
whole, this change will have an
impact on the type of agencies we
own in the future. As our position
in these larger issues grows, there
will be more of an opportunity for
us to use them as trading tools. By
allowing us to move more easily back
and forth between Treasuries and
agencies in a very liquid way, when
appropriate, we may be able to
capture the opportunities that
result over time."
INVESTMENT CHANGES
<TABLE>
<CAPTION>
<S> <C> <C>
COUPON DISTRIBUTION AS OF MAY
31, 1999
% OF FUND'S INVESTMENTS % OF FUND'S INVESTMENTS 6
MONTHS AGO
Zero coupon bonds 1.7 0.0
Less than 5% 0.0 5.6
5 - 5.99% 26.7 28.1
6 - 6.99% 26.7 25.2
7 - 7.99% 8.3 4.1
8 - 8.99% 9.9 13.0
9 - 9.99% 9.5 13.0
10 - 10.99% 8.8 6.2
11% and over 4.4 4.1
</TABLE>
COUPON DISTRIBUTION SHOWS THE RANGE OF STATED INTEREST RATES ON THE
FUND'S INVESTMENTS, EXCLUDING SHORT-TERM INVESTMENTS.
AVERAGE YEARS TO MATURITY AS
OF MAY 31, 1999
6 MONTHS AGO
Years 3.5 3.7
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, 1999
6 MONTHS AGO
Years 2.3 2.3
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 (% OF FUND'S
INVESTMENTS)
AS OF MAY 31, 1999
Mortgage Securities 18.2%
CMOs and Other Mortgage
Related Securities 1.8%
U.S. Treasury Obligations
21.9%
U.S. Government Agency
Obligations 54.1%
Short-Term Investments 4.0%
Row: 1, Col: 1, Value: 18.2
Row: 1, Col: 2, Value: 0.0
Row: 1, Col: 3, Value: 1.8
Row: 1, Col: 4, Value: 0.0
Row: 1, Col: 5, Value: 21.9
Row: 1, Col: 6, Value: 0.0
Row: 1, Col: 7, Value: 54.1
Row: 1, Col: 8, Value: 4.0
AS OF NOVEMBER 30, 1998
Mortgage Securities 16.1%
CMOs and Other Mortgage
Related Securities 1.2%
U.S. Treasury Obligations
13.2%
U.S. Government Agency
Obligations 68.8%
Short-Term Investments 0.7%
Row: 1, Col: 1, Value: 16.1
Row: 1, Col: 2, Value: 0.0
Row: 1, Col: 3, Value: 1.2
Row: 1, Col: 4, Value: 0.0
Row: 1, Col: 5, Value: 13.2
Row: 1, Col: 6, Value: 0.0
Row: 1, Col: 7, Value: 68.8
Row: 1, Col: 8, Value: 0.7
INVESTMENTS MAY 31, 1999 (UNAUDITED)
Showing Percentage of Total Value of Investment in Securities
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
U.S. GOVERNMENT AND
GOVERNMENT AGENCY
OBLIGATIONS - 76.0%
PRINCIPAL AMOUNT VALUE (NOTE 1)
U.S. GOVERNMENT AGENCY
OBLIGATIONS - 54.1%
Fannie Mae:
5.125% 2/13/04 $ 1,100,000 $ 1,059,432
6.15% 1/13/00 6,000,000 6,036,540
Federal Agricultural Mortgage
Corp.:
6.92% 8/10/00 1,040,000 1,057,711
7.61% 10/16/00 3,000,000 3,086,250
Federal Farm Credit Bank 5.7% 1,540,000 1,502,162
1/18/05
Federal Home Loan Bank:
5.125% 2/26/02 21,300,000 20,923,842
5.375% 3/2/01 15,000,000 14,913,300
5.595% 3/27/01 3,900,000 3,893,292
5.83% 12/24/99 13,000,000 13,048,750
Financing Corp. stripped 2,500,000 2,241,375
principal 0% 4/6/01
Government Loan Trusts 2,597,036 2,811,499
(assets of Trust guaranteed
by U.S. Government through
Agency for International
Development) 8.5% 4/1/06
Government Trust Certificates
(assets of Trust guaranteed
by U.S. Government through
Defense Security Assistance
Agency):
Class 1-C, 9.25% 11/15/01 22,038,765 23,092,438
Class 2-E 9.4% 5/15/02 2,331,973 2,435,396
Class T-3, 9.625% 5/15/02 4,688,244 4,904,512
Guaranteed Export Trust
Certificates (assets of
Trust guaranteed by U.S.
Government through Export-
Import Bank):
Series 1993 C, 5.2% 10/15/04 501,600 491,196
Series 1993 D, 5.23% 5/15/05 444,255 433,537
Series 1994 A, 7.12% 4/15/06 1,706,031 1,749,023
Series 1994 F, 8.187% 12/15/04 22,583,927 23,665,404
Series 1995 A, 6.28% 6/15/04 3,875,882 3,906,587
Guaranteed Trade Trust
Certificates (assets of
Trust guaranteed by U.S.
Government through Export-
Import Bank):
Series 1992 A, 7.02% 9/1/04 5,737,875 5,892,545
Series 1997 A, 6.104% 7/15/03 5,475,000 5,487,593
Israel Export Trust 8,889,882 9,019,852
Certificates (assets of
Trust guaranteed by U.S.
Government through Export-
Import Bank) Series 1994 1,
6.88% 1/26/03
Overseas Private Investment 2,751,413 2,768,444
Corp. U.S. Government
guaranteed participation
certificate Series 1994 195,
6.08% 8/15/04 (callable)
U.S. GOVERNMENT AND
GOVERNMENT AGENCY
OBLIGATIONS - CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
U.S. GOVERNMENT AGENCY
OBLIGATIONS - CONTINUED
Private Export Funding Corp.:
secured:
5.65% 3/15/03 $ 646,286 $ 642,569
5.8% 2/1/04 6,010,000 5,989,927
5.82% 6/15/03 (a) 11,500,000 11,438,906
6.86% 4/30/04 1,950,250 1,992,590
7.9% 3/31/00 1,000,000 1,020,310
8.4% 7/31/01 5,200,000 5,474,612
State of Israel 6.625% 8/15/03 2,500,000 2,549,650
State of Israel (guaranteed
by U.S. Government through
Agency for International
Development):
5.25% 9/15/00 17,250,000 17,137,358
5.625% 9/15/03 10,271,000 10,058,698
Tennessee Valley Authority 6% 11,649,000 11,738,231
11/1/00
U.S. Department of Housing 3,000,000 3,013,620
and Urban Development
government guaranteed
participation certificates
8.12% 8/1/99
TOTAL U.S. GOVERNMENT AGENCY 225,477,151
OBLIGATIONS
U.S. TREASURY OBLIGATIONS -
21.9%
U.S. Treasury Bonds:
10.75% 8/15/05 24,700,000 30,982,943
12% 8/15/13 4,200,000 5,960,724
U.S. Treasury Notes:
5.5% 5/31/03 5,000,000 4,967,950
6.5% 8/31/01 25,700,000 26,242,013
7.875% 8/15/01 17,000,000 17,831,470
U.S. Treasury Notes - Coupon
STRIPS:
0% 3/31/00 1,034,000 992,361
0% 9/30/00 734,000 685,050
0% 11/30/00 107,000 98,888
0% 3/31/01 1,034,000 937,735
0% 9/30/01 399,000 351,806
0% 10/31/01 142,000 124,589
0% 3/31/02 1,034,000 884,959
0% 9/30/02 834,000 693,421
U.S. GOVERNMENT AND
GOVERNMENT AGENCY
OBLIGATIONS - CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
U.S. TREASURY OBLIGATIONS -
CONTINUED
U.S. Treasury Notes - Coupon
STRIPS: - continued
0% 10/31/02 $ 142,000 $ 117,428
0% 11/30/02 207,000 170,409
TOTAL U.S. TREASURY 91,041,746
OBLIGATIONS
TOTAL U.S. GOVERNMENT AND 316,518,897
GOVERNMENT AGENCY OBLIGATIONS
(Cost $321,039,915)
U.S. GOVERNMENT AGENCY -
MORTGAGE SECURITIES - 18.2%
FANNIE MAE - 11.5%
5.5% 1/1/09 1,514,396 1,461,574
6% 10/1/08 to 5/1/14 24,326,511 23,833,475
6.5% 7/1/00 to 6/1/29 10,460,098 10,251,526
7% 6/1/00 to 3/1/29 3,613,411 3,626,763
8% 6/1/02 to 8/1/09 391,509 404,197
8.25% 12/1/01 1,820,174 1,884,896
9% 2/1/13 to 8/1/21 2,252,006 2,390,397
9.5% 5/1/09 to 11/1/21 235,895 250,842
10% 1/1/17 to 1/1/20 434,317 464,069
10.5% 5/1/10 to 8/1/20 295,925 322,876
11% 11/1/10 to 9/1/14 1,340,086 1,462,007
11.5% 12/1/00 to 7/15/19 1,376,937 1,526,706
12% 4/1/15 123,008 137,196
12.5% 3/1/16 112,029 127,802
12.75% 10/1/13 27,953 32,243
48,176,569
FREDDIE MAC - 3.8%
6.25% 1/1/03 704,835 700,303
6.5% 7/1/03 to 5/1/08 724,037 723,903
7% 5/1/01 to 6/1/01 318,802 321,591
7.5% 11/1/12 1,393,588 1,425,375
8% 9/1/07 to 12/1/09 1,857,236 1,919,114
8.5% 5/1/06 to 6/1/14 1,645,798 1,712,466
9% 12/1/07 to 3/1/22 1,128,373 1,192,251
9.5% 1/1/17 to 12/1/22 2,538,144 2,730,003
10% 1/1/09 to 6/1/20 711,525 763,358
U.S. GOVERNMENT AGENCY -
MORTGAGE SECURITIES -
CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
FREDDIE MAC - CONTINUED
10.25% 12/1/09 $ 29,522 $ 31,476
10.5% 1/1/16 to 5/1/21 1,835,461 1,997,057
11% 12/1/11 to 1/1/19 44,723 48,869
11.5% 10/1/15 46,446 50,956
12% 9/1/11 to 11/1/19 100,474 112,177
12.25% 11/1/14 59,331 66,850
12.5% 8/1/10 to 6/1/19 1,739,110 1,969,086
15,764,835
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION - 2.9%
6.5% 5/15/28 to 4/15/29 315 307
8.5% 5/15/16 to 4/15/17 267,810 284,308
9% 1/15/05 to 2/15/17 (b) 661,412 708,089
9.5% 11/15/09 to 11/15/20 1,668,098 1,792,734
10% 11/15/09 to 9/15/19 388,184 416,328
10.5% 1/15/16 to 1/15/18 965,819 1,050,200
11% 12/15/09 to 8/15/19 3,185,537 3,513,124
11.5% 4/15/10 to 5/15/19 2,927,838 3,272,521
12% 3/20/14 to 2/15/16 568,838 643,607
12.5% 11/15/14 115,031 132,433
13% 8/15/14 to 11/15/14 108,053 124,190
13.5% 7/15/11 41,584 48,212
11,986,053
TOTAL U.S. GOVERNMENT AGENCY 75,927,457
- - MORTGAGE SECURITIES
(Cost $75,761,093)
COLLATERALIZED MORTGAGE
OBLIGATIONS - 1.8%
U.S. GOVERNMENT AGENCY - 1.8%
Fannie Mae REMIC planned
amortization class:
Series 1993-191 Class PE, 1,303,094 1,301,872
5.8% 9/25/06
Series 1993-224 Class G, 6.5% 4,000,000 4,026,240
9/25/21
Series 1993-229 Class PD, 2,088,492 2,073,481
5.6% 7/25/06
TOTAL COLLATERALIZED MORTGAGE 7,401,593
OBLIGATIONS
(Cost $7,414,136)
CASH EQUIVALENTS - 4.0%
MATURITY AMOUNT VALUE (NOTE 1)
Investments in repurchase $ 16,683,094 $ 16,674,000
agreements (U.S. Government
obligations), in a joint
trading account at 4.91%,
dated 5/28/99 due 6/1/99
(Cost $16,674,000)
TOTAL INVESTMENT IN $ 416,521,947
SECURITIES - 100%
(Cost $420,889,144)
</TABLE>
LEGEND
(a) Security exempt from registration under Rule 144A of the
Securities Act of 1933. These securities may be resold in
transactions exempt from registration, normally to qualified
institutional buyers. At the period end, the value of these securities
amounted to $11,438,906 or 2.7% of net assets.
(b) A portion of these securities were purchased on a delayed delivery
or when-issued basis.
INCOME TAX INFORMATION
At May 31, 1999, the aggregate cost of investment securities for
income tax purposes was $420,893,433. Net unrealized depreciation
aggregated $4,371,486, of which $1,587,668 related to appreciated
investment securities and $5,959,154 related to depreciated investment
securities.
At November 30, 1998, the fund had a capital loss carryforward of
approximately $21,597,000 of which $14,039,000, $3,288,000, $4,169,000
and $101,000 will expire on November 30, 2002, 2003, 2004 and 2005,
respectively.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
MAY 31, 1999 (UNAUDITED)
ASSETS
Investment in securities, at $ 416,521,947
value (including repurchase
agreements of $16,674,000)
(cost $420,889,144) - See
accompanying schedule
Cash 6,748
Receivable for investments 8,608,761
sold
Receivable for fund shares 286,994
sold
Interest receivable 6,187,495
TOTAL ASSETS 431,611,945
LIABILITIES
Payable for investments $ 9,127,562
purchased Regular delivery
Delayed delivery 490,072
Payable for fund shares 444,506
redeemed
Distributions payable 226,607
Accrued management fee 157,889
Other payables and accrued 2,721
expenses
TOTAL LIABILITIES 10,449,357
NET ASSETS $ 421,162,588
Net Assets consist of:
Paid in capital $ 448,313,020
Undistributed net investment 516,735
income
Accumulated undistributed net (23,299,970)
realized gain (loss) on
investments
Net unrealized appreciation (4,367,197)
(depreciation) on investments
NET ASSETS $ 421,162,588
NET ASSET VALUE, offering $9.25
price and redemption price
per share ($421,162,588
(divided by) 45,530,826
shares)
STATEMENT OF OPERATIONS
SIX MONTHS ENDED MAY 31,
1999 (UNAUDITED)
INVESTMENT INCOME $ 13,376,895
Interest
EXPENSES
Management fee $ 894,045
Non-interested trustees' 664
compensation
Total expenses before 894,709
reductions
Expense reductions (16,289) 878,420
NET INVESTMENT INCOME 12,498,475
REALIZED AND UNREALIZED GAIN (1,698,549)
(LOSS)
Net realized gain (loss) on
investment securities
Change in net unrealized (7,782,951)
appreciation (depreciation)
on investment securities
NET GAIN (LOSS) (9,481,500)
NET INCREASE (DECREASE) IN $ 3,016,975
NET ASSETS RESULTING FROM
OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
SIX MONTHS ENDED MAY 31, 1999 YEAR ENDED NOVEMBER 30, 1998
(UNAUDITED)
INCREASE (DECREASE) IN NET
ASSETS
Operations Net investment $ 12,498,475 $ 23,067,092
income
Net realized gain (loss) (1,698,549) 566,385
Change in net unrealized (7,782,951) 1,261,224
appreciation (depreciation)
NET INCREASE (DECREASE) IN 3,016,975 24,894,701
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (12,937,993) (22,513,973)
from net investment income
Share transactions Net 126,274,533 175,113,300
proceeds from sales of shares
Reinvestment of distributions 11,619,434 20,197,390
Cost of shares redeemed (86,363,699) (175,282,427)
NET INCREASE (DECREASE) IN 51,530,268 20,028,263
NET ASSETS RESULTING FROM
SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) 41,609,250 22,408,991
IN NET ASSETS
NET ASSETS
Beginning of period 379,553,338 357,144,347
End of period (including $ 421,162,588 $ 379,553,338
undistributed net investment
income of $516,735 and
$956,253, respectively)
OTHER INFORMATION
Shares Sold 13,460,803 18,516,963
Issued in reinvestment of 1,241,184 2,139,251
distributions
Redeemed (9,199,046) (18,559,541)
Net increase (decrease) 5,502,941 2,096,673
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS
SIX MONTHS ENDED MAY 31, 1999 YEARS ENDED NOVEMBER 30,
(UNAUDITED) 1998 1997 1996 1995
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 9.480 $ 9.420 $ 9.500 $ 9.600 $ 9.210
period
Income from Investment
Operations
Net investment income .295 D .611 D .637 D .641 .669
Net realized and unrealized (.219) .045 (.090) (.102) .383
gain (loss)
Total from investment .076 .656 .547 .539 1.052
operations
Less Distributions
From net investment income (.306) (.596) (.627) (.639) (.662)
From net realized gain - - - - -
Total distributions (.306) (.596) (.627) (.639) (.662)
Net asset value, end of $ 9.250 $ 9.480 $ 9.420 $ 9.500 $ 9.600
period
TOTAL RETURN B, C 0.80% 7.18% 5.99% 5.86% 11.79%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 421,163 $ 379,553 $ 357,144 $ 337,131 $ 348,570
(000 omitted)
Ratio of expenses to average .45% A .45% .45% .42% E .45%
net assets
Ratio of expenses to average .44% A, F .44% F .44% F .41% F .45%
net assets after expense
reductions
Ratio of net investment 6.30% A 6.47% 6.79% 6.95% 7.14%
income to average net assets
Portfolio turnover rate 74% A 210% 147% 141% 214%
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
FINANCIAL HIGHLIGHTS
YEARS ENDED NOVEMBER 30,
1994
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 9.890
period
Income from Investment
Operations
Net investment income .597
Net realized and unrealized (.665)
gain (loss)
Total from investment (.068)
operations
Less Distributions
From net investment income (.602)
From net realized gain (.010)
Total distributions (.612)
Net asset value, end of $ 9.210
period
TOTAL RETURN B, C (0.71)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 339,788
(000 omitted)
Ratio of expenses to average .45%
net assets
Ratio of expenses to average .45%
net assets after expense
reductions
Ratio of net investment 7.06%
income to average net assets
Portfolio turnover rate 303%
</TABLE>
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
D NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.
E FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD
HAVE BEEN HIGHER.
F FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES.
NOTES TO FINANCIAL STATEMENTS
For the period ended May 31, 1999 (Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity Institutional Short-Intermediate Government Fund (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, as an open-end
management investment company organized as a Massachusetts business
trust. The financial statements have been prepared in conformity with
generally accepted accounting principles which require management to
make certain estimates and assumptions at the date of the financial
statements. 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.
Securities (including restricted 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. Short-term
securities with remaining maturities of sixty days or less for which
quotations are not readily available are valued at amortized cost or
original cost plus accrued interest, both of which approximate current
value.
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.
EXPENSES. Most expenses of the trust can be directly attributed to a
fund. Expenses which cannot be directly attributed are apportioned
among the funds in the trust.
DISTRIBUTIONS TO SHAREHOLDERS. Distributions are declared daily and
paid monthly from net investment income. Distributions from realized
gains, if any, are recorded 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, capital loss carryforwards 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.
Undistributed net investment income 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.
1. SIGNIFICANT ACCOUNTING
POLICIES - CONTINUED
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 for U.S. Treasury or Federal Agency obligations.
REPURCHASE AGREEMENTS. The underlying U.S. Treasury or Federal Agency
securities are transferred to an account of the fund, or to the Joint
Trading Account, at a bank custodian. The securities are
marked-to-market daily and maintained at a value at least equal to the
principal amount of the repurchase agreement (including accrued
interest). FMR, the fund's investment adviser, is responsible for
determining that the value of the underlying securities remains in
accordance with the market value requirements stated above.
DELAYED DELIVERY TRANSACTIONS. The fund may purchase or sell
securities on a delayed delivery 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 values of the securities purchased on a delayed
delivery 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
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.
RESTRICTED SECURITIES. The fund is permitted to invest in securities
that are subject to legal or contractual restrictions on resale. These
securities generally may be resold in transactions exempt from
registration or to the public if the securities are registered.
Disposal of these securities may involve time-consuming negotiations
and expense, and prompt sale at an acceptable price may be difficult.
At the end of the period, the fund had no investments in restricted
securities (excluding 144A issues).
3. PURCHASES AND SALES OF INVESTMENTS.
Purchases and sales of long-term U.S. government and government agency
obligations aggregated $176,988,871 and $140,421,196, 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. FMR receives a fee that is computed daily at
an annual rate of .45% of the fund's average net assets.
SUB-ADVISER FEE. FMR, on behalf of the fund, has entered into a
sub-advisory agreement(effective January 1, 1999) with Fidelity
Investments Money Management, Inc. (FIMM), a wholly owned subsidiary
of FMR. For its services, FIMM receives a fee from FMR of 50% of the
management fee payable to FMR. The fee is paid prior to any voluntary
expense reimbursements which may be in effect.
5. EXPENSE REDUCTIONS.
FMR has entered into arrangements on behalf of the fund with the
fund's custodian and transfer agent whereby credits realized as a
result of uninvested cash balances were used to reduce a portion of
the fund's expenses. During the period, the fund's expenses were
reduced by $16,289 under these arrangements.
6. BENEFICIAL INTEREST.
At the end of the period, two shareholders were each record owners of
more than 10% of the total outstanding shares of the fund, totaling
33.3%.
INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
INVESTMENT SUB-ADVISER
Fidelity Investment Money
Management, Inc. (FIMM),
Merrimack, NH
OFFICERS
Edward C. Johnson 3d, President
Robert C. Pozen, Senior Vice President
Fred L. Henning, Jr., Vice President
Dwight D. Churchill, Vice President
Andrew J. Dudley, Vice President
Stanley N. Griffith, Assistant Vice President
Eric D. Roiter, Secretary
Richard A. Silver, Treasurer
Matthew N. Karstetter, Deputy Treasurer
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
Thomas J. Simpson, Assistant Treasurer
BOARD OF TRUSTEES
Ralph F. Cox *
Phyllis Burke Davis *
Robert M. Gates *
Edward C. Johnson 3d
E. Bradley Jones *
Donald J. Kirk *
Peter S. Lynch
Marvin L. Mann *
William O. McCoy *
Gerald C. McDonough *
Robert C. Pozen
Thomas R. Williams *
ADVISORY BOARD
J. Gary Burkhead
Abigail P. Johnson
* INDEPENDENT TRUSTEES
ISIG-SANN-0799 80122
1.704564.101
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER SERVICING AGENT
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
CUSTODIAN
The Bank of New York
New York, NY
(2_fidelity_logos)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
