(2_FIDELITY_LOGOS)FIDELITY ADVISOR
(registered trademark)
LIMITED TERM TAX-EXEMPT FUND - CLASS A AND CLASS B
SEMIANNUAL REPORT
MAY 31, 1995
CONTENTS
PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.
PERFORMANCE 4 How the fund has done over time.
FUND TALK 11 The manager's review of fund
performance, strategy and outlook.
INVESTMENT CHANGES 14 A summary of major shifts in the
fund's investments over the past six
months.
INVESTMENTS 15 A complete list of the fund's
investments with their market
values.
FINANCIAL STATEMENTS 20 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.
NOTES 26 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 ADVISOR FUND, INCLUDING CHARGES AND
EXPENSES,
CONTACT YOUR INVESTMENT PROFESSIONAL FOR A FREE PROSPECTUS. READ IT
CAREFULLY BEFORE
YOU INVEST OR SEND MONEY.
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
ADVISOR LIMITED TERM TAX-EXEMPT FUND - CLASS A
PERFORMANCE: THE BOTTOM LINE
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 $10,000 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 securities that
have grown in value). You can also look at income to measure performance.
Initial offering of Class A shares took place on September 10, 1992. See
page 6 for additional information about Class A's performance.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED MAY 31, 1995 PAST 6 PAST 1 PAST 5 LIFE OF
MONTHS YEAR YEARS FUND
Advisor Limited Term Tax-Exempt - Class 10.63% 6.48% 38.29% 97.35%
A
Advisor Limited Term Tax-Exempt - Class
A 5.38% 1.42% 31.72% 87.98%
(incl. max. 4.75% sales charge)
Lehman Brothers Municipal Bond Index 13.05% 9.11% 51.33% n/a
Average Intermediate Municipal Bond Fund 9.37% 6.95% 42.93% n/a
Consumer Price Index 1.53% 3.19% 17.80% 40.54%
CUMULATIVE TOTAL RETURNS show Class A's performance in percentage terms
over a set period - in this case, six months, one year, five years, or
since the fund began on September 19, 1985. 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 Class A's returns
to those of the Lehman Brothers Municipal Bond Index - a broad gauge of the
municipal bond market. To measure how Class A's performance stacked up
against its peers, you can compare it to the average intermediate municipal
bond fund, which reflects the performance of over 119 intermediate
municipal bond funds with similar objectives tracked by Lipper Analytical
Services over the past six months. These benchmarks include reinvested
dividends and capital gains, if any, and exclude the effects of sales
charges. Comparing Class A'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
PERIODS ENDED MAY 31, 1995 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND
Advisor Limited Term Tax-Exempt - Class A 6.48% 6.70% 7.26%
Advisor Limited Term Tax-Exempt - Class A
(incl. max. 4.75% sales charge) 1.42% 5.66% 6.72%
Lehman Brothers Municipal Bond Index 9.11% 8.64% n/a
Average Intermediate Municipal Bond Fund 6.95% 7.40% n/a
Consumer Price Index 3.19% 3.33% 3.58%
AVERAGE ANNUAL TOTAL RETURNS take Class A shares' actual (or cumulative)
return and show you what would have happened if Class A shares had
performed at a constant rate each year.
$10,000 OVER LIFE OF FUND
Fidelity Advisor LiMunicipal Bond Ind
09/30/85 9525.00 10000.00
10/31/85 9768.57 10342.70
11/30/85 9955.41 10713.69
12/31/85 9980.92 10807.87
01/31/86 10339.67 11444.45
02/28/86 10513.60 11898.34
03/31/86 10579.24 11902.14
04/30/86 10625.60 11911.19
05/31/86 10531.06 11717.28
06/30/86 10637.15 11829.06
07/31/86 10664.21 11900.86
08/31/86 11016.20 12433.66
09/30/86 11062.61 12464.87
10/31/86 11292.69 12680.14
11/30/86 11387.96 12931.33
12/31/86 11349.73 12895.64
01/31/87 11552.35 13283.93
02/28/87 11682.09 13349.29
03/31/87 11621.04 13207.78
04/30/87 11146.28 12545.02
05/31/87 11139.34 12482.79
06/30/87 11347.35 12849.29
07/31/87 11480.45 12980.35
08/31/87 11505.14 13009.56
09/30/87 11138.01 12529.90
10/31/87 11241.39 12574.25
11/30/87 11498.94 12902.56
12/31/87 11613.75 13089.78
01/31/88 12030.22 13556.04
02/29/88 12079.30 13699.33
03/31/88 11902.69 13539.73
04/30/88 11962.53 13642.63
05/31/88 12000.38 13603.20
06/30/88 12084.74 13802.22
07/31/88 12147.61 13892.21
08/31/88 12153.43 13904.43
09/30/88 12286.78 14156.10
10/31/88 12432.95 14405.96
11/30/88 12392.50 14274.00
12/31/88 12470.70 14420.02
01/31/89 12596.91 14718.23
02/28/89 12521.67 14550.30
03/31/89 12481.96 14515.52
04/30/89 12658.38 14860.12
05/31/89 12847.41 15168.76
06/30/89 12988.41 15374.75
07/31/89 13118.03 15584.01
08/31/89 13075.54 15431.44
09/30/89 13072.94 15385.14
10/31/89 13177.79 15572.84
11/30/89 13321.97 15845.37
12/31/89 13442.05 15975.30
01/31/90 13398.20 15900.22
02/28/90 13517.18 16041.73
03/31/90 13540.21 16046.54
04/30/90 13400.97 15931.00
05/31/90 13645.30 16278.30
06/30/90 13758.27 16421.55
07/31/90 13924.31 16662.95
08/31/90 13843.35 16421.33
09/30/90 13880.42 16431.19
10/31/90 14035.65 16728.59
11/30/90 14259.59 17064.84
12/31/90 14298.07 17139.92
01/31/91 14457.73 17369.60
02/28/91 14589.36 17520.71
03/31/91 14599.16 17527.72
04/30/91 14731.50 17760.84
05/31/91 14849.52 17918.91
06/30/91 14858.54 17900.99
07/31/91 15007.37 18119.38
08/31/91 15127.28 18358.56
09/30/91 15220.00 18597.22
10/31/91 15383.44 18764.59
11/30/91 15422.21 18817.14
12/31/91 15677.06 19221.70
01/31/92 15786.57 19265.91
02/29/92 15804.68 19271.69
03/31/92 15744.25 19279.40
04/30/92 15854.37 19450.99
05/31/92 16028.27 19680.51
06/30/92 16238.62 20011.14
07/31/92 16588.34 20611.48
08/31/92 16465.69 20409.49
09/30/92 16621.34 20542.15
10/31/92 16503.08 20340.83
11/30/92 16804.63 20704.93
12/31/92 16824.93 20916.13
01/31/93 17016.24 21158.75
02/28/93 17488.68 21924.70
03/31/93 17315.21 21692.30
04/30/93 17436.99 21911.39
05/31/93 17510.38 22034.09
06/30/93 17694.93 22402.06
07/31/93 17715.04 22431.19
08/31/93 18040.97 22897.75
09/30/93 18227.61 23158.79
10/31/93 18244.72 23202.79
11/30/93 18102.50 22998.61
12/31/93 18411.80 23483.88
01/31/94 18582.63 23751.59
02/28/94 18118.63 23136.43
03/31/94 17410.72 22194.77
04/30/94 17564.83 22383.43
05/31/94 17722.04 22578.16
06/30/94 17594.68 22447.21
07/31/94 17839.83 22858.00
08/31/94 17907.28 22938.00
09/30/94 17706.72 22600.81
10/31/94 17437.48 22198.52
11/30/94 17056.44 21796.72
12/31/94 17365.19 22276.25
01/31/95 17802.18 22913.35
02/28/95 18253.91 23580.13
03/31/95 18453.58 23851.30
04/30/95 18448.29 23879.92
05/31/95 18869.63 24641.69
$10,000 OVER LIFE OF FUND: Let's say you invested $10,000 in Fidelity
Advisor Limited Term Tax-Exempt Fund - Class A on September 30, 1985,
shortly after the fund started and paid the maximum 4.75% sales charge. As
the chart shows, by May 31, 1995, the value of your investment would have
grown to $18,870 - a 88.70% increase on your initial investment. For
comparison, look at how the Lehman Brothers Municipal Bond Index did over
the same period. With dividends reinvested, the same $10,000 investment
would have grown to $24,642 - a 146.42% increase.
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)
Class A shares bear a .25% 12b-1 fee that is not reflected in returns
prior to September 10, 1992. Returns prior to that date are those of
Institutional Class, the original class of the fund. Had Class A's 12b-1
fee been reflected, prior returns would have been lower.
If Fidelity had not reimbursed certain Class A expenses during the periods
shown, the total returns and dividends would have been lower.
TOTAL RETURN COMPONENTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SIX YEARS ENDED NOVEMBER 30,
MONTHS
ENDED
MAY 31,
1995 1994 1993 1992 1991 1990
Dividend return 2.54% 4.18% 5.13% 6.37% 6.65% 6.76%
Capital appreciation 8.09% -9.96% 2.59% 2.59% 1.50% 0.28%
return
Total return 10.63% -5.78% 7.72% 8.96% 8.15% 7.04%
</TABLE>
DIVIDEND returns and capital appreciation returns are both part of a class'
total return. A dividend return reflects the actual dividends paid by the
class. A capital appreciation return reflects both the amount paid by the
class to shareholders as capital gain distributions and changes in the
class' share price. Both returns assume the dividends or gains are
reinvested and exclude the effects of sales charges.
DIVIDENDS AND YIELD
PERIODS ENDED MAY 31, 1995 PAST PAST 6 PAST 1
MONTH MONTHS YEAR
Dividends per share 3.77(cents) 23.04(cents) 46.18(cents)
Annualized dividend rate 4.41% 4.69% 4.69%
30-day annualized yield 4.24% - -
30-day annualized tax-equivalent 6.14% - -
yield
DIVIDENDS per share show the income paid by the class for a set period. If
you annualize this number, based on an average net asset value of $10.07
over the past month, $9.85 over the past six months and $9.84 over the past
year, you can compare the class' income over these three periods. The
30-day annualized YIELD is a standard formula for all 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 to compare funds from different
companies on an equal basis. The offering share price used in the
calculation of the yield includes the effect of Class A's maximum 4.75%
sales charge. The tax-equivalent yield shows what you would have to earn on
a taxable investment to equal the class' tax-free yield, if you're in the
31% federal tax bracket. If Fidelity had not reimbursed certain Class A
expenses during the period shown, the yield and tax-equivalent yield would
have been 4.11% and 5.96%, respectively.
ADVISOR LIMITED TERM TAX-EXEMPT FUND - CLASS B
PERFORMANCE: THE BOTTOM LINE
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 $10,000 investment. Total return includes
changes in a share price, plus reinvestment of any dividends (or income)
and capital gains (the profits the fund earns when it sells securities that
have grown in value). You can also look at income to measure performance.
Initial offering of Class B shares took place on June 30, 1994. Class B
shares bear a 1.00% 12b-1/shareholder service fee. This fee is not
reflected in returns prior to that date. Returns between September 10, 1992
and June 30, 1994 are those of Class A, and reflect Class A's .25% 12b-1
fee. Returns prior to September 10, 1992 are those of Institutional Class,
the original class of the fund. Had Class B's 12b-1 fee been reflected,
prior returns would have been lower. If Fidelity had not reimbursed certain
Class B expenses during the periods shown, the total returns and dividends
would have been lower. Class B's contingent deferred sales charges included
in the past six months, past one year, past five years and life of fund
total return figures are 4%, 4%, 1% and 0%, respectively.
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
Advisor Limited Term Tax-Exempt - Class 10.20% 5.64% 37.21% 95.81%
B
Advisor Limited Term Tax-Exempt - Class
B 6.20% 1.64% 36.24% 95.81%
(incl. contingent deferred sales charge)
Lehman Brothers Municipal Bond Index 13.05% 9.11% 51.33% n/a
Average Intermediate Municipal Bond Fund 9.37% 6.95% 42.93% n/a
Consumer Price Index 1.53% 3.19% 17.80% 40.54%
</TABLE>
CUMULATIVE TOTAL RETURNS show Class B's performance in percentage terms
over a set period - in this case, six months, one year, five years, or
since the fund began on September 19, 1985. 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 Class B's return
to those of the Lehman Brothers Municipal Bond Index - a broad gauge of the
municipal bond market. To measure how Class B's performance stacked up
against its peers, you can compare it to the average intermediate municipal
bond fund, which reflects the performance of over 119 intermediate
municipal bond funds with similar objectives tracked by Lipper Analytical
Services over the past six months. These benchmarks include reinvested
dividends and capital gains, if any, and exclude the effects of sales
charges. Comparing Class B'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
PERIODS ENDED MAY 31, 1995 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND
Advisor Limited Term Tax-Exempt - Class B 5.64% 6.53% 7.17%
Advisor Limited Term Tax-Exempt - Class B
(incl. contingent deferred sales charge) 1.64% 6.38% 7.17%
Lehman Brothers Municipal Bond Index 9.11% 8.64% n/a
Average Intermediate Municipal Bond Fund 6.95% 7.40% n/a
Consumer Price Index 3.19% 3.33% 3.58%
AVERAGE ANNUAL TOTAL RETURNS take Class B shares' actual (or cumulative)
return and show you what would have happened if Class B shares had
performed at a constant rate each year.
$10,000 LIFE OF FUND
Fidelity Advisor LiMunicipal Bond Ind
09/30/85 9525.00 10000.00
10/31/85 9768.57 10342.70
11/30/85 9955.41 10713.69
12/31/85 9980.92 10807.87
01/31/86 10339.67 11444.45
02/28/86 10513.60 11898.34
03/31/86 10579.24 11902.14
04/30/86 10625.60 11911.19
05/31/86 10531.06 11717.28
06/30/86 10637.15 11829.06
07/31/86 10664.21 11900.86
08/31/86 11016.20 12433.66
09/30/86 11062.61 12464.87
10/31/86 11292.69 12680.14
11/30/86 11387.96 12931.33
12/31/86 11349.73 12895.64
01/31/87 11552.35 13283.93
02/28/87 11682.09 13349.29
03/31/87 11621.04 13207.78
04/30/87 11146.28 12545.02
05/31/87 11139.34 12482.79
06/30/87 11347.35 12849.29
07/31/87 11480.45 12980.35
08/31/87 11505.14 13009.56
09/30/87 11138.01 12529.90
10/31/87 11241.39 12574.25
11/30/87 11498.94 12902.56
12/31/87 11613.75 13089.78
01/31/88 12030.22 13556.04
02/29/88 12079.30 13699.33
03/31/88 11902.69 13539.73
04/30/88 11962.53 13642.63
05/31/88 12000.38 13603.20
06/30/88 12084.74 13802.22
07/31/88 12147.61 13892.21
08/31/88 12153.43 13904.43
09/30/88 12286.78 14156.10
10/31/88 12432.95 14405.96
11/30/88 12392.50 14274.00
12/31/88 12470.70 14420.02
01/31/89 12596.91 14718.23
02/28/89 12521.67 14550.30
03/31/89 12481.96 14515.52
04/30/89 12658.38 14860.12
05/31/89 12847.41 15168.76
06/30/89 12988.41 15374.75
07/31/89 13118.03 15584.01
08/31/89 13075.54 15431.44
09/30/89 13072.94 15385.14
10/31/89 13177.79 15572.84
11/30/89 13321.97 15845.37
12/31/89 13442.05 15975.30
01/31/90 13398.20 15900.22
02/28/90 13517.18 16041.73
03/31/90 13540.21 16046.54
04/30/90 13400.97 15931.00
05/31/90 13645.30 16278.30
06/30/90 13758.27 16421.55
07/31/90 13924.31 16662.95
08/31/90 13843.35 16421.33
09/30/90 13880.42 16431.19
10/31/90 14035.65 16728.59
11/30/90 14259.59 17064.84
12/31/90 14298.07 17139.92
01/31/91 14457.73 17369.60
02/28/91 14589.36 17520.71
03/31/91 14599.16 17527.72
04/30/91 14731.50 17760.84
05/31/91 14849.52 17918.91
06/30/91 14858.54 17900.99
07/31/91 15007.37 18119.38
08/31/91 15127.28 18358.56
09/30/91 15220.00 18597.22
10/31/91 15383.44 18764.59
11/30/91 15422.21 18817.14
12/31/91 15677.06 19221.70
01/31/92 15786.57 19265.91
02/29/92 15804.68 19271.69
03/31/92 15744.25 19279.40
04/30/92 15854.37 19450.99
05/31/92 16028.27 19680.51
06/30/92 16238.62 20011.14
07/31/92 16588.34 20611.48
08/31/92 16465.69 20409.49
09/30/92 16621.34 20542.15
10/31/92 16503.08 20340.83
11/30/92 16804.63 20704.93
12/31/92 16824.93 20916.13
01/31/93 17016.24 21158.75
02/28/93 17488.68 21924.70
03/31/93 17315.21 21692.30
04/30/93 17436.99 21911.39
05/31/93 17510.38 22034.09
06/30/93 17694.93 22402.06
07/31/93 17715.04 22431.19
08/31/93 18040.97 22897.75
09/30/93 18227.61 23158.79
10/31/93 18244.72 23202.79
11/30/93 18102.50 22998.61
12/31/93 18411.80 23483.88
01/31/94 18582.63 23751.59
02/28/94 18118.63 23136.43
03/31/94 17410.72 22194.77
04/30/94 17564.83 22383.43
05/31/94 17722.04 22578.16
06/30/94 17594.68 22447.21
07/31/94 17839.83 22858.00
08/31/94 17907.28 22938.00
09/30/94 17706.72 22600.81
10/31/94 17437.48 22198.52
11/30/94 17056.44 21796.72
12/31/94 17365.19 22276.25
01/31/95 17802.18 22913.35
02/28/95 18253.91 23580.13
03/31/95 18453.58 23851.30
04/30/95 18448.29 23879.92
05/31/95 18869.63 24641.69
$10,000 OVER LIFE OF FUND: Let's say you invested $10,000 in Fidelity
Advisor Limited Term Tax-Exempt Fund - Class B on September 30, 1985,
shortly after the fund started. As the chart shows, by May 31, 1995, the
value of your investment would have grown to $19,656 - a 96.56% increase on
your initial investment. For comparison, look at how the Lehman Brothers
Municipal Bond Index did over the same period. With dividends reinvested,
the same $10,000 would have grown to $24,642 - a 146.42% increase.
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 YEARS ENDED NOVEMBER 30,
MONTHS
ENDED
MAY 31,
1995 1994 1993 1992 1991 1990
Dividend return 2.11% 3.81% 5.13% 6.37% 6.65% 6.76%
Capital appreciation 8.09% -9.96% 2.59% 2.59% 1.50% 0.28%
return
Total return 10.20% -6.15% 7.72% 8.96% 8.15% 7.04%
</TABLE>
DIVIDEND returns and capital appreciation returns are both part of a class'
total return. A dividend return reflects the actual dividends paid by the
class. A capital appreciation return reflects both the amount paid by the
class to shareholders as capital gain distributions and changes in the
class' share price. Both returns assume the dividends or gains are
reinvested and exclude the effects of sales charges.
DIVIDENDS AND YIELD
<TABLE>
<CAPTION>
<S> <C> <C> <C>
PERIOD ENDED MAY 31, 1995 PAST PAST 6 LIFE OF
MONTH MONTHS CLASS
Dividends per share 3.11(cents) 19.16(cents) 34.61(cents)
Annualized dividend rate 3.64% 3.90% 3.52%
30-day annualized yield 3.68% - -
30-day annualized tax-equivalent yield 5.33% - -
</TABLE>
DIVIDENDS per share show the income paid by the class for a set period. If
you annualize this number, based on an average net asset value of $10.07
over the past month, $9.85 over the past six months, and $9.82 over the
life of Class, you can compare the Class' 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. The offering share price used in the
calculation of the yield excludes the effect of Class B's contingent
deferred sales charge. The tax-equivalent yield shows what you would have
to earn on a taxable investment to equal the class' tax-free yield, if
you're in the 31% federal tax bracket. If Fidelity had not reimbursed
certain Class B expenses during the period shown, the yield and
tax-equivalent yield would have been 2.83% and 4.10%, respectively.
FUND TALK: THE MANAGER'S OVERVIEW
An interview with David Murphy, Portfolio Manager of Fidelity Advisor
Limited Term Tax-Exempt Fund
Q. DAVID, HOW HAS THE FUND PERFORMED?
A. For the six months ended May 31, 1995, the Fidelity Advisor Limited Term
Tax-Exempt Fund's Class A and Class B shares had total returns of 10.63%
and 10.20%, respectively. For the year ended May 31, 1995, the fund's Class
A and Class B shares had total returns of 6.48% and 5.64%, respectively.
For comparison purposes, for the six- and 12-month periods ended May 31,
1995, the average intermediate municipal fund returned 9.37% and 6.95%,
respectively.
Q. FROM FEBRUARY THROUGH NOVEMBER OF 1994, BOND PRICES FELL AS INTEREST
RATES ROSE. WHAT'S BEEN HAPPENING IN THE MUNICIPAL BOND MARKET SINCE
NOVEMBER OF LAST YEAR?
A. The municipal bond market has enjoyed a substantial rally during the
past six months. In hindsight, it's clear that the market was oversold by
late November. In addition to rising interest rates, tax-loss selling
pushed bond prices lower during October and the first half of November.
Tax-loss selling occurs when an investor wants to offset gains in one
investment by selling another investment that incurred losses, thereby
reducing his or her tax liability. When the tax-loss selling abated in late
November, the municipal bond market began to bounce back. At about the same
time, taxable interest rates started to come down and tax-free interest
rates followed suit as many investors began to anticipate that the Federal
Reserve Board was near the end of its process of raising short-term
interest rates.
Q. WHAT CAUSED THE FUND TO OUTPACE THE AVERAGE FUND DURING THE PAST SIX
MONTHS?
A. One factor was the fund's relatively large concentration in high-quality
bonds. There was a strong demand for high quality bonds during the bond
market rally, and their prices generally rose more than lower quality
bonds. Also, I was able to take advantage of some opportunities in the
market, buying bonds when I thought they were attractively priced, and
selling them after they had appreciated. For example, last fall the fund
held some discount bonds, which trade below their face value, when they had
gotten very cheap. As these securities appreciated over the past quarter, I
locked in profits by selling them.
Q. WHAT CHANGES HAVE YOU MADE SINCE TAKING OVER THE FUND IN MARCH?
A. I changed the way the fund is distributed among bonds with various
maturities. Beginning in November, the yield curve was somewhat steep. That
meant that there was a significant difference between yields on bonds of
various maturities, and consequently, investors were rewarded with more
yield by investing in longer-term maturities. At that time, the fund had
45.1% of its investments in bonds maturing in one to 10 years, and about
43.7% in bonds maturing in more than 10 years. As the yield curve
flattened, the yield advantage of longer-term bonds diminished. So I moved
the fund toward a "bulleted" strategy, concentrating about 55.8% of
investments in the one- to 10-year range and reducing the fund's stake in
bonds with maturities longer than 10 years to 33.9%. A bulleted strategy
could likely benefit the fund if the yield curve doesn't flatten further or
if it steepens.
Q. HAVE YOU MADE ANY CHANGES IN THE WAY THE FUND IS DISTRIBUTED AMONG
BONDS WITH DIFFERENT CREDIT QUALITIES?
A. Since taking over, I sold some lower investment-grade bonds rated A and
Aa by Moody's Investors Service and replaced them with insured bonds rated
Aaa. During the market's decline last year, insured bonds had generally
underperformed lower quality bonds and as a result, looked to be
attractively priced. The fund's stake in Aaa-rated bonds, including insured
bonds, rose to 50.1% by the end of the period, from 37.0% six months
earlier. Meanwhile, the fund's stake in Aa-rated and A-rated bonds stood at
13.1% and 25.1%, respectively, at the end of the period, down from 16.2%
and 33.4% six months earlier.
Q. WHAT TYPES OF BONDS LOOK
ATTRACTIVE NOW?
A. Recently, I've bought some bonds known as forward delivery bonds,
including Lakeland, Florida, Electric Utilities and Intermountain Power
Agency. Since interest rates have declined again, many municipal bond
issuers want to refinance their older bonds that carry higher interest
rates at today's lower levels. But in some cases, the issuer is restricted
from refinancing today. So instead of an advance refunding, some
municipalities issue bonds for forward delivery. These bonds are priced on
a current basis, but won't settle until sometime in the future. In order to
attract buyers, the issuer offers the bonds with a higher-than-normal
coupon, or the interest the issuer promises to pay the bondholder.
Q. WHAT OTHER TYPES OF BONDS LOOK ATTRACTIVE GOING FORWARD?
A. In general, I try to avoid investing in callable bonds that trade at
par, or face value. Rather, I prefer to invest in bonds that sell at a
discount - below face value - or at a premium - above face value. Here's
why: When a par bond with a call rises above its par value, it stops
trading to its maturity date. Instead, it trades to an earlier call date,
the first date the issuer can redeem the bond. When that occurs, a par
bond's potential for price appreciation is limited, but it still carries a
level of risk that is equivalent to that of a longer-term bond.
Q. CAN THE MUNICIPAL BOND MARKET SUSTAIN ITS RECENT STRENGTH OVER THE NEXT
SIX MONTHS?
A. I consider it unlikely that municipal bond prices will enjoy the same
degree of appreciation over the next six months that they did in the
previous six. I think it would be wise for shareholders to expect that the
fund's total return will be less dependent on capital appreciation and more
dependent on income. Investors should keep in mind that continued talk of
tax reform will likely add some volatility to the municipal market for the
balance of the year. But in my view, there probably won't be any new
dramatic tax legislation enacted before 1997.
FUND FACTS
GOAL: to seek the highest
level of income exempt from
federal income taxes that
can be obtained consistent
with the preservation of
capital
START DATE: September 19,
1985
SIZE: As of May 31, 1995,
more than $72 million
MANAGER: David Murphy,
since March 27, 1995;
joined Fidelity in 1989
(checkmark)
DAVID MURPHY ON HIS
OUTLOOK FOR THE ECONOMY:
"The risk that the economy
will move into a recession is
higher now than I had
originally expected several
months ago since the
economy has slowed more
quickly than I had expected.
The current consensus is that
real economic growth, after
factoring in inflation, will be
approximately flat. But,
beyond the second quarter of
the year, I'm more positive
about the outlook for the
economy. In my view, lower
interest rates could start to
stimulate housing and auto
sales, among other things,
and could ultimately
strengthen the economy by
the third quarter of this year."
(solid bullet) Education bonds were the
fund's second largest sector
concentration at 17.7% at the
end of the period. These bonds
are attractive because of their
relatively high yields.
INVESTMENT CHANGES
TOP FIVE STATES AS OF MAY 31, 1995
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO
California 13.3 13.7
Massachusetts 9.6 10.7
Illinois 8.7 2.5
Georgia 7.9 3.3
Texas 7.4 10.0
TOP FIVE SECTORS AS OF MAY 31, 1995
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO
General Obligation 18.3 16.0
Education 17.7 18.6
Health Care 14.7 16.7
Electric Revenue 11.5 14.4
Water & Sewer 8.4 4.8
AVERAGE YEARS TO MATURITY AS OF MAY 31, 1995
6 MONTHS AGO
Years 8.3 9.0
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 6.0 5.8
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.
QUALITY DIVERSIFICATION AS OF MAY 31, 1995
AS OF MAY 31, 1995 AS OF NOVEMBER 30, 1994
Row: 1, Col: 1, Value: 11.7
Row: 1, Col: 2, Value: 25.1
Row: 1, Col: 3, Value: 13.1
Row: 1, Col: 4, Value: 25.0
Row: 1, Col: 5, Value: 25.1
Row: 1, Col: 1, Value: 13.4
Row: 1, Col: 2, Value: 33.4
Row: 1, Col: 3, Value: 16.2
Row: 1, Col: 4, Value: 20.0
Row: 1, Col: 5, Value: 17.0
Aaa 50.1%
Aa 13.1%
A 25.1%
Short-term
investments 11.7%
Aaa 37.0%
Aa 16.2%
A 33.4%
Short-term
investments 13.4%
WHERE MOODY'S RATINGS ARE NOT AVAILABLE, WE HAVE USED S&P RATINGS.
INVESTMENTS MAY 31, 1995 (UNAUDITED)
Showing Percentage of Total Value of Investment in Securities
MUNICIPAL BONDS - 88.3 %
PRINCIPAL VALUE
AMOUNT (NOTE 1)
ALASKA - 2.8 %
North Slope Borough Series B, 0% 1/1/03, (MBIA Insured) $ 3,000,000 $
2,010,000
ARIZONA - 5.1 %
Central Wtr. Conservation Dist. Contract Rev. (Spl. Term)
6% 11/1/00 1,500,000 1,582,500
Maricopa County Ind. Dev. Auth. Hosp. Facs. Rev. Rfdg.
(Samaritan Health Scvs.) Series B, 6.90% 12/1/99,
(MBIA Insured) 1,000,000 1,093,750
Phoenix Arpt. Rev. Rfdg. Series A, 5.65% 7/1/01
(MBIA Insured) 1,000,000 1,047,500
3,723,750
CALIFORNIA - 13.3 %
California Pub. Wks. Board Lease Rev. (California Univ. Proj.)
Series A, 5.50% 6/1/10 1,000,000 960,000
Castaic Lake Wtr. Agcy. Ctfs. of Prtn. Rfdg. (Wtr. Sys.
Impt. Prog.) Series A, 7.25% 8/1/08, (MBIA Insured) 500,000 588,125
Chino Basin Reg'l. Fing. Auth. Rev. Rfdg. (Muni. Wtr. & Swr. Proj.)
7% 8/15/08, (AMBAC Insured) 1,000,000 1,152,500
La Quinta Redev. Agcy. (Tax Allocation Proj. Area #1):
Rfdg. 7.30% 9/1/09, (MBIA Insured) 750,000 885,000
7.30% 9/1/05 (MBIA Insured) 460,000 541,075
Los Angeles County Ctfs. of Prtn. (Disney Parking Project):
0% 9/1/02 630,000 411,075
0% 9/1/04 970,000 557,750
0% 9/1/05 1,395,000 748,069
Rosemead Redev. Agcy. Sub. Lien Tax Allocation Proj.
(Area 1) 0% 10/1/02 1,450,000 1,007,750
Sacramento County Fing. Auth. Lease Rev. Rfdg. Series A,
5.375% 11/1/14, (AMBAC Insured) 1,000,000 955,000
Sacramento Muni. Util. Dev. Index Inflows 1.76%
11/15/08, (FGIC Insured) (d) 1,000,000 862,500
West Covina Ctfs. of Prtn. (Queen of the Valley Hosp.)
6.50% 8/15/09 1,000,000 1,021,250
9,690,094
COLORADO - 2.9 %
Adams County Single Family Mtg. Rev. Rfdg. Series A-2,
8.70% 6/1/12, (FSA Insured) 1,000,000 1,098,750
Colorado Univ. Hosp. Auth. Hosp. Rev. Series A,
5.80% 11/15/03, (AMBAC Insured) 1,000,000 1,055,000
2,153,750
DELAWARE - 0.7 %
Delaware Trans. Auth. Trans. Sys. Rev. Jr. Rfdg.
5.80% 7/1/09, (MBIA Insured) 500,000 509,375
MUNICIPAL BONDS - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
DISTRICT OF COLUMBIA - 1.3 %
District of Columbia Gen. Oblig. Rfdg. Series B,
5.10% 6/01/03, (AMBAC Insured) $ 1,000,000 $ 985,000
FLORIDA - 2.5 %
Broward County Resources Recovery Rev. (SES Broward Co.
LP South Proj.) 7.95% 12/1/08 250,000 274,061
Lakeland Elec. & Wtr. Rev. Rfdg Jr. Sub Lien
6.25% 10/1/03, (FGIC Insured) (a) 470,000 501,138
Palm Beach County Solid Waste Auth. Rev. Series 1984,
7.75% 7/1/98, (MBIA Insured) 1,000,000 1,075,000
1,850,199
GEORGIA - 5.2 %
Georgia Gen. Oblig. Seies D, 6.80% 8/1/03 1,000,000 1,137,500
Metropolitan Atlanta Rapid Trans. Auth. Sales Tax Rev. Rfdg.
Series P, 6% 7/1/04 (AMBAC Insured) 2,000,000 2,140,000
Monroe County Dev. Auth. Poll. Cont. Rev. Rfdg.
(Oglethorpe Pwr. Scherer) Series A, 6.60% 1/1/07 500,000 542,500
3,820,000
ILLINOIS - 1.8 %
Chicago Single Family Mtg. Rev. (Cap. Appreciation)
Series A, 0% 12/1/16, (FGIC Insured) (b) 1,700,000 216,750
Illinois Health Facs. Auth. Rev. Rfdg. (Felician Health Care, Inc.)
Series A, 6.85% 1/1/00, (AMBAC Insured) 1,000,000 1,080,000
1,296,750
IOWA - 1.4 %
Iowa Student Loan Liquidity Corp. Student Loan Rev.
Series A, 6.35% 3/1/01 1,000,000 1,058,750
LOUISIANA - 7.1 %
Louisiana Gen. Oblig. 6.75% 5/15/04, (MBIA Insured) 1,000,000 1,120,000
Louisiana Pub. Facs. Auth. Rev. Student Loan Sr.
Series A-1, 6.20% 3/01/01 2,600,000 2,707,250
Munroe School Dist. 7.65% 3/1/04, (FGIC Insured) 1,150,000 1,336,875
5,164,125
MARYLAND - 1.8 %
Northeast Waste Disp. Auth. Resources Recovery
Rev. Rfdg. (Southwest Resources Recovery Fac.)
7% 1/1/01, (MBIA Insured) 500,000 551,250
Prince Georges County Rfdg. Consolidated Pub. Impt.
Ltd. Tax 5% 10/1/03 750,000 757,500
1,308,750
MUNICIPAL BONDS - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
MASSACHUSETTS - 9.6 %
Massachusetts Gen. Oblig. Cons. Loan Series A,
5% 1/1/12 $ 1,000,000 $ 923,750
Massachusetts Health & Edl. Facs. Auth. Rev. Rfdg.
(Boston College) Series K, 5.125% 6/1/08 1,000,000 957,500
Massachusetts Ind. Fin. Agcy. Rev. (Cap. Appreciation)
(Massachusetts Biomedical Research) Series A-1:
0% 8/1/00 (b) 1,100,000 848,375
0% 8/1/02 1,600,000 1,096,000
Massachusetts Wtr. Poll. Abatement Trust Rev.
(Massachusetts Wtr. Resources Auth. Loan Prog.)
Series A, 5.20% 2/1/06 1,200,000 1,189,500
New England Ed. Loan Marketing Corp. Rfdg.
(Massachusetts Student Loan) Series B, 5.40% 6/1/00 1,950,000 1,959,750
6,974,875
MISSISSIPPI - 1.4 %
Jackson Pub. School Dist. Rfdg. 6% 4/1/07 1,000,000 1,052,500
MULTIPLE STATES - 1.5 %
New England Ed. Loan Marketing Corp. Student Loan
Rev. Rfdg. Sr. Issue A, 6.50% 9/1/02 1,000,000 1,090,000
NEW JERSEY - 1.6 %
New Jersey Economic Dev. Auth. (Market Transition Fac.)
Rev. Sr. Lien Series A, 7% 7/1/04, (MBIA Insured) 1,000,000 1,138,750
NEW MEXICO - 4.5 %
New Mexico Edl. Assistance Foundation Student Loan Rev. Sr.
Series IV-A2, 6.65% 3/1/07 (c) 2,500,000 2,715,625
Rio Rancho Wtr. & Waste Sys. Rev. Series A, 8% 5/15/04,
(FSA Insured) (a) 500,000 599,375
3,315,000
NEW YORK - 0.7 %
New York State Local Govt. Assistance Corp. Series A,
0% 4/1/08 1,000,000 507,500
OHIO - 1.4 %
Ohio Wtr. Dev. Auth. Rev. Rfdg. & Impt. (Pure Wtr.)
5.50% 12/1/11, (AMBAC Insured) 1,000,000 997,500
PENNSYLVANIA - 3.0 %
Pennsylvania Hsg. Fin. Agcy. Rfdg. (Residential Dev. Section 8)
Series A, 7% 7/1/01 1,000,000 1,063,750
Philadelphia Muni. Auth. Rev. (Justice Lease) Series A,
6.80% 11/15/02, (MBIA Insured) 1,000,000 1,117,500
2,181,250
RHODE ISLAND - 1.5 %
Rhode Island Student Loan Auth. Student Loan Rev. Rfdg.
Series A, 6.55% 12/1/00 (b) 1,000,000 1,060,000
MUNICIPAL BONDS - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
SOUTH CAROLINA - 1.9 %
South Carolina Edl. Assistance Auth. Rev. Rfdg. Student
Loan Sr. Lien A-2, 5.40% 9/1/02 $ 1,350,000 $ 1,358,438
TEXAS - 7.4 %
Austin Util. Sys. Rev. Rfdg. Series A, 6% 11/15/06,
(MBIA Insured) 1,000,000 1,065,000
North East Independent School Dist. Rfdg. Series D,
0% 2/1/00 4,565,000 3,646,294
Port Arthur Hsg. Fin. Corp. Single Family Mtg. Rev. Rfdg.
8.70% 3/1/12 640,000 695,200
5,406,494
UTAH - 2.9 %
Intermountain Pwr. Agcy. Pwr. Supply:
Rev. Series A, 0% 7/1/06 (MBIA Insured) 2,860,000 1,562,275
Sys. Rev. Rfdg. Series B, 6.50% 7/1/04, (MBIA Insured) (a) 500,000
538,750
2,101,025
WASHINGTON - 5.0 %
Washington Motor Vehicle Fuel Tax Gen. Oblig. Series B,
6.50% 9/1/03 335,000 371,431
Washington Pub. Pwr. Supply Sys.:
Nuclear Proj. #1 Rev. Rfdg. 5.10% 7/01/00 1,000,000 991,250
Nuclear Proj. #2 Rev. 5.26% 7/1/12 2,000,000 1,850,000
Nuclear Proj. #3 Rev. Rfdg. Series C 5.10% 7/1/07 500,000 470,625
3,683,306
TOTAL MUNICIPAL BONDS
(Cost $63,027,122) 64,437,181
MUNICIPAL NOTES - 11.7 %
FLORIDA - 2.1 %
Dade County Health Facs. Auth. Hosp. Rev.
(Miami Childrens Hosp. Proj.) Series 1990, 4.20%,
LOC Barnett Bank, VRDN 1,500,000 1,500,000
GEORGIA - 2.7 %
Hapeville Dev. Auth. Ind. Dev. Rev. (Hapeville Hotel Proj.)
4.15%, LOC Swiss Bank, VRDN 2,000,000 2,000,000
ILLINOIS - 6.9 %
Illinois Dev. Fin. Auth. Multi-Family Hsg. Rev. Rfdg.
(Garden Glen Apts.) Series 93, 4.50%, VRDN 2,000,000 2,000,000
MUNICIPAL NOTES - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
ILLINOIS - CONTINUED
Illinois Health Facs. Auth. Rev. (Central Dupage Hosp.
Assoc. Proj.) Series 1990, 4.30% LOC Industrial
Bank of Japan, VRDN $ 3,000,000 $ 3,000,000
5,000,000
TOTAL MUNICIPAL NOTES
(Cost $8,500,000) 8,500,000
TOTAL INVESTMENTS - 100%
(Cost $71,527,122) $ 72,937,181
SECURITY TYPE ABBREVIATIONS
VRDN - Variable Rate Demand Notes
LEGEND
1. Security purchased on a delayed delivery basis (see Note 2 of Notes to
Financial Statements).
2. A portion of the Security was pledged to cover margin requirements for
delayed delivery purchases. At the period end, the value of securities
pledged amounted to $517,125.
3. Private activity obligations whose interest is subject to the federal
alternative minimum tax for individuals.
4. Debt obligation initially issued at one coupon which converts to a
higher coupon at a specified date.
OTHER INFORMATION
The composition of long-term debt holdings as a percentage of total value
of investment in securities, is as follows (ratings are unaudited):
MOODY'S RATINGS S&P RATINGS
Aaa, Aa, A 87.0% AAA, AA, A 75.6%
Baa 0.0% BBB 0.0%
Ba 0.0% BB 0.0%
B 0.0% B 0.0%
Caa 0.0% CCC 0.0%
Ca, C 0.0% CC, C 0.0%
D 0.0%
The percentage not rated by either S&P or Moody's amounted to 0.0%.
The distribution of municipal securities by revenue source, as a percentage
of total value of investment in securities, is as follows:
General Obligation 18.3%
Education 17.7
Health Care 14.7
Electric Revenue 11.5
Others (individually less than 10%) 37.8
TOTAL 100.0%
INCOME TAX INFORMATION
At May 31, 1995, the aggregate cost of investment securities for income tax
purposes was $71,527,122. Net unrealized appreciation aggregated
$1,410,059, of which $2,116,612 related to appreciated investment
securities and $706,553 related to depreciated investment securities.
At November 30, 1994, the fund had a capital loss carryforward of
approximately $627,000 all of which will expire on November 30, 2002.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
MAY 31, 1995 (UNAUDITED)
ASSETS
Investment in securities, at value (cost $71,527,122) - $ 72,937,181
See accompanying schedule
Cash 160,778
Receivable for investments sold 802,163
Interest receivable 937,082
Receivable for daily variation on futures contracts 2,220
Receivable from investment adviser for expense 12,684
reductions
TOTAL ASSETS 74,852,108
LIABILITIES
Payable for investments purchased $ 1,052,977
Regular delivery
Delayed delivery 1,606,489
Distributions payable 102,904
Accrued management fee 23,674
Other payables and accrued expenses 56,045
TOTAL LIABILITIES 2,842,089
NET ASSETS $ 72,010,019
Net Assets consist of:
Paid in capital $ 72,242,256
Accumulated undistributed net realized gain (loss) on (1,642,296)
investments
Net unrealized appreciation (depreciation) on 1,410,059
investments
NET ASSETS $ 72,010,019
CALCULATION OF MAXIMUM OFFERING PRICE $10.16
CLASS A:
NET ASSET VALUE, and redemption price per share
($58,001,583 (divided by) 5,709,290 shares)
Maximum offering price per share (100/95.25 of $10.16) $10.67
CLASS B: $10.16
NET ASSET VALUE, and offering price per share
($3,828,076 (divided by) 376,632 shares) A
INSTITUTIONAL CLASS: $10.16
NET ASSET VALUE, offering price and redemption price per
share ($10,180,360 (divided by) 1,001,997 shares)
</TABLE>
A REDEMPTION PRICE PER SHARE IS EQUAL TO NET ASSET VALUE LESS ANY
APPLICABLE CONTINGENT DEFERRED SALES CHARGE.
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED MAY 31, 1995 (UNAUDITED)
INTEREST INCOME $ 2,003,404
EXPENSES
Management fee $ 145,027
Transfer agent fees 63,620
Class A
Class B 2,764
Institutional Class 10,321
Distribution fees 71,961
Class A
Class B 13,624
Accounting fees and expenses 24,379
Non-interested trustees' compensation 167
Custodian fees and expenses 1,872
Registration fees 1,742
Class A
Class B 10,722
Institutional Class 9,966
Audit 18,050
Legal 3,981
Miscellaneous 3,556
Total expenses before reductions 381,752
Expense reductions (64,043) 317,709
NET INTEREST INCOME 1,685,695
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investment securities (406,389)
Futures contracts (497,460) (903,849)
Change in net unrealized appreciation (depreciation) on:
Investment securities 6,405,636
Futures contracts 71,142 6,476,778
NET GAIN (LOSS) 5,572,929
NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ 7,258,624
FROM OPERATIONS
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR ENDED
ENDED MAY 31, NOVEMBER 30,
1995 1994
(UNAUDITED)
INCREASE (DECREASE) IN NET ASSETS
Operations $ 1,685,695 $ 3,176,192
Net interest income
Net realized gain (loss) (903,849) (535,456)
Change in net unrealized appreciation (depreciation) 6,476,778 (6,988,987)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 7,258,624 (4,348,251)
FROM OPERATIONS
Distributions to shareholders: (1,356,221) (2,491,384)
From net interest income
Class A
Class B (51,777) (14,383)
Institutional Class (277,697) (670,425)
From net realized gain - (16,666)
Class A
Institutional Class - (6,213)
In excess of net realized gain - (61,420)
Class A
Institutional Class - (22,896)
TOTAL DISTRIBUTIONS (1,685,695) (3,283,387)
Share transactions - net increase (decrease) (4,329,391) 23,521,917
TOTAL INCREASE (DECREASE) IN NET ASSETS 1,243,538 15,890,279
NET ASSETS
Beginning of period 70,766,481 54,876,202
End of period $ 72,010,019 $ 70,766,481
</TABLE>
FINANCIAL HIGHLIGHTS - CLASS A
SIX MONTHS YEARS ENDED PERIOD ENDED
ENDED NOVEMBER 30, NOVEMBER 30,
MAY 31, 1995
(UNAUDITED) 1994 E 1993 1992 D
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
SELECTED PER-SHARE DATA
Net asset value, beginning of period $ 9.400 $ 10.460 $ 11.080 $ 11.010
Income from Investment Operations
Net interest income .230 .455 .508 .131
Net realized and unrealized gain (loss) .760 (1.040) .260 .070
on investments
Total from investment operations .990 (.585) .768 .201
Less Distributions
From net interest income (.230) (.455) (.508) (.131)
From net realized gain - - (.880) -
In excess of net realized gain - (.020) - -
Total distributions (.230) (.475) (1.388) (.131)
Net asset value, end of period $ 10.160 $ 9.400 $ 10.460 $ 11.080
TOTAL RETURN B, C 10.63% (5.78)% 7.72% 1.37%
Ratios and Supplemental Data
Net assets, end of period (000 omitted) $ 58,002 $ 57,382 $ 39,800 $ 1,752
Ratio of expenses to average net assets .90% .90% .90% 1.04% A
A
Ratio of expenses to average net assets 1.03% 1.04% 1.36% 1.06% A
before expense reductions A
Ratio of net interest income to average 4.71% 4.49% 4.76% 5.65% A
net assets A
Portfolio turnover 45% 53% 46% 36%
A
</TABLE>
A ANNUALIZED
B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND 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 (SEE NOTE 5 OF NOTES TO FINANCIAL
STATEMENTS).
D FOR THE PERIOD SEPTEMBER 10, 1992 (COMMENCEMENT OF SALES OF CLASS A
SHARES) TO NOVEMBER 30, 1992.
E 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 B
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS PERIOD ENDED
ENDED NOVEMBER 30,
MAY 31, 1995 1994 D
(UNAUDITED)
SELECTED PER-SHARE DATA
Net asset value, beginning of period $ 9.400 $ 9.890
Income from Investment Operations
Net interest income .192 .155
Net realized and unrealized gain (loss) on investments .760 (.490)
Total from investment operations .952 (.335)
Less Distributions
From net interest income (.192) (.155)
From net realized gain - -
In excess of net realized gain - -
Total distributions (.192) (.155)
Net asset value, end of period $ 10.160 $ 9.400
TOTAL RETURN B, C 10.20% (3.44)%
Ratios and Supplemental Data
Net assets, end of period (000 omitted) $ 3,828 $ 1,682
Ratio of expenses to average net assets 1.65% A 1.65%
A
Ratio of expenses to average net assets before 2.50% 2.36%
expense reductions A, E A
Ratio of net interest income to average net assets 3.82% A 3.74%
A
Portfolio turnover 45% A 53%
</TABLE>
A ANNUALIZED
B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND 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 (SEE NOTE 5 OF NOTES TO
FINANCIAL STATEMENTS).
D FOR THE PERIOD JUNE 30, 1994 (COMMENCEMENT OF SALES OF CLASS B SHARES) TO
NOVEMBER 30, 1994.
E LIMITED IN ACCORDANCE WITH A STATE EXPENSE LIMITATION.
FINANCIAL HIGHLIGHTS - INSTITUTIONAL CLASS
SIX MONTH YEARS ENDED NOVEMBER 30,
ENDED
MAY 31, 1995
(UNAUDITED) 1994 D 1993 1992 1991 1990
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SELECTED PER-SHARE DATA
Net asset value, $ 9.410 $ 10.460 $ 11.080 $ 10.800 $ 10.640 $ 10.610
beginning of period
Income from Investment
Operations
Net interest income .243 .481 .536 .666 .682 .689
Net realized and .750 (1.030) .260 .280 .160 .030
unrealized gain
(loss) on
investments
Total from investment .993 (.549) .796 .946 .842 .719
operations
Less Distributions
From net interest (.243) (.481) (.536) (.666) (.682) (.689)
income
From net realized gain - - (.880) - - -
In excess of net - (.020) - - - -
realized gain
Total distributions (.243) (.501) (1.416) (.666) (.682) (.689)
Net asset value, $ 10.160 $ 9.410 $ 10.460 $ 11.080 $ 10.800 $ 10.640
end of period
TOTAL RETURN B, C 10.65% (5.43) 8.01 9.01 8.15 7.04
% % % % %
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 10,180 $ 11,702 $ 15,076 $ 28,428 $ 100,294 $ 111,506
(000 omitted)
Ratio of expenses to .65% .65% .65 .66 .61 .62
average net assets A % % % %
Ratio of expenses to .91% .76% .83 .67 .61 .62
average net assets A % % % %
before expense
reductions
Ratio of net interest 4.96% 4.75% 5.01 6.05 6.40 6.53
income to average A % % % %
net assets
Portfolio turnover 45% 53% 46 36 20 32
A % % % %
</TABLE>
A ANNUALIZED
B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN (SEE NOTE 5 OF NOTES TO FINANCIAL
STATEMENTS).
C TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
D 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.
NOTES TO FINANCIAL STATEMENTS
For the period ended May 31, 1995 (Unaudited)
1. SIGNIFICANT ACCOUNTING
POLICIES.
Fidelity Advisor Limited Term Tax-Exempt Fund (the fund) is a fund of
Fidelity Advisor Series VI(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 A, Class B, and Institutional Class 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. 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, transfer
agent, registration, and certain other class-specific 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 quotations are not readily
available through the pricing service 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."
INTEREST INCOME. Interest income, which includes amortization of premium
and accretion of original issue discount, is accrued as earned.
DISTRIBUTIONS TO SHAREHOLDERS.
Distributions are declared daily and paid monthly from net interest income.
Distributions from realized gains, if any, 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
1. SIGNIFICANT ACCOUNTING
POLICIES - CONTINUED
DISTRIBUTIONS TO SHAREHOLDERS- CONTINUED
due to differing treatments for futures and options transactions and market
discount, capital loss carryforwards and losses deferred due to futures and
options.
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. 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.
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. 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.
FUTURES CONTRACTS AND OPTIONS.
The fund may use futures and options contracts to manage its exposure to
the bond market and to fluctuations in interest rates. Buying futures,
writing puts, and buying calls tend to increase the fund's exposure to the
underlying instrument. Selling futures, buying puts, and writing calls tend
to decrease the fund's exposure to the underlying instrument, or hedge
other fund investments. Losses may arise from changes in the value of the
underlying instruments, if there is an illiquid secondary market for the
contracts, or if the counterparties do not perform under the contracts'
terms.
Futures contracts are valued at the settlement price established each day
by the board of trade or exchange on which they are traded. Exchange-traded
options are valued using the last sale price or, in the absence of a sale,
the last offering price. Options traded over-the-counter are valued using
dealer-supplied valuations.
3. PURCHASES AND SALES
OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $14,585,499 and $19,699,543, respectively.
The market value of futures contracts opened and closed during the period
amounted to $33,506,951 and $38,681,610, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, Fidelity Management &
Research Company (FMR)receives a monthly fee that is calculated on the
basis of a group fee rate plus a fixed individual fund fee rate applied to
the average net assets of the fund. The group fee rate is the weighted
average of a series of rates and is based on the monthly average net assets
of all the mutual funds advised by FMR. The rates ranged from .1200% to
.3700% for the period. In the event that these rates were lower than the
contractual rates in effect during the period, FMR voluntarily implemented
the above rates, as they resulted in the same or a lower management fee.
The annual individual fund fee rate is .25%. For the period, the management
fee was equivalent to an annualized rate of .41% of average net assets.
DISTRIBUTION AND SERVICE PLAN.
In accordance with Rule 12b-1 of the 1940 Act, the Trustees have adopted
separate distribution plans with respect to the fund's Class A shares
("Class A Plan") and Class B shares ("Class B 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 annual rates of .25% and
1.00% (of which .75% represents a distribution fee and .25% represents a
shareholder service fee) of the average net assets of the Class A and Class
B shares, respectively. For the period, the fund paid FDC $71,961 and
$13,624 under the Class A Plan and Class B Plan, respectively, of which
$70,734 and $3,350 were paid to securities dealers, banks and other
financial institutions for the distribution of Class A and Class B 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 Plans also authorize payments to
third parties that assist in the sale of the fund's shares or render
shareholder support services. No payments were made under the Plans during
the period.
SALES LOAD. FDC receives a front-end sales charge of up to 4.75% for
selling Class A shares of the fund. For the period, FDC received sales
charges of $120,911 on sales of Class A shares of the fund, of which
$101,900 was paid to securities dealers, banks, and other financial
institutions. FDC also receives the proceeds of a contingent deferred sales
charge levied on Class B share redemptions occurring within five years
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
SALES LOAD - CONTINUED
of purchase. The charge is based on declining rates which range from 4% to
1% of the lesser of the cost of shares at the initial date of purchase or
the net asset value of the redeemed shares, excluding any reinvested
dividends and capital gains. For the period, FDC received contingent
deferred sales charges of $102 on Class B share redemptions from the fund.
When Class B shares are sold, FDC pays commissions from its own resources
to dealers through which the sales are made.
TRANSFER AGENT FEES. UMB Bank, n.a. (UMB) is the custodian, transfer agent,
and shareholder servicing agent for the fund's Class A, Class B, and
Institutional shares. UMB has entered into sub-arrangements with State
Street Bank and Trust Company (State Street) with respect to the Class A
shares, and Fidelity Investments Institutional Operations Company (FIIOC),
an affiliate of FMR, with respect to the Class B and Institutional shares,
to perform the transfer, dividend disbursing, and shareholder servicing
agent functions. During the period December 1, 1994 to December 31, 1994,
State Street and FIIOC received fees based on the type, size, number of
accounts and the number of transactions made by shareholders of the
respective classes of the fund. Effective January 1, 1995, the Board of
Trustees approved a revised transfer agent contract pursuant to which State
Street and FIIOC receive account fees and asset-based fees that vary
according to the account size and type of account of the shareholders of
the respective classes of the fund. All fees are paid to State Street and
FIIOC by UMB, which is reimbursed by the fund for such payments. FIIOC pays
for typesetting, printing and mailing of all shareholder reports, except
proxy statements.
5. EXPENSE REDUCTIONS.
FMR voluntarily agreed to reimburse the funds' operating expenses
(excluding interest, taxes, brokerage commissions and extraordinary
expenses) above an annual rate of .90%, 1.65% and .65% of average net
assets for Class A, Class B and Institutional shares, respectively. For the
period, the reimbursement reduced expenses by $37,089, $12,209 and $14,745
for Class A, Class B and Institutional shares, respectively.
6. SHARE TRANSACTIONS.
Share transactions for the three classes were as follows:
SHARES DOLLARS
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
MAY 31, NOVEMBER 30, MAY 31, NOVEMBER 30,
1995 1994 A 1995 1994 A
CLASS A
Shares sold 1,514,201 6,013,383 $ 14,775,399 $ 60,569,862
Reinvestment of distributions 91,987 179,386 908,406 1,790,938
Shares redeemed (1,998,843) (3,897,178) (19,549,073) (38,860,742)
Net increase (decrease) (392,655) 2,295,591 $ (3,865,268) $ 23,500,058
CLASS B
Shares sold 224,459 191,155 $ 2,207,679 $ 1,868,954
Reinvestment of distributions 4,446 1,276 44,119 12,309
Shares redeemed (31,124) (13,580) (308,780) (127,587)
Net increase (decrease) 197,781 178,851 $ 1,943,018 $ 1,753,676
INSTITUTIONAL CLASS
Shares sold 129,732 835,088 $ 1,269,463 $ 8,748,853
Reinvestment of distributions 2,677 7,683 26,411 77,415
Shares redeemed (374,672) (1,040,211) (3,703,015) (10,558,085)
Net increase (decrease) (242,263) (197,440) $ (2,407,141) $ (1,731,817)
A SHARE TRANSACTIONS FOR CLASS B ARE FOR THE PERIOD JUNE 30, 1994 TO
NOVEMBER 30, 1994.
INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior 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
UMB Bank, n.a.
Kansas City, MO
CUSTODIAN
UMB Bank, n.a.
Kansas City, MO
* INDEPENDENT TRUSTEES
GROWTH FUNDS
Fidelity Advisor Overseas Fund
Fidelity Advisor Equity Portfolio Growth
Fidelity Advisor Global Resources Fund
Fidelity Advisor Growth
Opportunities Fund
Fidelity Advisor Strategic
Opportunities Fund
GROWTH AND INCOME FUNDS
Fidelity Advisor Equity Income Fund
Fidelity Advisor Income & Growth Fund
INCOME FUNDS
Fidelity Advisor Emerging Markets Income Fund
Fidelity Advisor High Yield Fund
Fidelity Advisor Strategic Income Fund
Fidelity Advisor Government Investment Fund
Fidelity Advisor Limited Term Bond Fund
Fidelity Advisor Short Fixed-Income Fund
TAX-EXEMPT FUNDS
Fidelity Advisor High Income
Municipal Fund
Fidelity Advisor Limited Term Tax-Exempt Fund
Fidelity Advisor Short-Intermediate Tax-Exempt Fund
MONEY MARKET FUNDS
Daily Money Fund: Money Market Portfolio
Daily Money Fund: U.S. Treasury Portfolio
Daily Tax-Exempt Money Fund
(REGISTERED TRADEMARK)
(registered trademark)
(2_FIDELITY_LOGOS)FIDELITY ADVISOR
(registered trademark)
LIMITED TERM TAX-EXEMPT FUND - INSTITUTIONAL CLASS
SEMIANNUAL REPORT
MAY 31, 1995
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 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 22 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 ADVISOR FUND, INCLUDING CHARGES AND
EXPENSES,
CONTACT YOUR INVESTMENT PROFESSIONAL FOR A FREE PROSPECTUS. READ IT
CAREFULLY BEFORE
YOU INVEST OR SEND MONEY.
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
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 securities that
have grown in value). You can also look at income to measure performance.
If Fidelity had not reimbursed certain Institutional Class expenses during
the periods shown, the total returns and dividends would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED MAY 31, 1995 PAST 6 PAST 1 PAST 5 LIFE OF
MONTHS YEAR YEARS FUND
Advisor Limited Term Tax-Exempt -
Institutional Class 10.65% 6.74% 39.25% 98.72%
Lehman Brothers Municipal Bond 13.05% 9.11% 51.33% n/a
Index
Average Intermediate Municipal Bond Fund 9.37% 6.95% 42.93% n/a
Consumer Price Index 1.53% 3.19% 17.80% 40.54%
CUMULATIVE TOTAL RETURNS show Institutional Class' performance in
percentage terms over a set period - in this case, six months, one year,
five years, or since the fund began on September 19, 1985. 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 Institutional
Class' returns to those of the Lehman Brothers Municipal Bond Index - a
broad gauge of the municipal bond market. To measure how Institutional
Class' performance stacked up against its peers, you can compare it to the
average intermediate municipal bond fund, which reflects the performance of
119 intermediate municipal bond funds with similar objectives tracked by
Lipper Analytical Services over the past six months. These benchmarks
include reinvested dividends and capital gains, if any, and exclude the
effects of sales charges. Comparing Institutional Class' 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
PERIODS ENDED MAY 31, 1995 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND
Advisor Limited Term Tax-Exempt - Institutional 6.74% 6.85% 7.33%
Class
Lehman Brothers Municipal Bond Index 9.11% 8.64% n/a
Average Intermediate Municipal Bond Fund 6.95% 7.40% n/a
Consumer Price Index 3.19% 3.33% 3.58%
AVERAGE ANNUAL TOTAL RETURNS take Institutional Class shares' actual (or
cumulative) return and show you what would have happened if Institutional
Class shares had performed at a constant rate each year.
$100,000 OVER LIFE OF FUND
Fidelity Advisor Municipal Bond Ind
09/30/85 100000.00 100000.00
10/31/85 102557.17 103427.00
11/30/85 104518.70 107136.93
12/31/85 104786.60 108078.66
01/31/86 108552.95 114444.49
02/28/86 110379.00 118983.36
03/31/86 111068.10 119021.44
04/30/86 111554.80 119111.89
05/31/86 110562.30 117172.75
06/30/86 111676.16 118290.58
07/31/86 111960.20 119008.60
08/31/86 115655.60 124336.62
09/30/86 116142.84 124648.70
10/31/86 118558.41 126801.39
11/30/86 119558.59 129313.32
12/31/86 119157.24 128956.42
01/31/87 121284.52 132839.29
02/28/87 122646.64 133492.86
03/31/87 122005.70 132077.84
04/30/87 117021.28 125450.17
05/31/87 116948.40 124827.94
06/30/87 119132.26 128492.89
07/31/87 120529.61 129803.52
08/31/87 120788.83 130095.57
09/30/87 116934.52 125298.95
10/31/87 118019.88 125742.51
11/30/87 120723.78 129025.65
12/31/87 121929.17 130897.81
01/31/88 126301.55 135560.39
02/29/88 126816.75 136993.26
03/31/88 124962.64 135397.29
04/30/88 125590.83 136426.31
05/31/88 125988.23 136032.04
06/30/88 126873.86 138022.19
07/31/88 127533.93 138922.09
08/31/88 127595.03 139044.34
09/30/88 128995.08 141561.04
10/31/88 130529.64 144059.60
11/30/88 130104.99 142740.01
12/31/88 130925.95 144200.24
01/31/89 132250.99 147182.30
02/28/89 131461.13 145502.95
03/31/89 131044.20 145155.20
04/30/89 132896.39 148601.18
05/31/89 134880.92 151687.63
06/30/89 136361.29 153747.55
07/31/89 137722.08 155840.05
08/31/89 137275.96 154314.38
09/30/89 137248.75 153851.44
10/31/89 138349.47 155728.42
11/30/89 139863.17 158453.67
12/31/89 141123.88 159752.99
01/31/90 140663.56 159002.15
02/28/90 141912.66 160417.27
03/31/90 142154.39 160465.40
04/30/90 140692.58 159310.05
05/31/90 143257.71 162783.00
06/30/90 144443.78 164215.49
07/31/90 146186.94 166629.46
08/31/90 145336.96 164213.34
09/30/90 145726.21 164311.86
10/31/90 147355.90 167285.91
11/30/90 149706.96 170648.35
12/31/90 150111.01 171399.21
01/31/91 151787.15 173695.96
02/28/91 153169.10 175207.11
03/31/91 153271.98 175277.19
04/30/91 154661.44 177608.38
05/31/91 155900.45 179189.10
06/30/91 155995.16 179009.91
07/31/91 157557.67 181193.83
08/31/91 158816.64 183585.59
09/30/91 159790.02 185972.20
10/31/91 161505.96 187645.95
11/30/91 161913.01 188171.36
12/31/91 164588.52 192217.04
01/31/92 165738.30 192659.14
02/29/92 165928.40 192716.94
03/31/92 165293.94 192794.03
04/30/92 166450.10 194509.89
05/31/92 168275.76 196805.11
06/30/92 170484.19 200111.43
07/31/92 174155.82 206114.78
08/31/92 172868.17 204094.85
09/30/92 174482.76 205421.47
10/31/92 173291.13 203408.34
11/30/92 176493.83 207049.35
12/31/92 176574.07 209161.25
01/31/93 178797.37 211587.52
02/28/93 183621.15 219246.99
03/31/93 181839.18 216922.97
04/30/93 183152.46 219113.89
05/31/93 183959.38 220340.93
06/30/93 185942.63 224020.63
07/31/93 186375.32 224311.85
08/31/93 189674.72 228977.54
09/30/93 191683.54 231587.88
10/31/93 192088.93 232027.90
11/30/93 190636.57 229986.05
12/31/93 194119.97 234838.76
01/31/94 195964.40 237515.92
02/28/94 190932.79 231364.26
03/31/94 183517.55 221947.73
04/30/94 185180.14 223834.29
05/31/94 186876.99 225781.65
06/30/94 185573.67 224472.11
07/31/94 188199.66 228579.95
08/31/94 188950.57 229379.98
09/30/94 186685.23 226008.10
10/31/94 184072.62 221985.15
11/30/94 180278.42 217967.22
12/31/94 183577.57 222762.50
01/31/95 188038.62 229133.51
02/28/95 192846.63 235801.29
03/31/95 194998.48 238513.01
04/30/95 194984.88 238799.23
05/31/95 199481.35 246416.92
$100,000 OVER LIFE OF FUND: Let's say you invested $100,000 in Fidelity
Advisor Limited Term Tax-Exempt Fund - Institutional Class on September 30,
1985, shortly after the fund started. As the chart shows, by May 31, 1995,
the value of your investment would have grown to $199,481 - an 99.48%
increase on your initial investment. For comparison, look at how the Lehman
Brothers Municipal Bond Index did over the same period. With dividends
reinvested, the same $100,000 investment would have grown to $246,417 - a
146.42% increase.
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 YEARS ENDED NOVEMBER 30,
MONTHS
ENDED
MAY 31,
1995 1994 1993 1992 1991 1990
Dividend return 2.68% 4.44% 5.41% 6.42% 6.65% 6.76%
Capital appreciation 7.97% -9.87% 2.60% 2.59% 1.50% 0.28%
return
Total return 10.65% -5.43% 8.01% 9.01% 8.15% 7.04%
</TABLE>
DIVIDEND returns and capital appreciation returns are both part of a class'
total return. A dividend return reflects the actual dividends paid by the
class. A capital appreciation return reflects both the amount paid by the
class to shareholders as capital gain distributions and changes in the
class' share price. Both returns assume the dividends or gains are
reinvested.
DIVIDENDS AND YIELD
<TABLE>
<CAPTION>
<S> <C> <C> <C>
PERIODS ENDED MAY 31, 1995 PAST PAST 6 PAST 1
MONTH MONTHS YEAR
Dividends per share 3.99(cents) 24.30(cents) 48.68(cents)
Annualized dividend rate 4.67% 4.95% 4.95%
30-day annualized yield 4.71% - -
30-day annualized tax-equivalent yield 6.83% - -
</TABLE>
DIVIDENDS per share show the income paid by the class for a set period. If
you annualize this number, based on an average net asset value of $10.07
over the past month, $9.85 over the past six months and $9.84 over the past
year, you can compare the class' income over these three periods. The
30-day annualized YIELD is a standard formula for all 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. The tax- equivalent yield shows what you would have to
earn on a taxable investment to equal the class's tax-free yield, if you're
in the 31% federal tax bracket. If Fidelity had not reimbursed certain
Institutional Class expenses during the period shown, the yield and
tax-equivalent yield would have been 4.45% and 6.45%, respectively.
FUND TALK: THE MANAGER'S OVERVIEW
An interview with David Murphy, Portfolio Manager of Fidelity Advisor
Limited Term Tax-Exempt Fund
Q. DAVID, HOW HAS THE FUND PERFORMED?
A. For the six months ended May 31, 1995, the Fidelity Advisor Limited Term
Tax-Exempt Fund's Institutional Class had a total return of 10.65%. For the
year ended May 31, 1995, the fund's Institutional Class shares had a total
return of 6.74%. For comparison purposes, for the six- and 12-month periods
ended May 31, 1995, the average intermediate municipal fund returned 9.37%
and 6.95%, respectively.
Q. FROM FEBRUARY THROUGH NOVEMBER OF 1994, BOND PRICES FELL AS INTEREST
RATES ROSE. WHAT'S BEEN HAPPENING IN THE MUNICIPAL BOND MARKET SINCE
NOVEMBER OF LAST YEAR?
A. The municipal bond market has enjoyed a substantial rally during the
past six months. In hindsight, it's clear that the market was oversold by
late November. In addition to rising interest rates, tax-loss selling
pushed bond prices lower during October and the first half of November.
Tax-loss selling occurs when an investor wants to offset gains in one
investment by selling another investment that incurred losses, thereby
reducing his or her tax liability. When the tax-loss selling abated in late
November, the municipal bond market began to bounce back. At about the same
time, taxable interest rates started to come down and tax-free interest
rates followed suit as many investors began to anticipate that the Federal
Reserve Board was near the end of its process of raising short-term
interest rates.
Q. WHAT CAUSED THE FUND TO OUTPACE THE AVERAGE FUND DURING THE PAST SIX
MONTHS?
A. One factor was the fund's relatively large concentration in high-quality
bonds. There was a strong demand for high quality bonds during the bond
market rally, and their prices generally rose more than lower quality
bonds. Also, I was able to take advantage of some opportunities in the
market, buying bonds when I thought they were attractively priced, and
selling them after they had appreciated. For example, last fall the fund
held some discount bonds, which trade below their face value, when they had
gotten very cheap. As these securities appreciated over the past quarter, I
locked in profits by selling them.
Q. WHAT CHANGES HAVE YOU MADE SINCE TAKING OVER THE FUND IN MARCH?
A. I changed the way the fund is distributed among bonds with various
maturities. Beginning in November, the yield curve was somewhat steep. That
meant that there was a significant difference between yields on bonds of
various maturities, and consequently, investors were rewarded with more
yield by investing in longer-term maturities. At that time, the fund had
45.1% of its investments in bonds maturing in one to 10 years, and about
43.7% in bonds maturing in more than 10 years. As the yield curve
flattened, the yield advantage of longer-term bonds diminished. So I moved
the fund toward a "bulleted" strategy, concentrating about 55.8% of
investments in the one- to 10-year range and reducing the fund's stake in
bonds with maturities longer than 10 years to 33.9%. A bulleted strategy
could likely benefit the fund if the yield curve doesn't flatten further or
if it steepens.
Q. HAVE YOU MADE ANY CHANGES IN THE WAY THE FUND IS DISTRIBUTED AMONG
BONDS WITH DIFFERENT CREDIT QUALITIES?
A. Since taking over, I sold some lower investment-grade bonds rated A and
Aa by Moody's Investors Service and replaced them with insured bonds rated
Aaa. During the market's decline last year, insured bonds had generally
underperformed lower quality bonds and as a result, looked to be
attractively priced. The fund's stake in Aaa-rated bonds, including insured
bonds, rose to 50.1% by the end of the period, from 37.0% six months
earlier. Meanwhile, the fund's stake in Aa-rated and A-rated bonds stood at
13.1% and 25.1%, respectively, at the end of the period, down from 16.2%
and 33.4% six months earlier.
Q. WHAT TYPES OF BONDS LOOK ATTRACTIVE NOW?
A. Recently, I've bought some bonds known as forward delivery bonds,
including Lakeland, Florida, Electric Utilities and Intermountain Power
Agency. Since interest rates have declined again, many municipal bond
issuers want to refinance their older bonds that carry higher interest
rates at today's lower levels. But in some cases, the issuer is restricted
from refinancing today. So instead of an advance refunding, some
municipalities issue bonds for forward delivery. These bonds are priced on
a current basis, but won't settle until sometime in the future. In order to
attract buyers, the issuer offers the bonds with a higher-than-normal
coupon, or the interest the issuer promises to pay the bondholder.
Q. WHAT OTHER TYPES OF BONDS LOOK ATTRACTIVE GOING FORWARD?
A. In general, I try to avoid investing in callable bonds that trade at
par, or face value. Rather, I prefer to invest in bonds that sell at a
discount - below face value - or at a premium - above face value. Here's
why: When a par bond with a call rises above its par value, it stops
trading to its maturity date. Instead, it trades to an earlier call date,
the first date the issuer can redeem the bond. When that occurs, a par
bond's potential for price appreciation is limited, but it still carries a
level of risk that is equivalent to that of a longer term bond.
Q. CAN THE MUNICIPAL BOND MARKET SUSTAIN ITS RECENT STRENGTH OVER THE NEXT
SIX MONTHS?
A. I consider it unlikely that municipal bond prices will enjoy the same
degree of appreciation over the next six months that they did in the
previous six. I think it would be wise for shareholders to expect that the
fund's total return will be less dependent on capital appreciation and more
dependent on income. Investors should keep in mind that continued talk of
tax reform will likely add some volatility to the municipal market for the
balance of the year. But in my view, there probably won't be any new
dramatic tax legislation enacted before 1997.
FUND FACTS
GOAL: to seek the highest
level of income exempt from
federal income taxes that
can be obtained consistent
with the preservation of
capital
START DATE: September 19,
1985
SIZE: As of May 31, 1995,
more than $72 million
MANAGER: David Murphy,
since March 27, 1995;
joined Fidelity in 1989
(checkmark)
DAVID MURPHY ON HIS
OUTLOOK FOR THE ECONOMY:
"The risk that the economy
will move into a recession is
higher now than I had
originally expected several
months ago since the
economy has slowed more
quickly than I had expected.
The current consensus is that
real economic growth, after
factoring in inflation, will be
approximately flat. But,
beyond the second quarter of
the year, I'm more positive
about the outlook for the
economy. In my view, lower
interest rates could start to
stimulate housing and auto
sales, among other things,
and could ultimately
strengthen the economy by
the third quarter of this year."
(solid bullet) Education bonds were the
fund's second largest sector
concentration at 17.7% at the
end of the period. These bonds
are attractive because of their
relatively high yields.
INVESTMENT CHANGES
TOP FIVE STATES AS OF MAY 31, 1995
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO
California 13.3 13.7
Massachusetts 9.6 10.7
Illinois 8.7 2.5
Georgia 7.9 3.3
Texas 7.4 10.0
TOP FIVE SECTORS AS OF MAY 31, 1995
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO
General Obligation 18.3 16.0
Education 17.7 18.6
Health Care 14.7 16.7
Electric Revenue 11.5 14.4
Water & Sewer 8.4 4.8
AVERAGE YEARS TO MATURITY AS OF MAY 31, 1995
6 MONTHS AGO
Years 8.3 9.0
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 6.0 5.8
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.
QUALITY DIVERSIFICATION AS OF MAY 31, 1995
AS OF MAY 31, 1995 AS OF NOVEMBER 30, 1994
Row: 1, Col: 1, Value: 11.7
Row: 1, Col: 2, Value: 25.1
Row: 1, Col: 3, Value: 13.1
Row: 1, Col: 4, Value: 25.0
Row: 1, Col: 5, Value: 25.1
Row: 1, Col: 1, Value: 13.4
Row: 1, Col: 2, Value: 33.4
Row: 1, Col: 3, Value: 16.2
Row: 1, Col: 4, Value: 20.0
Row: 1, Col: 5, Value: 17.0
Aaa 50.1%
Aa 13.1%
A 25.1%
Short-term
investments 11.7%
Aaa 37.0%
Aa 16.2%
A 33.4%
Short-term
investments 13.4%
WHERE MOODY'S RATINGS ARE NOT AVAILABLE, WE HAVE USED S&P RATINGS.
INVESTMENTS MAY 31, 1995 (UNAUDITED)
Showing Percentage of Total Value of Investment in Securities
MUNICIPAL BONDS - 88.3 %
PRINCIPAL VALUE
AMOUNT (NOTE 1)
ALASKA - 2.8 %
North Slope Borough Series B, 0% 1/1/03, (MBIA Insured) $ 3,000,000 $
2,010,000
ARIZONA - 5.1 %
Central Wtr. Conservation Dist. Contract Rev. (Spl. Term)
6% 11/1/00 1,500,000 1,582,500
Maricopa County Ind. Dev. Auth. Hosp. Facs. Rev. Rfdg.
(Samaritan Health Scvs.) Series B, 6.90% 12/1/99,
(MBIA Insured) 1,000,000 1,093,750
Phoenix Arpt. Rev. Rfdg. Series A, 5.65% 7/1/01
(MBIA Insured) 1,000,000 1,047,500
3,723,750
CALIFORNIA - 13.3 %
California Pub. Wks. Board Lease Rev. (California Univ. Proj.)
Series A, 5.50% 6/1/10 1,000,000 960,000
Castaic Lake Wtr. Agcy. Ctfs. of Prtn. Rfdg. (Wtr. Sys.
Impt. Prog.) Series A, 7.25% 8/1/08, (MBIA Insured) 500,000 588,125
Chino Basin Reg'l. Fing. Auth. Rev. Rfdg. (Muni. Wtr. & Swr. Proj.)
7% 8/15/08, (AMBAC Insured) 1,000,000 1,152,500
La Quinta Redev. Agcy. (Tax Allocation Proj. Area #1):
Rfdg. 7.30% 9/1/09, (MBIA Insured) 750,000 885,000
7.30% 9/1/05 (MBIA Insured) 460,000 541,075
Los Angeles County Ctfs. of Prtn. (Disney Parking Project):
0% 9/1/02 630,000 411,075
0% 9/1/04 970,000 557,750
0% 9/1/05 1,395,000 748,069
Rosemead Redev. Agcy. Sub. Lien Tax Allocation Proj.
(Area 1) 0% 10/1/02 1,450,000 1,007,750
Sacramento County Fing. Auth. Lease Rev. Rfdg. Series A,
5.375% 11/1/14, (AMBAC Insured) 1,000,000 955,000
Sacramento Muni. Util. Dev. Index Inflows 1.76%
11/15/08, (FGIC Insured) (d) 1,000,000 862,500
West Covina Ctfs. of Prtn. (Queen of the Valley Hosp.)
6.50% 8/15/09 1,000,000 1,021,250
9,690,094
COLORADO - 2.9 %
Adams County Single Family Mtg. Rev. Rfdg. Series A-2,
8.70% 6/1/12, (FSA Insured) 1,000,000 1,098,750
Colorado Univ. Hosp. Auth. Hosp. Rev. Series A,
5.80% 11/15/03, (AMBAC Insured) 1,000,000 1,055,000
2,153,750
DELAWARE - 0.7 %
Delaware Trans. Auth. Trans. Sys. Rev. Jr. Rfdg.
5.80% 7/1/09, (MBIA Insured) 500,000 509,375
MUNICIPAL BONDS - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
DISTRICT OF COLUMBIA - 1.3 %
District of Columbia Gen. Oblig. Rfdg. Series B,
5.10% 6/01/03, (AMBAC Insured) $ 1,000,000 $ 985,000
FLORIDA - 2.5 %
Broward County Resources Recovery Rev. (SES Broward Co.
LP South Proj.) 7.95% 12/1/08 250,000 274,061
Lakeland Elec. & Wtr. Rev. Rfdg Jr. Sub Lien
6.25% 10/1/03, (FGIC Insured) (a) 470,000 501,138
Palm Beach County Solid Waste Auth. Rev. Series 1984,
7.75% 7/1/98, (MBIA Insured) 1,000,000 1,075,000
1,850,199
GEORGIA - 5.2 %
Georgia Gen. Oblig. Seies D, 6.80% 8/1/03 1,000,000 1,137,500
Metropolitan Atlanta Rapid Trans. Auth. Sales Tax Rev. Rfdg.
Series P, 6% 7/1/04 (AMBAC Insured) 2,000,000 2,140,000
Monroe County Dev. Auth. Poll. Cont. Rev. Rfdg.
(Oglethorpe Pwr. Scherer) Series A, 6.60% 1/1/07 500,000 542,500
3,820,000
ILLINOIS - 1.8 %
Chicago Single Family Mtg. Rev. (Cap. Appreciation)
Series A, 0% 12/1/16, (FGIC Insured) (b) 1,700,000 216,750
Illinois Health Facs. Auth. Rev. Rfdg. (Felician Health Care, Inc.)
Series A, 6.85% 1/1/00, (AMBAC Insured) 1,000,000 1,080,000
1,296,750
IOWA - 1.4 %
Iowa Student Loan Liquidity Corp. Student Loan Rev.
Series A, 6.35% 3/1/01 1,000,000 1,058,750
LOUISIANA - 7.1 %
Louisiana Gen. Oblig. 6.75% 5/15/04, (MBIA Insured) 1,000,000 1,120,000
Louisiana Pub. Facs. Auth. Rev. Student Loan Sr.
Series A-1, 6.20% 3/01/01 2,600,000 2,707,250
Munroe School Dist. 7.65% 3/1/04, (FGIC Insured) 1,150,000 1,336,875
5,164,125
MARYLAND - 1.8 %
Northeast Waste Disp. Auth. Resources Recovery
Rev. Rfdg. (Southwest Resources Recovery Fac.)
7% 1/1/01, (MBIA Insured) 500,000 551,250
Prince Georges County Rfdg. Consolidated Pub. Impt.
Ltd. Tax 5% 10/1/03 750,000 757,500
1,308,750
MUNICIPAL BONDS - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
MASSACHUSETTS - 9.6 %
Massachusetts Gen. Oblig. Cons. Loan Series A,
5% 1/1/12 $ 1,000,000 $ 923,750
Massachusetts Health & Edl. Facs. Auth. Rev. Rfdg.
(Boston College) Series K, 5.125% 6/1/08 1,000,000 957,500
Massachusetts Ind. Fin. Agcy. Rev. (Cap. Appreciation)
(Massachusetts Biomedical Research) Series A-1:
0% 8/1/00 (b) 1,100,000 848,375
0% 8/1/02 1,600,000 1,096,000
Massachusetts Wtr. Poll. Abatement Trust Rev.
(Massachusetts Wtr. Resources Auth. Loan Prog.)
Series A, 5.20% 2/1/06 1,200,000 1,189,500
New England Ed. Loan Marketing Corp. Rfdg.
(Massachusetts Student Loan) Series B, 5.40% 6/1/00 1,950,000 1,959,750
6,974,875
MISSISSIPPI - 1.4 %
Jackson Pub. School Dist. Rfdg. 6% 4/1/07 1,000,000 1,052,500
MULTIPLE STATES - 1.5 %
New England Ed. Loan Marketing Corp. Student Loan
Rev. Rfdg. Sr. Issue A, 6.50% 9/1/02 1,000,000 1,090,000
NEW JERSEY - 1.6 %
New Jersey Economic Dev. Auth. (Market Transition Fac.)
Rev. Sr. Lien Series A, 7% 7/1/04, (MBIA Insured) 1,000,000 1,138,750
NEW MEXICO - 4.5 %
New Mexico Edl. Assistance Foundation Student Loan Rev. Sr.
Series IV-A2, 6.65% 3/1/07 (c) 2,500,000 2,715,625
Rio Rancho Wtr. & Waste Sys. Rev. Series A, 8% 5/15/04,
(FSA Insured) (a) 500,000 599,375
3,315,000
NEW YORK - 0.7 %
New York State Local Govt. Assistance Corp. Series A,
0% 4/1/08 1,000,000 507,500
OHIO - 1.4 %
Ohio Wtr. Dev. Auth. Rev. Rfdg. & Impt. (Pure Wtr.)
5.50% 12/1/11, (AMBAC Insured) 1,000,000 997,500
PENNSYLVANIA - 3.0 %
Pennsylvania Hsg. Fin. Agcy. Rfdg. (Residential Dev. Section 8)
Series A, 7% 7/1/01 1,000,000 1,063,750
Philadelphia Muni. Auth. Rev. (Justice Lease) Series A,
6.80% 11/15/02, (MBIA Insured) 1,000,000 1,117,500
2,181,250
RHODE ISLAND - 1.5 %
Rhode Island Student Loan Auth. Student Loan Rev. Rfdg.
Series A, 6.55% 12/1/00 (b) 1,000,000 1,060,000
MUNICIPAL BONDS - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
SOUTH CAROLINA - 1.9 %
South Carolina Edl. Assistance Auth. Rev. Rfdg. Student
Loan Sr. Lien A-2, 5.40% 9/1/02 $ 1,350,000 $ 1,358,438
TEXAS - 7.4 %
Austin Util. Sys. Rev. Rfdg. Series A, 6% 11/15/06,
(MBIA Insured) 1,000,000 1,065,000
North East Independent School Dist. Rfdg. Series D,
0% 2/1/00 4,565,000 3,646,294
Port Arthur Hsg. Fin. Corp. Single Family Mtg. Rev. Rfdg.
8.70% 3/1/12 640,000 695,200
5,406,494
UTAH - 2.9 %
Intermountain Pwr. Agcy. Pwr. Supply:
Rev. Series A, 0% 7/1/06 (MBIA Insured) 2,860,000 1,562,275
Sys. Rev. Rfdg. Series B, 6.50% 7/1/04, (MBIA Insured) (a) 500,000
538,750
2,101,025
WASHINGTON - 5.0 %
Washington Motor Vehicle Fuel Tax Gen. Oblig. Series B,
6.50% 9/1/03 335,000 371,431
Washington Pub. Pwr. Supply Sys.:
Nuclear Proj. #1 Rev. Rfdg. 5.10% 7/01/00 1,000,000 991,250
Nuclear Proj. #2 Rev. 5.26% 7/1/12 2,000,000 1,850,000
Nuclear Proj. #3 Rev. Rfdg. Series C 5.10% 7/1/07 500,000 470,625
3,683,306
TOTAL MUNICIPAL BONDS
(Cost $63,027,122) 64,437,181
MUNICIPAL NOTES - 11.7 %
FLORIDA - 2.1 %
Dade County Health Facs. Auth. Hosp. Rev.
(Miami Childrens Hosp. Proj.) Series 1990, 4.20%,
LOC Barnett Bank, VRDN 1,500,000 1,500,000
GEORGIA - 2.7 %
Hapeville Dev. Auth. Ind. Dev. Rev. (Hapeville Hotel Proj.)
4.15%, LOC Swiss Bank, VRDN 2,000,000 2,000,000
ILLINOIS - 6.9 %
Illinois Dev. Fin. Auth. Multi-Family Hsg. Rev. Rfdg.
(Garden Glen Apts.) Series 93, 4.50%, VRDN 2,000,000 2,000,000
MUNICIPAL NOTES - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
ILLINOIS - CONTINUED
Illinois Health Facs. Auth. Rev. (Central Dupage Hosp.
Assoc. Proj.) Series 1990, 4.30% LOC Industrial
Bank of Japan, VRDN $ 3,000,000 $ 3,000,000
5,000,000
TOTAL MUNICIPAL NOTES
(Cost $8,500,000) 8,500,000
TOTAL INVESTMENTS - 100%
(Cost $71,527,122) $ 72,937,181
SECURITY TYPE ABBREVIATIONS
VRDN - Variable Rate Demand Notes
LEGEND
1. Security purchased on a delayed delivery basis (see Note 2 of Notes to
Financial Statements).
2. A portion of the Security was pledged to cover margin requirements for
delayed delivery purchases. At the period end, the value of securities
pledged amounted to $517,125.
3. Private activity obligations whose interest is subject to the federal
alternative minimum tax for individuals.
4. Debt obligation initially issued at one coupon which converts to a
higher coupon at a specified date.
OTHER INFORMATION
The composition of long-term debt holdings as a percentage of total value
of investment in securities, is as follows (ratings are unaudited):
MOODY'S RATINGS S&P RATINGS
Aaa, Aa, A 87.0% AAA, AA, A 75.6%
Baa 0.0% BBB 0.0%
Ba 0.0% BB 0.0%
B 0.0% B 0.0%
Caa 0.0% CCC 0.0%
Ca, C 0.0% CC, C 0.0%
D 0.0%
The percentage not rated by either S&P or Moody's amounted to 0.0%.
The distribution of municipal securities by revenue source, as a percentage
of total value of investment in securities, is as follows:
General Obligation 18.3%
Education 17.7
Health Care 14.7
Electric Revenue 11.5
Others (individually less than 10%) 37.8
TOTAL 100.0%
INCOME TAX INFORMATION
At May 31, 1995, the aggregate cost of investment securities for income tax
purposes was $71,527,122. Net unrealized appreciation aggregated
$1,410,059, of which $2,116,612 related to appreciated investment
securities and $706,553 related to depreciated investment securities.
At November 30, 1994, the fund had a capital loss carryforward of
approximately $627,000 all of which will expire on November 30, 2002.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
MAY 31, 1995 (UNAUDITED)
ASSETS
Investment in securities, at value (cost $71,527,122) - $ 72,937,181
See accompanying schedule
Cash 160,778
Receivable for investments sold 802,163
Interest receivable 937,082
Receivable for daily variation on futures contracts 2,220
Receivable from investment adviser for expense 12,684
reductions
TOTAL ASSETS 74,852,108
LIABILITIES
Payable for investments purchased $ 1,052,977
Regular delivery
Delayed delivery 1,606,489
Distributions payable 102,904
Accrued management fee 23,674
Other payables and accrued expenses 56,045
TOTAL LIABILITIES 2,842,089
NET ASSETS $ 72,010,019
Net Assets consist of:
Paid in capital $ 72,242,256
Accumulated undistributed net realized gain (loss) on (1,642,296)
investments
Net unrealized appreciation (depreciation) on 1,410,059
investments
NET ASSETS $ 72,010,019
CALCULATION OF MAXIMUM OFFERING PRICE $10.16
CLASS A:
NET ASSET VALUE, and redemption price per share
($58,001,583 (divided by) 5,709,290 shares)
Maximum offering price per share (100/95.25 of $10.16) $10.67
CLASS B: $10.16
NET ASSET VALUE, and offering price per share
($3,828,076 (divided by) 376,632 shares) A
INSTITUTIONAL CLASS: $10.16
NET ASSET VALUE, offering price and redemption price per
share ($10,180,360 (divided by) 1,001,997 shares)
</TABLE>
A REDEMPTION PRICE PER SHARE IS EQUAL TO NET ASSET VALUE LESS ANY
APPLICABLE CONTINGENT DEFERRED SALES CHARGE.
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED MAY 31, 1995 (UNAUDITED)
INTEREST INCOME $ 2,003,404
EXPENSES
Management fee $ 145,027
Transfer agent fees 63,620
Class A
Class B 2,764
Institutional Class 10,321
Distribution fees 71,961
Class A
Class B 13,624
Accounting fees and expenses 24,379
Non-interested trustees' compensation 167
Custodian fees and expenses 1,872
Registration fees 1,742
Class A
Class B 10,722
Institutional Class 9,966
Audit 18,050
Legal 3,981
Miscellaneous 3,556
Total expenses before reductions 381,752
Expense reductions (64,043) 317,709
NET INTEREST INCOME 1,685,695
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investment securities (406,389)
Futures contracts (497,460) (903,849)
Change in net unrealized appreciation (depreciation) on:
Investment securities 6,405,636
Futures contracts 71,142 6,476,778
NET GAIN (LOSS) 5,572,929
NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ 7,258,624
FROM OPERATIONS
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR ENDED
ENDED MAY 31, NOVEMBER 30,
1995 1994
(UNAUDITED)
INCREASE (DECREASE) IN NET ASSETS
Operations $ 1,685,695 $ 3,176,192
Net interest income
Net realized gain (loss) (903,849) (535,456)
Change in net unrealized appreciation (depreciation) 6,476,778 (6,988,987)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 7,258,624 (4,348,251)
FROM OPERATIONS
Distributions to shareholders: (1,356,221) (2,491,384)
From net interest income
Class A
Class B (51,777) (14,383)
Institutional Class (277,697) (670,425)
From net realized gain - (16,666)
Class A
Institutional Class - (6,213)
In excess of net realized gain - (61,420)
Class A
Institutional Class - (22,896)
TOTAL DISTRIBUTIONS (1,685,695) (3,283,387)
Share transactions - net increase (decrease) (4,329,391) 23,521,917
TOTAL INCREASE (DECREASE) IN NET ASSETS 1,243,538 15,890,279
NET ASSETS
Beginning of period 70,766,481 54,876,202
End of period $ 72,010,019 $ 70,766,481
</TABLE>
FINANCIAL HIGHLIGHTS - CLASS A
SIX MONTHS YEARS ENDED PERIOD ENDED
ENDED NOVEMBER 30, NOVEMBER 30,
MAY 31, 1995
(UNAUDITED) 1994 E 1993 1992 D
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
SELECTED PER-SHARE DATA
Net asset value, beginning of period $ 9.400 $ 10.460 $ 11.080 $ 11.010
Income from Investment Operations
Net interest income .230 .455 .508 .131
Net realized and unrealized gain (loss) .760 (1.040) .260 .070
on investments
Total from investment operations .990 (.585) .768 .201
Less Distributions
From net interest income (.230) (.455) (.508) (.131)
From net realized gain - - (.880) -
In excess of net realized gain - (.020) - -
Total distributions (.230) (.475) (1.388) (.131)
Net asset value, end of period $ 10.160 $ 9.400 $ 10.460 $ 11.080
TOTAL RETURN B, C 10.63% (5.78)% 7.72% 1.37%
Ratios and Supplemental Data
Net assets, end of period (000 omitted) $ 58,002 $ 57,382 $ 39,800 $ 1,752
Ratio of expenses to average net assets .90% .90% .90% 1.04% A
A
Ratio of expenses to average net assets 1.03% 1.04% 1.36% 1.06% A
before expense reductions A
Ratio of net interest income to average 4.71% 4.49% 4.76% 5.65% A
net assets A
Portfolio turnover 45% 53% 46% 36%
A
</TABLE>
A ANNUALIZED
B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND 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 (SEE NOTE 5 OF NOTES TO FINANCIAL
STATEMENTS).
D FOR THE PERIOD SEPTEMBER 10, 1992 (COMMENCEMENT OF SALES OF CLASS A
SHARES) TO NOVEMBER 30, 1992.
E 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 B
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS PERIOD ENDED
ENDED NOVEMBER 30,
MAY 31, 1995 1994 D
(UNAUDITED)
SELECTED PER-SHARE DATA
Net asset value, beginning of period $ 9.400 $ 9.890
Income from Investment Operations
Net interest income .192 .155
Net realized and unrealized gain (loss) on investments .760 (.490)
Total from investment operations .952 (.335)
Less Distributions
From net interest income (.192) (.155)
From net realized gain - -
In excess of net realized gain - -
Total distributions (.192) (.155)
Net asset value, end of period $ 10.160 $ 9.400
TOTAL RETURN B, C 10.20% (3.44)%
Ratios and Supplemental Data
Net assets, end of period (000 omitted) $ 3,828 $ 1,682
Ratio of expenses to average net assets 1.65% A 1.65%
A
Ratio of expenses to average net assets before 2.50% 2.36%
expense reductions A, E A
Ratio of net interest income to average net assets 3.82% A 3.74%
A
Portfolio turnover 45% A 53%
</TABLE>
A ANNUALIZED
B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND 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 (SEE NOTE 5 OF NOTES TO
FINANCIAL STATEMENTS).
D FOR THE PERIOD JUNE 30, 1994 (COMMENCEMENT OF SALES OF CLASS B SHARES) TO
NOVEMBER 30, 1994.
E LIMITED IN ACCORDANCE WITH A STATE EXPENSE LIMITATION.
FINANCIAL HIGHLIGHTS - INSTITUTIONAL CLASS
SIX MONTH YEARS ENDED NOVEMBER 30,
ENDED
MAY 31, 1995
(UNAUDITED) 1994 D 1993 1992 1991 1990
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SELECTED PER-SHARE DATA
Net asset value, $ 9.410 $ 10.460 $ 11.080 $ 10.800 $ 10.640 $ 10.610
beginning of period
Income from Investment
Operations
Net interest income .243 .481 .536 .666 .682 .689
Net realized and .750 (1.030) .260 .280 .160 .030
unrealized gain
(loss) on
investments
Total from investment .993 (.549) .796 .946 .842 .719
operations
Less Distributions
From net interest (.243) (.481) (.536) (.666) (.682) (.689)
income
From net realized gain - - (.880) - - -
In excess of net - (.020) - - - -
realized gain
Total distributions (.243) (.501) (1.416) (.666) (.682) (.689)
Net asset value, $ 10.160 $ 9.410 $ 10.460 $ 11.080 $ 10.800 $ 10.640
end of period
TOTAL RETURN B, C 10.65% (5.43) 8.01 9.01 8.15 7.04
% % % % %
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 10,180 $ 11,702 $ 15,076 $ 28,428 $ 100,294 $ 111,506
(000 omitted)
Ratio of expenses to .65% .65% .65 .66 .61 .62
average net assets A % % % %
Ratio of expenses to .91% .76% .83 .67 .61 .62
average net assets A % % % %
before expense
reductions
Ratio of net interest 4.96% 4.75% 5.01 6.05 6.40 6.53
income to average A % % % %
net assets
Portfolio turnover 45% 53% 46 36 20 32
A % % % %
</TABLE>
A ANNUALIZED
B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN (SEE NOTE 5 OF NOTES TO FINANCIAL
STATEMENTS).
C TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
D 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.
NOTES TO FINANCIAL STATEMENTS
For the period ended May 31, 1995 (Unaudited)
1. SIGNIFICANT ACCOUNTING
POLICIES.
Fidelity Advisor Limited Term Tax-Exempt Fund (the fund) is a fund of
Fidelity Advisor Series VI(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 A, Class B, and Institutional Class 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. 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, transfer
agent, registration, and certain other class-specific 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 quotations are not readily
available through the pricing service 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."
INTEREST INCOME. Interest income, which includes amortization of premium
and accretion of original issue discount, is accrued as earned.
DISTRIBUTIONS TO SHAREHOLDERS.
Distributions are declared daily and paid monthly from net interest income.
Distributions from realized gains, if any, 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
1. SIGNIFICANT ACCOUNTING
POLICIES - CONTINUED
DISTRIBUTIONS TO SHAREHOLDERS- CONTINUED
due to differing treatments for futures and options transactions and market
discount, capital loss carryforwards and losses deferred due to futures and
options.
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. 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.
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. 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.
FUTURES CONTRACTS AND OPTIONS.
The fund may use futures and options contracts to manage its exposure to
the bond market and to fluctuations in interest rates. Buying futures,
writing puts, and buying calls tend to increase the fund's exposure to the
underlying instrument. Selling futures, buying puts, and writing calls tend
to decrease the fund's exposure to the underlying instrument, or hedge
other fund investments. Losses may arise from changes in the value of the
underlying instruments, if there is an illiquid secondary market for the
contracts, or if the counterparties do not perform under the contracts'
terms.
Futures contracts are valued at the settlement price established each day
by the board of trade or exchange on which they are traded. Exchange-traded
options are valued using the last sale price or, in the absence of a sale,
the last offering price. Options traded over-the-counter are valued using
dealer-supplied valuations.
3. PURCHASES AND SALES
OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $14,585,499 and $19,699,543, respectively.
The market value of futures contracts opened and closed during the period
amounted to $33,506,951 and $38,681,610, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, Fidelity Management &
Research Company (FMR)receives a monthly fee that is calculated on the
basis of a group fee rate plus a fixed individual fund fee rate applied to
the average net assets of the fund. The group fee rate is the weighted
average of a series of rates and is based on the monthly average net assets
of all the mutual funds advised by FMR. The rates ranged from .1200% to
.3700% for the period. In the event that these rates were lower than the
contractual rates in effect during the period, FMR voluntarily implemented
the above rates, as they resulted in the same or a lower management fee.
The annual individual fund fee rate is .25%. For the period, the management
fee was equivalent to an annualized rate of .41% of average net assets.
DISTRIBUTION AND SERVICE PLAN.
In accordance with Rule 12b-1 of the 1940 Act, the Trustees have adopted
separate distribution plans with respect to the fund's Class A shares
("Class A Plan") and Class B shares ("Class B 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 annual rates of .25% and
1.00% (of which .75% represents a distribution fee and .25% represents a
shareholder service fee) of the average net assets of the Class A and Class
B shares, respectively. For the period, the fund paid FDC $71,961 and
$13,624 under the Class A Plan and Class B Plan, respectively, of which
$70,734 and $3,350 were paid to securities dealers, banks and other
financial institutions for the distribution of Class A and Class B 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 Plans also authorize payments to
third parties that assist in the sale of the fund's shares or render
shareholder support services. No payments were made under the Plans during
the period.
SALES LOAD. FDC receives a front-end sales charge of up to 4.75% for
selling Class A shares of the fund. For the period, FDC received sales
charges of $120,911 on sales of Class A shares of the fund, of which
$101,900 was paid to securities dealers, banks, and other financial
institutions. FDC also receives the proceeds of a contingent deferred sales
charge levied on Class B share redemptions occurring within five years
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
SALES LOAD - CONTINUED
of purchase. The charge is based on declining rates which range from 4% to
1% of the lesser of the cost of shares at the initial date of purchase or
the net asset value of the redeemed shares, excluding any reinvested
dividends and capital gains. For the period, FDC received contingent
deferred sales charges of $102 on Class B share redemptions from the fund.
When Class B shares are sold, FDC pays commissions from its own resources
to dealers through which the sales are made.
TRANSFER AGENT FEES. UMB Bank, n.a. (UMB) is the custodian, transfer agent,
and shareholder servicing agent for the fund's Class A, Class B, and
Institutional shares. UMB has entered into sub-arrangements with State
Street Bank and Trust Company (State Street) with respect to the Class A
shares, and Fidelity Investments Institutional Operations Company (FIIOC),
an affiliate of FMR, with respect to the Class B and Institutional shares,
to perform the transfer, dividend disbursing, and shareholder servicing
agent functions. During the period December 1, 1994 to December 31, 1994,
State Street and FIIOC received fees based on the type, size, number of
accounts and the number of transactions made by shareholders of the
respective classes of the fund. Effective January 1, 1995, the Board of
Trustees approved a revised transfer agent contract pursuant to which State
Street and FIIOC receive account fees and asset-based fees that vary
according to the account size and type of account of the shareholders of
the respective classes of the fund. All fees are paid to State Street and
FIIOC by UMB, which is reimbursed by the fund for such payments. FIIOC pays
for typesetting, printing and mailing of all shareholder reports, except
proxy statements.
5. EXPENSE REDUCTIONS.
FMR voluntarily agreed to reimburse the funds' operating expenses
(excluding interest, taxes, brokerage commissions and extraordinary
expenses) above an annual rate of .90%, 1.65% and .65% of average net
assets for Class A, Class B and Institutional shares, respectively. For the
period, the reimbursement reduced expenses by $37,089, $12,209 and $14,745
for Class A, Class B and Institutional shares, respectively.
6. SHARE TRANSACTIONS.
Share transactions for the three classes were as follows:
SHARES DOLLARS
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
MAY 31, NOVEMBER 30, MAY 31, NOVEMBER 30,
1995 1994 A 1995 1994 A
CLASS A
Shares sold 1,514,201 6,013,383 $ 14,775,399 $ 60,569,862
Reinvestment of distributions 91,987 179,386 908,406 1,790,938
Shares redeemed (1,998,843) (3,897,178) (19,549,073) (38,860,742)
Net increase (decrease) (392,655) 2,295,591 $ (3,865,268) $ 23,500,058
CLASS B
Shares sold 224,459 191,155 $ 2,207,679 $ 1,868,954
Reinvestment of distributions 4,446 1,276 44,119 12,309
Shares redeemed (31,124) (13,580) (308,780) (127,587)
Net increase (decrease) 197,781 178,851 $ 1,943,018 $ 1,753,676
INSTITUTIONAL CLASS
Shares sold 129,732 835,088 $ 1,269,463 $ 8,748,853
Reinvestment of distributions 2,677 7,683 26,411 77,415
Shares redeemed (374,672) (1,040,211) (3,703,015) (10,558,085)
Net increase (decrease) (242,263) (197,440) $ (2,407,141) $ (1,731,817)
A SHARE TRANSACTIONS FOR CLASS B ARE FOR THE PERIOD JUNE 30, 1994 TO
NOVEMBER 30, 1994.
INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior 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
UMB Bank, n.a.
Kansas City, MO
CUSTODIAN
UMB Bank, n.a.
Kansas City, MO
* INDEPENDENT TRUSTEES
GROWTH FUNDS
Fidelity Advisor Overseas Fund
Fidelity Advisor Equity Portfolio Growth
Fidelity Advisor Global Resources Fund
Fidelity Advisor Growth
Opportunities Fund
Fidelity Advisor Strategic
Opportunities Fund
GROWTH AND INCOME FUNDS
Fidelity Advisor Equity Income Fund
Fidelity Advisor Income & Growth Fund
INCOME FUNDS
Fidelity Advisor Emerging Markets Income Fund
Fidelity Advisor High Yield Fund
Fidelity Advisor Strategic Income Fund
Fidelity Advisor Government Investment Fund
Fidelity Advisor Limited Term Bond Fund
Fidelity Advisor Short Fixed-Income Fund
TAX-EXEMPT FUNDS
Fidelity Advisor High Income
Municipal Fund
Fidelity Advisor Limited Term Tax-Exempt Fund
Fidelity Advisor Short-Intermediate Tax-Exempt Fund
MONEY MARKET FUNDS
Daily Money Fund: Money Market Portfolio
Daily Money Fund: U.S. Treasury Portfolio
Daily Tax-Exempt Money Fund
(REGISTERED TRADEMARK)
(registered trademark)
(2_FIDELITY_LOGOS)FIDELITY ADVISOR
(registered trademark)
SHORT-INTERMEDIATE TAX-EXEMPT
FUND
SEMIANNUAL REPORT
MAY 31, 1995
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 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 15 Statements of assets and
liabilities, operations, and changes
in net assets, as well as financial
highlights.
NOTES 19 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 ADVISOR FUND
INCLUDING
CHARGES AND EXPENSES, CONTACT YOUR INVESTMENT PROFESSIONAL FOR A FREE
PROSPECTUS.
READ IT CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
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
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 $10,000 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 securities that
have grown in value). You can also look at income to measure performance.
If Fidelity had not reimbursed certain fund expenses during the periods
shown, the total returns and dividends would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED MAY 31, 1995 PAST 6 PAST 1 LIFE OF
MONTHS YEAR FUND
Advisor Short-Intermediate Tax-Exempt 5.78% 5.85% 6.07%
Advisor Short-Intermediate Tax-Exempt
(incl. max. 1.50% sales charge) 4.19% 4.27% 4.47%
Lehman Brothers Municipal Bond Index 13.05% 9.11% n/a
Average Short Muni Debt Fund 4.33% 4.59% n/a
Consumer Price Index 1.53% 3.19% 3.40%
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, six months, one year, or since the fund
started on March 16, 1994. 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 the fund's returns to the performance of the
Lehman Brothers Municipal Bond Index - a broad gauge of the municipal bond
market. To measure how the fund's performance stacked up against its peers,
you can compare it to the average short muni debt fund, which reflects the
performance of 49 funds with similar objectives tracked by Lipper
Analytical Services over the past six months. These benchmarks include
reinvested dividends and capital gains, if any, and exclude the effect of
sales charges. Comparing the fund's performance to the consumer price index
(CPI) helps show how your fund did compared to inflation. (The CPI returns
begin on the month end closest to the fund's start date.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED MAY 31, 1995 PAST 1 LIFE OF
YEAR FUND
Advisor Short-Intermediate Tax-Exempt 5.85% 4.98%
Advisor Short-Intermediate Tax-Exempt
(incl. max. 1.50% sales charge) 4.27% 3.68%
Lehman Brothers Municipal Bond Index 9.11% n/a
Average Short Muni Debt Fund 4.59% n/a
Consumer Price Index 3.19% 2.90%
AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had performed at a
constant rate each year.
$10,000 OVER LIFE OF FUND
Fidelity Advisor ShMunicipal Bond Ind
03/31/94 9850.00 10000.00
04/30/94 9873.66 10085.00
05/31/94 9890.94 10172.74
06/30/94 9911.64 10113.74
07/31/94 9992.26 10298.82
08/31/94 10024.82 10334.86
09/30/94 9997.13 10182.94
10/31/94 9962.73 10001.69
11/30/94 9898.29 9820.66
12/31/94 9995.49 10036.71
01/31/95 10133.68 10323.76
02/28/95 10239.13 10624.18
03/31/95 10309.05 10746.36
04/30/95 10326.92 10759.25
05/31/95 10469.99 11102.48
$10,000 OVER LIFE OF FUND: Let's say you invested $10,000 in Fidelity
Advisor Short-Intermediate Tax-Exempt Fund - on March 31, 1994, shortly
after the fund started, and paid the maximum 1.50% sales charge. As the
chart shows, by May 31, 1995, the value of your investment would have grown
to $10,470 - a 4.70% increase on your initial investment. For comparison,
look at how the Lehman Brothers Municipal Bond Index did over the same
period. With dividends reinvested, the same $10,000 investment would have
grown to $11,102 - an 11.02% increase.
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
MARCH 16, 1994
SIX MONTHS (COMMENCEMENT
ENDED OF
MAY 31, 1995 OPERATIONS) TO
NOVEMBER 30,
1994
Dividend return 2.30% 2.57%
Capital appreciation return 3.48% -2.30%
Total return 5.78% 0.27%
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 and exclude the effects of sales charges.
DIVIDENDS AND YIELD
PERIODS ENDED MAY 31, 1995 PAST PAST 6 PAST 1
MONTH MONTHS YEAR
Dividends per share 3.87(cents) 21.95(cents) 41.82(cents)
Annualized dividend rate 4.53% 4.42% 4.20%
30-day annualized yield 4.44% - -
30-day annualized tax-equivalent 6.43% - -
yield
DIVIDENDS per share show the income paid by the fund for a set period. If
you annualize this number, based on an average net asset value of $10.06
over the past month, $9.96 over the past six months and $9.95 over the past
year, you can compare the fund's income over these three periods. The
30-day annualized YIELD is a standard formula for all 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. The offering share price used in the calculation of the
yield includes the effect of the fund's maximum 1.50% sales charge. The
tax-equivalent yield shows what you would have to earn on a taxable
investment to equal the fund's tax-free yield, if you're in the 31% federal
tax bracket. If Fidelity had not reimbursed certain fund expenses during
the period shown, the yield and tax-equivalent yield would have been
3.84% and 5.57%, respectively.
FUND TALK: THE MANAGER'S OVERVIEW
An interview with David Murphy, Portfolio Manager of Fidelity Advisor
Short-Intermediate Tax-Exempt Fund
Q. DAVID, HOW HAS THE FUND PERFORMED?
A. Quite well compared to other funds of its type. For the six and 12
months ended May 31, 1995, the fund had total returns of 5.78% and 5.85%,
respectively. During the same periods, the average short municipal bond
fund returned 4.33% and 4.59%, respectively, as tracked by Lipper
Analytical Services.
Q. FROM FEBRUARY THOUGH NOVEMBER OF 1994, BOND PRICES FELL AS INTEREST
RATES ROSE. WHAT'S BEEN HAPPENING WITH THE MUNICIPAL BOND MARKET SINCE
NOVEMBER OF LAST YEAR?
A. The municipal bond market has enjoyed a substantial rally during the
past six months. In hindsight, it's clear that the market was oversold by
late November. In addition to rising interest rates, tax-loss selling
pushed bond prices lower during October and the first half of November.
Tax-loss selling occurs when an investor wants to offset gains in one
investment by selling another investment that incurred losses, thereby
reducing his or her tax liability. When the tax-loss selling abated in late
November, the municipal bond market began to bounce back. At about the same
time, taxable interest rates started to come down and tax-free interest
rates followed suit as many investors began to anticipate that the Federal
Reserve Board was close to the end of its process of raising interest
rates.
Q. WHY DID THE FUND OUTPACE ITS PEERS OVER THE PAST SIX MONTHS?
A. There were a number of individual reasons, but they all basically boiled
down to opportunistic trading, that is, buying bonds when I thought they
were attractively priced, and selling them after they had appreciated. For
example, last fall I bought some discount bonds, which trade below their
face value, when they had gotten very cheap. As the market rallied, these
bonds rose in value. So, in the spring I locked in profits by selling them.
Likewise, I moved in and out of student loan, pre-refunded and other types
of bonds as I believed market conditions warranted. Many of those moves
also paid off.
Q. OVER THE PAST SIX MONTHS THE FUND'S STAKE IN LOWER-INVESTMENT-GRADE
BAA-RATED BONDS HAS INCREASED. HOW HAVE THESE BONDS FARED?
A. Many of these bonds performed well over the past six months. For
example, Pennsylvania Convention Center, which was formerly rated Ba, was
upgraded to Baa and as a result, enjoyed a fair amount of appreciation
during the period. Allegheny County, Pennsylvania, which issued an
industrial development bond for Marathon Oil, a subsidiary of USX, also did
quite well, in part because the parent company was benefiting from the
economy's strength. Another example was Denver International Airport, which
finally opened in February. Its bonds have performed well recently.
Q. WHAT TYPES OF BONDS LOOK
ATTRACTIVE NOW?
A. Over the past two months I've bought some bonds known as forward
delivery bonds, including Lakeland, Florida, Electric Utilities. Interest
rates are relatively low now, so many municipal bond issuers want to
refinance their older bonds that carry higher interest rates at today's
lower levels. But in some cases, the issuer is restricted from refinancing
today. So instead of an advanced refunding, the issuer issues bonds for
forward delivery. These bonds are priced on a current basis, but won't
settle until sometime in the future. In order to attract buyers, the issuer
offers the bonds at a higher-than-normal coupon.
Q. YOU'VE MODIFIED HOW THE FUND IS DISTRIBUTED AMONG BONDS WITH VARIOUS
MATURITIES. WHAT'S BEHIND THAT MOVE?
A. Beginning in November, the yield curve was somewhat steep. That meant
that there was a significant difference between yields of various
maturities and, consequently, investors were rewarded with more yield by
investing in longer maturities. At that time, I had roughly 14% of the
fund's net assets in bonds maturing in three to five years, 23% in bonds
with maturities of five to seven years, and about 13% in bonds maturing in
seven to 10 years. As the yield curve flattened in February and March, the
yield advantage of longer-term bonds diminished. So I moved the fund toward
a "bulleted" strategy, concentrating about 30% of investments in the three-
to five-year range, selling some in the five- to seven-year range, and
virtually eliminating holdings in the seven- to 10-year range. If the
economy continues to slow or go into a recession, the yield curve could
steepen once again. If that were to happen, I would then move the fund out
of its bullet structure to a more "laddered" structure, distributing the
fund's investments more evenly across various maturity ranges.
Q. OVER THE COMING SIX MONTHS, CAN THE MUNICIPAL BOND MARKET SUSTAIN ITS
RECENT STRENGTH?
A. Continued talk of tax reform could add some volatility to the municipal
bond market for the balance of the year. But in my view, there will
probably be no new tax legislation enacted before 1997. One factor that
investors should be aware of is that between the beginning of June and the
end of July, over $50 billion of municipal bonds will mature or be redeemed
or called before their maturity date by their issuer. Investors holding
these bonds may look to reinvest in the municipal market. If that occurs,
it could be a positive for the municipal market. However, I consider it
unlikely that the kind of rise in municipal bond prices we've seen over the
past six months will continue. I think it would be wise for shareholders to
expect that the fund's total return will be less dependent on capital
appreciation and more dependent on income.
FUND FACTS
GOAL: to seek the highest
level of income exempt from
federal income taxes that
can be obtained consistent
with the preservation of
capital
START DATE: September 19,
1985
SIZE: As of May 31, 1995,
more than $72 million
MANAGER: David Murphy,
since March 27, 1995;
joined Fidelity in 1989
(checkmark)
DAVID MURPHY ON HIS
OUTLOOK FOR THE ECONOMY:
"The risk that the economy
will move into a recession is
higher now than I had
originally expected several
months ago since the
economy has slowed more
quickly than I had expected.
The current consensus is that
real economic growth, after
factoring in inflation, will be
approximately flat. But,
beyond the second quarter of
the year, I'm more positive
about the outlook for the
economy. In my view, lower
interest rates could start to
stimulate housing and auto
sales, among other things,
and could ultimately
strengthen the economy by
the third quarter of this year."
(solid bullet) Education bonds were the
fund's second largest sector
concentration at 17.7% at the
end of the period. These bonds
are attractive because of their
relatively high yields.
INVESTMENT CHANGES
TOP FIVE STATES AS OF MAY 31, 1995
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE STATES
6 MONTHS AGO
Texas 31.3 15.0
Montana 10.8 0.0
Pennsylvania 9.1 11.5
Louisiana 8.7 8.6
Colorado 5.7 3.1
TOP FIVE MARKET SECTORS AS OF MAY 31, 1995
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE MARKET SECTORS
6 MONTHS AGO
General Obligation 26.7 19.6
Education 25.2 22.2
Electric Revenue 12.8 10.3
Escrowed/Pre-Refunded 12.0 16.4
Lease Revenue 5.6 6.2
AVERAGE YEARS TO MATURITY AS OF MAY 31, 1995
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, 1995
6 MONTHS AGO
Years 2.8 3.1
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.
QUALITY DIVERSIFICATION (MOODY'S RATINGS)
AS OF MAY 31, 1995 AS OF NOVEMBER 30, 1994
Aaa 46.6%
Aa, A 40.9%
Baa 11.4%
Ba 0.0%
Non-rated 0.0%
Short-term
investments 1.1%
Aaa 29.8%
Aa, A 51.1%
Baa 6.1%
Ba 3.0%
Non-rated 3.2%
Short-term
investments 6.8%
Row: 1, Col: 1, Value: 2.0
Row: 1, Col: 2, Value: 0.0
Row: 1, Col: 3, Value: 0.0
Row: 1, Col: 4, Value: 11.4
Row: 1, Col: 5, Value: 40.0
Row: 1, Col: 6, Value: 46.6
Row: 1, Col: 1, Value: 6.8
Row: 1, Col: 2, Value: 3.2
Row: 1, Col: 3, Value: 3.0
Row: 1, Col: 4, Value: 6.1
Row: 1, Col: 5, Value: 51.1
Row: 1, Col: 6, Value: 29.8
WHERE MOODY'S RATINGS ARE NOT AVAILABLE, WE HAVE USED S&P RATINGS.
INVESTMENTS MAY 31, 1995 (UNAUDITED)
Showing Percentage of Total Value of Investment in Securities
MUNICIPAL BONDS - 98.8%
PRINCIPAL VALUE (NOTE 1)
AMOUNT
ALABAMA - 1.1 %
Mobile Board of Wtr. & Swr. Commissioners Wtr. Svc. Rev.
9.875% 1/1/98, (Escrowed to Maturity) (c) $ 175,000 $ 198,185
CALIFORNIA - 3.5 %
West Covina Ctfs. of Prtn. (Queen of the Valley Hosp.)
5.10% 8/15/96 630,000 630,788
COLORADO - 5.7 %
Aurora Ctf. of Prtn. Rfdg. 4.75% 12/1/96 500,000 503,750
Denver City & County Arpt. Rev. Series A (b):
6.60% 11/15/97 250,000 256,250
6.90% 11/15/98 250,000 260,000
1,020,000
FLORIDA - 3.0 %
Lakeland Elec. & Wtr. Rev. Rfdg. 6.25% 10/1/01,
(FGIC Insured) (d) 500,000 531,875
INDIANA - 1.0 %
Indianapolis Pub. Impt. Series D, 0% 2/1/18,
(Pre-Refunded to 2/1/98 @ 19.12) (c) 1,000,000 170,000
KENTUCKY - 4.3 %
Kentucky Tpk. Auth. Toll Road Rev. Rfdg. Series A,
13.375% 7/1/10, (Pre-Refunded to 8/15/95 @ 101) (c) 755,000 772,931
LOUISIANA - 8.7 %
Louisiana Pub. Facs. Auth. Rev. Student Loan Sr. Series A-1,
6.20% 3/01/01 1,490,000 1,551,463
MASSACHUSETTS - 2.9 %
Massachusetts Health & Edl. Facs. Auth. Rev. (Salem Hosp.)
Series A, 6.75% 7/1/00, (Pre-Refunded
to 7/1/97 @ 100) (c) 500,000 525,625
MICHIGAN - 2.7 %
Detroit Convention Facs. Rev. Rfdg. (Cobo Hall
Expansion Project) 4.75% 9/30/00 500,000 490,000
MONTANA - 10.8 %
Montana Higher Ed. Student Asst. Corp. Rev. Student Loan
Series B, 6.60% 12/1/99 (b) 1,835,000 1,922,163
NEVADA - 4.7 %
Clark County School Dist. Series A, 9.75% 6/1/01,
(MBIA Insured) 500,000 624,375
Washoe County (Reno Sparks Convention Bowling Fac.)
Series A, 8.50% 7/1/97, (FGIC Insured) 200,000 216,500
840,875
MUNICIPAL BONDS - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT
NEW JERSEY - 1.3 %
Somerset County Unltd. Tax Series B, 6.50% 11/1/97 $ 230,000 $ 242,363
OHIO - 2.9 %
Columbus Wtrwks. & Swr. Impt. Unltd.
Tax (Various Purp.) 12% 5/15/98 270,000 324,675
Ohio Pub. Facs. Commission Higher Ed. Cap. Facs.
Series II-A, 5.30% 12/1/95 200,000 201,250
525,925
PENNSYLVANIA - 8.5 %
Allegheny County Ind. Dev. Agency Rev. Rfdg.
Environmental Impt. Series B, 5.30% 12/1/96 1,000,000 1,003,750
Pennsylvania Convention Ctr. Auth. Rev. Rfdg.
Series A, 5.75% 9/1/99 500,000 508,125
1,511,875
SOUTH CAROLINA - 2.8 %
South Carolina Ed. Assistance Auth. Rev. Rfdg.
(Guaranteed Student Loan Sr. Lien) Series A2,
4.75% 9/1/96 500,000 500,625
TEXAS - 31.3 %
Austin Independent School Dist. School Bldg. 8.125% 8/1/01,
(PSF Guaranteed) 500,000 586,250
Brazos Higher Ed. Auth. Student Loan Rev. Rfdg.
Series A-1, 6.05% 12/1/01 (b) 500,000 522,500
Northside Independent School Dist. School Bldg.
8.375% 2/1/00 (PSF Guaranteed) 500,000 573,125
Plano Independent School District 8.625% 2/15/03,
(FGIC Insured) (Pre-Refunded to 2/15/01 @ 100) (c) 400,000 477,000
Round Rock Rfdg. 6.40% 8/1/98, (FGIC Insured) 770,000 797,913
San Antonio Elec. & Gas Rev. 6.40% 2/1/98 (a) 1,000,000 1,017,500
Texas Nat'l. Research Lab. Commission Fing. Corp.
Lease Rev. (Superconducting Supercollider)
5.70% 12/1/96 500,000 505,625
Texas Veterans Hsg. Assistance Series B-4,
5% 12/1/97 (b) 400,000 405,500
United Independent School District Unltd.
Tax 7.75% 8/15/98 (PSF Guaranteed) 650,000 707,688
5,593,101
UTAH - 0.6 %
Intermountain Pwr. Agcy. Unltd. Tax Pwr. Supply Rev. Rfdg.
Series J, 7.90% 7/1/95 100,000 100,250
MUNICIPAL BONDS - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT
WASHINGTON - 3.0 %
Washington Pub. Pwr. Supply Sys. Rev. Rfdg.
(Nuclear Proj. #1) Series A, 7.25% 7/1/99 $ 500,000 $ 542,500
TOTAL MUNICIPAL BONDS (Cost $17,427,947) 17,670,544
MUNICIPAL NOTES - 1.2%
ARIZONA - 0.6 %
Maricopa County Poll. Cont. Rev. (Pub. Svc. Co. of New Mexico)
Series 1992 A, 3.50%, LOC Canadian Imperial Bank,
VRDN 100,000 100,000
PENNSYLVANIA - 0.6 %
Schuylkill County Ind. Dev. Auth. Resource Recovery Rev.
(Westwood Energy Prop.) Series 1985, 4.20%,
LOC Fuji Bank, VRDN 100,000 100,000
TOTAL MUNICIPAL NOTES (Cost $200,000) 200,000
TOTAL INVESTMENTS - 100%
(Cost $17,627,947) $ 17,870,544
SECURITY TYPE ABBREVIATIONS
VRDN - Variable Rate Demand Notes
LEGEND
7. A portion of the security was pledged to cover margin requirements for
delayed delivery purchases. At the period end, the value of securities
pledged amounted to $610,500.
8. Private activity obligations whose interest is subject to the federal
alternative minimum tax for individuals.
9. Security collateralized by an amount sufficient to pay interest and
principal.
10. Security purchased on a delayed delivery basis (see Note 2 of Notes to
Financial Statements).
OTHER INFORMATION
The composition of long-term debt holdings as a percentage of total value
of investment in securities, is as follows:
MOODY'S RATINGS S&P RATINGS
Aaa, Aa, A 83.8% AAA, AA, A 62.2%
Baa 11.4% BBB 0.0%
Ba 0.0% BB 11.4%
B 0.0% B 0.0%
Caa 0.0% CCC 0.0%
Ca, C 0.0% CC, C 0.0%
D 0.0%
The distribution of municipal securities by revenue source, as a percentage
of total value of investment in securities, is as follows:
General Obligation 26.7%
Education 25.2
Electric Revenue 12.8
Escrowed/Pre-Refunded 12.0
Others (individually less than 10%) 23.3
TOTAL 100.0%
INCOME TAX INFORMATION
At May 31, 1995, the aggregate cost of investment securities for income tax
purposes was $17,627,947. Net unrealized appreciation aggregated $242,597,
of which $246,441 related to appreciated investment securities and $3,844
related to depreciated investment securities.
At November 30, 1994, the fund had a capital loss carryforward of
approximately $8,000 which will expire on November 30, 2002.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
MAY 31, 1995 (UNAUDITED)
ASSETS
Investment in securities, at value (cost $17,627,947) $ 17,870,544
- - See accompanying schedule
Cash 32,112
Interest receivable 394,813
Receivable from investment adviser for expense 3,939
reductions
TOTAL ASSETS 18,301,408
LIABILITIES
Payable for investments purchased on a delayed $ 519,135
delivery basis
Distributions payable 13,968
Accrued management fee 5,886
Payable for daily variation on futures contracts 559
Other payables and accrued expenses 19,466
TOTAL LIABILITIES 559,014
NET ASSETS $ 17,742,394
Net Assets consist of:
Paid in capital $ 17,436,375
Accumulated undistributed net realized gain (loss) on 63,422
investments
Net unrealized appreciation (depreciation) on 242,597
investments
NET ASSETS, for 1,755,709 shares outstanding $ 17,742,394
NET ASSET VALUE and redemption price per share $10.11
($17,742,394 (divided by) 1,755,709 shares)
Maximum offering price per share (100/98.50 of $10.11) $10.26
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED MAY 31, 1995 (UNAUDITED)
INTEREST INCOME $ 455,904
EXPENSES
Management fee $ 36,110
Transfer agent, accounting and custodian fees and 41,816
expenses
Distribution fees 13,377
Non-interested trustees' compensation 47
Registration fees 15,826
Audit 11,650
Legal 546
Reports to shareholders 128
Miscellaneous 114
Total expenses before reductions 119,614
Expense reductions (52,915) 66,699
NET INTEREST INCOME 389,205
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investment securities 95,770
Futures contracts (24,660) 71,110
Change in net unrealized appreciation (depreciation) on 535,738
investment securities
NET GAIN (LOSS) 606,848
NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ 996,053
FROM OPERATIONS
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS MARCH 16, 1994
ENDED MAY 31, (COMMENCEMENT
1995 OF OPERATIONS) TO
(UNAUDITED) NOVEMBER 30,
1994
INCREASE (DECREASE) IN NET ASSETS
Operations $ 389,205 $ 286,310
Net interest income
Net realized gain (loss) 71,110 (7,688)
Change in net unrealized appreciation (depreciation) 535,738 (293,141)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 996,053 (14,519)
FROM OPERATIONS
Dividends to shareholders from net interest income (389,205) (286,310)
Share transactions 10,772,874 23,575,248
Net proceeds from sales of shares
Reinvestment of distributions 289,521 218,561
Cost of shares redeemed (10,490,282) (6,929,547)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 572,113 16,864,262
FROM SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) IN NET ASSETS 1,178,961 16,563,433
NET ASSETS
Beginning of period 16,563,433 -
End of period $ 17,742,394 $ 16,563,433
OTHER INFORMATION
Shares
Sold 1,084,736 2,370,102
Issued in reinvestment of distributions 29,002 22,041
Redeemed (1,052,514) (697,658)
Net increase (decrease) 61,224 1,694,485
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS MARCH 16, 1994
ENDED (COMMENCEMEN
MAY 31, 1995 T OF OPERATIONS)
(UNAUDITED) TO NOVEMBER
30, 1994
SELECTED PER-SHARE DATA
Net asset value, beginning of period $ 9.770 $ 10.000
Income from Investment Operations .220 .259
Net interest income
Net realized and unrealized gain (loss) .340 (.230)
Total from investment operations .560 .029
Less Distributions (.220) (.259)
From net interest income
Net asset value, end of period $ 10.110 $ 9.770
TOTAL RETURN B, C 5.78% .27%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 17,742 $ 16,563
Ratio of expenses to average net assets .75% A .75% A
Ratio of expenses to average net assets before 1.35% A 1.54% A
expense reductions
Ratio of net interest income to average net assets 4.38% A 3.74% A
Portfolio turnover rate 129% A 111% A
</TABLE>
A ANNUALIZED
B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN
(SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS).
C TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS
LESS THAN ONE YEAR ARE NOT ANNUALIZED.
NOTES TO FINANCIAL STATEMENTS
For the period ended May 31, 1995 (Unaudited)
1. SIGNIFICANT ACCOUNTING
POLICIES.
Fidelity Advisor Short-Intermediate Tax-Exempt Fund (the fund) is a fund of
Fidelity Advisor Series VI (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
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 quotations are not readily
available through the pricing service 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."
INTEREST INCOME. Interest income, which includes amortization of premium
and 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 between 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. 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). 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.
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
2. OPERATING POLICIES -
CONTINUED
DELAYED DELIVERY TRANSACTIONS - CONTINUED
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.
FUTURES CONTRACTS AND OPTIONS.
The fund may use futures and options contracts to manage its exposure to
the bond market and to fluctuations in interest rates. Buying futures,
writing puts, and buying calls tend to increase the fund's exposure to the
underlying instrument. Selling futures, buying puts, and writing calls tend
to decrease the fund's exposure to the underlying instrument, or hedge
other fund investments. Losses may arise from changes in the value of the
underlying instruments, if there is an illiquid secondary market for the
contracts, or if the counterparties do not perform under the contracts'
terms.
Futures contracts are valued at the settlement price established each day
by the board of trade or exchange on which they are traded. Exchange-traded
options are valued using the last sale price or, in the absence of a sale,
the last offering price. Options traded over-the-counter are valued using
dealer-supplied valuations.
3. PURCHASES AND SALES
OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $12,663,813 and $10,582,883, respectively.
The market value of futures contracts opened and closed during the period
amounted to $2,040,990 and $2,065,650, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, Fidelity Management &
Research Company (FMR) receives a monthly fee that is calculated on the
basis of a group fee rate plus a fixed individual fund fee rate applied to
the average net assets of the fund. The group fee rate is the weighted
average of a series of rates and is based on the monthly average net assets
of all the mutual funds advised by FMR. The rates ranged from .1200% to
.3700% for the period. In the event that these rates were lower than the
contractual rates in effect during the period, FMR voluntarily implemented
the above rates, as they resulted in the same or a lower management fee.
The annual individual fund fee rate is .25%. For the period, the management
fee was equivalent to an annualized rate of .41% of average net assets.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
DISTRIBUTION AND SERVICE PLAN. Pursuant to the Distribution and Service
Plan (the Plan), and in accordance with Rule 12b-1 of the 1940 Act, the
fund pays Fidelity Distributors Corporation (FDC), an affiliate of FMR, a
distribution and service fee that is based on an annual rate of .15% of its
average net assets. For the period, the fund paid FDC $13,377 of which
$11,773 was paid to securities dealers, banks and other financial
institutions for selling shares of the fund 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.
SALES LOAD. FDC received sales charges for selling shares of the fund. The
sales charge rate is 1.50% based on purchase amounts of less than
$1,000,000. Purchase amounts of $1,000,000 or more are not charged a sales
load. For the period, FDC received $48,443 of which $38,519 was paid to
securities dealers, banks and other financial institutions.
TRANSFER AGENT AND ACCOUNTING FEES. UMB Bank, n.a. (the Bank) is the
custodian and transfer and shareholder servicing agent for the fund. The
Bank has entered into a sub-contract with State Street Bank and Trust
Company (SSB) under which SSB performs the activities associated with the
fund's transfer and shareholder servicing agent functions. SSB has an
arrangement for certain transfer, dividend disbursing and shareholder
servicing agent functions to be performed by Fidelity Investments
Institutional Operations Company (FIIOC), an affiliate of FMR. During the
period December 1, 1994 to December 31, 1994, the fund paid fees based on
the type, size, number of accounts and the number of transactions made by
shareholders. Effective January 1, 1995, the Board of Trustees approved a
revised transfer agent contract pursuant to which the fund pays account
fees and asset-based fees that vary according to account size and type of
account.
The Bank also has a sub-contract with Fidelity Service Co. (FSC), an
affiliate of FMR, under which FSC maintains the fund's accounting records.
The fee is based on the level of average net assets for the month plus
out-of-pocket expenses. For the period, FSC received accounting fees
amounting to $23,309.
5. EXPENSE REDUCTIONS.
For the period, FMR voluntarily agreed to reimburse the fund's operating
expenses (excluding interest, taxes, brokerage commissions and
extraordinary expenses) above an annualized rate of .75% of average net
assets. For the period, the reimbursement reduced the fund's expenses by
$52,915 or 0.6% of average net assets under this arrangement.
INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior 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
UMB Bank, n.a.
Kansas City, MO
CUSTODIAN
UMB Bank, n.a.
Kansas City, MO
* INDEPENDENT TRUSTEES
GROWTH FUNDS
Fidelity Advisor Overseas Fund
Fidelity Advisor Equity Portfolio Growth
Fidelity Advisor Global Resources Fund
Fidelity Advisor Growth
Opportunities Fund
Fidelity Advisor Strategic
Opportunities Fund
GROWTH AND INCOME FUNDS
Fidelity Advisor Equity Income Fund
Fidelity Advisor Income & Growth Fund
INCOME FUNDS
Fidelity Advisor Emerging Markets Income Fund
Fidelity Advisor High Yield Fund
Fidelity Advisor Strategic Income Fund
Fidelity Advisor Government Investment Fund
Fidelity Advisor Limited Term
Bond Fund
Fidelity Advisor Short
Fixed-Income Fund
TAX-EXEMPT FUNDS
Fidelity Advisor High Income
Municipal Fund
Fidelity Advisor Limited Term Tax-Exempt Fund
Fidelity Advisor Short-Intermediate Tax-Exempt Fund
MONEY MARKET FUNDS
Daily Money Fund:
Money Market Portfolio
Daily Money Fund:
U.S. Treasury Portfolio
Daily Tax-Exempt Money Fund
(REGISTERED TRADEMARK)
