SUPPLEMENT TO THE
FIDELITY ADVISOR FUNDS INSTITUTIONAL CLASS PROSPECTUS
DATED JUNE 30, 1995
EFFECTIVE JANUARY 1, 1996, CERTAIN OF THE FUNDS' NAMES HAVE BEEN CHANGED:
ADVISOR EQUITY PORTFOLIO GROWTH HAS BEEN RENAMED ADVISOR EQUITY GROWTH
FUND, ADVISOR LIMITED TERM BOND FUND HAS BEEN RENAMED ADVISOR INTERMEDIATE
BOND FUND, ADVISOR LIMITED TERM TAX-EXEMPT FUND HAS BEEN RENAMED ADVISOR
INTERMEDIATE MUNICIPAL INCOME FUND, AND ADVISOR SHORT-INTERMEDIATE
TAX-EXEMPT FUND HAS BEEN RENAMED ADVISOR SHORT-INTERMEDIATE MUNICIPAL
INCOME FUND. SEE BELOW FOR INFORMATION ON RELATED CHANGES TO THESE FUNDS'
INVESTMENT POLICIES
THE FOLLOWING INFORMATION SUPPLEMENTS THE FIRST PARAGRAPH FOLLOWING THE
EXPENSE TABLE EXAMPLE IN THE "KEY FACTS" SECTION, ON PAGE 6.
Effective October 30, 1995, FMR has voluntarily agreed to reimburse the
Institutional Class of certain funds to the extent that total operating
expenses as a percentage of their respective average net assets exceed the
following rates: 1.25% for Income & Growth; 1.75% for Global Resources; and
1.75% for Overseas.
THE FOLLOWING INFORMATION UPDATES THE DISCUSSION OF PORTFOLIO MANAGERS IN
THE "FMR AND ITS AFFILIATES" SECTION, ON PAGES 17 AND 18.
John H. Carlson is lead manager of Advisor Strategic Income, which he has
managed since August 1995, and is manager of the fund's emerging market
investments. Effective January 1, 1996, Margaret Eagle is manager of the
fund's high yield investments, Kevin Grant is manager of the fund's
domestic investment grade and U.S. Government investments, and Jonathan
Kelly is manager of the fund's foreign bond investments in developed
markets.
Kevin Grant is vice president and manager of Advisor Intermediate Bond,
which he has managed since October 1995, and is manager of Advisor
Strategic Income's domestic investment grade and U.S. Government
investments effective January 1, 1996. He also manages Spartan Ginnie Mae,
Ginnie Mae, and Mortgage Securities. Previously, he was vice president and
chief strategist for mortgage-backed securities at Morgan Stanley and an
investment director at Aetna Bond Investors. Mr. Grant joined Fidelity in
1993.
Jonathan Kelly is manager of Advisor Strategic Income's foreign bond
investments in developed markets effective January 1, 1996. He also
manages Global Bond. Previously, he managed Advisor Emerging Markets
Income, and New Markets Income. Mr. Kelly joined Fidelity in 1991, after
receiving his M.B.A. from the Wharton School at the University of
Pennsylvania. Mr. Kelly worked in the money management field prior to
business school.
Norman Lind is vice president and manager of Advisor Short-Intermediate
Municipal Income, which he has managed since October 1995. He also manages
Advisor New York Municipal Income, New York Tax-Free Insured, New York
Tax-Free High Yield, Spartan New York Municipal High Yield, Spartan
Intermediate Municipal, Spartan Short-Intermediate Municipal, and Spartan
New York Intermediate Municipal. Previously, he served as the leader of the
municipal bond research group. Mr. Lind joined Fidelity in 1986.
Tanya M. Roy is manager of Advisor High Income Municipal, which she has
managed since August 1995. She also manages Aggressive Tax-Free and
Spartan Aggressive Municipal. Previously, she managed Municipal Bond and
was a municipal bond analyst. Ms. Roy joined Fidelity in 1989.
PLEASE NOTE: THE NEXT SEVEN CHANGES TO THE PROSPECTUS UPDATE INFORMATION IN
THE "INVESTMENT PRINCIPLES AND RISKS" SECTION, BEGINNING ON PAGE 19.
THE FOLLOWING INFORMATION REPLACES THE FIFTH PARAGRAPH OF THE "INVESTMENT
PRINCIPLES AND RISKS" SECTION.
If you are subject to the federal alternative minimum tax, you should note
that each of High Income Municipal, Intermediate Municipal Income, and
Short-Intermediate Municipal Income may invest up to 100% of its assets in
municipal securities issued to finance private activities. The interest
from these investments is a tax-preference item for purposes of the tax.
THE FOLLOWING INFORMATION REPLACES THE THIRD PARAGRAPH UNDER THE HEADING
"LIMITED TERM BOND FUND."
Although Intermediate Bond can invest in securities of any maturity, the
fund maintains a dollar-weighted average maturity of between three and ten
years under normal conditions. In determining a security's maturity for
purposes of calculating the fund's average maturity, an estimate of the
average time for its principal to be paid may be used. This can be
substantially shorter than its stated final maturity.
THE FOLLOWING INFORMATION REPLACES THE LAST SENTENCE OF THE THIRD PARAGRAPH
UNDER THE HEADING "HIGH INCOME MUNICIPAL FUND."
Although the fund can invest in securities of any maturity, FMR seeks to
manage the fund so that it generally reacts to changes in interest rates
similarly to municipal bonds of comparable quality with maturities between
15 and 20 years.
THE FOLLOWING INFORMATION REPLACES THE LAST SENTENCE OF THE SECOND
PARAGRAPH UNDER THE HEADING "LIMITED TERM TAX-EXEMPT FUND."
Intermediate Municipal Income may, under normal conditions, invest up to
100% of its assets in municipal securities subject to the federal
alternative minimum tax.
THE FOLLOWING INFORMATION REPLACES THE THIRD PARAGRAPH UNDER THE HEADING
"LIMITED TERM TAX-EXEMPT FUND."
Although the fund can invest in securities of any maturity, the fund
maintains a dollar-weighted average maturity of between three and ten years
under normal conditions. FMR seeks to manage the fund so that it generally
reacts to changes in interest rates similarly to municipal bonds with
maturities between seven and ten years.
THE FOLLOWING INFORMATION REPLACES THE THIRD SENTENCE OF THE SECOND
PARAGRAPH UNDER THE HEADING "SHORT-INTERMEDIATE TAX-EXEMPT FUND."
Short-Intermediate Municipal Income may, under normal conditions, invest up
to 100% of its assets in municipal securities subject to the federal
alternative minimum tax.
THE FOLLOWING INFORMATION REPLACES THE THIRD PARAGRAPH UNDER THE HEADING
"SHORT-INTERMEDIATE TAX-EXEMPT FUND."
Although Short-Intermediate Municipal Income can invest in securities of
any maturity, the fund maintains a dollar-weighted average maturity of
between two and five years under normal conditions.
THE FOLLOWING INFORMATION REPLACES THE FIFTH PARAGRAPH UNDER THE HEADING
"OTHER EXPENSES" IN THE "BREAKDOWN OF EXPENSES" SECTION, ON PAGE 29.
Each fund has adopted a DISTRIBUTION AND SERVICE PLAN on behalf of
Institutional Class. Each Plan recognizes that FMR may use its resources,
including management fees, to pay expenses associated with the sale of
Institutional Class shares. This may include payments to third parties,
such as banks or broker-dealers, that provide shareholder support services
or engage in the sale of the funds' Institutional Class shares. The Board
of Trustees of each fund has authorized such payments.
THE FOLLOWING INFORMATION SUPPLEMENTS DISCUSSIONS OF INVESTING THROUGH AN
INVESTMENT PROFESSIONAL IN THE "TYPES OF ACCOUNTS" SECTION, BEGINNING ON
PAGE 30.
Your Investment Professional (including broker-dealers) may charge you a
transaction fee with respect to the purchase and sale of fund shares.
THE FOLLOWING INFORMATION SUPPLEMENTS THE MINIMUM INVESTMENTS CHART IN THE
"HOW TO BUY SHARES"SECTION, ON PAGE 31.
For Fidelity Advisor retirement accounts:
To Open an Account $500
To Add to an Account $100
Minimum Balance None
THE FOLLOWING INFORMATION REPLACES THE SEVENTH PARAGRAPH UNDER THE HEADING
"TAXES ON DISTRIBUTIONS" IN THE "DIVIDENDS, CAPITAL GAINS, AND TAXES"
SECTION, BEGINNING ON PAGE 34.
The interest from some municipal securities is subject to the federal
alternative minimum tax. Each of High Income Municipal, Intermediate
Municipal Income, and Short-Intermediate Municipal Income may invest up to
100% of its assets in these securities. Individuals who are subject to the
tax must report this interest on their tax returns.
(PAGE 2 OF 2)
SUPPLEMENT TO THE
FIDELITY ADVISOR FUNDS CLASS A AND CLASS B PROSPECTUS
DATED JUNE 30, 1995
EFFECTIVE JANUARY 1, 1996, CERTAIN OF THE FUNDS' NAMES HAVE BEEN CHANGED:
ADVISOR EQUITY PORTFOLIO GROWTH HAS BEEN RENAMED ADVISOR EQUITY GROWTH
FUND, ADVISOR LIMITED TERM BOND FUND HAS BEEN RENAMED ADVISOR INTERMEDIATE
BOND FUND, ADVISOR LIMITED TERM TAX-EXEMPT FUND HAS BEEN RENAMED ADVISOR
INTERMEDIATE MUNICIPAL INCOME FUND, AND ADVISOR SHORT-INTERMEDIATE
TAX-EXEMPT FUND HAS BEEN RENAMED ADVISOR SHORT-INTERMEDIATE MUNICIPAL
INCOME FUND. SEE BELOW FOR INFORMATION ON RELATED CHANGES TO THESE FUNDS'
INVESTMENT POLICIES.
EFFECTIVE JANUARY 1, 1996, CERTAIN OF THE FUNDS' FRONT-END SALES CHARGES
AND CONTINGENT DEFERRED SALES CHARGES HAVE BEEN REDUCED. IN ADDITION,
CERTAIN OF THE FUNDS' CONTINGENT DEFERRED SALES CHARGE SCHEDULES HAVE BEEN
SHORTENED.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION IN THE "EXPENSES"
SECTION, BEGINNING ON PAGE 3.
EXPENSES
SHAREHOLDER TRANSACTION EXPENSES are charges you pay when you buy, sell,
exchange, or hold shares of a fund. Lower front-end sales charges may be
available with purchases of $50,000 or more. See "Transaction Details" for
an explanation of how and when these charges apply.
A contingent deferred sales charge (CDSC) is imposed only if you redeem
Class B shares within three years of purchase for Intermediate Bond and
Intermediate Municipal Income or within five years of purchase for all
other funds. See "Transaction Details" for information about the CDSC.
Clas Clas
s A s B
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Maximum sales charge on purchases of: 3.50 None
Overseas, Equity Growth, Global Resources, Growth Opportunities, Strategic Opportunities, Equity Income, and %
Income & Growth (the Equity Funds) (as a % of offering price)
Maximum sales charge on purchases of: 3.50 None
Emerging Markets Income, High Yield, Strategic Income, Government Investment, and High Income Municipal %
(the Bond Funds) (as a % of offering price)
Maximum sales charge on purchases of: 2.75 None
Intermediate Bond and Intermediate Municipal Income (the Intermediate-Term Bond Funds) (as a % of offering %
price)
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Maximum sales charge on purchases of: 1.50 None
Short Fixed-Income and Short-Intermediate Municipal Income (the Short-Term Bond Funds) (as a % of offering %
price)
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Maximum CDSC for all funds that offer Class B shares (except the Intermediate-Term Bond Funds) (as a % of the None 4.00%
lesser of original purchase price or redemption proceeds) [A]
Maximum CDSC for the Intermediate-Term Bond Funds (as a % of the lesser of original purchase price or None 3.00%
redemption proceeds) [B]
</TABLE>
Maximum sales charge on None None
reinvested distributions
Redemption fee None None
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Exchange fee None None
Annual account maintenance fee (for accounts under $2,500) $12.0 $12.0
0 0
</TABLE>
[A] DECLINES OVER FIVE YEARS FROM 4.00% TO 0% .
[B] DECLINES OVER THREE YEARS FROM 3.00% TO 0% .
THE FOLLOWING TABLES REPLACE CORRESPONDING TABLES FOUND ON PAGES 5, 6, 7,
8, AND 9. SEE THE CURRENT PROSPECTUS FOR EXISTING EXPLANATION OF THE
FUNDS' ANNUAL OPERATING EXPENSES.
ANNUAL OPERATING EXPENSES
The following table shows projections based on estimated or historical
expenses, adjusted for current fees, of each class of each fund and are
calculated as a percentage of average net assets of the applicable class of
each fund.
...EQUITY FUNDS
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Operating Expenses Class A Class B
OVERSEAS Management fee 0.80 0.80
% %
12b-1 fee (including 0.25% Shareholder 0.50 1.00
Service Fee for Class B shares) % %
Other expenses 0.67 0.53%[
% A]
Total operating expenses 1.97 2.33
% %
EQUITY GROWTH Management fee 0.62%[ *
B]
12b-1 fee (Distribution fee) 0.50 *
%
Other expenses 0.41%[C *
]
Total operating expenses 1.53 *
%
GLOBAL RESOURCES Management fee 0.77 0.77
% %
12b-1 fee (including 0.25% Shareholder 0.50 1.00
Service Fee for Class B shares) % %
Other expenses 0.65%[ 0.53%[A
C] ]
Total operating expenses 1.92 2.30
% %
GROWTH OPPORTUNITIES Management fee 0.69 *
%
12b-1 fee (Distribution fee) 0.50 *
%
Other expenses 0.28%[ *
C]
Total operating expenses 1.47 *
%
STRATEGIC OPPORTUNITIES Management fee 0.67 0.67
% %
12b-1 fee (including 0.25% Shareholder 0.50 1.00
Service Fee for Class B shares) % %
Other expenses 0.47%[ 0.47%[
D] A]
Total operating expenses 1.64 2.14
% %
EQUITY INCOME Management fee 0.50 0.50
% %
12b-1 fee (including 0.25% Shareholder 0.50 1.00
Service Fee for Class B shares) % %
Other expenses 0.49%[ 0.49%[
C] A]
Total operating expenses 1.49 1.99
% %
INCOME & GROWTH Management fee 0.52 *
%
12b-1 fee (Distribution fee) 0.50 *
%
Other expenses 0.41%[ *
C]
Total fund operating expenses 1.43 *
%
</TABLE>
* FUND DOES NOT OFFER CLASS B SHARES.
[A] PROJECTION BASED ON ESTIMATED EXPENSES.
[B] EFFECTIVE AUGUST 1, 1994, FMR VOLUNTARILY AGREED TO IMPLEMENT AN 0.03%
MANAGEMENT FEE REDUCTION FOR EQUITY GROWTH. IF THIS AGREEMENT WERE NOT IN
EFFECT, THE MANAGEMENT FEE WOULD HAVE BEEN 0.65%.
[C] A PORTION OF THE BROKERAGE COMMISSIONS THAT THE FUNDS PAID WAS USED TO
REDUCE OTHER EXPENSES. WITHOUT THIS REDUCTION, OTHER EXPENSES FOR CLASS A
WOULD HAVE BEEN 0.42% (EQUITY GROWTH); 0.68% (GLOBAL RESOURCES); 0.29%
(GROWTH OPPORTUNITIES); 0.52% (EQUITY INCOME); AND 0.42% (INCOME & GROWTH).
[D] INCLUDES THE EFFECT OF ANNUALIZING FEES VOLUNTARILY REIMBURSED BY FMR.
(PAGE 2 OF 9)
...TAXABLE INCOME
Operating Expenses Class A Class B
<TABLE>
<CAPTION>
<S> <C> <C> <C>
EMERGING MARKETS INCOME Management fee 0.70 0.70
% %
12b-1 fee (including 0.25% Shareholder 0.90
Service Fee for Class B shares) 0.25 %
%
Other expenses (after reimbursement) 0.55%[ 0.55%[
A] A]
Total operating expenses 1.50 2.15
% %
HIGH YIELD Management fee 0.60 0.60
% %
12b-1 fee (including 0.25% Shareholder 0.25 0.90
Service Fee for Class B shares) % %
Other expenses 0.35 0.50%[
% A]
Total operating expenses 1.20 2.00
% %
STRATEGIC INCOME Management fee 0.61 0.61
% %
12b-1 fee (including 0.25% Shareholder 0.25 0.90
Service Fee for Class B shares) % %
Other expenses (after reimbursement) 0.49%[ 0.49%[
A] A]
Total operating expenses 1.35 2.00
% %
GOVERNMENT INVESTMENT Management fee 0.46 0.46
% %
12b-1 fee (including 0.25% Shareholder 0.25 0.90
Service Fee for Class B shares) % %
Other expenses (after reimbursement) 0.29 0.29%[
% A]
Total operating expenses 1.00 1.65
% %
INTERMEDIATE BOND Management fee 0.46 0.46
% %
12b-1 fee (including 0.25% Shareholder 0.25 0.90
Service Fee for Class B shares) % %
Other expenses (after reimbursement) 0.29 0.29%[
% A]
Total operating expenses 1.00 1.65
% %
SHORT FIXED-INCOME Management fee 0.46 *
%
12b-1 fee (Distribution fee) 0.15 *
%
Other expenses 0.36 *
%
Total operating expenses 0.97 *
%
</TABLE>
...MUNICIPAL
Operating Expenses Class A Class B
<TABLE>
<CAPTION>
<S> <C> <C> <C>
HIGH INCOME MUNICIPAL Management fee 0.41 0.41
% %
12b-1 fee (including 0.25% Shareholder 0.25 0.90
Service Fee for Class B shares) % %
Other expenses (after reimbursement- 0.23 0.34%
Class B) % [A]
Total operating expenses 0.89 1.65
% %
INTERMEDIATE MUNICIPAL INCOME Management fee 0.41 0.41
% %
12b-1 fee (including 0.25% Shareholder 0.25 0.90
Service Fee for Class B shares) % %
Other expenses (after reimbursement) 0.34 0.34%[
% A]
Total operating expenses 1.00 1.65
% %
SHORT-INTERMEDIATE MUNICIPAL INCOME Management fee 0.41 *
%
12b-1 fee (Distribution fee) 0.15 *
%
Other expenses (after reimbursement) 0.34 *
%
Total operating expenses 0.90 *
%
</TABLE>
* FUND DOES NOT OFFER CLASS B SHARES.
[A] PROJECTION BASED ON ESTIMATED EXPENSES.
(PAGE 3 OF 9)
EXPENSE TABLE EXAMPLE: You would pay the following expenses, including the
maximum front-end sales charge or CDSC, as applicable, on a $1,000
investment, assuming a 5% annual return and either (1) full redemption or
(2) no redemption, at the end of each time period:
...EQUITY FUNDS
Examples
Class A Class B Class B
(1) (1) (2)
OVERSEAS After 1 year $54 $64[A] $24
After 3 $95 $103[A] $73
years
After 5 $138 $135[A] $125
years
After 10 $257 $250 $250
years[B]
EQUITY GROWTH After 1 year $50 * *
After 3 $82 * *
years
After 5 $115 * *
years
After 10 $211 * *
years
GLOBAL RESOURCES After 1 year $54 $63[A] $23
After 3 $93 $102[A] $72
years
After 5 $135 $133[A] $123
years
After 10 $251 $245 $245
years[B]
GROWTH OPPORTUNITIES After 1 year $49 * *
After 3 $80 * *
years
After 5 $112 * *
years
After 10 $205 * *
years
STRATEGIC OPPORTUNITIES After 1 year $51 $62[A] $22
After 3 $85 $97[A] $67
years
After 5 $121 $125[A] $115
years
After 10 $223 $223 $223
years[B]
EQUITY INCOME After 1 year $50 $60[A] $20
After 3 $80 $92[A] $62
years
After 5 $113 $117[A] $107
years
After 10 $207 $207 $207
years[B]
INCOME & GROWTH After 1 year $49 * *
After 3 $79 * *
years
After 5 $110 * *
years
After 10 $200 * *
years
* FUND DOES NOT OFFER CLASS B SHARES.
[A] REFLECTS DEDUCTION OF APPLICABLE CDSC.
[B] REFLECTS CONVERSION TO CLASS A SHARES AFTER SIX YEARS.
(PAGE 4 OF 9)
...TAXABLE INCOME
Examples
Class A Class B Class B
(1) (1) (2)
EMERGING MARKETS INCOME After 1 year $50 $62[A] $22
After 3 $81 $97[A] $67
years
After 5 $114 $125[A] $115
years
After 10 $208 $217 $217
years[B]
HIGH YIELD After 1 year $47 $60[A] $20
After 3 $72 $93[A] $63
years
After 5 $99 $118[A] $108
years
After 10 $175 $193 $193
years[B]
STRATEGIC INCOME After 1 year $48 $60[A] $20
After 3 $76 $93[A] $63
years
After 5 $106 $118[A] $108
years
After 10 $192 $201 $201
years[B]
GOVERNMENT INVESTMENT After 1 year $45 $57[A] $17
After 3 $66 $82[A] $52
years
After 5 $88 $100[A] $90
years
After 10 $153 $162 $162
years[B]
INTERMEDIATE BOND After 1 year $37 $47[A] $17
After 3 $58 $62[A] $52
years
After 5 $81 $82 $82
years[C]
After 10 $147 $148 $148
years[C]
SHORT FIXED-INCOME After 1 year $25 * *
After 3 $45 * *
years
After 5 $68 * *
years
After 10 $132 * *
years
* FUND DOES NOT OFFER CLASS B SHARES.
[A] REFLECTS DEDUCTION OF APPLICABLE CDSC.
[B] REFLECTS CONVERSION TO CLASS A SHARES AFTER SIX YEARS.
[C] REFLECTS CONVERSION TO CLASS A SHARES AFTER FOUR YEARS.
(PAGE 5 OF 9)
...MUNICIPAL
Examples
Class A Class B Class B
(1) (1) (2)
HIGH INCOME MUNICIPAL After 1 year $44 $57[A] $17
After 3 $62 $82[A] $52
years
After 5 $83 $100[A] $90
years
After 10 $141 $157 $157
years[B]
INTERMEDIATE MUNICIPAL INCOME After 1 year $37 $47[A] $17
After 3 $58 $62[A] $52
years
After 5 $81 $82 $82
years[C]
After 10 $147 $148 $148
years[C]
SHORT-INTERMEDIATE MUNICIPAL INCOME After 1 year $24 * *
After 3 $43 * *
years
After 5 $64 * *
years
After 10 $124 * *
years
* FUND DOES NOT OFFER CLASS B SHARES.
[A] REFLECTS DEDUCTION OF APPLICABLE CDSC.
[B] REFLECTS CONVERSION TO CLASS A SHARES AFTER SIX YEARS.
[C] REFLECTS CONVERSION TO CLASS A SHARES AFTER FOUR YEARS.
THESE EXAMPLES ILLUSTRATE THE EFFECT OF EXPENSES, BUT ARE NOT MEANT TO
SUGGEST ACTUAL OR EXPECTED COSTS OR RETURNS, ALL OF WHICH MAY VARY.
FMR has voluntarily agreed to reimburse Class A and Class B of certain
funds to the extent that total operating expenses as a percentage of their
respective average net assets exceed the following rates:
Class Effectiv Class B Effectiv
A e e
Date Date
Overseas 2.25% 1/1/96 2.75% 10/30/95
Global Resources 2.25% 1/1/96 2.75% 10/30/95
Income & Growth 1.75% 1/1/96 * *
Emerging Markets Income 1.50% 3/10/94 2.15% 1/1/96
High Yield 1.35% 7/1/95 2.00% 1/1/96
Strategic Income 1.35% 10/31/94 2.00% 1/1/96
Government Investment 1.00% 7/1/95 1.65% 1/1/96
Intermediate Bond 1.00% 7/1/95 1.65% 1/1/96
Short Fixed-Income 1.00% 7/1/95 * *
High Income Municipal 1.00% 7/1/95 1.65% 1/1/96
Intermediate Municipal Income 1.00% 7/1/95 1.65% 1/1/96
Short-Intermediate Municipal Income 0.90% 7/1/95 * *
* FUND DOES NOT OFFER CLASS B SHARES.
If these agreements were not in effect, other expenses as a percentage of
average net assets would have been the following amounts:
(PAGE 6 OF 9)
Other Expenses
Class Class B
A
Emerging Markets Income [A] 1.20% 0.90%
High Yield [A] n/a 0.60%
Strategic Income [A] 1.64% 0.89%
Government Investment 0.76% 1.16%[
A]
Intermediate Bond 0.43% 1.00%[
A]
High Income Municipal[A] n/a 0.68%
Intermediate Municipal Income 0.38% 0.95%[
A]
Short-Intermediate Municipal Income [A] 0.98% n/a
[A] ANNUALIZED.
Interest, taxes, brokerage commissions, or extraordinary expenses are not
included in these expense limitations.
THE FOLLOWING INFORMATION UPDATES THE DISCUSSION OF PORTFOLIO MANAGERS IN
THE "FMR AND ITS AFFILIATES" SECTION, ON PAGES 20 AND 21.
John H. Carlson is lead manager of Advisor Strategic Income, which he has
managed since August 1995, and is manager of the fund's emerging market
investments. Effective January 1, 1996, Margaret Eagle is manager of the
fund's high yield investments, Kevin Grant is manager of the fund's
domestic investment grade and U.S. Government investments, and Jonathan
Kelly is manager of the fund's foreign bond investments in developed
markets.
Kevin Grant is vice president and manager of Advisor Intermediate Bond,
which he has managed since October 1995, and is manager of Advisor
Strategic Income's domestic investment grade and U.S. Government
investments effective January 1, 1996. He also manages Spartan Ginnie Mae,
Ginnie Mae, and Mortgage Securities. Previously, he was vice president and
chief strategist for mortgage-backed securities at Morgan Stanley and an
investment director at Aetna Bond Investors. Mr. Grant joined Fidelity in
1993.
Jonathan Kelly is manager of Advisor Strategic Income's foreign bond
investments in developed markets effective January 1, 1996. He also
manages Global Bond. Previously, he managed Advisor Emerging Markets
Income and New Markets Income. Mr. Kelly joined Fidelity in 1991, after
receiving his M.B.A. from the Wharton School at the University of
Pennsylvania. Mr. Kelly worked in the money management field prior to
business school.
Norman Lind is vice president and manager of Advisor Short-Intermediate
Municipal Income, which he has managed since October 1995. He also manages
Advisor New York Municipal Income, New York Tax-Free Insured, New York
Tax-Free High Yield, Spartan New York Municipal High Yield, Spartan
Intermediate Municipal, Spartan Short-Intermediate Municipal, and Spartan
New York Intermediate Municipal. Previously, he served as the leader of the
municipal bond research group. Mr. Lind joined Fidelity in 1986.
Tanya M. Roy is manager of Advisor High Income Municipal, which she has
managed since August 1995. She also manages Aggressive Tax-Free and Spartan
Aggressive Municipal. Previously, she managed Municipal Bond and was a
municipal bond analyst. Ms. Roy joined Fidelity in 1989.
PLEASE NOTE: THE NEXT SEVEN CHANGES TO THE PROSPECTUS UPDATE INFORMATION
IN THE "INVESTMENT PRINCIPLES AND RISKS" SECTION, BEGINNING ON PAGE 22.
THE FOLLOWING INFORMATION REPLACES THE FIFTH PARAGRAPH OF THE "INVESTMENT
PRINCIPLES AND RISKS" SECTION.
If you are subject to the federal alternative minimum tax, you should note
that each of High Income Municipal, Intermediate Municipal Income, and
Short-Intermediate Municipal Income may invest up to 100% of its assets in
municipal securities issued to finance private activities. The interest
from these investments is a tax-preference item for purposes of the tax.
THE FOLLOWING INFORMATION REPLACES THE THIRD PARAGRAPH UNDER THE HEADING
"LIMITED TERM BOND FUND."
Although Intermediate Bond can invest in securities of any maturity, the
fund maintains a dollar-weighted average maturity of between three and ten
years under normal conditions. In determining a security's maturity for
purposes of calculating the fund's average maturity, an estimate of the
average time for its principal to be paid may be used. This can be
substantially shorter than its stated final maturity.
THE FOLLOWING INFORMATION REPLACES THE LAST SENTENCE OF THE THIRD PARAGRAPH
UNDER THE HEADING "HIGH INCOME MUNICIPAL FUND."
Although the fund can invest in securities of any maturity, FMR seeks to
manage the fund so that it generally reacts to changes in interest rates
similarly to municipal bonds of comparable quality with maturities between
15 and 20 years.
THE FOLLOWING INFORMATION REPLACES THE LAST SENTENCE OF THE SECOND
PARAGRAPH UNDER THE HEADING "LIMITED TERM TAX-EXEMPT FUND."
Intermediate Municipal Income may, under normal conditions, invest up to
100% of its assets in municipal securities subject to the federal
alternative minimum tax.
THE FOLLOWING INFORMATION REPLACES THE THIRD PARAGRAPH UNDER THE HEADING
"LIMITED TERM TAX-EXEMPT FUND."
Although the fund can invest in securities of any maturity, the fund
maintains a dollar-weighted average maturity of between three and ten years
under normal conditions. FMR seeks to manage the fund so that it generally
reacts to changes in interest rates similarly to municipal bonds with
maturities between seven and ten years.
THE FOLLOWING INFORMATION REPLACES THE THIRD SENTENCE OF THE SECOND
PARAGRAPH UNDER THE HEADING "SHORT-INTERMEDIATE TAX-EXEMPT FUND."
Short-Intermediate Municipal Income may, under normal conditions, invest up
to 100% of its assets in municipal securities subject to the federal
alternative minimum tax.
THE FOLLOWING INFORMATION REPLACES THE THIRD PARAGRAPH UNDER THE HEADING
"SHORT-INTERMEDIATE TAX-EXEMPT FUND."
Although Short-Intermediate Municipal Income can invest in securities of
any maturity, the fund maintains a dollar-weighted average maturity of
between two and five years under normal conditions.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION UNDER THE HEADING
"OTHER EXPENSES" IN THE "BREAKDOWN OF EXPENSES" SECTION, BEGINNING ON PAGE
30.
PLEASE NOTE: CERTAIN OF THE FUNDS' 12B-1 FEES HAVE BEEN REDUCED. THE 12B-1
FEES FOR CLASS A OF THE EQUITY FUNDS HAVE BEEN REDUCED FROM 0.65% TO 0.50%;
THE 12B-1 DISTRIBUTION FEES FOR CLASS B OF THE BOND FUNDS AND THE
INTERMEDIATE-TERM BOND FUNDS HAVE BEEN REDUCED FROM 0.75% TO 0.65%; AND
PAYMENTS MADE BY FMR TO FDC TO REIMBURSE FDC FOR PAYMENTS MADE TO THIRD
PARTIES HAVE BEEN AUTHORIZED BY THE BOARD OF TRUSTEES.
OTHER EXPENSES - CONTINUED
Class A of each of the Equity Funds currently pays FDC monthly at an annual
rate of 0.50% of its average net assets throughout the month; Class A of
each of the Bond Funds and the Intermediate-Term Bond Funds currently pays
FDC monthly at an annual rate of 0.25% of its average net assets throughout
the month; and Class A of each of the Short-Term Bond Funds currently pays
FDC monthly at an annual rate of 0.15% of its average net assets throughout
the month. Class A distribution fee rates may be increased only when the
Trustees believe that it is in the best interests of Class A shareholders
to do so.
(PAGE 7 OF 9)
Up to the full amount of the Class A distribution fee may be reallowed to
Investment Professionals based upon the level of marketing and distribution
services provided.
Class B shares of each fund have also adopted a DISTRIBUTION AND SERVICE
PLAN. Under the Class B Plans, Class B of each fund is authorized to pay
FDC a monthly distribution fee as compensation for its services and
expenses in connection with the distribution of Class B shares. Class B of
each fund may pay FDC a distribution fee at an annual rate of up to 0.75%
of its average net assets throughout the month, or such lesser amount as
the Trustees may determine from time to time.
Class B of each of Overseas, Global Resources, Strategic Opportunities,
and Equity Income currently pays FDC monthly at an annual rate of 0.75% of
its average net assets throughout the month. Class B of each of the Bond
Funds and the Intermediate-Term Bond Funds currently pays FDC monthly at an
annual rate of 0.65% of its average net assets throughout the month. Class
B distribution fee rates for each of the Bond Funds and Intermediate-Term
Bond Funds may be increased only when the Trustees believe that it is in
the best interests of the Class B shareholders to do so.
In addition, pursuant to each Class B Plan, Investment Professionals are
compensated at an annual rate of 0.25% of average net assets of that fund's
Class B for providing personal service to and/or maintenance of Class B
shareholder accounts.
The Plans also specifically recognize that FMR may make payments from its
management fee revenue, past profits, or other resources to reimburse FDC
for payments made to Investment Professionals for their services to each
class's shareholders and costs associated with promoting the funds. The
Board of Trustees of each fund has authorized such payments.
THE FOLLOWING INFORMATION SUPPLEMENTS DISCUSSIONS OF INVESTING THROUGH AN
INVESTMENT PROFESSIONAL IN THE "TYPES OF ACCOUNTS" SECTION, BEGINNING ON
PAGE 34.
Your Investment Professional (including broker-dealers) may charge you a
transaction fee with respect to the purchase and sale of fund shares.
THE FOLLOWING INFORMATION REPLACES THE SENTENCE BELOW THE "MINIMUM
INVESTMENTS" TABLE IN THE "HOW TO BUY SHARES" SECTION, ON PAGE 35.
Purchase amounts of more than $100,000 will not be accepted for Class B
shares.
THE FOLLOWING INFORMATION REPLACES THE SEVENTH PARAGRAPH UNDER THE HEADING
"TAXES ON DISTRIBUTIONS" IN THE "DIVIDENDS, CAPITAL GAINS, AND TAXES"
SECTION, BEGINNING ON PAGE 40.
The interest from some municipal securities is subject to the federal
alternative minimum tax. Each of High Income Municipal, Intermediate
Municipal Income, and Short-Intermediate Municipal Income may invest up to
100% of its assets in these securities. Individuals who are subject to the
tax must report this interest on their tax returns.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION IN THE "TRANSACTION
DETAILS" SECTION, BEGINNING ON PAGE 41.
TRANSACTION DETAILS - CONTINUED
THE OFFERING PRICE (price to buy one share) is the applicable class's NAV,
plus a sales charge for Class A shares. Class A has a maximum sales charge
of 3.50% of the offering price for the Equity Funds; 3.50% of the offering
price for the Bond Funds; 2.75% of the offering price for the
Intermediate-Term Bond Funds; and 1.50% of the offering price for the
Short-Term Bond Funds. The REDEMPTION PRICE (price to sell one share) is
the applicable class's NAV, minus any applicable CDSC for Class B shares.
(PAGE 8 OF 9)
SALES CHARGES AND INVESTMENT PROFESSIONAL
CONCESSIONS - CLASS A
EQUITY FUNDS: Sales Charge as % of: Investment
Profession
al
Concession
as % of
Offering
Price
Offering Net
Price Amount
Invested
Up to $49,999 3.50% 3.63% 3.00%
$50,000 to $99,999 3.00% 3.09% 2.50%
$100,000 to $249,999 2.50% 2.56% 2.00%
$250,000 to $499,999 1.50% 1.52% 1.25%
$500,000 to $999,999 1.00% 1.01% 0.75%
$1,000,000 or more None None See
Below[A]
BOND FUNDS: Sales Charge as % of: Investment
Profession
al
Concession
as % of
Offering
Price
Offering Net
Price Amount
Invested
Up to $49,999 3.50% 3.63% 3.00%
$50,000 to $99,999 3.00% 3.09% 2.50%
$100,000 to $249,999 2.50% 2.56% 2.00%
$250,000 to $499,999 1.50% 1.52% 1.25%
$500,000 to $999,999 1.00% 1.01% 0.75%
$1,000,000 or more None None See
Below[A]
<TABLE>
<CAPTION>
<S> <C>
INTERMEDIATE-TERM BOND FUNDS: Sales Charge as % of: Investment
Profession
al
Concession
as % of
Offering
Price
Offering Net
Price Amount
Invested
Up to $49,999 2.75% 2.83% 2.25%
$50,000 to $99,999 2.25% 2.30% 2.00%
$100,000 to $249,999 1.75% 1.78% 1.50%
$250,000 to $499,999 1.50% 1.52% 1.25%
$500,000 to $999,999 1.00% 1.01% 0.75%
$1,000,000 or more None None See
Below[A]
</TABLE>
SHORT-TERM BOND FUNDS: Sales Charge as % of: Investment
Profession
al
Concession
as % of
Offering
Price
Offering Net
Price Amount
Invested
Up to $499,999 1.50% 1.52% 1.25%
$500,000 to $999,999 1.00% 1.01% 0.75%
$1,000,000 or more None None See
Below[A]
[A] INVESTMENT PROFESSIONALS WILL BE COMPENSATED WITH A FEE OF 0.25% FOR
PURCHASES OF $1 MILLION OR MORE IF THE ASSETS ON WHICH THE 0.25% IS PAID
REMAIN WITHIN THE FIDELITY ADVISOR FUNDS OR CERTAIN MONEY MARKET FUNDS (AS
DEFINED BELOW) FOR AT LEAST ONE YEAR. PURCHASES THROUGH A BANK OR
BANK-AFFILIATED BROKER-DEALER THAT QUALIFY FOR A SALES CHARGE WAIVER
DESCRIBED BEGINNING ON PAGE 44 ARE NOT ELIGIBLE FOR THIS FEE. ALL ASSETS ON
WHICH THE 0.25% FEE IS PAID MUST REMAIN IN CLASS A SHARES OF THE FIDELITY
ADVISOR FUNDS, INITIAL CLASS SHARES OF DAILY MONEY FUND: U.S. TREASURY
PORTFOLIO OR DAILY MONEY FUND: MONEY MARKET PORTFOLIO, OR SHARES OF DAILY
TAX-EXEMPT MONEY FUND FOR A PERIOD OF AT LEAST ONE UNINTERRUPTED YEAR, OR
THE INVESTMENT PROFESSIONAL WILL BE REQUIRED TO REFUND THIS FEE TO FDC.
SHARES HELD BY AN INSURANCE COMPANY SEPARATE ACCOUNT WILL BE AGGREGATED AT
THE CLIENT (E.G., THE CONTRACT HOLDER OR PLAN SPONSOR) LEVEL, NOT AT THE
SEPARATE ACCOUNT LEVEL. UPON REQUEST, ANYONE CLAIMING ELIGIBILITY FOR THE
0.25% FEE WITH RESPECT TO SHARES HELD BY AN INSURANCE COMPANY SEPARATE
ACCOUNT MUST PROVIDE FDC ACCESS TO RECORDS DETAILING PURCHASES AT THE
CLIENT LEVEL.
CONTINGENT DEFERRED SALES CHARGE. Class B shares may, upon redemption, be
assessed a CDSC based on the following schedules:
EQUITY FUNDS THAT OFFER CLASS B SHARES:
From Date of Purchase Contingent
Deferred
Sales Charge
Less than 1 year 4%
1 year to less than 2 years 3%
2 years to less than 3 years 3%
3 years to less than 4 years 2%
4 years to less than 5 years 1%
5 years to less than 6 years [A] 0%
BOND FUNDS:
From Date of Purchase Contingent
Deferred
Sales Charge
Less than 1 year 4%
1 year to less than 2 years 3%
2 years to less than 3 years 3%
3 years to less than 4 years 2%
4 years to less than 5 years 1%
5 years to less than 6 years [A] 0%
INTERMEDIATE-TERM BOND FUNDS:
From Date of Purchase Contingent
Deferred
Sales Charge
Less than 1 year 3%
1 year to less than 2 years 2%
2 years to less than 3 years 1%
3 years to less than 4 years [B] 0%
[A] AFTER A MAXIMUM HOLDING PERIOD OF SIX YEARS, CLASS B SHARES WILL
CONVERT AUTOMATICALLY TO CLASS A SHARES OF THE SAME FIDELITY ADVISOR FUND.
[B] AFTER A MAXIMUM HOLDING PERIOD OF FOUR YEARS, CLASS B SHARES WILL
CONVERT AUTOMATICALLY TO CLASS A SHARES OF THE SAME FIDELITY ADVISOR FUND.
When exchanging Class B shares of one fund for Class B shares of another
Fidelity Advisor fund or Class B shares of Daily Money Fund: U.S. Treasury
Portfolio, your Class B shares retain the CDSC schedule in effect when they
were originally purchased.
Investment Professionals with whom FDC has agreements receive as
compensation from FDC a concession equal to 3.00% (2.00% for the
Intermediate-Term Bond Funds) of your purchase of Class B shares.
CONVERSION FEATURE. After a maximum holding period of six years from the
initial date of purchase (four years for the Intermediate-Term Bond Funds),
Class B shares and any capital appreciation associated with those shares,
convert automatically to Class A shares of the same Fidelity Advisor fund.
Conversion to Class A shares will be made at NAV. At the time of
conversion, a portion of the Class B shares purchased through the
reinvestment of dividends or capital gains (Dividend Shares) will also
convert to Class A shares. The portion of Dividend Shares that will
convert is determined by the ratio of your converting Class B non-Dividend
Shares to your total Class B non-Dividend Shares.
(PAGE 9 OF 9)
THE FOLLOWING INFORMATION REPLACES THE FIRST PARAGRAPH AND THE FOURTH
BULLET, RESPECTIVELY, IN THE "EXCHANGE RESTRICTIONS" SECTION, BEGINNING ON
PAGE 43.
As a shareholder, you have the privilege of exchanging Class A or Class B
shares of a fund for the same class of shares of other Fidelity Advisor
funds at NAV; Class A shares for Initial Class shares of Daily Money Fund:
U.S. Treasury Portfolio or Daily Money Fund: Money Market Portfolio, or
shares of Daily Tax-Exempt Money Fund; and Class B shares for Class B
shares of Daily Money Fund: U.S. Treasury Portfolio.
(small solid bullet) If you have held Class A shares of Short Fixed-Income
or Short-Intermediate Municipal Income for less than six months and you
exchange into Class A of another Advisor fund, you pay the difference
between that fund's Class A front-end sales charge and any Class A
front-end sales charge you may have previously paid in connection with the
shares you are exchanging.
PLEASE NOTE: THE MINIMUM AMOUNT NEEDED TO QUALIFY FOR A QUANTITY DISCOUNT
ON CERTAIN OF THE FUNDS HAS BEEN REDUCED. THE FOLLOWING INFORMATION
REPLACES THE THIRD AND FOURTH PARAGRAPHS OF THE "SALES CHARGE REDUCTIONS
AND WAIVERS" SECTION, BEGINNING ON PAGE 44.
QUANTITY DISCOUNTS apply to purchases of Class A shares of a single
Fidelity Advisor fund or to combined purchases of Class A and Class B
shares of any Fidelity Advisor fund, and to purchases of Initial Class
shares and Class B shares of Daily Money Fund: U.S. Treasury Portfolio,
Initial Class shares of Daily Money Fund: Money Market Portfolio, and
shares of Daily Tax-Exempt Money Fund acquired by exchange from any
Fidelity Advisor fund. The minimum investment eligible for a quantity
discount is $50,000, except that the minimum for the Short-Term Bond Funds
is $500,000.
To qualify for a quantity discount, investing in a fund's Class A shares
for several accounts at the same time will be considered a single
transaction (Combined Purchase), as long as shares are purchased through
one Investment Professional and the total is at least $50,000 (or at least
$500,000 for the Short-Term Bond Funds).
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SUPPLEMENT TO FIDELITY ADVISOR FUNDS CLASS A, CLASS B AND INSTITUTIONAL
CLASS
STATEMENT OF ADDITIONAL INFORMATION
DATED JUNE 30, 1995
EFFECTIVE JANUARY 1, 1996, CERTAIN OF THE FUNDS' NAMES HAVE BEEN CHANGED:
ADVISOR EQUITY PORTFOLIO GROWTH FUND HAS BEEN RENAMED ADVISOR EQUITY GROWTH
FUND, ADVISOR LIMITED TERM BOND FUND HAS BEEN RENAMED ADVISOR INTERMEDIATE
BOND FUND, ADVISOR LIMITED TERM TAX-EXEMPT FUND HAS BEEN RENAMED ADVISOR
INTERMEDIATE MUNICIPAL INCOME FUND, AND ADVISOR SHORT-INTERMEDIATE
TAX-EXEMPT FUND HAS BEEN RENAMED ADVISOR SHORT-INTERMEDIATE MUNICIPAL
INCOME FUND.
EFFECTIVE JANUARY 1, 1996, CERTAIN OF THE FUNDS' FRONT-END SALES CHARGES,
CONTINGENT DEFERRED SALES CHARGES AND 12B-1 FEES HAVE BEEN REDUCED.
CERTAIN OF THE FUNDS' CONTINGENT DEFERRED SALES CHARGE SCHEDULES HAVE BEEN
SHORTENED. PAYMENTS MADE BY FMR TO FDC TO REIMBURSE FDC FOR PAYMENTS MADE
TO THIRD PARTIES HAVE BEEN AUTHORIZED BY THE BOARD OF TRUSTEES.
THE FOLLOWING INFORMATION SUPPLEMENTS INFORMATION IN THE "PERFORMANCE"
SECTION, BEGINNING ON PAGE 44.
All historical load adjusted performance figures do not reflect applicable
sales load and 12b-1 fee reductions for certain classes of shares and would
have been higher if these reductions had been reflected in these
performance figures. Class A shares have a maximum front-end sales charge
of 3.50% for Overseas, Equity Growth, Global Resources, Growth
Opportunities, Strategic Opportunities, Equity Income, and Income & Growth
(the Equity Funds); 3.50% for Emerging Markets Income, High Yield,
Strategic Income, Government Investment, and High Income Municipal (the
Bond Funds); 2.75% for Intermediate Bond and Intermediate Municipal Income
(the Intermediate-Term Bond Funds); and 1.50% for Short Fixed-Income and
Short-Intermediate Municipal Income (the Short-Term Bond Funds). Class B
shares have a contingent deferred sales charge (CDSC) upon redemption:
maximum CDSC is 4.00% for all funds except the Intermediate-Term Bond Funds
which have a maximum CDSC of 3.00%. See below for information on 12b-1
fees.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND IN THE
"ADDITIONAL PURCHASE, EXCHANGE, AND REDEMPTION INFORMATION" SECTION,
BEGINNING ON PAGE 66.
CLASS A SHARES ONLY
Pursuant to Rule 22d-1 under the 1940 Act, FDC exercises its right to waive
Class A's maximum 3.50% (the Equity Funds and the Bond Funds); 2.75% (the
Intermediate-Term Bond Funds); or 1.50% (the Short-Term Bond Funds)
front-end sales charge in connection with the fund's merger with or
acquisition of any investment company or trust. In addition, FDC has
chosen to waive Class A's front-end sales charge in certain instances
because of efficiencies involved in those sales of shares.
CLASS A AND CLASS B SHARES ONLY
LETTER OF INTENT. You may obtain Class A shares at the same reduced
front-end sales charge by filing a non-binding Letter of Intent (the
Letter) within 90 days of the start of Class A purchases. Each Class A
investment you make after signing the Letter will be entitled to the
front-end sales charge applicable to the total investment indicated in the
Letter. For example, a $2,500 purchase of Class A shares toward a $50,000
Letter would receive the same reduced sales charge as if the $50,000
($500,000 for the Short-Term Bond Funds) had been invested at one time. To
ensure that you receive a reduced front-end sales charge on future
purchases, you or your Investment Professional must inform the transfer
agent that the Letter is in effect each time Class A shares are purchased.
Reinvested income and capital gain distributions do not count toward the
completion of the Letter.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND IN THE
"DISTRIBUTION AND SERVICE PLANS" SECTION, BEGINNING ON PAGE 83.
Pursuant to the Class A Plans, FDC is paid a distribution fee as a
percentage of Class A's average net assets at an annual rate of up to 0.75%
for Equity Growth and Equity Income; up to 0.65% for each of Overseas,
Growth Opportunities, Global Resources, Strategic Opportunities, and Income
& Growth; up to 0.40% for Emerging Markets Income, High Yield, Strategic
Income, Intermediate Bond, Government Investment, High Income Municipal,
Intermediate Municipal Income, and Short-Intermediate Municipal Income; and
up to 0.15% for Short Fixed-Income. Pursuant to the Class B Plans, FDC is
paid a distribution fee as a percentage of Class B's average net assets at
an annual rate of up to 0.75% for each fund with Class B shares. For the
purpose of calculating the distribution fees, average net assets are
determined as of the close of business in each day throughout the month,
but excluding assets attributable to Class A shares of Equity Growth,
Equity Income, Emerging Markets Income, Strategic Opportunities and
Overseas purchased more than 144 months prior to such day. Currently, the
Trustees have approved a distribution fee for Class A at an annual rate of
0.50% for the Equity Funds; 0.25% for the Bond Funds and the
Intermediate-Term Bond Funds; and 0.15% for the Short-Term Bond Funds.
Currently, the Trustees have approved a distribution fee for Class B at an
annual rate of 0.75% for Overseas, Global Resources, Strategic
Opportunities and Equity Income; and 0.65% for the Bond Funds and
Intermediate-Term Bond Funds. These fees may be increased only when, in
the opinion of the Trustees, it is in the best interests of the
shareholders of the applicable class to do so. Class B of each fund also
pays Investment Professionals a service fee at an annual rate of 0.25% of
its average daily net assets determined at the close of business on each
day throughout the month for personal service and/or the maintenance of
shareholder accounts.
Under each Plan, if the payment of management fees by the funds to FMR is
deemed to be indirect financing by the funds of the distribution of their
shares, such payment is authorized by the Plans. Each Plan specifically
recognizes that FMR may use its management fee revenue, as well as its past
profits or its resources from any other source, to reimburse FDC for
expenses incurred in connection with the distribution of the applicable
class, including payments made to third parties that assist in selling
shares of the applicable class of each fund or to third parties, including
banks, that render shareholder support services. The Trustees have
authorized such payments for all classes of the funds.
No third party payments were made by FMR in fiscal 1994, 1993, and 1992
under the Institutional Class Plans.
PAGE 2 of 2
ACOM-ptb-1295 (PAGE 2 OF 2) December 15, 1995
