FIDELITY ADVISOR SERIES VI, N-30D, 1996-07-19

FIDELITY ADVISOR SERIES VI
N-30D, 1996-07-19

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(2_FIDELITY_LOGOS)FIDELITY ADVISOR
(registered trademark)

INTERMEDIATE MUNICIPAL INCOME FUND - CLASS A AND CLASS B
(FORMERLY FIDELITY ADVISOR LIMITED TERM
TAX-EXEMPT FUND - CLASS A AND CLASS B)
SEMIANNUAL REPORT
MAY 31, 1996
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 22 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.

NOTES 28 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,
FEDERAL RESERVE BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO
INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT INVESTED.
NEITHER THE FUND NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK.
FOR MORE INFORMATION ON ANY FIDELITY 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 stocks have managed to post solid returns through the first five
months of 1996, signs of strength in the economy have led to inflation
fears, causing some uncertainty in bond markets so far this year. In 1995,
both stock and bond markets posted strong results, while the year before,
stocks posted below-average returns and bonds had one of the worst years in
history.
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 INTERMEDIATE MUNICIPAL INCOME FUND - CLASS A
PERFORMANCE: THE BOTTOM LINE

Advisor Intermediate Municipal Income - -0.31% 4.06% 32.22% 86.43%
Class A

Advisor Intermediate Municipal Income - -3.05% 1.20% 28.58% 81.31%
Class A (incl. max. 2.75% sales
charge)

Lehman Brothers 1-17 Year Municipal -0.10% 4.73% n/a n/a
Bond Index

Intermediate Municipal Debt Funds -0.20% 3.86% 36.17% 96.51%
Average

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 10
years. For example, if you had invested $1,000 in a fund that had a 5%
return over the past year, the value of your investment would be $1,050.
You can compare Class A's returns to those of the Lehman Brothers 1-17 Year
Municipal Bond Index, which includes investment-grade municipal bonds with
maturities between one and 17 years. To measure how Class A's performance
stacked up against its peers, you can compare it to the intermediate
municipal debt funds average, which reflects the performance of 139
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.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED MAY 31, 1996 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS

Advisor Intermediate Municipal Income - 4.06% 5.74% 6.43%
Class A

Advisor Intermediate Municipal Income - 1.20% 5.16% 6.13%
Class A (incl. max. 2.75% sales charge)

Lehman Brothers 1-17 Year Municipal 4.73% n/a n/a
Bond Index

Intermediate Municipal Debt Funds Average 3.86% 6.36% 6.97%

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 10 YEARS
IMAHDR PRASUN SHR__CHT 19960531 19960617 125953 S00000000000001
FA Int Muni Inc -CL A LB Municipal Bond
00289 LB015
1986/05/31 9725.00 10000.00
1986/06/30 9822.97 10095.40
1986/07/31 9847.96 10156.68
1986/08/31 10173.00 10611.39
1986/09/30 10215.86 10638.03
1986/10/31 10428.33 10821.75
1986/11/30 10516.31 11036.13
1986/12/31 10481.01 11005.67
1987/01/31 10668.12 11337.05
1987/02/28 10787.93 11392.82
1987/03/31 10731.56 11272.06
1987/04/30 10293.13 10706.43
1987/05/31 10286.72 10653.33
1987/06/30 10478.81 10966.11
1987/07/31 10601.72 11077.96
1987/08/31 10624.52 11102.89
1987/09/30 10285.50 10693.52
1987/10/31 10380.96 10731.38
1987/11/30 10618.80 11011.57
1987/12/31 10724.82 11171.35
1988/01/31 11109.42 11569.28
1988/02/29 11154.73 11691.56
1988/03/31 10991.65 11555.36
1988/04/30 11046.90 11643.18
1988/05/31 11081.86 11609.53
1988/06/30 11159.76 11779.38
1988/07/31 11217.82 11856.18
1988/08/31 11223.19 11866.61
1988/09/30 11346.34 12081.40
1988/10/31 11481.32 12294.63
1988/11/30 11443.96 12182.01
1988/12/31 11516.18 12306.64
1989/01/31 11632.73 12561.14
1989/02/28 11563.25 12417.81
1989/03/31 11526.58 12388.14
1989/04/30 11689.49 12682.23
1989/05/31 11864.05 12945.64
1989/06/30 11994.27 13121.44
1989/07/31 12113.96 13300.03
1989/08/31 12074.72 13169.82
1989/09/30 12072.33 13130.57
1989/10/31 12169.14 13291.16
1989/11/30 12302.29 13523.75
1989/12/31 12413.18 13634.38
1990/01/31 12372.69 13569.89
1990/02/28 12482.56 13691.34
1990/03/31 12503.82 13695.45
1990/04/30 12375.24 13596.29
1990/05/31 12600.87 13893.10
1990/06/30 12705.20 14015.22
1990/07/31 12858.52 14221.94
1990/08/31 12783.76 14015.44
1990/09/30 12818.00 14023.43
1990/10/31 12961.34 14277.81
1990/11/30 13168.14 14564.94
1990/12/31 13203.68 14628.30
1991/01/31 13351.12 14824.61
1991/02/28 13472.67 14953.58
1991/03/31 13481.72 14958.97
1991/04/30 13603.94 15158.67
1991/05/31 13712.92 15293.43
1991/06/30 13721.25 15278.29
1991/07/31 13858.69 15464.38
1991/08/31 13969.43 15668.04
1991/09/30 14055.04 15872.04
1991/10/31 14205.98 16014.89
1991/11/30 14241.78 16059.57
1991/12/31 14477.12 16404.21
1992/01/31 14578.25 16441.61
1992/02/29 14594.97 16446.87
1992/03/31 14539.17 16452.96
1992/04/30 14640.86 16599.39
1992/05/31 14801.44 16794.77
1992/06/30 14995.70 17076.58
1992/07/31 15318.65 17588.54
1992/08/31 15205.39 17417.05
1992/09/30 15346.72 17530.96
1992/10/31 15237.53 17358.63
1992/11/30 15515.95 17669.52
1992/12/31 15534.69 17849.93
1993/01/31 15711.33 18057.52
1993/02/28 16147.54 18710.66
1993/03/31 15987.37 18512.89
1993/04/30 16099.81 18699.68
1993/05/31 16167.57 18804.78
1993/06/30 16337.98 19118.63
1993/07/31 16356.54 19143.67
1993/08/31 16657.48 19542.25
1993/09/30 16829.81 19764.83
1993/10/31 16845.60 19802.98
1993/11/30 16714.29 19628.51
1993/12/31 16999.87 20042.87
1994/01/31 17157.60 20271.76
1994/02/28 16729.18 19746.72
1994/03/31 16075.56 18942.64
1994/04/30 16217.85 19103.27
1994/05/31 16363.01 19268.89
1994/06/30 16245.41 19151.16
1994/07/31 16471.76 19502.20
1994/08/31 16534.04 19569.68
1994/09/30 16348.86 19282.40
1994/10/31 16100.27 18939.94
1994/11/30 15748.45 18597.51
1994/12/31 16033.52 19006.84
1995/01/31 16437.00 19550.05
1995/02/28 16854.09 20118.57
1995/03/31 17038.45 20349.73
1995/04/30 17033.56 20373.75
1995/05/31 17422.59 21023.87
1995/06/30 17328.99 20839.91
1995/07/31 17441.79 21037.47
1995/08/31 17677.55 21304.23
1995/09/30 17790.48 21439.09
1995/10/31 17980.23 21750.81
1995/11/30 18187.42 22111.66
1995/12/31 18309.65 22324.15
1996/01/31 18431.81 22492.70
1996/02/29 18371.60 22340.87
1996/03/31 18190.80 22055.35
1996/04/30 18132.71 21992.94
1996/05/31 18130.76 21984.14
IMATRL PRASUN SHR__CHT 19960531 19960617 125958 R00000000000123

$10,000 OVER 10 YEARS: Let's say hypothetically that $10,000 was invested
in Fidelity Advisor Intermediate Municipal Income Fund - Class A on May 31,
1986, and the current maximum 2.75% sales charge was paid. As the chart
shows, by May 31, 1996, the value of the investment would have grown to
$18,131 - an 81.31% increase on the initial investment. For comparison,
look at how the Lehman Brothers Municipal Bond Index, which reflects the
performance of the investment-grade municipal bond market, did over the
same period. With dividends reinvested, the same $10,000 investment would
have grown to $21,984 - a 119.84% 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)
The initial offering of Class A shares took place on September 10, 1992.
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, returns prior to September 10, 1992 would have been
lower. If Fidelity had not reimbursed certain class expenses during the
periods shown, the total returns and dividends would have been lower.
TOTAL RETURN COMPONENTS
SIX YEARS ENDED NOVEMBER 30,
MONTHS
ENDED
MAY 31,

1996 1995 1994 1993 1992 1991

Dividend return 2.19% 5.06% 4.18% 5.13% 6.37% 6.65%

Capital appreciation -2.50% 10.43% -9.96% 2.59% 2.59% 1.50%
return

Total return -0.31% 15.49% -5.78% 7.72% 8.96% 8.15%

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, 1996 PAST PAST 6 PAST 1
MONTH MONTHS YEAR

Dividends per share 3.89(cents) 22.93(cents) 44.97(cents)

Annualized dividend rate 4.52% 4.44% 4.39%

30-day annualized yield 4.22% - -

30-day annualized tax-equivalent 6.59% - -
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 $10.14
over the past month, $10.29 over the past six months and $10.24 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 2.75% 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 36% federal
tax bracket but does not reflect payment of the federal alternative minimum
tax, if applicable.
ADVISOR INTERMEDIATE MUNICIPAL INCOME 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. A class' 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.
The initial offering of Class B shares took place on June 30, 1994. Class B
shares bear a .90% 12b-1/shareholder service fee (1.00% prior to January 1,
1996). This fee is reflected in the returns on page 8 for periods after
June 30, 1994. Returns between September 10, 1992 (the date Class A shares
were first offered) 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, returns prior to June 30, 1994 would have been lower.
Effective January 1, 1996, Class B's contingent deferred sales charge is
based on a declining scale that ranges from 3% to 1% on Class B shares
redeemed within three years of purchase. This scale is revised from the
previous scale of 4% to 1% on shares redeemed within five years of
purchase. Class B's contingent deferred sales charges included in the past
6 months, past one year, past five years and past 10 years total return
figures are 3%, 3%, 0% and 0%, respectively. If Fidelity had not reimbursed
certain class expenses during the periods shown, the total returns and
dividends would have been lower.
CUMULATIVE TOTAL RETURNS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
PERIODS ENDED MAY 31, 1996 PAST 6 PAST 1 PAST 5 PAST 10
MONTHS YEAR YEARS YEARS

Advisor Intermediate Municipal Income - -0.73 3.24% 30.14% 83.51%
Class B %

Advisor Intermediate Municipal Income - -3.65 0.25% 30.14% 83.51%
Class B (incl. contingent deferred sales %
charge)

Lehman Brothers 1-17 Year Municipal -0.10 4.73% n/a n/a
Bond Index %

Intermediate Municipal Debt Funds Average -0.20 3.86% 36.17% 96.51%
%
</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 10
years. For example, if you had invested $1,000 in a fund that had a 5%
return over the past year, the value of your investment would be $1,050.
You can compare Class B's return to those of the Lehman Brothers 1-17 Year
Municipal Bond Index, which includes investment-grade municipal bonds with
maturities between one and 17 years. To measure how Class B's performance
stacked up against its peers, you can compare it to the intermediate
municipal debt funds average, which reflects the performance of 139
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.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED MAY 31, 1996 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS

Advisor Intermediate Municipal Income - 3.24% 5.41% 6.26%
Class B

Advisor Intermediate Municipal Income - 0.25% 5.41% 6.26%
Class B (incl. contingent deferred sales charge)

Lehman Brothers 1-17 Year Municipal 4.73% n/a n/a
Bond Index

Intermediate Municipal Debt Funds Average 3.86% 6.36% 6.97%

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 OVER 10 YEARS
IMAHDR PRASUN SHR__CHT 19960531 19960617 130119 S00000000000001
FA Int Muni Inc -CL B LB Municipal Bond
00689 LB015
1986/05/31 10000.00 10000.00
1986/06/30 10100.75 10095.40
1986/07/31 10126.44 10156.68
1986/08/31 10460.67 10611.39
1986/09/30 10504.74 10638.03
1986/10/31 10723.22 10821.75
1986/11/30 10813.68 11036.13
1986/12/31 10777.38 11005.67
1987/01/31 10969.79 11337.05
1987/02/28 11092.99 11392.82
1987/03/31 11035.02 11272.06
1987/04/30 10584.19 10706.43
1987/05/31 10577.60 10653.33
1987/06/30 10775.12 10966.11
1987/07/31 10901.51 11077.96
1987/08/31 10924.96 11102.89
1987/09/30 10576.35 10693.52
1987/10/31 10674.51 10731.38
1987/11/30 10919.07 11011.57
1987/12/31 11028.10 11171.35
1988/01/31 11423.56 11569.28
1988/02/29 11470.16 11691.56
1988/03/31 11302.46 11555.36
1988/04/30 11359.28 11643.18
1988/05/31 11395.22 11609.53
1988/06/30 11475.33 11779.38
1988/07/31 11535.03 11856.18
1988/08/31 11540.55 11866.61
1988/09/30 11667.19 12081.40
1988/10/31 11805.98 12294.63
1988/11/30 11767.57 12182.01
1988/12/31 11841.83 12306.64
1989/01/31 11961.67 12561.14
1989/02/28 11890.23 12417.81
1989/03/31 11852.52 12388.14
1989/04/30 12020.05 12682.23
1989/05/31 12199.54 12945.64
1989/06/30 12333.43 13121.44
1989/07/31 12456.51 13300.03
1989/08/31 12416.16 13169.82
1989/09/30 12413.70 13130.57
1989/10/31 12513.26 13291.16
1989/11/30 12650.17 13523.75
1989/12/31 12764.20 13634.38
1990/01/31 12722.56 13569.89
1990/02/28 12835.54 13691.34
1990/03/31 12857.40 13695.45
1990/04/30 12725.19 13596.29
1990/05/31 12957.19 13893.10
1990/06/30 13064.47 14015.22
1990/07/31 13222.13 14221.94
1990/08/31 13145.25 14015.44
1990/09/30 13180.46 14023.43
1990/10/31 13327.86 14277.81
1990/11/30 13540.51 14564.94
1990/12/31 13577.05 14628.30
1991/01/31 13728.65 14824.61
1991/02/28 13853.65 14953.58
1991/03/31 13862.95 14958.97
1991/04/30 13988.62 15158.67
1991/05/31 14100.69 15293.43
1991/06/30 14109.25 15278.29
1991/07/31 14250.58 15464.38
1991/08/31 14364.45 15668.04
1991/09/30 14452.49 15872.04
1991/10/31 14607.69 16014.89
1991/11/30 14644.50 16059.57
1991/12/31 14886.50 16404.21
1992/01/31 14990.49 16441.61
1992/02/29 15007.68 16446.87
1992/03/31 14950.30 16452.96
1992/04/30 15054.87 16599.39
1992/05/31 15219.99 16794.77
1992/06/30 15419.74 17076.58
1992/07/31 15751.83 17588.54
1992/08/31 15635.36 17417.05
1992/09/30 15783.16 17530.96
1992/10/31 15670.87 17358.63
1992/11/30 15957.21 17669.52
1992/12/31 15976.48 17849.93
1993/01/31 16158.15 18057.52
1993/02/28 16606.77 18710.66
1993/03/31 16442.04 18512.89
1993/04/30 16557.68 18699.68
1993/05/31 16627.37 18804.78
1993/06/30 16802.62 19118.63
1993/07/31 16821.70 19143.67
1993/08/31 17131.21 19542.25
1993/09/30 17308.43 19764.83
1993/10/31 17324.68 19802.98
1993/11/30 17189.62 19628.51
1993/12/31 17483.34 20042.87
1994/01/31 17645.54 20271.76
1994/02/28 17204.95 19746.72
1994/03/31 16532.74 18942.64
1994/04/30 16679.07 19103.27
1994/05/31 16828.36 19268.89
1994/06/30 16705.26 19151.16
1994/07/31 16921.35 19502.20
1994/08/31 16970.40 19569.68
1994/09/30 16751.61 19282.40
1994/10/31 16502.57 18939.94
1994/11/30 16130.71 18597.51
1994/12/31 16412.08 19006.84
1995/01/31 16812.70 19550.05
1995/02/28 17229.13 20118.57
1995/03/31 17406.40 20349.73
1995/04/30 17390.20 20373.75
1995/05/31 17775.80 21023.87
1995/06/30 17668.95 20839.91
1995/07/31 17789.87 21037.47
1995/08/31 18001.29 21304.23
1995/09/30 18105.68 21439.09
1995/10/31 18287.31 21750.81
1995/11/30 18485.70 22111.66
1995/12/31 18581.11 22324.15
1996/01/31 18713.76 22492.70
1996/02/29 18642.70 22340.87
1996/03/31 18431.35 22055.35
1996/04/30 18381.03 21992.94
1996/05/31 18350.99 21984.14
IMATRL PRASUN SHR__CHT 19960531 19960617 130123 R00000000000123

$10,000 OVER 10 YEARS: Let's say hypothetically that $10,000 was invested
in Fidelity Advisor Intermediate Municipal Income Fund - Class B on May 31,
1986. As the chart shows, by May 31, 1996, the value of the investment
would have grown to $18,351 - an 83.51% increase on the initial investment.
For comparison, look at how the Lehman Brothers Municipal Bond Index, which
reflects the performance of the investment-grade municipal bond market, did
over the same period. With dividends reinvested, the same $10,000 would
have grown to $21,984 - a 119.84% 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
SIX YEARS ENDED NOVEMBER 30,
MONTHS
ENDED
MAY 31,

1996 1995 1994 1993 1992 1991

Dividend return 1.87% 4.17% 3.81% 5.13% 6.37% 6.65%

Capital appreciation -2.60% 10.43% -9.96% 2.59% 2.59% 1.50%
return

Total return -0.73% 14.60% -6.15% 7.72% 8.96% 8.15%

<TABLE>
<CAPTION>
<S> <C> <C> <C>
PERIOD ENDED MAY 31, 1996 PAST PAST 6 LIFE OF
MONTH MONTHS CLASS

Dividends per share 3.34(cents) 19.61(cents) 37.76(cents)

Annualized dividend rate 3.88% 3.80% 3.69%

30-day annualized yield 3.71% - -

30-day annualized tax-equivalent yield 5.80% - -

</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 $10.14
over the past month, $10.29 over the past six months, and $10.24 over the
year, 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 36% federal
tax bracket but does not reflect payment of the federal alternative minimum
tax, if applicable.
FUND TALK: THE MANAGER'S OVERVIEW

An interview with David Murphy, Portfolio Manager of Fidelity Advisor
Intermediate Municipal Income Fund
Q. HOW DID THE FUND PERFORM, DAVID?
A. For the six months ended May 31, 1996, the fund's Class A and B shares
had total returns of -0.31% and -0.73%, respectively. For the past year,
their returns were 4.06% and 3.24%, respectively. The intermediate
municipal debt funds average, as tracked by Lipper Analytical Services, was
- -0.20% for the past six months and 3.86% for the year. Also, for
comparative purposes, the Lehman Brothers 1-17 Year Municipal Bond Index
returned -0.10% over the past six months and 4.73% over the past year.
Q. DAVE, WE UNDERSTAND THERE ARE GOING TO BE SOME INVESTMENT POLICY CHANGES
. . .
A. As of June 24, 1996, the fund will change some of its debt quality
policies as part of the standardization of quality policies for our
fixed-income funds. The fund will reserve the right to invest up to 5% of
its holdings in below investment-grade securities. We do not anticipate
that this change will have an impact as we do not intend to seek out below
investment-grade securities except under unusual circumstances. The
restriction limiting the fund's investments in the lowest tier of
investment-grade securities to 25% of its assets will be eliminated. This
will allow the fund increased flexibility to invest in the lowest tier of
investment-grade securities without significantly increasing the risk of
the fund. Finally, the fund will use two additional rating agencies - Duff
& Phelps Credit Rating Co. and Fitch Investors Service, as well as Moody's
Investors Service and Standard & Poor's which the fund already uses - to
determine the credit quality of the fund's bonds.
Q. WHAT'S THE MUNICIPAL BOND MARKET BEEN LIKE OVER THE PAST SIX MONTHS?
A. Bond prices have fallen and their yields have risen in response to
reports indicating surprising strength in the economy. Investors often
worry that a strong economy indicates the potential for inflation, which
erodes the value of fixed-income investments. For the municipal bond
market, however, I think performance relative to the U.S. Treasury market
was favorable because of fading fears of radical tax reform and healthy
demand from certain market participants, including insurance companies. To
get a sense of relative performance, it's worth examining the ratio of
municipal yields to Treasury yields - expressed in percentage terms. A move
from a higher percentage (an indication that municipals are cheap) to a
lower percentage (an indication they are more expensive) shows that
municipal bonds have outperformed Treasuries. Six months ago, the ratio for
10-year bonds stood at about 80%; today, it stands at about 75%.
Q. IN YOUR OPINION, WHICH HOLDINGS CONTRIBUTED THE MOST TO THE FUND'S
PERFORMANCE?
A. Over the past year, I have built a position in New York City bonds. In
the past six months, these bonds have performed well relative to other
general obligation bonds of similar maturities and credit qualities - and
made a significant contribution to the fund's return.
Q. AREN'T YOU WORRIED ABOUT NEW YORK STATE BEING TWO MONTHS LATE IN
DELIVERING A BUDGET AND WHAT THAT MEANS FOR NEW YORK CITY IN TERMS OF LOST
STATE AID?
A. Getting a budget passed on time in New York is about as quick and easy
as driving through rush hour in mid-town Manhattan. With that in mind, most
of the local issuers traditionally have been prepared to deal with budget
delays, so the payments on their bonds are not affected. At the same time,
the political posturing and budgetary hand-wringing in Albany have resulted
in a drop off in the issuance of state-appropriated debt. During the
period, this was a positive development for existing state-appropriated
bonds.
Q. WHAT WAS ANOTHER AREA OF THE MARKET YOU LIKED?
A. Student loan bonds. These high-quality bonds have historically traded at
yields higher than many other municipal bonds. During the period, these
bonds performed relatively well as more municipal investors recognized
their attractiveness.
Q. IN YOUR LAST REPORT, YOU DISCUSSED THE MERITS OF MUNICIPAL BONDS FROM
CALIFORNIA AND TEXAS. DID YOU STILL KEEP SIGNIFICANT PORTIONS OF THE FUND'S
ASSETS IN THESE STATES?
A. Yes, I did. In California, tax receipts came in above and beyond
projections - which is certainly a reassuring development for a municipal
bond investor. Rising tax receipts in Texas also confirmed that the Lone
Star State's economy was growing at a healthy pace. While each state's
economy was driven by growth in different key industries - technology and
entertainment in California, and oil and oil services in Texas - both
states benefited from trade created by the North American Free Trade
Agreement.
Q. WERE THERE ANY DISAPPOINTMENTS?
A. As a rule, bonds with longer maturities are more sensitive to changes in
interest rates. Therefore, the fund's longer-term holdings were hurt more
than its shorter-term holdings when interest rates went up earlier this
year.
Q. EARLY IN 1996, THE FUND'S INVESTMENT POLICY WAS CHANGED IN ORDER TO
ALLOW IT TO HOLD ANY AMOUNT OF BONDS SUBJECT TO THE ALTERNATIVE MINIMUM TAX
(AMT). AS A RESULT, DID YOU ADD ANY AMT BONDS DURING THE PERIOD?
A. The fund's AMT position now stands at 11.8% of investments, up from
10.1% six months ago. AMT securities are issued by municipalities to
finance private activity, such as airports, multi-family housing and
industrial development. These securities typically offer higher yields than
other municipal securities of comparable maturity without necessarily
involving higher credit risk. While the investment policy change allows the
fund to invest up to 100% of its assets in AMT bonds, the possibility of
that occurring is highly unlikely.
Q. WHAT'S YOUR OUTLOOK?
A. I have a reasonably positive outlook. A spate of new issuance earlier
this year raised the overall level of supply of municipal bonds in the
market. With the rise in interest rates in 1996, however, issuance is
expected to fall - thus lowering the number of bonds in the market. Also,
an expected $60 billion in cash from coupon payments and redemptions are
expected to hit the market in June and July. Although a good supply/demand
scenario may be positive for the market, the attractiveness of the taxable
markets relative to municipals will play a big role in whether or not
buyers will want to add to their holdings in the municipal bond market.
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, 1996,
more than $81 million
MANAGER: David Murphy,
since March 1995; joined
Fidelity in 1989
(checkmark)
DAVID MURPHY ON THE BENEFITS
OF A BARBELLED COUPON
STRUCTURE:
"One of my fundamental
strategies in managing the
fund is maintaining a barbelled
coupon structure - that is,
owning premium-coupon
bonds as well as
discount-coupon bonds.
Historically, premium-coupon
bonds - which pay higher
annual income than newly
issued bonds - offer
downside protection should
the market fall. Discount
coupon bonds - with annual
income lower than newly
issued bonds - offer price
appreciation potential should
the market rally. As either of
these types of bonds move
close to par (face value), I
attempt to sell them and
replace them with premium or
discount bonds. Therefore, I
am continuously adjusting the
portfolio's coupon structure."
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER,
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.
INVESTMENT CHANGES

TOP FIVE STATES AS OF MAY 31, 1996
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE STATES
6 MONTHS AGO

California 17.5 11.8

Texas 14.1 10.1

New York 7.6 5.7

Massachusetts 6.1 7.1

Florida 5.7 6.6

TOP FIVE SECTORS AS OF MAY 31, 1996
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE SECTORS
6 MONTHS AGO

General Obligation 24.8 21.7

Education 17.3 18.8

Electric Revenue 16.2 11.4

Health Care 7.5 9.3

Transportation 7.1 8.9

AVERAGE YEARS TO MATURITY AS OF MAY 31, 1996
6 MONTHS AGO

Years 8.5 8.6

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, 1996
6 MONTHS AGO

Years 6.0 6.2

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, 1996 AS OF NOVEMBER 30, 1995
Row: 1, Col: 1, Value: 4.0
Row: 1, Col: 2, Value: 2.0
Row: 1, Col: 3, Value: 11.1
Row: 1, Col: 4, Value: 23.9
Row: 1, Col: 5, Value: 14.0
Row: 1, Col: 6, Value: 45.0
Row: 1, Col: 1, Value: 8.300000000000001
Row: 1, Col: 2, Value: 5.2
Row: 1, Col: 3, Value: 23.5
Row: 1, Col: 4, Value: 12.1
Row: 1, Col: 5, Value: 30.0
Row: 1, Col: 6, Value: 20.0
Aaa 46.5%
Aa 14.4%
A 23.9%
Baa 11.1%
Non-rated 0.6%
Short-term
investments 3.5%
Aaa 50.9%
Aa 12.1%
A 23.5%
Baa 5.2%
Non-rated 0.0%
Short-term
investments 8.3%
SHOWN AS A PERCENTAGE OF THE FUND'S INVESTMENTS. WHERE MOODY'S RATINGS ARE
NOT AVAILABLE, WE HAVE USED S&P RATINGS.
INVESTMENTS MAY 31, 1996 (UNAUDITED)

Showing Percentage of Total Value of Investment in Securities

MUNICIPAL BONDS - 96.5%
PRINCIPAL VALUE
AMOUNT (NOTE 1)
ALASKA - 2.6%
North Slope Borough Series B, 0% 1/1/03, (MBIA Insured) $ 3,000,000 $
2,126,250
ARIZONA - 1.3%
Maricopa County Ind. Dev. Auth. Hosp. Facs. Rev. Rfdg.
(Samaritan Health Scvs.) Series B, 6.90% 12/1/99,
(MBIA Insured) 1,000,000 1,070,000
ARKANSAS - 0.9%
Arkansas Gen. Oblig. 0% 6/1/02 1,000,000 722,500
CALIFORNIA - 17.5%
California Gen. Oblig. 6% 10/1/08 500,000 521,250
California Poll. Cont. Fing. Auth. Resource Recovery Rev.
(Waste Management Inc.) Series A, 7.15% 2/1/11 (c) 750,000 804,375
California Pub. Wks. Board Lease Rev.:
(California Univ. Proj.) Series A, 5.50% 6/1/10 1,000,000 972,500
(Dept. Correction State Prisons, Madera) Series E,
6% 6/1/07 1,000,000 1,032,500
California Rural Home Mtg. Fin. Auth. Lease Rev. Series A,
4.45% 8/1/01, (MBIA Insured) 1,000,000 987,500
California Urban Ind. Dev. Agcy. Rev.
(Civic Recreational Proj.#1) 7.30% 5/1/06 500,000 518,545
Castaic Lake Wtr. Agcy. Ctfs. of Prtn. Rfdg. (Wtr. Sys.
Impt. Prog.) Series A, 7.25% 8/1/08, (MBIA Insured) 500,000 577,500
Chino Basin Regional Fing. Auth. Rev. Rfdg. (Muni. Wtr. &
Swr. Proj.) 7% 8/1/08, (AMBAC Insured) 1,000,000 1,133,750
La Quinta Redev. Agcy. Rfdg. (Tax Allocation Proj. Area #1):
7.30% 9/1/05, (MBIA Insured) 460,000 530,725
7.30% 9/1/09, (MBIA Insured) 750,000 869,063
Long Beach Harbor Rev. 9% 5/15/02, (MBIA Insured) (c) 1,000,000 1,198,750
Los Angeles County Ctfs. of Prtn. (Disney Parking Proj.)
0% 9/1/04 970,000 578,363
Rosemead Redev. Agcy. Sub. Lien (Tax Allocation Proj. Area #1)
0% 10/1/02 (Escrowed to Maturity) (e) 1,450,000 1,056,688
Sacramento Muni. Util. Dist. Elec. Rev.
1.76% 11/15/08, (FGIC Insured) (d) 1,000,000 873,750
Sacramento Pwr. Auth. Cogeneration Proj. Rev.:
6% 7/1/02 1,500,000 1,520,625
6.50% 7/1/08 300,000 304,500
West Covina Ctfs. of Prtn. (Queen of the Valley Hosp.)
6.50% 8/15/09 1,000,000 1,005,000
14,485,384
COLORADO - 1.3%
Univ. of Colorado Hosp. Auth. Hosp. Rev. Series A,
5.80% 11/15/03, (AMBAC Insured) 1,000,000 1,045,000
MUNICIPAL BONDS - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
DISTRICT OF COLUMBIA - 1.8%
District of Columbia Gen. Oblig. Rfdg. Series B-1,
5.40% 6/1/06, (AMBAC Insured) $ 1,000,000 $ 982,500
District of Columbia Redev. Land Agcy. Spl. Tax Rev.
(Washington D.C. Sports Arena) 5.40% 11/1/00 500,000 492,500
1,475,000
FLORIDA - 5.7%
Broward County Resource Recovery Rev. (SES Broward Co.
LP South Proj.) 7.95% 12/1/08 520,000 570,700
Dade County Wtr. & Swr. Sys. Rev. 6.25% 10/1/10,
(FGIC Insured) 1,500,000 1,595,625
Jacksonville Elec. Auth. Rev. 5.25% 7/1/01
(Escrowed to Maturity) (e) 500,000 503,125
Jacksonville Port Auth. Rev. 5.75% 11/1/09,
(MBIA Insured) (b)(c) 500,000 492,500
Lakeland Elec. & Wtr. Rev. Rfdg Jr. Sub. Lien
6.25% 10/1/03, (FGIC Insured) (b) 470,000 504,075
Palm Beach County Solid Waste Auth. Rev. Series 1984,
7.75% 7/1/98, (BIG & MBIA Insured) 1,000,000 1,064,710
4,730,735
GEORGIA - 3.8%
Atlanta Arpt. Facs. Rev. 6.30% 1/1/07, (AMBAC Insured) 500,000 500,240
Metropolitan Atlanta Rapid Trans. Auth. Sales Tax Rev. Rfdg.
Series P, 6% 7/1/04, (AMBAC Insured) 2,000,000 2,120,000
Monroe County Dev. Auth. Poll. Cont. Rev. Rfdg.
(Oglethorpe Pwr. Corp.) Series A, 6.60% 1/1/07 500,000 536,250
3,156,490
ILLINOIS - 2.4%
Chicago Single Family Mtg. Rev. (Cap. Appreciation)
Series A, 0% 12/1/16, (FGIC Insured) 660,000 90,750
Illinois Health Facs. Auth. Rev. Rfdg. (Felician Health Care, Inc.)
Series A, 6.85% 1/1/00, (AMBAC Insured) 1,000,000 1,063,750
Metropolitan Pier & Exposition Auth. Dedicated Tax Rev.
0% 6/15/00, (AMBAC Insured) 1,000,000 820,000
1,974,500
INDIANA - 1.6%
Indianapolis Resource Recovery Rev. Rfdg. (Ogden Martin
Sys., Inc. Proj.) 6.50% 12/1/03, (AMBAC Insured) (b) 1,240,000 1,328,350
IOWA - 1.2%
Iowa Student Loan Liquidity Corp. Student Loan Rev.
Series A, 6.35% 3/1/01 1,000,000 1,043,750
MUNICIPAL BONDS - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
LOUISIANA - 3.3%
Louisiana Pub. Facs. Auth. Rev. Student Loan
Sr. Series A-1, 6.20% 3/1/01 $ 2,600,000 $ 2,713,750
MARYLAND - 0.6%
Northeast Waste Disp. Auth. Southwest Resource Recovery
Facs. Rev. Rfdg. 7% 1/1/01, (MBIA Insured) 500,000 541,250
MASSACHUSETTS - 6.1%
Massachusetts Ind. Fin. Agcy. Rev. (Cap. Appreciation)
(Massachusetts Biomedical Research) Series A-1:
0% 8/1/00 1,100,000 895,125
0% 8/1/02 1,600,000 1,154,000
New England Ed. Loan Marketing Corp. Rev. Rfdg.
(Massachusetts Student Loan):
Sr. Issue Series A, 6.50% 9/1/02 1,000,000 1,070,000
Series B, 5.40% 6/1/00 1,950,000 1,976,813
5,095,938
MINNESOTA - 0.2%
Minnesota Higher Ed. Facs. (Macalester College)
5.50% 3/1/12 200,000 191,500
NEW JERSEY - 2.0%
New Jersey Economic Dev. Auth. Market Transition Facs.
Rev. Sr. Lien Series A, 7% 7/1/04, (MBIA Insured) 1,000,000 1,120,000
New Jersey Health Care Facs. Fing. Auth. Rev.
(Atlantic City Med. Ctr.) Series B,
8.375% 8/1/20, (FHA Guaranteed)
(Pre-Refunded to 2/1/98 @ 102) (e) 260,000 278,525
New Jersey Hwy. Auth. Garden State Parkway Gen. Rev.
(Sr. Parkway) 6% 1/1/05 235,000 247,044
1,645,569
NEW MEXICO - 5.0%
Albuquerque Arpt. Rev. Rfdg. 6.75% 7/1/09,
(AMBAC Insured) (b)(c) 450,000 467,438
Farmington Poll. Cont. Rev. 6% 3/1/08, (AMBAC Insured) 500,000 500,460
New Mexico Edl. Assistance Foundation Student Loan Rev.
Sr. Series IV-A2, 6.65% 3/1/07 (c) 2,500,000 2,615,625
Rio Rancho Wtr. & Wastewtr. Sys. Rev. Series A,
8% 5/15/04, (FSA Insured) 500,000 586,875
4,170,398
NEW YORK - 7.6%
Metropolitan Trans. Auth. Svc. Contract Rfdg. (Transit Facs.)
Series 5, 6.90% 7/1/05 1,000,000 1,058,750
New York City Gen. Oblig.:
Series B, 8.25% 6/1/07 1,000,000 1,147,500
Series G, 5.40% 2/1/01 2,000,000 1,980,000
MUNICIPAL BONDS - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York State Dorm. Auth. Rev.:
Rfdg. (State Univ. Edl. Facs.) Series A, 6.50% 5/15/04 $ 500,000 $ 524,375
(City Univ. Sys.) Series C, 7.50% 7/1/10 500,000 566,250
New York State Local Govt. Assistance Corp.
Series A, 0% 4/1/08 1,000,000 511,250
New York State Thruway Auth. Hwy. & Bridge Trust Fund
Series B, 5% 4/1/97 500,000 501,880
6,290,005
OHIO - 3.4%
Dayton Arpt. Rev. Rfdg. (James M. Cox Dayton Int'l. Proj.)
5.35% 12/1/09, (AMBAC Insured) 1,370,000 1,334,038
Ohio State Bldg. Auth. (Adult Correctional Facs.) Series A,
5.95% 10/1/14, (MBIA Insured) 1,500,000 1,509,375
2,843,413
OKLAHOMA - 1.9%
Grand River Dam Auth. Rev. Rfdg. 5.75% 6/1/06 1,500,000 1,554,375
PENNSYLVANIA - 2.9%
Pennsylvania Higher Edl. Facs. Auth. College & Univ. Rev.
Rfdg. (RIDC Reg. Growth - Carnegie-Mellon Univ. Proj.)
6% 11/1/04 1,270,000 1,347,788
Pennsylvania Hsg. Fin. Agcy. Rfdg. (Residential Dev.
Section 8) Series A, 7% 7/1/01 1,000,000 1,050,000
2,397,788
RHODE ISLAND - 1.2%
Rhode Island Student Loan Auth. Student Loan Rev. Rfdg.
Series A, 6.55% 12/1/00 1,000,000 1,043,750
SOUTH CAROLINA - 3.2%
Piedmont Muni. Pwr. Agcy. Elec. Rev. Rfdg. 5.40% 1/1/99 250,000 252,500
South Carolina Edl. Assistance Auth. Rev. Rfdg.
(Guaranteed Student Loan):
Sr. Lien Series A-2, 5.40% 9/1/02 1,350,000 1,370,250
Sub. Lien Series B, 5.70% 9/1/05 (c) 1,000,000 1,008,750
2,631,500
TEXAS - 10.8%
Alief Independent School Dist. Gen. Oblig. Rfdg.
5.25% 2/15/11 255,000 240,656
Alliance Arpt. Auth. Inc. Spl. Facs. Rev. (American
Airlines, Inc. Proj.) 7.50% 12/1/29 (c) 1,000,000 1,052,500
Austin Util. Sys. Rev. Rfdg. Series A, 6% 11/15/06,
(MBIA Insured) 1,000,000 1,053,750
MUNICIPAL BONDS - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
TEXAS - CONTINUED
Austin Wtr. Swr. & Elec. Rev. Rfdg. Sub. Lien
14% 11/15/01 $ 375,000 $ 487,031
Carrollton Farmers Branch Independent School Dist.
5.50% 2/15/02 240,000 246,600
North East Independent School Dist. Rfdg. Unltd. Tax
Series D, 0% 2/1/00 4,565,000 3,811,775
Port Arthur Hsg. Fin. Corp. Single Family Mtg. Rev. Rfdg.
8.70% 3/1/12 550,000 589,875
San Antonio Elec. & Gas Rev. Rfdg. 5.80% 2/1/06 1,000,000 1,036,250
Texas A&M Univ. Permanent Univ. Fund 5.40% 7/1/03 400,000 409,500
8,927,937
UTAH - 2.9%
Intermountain Pwr. Agcy. Pwr. Supply Rev.:
Series A:
0% 7/1/06, (MBIA Insured) 2,860,000 1,640,925
6.50% 7/1/08, (AMBAC Insured) (b) 250,000 261,250
Sys. Rfdg. Series B, 6.50% 7/1/04, (MBIA Insured) 500,000 543,125
2,445,300
VIRGINIA - 0.6%
Chesapeake Pub. Impt. 6% 5/1/10 500,000 520,625
WASHINGTON - 4.7%
Port Longview Ind. Dev. Corp. Solid Waste Disp. Rev.
(Weyerhaeuser Co. Proj.) 6.875% 10/1/08 (c) 600,000 651,000
Washington Motor Vehicle Fuel Tax Gen. Oblig. Series B,
6.50% 9/1/03 335,000 363,475
Washington Pub. Pwr. Supply Sys. Rev.:
(Nuclear Proj. #2):
7.50% 7/1/03 525,000 578,813
5.40% 7/1/12 2,000,000 1,842,500
(Nuclear Proj. #3) Rfdg. Series C, 5.10% 7/1/07 500,000 469,375
3,905,163
TOTAL MUNICIPAL BONDS
(Cost $79,707,690) 80,076,220
MUNICIPAL NOTES (A) - 3.5%
PRINCIPAL VALUE
AMOUNT (NOTE 1)
LOUISIANA - 0.2%
Plaquemines Parish Environmental Rev. Rfdg.
(BP Exploration & Oil, Inc.) Series 1994, 4.10%, VRDN (c) $ 200,000 $
200,000
TEXAS - 3.3%
Brazos River Hbr. Navigation Dist. of Brazoria County
(Dow Chemical Co. Proj.) Series 1993, 4.15%, VRDN (c) 900,000 900,000
Gulf Coast Ind. Dev. Auth. Solid Waste Disposal Rev. (Citgo
Petroleum) 4.15%, LOC Wachovia Bank, VRDN (c) 400,000 400,000
Texas Gen. Oblig. TRAN Series 1995 A, 4.75% 8/30/96 1,400,000 1,403,860
2,703,860
TOTAL MUNICIPAL NOTES
(Cost $2,902,268) 2,903,860
TOTAL INVESTMENTS IN SECURITIES - 100%
(Cost $82,609,958) $ 82,980,080
SECURITY TYPE ABBREVIATIONS
TRAN - Tax and Revenue Anticipation Notes
VRDN - Variable Rate Demand Notes
LEGEND
(1.) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(2.) Security purchased on a delayed delivery basis (see Note 2 of Notes to
Financial Statements).
(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.
(5.) Security collateralized by an amount sufficient to pay interest and
principal.
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 80.7% AAA, AA, A 73.3%
Baa 8.9% BBB 9.6%
Ba 0.0% BB 1.3%
B 0.0% B 0.6%
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 0.6%.
The distribution of municipal securities by revenue source, as a percentage
of total value of investment in securities, is as follows:
General Obligation 24.8%
Education 17.3
Electric Revenue 16.2
Health Care 7.5
Transportation 7.1
Water & Sewer 5.3
Special Tax 5.3
Others (individually less than 5%) 16.5
TOTAL 100.0%
INCOME TAX INFORMATION
At May 31, 1996, the aggregate cost of invest- ment securities for income
tax purposes was $82,609,958. Net unrealized appreciation aggregated
$370,122, of which $1,439,413 related to appreciated investment securities
and $1,069,291 related to depreciated investment securities.
At November 30, 1995, the fund had a capital loss carryforward of
approximately $1,069,000 of which $627,000 and $442,000 will expire on
November 30, 2002 and 2003, respectively.
At November 30, 1995, the fund was required to defer approximately $466,000
of losses on futures contracts.
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
MAY 31, 1996 (UNAUDITED)

ASSETS

Investment in securities, at value (cost $82,609,958) - $ 82,980,080
See accompanying schedule

Cash 49,928

Interest receivable 1,297,046

TOTAL ASSETS 84,327,054

LIABILITIES

Payable for investments purchased $ 3,009,439
Delayed delivery

Payable for fund shares redeemed 60,910

Distributions payable 128,261

Accrued management fee 27,571

Distribution fees payable 16,932

Other payables and accrued expenses 36,244

TOTAL LIABILITIES 3,279,357

NET ASSETS $ 81,047,697

Net Assets consist of:

Paid in capital $ 81,832,603

Accumulated undistributed net realized gain (loss) on (1,155,028)
investments

Net unrealized appreciation (depreciation) on 370,122
investments

NET ASSETS $ 81,047,697

CALCULATION OF MAXIMUM OFFERING PRICE $10.12
CLASS A:
NET ASSET VALUE and redemption price per share
($61,574,748 (divided by) 6,086,439 shares)

Maximum offering price per share (100/97.25 of $10.12) $10.41

CLASS B: $10.11
NET ASSET VALUE and offering price per share
($7,286,374 (divided by) 720,855 shares) A

INSTITUTIONAL CLASS: $10.11
NET ASSET VALUE, offering price and redemption price
per share ($12,186,575 (divided by) 1,205,218 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, 1996 (UNAUDITED)

INTEREST INCOME $ 2,186,791

EXPENSES

Management fee $ 162,302

Transfer agent fees 61,930
Class A

Class B 6,923

Institutional Class 8,964

Distribution fees 79,290
Class A

Class B 32,014

Accounting fees and expenses 31,025

Non-interested trustees' compensation 145

Custodian fees and expenses 3,645

Registration fees 9,817
Class A

Class B 12,572

Institutional Class 10,911

Audit 18,588

Legal 2,892

Miscellaneous 5,896

Total expenses before reductions 446,914

Expense reductions (32,017) 414,897

NET INTEREST INCOME 1,771,894

REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:

Investment securities 425,927

Futures contracts (92,092) 333,835

Change in net unrealized appreciation (depreciation) on:

Investment securities (2,501,425)

Futures contracts 45,806 (2,455,619)

NET GAIN (LOSS) (2,121,784)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ (349,890)
FROM OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR ENDED
ENDED MAY 31, NOVEMBER 30,
1996 1995
(UNAUDITED)

INCREASE (DECREASE) IN NET ASSETS

Operations $ 1,771,894 $ 3,326,767
Net interest income

Net realized gain (loss) 333,835 (744,356)

Change in net unrealized appreciation (depreciation) (2,455,619) 7,892,460

NET INCREASE (DECREASE) IN NET ASSETS RESULTING (349,890) 10,474,871
FROM OPERATIONS

Distributions to shareholders (1,377,421) (2,650,307)
From net interest income
Class A

Class B (130,029) (141,667)

Institutional Class (264,444) (534,793)

TOTAL DISTRIBUTIONS (1,771,894) (3,326,767)

Share transactions - net increase (decrease) 3,006,016 2,248,880

TOTAL INCREASE (DECREASE) IN NET ASSETS 884,232 9,396,984

NET ASSETS

Beginning of period 80,163,465 70,766,481

End of period $ 81,047,697 $ 80,163,465

</TABLE>

FINANCIAL HIGHLIGHTS - CLASS A
SIX MONTHS YEARS ENDED NOVEMBER 30,
ENDED MAY 31,
1996

(UNAUDITED) 1995 1994 E 1993 1992 D

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

Net asset value, beginning $ 10.380 $ 9.400 $ 10.460 $ 11.080 $ 11.010
of period

Income from Investment
Operations

Net interest income .229 .451 .455 .508 .131

Net realized and unrealized (.260) .980 (1.040) .260 .070

gain (loss)

Total from investment (.031) 1.431 (.585) .768 .201
operations

Less Distributions

From net interest income (.229) (.451) (.455) (.508) (.131)

From net realized gain - - - (.880) -

In excess of net realized - - (.020) - -
gain

Total distributions (.229) (.451) (.475) (1.388) (.131)

Net asset value, end of $ 10.120 $ 10.380 $ 9.400 $ 10.460 $ 11.080
period

TOTAL RETURN B, C (.31)% 15.49% (5.78)% 7.72% 1.37%

RATIOS AND SUPPLEMENTAL
DATA

Net assets, end of period $ 61,575 $ 62,852 $ 57,382 $ 39,800 $ 1,752
(000 omitted)

Ratio of expenses to average 1.00% A, .94% .90% .90% 1.04% A,
F F F F F
net assets

Ratio of expenses to average .99% A, .94% .90% .90% 1.04% A
G
net assets after expense
reductions

Ratio of net interest income 4.34% A 4.56% 4.49% 4.76% 5.65% A
to average net assets

Portfolio turnover rate 33% A 53% 53% 46% 36%

</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 SALE 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 INTEREST INCOME PER SHARE MAY REFLECT CERTAIN
RECLASSIFICATIONS RELATED TO BOOK TO TAX DIFFERENCES.
F FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD HAVE
BEEN HIGHER (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS).
G FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES
WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES (SEE NOTE 5 OF
NOTES TO FINANCIAL STATEMENTS).
FINANCIAL HIGHLIGHTS - CLASS B
SIX MONTHS YEARS ENDED NOVEMBER
ENDED MAY 31, 30,
1996

(UNAUDITED) 1995 1994 D

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

Net asset value, beginning of period $ 10.380 $ 9.400 $ 9.890

Income from Investment Operations

Net interest income .196 .373 .155

Net realized and unrealized gain (loss) (.270) .980 (.490)

Total from investment operations (.074) 1.353 (.335)

Less Distributions

From net interest income (.196) (.373) (.155)

Net asset value, end of period $ 10.110 $ 10.380 $ 9.400

TOTAL RETURN B, C (.73)% 14.60% (3.44)%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 7,286 $ 6,226 $ 1,682

Ratio of expenses to average net assets 1.66% A, 1.68% E 1.65% A,
E E

Ratio of net interest income to average net assets 3.72% A 3.71% 3.74% A

Portfolio turnover rate 33% A 53% 53%

</TABLE>

A ANNUALIZED
B TOTAL RETURNS DO NOT INCLUDE THE CONTINGENT DEFERRED 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 SALE OF CLASS B SHARES) TO
NOVEMBER 30, 1994.
E FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD HAVE
BEEN HIGHER (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS).
FINANCIAL HIGHLIGHTS - INSTITUTIONAL CLASS
SIX MONTHS YEARS ENDED NOVEMBER 30,
ENDED MAY 31,
1996

(UNAUDITED) 1995 1994 D 1993 1992 1991

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

Net asset value, $ 10.360 $ 9.410 $ 10.460 $ 11.080 $ 10.800 $ 10.640
beginning of period

Income from Investment
Operations

Net interest income .243 .477 .481 .536 .666 .682

Net realized and (.250) .950 (1.030) .260 .280 .160
unrealized gain
(loss)

Total from investment (.007) 1.427 (.549) .796 .946 .842
operations

Less Distributions

From net interest (.243) (.477) (.481) (.536) (.666) (.682)
income

From net realized gain - - - (.880) - -

In excess of net - - (.020) - - -
realized gain

Total distributions (.243) (.477) (.501) (1.416) (.666) (.682)

Net asset value, $ 10.110 $ 10.360 $ 9.410 $ 10.460 $ 11.080 $ 10.800
end of period

TOTAL RETURN B, C (.08)% 15.44% (5.43)% 8.01% 9.01% 8.15%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period $ 12,187 $ 11,085 $ 11,702 $ 15,076 $ 28,428 $ 100,294
(000 omitted)

Ratio of expenses to .75% A, .70% .65% .65% .66% .61%
average net assets E E E E E

Ratio of expenses to .73% A, .70% .65% .65% .66% .61%
average net assets F
after expense
reductions

Ratio of net interest 4.62% A 4.96% 4.75% 5.01% 6.05% 6.40%
income to average
net assets

Portfolio turnover rate 33% A 53% 53% 46% 36% 20%

</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 INTEREST INCOME PER SHARE MAY REFLECT CERTAIN
RECLASSIFICATIONS RELATED TO BOOK TO TAX DIFFERENCES.
E FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD HAVE
BEEN HIGHER (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS).
F FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES
WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES (SEE NOTE 5 OF
NOTES TO FINANCIAL STATEMENTS).
NOTES TO FINANCIAL STATEMENTS
For the period ended May 31, 1996 (Unaudited)

1. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity Advisor Intermediate Municipal Income Fund (the fund) (formerly
Fidelity Advisor Limited Term Tax-Exempt 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 pro rata 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 financial statements have been prepared in conformity with generally
accepted accounting principles which permit management to make certain
estimates and assumptions at the date of the financial statements. The
following summarizes the significant accounting policies of the fund:
SECURITY VALUATION. Securities are valued based upon a computerized matrix
system and/or appraisals by a pricing service, both of which consider
market transactions and dealer-supplied valuations. 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 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 pro rata basis based on the number of shares held by each
class on the ex-dividend date.
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences, which may result in distribution
reclassifications, are primarily due to differing treatments for futures
and options
1. SIGNIFICANT ACCOUNTING
POLICIES - CONTINUED
DISTRIBUTIONS TO SHAREHOLDERS -
CONTINUED
transactions, 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 interest income and realized
and unrealized gain (loss). Accumulated undistributed net realized gain
(loss) on investments may include temporary book and tax basis differences
that will reverse in a subsequent period. Any taxable income or gain
remaining at fiscal year end is distributed in the following year.
SECURITY TRANSACTIONS. Security transactions are accounted for as of trade
date. Gains and losses on securities sold are determined on the basis of
identified cost.
2. OPERATING POLICIES.
DELAYED DELIVERY TRANSACTIONS. The fund may purchase or sell securities on
a when-issued or forward commitment basis. Payment and delivery may take
place a month or more after the date of the transaction. The price of the
underlying securities and the date when the securities will be delivered
and paid for are fixed at the time the transaction is negotiated. The
market value of the securities purchased or sold on a when-issued or
forward commitment basis are identified as such in the fund's schedule of
investments. The fund may receive compensation for interest forgone in the
purchase of a delayed delivery security. 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 $16,784,099 and $13,479,737, respectively.
The market value of futures contracts opened and closed during the period
amounted to $6,260,863 and $8,725,943, 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 .1100% 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 .40% 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), Class B shares (Class B Plan), and Institutional Class
shares (collectively referred to as "the Plans"). Under the Class A Plan
and Class B Plan, the fund pays Fidelity Distributors Corporation (FDC), an
affiliate of FMR, a distribution and service fee. Under the Class A Plan,
this fee is based on an annual rate of .25% of the average net assets of
the Class A shares. Under the Class B Plan, this fee was based on an annual
rate of 1.00% (of which .75% represented a distribution fee and .25%
represented a shareholder service fee) of the average net assets of the
Class B shares for the period December 1, 1995, to December 31, 1995.
Effective January 1, 1996, the Board of Trustees approved a revised Class B
distribution plan, under which the fee is based on an annual rate of .90%
(of which .65% represents a distribution fee and .25% represents a
shareholder service fee) of the average net assets of the Class B shares.
For the period, the fund paid FDC $79,290 and $32,014 under the Class A
Plan and Class B Plan, respectively, of which $79,290 and $8,745 were paid
to securities dealers, banks and other financial institutions for the
distribution of Class A and Class B shares, respectively, and providing
shareholder support services.
Under the Plans, FMR or FDC may use its resources to pay administrative and
promotional expenses related to the sale of the fund's Class A, Class B,
and Institutional Class shares. The Plans also authorize payments to third
parties that assist in the sale of the fund's shares or render shareholder
support services.
SALES LOAD. For the period December 1, 1995 through December 31, 1995, FDC
received a front-end sales charge of up to 4.75% for selling Class A shares
of the fund and the proceeds of a contingent deferred sales charge levied
on Class B share redemptions occuring within five years of purchase. The
Class B charge was based on declining rates which ranged 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. Effective January 1, 1996, the Board of Trustees approved
revised Class A and
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES -
CONTINUED
SALES LOAD - CONTINUED
Class B sales charges. Under the revised arrangements, FDC receives a
front-end sales charge of up to 2.75% for selling Class A shares of the
fund, and receives the proceeds of a contingent deferred sales charge
levied on Class B shares redeemed within three years of purchase. The
contingent deferred sales charge is based on a declining scale that ranges
from 3% to 1% of the lesser of the original purchase price or the
redemption proceeds of the redeemed shares, excluding any reinvested
dividends and capital gains.
For the period, FDC received sales charges of $58,658 on sales of Class A
shares of the fund, of which $49,764 was paid to securities dealers, banks,
and other financial institutions. FDC also received contingent deferred
sales charges of $15,306 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 AND ACCOUNTING 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 Fidelity Investments Institutional Operations Company (FIIOC), an
affiliate of FMR, with respect to the Class A, Class B and Institutional
shares, to perform the transfer, dividend disbursing, and shareholder
servicing agent functions. FIIOC receives 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
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.
UMB 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
$31,025.
For the period, the transfer agent fees were equivalent to annualized rates
of .20%, .20%, and .16% of average net assets for Class A, Class B, and
Institutional Class, respectively.
5. EXPENSE REDUCTIONS.
FMR voluntarily agreed to reimburse operating expenses (excluding interest,
taxes, brokerage commissions and extraordinary expenses) above the
following annual rates of average net assets for each class.
(I) CLASS A. For the period, this expense limitation was 1.00% of average
net assets and the reimbursement reduced expenses by $8,497.
(II) CLASS B. Effective January 1, 1996, the expense limitation changed
from an annual rate of 1.75% to 1.65% of average net assets and the
reimbursement reduced expenses by $12,473.
5. EXPENSE REDUCTIONS -
CONTINUED
(III) INSTITUTIONAL CLASS. For the period, this expense limitation was .75%
of average net assets and the reimbursement reduced expenses by $9,016.
In addition, the fund has entered into an arrangement with its custodian
and transfer agent whereby interest earned on uninvested cash balances was
used to offset a portion of the class' expenses. During the period, the
fund's custodian fees were reduced by $789 under the custodian arrangement,
and Class A and Institutional Class expenses were reduced by $1,047 and
$195, respectively, under the transfer agent arrangement.
6. SHARE TRANSACTIONS.
Share transactions for each class of shares were as follows:
SHARES DOLLARS
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED ENDED NOVEMBER 30, ENDED
NOVEMBER 30,
MAY 31, 1996 1995 MAY 31, 1996 1995

CLASS A
Shares sold 1,475,518 3,280,424 $ 15,215,014 $ 32,802,369
Reinvestment of distributions 95,793 177,315 985,546 1,780,402
Shares redeemed (1,542,577) (3,501,979) (15,843,670) (34,844,861)
Net increase (decrease) 28,734 (44,240) $ 356,890 $ (262,090)
CLASS B
Shares sold 232,847 477,351 $ 2,392,730 $ 4,788,452
Reinvestment of distributions 8,436 11,332 86,725 114,549
Shares redeemed (120,479) (67,483) (1,228,240) (680,229)
Net increase (decrease) 120,804 421,200 $ 1,251,215 $ 4,222,772
INSTITUTIONAL CLASS
Shares sold 358,493 320,582 $ 3,698,779 $ 3,224,706
Reinvestment of distributions 3,136 5,538 32,229 55,697
Shares redeemed (226,061) (500,730) (2,333,097) (4,992,205)
Net increase (decrease) 135,568 (174,610) $ 1,397,911 $ (1,711,802)

INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Fred L. Henning, Jr., Vice President
David L. Murphy, Vice President
Arthur S. Loring, Secretary
Kenneth A. Rathgeber, 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 *
ADVISORY BOARD
William O. McCoy
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENT
UMB Bank, n.a.
Kansas City, MO
Fidelity Investments Institutional Operations Company
Boston, MA
CUSTODIAN
UMB Bank, n.a.
Kansas City, MO
* INDEPENDENT TRUSTEES
GROWTH FUNDS
Fidelity Advisor Overseas Fund
Fidelity Advisor Mid Cap Fund
Fidelity Advisor Equity Growth Fund
Fidelity Advisor Global Resources Fund
Fidelity Advisor Growth
Opportunities Fund
Fidelity Advisor Strategic
Opportunities Fund
Fidelity Advisor Large Cap Fund
GROWTH AND INCOME FUNDS
Fidelity Advisor Equity Income Fund
Fidelity Advisor Income & Growth Fund
TAXABLE 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 Intermediate Bond Fund
Fidelity Advisor Short Fixed-Income Fund
MUNICIPAL FUNDS
Fidelity Advisor High Income
Municipal Fund
Fidelity Advisor Intermediate Municipal Income Fund
Fidelity Advisor Short-Intermediate Municipal Income Fund
STATE MUNICIPAL FUNDS
Fidelity Advisor California Municipal Income Fund
Fidelity Advisor New York Municipal Income 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)

INTERMEDIATE MUNICIPAL INCOME FUND - INSTITUTIONAL CLASS
(FORMERLY FIDELITY ADVISOR LIMITED TERM
TAX-EXEMPT FUND - INSTITUTIONAL CLASS)
SEMIANNUAL REPORT
MAY 31, 1996
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 18 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.

NOTES 24 Notes to the financial statements.

Advisor Intermediate Municipal Income - -0.08% 4.24% 33.38% 88.07%
Institutional Class

Lehman Brothers 1-17 Year Municipal -0.10% 4.73% n/a n/a
Bond Index

Intermediate Municipal Debt Funds Average -0.20% 3.86% 36.17% 96.51%
</TABLE>
CUMULATIVE TOTAL RETURNS show Institutional Class' performance in
percentage terms over a set period - in this case, six months, one year,
five years, or 10 years. 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 1-17 Year Municipal Bond Index, which includes
investment-grade municipal bonds with maturities between one and 17 years.
To measure how Institutional Class' performance stacked up against its
peers, you can compare it to the intermediate municipal debt funds average,
which reflects the performance of 139 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.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED MAY 31, 1996 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS

Advisor Intermediate Municipal Income - 4.24% 5.93% 6.52%
Institutional Class

Lehman Brothers 1-17 Year Municipal 4.73% n/a n/a
Bond Index

Intermediate Municipal Debt Funds Average 3.86% 6.36% 6.97%

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.
$10,000 OVER 10 YEARS
IMAHDR PRASUN SHR__CHT 19960531 19960621 164802 S00000000000001
FA Int Muni Inc -CL I LB Municipal Bond
00089 LB015
1986/05/31 10000.00 10000.00
1986/06/30 10100.75 10095.40
1986/07/31 10126.44 10156.68
1986/08/31 10460.67 10611.39
1986/09/30 10504.74 10638.03
1986/10/31 10723.22 10821.75
1986/11/30 10813.68 11036.13
1986/12/31 10777.38 11005.67
1987/01/31 10969.79 11337.05
1987/02/28 11092.99 11392.82
1987/03/31 11035.02 11272.06
1987/04/30 10584.19 10706.43
1987/05/31 10577.60 10653.33
1987/06/30 10775.12 10966.11
1987/07/31 10901.51 11077.96
1987/08/31 10924.96 11102.89
1987/09/30 10576.35 10693.52
1987/10/31 10674.51 10731.38
1987/11/30 10919.07 11011.57
1987/12/31 11028.10 11171.35
1988/01/31 11423.56 11569.28
1988/02/29 11470.16 11691.56
1988/03/31 11302.46 11555.36
1988/04/30 11359.28 11643.18
1988/05/31 11395.22 11609.53
1988/06/30 11475.33 11779.38
1988/07/31 11535.03 11856.18
1988/08/31 11540.55 11866.61
1988/09/30 11667.19 12081.40
1988/10/31 11805.98 12294.63
1988/11/30 11767.57 12182.01
1988/12/31 11841.83 12306.64
1989/01/31 11961.67 12561.14
1989/02/28 11890.23 12417.81
1989/03/31 11852.52 12388.14
1989/04/30 12020.05 12682.23
1989/05/31 12199.54 12945.64
1989/06/30 12333.43 13121.44
1989/07/31 12456.51 13300.03
1989/08/31 12416.16 13169.82
1989/09/30 12413.70 13130.57
1989/10/31 12513.26 13291.16
1989/11/30 12650.17 13523.75
1989/12/31 12764.20 13634.38
1990/01/31 12722.56 13569.89
1990/02/28 12835.54 13691.34
1990/03/31 12857.40 13695.45
1990/04/30 12725.19 13596.29
1990/05/31 12957.19 13893.10
1990/06/30 13064.47 14015.22
1990/07/31 13222.13 14221.94
1990/08/31 13145.25 14015.44
1990/09/30 13180.46 14023.43
1990/10/31 13327.86 14277.81
1990/11/30 13540.51 14564.94
1990/12/31 13577.05 14628.30
1991/01/31 13728.65 14824.61
1991/02/28 13853.65 14953.58
1991/03/31 13862.95 14958.97
1991/04/30 13988.62 15158.67
1991/05/31 14100.69 15293.43
1991/06/30 14109.25 15278.29
1991/07/31 14250.58 15464.38
1991/08/31 14364.45 15668.04
1991/09/30 14452.49 15872.04
1991/10/31 14607.69 16014.89
1991/11/30 14644.50 16059.57
1991/12/31 14886.50 16404.21
1992/01/31 14990.49 16441.61
1992/02/29 15007.68 16446.87
1992/03/31 14950.30 16452.96
1992/04/30 15054.87 16599.39
1992/05/31 15219.99 16794.77
1992/06/30 15419.74 17076.58
1992/07/31 15751.83 17588.54
1992/08/31 15635.36 17417.05
1992/09/30 15781.40 17530.96
1992/10/31 15673.62 17358.63
1992/11/30 15963.29 17669.52
1992/12/31 15970.55 17849.93
1993/01/31 16171.64 18057.52
1993/02/28 16607.93 18710.66
1993/03/31 16446.76 18512.89
1993/04/30 16565.54 18699.68
1993/05/31 16638.53 18804.78
1993/06/30 16817.91 19118.63
1993/07/31 16857.04 19143.67
1993/08/31 17155.46 19542.25
1993/09/30 17337.15 19764.83
1993/10/31 17373.82 19802.98
1993/11/30 17242.46 19628.51
1993/12/31 17557.52 20042.87
1994/01/31 17724.34 20271.76
1994/02/28 17269.25 19746.72
1994/03/31 16598.56 18942.64
1994/04/30 16748.94 19103.27
1994/05/31 16902.41 19268.89
1994/06/30 16784.53 19151.16
1994/07/31 17022.05 19502.20
1994/08/31 17089.96 19569.68
1994/09/30 16885.07 19282.40
1994/10/31 16648.77 18939.94
1994/11/30 16305.60 18597.51
1994/12/31 16603.99 19006.84
1995/01/31 17007.48 19550.05
1995/02/28 17442.35 20118.57
1995/03/31 17636.98 20349.73
1995/04/30 17635.75 20373.75
1995/05/31 18042.44 21023.87
1995/06/30 17949.23 20839.91
1995/07/31 18087.67 21037.47
1995/08/31 18318.11 21304.23
1995/09/30 18439.41 21439.09
1995/10/31 18640.10 21750.81
1995/11/30 18822.80 22111.66
1995/12/31 18990.24 22324.15
1996/01/31 19121.45 22492.70
1996/02/29 19063.34 22340.87
1996/03/31 18879.77 22055.35
1996/04/30 18823.81 21992.94
1996/05/31 18807.09 21984.14
IMATRL PRASUN SHR__CHT 19960531 19960621 164807 R00000000000123

$10,000 OVER 10 YEARS: Let's say hypothetically that $10,000 was invested
in Fidelity Advisor Intermediate Municipal Income Fund - Institutional
Class on May 31, 1986. As the chart shows, by May 31, 1996, the value of
the investment would have grown to $18,807 - an 88.07% increase on the
initial investment. For comparison, look at how the Lehman Brothers
Municipal Bond Index, which reflects the performance of the
investment-grade bond market, did over the same period. With dividends
reinvested, the same $10,000 investment would have grown to $21,984 - a
119.84% 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
SIX MONTHS YEARS ENDED NOVEMBER 30,
ENDED
MAY 31,

1996 1995 1994 1993 1992 1991

Dividend return 2.33% 5.34% 4.44% 5.41% 6.42% 6.65%

Capital appreciation -2.41% 10.10% -9.87% 2.60% 2.59% 1.50%
return

Total return -0.08% 15.44% -5.43% 8.01% 9.01% 8.15%

<TABLE>
<CAPTION>
<S> <C> <C> <C>
PERIODS ENDED MAY 31, 1996 PAST PAST 6 PAST 1
MONTH MONTHS YEAR

Dividends per share 4.10(cents) 24.32(cents) 47.70(cents)

Annualized dividend rate 4.76% 4.71% 4.66%

30-day annualized yield 4.59% - -

30-day annualized tax-equivalent yield 7.17% - -

</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 $10.14
over the past month, $10.29 over the past six months and $10.24 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 36% federal tax bracket but does not reflect payment of the federal
alternative minimum tax, if applicable.
FUND TALK: THE MANAGER'S OVERVIEW

An interview with David Murphy, Portfolio Manager of Fidelity Advisor
Intermediate Municipal Income Fund
Q. HOW DID THE FUND PERFORM, DAVID?
A. For the six months ended May 31, 1996, the fund's Institutional Class
shares had total returns of -0.08%. For the past year, it returned 4.24%.
The intermediate municipal debt funds average, as tracked by Lipper
Analytical Services, was -0.20% for the past six months and 3.86% for the
year. Also, for comparative purposes, the Lehman Brothers 1-17 Year
Municipal Bond Index returned -0.10% over the past six months and 4.73%
over the past year.
Q. DAVE, WE UNDERSTAND THERE ARE GOING TO BE SOME INVESTMENT POLICY CHANGES
. . .
A. As of June 24, 1996, the fund will change some of its debt quality
policies as part of the standardization of quality policies for our
fixed-income funds. The fund will reserve the right to invest up to 5% of
its holdings in below investment-grade securities. We do not anticipate
that this change will have an impact as we do not intend to seek out below
investment-grade securities except under unusual circumstances. The
restriction limiting the fund's investments in the lowest tier of
investment-grade securities to 25% of its assets will be eliminated. This
will allow the fund increased flexibility to invest in the lowest tier of
investment-grade securities without significantly increasing the risk of
the fund. Finally, the fund will use two additional rating agencies - Duff
& Phelps Credit Rating Co. and Fitch Investors Service, as well as Moody's
Investors Service and Standard & Poor's which the fund already uses - to
determine the credit quality of the fund's bonds.
Q. WHAT'S THE MUNICIPAL BOND MARKET BEEN LIKE OVER THE PAST SIX MONTHS?
A. Bond prices have fallen and their yields have risen in response to
reports indicating surprising strength in the economy. Investors often
worry that a strong economy indicates the potential for inflation, which
erodes the value of fixed-income investments. For the municipal bond
market, however, I think performance relative to the U.S. Treasury market
was favorable because of fading fears of radical tax reform and healthy
demand from certain market participants, including insurance companies. To
get a sense of relative performance, it's worth examining the ratio of
municipal yields to Treasury yields - expressed in percentage terms. A move
from a higher percentage (an indication that municipals are cheap) to a
lower percentage (an indication they are more expensive) shows that
municipal bonds have outperformed Treasuries. Six months ago, the ratio for
10-year bonds stood at about 80%; today, it stands at about 75%.
Q. IN YOUR OPINION, WHICH HOLDINGS CONTRIBUTED THE MOST TO THE FUND'S
PERFORMANCE?
A. Over the past year, I have built a position in New York City bonds. In
the past six months, these bonds have performed well relative to other
general obligation bonds of similar maturities and credit qualities - and
made a significant contribution to the fund's return.
Q. AREN'T YOU WORRIED ABOUT NEW YORK STATE BEING TWO MONTHS LATE IN
DELIVERING A BUDGET AND WHAT THAT MEANS FOR NEW YORK CITY IN TERMS OF LOST
STATE AID?
A. Getting a budget passed on time in New York is about as quick and easy
as driving through rush hour in mid-town Manhattan. With that in mind, most
of the local issuers traditionally have been prepared to deal with budget
delays, so the payments on their bonds are not affected. At the same time,
the political posturing and budgetary hand-wringing in Albany have resulted
in a drop off in the issuance of state-appropriated debt. During the
period, this was a positive development for existing state-appropriated
bonds.
Q. WHAT WAS ANOTHER AREA OF THE MARKET YOU LIKED?
A. Student loan bonds. These high-quality bonds have historically traded at
yields higher than many other municipal bonds. During the period, these
bonds performed relatively well as more municipal investors recognized
their attractiveness.
Q. IN YOUR LAST REPORT, YOU DISCUSSED THE MERITS OF MUNICIPAL BONDS FROM
CALIFORNIA AND TEXAS. DID YOU STILL KEEP SIGNIFICANT PORTIONS OF THE FUND'S
ASSETS IN THESE STATES?
A. Yes, I did. In California, tax receipts came in above and beyond
projections - which is certainly a reassuring development for a municipal
bond investor. Rising tax receipts in Texas also confirmed that the Lone
Star State's economy was growing at a healthy pace. While each state's
economy was driven by growth in different key industries - technology and
entertainment in California, and oil and oil services in Texas - both
states benefited from trade created by the North American Free Trade
Agreement.
Q. WERE THERE ANY DISAPPOINTMENTS?
A. As a rule, bonds with longer maturities are more sensitive to changes in
interest rates. Therefore, the fund's longer-term holdings were hurt more
than its shorter-term holdings when interest rates went up earlier this
year.
Q. EARLY IN 1996, THE FUND'S INVESTMENT POLICY WAS CHANGED IN ORDER TO
ALLOW IT TO HOLD ANY AMOUNT OF BONDS SUBJECT TO THE ALTERNATIVE MINIMUM TAX
(AMT). AS A RESULT, DID YOU ADD ANY AMT BONDS DURING THE PERIOD?
A. The fund's AMT position now stands at 11.8% of investments, up from
10.1% six months ago. AMT securities are issued by municipalities to
finance private activity, such as airports, multi-family housing and
industrial development. These securities typically offer higher yields than
other municipal securities of comparable maturity without necessarily
involving higher credit risk. While the investment policy change allows the
fund to invest up to 100% of its assets in AMT bonds, the possibility of
that occurring is highly unlikely.
Q. WHAT'S YOUR OUTLOOK?
A. I have a reasonably positive outlook. A spate of new issuance earlier
this year raised the overall level of supply of municipal bonds in the
market. With the rise in interest rates in 1996, however, issuance is
expected to fall - thus lowering the number of bonds in the market. Also,
an expected $60 billion in cash from coupon payments and redemptions are
expected to hit the market in June and July. Although a good supply/demand
scenario may be positive for the market, the attractiveness of the taxable
markets relative to municipals will play a big role in whether or not
buyers will want to add to their holdings in the municipal bond market.
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, 1996,
more than $81 million
MANAGER: David Murphy,
since March 1995; joined
Fidelity in 1989
(checkmark)
DAVID MURPHY ON THE BENEFITS OF
A BARBELLED COUPON STRUCTURE:
"One of my fundamental
strategies in managing the
fund is maintaining a barbelled
coupon structure - that is,
owning premium-coupon
bonds as well as
discount-coupon bonds.
Historically, premium-coupon
bonds - which pay higher
annual income than newly
issued bonds - offer
downside protection should
the market fall. Discount
coupon bonds - with annual
income lower than newly
issued bonds - offer price
appreciation potential should
the market rally. As either of
these types of bonds move
close to par (face value), I
attempt to sell them and
replace them with premium or
discount bonds. Therefore, I
am continuously adjusting the
portfolio's coupon structure."
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER,
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.
INVESTMENT CHANGES

TOP FIVE STATES AS OF MAY 31, 1996
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE STATES
6 MONTHS AGO

California 17.5 11.8

Texas 14.1 10.1

New York 7.6 5.7

Massachusetts 6.1 7.1

Florida 5.7 6.6

TOP FIVE SECTORS AS OF MAY 31, 1996
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE SECTORS
6 MONTHS AGO

General Obligation 24.8 21.7

Education 17.3 18.8

Electric Revenue 16.2 11.4

Health Care 7.5 9.3

Transportation 7.1 8.9

AVERAGE YEARS TO MATURITY AS OF MAY 31, 1996
6 MONTHS AGO

Years 8.5 8.6

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, 1996
6 MONTHS AGO

Years 6.0 6.2

Showing Percentage of Total Value of Investment in Securities

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
MAY 31, 1996 (UNAUDITED)

ASSETS

Investment in securities, at value (cost $82,609,958) - $ 82,980,080
See accompanying schedule

Cash 49,928

Interest receivable 1,297,046

TOTAL ASSETS 84,327,054

LIABILITIES

Payable for investments purchased $ 3,009,439
Delayed delivery

Payable for fund shares redeemed 60,910

Distributions payable 128,261

Accrued management fee 27,571

Distribution fees payable 16,932

Other payables and accrued expenses 36,244

TOTAL LIABILITIES 3,279,357

NET ASSETS $ 81,047,697

Net Assets consist of:

Paid in capital $ 81,832,603

Accumulated undistributed net realized gain (loss) on (1,155,028)
investments

Net unrealized appreciation (depreciation) on 370,122
investments

NET ASSETS $ 81,047,697

CALCULATION OF MAXIMUM OFFERING PRICE $10.12
CLASS A:
NET ASSET VALUE and redemption price per share
($61,574,748 (divided by) 6,086,439 shares)

Maximum offering price per share (100/97.25 of $10.12) $10.41

CLASS B: $10.11
NET ASSET VALUE and offering price per share
($7,286,374 (divided by) 720,855 shares) A

INSTITUTIONAL CLASS: $10.11
NET ASSET VALUE, offering price and redemption price
per share ($12,186,575 (divided by) 1,205,218 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, 1996 (UNAUDITED)

INTEREST INCOME $ 2,186,791

EXPENSES

Management fee $ 162,302

Transfer agent fees 61,930
Class A

Class B 6,923

Institutional Class 8,964

Distribution fees 79,290
Class A

Class B 32,014

Accounting fees and expenses 31,025

Non-interested trustees' compensation 145

Custodian fees and expenses 3,645

Registration fees 9,817
Class A

Class B 12,572

Institutional Class 10,911

Audit 18,588

Legal 2,892

Miscellaneous 5,896

Total expenses before reductions 446,914

Expense reductions (32,017) 414,897

NET INTEREST INCOME 1,771,894

REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:

Investment securities 425,927

Futures contracts (92,092) 333,835

Change in net unrealized appreciation (depreciation) on:

Investment securities (2,501,425)

Futures contracts 45,806 (2,455,619)

NET GAIN (LOSS) (2,121,784)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ (349,890)
FROM OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR ENDED
ENDED MAY 31, NOVEMBER 30,
1996 1995
(UNAUDITED)

INCREASE (DECREASE) IN NET ASSETS

Operations $ 1,771,894 $ 3,326,767
Net interest income

Net realized gain (loss) 333,835 (744,356)

Change in net unrealized appreciation (depreciation) (2,455,619) 7,892,460

NET INCREASE (DECREASE) IN NET ASSETS RESULTING (349,890) 10,474,871
FROM OPERATIONS

Distributions to shareholders (1,377,421) (2,650,307)
From net interest income
Class A

Class B (130,029) (141,667)

Institutional Class (264,444) (534,793)

TOTAL DISTRIBUTIONS (1,771,894) (3,326,767)

Share transactions - net increase (decrease) 3,006,016 2,248,880

TOTAL INCREASE (DECREASE) IN NET ASSETS 884,232 9,396,984

NET ASSETS

Beginning of period 80,163,465 70,766,481

End of period $ 81,047,697 $ 80,163,465

</TABLE>

FINANCIAL HIGHLIGHTS - CLASS A
SIX MONTHS YEARS ENDED NOVEMBER 30,
ENDED MAY 31,
1996

(UNAUDITED) 1995 1994 E 1993 1992 D

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

Net asset value, beginning $ 10.380 $ 9.400 $ 10.460 $ 11.080 $ 11.010
of period

Income from Investment
Operations

Net interest income .229 .451 .455 .508 .131

Net realized and unrealized (.260) .980 (1.040) .260 .070

gain (loss)

Total from investment (.031) 1.431 (.585) .768 .201
operations

Less Distributions

From net interest income (.229) (.451) (.455) (.508) (.131)

From net realized gain - - - (.880) -

In excess of net realized - - (.020) - -
gain

Total distributions (.229) (.451) (.475) (1.388) (.131)

Net asset value, end of $ 10.120 $ 10.380 $ 9.400 $ 10.460 $ 11.080
period

TOTAL RETURN B, C (.31)% 15.49% (5.78)% 7.72% 1.37%

RATIOS AND SUPPLEMENTAL
DATA

Net assets, end of period $ 61,575 $ 62,852 $ 57,382 $ 39,800 $ 1,752
(000 omitted)

Ratio of expenses to average 1.00% A, .94% .90% .90% 1.04% A,
F F F F F
net assets

Ratio of expenses to average .99% A, .94% .90% .90% 1.04% A
G
net assets after expense
reductions

Ratio of net interest income 4.34% A 4.56% 4.49% 4.76% 5.65% A
to average net assets

Portfolio turnover rate 33% A 53% 53% 46% 36%

</TABLE>

(UNAUDITED) 1995 1994 D

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

Net asset value, beginning of period $ 10.380 $ 9.400 $ 9.890

Income from Investment Operations

Net interest income .196 .373 .155

Net realized and unrealized gain (loss) (.270) .980 (.490)

Total from investment operations (.074) 1.353 (.335)

Less Distributions

From net interest income (.196) (.373) (.155)

Net asset value, end of period $ 10.110 $ 10.380 $ 9.400

TOTAL RETURN B, C (.73)% 14.60% (3.44)%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 7,286 $ 6,226 $ 1,682

Ratio of expenses to average net assets 1.66% A, 1.68% E 1.65% A,
E E

Ratio of net interest income to average net assets 3.72% A 3.71% 3.74% A

Portfolio turnover rate 33% A 53% 53%

</TABLE>

(UNAUDITED) 1995 1994 D 1993 1992 1991

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

Net asset value, $ 10.360 $ 9.410 $ 10.460 $ 11.080 $ 10.800 $ 10.640
beginning of period

Income from Investment
Operations

Net interest income .243 .477 .481 .536 .666 .682

Net realized and (.250) .950 (1.030) .260 .280 .160
unrealized gain
(loss)

Total from investment (.007) 1.427 (.549) .796 .946 .842
operations

Less Distributions

From net interest (.243) (.477) (.481) (.536) (.666) (.682)
income

From net realized gain - - - (.880) - -

In excess of net - - (.020) - - -
realized gain

Total distributions (.243) (.477) (.501) (1.416) (.666) (.682)

Net asset value, $ 10.110 $ 10.360 $ 9.410 $ 10.460 $ 11.080 $ 10.800
end of period

TOTAL RETURN B, C (.08)% 15.44% (5.43)% 8.01% 9.01% 8.15%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period $ 12,187 $ 11,085 $ 11,702 $ 15,076 $ 28,428 $ 100,294
(000 omitted)

Ratio of expenses to .75% A, .70% .65% .65% .66% .61%
average net assets E E E E E

Ratio of expenses to .73% A, .70% .65% .65% .66% .61%
average net assets F
after expense
reductions

Ratio of net interest 4.62% A 4.96% 4.75% 5.01% 6.05% 6.40%
income to average
net assets

Portfolio turnover rate 33% A 53% 53% 46% 36% 20%

</TABLE>

(2_FIDELITY_LOGOS)FIDELITY ADVISOR
(registered trademark)

SHORT-INTERMEDIATE
MUNICIPAL INCOME
FUND - CLASS A
(FORMERLY FIDELITY ADVISOR SHORT-INTERMEDIATE TAX-EXEMPT FUND - CLASS A)
SEMIANNUAL REPORT
MAY 31, 1996
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 20 Notes to the financial statements.

DEAR SHAREHOLDER:
Although stocks have managed to post solid returns through the first five
months of 1996, signs of strength in the economy have led to inflation
fears, causing some uncertainty in bond markets so far this year. In 1995,
both stock and bond markets posted strong results, while the year before,
stocks posted below-average returns and bonds had one of the worst years in
history.
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 SHORT-INTERMEDIATE MUNICIPAL INCOME FUND - CLASS A
PERFORMANCE: THE BOTTOM LINE

Advisor Short-Intermediate Municipal Income 0.70% 4.13% 10.45%
Fund - Class A

Advisor Short-Intermediate Municipal Income Fund - -0.81% 2.57% 8.79%
Class A (incl. max. 1.50% sales charge)

Lehman Brothers 1-5 Year Municipal Bond Index 1.11% 4.67% n/a

Short-Intermediate Municipal Debt Funds Average 0.58% 3.71% n/a
</TABLE>
CUMULATIVE TOTAL RETURNS show Class A'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 Class A's returns to the performance of the
Lehman Brothers 1-5 Year Municipal Bond Index, which includes
investment-grade municipal bonds with maturities between one and five
years. To measure how Class A's performance stacked up against its peers,
you can compare it to the short-intermediate municipal debt funds average,
which reflects the performance of 24 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.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED MAY 31, 1996 PAST 1 LIFE OF
YEAR FUND

Advisor Short-Intermediate Municipal Income Fund - 4.13% 4.59%
Class A

Advisor Short-Intermediate Municipal Income Fund - 2.57% 3.88%
Class A (incl. max. 1.50% sales charge)

Lehman Brothers 1-5 Year Municipal Bond Index 4.67% n/a

Short-Intermediate Municipal Debt Funds Average 3.71% n/a

AVERAGE ANNUAL TOTAL RETURNS take Class A's 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
IMAHDR PRASUN SHR__CHT 19960531 19960624 141905 S00000000000001
FA Sht. Int. Muni Cl A LB Muni Bond
00636 LB015
1994/03/31 9850.00 10000.00
1994/04/30 9873.66 10084.80
1994/05/31 9890.94 10172.24
1994/06/30 9911.64 10110.08
1994/07/31 9992.26 10295.40
1994/08/31 10024.82 10331.02
1994/09/30 9997.13 10179.36
1994/10/31 9962.73 9998.58
1994/11/30 9898.29 9817.80
1994/12/31 9995.49 10033.89
1995/01/31 10133.68 10320.66
1995/02/28 10239.13 10620.79
1995/03/31 10309.05 10742.82
1995/04/30 10326.92 10755.50
1995/05/31 10469.99 11098.70
1995/06/30 10466.31 11001.59
1995/07/31 10556.16 11105.89
1995/08/31 10656.08 11246.71
1995/09/30 10692.36 11317.90
1995/10/31 10759.99 11482.46
1995/11/30 10826.60 11672.96
1995/12/31 10863.04 11785.13
1996/01/31 10942.04 11874.11
1996/02/29 10944.42 11793.96
1996/03/31 10894.93 11643.23
1996/04/30 10897.90 11610.28
1996/05/31 10902.74 11605.64
IMATRL PRASUN SHR__CHT 19960531 19960624 141906 R00000000000020

$10,000 OVER LIFE OF FUND: Let's say hypothetically that $10,000 was
invested in Fidelity Advisor Short-Intermediate Municipal Income Fund -
Class A on March 31, 1994, shortly after the fund started, and the maximum
1.50% sales charge was paid. As the chart shows, by May 31, 1996, the value
of the investment would have grown to $10,903 - a 9.03% increase on the
initial investment. For comparison, look at how the Lehman Brothers
Municipal Bond Index, which reflects the performance of the
investment-grade municipal bond market, did over the same period. With
dividends reinvested, the same $10,000 investment would have grown to
$11,606 - a 16.06% 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
SIX MONTHS YEAR ENDED MARCH 16, 1994
ENDED NOVEMBER (COMMENCEMENT
MAY 31, 30, 1995 OF
1996 OPERATIONS) TO
NOVEMBER 30,
1994

Dividend return 1.97% 4.57% 2.57%

Capital appreciation return -1.27% 4.81% -2.30%

Total return 0.70% 9.38% 0.27%

DIVIDEND returns and capital appreciation returns are both part of a
class's 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>
PERIODS ENDED MAY 31, 1996 PAST PAST 6 PAST 1
MONTH MONTHS YEAR

Dividends per share 3.45(cents) 20.19(cents) 41.28(cents)

Annualized dividend rate 4.02% 3.96% 4.06%

30-day annualized yield 3.82% - -

30-day annualized tax-equivalent yield 5.97% - -

</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 $10.10
over the past month, $10.17 over the past six months and $10.16 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. The offering share price used in the calculation of the
yield includes the effect of Class A's maximum 1.50% 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 36% federal
tax bracket, but does not reflect payment of the federal alternative
minimum tax, if applicable. If Fidelity had not reimbursed certain class
expenses during the period shown, the yield and tax-equivalent yield would
have been 3.76% and 5.88%, respectively.
FUND TALK: THE MANAGER'S OVERVIEW

An interview with Norm Lind, Portfolio Manager of Fidelity Advisor
Short-Intermediate Municipal Income Fund
Q. HOW DID THE FUND PERFORM, NORM?
A. Fairly well. For the six months ended May 31, 1996, the fund's Class A
shares returned 0.70%, compared to a total return of 0.58% for the
short-intermediate municipal debt funds average, according to Lipper
Analytical Services, and 1.11% for the Lehman Brothers 1-5 year Municipal
Bond Index. For the 12 months ended May 31, 1996, the Class A shares
returned 4.13%, compared to 3.71% for the Lipper average and 4.67% for the
index.
Q. WHAT WAS THE INVESTING ENVIRONMENT LIKE DURING THE PERIOD?
A. Well, we'd seen a fair amount of steepening of the yield curve coming
into the period, where yields on longer-term securities had risen compared
to shorter ones. That situation began to reverse itself in the early part
of 1996, for a couple of reasons. First, prices on longer securities rose
as investors recognized the pricing imbalance between shorter and longer
securities. That's typical of the ebb and flow of the municipal market -
over time, the market tends to sort out these kinds of imbalances and
minimize pricing discrepancies. The other factor was a changing attitude
toward tax reform. Municipal buyers concluded that any reform was not
likely to happen for at least a couple of years, which meant that the
shorter end of the market looked like somewhat of a safe haven. As tax
reform fears eased during the period, the longer end of the market looked
more attractive than it had been, which contributed to the flattening of
the yield curve.
Q. GIVEN ALL THAT, HOW DID YOU STRUCTURE THE PORTFOLIO OVER THE PERIOD?
A. We clearly benefited from the barbell structure that had been in place
at the beginning of the period. The fund was overweighted in both the
shortest part of the market - securities with maturities of 0-1 years - and
the longest part - between 5-7 years. The shorter securities provided some
downside protection while the yield curve was steepening, and when it
flattened back out, the fund's longer positions generated solid
performance.
Q. HADN'T YOU BEEN ADJUSTING THE STRUCTURE OF THE PORTFOLIO TO INCLUDE MORE
BONDS IN THE MIDDLE OF THE YIELD CURVE?
A. Yes, but that's an ongoing process. Over the period, the fund did
continue to move toward more of a laddered structure. That's where the
fund's investments are spread more evenly throughout the yield curve. I had
to be sensitive to the market, because making dramatic changes to the
portfolio can hurt performance. For example, student loan bonds were an
important part of the portfolio during the period, and they
have tended to be securities in the 5-7 year range. I would have had to
aggressively sell those bonds to alter the fund's structure more quickly,
and I wouldn't have been comfortable doing that.
Q. WHY IS THAT?
A. Many student loan bonds are candidates for prepayment calls, similar to
the mortgage securities market. When yields fall, bonds are often prepaid,
so you may have to reinvest the proceeds at lower rates. The municipal
market tends to look at all student loan bonds as having risk of
prepayment, even ones that are non-callable. As a result, they can offer
yields that are considerably higher than similarly rated non-student-loan
bonds. The key is to keep closely in touch with how the market values these
bonds and know when buying or selling opportunities are there, rather than
simply selling them to move into the middle range of the yield curve.
Q. THERE WAS A HEAVY CONCENTRATION OF BONDS IN THE STATE OF TEXAS DURING
THE PERIOD. WHY HAVE YOU FOCUSED THERE?
A. I think Texas has a very good program in what's known as permanent
school fund bonds. That program was set up as a financing vehicle for local
school districts. The level of collateral backing these bonds makes their
credit quality very high, in my opinion. The program typically issues bonds
in the shorter end of the yield curve, so it's attractive for this
portfolio, and the deals are fairly small and not heavily publicized.
Overall, they've done very well for the fund, and I maintained a high
weighting in them over the period.
Q. DID THE FUND HAVE ANY DISAPPOINTMENTS IN THE PERIOD?
A. My biggest one is that I wish I had owned more BBB-rated securities
early in the period - for example, New York City bonds. It would have been
helpful for the fund to have been more heavily weighted in the lower-rated
end of the market because during the period, credit spreads tightened. This
caused lower-rated securities, such as those in New York, to outperform
other areas. I also would have liked to have had more exposure to
California bonds. The state's improving economy was rewarded with good
performance in bonds related to its credit quality, and we would have done
well to have taken better advantage of that improving situation.
Q. WHAT'S YOUR OUTLOOK FOR THE NEXT FEW MONTHS?
A. In general, I think the municipal market is priced quite fairly right
now. That would seem to imply that there won't be too much change,
especially in the short and intermediate part of the market. I'll continue
to look for value in the middle of our part of the yield curve, and be open
to opportunities to add yield by investing in the BBB-rated portion of the
market.
Q. WE UNDERSTAND THERE WILL BE SOME CHANGES TO THE FUND'S INVESTMENT
POLICIES . . .
A. As of June 24, 1996, the fund will change some of its debt quality
policies as part of the standardization of quality policies for our
fixed-income funds. The fund will continue to reserve the right to invest
up to 5% in below investment-grade securities; however the restriction
limiting the fund's investments in the lowest tier of investment-grade
securities to 40% of its assets will be eliminated. This will allow the
fund increased flexibility to invest in the lowest tier of investment-grade
securities without significantly increasing the risk of the fund. In
addition, the restriction prohibiting the fund from investing in securities
below a certain quality level has been removed. We do not anticipate that
this change will have an impact as we do not intend to seek out below
investment-grade securities except under unusual circumstances. Finally,
FMR will use the ratings of Duff & Phelps Credit Rating Co., Fitch
Investors Service, Moody's Investors Service, and Standard & Poor's if a
security is rated by one of these rating agencies rather than rely solely
on the credit quality determination of FMR.
FUND FACTS
GOAL: to seek as high a level
of current income, exempt
from federal income tax, as
is consistent with the
preservation of capital
START DATE: March 16, 1994
SIZE: as of May 31, 1996,
more than $30 million
MANAGER: Norm Lind, since
October 1, 1995; manager,
Fidelity Advisor New York
Municipal Income Fund,
since August 1995; joined
Fidelity in 1986
(checkmark)
NORM LIND ON PRE-REFUNDED
BONDS:
"Pre-refunded bonds are an
interesting part of the
municipal market. The way
they work is that an issuer will
come to the market looking
to refinance a callable bond
before its call date. The bond
gets backed by a basket of
U.S. Treasury securities that
acts as an escrow account for
the bond. This basket is set
up specifically to repay the
principal and interest of the
original bond, generally to its
call date. Now the bond is no
longer an obligation of the
issuing authority, but is strictly
an obligation of the escrow
account. The end result is that
the bond becomes an AAA,
Treasury-quality security. One
immediate benefit is that the
security is extremely liquid,
so it's a very useful tool if the
fund needs to raise cash.
Also, there are times when
imbalances can occur
between issues or between
similar pre-refunded bonds in
different states that can
create good trading
opportunities for the fund.
We've had good success so
far in taking advantage of the
unique characteristics of
pre-refunded bonds, and I
think it's an area that can
continue to add value to the
fund."
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.
INVESTMENT CHANGES

TOP FIVE STATES AS OF MAY 31, 1996
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE STATES
6 MONTHS AGO

Texas 22.3 22.0

New York 10.1 9.6

California 8.2 5.4

Massachusetts 8.0 3.0

Pennsylvania 6.5 5.2

TOP FIVE MARKET SECTORS AS OF MAY 31, 1996
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE MARKET SECTORS

6 MONTHS AGO

General Obligation 30.5 30.4

Education 17.3 18.0

Electric Revenue 15.9 13.2

Escrowed/Pre-Refunded 15.6 11.7

Industrial Development 4.1 7.0

AVERAGE YEARS TO MATURITY AS OF MAY 31, 1996
6 MONTHS AGO

Years 3.3 3.4

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, 1996
6 MONTHS AGO

Years 2.7 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, 1996 AS OF NOVEMBER 30, 1995
Aaa 53.7%
Aa, A 29.7%
Baa 12.5%
Non-rated 0.0%
Short-term
investments 4.1%
Aaa 47.6%
Aa, A 33.1%
Baa 5.9%
Non-rated 3.0%
Short-term
investments 10.4%
Row: 1, Col: 1, Value: 4.1
Row: 1, Col: 2, Value: 12.5
Row: 1, Col: 3, Value: 29.7
Row: 1, Col: 4, Value: 23.7
Row: 1, Col: 5, Value: 30.0
Row: 1, Col: 1, Value: 10.4
Row: 1, Col: 2, Value: 3.0
Row: 1, Col: 3, Value: 5.9
Row: 1, Col: 4, Value: 33.1
Row: 1, Col: 5, Value: 47.6
WHERE MOODY'S RATINGS ARE NOT AVAILABLE, WE HAVE USED S&P RATINGS.
INVESTMENTS MAY 31, 1996 (UNAUDITED)

Showing Percentage of Total Value of Investment in Securities

MUNICIPAL BONDS - 95.9%
PRINCIPAL VALUE
AMOUNT (NOTE 1)
ALABAMA - 0.6%
Mobile Board of Wtr. & Swr. Commissioners Wtr. Svc. Rev.
9.875% 1/1/98, (Escrowed to Maturity) (b) $ 175,000 $ 190,091
ALASKA - 2.3%
Alaska Student Loan Corp. Rev. Series A, 7.20% 7/1/99,
(AMBAC Insured) (a) 500,000 530,000
North Slope Borough (Cap. Appreciation) Series A,
0% 6/30/99, (MBIA Insured) 250,000 215,625
745,625
ARIZONA - 3.2%
Maricopa County Unified School Dist. #97 (Deer Valley)
Series C, 6.20% 7/1/99, (AMBAC Insured)
(Pre-Refunded to 7/1/97 @101) (b) 1,000,000 1,035,080
CALIFORNIA - 8.2%
California Rural Home Mtg. Fin. Auth. Lease Rev.
Series A, 4.45% 8/1/01, (MBIA Insured) 1,000,000 987,500
Central Valley Fing. Auth. Rev. (Carson Ice
Generation Proj.) 5% 7/1/98 1,000,000 996,250
West Covina Ctfs. of Prtn. (Queen of the Valley Hosp.)
5.10% 8/15/96 630,000 630,567
2,614,317
COLORADO - 3.2%
Aurora Ctfs. of Prtn. Rfdg. 4.75% 12/1/96 500,000 501,645
Denver City & County Arpt. Rev. Series A (a):
6.60% 11/15/97 250,000 254,688
6.90% 11/15/98 250,000 258,750
1,015,083
FLORIDA - 5.0%
Dade County School Dist. Series #95,
6.875% 8/1/00, (MBIA Insured) 1,000,000 1,077,500
Lakeland Elec. & Wtr. Rev. Rfdg. (Jr. Sub. Lien)
6.25% 10/1/01, (FGIC Insured) (c) 500,000 531,875
1,609,375
INDIANA - 2.2%
Indianapolis Local Pub. Impt. (Cap. Appreciation) Series D,
0% 2/1/18, (Pre-Refunded to 2/1/98 @ 19.12) (b) 1,000,000 177,500
Indianapolis Resource Recovery Rev. (Ogden Martin Sys. Proj.)
6.50% 12/1/01, (AMBAC Insured) (c) 500,000 531,875
709,375
LOUISIANA - 5.6%
Louisiana Gen. Oblig. 6% 8/1/01, (FGIC Insured) 500,000 523,750
Louisiana Pub. Facs. Auth. Rev. Student Loan Sr.
Series A-1, 6.20% 3/01/01 1,200,000 1,252,500
1,776,250
MUNICIPAL BONDS - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
MASSACHUSETTS - 8.0%
Massachusetts Wtr. Resources Auth. Series A, 7.50% 4/1/09,
(Pre-Refunded to 4/1/00 @ 102) (b) $ 1,800,000 $ 2,007,000
New England Ed. Loan Marketing Corp. Rev. Rfdg.
(Massachusetts Student Loan) Sr. Issue Series A, 6.50% 9/1/02 500,000
535,000
2,542,000
MINNESOTA - 0.4%
Minneapolis (Cap. Appreciation) Series B, 0% 12/1/02 200,000 143,250
MONTANA - 4.2%
Montana Higher Ed. Student Asst. Corp. Rev. Student Loan
Series B, 6.60% 12/1/99 (a) 1,300,000 1,356,875
NEVADA - 2.5%
Clark County School Dist. Series A, 9.75% 6/1/01,
(MBIA Insured) 500,000 604,375
Washoe County (Reno Sparks Convention Bowling Fac.)
Series A, 8.50% 7/1/97, (FGIC Insured) 200,000 209,300
813,675
NEW JERSEY - 0.7%
Somerset County Unltd. Tax Series B, 6.50% 11/1/97 230,000 238,050
NEW MEXICO - 0.8%
Albuquerque New Mexico Arpt. Rev. Rfdg.
6.25% 7/1/00, (AMBAC Insured) (a)(c) 250,000 256,563
NEW YORK - 10.1%
New York City Muni. Assistance Corp. 5.50% 7/1/00 1,000,000 1,027,500
New York City Rfdg. Series H, 7.875% 8/1/00 1,000,000 1,088,750
New York State Local Gov't. Assistance Corp. Series A,
7% 4/1/16, (Pre-Refunded to 4/1/01 @ 102) (b) 1,000,000 1,113,750
3,230,000
NORTH CAROLINA - 2.4%
North Carolina Muni. Pwr. Agcy. Rev. Rfdg.
(Proj. #1 Catawba Elec.) 5.75% 1/1/02 750,000 757,500
OHIO - 4.2%
Columbus Wtrwks. & Swr. Impt. Unltd. Tax (Variable Purp.)
12% 5/15/98 270,000 307,125
Sylvania City School Dist. 6.35% 12/1/97, (FGIC Insured) 1,000,000
1,030,000
1,337,125
PENNSYLVANIA - 6.5%
Allegheny County Ind. Dev. Auth. Rev. Rfdg. (Environmental
Impt. USX-Marathon Corp.) Series B, 5.30% 12/1/96 1,000,000 1,001,140
Pennsylvania Convention Ctr. Auth. Rev. Rfdg.
Series A, 5.75% 9/1/99 410,000 411,025
Pennsylvania Higher Edl. Facs. Health Svc. Rev. Series A,
(Presbyterian Med. Ctr. Proj.) 5.125% 1/1/01 650,000 654,875
2,067,040
MUNICIPAL BONDS - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
SOUTH CAROLINA - 5.0%
South Carolina Ed. Assistance Auth. Rev.
(Insured Student Loan) (a):
5.90% 9/1/98 $ 300,000 $ 307,500
6.10% 9/1/98 1,000,000 1,030,000
South Carolina Pub. Svc. Auth. Rev. Rfdg.
Series A, 6% 1/1/97, (MBIA Insured) 250,000 252,833
1,590,333
TEXAS - 19.1%
Austin Independent School Dist. School Bldg.
8.125% 8/1/01, (PSF Guaranteed) 500,000 571,875
Austin Pub. Impt. 7% 9/1/01 1,000,000 1,098,750
Brazos Higher Ed. Auth. Student Loan Rev. Rfdg.
Series A-1, 6.05% 12/1/01 (a) 500,000 523,125
Northside Independent School Dist. School Bldg.
8.375% 2/1/00, (PSF Guaranteed) 500,000 560,000
Plano Independent School Dist. 8.625% 2/15/03, (FGIC
Insured) (Pre-Refunded to 2/15/01 @ 100) (b) 400,000 462,500
Round Rock Texas Rfdg. 6.40% 8/1/98, (FGIC Insured) 770,000 786,363
San Antonio Elec. & Gas Rev. 6.40% 2/1/98 1,000,000 1,012,870
Texas Veterans Hsg. Assistance Series B-4, 5% 12/1/97 (a) 400,000 405,500
United Independent School Dist. Ultd. Tax
7.75% 8/15/98, (PSF Guaranteed) 650,000 694,688
6,115,671
WASHINGTON - 1.7%
Washington Pub. Pwr. Supply Sys.Rev. Rfdg.
(Nuclear Proj. #1) Series A, 7.25% 7/1/99 500,000 530,000
TOTAL MUNICIPAL BONDS (Cost $30,589,035) 30,673,278
MUNICIPAL NOTES (D) - 4.1.%
LOUISIANA - 0.6%
Plaquemines Parish Environmental Rev. (BP Exploration &
Oil, Inc. Proj.) Series 1994, 4.10%, VRDN (a) 200,000 200,000
TEXAS - 3.2%
Brazos River Auth. Poll. Cont. Rev. Rfdg. Texas Utils.
Elec. Co. Proj.):
Series 1995-A, 4%, LOC Morgan Guaranty
Trust Co., VRDN (a) 400,000 400,000
Series 1995 C, 4.10%, LOC Swiss Bank, VRDN (a) 200,000 200,000
Series 1996-A, 4%, (AMBAC Insured) BPA
Bank of New York, VRDN (a) 400,000 400,000
1,000,000
MUNICIPAL NOTES (D) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
VIRGINIA - 0.3%
Southampton County Ind. Dev. Auth. Facs. Rev. (Hadson
Pwr. #11-Southampton Proj.) Series 1990-A,
3.95%, LOC Credit Suisse, VRDN (a) $ 100,000 $ 100,000
TOTAL MUNICIPAL NOTES (Cost $1,300,000) 1,300,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $31,889,035) $ 31,973,278
SECURITY TYPE ABBREVIATIONS
VRDN - Variable Rate Demand Notes
LEGEND
(1.) Private activity obligations whose interest is subject to the federal
alternative minimum tax for individuals.
(2.) Security collateralized by an amount sufficient to pay interest and
principal.
(3.) Security purchased on a delayed delivery basis (see Note 2 of Notes to
Financial Statements).
(4.) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
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 78.6% AAA, AA, A 71.9%
Baa 9.4% BBB 9.4%
Ba 0.0% BB 3.1%
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 30.5%
Education 17.3
Electric Revenue 15.9
Escrowed/Pre-Refunded 15.6
Others (individually less than 5%) 20.7
TOTAL 100.0%
INCOME TAX INFORMATION
At May 31, 1996, the aggregate cost of investment securities for income tax
purposes was $31,889,035. Net unrealized appreciation aggregated $84,243,
of which $200,940 related to appreciated investment securities and $116,697
related to depreciated investment securities.
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
MAY 31, 1996 (UNAUDITED)

ASSETS

Investment in securities, at value (cost $31,889,035) - $ 31,973,278
See accompanying schedule

Interest receivable 565,418

Prepaid expenses 1,859

Receivable from investment adviser for expense 356
reductions

TOTAL ASSETS 32,540,911

LIABILITIES

Payable to custodian bank $ 5,763

Payable for investments purchased 530,163
Regular delivery

Delayed delivery 1,295,139

Distributions payable 14,212

Distribution fees payable 3,706

Other payables and accrued expenses 25,023

TOTAL LIABILITIES 1,874,006

NET ASSETS $ 30,666,905

Net Assets consist of:

Paid in capital $ 30,508,270

Accumulated undistributed net realized gain (loss) on 74,392
investments

Net unrealized appreciation (depreciation) on 84,243
investments

NET ASSETS $ 30,666,905

CALCULATION OF MAXIMUM OFFERING PRICE $10.08
CLASS A:
NET ASSET VALUE, and redemption price per share
($30,296,145 (divided by) 3,004,397 shares)

Maximum offering price per share (100/98.50 of $10.08) $10.23

INSTITUTIONAL CLASS: $10.09
NET ASSET VALUE, offering price and redemption price
per share ($370,760 (divided by) 36,760 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED MAY 31, 1996 (UNAUDITED)

INTEREST INCOME $ 692,825

EXPENSES

Management fee $ 56,691

Transfer agent fees 27,515
Class A

Institutional Class 432

Distribution fees - Class A 21,260

Accounting fees and expenses 29,771

Non-interested trustees' compensation 51

Custodian fees and expenses 2,085

Registration fees 20,826
Class A

Institutional Class 40,459

Audit 14,887

Legal 726

Reports to shareholders 1,636

Miscellaneous 577

Total expenses before reductions 216,916

Expense reductions (90,059) 126,857

NET INTEREST INCOME 565,968

REALIZED AND UNREALIZED GAIN (LOSS) 106,985
Net realized gain (loss) on investment securities

Change in net unrealized appreciation (depreciation) on (436,098)
investment securities

NET GAIN (LOSS) (329,113)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ 236,855
FROM OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR ENDED
ENDED MAY 31, NOVEMBER 30,
1996 1995
(UNAUDITED)

INCREASE (DECREASE) IN NET ASSETS

Operations $ 565,968 $ 838,907
Net interest income

Net realized gain (loss) 106,985 87,093

Change in net unrealized appreciation (depreciation) (436,098) 813,482

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 236,855 1,739,482
FROM OPERATIONS

Distributions to shareholders (561,303) (837,146)
From net interest income
Class A

Institutional Class (4,665) (1,761)

From net realized gain (83,556) -
Class A

Institutional Class (394) -

TOTAL DISTRIBUTIONS (649,918) (838,907)

Share transactions - net increase (decrease) 1,671,421 11,944,539

TOTAL INCREASE (DECREASE) IN NET ASSETS 1,258,358 12,845,114

NET ASSETS

Beginning of period 29,408,547 16,563,433

End of period $ 30,666,905 $ 29,408,547

</TABLE>

FINANCIAL HIGHLIGHTS - CLASS A
SIX MONTHS YEARS ENDED
ENDED NOVEMBER 30,
MAY 31, 1996

(UNAUDITED) 1995 1994 D

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

Net asset value, beginning of period $ 10.240 $ 9.770 $ 10.000

Income from Investment Operations

Net interest income .202 .430 .259

Net realized and unrealized gain (loss) (.130) .470 (.230)

Total from investment operations .072 .900 .029

Less Distributions

From net interest income (.202) (.430) (.259)

From net realized gain (.030) - -

Total distributions (.232) (.430) (.259)

Net asset value, end of period $ 10.080 $ 10.240 $ 9.770

TOTAL RETURN B, C .70% 9.38% .27%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 30,296 $ 29,274 $ 16,563

Ratio of expenses to average net assets .90% A, .82% .75% A
E E , E

Ratio of expenses to average net assets after .89% A, .82% .75% A
expense reductions F

Ratio of net interest income to average net assets 3.96% A 4.25% 3.74% A

Portfolio turnover rate 95% A 80% 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 OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED.
D FOR THE PERIOD MARCH 16, 1994 (COMMENCEMENT OF SALE OF CLASS A SHARES) TO
NOVEMBER 30, 1994.
E FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD HAVE
BEEN HIGHER (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS).
F FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES
WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES (SEE NOTE 5 OF
NOTES TO FINANCIAL STATEMENTS).
FINANCIAL HIGHLIGHTS - INSTITUTIONAL CLASS
SIX MONTHS YEAR ENDED
ENDED NOVEMBER 30,
MAY 31, 1996

(UNAUDITED) 1995 D
<TABLE>
<CAPTION>
<S> <C> <C>
SELECTED PER-SHARE DATA

Net asset value, beginning of period $ 10.230 $ 10.070

Income from Investment Operations

Net interest income .198 .178

Net realized and unrealized gain (loss) (.110) .160

Total from investment operations .088 .338

Less Distributions

From net interest income (.198) (.178)

From net realized gain (.030) -

Total distributions (.228) (.178)

Net asset value, end of period $ 10.090 $ 10.230

TOTAL RETURN B, C .86% 3.37%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 371 $ 134

Ratio of expenses to average net assets .75% A, E .75% A
, E

Ratio of expenses to average net assets after expense .74% A, F .75% A
reductions

Ratio of net interest income to average net assets 3.86% A 4.18% A

Portfolio turnover rate 95% A 80%
</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 FOR THE PERIOD JULY 3, 1995 (COMMENCEMENT OF SALE OF INSTITUTIONAL CLASS
SHARES) TO NOVEMBER 30, 1995.
E FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD HAVE
BEEN HIGHER (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS).
F FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES
WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES (SEE NOTE 5 OF
NOTES TO FINANCIAL STATEMENTS).
NOTES TO FINANCIAL STATEMENTS
For the period ended May 31, 1996 (Unaudited)

1. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity Advisor Short-Intermediate Municipal Income Fund (the fund)
(formerly Fidelity Advisor Short-Intermediate Tax-Exempt 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 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. Interest income,
realized and unrealized capital gains and losses, and the common expenses
of the fund are allocated on a pro rata 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 financial statements have been prepared in conformity with generally
accepted accounting principles which permit management to make certain
estimates and assumptions at the date of the financial statements. The
following summarizes the significant accounting policies of the fund:
SECURITY VALUATION. Securities are valued based upon a computerized matrix
system and/or appraisals by a pricing service, both of which consider
market transactions and dealer-supplied valuations. 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 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.
PREPAID EXPENSES. Fidelity Management & Research Company (FMR) bears all
organizational expenses except for registering and qualifying each class
and shares of each class for distribution under federal and state
securities law. These expenses are borne by each class and amortized over
one year.
DISTRIBUTIONS TO SHAREHOLDERS. Distributions are declared daily and paid
monthly from net interest income.
1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
DISTRIBUTIONS TO SHAREHOLDERS - CONTINUED
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 pro rata basis based on the number of shares held by each
class on the ex-dividend date.
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences, which may result in distribution
reclassifications, are primarily due to differing treatments for market
discount and losses deferred due to futures and options. The fund also
utilized earnings and profits distributed to shareholders on redemption of
shares as a part of the dividends paid deduction for income tax purposes.
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 interest income and realized
and unrealized gain (loss). Accumulated undistributed net realized gain
(loss) on investments may include temporary book and tax basis differences
that will reverse in a subsequent period. Any taxable 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 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. 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
2. OPERATING POLICIES - CONTINUED
FUTURES CONTRACTS AND OPTIONS - CONTINUED
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 $15,517,339 and $13,821,805, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, 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 .1100% 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 .40%
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 Institutional Class shares
(collectively referred to as "the Plans"). Under the Class A Plan, the fund
pays Fidelity Distributors Corporation (FDC), an affiliate of FMR, a
distribution and service fee. This fee is based on an annual rate of .15%
of the average net assets of the Class A shares. For the period, the fund
paid FDC $21,260 under the Class A Plan, all of which was paid to
securities dealers, banks and other financial institutions for the
distribution of Class A shares, and providing shareholder support services.
Under the Plans, FMR or FDC may use its resources to pay administrative and
promotional expenses related to the sale of the fund's Class A and
Institutional Class shares. The Plans also authorize payments to third
parties that assist in the sale of the fund's shares or render shareholder
support services.
SALES LOAD. FDC received a front-end sales charge of up to 1.50% for
selling Class A shares of the fund. For the period, FDC received sales
charges of $48,520 on sales of Class A shares of the fund, of which $40,872
was paid to securities dealers, banks, and other financial institutions.
TRANSFER AGENT AND ACCOUNTING FEES. UMB Bank, n.a. (UMB) is the custodian,
transfer agent, and shareholder servicing agent for the fund's Class A and
Institutional shares. UMB has entered into sub-arrangements with Fidelity
Investments Institutional Operations Company (FIIOC), an affiliate of FMR,
with respect to Class A and Institutional shares, to perform the transfer,
dividend disbursing, and shareholder servicing agent functions. FIIOC
receives account fees and asset-based fees that vary according to the
account size and type of
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
TRANSFER AGENT AND ACCOUNTING FEES - CONTINUED
account of the shareholders of the respective classes of the fund. All fees
are paid to 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.
UMB 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
$28,991.
For the period, the transfer agent fees were equivalent to an annualized
rate of .19% and .36% of average net assets for Class A and Institutional
Class, respectively.
5. EXPENSE REDUCTIONS.
FMR voluntarily agreed to reimburse operating expenses (excluding interest,
taxes, brokerage commissions and extraordinary expenses) above an annual
rate of .90% and .75% of average net assets for Class A and Institutional
Class, respectively. For the period, the reimbursement reduced expenses by
$48,151, and $40,865 for Class A and Institutional Class, respectively.
In addition, the fund has entered into an arrangement with its custodian
whereby interest earned on uninvested cash balances was used to offset a
portion of the class' expenses. During the period, the fund's custodian
fees were reduced by $1,043 under this arrangement.
6. SHARE TRANSACTIONS.
Share transactions for each class of shares were as follows:
SHARES DOLLARS
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED ENDED NOVEMBER 30, ENDED
NOVEMBER 30,
MAY 31, 1996 1995 A MAY 31, 1996 1995 A
CLASS A
Shares sold 1,278,538 2,839,080 $ 12,973,876 $ 28,620,296
Reinvestment of distributions 53,356 63,732 542,668 642,853
Shares redeemed (1,187,460) (1,737,334) (12,085,878) (17,451,379)
Net increase (decrease) 144,434 1,165,478 $ 1,430,666 $ 11,811,770
INSTITUTIONAL CLASS
Shares sold 25,624 12,961 $ 261,008 $ 131,002
Reinvestment of distributions 346 173 3,514 1,767
Shares redeemed (2,344) - (23,767) -
Net increase (decrease) 23,626 13,134 $ 240,755 $ 132,769
A SHARE TRANSACTIONS FOR INSTITUTIONAL CLASS ARE FOR THE PERIOD JULY 3,
1995 (COMMENCEMENT OF SALE OF SHARES) TO NOVEMBER 30, 1995.
INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Fred L. Henning, Jr., Vice President
Norman U. Lind, Vice President
Arthur S. Loring, Secretary
Kenneth A. Rathgeber, 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 *
ADVISORY BOARD
William O. McCoy
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENTS
UMB Bank, n.a.
Kansas City, MO
Fidelity Investments Institutional
Operations Company
Boston, MA
CUSTODIAN
UMB Bank, n.a.
Kansas City, MO
* INDEPENDENT TRUSTEES
GROWTH FUNDS
Fidelity Advisor Overseas Fund
Fidelity Advisor Mid Cap Fund
Fidelity Advisor Equity Growth Fund
Fidelity Advisor Global Resources Fund
Fidelity Advisor Growth
Opportunities Fund
Fidelity Advisor Strategic
Opportunities Fund
Fidelity Advisor Large Cap Fund
GROWTH AND INCOME FUNDS
Fidelity Advisor Equity Income Fund
Fidelity Advisor Income & Growth Fund
TAXABLE 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 Intermediate Bond Fund
Fidelity Advisor Short Fixed-Income Fund
MUNICIPAL FUNDS
Fidelity Advisor High Income
Municipal Fund
Fidelity Advisor Intermediate Municipal Income Fund
Fidelity Advisor Short-Intermediate Municipal Income Fund
STATE MUNICIPAL FUNDS
Fidelity Advisor California Municipal Income Fund
Fidelity Advisor New York Municipal Income 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
MUNICIPAL INCOME
FUND - INSTITUTIONAL CLASS
(FORMERLY FIDELITY ADVISOR SHORT-INTERMEDIATE TAX-EXEMPT FUND -
INSTITUTIONAL CLASS)
SEMIANNUAL REPORT
MAY 31, 1996
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 20 Notes to the financial statements.

DEAR SHAREHOLDER:
Although stocks have managed to post solid returns through the first five
months of 1996, signs of strength in the economy have led to inflation
fears, causing some uncertainty in bond markets so far this year. In 1995,
both stock and bond markets posted strong results, while the year before,
stocks posted below-average returns and bonds had one of the worst years in
history.
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 SHORT-INTERMEDIATE MUNICIPAL INCOME FUND -
INSTITUTIONAL CLASS
PERFORMANCE: THE BOTTOM LINE

Advisor Short-Intermediate Municipal Income - 0.86% 4.26% 10.58%
Institutional Class

Lehman Brothers 1-5 Year Municipal Bond Index 1.11% 4.67% n/a

Short-Intermediate Municipal Debt Funds Average 0.58% 3.71% n/a

CUMULATIVE TOTAL RETURNS show Institutional Class' 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 Institutional Class'
returns to the performance of the Lehman Brothers 1-5 Year Municipal Bond
Index, which includes investment-grade municipal bonds with maturities
between one and five years. To measure how Institutional Class' performance
stacked up against its peers, you can compare it to the short-intermediate
municipal debt funds average, which reflects the performance of 24 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.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED MAY 31, 1996 PAST 1 LIFE OF
YEAR FUND

Advisor Short-Intermediate Municipal Income - 4.26% 4.65%
Institutional Class

Lehman Brothers 1-5 Year Municipal Bond Index 4.67% n/a

Short-Intermediate Municipal Debt Funds Average 3.71% n/a

AVERAGE ANNUAL TOTAL RETURNS take Institutional Class' actual (or
cumulative) return and show you what would have happened if Institutional
Class shares had performed at a constant rate each year.
$10,000 OVER LIFE OF FUND
IMAHDR PRASUN SHR__CHT 19960531 19960624 141905 S00000000000001
FA Sht. Int. Muni Cl I LB Muni Bond
00606 LB015
1994/03/31 10000.00 10000.00
1994/04/30 10024.02 10084.80
1994/05/31 10041.56 10172.24
1994/06/30 10062.58 10110.08
1994/07/31 10144.43 10295.40
1994/08/31 10177.48 10331.02
1994/09/30 10149.37 10179.36
1994/10/31 10114.45 9998.58
1994/11/30 10049.02 9817.80
1994/12/31 10147.71 10033.89
1995/01/31 10288.00 10320.66
1995/02/28 10395.05 10620.79
1995/03/31 10466.04 10742.82
1995/04/30 10484.19 10755.50
1995/05/31 10629.43 11098.70
1995/06/30 10625.69 11001.59
1995/07/31 10716.95 11105.89
1995/08/31 10819.79 11246.71
1995/09/30 10857.92 11317.90
1995/10/31 10928.33 11482.46
1995/11/30 10986.80 11672.96
1995/12/31 11035.61 11785.13
1996/01/31 11117.00 11874.11
1996/02/29 11120.38 11793.96
1996/03/31 11058.92 11643.23
1996/04/30 11058.47 11610.28
1996/05/31 11081.79 11605.64
IMATRL PRASUN SHR__CHT 19960531 19960624 141906 R00000000000020

$10,000 OVER LIFE OF FUND: Let's say hypothetically that $10,000 was
invested in Fidelity Advisor Short-Intermediate Municipal Income Fund -
Institutional Class on March 31, 1994, shortly after the fund started. As
the chart shows, by May 31, 1996, the value of the investment would have
grown to $11,082 - a 10.82% increase on the initial investment. For
comparison, look at how the Lehman Brothers Municipal Bond Index, which
reflects the performance of the investment-grade municipal bond market, did
over the same period. With dividends reinvested, the same $10,000
investment would have grown to $11,606 - a 16.06% 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
SIX MONTHS YEAR ENDED MARCH 16, 1994
ENDED NOVEMBER 30, (COMMENCEMENT
MAY 31, 1995 OF
1996 OPERATIONS) TO
NOVEMBER 30,
1994

Dividend return 1.94% 4.63% 2.57%

Capital appreciation return -1.08% 4.71% -2.30%

Total return 0.86% 9.34% 0.27%

<TABLE>
<CAPTION>
<S> <C> <C> <C>
PERIODS ENDED MAY 31, 1996 PAST PAST 6 LIFE OF
MONTH MONTHS CLASS

Dividends per share 3.13(cents) 19.81(cents) 37.58(cents)

Annualized dividend rate 3.65% 3.89% 3.70%

30-day annualized yield 3.62% - -

30-day annualized tax-equivalent yield 5.66% - -

</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 $10.10
over the past month, $10.17 over the past six months and $10.17 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 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 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 36% federal tax bracket - but does not reflect payment of the
federal alternative minimum tax, if applicable. If Fidelity had not
reimbursed certain Institutional Class expenses during the period shown,
expenses would have exceeded the income of the Class and both the yield and
tax-equivalent yield would have been -2.12%.
FUND TALK: THE MANAGER'S OVERVIEW

An interview with Norm Lind, Portfolio Manager of Fidelity Advisor
Short-Intermediate Municipal Income Fund
Q. HOW DID THE FUND PERFORM, NORM?
A. Fairly well. For the six months ended May 31, 1996, the fund's
Institutional Class shares returned 0.86%, compared to a total return of
0.58% for the short-intermediate municipal debt funds average, according to
Lipper Analytical Services, and 1.11% for the Lehman Brothers 1-5 year
Municipal Bond Index. For the 12 months ended May 31, 1996, the
Institutional Class shares returned 4.26%, compared to 3.71% for the Lipper
average and 4.67% for the index.
Q. WHAT WAS THE INVESTING ENVIRONMENT LIKE DURING THE PERIOD?
A. Well, we'd seen a fair amount of steepening of the yield curve coming
into the period, where yields on longer-term securities had risen compared
to shorter ones. That situation began to reverse itself in the early part
of 1996, for a couple of reasons. First, prices on longer securities rose
as investors recognized the pricing imbalance between shorter and longer
securities. That's typical of the ebb and flow of the municipal market -
over time, the market tends to sort out these kinds of imbalances and
minimize pricing discrepancies. The other factor was a changing attitude
toward tax reform. Municipal buyers concluded that any reform was not
likely to happen for at least a couple of years, which meant that the
shorter end of the market looked like somewhat of a safe haven. As tax
reform fears eased during the period, the longer end of the market looked
more attractive than it had been, which contributed to the flattening of
the yield curve.
Q. GIVEN ALL THAT, HOW DID YOU STRUCTURE THE PORTFOLIO OVER THE PERIOD?
A. We clearly benefited from the barbell structure that had been in place
at the beginning of the period. The fund was overweighted in both the
shortest part of the market - securities with maturities of 0-1 years - and
the longest part - between 5-7 years. The shorter securities provided some
downside protection while the yield curve was steepening, and when it
flattened back out, the fund's longer positions generated solid
performance.
Q. HADN'T YOU BEEN ADJUSTING THE STRUCTURE OF THE PORTFOLIO TO INCLUDE MORE
BONDS IN THE MIDDLE OF THE YIELD CURVE?
A. Yes, but that's an ongoing process. Over the period, the fund did
continue to move toward more of a laddered structure. That's where the
fund's investments are spread more evenly throughout the yield curve. I had
to be sensitive to the market, because making dramatic changes to the
portfolio can hurt performance. For example, student loan bonds were an
important part of the portfolio during the period, and they have tended to
be securities in the 5-7 year range. I would have had to aggressively sell
those bonds to alter the fund's structure more quickly, and I wouldn't have
been comfortable doing that.
Q. WHY IS THAT?
A. Many student loan bonds are candidates for prepayment calls, similar to
the mortgage securities market. When yields fall, bonds are often prepaid,
so you may have to reinvest the proceeds at lower rates. The municipal
market tends to look at all student loan bonds as having risk of
prepayment, even ones that are non-callable. As a result, they can offer
yields that are considerably higher than similarly rated non-student-loan
bonds. The key is to keep closely in touch with how the market values these
bonds and know when buying or selling opportunities are there, rather than
simply selling them to move into the middle range of the yield curve.
Q. THERE WAS A HEAVY CONCENTRATION OF BONDS IN THE STATE OF TEXAS DURING
THE PERIOD. WHY HAVE YOU FOCUSED THERE?
A. I think Texas has a very good program in what's known as permanent
school fund bonds. That program was set up as a financing vehicle for local
school districts. The level of collateral backing these bonds makes their
credit quality very high, in my opinion. The program typically issues bonds
in the shorter end of the yield curve, so it's attractive for this
portfolio, and the deals are fairly small and not heavily publicized.
Overall, they've done very well for the fund, and I maintained a high
weighting in them over the period.
Q. DID THE FUND HAVE ANY DISAPPOINTMENTS IN THE PERIOD?
A. My biggest one is that I wish I had owned more BBB-rated securities
early in the period - for example, New York City bonds. It would have been
helpful for the fund to have been more heavily weighted in the lower-rated
end of the market because during the period, credit spreads tightened. This
caused lower-rated securities, such as those in New York, to outperform
other areas. I also would have liked to have had more exposure to
California bonds. The state's improving economy was rewarded with good
performance in bonds related to its credit quality, and we would have done
well to have taken better advantage of that improving situation.
Q. WHAT'S YOUR OUTLOOK FOR THE NEXT FEW MONTHS?
A. In general, I think the municipal market is priced quite fairly right
now. That would seem to imply that there won't be too much change,
especially in the short and intermediate part of the market. I'll continue
to look for value in the middle of our part of the yield curve, and be open
to opportunities to add yield by investing in the BBB-rated portion of the
market.
Q. WE UNDERSTAND THERE WILL BE SOME CHANGES TO THE FUND'S INVESTMENT
POLICIES . . .
A. As of June 24, 1996, the fund will change some of its debt quality
policies as part of the standardization of quality policies for our
fixed-income funds. The fund will continue to reserve the right to invest
up to 5% in below investment-grade securities; however the restriction
limiting the fund's investments in the lowest tier of investment-grade
securities to 40% of its assets will be eliminated. This will allow the
fund increased flexibility to invest in the lowest tier of investment-grade
securities without significantly increasing the risk of the fund. In
addition, the restriction prohibiting the fund from investing in securities
below a certain quality level has been removed. We do not anticipate that
this change will have an impact as we do not intend to seek out below
investment-grade securities except under unusual circumstances. Finally,
FMR will use the ratings of Duff & Phelps Credit Rating Co., Fitch
Investors Service, Moody's Investors Service, and Standard & Poor's if a
security is rated by one of these rating agencies rather than rely solely
on the credit quality determination of FMR.
FUND FACTS
GOAL: to seek as high a level
of current income, exempt
from federal income tax, as
is consistent with the
preservation of capital
START DATE: March 16, 1994
SIZE: as of May 31, 1996,
more than $30 million
MANAGER: Norm Lind, since
October 1, 1995; manager,
Fidelity Advisor New York
Municipal Income Fund,
since August 1995; joined
Fidelity in 1986
(checkmark)
NORM LIND ON PRE-REFUNDED
BONDS:
"Pre-refunded bonds are an
interesting part of the
municipal market. The way
they work is that an issuer will
come to the market looking
to refinance a callable bond
before its call date. The bond
gets backed by a basket of
U.S. Treasury securities that
acts as an escrow account for
the bond. This basket is set
up specifically to repay the
principal and interest of the
original bond, generally to its
call date. Now the bond is no
longer an obligation of the
issuing authority, but is strictly
an obligation of the escrow
account. The end result is that
the bond becomes an AAA,
Treasury-quality security. One
immediate benefit is that the
security is extremely liquid,
so it's a very useful tool if the
fund needs to raise cash.
Also, there are times when
imbalances can occur
between issues or between
similar pre-refunded bonds in
different states that can
create good trading
opportunities for the fund.
We've had good success so
far in taking advantage of the
unique characteristics of
pre-refunded bonds, and I
think it's an area that can
continue to add value to the
fund."
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.
INVESTMENT CHANGES

TOP FIVE STATES AS OF MAY 31, 1996
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE STATES
6 MONTHS AGO

Texas 22.3 22.0

New York 10.1 9.6

California 8.2 5.4

Massachusetts 8.0 3.0

Pennsylvania 6.5 5.2

TOP FIVE MARKET SECTORS AS OF MAY 31, 1996
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE MARKET SECTORS

6 MONTHS AGO

General Obligation 30.5 30.4

Education 17.3 18.0

Electric Revenue 15.9 13.2

Escrowed/Pre-Refunded 15.6 11.7

Industrial Development 4.1 7.0

AVERAGE YEARS TO MATURITY AS OF MAY 31, 1996
6 MONTHS AGO

Years 3.3 3.4

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, 1996
6 MONTHS AGO

Years 2.7 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, 1996 AS OF NOVEMBER 30, 1995
Aaa 53.7%
Aa, A 29.7%
Baa 12.5%
Non-rated 0.0%
Short-term
investments 4.1%
Aaa 47.6%
Aa, A 33.1%
Baa 5.9%
Non-rated 3.0%
Short-term
investments 10.4%
Row: 1, Col: 1, Value: 4.1
Row: 1, Col: 2, Value: 12.5
Row: 1, Col: 3, Value: 29.7
Row: 1, Col: 4, Value: 23.7
Row: 1, Col: 5, Value: 30.0
Row: 1, Col: 1, Value: 10.4
Row: 1, Col: 2, Value: 3.0
Row: 1, Col: 3, Value: 5.9
Row: 1, Col: 4, Value: 33.1
Row: 1, Col: 5, Value: 47.6
WHERE MOODY'S RATINGS ARE NOT AVAILABLE, WE HAVE USED S&P RATINGS.
INVESTMENTS MAY 31, 1996 (UNAUDITED)

Showing Percentage of Total Value of Investment in Securities

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
MAY 31, 1996 (UNAUDITED)

ASSETS

Investment in securities, at value (cost $31,889,035) - $ 31,973,278
See accompanying schedule

Interest receivable 565,418

Prepaid expenses 1,859

Receivable from investment adviser for expense 356
reductions

TOTAL ASSETS 32,540,911

LIABILITIES

Payable to custodian bank $ 5,763

Payable for investments purchased 530,163
Regular delivery

Delayed delivery 1,295,139

Distributions payable 14,212

Distribution fees payable 3,706

Other payables and accrued expenses 25,023

TOTAL LIABILITIES 1,874,006

NET ASSETS $ 30,666,905

Net Assets consist of:

Paid in capital $ 30,508,270

Accumulated undistributed net realized gain (loss) on 74,392
investments

Net unrealized appreciation (depreciation) on 84,243
investments

NET ASSETS $ 30,666,905

CALCULATION OF MAXIMUM OFFERING PRICE $10.08
CLASS A:
NET ASSET VALUE, and redemption price per share
($30,296,145 (divided by) 3,004,397 shares)

Maximum offering price per share (100/98.50 of $10.08) $10.23

INSTITUTIONAL CLASS: $10.09
NET ASSET VALUE, offering price and redemption price
per share ($370,760 (divided by) 36,760 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED MAY 31, 1996 (UNAUDITED)

INTEREST INCOME $ 692,825

EXPENSES

Management fee $ 56,691

Transfer agent fees 27,515
Class A

Institutional Class 432

Distribution fees - Class A 21,260

Accounting fees and expenses 29,771

Non-interested trustees' compensation 51

Custodian fees and expenses 2,085

Registration fees 20,826
Class A

Institutional Class 40,459

Audit 14,887

Legal 726

Reports to shareholders 1,636

Miscellaneous 577

Total expenses before reductions 216,916

Expense reductions (90,059) 126,857

NET INTEREST INCOME 565,968

REALIZED AND UNREALIZED GAIN (LOSS) 106,985
Net realized gain (loss) on investment securities

Change in net unrealized appreciation (depreciation) on (436,098)
investment securities

NET GAIN (LOSS) (329,113)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ 236,855
FROM OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR ENDED
ENDED MAY 31, NOVEMBER 30,
1996 1995
(UNAUDITED)

INCREASE (DECREASE) IN NET ASSETS

Operations $ 565,968 $ 838,907
Net interest income

Net realized gain (loss) 106,985 87,093

Change in net unrealized appreciation (depreciation) (436,098) 813,482

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 236,855 1,739,482
FROM OPERATIONS

Distributions to shareholders (561,303) (837,146)
From net interest income
Class A

Institutional Class (4,665) (1,761)

From net realized gain (83,556) -
Class A

Institutional Class (394) -

TOTAL DISTRIBUTIONS (649,918) (838,907)

Share transactions - net increase (decrease) 1,671,421 11,944,539

TOTAL INCREASE (DECREASE) IN NET ASSETS 1,258,358 12,845,114

NET ASSETS

Beginning of period 29,408,547 16,563,433

End of period $ 30,666,905 $ 29,408,547

</TABLE>

FINANCIAL HIGHLIGHTS - CLASS A
SIX MONTHS YEARS ENDED
ENDED NOVEMBER 30,
MAY 31, 1996

(UNAUDITED) 1995 1994 D

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

Net asset value, beginning of period $ 10.240 $ 9.770 $ 10.000

Income from Investment Operations

Net interest income .202 .430 .259

Net realized and unrealized gain (loss) (.130) .470 (.230)

Total from investment operations .072 .900 .029

Less Distributions

From net interest income (.202) (.430) (.259)

From net realized gain (.030) - -

Total distributions (.232) (.430) (.259)

Net asset value, end of period $ 10.080 $ 10.240 $ 9.770

TOTAL RETURN B, C .70% 9.38% .27%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 30,296 $ 29,274 $ 16,563

Ratio of expenses to average net assets .90% A, .82% .75% A
E E , E

Ratio of expenses to average net assets after .89% A, .82% .75% A
expense reductions F

Ratio of net interest income to average net assets 3.96% A 4.25% 3.74% A

Portfolio turnover rate 95% A 80% 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 OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED.
D FOR THE PERIOD MARCH 16, 1994 (COMMENCEMENT OF SALE OF CLASS A SHARES) TO
NOVEMBER 30, 1994.
E FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD HAVE
BEEN HIGHER (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS).
F FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES
WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES (SEE NOTE 5 OF
NOTES TO FINANCIAL STATEMENTS).
FINANCIAL HIGHLIGHTS - INSTITUTIONAL CLASS
SIX MONTHS YEAR ENDED
ENDED NOVEMBER 30,
MAY 31, 1996

(UNAUDITED) 1995 D
<TABLE>
<CAPTION>
<S> <C> <C>
SELECTED PER-SHARE DATA

Net asset value, beginning of period $ 10.230 $ 10.070

Income from Investment Operations

Net interest income .198 .178

Net realized and unrealized gain (loss) (.110) .160

Total from investment operations .088 .338

Less Distributions

From net interest income (.198) (.178)

From net realized gain (.030) -

Total distributions (.228) (.178)

Net asset value, end of period $ 10.090 $ 10.230

TOTAL RETURN B, C .86% 3.37%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 371 $ 134

Ratio of expenses to average net assets .75% A, E .75% A
, E

Ratio of expenses to average net assets after expense .74% A, F .75% A
reductions

Ratio of net interest income to average net assets 3.86% A 4.18% A

1. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity Advisor Short-Intermediate Municipal Income Fund (the fund)
(formerly Fidelity Advisor Short-Intermediate Tax-Exempt 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 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. Interest income,
realized and unrealized capital gains and losses, and the common expenses
of the fund are allocated on a pro rata 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 financial statements have been prepared in conformity with generally
accepted accounting principles which permit management to make certain
estimates and assumptions at the date of the financial statements. The
following summarizes the significant accounting policies of the fund:
SECURITY VALUATION. Securities are valued based upon a computerized matrix
system and/or appraisals by a pricing service, both of which consider
market transactions and dealer-supplied valuations. 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 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.
PREPAID EXPENSES. Fidelity Management & Research Company (FMR) bears all
organizational expenses except for registering and qualifying each class
and shares of each class for distribution under federal and state
securities law. These expenses are borne by each class and amortized over
one year.
DISTRIBUTIONS TO SHAREHOLDERS. Distributions are declared daily and paid
monthly from net interest income.
1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
DISTRIBUTIONS TO SHAREHOLDERS - CONTINUED
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 pro rata basis based on the number of shares held by each
class on the ex-dividend date.
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences, which may result in distribution
reclassifications, are primarily due to differing treatments for market
discount and losses deferred due to futures and options. The fund also
utilized earnings and profits distributed to shareholders on redemption of
shares as a part of the dividends paid deduction for income tax purposes.
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 interest income and realized
and unrealized gain (loss). Accumulated undistributed net realized gain
(loss) on investments may include temporary book and tax basis differences
that will reverse in a subsequent period. Any taxable 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 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. 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
2. OPERATING POLICIES - CONTINUED
FUTURES CONTRACTS AND OPTIONS - CONTINUED
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 $15,517,339 and $13,821,805, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, 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 .1100% 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 .40%
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 Institutional Class shares
(collectively referred to as "the Plans"). Under the Class A Plan, the fund
pays Fidelity Distributors Corporation (FDC), an affiliate of FMR, a
distribution and service fee. This fee is based on an annual rate of .15%
of the average net assets of the Class A shares. For the period, the fund
paid FDC $21,260 under the Class A Plan, all of which was paid to
securities dealers, banks and other financial institutions for the
distribution of Class A shares, and providing shareholder support services.
Under the Plans, FMR or FDC may use its resources to pay administrative and
promotional expenses related to the sale of the fund's Class A and
Institutional Class shares. The Plans also authorize payments to third
parties that assist in the sale of the fund's shares or render shareholder
support services.
SALES LOAD. FDC received a front-end sales charge of up to 1.50% for
selling Class A shares of the fund. For the period, FDC received sales
charges of $48,520 on sales of Class A shares of the fund, of which $40,872
was paid to securities dealers, banks, and other financial institutions.
TRANSFER AGENT AND ACCOUNTING FEES. UMB Bank, n.a. (UMB) is the custodian,
transfer agent, and shareholder servicing agent for the fund's Class A and
Institutional shares. UMB has entered into sub-arrangements with Fidelity
Investments Institutional Operations Company (FIIOC), an affiliate of FMR,
with respect to Class A and Institutional shares, to perform the transfer,
dividend disbursing, and shareholder servicing agent functions. FIIOC
receives account fees and asset-based fees that vary according to the
account size and type of
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
TRANSFER AGENT AND ACCOUNTING FEES - CONTINUED
account of the shareholders of the respective classes of the fund. All fees
are paid to 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.
UMB 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
$28,991.
For the period, the transfer agent fees were equivalent to an annualized
rate of .19% and .36% of average net assets for Class A and Institutional
Class, respectively.
5. EXPENSE REDUCTIONS.
FMR voluntarily agreed to reimburse operating expenses (excluding interest,
taxes, brokerage commissions and extraordinary expenses) above an annual
rate of .90% and .75% of average net assets for Class A and Institutional
Class, respectively. For the period, the reimbursement reduced expenses by
$48,151, and $40,865 for Class A and Institutional Class, respectively.
In addition, the fund has entered into an arrangement with its custodian
whereby interest earned on uninvested cash balances was used to offset a
portion of the class' expenses. During the period, the fund's custodian
fees were reduced by $1,043 under this arrangement.
6. SHARE TRANSACTIONS.
Share transactions for each class of shares were as follows:
SHARES DOLLARS
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED ENDED NOVEMBER 30, ENDED
NOVEMBER 30,
MAY 31, 1996 1995 A MAY 31, 1996 1995 A
CLASS A
Shares sold 1,278,538 2,839,080 $ 12,973,876 $ 28,620,296
Reinvestment of distributions 53,356 63,732 542,668 642,853
Shares redeemed (1,187,460) (1,737,334) (12,085,878) (17,451,379)
Net increase (decrease) 144,434 1,165,478 $ 1,430,666 $ 11,811,770
INSTITUTIONAL CLASS
Shares sold 25,624 12,961 $ 261,008 $ 131,002
Reinvestment of distributions 346 173 3,514 1,767
Shares redeemed (2,344) - (23,767) -
Net increase (decrease) 23,626 13,134 $ 240,755 $ 132,769
A SHARE TRANSACTIONS FOR INSTITUTIONAL CLASS ARE FOR THE PERIOD JULY 3,
1995 (COMMENCEMENT OF SALE OF SHARES) TO NOVEMBER 30, 1995.
INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Fred L. Henning, Jr., Vice President
Norman U. Lind, Vice President
Arthur S. Loring, Secretary
Kenneth A. Rathgeber, 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 *
ADVISORY BOARD
William O. McCoy
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENTS
UMB Bank, n.a.
Kansas City, MO
Fidelity Investments Institutional
Operations Company
Boston, MA
CUSTODIAN
UMB Bank, n.a.
Kansas City, MO
* INDEPENDENT TRUSTEES
GROWTH FUNDS
Fidelity Advisor Overseas Fund
Fidelity Advisor Mid Cap Fund
Fidelity Advisor Equity Growth Fund
Fidelity Advisor Global Resources Fund
Fidelity Advisor Growth
Opportunities Fund
Fidelity Advisor Strategic
Opportunities Fund
Fidelity Advisor Large Cap Fund
GROWTH AND INCOME FUNDS
Fidelity Advisor Equity Income Fund
Fidelity Advisor Income & Growth Fund
TAXABLE 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 Intermediate Bond Fund
Fidelity Advisor Short Fixed-Income Fund
MUNICIPAL FUNDS
Fidelity Advisor High Income
Municipal Fund
Fidelity Advisor Intermediate Municipal Income Fund
Fidelity Advisor Short-Intermediate Municipal Income Fund
STATE MUNICIPAL FUNDS
Fidelity Advisor California Municipal Income Fund
Fidelity Advisor New York Municipal Income Fund
MONEY MARKET FUNDS
Daily Money Fund:
Money Market Portfolio
Daily Money Fund:
U.S. Treasury Portfolio
Daily Tax-Exempt Money Fund
(REGISTERED TRADEMARK)