SUPPLEMENT TO THE FIDELITY ADVISOR FUNDS: CLASS A, CLASS T, CLASS B, AND
INSTITUTIONAL CLASS
AUGUST 30, 1996 STATEMENT OF ADDITIONAL INFORMATION
With respect to Advisor Short-Intermediate Municipal Income Fund,
non-fundamental limit (xiii) on page 27 is no longer in effect.
Effective January 2, 1997, Fidelity Advisor Income & Growth Fund has been
renamed Fidelity Advisor Balanced Fund.
Effective January 2, 1997 Fidelity Investments Institutional Operations
Company, Inc. (FIIOC) performs transfer agency, dividend disbursing and
shareholder servicing functions for Class T shares of Overseas, Mid Cap,
Equity Growth, Natural Resources, Growth Opportunities, Strategic
Opportunities, Large Cap, Equity Income, Income & Growth, Emerging Markets
Income, High Yield, Strategic Income, Government Investment, Intermediate
Bond and Short Fixed-Income.
The following non-fundamental limit replaces the similar non-fundamental
limit for each fund (except Equity Growth Fund, Strategic Opportunities
Fund, New York Municipal Income Fund, and California Municipal Income Fund)
in the "Investment Policies and Limitations" section beginning on page 3.
The fund does not currently intend to (a) purchase securities of other
investment companies, except in the open market where no commission except
the ordinary broker's commission is paid, or (b) purchase or retain
securities issued by other open-end investment companies. Limitations (a)
and (b) do not apply (i) to securities received as dividends, through
offers of exchange, or as a result of a reorganization, consolidation, or
merger, or (ii) to securities of other open-end investment companies
managed by FMR or a successor or affiliate purchased pursuant to an
exemptive order granted by the SEC.
The following non-fundamental limit replaces non-fundamental limit (i) for
Emerging Markets Income Fund, Strategic Income Fund, and Short-Intermediate
Municipal Income Fund in the "Investment Policies and Limitations" section
beginning on page 3.
(i) In order to qualify as a "regulated investment company" under
Subchapter M of the Internal Revenue Code of 1986, as amended, the fund
currently intends to comply with certain diversification limits imposed by
Subchapter M.
The following information follows the last non-fundamental limit for
Emerging Markets Income Fund, Strategic Income Fund, and Short-Intermediate
Municipal Income Fund in the "Investment Policies and Limitations" section
beginning on page 3.
For purposes of limitation (i), Subchapter M generally requires the fund to
invest no more than 25% of its total assets in securities of any one issuer
and to invest at least 50% of its total assets so that no more than 5% of
the fund's total assets are invested in securities of any one issuer.
However, Subchapter M allows unlimited investments in cash, cash items,
government securities (as defined in Subchapter M) and securities of other
investment companies. These tax requirements are generally applied at the
end of each quarter of the fund's taxable year.
The following information replaces the similar information in the
"Performance" section beginning on page 66.
NEW YORK MUNICIPAL INCOME ONLY
Use the first table to find your approximate effective tax bracket as a New
York State resident with triple taxes (federal, state, and New York City)
or double taxes (federal and state) for 1997.
1997 TAX RATES
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Taxable Income* Marginal Tax Rate
Single Return Joint Return Marginal New York New York Combined New Combined New
Federal State City York State and York State,
Income Federal City and
Tax Bracket Effective Federal
Tax Bracket** Tax Bracket**
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 24,651 - $ 25,000 $ 41,201 - $ 45,000 28.0% 6.85% 3.76% 32.93% 35.64%
$ 25,001 - $ 50,000 $ 45,001 - $ 90,000 28.0% 6.85% 3.82% 32.93% 35.68%
$ 50,001 - $ 124,650 $ 90,001 - $ 108,000 31.0% 6.85% 3.88% 35.73% 38.40%
$ 124,651 - $ 271,050 $ 108,001 - $ 271,050 36.0% 6.85% 3.88% 40.38% 42.86%
$ 271,051 - + $ 271,051 - + 39.6% 6.85% 3.88% 43.74% 46.10%
</TABLE>
* Net amount subject to federal income tax after deductions and exemptions.
Assumes ordinary income only.
** Excludes the impact of the phaseout of personal exemptions, limitations
on itemized deductions, and other credits, exclusions, and adjustments
which may increase a taxpayer's marginal tax rate. An increase in a
shareholder's marginal tax rate would increase that shareholder's
tax-equivalent yield.
Having determined your effective tax bracket, use the appropriate table
below to determine the tax-equivalent yield for a given tax-free yield.
NEW YORK CITY RESIDENTS - TRIPLE TAXES - 1997
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
If your effective combined federal, state, and New York City
personal income tax rate in 1997 is:
35.64% 35.68% 38.40% 42.86% 46.10%
To match these Your taxable investment would have to earn the
following yield:
tax-free yields:
2% 3.11% 3.11% 3.25% 3.50% 3.71%
3% 4.66% 4.66% 4.87% 5.25% 5.56%
4% 6.22% 6.22% 6.49% 7.00% 7.42%
5% 7.77% 7.77% 8.12% 8.75% 9.27%
6% 9.32% 9.33% 9.74% 10.50% 11.13%
7% 10.88% 10.88% 11.36% 12.25% 12.98%
8% 12.43% 12.44% 12.99% 14.00% 14.84%
9% 13.98% 13.99% 14.61% 15.75% 16.69%
10% 15.54% 15.55% 16.23% 17.50% 18.55%
11% 17.09% 17.10% 17.86% 19.25% 20.40%
</TABLE>
NEW YORK STATE RESIDENTS (OUTSIDE NYC) - DOUBLE TAXES - 1997
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
If your effective combined federal and state personal income
tax rate in 1997 is:
32.93% 35.73% 40.38% 43.74%
To match these Your taxable investment would have to earn the
following yield:
tax-free yields:
2% 2.98% 3.11% 3.35% 3.55%
3% 4.47% 4.67% 5.03% 5.33%
4% 5.96% 6.22% 6.71% 7.11%
5% 7.46% 7.78% 8.39% 8.89%
6% 8.95% 9.34% 10.06% 10.66%
7% 10.44% 10.89% 11.74% 12.44%
8% 11.93% 12.45% 13.42% 14.22%
9% 13.42% 14.00% 15.10% 16.00%
10% 14.91% 15.56% 16.77% 17.77%
11% 16.40% 17.11% 18.45% 19.55%
</TABLE>
The fund may invest a portion of its assets in obligations that are subject
to city, state or federal income taxes. When the fund invests in these
obligations, its tax-equivalent yield will be lower. In the table above,
the tax-equivalent yields are calculated assuming investments are 100%
federally and state tax-free.
The following information replaces the similar information in the
"Additional Purchase, Exchange, and Redemption Information" section on page
101.
The sales charge will not apply:
2. to shares purchased by a current or former Trustee or officer of a
Fidelity fund or a current or retired officer, director, or regular
employee of FMR Corp. or FIL or their direct or indirect subsidiaries (a
Fidelity Trustee or employee), the spouse of a Fidelity Trustee or
employee, a Fidelity Trustee or employee acting as custodian for a minor
child, or a person acting as trustee of a trust for the sole benefit of the
minor child of a Fidelity Trustee or employee;
5. to shares in a Fidelity or Fidelity Advisor account purchased (including
purchases by exchange) with the proceeds of a distribution (i) from an
employee benefit plan that qualified for waiver (11) or had a minimum of $3
million in plan assets invested in Fidelity funds; or (ii) from an
insurance company separate account qualifying under (6) below or used to
fund annuity contracts purchased by employee benefit plans having in the
aggregate at least $3 million in plan assets invested in Fidelity funds.
(Distributions other than those transferred to an IRA account must be
transferred directly into a Fidelity account.)
Effective January 2, 1997, Class B shares of the funds may, upon
redemption, be assessed a contingent deferred sales charge (CDSC) based on
the following schedules:
EQUITY FUNDS: (OVERSEAS, MID CAP, NATURAL RESOURCES, GROWTH OPPORTUNITIES,
STRATEGIC OPPORTUNITIES, LARGE CAP, AND EQUITY INCOME)
From Date of Purchase Contingent
Deferred
Sales Charge
Less than 1 year 5%
1 year to less than 2 years 4%
2 years to less than 3 years 3%
3 years to less than 4 years 3%
4 years to less than 5 years 2%
5 years to less than 6 years 1%
6 years to less than 7 years 0%
BOND FUNDS: (EMERGING MARKETS INCOME, HIGH YIELD, STRATEGIC INCOME,
GOVERNMENT INVESTMENT, HIGH INCOME MUNICIPAL, NEW YORK MUNICIPAL INCOME,
AND CALIFORNIA MUNICIPAL INCOME)
From Date of Purchase Contingent
Deferred
Sales Charge
Less than 1 year 5%
1 year to less than 2 years 4%
2 years to less than 3 years 3%
3 years to less than 4 years 3%
4 years to less than 5 years 2%
5 years to less than 6 years 1%
6 years to less than 7 years 0%
INTERMEDIATE-TERM BOND FUNDS: (INTERMEDIATE BOND AND INTERMEDIATE MUNICIPAL
INCOME)
From Date of Purchase Contingent
Deferred
Sales Charge
Less than 1 year 3%
1 year to less than 2 years 2%
2 years to less than 3 years 1%
3 years to less than 4 years 0%
The following information replaces the similar information found in the
"Trustees and Officers" section beginning on page 106.
JENNIFER UHRIG (36), is Vice President of Equity Growth (1997), and other
funds advised by FMR, and an employee of FMR.
