SUPPLEMENT TO THE FIDELITY ADVISOR FUNDS
CLASS A, CLASS T, AND CLASS B
FEBRUARY 28,1997 PROSPECTUS
The following information replaces similar information found on the
cover page.
High Yield and Strategic Income may each invest without limitation in
lower-quality debt securities, sometimes called "junk bonds."
Investors should consider that these securities carry greater risks,
such as the risk of default, than other debt securities. Refer to
"Investment Principles and Risks" on page 40 for further information.
The following information replaces similar information found in "Who
May Want to Invest" on page 3.
High Income Municipal, Municipal Bond, Intermediate Municipal Income,
and Short-Intermediate Municipal Income are designed for investors in
higher tax brackets who seek high current income that is free from
federal income tax. Municipal Bond, Intermediate Municipal Income, and
Short-Intermediate Municipal Income also invest consistent with
consideration of capital preservation. High Income Municipal may
invest in lower-quality municipal securities which invoke greater
risks than the investment-grade securities.
The following information replaces similar information found in "Who
May Want to Invest" beginning on page 3.
Each fund is composed of multiple classes of shares. All classes of a
fund have a common investment objective and investment portfolio.
Class A and Class T shares have a front-end sales charge and pay a
distribution fee. Class A and Class T shares may be subject to a
contingent deferred sales charge (CDSC). Class B shares do not have a
front-end sales charge, but do have a CDSC, and pay a distribution fee
and a shareholder service fee. Institutional Class shares have no
sales charge and do not pay a distribution fee or a shareholder
service fee, but are available only to certain types of investors. See
"Sales Charge Reductions and Waivers," page 64, for Institutional
Class eligibility information. You may obtain more information about
Institutional Class shares, which are not offered through this
prospectus, by calling 1-800-843-3001 or from your investment
professional.
The performance of one class of shares of a fund may be different from
the performance of another class of shares of the same fund because of
different sales charges and class expenses. Contact your investment
professional to discuss which class is appropriate for you.
In determining which class of shares is appropriate for you, you
should consider, among other factors, the amount you plan to invest,
the length of time you intend to hold your shares, your eligibility
for a sales charge waiver or reduction, and the package of services
provided to you by your investment professional and the overall costs
of those services. In general, Class A shares have higher costs than
Class T shares over a short holding period because Class A shares have
a higher front-end sales charge, and Class A shares have lower costs
than Class T shares over a longer holding period because Class A
shares have lower 12b-1 fees. If you are planning to invest a
significant amount either at one time or through a regular investment
program, you should consider the reduced front-end sales charges
available on Class A and Class T shares. See "Transaction Details,"
page 60, and "Sales Charge Reductions and Waivers," page 64, for sales
charge reduction information. If you are eligible for a front-end
sales charge waiver on a purchase of both Class A and Class T shares,
Class A shares generally will have lower costs than Class T shares
because Class A shares have lower 12b-1 fees. However, you should
evaluate the overall costs of purchasing Class A shares or Class T
shares in the context of the package of services provided to you by
your investment professional. See "Sales Charge Reductions and
Waivers," page 64, for sales charge waiver information. If you prefer
not to pay a front-end sales charge, you should consider Class B
shares. While Class B shares are subject to higher ongoing costs than
Class A or Class T shares, because of their higher 12b-1 fees, Class B
shares are sold with a CDSC instead of a front-end sales charge so
your entire purchase amount is immediately invested. Please note that
purchase amounts of more than $250,000 will not be accepted for Class
B shares, and that Class A or Class T shares may have lower costs for
investments that qualify for a front-end sales charge reduction or
waiver. If you sell your Class B shares of the Intermediate-Term Bond
Funds within three years or your Class B shares of the Bond Funds and
the Equity Funds within six years, you will normally pay a CDSC that
varies depending on how long you have held your shares. See
"Transaction Details," page 60, for CDSC schedules and related
information.
The following information replaces similar information found in
"Expenses" on page 4.
<ERROR: WIDE TABLE>
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Table Width is 205 characters.
<TABLE>
<CAPTION>
<S>
<C> <C> <C> <C> <C>
Class A Class T Class B
Maximum sales charge (as a % of offering price) on purchases of: TechnoQuant Growth, Mid Cap, Equity Growth, Growth
Opportunities, Strategic 5.75% 3.50% None
Opportunities, Large Cap, Growth & Income, Equity Income, and Balanced (the Equity Funds)
Maximum sales charge (as a % of offering price) on purchases of: High Yield, Strategic Income, Mortgage Securities,
Government Investment, High Income Municipal, 4.75% 3.50% None
Municipal Bond, California Municipal Income, and New York Municipal Income (the Bond Funds)
Maximum sales charge (as a % of offering price) on purchases of: Intermediate Bond and Intermediate Municipal Income (the
Intermediate-Term Bond Funds) 3.75% 2.75% None
Maximum sales charge (as a % of offering price) on purchases of: Short-Fixed Income and Short-Intermediate
1.50% 1.50% None
Municipal Income (the Short-Term Bond Funds)
Maximum CDSC for all Equity and Bond Funds (as a % of the lesser of original purchase price or redemption proceeds)
None[A] None[A] 5.00%[B]
Maximum CDSC for the Intermediate-Term Bond Funds (as a % of the lesser of the original purchase price or redemption
proceeds) None[A] None[A] 3.00%[C]
Maximum CDSC for the Short-Term Bond Funds (as a % of the lesser of the original purchase price or redemption proceeds)
None[A] None[A] *
Maximum sales charge on reinvested distributions
None None None
Redemption fee
None None None
Exchange fee
None None None
Annual account maintenance fee (for accounts under $2,500)
$12.00 $12.00 $12.00
</TABLE>
* FUNDS DO NOT OFFER CLASS B SHARES.
[A] A CONTINGENT DEFERRED SALES CHARGE CHARGE OF 0.25% IS ASSESSED ON
CERTAIN REDEMPTIONS OF CLASS A AND CLASS T SHARES ON WHICH A FINDER'S
FEE WAS PAID. SEE "TRANSACTION DETAILS", PAGE 60.
[B] DECLINES OVER 6 YEARS FROM 5.00% TO 0%.
[C] DECLINES OVER 3 YEARS FROM 3.00% TO 0%.
The following information replaces similar information found in
"Expenses" on page 5.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
EQUITY FUNDS
Operating Expenses Class A Class T Class B
EQUITY GROWTH Management fee 0.61% 0.61% 0.61%
12b-1 fee (including 0.25% Shareholder Service Fee for Class B shares) 0.25% 0.50% 1.00%
Other expenses 0.33%[A] 0.25%
0.34%[A]
Total operating expenses 1.19% 1.36% 1.95%
GROWTH OPPORTUNITIES Management fee 0.61% 0.61% 0.61%
12b-1 fee (including 0.25% Shareholder Service Fee for Class B shares) 0.25% 0.50% 1.00%
Other expenses 0.28%[A] 0.23%
0.32%[A]
Total operating expenses 1.14% 1.34% 1.93%
</TABLE>
The following footnotes replace similar footnotes found in "Expenses"
on page 5.
[A] BASED ON ESTIMATED EXPENSES FOR FIRST YEAR.
[C] EFFECTIVE AUGUST 1, 1996, FMR VOLUNTARILY AGREED TO IMPLEMENT A
MANAGEMENT FEE REDUCTION. THE INDIVIDUAL FUND FEE RATE WAS REDUCED
FROM 0.20% TO 0.15%. IF THIS AGREEMENT WAS NOT IN EFFECT, THE
MANAGEMENT FEE WOULD BE 0.50% AND TOTAL OPERATING EXPENSES WOULD BE
1.15%, 1.26% , AND 1.94% FOR CLASS A, CLASS T, AND CLASS B,
RESPECTIVELY.
The following information replaces similar information found in
"Expenses" on page 7.
A portion of the brokerage commissions that certain of the funds pay
is used to reduce fund expenses. In addition, certain funds have
entered into arrangements with their custodian and transfer agent
whereby interest earned on uninvested cash balances is used to reduce
custodian and transfer agent expenses. Including these reductions, the
total operating expenses presented in the preceding tables for the
applicable class would have been:
Class T Class B
Mid Cap 1.60% 2.37%
Equity Growth 1.34% 1.95%
Strategic Opportunities 1.27% 1.79%
Large Cap 2.00% 2.50%
Equity Income 1.26% 1.79%
Balanced 1.20% 1.90%
High Yield 1.11% 1.79%
Strategic Income 1.22% 1.87%
Government Investment 0.99% 1.67%
Intermediate Bond 0.96% 1.66%
Short-Intermediate Municipal Income 0.89% *
California Municipal Income 0.87% 1.62%
New York Municipal Income 0.97% 1.62%
* FUND DOES NOT OFFER CLASS B SHARES
The following information replaces similar information regarding
Growth Opportunities found in "Expenses" on page 8.
EXPENSE TABLE EXAMPLE: You would pay the following expenses, including
the maximum front-end sales charge or CDSC, as applicable, on a $1,000
investment, assuming a 5% annual return and either (1) full redemption
or (2) no redemption, at the end of each time period:
EQUITY FUNDS
Examples
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Full Redemption No
Redemption
Class A Class T Class B Class B
GROWTH OPPORTUNITIES After 1 year $68 $48 $70[A] $20
After 3 years $92 $76 $91[A] $61
After 5 years $117 $106 $124[A] $104
After 10 years[B] $188 $191 $195 $195
</TABLE>
[A] REFLECTS DEDUCTION OF APPLICABLE CDSC.
[B] REFLECTS CONVERSION OF CLASS B SHARES TO CLASS A SHARES AFTER
SEVEN YEARS.
For the funds listed below, the following information replaces similar
information relating to Class A shares found in "Expenses" beginning
on page 8.
EXPENSE TABLE EXAMPLE: You would pay the following expenses, including
the maximum front-end sales charge or CDSC, as applicable, on a $1,000
investment, assuming a 5% annual return and either (1) full redemption
or (2) no redemption, at the end of each time period:
EQUITY FUNDS
Examples
Full Redemption
Class A
TECHNOQUANT GROWTH After 1 year $71
After 3 years $99
MID CAP After 1 year $71
After 3 years $98
EQUITY GROWTH After 1 year $69
After 3 years $93
After 5 years $119
After 10 years $194
STRATEGIC OPPORTUNITIES After 1 year $70
After 3 years $95
After 5 years $122
After 10 years $200
LARGE CAP After 1 year $74
After 3 years $109
GROWTH & INCOME After 1 year $69
After 3 years $93
EQUITY INCOME After 1 year $68
After 3 years $90
After 5 years $115
After 10 years $184
BALANCED After 1 year $68
After 3 years $90
After 5 years $115
After 10 years $184
TAXABLE INCOME FUNDS
Examples
Full Redemption
Class A
HIGH YIELD After 1 year $58
After 3 years $81
After 5 years $106
After 10 years $177
STRATEGIC INCOME After 1 year $60
After 3 years $85
After 5 years $113
After 10 years $191
MORTGAGE SECURITIES After 1 year $56
After 3 years $75
After 5 years $95
After 10 years $153
GOVERNMENT INVESTMENT After 1 year $56
After 3 years $75
After 5 years $95
After 10 years $153
INTERMEDIATE BOND After 1 year $46
After 3 years $65
After 5 years $85
After 10 years $144
MUNICIPAL FUNDS
Examples
Full Redemption
Class A
HIGH INCOME MUNICIPAL After 1 year $56
After 3 years $75
After 5 years $95
After 10 years $153
MUNICIPAL BOND After 1 year $56
After 3 years $75
After 5 years $95
After 10 years $153
INTERMEDIATE MUNICIPAL INCOME After 1 year $46
After 3 years $65
After 5 years $85
After 10 years $144
STATE MUNICIPAL FUNDS
Examples
Full Redemption
Class A
CALIFORNIA MUNICIPAL INCOME After 1 year $56
After 3 years $75
NEW YORK MUNICIPAL INCOME After 1 year $56
After 3 years $75
After 5 years $95
After 10 years $153
The following information replaces similar information found in
"Expenses" on page 11.
If these agreements were not in effect, other expenses and total
operating expenses, as a percentage of average net assets, would have
been the following amounts:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Other Expenses Total Operating Expenses
Class A[A] Class T Class B Class A[A] Class T Class B
Large Cap 0.96% 1.34% 2.35% 1.81% 2.44% 3.95%
Strategic Income 0.65% (dagger) (dagger) 1.39% (dagger) (dagger)
Mortgage 2.25% 0.53% 1.08% 2.85% 1.23% 2.43%
Securities[A]
Government 0.72% (dagger) 0.43% 1.32% (dagger) 1.78%
Investment
Intermediate Bond 0.48% (dagger) 0.44% 1.08% (dagger) 1.79%
Short Fixed-Income 0.50% (dagger) * 1.10% (dagger) *
High Income 0.48% (dagger) (dagger) 1.03% (dagger) (dagger)
Municipal
Municipal Bond[A] 2.80% 0.37% 0.52% 3.35% 1.02% 1.82%
Intermediate 1.00% 0.39% 0.56% 1.55% 1.04% 1.86%
Municipal Income
Short-Intermediate 1.29% 0.60% * 1.84% 1.15% *
Municipal Income
California Municipal Income[A] 2.01% 0.38% 0.95% 2.50%[B] 1.03% 2.25%
New York Municipal Income 1.95% 1.97% 2.42% 2.50% 2.62% 3.72%
</TABLE>
* FUND DOES NOT OFFER CLASS B SHARES.
[A] BASED ON ESTIMATED EXPENSES FOR THE FIRST YEAR.
[B] LIMITED IN ACCORDANCE WITH A STATE LIMITATION. WITHOUT THIS
LIMITATION, TOTAL OPERATING EXPENSES WOULD BE 2.56% FOR CALIFORNIA
MUNICIPAL INCOME, CLASS A.
(dagger) TOTAL OPERATING EXPENSES WERE LESS THAN THE VOLUNTARY EXPENSE
CAPS IN EFFECT DURING THE FISCAL YEAR ENDED 1996.
For the funds listed below, the following information replaces similar
information relating to Class A load adjusted total return figures
found in "Performance" on pages 30-32. The total return figures in the
table below reflect the August 1, 1997 increases in the funds' maximum
Class A front-end sales charges. Unless revised in this prospectus
supplement, the footnotes to the total return tables found in
"Performance" on pages 35-36 remain unchanged.
EQUITY FUNDS - CLASS A
Average Annual Total ReturnF Cumulative Total ReturnF
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Past 1 year Past 5 years 10 Years/ Past 1 year Past 5 years 10 Years/
Life of fund+ Life of fund+
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
MID CAP - CLASS A (LOAD ADJ.) [A][C] n/a n/a n/a n/a n/a 10.27%
EQUITY GROWTH - CLASS A (LOAD ADJ.) [A][C] 12.13% 17.36% 18.92% 12.13% 122.64% 465.44%
GROWTH OPPORTUNITIES - CLASS A (LOAD ADJ.)[A][B] 10.78% 16.27% 19.84% 10.78% 112.51% 406.46%
STRATEGIC OPPORTUNITIES - CLASS A (LOAD ADJ.) [A][D] (4.30)% 10.78% 11.21% (4.30)% 66.84% 189.43%
LARGE CAP - CLASS A (LOAD ADJ.) [A][C] n/a n/a n/a n/a n/a 11.50%
EQUITY INCOME - CLASS A (LOAD ADJ.) [A][C] 11.97% 17.59% 12.53% 11.97% 124.79% 225.67%
BALANCED - CLASS A (LOAD ADJ.)[A][B] 2.96% 7.35% 10.64% 2.96% 42.58% 170.12%
</TABLE>
TAXABLE BOND FUNDS - CLASS A
Average Annual Total ReturnF Cumulative Total ReturnF
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Past 1 year Past 5 years 10 years/ Past 1 year Past 5 years 10 years/
Life of fund+ Life of fund+
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
HIGH YIELD - CLASS A (LOAD ADJ.)[A][B] 7.34% 13.24% 13.17% 7.34% 86.25% 237.33%
STRATEGIC INCOME - CLASS A (LOAD ADJ.)[A][D] 7.45% n/a 13.37% 7.45% n/a 31.34%
MORTGAGE SECURITIES - CLASS A 1.65% 6.75% 7.78% 1.65% 38.64% 111.47%
(LOAD ADJ.) [A][E]
GOVERNMENT INVESTMENT - CLASS A (LOAD ADJ.) [A][B] (0.61)% 5.72% 6.52% (0.61)% 32.08% 85.96%
INTERMEDIATE BOND - CLASS A (LOAD ADJ.) [A][C] 0.93% 6.12% 7.26% 0.93% 34.60% 101.50%
</TABLE>
MUNICIPAL FUNDS - CLASS A
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Average Annual Total ReturnF Cumulative Total ReturnF
Past 1 year Past 5 years 10 years/ Past 1 year Past 5 years 10 years/
Life of fund+ Life of fund+
HIGH INCOME MUNICIPAL - CLASS A
(LOAD ADJ.)[A][B] (0.53)% 5.89% 8.52% (0.53)% 33.16% 111.11%
MUNICIPAL BOND - CLASS A (LOAD
ADJ.)[A] [D] (1.05)% 5.69% 6.69% (1.05)% 31.88% 91.13%
INTERMEDIATE MUNICIPAL INCOME
- - CLASS A 0.94% 5.21% 5.73% 0.94% 28.90% 74.57%
(LOAD ADJ.)[A][C]
</TABLE>
STATE MUNICIPAL FUNDS - CLASS A
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Average Annual Total ReturnF Cumulative Total ReturnF
Past 1 year Past 5 years 10 years/ Past 1 year Past 5 years 10 years/
Life of fund+ Life of fund+
CALIFORNIA MUNICIPAL INCOME -
CLASS A (LOAD ADJ.)[A][B] n/a n/a n/a n/a n/a (2.87)%
NEW YORK MUNICIPAL INCOME -
CLASS A (LOAD ADJ.)[A][B] 0.23% n/a 4.23% 0.23% n/a 5.09%
</TABLE>
[A] LOAD ADJUSTED RETURNS INCLUDE THE EFFECT OF PAYING CLASS A'S
MAXIMUM FRONT-END SALES CHARGE OF 5.75% FOR THE EQUITY FUNDS; 4.75%
FOR THE BOND FUNDS; 3.75% FOR THE INTERMEDIATE-TERM BOND FUNDS; AND
1.50% FOR THE SHORT-TERM BOND FUNDS. LOAD ADJUSTED RETURNS INCLUDE THE
EFFECT OF PAYING CLASS T'S MAXIMUM FRONT-END SALES CHARGE OF 3.50% FOR
THE EQUITY FUNDS AND BOND FUNDS; 2.75% FOR THE INTERMEDIATE-TERM BOND
FUNDS; AND 1.50% FOR THE SHORT-TERM BOND FUNDS. CLASS B'S CDSC
INCLUDED IN THE TOTAL RETURN FIGURES ARE CALCULATED PURSUANT TO THE
CDSC SCHEDULES FOUND ON PAGE 62.
The following information replaces similar information found in
footnote F of the "Performance" section on page 36.
[F] CLASS A OF MUNICIPAL BOND COMMENCED OPERATIONS ON MARCH 3, 1997.
RETURNS BETWEEN JULY 1, 1996 AND FEBRUARY 28, 1997 ARE THOSE OF CLASS
T AND REFLECT CLASS T'S 0.25% 12B-1 FEE. RETURNS PRIOR TO THAT DATE
ARE THOSE OF INITIAL CLASS, THE ORIGINAL CLASS OF THE FUND WHICH DOES
NOT BEAR A 12B-1 FEE. CLASS A'S RETURNS WOULD HAVE BEEN LOWER IF ITS
12B-1 FEE WAS REFLECTED IN RETURNS PRIOR TO JULY 1, 1996.
INITIAL OFFERING OF CLASS B SHARES OF EQUITY GROWTH TOOK PLACE ON
DECEMBER 31, 1996. CLASS B SHARES BEAR A 12B-1 FEE (INCLUDING A
SHAREHOLDER SERVICING FEE), WHICH IS NOT REFLECTED IN PRIOR RETURN
DATES. RETURNS BETWEEN SEPTEMBER 10, 1992 AND DECEMBER 31, 1996 ARE
THOSE OF CLASS T AND REFLECT CLASS T'S APPLICABLE 12B-1 FEE (0.65%
PRIOR TO JANUARY 1, 1996). RETURNS PRIOR TO SEPTEMBER 10, 1992 ARE
THOSE OF INSTITUTIONAL CLASS, THE ORIGINAL CLASS OF THE FUND, WHICH
DOES NOT BEAR A 12B-1 FEE. CLASS B RETURNS WOULD HAVE BEEN LOWER IF
ITS 12B-1 FEE (INCLUDING A SHAREHOLDER SERVICING FEE) HAD BEEN
REFLECTED IN PRIOR DATE RETURNS.
INITIAL OFFERING OF CLASS B SHARES OF BALANCED TOOK PLACE ON DECEMBER
31, 1996. CLASS B SHARES BEAR A 12B-1 FEE (INCLUDING A SHAREHOLDER
SERVICING FEE), WHICH IS NOT REFLECTED IN PRIOR RETURN DATES. RETURNS
BETWEEN JANUARY 6, 1987 AND DECEMBER 31, 1996 ARE THOSE OF CLASS T AND
REFLECT CLASS T'S APPLICABLE 12B-1 FEE (0.65% PRIOR TO JANUARY 1,
1996). CLASS B RETURNS WOULD HAVE BEEN LOWER IF ITS 12B-1 FEE
(INCLUDING A SHAREHOLDER SERVICING FEE) HAD BEEN REFLECTED IN PRIOR
DATE RETURNS.
The following information replaces similar information found in the
"Charter" section on page 38.
THE FUNDS MAY HOLD SPECIAL MEETINGS AND MAIL PROXY MATERIALS. These
meetings may be called to elect or remove trustees, change fundamental
policies, approve a management contract, or for other purposes.
Shareholders not attending these meetings are encouraged to vote by
proxy. The transfer agent will mail proxy materials in advance,
including a voting card and information about the proposals to be
voted on. The number of votes you are entitled to is based upon the
dollar value of your investment.
The following information supplements the information found under the
heading "FMR and Its Affiliates" in the "Charter" section beginning on
page 38.
John Avery is associate manager of Advisor Balanced, which he has
managed since September 1997. He also manages another Fidelity fund.
Mr. Avery joined Fidelity as an analyst in 1995. Previously, he was an
analyst for Putnam Investments from 1993 to 1994. Mr. Avery received
his MBA from The Wharton School at the University of Pennsylvania in
1993.
Brian Hogan is manager of Advisor Strategic Income's emerging market
securities, which he has managed since September 1997. Since joining
Fidelity in 1994, Mr. Hogan has worked as a fixed-income analyst,
research analyst and manager. Previously, he worked as an analyst for
Conseco Capital Management from 1 993 to 1994 and Aegon USA
Investment Management from 1990 to 1993.
The following information replaces similar information under the
heading "FMR and Its Affiliates" in the "Charter" section on page 39.
George Fischer is manager of Advisor Municipal Bond and Advisor High
Income Municipal, which he has managed since October 1995 and April
1997, respectively. He also manages several other Fidelity funds.
Since joining Fidelity in 1989, Mr. Fischer has worked as an analyst
and manager.
Curt Hollingsworth is Vice President and manager of Advisor
Government Investment and Advisor Strategic Income, both of which he
has managed since February 1997. Mr. Hollingsworth manages the
domestic investment-grade and U.S. government investments for Advisor
Government Investment. He also manages several other Fidelity funds.
Since joining Fidelity in 1983, Mr. Hollingsworth has worked as a
fixed income trader and portfolio manager.
Effective October 1, 1997, the following information replaces similar
information found under the heading "FMR and Its Affiliates" in the
"Charter" section on page 39.
Kevin Grant is Vice President and manager of Advisor Intermediate
Bond and Advisor Balanced, which he has managed since October 1995 and
March 1996, respectively. Mr. Grant manages the fixed-income
investments for Advisor Balanced. He also manages several other
Fidelity funds. Prior to joining Fidelity in 1993, Mr. Grant was a
vice president and chief mortgage strategist at Morgan Stanley for
three years.
Thomas Silvia is manager of Advisor Mortgage Securities. He has been a
co-manager of the fund since February 1997. Mr. Silvia joined Fidelity
as a senior mortgage trader in 1993. Previously he was a quantitative
analyst with Donaldson, Lufkin & Jenrette in New York from 1990 to
1993.
The following information replaces similar information found under the
heading "FMR and Its Affiliates"in the "Charter" section on page 40.
As of May 31, 1997, approximately 44.14% and 28.67% of California
Municipal Income's and New York Municipal Income's total outstanding
shares, respectively, were held by an FMR affiliate. Therefore based
on his membership in this family group, Mr. Edward C. Johnson 3d may
be deemed to be a beneficial owner of these shares of California
Municipal Income and New York Municipal Income.
The following information replaces similar information found in
"Investment Principles and Risks" on page 43.
HIGH INCOME MUNICIPAL FUND seeks high current income that is free from
federal income tax by investing primarily in investment-grade
municipal securities. The fund may also invest up to 35% of its assets
in below investment-grade securities. FMR normally invests so that at
least 80% of the fund's assets are invested in municipal securities
whose interest is free from federal income tax. In addition, FMR may
invest all of the fund's assets in municipal securities issued to
finance private activities. The interest from these securities is a
tax preference item for the purposes of the federal alternative
minimum tax.
Although the fund can invest in securities of any maturity, FMR seeks
to manage the fund so that it generally reacts to changes in interest
rates similarly to municipal bonds with maturities between eight and
18 years. As of October 31, 1996, the fund's dollar-weighted average
maturity was approximately 16.4 years.
The following information replaces similar information found under the
heading "Equity Securities" in the "Securities and Investment
Practices" section on page 44.
RESTRICTIONS: With respect to 75% of its total assets, each of
TechnoQuant Growth, Mid Cap, Equity Growth, Growth Opportunities,
Strategic Opportunities, Large Cap, Growth & Income, Equity Income,
Balanced, High Yield, Mortgage Securities, Government Investment,
Intermediate Bond, Short Fixed-Income, High Income Municipal,
Municipal Bond, and Intermediate Municipal Income may not purchase
more than 10% of the outstanding voting securities of a single issuer.
For TechnoQuant Growth, Mid Cap, Equity Growth, Growth Opportunities,
Strategic Opportunities, Large Cap, and Growth & Income, this
limitation does not apply to securities of other investment companies.
The following information replaces similar information found under the
heading "Debt Securities" in the "Securities and Investment Practices"
section on page 46.
High Income Municipal currently intends to limit its investments in
below investment-grade securities to less than 35% of its assets and
does not currently intend to invest more than 10% of its total assets
in bonds that are in default. A security is considered to be
investment-grade quality if it is rated investment-grade by Moody's
Investor Service, Standard and Poor's, Duff & Phelps Credit Rating
Co., or Fitch Investors Service L.P., or is unrated but judged by FMR
to be of equivalent quality.
The following information replaces similar information found under the
heading "Cash Management" in the "Securities and Investment Practices"
section beginning on page 47.
RESTRICTIONS: California Municipal Income and New York Municipal
Income do not currently intend to invest in a money market fund. High
Income Municipal, Municipal Bond, Intermediate Municipal Income,
Short-Intermediate Municipal Income, California Municipal Income, and
New York Municipal Income do not currently intend to invest in
repurchase agreements.
The following information replaces similar information found under the
heading "Diversification" in the "Securities and Investment Practices"
section on page 48.
RESTRICTIONS: With respect to 75% of its total assets, each of
TechnoQuant Growth, Mid Cap, Equity Growth, Growth Opportunities,
Strategic Opportunities, Large Cap, Growth & Income, Equity Income,
Balanced, High Yield, Mortgage Securities, Government Investment,
Intermediate Bond, Short Fixed-Income, High Income Municipal,
Municipal Bond, and Intermediate Municipal Income may not purchase a
security if, as a result, more than 5% would be invested in the
securities of any one issuer. This limitation does not apply to U.S.
Government securities or, for TechnoQuant Growth, Mid Cap, Equity
Growth, Growth Opportunities, Strategic Opportunities, Large Cap, and
Growth & Income, to securities of other investment companies.
The following information replaces similar information found in the
"Fundamental Investment Policies and Restrictions" section beginning
on page 48.
EQUITY GROWTH FUND seeks to achieve capital appreciation by investing
primarily in common and preferred stock and securities convertible
into the common stock of companies with above-average growth
characteristics.
With respect to 75% of its total assets, each of TechnoQuant Growth,
Mid Cap, Equity Growth, Growth Opportunities, Strategic Opportunities,
Large Cap, Growth & Income, Equity Income, Balanced, High Yield,
Mortgage Securities, Government Investment, Intermediate Bond, Short
Fixed-Income, High Income Municipal, Municipal Bond, and Intermediate
Municipal Income may not purchase a security if, as a result, more
than 5% would be invested in the securities of any one issuer. This
limitation does not apply to U.S. Government securities or, for
TechnoQuant Growth, Mid Cap, Equity Growth, Growth
Opportunities,Strategic Opportunities, Large Cap, and Growth & Income,
to securities of other investment companies.
With respect to 75% of its total assets, each of TechnoQuant Growth,
Mid Cap, Equity Growth, Growth Opportunities, Strategic Opportunities,
Large Cap, Growth & Income, Equity Income, Balanced, High Yield,
Mortgage Securities, Government Investment, Intermediate Bond, Short
Fixed-Income, High Income Municipal, Municipal Bond, and Intermediate
Municipal Income may not purchase more than 10% of the outstanding
voting securities of a single issuer. This limitation does not apply
to U.S. Government securities or, for TechnoQuant Growth, Mid Cap,
Equity Growth, Growth Opportunities,Strategic Opportunities, Large
Cap, and Growth & Income, to securities of other investment companies.
The following information replaces similar information under the
heading "Management Fee" in the "Breakdown of Expenses" section on
page 50.
Investment performance for Growth Opportunities and Strategic
Opportunities will be represented by the average performance of all
classes of the fund, weighted according to their average assets for
each month.
The following information replaces similar information regarding
Equity Growth under the heading "Management Fee" in the "Breakdown of
Expenses" section on page 50.
Group Individual Total Management
Fee Rate Fund Fee Fee
Rate
Equity Growth 0.30% 0.30% 0.61%
The following footnotes replace similar footnotes found under the
heading "Management Fee" in the "Breakdown of Expenses" section on
page 50.
[A] ESTIMATED
[C] THE BASIC FEE RATE FOR THE FISCAL YEAR ENDED 1996 WAS 0.61% FOR
GROWTH OPPORTUNITIES AND 0.61% FOR STRATEGIC OPPORTUNITIES.
[D] EFFECTIVE AUGUST 1, 1996, FMR VOLUNTARILY AGREED TO REDUCE THE
FUND'S INDIVIDUAL FUND FEE RATE FROM 0.20% TO 0.15%. IF THIS REDUCTION
WAS NOT IN EFFECT, THE TOTAL FEE WOULD HAVE BEEN 0.55%.
The following information replaces similar information found in "How
to Buy Shares" on page 54.
Once each business day, two share prices are calculated for Class A
and Class T shares of each fund: the offering price and the NAV. If
you pay a front-end sales charge or qualify for a reduction as
described on page 61, your Class A or Class T share price will be the
offering price. If you qualify for a front-end sales charge waiver as
described on page 64, your Class A or Class T share price will be the
NAV. When you buy Class A or Class T shares at the offering price, the
transfer agent deducts the appropriate sales charge and invests the
rest in Class A or Class T shares of the fund. Class B's NAV is also
calculated every business day. Class B shares of each fund are sold
without a front-end sales charge and may be subject to a CDSC upon
redemption. For information on how the CDSC is calculated, see
"Transaction Details," page 60.
PURCHASE AMOUNTS OF MORE THAN $250,000 WILL NOT BE ACCEPTED FOR CLASS
B SHARES.
The following information replaces similar information found in
"Investor Services" on page 58.
FIDELITY ADVISOR SYSTEMATIC WITHDRAWAL PROGRAM lets you set up
periodic redemptions from your Class A, Class T, or Class B account.
Accounts with a value of $10,000 or more in Class A, Class T or Class
B shares are eligible for this program. Aggregate redemptions per 12
month period from your Class B account may not exceed 10% of the
account value and are not subject to a CDSC. Because of Class A's and
Class T's front-end sales charge, you may not want to set up a
systematic withdrawal plan during a period when you are buying Class A
or Class T shares on a regular basis.
The following information replaces similar information found in
"Transaction Details" on page 61.
THE OFFERING PRICE (price to buy one share) of Class A and Class T of
each fund is its NAV, divided by the difference between one and the
applicable sales charge percentage. Class A has a maximum sales charge
of 5.75% of the offering price for the Equity Funds; 4.75% of the
offering price for the Bond Funds; 3.75% of the offering price for the
Intermediate-Term Bond Funds; and 1.50% of the offering price for the
Short-Term Bond Funds. Class T has a maximum sales charge of 3.50% of
the offering price for the Equity Funds and the Bond Funds; 2.75% of
the offering price for the Intermediate-Term Bond Funds; and 1.50% of
the offering price for the Short-Term Bond Funds. The offering price
of Class B of each fund is its NAV. A class's REDEMPTION PRICE (price
to sell one share) is its NAV minus any applicable CDSC.
SALES CHARGES AND INVESTMENT PROFESSIONAL
CONCESSIONS - CLASS A
<TABLE>
<CAPTION>
<S> <C> <C>
EQUITY FUNDS: Sales Charge Investment
Professional
Concession as %
of Offering Price
As a % of As an
Offering Price approximate %
of Net Amount
Invested
Up to $49,999 5.75% 6.10% 5.00%
$50,000 to $99,999 4.50% 4.71% 3.75%
$100,000 to $249,999 3.50% 3.63% 2.75%
$250,000 to $499,999 2.50% 2.56% 2.00%
$500,000 to $999,999 2.00% 2.04% 1.75%
$1,000,000 - $24,999,999 1.00% 1.01% 0.75%
$25,000,000 or more None* None* *
BOND FUNDS: Sales Charge Investment
Professional
Concession as %
of Offering Price
As a % of As an
Offering Price approximate %
of Net Amount
Invested
Up to $49,999 4.75% 4.99% 4.25%
$50,000 to $99,999 4.50% 4.71% 4.00%
$100,000 to $249,999 3.50% 3.63% 3.00%
$250,000 to $499,999 2.50% 2.56% 2.25%
$500,000 to $999,999 2.00% 2.04% 1.75%
$1,000,000 - $24,999,999 0.50% 0.50% 0.50%
$25,000,000 or more None* None* *
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
INTERMEDIATE-TERM BOND FUNDS: Sales Charge Investment
Professional
Concession as %
of Offering Price
As a % of As an
Offering Price approximate %
of Net Amount
Invested
Up to $49,999 3.75% 3.91% 3.00%
$50,000 to $99,999 3.00% 3.10% 2.25%
$100,000 to $249,999 2.25% 2.30% 1.75%
$250,000 to $499,999 1.75% 1.78% 1.50%
$500,000 to $999,999 1.50% 1.52% 1.25%
$1,000,000 - $24,999,999 0.50% 0.50% 0.50%
$25,000,000 or more None* None* *
SHORT-TERM BOND FUNDS: Sales Charge Investment
Professional
Concession as %
of Offering Price
As a % of As an
Offering Price approximate %
of Net Amount
Invested
Up to $499,999 1.50% 1.52% 1.25%
$500,000 to $999,999 1.00% 1.01% 0.75%
$1,000,000 - $24,999,999 None None None
$25,000,000 or more None* None* *
</TABLE>
* SEE SECTION ENTITLED FINDER'S FEE.
The following information replaces similar information found in
"Transaction Details" on page 62.
FINDER'S FEE. On eligible purchases of (i) Class A shares in amounts
of $1 million or more that qualify for a Class A load waiver, (ii)
Class A shares in amounts of $25 million or more, and (iii) Class T
shares in amounts of $1 million or more, investment professionals will
be compensated with a fee at the rate of 0.25% of the amount
purchased.
Any assets on which a finder's fee has been paid will bear a CDSC
(Class A or Class T CDSC) if they do not remain in Class A or Class T
shares of the Fidelity Advisor funds, Daily Money Class (formerly
Initial Class) shares of Treasury Fund (formerly Daily Money Fund:
U.S. Treasury Portfolio), Prime Fund (formerly Daily Money Fund: Money
Market Portfolio), or Tax-Exempt Fund (formerly Daily Tax-Exempt Money
Fund), for a period of at least one uninterrupted year. The Class A or
Class T CDSC will be 0.25% of the lesser of the cost of the shares at
the initial date of purchase or the value of the shares at redemption,
not including any reinvested dividends or capital gains. Class A or
Class T CDSC shares representing reinvested dividends and capital
gains, if any, will be redeemed first, followed by other Class A or
Class T CDSC shares that have been held for the longest period of
time.
Shares held by an insurance company separate account will be
aggregated at the client (e.g., the contract holder or plan sponsor)
level, not at the separate account level. Upon request, anyone
claiming eligibility for the 0.25% fee with respect to shares held by
an insurance company separate account must provide FDC access to
records detailing purchases at the client level.
With respect to employee benefit plans, the Class A or Class T CDSC
does not apply to the following types of redemptions: (i) plan loans
or distributions or (ii) exchanges to non-Advisor fund investment
options. With respect to Individual Retirement Accounts, the Class A
or Class T CDSC does not apply to redemptions made for disability,
payment of death benefits, or required partial distributions starting
at age 70. Your investment professional should advise the transfer
agent at the time your redemption order is placed if you qualify for a
waiver of the Class A or Class T CDSC.
The following information replaces similar information found in
"Transaction Details" on page 63.
REINSTATEMENT PRIVILEGE. If you have sold all or part of your Class A,
Class T, or Class B shares of a fund, you may reinvest an amount equal
to all or a portion of the redemption proceeds in the same class of
the fund or any of the other Fidelity Advisor funds, at the NAV next
determined after receipt and acceptance of your investment order,
provided that such reinvestment is made within 90 days of redemption.
Under these circumstances, the dollar amount of the CDSC, if any, you
paid on Class T or Class B shares will be reimbursed to you by
reinvesting that amount in Class T shares or Class B shares, as
applicable. The dollar amount of the CDSC, if any, you paid on Class A
shares will likewise be reimbursed to you by reinvesting that amount
in Class A shares. You must reinstate your shares into an account with
the same registration. This privilege may be exercised only once by a
shareholder with respect to a fund and certain restrictions may apply.
For purposes of the CDSC holding period schedule, the holding period
of your Class T or Class B shares will continue as if the shares had
not been redeemed. For purposes of the CDSC holding period schedule,
the holding period of your Class A shares will also continue as if the
shares had not been redeemed.
The following information replaces similar information found in
"Exchange Restrictions" on page 64.
(small solid bullet) Any exchanges of Class A, Class T, or Class B
shares are not subject to a CDSC.
The following information supplements information found in "Sales
Charge Reductions and Waivers" on page 65.
A FRONT-END SALES CHARGE WILL NOT APPLY TO THE FOLLOWING CLASS A
SHARES:
1. Purchased for an insurance company separate account used to fund
annuity contracts for employee benefit plans which, in the aggregate,
have more than 200 eligible employees or a minimum of $1 million in
plan assets invested in Fidelity Advisor funds;
2. Purchased by a trust institution or bank trust department
(excluding employee benefit plan assets) that has executed a
participation agreement with FDC specifying certain asset minimums and
qualifications, and marketing restrictions. Assets managed by third
parties do not qualify for this waiver;
3. Purchased for use in a broker-dealer managed account program,
provided the broker-dealer has executed a participation agreement with
FDC specifying certain asset minimums and qualifications, and
marketing, program and trading restrictions. Employee benefit plan
assets do not qualify for this waiver;
4. Purchased on a discretionary basis by a registered investment
advisor which is not part of an organization primarily engaged in the
brokerage business, that has executed a participation agreement with
FDC specifying certain asset minimums and qualifications, and
marketing, program and trading restrictions. Employee benefit plan
assets do not qualify for this waiver; or
5. Purchased as part of an employee benefit plan having $25 million or
more in plan assets.
For the purpose of load waiver (3) certain broker dealers that
otherwise meet the qualifications and asset minimums established by
FDC are not required to sign a participation agreement.
The following information replaces similar information found in "Sales
Charge Reductions and Waivers" on page 66.
If you are investing through an account managed by a broker-dealer, if
you have authorized an investment adviser to make investment decisions
for you, or if you are investing through a trust department, you may
qualify to purchase Class T shares without a sales charge (as
described in (9), (10) and (13), above), Class A shares without a
sales charge (as described in (2), (3) and (4) above), or
Institutional Class shares. Because Institutional Class shares have no
sales charge, and do not pay a distribution fee or a shareholder
service fee, Institutional Class shares are expected to have a higher
total return than Class A, Class T, or Class B shares. Contact your
investment professional to discuss if you qualify.
THE CDSC ON CLASS B SHARES MAY BE WAIVED:
1. In cases of disability or death, provided that Class B shares are
redeemed within one year following the death or the initial
determination of disability;
2. In connection with a total or partial redemption related to certain
distributions from retirement plans or accounts at age 70, which are
permitted without penalty pursuant to the Internal Revenue Code; or
3. In connection with redemptions through the Fidelity Advisor
Systematic Withdrawal Program.
SUPPLEMENT TO THE FIDELITY ADVISOR FUNDS
INSTITUTIONAL CLASS FEBRUARY 28,1997 PROSPECTUS
The following information replaces similar information on the cover
page.
High Yield and Strategic Income may each invest without limitation in
lower-quality debt securities, sometimes called "junk bonds."
Investors should consider that these securities carry greater risks,
such as the risk of default, than other debt securities. Refer to
"Investment Principles and Risks" on page 23 for further information.
The following information replaces similar information found in "Who
May Want to Invest" on page 3.
High Income Municipal, Municipal Bond, Intermediate Municipal Income,
and Short-Intermediate Municipal Income are designed for investors in
higher tax brackets who seek high current income that is free from
federal income tax. Municipal Bond, Intermediate Municipal Income, and
Short-Intermediate Municipal Income also invest consistent with
consideration of capital preservation. High Income Municipal may
invest in lower-quality municipal securities which invoke greater
risks than the investment-grade securities.
The following information replaces similar information found in "Who
May Want to Invest" on page 4.
Each fund is composed of multiple classes of shares. All classes of a
fund have a common investment objective and investment portfolio.
Class A and Class T shares have a front-end sales charge and pay a
distribution fee. Class A and Class T shares may be subject to a
contingent deferred sales charge (CDSC). Class B shares do not have a
front-end sales charge, but do have a CDSC, and pay a distribution fee
and a shareholder service fee. Because Institutional Class shares have
no sales charge and do not pay a distribution fee or a shareholder
service fee, Institutional Class shares are expected to have a higher
total return than Class A, Class T or Class B shares.
The following information replaces similar information regarding
Equity Growth found in "Expenses" on page 5.
EQUITY GROWTH Management fee 0.61% After 1 year $ 8
12b-1 fee (Distribution fee) None After 3 years $ 25
Other expenses 0.18% After 5 years $ 44
Total operating expenses 0.79% After 10 years $ 98
The following footnotes replace similar footnotes found in "Expenses"
on page 5.
[A] BASED ON ESTIMATED EXPENSES FOR FIRST YEAR.
[C] EFFECTIVE AUGUST 1, 1996, FMR VOLUNTARILY AGREED TO IMPLEMENT A
MANAGEMENT FEE REDUCTION. THE INDIVIDUAL FUND FEE RATE WAS REDUCED
FROM 0.20% TO 0.15%. IF THIS AGREEMENT WAS NOT IN EFFECT, THE
MANAGEMENT FEE WOULD BE 0.50% AND TOTAL OPERATING EXPENSES WOULD BE
1.06%.
The following information replaces similar information found in the
"Charter" section on page 21.
THE FUNDS MAY HOLD SPECIAL MEETINGS AND MAIL PROXY MATERIALS. These
meetings may be called to elect or remove trustees, change fundamental
policies, approve a management contract, or for other purposes.
Shareholders not attending these meetings are encouraged to vote by
proxy. The transfer agent will mail proxy materials in advance,
including a voting card and information about the proposals to be
voted on. The number of votes you are entitled to is based upon the
dollar value of your investment.
The following information supplements the information found under the
heading "FMR and Its Affiliates" in the "Charter" section beginning on
page 21.
John Avery is associate manager of Advisor Balanced, which he has
managed since September 1997. He also manages another Fidelity fund.
Mr. Avery joined Fidelity as an analyst in 1995. Previously, he was an
analyst for Putnam Investments from 1993 to 1994. Mr. Avery received
his MBA from The Wharton School at the University of Pennsylvania in
1993.
Brian Hogan is manager of Advisor Strategic Income's emerging market
securities, which he has managed since September 1997. Since joining
Fidelity in 1994, Mr. Hogan has worked as a fixed-income analyst,
research analyst and manager. Previously, he worked as an analyst
fo r Conseco Capital Management from 1993 to 1994 and Aegon USA
Investment Management from 1990 to 1993.
The following information replaces similar information under the
heading "FMR and Its Affiliates" in the "Charter" section on page 22.
George Fischer is manager of Advisor Municipal Bond and Advisor High
Income Municipal, which he has managed since October 1995 and April
1997, respectively. He also manages several other Fidelity funds.
Since joining Fidelity in 1989, Mr. Fischer has worked as an analyst
and manager.
Curt Hollingsworth is Vice President and manager of Advisor
Government Investment and Advisor Strategic Income, both of which he
has managed since February 1997. Mr. Hollingsworth manages the
domestic investment-grade and U.S. government investments for Advisor
Government Investment. He also manages several other Fidelity funds.
Since joining Fidelity in 1983, Mr. Hollingsworth has worked as a
fixed income trader and portfolio manager.
Effective October 1, 1997, the following information replaces similar
information found under the heading "FMR and Its Affiliates" in the
"Charter" section on page 22.
Kevin Grant is Vice President and manager of Advisor Intermediate
Bond and Advisor Balanced, which he has managed since October 1995 and
March 1996, respectively. Mr. Grant manages the fixed -income
investments for Advisor Balanced. He also manages several other
Fidelity funds. Prior to joining Fidelity in 1993, Mr. Grant was a
vice president and chief mortgage strategist at Morgan Stanley for
three years.
Thomas Silvia is manager of Advisor Mortgage Securities. He has been a
co-manager of the fund since February 1997. Mr. Silvia joined Fidelity
as a senior mortgage trader in 1993. Previously he was a quantitative
analyst with Donaldson, Lufkin & Jenrette in New York from 1990 to
1993.
The following information supplements the information found under the
heading "FMR and Its Affiliates" in the "Charter" section on page 23.
As of May 31, 1997, approximately 44.14% and 28.67% of California
Municipal Income's and New York Municipal Income's total outstanding
shares, respectively, were held by an FMR affiliate. Therefore based
on his membership in this family group, Mr. Edward C. Johnson 3d may
be deemed to be a beneficial owner of these shares of California
Municipal Income and New York Municipal Income.
The following information replaces similar information found in
"Investment Principles and Risks" on page 26.
HIGH INCOME MUNICIPAL FUND seeks high current income that is free from
federal income tax by investing primarily in investment-grade
municipal securities. The fund may also invest up to 35% of its assets
in below investment-grade securities. FMR normally invests so that at
least 80% of the fund's assets are invested in municipal securities
whose interest is free from federal income tax. In addition, FMR may
invest all of the fund's assets in municipal securities issued to
finance private activities. The interest from these securities is a
tax preference item for the purposes of the federal alternative
minimum tax.
Although the fund can invest in securities of any maturity, FMR seeks
to manage the fund so that it generally reacts to changes in interest
rates similarly to municipal bonds with maturities between eight and
18 years. As of October 31, 1996, the fund's dollar-weighted average
maturity was approximately 16.4 years.
The following information replaces similar information found under the
heading "Equity Securities" in the "Securities and Investment
Practices" section on page 27.
RESTRICTIONS: With respect to 75% of its total assets, each of
TechnoQuant Growth, Mid Cap, Equity Growth, Growth Opportunities,
Strategic Opportunities, Large Cap, Growth & Income, Equity Income,
Balanced, High Yield, Mortgage Securities, Government Investment,
Intermediate Bond, Short Fixed-Income, High Income Municipal,
Municipal Bond, and Intermediate Municipal Income may not purchase
more than 10% of the outstanding voting securities of a single issuer.
For TechnoQuant Growth, Mid Cap, Equity Growth, Growth Opportunities,
Strategic Opportunities, Large Cap, and Growth & Income, this
limitation does not apply to securities of other investment companies.
The following information replaces similar information found under the
heading "Debt Securities" in the "Securities and Investment Practices"
section on page 29.
High Income Municipal currently intends to limit its investments in
below investment-grade securities to less than 35% of its assets and
does not currently intend to invest more than 10% of its total assets
in bonds that are in default. A security is considered to be
investment-grade if it is rated investment-grade by Moody's Investor
Service, Standard and Poor's, Duff & Phelps Credit Rating Co., or
Fitch Investors Service, L.P., or is unrated but judged by FMR to be
of equivalent quality.
The following information replaces similar information found under the
heading "Cash Management" in the "Securities and Investment Practices"
section on page 30.
RESTRICTIONS: California Municipal Income and New York Municipal
Income do not currently intend to invest in a money market fund. High
Income Municipal, Municipal Bond, Intermediate Municipal Income,
Short-Intermediate Municipal Income, California Municipal Income, and
New York Municipal Income do not currently intend to invest in
repurchase agreements.
The following information replaces similar information found under the
heading "Diversification" in the "Securities and Investment Practices"
section on page 31.
With respect to 75% of its total assets, each of TechnoQuant Growth,
Mid Cap, Equity Growth, Growth Opportunities, Strategic Opportunities,
Large Cap, Growth & Income, Equity Income, Balanced, High Yield,
Mortgage Securities, Government Investment, Intermediate Bond, Short
Fixed-Income, High Income Municipal, Municipal Bond, and Intermediate
Municipal Income may not purchase a security if, as a result, more
than 5% would be invested in the securities of any one issuer. This
limitation does not apply to U.S. Government securities or, for
TechnoQuant Growth, Mid Cap, Equity Growth, Growth Opportunities,
Strategic Opportunities, Large Cap, and Growth & Income, to securities
of other investment companies.
The following information replaces similar information found in the
"Fundamental Investment Policies and Restrictions" section beginning
on page 31.
EQUITY GROWTH FUND seeks to achieve capital appreciation by investing
primarily in common and preferred stock and securities convertible
into the common stock of companies with above-average growth
characteristics.
With respect to 75% of its total assets, each of TechnoQuant Growth,
Mid Cap, Equity Growth, Growth Opportunities, Strategic Opportunities,
Large Cap, Growth & Income, Equity Income, Balanced, High Yield,
Mortgage Securities, Government Investment, Intermediate Bond, Short
Fixed-Income, High Income Municipal, Municipal Bond, and Intermediate
Municipal Income may not purchase a security if, as a result, more
than 5% would be invested in the securities of any one issuer. This
limitation does not apply to U.S. Government securities or, for
TechnoQuant Growth, Mid Cap, Equity Growth, Growth Opportunities,
Strategic Opportunities, Large Cap, and Growth & Income, to securities
of other investment companies.
With respect to 75% of its total assets, each of TechnoQuant Growth,
Mid Cap, Equity Growth, Growth Opportunities, Strategic Opportunities,
Large Cap, Growth & Income, Equity Income, Balanced, High Yield,
Mortgage Securities, Government Investment, Intermediate Bond, Short
Fixed-Income, High Income Municipal, Municipal Bond, and Intermediate
Municipal Income may not purchase more than 10% of the outstanding
voting securities of a single issuer. These limitations do not apply
to U.S. Government securities or, for TechnoQuant Growth, Mid Cap,
Equity Growth, Growth Opportunities, Strategic Opportunities, Large
Cap, and Growth & Income, to securities of other investment companies.
The following information replaces similar information found under the
heading "Management Fee" in the "Breakdown of Expenses" section on
page 33.
Investment performance for Growth Opportunities and Strategic
Opportunities will be represented by the average performance of all
classes of the fund, weighted according to their average assets for
each month.
The following information replaces similar information regarding
Equity Growth found under the heading "Management Fee" in the
"Breakdown of Expenses" section on page 33.
Group Individual Total Management
Fee Rate Fund Fee Fee
Rate
Equity Growth 0.30% 0.30% 0.61%
The following footnotes replace similar footnotes found under the
heading "Management Fee" in the "Breakdown of Expenses" section on
page 33.
[A] ESTIMATED
[C] THE BASIC FEE RATE FOR THE FISCAL YEAR ENDED 1996 WAS 0.61% FOR
GROWTH OPPORTUNITIES AND 0.61% FOR STRATEGIC OPPORTUNITIES.
[D] EFFECTIVE AUGUST 1, 1996, FMR VOLUNTARILY AGREED TO REDUCE THE
FUND'S INDIVIDUAL FUND FEE RATE FROM 0.20% TO 0.15%. IF THIS REDUCTION
WAS NOT IN EFFECT, THE TOTAL FEE WOULD HAVE BEEN 0.55%.
The following information supplements the information found in
"Exchange Restrictions" on page 43.
OTHER FUNDS MAY HAVE DIFFERENT EXCHANGE RESTRICTIONS, and may impose
fees of up to 1.00% on purchases, administrative fees of up to $7.50,
and redemption fees of up to 1.50% on exchanges. Check each fund's
prospectus for details.
