SUPPLEMENT TO THE FIDELITY ADVISOR FUNDS
CLASS A, CLASS T, CLASS B, AND CLASS C
OCTOBER 31,1997 PROSPECTUS
EFFECTIVE NOVEMBER 1, 1997, Fidelity Advisor California Municipal
Income Fund and Fidelity Advisor New York Municipal Income Fund are
closed to new and existing accounts.
EFFECTIVE NOVEMBER 1, 1997, Class A, Class T, and Class B of Fidelity
Advisor Municipal Bond Fund are closed to new and existing accounts
except for shares purchased by investors participating in the Fidelity
sponsored TARGETS Program who may purchase shares through December 31,
1997.
EFFECTIVE DECEMBER 15, 1997, Fidelity Advisor High Income Municipal
Fund will be renamed Fidelity Advisor Municipal Income Fund.
FMR anticipates presenting a proposal in 1997 to the Board of Trustees
of Fidelity Advisor Short-Intermediate Municipal Income Fund
requesting their approval to present shareholders of the fund a
proposal to merge the fund into Fidelity Advisor Intermediate
Municipal Income Fund. As a result, EFFECTIVE JANUARY 1, 1998,
Fidelity Advisor Short-Intermediate Municipal Income Fund will be
closed to new investors.
EFFECTIVE JANUARY 1, 1998, the following information replaces similar
information for MUNICIPAL BOND, CALIFORNIA MUNICIPAL INCOME, AND NEW
YORK MUNICIPAL INCOME found in "Expenses" on page 8.
MUNICIPAL FUNDS
OPERATING EXPENSES CLASS A CLASS T CLASS B CLASS C
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
MUNICIPAL MANAGEMENT FEE 0.40%[A] 0.40% 0.40% *
BOND
12B-1 FEE (INCLUDING 0.25% SHAREHOLDER SERVICE FEE FOR CLASS B SHARES) 0.15% 0.25% 0.90% *
OTHER EXPENSES (AFTER REIMBURSEMENT CLASS A) 1.60%[A] 0.37% 0.52% *
TOTAL OPERATING EXPENSES 2.15% 1.02% 1.82% *
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
STATE MUNICIPAL FUNDS
OPERATING EXPENSES CLASS A CLASS T CLASS B CLASS C
CALIFORNIA MANAGEMENT FEE 0.40%[A] 0.40% 0.40% *
MUNICIPAL
INCOME
12B-1 FEE (INCLUDING 0.25% SHAREHOLDER SERVICE FEE
FOR CLASS B SHARES) 0.15% 0.25% 0.90% *
OTHER EXPENSES (AFTER REIMBURSEMENT CLASS A) 1.60%[A] 0.38% 0.95% *
TOTAL OPERATING EXPENSES 2.15% 1.03% 2.25% *
NEW YORK MANAGEMENT FEE 0.40%[A] 0.40% 0.40% *
MUNICIPAL
INCOME
12B-1 FEE (INCLUDING 0.25% SHAREHOLDER SERVICE FEE
FOR CLASS B SHARES) 0.15% 0.25% 0.90% *
OTHER EXPENSES (AFTER REIMBURSEMENT) 1.60%[A] 1.60% 1.60% *
TOTAL OPERATING EXPENSES 2.15% 2.25% 2.90% *
</TABLE>
* FUND DOES NOT OFFER CLASS C SHARES.
[A] BASED ON ESTIMATED EXPENSES FOR FIRST YEAR.
EFFECTIVE JANUARY 1, 1998, the following information replaces similar
information for MUNICIPAL BOND, CALIFORNIA MUNICIPAL INCOME, AND NEW
YORK MUNICIPAL INCOME found in "Expenses" on page 11.
MUNICIPAL FUNDS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
EXAMPLES
FULL REDEMPTION NO REDEMPTION
CLASS A CLASS T CLASS B CLASS C CLASS B CLASS C
MUNICIPAL BOND 1 YEAR $ 68 $ 45 $ 68[A] * $ 18 *
3 YEARS $ 112 $ 66 $ 87[A] * $ 57 *
5 YEARS $ 157 $ 89 $ 119[A] * $ 99 *
10 YEARS[B] $ 284 $ 155 $ 226 * $ 226 *
</TABLE>
STATE MUNICIPAL FUNDS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
EXAMPLES
FULL REDEMPTION NO REDEMPTION
CLASS A CLASS T CLASS B CLASS C CLASS B CLASS C
CALIFORNIA MUNICIPAL INCOME 1 YEAR $ 68 $ 45 $ 73[A] * $ 23 *
3 YEARS $ 112 $ 67 $ 100[A] * $ 70 *
5 YEARS $ 157 $ 90 $ 140[A] * $ 120 *
10 YEARS[B] $ 284 $ 157 $ 255 * $ 255 *
NEW YORK MUNICIPAL INCOME 1 YEAR $ 68 $ 57 $ 79[A] * $ 29 *
3 YEARS $ 112 $ 103 $ 120[A] * $ 90 *
5 YEARS $ 157 $ 151 $ 173[A] * $ 153 *
10 YEARS[B] $ 284 $ 284 $ 296 * $ 296 *
</TABLE>
* FUND DOES NOT OFFER CLASS C SHARES.
[A] REFLECTS DEDUCTION OF APPLICABLE CDSC.
[B] REFLECTS CONVERSION OF CLASS B SHARES TO CLASS A SHARES AFTER
SEVEN YEARS.
EFFECTIVE JANUARY 1, 1998, the following information replaces similar
information for MUNICIPAL BOND, CALIFORNIA MUNICIPAL INCOME, AND NEW
YORK MUNICIPAL INCOME found in "Expenses" on page 12.
FMR has voluntarily agreed to reimburse Class A, Class T, Class B, and
Class C of each fund to the extent that total operating expenses, as a
percentage of their respective average net assets, exceed the
following rates:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CLASS A EFFECTIVE
DATE CLASS T EFFECTIVE DATE CLASS B EFFECTIVE DATE CLASS C EFFECTIVE DATE
MUNICIPAL
BOND 2.15% 1/1/98 2.25% 1/1/98 2.90% 1/1/98 * *
CALIFORNIA
MUNICIPAL
INCOME 2.15% 1/1/98 2.25% 1/1/98 2.90% 1/1/98 * *
NEW YORK
MUNICIPAL
INCOME 2.15% 1/1/98 2.25% 1/1/98 2.90% 1/1/98 * *
</TABLE>
* FUND DOES NOT OFFER CLASS C SHARES.
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:
OTHER EXPENSES TOTAL OPERATING EXPENSES
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CLASS A CLASS T CLASS B CLASS C CLASS A CLASS T CLASS B CLASS C
MUNICIPAL BOND 2.80%[A] (DAGGER) (DAGGER) * 3.35%[A] (DAGGER) (DAGGER) *
CALIFORNIA MUNICIPAL INCOME 2.01%[A] (DAGGER) (DAGGER) * 2.56%[A] (DAGGER) (DAGGER) *
NEW YORK MUNICIPAL INCOME 1.95%[A] 1.97% 2.42% * 2.50%[A] 2.62% 3.72% *
</TABLE>
* FUND DOES NOT OFFER CLASS C SHARES.
[A] BASED ON ESTIMATED EXPENSES FOR THE FIRST YEAR.
(dagger) TOTAL OPERATING EXPENSES WERE LESS THAN THE VOLUNTARY EXPENSE
CAPS SHOWN IN THE FIRST TABLE ABOVE.
EFFECTIVE JANUARY 1, 1998, the following information replaces similar
information found under the heading "FMR and Its Affiliates" in the
"Charter" section on page 63.
John Avery is 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 Putman Investments from 1993 to 1994. Mr. Avery received his MBA
from The Wharton School at the University of Pennsylvania in 1993.
The following information replaces similar information found in
"Investment Principles and Risks" on page 67.
MORTGAGE SECURITIES FUND seeks high current income,
consistent with prudent investment risk, by investing primarily in
mortgage-related securities. When consistent with its goal, the fund
may also consider the potential for capital gain. FMR normally invests
at least 65% of the fund's total assets in mortgage-related
securities. The fund may also invest in U.S. Government securities and
instruments related to U.S. Government securities. Instruments related
to U.S. Government securities may include futures or options on U.S.
Government securities or interests in U.S. Government securities that
have been repackaged by dealers or other third parties.
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 government bonds with maturities between
two and 10 years. However, the reaction of mortgage securities to
changes in interest rates can be difficult to predict since mortgage
securities are subject to prepayment of principal and can be
structured in a complex manner. In determining a security's maturity
for purposes of calculating the fund's average maturity, an estimate
of the average time for its principal to be paid may be used. This
could be substantially shorter than its stated final maturity. As of
July 31, 1997, the fund's dollar-weighted average maturity was
approximately 5.8 years.
GOVERNMENT INVESTMENT FUND seeks high current income by
investing in U.S. Government securities and instruments related to
U.S. Government securities under normal conditions. FMR normally
invests the fund's assets only in U.S. Government securities,
repurchase agreements, and other instruments related to U.S.
Government securities. Under normal conditions, FMR invests at least
65% of the fund's total assets in U.S. Government securities and
repurchase agreements for U.S. Government securities. Other
instruments may include futures or options on U.S. Government
securities or interests in U.S. Government securities that have been
repackaged by dealers or other third parties. It is important to note
that neither the fund nor its yield is guaranteed by the U.S.
Government.
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 government bonds with maturities between
five and 12 years. In determining a security's maturity for purposes
of calculating the fund's average maturity, an estimate of the average
time for its principal to be paid may be used. This could be
substantially shorter than its stated final maturity. As of October
31, 1996, the fund's dollar-weighted average maturity was
approximately 8.5 years.
EFFECTIVE DECEMBER 15, 1997, the following information replaces
similar information found under the heading "High Income Municipal
Fund" in "Investment Principles and Risks" on page 68.
MUNICIPAL INCOME FUND seeks high current income that is free from
federal income tax by investing primarily in investment-grade
municipal securities. FMR normally invests so that at least 80% of the
fund's assets is 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.
EFFECTIVE DECEMBER 15, 1997, the following information replaces
similar information found under the heading "Debt Securities" in
"Securities and Investment Practices" on page 69.
Each of Mortgage Securities, Short Fixed-Income, Municipal Income,
Intermediate Municipal Income, Short-Intermediate Municipal Income,
California Municipal Income, and New York Municipal Income normally
invests in investment-grade securities, but reserves the right to
invest up to 5% of its assets in below investment-grade securities. A
security is considered to be investment-grade if it is rated
investment-grade by Moody's, S&P, Duff & Phelps Credit Rating Co.
(Duff & Phelps), or Fitch Investors Service, L.P. (Fitch), or is
unrated but judged by FMR to be of equivalent quality.
The following information supplements the information found in "Sales
Charge Reductions and Waivers" on page 91.
A FRONT-END SALES CHARGE WILL NOT APPLY TO THE FOLLOWING CLASS A
SHARES:
6. Purchased prior to December 31, 1997 by Class B shareholders who
have closed their Class B Municipal Bond, Class B California Municipal
Income, or Class B New York Municipal Income accounts prior to
December 31, 1997. This waiver is limited to (i) purchases of up to
the account balance in the Class B Municipal Bond, Class B California
Municipal Income, or Class B New York Municipal Income account closed
and (ii) purchases made on the same day that the Class B account is
closed; or
7. Purchased prior to December 31, 1998 by shareholders who have
closed their Class A Municipal Bond, Class A California Municipal
Income, or Class A New York Municipal Income accounts prior to
December 31, 1997. This waiver is limited to purchases of up to
$10,000; shareholders are entitled to this waiver after the original
load waiver certificate is received by FIIOC.
The following information supplements the information found in "Sales
Charge Reductions and Waivers" on page 92.
A FRONT-END SALES CHARGE WILL NOT APPLY TO THE FOLLOWING CLASS T
SHARES:
15. Purchased prior to December 31, 1998 by shareholders who have
closed their Class T Municipal Bond, Class T California Municipal
Income, or Class T New York Municipal Income accounts prior to
December 31, 1997. This waiver is limited to purchases of up to
$10,000; shareholders are entitled to this waiver after the original
load waiver certificate is received by FIIOC.
For purposes of load waiver (10), 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 supplements the information found in "Sales
Charge Reductions and Waivers" on page 92.
THE CDSC ON CLASS B AND CLASS C SHARES MAY BE WAIVED:
4. (APPLICABLE TO CLASS B ONLY) In connection with Class B Municipal
Bond, Class B California Municipal Income, or Class B New York
Municipal Income accounts that are closed prior to December 31, 1997.
SUPPLEMENT TO THE FIDELITY ADVISOR FUNDS
INSTITUTIONAL CLASS OCTOBER 31,1997 PROSPECTUS
EFFECTIVE NOVEMBER 1, 1997, Fidelity Advisor California Municipal
Income Fund and Fidelity Advisor New York Municipal Income Fund are
closed to new and existing accounts.
EFFECTIVE NOVEMBER 1, 1997, Institutional Class of Fidelity Advisor
Municipal Bond Fund is closed to new and existing accounts except for
shares purchased by investors participating in the Fidelity sponsored
TARGETS Program who may purchase shares through December 31, 1997.
EFFECTIVE DECEMBER 15, 1997, Fidelity Advisor High Income Municipal
Fund will be renamed Fidelity Advisor Municipal Income Fund.
FMR anticipates presenting a proposal in 1997 to the Board of Trustees
of Fidelity Advisor Short-Intermediate Municipal Income Fund
requesting their approval to present shareholders of the fund a
proposal to merge the fund into Fidelity Advisor Intermediate
Municipal Income Fund. As a result, EFFECTIVE JANUARY 1, 1998,
Fidelity Advisor Short-Intermediate Municipal Income Fund will be
closed to new investors.
EFFECTIVE JANUARY 1, 1998, the following information replaces similar
information for MUNICIPAL BOND, CALIFORNIA MUNICIPAL INCOME, AND NEW
YORK MUNICIPAL INCOME found in "Expenses" beginning on page 7.
MUNICIPAL FUNDS
OPERATING EXPENSES EXAMPLES
MUNICIPAL BOND MANAGEMENT FEE 0.40%[A] 1 YEAR $ 16
12B-1 FEE NONE 3 YEARS $ 49
OTHER EXPENSES 1.14%[A] 5 YEARS $ 84
TOTAL OPERATING EXPENSES 1.54% 10 YEARS $ 183
STATE MUNICIPAL FUNDS
OPERATING EXPENSES EXAMPLES
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
CALIFORNIA MUNICIPAL INCOME MANAGEMENT FEE 0.40% 1 YEAR $ 9
12B-1 FEE NONE 3 YEARS $ 27
OTHER EXPENSES 0.45% 5 YEARS $ 47
TOTAL OPERATING EXPENSES 0.85% 10 YEARS $ 105
NEW YORK MUNICIPAL INCOME MANAGEMENT FEE 0.40% 1 YEAR $ 20
12B-1 FEE NONE 3 YEARS $ 63
OTHER EXPENSES (AFTER REIMBURSEMENT) 1.60% 5 YEARS $ 108
TOTAL OPERATING EXPENSES 2.00% 10 YEARS $ 233
</TABLE>
[A] BASED ON ESTIMATED EXPENSES FOR FIRST YEAR.
EFFECTIVE JANUARY 1, 1998, the following information replaces similar
information for MUNICIPAL BOND, CALIFORNIA MUNICIPAL INCOME, AND NEW
YORK MUNICIPAL INCOME found in "Expenses" on page 9.
FMR has voluntarily agreed to reimburse the Institutional Class of
each fund to the extent that total operating expenses, as a percentage
of their respective average net assets, exceed the following rates:
EFFECTIVE
DATE
MUNICIPAL BOND 2.00% 1/1/98
CALIFORNIA MUNICIPAL INCOME 2.00% 1/1/98
NEW YORK MUNICIPAL INCOME 2.00% 1/1/98
EFFECTIVE JANUARY 1, 1998, the following information replaces similar
information found in "Expenses" on page 9.
If these agreements were not in effect, other expenses and total
operating expenses of the Institutional Class of each fund, 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
TECHNOQUANT GROWTH[A] 7.03% 7.63%
MID CAP 2.64% 3.24%
LARGE CAP 1.94% 2.54%
GROWTH & INCOME[A] 0.78% 1.28%
BALANCED 0.56% 1.01%
STRATEGIC INCOME 0.96% 1.55%
MORTGAGE SECURITIES[A] 4.13% 4.57%
GOVERNMENT INVESTMENT 0.38% 0.83%
SHORT FIXED-INCOME 0.55% 1.00%
HIGH INCOME MUNICIPAL 3.86% 4.26%
INTERMEDIATE MUNICIPAL INCOME 0.44% 0.84%
SHORT-INTERMEDIATE MUNICIPAL INCOME 13.15% 13.55%
NEW YORK MUNICIPAL INCOME 3.43% 3.83%
</TABLE>
[A] BASED ON ESTIMATED EXPENSES FOR THE FIRST YEAR.
EFFECTIVE JANUARY 1, 1998, the following information replaces similar
information found under the heading "FMR and Its Affiliates" in the
"Charter" section on page 26.
John Avery is 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 Putman Investments from 1993 to 1994. Mr. Avery received his MBA
from The Wharton School at the University of Pennsylvania in 1993.
The following information replaces similar information found in
"Investment Principles and Risks" on page 30.
MORTGAGE SECURITIES FUND seeks high current income,
consistent with prudent investment risk, by investing primarily in
mortgage-related securities. When consistent with its goal, the fund
may also consider the potential for capital gain. FMR normally invests
at least 65% of the fund's total assets in mortgage-related
securities. The fund may also invest in U.S. Government securities and
instruments related to U.S. Government securities. Instruments related
to U.S. Government securities may include futures or options on U.S.
Government securities or interests in U.S. Government securities that
have been repackaged by dealers or other third parties.
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 government bonds with maturities between
two and 10 years. However, the reaction of mortgage securities to
changes in interest rates can be difficult to predict since mortgage
securities are subject to prepayment of principal and can be
structured in a complex manner. In determining a security's maturity
for purposes of calculating the fund's average maturity, an estimate
of the average time for its principal to be paid may be used. This
could be substantially shorter than its stated final maturity. As of
July 31, 1997, the fund's dollar-weighted average maturity was
approximately 5.8 years.
GOVERNMENT INVESTMENT FUND seeks high current income by
investing in U.S. Government securities and instruments related to
U.S. Government securities under normal conditions. FMR normally
invests the fund's assets only in U.S. Government securities,
repurchase agreements, and other instruments related to U.S.
Government securities. Under normal conditions, FMR invests at least
65% of the fund's total assets in U.S. Government securities and
repurchase agreements for U.S. Government securities. Other
instruments may include futures or options on U.S. Government
securities or interests in U.S. Government securities that have been
repackaged by dealers or other third parties. It is important to note
that neither the fund nor its yield is guaranteed by the U.S.
Government.
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 government bonds with maturities between
five and 12 years. In determining a security's maturity for purposes
of calculating the fund's average maturity, an estimate of the average
time for its principal to be paid may be used. This could be
substantially shorter than its stated final maturity. As of October
31, 1996, the fund's dollar-weighted average maturity was
approximately 8.5 years.
EFFECTIVE DECEMBER 15, 1997, the following information replaces
similar information found under the heading "High Income Municipal
Fund" in "Investment Principles and Risks" on page 31.
MUNICIPAL INCOME FUND seeks high current income that is free from
federal income tax by investing primarily in investment-grade
municipal securities. FMR normally invests so that at least 80% of the
fund's assets is 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.
EFFECTIVE DECEMBER 15, 1997, the following information replaces
similar information found under the heading "Debt Securities" in
"Securities and Investment Practices" beginning on page 32.
Each of Mortgage Securities, Short Fixed-Income, Municipal Income,
Intermediate Municipal Income, Short-Intermediate Municipal Income,
California Municipal Income, and New York Municipal Income normally
invests in investment-grade securities, but reserves the right to
invest up to 5% of its assets in below investment-grade securities. A
security is considered to be investment-grade if it is rated
investment-grade by Moody's, S&P, Duff & Phelps Credit Rating Co.
(Duff & Phelps), or Fitch Investors Service, L.P. (Fitch), or is
unrated but judged by FMR to be of equivalent quality.
