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.
Institutional Class shares are offered to accounts managed (i) by a bank
trust department and other trust institutions, (ii) by a broker-dealer, and
(iii) by a registered investment advisor (RIA) on a discretionary basis
(collectively, eligible intermediaries). Institutional Class shares are
available through eligible intermediaries that have signed a participation
agreement with FDC. The participation agreement specifies certain aggregate
asset minimums and asset qualifications, trading guidelines, marketing
restrictions, and program requirements. In addition, Institutional Class
shares are available through certain eligible intermediaries that meet
qualifications established by FDC but have not signed a participation
agreement.
Institutional Class shares are also offered to insurance company separate
accounts 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.
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 $ 8
year
12b-1 fee (Distribution None After 3 $ 25
fee) years
Other expenses 0.18% After 5 $ 44
years
Total operating expenses 0.79% After 10 $ 98
years
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 for 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
Fee Rate Fund Fee
Rate Manageme
nt
Fee
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.
