SUPPLEMENT TO THE FIDELITY ADVISOR FUNDS
CLASS A, CLASS T, CLASS B, AND CLASS C
FEBRUARY 28, 1998 PROSPECTUS
SHAREHOLDER MEETING. On or about November 18, 1998, a
meeting of the shareholders of Fidelity Advisor Equity Income Fund
will be held to approve various proposals, including modifications to
the fund's management contract. Shareholders of record on September
21, 1998 are entitled to vote at the meeting. Included in the proposed
management contract modifications is a proposal to revise the fund's
current flat management fee structure to a group fee structure that is
standard for other comparable Fidelity equity funds. The proposed
contract modifications also include a proposal to allow FMR and the
trust, on behalf of the fund, to amend the fund's management contract
subject to the provisions of Section 15 of the Investment Company Act
of 1940.
For more detailed information concerning the proposals under
consideration, please contact Client Services at 1-800-522-7297 to
request a free copy of the proxy statement.
AS OF MAY 28, 1998, Fidelity Advisor Short-Intermediate Municipal
Income Fund was merged into Fidelity Advisor Intermediate Municipal
Income Fund and shareholders of Fidelity Advisor Short-Intermediate
Municipal Income Fund became shareholders of Fidelity Advisor
Intermediate Municipal Income Fund. The merger was voted on and
approved at a shareholder meeting on May 4, 1998. Fidelity Advisor
Short-Intermediate Municipal Income Fund ceased to exist and is not
offered.
The following information replaces similar information found in "Who
May Want to Invest" 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
12b-1 fee. Class A and Class T shares may be subject to a contingent
deferred sales charge (CDSC). Class B and Class C shares do not have a
front-end sales charge, but do have a CDSC, and pay a 12b-1 fee.
Institutional Class shares have no sales charge and do not pay a 12b-1
fee, but are available only to certain types of investors. See "Sales
Charge Reductions and Waivers," page 82, for Institutional Class
eligibility information. You may obtain more information about
Institutional Class shares, which are not offered through this
prospectus, by calling 1-800-522-7297 if you are investing through a
broker-dealer or insurance representative, 1-800-843-3001 if you are
investing through a bank representative, or from your investment
professional.
The following information replaces similar information for
INTERMEDIATE MUNICIPAL INCOME found in "Expenses" on page 8.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
MUNICIPAL FUNDS
Operating Expenses Class A Class T Class B Class C
INTERMEDIATE Management fee 0.39% 0.39% 0.39% 0.39%
MUNICIPAL INCOME
12b-1 fee (including 0.25% Shareholder Service
Fee for Class B and Class C shares) 0.15% 0.25% 0.90% 1.00%
Other expenses (after reimbursement) 0.36% 0.26% 0.36% 0.36%[A]
Total operating expenses 0.90% 0.90% 1.65% 1.75%
</TABLE>
[A] BASED ON ESTIMATED EXPENSES FOR THE FIRST YEAR.
The following information replaces similar information for EQUITY
INCOME found in "Expenses" on page 9.
EQUITY 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
EQUITY INCOME 1 year $ 68 $ 47 $ 68[A] $ 29[A] $ 18 $ 19
3 years $ 90 $ 73 $ 85[A] $ 58 $ 55 $ 58
5 years $ 115 $ 100 $ 114[A] $ 100 $ 94 $ 100
10 years[B] $ 184 $ 179 $ 180 $ 217 $ 180 $ 217
</TABLE>
[A] REFLECTS DEDUCTION OF APPLICABLE CDSC.
[B] REFLECTS CONVERSION OF CLASS B SHARES TO CLASS A SHARES AFTER
SEVEN YEARS.
The following information replaces similar information for
INTERMEDIATE 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
INTERMEDIATE MUNICIPAL INCOME 1 year $ 46 $ 36 $ 47[A] $ 28[A] $ 17 $ 18
3 years $ 65 $ 55 $ 62[A] $ 55 $ 52 $ 55
5 years[C] $ 85 $ 76 $ 81 $ 95 $ 81 $ 95
10 years[C] $ 144 $ 135 $ 140 $ 206 $ 140 $ 206
</TABLE>
[A] REFLECTS DEDUCTION OF APPLICABLE CDSC.
[C] REFLECTS CONVERSION OF CLASS B SHARES TO CLASS A SHARES AFTER FOUR
YEARS.
The following information replaces similar information for
INTERMEDIATE MUNICIPAL INCOME found in "Expenses" on page 11.
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>
Class A Effective Date Class T Effective Date Class B Effective Date Class C Effective Date
Intermediate
Municipal Income 0.90% 8/30/96 0.90% 5/29/98 1.65% 1/1/96 1.75% 11/1/97
</TABLE>
The following information replaces similar information found under the
heading "FMR and Its Affiliates" in the "Charter" section on page 56.
Ian Spreadbury is manager of Advisor Strategic Income's foreign bond
investments, which he has managed since May 1998. He also co-manages
another Fidelity fund. Additionally, Mr. Spreadbury is a director of
fixed income and a portfolio manager for Fidelity International
Limited (FIL). Prior to joining Fidelity in 1995, Mr. Spreadbury was a
senior manager with Legal & General, Limited, from 1981 to 1995.
Christine Thompson is Vice President and manager of Advisor Municipal
Income, which she has managed since July 1998. She also manages
several other Fidelity funds. Since joining Fidelity in 1985, Ms.
Thompson has worked as a senior analyst and portfolio manager.
The following information replaces similar information found under the
heading "Strategic Income Fund" in "Investment Principles and Risks"
on page 59.
The fund invests primarily in debt securities, including lower-quality
securities, allocated among four general investment categories: high
yield securities, U.S. Government and investment-grade securities,
emerging market securities, and foreign developed market securities.
The fund's neutral mix, or the benchmark for its combination of
investments in each category over time, is approximately 40% high
yield, 30% U.S. Government and investment-grade, 15% emerging markets
and 15% foreign developed markets. The fund also may invest a portion
of its assets in convertible securities and common and preferred
stocks.
The HIGH YIELD category includes high-yielding, lower-quality
securities consisting mainly of U.S. securities. The U.S. GOVERNMENT
AND INVESTMENT-GRADE category includes mortgage securities, U.S.
Government securities, government agency securities and other U.S.
dollar-denominated securities of investment-grade quality. The
EMERGING MARKET category includes corporate and governmental
securities of any quality of issuers located in emerging markets. The
FOREIGN DEVELOPED MARKET category includes corporate and governmental
securities of any quality of issuers located in developed foreign
markets. These investment categories are only general guidelines, and
FMR may use its judgment as to which category an investment falls
within. The fund may also make investments that do not fall within
these categories.
The following information replaces the thirteent h f paragraph
found under the heading "Other Expenses" in the "Breakdown of
Expenses" section beginning on page 69.
In addition, pursuant to each Class B plan, Class B of each fund pays
FDC a monthly service fee at an annual rate of 0.25% of Class B's
average net assets throughout the month. Up to the full amount of the
Class B service fee may be reallowed to investment professionals for
providing personal service to and/or maintenance of Class B
shareholder accounts .
The following information replaces the fourteenth and fifteenth
paragraphs found under the heading "Other Expenses" in the "Breakdown
of Expenses" section beginning on page 69.
Class C shares of each fund (except Strategic Opportunities, Mortgage
Securities, and Short-Intermediate Municipal Income) have adopted a
DISTRIBUTION AND SERVICE PLAN. Under the plans, Class C of each fund
is authorized to pay FDC a monthly distribution fee as compensation
for its services and expenses in connection with the distribution of
Class C shares. Class C of each fund may pay FDC a distribution fee at
an annual rate of 0.75% of its average net assets, or such lesser
amount as the Trustees may determine from time to time. Class C of
each fund currently pays FDC a monthly distribution fee at an annual
rate of 0.75% of its average net assets throughout the month.
Normally, after the first year of investment, up to the full amount of
the Class C distribution fee may be reallowed to investment
professionals as compensation for their services in connection with
the distribution of Class C shares.
In addition, pursuant to each Class C plan, Class C of each fund pays
FDC a monthly service fee at an annual rate of 0.25% of Class C's
average net assets throughout the month. Normally, after the first
year of investment, up to the full amount of the Class C service fee
may be reallowed to investment professionals for providing personal
service to and/or maintenance of Class C shareholder accounts.
For purchases of Class C shares made for an employee benefit plan or
through reinvested dividends or capital gain distributions, during the
first year of investment and thereafter, up to the full amount of the
Class C distribution fee and Class C service fee paid by such shares
may be reallowed to investment professionals as compensation for their
services in connection with the distribution of Class C shares and for
providing personal service to and/or maintenance of Class C
shareholder accounts.
The following information replaces similar information found in "How
to Buy Shares" on page 72.
IF YOU ARE NEW TO THE FIDELITY ADVISOR FUNDS, complete and sign an
account application and mail it along with your check. If there is no
account application accompanying this prospectus, call your investment
professional or, if you are investing through a broker-dealer or
insurance representative, call 1-800-522-7297 or, if you are investing
through a bank representative, call 1-800-843-3001.
The following information supplements the information found under the
heading "Finder's Fee" in the "Transaction Details" section on page
80.
Investment professionals must notify FDC in advance of a purchase
eligible for a finder's fee, and may be required to enter into an
agreement with FDC in order to receive the finder's fee.
The following information replaces the third paragraph under the
heading "Contingent Deferred Sales Charge" in the "Transaction
Details" section on page 80.
Except as provided below, investment professionals with whom FDC has
agreements receive as compensation from FDC, at the time of the sale,
a concession equal to 4.00% (2.00% for the Intermediate-Term Bond
Funds) of your purchase of Class B shares. For purchases of Class B
shares through reinvested dividends or capital gain distributions,
investment professionals do not receive a concession at the time of
sale.
The following information replaces the fifth paragraph under the
heading "Contingent Deferred Sales Charge" in the "Transactions
Details" section on page 80.
Except as provided below, investment professionals with whom FDC has
agreements receive as compensation from FDC, at the time of the sale,
a concession equal to 1.00% of your purchase of Class C shares. For
purchases of Class C shares made for an employee benefit plan or
through reinvested dividends or capital gain distributions, investment
professionals do not receive a concession at the time of sale.
The following information replaces similar information found in "Sales
Charge Reductions and Waivers" on page 83.
A FRONT-END SALES CHARGE WILL NOT APPLY TO THE FOLLOWING CLASS A
SHARES:
5. Purchased for (i) an employee benefit plan that has $25 million or
more in plan assets or (ii) an employee benefit plan that is part of
an investment professional sponsored program that requires the
participating employee benefit plan to initially invest in Class C or
Class B shares and, upon meeting certain criteria, subsequently
requires the plan to invest in Class A shares, or
SUPPLEMENT TO THE FIDELITY ADVISOR FUNDS
INSTITUTIONAL CLASS FEBRUARY 28,1998 PROSPECTUS
SHAREHOLDER MEETING. On or about November 18, 1998, a
meeting of the shareholders of Fidelity Advisor Equity Income Fund
will be held to approve various proposals, including modifications to
the fund's management contract. Shareholders of record on September
21, 1998 are entitled to vote at the meeting. Included in the proposed
management contract modifications is a proposal to revise the fund's
current flat management fee structure to a group fee structure that is
standard for other comparable Fidelity equity funds. The proposed
contract modifications also include a proposal to allow FMR and the
trust, on behalf of the fund, to amend the fund's management contract
subject to the provisions of Section 15 of the Investment Company Act
of 1940.
For more detailed information concerning the proposals under
consideration, please contact Client Services at 1-800-522-7297 to
request a free copy of the proxy statement.
AS OF MAY 28, 1998, Fidelity Advisor Short-Intermediate Municipal
Income Fund was merged into the corresponding class of Fidelity
Advisor Intermediate Municipal Income Fund and shareholders of
Fidelity Advisor Short-Intermediate Municipal Income Fund became
shareholders of Fidelity Advisor Intermediate Municipal Income Fund.
The merger was voted on and approved at a shareholder meeting on May
4, 1998. Fidelity Advisor Short-Intermediate Municipal Income Fund
ceased to exist and is not offered.
The following information replaces each reference to 1-800-843-3001.
If you are investing through a broker-dealer or insurance
representative, call 1-800-522-7297. If you are investing through a
bank representative, call 1-800-843-3001.
The following information replaces the third paragraph under the
heading "FMR and Its Affiliates" in the "Charter" section on page 22.
Beginning January 1, 1999, Fidelity Investments Money Management, Inc.
(FIMM), located in Merrimack, New Hampshire, will select certain types
of investments for Balanced and Strategic Income. Beginning January 1,
1999, FIMM will have primary responsibility for providing investment
management services for Mortgage Securities, Government Investment,
Intermediate Bond, Short Fixed-Income, Municipal Income, Intermediate
Municipal Income, and Short-Intermediate Municipal Income.
The following information replaces similar information found under the
heading "FMR and Its Affiliates" in the "Charter" section on page 23.
Ian Spreadbury is manager of Advisor Strategic Income's foreign bond
investments, which he has managed since May 1998. He also co-manages
another Fidelity fund. Additionally, Mr. Spreadbury is a director of
fixed income and a portfolio manager for Fidelity International,
Limited (FIL). Prior to joining Fidelity in 1995, Mr. Spreadbury was a
senior manager with Legal & General, Limited, from 1981 to 1995.
Christine Thompson is Vice President and manager of Advisor Municipal
Income, which she has managed since July 1998. She also manages
several other Fidelity funds. Since joining Fidelity in 1985, Ms.
Thompson has worked as a senior analyst and portfolio manager.
The following information replaces the second and fourth paragraphs,
respectively, under the heading "Strategic Income Fund" in "Investment
Principles and Risks" on page 26.
The fund invests primarily in debt securities including lower-quality
securities, allocated among four general investment categories: high
yield securities, U.S. Government and investment-grade securities,
emerging market securities, and foreign developed market securities.
The fund's neutral mix, or the benchmark for its combination of
investments in each category over time, is approximately 40% high
yield, 30% U.S. Government and investment-grade, 15% emerging markets
and 15% foreign developed markets. The fund also may invest a portion
of its assets in convertible securities and common and preferred
stocks.
The HIGH YIELD category includes high-yielding, lower-quality
securities consisting mainly of U.S. securities. The U.S. GOVERNMENT
AND INVESTMENT-GRADE category includes mortgage securities, U.S.
Government securities, government agency securities and other U.S.
dollar-denominated securities of investment-grade quality. The
EMERGING MARKET category includes corporate and governmental
securities of any quality of issuers located in emerging markets. The
FOREIGN DEVELOPED MARKET category includes corporate and governmental
securities of any quality of issuers located in developed foreign
markets. These investment categories are only general guidelines, and
FMR may use its judgment as to which category an investment falls
within. The fund may also make investments that do not fall within
these categories.
