FIDELITY ADVISOR SERIES I, N-30D, 2000-01-26

FIDELITY ADVISOR SERIES I
N-30D, 2000-01-26

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(2_FIDELITY_LOGOS)

FIDELITY(REGISTERED TRADEMARK) ADVISOR
(registered trademark)
ASSET ALLOCATION
FUND - CLASS A, CLASS T, CLASS B AND CLASS C

ANNUAL REPORT

NOVEMBER 30, 1999

CONTENTS

PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.

PERFORMANCE 4 How the fund has done over
time.

FUND TALK 12 The manager's review of fund
performance, strategy and
outlook.

INVESTMENT CHANGES 15 A summary of major shifts in
the fund's investments over
the past six months.

INVESTMENTS 16 A complete list of the fund's
investments with their
market values.

FINANCIAL STATEMENTS 34 Statements of assets and
liabilities, operations, and
changes in net assets, as
well as financial highlights.

NOTES 43 Notes to the financial
statements.

REPORT OF INDEPENDENT 50 The auditors' opinion.
ACCOUNTANTS

Standard & Poor's, S&P and S&P 500 are registered service marks of The
McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity
Distributors Corporation.

Other third party marks appearing herein are the property of their
respective owners.

All other marks appearing herein are registered or unregistered
trademarks or service marks of FMR Corp. or an affiliated company.

This report is printed on recycled paper using soy-based inks.

THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE
SUBMITTED FOR THE GENERAL INFORMATION OF THE SHAREHOLDERS OF THE FUND.
THIS REPORT IS NOT AUTHORIZED FOR DISTRIBUTION TO PROSPECTIVE
INVESTORS IN THE FUND UNLESS PRECEDED OR ACCOMPANIED BY AN EFFECTIVE
PROSPECTUS.

MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED
BY, ANY DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE FDIC,
FEDERAL RESERVE BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO
INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT
INVESTED.

NEITHER THE FUND NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK.

FOR MORE INFORMATION ON ANY FIDELITY ADVISOR FUND, INCLUDING CHARGES
AND EXPENSES, CONTACT YOUR INVESTMENT PROFESSIONAL FOR A FREE
PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST OR SEND MONEY.

PRESIDENT'S MESSAGE

(photo_of_Edward_C_Johnson_3d)

DEAR SHAREHOLDER:
U.S. equity indexes once again dominated the financial headlines, led
by the NASDAQ's 15 record highs in 21 November sessions. Meanwhile,
the Standard & Poor's 500 SM posted two record closings and the Dow
Jones Industrial Average crept above the 11,000 mark for the first
time since mid-September. However, another Federal Reserve Board
interest rate hike and continued inflation concerns drove down the
price of the benchmark 30-year Treasury.

While it's impossible to predict the future direction of the markets
with any degree of certainty, there are certain basic principles that
can help investors plan for their future needs.

First, investors are encouraged to take a long-term view of their
portfolios. If you can afford to leave your money invested through the
inevitable up and down cycles of the financial markets, you will
greatly reduce your vulnerability to any single decline. We know from
experience, for example, that stock prices have gone up over longer
periods of time, have significantly outperformed other types of
investments and have stayed ahead of inflation.

Second, you can further manage your investing risk through
diversification. A stock mutual fund, for instance, is already
diversified, because it invests in many different companies. You can
increase your diversification further by investing in a number of
different stock funds, or in such other investment categories as
bonds. If you have a short investment time horizon, you might want to
consider moving some of your investment into a money market fund,
which seeks income and a stable share price by investing in
high-quality, short-term investments. Of course, it's important to
remember that an investment in a money market fund is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other
government agency. Although money market funds seek to preserve the
value of your investment at $1.00 per share, it is possible to lose
money by investing in these types of funds.

Finally, no matter what your time horizon or portfolio diversity, it
makes good sense to follow a regular investment plan, investing a
certain amount of money in a fund at the same time each month or
quarter and periodically reviewing your overall portfolio. By doing
so, you won't get caught up in the excitement of a rapidly rising
market, nor will you buy all your shares at market highs. While this
strategy - known as dollar cost averaging - won't assure a profit or
protect you from a loss in a declining market, it should help you
lower the average cost of your purchases. Of course, you should
consider your financial ability to continue your purchases through
periods of low price levels before undertaking such a strategy.

Remember to contact your investment professional if you need help with
your investments.

Best regards,
Edward C. Johnson 3d

FIDELITY ADVISOR ASSET ALLOCATION FUND - CLASS A
PERFORMANCE: THE BOTTOM LINE

CUMULATIVE TOTAL RETURNS

PERIOD ENDED NOVEMBER 30, 1999 LIFE OF FUND

FIDELITY ADV ASSET ALLOCATION 9.20%
- - CL A

FIDELITY ADV ASSET ALLOCATION 2.92%
- - CL A (INCL. 5.75% SALES
CHARGE)

Fidelity Adv Asset Allocation 10.51%
Composite

S&P 500(registered trademark) 14.67%

LB Aggregate Bond 0.20%

LB 3 Month T-Bill 4.48%

CUMULATIVE TOTAL RETURNS show Class A's performance in percentage
terms over a set period - in this case, since the fund started on
December 28, 1998. For example, if you had invested $1,000 in a fund
that had a 5% return over the past year, the value of your investment
would be $1,050. You can compare Class A's returns to the performance
of the Fidelity Advisor Asset Allocation Composite Index, a
hypothetical combination of unmanaged indices. The composite index
combines the total returns of the Standard & Poor's 500 Index, the
Lehman Brothers Aggregate Bond Index and the Lehman Brothers 3 Month
Treasury Bill Index, weighted according to the fund's neutral mix .
The benchmarks listed in the table above include reinvested dividends
and capital gains, if any, and exclude the effect of sales charges.

AVERAGE ANNUAL TOTAL RETURNS

AVERAGE ANNUAL TOTAL RETURNS take Class A shares' cumulative return
and show you what would have happened if Class A shares had performed
at a constant rate each year. These numbers will be reported once the
fund is a year old.

$10,000 OVER LIFE OF FUND
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
FA Asset Allocation CL A S&P 500 70 S&P/25 LBAgg/5 LB 3Mo LB Aggregate Bond
00726 SP001 F0022 LB001
1998/12/28 9425.00 10000.00 10000.00 10000.00
1998/12/31 9490.98 10031.66 10035.77 10054.20
1999/01/31 9933.95 10451.19 10349.38 10126.02
1999/02/28 9622.93 10126.36 10080.60 9949.22
1999/03/31 9896.25 10531.52 10379.06 10004.42
1999/04/30 10018.78 10939.40 10670.53 10036.13
1999/05/31 9773.73 10681.13 10472.78 9947.81
1999/06/30 10084.75 11273.93 10873.32 9916.04
1999/07/31 9867.98 10921.96 10626.56 9874.40
1999/08/31 9839.70 10867.89 10590.53 9869.38
1999/09/30 9660.63 10570.00 10420.44 9983.91
1999/10/31 10131.88 11238.87 10893.80 10020.74
1999/11/30 10292.10 11467.36 11050.85 10020.05
IMATRL PRASUN SHR__CHT 19991130 19991222 125843 R00000000000015
</TABLE>

$10,000 OVER LIFE OF FUND: Let's say hypothetically that $10,000 was
invested in Fidelity Advisor Asset Allocation Fund - Class A on
December 28, 1998, when the fund started, and the current 5.75% sales
charge was paid. As the chart shows, by November 30, 1999, the value
of the investment would have grown to $10,292 - a 2.92% increase on
the initial investment. For comparison, look at how both the S&P 500
Index, a market capitalization-weighted index of common stocks, and
the Lehman Brothers Aggregate Bond Index, a market value-weighted
index of investment-grade fixed-rate debt issues, including
government, corporate, asset-backed, and mortgage-backed securities
with maturities of one year or more, did over the same period. With
dividends and capital gains, if any, reinvested, the same $10,000
investment in the S&P 500 Index would have grown to $11,467 - a 14.67%
increase. If $10,000 was invested in the Lehman Brothers Aggregate
Bond Index, it would have grown to $10,020 - a 0.20% increase. You can
also look at how the Fidelity Advisor Asset Allocation Composite
Index, a hypothetical combination of unmanaged indices, did over the
same period. The composite index combines the total returns of the S&P
500 Index (+70%), the Lehman Brothers Aggregate Bond Index (+25%) and
the Lehman Brothers 3-Month T-Bill Index (+5%) according to the fund's
neutral mix.* With dividends and capital gains, if any, reinvested,
the same $10,000 investment would have grown to $11,051 - a 10.51%
increase.

UNDERSTANDING
PERFORMANCE

How a fund did yesterday is
no guarantee of how it will do
tomorrow. If you sell your
shares during a market
downturn, you might lose
money. But if you can ride out
the market's ups and downs,
you may have a gain.
(checkmark)

* CURRENTLY 70% STOCKS, 25% BONDS AND 5% SHORT-TERM/MONEY MARKET
INSTRUMENTS.

FIDELITY ADVISOR ASSET ALLOCATION FUND - CLASS T
PERFORMANCE: THE BOTTOM LINE

CUMULATIVE TOTAL RETURNS

PERIOD ENDED NOVEMBER 30, 1999 LIFE OF FUND

FIDELITY ADV ASSET ALLOCATION 8.90%
- - CL T

FIDELITY ADV ASSET ALLOCATION 5.09%
- - CL T (INCL. 3.50% SALES
CHARGE)

Fidelity Adv Asset Allocation 10.51%
Composite

S&P 500 14.67%

LB Aggregate Bond 0.20%

LB 3 Month T-Bill 4.48%

CUMULATIVE TOTAL RETURNS show Class T's performance in percentage
terms over a set period - in this case, since the fund started on
December 28, 1998. For example, if you had invested $1,000 in a fund
that had a 5% return over the past year, the value of your investment
would be $1,050. You can compare Class T's returns to the performance
of the Fidelity Advisor Asset Allocation Composite Index, a
hypothetical combination of unmanaged indices. The composite index
combines the total returns of the Standard & Poor's 500 Index, the
Lehman Brothers Aggregate Bond Index and the Lehman Brothers 3 Month
Treasury Bill Index, weighted according to the fund's neutral mix .
The benchmarks listed in the table above include reinvested dividends
and capital gains, if any, and exclude the effect of sales charges.
AVERAGE ANNUAL TOTAL RETURNS

AVERAGE ANNUAL TOTAL RETURNS take Class T shares' cumulative return
and show you what would have happened if Class T shares had performed
at a constant rate each year. These numbers will be reported once the
fund is a year old.

$10,000 OVER LIFE OF FUND

FA Asset Allocation CL T S&P 500 70 S&P/25 LBAgg/5 LB 3Mo LB Aggregate Bond
00730 SP001 F0022 LB001
1998/12/28 9650.00 10000.00 10000.00 10000.00
1998/12/31 9717.55 10031.66 10035.77 10054.20
1999/01/31 10171.10 10451.19 10349.38 10126.02
1999/02/28 9852.65 10126.36 10080.60 9949.22
1999/03/31 10132.50 10531.52 10379.06 10004.42
1999/04/30 10257.95 10939.40 10670.53 10036.13
1999/05/31 10007.05 10681.13 10472.78 9947.81
1999/06/30 10315.85 11273.93 10873.32 9916.04
1999/07/31 10084.25 10921.96 10626.56 9874.40
1999/08/31 10064.95 10867.89 10590.53 9869.38
1999/09/30 9871.95 10570.00 10420.44 9983.91
1999/10/31 10354.45 11238.87 10893.80 10020.74
1999/11/30 10508.85 11467.36 11050.85 10020.05
IMATRL PRASUN SHR__CHT 19991130 19991222 131655 R00000000000015
</TABLE>

$10,000 OVER LIFE OF FUND: Let's say hypothetically that $10,000 was
invested in Fidelity Advisor Asset Allocation Fund - Class T on
December 28, 1998, when the fund started, and the current 3.50% sales
charge was paid. As the chart shows, by November 30, 1999, the value
of the investment would have grown to $10,509 - a 5.09% increase on
the initial investment. For comparison, look at how both the S&P 500
Index, a market capitalization-weighted index of common stocks, and
the Lehman Brothers Aggregate Bond Index, a market value-weighted
index of investment-grade fixed-rate debt issues, including
government, corporate, asset-backed, and mortgage-backed securities
with maturities of one year or more, did over the same period. With
dividends and capital gains, if any, reinvested, the same $10,000
investment in the S&P 500 Index would have grown to $11,467 - a 14.67%
increase. If $10,000 was invested in the Lehman Brothers Aggregate
Bond Index, it would have grown to $10,020 - a 0.20% increase. You can
also look at how the Fidelity Advisor Asset Allocation Composite
Index, a hypothetical combination of unmanaged indices, did over the
same period. The composite index combines the total returns of the S&P
500 Index (+70%), the Lehman Brothers Aggregate Bond Index (+25%) and
the Lehman Brothers 3-Month T-Bill Index (+5%) according to the fund's
neutral mix.* With dividends and capital gains, if any, reinvested,
the same $10,000 investment would have grown to $11,051 - a 10.51%
increase.

UNDERSTANDING
PERFORMANCE

(checkmark)

* CURRENTLY 70% STOCKS, 25% BONDS AND 5% SHORT-TERM/MONEY MARKET
INSTRUMENTS.

FIDELITY ADVISOR ASSET ALLOCATION FUND - CLASS B
PERFORMANCE: THE BOTTOM LINE

CUMULATIVE TOTAL RETURNS

PERIOD ENDED NOVEMBER 30, 1999 LIFE OF FUND

FIDELITY ADV ASSET ALLOCATION 8.50%
- - CL B

FIDELITY ADV ASSET ALLOCATION 3.50%
- - CL B (INCL. CONTINGENT
DEFERRED SALES CHARGE)

Fidelity Adv Asset Allocation 10.51%
Composite

S&P 500 14.67%

LB Aggregate Bond 0.20%

LB 3 Month T-Bill 4.48%

CUMULATIVE TOTAL RETURNS show Class B's performance in percentage
terms over a set period - in this case, since the fund started on
December 28, 1998. For example, if you had invested $1,000 in a fund
that had a 5% return over the past year, the value of your investment
would be $1,050. You can compare Class B's returns to the performance
of the Fidelity Advisor Asset Allocation Composite Index, a
hypothetical combination of unmanaged indices. The composite index
combines the total returns of the Standard & Poor's 500 Index, the
Lehman Brothers Aggregate Bond Index and the Lehman Brothers 3 Month
Treasury Bill Index, weighted according to the fund's neutral mix .
The benchmarks listed in the table above include reinvested dividends
and capital gains, if any, and exclude the effect of sales charges.

AVERAGE ANNUAL TOTAL RETURNS

AVERAGE ANNUAL TOTAL RETURNS take Class B shares' cumulative return
and show you what would have happened if Class B shares had performed
at a constant rate each year. These numbers will be reported once the
fund is a year old.

$10,000 OVER LIFE OF FUND
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
FA Asset Allocation CL B 70 S&P/25 LBAgg/5 LB 3Mo S&P 500 LB Aggregate Bond
00727 F0022 SP001 LB001
1998/12/28 10000.00 10000.00 10000.00 10000.00
1998/12/31 10070.00 10035.77 10031.66 10054.20
1999/01/31 10540.00 10349.38 10451.19 10126.02
1999/02/28 10200.00 10080.60 10126.36 9949.22
1999/03/31 10490.00 10379.06 10531.52 10004.42
1999/04/30 10610.00 10670.53 10939.40 10036.13
1999/05/31 10350.00 10472.78 10681.13 9947.81
1999/06/30 10670.00 10873.32 11273.93 9916.04
1999/07/31 10430.00 10626.56 10921.96 9874.40
1999/08/31 10400.00 10590.53 10867.89 9869.38
1999/09/30 10210.00 10420.44 10570.00 9983.91
1999/10/31 10690.00 10893.80 11238.87 10020.74
1999/11/30 10350.00 11050.85 11467.36 10020.05
IMATRL PRASUN SHR__CHT 19991130 19991227 153455 R00000000000015
</TABLE>

$10,000 OVER LIFE OF FUND: Let's say hypothetically that $10,000 was
invested in Fidelity Advisor Asset Allocation Fund - Class B on
December 28, 1998, when the fund started. As the chart shows, by
November 30, 1999, the value of the investment, including the effect
of the applicable contingent deferred sales charge, would have grown
to $10,350 - a 3.50% increase on the initial investment. For
comparison, look at how both the S&P 500 Index, a market
capitalization-weighted index of common stocks, and the Lehman
Brothers Aggregate Bond Index, a market value-weighted index of
investment-grade fixed-rate debt issues, including government,
corporate, asset-backed, and mortgage-backed securities with
maturities of one year or more, did over the same period. With
dividends and capital gains, if any, reinvested, the same $10,000
investment in the S&P 500 Index would have grown to $11,467 - a 14.67%
increase. If $10,000 was invested in the Lehman Brothers Aggregate
Bond Index, it would have grown to $10,020 - a 0.20% increase. You can
also look at how the Fidelity Advisor Asset Allocation Composite
Index, a hypothetical combination of unmanaged indices, did over the
same period. The composite index combines the total returns of the S&P
500 Index (+70%), the Lehman Brothers Aggregate Bond Index (+25%) and
the Lehman Brothers 3-Month T-Bill Index (+5%) according to the fund's
neutral mix.* With dividends and capital gains, if any, reinvested,
the same $10,000 investment would have grown to $11,051 - a 10.51%
increase.

UNDERSTANDING
PERFORMANCE

* CURRENTLY 70% STOCKS, 25% BONDS AND 5% SHORT-TERM/MONEY MARKET
INSTRUMENTS.

FIDELITY ADVISOR ASSET ALLOCATION FUND - CLASS C
PERFORMANCE: THE BOTTOM LINE

CUMULATIVE TOTAL RETURNS

PERIOD ENDED NOVEMBER 30, 1999 LIFE OF FUND

FIDELITY ADV ASSET ALLOCATION 8.50%
- - CL C

FIDELITY ADV ASSET ALLOCATION 7.50%
- - CL C (INCL. CONTINGENT
DEFERRED SALES CHARGE)

Fidelity Adv Asset Allocation 10.51%
Composite

S&P 500 14.67%

LB Aggregate Bond 0.20%

LB 3 Month T-Bill 4.48%

CUMULATIVE TOTAL RETURNS show Class C's performance in percentage
terms over a set period - in this case, since the fund started on
December 28, 1998. For example, if you had invested $1,000 in a fund
that had a 5% return over the past year, the value of your investment
would be $1,050. You can compare Class C's returns to the performance
of the Fidelity Advisor Asset Allocation Composite Index, a
hypothetical combination of unmanaged indices. The composite index
combines the total returns of the Standard & Poor's 500 Index, the
Lehman Brothers Aggregate Bond Index and the Lehman Brothers 3 Month
Treasury Bill Index, weighted according to the fund's neutral mix .
The benchmarks listed in the table above include reinvested dividends
and capital gains, if any, and exclude the effect of sales charges.

AVERAGE ANNUAL TOTAL RETURNS

AVERAGE ANNUAL TOTAL RETURNS take Class C shares' cumulative return
and show you what would have happened if Class C shares had performed
at a constant rate each year. These numbers will be reported once the
fund is a year old.

$10,000 OVER LIFE OF FUND
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
FA Asset Allocation CL C S&P 500 70 S&P/25 LBAgg/5 LB 3Mo LB Aggregate Bond
00728 SP001 F0022 LB001
1998/12/28 10000.00 10000.00 10000.00 10000.00
1998/12/31 10070.00 10031.66 10035.77 10054.20
1999/01/31 10540.00 10451.19 10349.38 10126.02
1999/02/28 10200.00 10126.36 10080.60 9949.22
1999/03/31 10490.00 10531.52 10379.06 10004.42
1999/04/30 10610.00 10939.40 10670.53 10036.13
1999/05/31 10350.00 10681.13 10472.78 9947.81
1999/06/30 10670.00 11273.93 10873.32 9916.04
1999/07/31 10420.00 10921.96 10626.56 9874.40
1999/08/31 10390.00 10867.89 10590.53 9869.38
1999/09/30 10200.00 10570.00 10420.44 9983.91
1999/10/31 10690.00 11238.87 10893.80 10020.74
1999/11/30 10750.00 11467.36 11050.85 10020.05
IMATRL PRASUN SHR__CHT 19991130 19991222 144326 R00000000000015
</TABLE>

$10,000 OVER LIFE OF FUND: Let's say hypothetically that $10,000 was
invested in Fidelity Advisor Asset Allocation Fund - Class C on
December 28, 1998, when the fund started. As the chart shows, by
November 30, 1999, the value of the investment, including the effect
of the applicable contingent deferred sales charge, would have grown
to $10,750 - a 7.50% increase on the initial investment. For
comparison, look at how both the S&P 500 Index, a market
capitalization-weighted index of common stocks, and the Lehman
Brothers Aggregate Bond Index, a market value-weighted index of
investment-grade fixed-rate debt issues, including government,
corporate, asset-backed, and mortgage-backed securities with
maturities of one year or more, did over the same period. With
dividends and capital gains, if any, reinvested, the same $10,000
investment in the S&P 500 Index would have grown to $11,467 - a 14.67%
increase. If $10,000 was invested in the Lehman Brothers Aggregate
Bond Index, it would have grown to $10,020 - a 0.20% increase. You can
also look at how the Fidelity Advisor Asset Allocation Composite
Index, a hypothetical combination of unmanaged indices, did over the
same period. The composite index combines the total returns of the S&P
500 Index (+70%), the Lehman Brothers Aggregate Bond Index (+25%) and
the Lehman Brothers 3-Month T-Bill Index (+5%) according to the fund's
neutral mix.* With dividends and capital gains, if any, reinvested,
the same $10,000 investment would have grown to $11,051 - a 10.51%
increase.

UNDERSTANDING
PERFORMANCE

* CURRENTLY 70% STOCKS, 25% BONDS AND 5% SHORT-TERM/MONEY MARKET
INSTRUMENTS.

FUND TALK: THE MANAGER'S OVERVIEW

MARKET RECAP

Technology stocks garnered the lion's
share of investors' affection, outpacing
the broader market by a wide margin
during the 12-month period that ended
November 30, 1999. But rising interest
rates spurred by strength in the
economy, along with several moves by
the Federal Reserve Board to tighten
monetary policy, kept most stocks
longing for attention during this time
frame. Tech stocks, seemingly bent on
re-writing the record books, shook off
the interest-rate concerns that
beleaguered most stocks over the
course of the period. The
technology-rich NASDAQ index
delivered a series of new highs en route
to closing out the period up 71.64%.
The Standard & Poor's 500 Index, itself
powered by the narrow advances of a
small group of technology-oriented
stocks, posted a return of 20.90%.
For bonds, it was an uphill battle the
whole way. A deteriorating rate
picture weighed heavily on investors, as
bond prices generally declined during
the period. Treasuries had the roughest
time of it, wilting as all of 1998's
interest-rate cuts evaporated in the
span of a year. The struggle wasn't as
pronounced elsewhere in the bond
market, as spread sectors - namely,
corporates, mortgages and agencies
- - maintained their edge over
comparable duration Treasuries. As a
group, though, bonds couldn't keep
from slipping into the red, with the
Lehman Brothers Aggregate Bond
Index - a widely followed measure
of taxable-bond performance -
retreating 0.04%.

(photograph of Richard Habermann)

An interview with Richard Habermann, Portfolio Manager of Fidelity
Advisor Asset Allocation Fund

Q. HOW DID THE FUND PERFORM, DICK?

A. From December 28, 1998 - the fund's start date - through November
30, 1999, the fund's Class A, Class T, Class B and Class C shares
returned 9.20%, 8.90%, 8.50% and 8.50%, respectively. The Fidelity
Advisor Asset Allocation Composite Index returned 10.51% during that
time. In future reports, we'll also compare the fund's performance to
that of its Lipper Inc. peer group.

Q. WHAT ASSET ALLOCATION STRATEGIES DID YOU PURSUE DURING THE PERIOD?

A. The fund's neutral allocation mix calls for 70% to be invested in
stocks, 25% in bonds and the rest in short-term and money market
instruments. With stocks performing well through much of the period, I
kept the fund's average equity exposure at around 74%. Timing, though,
is also important, and the fund would have benefited from additional
stock exposure at several junctures, particularly during the spring.
On the bond side, the fund was somewhat underweighted on average to
accommodate the equity position. My decision to lower the fund's
exposure to investment-grade bonds worked out nicely, as rising
interest rates detracted from returns. My focus within the bond
subportfolio was instead on high-yield securities, which performed
very well relative to the Treasury market.

Q. HOW DID THE FUND'S EQUITY SUBPORTFOLIO PERFORM DURING THE PERIOD?

A. The fund's equities performed nearly in line with the S&P 500
index, quite an accomplishment considering the narrowness of the
market during the period. By that, I mean that 10 of the major stocks
within the index generated 55% of its advance. Conversely, the bottom
450 stocks within the index produced a negative aggregate return. The
technology sector led the market, and Brad Lewis - who manages the
fund's stock positions - was able to find enough good names to
outperform the S&P 500 within the technology sector. Tech stocks that
performed well included Sun Microsystems, Lexmark International and
Texas Instruments. The fund's stake in biotechnology company Amgen -
which benefited from strong sales of its popular anemia drug, Epogen -
also fared well. Positions that didn't perform well included medical
device manufacturer Guidant, grocery-store chain Safeway and
BellSouth. Overall, the fund's individual stock selection was strong,
but industry weightings detracted somewhat.

Q. HOW DID YOU ALLOCATE INVESTMENTS WITHIN THE FUND'S BOND
SUBPORTFOLIO?

A. I continued to emphasize high-yield bonds, which clearly turned out
to be a wise strategy. These positions - managed by Fred Hoff - posted
attractive yields against the backdrop of a strong U.S. economy and a
favorable corporate earnings outlook. The best individual high-yield
performers included telecommunications names Nextel Communications,
WinStar and Teligent. As far as the fund's investment-grade bond
positions, rising interest rates pressured returns for much of the
period. This subportfolio, managed by Charlie Morrison, was invested
primarily in Treasuries. The increase in rates was a function of
strengthening economic growth in both the U.S. and abroad; concerns
about potential inflationary pressures arising from a two-fold
increase in oil prices; strong employment and consumption growth; and
a more aggressive Federal Reserve Board.

Q. HOW DID YOU POSITION THE FUND'S SHORT-TERM/MONEY MARKET
INVESTMENTS?

A. With interest rates spiking up,
John Todd - who manages this subportfolio - focused mainly on
repurchase agreements. Repurchase agreements, or repos, are short-term
securities that the seller agrees to buy back at a specified price and
time. Repos offered the fund an effective sanctuary in which to invest
assets on a temporary basis during the period. They also provided an
adequate level of liquidity, which was desirable given the
interest-rate outlook. As more money comes into the fund and market
conditions settle, John will look at other types of money market
instruments with varying maturities.

Q. WHAT'S YOUR OUTLOOK?

A. Despite the global economic growth we've seen recently, inflation
remains subdued. Corporate earnings appear to be on solid ground for
next year as well, which means there may be more market segments that
are reasonably valued. I don't anticipate making any major adjustments
to the fund's allocation mix.

DICK HABERMANN DISCUSSES
THE IMPORTANCE OF
EMPHASIZING HIGH-YIELD
BONDS IN '99:

"High-yield bonds played a central
role in shaping the fund's
performance during the period.
At times, in fact, the fund's high-yield
investments represented close to
two-thirds of the entire bond
subportfolio.

"A healthy stock market and resilient
U.S. economy proved favorable for
the high-yield marketplace in that
investors were more willing to take
risks. Of course, the attractive yield
spreads between high-yield bonds
and government bonds also helped.

"What's important for shareholders
to know is that Fred Hoff and his
management team go to great
lengths to pick the best high-yield
investments possible. Research is
important for any investment, but
the complexities involved in
high-yield investing place an even
higher premium on thorough,
bottom-up analysis. Fred and his
research group spend lots of time
meeting with company management
teams and scouring the ins and
outs of every credit. Specifically,
Fred looks for issues that show
earnings growth momentum or
that have the ability to pay down
debt.

"Lately, the telecommunications
and cable TV industries have been
sources of good opportunity.
Companies in these areas tend to
float debt offerings frequently, and
the fund has been able to capitalize
on the strong performance within
these groups."

FUND FACTS

GOAL: maximum total return
over the long term through
investing in stocks, bonds
and short-term and money
market instruments

START DATE: December 28,
1998

SIZE: as of November 30,
1999, more than $26 million

MANAGER: Richard
Habermann, since inception;
joined Fidelity in 1968

(checkmark)

THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER AND DO NOT NECESSARILY REPRESENT THE VIEWS OF FIDELITY OR
ANY OTHER PERSON IN THE FIDELITY ORGANIZATION. ANY SUCH VIEWS ARE
SUBJECT TO CHANGE AT ANY TIME BASED UPON MARKET OR OTHER CONDITIONS
AND FIDELITY DISCLAIMS ANY RESPONSIBILITY TO UPDATE SUCH VIEWS. THESE
VIEWS MAY NOT BE RELIED ON AS INVESTMENT ADVICE AND, BECAUSE
INVESTMENT DECISIONS FOR A FIDELITY FUND ARE BASED ON NUMEROUS
FACTORS, MAY NOT BE RELIED ON AS AN INDICATION OF TRADING INTENT ON
BEHALF OF ANY FIDELITY FUND.

INVESTMENT CHANGES

<TABLE>
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<S> <C> <C>
TOP TEN STOCKS AS OF NOVEMBER
30, 1999

% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO

General Electric Co. 3.1 2.1

Texas Instruments, Inc. 3.1 0.4

Amgen, Inc. 3.0 2.8

SBC Communications, Inc. 2.9 0.6

Wal-Mart Stores, Inc. 2.6 3.4

Microsoft Corp. 2.6 3.5

Bristol-Myers Squibb Co. 2.2 2.1

Chase Manhattan Corp. 1.8 1.2

Fannie Mae 1.8 2.3

Lexmark International Group, 1.8 1.5
Inc. Class A

24.9 19.9

TOP TEN MARKET SECTORS AS OF
NOVEMBER 30, 1999

(STOCKS ONLY) % OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO

TECHNOLOGY 21.2 10.6

FINANCE 10.4 12.2

HEALTH 8.6 9.8

UTILITIES 8.3 12.1

RETAIL & WHOLESALE 6.0 8.9

INDUSTRIAL MACHINERY & 5.1 4.8
EQUIPMENT

ENERGY 3.5 3.5

DURABLES 3.3 1.9

MEDIA & LEISURE 3.2 1.7

NONDURABLES 2.6 8.1

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
ASSET ALLOCATION (% OF FUND'S
NET ASSETS)

AS OF NOVEMBER 30, 1999 * AS OF MAY 31, 1999 **

Stock Class 75% Stock Class 74%

Bond Class 22% Bond Class 19%

Short-Term Class 3% Short-Term Class 7%

* FOREIGN INVESTMENTS 1% ** FOREIGN INVESTMENTS 6%

</TABLE>

ASSET ALLOCATION IN THE PIE CHART REFLECT THE CATEGORIZATION OF ASSETS
AS DEFINED IN THE FUND'S PROSPECTUS IN EFFECT AS OF THE TIME PERIOD
INDICATED ABOVE. FINANCIAL STATEMENT CATEGORIZATIONS CONFORM TO
ACCOUNTING STANDARDS AND WILL DIFFER FROM THE PIE CHART.

Row: 1, Col: 1, Value: 75.0
Row: 1, Col: 2, Value: 0.0
Row: 1, Col: 3, Value: 0.0
Row: 1, Col: 4, Value: 0.0
Row: 1, Col: 5, Value: 22.0
Row: 1, Col: 6, Value: 0.0
Row: 1, Col: 7, Value: 0.0
Row: 1, Col: 8, Value: 3.0

Row: 1, Col: 1, Value: 74.0
Row: 1, Col: 2, Value: 0.0
Row: 1, Col: 3, Value: 0.0
Row: 1, Col: 4, Value: 19.0
Row: 1, Col: 5, Value: 0.0
Row: 1, Col: 6, Value: 0.0
Row: 1, Col: 7, Value: 0.0
Row: 1, Col: 8, Value: 7.0

PRIOR TO THIS REPORT, CERTAIN INFORMATION RELATED TO PORTFOLIO
HOLDINGS WAS STATED AS A PERCENTAGE OF THE FUND'S INVESTMENTS.

INVESTMENTS NOVEMBER 30, 1999

Showing Percentage of Net Assets

COMMON STOCKS - 73.3%

SHARES VALUE (NOTE 1)

AEROSPACE & DEFENSE - 0.6%

Boeing Co. 1,220 $ 49,791

United Technologies Corp. 1,970 111,305

161,096

BASIC INDUSTRIES - 0.9%

CHEMICALS & PLASTICS - 0.2%

Dow Chemical Co. 440 51,535

METALS & MINING - 0.5%

Alcoa, Inc. 2,100 137,550

PAPER & FOREST PRODUCTS - 0.2%

Champion International Corp. 390 21,621

Weyerhaeuser Co. 650 39,813

61,434

TOTAL BASIC INDUSTRIES 250,519

CONSTRUCTION & REAL ESTATE -
0.5%

BUILDING MATERIALS - 0.5%

Masco Corp. 5,400 136,350

DURABLES - 3.3%

AUTOS, TIRES, & ACCESSORIES -
0.4%

Ford Motor Co. 2,060 104,030

CONSUMER DURABLES - 1.6%

Minnesota Mining & 4,400 420,475
Manufacturing Co.

CONSUMER ELECTRONICS - 0.5%

Black & Decker Corp. 1,850 83,019

Whirlpool Corp. 1,040 63,440

146,459

TEXTILES & APPAREL - 0.8%

NIKE, Inc. Class B 4,580 210,680

TOTAL DURABLES 881,644

ENERGY - 3.5%

OIL & GAS - 3.5%

Atlantic Richfield Co. 2,520 242,865

Chevron Corp. 3,500 309,969

Exxon Corp. 550 43,622

COMMON STOCKS - CONTINUED

SHARES VALUE (NOTE 1)

ENERGY - CONTINUED

OIL & GAS - CONTINUED

Mobil Corp. 2,860 $ 298,334

The Coastal Corp. 540 19,035

913,825

FINANCE - 10.4%

BANKS - 2.6%

Chase Manhattan Corp. 6,270 484,358

J.P. Morgan & Co., Inc. 1,340 176,210

UnionBanCal Corp. 410 18,066

678,634

CREDIT & OTHER FINANCE - 0.5%

Citigroup, Inc. 2,380 128,223

FEDERAL SPONSORED CREDIT - 2.2%

Fannie Mae 7,060 470,373

Freddie Mac 2,450 120,969

591,342

INSURANCE - 2.2%

AFLAC, Inc. 1,370 65,589

American International Group, 4,430 457,398
Inc.

Lincoln National Corp. 220 9,171

MGIC Investment Corp. 320 18,080

Nationwide Financial 770 27,672
Services, Inc. Class A

577,910

SAVINGS & LOANS - 0.3%

Golden West Financial Corp. 740 74,694

SECURITIES INDUSTRY - 2.6%

Lehman Brothers Holdings, 2,020 154,278
Inc.

Merrill Lynch & Co., Inc. 940 75,788

Morgan Stanley Dean Witter & 3,410 411,331
Co.

PaineWebber Group, Inc. 1,380 54,079

695,476

TOTAL FINANCE 2,746,279

HEALTH - 8.6%

DRUGS & PHARMACEUTICALS - 7.6%

Allergan, Inc. 690 67,879

Amgen, Inc. (a) 17,420 793,699

COMMON STOCKS - CONTINUED

SHARES VALUE (NOTE 1)

HEALTH - CONTINUED

DRUGS & PHARMACEUTICALS -
CONTINUED

Biogen, Inc. (a) 3,610 $ 263,756

Bristol-Myers Squibb Co. 7,950 580,847

Pfizer, Inc. 1,240 44,873

Schering-Plough Corp. 4,920 251,535

Symyx Technologies, Inc. 100 3,450

2,006,039

MEDICAL EQUIPMENT & SUPPLIES
- - 0.7%

Johnson & Johnson 1,870 194,013

MEDICAL FACILITIES MANAGEMENT
- - 0.3%

Columbia/HCA Healthcare Corp. 1,680 45,780

United HealthCare Corp. 670 34,798

80,578

TOTAL HEALTH 2,280,630

INDUSTRIAL MACHINERY &
EQUIPMENT - 5.1%

ELECTRICAL EQUIPMENT - 3.6%

Emerson Electric Co. 970 55,290

General Electric Co. 6,220 808,600

General Instrument Corp. (a) 610 39,955

Scientific-Atlanta, Inc. 660 38,486

942,331

INDUSTRIAL MACHINERY &
EQUIPMENT - 1.5%

Dover Corp. 350 15,181

Illinois Tool Works, Inc. 380 24,605

Ingersoll-Rand Co. 4,150 201,016

Metron Technology NV 100 1,594

Tyco International Ltd. 4,060 162,654

405,050

TOTAL INDUSTRIAL MACHINERY & 1,347,381
EQUIPMENT

MEDIA & LEISURE - 3.0%

ENTERTAINMENT - 0.2%

Carnival Corp. 870 38,389

Royal Carribean Cruises Ltd. 300 14,813

53,202

COMMON STOCKS - CONTINUED

SHARES VALUE (NOTE 1)

MEDIA & LEISURE - CONTINUED

PUBLISHING - 2.3%

Gannet Co., Inc. 2,280 $ 163,162

McGraw-Hill Companies, Inc. 6,830 387,176

Tribune Co. 1,000 48,063

598,401

RESTAURANTS - 0.5%

Jack in the Box, Inc. (a) 450 9,478

McDonald's Corp. 2,870 129,150

138,628

TOTAL MEDIA & LEISURE 790,231

NONDURABLES - 2.6%

BEVERAGES - 0.6%

Anheuser-Busch Companies, 2,060 154,114
Inc.

FOODS - 1.4%

Quaker Oats Co. 5,620 366,705

HOUSEHOLD PRODUCTS - 0.2%

Procter & Gamble Co. 430 46,440

TOBACCO - 0.4%

Philip Morris Companies, Inc. 4,750 124,984

TOTAL NONDURABLES 692,243

RETAIL & WHOLESALE - 6.0%

APPAREL STORES - 0.5%

The Limited, Inc. 1,160 49,228

TJX Companies, Inc. 3,260 85,371

134,599

GENERAL MERCHANDISE STORES -
3.8%

Costco Wholesale Corp. (a) 340 31,174

Dayton Hudson Corp. 3,660 258,259

Federated Department Stores, 550 25,884
Inc. (a)

Wal-Mart Stores, Inc. 12,240 705,330

1,020,647

RETAIL & WHOLESALE,
MISCELLANEOUS - 1.7%

Best Buy Co., Inc. (a) 870 54,375

COMMON STOCKS - CONTINUED

SHARES VALUE (NOTE 1)

RETAIL & WHOLESALE - CONTINUED

RETAIL & WHOLESALE,
MISCELLANEOUS - CONTINUED

Lowe's Companies, Inc. 7,760 $ 386,545

SmarterKids.com, Inc. 100 1,531

442,451

TOTAL RETAIL & WHOLESALE 1,597,697

SERVICES - 0.2%

ADVERTISING - 0.1%

Digital Impact, Inc. 100 5,388

Lifeminders.com, Inc. 100 2,138

7,526

LEASING & RENTAL - 0.1%

Hertz Corp. Class A 680 28,773

SERVICES - 0.0%

GetThere.com, Inc. 100 2,544

The Management Network Group, 100 3,375
Inc.

5,919

TOTAL SERVICES 42,218

TECHNOLOGY - 21.2%

COMMUNICATIONS EQUIPMENT - 3.0%

Cisco Systems, Inc. (a) 4,010 357,642

Lucent Technologies, Inc. 5,940 433,991

791,633

COMPUTER SERVICES & SOFTWARE
- - 5.6%

Adobe Systems, Inc. 1,280 87,920

America Online, Inc. (a) 2,560 186,080

CacheFlow, Inc. 100 15,150

Computer Associates 4,490 291,850
International, Inc.

Exactis.com, Inc. 100 2,450

First Data Corp. 1,660 71,795

iManage, Inc. 100 3,788

Lycos, Inc. (a) 810 45,360

Mediaplex, Inc. 100 3,400

Metasolv Software, Inc. 100 6,169

Microsoft Corp. (a) 7,550 687,404

Novell, Inc. (a) 750 14,672

COMMON STOCKS - CONTINUED

SHARES VALUE (NOTE 1)

TECHNOLOGY - CONTINUED

COMPUTER SERVICES & SOFTWARE
- - CONTINUED

Official Payments Corp. 100 $ 3,675

Retek, Inc. 100 6,781

Sabre Group Holdings, Inc. 340 15,470
Class A (a)

SciQuest.com, Inc. 200 6,600

Sterling Software, Inc. (a) 410 10,788

VERITAS Software Corp. (a) 315 28,842

1,488,194

COMPUTERS & OFFICE EQUIPMENT
- - 2.9%

Adaptec, Inc. (a) 680 36,635

Apple Computer, Inc. (a) 2,470 241,751

International Business 210 21,643
Machines Corp.

Lexmark International Group, 5,620 466,460
Inc. Class A (a)

766,489

ELECTRONIC INSTRUMENTS - 1.2%

Applied Materials, Inc. (a) 700 68,206

KLA-Tencor Corp. (a) 980 82,871

Teradyne, Inc. (a) 3,530 153,776

304,853

ELECTRONICS - 8.5%

Conexant Systems, Inc. (a) 1,490 88,283

Intel Corp. 2,460 188,651

LSI Logic Corp. (a) 4,240 256,255

Maxim Integrated Products, 750 60,234
Inc. (a)

Micron Technology, Inc. (a) 880 59,070

Motorola, Inc. 3,960 452,430

PMC-Sierra, Inc. (a) 460 47,409

Solectron Corp. (a) 310 25,536

Texas Instruments, Inc. 8,360 803,083

Virata Corp. 100 3,213

Xilinx, Inc. (a) 2,870 256,865

2,241,029

TOTAL TECHNOLOGY 5,592,198

TRANSPORTATION - 0.1%

TRUCKING & FREIGHT - 0.1%

United Parcel Service, Inc. 290 19,158
Class B

COMMON STOCKS - CONTINUED

SHARES VALUE (NOTE 1)

UTILITIES - 7.3%

CELLULAR - 0.8%

ALLTEL Corp. 1,220 $ 105,530

QUALCOMM, Inc. (a) 280 101,448

TeleCorp PCS, Inc. 100 3,606

210,584

ELECTRIC UTILITY - 2.8%

DTE Energy Co. 3,790 125,307

Edison International 3,070 81,355

Florida Progress Corp. 1,460 62,415

GPU, Inc. 1,990 63,680

PP&L Resources, Inc. 2,440 56,273

Public Service Enterprise 4,940 172,900
Group, Inc.

Reliant Energy, Inc. 6,850 169,966

731,896

TELEPHONE SERVICES - 3.7%

BellSouth Corp. 4,260 196,759

Deltathree.com, Inc. 100 2,931

Ono Finance PLC rights 20 1,400
12/31/99 (a)(e)

Pathnet, Inc. warrants 30 300
4/15/08 (a)(e)

SBC Communications, Inc. 14,892 773,453

974,843

TOTAL UTILITIES 1,917,323

TOTAL COMMON STOCKS 19,368,792
(Cost $18,028,014)

NONCONVERTIBLE PREFERRED
STOCKS - 1.3%

MEDIA & LEISURE - 0.2%

BROADCASTING - 0.2%

CSC Holdings, Inc. 11.125% 131 14,214
pay-in-kind

Sinclair Capital 11.625% 254 25,400

39,614

NONCONVERTIBLE PREFERRED
STOCKS - CONTINUED

SHARES VALUE (NOTE 1)

MEDIA & LEISURE - CONTINUED

PUBLISHING - 0.0%

PRIMEDIA, Inc.:

$9.20 16 $ 1,472

8.625% 5 438

1,910

TOTAL MEDIA & LEISURE 41,524

SERVICES - 0.1%

LEASING & RENTAL - 0.1%

Crown Castle International 29 30,305
Corp. 12.75% pay-in-kind

UTILITIES - 1.0%

CELLULAR - 0.4%

Nextel Communications, Inc.:

11.125% pay-in-kind 96 96,000

Series D, 13% pay-in-kind 10 10,700

106,700

TELEPHONE SERVICES - 0.6%

Adelphia Business Solution, 24 22,320
Inc. 12.875%

Intermedia Communications, 11 10,450
Inc. 13.5% pay-in-kind

IXC Communications, Inc. 51 55,845
12.5% pay-in-kind

NEXTLINK Communications, Inc. 793 40,840
14% pay-in-kind

WinStar Communications, Inc. 40 32,400
14.25% (a)

161,855

TOTAL UTILITIES 268,555

TOTAL NONCONVERTIBLE 340,384
PREFERRED STOCKS
(Cost $329,974)

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
CORPORATE BONDS - 13.8%

MOODY'S RATINGS (UNAUDITED) (B) PRINCIPAL AMOUNT VALUE (NOTE 1)

CONVERTIBLE BONDS - 0.2%

HEALTH - 0.2%

MEDICAL FACILITIES MANAGEMENT
- - 0.2%

Tenet Healthcare Corp. 6% B1 $ 30,000 $ 24,000
12/1/05

Total Renal Care Holdings, B1 30,000 18,300
Inc. 7% 5/15/09 (e)

42,300

NONDURABLES - 0.0%

FOODS - 0.0%

Chiquita Brands B3 10,000 7,750
International, Inc. 7%
3/28/01

TOTAL CONVERTIBLE BONDS 50,050

NONCONVERTIBLE BONDS - 13.6%

BASIC INDUSTRIES - 1.1%

CHEMICALS & PLASTICS - 0.6%

Huntsman Corp. 9.5% 7/1/07 (e) B2 10,000 9,400

Huntsman ICI Chemicals LLC B2 50,000 51,125
10.125% 7/1/09 (e)

Lyondell Chemical Co.:

9.625% 5/1/07 Ba3 10,000 10,300

9.875% 5/1/07 Ba3 50,000 51,375

10.875% 5/1/09 B2 10,000 10,400

Sterling Chemicals, Inc. Caa3 30,000 21,300
11.75% 8/15/06

153,900

IRON & STEEL - 0.1%

AK Steel Corp. 7.875% 2/15/09 Ba2 10,000 9,400

The LTV Corp. 11.75% 11/15/09 Ba3 20,000 20,625
(e)

30,025

METALS & MINING - 0.3%

Kaiser Aluminum & Chemical B3 50,000 49,875
Corp. 12.75% 2/1/03

Metals USA, Inc. 8.625% B2 25,000 23,125
2/15/08

73,000

PACKAGING & CONTAINERS - 0.1%

Gaylord Container Corp. Caa1 40,000 37,300
9.375% 6/15/07

TOTAL BASIC INDUSTRIES 294,225

CORPORATE BONDS - CONTINUED

MOODY'S RATINGS (UNAUDITED) (B) PRINCIPAL AMOUNT VALUE (NOTE 1)

NONCONVERTIBLE BONDS -
CONTINUED

CONSTRUCTION & REAL ESTATE -
0.3%

CONSTRUCTION - 0.1%

U.S. Home Corp. 8.875% 2/15/09 B1 $ 40,000 $ 36,000

ENGINEERING - 0.0%

Anteon Corp. 12% 5/15/09 B3 10,000 9,350

REAL ESTATE - 0.2%

LNR Property Corp. 9.375% B1 50,000 46,250
3/15/08

TOTAL CONSTRUCTION & REAL 91,600
ESTATE

DURABLES - 0.2%

AUTOS, TIRES, & ACCESSORIES -
0.1%

Tenneco, Inc. 11.625% B2 20,000 20,050
10/15/09 (e)

CONSUMER DURABLES - 0.0%

Corning Consumer Products Co. B3 10,000 7,850
9.625% 5/1/08

TEXTILES & APPAREL - 0.1%

Worldtex, Inc. 9.625% 12/15/07 B1 20,000 16,200

TOTAL DURABLES 44,100

ENERGY - 0.9%

COAL - 0.1%

P&L Coal Holdings Corp. B2 30,000 29,700
9.625% 5/15/08

ENERGY SERVICES - 0.3%

R&B Falcon Corp. 6.5% 4/15/03 Ba3 40,000 36,800

RBF Finance Co.:

11% 3/15/06 Ba3 10,000 10,750

11.375% 3/15/09 Ba3 25,000 27,000

74,550

OIL & GAS - 0.5%

Chesapeake Energy Corp. B3 105,000 100,800
9.625% 5/1/05

Ocean Energy, Inc. 8.875% Ba3 40,000 40,400
7/15/07

141,200

TOTAL ENERGY 245,450

CORPORATE BONDS - CONTINUED

MOODY'S RATINGS (UNAUDITED) (B) PRINCIPAL AMOUNT VALUE (NOTE 1)

NONCONVERTIBLE BONDS -
CONTINUED

FINANCE - 0.2%

CREDIT & OTHER FINANCE - 0.2%

AMRESCO, Inc. 10% 3/15/04 Caa3 $ 20,000 $ 10,600

Macsaver Financial Services,
Inc.:

7.4% 2/15/02 Ba2 10,000 6,400

7.6% 8/1/07 Ba2 20,000 11,000

UNICCO Service Co./UNICCO B3 20,000 18,000
Finance Corp. 9.875% 10/15/07

46,000

HEALTH - 0.3%

MEDICAL FACILITIES MANAGEMENT
- - 0.3%

Fountain View, Inc. 11.25% Caa1 50,000 37,500
4/15/08

Tenet Healthcare Corp. 8.625% Ba3 55,000 52,525
1/15/07

90,025

INDUSTRIAL MACHINERY &
EQUIPMENT - 0.5%

INDUSTRIAL MACHINERY &
EQUIPMENT - 0.1%

Dunlop Standard Aero Holdings B3 20,000 20,400
PLC 11.875% 5/15/09

Thermadyne Manufacturing LLC B3 8,000 6,800
9.875% 6/1/08

Tokheim Corp. 11.375% 8/1/08 B3 10,000 5,600

32,800

POLLUTION CONTROL - 0.4%

Allied Waste North America,
Inc.:

7.375% 1/1/04 Ba2 10,000 9,200

10% 8/1/09 (e) B2 90,000 81,900

Browning-Ferris Industries, Ba3 20,000 17,900
Inc. 6.375% 1/15/08

109,000

TOTAL INDUSTRIAL MACHINERY & 141,800
EQUIPMENT

MEDIA & LEISURE - 4.4%

BROADCASTING - 3.1%

Adelphia Communications Corp. B1 75,000 76,500
9.875% 3/1/07

Benedek Communications Corp. B3 20,000 18,200
0% 5/15/06 (d)

CORPORATE BONDS - CONTINUED

MOODY'S RATINGS (UNAUDITED) (B) PRINCIPAL AMOUNT VALUE (NOTE 1)

NONCONVERTIBLE BONDS -
CONTINUED

MEDIA & LEISURE - CONTINUED

BROADCASTING - CONTINUED

Chancellor Media Corp.:

8.125% 12/15/07 B1 $ 50,000 $ 49,250

9% 10/1/08 B1 15,000 15,713

Charter Communications B2 50,000 47,188
Holdings LLC/Charter
Communications Holdings
Capital Corp. 8.625% 4/1/09

Citadel Broadcasting Co. B3 20,000 21,000
10.25% 7/1/07

Comcast UK Cable Partners B2 50,000 46,375
Ltd. 0% 11/15/07 (d)

Diamond Cable Communications B3 110,000 88,000
PLC 0% 2/15/07 (d)

Earthwatch, Inc. 0% 7/15/07 - 20,000 14,000
unit (d)(e)

EchoStar DBS Corp.:

9.25% 2/1/06 B2 20,000 20,050

9.375% 2/1/09 B2 5,000 5,013

Falcon Holding Group
LP/Falcon Funding Corp.:

0% 4/15/10 (d) B2 30,000 21,825

8.375% 4/15/10 B2 50,000 50,000

FrontierVision Holdings B1 55,000 48,263
LP/FrontierVision Holdings
Capital Corp. 0% 9/15/07 (d)

FrontierVision Holdings Caa1 10,000 8,775
LP/FrontierVision Holdings
Capital II Corp. 0% 9/15/07
(d)

FrontierVision Operating B1 20,000 21,400
Partners LP/ FrontierVision
Capital Corp. 11% 10/15/06

Golden Sky DBS, Inc. 0% Caa1 50,000 27,250
3/1/07 (d)

Golden Sky Systems, Inc. B3 30,000 30,600
12.375% 8/1/06

Knology Holding, Inc. 0% - 38,000 22,895
10/15/07 (d)

Telewest PLC 0% 10/1/07 (d) B1 80,000 74,000

United International B3 70,000 44,188
Holdings, Inc. 0% 2/15/08
(d)

United Pan-Europe B2 70,000 71,925
Communications NV 10.875%
8/1/09 (e)

822,410

ENTERTAINMENT - 0.4%

AMC Entertainment, Inc. 9.5% B3 10,000 9,150
2/1/11

Bally Total Fitness Holding B3 28,000 27,300
Corp. 9.875% 10/15/07

CORPORATE BONDS - CONTINUED

MOODY'S RATINGS (UNAUDITED) (B) PRINCIPAL AMOUNT VALUE (NOTE 1)

NONCONVERTIBLE BONDS -
CONTINUED

MEDIA & LEISURE - CONTINUED

ENTERTAINMENT - CONTINUED

Regal Cinemas, Inc.:

8.875% 12/15/10 Caa1 $ 30,000 $ 23,250

9.5% 6/1/08 Caa1 40,000 32,700

92,400

LODGING & GAMING - 0.5%

Coast Hotels & Casinos, Inc. B3 20,000 19,200
9.5% 4/1/09

Courtyard by Marriott II B- 20,000 19,500
LP/Courtyard II Finance Co.
10.75% 2/1/08

HMH Properties, Inc. 7.875% Ba2 10,000 9,000
8/1/08

Hollywood Casino Corp. 11.25% B3 50,000 51,750
5/1/07

Host Marriott LP 8.375% Ba2 40,000 37,600
2/15/06

137,050

PUBLISHING - 0.1%

Garden State Newspapers, Inc. B1 25,000 23,375
Series B, 8.75% 10/1/09

RESTAURANTS - 0.3%

CKE Restaurants, Inc. 9.125% B2 35,000 25,025
5/1/09

Domino's, Inc. 10.375% 1/15/09 B3 45,000 42,750

NE Restaurant, Inc. 10.75% B3 10,000 8,875
7/15/08

76,650

TOTAL MEDIA & LEISURE 1,151,885

RETAIL & WHOLESALE - 0.2%

GROCERY STORES - 0.2%

Pathmark Stores, Inc. 9.625% Caa1 35,000 33,775
5/1/03

Pueblo Xtra International, B3 10,000 7,000
Inc., 9.5% 8/1/03

40,775

SERVICES - 0.1%

La Petite Academy, Inc./La B3 50,000 37,000
Petite Academy Holding Co.
10% 5/15/08

TECHNOLOGY - 1.0%

COMPUTER SERVICES & SOFTWARE
- - 0.5%

Concentric Network Corp. B- 35,000 36,750
12.75% 12/15/07

CORPORATE BONDS - CONTINUED

MOODY'S RATINGS (UNAUDITED) (B) PRINCIPAL AMOUNT VALUE (NOTE 1)

NONCONVERTIBLE BONDS -
CONTINUED

TECHNOLOGY - CONTINUED

COMPUTER SERVICES & SOFTWARE
- - CONTINUED

PSINet, Inc.:

10.5% 12/1/06 (e) B3 $ 50,000 $ 50,313

11% 8/1/09 B3 35,000 35,700

Verio, Inc. 10.625% 11/15/09 B3 20,000 20,250
(e)

143,013

ELECTRONICS - 0.5%

ChipPAC International Ltd. B3 40,000 40,800
12.75% 8/1/09 (e)

Details, Inc. 10% 11/15/05 B3 20,000 18,400

Fairchild Semiconductor Corp.:

10.125% 3/15/07 B3 5,000 5,013

10.375% 10/1/07 B3 30,000 30,450

SCG Holding B2 25,000 26,438
Corp./Semiconductor
Components Industries LLC
12% 8/1/09 (e)

121,101

TOTAL TECHNOLOGY 264,114

TRANSPORTATION - 0.5%

AIR TRANSPORTATION - 0.5%

Atlas Air, Inc. 9.25% 4/15/08 B3 30,000 28,500

Kitty Hawk, Inc. 9.95% B1 98,000 96,040
11/15/04

124,540

UTILITIES - 3.9%

CELLULAR - 0.7%

McCaw International Ltd. 0% Caa1 10,000 6,600
4/15/07 (d)

Millicom International Caa1 10,000 7,825
Cellular SA 0% 6/1/06 (d)

Nextel Communications, Inc. B1 140,000 100,800
0% 10/31/07 (d)

Nextel International, Inc. 0% Caa1 30,000 17,175
4/15/08 (d)

Telesystem International Caa1 20,000 9,950
Wireless, Inc. 0% 11/1/07
(d)

Voicestream Wireless B2 40,000 41,400
Corp./Voicestream Wireless
Holding Co. 10.375% 11/15/09
(e)

183,750

CORPORATE BONDS - CONTINUED

MOODY'S RATINGS (UNAUDITED) (B) PRINCIPAL AMOUNT VALUE (NOTE 1)

NONCONVERTIBLE BONDS -
CONTINUED

UTILITIES - CONTINUED

TELEPHONE SERVICES - 3.2%

Allegiance Telecom, Inc. 0% B3 $ 50,000 $ 35,250
2/15/08 (d)

Call-Net Enterprises, Inc. B2 14,000 11,130
9.375% 5/15/09

Covad Communications Group,
Inc.:

0% 3/15/08 (d) B3 10,000 6,175

12.5% 2/15/09 B3 12,000 12,390

e.spire Communications, Inc. - 35,000 22,750
13.75% 7/15/07

GST Network Funding, Inc. 0% - 80,000 38,800
5/1/08 (d)

GST Telecommunications, Inc. - 50,000 46,000
12.75% 11/15/07

GST USA, Inc. 0% 12/15/05 (d) - 5,000 3,700

Hyperion Telecommunications, Caa1 25,000 26,250
Inc. 12% 11/1/07

Intermedia Communications, B2 95,000 86,688
Inc. 8.6% 6/1/08

IXC Communications, Inc. 9% B1 20,000 20,200
4/15/08

KMC Telecom Holdings, Inc. Caa2 20,000 19,400
13.5% 5/15/09 (e)

Level 3 Communications, Inc. B3 10,000 6,075
0% 12/1/08 (d)

McLeodUSA, Inc. 9.5% 11/1/08 B1 80,000 80,600

Metromedia Fiber Network, Inc.:

10% 11/15/08 B2 20,000 20,250

10% 12/15/09 B2 40,000 40,500

NEXTLINK Communications, Inc.:

9.625% 10/1/07 B2 30,000 29,250

10.5% 12/1/09 (e) B2 30,000 30,375

10.75% 11/15/08 B3 20,000 20,400

Ono Finance PLC 13% 5/1/09 Caa1 20,000 20,600

Pathnet, Inc. 12.25% 4/15/08 - 30,000 19,200

Rhythms NetConnections, Inc.:

0% 5/15/08 (d) B3 65,000 33,800

12.75% 4/15/09 B3 45,000 42,750

Teligent, Inc.:

0% 3/1/08 (d) Caa1 50,000 28,625

11.5% 12/1/07 Caa1 30,000 28,800

WinStar Communications, Inc.:

0% 10/15/05 (d) Caa1 30,000 27,300

0% 10/15/05 (d) Caa1 30,000 42,000

CORPORATE BONDS - CONTINUED

MOODY'S RATINGS (UNAUDITED) (B) PRINCIPAL AMOUNT VALUE (NOTE 1)

NONCONVERTIBLE BONDS -
CONTINUED

UTILITIES - CONTINUED

TELEPHONE SERVICES - CONTINUED

WinStar Communications, Inc.:
- - continued

0% 3/15/08 (d) CCC $ 30,000 $ 27,900

15% 3/1/07 CCC 20,000 25,000

852,158

TOTAL UTILITIES 1,035,908

TOTAL NONCONVERTIBLE BONDS 3,607,422

TOTAL CORPORATE BONDS 3,657,472
(Cost $3,686,862)

U.S. TREASURY OBLIGATIONS -
8.8%

U.S. Treasury Bonds:

6.875% 8/15/25 Aaa 396,000 413,076

7.625% 2/15/25 Aaa 47,000 53,353

8.875% 8/15/17 Aaa 70,000 86,199

9.875% 11/15/15 Aaa 10,000 13,148

U.S. Treasury Notes:

5.875% 11/15/04 Aaa 440,000 435,736

6% 8/15/09 Aaa 360,000 355,442

6.625% 6/30/01 Aaa 862,000 869,930

6.875% 3/31/00 Aaa 60,000 60,267

7% 7/15/06 Aaa 32,000 33,240

TOTAL U.S. TREASURY OBLIGATIONS 2,320,391
(Cost $2,359,488)

</TABLE>

CASH EQUIVALENTS - 1.9%

MATURITY AMOUNT VALUE (NOTE 1)

Investments in repurchase $ 132,021 $ 132,000
agreements (U.S. Treasury
obligations), in a joint
trading account at 5.67%,
dated 11/30/99 due 12/1/99

Taxable Central Cash Fund, 388,591 388,591
5.34% (c)

TOTAL CASH EQUIVALENTS 520,591
(Cost $520,591)

TOTAL INVESTMENT PORTFOLIO - 26,207,630
99.1%
(Cost $24,924,929)

NET OTHER ASSETS - 0.9% 226,785

NET ASSETS - 100% $ 26,434,415

LEGEND

(a) Non-income producing

(b) Standard & Poor's credit ratings are used in the absence of a
rating by Moody's Investors Service, Inc.

(d) Debt obligation initially issued in zero coupon form which
converts to coupon form at a specified rate and date. The rate shown
is the rate at period end.

(e) Security exempt from registration under Rule 144A of the
Securities Act of 1933. These securities may be resold in
transactions exempt from registration, normally to qualified
institutional buyers. At the period end, the value of these securities
amounted to $518,001 or 2.0% of net assets.

OTHER INFORMATION

The composition of long-term debt holdings as a percentage of total
value of investments in securities, is as follows (ratings are
unaudited):

MOODY'S RATINGS S&P RATINGS

Aaa, Aa, A 8.9% AAA, AA, A 8.9%

Baa 0.0% BBB 0.0%

Ba 1.3% BB 1.3%

B 9.8% B 10.0%

Caa 1.8% CCC 1.9%

Ca, C 0.0% CC, C 0.0%

D 0.0%

The percentage not rated by Moody's or S&P amounted to 0.6%. FMR has
determined that unrated debt securities that are lower quality account
for 0.6% of the total value of investment in securities.

INCOME TAX INFORMATION

At November 30, 1999, the aggregate
cost of investment securities for income tax purposes was $24,960,996.
Net unrealized appreciation aggregated $1,246,634, of which $2,072,443
related to appreciated investment securities and $825,809 related to
depreciated investment securities.

At November 30, 1999, the fund had a capital loss carryforward of
approximately $353,000 all of which will expire on November 30, 2007.

FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1999

ASSETS

Investment in securities, at $ 26,207,630
value (including repurchase
agreements of $132,000)
(cost $24,924,929) - See
accompanying schedule

Cash 15,189

Receivable for investments 107,992
sold

Receivable for fund shares 273,550
sold

Dividends receivable 16,910

Interest receivable 109,417

Receivable from investment 21,869
adviser for expense
reductions

TOTAL ASSETS 26,752,557

LIABILITIES

Payable for investments $ 205,923
purchased

Payable for fund shares 59,215
redeemed

Distribution fees payable 15,052

Other payables and accrued 37,952
expenses

TOTAL LIABILITIES 318,142

NET ASSETS $ 26,434,415

Net Assets consist of:

Paid in capital $ 25,440,770

Undistributed net investment 100,719
income

Accumulated undistributed net (389,775)
realized gain (loss) on
investments

Net unrealized appreciation 1,282,701
(depreciation) on investments

NET ASSETS $ 26,434,415

STATEMENT OF ASSETS AND LIABILITIES - CONTINUED
NOVEMBER 30, 1999

CALCULATION OF MAXIMUM $10.92
OFFERING PRICE CLASS A: NET
ASSET VALUE and redemption
price per share
($1,819,474 (divided by)
166,690 shares)

Maximum offering price per $11.59
share (100/94.25 of $10.92)

CLASS T: NET ASSET VALUE and $10.89
redemption price per share
($10,818,942 (divided by)
993,263 shares)

Maximum offering price per $11.28
share (100/96.50 of $10.89)

CLASS B: NET ASSET VALUE and $10.85
offering price per share
($8,602,694 (divided by)
792,596 shares) A

CLASS C: NET ASSET VALUE and $10.85
offering price per share
($4,217,483 (divided by)
388,815 shares) A

INSTITUTIONAL CLASS: NET $10.95
ASSET VALUE, offering price
and redemption price per
share ($975,822 (divided by)
89,145 shares)

REDEMPTION PRICE PER SHARE IS EQUAL TO NET ASSET VALUE LESS ANY
APPLICABLE CONTINGENT DEFERRED SALES CHARGE.

STATEMENT OF OPERATIONS
DECEMBER 28, 1998
(COMMENCEMENT OF OPERATIONS)
TO NOVEMBER 30, 1999

INVESTMENT INCOME $ 141,008
Dividends

Interest 270,417

TOTAL INCOME 411,425

EXPENSES

Management fee $ 79,626

Transfer agent fees 31,183

Distribution fees 93,317

Accounting fees and expenses 55,806

Non-interested trustees' 34
compensation

Custodian fees and expenses 17,689

Registration fees 160,488

Audit 22,853

Legal 125

Miscellaneous 154

Total expenses before 461,275
reductions

Expense reductions (161,091) 300,184

NET INVESTMENT INCOME 111,241

REALIZED AND UNREALIZED GAIN (389,248)
(LOSS)
Net realized gain (loss) on
investment securities

Change in net unrealized 1,282,701
appreciation (depreciation)
on investment securities

NET GAIN (LOSS) 893,453

NET INCREASE (DECREASE) IN $ 1,004,694
NET ASSETS RESULTING FROM
OPERATIONS

STATEMENT OF CHANGES IN NET ASSETS
DECEMBER 28, 1998
(COMMENCEMENT OF OPERATIONS)
TO NOVEMBER 30, 1999

INCREASE (DECREASE) IN NET
ASSETS

Operations Net investment $ 111,241
income

Net realized gain (loss) (389,248)

Change in net unrealized 1,282,701
appreciation (depreciation)

NET INCREASE (DECREASE) IN 1,004,694
NET ASSETS RESULTING FROM
OPERATIONS

Share transactions - net 25,429,721
increase (decrease)

TOTAL INCREASE (DECREASE) 26,434,415
IN NET ASSETS

NET ASSETS

Beginning of period -

End of period (including $ 26,434,415
undistributed net investment
income of $100,719)

FINANCIAL HIGHLIGHTS - CLASS A
NOVEMBER 30, 1999 F

SELECTED PER-SHARE DATA

Net asset value, beginning of $ 10.00
period

Income from Investment
Operations

Net investment income D .12

Net realized and unrealized .80
gain (loss)

Total from investment .92
operations

Net asset value, end of period $ 10.92

TOTAL RETURN B, C 9.20%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period $ 1,819
(000 omitted)

Ratio of expenses to average 1.75% A, G
net assets

Ratio of expenses to average 1.74% A, E
net assets after expense
reductions

Ratio of net investment 1.24% A
income to average net assets

Portfolio turnover 115% A

A ANNUALIZED

B THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIOD SHOWN.

C TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR
PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.

D NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.

E FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES.

F FOR THE PERIOD DECEMBER 28, 1998 (COMMENCEMENT OF OPERATIONS) TO
NOVEMBER 30, 1999.

G FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD
HAVE BEEN HIGHER.

FINANCIAL HIGHLIGHTS - CLASS T
NOVEMBER 30, 1999 F

SELECTED PER-SHARE DATA

Net asset value, beginning of $ 10.00
period

Income from Investment
Operations

Net investment income D .10

Net realized and unrealized .79
gain (loss)

Total from investment .89
operations

Net asset value, end of period $ 10.89

TOTAL RETURN B, C 8.90%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period $ 10,819
(000 omitted)

Ratio of expenses to average 2.00% A, G
net assets

Ratio of expenses to average 1.99% A, E
net assets after expense
reductions

Ratio of net investment .99% A
income to average net assets

Portfolio turnover 115% A

A ANNUALIZED

B THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIOD SHOWN.

C TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR
PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.

D NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.

E FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES.

F FOR THE PERIOD DECEMBER 28, 1998 (COMMENCEMENT OF OPERATIONS) TO
NOVEMBER 30, 1999.

G FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD
HAVE BEEN HIGHER.

FINANCIAL HIGHLIGHTS - CLASS B
NOVEMBER 30, 1999 F

SELECTED PER-SHARE DATA

Net asset value, beginning of $ 10.00
period

Income from Investment
Operations

Net investment income D .05

Net realized and unrealized .80
gain (loss)

Total from investment .85
operations

Net asset value, end of period $ 10.85

TOTAL RETURN B, C 8.50%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period $ 8,603
(000 omitted)

Ratio of expenses to average 2.50% A, G
net assets

Ratio of expenses to average 2.49% A, E
net assets after expense
reductions

Ratio of net investment .49% A
income to average net assets

Portfolio turnover 115% A

A ANNUALIZED

B THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIOD SHOWN.

C TOTAL RETURNS DO NOT INCLUDE THE CONTINGENT DEFERRED SALES CHARGE
AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.

D NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.

E FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES.

F FOR THE PERIOD DECEMBER 28, 1998 (COMMENCEMENT OF OPERATIONS) TO
NOVEMBER 30, 1999.

G FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD
HAVE BEEN HIGHER.

FINANCIAL HIGHLIGHTS - CLASS C
NOVEMBER 30, 1999 F

SELECTED PER-SHARE DATA

Net asset value, beginning of $ 10.00
period

Income from Investment
Operations

Net investment income D .05

Net realized and unrealized .80
gain (loss)

Total from investment .85
operations

Net asset value, end of period $ 10.85

TOTAL RETURN B, C 8.50%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period $ 4,217
(000 omitted)

Ratio of expenses to average 2.50% A, G
net assets

Ratio of expenses to average 2.49% A, E
net assets after expense
reductions

Ratio of net investment .49% A
income to average net assets

Portfolio turnover 115% A

A ANNUALIZED

B THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIOD SHOWN.

C TOTAL RETURNS DO NOT INCLUDE THE CONTINGENT DEFERRED SALES CHARGE
AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.

D NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.

E FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES.

F FOR THE PERIOD DECEMBER 28, 1998 (COMMENCEMENT OF OPERATIONS) TO
NOVEMBER 30, 1999.

G FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD
HAVE BEEN HIGHER.

FINANCIAL HIGHLIGHTS - INSTITUTIONAL CLASS
NOVEMBER 30,
1999 F

SELECTED PER-SHARE DATA

Net asset value, beginning of $ 10.00
period

Income from Investment
Operations

Net investment income D .14

Net realized and unrealized .81
gain (loss)

Total from investment .95
operations

Net asset value, end of period $ 10.95

TOTAL RETURN B, C 9.50%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period $ 976
(000 omitted)

Ratio of expenses to average 1.50% A, G
net assets

Ratio of expenses to average 1.49% A, E
net assets after expense
reductions

Ratio of net investment 1.49% A
income to average net assets

Portfolio turnover 115% A

A ANNUALIZED

B THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIOD SHOWN.

C TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.

D NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.

E FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES.

F FOR THE PERIOD DECEMBER 28, 1998 (COMMENCEMENT OF OPERATIONS) TO
NOVEMBER 30, 1999.

G FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD
HAVE BEEN HIGHER.

NOTES TO FINANCIAL STATEMENTS
For the period ended November 30, 1999

1. SIGNIFICANT ACCOUNTING POLICIES.

Fidelity Advisor Asset Allocation Fund (the fund) is a fund of
Fidelity Advisor Series I (the trust) and is authorized to issue an
unlimited number of shares. The trust is registered under the
Investment Company Act of 1940, as amended (the 1940 Act), as an
open-end management investment company organized as a Massachusetts
business trust.

The fund offers Class A, Class T, Class B, Class C, and Institutional
Class shares, each of which has equal rights as to assets and voting
privileges. Each class has exclusive voting rights with respect to
matters that affect that class. Class B shares will automatically
convert to Class A shares after a holding period of seven years from
the initial date of purchase. Investment income, realized and
unrealized capital gains and losses, the common expenses of the fund,
and certain fund-level expense reductions, if any, are allocated on a
pro rata basis to each class based on the relative net assets of each
class to the total net assets of the fund. Each class of shares
differs in its respective distribution, transfer agent, and certain
other class-specific fees, expenses, and expense reductions.

The financial statements have been prepared in conformity with
generally accepted accounting principles which require management to
make certain estimates and assumptions at the date of the financial
statements. The following summarizes the significant accounting
policies of the fund:

SECURITY VALUATION. Equity securities for which quotations are readily
available are valued at the last sale price, or if no sale price, at
the closing bid price. Foreign equity securities are valued based on
quotations from the principal market in which such securities are
normally traded. If trading or events occurring in other markets after
the close of the principal market in which foreign securities are
traded, and before the close of the business of the fund, are expected
to materially affect the value of those securities, then they are
valued at their fair value taking this trading or these events into
account. Fair value is determined in good faith under consistently
applied procedures under the general supervision of the Board of
Trustees. Debt securities for which quotations are readily available
are valued by a pricing service at their market values as determined
by their most recent bid prices in the principal market (sales prices
if the principal market is an exchange) in which such securities are
normally traded. Securities (including restricted securities) for
which market quotations are not readily available are valued at their
fair value. Short-term securities with remaining maturities of sixty
days or less for which quotations are not readily available are valued
at amortized cost or original cost plus accrued interest, both of
which approximate current value.

1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED

FOREIGN CURRENCY TRANSLATION - CONTINUED

period end. Purchases and sales of securities, income receipts and
expense payments are translated into U.S. dollars at the prevailing
exchange rate on the respective dates of the transactions.

Net realized gains and losses on foreign currency transactions
represent net gains and losses from sales and maturities of foreign
currency contracts, disposition of foreign currencies, the difference
between the amount of net investment income accrued and the U.S.
dollar amount actually received, and gains and losses between trade
and settlement date on purchases and sales of securities. The effects
of changes in foreign currency exchange rates on investments in
securities are included with the net realized and unrealized gain or
loss on investment securities.

INCOME TAXES. The fund intends to qualify as a regulated investment
company under Subchapter M of the Internal Revenue Code. By so
qualifying, the fund will not be subject to income taxes to the extent
that it distributes substantially all of its taxable income for its
fiscal year. The schedule of investments includes information
regarding income taxes under the caption "Income Tax Information."

INVESTMENT INCOME. Dividend income is recorded on the ex-dividend
date, except certain dividends from foreign securities where the
ex-dividend date may have passed, are recorded as soon as the fund is
informed of the ex-dividend date. Non-cash dividends included in
dividend income, if any, are recorded at the fair market value of the
securities received. Interest income, which includes accretion of
original issue discount, is accrued as earned. Investment income is
recorded net of foreign taxes withheld where recovery of such taxes is
uncertain.

EXPENSES. Most expenses of the trust can be directly attributed to a
fund. Expenses which cannot be directly attributed are apportioned
among the funds in the trust.

DISTRIBUTIONS TO SHAREHOLDERS. Distributions are recorded on the
ex-dividend date. Income dividends and capital gain distributions are
declared separately for each class.

Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital.
Undistributed net investment income and accumulated undistributed net
realized gain (loss) on investments may include temporary book and tax
basis differences which will reverse in a subsequent period. Any
taxable income or gain remaining at fiscal year end is distributed in
the following year.

1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED

SECURITY TRANSACTIONS. Security transactions are accounted for as of
trade date. Gains and losses on securities sold are determined on the
basis of identified cost.

2. OPERATING POLICIES.

FOREIGN CURRENCY CONTRACTS. The fund generally uses foreign currency
contracts to facilitate transactions in foreign-denominated
securities. Losses may arise from changes in the value of the foreign
currency or if the counterparties do not perform under the contracts'
terms. The U.S. dollar value of foreign currency contracts is
determined using contractual currency exchange rates established at
the time of each trade.

JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission (the SEC), the fund, along with
other affiliated entities of Fidelity Management & Research Company
(FMR), may transfer uninvested cash balances into one or more joint
trading accounts. These balances are invested in one or more
repurchase agreements for U.S. Treasury or Federal Agency obligations.

REPURCHASE AGREEMENTS. The underlying U.S. Treasury or Federal Agency
securities are transferred to an account of the fund, or to the Joint
Trading Account, at a bank custodian. The securities are
marked-to-market daily and maintained at a value at least equal to the
principal amount of the repurchase agreement (including accrued
interest). FMR, the fund's investment adviser, is responsible for
determining that the value of the underlying securities remains in
accordance with the market value requirements stated above.

TAXABLE CENTRAL CASH FUND. Pursuant to an Exemptive Order issued by
the SEC, the fund may invest in the Taxable Central Cash Fund (the
Cash Fund) managed by Fidelity Investments Money Management, Inc., an
affiliate of FMR. The Cash Fund is an open-end money market fund
available only to investment companies and other accounts managed by
FMR and its affiliates. The Cash Fund seeks preservation of capital,
liquidity, and current income. Income distributions from the Cash Fund
are declared daily and paid monthly from net interest income. Income
distributions earned by the fund are recorded as interest income in
the accompanying financial statements.

RESTRICTED SECURITIES. The fund is permitted to invest in securities
that are subject to legal or contractual restrictions on resale. These
securities generally may be resold in transactions exempt from
registration or to the public if the securities are registered.
Disposal of these securities may involve time-consuming negotiations
and expense, and prompt sale at an acceptable price may be difficult.
At the end of the period, the fund had no investments in restricted
securities (excluding 144A issues).

3. PURCHASES AND SALES OF INVESTMENTS.

Purchases and sales of securities, other than short-term securities,
aggregated $40,885,851 and $16,128,948, respectively, of which U.S.
government and government agency obligations aggregated $3,408,048 and
$1,038,457, respectively.

4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.

MANAGEMENT FEE. As the fund's investment adviser, FMR receives a
monthly fee that is calculated on the basis of a group fee rate plus a
fixed individual fund fee rate applied to the average net assets of
the fund. The group fee rate is the weighted average of a series of
rates and is based on the monthly average net assets of all the mutual
funds advised by FMR. The rates ranged from .2167% to .5200% for the
period. The annual individual fund fee rate is .30%. In the event that
these rates were lower than the contractual rates in effect during the
period, FMR voluntarily implemented the above rates, as they resulted
in the same or a lower management fee. For the period, the management
fee was equivalent to an annualized rate of .58% of average net
assets.

DISTRIBUTION AND SERVICE PLAN. In accordance with Rule 12b-1 of the
1940 Act, the Board of Trustees has adopted separate distribution
plans with respect to each class of shares (collectively referred to
as "the Plans"). Under certain of the Plans, the class pays Fidelity
Distributors Corporation (FDC), an affiliate of FMR, a distribution
and service fee. A portion of this fee may be reallowed to securities
dealers, banks and other financial institutions for the distribution
of each class of shares and providing shareholder support services.
For the period, this fee was based on the following annual rates of
the average net assets of each applicable class:

CLASS A .25%

CLASS T .50%

CLASS B 1.00% *

CLASS C 1.00% *

* .75% REPRESENTS A DISTRIBUTION FEE AND .25% REPRESENTS A SHAREHOLDER
SERVICE FEE.

For the period, each class paid FDC the following amounts, a portion
of which was retained by FDC:

PAID TO FDC RETAINED BY FDC

CLASS A $ 3,029 $ 1,445

CLASS T 27,194 2,481

CLASS B 41,526 32,438

CLASS C 21,568 18,757

$ 93,317 $ 55,121

4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED

SALES LOAD. FDC receives a front-end sales charge of up to 5.75% for
selling Class A shares, and 3.50% for selling Class T shares of the
fund. FDC receives the proceeds of contingent deferred sales charges
levied on Class B share redemptions occurring within six years of
purchase and Class C share redemptions occurring within one year of
purchase. Contingent deferred sales charges are based on declining
rates ranging from 5% to 1% for Class B and 1% for Class C, of the
lesser of the cost of shares at the initial date of purchase or the
net asset value of the redeemed shares, excluding any reinvested
dividends and capital gains. In addition, purchases of Class A and
Class T shares that were subject to a finder's fee bear a contingent
deferred sales charge on assets that do not remain in the fund for at
least one year. The Class A and Class T contingent deferred sales
charge is based on 0.25% of the lesser of the cost of shares at the
initial date of purchase or the net asset value of the redeemed
shares, excluding any reinvested dividends and capital gains. A
portion of the sales charges paid to FDC is paid to securities
dealers, banks and other financial institutions.

For the period, sales charge amounts paid to and retained by FDC were
as follows:

PAID TO FDC RETAINED BY FDC

CLASS A $ 37,606 $ 9,493

CLASS T 51,071 14,155

CLASS B 8,496 8,496 *

CLASS C 693 693 *

$ 97,866 $ 32,837

* WHEN CLASS B AND CLASS C SHARES ARE INITIALLY SOLD, FDC PAYS
COMMISSIONS FROM ITS OWN RESOURCES TO SECURITIES DEALERS, BANKS, AND
OTHER FINANCIAL INSTITUTIONS THROUGH WHICH THE SALES ARE MADE.

TRANSFER AGENT FEES. Fidelity Investments Institutional Operations
Company, Inc., (FIIOC), an affiliate of FMR, is the transfer, dividend
disbursing and shareholder servicing agent for each class of the fund
(collectively referred to as the transfer agent) for the fund's Class
A, Class T, Class B, Class C and Institutional Class. FIIOC receives
account fees and asset-based fees that vary according to the account
size and type of account of the shareholders of the respective classes
of the fund. FIIOC pays for typesetting, printing and mailing of all
shareholder reports, except proxy statements. For the period, the
following amounts were paid to FIIOC:

AMOUNT % OF AVERAGE NET ASSETS

CLASS A $ 3,164 .26 *

CLASS T 10,753 .20 *

CLASS B 10,002 .24 *

CLASS C 5,322 .25 *

INSTITUTIONAL CLASS 1,942 .26 *

$ 31,183

* ANNUALIZED

4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED

ACCOUNTING FEES. Fidelity Service Company, Inc., an affiliate of FMR,
maintains the fund's accounting records. The fee is based on the level
of average net assets for the month plus out-of-pocket expenses.

BROKERAGE COMMISSIONS. The fund placed a portion of its portfolio
transactions with brokerage firms which are affiliates of FMR. The
commissions paid to these affiliated firms were $887 for the period.

5. EXPENSE REDUCTIONS.

FMR voluntarily agreed to reimburse operating expenses (excluding
interest, taxes, brokerage commissions and extraordinary expenses, if
any) above the following annual rates or range of annual rates of
average net assets for each of the following classes:

FMR EXPENSE LIMITATIONS REIMBURSEMENT

CLASS A 1.75% $ 14,586

CLASS T 2.00% 62,102

CLASS B 2.50% 49,043

CLASS C 2.50% 25,601

INSTITUTIONAL CLASS 1.50% 8,966

$ 160,298

FMR has also directed certain portfolio trades to brokers who paid a
portion of the fund's expenses. For the period, the fund's expenses
were reduced by $662 under this arrangement.

In addition, through an arrangement with the Fund's custodian, credits
realized as a result of uninvested cash balances were used to reduce a
portion of expenses. During the period, the fund's custodian fees were
reduced by $131 under the custodian arrangement.

6. BENEFICIAL INTEREST.

At the end of the period, FMR and its affiliates were record owners of
approximately 12% of the total outstanding shares of the fund. In
addition, 1 unaffiliated shareholder was record owner of more than 10%
of the total outstanding shares of the fund.

7. SHARE TRANSACTIONS.

Transactions for each class of shares for the period are as follows:

<TABLE>
<CAPTION>
<S> <C> <C>
SHARES DOLLARS

DECEMBER 28, 1998 DECEMBER 28, 1998
(COMMENCEMENT OF OPERATIONS) (COMMENCEMENT OF OPERATIONS)
TO NOVEMBER 30, 1999 TO NOVEMBER 30,1999

CLASS A Shares sold 223,530 $ 2,339,996

Shares redeemed (56,840) (589,404)

Net increase (decrease) 166,690 $ 1,750,592

CLASS T Shares sold 1,158,501 $ 12,162,535

Shares redeemed (165,238) (1,741,383)

Net increase (decrease) 993,263 $ 10,421,152

CLASS B Shares sold 828,125 $ 8,657,396

Shares redeemed (35,529) (370,165)

Net increase (decrease) 792,596 $ 8,287,231

CLASS C Shares sold 409,194 $ 4,276,032

Shares redeemed (20,379) (217,273)

Net increase (decrease) 388,815 $ 4,058,759

INSTITUTIONAL CLASS Shares 90,420 $ 925,203
sold

Shares redeemed (1,275) (13,216)

Net increase (decrease) 89,145 $ 911,987

</TABLE>

REPORT OF INDEPENDENT ACCOUNTANTS

To the Trustees of Fidelity Advisor Series I and the Shareholders of
Fidelity Advisor Asset Allocation Fund:

In our opinion, the accompanying statement of assets and liabilities,
including the schedule of investments, and the related statements of
operations and of changes in net assets and the financial highlights
present fairly, in all material respects, the financial position of
Fidelity Advisor Asset Allocation Fund (a fund of Fidelity Advisor
Series I) at November 30, 1999, and the results of its operations, the
changes in its net assets and the financial highlights for the periods
indicated, in conformity with generally accepted accounting
principles. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the
responsibility of the Fidelity Advisor Asset Allocation Fund's
management; our responsibility is to express an opinion on these
financial statements based on our audit. We conducted our audit of
these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the
financial statements, assessing the accounting principles used and
significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audit, which
included confirmation of securities at November 30, 1999 by
correspondence with the custodian and brokers, provides a reasonable
basis for the opinion expressed above.

/s/PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
January 12, 2000

INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA

INVESTMENT SUB-ADVISERS
Fidelity Investments
Money Management, Inc. (FIMM),
Merrimack, NH
Fidelity Management & Research (U.K.)
Inc., London, England
Fidelity Management & Research
(Far East) Inc., Tokyo, Japan

OFFICERS
Edward C. Johnson 3d, President
Robert C. Pozen, Senior Vice President
Robert A. Lawrence, Vice President
Richard C. Habermann, Vice President
Eric D. Roiter, Secretary
Richard A. Silver, Treasurer
Matthew N. Karstetter, Deputy Treasurer
John H. Costello, Assistant Treasurer

BOARD OF TRUSTEES
Ralph F. Cox *
Phyllis Burke Davis *
Robert M. Gates *
Edward C. Johnson 3d
E. Bradley Jones *
Donald J. Kirk *
Peter S. Lynch
Marvin L. Mann *
William O. McCoy *
Gerald C. McDonough *
Robert C. Pozen
Thomas R. Williams *

ADVISORY BOARD
J. Gary Burkhead
Ned C. Lautenbach

GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA

TRANSFER AND SHAREHOLDER
SERVICING AGENTS
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA

CUSTODIAN
State Street Bank and Trust Company
Quincy, MA

FOCUS FUNDS
Fidelity Advisor Consumer
Industries Fund
Fidelity Advisor Cyclical
Industries Fund
Fidelity Advisor Financial
Services Fund
Fidelity Advisor Health Care Fund
Fidelity Advisor Natural
Resources Fund
Fidelity Advisor Technology Fund
Fidelity Advisor Utilities Growth Fund
GROWTH FUNDS
Fidelity Advisor Latin America Fund
Fidelity Advisor Emerging Asia Fund
Fidelity Advisor Japan Fund
Fidelity Advisor Europe Capital Appreciation Fund
Fidelity Advisor International Capital Appreciation Fund
Fidelity Advisor Overseas Fund
Fidelity Advisor Diversified International Fund
Fidelity Advisor Global Equity Fund
Fidelity Advisor TechnoQuant(registered trademark)
Growth Fund
Fidelity Advisor Small Cap Fund
Fidelity Advisor Value Strategies Fund
Fidelity Advisor Mid Cap Fund
Fidelity Advisor Retirement Growth Fund
Fidelity Advisor Equity Growth Fund
Fidelity Advisor Large Cap Fund
Fidelity Advisor Dividend Growth Fund
Fidelity Advisor Growth
Opportunities Fund
GROWTH AND INCOME FUNDS
Fidelity Advisor Growth & Income Fund
Fidelity Advisor Equity Income Fund
Fidelity Advisor Asset Allocation Fund
Fidelity Advisor Balanced Fund
TAXABLE INCOME FUNDS
Fidelity Advisor Emerging Markets Income Fund
Fidelity Advisor High Yield Fund
Fidelity Advisor High Income Fund
Fidelity Advisor Strategic Income Fund
Fidelity Advisor Mortgage
Securities Fund
Fidelity Advisor Government Investment Fund
Fidelity Advisor Intermediate Bond Fund
Fidelity Advisor Short Fixed-Income Fund
MUNICIPAL FUNDS
Fidelity Advisor Municipal Income Fund
MONEY MARKET FUNDS
Prime Fund
Treasury Fund
Tax-Exempt Fund

(registered trademark)

(2_FIDELITY_LOGOS)

FIDELITY(REGISTERED TRADEMARK) ADVISOR
(registered trademark)
ASSET ALLOCATION
FUND - INSTITUTIONAL CLASS

ANNUAL REPORT

NOVEMBER 30, 1999

CONTENTS

PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.

PERFORMANCE 4 How the fund has done over
time.

FUND TALK 6 The manager's review of fund
performance, strategy and
outlook.

INVESTMENT CHANGES 9 A summary of major shifts in
the fund's investments over
the past six months.

INVESTMENTS 10 A complete list of the fund's
investments with their
market values.

FINANCIAL STATEMENTS 28 Statements of assets and
liabilities, operations, and
changes in net assets, as
well as financial highlights.

NOTES 37 Notes to the financial
statements.

REPORT OF INDEPENDENT 44 The auditors' opinion.
ACCOUNTANTS

NEITHER THE FUND NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK.

FOR MORE INFORMATION ON ANY FIDELITY ADVISOR FUND, INCLUDING CHARGES
AND EXPENSES, CONTACT YOUR INVESTMENT PROFESSIONAL FOR A FREE
PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST OR SEND MONEY.

Standard & Poor's, S&P and S&P 500 are registered service marks of The
McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity
Distributors Corporation.

Other third party marks appearing herein are the property of their
respective owners.

All other marks appearing herein are registered or unregistered
trademarks or service marks of FMR Corp. or an affiliated company.

This report is printed on recycled paper using soy-based inks.

PRESIDENT'S MESSAGE

(photo_of_Edward_C_Johnson_3d)

DEAR SHAREHOLDER:

U.S. equity indexes once again dominated the financial headlines, led
by the NASDAQ's 15 record highs in 21 November sessions. Meanwhile,
the Standard & Poor's 500 SM posted two record closings and the Dow
Jones Industrial Average crept above the 11,000 mark for the first
time since mid-September. However, another Federal Reserve Board
interest rate hike and continued inflation concerns drove down the
price of the benchmark 30-year Treasury.

While it's impossible to predict the future direction of the markets
with any degree of certainty, there are certain basic principles that
can help investors plan for their future needs.

Remember to contact your investment professional if you need help with
your investments.

Best regards,
Edward C. Johnson 3d

FIDELITY ADVISOR ASSET ALLOCATION FUND - INSTITUTIONAL CLASS

PERFORMANCE: THE BOTTOM LINE

CUMULATIVE TOTAL RETURNS

PERIOD ENDED NOVEMBER 30, 1999 LIFE OF FUND

FIDELITY ADV ASSET ALLOCATION 9.50%
- - INST CL

Fidelity Adv Asset Allocation 10.51%
Composite

S&P 500(registered trademark) 14.67%

LB Aggregate Bond 0.20%

LB 3 Month T-Bill 4.48%

CUMULATIVE TOTAL RETURNS show Institutional Class' performance in
percentage terms over a set period - in this case, since the fund
started on December 28, 1998. For example, if you had invested $1,000
in a fund that had a 5% return over the past year, the value of your
investment would be $1,050. You can compare Institutional Class'
returns to the performance of the Fidelity Advisor Asset Allocation
Composite Index, a hypothetical combination of unmanaged indices. The
composite index combines the total returns of the Standard & Poor's
500 Index, the Lehman Brothers Aggregate Bond Index and the Lehman
Brothers 3 Month Treasury Bill Index, weighted according to the fund's
neutral mix . The benchmarks listed in the table above include
reinvested dividends and capital gains, if any, and exclude the effect
of sales charges.

AVERAGE ANNUAL TOTAL RETURNS

AVERAGE ANNUAL TOTAL RETURNS take Institutional Class shares'
cumulative return and show you what would have happened if
Institutional Class shares had performed at a constant rate each year.
These numbers will be reported once the fund is a year old.

$10,000 OVER LIFE OF FUND

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
FA Asset Allocation CL I S&P 500 70 S&P/25 LBAgg/5 LB 3Mo LB Aggregate Bond
00729 SP001 F0022 LB001
1998/12/28 10000.00 10000.00 10000.00 10000.00
1998/12/31 10070.00 10031.66 10035.77 10054.20
1999/01/31 10550.00 10451.19 10349.38 10126.02
1999/02/28 10210.00 10126.36 10080.60 9949.22
1999/03/31 10510.00 10531.52 10379.06 10004.42
1999/04/30 10640.00 10939.40 10670.53 10036.13
1999/05/31 10390.00 10681.13 10472.78 9947.81
1999/06/30 10720.00 11273.93 10873.32 9916.04
1999/07/31 10490.00 10921.96 10626.56 9874.40
1999/08/31 10460.00 10867.89 10590.53 9869.38
1999/09/30 10270.00 10570.00 10420.44 9983.91
1999/10/31 10780.00 11238.87 10893.80 10020.74
1999/11/30 10950.00 11467.36 11050.85 10020.05
IMATRL PRASUN SHR__CHT 19991130 19991222 141651 R00000000000015
</TABLE>

$10,000 OVER LIFE OF FUND: Let's say hypothetically that $10,000 was
invested in Fidelity Advisor Asset Allocation Fund - Institutional
Class on December 28, 1998, when the fund started. As the chart shows,
by November 30, 1999, the value of the investment would have grown to
$10,950 - a 9.50% increase on the initial investment. For comparison,
look at how both the S&P 500 Index, a market capitalization-weighted
index of common stocks, and the Lehman Brothers Aggregate Bond Index,
a market value-weighted index of investment-
grade fixed-rate debt issues, including government, corporate,
asset-backed, and mortgage-backed securities, with maturities of one
year or more, did over the same period. With dividends and capital
gains, if any, reinvested, the same $10,000 investment in the S&P 500
Index would have grown to $11,467 - a 14.67% increase. If $10,000 was
invested in the Lehman Brothers Aggregate Bond Index, it would have
grown to $10,020 - a 0.20% increase. You can also look at how the
Fidelity Advisor Asset Allocation Composite Index, a hypothetical
combination of unmanaged indices, did over the same period. The
composite index combines the total returns of the S&P 500 Index
(+70%), the Lehman Brothers Aggregate Bond Index (+25%) and the Lehman
Brothers 3-Month T-Bill Index (+5%) according to the fund's neutral
mix.* With dividends and capital gains, if any, reinvested, the same
$10,000 investment would have grown to $11,051 - a 10.51% increase.

UNDERSTANDING
PERFORMANCE

(checkmark)

* CURRENTLY 70% STOCKS, 25% BONDS AND 5% SHORT-TERM/MONEY MARKET
INSTRUMENTS.

FUND TALK: THE MANAGER'S OVERVIEW

MARKET RECAP

(photograph of Richard Habermann)

An interview with Richard Habermann, Portfolio Manager of Fidelity
Advisor Asset Allocation Fund

Q. HOW DID THE FUND PERFORM, DICK?

A. From December 28, 1998 - the fund's start date - through November
30, 1999, the fund's Institutional Class shares returned 9.50%. The
Fidelity Advisor Asset Allocation Composite Index returned 10.51%
during that time. In future reports, we'll also compare the fund's
performance to that of its Lipper Inc. peer group.

Q. WHAT ASSET ALLOCATION STRATEGIES DID YOU PURSUE DURING THE PERIOD?

Q. HOW DID THE FUND'S EQUITY SUBPORTFOLIO PERFORM DURING THE PERIOD?

Q. HOW DID YOU ALLOCATE INVESTMENTS WITHIN THE FUND'S BOND
SUBPORTFOLIO?

Q. HOW DID YOU POSITION THE FUND'S SHORT-TERM/MONEY MARKET
INVESTMENTS?

Q. WHAT'S YOUR OUTLOOK?

DICK HABERMANN DISCUSSES
THE IMPORTANCE OF
EMPHASIZING HIGH-YIELD
BONDS IN '99:

FUND FACTS

GOAL: maximum total return
over the long term through
investing in stocks, bonds
and short-term and money
market instruments

START DATE: December 28,
1998

SIZE: as of November 30,
1999, more than $26 million

MANAGER: Richard
Habermann, since inception;
joined Fidelity in 1968
(checkmark)

INVESTMENT CHANGES

<TABLE>
<CAPTION>
<S> <C> <C>
TOP TEN STOCKS AS OF NOVEMBER
30, 1999

% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO

General Electric Co. 3.1 2.1

Texas Instruments, Inc. 3.1 0.4

Amgen, Inc. 3.0 2.8

SBC Communications, Inc. 2.9 0.6

Wal-Mart Stores, Inc. 2.6 3.4

Microsoft Corp. 2.6 3.5

Bristol-Myers Squibb Co. 2.2 2.1

Chase Manhattan Corp. 1.8 1.2

Fannie Mae 1.8 2.3

Lexmark International Group, 1.8 1.5
Inc. Class A

24.9 19.9

TOP TEN MARKET SECTORS AS OF
NOVEMBER 30, 1999

(STOCKS ONLY) % OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO

TECHNOLOGY 21.2 10.6

FINANCE 10.4 12.2

HEALTH 8.6 9.8

UTILITIES 8.3 12.1

RETAIL & WHOLESALE 6.0 8.9

INDUSTRIAL MACHINERY & 5.1 4.8
EQUIPMENT

ENERGY 3.5 3.5

DURABLES 3.3 1.9

MEDIA & LEISURE 3.2 1.7

NONDURABLES 2.6 8.1

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
ASSET ALLOCATION (% OF FUND'S
NET ASSETS)

AS OF NOVEMBER 30, 1999 * AS OF MAY 31, 1999 **

Stock Class 75% Stock Class 74%

Bond Class 22% Bond Class 19%

Short-Term Class 3% Short-Term Class 7%

* FOREIGN INVESTMENTS 1% ** FOREIGN INVESTMENTS 6%

</TABLE>

PRIOR TO THIS REPORT, CERTAIN INFORMATION RELATED TO PORTFOLIO
HOLDINGS WAS STATED AS A PERCENTAGE OF THE FUND'S INVESTMENTS.

INVESTMENTS NOVEMBER 30, 1999
Showing Percentage of Net Assets

COMMON STOCKS - 73.3%

SHARES VALUE (NOTE 1)

AEROSPACE & DEFENSE - 0.6%

Boeing Co. 1,220 $ 49,791

United Technologies Corp. 1,970 111,305

161,096

BASIC INDUSTRIES - 0.9%

CHEMICALS & PLASTICS - 0.2%

Dow Chemical Co. 440 51,535

METALS & MINING - 0.5%

Alcoa, Inc. 2,100 137,550

PAPER & FOREST PRODUCTS - 0.2%

Champion International Corp. 390 21,621

Weyerhaeuser Co. 650 39,813

61,434

TOTAL BASIC INDUSTRIES 250,519

CONSTRUCTION & REAL ESTATE -
0.5%

BUILDING MATERIALS - 0.5%

Masco Corp. 5,400 136,350

DURABLES - 3.3%

AUTOS, TIRES, & ACCESSORIES -
0.4%

Ford Motor Co. 2,060 104,030

CONSUMER DURABLES - 1.6%

Minnesota Mining & 4,400 420,475
Manufacturing Co.

CONSUMER ELECTRONICS - 0.5%

Black & Decker Corp. 1,850 83,019

Whirlpool Corp. 1,040 63,440

146,459

TEXTILES & APPAREL - 0.8%

NIKE, Inc. Class B 4,580 210,680

TOTAL DURABLES 881,644

ENERGY - 3.5%

OIL & GAS - 3.5%

Atlantic Richfield Co. 2,520 242,865

Chevron Corp. 3,500 309,969

Exxon Corp. 550 43,622

COMMON STOCKS - CONTINUED

SHARES VALUE (NOTE 1)

ENERGY - CONTINUED

OIL & GAS - CONTINUED

Mobil Corp. 2,860 $ 298,334

The Coastal Corp. 540 19,035

913,825

FINANCE - 10.4%

BANKS - 2.6%

Chase Manhattan Corp. 6,270 484,358

J.P. Morgan & Co., Inc. 1,340 176,210

UnionBanCal Corp. 410 18,066

678,634

CREDIT & OTHER FINANCE - 0.5%

Citigroup, Inc. 2,380 128,223

FEDERAL SPONSORED CREDIT - 2.2%

Fannie Mae 7,060 470,373

Freddie Mac 2,450 120,969

591,342

INSURANCE - 2.2%

AFLAC, Inc. 1,370 65,589

American International Group, 4,430 457,398
Inc.

Lincoln National Corp. 220 9,171

MGIC Investment Corp. 320 18,080

Nationwide Financial 770 27,672
Services, Inc. Class A

577,910

SAVINGS & LOANS - 0.3%

Golden West Financial Corp. 740 74,694

SECURITIES INDUSTRY - 2.6%

Lehman Brothers Holdings, 2,020 154,278
Inc.

Merrill Lynch & Co., Inc. 940 75,788

Morgan Stanley Dean Witter & 3,410 411,331
Co.

PaineWebber Group, Inc. 1,380 54,079

695,476

TOTAL FINANCE 2,746,279

HEALTH - 8.6%

DRUGS & PHARMACEUTICALS - 7.6%

Allergan, Inc. 690 67,879

Amgen, Inc. (a) 17,420 793,699

COMMON STOCKS - CONTINUED

SHARES VALUE (NOTE 1)

HEALTH - CONTINUED

DRUGS & PHARMACEUTICALS -
CONTINUED

Biogen, Inc. (a) 3,610 $ 263,756

Bristol-Myers Squibb Co. 7,950 580,847

Pfizer, Inc. 1,240 44,873

Schering-Plough Corp. 4,920 251,535

Symyx Technologies, Inc. 100 3,450

2,006,039

MEDICAL EQUIPMENT & SUPPLIES
- - 0.7%

Johnson & Johnson 1,870 194,013

MEDICAL FACILITIES MANAGEMENT
- - 0.3%

Columbia/HCA Healthcare Corp. 1,680 45,780

United HealthCare Corp. 670 34,798

80,578

TOTAL HEALTH 2,280,630

INDUSTRIAL MACHINERY &
EQUIPMENT - 5.1%

ELECTRICAL EQUIPMENT - 3.6%

Emerson Electric Co. 970 55,290

General Electric Co. 6,220 808,600

General Instrument Corp. (a) 610 39,955

Scientific-Atlanta, Inc. 660 38,486

942,331

INDUSTRIAL MACHINERY &
EQUIPMENT - 1.5%

Dover Corp. 350 15,181

Illinois Tool Works, Inc. 380 24,605

Ingersoll-Rand Co. 4,150 201,016

Metron Technology NV 100 1,594

Tyco International Ltd. 4,060 162,654

405,050

TOTAL INDUSTRIAL MACHINERY & 1,347,381
EQUIPMENT

MEDIA & LEISURE - 3.0%

ENTERTAINMENT - 0.2%

Carnival Corp. 870 38,389

Royal Carribean Cruises Ltd. 300 14,813

53,202

COMMON STOCKS - CONTINUED

SHARES VALUE (NOTE 1)

MEDIA & LEISURE - CONTINUED

PUBLISHING - 2.3%

Gannet Co., Inc. 2,280 $ 163,162

McGraw-Hill Companies, Inc. 6,830 387,176

Tribune Co. 1,000 48,063

598,401

RESTAURANTS - 0.5%

Jack in the Box, Inc. (a) 450 9,478

McDonald's Corp. 2,870 129,150

138,628

TOTAL MEDIA & LEISURE 790,231

NONDURABLES - 2.6%

BEVERAGES - 0.6%

Anheuser-Busch Companies, 2,060 154,114
Inc.

FOODS - 1.4%

Quaker Oats Co. 5,620 366,705

HOUSEHOLD PRODUCTS - 0.2%

Procter & Gamble Co. 430 46,440

TOBACCO - 0.4%

Philip Morris Companies, Inc. 4,750 124,984

TOTAL NONDURABLES 692,243

RETAIL & WHOLESALE - 6.0%

APPAREL STORES - 0.5%

The Limited, Inc. 1,160 49,228

TJX Companies, Inc. 3,260 85,371

134,599

GENERAL MERCHANDISE STORES -
3.8%

Costco Wholesale Corp. (a) 340 31,174

Dayton Hudson Corp. 3,660 258,259

Federated Department Stores, 550 25,884
Inc. (a)

Wal-Mart Stores, Inc. 12,240 705,330

1,020,647

RETAIL & WHOLESALE,
MISCELLANEOUS - 1.7%

Best Buy Co., Inc. (a) 870 54,375

COMMON STOCKS - CONTINUED

SHARES VALUE (NOTE 1)

RETAIL & WHOLESALE - CONTINUED

RETAIL & WHOLESALE,
MISCELLANEOUS - CONTINUED

Lowe's Companies, Inc. 7,760 $ 386,545

SmarterKids.com, Inc. 100 1,531

442,451

TOTAL RETAIL & WHOLESALE 1,597,697

SERVICES - 0.2%

ADVERTISING - 0.1%

Digital Impact, Inc. 100 5,388

Lifeminders.com, Inc. 100 2,138

7,526

LEASING & RENTAL - 0.1%

Hertz Corp. Class A 680 28,773

SERVICES - 0.0%

GetThere.com, Inc. 100 2,544

The Management Network Group, 100 3,375
Inc.

5,919

TOTAL SERVICES 42,218

TECHNOLOGY - 21.2%

COMMUNICATIONS EQUIPMENT - 3.0%

Cisco Systems, Inc. (a) 4,010 357,642

Lucent Technologies, Inc. 5,940 433,991

791,633

COMPUTER SERVICES & SOFTWARE
- - 5.6%

Adobe Systems, Inc. 1,280 87,920

America Online, Inc. (a) 2,560 186,080

CacheFlow, Inc. 100 15,150

Computer Associates 4,490 291,850
International, Inc.

Exactis.com, Inc. 100 2,450

First Data Corp. 1,660 71,795

iManage, Inc. 100 3,788

Lycos, Inc. (a) 810 45,360

Mediaplex, Inc. 100 3,400

Metasolv Software, Inc. 100 6,169

Microsoft Corp. (a) 7,550 687,404

Novell, Inc. (a) 750 14,672

COMMON STOCKS - CONTINUED

SHARES VALUE (NOTE 1)

TECHNOLOGY - CONTINUED

COMPUTER SERVICES & SOFTWARE
- - CONTINUED

Official Payments Corp. 100 $ 3,675

Retek, Inc. 100 6,781

Sabre Group Holdings, Inc. 340 15,470
Class A (a)

SciQuest.com, Inc. 200 6,600

Sterling Software, Inc. (a) 410 10,788

VERITAS Software Corp. (a) 315 28,842

1,488,194

COMPUTERS & OFFICE EQUIPMENT
- - 2.9%

Adaptec, Inc. (a) 680 36,635

Apple Computer, Inc. (a) 2,470 241,751

International Business 210 21,643
Machines Corp.

Lexmark International Group, 5,620 466,460
Inc. Class A (a)

766,489

ELECTRONIC INSTRUMENTS - 1.2%

Applied Materials, Inc. (a) 700 68,206

KLA-Tencor Corp. (a) 980 82,871

Teradyne, Inc. (a) 3,530 153,776

304,853

ELECTRONICS - 8.5%

Conexant Systems, Inc. (a) 1,490 88,283

Intel Corp. 2,460 188,651

LSI Logic Corp. (a) 4,240 256,255

Maxim Integrated Products, 750 60,234
Inc. (a)

Micron Technology, Inc. (a) 880 59,070

Motorola, Inc. 3,960 452,430

PMC-Sierra, Inc. (a) 460 47,409

Solectron Corp. (a) 310 25,536

Texas Instruments, Inc. 8,360 803,083

Virata Corp. 100 3,213

Xilinx, Inc. (a) 2,870 256,865

2,241,029

TOTAL TECHNOLOGY 5,592,198

TRANSPORTATION - 0.1%

TRUCKING & FREIGHT - 0.1%

United Parcel Service, Inc. 290 19,158
Class B

COMMON STOCKS - CONTINUED

SHARES VALUE (NOTE 1)

UTILITIES - 7.3%

CELLULAR - 0.8%

ALLTEL Corp. 1,220 $ 105,530

QUALCOMM, Inc. (a) 280 101,448

TeleCorp PCS, Inc. 100 3,606

210,584

ELECTRIC UTILITY - 2.8%

DTE Energy Co. 3,790 125,307

Edison International 3,070 81,355

Florida Progress Corp. 1,460 62,415

GPU, Inc. 1,990 63,680

PP&L Resources, Inc. 2,440 56,273

Public Service Enterprise 4,940 172,900
Group, Inc.

Reliant Energy, Inc. 6,850 169,966

731,896

TELEPHONE SERVICES - 3.7%

BellSouth Corp. 4,260 196,759

Deltathree.com, Inc. 100 2,931

Ono Finance PLC rights 20 1,400
12/31/99 (a)(e)

Pathnet, Inc. warrants 30 300
4/15/08 (a)(e)

SBC Communications, Inc. 14,892 773,453

974,843

TOTAL UTILITIES 1,917,323

TOTAL COMMON STOCKS 19,368,792
(Cost $18,028,014)

NONCONVERTIBLE PREFERRED
STOCKS - 1.3%

MEDIA & LEISURE - 0.2%

BROADCASTING - 0.2%

CSC Holdings, Inc. 11.125% 131 14,214
pay-in-kind

Sinclair Capital 11.625% 254 25,400

39,614

NONCONVERTIBLE PREFERRED
STOCKS - CONTINUED

SHARES VALUE (NOTE 1)

MEDIA & LEISURE - CONTINUED

PUBLISHING - 0.0%

PRIMEDIA, Inc.:

$9.20 16 $ 1,472

8.625% 5 438

1,910

TOTAL MEDIA & LEISURE 41,524

SERVICES - 0.1%

LEASING & RENTAL - 0.1%

Crown Castle International 29 30,305
Corp. 12.75% pay-in-kind

UTILITIES - 1.0%

CELLULAR - 0.4%

Nextel Communications, Inc.:

11.125% pay-in-kind 96 96,000

Series D, 13% pay-in-kind 10 10,700

106,700

TELEPHONE SERVICES - 0.6%

Adelphia Business Solution, 24 22,320
Inc. 12.875%

Intermedia Communications, 11 10,450
Inc. 13.5% pay-in-kind

IXC Communications, Inc. 51 55,845
12.5% pay-in-kind

NEXTLINK Communications, Inc. 793 40,840
14% pay-in-kind

WinStar Communications, Inc. 40 32,400
14.25% (a)

161,855

TOTAL UTILITIES 268,555

TOTAL NONCONVERTIBLE 340,384
PREFERRED STOCKS
(Cost $329,974)

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
CORPORATE BONDS - 13.8%

MOODY'S RATINGS (UNAUDITED) (B) PRINCIPAL AMOUNT VALUE (NOTE 1)

CONVERTIBLE BONDS - 0.2%

HEALTH - 0.2%

MEDICAL FACILITIES MANAGEMENT
- - 0.2%

Tenet Healthcare Corp. 6% B1 $ 30,000 $ 24,000
12/1/05

Total Renal Care Holdings, B1 30,000 18,300
Inc. 7% 5/15/09 (e)

42,300

NONDURABLES - 0.0%

FOODS - 0.0%

Chiquita Brands B3 10,000 7,750
International, Inc. 7%
3/28/01

TOTAL CONVERTIBLE BONDS 50,050

NONCONVERTIBLE BONDS - 13.6%

BASIC INDUSTRIES - 1.1%

CHEMICALS & PLASTICS - 0.6%

Huntsman Corp. 9.5% 7/1/07 (e) B2 10,000 9,400

Huntsman ICI Chemicals LLC B2 50,000 51,125
10.125% 7/1/09 (e)

Lyondell Chemical Co.:

9.625% 5/1/07 Ba3 10,000 10,300

9.875% 5/1/07 Ba3 50,000 51,375

10.875% 5/1/09 B2 10,000 10,400

Sterling Chemicals, Inc. Caa3 30,000 21,300
11.75% 8/15/06

153,900

IRON & STEEL - 0.1%

AK Steel Corp. 7.875% 2/15/09 Ba2 10,000 9,400

The LTV Corp. 11.75% 11/15/09 Ba3 20,000 20,625
(e)

30,025

METALS & MINING - 0.3%

Kaiser Aluminum & Chemical B3 50,000 49,875
Corp. 12.75% 2/1/03

Metals USA, Inc. 8.625% B2 25,000 23,125
2/15/08

73,000

PACKAGING & CONTAINERS - 0.1%

Gaylord Container Corp. Caa1 40,000 37,300
9.375% 6/15/07

TOTAL BASIC INDUSTRIES 294,225

CORPORATE BONDS - CONTINUED

MOODY'S RATINGS (UNAUDITED) (B) PRINCIPAL AMOUNT VALUE (NOTE 1)

NONCONVERTIBLE BONDS -
CONTINUED

CONSTRUCTION & REAL ESTATE -
0.3%

CONSTRUCTION - 0.1%

U.S. Home Corp. 8.875% 2/15/09 B1 $ 40,000 $ 36,000

ENGINEERING - 0.0%

Anteon Corp. 12% 5/15/09 B3 10,000 9,350

REAL ESTATE - 0.2%

LNR Property Corp. 9.375% B1 50,000 46,250
3/15/08

TOTAL CONSTRUCTION & REAL 91,600
ESTATE

DURABLES - 0.2%

AUTOS, TIRES, & ACCESSORIES -
0.1%

Tenneco, Inc. 11.625% B2 20,000 20,050
10/15/09 (e)

CONSUMER DURABLES - 0.0%

Corning Consumer Products Co. B3 10,000 7,850
9.625% 5/1/08

TEXTILES & APPAREL - 0.1%

Worldtex, Inc. 9.625% 12/15/07 B1 20,000 16,200

TOTAL DURABLES 44,100

ENERGY - 0.9%

COAL - 0.1%

P&L Coal Holdings Corp. B2 30,000 29,700
9.625% 5/15/08

ENERGY SERVICES - 0.3%

R&B Falcon Corp. 6.5% 4/15/03 Ba3 40,000 36,800

RBF Finance Co.:

11% 3/15/06 Ba3 10,000 10,750

11.375% 3/15/09 Ba3 25,000 27,000

74,550

OIL & GAS - 0.5%

Chesapeake Energy Corp. B3 105,000 100,800
9.625% 5/1/05

Ocean Energy, Inc. 8.875% Ba3 40,000 40,400
7/15/07

141,200

TOTAL ENERGY 245,450

CORPORATE BONDS - CONTINUED

MOODY'S RATINGS (UNAUDITED) (B) PRINCIPAL AMOUNT VALUE (NOTE 1)

NONCONVERTIBLE BONDS -
CONTINUED

FINANCE - 0.2%

CREDIT & OTHER FINANCE - 0.2%

AMRESCO, Inc. 10% 3/15/04 Caa3 $ 20,000 $ 10,600

Macsaver Financial Services,
Inc.:

7.4% 2/15/02 Ba2 10,000 6,400

7.6% 8/1/07 Ba2 20,000 11,000

UNICCO Service Co./UNICCO B3 20,000 18,000
Finance Corp. 9.875% 10/15/07

46,000

HEALTH - 0.3%

MEDICAL FACILITIES MANAGEMENT
- - 0.3%

Fountain View, Inc. 11.25% Caa1 50,000 37,500
4/15/08

Tenet Healthcare Corp. 8.625% Ba3 55,000 52,525
1/15/07

90,025

INDUSTRIAL MACHINERY &
EQUIPMENT - 0.5%

INDUSTRIAL MACHINERY &
EQUIPMENT - 0.1%

Dunlop Standard Aero Holdings B3 20,000 20,400
PLC 11.875% 5/15/09

Thermadyne Manufacturing LLC B3 8,000 6,800
9.875% 6/1/08

Tokheim Corp. 11.375% 8/1/08 B3 10,000 5,600

32,800

POLLUTION CONTROL - 0.4%

Allied Waste North America,
Inc.:

7.375% 1/1/04 Ba2 10,000 9,200

10% 8/1/09 (e) B2 90,000 81,900

Browning-Ferris Industries, Ba3 20,000 17,900
Inc. 6.375% 1/15/08

109,000

TOTAL INDUSTRIAL MACHINERY & 141,800
EQUIPMENT

MEDIA & LEISURE - 4.4%

BROADCASTING - 3.1%

Adelphia Communications Corp. B1 75,000 76,500
9.875% 3/1/07

Benedek Communications Corp. B3 20,000 18,200
0% 5/15/06 (d)

CORPORATE BONDS - CONTINUED

MOODY'S RATINGS (UNAUDITED) (B) PRINCIPAL AMOUNT VALUE (NOTE 1)

NONCONVERTIBLE BONDS -
CONTINUED

MEDIA & LEISURE - CONTINUED

BROADCASTING - CONTINUED

Chancellor Media Corp.:

8.125% 12/15/07 B1 $ 50,000 $ 49,250

9% 10/1/08 B1 15,000 15,713

Charter Communications B2 50,000 47,188
Holdings LLC/Charter
Communications Holdings
Capital Corp. 8.625% 4/1/09

Citadel Broadcasting Co. B3 20,000 21,000
10.25% 7/1/07

Comcast UK Cable Partners B2 50,000 46,375
Ltd. 0% 11/15/07 (d)

Diamond Cable Communications B3 110,000 88,000
PLC 0% 2/15/07 (d)

Earthwatch, Inc. 0% 7/15/07 - 20,000 14,000
unit (d)(e)

EchoStar DBS Corp.:

9.25% 2/1/06 B2 20,000 20,050

9.375% 2/1/09 B2 5,000 5,013

Falcon Holding Group
LP/Falcon Funding Corp.:

0% 4/15/10 (d) B2 30,000 21,825

8.375% 4/15/10 B2 50,000 50,000

FrontierVision Holdings B1 55,000 48,263
LP/FrontierVision Holdings
Capital Corp. 0% 9/15/07 (d)

FrontierVision Holdings Caa1 10,000 8,775
LP/FrontierVision Holdings
Capital II Corp. 0% 9/15/07
(d)

FrontierVision Operating B1 20,000 21,400
Partners LP/ FrontierVision
Capital Corp. 11% 10/15/06

Golden Sky DBS, Inc. 0% Caa1 50,000 27,250
3/1/07 (d)

Golden Sky Systems, Inc. B3 30,000 30,600
12.375% 8/1/06

Knology Holding, Inc. 0% - 38,000 22,895
10/15/07 (d)

Telewest PLC 0% 10/1/07 (d) B1 80,000 74,000

United International B3 70,000 44,188
Holdings, Inc. 0% 2/15/08
(d)

United Pan-Europe B2 70,000 71,925
Communications NV 10.875%
8/1/09 (e)

822,410

ENTERTAINMENT - 0.4%

AMC Entertainment, Inc. 9.5% B3 10,000 9,150
2/1/11

Bally Total Fitness Holding B3 28,000 27,300
Corp. 9.875% 10/15/07

CORPORATE BONDS - CONTINUED

MOODY'S RATINGS (UNAUDITED) (B) PRINCIPAL AMOUNT VALUE (NOTE 1)

NONCONVERTIBLE BONDS -
CONTINUED

MEDIA & LEISURE - CONTINUED

ENTERTAINMENT - CONTINUED

Regal Cinemas, Inc.:

8.875% 12/15/10 Caa1 $ 30,000 $ 23,250

9.5% 6/1/08 Caa1 40,000 32,700

92,400

LODGING & GAMING - 0.5%

Coast Hotels & Casinos, Inc. B3 20,000 19,200
9.5% 4/1/09

Courtyard by Marriott II B- 20,000 19,500
LP/Courtyard II Finance Co.
10.75% 2/1/08

HMH Properties, Inc. 7.875% Ba2 10,000 9,000
8/1/08

Hollywood Casino Corp. 11.25% B3 50,000 51,750
5/1/07

Host Marriott LP 8.375% Ba2 40,000 37,600
2/15/06

137,050

PUBLISHING - 0.1%

Garden State Newspapers, Inc. B1 25,000 23,375
Series B, 8.75% 10/1/09

RESTAURANTS - 0.3%

CKE Restaurants, Inc. 9.125% B2 35,000 25,025
5/1/09

Domino's, Inc. 10.375% 1/15/09 B3 45,000 42,750

NE Restaurant, Inc. 10.75% B3 10,000 8,875
7/15/08

76,650

TOTAL MEDIA & LEISURE 1,151,885

RETAIL & WHOLESALE - 0.2%

GROCERY STORES - 0.2%

Pathmark Stores, Inc. 9.625% Caa1 35,000 33,775
5/1/03

Pueblo Xtra International, B3 10,000 7,000
Inc., 9.5% 8/1/03

40,775

SERVICES - 0.1%

La Petite Academy, Inc./La B3 50,000 37,000
Petite Academy Holding Co.
10% 5/15/08

TECHNOLOGY - 1.0%

COMPUTER SERVICES & SOFTWARE
- - 0.5%

Concentric Network Corp. B- 35,000 36,750
12.75% 12/15/07

CORPORATE BONDS - CONTINUED

MOODY'S RATINGS (UNAUDITED) (B) PRINCIPAL AMOUNT VALUE (NOTE 1)

NONCONVERTIBLE BONDS -
CONTINUED

TECHNOLOGY - CONTINUED

COMPUTER SERVICES & SOFTWARE
- - CONTINUED

PSINet, Inc.:

10.5% 12/1/06 (e) B3 $ 50,000 $ 50,313

11% 8/1/09 B3 35,000 35,700

Verio, Inc. 10.625% 11/15/09 B3 20,000 20,250
(e)

143,013

ELECTRONICS - 0.5%

ChipPAC International Ltd. B3 40,000 40,800
12.75% 8/1/09 (e)

Details, Inc. 10% 11/15/05 B3 20,000 18,400

Fairchild Semiconductor Corp.:

10.125% 3/15/07 B3 5,000 5,013

10.375% 10/1/07 B3 30,000 30,450

SCG Holding B2 25,000 26,438
Corp./Semiconductor
Components Industries LLC
12% 8/1/09 (e)

121,101

TOTAL TECHNOLOGY 264,114

TRANSPORTATION - 0.5%

AIR TRANSPORTATION - 0.5%

Atlas Air, Inc. 9.25% 4/15/08 B3 30,000 28,500

Kitty Hawk, Inc. 9.95% B1 98,000 96,040
11/15/04

124,540

UTILITIES - 3.9%

CELLULAR - 0.7%

McCaw International Ltd. 0% Caa1 10,000 6,600
4/15/07 (d)

Millicom International Caa1 10,000 7,825
Cellular SA 0% 6/1/06 (d)

Nextel Communications, Inc. B1 140,000 100,800
0% 10/31/07 (d)

Nextel International, Inc. 0% Caa1 30,000 17,175
4/15/08 (d)

Telesystem International Caa1 20,000 9,950
Wireless, Inc. 0% 11/1/07
(d)

Voicestream Wireless B2 40,000 41,400
Corp./Voicestream Wireless
Holding Co. 10.375% 11/15/09
(e)

183,750

CORPORATE BONDS - CONTINUED

MOODY'S RATINGS (UNAUDITED) (B) PRINCIPAL AMOUNT VALUE (NOTE 1)

NONCONVERTIBLE BONDS -
CONTINUED

UTILITIES - CONTINUED

TELEPHONE SERVICES - 3.2%

Allegiance Telecom, Inc. 0% B3 $ 50,000 $ 35,250
2/15/08 (d)

Call-Net Enterprises, Inc. B2 14,000 11,130
9.375% 5/15/09

Covad Communications Group,
Inc.:

0% 3/15/08 (d) B3 10,000 6,175

12.5% 2/15/09 B3 12,000 12,390

e.spire Communications, Inc. - 35,000 22,750
13.75% 7/15/07

GST Network Funding, Inc. 0% - 80,000 38,800
5/1/08 (d)

GST Telecommunications, Inc. - 50,000 46,000
12.75% 11/15/07

GST USA, Inc. 0% 12/15/05 (d) - 5,000 3,700

Hyperion Telecommunications, Caa1 25,000 26,250
Inc. 12% 11/1/07

Intermedia Communications, B2 95,000 86,688
Inc. 8.6% 6/1/08

IXC Communications, Inc. 9% B1 20,000 20,200
4/15/08

KMC Telecom Holdings, Inc. Caa2 20,000 19,400
13.5% 5/15/09 (e)

Level 3 Communications, Inc. B3 10,000 6,075
0% 12/1/08 (d)

McLeodUSA, Inc. 9.5% 11/1/08 B1 80,000 80,600

Metromedia Fiber Network, Inc.:

10% 11/15/08 B2 20,000 20,250

10% 12/15/09 B2 40,000 40,500

NEXTLINK Communications, Inc.:

9.625% 10/1/07 B2 30,000 29,250

10.5% 12/1/09 (e) B2 30,000 30,375

10.75% 11/15/08 B3 20,000 20,400

Ono Finance PLC 13% 5/1/09 Caa1 20,000 20,600

Pathnet, Inc. 12.25% 4/15/08 - 30,000 19,200

Rhythms NetConnections, Inc.:

0% 5/15/08 (d) B3 65,000 33,800

12.75% 4/15/09 B3 45,000 42,750

Teligent, Inc.:

0% 3/1/08 (d) Caa1 50,000 28,625

11.5% 12/1/07 Caa1 30,000 28,800

WinStar Communications, Inc.:

0% 10/15/05 (d) Caa1 30,000 27,300

0% 10/15/05 (d) Caa1 30,000 42,000

CORPORATE BONDS - CONTINUED

MOODY'S RATINGS (UNAUDITED) (B) PRINCIPAL AMOUNT VALUE (NOTE 1)

NONCONVERTIBLE BONDS -
CONTINUED

UTILITIES - CONTINUED

TELEPHONE SERVICES - CONTINUED

WinStar Communications, Inc.:
- - continued

0% 3/15/08 (d) CCC $ 30,000 $ 27,900

15% 3/1/07 CCC 20,000 25,000

852,158

TOTAL UTILITIES 1,035,908

TOTAL NONCONVERTIBLE BONDS 3,607,422

TOTAL CORPORATE BONDS 3,657,472
(Cost $3,686,862)

U.S. TREASURY OBLIGATIONS -
8.8%

U.S. Treasury Bonds:

6.875% 8/15/25 Aaa 396,000 413,076

7.625% 2/15/25 Aaa 47,000 53,353

8.875% 8/15/17 Aaa 70,000 86,199

9.875% 11/15/15 Aaa 10,000 13,148

U.S. Treasury Notes:

5.875% 11/15/04 Aaa 440,000 435,736

6% 8/15/09 Aaa 360,000 355,442

6.625% 6/30/01 Aaa 862,000 869,930

6.875% 3/31/00 Aaa 60,000 60,267

7% 7/15/06 Aaa 32,000 33,240

TOTAL U.S. TREASURY OBLIGATIONS 2,320,391
(Cost $2,359,488)

</TABLE>

CASH EQUIVALENTS - 1.9%

MATURITY AMOUNT VALUE (NOTE 1)

Investments in repurchase $ 132,021 $ 132,000
agreements (U.S. Treasury
obligations), in a joint
trading account at 5.67%,
dated 11/30/99 due 12/1/99

Taxable Central Cash Fund, 388,591 388,591
5.34% (c)

TOTAL CASH EQUIVALENTS 520,591
(Cost $520,591)

TOTAL INVESTMENT PORTFOLIO - 26,207,630
99.1%
(Cost $24,924,929)

NET OTHER ASSETS - 0.9% 226,785

NET ASSETS - 100% $ 26,434,415

LEGEND

(a) Non-income producing

(b) Standard & Poor's credit ratings are used in the absence of a
rating by Moody's Investors Service, Inc.

(d) Debt obligation initially issued in zero coupon form which
converts to coupon form at a specified rate and date. The rate shown
is the rate at period end.

OTHER INFORMATION

The composition of long-term debt holdings as a percentage of total
value of investments in securities, is as follows (ratings are
unaudited):

MOODY'S RATINGS S&P RATINGS

Aaa, Aa, A 8.9% AAA, AA, A 8.9%

Baa 0.0% BBB 0.0%

Ba 1.3% BB 1.3%

B 9.8% B 10.0%

Caa 1.8% CCC 1.9%

Ca, C 0.0% CC, C 0.0%

D 0.0%

The percentage not rated by Moody's or S&P amounted to 0.6%. FMR has
determined that unrated debt securities that are lower quality account
for 0.6% of the total value of investment in securities.

INCOME TAX INFORMATION

At November 30, 1999, the fund had a capital loss carryforward of
approximately $353,000 all of which will expire on November 30, 2007.

FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1999

ASSETS

Investment in securities, at $ 26,207,630
value (including repurchase
agreements of $132,000)
(cost $24,924,929) - See
accompanying schedule

Cash 15,189

Receivable for investments 107,992
sold

Receivable for fund shares 273,550
sold

Dividends receivable 16,910

Interest receivable 109,417

Receivable from investment 21,869
adviser for expense
reductions

TOTAL ASSETS 26,752,557

LIABILITIES

Payable for investments $ 205,923
purchased

Payable for fund shares 59,215
redeemed

Distribution fees payable 15,052

Other payables and accrued 37,952
expenses

TOTAL LIABILITIES 318,142

NET ASSETS $ 26,434,415

Net Assets consist of:

Paid in capital $ 25,440,770

Undistributed net investment 100,719
income

Accumulated undistributed net (389,775)
realized gain (loss) on
investments

Net unrealized appreciation 1,282,701
(depreciation) on investments

NET ASSETS $ 26,434,415

STATEMENT OF ASSETS AND LIABILITIES - CONTINUED