FIDELITY ADVISOR SERIES I, N-30D, 2000-07-20

FIDELITY ADVISOR SERIES I
N-30D, 2000-07-20

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

SEMIANNUAL REPORT
MAY 31, 2000

(2_FIDELITY_LOGOS)(registered trademark)

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 35 Statements of assets and
liabilities, operations, and
changes in net assets, as
well as financial highlights.

NOTES 44 Notes to the financial
statements.

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:

The technology sell-off that began in mid-March continued to hamper
equity markets, driving the tech-heavy NASDAQ index down more than 16%
year to date through the end of May. Broader equity indexes, including
the S&P 500(registered trademark), also were down, but not as much as
more concentrated performance measures. In bond markets, Treasuries
got a boost late in the period as economic reports showed the first
signs of a slowing economy.

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

PERIODS ENDED MAY 31, 2000 PAST 6 MONTHS PAST 1 YEAR LIFE OF FUND

FIDELITY ADV ASSET ALLOCATION 4.78% 10.33% 14.42%
- CL A

FIDELITY ADV ASSET ALLOCATION -1.25% 3.99% 7.84%
- CL A (INCL. 5.75% SALES
CHARGE)

Fidelity Adv Asset Allocation 2.68% 8.35% 13.47%
Composite

S&P 500(registered trademark) 2.90% 10.48% 18.00%

LB Aggregate Bond 1.38% 2.11% 1.58%

LB 3 Month T-Bill 2.93% 5.52% 7.54%

Flexible Portfolio Funds 4.51% 8.43% n/a
Average

CUMULATIVE TOTAL RETURNS show Class A's performance in percentage
terms over a set period - in this case, six months, one year or 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 . To measure how Class A's performance stacked up against
its peers, you can compare it to the flexible portfolio funds average,
which reflects the performance of mutual funds with similar objectives
tracked by Lipper Inc. The past six months average represents a peer
group of 249 mutual funds. These benchmarks include reinvested
dividends and capital gains, if any, and exclude the effect of sales
charges.

AVERAGE ANNUAL TOTAL RETURNS

PERIODS ENDED MAY 31, 2000 PAST 1 YEAR LIFE OF FUND

FIDELITY ADV ASSET ALLOCATION 10.33% 9.91%
- CL A

FIDELITY ADV ASSET ALLOCATION 3.99% 5.44%
- CL A (INCL. 5.75% SALES
CHARGE)

Fidelity Adv Asset Allocation 8.35% n/a
Composite

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.

$10,000 OVER LIFE OF FUND
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
1999/12/31 11058.73 12142.79
11495.66 9971.73
2000/01/31 10480.18 11532.73
11084.43 9939.11
2000/02/29 10831.10 11314.42
10973.53 10059.29
2000/03/31 11390.68 12421.31
11763.73 10191.73
2000/04/30 11087.18 12047.55
11510.68 10162.65
2000/05/31 10783.68 11800.34
11347.29 10157.98
IMATRL PRASUN SHR__CHT 20000531 20000619 162959 R00000000000021

$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 May 31, 2000, the value of the
investment would have grown to $10,784 - a 7.84% 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 $11,800 - an
18.00% increase. If $10,000 was invested in the Lehman Brothers
Aggregate Bond Index, it would have grown to $10,158 - a 1.58%
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, the Lehman Brothers Aggregate Bond
Index and the Lehman Brothers 3-Month T-Bill Index according to the
fund's neutral mix.* With dividends and capital gains, if any,
reinvested, the same $10,000 investment would have grown to $11,347 -
a 13.47% increase.

(checkmark)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.

* 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

PERIODS ENDED MAY 31, 2000 PAST 6 MONTHS PAST 1 YEAR LIFE OF FUND

FIDELITY ADV ASSET ALLOCATION 4.79% 10.04% 14.11%
- CL T

FIDELITY ADV ASSET ALLOCATION 1.12% 6.19% 10.12%
- CL T (INCL. 3.50% SALES
CHARGE)

Fidelity Adv Asset Allocation 2.68% 8.35% 13.47%
Composite

S&P 500 2.90% 10.48% 18.00%

LB Aggregate Bond 1.38% 2.11% 1.58%

LB 3 Month T-Bill 2.93% 5.52% 7.54%

Flexible Portfolio Funds 4.51% 8.43% n/a
Average

CUMULATIVE TOTAL RETURNS show Class T's performance in percentage
terms over a set period - in this case, six months, one year or 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 . To measure how Class T's performance stacked up against
its peers, you can compare it to the flexible portfolio funds average,
which reflects the performance of mutual funds with similar objectives
tracked by Lipper Inc. The past six months average represents a peer
group of 249 mutual funds. These benchmarks include reinvested
dividends and capital gains, if any, and exclude the effect of sales
charges.

AVERAGE ANNUAL TOTAL RETURNS

PERIODS ENDED MAY 31, 2000 PAST 1 YEAR LIFE OF FUND

FIDELITY ADV ASSET ALLOCATION 10.04% 9.71%
- CL T

FIDELITY ADV ASSET ALLOCATION 6.19% 7.00%
- CL T (INCL. 3.50% SALES
CHARGE)

Fidelity Adv Asset Allocation 8.35% n/a
Composite

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.

$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
1999/12/31 11293.26 12142.79
11495.66 9971.73
2000/01/31 10701.43 11532.73
11084.43 9939.11
2000/02/29 11060.41 11314.42
10973.53 10059.29
2000/03/31 11632.84 12421.31
11763.73 10191.73
2000/04/30 11322.37 12047.55
11510.68 10162.65
2000/05/31 11011.90 11800.34
11347.29 10157.98
IMATRL PRASUN SHR__CHT 20000531 20000619 164319 R00000000000021

$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 May 31, 2000, the value of the
investment would have grown to $11,012 - a 10.12% 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 $11,800 - an
18.00% increase. If $10,000 was invested in the Lehman Brothers
Aggregate Bond Index, it would have grown to $10,158 - a 1.58%
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, the Lehman Brothers Aggregate Bond
Index and the Lehman Brothers 3-Month T-Bill Index according to the
fund's neutral mix.* With dividends and capital gains, if any,
reinvested, the same $10,000 investment would have grown to $11,347 -
a 13.47% increase.

(checkmark)UNDERSTANDING
PERFORMANCE

* 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

PERIODS ENDED MAY 31, 2000 PAST 6 MONTHS PAST 1 YEAR LIFE OF FUND

FIDELITY ADV ASSET ALLOCATION 4.52% 9.57% 13.41%
- CL B

FIDELITY ADV ASSET ALLOCATION -0.48% 4.57% 9.41%
- CL B (INCL. CONTINGENT
DEFERRED SALES CHARGE)

Fidelity Adv Asset Allocation 2.68% 8.35% 13.47%
Composite

S&P 500 2.90% 10.48% 18.00%

LB Aggregate Bond 1.38% 2.11% 1.58%

LB 3 Month T-Bill 2.93% 5.52% 7.54%

Flexible Portfolio Funds 4.51% 8.43% n/a
Average

CUMULATIVE TOTAL RETURNS show Class B's performance in percentage
terms over a set period - in this case, six months, one year or 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 . To measure how Class B's performance stacked up against
its peers, you can compare it to the flexible portfolio funds average,
which reflects the performance of mutual funds with similar objectives
tracked by Lipper Inc. The past six months average represents a peer
group of 249 mutual funds. These benchmarks include reinvested
dividends and capital gains, if any, and exclude the effect of sales
charges.

AVERAGE ANNUAL TOTAL RETURNS

PERIODS ENDED MAY 31, 2000 PAST 1 YEAR LIFE OF FUND

FIDELITY ADV ASSET ALLOCATION 9.57% 9.23%
- CL B

FIDELITY ADV ASSET ALLOCATION 4.57% 6.51%
- CL B (INCL. CONTINGENT
DEFERRED SALES CHARGE)

Fidelity Adv Asset Allocation 8.35% n/a
Composite

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.

$10,000 OVER LIFE OF FUND
FA Asset Allocation CL B S&P 500
70 S&P/25 LBAgg/5 LB 3Mo LB Aggregate Bond
00727 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 10430.00 10921.96
10626.56 9874.40
1999/08/31 10400.00 10867.89
10590.53 9869.38
1999/09/30 10210.00 10570.00
10420.44 9983.91
1999/10/31 10690.00 11238.87
10893.80 10020.74
1999/11/30 10850.00 11467.36
11050.85 10020.05
1999/12/31 11661.91 12142.79
11495.66 9971.73
2000/01/31 11039.68 11532.73
11084.43 9939.11
2000/02/29 11400.97 11314.42
10973.53 10059.29
2000/03/31 11993.10 12421.31
11763.73 10191.73
2000/04/30 11661.91 12047.55
11510.68 10162.65
2000/05/31 10941.00 11800.34
11347.29 10157.98
IMATRL PRASUN SHR__CHT 20000531 20000619 165400 R00000000000021

$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 May
31, 2000, the value of the investment, including the effect of the
applicable contingent deferred sales charge, would have grown to
$10,941 - a 9.41% 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 $11,800 - an 18.00% increase. If $10,000 was invested in
the Lehman Brothers Aggregate Bond Index, it would have grown to
$10,158 - a 1.58% 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, the Lehman Brothers
Aggregate Bond Index and the Lehman Brothers 3-Month T-Bill Index
according to the fund's neutral mix.* With dividends and capital
gains, if any, reinvested, the same $10,000 investment would have
grown to $11,347 - a 13.47% increase.

(checkmark)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

PERIODS ENDED MAY 31, 2000 PAST 6 MONTHS PAST 1 YEAR LIFE OF FUND

FIDELITY ADV ASSET ALLOCATION 4.43% 9.48% 13.31%
- CL C

FIDELITY ADV ASSET ALLOCATION 3.43% 8.48% 13.31%
- CL C (INCL. CONTINGENT
DEFERRED SALES CHARGE)

Fidelity Adv Asset Allocation 2.68% 8.35% 13.47%
Composite

S&P 500 2.90% 10.48% 18.00%

LB Aggregate Bond 1.38% 2.11% 1.58%

LB 3 Month T-Bill 2.93% 5.52% 7.54%

Flexible Portfolio Funds 4.51% 8.43% n/a
Average

CUMULATIVE TOTAL RETURNS show Class C's performance in percentage
terms over a set period - in this case, six months, one year or 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 . To measure how Class C's performance stacked up against
its peers, you can compare it to the flexible portfolio funds average,
which reflects the performance of mutual funds with similar objectives
tracked by Lipper Inc. The past six months average represents a peer
group of 249 mutual funds. These benchmarks include reinvested
dividends and capital gains, if any, and exclude the effect of sales
charges.

AVERAGE ANNUAL TOTAL RETURNS

PERIODS ENDED MAY 31, 2000 PAST 1 YEAR LIFE OF FUND

FIDELITY ADV ASSET ALLOCATION 9.48% 9.16%
- CL C

FIDELITY ADV ASSET ALLOCATION 8.48% 9.16%
- CL C (INCL. CONTINGENT
DEFERRED SALES CHARGE)

Fidelity Adv Asset Allocation 8.35% n/a
Composite

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.

$10,000 OVER LIFE OF FUND
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 10850.00 11467.36
11050.85 10020.05
1999/12/31 11651.91 12142.79
11495.66 9971.73
2000/01/31 11029.68 11532.73
11084.43 9939.11
2000/02/29 11390.97 11314.42
10973.53 10059.29
2000/03/31 11983.10 12421.31
11763.73 10191.73
2000/04/30 11651.91 12047.55
11510.68 10162.65
2000/05/31 11330.76 11800.34
11347.29 10157.98
IMATRL PRASUN SHR__CHT 20000531 20000619 170130 R00000000000021

$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 May
31, 2000, the value of the investment would have grown to $11,331 - a
13.31% 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 $11,800 -
an 18.00% increase. If $10,000 was invested in the Lehman Brothers
Aggregate Bond Index, it would have grown to $10,158 - a 1.58%
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, the Lehman Brothers Aggregate Bond
Index and the Lehman Brothers 3-Month T-Bill Index according to the
fund's neutral mix.* With dividends and capital gains, if any,
reinvested, the same $10,000 investment would have grown to $11,347 -
a 13.47% increase.

(checkmark)UNDERSTANDING
PERFORMANCE

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

FUND TALK: THE MANAGER'S OVERVIEW

MARKET RECAP

It was the best of times, it was the
worst of times. At least that's how
some investors might describe the
six-month period that ended May 31,
2000. Technology stocks led the
market's narrow advances, soaring
during the first half of the period
as bulls snapped up shares of those
companies expected to fuel the new
economy. The performance disparity
between technology and the broader
market reached an inflection point
in early March, as the tech-laden
NASDAQ set record highs and the
Standard & Poor's 500SM Index
dipped to six-month lows. The tech
bubble burst, though, as the threat
of higher interest rates, coupled
with a sudden loss of confidence in
valuation levels, sent nervous
investors fleeing for stability
elsewhere in the market. The S&P
500, a beneficiary of the mass
migration, recovered its earlier losses
and finished 2.90% higher. The
NASDAQ completed its grueling
six-month round trip up 2.05%.
Three rate hikes levied by the Federal
Reserve Board during the period in
an attempt to cool the economy
made life difficult for bonds as well.
Reflecting the struggle, the Lehman
Brothers Aggregate Bond Index
returned 1.38%. Treasuries managed
to stave off the period's bond malaise,
rallying on the U.S. government's
decision to repurchase long-term
debt and curtail future issuance.
Conversely, the spread sectors -
namely corporate bonds, mortgage
securities and government agencies
- were plagued by deteriorating
technical factors and wider yield
spreads relative to Treasuries.

(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. For the six months that ended May 31, 2000, the fund's Class A,
Class T, Class B and Class C shares returned 4.78%, 4.79%, 4.52% and
4.43%, respectively. For the same period, the Fidelity Advisor Asset
Allocation Composite Index returned 2.68%, while the flexible
portfolio funds average measured by Lipper Inc. returned 4.51%. For
the 12-month period that ended May 31, 2000, the fund's Class A, Class
T, Class B and Class C shares returned 10.33%, 10.04%, 9.57% and
9.48%, respectively. In comparison, the composite index and Lipper
average returned 8.35% and 8.43%, respectively.

Q. HOW DID YOUR ASSET ALLOCATION POSITIONING INFLUENCE PERFORMANCE
DURING THE SIX-MONTH PERIOD?

A. The fund benefited from maintaining its emphasis on equities, which
outperformed all other asset classes during the period. The fund's
neutral allocation mix typically calls for 70% to be invested in
stocks, 25% in bonds and 5% in short-term and money market
instruments. Given the strong environment for stocks early in the
period, the fund's modest overexposure here garnered it an edge over
its composite index, while performance fell pretty much in line with
its peer group. As stock market conditions deteriorated in the spring,
I pared down the fund's equity position to as low as 67% in April from
a high of around 75% in December. This move helped shelter us a bit
during the market's strong downturn. On the bond front, the decision
to allocate much of the subportfolio to high-yield debt proved costly,
as the prices of these issues spiraled lower during the period.
However, the fund's stake in investment-grade bonds, led by the strong
performance of long-dated Treasuries, helped offset some of the
weakness in high-yield.

Q. WHAT FACTORS DROVE THE PERFORMANCE OF THE FUND'S EQUITY
SUBPORTFOLIO?

A. Brad Lewis - who directed the fund's equity investments until May
1, 2000, when Tom Sprague took the reins - did a nice job identifying
the winners in the fast-moving spaces of technology and wireless
communications. Timely trading became almost as important as finding
the right names. So, as the market turned against us, Brad astutely
took profits in many of the period's leading tech performers, helping
the fund lock in returns. In May, with the market refocusing its
attention on companies with earnings, Tom continued to scale back on
tech, concentrating the position in large, high-quality stocks.
Overweighted positions in Texas Instruments, LSI Logic and Applied
Materials helped the most, followed by out-of-benchmark stakes in
PMC-Sierra, JDS Uniphase and Linear Technology. Selected brokerage
stocks, namely Morgan Stanley Dean Witter and Merrill Lynch, also
performed well. Given Brad's large-cap value orientation, having
exposure to weakness outside of tech hurt, most notably in cyclical -
or economically sensitive - stocks such as Ingersoll-Rand and Dow
Chemical, as well as drug maker Bristol-Myers Squibb. The fund no
longer held a number of these positions at the close of the period.

Q. HOW DID THE BOND PORTION OF THE FUND FARE?

A. High-yield issues languished, as aggressive investors dumped these
securities for the more attractive growth found in aggressive
equities. Thanks to superior credit selection by Fred Hoff, we managed
to limit our losses amid the fall-off in the high-yield market. The
scene was markedly different in the investment-grade world, influenced
by the U.S. Treasury's announcement in January of its intent to
repurchase long-term debt and curtail future issuance. This move
sparked a tremendous rally in long-term Treasury bonds. Despite the
Federal Reserve Board's actions to raise interest rates during the
period, the strong technicals provided by the Treasury buybacks led to
a positive return for the investment-grade subportfolio headed by
Charlie Morrison.

Q. WHAT ABOUT THE FUND'S SHORT-TERM/MONEY MARKET INVESTMENTS?

A. John Todd stayed the course, focusing mainly on repurchase
agreements as an excellent source of liquidity and a safe haven in
which to invest assets on a temporary basis. Repurchase agreements, or
repos, are short-term securities that the seller agrees to buy back at
a specified price and time. As more money comes into the fund, John
will look at other types of money market instruments with varying
maturities. Shareholders should note that John may choose to invest in
a money market mutual fund rather than invest directly in money market
securities in the future.

Q. WHAT'S YOUR OUTLOOK?

A. I'm cautious going forward, as the potential for further
interest-rate hikes remains a cloud over equity markets. Until this
round of tightening is over, investors could continue to migrate from
tech to other areas of the market. The fund's subportfolio managers
are poised to respond quickly if the economic adjustment can indeed
happen with a soft landing.

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.

(checkmark)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 May 31, 2000,
more than $42 million

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

DICK HABERMANN ON
USING DIVERSIFICATION TO
HELP MANAGE RISK:

"This fund practices discipline
when it comes to investing. Over
the years at Fidelity, we found that
we could generate competitive
returns within a controlled risk
framework. Admittedly,
risk-control and diversification
don't usually occupy the minds of
bullish investors.

"As much as some people still don't
like to admit it, investing in equities
is risky business, as evidenced this
past spring. There's always
plenty of risk over the course of a
market cycle, and investors can
lose a lot of money in the process.
We try to manage this risk by taking
a multi-layered investment
strategy. The fund's subportfolio
managers take great care
formulating risk/return strategies
for the fund's underlying
investments, as do I by way of
selecting the fund's ongoing asset
allocation. By building a discipline at
several levels - namely security,
sector and asset class - with a
multi-manager framework, we offer
investors a different approach not
found in many funds."

NOTE TO SHAREHOLDERS:

Effective June 1, 2000, Matthew
Conti assumed responsibility for
managing the fund's high-yield
bond subportfolio.

INVESTMENT CHANGES

<TABLE>
<CAPTION>
<S> <C> <C>
TOP TEN STOCKS AS OF MAY 31,
2000

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

General Electric Co. 2.4 3.1

Cisco Systems, Inc. 2.0 1.4

Exxon Mobil Corp. 1.8 1.3

Eli Lilly & Co. 1.6 0.0

Fannie Mae 1.6 1.8

America Online, Inc. 1.5 0.7

Intel Corp. 1.3 0.7

Linear Technology Corp. 1.3 0.0

Philip Morris Companies, Inc. 1.2 0.4

Comverse Technology, Inc. 1.1 0.0

15.8 9.4

TOP TEN MARKET SECTORS AS OF
MAY 31, 2000

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

Technology 21.6 21.2

Finance 8.4 10.4

Energy 6.6 3.5

Health 6.6 8.6

Utilities 4.8 8.3

Retail & Wholesale 3.8 6.0

Industrial Machinery & 3.1 5.1
Equipment

Media & Leisure 3.0 3.2

Durables 2.5 3.3

Aerospace & Defense 2.1 0.6

</TABLE>

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

AS OF MAY 31, 2000 * AS OF NOVEMBER 30, 1999 **

Stock Class 73% Stock Class 75%

Bond Class 17% Bond Class 22%

Short-Term Class 10% Short-Term Class 3%

* FOREIGN INVESTMENTS 6% ** FOREIGN INVESTMENTS 1%

Row: 1, Col: 1, Value: 73.0 Row: 1, Col: 1, Value: 75.0
Row: 1, Col: 2, Value: 0.0 Row: 1, Col: 2, Value: 0.0
Row: 1, Col: 3, Value: 0.0 Row: 1, Col: 3, Value: 0.0
Row: 1, Col: 4, Value: 17.0 Row: 1, Col: 4, Value: 22.0
Row: 1, Col: 5, Value: 0.0 Row: 1, Col: 5, Value: 0.0
Row: 1, Col: 6, Value: 0.0 Row: 1, Col: 6, Value: 0.0
Row: 1, Col: 7, Value: 0.0 Row: 1, Col: 7, Value: 0.0
Row: 1, Col: 8, Value: 10.0 Row: 1, Col: 8, Value: 3.0

</TABLE>

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

INVESTMENTS MAY 31, 2000 (UNAUDITED)

Showing Percentage of Net Assets

COMMON STOCKS - 67.5%

SHARES VALUE (NOTE 1)

AEROSPACE & DEFENSE - 2.1%

AEROSPACE & DEFENSE - 1.1%

Boeing Co. 4,450 $ 173,828

Northrop Grumman Corp. 1,390 106,509

United Technologies Corp. 2,790 168,621

448,958

SHIP BUILDING & REPAIR - 1.0%

General Dynamics Corp. 7,310 431,747

TOTAL AEROSPACE & DEFENSE 880,705

BASIC INDUSTRIES - 1.9%

CHEMICALS & PLASTICS - 0.5%

Avery Dennison Corp. 920 56,350

Union Carbide Corp. 3,240 177,188

233,538

IRON & STEEL - 0.5%

Allegheny Technologies, Inc. 9,260 208,929

METALS & MINING - 0.9%

Alcoa, Inc. 2,910 170,053

Falconbridge Ltd. 8,920 128,152

Martin Marietta Materials, 1,060 51,874
Inc.

Phelps Dodge Corp. 370 16,604

366,683

TOTAL BASIC INDUSTRIES 809,150

CONSTRUCTION & REAL ESTATE -
0.5%

BUILDING MATERIALS - 0.1%

Vulcan Materials Co. 720 33,660

CONSTRUCTION - 0.2%

Centex Corp. 4,600 95,450

ENGINEERING - 0.2%

Fluor Corp. 3,020 98,150

TOTAL CONSTRUCTION & REAL 227,260
ESTATE

DURABLES - 2.5%

AUTOS, TIRES, & ACCESSORIES -
0.3%

Danaher Corp. 2,430 117,096

CONSUMER DURABLES - 0.3%

Minnesota Mining & 1,330 114,048
Manufacturing Co.

COMMON STOCKS - CONTINUED

SHARES VALUE (NOTE 1)

DURABLES - CONTINUED

CONSUMER ELECTRONICS - 0.9%

Black & Decker Corp. 3,330 $ 121,545

Pioneer Corp. 6,000 183,151

Sony Corp. 900 82,069

386,765

HOME FURNISHINGS - 0.6%

Herman Miller, Inc. 5,020 135,540

Leggett & Platt, Inc. 7,280 146,055

281,595

TEXTILES & APPAREL - 0.4%

Liz Claiborne, Inc. 2,300 90,419

Shaw Industries, Inc. 5,190 72,336

162,755

TOTAL DURABLES 1,062,259

ENERGY - 6.6%

ENERGY SERVICES - 2.3%

Baker Hughes, Inc. 6,250 226,563

BJ Services Co. (a) 1,410 100,991

ENSCO International, Inc. 4,600 160,713

Halliburton Co. 5,420 276,420

Schlumberger Ltd. (NY Shares) 440 32,368

Transocean Sedco Forex, Inc. 3,190 156,908

953,963

OIL & GAS - 4.3%

Anadarko Petroleum Corp. 2,970 157,596

Apache Corp. 4,630 281,851

BP Amoco PLC sponsored ADR 2,585 140,559

Conoco, Inc. Class B 3,840 109,440

Exxon Mobil Corp. 9,310 775,639

Tosco Corp. 3,240 99,225

TotalFinaElf SA sponsored ADR 3,150 248,653

1,812,963

TOTAL ENERGY 2,766,926

FINANCE - 8.4%

BANKS - 0.8%

Bank of America Corp. 1,000 55,563

COMMON STOCKS - CONTINUED

SHARES VALUE (NOTE 1)

FINANCE - CONTINUED

BANKS - CONTINUED

Bank of New York Co., Inc. 3,590 $ 168,506

Northern Trust Corp. 1,570 103,326

327,395

CREDIT & OTHER FINANCE - 2.0%

American Express Co. 6,410 344,938

Citigroup, Inc. 6,340 394,269

Household International, Inc. 1,830 86,010

825,217

FEDERAL SPONSORED CREDIT - 1.8%

Fannie Mae 10,950 658,369

Freddie Mac 2,250 100,125

758,494

INSURANCE - 3.1%

AFLAC, Inc. 5,480 283,248

AMBAC Financial Group, Inc. 5,290 266,484

American International Group, 2,680 301,668
Inc.

CIGNA Corp. 3,000 266,438

MetLife, Inc. 1,200 24,600

UnumProvident Corp. 3,500 79,406

XL Capital Ltd. Class A 1,460 86,870

1,308,714

SECURITIES INDUSTRY - 0.7%

Charles Schwab Corp. 3,525 101,344

Daiwa Securities Group, Inc. 6,000 72,926

Morgan Stanley Dean Witter & 1,640 117,978
Co.

292,248

TOTAL FINANCE 3,512,068

HEALTH - 6.6%

DRUGS & PHARMACEUTICALS - 4.6%

Abgenix, Inc. (a) 800 63,200

Bristol-Myers Squibb Co. 4,000 220,250

Celgene Corp. (a) 3,900 143,325

Eli Lilly & Co. 9,010 685,886

Genentech, Inc. 630 67,646

Merck & Co., Inc. 1,360 101,490

PE Corp. - Celera Genomics 660 36,713
Group (a)

Protein Design Labs, Inc. (a) 1,040 110,890

COMMON STOCKS - CONTINUED

SHARES VALUE (NOTE 1)

HEALTH - CONTINUED

DRUGS & PHARMACEUTICALS -
CONTINUED

Schering-Plough Corp. 3,970 $ 192,049

Warner-Lambert Co. 2,570 313,861

1,935,310

MEDICAL EQUIPMENT & SUPPLIES
- 1.9%

Cardinal Health, Inc. 3,740 242,633

Johnson & Johnson 1,780 159,310

Medtronic, Inc. 7,010 361,891

Omnicare, Inc. 1,820 30,030

793,864

MEDICAL FACILITIES MANAGEMENT
- 0.1%

Express Scripts, Inc. Class A 630 33,784
(a)

TOTAL HEALTH 2,762,958

INDUSTRIAL MACHINERY &
EQUIPMENT - 3.1%

ELECTRICAL EQUIPMENT - 2.7%

General Electric Co. 19,570 1,029,846

Harris Corp. 880 26,895

Pinnacle Systems (a) 3,010 72,240

1,128,981

INDUSTRIAL MACHINERY &
EQUIPMENT - 0.4%

Caterpillar, Inc. 4,290 164,093

TOTAL INDUSTRIAL MACHINERY & 1,293,074
EQUIPMENT

MEDIA & LEISURE - 2.9%

BROADCASTING - 0.9%

Clear Channel Communications, 2,180 163,228
Inc. (a)

Comcast Corp. Class A 5,500 208,313
(special) (a)

371,541

ENTERTAINMENT - 1.3%

Mandalay Resort Group (a) 1,500 31,781

MGM Grand, Inc. 1,700 55,250

Viacom, Inc. Class B 6,704 415,648
(non-vtg.) (a)

Walt Disney Co. 1,700 71,719

574,398

COMMON STOCKS - CONTINUED

SHARES VALUE (NOTE 1)

MEDIA & LEISURE - CONTINUED

RESTAURANTS - 0.7%

Brinker International, Inc. 3,970 $ 112,401
(a)

Darden Restaurants, Inc. 10,110 173,766

286,167

TOTAL MEDIA & LEISURE 1,232,106

NONDURABLES - 1.9%

FOODS - 0.4%

Keebler Foods Co. 2,130 77,213

Quaker Oats Co. 1,020 75,034

152,247

HOUSEHOLD PRODUCTS - 0.3%

Avon Products, Inc. 3,470 143,354

TOBACCO - 1.2%

Philip Morris Companies, Inc. 19,630 512,834

TOTAL NONDURABLES 808,435

RETAIL & WHOLESALE - 3.8%

DRUG STORES - 0.9%

Walgreen Co. 13,930 395,264

GENERAL MERCHANDISE STORES -
1.5%

Costco Wholesale Corp. (a) 1,080 34,492

Dollar Tree Stores, Inc. (a) 3,450 205,275

Wal-Mart Stores, Inc. 6,770 390,121

629,888

GROCERY STORES - 0.6%

Safeway, Inc. (a) 5,020 231,548

RETAIL & WHOLESALE,
MISCELLANEOUS - 0.8%

Best Buy Co., Inc. (a) 2,870 183,680

Home Depot, Inc. 2,925 142,777

326,457

TOTAL RETAIL & WHOLESALE 1,583,157

COMMON STOCKS - CONTINUED

SHARES VALUE (NOTE 1)

SERVICES - 0.6%

ADVERTISING - 0.5%

DoubleClick, Inc. (a) 750 $ 31,688

Omnicom Group, Inc. 2,070 173,751

205,439

SERVICES - 0.1%

Ecolab, Inc. 1,240 47,430

TOTAL SERVICES 252,869

TECHNOLOGY - 21.6%

COMMUNICATIONS EQUIPMENT - 5.2%

Ciena Corp. (a) 300 35,906

Cisco Systems, Inc. (a) 14,500 825,594

Comverse Technology, Inc. (a) 5,230 477,891

Corning, Inc. 1,200 232,125

Lucent Technologies, Inc. 2,220 127,373

Nokia AB sponsored ADR 3,420 177,840

Nortel Networks Corp. 5,580 297,364

2,174,093

COMPUTER SERVICES & SOFTWARE
- 5.7%

America Online, Inc. (a) 11,540 611,620

Ariba, Inc. 970 50,561

Automatic Data Processing, 3,380 185,689
Inc.

BEA Systems, Inc. (a) 300 10,838

eBay, Inc. (a) 940 58,809

Electronic Data Systems Corp. 6,860 441,184

Exodus Communications, Inc. 1,040 73,385
(a)

i2 Technologies, Inc. (a) 220 23,403

Inktomi Corp. (a) 90 10,046

Intuit, Inc. (a) 1,280 46,400

Microsoft Corp. (a) 5,680 355,355

Oracle Corp. (a) 4,580 329,188

VeriSign, Inc. (a) 480 64,980

VERITAS Software Corp. (a) 1,320 153,780

2,415,238

COMPUTERS & OFFICE EQUIPMENT
- 4.7%

Brocade Communications 1,150 135,628
Systems, Inc.

CDW Computer Centers, Inc. (a) 1,050 122,834

Compaq Computer Corp. 1,900 49,875

Dell Computer Corp. (a) 2,340 100,913

EMC Corp. (a) 3,330 387,321

COMMON STOCKS - CONTINUED

SHARES VALUE (NOTE 1)

TECHNOLOGY - CONTINUED

COMPUTERS & OFFICE EQUIPMENT
- CONTINUED

Gateway, Inc. (a) 4,270 $ 211,365

Hewlett-Packard Co. 1,100 132,138

International Business 220 23,609
Machines Corp.

Lexmark International Group, 1,960 136,710
Inc. Class A (a)

Pitney Bowes, Inc. 1,430 62,205

SCI Systems, Inc. (a) 4,310 193,950

Sun Microsystems, Inc. (a) 1,760 134,860

Symbol Technologies, Inc. 5,160 227,363

Tech Data Corp. (a) 1,280 48,080

1,966,851

ELECTRONIC INSTRUMENTS - 0.5%

Beckman Coulter, Inc. 500 30,063

KLA-Tencor Corp. (a) 1,740 86,239

Tektronix, Inc. 1,100 58,850

Thermo Electron Corp. (a) 2,930 54,388

229,540

ELECTRONICS - 5.5%

Altera Corp. (a) 1,630 139,976

Analog Devices, Inc. (a) 1,480 113,960

Flextronics International 3,050 166,034
Ltd. (a)

Intel Corp. 4,440 553,613

JDS Uniphase Corp. (a) 2,690 236,720

Linear Technology Corp. 9,310 549,872

Micron Technology, Inc. (a) 1,900 132,881

Sanmina Corp. (a) 2,080 132,340

Texas Instruments, Inc. 840 60,690

Tyco International Ltd. 3,820 179,779

Xilinx, Inc. (a) 600 45,675

2,311,540

TOTAL TECHNOLOGY 9,097,262

TRANSPORTATION - 0.9%

AIR TRANSPORTATION - 0.5%

AMR Corp. 3,050 86,925

Southwest Airlines Co. 6,250 119,922

206,847

COMMON STOCKS - CONTINUED

SHARES VALUE (NOTE 1)

TRANSPORTATION - CONTINUED

TRUCKING & FREIGHT - 0.4%

Expeditors International of 4,320 $ 175,230
Washington, Inc.

TOTAL TRANSPORTATION 382,077

UTILITIES - 4.1%

CELLULAR - 2.8%

China Telecom (Hong Kong) 20,000 147,000
Ltd. (a)

Nextel Communications, Inc. 2,790 258,424
Class A (a)

Sprint Corp. - PCS Group 6,830 379,065
Series 1 (a)

Vodafone AirTouch PLC 3,310 151,639
sponsored ADR

VoiceStream Wireless Corp. (a) 1,950 223,275

1,159,403

ELECTRIC UTILITY - 0.7%

AES Corp. (a) 3,470 302,758

TELEPHONE SERVICES - 0.6%

AT&T Corp. 3,360 116,550

Metromedia Fiber Network, 4,950 153,141
Inc. Class A (a)

Ono Finance PLC rights 20 200
5/31/09 (a)(f)

Pathnet, Inc. warrants 35 350
4/15/08 (a)(f)

270,241

TOTAL UTILITIES 1,732,402

TOTAL COMMON STOCKS 28,402,708
(Cost $27,535,375)

NONCONVERTIBLE PREFERRED
STOCKS - 0.8%

MEDIA & LEISURE - 0.1%

BROADCASTING - 0.1%

CSC Holdings, Inc. 11.125% 137 14,454
pay-in-kind

Sinclair Capital 11.625% 101 9,141

23,595

NONCONVERTIBLE PREFERRED
STOCKS - CONTINUED

SHARES VALUE (NOTE 1)

MEDIA & LEISURE - CONTINUED

PUBLISHING - 0.0%

PRIMEDIA, Inc.:

$9.20 16 $ 1,376

8.625% 5 425

1,801

TOTAL MEDIA & LEISURE 25,396

UTILITIES - 0.7%

CELLULAR - 0.3%

Crown Castle International 29 28,420
Corp. 12.75% pay-in-kind

Nextel Communications, Inc.:

11.125% pay-in-kind 102 92,310

Series D, 13% pay-in-kind 11 11,110

131,840

TELEPHONE SERVICES - 0.4%

Adelphia Business Solution, 27 24,570
Inc. 12.875% pay-in-kind

Intermedia Communications, 11 10,230
Inc. 13.5% pay-in-kind

IXC Communications, Inc. 51 51,510
12.5% pay-in-kind

NEXTLINK Communications, Inc. 848 41,552
14% pay-in-kind

WinStar Communications, Inc. 40 56,000
14.25% (a)

183,862

TOTAL UTILITIES 315,702

TOTAL NONCONVERTIBLE 341,098
PREFERRED STOCKS
(Cost $320,845)

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
CORPORATE BONDS - 13.5%

MOODY'S RATINGS (UNAUDITED) (B) PRINCIPAL AMOUNT

CONVERTIBLE BONDS - 0.4%

HEALTH - 0.1%

MEDICAL FACILITIES MANAGEMENT
- 0.1%

Tenet Healthcare Corp. 6% B1 $ 40,000 31,600
12/1/05

Total Renal Care Holdings, B3 30,000 18,450
Inc. 7% 5/15/09 (f)

50,050

CORPORATE BONDS - CONTINUED

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

CONVERTIBLE BONDS - CONTINUED

MEDIA & LEISURE - 0.2%

LODGING & GAMING - 0.2%

Hilton Hotels Corp. 5% 5/15/06 Ba2 $ 90,000 $ 68,738

NONDURABLES - 0.0%

FOODS - 0.0%

Chiquita Brands B3 10,000 8,600
International, Inc. 7%
3/28/01

RETAIL & WHOLESALE - 0.1%

RETAIL & WHOLESALE,
MISCELLANEOUS - 0.1%

Sunglass Hut International, B3 30,000 21,300
Inc. 5.25% 6/15/03

TOTAL CONVERTIBLE BONDS 148,688

NONCONVERTIBLE BONDS - 13.1%

AEROSPACE & DEFENSE - 0.0%

SHIP BUILDING & REPAIR - 0.0%

Newport News Shipbuilding, Ba3 20,000 19,600
Inc. 9.25% 12/1/06

BASIC INDUSTRIES - 1.5%

CHEMICALS & PLASTICS - 0.7%

Acetex Corp. yankee 9.75% B3 70,000 64,400
10/1/03

Huntsman Corp. 9.5% 7/1/07 (f) B2 70,000 63,000

Lyondell Chemical Co.:

9.625% 5/1/07 Ba3 10,000 9,650

9.875% 5/1/07 Ba3 100,000 96,500

10.875% 5/1/09 B2 55,000 53,075

Sterling Chemicals, Inc. Caa3 35,000 28,175
11.75% 8/15/06

314,800

METALS & MINING - 0.3%

Kaiser Aluminum & Chemical
Corp.:

9.875% 2/15/02 B1 55,000 52,250

12.75% 2/1/03 B3 60,000 54,300

106,550

PACKAGING & CONTAINERS - 0.4%

Gaylord Container Corp.:

9.375% 6/15/07 Caa1 90,000 74,475

CORPORATE BONDS - CONTINUED

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

NONCONVERTIBLE BONDS -
CONTINUED

BASIC INDUSTRIES - CONTINUED

PACKAGING & CONTAINERS -
CONTINUED

Gaylord Container Corp.: -
continued

9.75% 6/15/07 Caa1 $ 65,000 $ 55,088

Packaging Corp. of America B2 50,000 49,000
9.625% 4/1/09

178,563

PAPER & FOREST PRODUCTS - 0.1%

Doman Industries Ltd. yankee Caa1 50,000 39,750
8.75% 3/15/04

TOTAL BASIC INDUSTRIES 639,663

CONSTRUCTION & REAL ESTATE -
0.3%

CONSTRUCTION - 0.2%

Blount, Inc. 13% 8/1/09 B3 50,000 48,375

Lennar Corp. 9.95% 5/1/10 (f) Ba1 5,000 4,750

53,125

ENGINEERING - 0.0%

Anteon Corp. 12% 5/15/09 B3 10,000 8,750

REAL ESTATE - 0.1%

LNR Property Corp. 9.375% B1 50,000 42,875
3/15/08

TOTAL CONSTRUCTION & REAL 104,750
ESTATE

DURABLES - 0.0%

TEXTILES & APPAREL - 0.0%

Polymer Group, Inc. 9% 7/1/07 B2 10,000 8,200

ENERGY - 0.4%

COAL - 0.1%

P&L Coal Holdings Corp. B2 35,000 31,150
9.625% 5/15/08

ENERGY SERVICES - 0.1%

R&B Falcon Corp. 6.5% 4/15/03 Ba3 40,000 37,000

RBF Finance Co. 11% 3/15/06 Ba3 10,000 10,600

47,600

OIL & GAS - 0.2%

Chesapeake Energy Corp. B2 85,000 81,175
9.625% 5/1/05

TOTAL ENERGY 159,925

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 $ 10,000 $ 5,200

Details Capital Corp. 0% Caa1 5,000 3,150
11/15/07 (e)

Macsaver Financial Services,
Inc.:

7.4% 2/15/02 Ba2 5,000 3,600

7.6% 8/1/07 Ba2 20,000 11,600

7.875% 8/1/03 Ba2 50,000 34,000

Venetian Casino Resort Caa1 10,000 9,700
LLC/Las Vegas Sands, Inc.
12.25% 11/15/04

67,250

HEALTH - 0.3%

MEDICAL FACILITIES MANAGEMENT
- 0.3%

Fountain View, Inc. 11.25% Caa1 50,000 23,000
4/15/08

Tenet Healthcare Corp. 8.625% Ba3 70,000 64,750
1/15/07

Unilab Corp. 12.75% 10/1/09 B3 40,000 40,800

128,550

INDUSTRIAL MACHINERY &
EQUIPMENT - 0.6%

INDUSTRIAL MACHINERY &
EQUIPMENT - 0.2%

Dunlop Standard Aero Holdings B3 20,000 19,300
PLC 11.875% 5/15/09

Tenneco Automotive, Inc. B2 55,000 51,150
11.625% 10/15/09

70,450

POLLUTION CONTROL - 0.4%

Allied Waste North America,
Inc.:

7.375% 1/1/04 Ba3 10,000 8,900

7.625% 1/1/06 Ba2 10,000 8,600

10% 8/1/09 B2 190,000 150,100

Browning-Ferris Industries, Ba3 20,000 14,800
Inc. 6.375% 1/15/08

182,400

TOTAL INDUSTRIAL MACHINERY & 252,850
EQUIPMENT

MEDIA & LEISURE - 3.4%

BROADCASTING - 2.8%

Adelphia Communications Corp. B1 75,000 69,938
9.875% 3/1/07

CORPORATE BONDS - CONTINUED

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

NONCONVERTIBLE BONDS -
CONTINUED

MEDIA & LEISURE - CONTINUED

BROADCASTING - CONTINUED

Ascent Entertainment Group, Ba1 $ 20,000 $ 16,200
Inc. 0% 12/15/04 (e)

Chancellor Media Corp.:

8.125% 12/15/07 B1 50,000 49,625

9% 10/1/08 B1 15,000 15,263

Charter Communications
Holdings LLC/Charter
Communications Holdings
Capital Corp.:

8.625% 4/1/09 B2 10,000 8,350

10% 4/1/09 (f) B2 55,000 50,463

Citadel Broadcasting Co. B3 20,000 19,650
10.25% 7/1/07

Comcast UK Cable Partners B2 50,000 47,000
Ltd. 0% 11/15/07 (e)

Diamond Cable Communications B3 115,000 86,825
PLC 0% 2/15/07 (e)

Earthwatch, Inc. 0% 7/15/07 - 20,000 12,800
unit (e)(f)

EchoStar DBS Corp. 9.25% B2 85,000 79,900
2/1/06

Fox Family Worldwide, Inc. B1 50,000 42,250
9.25% 11/1/07

FrontierVision Holdings B1 55,000 46,750
LP/FrontierVision Holdings
Capital Corp. 0% 9/15/07 (e)

FrontierVision Holdings Caa1 10,000 8,500
LP/FrontierVision Holdings
Capital II Corp. 0% 9/15/07
(e)

FrontierVision Operating B1 20,000 20,600
Partners LP/ FrontierVision
Capital Corp. 11% 10/15/06

Golden Sky DBS, Inc. 0% Caa1 50,000 33,500
3/1/07 (e)

Golden Sky Systems, Inc. B3 30,000 32,850
12.375% 8/1/06

Knology Holding, Inc. 0% - 38,000 21,280
10/15/07 (e)

NorthPoint Communication Caa1 125,000 107,500
Holdings, Inc. 12.875%
2/15/10 (f)

Olympus Communications B1 50,000 48,500
LP/Olympus Capital Corp.
10.625% 11/15/06

Pegasus Communications Corp. B3 75,000 71,625
9.625% 10/15/05

Telewest PLC 0% 10/1/07 (e) B1 80,000 75,200

United International B3 70,000 41,300
Holdings, Inc. 0% 2/15/08 (e)

United Pan-Europe
Communications NV:

0% 2/1/10 (e)(f) B2 245,000 105,350

10.875% 8/1/09 B2 99,000 83,160

1,194,379

CORPORATE BONDS - CONTINUED

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

NONCONVERTIBLE BONDS -
CONTINUED

MEDIA & LEISURE - CONTINUED

ENTERTAINMENT - 0.1%

Bally Total Fitness Holding B3 $ 43,000 $ 38,270
Corp. 9.875% 10/15/07

Regal Cinemas, Inc.:

8.875% 12/15/10 Caa2 30,000 10,800

9.5% 6/1/08 Caa2 30,000 12,000

61,070

LODGING & GAMING - 0.2%

Courtyard by Marriott II B- 20,000 19,400
LP/Courtyard II Finance Co.
10.75% 2/1/08

HMH Properties, Inc. 7.875% Ba2 10,000 8,875
8/1/05

Hollywood Casino Corp. 11.25% B3 30,000 30,150
5/1/07

Host Marriott LP 8.375% Ba2 40,000 36,200
2/15/06

94,625

PUBLISHING - 0.1%

Garden State Newspapers, Inc. B1 25,000 21,688
Series B, 8.75% 10/1/09

RESTAURANTS - 0.2%

Domino's, Inc. 10.375% 1/15/09 B3 70,000 63,875

NE Restaurant, Inc. 10.75% B3 10,000 7,650
7/15/08

71,525

TOTAL MEDIA & LEISURE 1,443,287

RETAIL & WHOLESALE - 0.1%

GROCERY STORES - 0.1%

Pathmark Stores, Inc. 9.625% Caa3 50,000 35,000
5/1/03 (d)

Pueblo Xtra International, B3 10,000 4,700
Inc., 9.5% 8/1/03

39,700

SERVICES - 0.1%

La Petite Academy, Inc./La B3 50,000 26,500
Petite Academy Holding Co.
10% 5/15/08

TECHNOLOGY - 1.8%

COMPUTER SERVICES & SOFTWARE
- 1.3%

Amazon.com, Inc. 0% 5/1/08 (e) Caa1 35,000 19,950

Concentric Network Corp. B- 35,000 35,875
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

Covad Communications Group,
Inc.:

0% 3/15/08 (e) B3 $ 35,000 $ 21,350

12% 2/15/10 (f) B3 85,000 78,200

12.5% 2/15/09 B3 12,000 11,280

Exodus Communications, Inc.:

10.75% 12/15/09 B- 40,000 39,400

11.25% 7/1/08 B- 175,000 175,875

PSINet, Inc.:

10.5% 12/1/06 B3 145,000 126,150

11% 8/1/09 B3 35,000 30,450

Verio, Inc. 10.375% 4/1/05 B3 1,000 1,060

539,590

COMPUTERS & OFFICE EQUIPMENT
- 0.0%

Globix Corp. 12.5% 2/1/10 - 35,000 29,400

ELECTRONIC INSTRUMENTS - 0.1%

Telecommunications Techniques B3 50,000 45,500
Co. LLC 9.75% 5/15/08

ELECTRONICS - 0.4%

ChipPAC International Ltd. B3 50,000 52,125
12.75% 8/1/09

Details, Inc. 10% 11/15/05 B3 30,000 27,825

Fairchild Semiconductor Corp.:

10.125% 3/15/07 B2 5,000 4,888

10.375% 10/1/07 B3 26,000 25,740

SCG Holding B2 25,000 26,250
Corp./Semiconductor
Components Industries LLC
12% 8/1/09

Viasystems, Inc. 9.75% 6/1/07 B3 30,000 25,500

162,328

TOTAL TECHNOLOGY 776,818

TRANSPORTATION - 0.1%

AIR TRANSPORTATION - 0.1%

Atlas Air, Inc. 9.25% 4/15/08 B2 30,000 27,975

UTILITIES - 4.3%

CELLULAR - 1.3%

Leap Wireless International, Caa2 5,000 4,600
Inc. 12.5% 4/15/10 unit (f)

CORPORATE BONDS - CONTINUED

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

NONCONVERTIBLE BONDS -
CONTINUED

UTILITIES - CONTINUED

CELLULAR - CONTINUED

McCaw International Ltd. 0% Caa1 $ 26,000 $ 18,330
4/15/07 (e)

Millicom International Caa1 105,000 87,675
Cellular SA 0% 6/1/06 (e)

Nextel Communications, Inc.:

0% 10/31/07 (e) B1 445,000 315,950

9.375% 11/15/09 B1 45,000 42,188

Nextel International, Inc. 0% Caa1 40,000 24,200
4/15/08 (e)

Voicestream Wireless B2 40,000 40,900
Corp./Voicestream Wireless
Holding Co. 10.375% 11/15/09

533,843

TELEPHONE SERVICES - 3.0%

Allegiance Telecom, Inc. 0% B3 60,000 42,300
2/15/08 (e)

FirstWorld Communications, - 55,000 24,888
Inc. 0% 4/15/08 (e)

Focal Communications Corp. 0% B3 85,000 53,975
2/15/08 (e)

Global Crossing Holdings Ltd. Ba2 10,000 9,375
9.125% 11/15/06

Globenet Communication Group Caa1 115,000 116,150
Ltd. 13% 7/15/07

Hyperion Telecommunications, Caa1 95,000 92,625
Inc. 12% 11/1/07

ICG Holdings, Inc.:

0% 9/15/05 (e) B3 30,000 28,350

0% 5/1/06 (e) B3 10,000 8,100

Intermedia Communications,
Inc.:

0% 7/15/07 (e) B2 30,000 22,050

0% 3/1/09 (e) B3 50,000 27,750

KMC Telecom Holdings, Inc. Caa2 20,000 17,200
13.5% 5/15/09

Level 3 Communications, Inc.:

9.125% 5/1/08 B3 132,000 113,850

11% 3/15/08 (f) B3 10,000 9,550

McLeodUSA, Inc.:

0% 3/1/07 (e) B1 165,000 130,350

9.5% 11/1/08 B1 75,000 71,250

Metromedia Fiber Network, B2 20,000 18,800
Inc. 10% 12/15/09

NEXTLINK Communications, Inc.:

9.625% 10/1/07 B2 55,000 49,775

10.5% 12/1/09 (f) B2 80,000 75,200

Ono Finance PLC 13% 5/1/09 Caa1 25,000 24,500

Pathnet, Inc. 12.25% 4/15/08 - 35,000 20,300

CORPORATE BONDS - CONTINUED

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

NONCONVERTIBLE BONDS -
CONTINUED

UTILITIES - CONTINUED

TELEPHONE SERVICES - CONTINUED

Rhythms NetConnections, Inc.:

0% 5/15/08 (e) B3 $ 85,000 $ 38,250

12.75% 4/15/09 B3 70,000 55,300

Teligent, Inc.:

0% 3/1/08 (e) Caa1 45,000 20,250

11.5% 12/1/07 Caa1 55,000 41,250

WinStar Communications, Inc.:

0% 4/15/10 (e)(f) B3 91,000 38,903

12.75% 4/15/10 (f) B3 134,000 123,615

Worldwide Fiber, Inc. 12% B3 10,000 9,300
8/1/09

1,283,206

TOTAL UTILITIES 1,817,049

TOTAL NONCONVERTIBLE BONDS 5,512,117

TOTAL CORPORATE BONDS 5,660,805
(Cost $6,040,977)

U.S. TREASURY OBLIGATIONS -
5.9%

U.S. Treasury Bills, yield at - 175,000 173,108
date of purchase 5.81% to
6.02% 8/10/00 to 8/17/00 (g)

U.S. Treasury Bond Contracts:

6.875% 8/15/25 Aaa 76,000 81,261

7.625% 2/15/25 Aaa 47,000 54,564

8.125% 8/15/19 Aaa 380,000 451,486

8.875% 8/15/17 Aaa 95,000 118,972

9.875% 11/15/15 Aaa 10,000 13,319

U.S. Treasury Notes:

4.75% 11/15/08 Aaa 457,000 407,443

5.875% 11/15/04 Aaa 461,000 448,180

6.625% 6/30/01 Aaa 756,000 754,821

TOTAL U.S. TREASURY OBLIGATIONS 2,503,154
(Cost $2,515,188)

</TABLE>

CASH EQUIVALENTS - 12.6%

MATURITY AMOUNT VALUE (NOTE 1)

Investments in repurchase $ 135,025 $ 135,000
agreements (U.S. Government
Obligations), in a joint
trading account at 6.56%,
dated 5/31/00 due 6/1/00

Taxable Central Cash Fund, 5,191,433 5,191,433
6.37% (c)

TOTAL CASH EQUIVALENTS 5,326,433
(Cost $5,326,433)

TOTAL INVESTMENT PORTFOLIO - 42,234,198
100.3%
(Cost $41,738,818)

NET OTHER ASSETS - (0.3)% (142,856)

NET ASSETS - 100% $ 42,091,342

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
FUTURES CONTRACTS

EXPIRATION DATE UNDERLYING FACE AMOUNT AT VALUE UNREALIZED GAIN/LOSS

PURCHASED

5 S&P 500 Stock Index Contracts June 2000 $ 1,777,750 $ (13,618)

THE FACE VALUE OF FUTURES PURCHASED AS A PERCENTAGE OF NET ASSETS - 4.2%

</TABLE>

LEGEND

(a) Non-income producing

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

(d) Non-income producing - issuer filed for protection under the
Federal Bankruptcy Code or is in default of interest payment.

(e) 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.

(f) 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 $692,931 or 1.6% of net assets.

(g) Security or a portion of the security was pledged to cover margin
requirements for futures contracts. At the period end, the value of
securities pledged amounted to $173,108.

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 5.5% AAA, AA, A 5.5%

Baa 0.0% BBB 0.0%

Ba 1.1% BB 1.0%

B 9.2% B 10.7%

Caa 2.2% CCC 1.3%

Ca, C 0.0% CC, C 0.0%

D 0.1%

The percentage not rated by Moody's or S&P amounted to 0.3%. FMR has
determined that unrated debt securities that are lower quality account
for 0.3% of the total value of investment in securities.

INCOME TAX INFORMATION

At May 31, 2000, the aggregate cost of investment securities for
income tax purposes was $42,030,474. Net unrealized appreciation
aggregated $203,724, of which $2,232,050 related to appreciated
investment securities and $2,028,326 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
MAY 31, 2000 (UNAUDITED)

ASSETS

Investment in securities, at $ 42,234,198
value (including repurchase
agreements of $135,000)
(cost $41,738,818) - See
accompanying schedule

Cash 932

Receivable for investments 592,416
sold

Receivable for fund shares 176,322
sold

Dividends receivable 23,276

Interest receivable 189,410

TOTAL ASSETS 43,216,554

LIABILITIES

Payable for investments $ 951,194
purchased

Payable for fund shares 91,053
redeemed

Accrued management fee 19,435

Distribution fees payable 24,673

Payable for daily variation 6,250
on futures contracts

Other payables and accrued 32,607
expenses

TOTAL LIABILITIES 1,125,212

NET ASSETS $ 42,091,342

Net Assets consist of:

Paid in capital $ 40,027,005

Undistributed net investment 147,474
income

Accumulated undistributed net 1,435,101
realized gain (loss) on
investments and foreign
currency transactions

Net unrealized appreciation 481,762
(depreciation) on investments

NET ASSETS $ 42,091,342

STATEMENT OF ASSETS AND LIABILITIES - CONTINUED
MAY 31, 2000 (UNAUDITED)

CALCULATION OF MAXIMUM $11.37
OFFERING PRICE CLASS A: NET
ASSET VALUE and redemption
price per share
($2,509,797 (divided by)
220,692 shares)

Maximum offering price per $12.06
share (100/94.25 of $11.37)

CLASS T: NET ASSET VALUE and $11.35
redemption price per share
($16,307,169 (divided by)
1,437,361 shares)

Maximum offering price per $11.76
share (100/96.50 of $11.35)

CLASS B: NET ASSET VALUE and $11.30
offering price per share
($14,278,420 (divided by)
1,263,764 shares) A

CLASS C: NET ASSET VALUE and $11.29
offering price per share
($7,910,965 (divided by)
700,874 shares) A

INSTITUTIONAL CLASS: NET $11.40
ASSET VALUE, offering price
and redemption price per
share ($1,084,991 (divided
by) 95,191 shares)

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

STATEMENT OF OPERATIONS

SIX MONTHS ENDED MAY 31,
2000 (UNAUDITED)

INVESTMENT INCOME $ 123,121
Dividends

Interest 412,331

TOTAL INCOME 535,452

EXPENSES

Management fee $ 99,379

Transfer agent fees 38,646

Distribution fees 124,304

Accounting fees and expenses 30,133

Non-interested trustees' 49
compensation

Custodian fees and expenses 16,926

Registration fees 39,021

Audit 10,093

Legal 60

Miscellaneous 608

Total expenses before 359,219
reductions

Expense reductions (3,856) 355,363

NET INVESTMENT INCOME 180,089

REALIZED AND UNREALIZED GAIN
(LOSS)
Net realized gain (loss) on:

Investment securities 1,858,018

Foreign currency transactions (2,606)

Futures contracts (30,536) 1,824,876

Change in net unrealized
appreciation (depreciation)
on:

Investment securities (787,321)

Futures contracts (13,618) (800,939)

NET GAIN (LOSS) 1,023,937

NET INCREASE (DECREASE) IN $ 1,204,026
NET ASSETS RESULTING FROM
OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS

SIX MONTHS ENDED MAY 31, 2000 DECEMBER 28, 1998
(UNAUDITED) (COMMENCEMENT OF OPERATIONS)
TO NOVEMBER 30, 1999

INCREASE (DECREASE) IN NET
ASSETS

Operations Net investment $ 180,089 $ 111,241
income

Net realized gain (loss) 1,824,876 (389,248)

Change in net unrealized (800,939) 1,282,701
appreciation (depreciation)

NET INCREASE (DECREASE) IN 1,204,026 1,004,694
NET ASSETS RESULTING FROM
OPERATIONS

Distributions to shareholders (132,508) -
from net investment income

Share transactions - net 14,585,409 25,429,721
increase (decrease)

TOTAL INCREASE (DECREASE) 15,656,927 26,434,415
IN NET ASSETS

NET ASSETS

Beginning of period 26,434,415 -

End of period (including $ 42,091,342 $ 26,434,415
undistributed net investment
income of $147,474 and
$100,719, respectively)

</TABLE>

FINANCIAL HIGHLIGHTS - CLASS A

SIX MONTHS ENDED MAY 31, 2000 NOVEMBER 30,

(UNAUDITED) 1999 E

SELECTED PER-SHARE DATA

Net asset value, beginning of $ 10.92 $ 10.00
period

Income from Investment
Operations

Net investment income D .08 .12

Net realized and unrealized .44 .80
gain (loss)

Total from investment .52 .92
operations

Less Distributions

From net investment income (.07) -

Net asset value, end of period $ 11.37 $ 10.92

TOTAL RETURN B, C 4.78% 9.20%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period $ 2,510 $ 1,819
(000 omitted)

Ratio of expenses to average 1.69%A 1.75% A, F
net assets

Ratio of expenses to average 1.66% A, G 1.74% A, G
net assets after expense
reductions

Ratio of net investment 1.46%A 1.24%A
income to average net assets

Portfolio turnover 305%A 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 FOR THE PERIOD DECEMBER 28, 1998 (COMMENCEMENT OF OPERATIONS) TO
NOVEMBER 30, 1999.
F FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD
HAVE BEEN HIGHER.
G FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES.

FINANCIAL HIGHLIGHTS - CLASS T

SIX MONTHS ENDED MAY 31, 2000 NOVEMBER 30,

(UNAUDITED) 1999 E

SELECTED PER-SHARE DATA

Net asset value, beginning of $ 10.89 $ 10.00
period

Income from Investment
Operations

Net investment income D .07 .10

Net realized and unrealized .45 .79
gain (loss)

Total from investment .52 .89
operations

Less Distributions

From net investment income (.06) -

Net asset value, end of period $ 11.35 $ 10.89

TOTAL RETURN B, C 4.79% 8.90%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period $ 16,307 $ 10,819
(000 omitted)

Ratio of expenses to average 1.87% A 2.00% A, F
net assets

Ratio of expenses to average 1.84%A, G 1.99%A, G
net assets after expense
reductions

Ratio of net investment 1.28% A .99% A
income to average net assets

Portfolio turnover 305% A 115% A

FINANCIAL HIGHLIGHTS - CLASS B

SIX MONTHS ENDED MAY 31, 2000 NOVEMBER 30,

(UNAUDITED) 1999 E

SELECTED PER-SHARE DATA

Net asset value, beginning of $ 10.85 $ 10.00
period

Income from Investment
Operations

Net investment incomeD .04 .05

Net realized and unrealized .45 .80
gain (loss)

Total from investment .49 .85
operations

Less Distributions

From net investment income (.04) -

Net asset value, end of period $ 11.30 $ 10.85

TOTAL RETURN B, C 4.52% 8.50%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period $ 14,278 $ 8,603
(000 omitted)

Ratio of expenses to average 2.38% A 2.50% A, F
net assets

Ratio of expenses to average 2.36% A, G 2.49% A, G
net assets after expense
reductions

Ratio of net investment .77% A .49% A
income to average net assets

Portfolio turnover 305% A 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 FOR THE PERIOD DECEMBER 28, 1998 (COMMENCEMENT OF OPERATIONS) TO
NOVEMBER 30, 1999.
F FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD
HAVE BEEN HIGHER.
G FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES.

FINANCIAL HIGHLIGHTS - CLASS C

SIX MONTHS ENDED MAY 31, 2000 NOVEMBER 30,

(UNAUDITED) 1999 E

SELECTED PER-SHARE DATA

Net asset value, beginning of $ 10.85 $ 10.00
period

Income from Investment
Operations

Net investment income D .04 .05

Net realized and unrealized .44 .80
gain (loss)

Total from investment .48 .85
operations

Less Distributions

From net investment income (.04) -

Net asset value, end of period $ 11.29 $ 10.85

TOTAL RETURN B, C 4.43% 8.50%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period $ 7,911 $ 4,217
(000 omitted)

Ratio of expenses to average 2.38% A 2.50% A, F
net assets

Ratio of expenses to average 2.35% A, G 2.49% A, G
net assets after expense
reductions

Ratio of net investment .77% A .49% A
income to average net assets

Portfolio turnover 305% A 115% A

FINANCIAL HIGHLIGHTS - INSTITUTIONAL CLASS

SIX MONTHS ENDED MAY 31, 2000 NOVEMBER 30,

(UNAUDITED) 1999 E

SELECTED PER-SHARE DATA

Net asset value, beginning of $ 10.95 $ 10.00
period

Income from Investment
Operations

Net investment income D .10 .14

Net realized and unrealized .44 .81
gain (loss)

Total from investment .54 .95
operations

Less Distributions

From net investment income (.09) -

Net asset value, end of period $ 11.40 $ 10.95

TOTAL RETURN B, C 4.95% 9.50%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period $ 1,085 $ 976
(000 omitted)

Ratio of expenses to average 1.37% A 1.50% A, F
net assets

Ratio of expenses to average 1.35% A, G 1.49% A, G
net assets after expense
reductions

Ratio of net investment 1.78% A 1.49% A
income to average net assets

Portfolio turnover 305% A 115% A

A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIOD SHOWN.
D NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.
E FOR THE PERIOD DECEMBER 28, 1998 (COMMENCEMENT OF OPERATIONS) TO
NOVEMBER 30, 1999.
F FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD
HAVE BEEN HIGHER.
G FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES.

NOTES TO FINANCIAL STATEMENTS
For the period ended May 31, 2000 (Unaudited)

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.

FOREIGN CURRENCY TRANSLATION. The accounting records of the fund are
maintained in U.S. dollars. Investment securities and other assets and
liabilities denominated in a foreign currency are translated into U.S.
dollars at the prevailing rates of exchange at 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.

1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED

FOREIGN CURRENCY TRANSLATION - CONTINUED

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. As a qualified regulated investment company under
Subchapter M of the Internal Revenue Code, the fund is not 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 funds
are 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.

Income and capital gain distributions are determined in accordance
with income tax regulations which may differ from generally accepted
accounting principles. These differences, which may result in
distribution reclassifications, are primarily due to differing
treatments for non-taxable dividends and losses deferred due to wash
sales transactions. The fund also utilized earnings and profits
distributed to shareholders on redemption of shares as a part of the
dividends paid deduction for income tax purposes.

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 and foreign currency transactions
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, Federal Agency,
or other obligations found to be satisfactory by FMR 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.

FUTURES CONTRACTS. The fund may use futures contracts to manage its
exposure to the stock market. Buying futures tends to increase the
fund's exposure to the underlying instrument, while selling futures
tends to decrease the fund's exposure to the underlying instrument or
hedge other fund investments. Futures contracts involve, to varying
degrees, risk of loss in excess of the futures variation margin
reflected in the Statement of Assets and Liabilities. The underlying
face amount at value of any open futures contracts at period end is
shown in the schedule of investments under the caption "Futures
Contracts." This amount reflects each contract's exposure to the
underlying instrument at period end.

2. OPERATING POLICIES - CONTINUED

FUTURES CONTRACTS - CONTINUED

Losses may arise from changes in the value of the underlying
instruments or if the counterparties do not perform under the
contracts' terms. Gains (losses) are realized upon the expiration or
closing of the futures contracts. Futures contracts are valued at the
settlement price established each day by the board of trade or
exchange on which they are traded.

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 $58,103,807 and $48,192,992, respectively, of which U.S.
government and government agency obligations aggregated $970,719 and
$953,345, respectively.

The market value of futures contracts opened and closed during the
period amounted to $2,847,136 and $1,025,232, 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.

4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED

DISTRIBUTION AND SERVICE PLAN - CONTINUED

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 $ 2,734 $ 851

CLASS T 35,038 1,557

CLASS B 57,459 43,857

CLASS C 29,073 21,701

$ 124,304 $ 67,966

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.

4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED

SALES LOAD - CONTINUED

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

PAID TO FDC RETAINED BY FDC

CLASS A $ 14,303 $ 4,122

CLASS T 38,700 8,986

CLASS B 5,574 5,574*

CLASS C 2,646 2,646*

$ 61,223 $ 21,328

* 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 (collectively referred to
as the transfer agent) for the fund's Class A, Class T, Class B, Class
C and Institutional Class shares. 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 $ 3,142 .29*

CLASS T 15,068 .22*

CLASS B 12,853 .23*

CLASS C 6,431 .22*

INSTITUTIONAL CLASS 1,152 .23*

$ 38,646

* ANNUALIZED

ACCOUNTING FEES. Fidelity Service Company, Inc. (FSC), 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 $1,455 for the period.

5. EXPENSE REDUCTIONS.

FMR has 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 $3,804 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 $52 under the custodian arrangement.

6. BENEFICIAL INTEREST.

At the end of the period, FMR and its affiliates were record owners of
approximately 8% of the total outstanding shares of the fund.

7. DISTRIBUTIONS TO SHAREHOLDERS.

Distributions to shareholders of each class were as follows:

SIX MONTHS ENDED MAY 31, YEAR ENDED NOVEMBER 30,

2000 1999A

FROM NET INVESTMENT INCOME

Class A $ 11,898 $ -

Class T 63,358 -

Class B 32,251 -

Class C 16,978 -

Institutional Class 8,023 -

Total $ 132,508 $ -

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

8. SHARE TRANSACTIONS.

Transactions for each class of shares for the periods were as follows:

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

SIX MONTHS ENDED MAY 31, YEAR ENDED NOVEMBER 30, SIX MONTHS ENDED MAY 31,

2000 1999A 2000

CLASS A Shares sold 223,530 $ 862,818
75,946

Reinvestment of distributions 1,015 - 11,291

Shares redeemed (22,959) (56,840) (260,790)

Net increase (decrease) 54,002 166,690 $ 613,319

CLASS T Shares sold 757,587 1,158,501 $ 8,667,150

Reinvestment of distributions 5,510 - 61,212

Shares redeemed (318,999) (165,238) (3,668,030)

Net increase (decrease) 444,098 993,263 $ 5,060,332

CLASS B Shares sold 542,250 828,125 $ 6,156,533

Reinvestment of distributions 2,475 - 27,447

Shares redeemed (73,557) (35,529) (837,437)

Net increase (decrease) 471,168 792,596 $ 5,346,543

CLASS C Shares sold 381,395 409,194 $ 4,284,554

Reinvestment of distributions 1,271 - 14,084

Shares redeemed (70,607) (20,379) (800,675)

Net increase (decrease) 312,059 388,815 $ 3,497,963

INSTITUTIONAL CLASS Shares 7,949 90,420 $ 88,944
sold

Reinvestment of distributions 485 - 5,401

Shares redeemed (2,388) (1,275) (27,093)

Net increase (decrease) 6,046 89,145 $ 67,252

</TABLE>

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

YEAR ENDED NOVEMBER 30,

1999A

CLASS A Shares sold $ 2,339,996

Reinvestment of distributions -

Shares redeemed (589,404)

Net increase (decrease) $ 1,750,592

CLASS T Shares sold $ 12,162,535

Reinvestment of distributions -

Shares redeemed (1,741,383)

Net increase (decrease) $ 10,421,152

CLASS B Shares sold $ 8,657,396

Reinvestment of distributions -

Shares redeemed (370,165)

Net increase (decrease) $ 8,287,231

CLASS C Shares sold $ 4,276,032

Reinvestment of distributions -

Shares redeemed (217,273)

Net increase (decrease) $ 4,058,759

INSTITUTIONAL CLASS Shares $ 925,203
sold

Reinvestment of distributions -

Shares redeemed (13,216)

Net increase (decrease) $ 911,987

</TABLE>

A SHARE TRANSACTIONS ARE FOR THE PERIOD DECEMBER 28, 1998
(COMMENCEMENT OF OPERATIONS) TO NOVEMBER 30, 1999.

INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA

INVESTMENT SUB-ADVISERS
Fidelity Investments
Money Management, Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Far East) Inc.
Fidelity Investments Japan Ltd.

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
Robert A. Dwight, Treasurer
Maria F. Dwyer, Deputy Treasurer
John H. Costello, Assistant Treasurer

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

* INDEPENDENT TRUSTEES

ADVISORY BOARD
J. Michael Cook

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 Telecommunications & 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 Dynamic Capital Appreciation Fund
Fidelity Advisor Equity Growth Fund
Fidelity Advisor Large Cap Fund
Fidelity Advisor Dividend Growth Fund
Fidelity Advisor Growth
Opportunities Fund

AAL-SANN-0700 106122
1.721273.101

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

(2_FIDELITY_LOGOS)(registered trademark)

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

SEMIANNUAL REPORT
MAY 31, 2000

(2_FIDELITY_LOGOS)(registered trademark)

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 29 Statements of assets and
liabilities, operations, and
changes in net assets, as
well as financial highlights.

NOTES 38 Notes to the financial
statements.

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:

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

PERIODS ENDED PAST 6 MONTHS PAST 1 YEAR LIFE OF FUND

FIDELITY ADV ASSET ALLOCATION 4.95% 10.61% 14.92%
- INST CL

Fidelity Adv Asset Allocation 2.68% 8.35% 13.47%
Composite

S&P 500(registered trademark) 2.90% 10.48% 18.00%

LB Aggregate Bond 1.38% 2.11% 1.58%

LB 3 Month T-Bill 2.93% 5.52% 7.54%

Flexible Portfolio Funds 4.51% 8.43% n/a
Average

CUMULATIVE TOTAL RETURNS show Institutional Class' performance in
percentage terms over a set period - in this case, six months, one
year or 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 . To measure how Institutional
Class performance stacked up against its peers, you can compare it to
the flexible portfolio funds average, which reflects the performance
of mutual funds with similar objectives tracked by Lipper Inc. The
past six months average represents a peer group of 249 mutual funds.
These benchmarks include reinvested dividends and capital gains, if
any, and exclude the effect of sales charges.

AVERAGE ANNUAL TOTAL RETURNS

PERIODS ENDED PAST 1 YEAR LIFE OF FUND

FIDELITY ADV ASSET ALLOCATION 10.61% 10.25%
- INST CL

Fidelity Adv Asset Allocation 8.35% n/a
Composite

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.

$10,000 OVER LIFE OF FUND
FA Asset Allocation CL I 70 S&P/25 LBAgg/5 LB 3Mo
S&P 500 LB Aggregate Bond
00729 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 10550.00 10349.38
10451.19 10126.02
1999/02/28 10210.00 10080.60
10126.36 9949.22
1999/03/31 10510.00 10379.06
10531.52 10004.42
1999/04/30 10640.00 10670.53
10939.40 10036.13
1999/05/31 10390.00 10472.78
10681.13 9947.81
1999/06/30 10720.00 10873.32
11273.93 9916.04
1999/07/31 10490.00 10626.56
10921.96 9874.40
1999/08/31 10460.00 10590.53
10867.89 9869.38
1999/09/30 10270.00 10420.44
10570.00 9983.91
1999/10/31 10780.00 10893.80
11238.87 10020.74
1999/11/30 10950.00 11050.85
11467.36 10020.05
1999/12/31 11764.28 11495.66
12142.79 9971.73
2000/01/31 11149.35 11084.43
11532.73 9939.11
2000/02/29 11532.42 10973.53
11314.42 10059.29
2000/03/31 12127.19 11763.73
12421.31 10191.73
2000/04/30 11814.69 11510.68
12047.55 10162.65
2000/05/31 11492.10 11347.29
11800.34 10157.98
IMATRL PRASUN SHR__CHT 20000531 20000619 161357 R00000000000021

$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 May 31, 2000, the value of the investment would have grown to
$11,492 - a 14.92% 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 $11,800 - an 18.00% increase. If $10,000 was invested in
the Lehman Brothers Aggregate Bond Index, it would have grown to
$10,158 - a 1.58% 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, the Lehman Brothers
Aggregate Bond Index and the Lehman Brothers 3-Month T-Bill Index
according to the fund's neutral mix.* With dividends and capital
gains, if any, reinvested, the same $10,000 investment would have
grown to $11,347 - a 13.47% increase.

(checkmark)UNDERSTANDING
PERFORMANCE

* 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. For the six months that ended May 31, 2000, the fund's
Institutional Class shares returned 4.95%. For the same period, the
Fidelity Advisor Asset Allocation Composite Index returned 2.68%,
while the flexible portfolio funds average measured by Lipper Inc.
returned 4.51%. For the 12-month period that ended May 31, 2000, the
fund's Institutional Class shares returned 10.61%. In comparison, the
composite index and Lipper average returned 8.35% and 8.43%,
respectively.