FIDELITY ADVISOR SERIES 8, N-30D, 1995-08-28

FIDELITY ADVISOR SERIES 8
N-30D, 1995-08-28

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(2_FIDELITY_LOGOS)FIDELITY ADVISOR

STRATEGIC OPPORTUNITIES
FUND - INITIAL CLASS
SEMIANNUAL REPORT
JUNE 30, 1995
CONTENTS

PRESIDENT'S MESSAGE 3 Ned Johnson on stock market
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 19 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.

NOTES 25 Notes to the financial statements.

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, THE
FEDERAL RESERVE BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO
INVESTMENT RISK, INCLUDING THE POSSIBLE LOSS OF PRINCIPAL.
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

DEAR SHAREHOLDER:
Although there have been positive market indications so far in 1995, no one

can predict what lies ahead for investors. Last year, stocks posted
below-average returns and bonds had one of the worst years in history. This
downturn followed a period in which the investing environment was generally
very positive.
These market ups and downs are a normal part of investing, and there are
some basic principles that are helpful for investors to remember in
different types of markets.
If you can leave your money invested over the long term, you can avoid the
results of the volatility that generally accompanies the stock market in
the short term, as we witnessed last year. You also can help to manage some
of the risks of investing through diversification. A stock fund is already
diversified because it invests in many issues. You can diversify even
further by placing some of your money in several different types of stock
funds or in other investment categories, such 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, there is no assurance that a money market fund will
achieve its goal, and it is important to remember that money market funds
are not insured or guaranteed by any agency of the U.S. government.
Finally, no matter what your investment horizon or portfolio diversity, it
makes good sense to follow a regular investment plan - investing a certain
amount of money at the same time each month or quarter - and to review your
portfolio periodically. A periodic investment plan will not, of course,
assure a profit or protect against a loss.
Remember to contact your investment professional if you need help with your
investments.
Best regards,
Edward C. Johnson 3d
ADVISOR STRATEGIC OPPORTUNITIES FUND - INITIAL CLASS
PERFORMANCE: THE BOTTOM LINE

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
PERIODS ENDED JUNE 30, 1995 PAST 6 PAST 1 PAST 5 PAST 10
MONTHS YEAR YEARS YEARS

Advisor Strategic Opportunities - Initial Class 19.46% 17.95% 88.47% 307.69%

Advisor Strategic Opportunities - Initial Class
(incl. 4.75% sales charge) 13.78% 12.35% 79.52% 288.32%

S&P 500(registered trademark) 20.21% 26.07% 76.98% 293.40%

Average Capital Appreciation Fund 16.59% 22.17% 75.00% 236.02%

</TABLE>

CUMULATIVE TOTAL RETURNS show Initial Class' performance in percentage
terms over a set period - in this case, six months, one year, five years,
or 10 years. For example, if you 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 Initial Class' returns to those of the Standard & Poor's
Composite Index of 500 Stocks - a common proxy for the U.S. stock market.
To measure how Initial Class' performance stacked up against its peers, you
can compare it to the average capital appreciation fund, which reflects the
performance of 160 capital appreciation funds with similar objectives
tracked by Lipper Analytical Services over the past six months. These
benchmarks include reinvested dividends and capital gains, if any, and
exclude the effects of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JUNE 30, 1995 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS

Advisor Strategic Opportunities - Initial Class 17.95% 13.51% 15.09%

Advisor Strategic Opportunities - Initial Class
(incl. 4.75% sales charge) 12.35% 12.41% 14.53%

S&P 500 26.07% 12.09% 14.68%

Average Capital Appreciation Fund 22.17% 11.40% 12.15%

AVERAGE ANNUAL TOTAL RETURNS take the Initial Class shares' actual (or
cumulative) return and show you what would have happened if Initial Class
shares had performed at a constant rate each year.
$10,000 OVER 10 YEARS
Fidelity Advisor SpStandard & Poor's
06/30/85 9525.00 10000.00
07/31/85 9695.62 9985.00
08/31/85 9806.89 9900.13
09/30/85 9421.14 9590.25
10/31/85 9947.84 10033.32
11/30/85 10593.13 10721.61
12/31/85 11112.08 11240.54
01/31/86 11606.32 11303.48
02/28/86 12586.55 12148.98
03/31/86 13492.65 12826.90
04/30/86 13262.01 12681.95
05/31/86 13525.60 13356.63
06/30/86 14250.48 13582.36
07/31/86 13797.43 12823.10
08/31/86 14728.24 13774.58
09/30/86 13764.48 12635.42
10/31/86 14299.90 13364.49
11/30/86 14521.52 13689.24
12/31/86 14214.60 13340.17
01/31/87 15380.88 15137.09
02/28/87 15538.72 15735.00
03/31/87 15994.71 16189.74
04/30/87 15521.19 16045.65
05/31/87 15670.26 16185.25
06/30/87 16161.33 17002.61
07/31/87 16810.23 17864.64
08/31/87 17143.46 18530.99
09/30/87 16713.77 18125.16
10/31/87 13644.61 14221.00
11/30/87 13022.01 13049.19
12/31/87 13314.28 14042.23
01/31/88 14357.33 14633.41
02/29/88 14827.73 15315.33
03/31/88 14592.53 14842.09
04/30/88 14684.56 15006.83
05/31/88 14940.21 15137.39
06/30/88 15962.82 15832.20
07/31/88 15870.78 15772.04
08/31/88 15379.93 15235.79
09/30/88 15881.01 15884.83
10/31/88 16157.11 16326.43
11/30/88 16259.37 16092.96
12/31/88 16276.49 16374.59
01/31/89 17198.40 17573.21
02/28/89 17124.22 17135.64
03/31/89 17484.51 17534.90
04/30/89 18152.10 18444.96
05/31/89 18989.23 19191.98
06/30/89 19137.59 19082.58
07/31/89 20451.57 20805.74
08/31/89 20716.49 21213.53
09/30/89 20716.49 21126.56
10/31/89 20377.40 20636.42
11/30/89 20928.43 21057.41
12/31/89 21582.27 21562.78
01/31/90 20155.07 20115.92
02/28/90 20264.02 20375.42
03/31/90 20264.02 20915.36
04/30/90 19436.03 20392.48
05/31/90 20067.92 22380.75
06/30/90 20264.02 22228.56
07/31/90 20318.49 22157.43
08/31/90 18891.30 20154.40
09/30/90 18749.67 19172.88
10/31/90 18738.77 19090.43
11/30/90 19566.76 20323.68
12/31/90 20034.77 20890.71
01/31/91 20682.15 21801.54
02/28/91 21920.13 23360.35
03/31/91 22612.94 23925.67
04/30/91 22919.60 23983.09
05/31/91 23737.34 25019.16
06/30/91 22987.74 23873.28
07/31/91 23680.55 24985.78
08/31/91 24191.64 25577.94
09/30/91 24282.50 25150.79
10/31/91 23794.13 25487.81
11/30/91 23214.89 24460.65
12/31/91 24658.65 27258.95
01/31/92 24698.65 26751.94
02/29/92 25178.76 27099.71
03/31/92 24538.62 26571.27
04/30/92 25005.39 27352.46
05/31/92 25818.90 27486.49
06/30/92 25818.90 27076.94
07/31/92 26619.07 28184.39
08/31/92 26152.30 27606.61
09/30/92 26045.61 27932.36
10/31/92 26258.99 28030.13
11/30/92 27379.23 28985.95
12/31/92 27832.83 29342.48
01/31/93 28358.81 29588.96
02/28/93 29162.38 29991.37
03/31/93 30068.23 30624.19
04/30/93 29469.20 29883.08
05/31/93 30155.89 30683.95
06/30/93 30404.27 30772.93
07/31/93 31047.13 30649.84
08/31/93 32990.31 31811.47
09/30/93 32902.65 31566.52
10/31/93 33939.99 32219.95
11/30/93 32508.17 31913.86
12/31/93 33520.80 32300.02
01/31/94 33810.88 33398.22
02/28/94 32602.20 32493.12
03/31/94 31345.17 31076.42
04/30/94 31603.02 31474.20
05/31/94 31667.49 31990.38
06/30/94 31667.49 31206.62
07/31/94 32424.93 32230.19
08/31/94 32618.32 33551.63
09/30/94 32167.08 32729.61
10/31/94 31828.65 33466.03
11/30/94 30845.58 32247.20
12/31/94 31117.45 32725.42
01/31/95 32498.60 33573.99
02/28/95 33330.62 34882.37
03/31/95 33646.79 35911.75
04/30/95 34378.96 36969.35
05/31/95 35277.54 38447.02
06/30/95 37124.62 39340.14

$10,000 OVER 10 YEARS: Let's say you invested $10,000 in Fidelity Advisor
Strategic Opportunities Fund - Initial Class on June 30, 1985, and paid the
maximum 4.75% sales charge. As the chart shows, by June 30, 1995, the value
of your investment would have grown to $38,832 - a 288.32% increase on your
initial investment. For comparison, look at how the S&P 500 did over the
same period. With dividends reinvested, the same $10,000 investment would
have grown to $39,340 - a 293.40% increase.
UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. The stock market,
for example, has a history of
growth in the long run and
volatility in the short run. In
turn, the share price and
return of a fund that invests in
stocks will vary. That means if
you sell your shares during a
market downturn, you might
lose money. But if you can
ride out the market's ups and
downs, you may have a gain.
(checkmark)
FUND TALK: THE MANAGER'S OVERVIEW

An interview with Daniel R. Frank, Portfolio Manager of Fidelity
Advisor Strategic Opportunities Fund
Q. DAN, HOW HAS THE FUND PERFORMED DURING THE PAST SIX MONTHS?
A. For the six months ended June 30, 1995, the Initial Class shares had a
total return of 19.46%, beating the average capital appreciation fund,
which returned 16.59% for the same time period, according to Lipper
Analytical Services. For the 12 months ended June 30, 1995, the Initial
Class shares returned 17.95% versus the average capital appreciation fund,
which returned 22.17%.
Q. WHAT FACTORS CONTRIBUTED TO THE FUND'S PERFORMANCE?
A. For the fund, 1995 has been almost a total reverse image of 1994. In
1994, interest rates rose, bonds and financial stocks went down, the
economy was booming, consumers were spending and borrowing , and commodity
prices were rising. In 1995, things have changed dramatically. As large
companies continue to lay off employees in a continuing effort to cut
costs, consumers have turned more cautious with their spending - resulting
in slumping retail sales. The Federal Reserve's interest rate increases in
1994 and early 1995 seem to have finally taken effect, as the economy has
slowed significantly from its 1994 growth rates. Inventories are picking
up, commodity prices have leveled off, and the European, Japanese, Canadian
and Mexican economies are in severe contractions. Under these conditions,
inflation does not appear to be a major threat. As a result, U.S. interest
rates have declined dramatically. In this environment, the fund's large
position in Treasury Bonds and financial stocks has performed well. In
addition, the fund's large position in Regional Bell Operating Companies
has performed well, as these companies continue to exhibit strong
fundamentals.
Q. THE FUND'S HOLDINGS IN FINANCIAL STOCKS HAS INCREASED FROM 9.5% OF THE
FUND SIX MONTHS AGO TO ABOUT 24% AS OF JUNE 30, 1995. WHAT'S YOUR THINKING?
A. I reduced the fund's position in banks and savings and loans throughout
the latter part of 1994, as the stock prices of these companies at mid-year
seemed to be over-valued. Later in the year, many of these "interest rate
sensitive" stocks were severely penalized by the market due to rising
interest rates. This was further exacerbated by year-end tax-loss selling.
However, beginning in early 1995, I began rebuilding the industry
weightings as the prices became more reasonable. Within the sector, I have
consistently focused on the small- to medium-sized banks and savings and
loans. These institutions have high credit standards, and tend to have
strong franchises and balance sheets. In effect, they make ideal
acquisition targets. Indeed, several of the fund's holdings in this area
have been taken over recently.
Q. ALMOST HALF OF THE FUND'S TOP 10 STOCKS CONTINUE TO BE THE REGIONAL BELL
OPERATING COMPANIES (RBOCS). HOW HAVE THEY PERFORMED DURING THE PAST SIX
MONTHS?
A. The RBOCs represent about 25% of the fund's assets. While 1994 was a bad
year for these companies in terms of stock market performance, the exact
opposite has been true for the first six months of 1995. The RBOCs continue
to be a major long-term theme for the fund. The RBOCs are no longer the
staid utility companies they were in the past. New technologies, products
and services have turned the RBOCs from utilities into growth companies.
New phone services such as cellular, PCS, voice mail, voice messaging and
paging have given the RBOCs attractive growth opportunities. But they
haven't stopped there. A favorable regulatory environment has led the RBOCs
to pursue the "information superhighway" with new business in video and
cable television. Several of these companies have begun strategic alliances
with entertainment companies to produce original entertainment programming.
In addition, several RBOCs have made very profitable overseas investments
in telephone services, cellular, and cable. All of these positive
developments have not gone unnoticed by the market.
Q. HAVE ANY INVESTMENT TRENDS EMERGED IN THE PAST SIX MONTHS?
A. The biggest trend - which I don't think is emerging, but rather well
established - is the continued consolidation in the banking and savings and
loan industries. This trend is well established but now is involving larger
institutions, hence, more publicity in the national press. Recent examples
include Fleet/ Shawmut, First Union/First Fidelity and PNC/Midlantic.
Another trend is the continuing decline of interest rates, as inflation
remains subdued and aging baby boomers save and invest more for their
retirement. Again, the banking consolidation and interest rate declines are
not new trends, just continuations of long established trends that have
been key investment themes for me.
Q. WHAT INVESTMENTS DIDN'T TURN OUT AS WELL AS YOU WOULD HAVE LIKED?
A. I'm happy with the way my bonds have performed, but I was quite honestly
surprised at the speed with which stock prices have advanced even more. My
large investment in Viacom, which I believe has tremendous long-term value
as the best pure play on entertainment software (television, movies, music,
and books), was held back by arbitrage-related selling. The arbitrageurs
sold the stock as part of complex trading strategies involving various
rights that were issued in conjunction with Viacom's mergers with Paramount
and Blockbuster. As Viacom retires these rights, I expect the volatility to
subside and the market to evaluate this company more on its fundamentals.
Q. DAN, WHAT'S YOUR OUTLOOK FOR THE NEXT SIX MONTHS?
A. I try not to predict the future, as my crystal ball is no better than
anyone else's. I will continue to invest in the securities of individual
companies that offer value and opportunity. For the time being, my plate
appears to be quite full.

FUND FACTS
GOAL: seeks capital
appreciation by investing
primarily in securities of
companies believed by
Fidelity to involve a "Special
Situation"
START DATE: December 31,
1983
SIZE: as of June 30, 1995,
more than $557 million
MANAGER: Daniel R. Frank,
since inception, joined
Fidelity in 1979
(checkmark)
DAN FRANK ON THE FUND'S
PERFORMANCE:
"Making a positive
contribution to performance
was the fund's large position
in the finance sector. Many
regional banks and savings
and loans benefit from lower
interest rates, cost cutting and
share repurchasing.
"Regional Bell Operating
Companies (RBOCs)
strength has continued and
they performed well during
the period. These companies
are the long-term
beneficiaries of legislative
reform which allows them to
expand beyond the realm of
traditional telephone services
to high-growth areas such as
cellular communications,
cable television and long
distance, all while cutting
costs."
INVESTMENT CHANGES

TOP TEN STOCKS AS OF JUNE 30, 1995
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE STOCKS
6 MONTHS AGO

I-Stat Corp. 7.2 5.0

Viacom, Inc. (various issues) 5.3 5.2

BellSouth Corp. 5.1 5.2

Ameritech Corp. 5.0 4.9

Bell Atlantic Corp. 4.9 4.6

SBC Communications, Inc. 4.7 4.2

NYNEX Corp. 4.3 4.4

Tootsie Roll Industries, Inc. 1.5 1.0

Sepracor, Inc. 1.4 0.1

Regis Corp. 1.4 1.4

TOP FIVE INDUSTRIES AS OF JUNE 30, 1995
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE INDUSTRIES
6 MONTHS AGO

Utilities 26.0 25.9

Finance 24.4 9.5

Health 10.6 6.2

Media & Leisure 6.0 5.2

Nondurables 4.5 6.3

ASSET ALLOCATION
AS OF JUNE 30, 1995* AS OF DECEMBER 31, 1994**
4
Row: 1, Col: 1, Value: 2.3
Row: 1, Col: 2, Value: 22.2
Row: 1, Col: 3, Value: 35.5
Row: 1, Col: 4, Value: 40.0
Row: 1, Col: 1, Value: 2.0
Row: 1, Col: 2, Value: 12.0
Row: 1, Col: 3, Value: 20.0
Row: 1, Col: 4, Value: 26.0
Row: 1, Col: 5, Value: 40.0
Stocks 77.3%
Bonds 22.2%
Short-term
Investments 0.5%
FOREIGN
INVESTMENTS 2.4%
Stocks 66.1%
Bonds 20.0%
Short-term
Investments 13.4%
Other 0.5%
FOREIGN
INVESTMENTS 2.4%
*
**
INVESTMENTS JUNE 30, 1995 (UNAUDITED)

Showing Percentage of Total Value of Investment in Securities

COMMON STOCKS - 77.3%
SHARES VALUE (NOTE 1)
CONSTRUCTION & REAL ESTATE - 0.0%
CONSTRUCTION - 0.0%
Emcor Group, Inc. (a):
Series X (warrants) 148,822 $ 55,808
Series Y (warrants) 148,822 37,206
93,014
ENERGY - 1.3%
COAL - 0.6%
MAPCO, Inc. 60,000 3,480,000
OIL & GAS - 0.7%
Amerada Hess Corp. 55,000 2,688,125
Arakis Energy Corp. (a) 70,000 1,166,667
3,854,792
TOTAL ENERGY 7,334,792
FINANCE - 24.4%
BANKS - 15.7%
AmSouth Bancorporation 60,000 1,957,500
Banc One Corp. 82,000 2,644,500
Bancorp Hawaii, Inc. 70,000 2,100,000
BancFirst Corp. 10,000 152,500
Bank Atlantic Bancorp, Inc. 10,000 175,000
Bankers Trust New York Corp. 65,000 4,030,000
Boatmen's Bancshares, Inc. 29,000 1,022,250
CCB Financial Corp. 19,000 793,250
Carolina First Corp. 50,000 750,000
Central Fidelity Banks Inc. 62,000 1,891,000
Citizens Bancorp of Maryland 35,000 1,023,750
Comerica, Inc. 50,000 1,606,250
Commerce Bancshares, Inc. 32,000 1,008,000
Community Bank System, Inc. 27,000 688,500
Community First Bankshares, Inc. 30,000 510,000
Compass Bancshares, Inc. 63,000 1,819,125
Crestar Financial Corp. 25,000 1,225,000
F & M Bancorporation, Inc. 22,000 451,000
F & M National Corp. 50,000 825,000
FNB Rochester Corp. (a) 100,000 762,500
First Citizens Bancshares, Inc. 30,000 1,485,000
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
FINANCE - CONTINUED
BANKS - CONTINUED
First Commerce Corp. 50,447 $ 1,488,187
First Hawaiian, Inc. 33,000 882,750
First Security Corp. 62,000 1,736,000
First Tennessee National Corp. 58,000 2,689,750
First Virginia Banks, Inc. 40,000 1,500,000
Firstar Corp. 60,000 2,017,500
Firstmerit Corp. 27,000 708,750
Fleet Financial Group, Inc. 58,400 2,168,100
Fort Wayne National Corp. 35,000 971,250
Hibernia Corp. Class A 60,000 532,500
Huntington Bancshares, Inc. 25,000 518,750
Integra Financial Corp. 36,000 1,750,500
Jefferson Bankshares, Inc. (a) 60,000 1,260,000
Jefferson Savings Bancorp, Inc. 15,000 270,000
Keycorp 68,000 2,133,500
Keystone Financial, Inc. 22,000 620,125
Mellon Bank Corp. 97,000 4,037,625
Meridian Bancorp, Inc. 20,000 687,500
Morgan (J.P.) & Co., Inc. 35,000 2,454,375
Northeast Indiana Bancorp Inc. 35,000 393,750
Norwalk Savings Society (a) 40,000 650,000
ONBANCorp, Inc. 52,000 1,475,500
One Valley Bancorp West Virginia, Inc. (a) 15,000 463,125
PNC Financial Corp. 100,000 2,637,500
Pikeville National Corp. 15,000 311,250
Regions Financial Corp. 13,000 482,625
Republic New York Corp. 80,000 4,480,000
Riggs National Corp. (a) 300,000 2,962,500
River Forest Bancorp 38,000 1,539,000
Shawmut National Corp. 94,375 3,008,202
Southern National Corp. 48,000 1,152,000
SouthTrust Corp. 20,000 462,500
TF Financial Corp. 30,000 412,500
Trans Financial Bancorp, Inc. 45,000 686,250
Trustco Bank Corp. New York 20,000 435,000
UAB Financial Corp. 42,000 1,533,000
United Bankshares, Inc. 40,000 1,050,000
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
FINANCE - CONTINUED
BANKS - CONTINUED
U.S. Bancorp 75,000 $ 1,804,688
USBANCORP, Inc. 10,000 235,000
Victoria Bankshares, Inc. 54,000 1,390,500
Wachovia Corp. 52,000 1,859,000
West One Bancorp 15,000 500,625
Wilmington Trust Corp. 82,000 2,316,500
87,588,302
CLOSED END INVESTMENT COMPANY - 0.1%
Mexico Fund, Inc. (The) 30,000 495,000
CREDIT & OTHER FINANCE - 0.9%
First of America Bank Corp. 73,000 2,710,125
Harbor Federal Bancorp, Inc. 55,000 742,500
Life Bancorp, Inc. 95,000 1,330,000
Old Kent Financial Corp. 2,000 68,000
Rochester Community Savings Bank 20,000 400,000
5,250,625
INSURANCE - 0.4%
Crop Growers Corp. (a) 140,000 2,275,000
SAVINGS & LOANS - 7.2%
American Federal Bank FSB 105,000 1,443,750
American Savings of Florida FSB (a) 206,000 4,300,250
Avondale Financial Corp. (a) 65,000 836,875
Bedford Bancshares, Inc. 52,000 845,000
Bell Bancorp, Inc. 32,000 904,000
Cameron Financial Corp. (a) 50,000 587,500
Coastal Bancorp, Inc. 110,000 1,787,500
Commercial Federal Corp. (a) 21,500 585,875
Commonwealth Savings Bank 50,000 787,500
Community Savings FA 105,000 1,561,875
FFVA Financial Corp. 58,000 1,609,500
Fidelity Financial Bankshares Corp. 40,000 535,000
First Bell Bancorp, Inc. 30,000 363,750
First Federal Capital Corp. 30,000 480,000
First Financial Corp. of Wisconsin 25,000 437,500
First Financial Holdings, Inc. 105,000 1,890,000
First Northern Savings & Loan Association 25,000 350,000
First Palm Beach Bancorp, Inc. 60,000 1,342,500
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
FINANCE - CONTINUED
SAVINGS & LOANS - CONTINUED
First Southeast Financial Corp. 95,000 $ 1,805,000
Fort Thomas Financial 30,000 360,000
Great Financial Corp. 45,000 855,000
HMN Financial, Inc. 150,000 2,043,750
Harbor Federal Savings Back 23,000 448,500
Harris Savings Bank 31,000 488,250
Home Federal Bancorp 45,000 1,057,500
Leader Financial Corp. 52,000 1,475,500
Leeds Federal Savings Bank 25,000 318,750
Maryland Federal Bancorp, Inc. 34,000 1,096,500
NS Bancorp, Inc. 33,000 1,023,000
Northwest Savings Bank 27,000 519,750
Palfed, Inc. (a) 63,000 700,875
Pennfed Financial Services, Inc. (a) 107,000 1,350,875
Pennfirst Bancorp, Inc. 21,500 287,563
Pocahontas Federal Saving And Loan Association 50,000 556,250
Queens County Bancorp, Inc. 40,000 1,270,000
Reliance BanCorp, Inc. 30,000 427,500
Roosevelt Financial Group, Inc. 32,000 534,000
St. Paul Bancorp, Inc. 25,000 559,375
Sho-Me Financial Corp. (a) 40,000 610,000
Troy Hill Bancorp, Inc. 35,000 402,500
Virginia First Financial Corp. 47,000 822,500
York Financial Corp. 37,500 637,500
40,298,813
SECURITIES INDUSTRY - 0.1%
John Nuveen Co. Class A 12,000 288,000
TOTAL FINANCE 136,195,740
HEALTH - 10.6%
DRUGS & PHARMACEUTICALS - 2.2%
American Home Products Corp. 20,000 1,547,500
Sepracor, Inc. (a) 590,000 7,965,000
Warner-Lambert Co. 30,000 2,591,250
12,103,750
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
HEALTH - CONTINUED
MEDICAL EQUIPMENT & SUPPLIES - 7.7%
Baxter International, Inc. 75,000 $ 2,728,125
Corvita Corp. 65,000 341,250
Hemasure, Inc. (a) 30,000 247,500
I-Stat Corp. (a)(f) 1,093,100 39,898,150
43,215,025
MEDICAL FACILITIES MANAGEMENT - 0.7%
Spectral Diagnostics, Inc. (a) 200,000 4,025,500
TOTAL HEALTH 59,344,275
INDUSTRIAL MACHINERY & EQUIPMENT - 0.1%
Biosepra, Inc. (a) 200,000 800,000
MEDIA & LEISURE - 6.0%
BROADCASTING - 5.6%
Chris-Craft Industries, Inc. 27,000 945,000
Gaylord Entertainment Co. Class A 40,000 1,010,000
Viacom, Inc.:
Class B (Class C warrants) (a) 1,600,000 5,900,000
Class B (Class E warrants) (a) 300,000 1,725,000
Class B (non-vtg.) 470,000 21,796,250
31,376,250
PUBLISHING - 0.4%
Tribune Co. 32,000 1,964,000
TOTAL MEDIA & LEISURE 33,340,250
NONDURABLES - 4.5%
BEVERAGES - 0.2%
Coca-Cola Femsa SA de CV sponsored ADR 20,000 425,000
Panamerican Beverages, Inc. Class A 12,800 384,000
809,000
FOODS - 2.6%
Hershey Foods Corp. 47,000 2,596,750
Nabisco Holdings Class A 115,000 3,105,000
Tootsie Roll Industries, Inc. 117,000 8,102,250
Wrigley (Wm.) Jr. Co. 20,000 927,500
14,731,500
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
NONDURABLES - CONTINUED
HOUSEHOLD PRODUCTS - 1.1%
First Brands Corp. 142,000 $ 6,088,250
TOBACCO - 0.6%
American Brands, Inc. 85,000 3,378,750
TOTAL NONDURABLES 25,007,500
SERVICES - 2.8%
Kinder-Care Learning Centers, Inc. 510,000 6,885,000
Landauer, Inc. 50,000 943,750
Regis Corp. (a) 400,000 7,700,000
15,528,750
TECHNOLOGY - 0.6%
COMMUNICATIONS EQUIPMENT - 0.2%
Numerex Corp. 87,500 984,375
PHOTOGRAPHIC EQUIPMENT - 0.4%
Showscan Corp. (a)(f) 350,000 2,012,500
2,996,875
TRANSPORTATION - 1.0%
RAILROADS - 1.0%
Kansas City Southern Industries, Inc. 45,000 1,676,250
Union Pacific Corp. 67,000 3,710,125
5,386,375
UTILITIES - 26.0%
CELLULAR - 0.5%
Grupo Iusacell SA Class L ADR (a) 95,000 1,140,000
Millicom International Cellular SA 55,000 1,629,375
2,769,375
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
UTILITIES - CONTINUED
TELEPHONE SERVICES - 25.5%
Ameritech Corp. 630,000 $ 27,720,000
Bell Atlantic Corp. 490,000 27,440,000
BellSouth Corp. 450,000 28,575,000
NYNEX Corp. 590,000 23,747,500
Pacific Telesis Group 125,000 3,343,750
SBC Communications, Inc. 550,000 26,193,750
Southern New England Telecommunications Corp. 145,000 5,111,250
142,131,250
TOTAL UTILITIES 144,900,625
TOTAL COMMON STOCKS
(Cost $372,127,480) 430,928,196
CORPORATE BONDS - 0.6%
MOODY'S RATINGS PRINCIPAL
AMOUNT (B)
CONVERTIBLE BONDS - 0.3%
CONSTRUCTION & REAL ESTATE - 0.3%
REAL ESTATE INVESTMENT TRUSTS - 0.3%
Rockefeller Center Properties, Inc. deb.
8%, 12/31/00 (b) - $ 1,500,000 1,545,000
NONCONVERTIBLE BONDS - 0.3%
SERVICES - 0.3%
EDUCATIONAL SERVICES - 0.3%
Kindercare Learning Centers, Inc.
10 3/8%, 6/1/01 Ba3 2,000,000 2,050,000
TOTAL CORPORATE BONDS
(Cost $3,486,875) 3,595,000
U.S. TREASURY OBLIGATIONS - 20.9%
MOODY'S RATINGS PRINCIPAL VALUE
AMOUNT (B) (NOTE 1)
9 1/8%, 5/15/18 Aaa $ 20,000,000 $ 25,550,000
Stripped Interest Payment 0%:
2/15/00 Aaa 25,000,000 19,094,750
2/15/12 Aaa 220,000,000 71,887,200
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $102,436,694) 116,531,950
FOREIGN GOVERNMENT OBLIGATIONS (E) - 0.7%
French Government (d):
OAT Strip, 4/25/23 Aaa FRF 100,000 2,067,270
Principal Strip, 4/25/23 Aaa FRF 90,000 1,879,695
TOTAL FOREIGN GOVERNMENT OBLIGATIONS
(Cost $4,743,061) 3,946,965
REPURCHASE AGREEMENTS - 0.5%
MATURITY
AMOUNT
Investments in repurchase agreements
(U.S. Treasury obligations), in a
joint trading account at 6.15%,
dated 6/30/95 due 7/3/95 $ 2,738,403 2,737,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $485,531,110) $ 557,739,111
CURRENCY ABBREVIATIONS
FRF - French franc
LEGEND
(1.) Non-income producing
(2.) Non-income producing - issuer filed for protection under the Federal
Bankruptcy Code or is in default of interest payment.
(3.) Principal amount is stated in United States dollars unless otherwise
noted.
(4.) Principal amount in thousands.
(5.) Some foreign government obligations have not been individually rated
by S&P or Moody's. The ratings listed are assigned to securities by FMR,
the fund's investment adviser, based principally on S&P and Moody's ratings
of the sovereign credit of the issuing government.
(6.) Affiliated company (see Note 8 of Notes to Financial Statements).
OTHER INFORMATION
The composition of long-term debt holdings
as a percentage of total value of investment in securities, is as follows
(ratings are unaudited):
MOODY'S RATINGS S&P RATINGS
Aaa, Aa, A 21.6% AAA, AA, A 21.6%
Baa 0.0% BBB 0.0%
Ba 0.3% BB 0.0%
B 0.0% B 0.3%
Caa 0.0% CCC 0.0%
Ca, C 0.0% CC, C 0.0%
D 0.0%
For some foreign government obligations, FMR has assigned the ratings of
the sovereign credit of the issuing government.The percentage not rated by
either S&P or Moody's amounted to 0.3%.
INCOME TAX INFORMATION
At June 30, 1995, the aggregate cost of investment securities for income
tax purposes was $485,924,573. Net unrealized appre-
ciation aggregated $71,814,538, of which $78,311,546 related to appreciated
investment securities and $6,497,008 related to depreciated investment
securities.
At December31, 1994, the fund had a capital loss carryforward of
approximately $1,141,000 all of which will expire on Dcember 31, 2002.
The fund has elected to defer to its fiscal year ending December 31, 1995
$4,261,000 of losses recognized during the period November 1, 1994 to
December 31, 1994.
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
JUNE 30, 1995 (UNAUDITED)

ASSETS

Investment in securities, at value (including repurchase $ 557,739,111
agreements of $2,737,000) (cost $485,531,110) -
See accompanying schedule

Cash 710

Receivable for investments sold 11,613,983

Receivable for fund shares sold 2,066,627

Dividends receivable 1,289,335

Interest receivable 244,841

Other receivables 74,010

TOTAL ASSETS 573,028,617

LIABILITIES

Payable for investments purchased $ 11,925,374

Payable for fund shares redeemed 738,600

Accrued management fee 265,289

Distribution fees payable 284,318

Other payables and accrued expenses 228,827

TOTAL LIABILITIES 13,442,408

NET ASSETS $ 559,586,209

Net Assets consist of: $ 484,589,383
Paid in capital

Undistributed net investment income 4,750,341

Accumulated undistributed net realized gain (loss) on (1,950,921)
investments and foreign currency transactions

Net unrealized appreciation (depreciation) on 72,197,406
investments and assets and liabilities in foreign
currencies

NET ASSETS $ 559,586,209

CALCULATION OF MAXIMUM OFFERING PRICE $22.31
CLASS A:
NET ASSET VALUE, and redemption price per share
($495,273,895 (divided by) 22,198,273 shares)

Maximum offering price per share (100/95.25 of $22.31) $23.42

CLASS B: $22.09
NET ASSET VALUE, and offering price per share
($43,800,412 (divided by) 1,983,236 shares) A

INITIAL CLASS: $22.53
NET ASSET VALUE, and redemption price per share
($20,511,902 (divided by) 910,249 shares)

Maximum offering price per share (100/95.25 of $22.53) $23.65

</TABLE>

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

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED JUNE 30, 1995 (UNAUDITED)

INVESTMENT INCOME $ 4,945,578
Dividends

Interest 3,706,502

TOTAL INCOME 8,652,080

EXPENSES

Management fee $ 1,445,989
Basic fee

Performance adjustment 48,134

Transfer agent fees 538,332
Class A

Class B 42,911

Initial Class 22,147

Distribution fees 1,398,145
Class A

Class B 144,788

Accounting fees and expenses 143,207

Non-interested trustees' compensation 1,061

Custodian fees and expenses 25,065

Registration fees 28,639
Class A

Class B 15,764

Initial Class 14,338

Audit 23,692

Legal 6,279

Interest 948

Miscellaneous 20,775

Total expenses before reductions 3,920,214

Expense reductions (18,475) 3,901,739

NET INVESTMENT INCOME 4,750,341

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

Investment securities (including realized gain (loss) of 4,163,994
$5,188 on sales of investment in affiliated issuers)

Foreign currency transactions 53 4,164,047

Change in net unrealized appreciation (depreciation) on 76,193,244
investment securities

NET GAIN (LOSS) 80,357,291

NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ 85,107,632
FROM OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C> <C>
SIX MONTHS THREE MONTHS YEAR ENDED
ENDED JUNE 30, ENDED SEPTEMBER 30,
1995 DECEMBER 31, 1994
(UNAUDITED) 1994

INCREASE (DECREASE) IN NET ASSETS

Operations $ 4,750,341 $ 2,067,920 $ 6,903,469
Net investment income

Net realized gain (loss) 4,164,047 (5,789,778) 8,280,193

Change in net unrealized appreciation 76,193,245 (9,641,386) (23,325,658)
(depreciation)

NET INCREASE (DECREASE) IN NET ASSETS 85,107,633 (13,363,244) (8,141,996)
RESULTING FROM OPERATIONS

Distributions to shareholders - (6,826,359) (5,752,632)
From net investment income
Class A

Class B - (382,214) -

Initial Class - (464,141) (458,027)

From net realized gain - (5,071,018) (22,876,692)
Class A

Class B - (211,573) -

Initial Class - (241,353) (1,535,740)

TOTAL DISTRIBUTIONS - (13,196,658) (30,623,091)

Share transactions - net increase (decrease) 64,115,194 23,899,770 161,198,427

TOTAL INCREASE (DECREASE) IN NET ASSETS 149,222,827 (2,660,132) 122,433,340

NET ASSETS

Beginning of period 410,363,382 413,023,514 290,590,174

End of period (including undistributed $ 559,586,209 $ 410,363,382 $ 413,023,514
net investment income of $4,750,341,
$0, and $5,875,182 respectively)

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS - CLASS A SIX MONTHS THREE MONTHS YEARS ENDED SEPTEMBER 30,
ENDED JUNE 30, ENDED
1995 DECEMBER 31,

SELECTED PER-SHARE DATA (UNAUDITED) 1994 1994 1993 1992 D 1991 1990

</TABLE>

Net asset value, beginning of period $ 18.70 $ 19.96 $ 22.52 $ 19.53 $ 21.38 $ 17.21 $ 19.55

Income from Investment Operations

Net investment income .19 .10 F .39 F .33 .61 .66 .70

Net realized and unrealized gain (loss) 3.42 (.75) (.81) 4.44 .58 4.26 (2.49)

on investments

Total from investment operations 3.61 (.65) (.42) 4.77 1.19 4.92 (1.79)

Less Distributions

From net investment income - (.35) (.43) (.57) (.62) (.75) (.55)

From net realized gain - (.26) (1.71) (1.21) (2.42) - -

Total distributions - (.61) (2.14) (1.78) (3.04) (.75) (.55)

Net asset value, end of period $ 22.31 $ 18.70 $ 19.96 $ 22.52 $ 19.53 $ 21.38 $ 17.21

TOTAL RETURN B, C 19.30% (3.26)% (2.24) 26.33% 7.26% 29.51% (9.49)

% %

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 495,274 $ 375,691 $ 385,349 $ 269,833 $ 194,710 $ 199,604 $ 172,086

Ratio of expenses to average net assets 1.62% 1.73% A 1.84% 1.57% 1.46% 1.56% 1.59%

A E

Ratio of expenses to average net assets before 1.63% 1.84% A 1.85% 1.73% 1.46% 1.56% 1.59%

expense reductions A

Ratio of net investment income to average net 1.99% 2.03% A 1.89% 2.06% 3.22% 3.61% 3.70%

assets A

Portfolio turnover 139% 228% A 159% 183% 211% 223% 114%

</TABLE>

A ANNUALIZED
B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN (SEE NOTE 6 OF NOTES TO FINANCIAL
STATEMENTS).
D AS OF OCTOBER 1, 1991 THE FUND DISCONTINUED THE USE OF EQUALIZATION
ACCOUNTING.
E INCLUDES REIMBURSEMENT OF $.03 PER SHARE FROM FIDELITY MANAGEMENT &
RESEARCH COMPANY FOR ADJUSTMENTS TO PRIOR PERIOD'S FEES.
F NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.
FINANCIAL HIGHLIGHTS - CLASS B

<TABLE>
<CAPTION>
<S> <C> <C> <C>
SIX MONTHS THREE MONTHS YEAR ENDED
ENDED ENDED SEPTEMBER 30,
JUNE 30, 1994 DECEMBER 31,

(UNAUDITED) 1994 1994 D

SELECTED PER-SHARE DATA

Net asset value, beginning of period $ 18.57 $ 19.98 $ 19.65

Income from Investment Operations

Net investment income .11 .06 E .05 E

Net realized and unrealized gain (loss) 3.41 (.74) .28
on investments

Total from investment operations 3.52 (.68) .33

Less Distributions

From net investment income - (.47) -

From net realized gain - (.26) -

Total distributions - (.73) -

Net asset value, end of period $ 22.09 $ 18.57 $ 19.98

TOTAL RETURN B,C 18.96% (3.41)% 1.68%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 43,800 $ 17,090 $ 8,824

Ratio of expenses to average net assets 2.10% A 2.53% A 2.63% A

Ratio of expenses to average net assets 2.11% A 2.58% A 2.84% A
before expense reductions

Ratio of net investment income to 1.51% A 1.22% A 1.11% A
average net assets

Portfolio turnover 139% A 228% A 159%

</TABLE>

A ANNUALIZED
B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN (SEE NOTE 6 OF NOTES TO FINANCIAL
STATEMENTS).
D FOR THE PERIOD JUNE 30, 1994 (COMMENCEMENT OF SALES OF CLASS B SHARES) TO
SEPTEMBER 30, 1994.
E NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS - INITIAL CLASS SIX MONTHS THREE MONTHS YEARS ENDED SEPTEMBER 30,
ENDED JUNE 30, ENDED
1995 DECEMBER 31,

SELECTED PER-SHARE DATA (UNAUDITED) 1994 1994 1993 1992 D 1991 1990

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 18.86 $ 20.23 $ 22.72 $ 19.72 $ 21.55 $ 17.37 $ 19.77

Income from Investment Operations

Net investment income .26 .13 F .54 F .45 .73 .77 .80

Net realized and unrealized gain (loss) 3.41 (.74) (.81) 4.46 .58 4.26 (2.49)
on investments

Total from investment operations 3.67 (.61) (.27) 4.91 1.31 5.03 (1.69)

Less Distributions

From net investment income - (.50) (.51) (.70) (.72) (.85) (.71)

From net realized gain - (.26) (1.71) (1.21) (2.42) - -

Total distributions - (.76) (2.22) (1.91) (3.14) (.85) (.71)

Net asset value, end of period $ 22.53 $ 18.86 $ 20.23 $ 22.72 $ 19.72 $ 21.55 $ 17.37

TOTAL RETURN B, C 19.46% (3.02)% (1.51)% 26.98% 7.89% 30.01% (8.96)%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 20,512 $ 17,583 $ 18,850 $ 20,707 $ 17,933 $ 19,193 $ 15,988

Ratio of expenses to average net assets 1.09% A 1.11% A 1.14% .89% .87% 1.00% 1.03%
E

Ratio of expenses to average net assets before 1.10% A 1.14% A 1.15% 1.05% .87% 1.00% 1.03%
expense reductions

Ratio of net investment income to average net 2.52% A 2.65% A 2.60% 2.74% 3.78% 4.12% 4.21%
assets

Portfolio turnover 139% A 228% A 159% 183% 211% 223% 114%

</TABLE>

1. SIGNIFICANT ACCOUNTING
POLICIES.
Fidelity Advisor Strategic Opportunities(the fund) is a fund of Fidelity
Advisor Series VIII(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 B, and Initial Class shares, each of which
has equal rights as to assets and voting privileges. Each class has
exclusive voting rights with respect to its distribution plan. Investment
income, realized and unrealized capital gains and losses, and the common
expenses of the fund 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, registration, and certain other class-specific fees and expenses. On
March 16, 1995, creation of an Institutional Class of shares was approved
by the Board of Trustees. Offering of the new class commenced on July 3,
1995.
The following summarizes the significant accounting policies of the funds:
SECURITY VALUATION. Securities for which exchange quotations are readily
available are valued at the last sale price, or if no sale price, at the
closing bid price. Securities (including restricted securities) for which
exchange quotations are not readily available (and in certain cases debt
securities which trade on an exchange), are valued primarily using
dealer-supplied valuations or at their fair value as determined in good
faith under consistently applied procedures under the general supervision
of the Board of Trustees. Short-term securities maturing within sixty days
of their purchase date 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.
Net realized gains and losses on foreign currency transactions represent
net gains and losses from sales and maturities of forward currency
contracts, disposition of foreign currencies, currency gains and losses
realized between the trade and settlement dates on securities transactions,
and the difference between the amount of net investment income accrued and
the U.S. dollar amount actually received. 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.
1. SIGNIFICANT ACCOUNTING
POLICIES - CONTINUED
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 fund is informed of the
ex-dividend date. Interest income is accrued as earned. Investment income
is recorded net of foreign taxes withheld where recovery of such taxes is
uncertain.
DISTRIBUTIONS TO SHAREHOLDERS. Distributions are recorded on the
ex-dividend date. Income dividends are declared separately for each class,
while capital gain distributions are declared at the fund level and
allocated to each class on a pro rata basis based on the number of shares
held by each class on the ex-dividend date.
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 foreign
currency transactions, market discount, and losses deferred due to wash
sales.
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital and may
affect the per-share allocation between net investment income and realized
and unrealized gain (loss). Any taxable income or gain remaining at fiscal
year end is distributed in the following year.
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.
FORWARD FOREIGN CURRENCY
CONTRACTS. The fund may use foreign currency contracts to facilitate
transactions in foreign securities and to manage the fund's currency
exposure. Contracts to buy generally are used to acquire exposure to
foreign currencies, while contracts to sell are used to hedge the fund's
investments against currency fluctuations. Also, a contract to buy or sell
can offset a previous contract.
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 forward foreign currency contracts is determined using
forward currency exchange rates supplied by a quotation service. Purchases
and sales of forward foreign currency contracts having the same settlement
date and broker are offset and any realized gain (loss) is recognized on
the date of offset; otherwise, gain (loss) is recognized on settlement
date.
2. OPERATING POLICIES -
CONTINUED
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 that
mature in 60 days or less from the date of purchase, and are collateralized
by U.S. Treasury or Federal Agency obligations.
REPURCHASE AGREEMENTS. The fund, through its custodian, receives delivery
of the underlying securities, whose market value is required to be at least
102% of the resale price at the time of purchase. FMR, the fund's
investment adviser, is responsible for determining that the value of these
underlying securities remains at least equal to the resale price.
3. PURCHASES AND SALES
OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $433,327,371 and $320,767,182, respectively, of which U.S.
government and government agency obligations aggregated $31,217,400 and
$4,983,594, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, FMR receives a monthly
basic 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 .2700% to .5200% for the period. 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. The annual individual fund fee rate is .30%. The
basic fee is subject to a performance adjustment (up to a maximum of
(plus/minus) .20%) based on the investment performance of the lowest
performing class as compared to the appropriate index over a specified
period of time. The investment performance is measured separately for each
class. For the period, the management fee was equivalent to an annualized
rate of .62% of average net assets after the performance adjustment.
DISTRIBUTION AND SERVICE PLAN. In accordance with Rule 12b-1 of the 1940
Act, the Trustees have adopted separate distribution plans with respect to
the fund's Class A shares ("Class A Plan") and Class B shares ("Class B
Plan"), pursuant to which the fund pays Fidelity Distributors Corporation
(FDC), an affiliate of FMR, a distribution and service fee. This fee is
based on annual rates of .65%and 1.00% (of which .75% represents a
distribution fee and .25% represents a shareholder service fee) of the
average net assets of the Class A and Class B shares, respectively. For the
period,
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
DISTRIBUTION AND SERVICE PLAN - CONTINUED
the fund paid FDC $1,398,145 and $144,788 under the Class A Plan and Class
B Plan, respectively, of which $1,135,292 and $36,189 were paid to
securities dealers, banks and other financial institutions for the
distribution of Class A and Class B shares, and providing shareholder
support services.
In addition, FMR or FDC may use its resources to pay administrative and
promotional expenses related to the sale of the fund's shares. Subject to
the approval of the Board of Trustees, the Plans also authorize payments to
third parties that assist in the sale of the fund's shares or render
shareholder support services. No payments were made under the Plans during
the period.
SALES LOAD. FDC receives a front-end sales charge of up to 4.75% for
selling Class A and Initial Class of shares of the fund. For the period,
FDC received sales charges of $897,953 on sales of Class A and Initial
Class of shares of the fund, of which $640,420 was paid to securities
dealers, banks, and other financial institutions. FDC also receives the
proceeds of a contingent deferred sales charge levied on Class B share
redemptions occurring within five years of purchase. The charge is based
on declining rates which range from 4% to 1% 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. For
the period, FDC received contingent deferred sales charges of $10,688 on
Class B share redemptions from the fund. When Class B shares are sold, FDC
pays commissions from its own resources to dealers through which the sales
are made.
TRANSFER AGENT FEES. State Street Bank and Trust Company (SSB), Fidelity
Investments Institutional Operations Company (FIIOC), an affiliate of FMR
and Fidelity Service Co. (FSC), also an affiliate of FMR, (collectively
referred to as the Transfer Agents) are the transfer, dividend disbursing,
and shareholder servicing agents for the fund's Class A shares, Class B
shares, and Initial Class shares, respectively. Effective January 1, 1995,
the Board of Trustees approved a revised transfer agent contract pursuant
to which the Transfer Agents receive 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. Under the prior transfer agent
contract, the Transfer Agents received fees based on the type, size, number
of accounts and the number of transactions made by share holders. With
respect to the Class A shares, SSB has delegated certain transfer, dividend
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
TRANSFER AGENT FEES - CONTINUED
paying, and shareholder services to FIIOC for which FIIOC receives its
allocable share of all such fees. FIIOC and FSC pay for typesetting,
printing and mailing of all shareholder reports, except proxy statements.
ACCOUNTING FEES. FSC 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 $123,665 for the period.
5. BANK BORROWINGS.
The fund is permitted to have bank borrowings for temporary or emergency
purposes to fund shareholder redemptions. The fund has established
borrowing arrangements with certain banks. Under the most restrictive
arrangement, the fund must pledge to the bank securities having a market
value in excess of 220% of the total bank borrowings. The interest rate on
the borrowings is the bank's base rate, as revised from time to time. The
maximum loan and the average daily loan balances during the periods for
which loans were outstanding amounted to $1,781,000. The weighted average
interest rate was 6.4375%. Interest expense includes $948 paid under the
bank borrowing program.
6. 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
$18,475 under this arrangement.
7. SHARE TRANSACTIONS.
Share transactions for the three classes were as follows:
SHARES
SIX MONTHS ENDED THREE MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31, SEPTEMBER 30,
1995 1994 1994 A
CLASS A
Shares sold 4,638,334 1,516,748 9,950,363
Reinvestment of distributions - 494,691 946,630
Shares redeemed (2,527,824) (1,234,112) (3,569,676)
Net increase (decrease) 2,110,510 777,327 7,327,317
CLASS B
Shares sold 1,117,407 485,395 444,178
Reinvestment of distributions - 29,181 -
Shares redeemed (54,449) (36,053) (2,423)
Net increase (decrease) 1,062,958 478,523 441,755
INITIAL CLASS
Shares sold 3,705 22,104 10,959
Reinvestment of distributions - 32,999 86,923
Shares redeemed (25,964) (54,526) (77,300)
Net increase (decrease) (22,259) 577 20,582

DOLLARS
SIX MONTHS ENDED THREE MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31, SEPTEMBER 30,
1995 1994 1994 A
CLASS A
Shares sold $ 94,479,625 $ 29,239,750 $ 204,646,521
Reinvestment of distributions - 9,270,516 19,661,509
Shares redeemed (51,430,110) (23,824,539) (72,396,373)
Net increase (decrease) $ 43,049,515 $ 14,685,727 $ 151,911,657
CLASS B
Shares sold $ 22,618,562 $ 9,362,672 $ 8,900,939
Reinvestment of distributions - 542,478 -
Shares redeemed (1,094,814) (702,223) (48,808)
Net increase (decrease) $ 21,523,748 $ 9,202,927 $ 8,852,131
INITIAL CLASS
Shares sold $ 75,434 $ 432,827 $ 228,789
Reinvestment of distributions - 623,021 1,818,425
Shares redeemed (533,503) (1,044,732) (1,612,575)
Net increase (decrease) $ (458,069) $ 11,116 $ 434,639

A SHARE TRANSACTIONS FOR CLASS B ARE FOR THE PERIOD JUNE 30, 1994
(COMMENCEMENT OF SALE OF SHARES) TO SEPTEMBER 30, 1994.
8. TRANSACTIONS WITH
AFFILIATED COMPANIES.
An affiliated company is a company in which the fund has ownership of at
least 5% of the voting securities. Transactions during the period with
companies which are or were affiliates are as follows:
SUMMARY OF TRANSACTIONS WITH AFFILIATED COMPANIES
PURCHASE SALES DIVIDEND MARKET
AFFILIATE COST COST INCOME VALUE
ACTV, Inc. (a) $ - $ 875,000 $ - $ -
I-Stat Corp. (a) - - - 39,898,150
Showscan Corp. (a) - 82,310 - 2,012,500
TOTALS $ - $ 957,310 $ - $ 41,910,650
(a) NON-INCOME PRODUCING.
INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
William J. Hayes, Vice President
Daniel R. Frank, Vice President
Arthur S. Loring, Secretary
Stephen P. Jonas, Treasurer
Robert H. Morrison, Manager,
Security Transactions
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox *
Phyllis Burke Davis *
Richard J. Flynn *
Edward C. Johnson 3d
E. Bradley Jones *
Donald J. Kirk *
Peter S. Lynch
Edward H. Malone *
Marvin L. Mann *
Gerald C. McDonough *
Thomas R. Williams *
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENT
Fidelity Service Company
Boston, MA
CUSTODIAN
Brown Brothers Harriman & Co.
Boston, MA
* INDEPENDENT TRUSTEES
GROWTH FUNDS
Fidelity Advisor Overseas Fund
Fidelity Advisor Equity Portfolio Growth
Fidelity Advisor Global Resources Fund
Fidelity Advisor Growth
Opportunities Fund
Fidelity Advisor Strategic
Opportunities Fund
GROWTH AND INCOME FUNDS
Fidelity Advisor Equity Income Fund
Fidelity Advisor Income & Growth Fund
INCOME FUNDS
Fidelity Advisor Emerging Markets Income Fund
Fidelity Advisor High Yield Fund
Fidelity Advisor Strategic Income Fund
Fidelity Advisor Government Investment Fund
Fidelity Advisor Limited Term Bond Fund
Fidelity Advisor Short Fixed-Income Fund
TAX-EXEMPT FUNDS
Fidelity Advisor High Income
Municipal Fund
Fidelity Advisor Limited Term Tax-Exempt Fund
Fidelity Advisor Short-Intermediate Tax-Exempt Fund
MONEY MARKET FUNDS
Daily Money Fund: Money Market Portfolio
Daily Money Fund: U.S. Treasury Portfolio
Daily Tax-Exempt Money Fund
(REGISTERED TRADEMARK)
(registered trademark)

(2_FIDELITY_LOGOS)FIDELITY ADVISOR

STRATEGIC OPPORTUNITIES
FUND - CLASS A & CLASS B
SEMIANNUAL REPORT
JUNE 30, 1995
CONTENTS

PRESIDENT'S MESSAGE 3 Ned Johnson on stock market
strategies.

PERFORMANCE 4 How the fund has done over time.

FUND TALK 8 The manager's review of fund
performance, strategy and outlook.

INVESTMENT CHANGES 11 A summary of major shifts in the
fund's investments over the past six
months.

INVESTMENTS 12 A complete list of the fund's
investments with their market
values.

FINANCIAL STATEMENTS 21 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.

NOTES 27 Notes to the financial statements.

DEAR SHAREHOLDER:
Although there have been positive market indications so far in 1995, no one

There are several ways to evaluate historical performance. You can look at
the total percentage change in value, the average annual percentage change,
or the growth of a hypothetical $10,000 investment. Total return includes
changes in share price, plus reinvestment of any dividends (or income) and
capital gains (the profits the fund earns when it sells securities that
have grown in value). Initial offering of Class A shares took place on
August 20, 1986. Class A shares bear a .65% 12b-1 fee that is not reflected
in returns prior to that date. Returns prior to that date are those of
Initial Class, the original class of the fund. Had Class A's 12b-1 fee been
reflected, prior returns would have been lower. If Fidelity had not
reimbursed certain Class A expenses during the periods shown, the total
returns would have been lower.
CUMULATIVE TOTAL RETURNS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
PERIODS ENDED JUNE 30, 1995 PAST 6 PAST 1 PAST 5 PAST 10
MONTHS YEAR YEARS YEARS

Advisor Strategic Opportunities - Class A 19.30% 17.23% 83.20% 289.76%

Advisor Strategic Opportunities - Class A
(incl. 4.75% sales charge) 13.64% 11.66% 74.50% 271.25%

S&P 500(registered trademark) 20.21% 26.07% 76.98% 293.40%

Average Capital Appreciation Fund 16.59% 22.17% 75.00% 236.02%
</TABLE>
CUMULATIVE TOTAL RETURNS show Class A's performance in percentage terms
over a set period - in this case, six months, one year, five years, or 10
years. For example, if you 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 those of the Standard & Poor's Composite Index
of 500 Stocks - a common proxy for the U.S. stock market. To measure how
Class A's performance stacked up against its peers, you can compare it to
the average capital appreciation fund, which reflects the performance of
160 capital appreciation funds with similar objectives tracked by Lipper
Analytical Services over the past six months. These benchmarks include
reinvested dividends and capital gains, if any, and exclude the effects of
sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JUNE 30, 1995 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS

Advisor Strategic Opportunities - Class A 17.23% 12.87% 14.57%

Advisor Strategic Opportunities - Class A
(incl. 4.75% sales charge) 11.66% 11.78% 14.02%

S&P 500 26.07% 12.09% 14.68%

Average Capital Appreciation Fund 22.17% 11.40% 12.15%

AVERAGE ANNUAL TOTAL RETURNS take Class A shares' actual (or cumulative)
return and show you what would have happened if Class A shares had
performed at a constant rate each year.
$10,000 OVER 10 YEARS
Fidelity Advisor SpStandard & Poor's 5
06/30/85 9525.00 10000.00
07/31/85 9695.62 9985.00
08/31/85 9806.89 9900.13
09/30/85 9421.14 9590.25
10/31/85 9947.84 10033.32
11/30/85 10593.13 10721.61
12/31/85 11112.08 11240.54
01/31/86 11606.32 11303.48
02/28/86 12586.55 12148.98
03/31/86 13492.65 12826.90
04/30/86 13262.01 12681.95
05/31/86 13525.60 13356.63
06/30/86 14250.48 13582.36
07/31/86 13797.43 12823.10
08/31/86 14728.24 13774.58
09/30/86 13764.48 12635.42
10/31/86 14299.90 13364.49
11/30/86 14521.52 13689.24
12/31/86 14214.60 13340.17
01/31/87 15389.65 15137.09
02/28/87 15547.49 15735.00
03/31/87 16021.02 16189.74
04/30/87 15556.26 16045.65
05/31/87 15714.10 16185.25
06/30/87 16213.94 17002.61
07/31/87 16880.39 17864.64
08/31/87 17213.61 18530.99
09/30/87 16775.16 18125.16
10/31/87 13723.53 14221.00
11/30/87 13100.93 13049.19
12/31/87 13401.94 14042.23
01/31/88 14465.10 14633.41
02/29/88 14945.57 15315.33
03/31/88 14679.78 14842.09
04/30/88 14771.78 15006.83
05/31/88 15027.35 15137.39
06/30/88 16059.84 15832.20
07/31/88 15967.83 15772.04
08/31/88 15487.37 15235.79
09/30/88 15998.50 15884.83
10/31/88 16284.74 16326.43
11/30/88 16376.74 16092.96
12/31/88 16445.15 16374.59
01/31/89 17432.50 17573.21
02/28/89 17358.18 17135.64
03/31/89 17719.14 17534.90
04/30/89 18387.99 18444.96
05/31/89 19226.70 19191.98
06/30/89 19385.95 19082.58
07/31/89 20713.03 20805.74
08/31/89 20967.83 21213.53
09/30/89 20989.06 21126.56
10/31/89 20649.33 20636.42
11/30/89 21222.63 21057.41
12/31/89 21868.84 21562.78
01/31/90 20449.78 20115.92
02/28/90 20570.79 20375.42
03/31/90 20592.79 20915.36
04/30/90 19756.76 20392.48
05/31/90 20405.78 22380.75
06/30/90 20603.79 22228.56
07/31/90 20680.79 22157.43
08/31/90 19250.74 20154.40
09/30/90 19107.73 19172.88
10/31/90 19107.73 19090.43
11/30/90 19954.76 20323.68
12/31/90 20426.73 20890.71
01/31/91 21106.85 21801.54
02/28/91 22363.35 23360.35
03/31/91 23078.05 23925.67
04/30/91 23400.82 23983.09
05/31/91 24242.33 25019.16
06/30/91 23493.04 23873.28
07/31/91 24207.75 24985.78
08/31/91 24738.01 25577.94
09/30/91 24841.76 25150.79
10/31/91 24357.61 25487.81
11/30/91 23781.23 24460.65
12/31/91 25265.94 27258.95
01/31/92 25320.30 26751.94
02/29/92 25823.18 27099.71
03/31/92 25184.39 26571.27
04/30/92 25673.67 27352.46
05/31/92 26516.32 27486.49
06/30/92 26529.92 27076.94
07/31/92 27345.38 28184.39
08/31/92 26896.88 27606.61
09/30/92 26801.74 27932.36
10/31/92 27019.20 28030.13
11/30/92 28174.44 28985.95
12/31/92 28670.44 29342.48
01/31/93 29209.70 29588.96
02/28/93 30048.54 29991.37
03/31/93 31007.22 30624.19
04/30/93 30408.04 29883.08
05/31/93 31142.03 30683.95
06/30/93 31426.64 30772.93
07/31/93 32115.69 30649.84
08/31/93 34137.90 31811.47
09/30/93 34033.04 31566.52
10/31/93 35126.53 32219.95
11/30/93 33658.56 31913.86
12/31/93 34711.88 32300.02
01/31/94 35043.26 33398.22
02/28/94 33833.73 32493.12
03/31/94 32557.92 31076.42
04/30/94 32823.02 31474.20
05/31/94 32922.44 31990.38
06/30/94 32922.44 31206.62
07/31/94 33750.88 32230.19
08/31/94 33966.28 33551.63
09/30/94 33518.92 32729.61
10/31/94 33187.54 33466.03
11/30/94 32176.84 32247.20
12/31/94 32506.88 32725.42
01/31/95 33920.22 33573.99
02/28/95 34816.49 34882.37
03/31/95 35143.97 35911.75
04/30/95 35919.59 36969.35
05/31/95 36884.80 38447.02
06/30/95 38832.45 39340.14
$10,000 OVER 10 YEARS: Let's say you invested $10,000 in Fidelity Advisor
Strategic Opportunities Fund - Class A on June 30, 1985, and paid the
maximum 4.75% sales charge. As the chart shows, by June 30, 1995, the value
of your investment would have grown to $37,125 - a 271.25% increase on your
initial investment. For comparison, look at how the S&P 500 did over the
same period. With dividends reinvested, the same $10,000 investment would
have grown to $39,340 - a 293.40% increase.
UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. The stock market,
for example, has a history of
growth in the long run and
volatility in the short run. In
turn, the share price and
return of a fund that invests in
stocks will vary. That means if
you sell your shares during a
market downturn, you might
lose money. But if you can
ride out the market's ups and
downs, you may have a gain.
(checkmark)
ADVISOR STRATEGIC OPPORTUNITIES FUND - CLASS B
PERFORMANCE: THE BOTTOM LINE

There are several ways to evaluate historical performance. You can look at
the total percentage change in value, the average annual percentage change,
or the growth of a hypothetical $10,000 investment. Total return includes
changes in share price, plus reinvestment of any dividends (or income) and
capital gains (the profits the fund earns when it sells securities that
have grown in value). Initial offering of Class B shares took place on June
30, 1994. Class B shares bear a 1.00% 12b-1/shareholder service fee. This
fee is not reflected in returns prior to that date. Returns between August
20, 1986 and June 30, 1994 are those of Class A, and reflect Class A's .65%
12b-1 fee. Returns prior to August 20, 1986 are those of Initial Class, the
original class of the fund. Had Class B's 12b-1 fee been reflected, prior
returns would have been lower. If Fidelity had not reimbursed certain Class
B expenses during the periods shown, the total returns would have been
lower. Class B's contingent deferred sales charges included in the past 6
months, past 1 year, past 5 years and past 10 years total return figures
are 4%, 4%, 1% and 0%, respectively.
CUMULATIVE TOTAL RETURNS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
PERIODS ENDED JUNE 30, 1995 PAST 6 PAST 1 PAST 5 PAST 10
MONTHS YEAR YEARS YEARS

Advisor Strategic Opportunities - Class B 18.96% 16.83% 82.58% 288.43%

Advisor Strategic Opportunities - Class B
(incl. contingent deferred sales charge) 14.96% 12.83% 81.58% 288.43%

S&P 500(registered trademark) 20.21% 26.07% 76.98% 293.40%

Average Capital Appreciation Fund 16.59% 22.17% 75.00% 236.02%
</TABLE>
CUMULATIVE TOTAL RETURNS show Class B's performance in percentage terms
over a set period - in this case, six months, one year, five years, or 10
years. For example, if you 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 those of the Standard & Poor's Composite Index
of 500 Stocks - a common proxy for the U.S. stock market. To measure how
Class B's performance stacked up against its peers, you can compare it to
the average capital appreciation fund, which reflects the performance of
160 capital appreciation funds with similar objectives tracked by Lipper
Analytical Services over the past six months. These benchmarks include
reinvested dividends and capital gains, if any, and exclude the effects of
sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JUNE 30, 1995 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS

Advisor Strategic Opportunities - Class B 16.83% 12.79% 14.53%

Advisor Strategic Opportunities - Class B
(incl. contingent deferred sales charge) 12.83% 12.67% 14.53%

S&P 500 26.07% 12.09% 14.68%

Average Capital Appreciation Fund 22.17% 11.46% 12.15%

AVERAGE ANNUAL TOTAL RETURNS take Class B shares' actual (or cumulative)
return and show you what would have happened if Class B shares had
performed at a constant rate each year.
$10,000 OVER 10 YEARS
Fidelity Advisor SStandard & Poor's 5
06/30/85 10000.00 10000.00
07/31/85 10179.13 9985.00
08/31/85 10295.95 9900.13
09/30/85 9890.97 9590.25
10/31/85 10443.93 10033.32
11/30/85 11121.40 10721.61
12/31/85 11666.22 11240.54
01/31/86 12185.11 11303.48
02/28/86 13214.23 12148.98
03/31/86 14165.51 12826.90
04/30/86 13923.37 12681.95
05/31/86 14200.10 13356.63
06/30/86 14961.13 13582.36
07/31/86 14485.49 12823.10
08/31/86 15462.72 13774.58
09/30/86 14450.90 12635.42
10/31/86 15013.02 13364.49
11/30/86 15245.69 13689.24
12/31/86 14923.46 13340.17
01/31/87 16147.91 15137.09
02/28/87 16313.62 15735.00
03/31/87 16792.35 16189.74
04/30/87 16295.21 16045.65
05/31/87 16451.72 16185.25
06/30/87 16967.27 17002.61
07/31/87 17648.54 17864.64
08/31/87 17998.38 18530.99
09/30/87 17547.27 18125.16
10/31/87 14325.05 14221.00
11/30/87 13671.40 13049.19
12/31/87 13978.24 14042.23
01/31/88 15073.31 14633.41
02/29/88 15567.17 15315.33
03/31/88 15320.24 14842.09
04/30/88 15416.86 15006.83
05/31/88 15685.26 15137.39
06/30/88 16758.86 15832.20
07/31/88 16662.24 15772.04
08/31/88 16146.91 15235.79
09/30/88 16672.97 15884.83
10/31/88 16962.85 16326.43
11/30/88 17070.21 16092.96
12/31/88 17088.17 16374.59
01/31/89 18056.06 17573.21
02/28/89 17978.18 17135.64
03/31/89 18356.44 17534.90
04/30/89 19057.32 18444.96
05/31/89 19936.20 19191.98
06/30/89 20091.96 19082.58
07/31/89 21471.47 20805.74
08/31/89 21749.60 21213.53
09/30/89 21749.60 21126.56
10/31/89 21393.59 20636.42
11/30/89 21972.10 21057.41
12/31/89 22658.55 21562.78
01/31/90 21160.18 20115.92
02/28/90 21274.56 20375.42
03/31/90 21274.56 20915.36
04/30/90 20405.28 20392.48
05/31/90 21068.68 22380.75
06/30/90 21274.56 22228.56
07/31/90 21331.75 22157.43
08/31/90 19833.38 20154.40
09/30/90 19684.69 19172.88
10/31/90 19673.25 19090.43
11/30/90 20542.53 20323.68
12/31/90 21033.88 20890.71
01/31/91 21713.55 21801.54
02/28/91 23013.26 23360.35
03/31/91 23740.62 23925.67
04/30/91 24062.57 23983.09
05/31/91 24921.09 25019.16
06/30/91 24134.11 23873.28
07/31/91 24861.47 24985.78
08/31/91 25398.05 25577.94
09/30/91 25493.44 25150.79
10/31/91 24980.71 25487.81
11/30/91 24372.59 24460.65
12/31/91 25888.34 27258.95
01/31/92 25930.35 26751.94
02/29/92 26434.39 27099.71
03/31/92 25762.33 26571.27
04/30/92 26252.37 27352.46
05/31/92 27106.45 27486.49
06/30/92 27106.45 27076.94
07/31/92 27946.53 28184.39
08/31/92 27456.48 27606.61
09/30/92 27344.47 27932.36
10/31/92 27568.49 28030.13
11/30/92 28744.60 28985.95
12/31/92 29220.82 29342.48
01/31/93 29773.03 29588.96
02/28/93 30616.67 29991.37
03/31/93 31567.69 30624.19
04/30/93 30938.79 29883.08
05/31/93 31659.73 30683.95
06/30/93 31920.49 30772.93
07/31/93 32595.41 30649.84
08/31/93 34635.50 31811.47
09/30/93 34543.46 31566.52
10/31/93 35632.53 32219.95
11/30/93 34129.31 31913.86
12/31/93 35192.44 32300.02
01/31/94 35496.99 33398.22
02/28/94 34228.03 32493.12
03/31/94 32908.32 31076.42
04/30/94 33179.03 31474.20
05/31/94 33246.71 31990.38
06/30/94 33246.71 31206.62
07/31/94 34075.76 32230.19
08/31/94 34261.87 33551.63
09/30/94 33805.05 32729.61
10/31/94 33415.90 33466.03
11/30/94 32349.98 32247.20
12/31/94 32653.20 32725.42
01/31/95 34042.32 33573.99
02/28/95 34903.93 34882.37
03/31/95 35220.44 35911.75
04/30/95 35976.54 36969.35
05/31/95 36908.49 38447.02
06/30/95 38842.71 39340.14

$10,000 OVER 10 YEARS: Let's say you invested $10,000 in Fidelity Advisor
Strategic Opportunities Fund - Class B on June 30, 1985. As the chart
shows, by June 30, 1995, the value of your investment would have grown to
$38,843 - a 288.43% increase on your initial investment. For comparison,
look at how the S&P 500 did over the same period. With dividends
reinvested, the same $10,000 investment would have grown to $39,340 - a
293.40% increase.
UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. The stock market,
for example, has a history of
growth in the long run and
volatility in the short run. In
turn, the share price and
return of a fund that invests in
stocks will vary. That means if
you sell your shares during a
market downturn, you might
lose money. But if you can
ride out the market's ups and
downs, you may have a gain.
(checkmark)
FUND TALK: THE MANAGER'S OVERVIEW

An interview with Daniel R. Frank, Portfolio Manager of Fidelity
Advisor Strategic Opportunities Fund
Q. DAN, HOW HAS THE FUND PERFORMED DURING THE PAST SIX MONTHS?
A. For the six months ended June 30, 1995, the Class A shares had a total
return of 19.30%, and Class B shares returned 18.96%, beating the average
capital appreciation fund, which returned 16.59% for the same time period,
according to Lipper Analytical Services. For the 12 months ended June 30,
1995, the Class A shares returned 17.23% and the Class B shares returned
16.83% versus the average capital appreciation fund, which returned 22.17%.
Q. WHAT FACTORS CONTRIBUTED TO THE FUND'S PERFORMANCE?
A. For the fund, 1995 has been almost a total reverse image of 1994. In
1994, interest rates rose, bonds and financial stocks went down, the
economy was booming, consumers were spending and borrowing, and commodity
prices were rising. In 1995, things have changed dramatically. As large
companies continue to lay off employees in a continuing effort to cut
costs, consumers have turned more cautious with their spending - resulting
in slumping retail sales. The Federal Reserve's interest rate increases in
1994 and early 1995 seem to have finally taken effect, as the economy has
slowed significantly from its 1994 growth rates. Inventories are picking
up, commodity prices have leveled off, and the European, Japanese, Canadian
and Mexican economies are in severe contractions. Under these conditions,
inflation does not appear to be a major threat. As a result, U.S. interest
rates have declined dramatically. In this environment, the fund's large
position in Treasury Bonds and financial stocks has performed well. In
addition, the fund's large position in Regional Bell Operating Companies
has performed well, as these companies continue to exhibit strong
fundamentals.
Q. THE FUND'S HOLDINGS IN FINANCIAL STOCKS HAS INCREASED FROM 9.5% OF THE
FUND SIX MONTHS AGO TO ABOUT 24% AS OF JUNE 30, 1995. WHAT'S YOUR THINKING?
A. I reduced the fund's position in banks and savings and loans throughout
the latter part of 1994, as the stock prices of these companies at mid-year
seemed to be over-valued. Later in the year, many of these "interest rate
sensitive" stocks were severely penalized by the market due to rising
interest rates. This was further exacerbated by year-end tax-loss selling.
However, beginning in early 1995, I began rebuilding the industry
weightings as the prices became more reasonable. Within the sector, I have
consistently focused on the small- to medium-sized banks and savings and
loans. These institutions have high credit standards, and tend to have
strong franchises and balance sheets. In effect, they make ideal
acquisition targets. Indeed, several of the fund's holdings in this area
have been taken over recently.
Q. ALMOST HALF OF THE FUND'S TOP 10 STOCKS CONTINUE TO BE THE REGIONAL BELL
OPERATING COMPANIES (RBOCS). HOW HAVE THEY PERFORMED DURING THE PAST SIX
MONTHS?
A. The RBOCs represent about 25% of the fund's assets. While 1994 was a bad
year for these companies in terms of stock market performance, the exact
opposite has been true for the first six months of 1995. The RBOCs continue
to be a major long-term theme for the fund. The RBOCs are no longer the
staid utility companies they were in the past. New technologies, products
and services have turned the RBOCs from utilities into growth companies.
New phone services such as cellular, PCS, voice mail, voice messaging and
paging have given the RBOCs attractive growth opportunities. But they
haven't stopped there. A favorable regulatory environment has led the RBOCs
to pursue the "information superhighway" with new business in video and
cable television. Several of these companies have begun strategic alliances
with entertainment companies to produce original entertainment programming.
In addition, several RBOCs have made very profitable overseas investments
in telephone services, cellular and cable. All of these positive
developments have not gone unnoticed by the market.
Q. HAVE ANY INVESTMENT TRENDS EMERGED IN THE PAST SIX MONTHS?
A. The biggest trend - which I don't think is emerging, but rather well
established - is the continued consolidation in the banking and savings and
loan industries. This trend is well established but now is involving larger
institutions, hence, more publicity in the national press. Recent examples
include Fleet/ Shawmut, First Union/First Fidelity and PNC/Midlantic.
Another trend is the continuing decline of interest rates, as inflation
remains subdued and aging baby boomers save and invest more for their
retirement. Again, the banking consolidation and interest rate declines are
not new trends, just continuations of long established trends that have
been key investment themes for me.
Q. WHAT INVESTMENTS DIDN'T TURN OUT AS WELL AS YOU WOULD HAVE LIKED?
A. I'm happy with the way my bonds have performed, but I was quite honestly
surprised at the speed with which stock prices have advanced even more. My
large investment in Viacom, which I believe has tremendous long-term value
as the best pure play on entertainment software (television, movies, music
and books), was held back by arbitrage-related selling. The arbitrageurs
sold the stock as part of complex trading strategies involving various
rights that were issued in conjunction with Viacom's mergers with Paramount
and Blockbuster. As Viacom retires these rights, I expect the volatility to
subside and the market to evaluate this company more on its fundamentals.
Q. DAN, WHAT'S YOUR OUTLOOK FOR THE NEXT SIX MONTHS?
A. I try not to predict the future, as my crystal ball is no better than
anyone else's. I will continue to invest in the securities of individual
companies that offer value and opportunity. For the time being, my plate
appears to be quite full.
FUND FACTS
GOAL: seeks capital
appreciation by investing
primarily in securities of
companies believed by
Fidelity to involve a "Special
Situation"
START DATE: December 31,
1983
SIZE: as of June 30, 1995,
more than $557 million
MANAGER: Daniel R. Frank,
since inception, joined
Fidelity in 1979
(checkmark)
DAN FRANK ON THE FUND'S
PERFORMANCE:
"Making a positive
contribution to performance
was the fund's large position
in the finance sector. Many
regional banks and savings
and loans benefit from lower
interest rates, cost cutting and
share repurchasing.
"Regional Bell Operating
Companies (RBOCs)
strength has continued and
they performed well during
the period. These
companies are the long-term
beneficiaries of legislative
reform which allows them to
expand beyond the realm of
traditional telephone services
to high-growth areas such as
cellular communications,
cable television and long
distance, all while cutting
costs."
INVESTMENT CHANGES

TOP TEN STOCKS AS OF JUNE 30, 1995
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE STOCKS
6 MONTHS AGO

I-Stat Corp. 7.2 5.0

Viacom, Inc. (various issues) 5.3 5.2

BellSouth Corp. 5.1 5.2

Ameritech Corp. 5.0 4.9

Bell Atlantic Corp. 4.9 4.6

SBC Communications, Inc. 4.7 4.2

NYNEX Corp. 4.3 4.4

Tootsie Roll Industries, Inc. 1.5 1.0

Sepracor, Inc. 1.4 0.1

Regis Corp. 1.4 1.4

TOP FIVE INDUSTRIES AS OF JUNE 30, 1995
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE INDUSTRIES
6 MONTHS AGO

Utilities 26.0 25.9

Finance 24.4 9.5

Health 10.6 6.2

Media & Leisure 6.0 5.2

Nondurables 4.5 6.3

Showing Percentage of Total Value of Investment in Securities

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
JUNE 30, 1995 (UNAUDITED)

ASSETS

Investment in securities, at value (including repurchase $ 557,739,111
agreements of $2,737,000) (cost $485,531,110) -
See accompanying schedule

Cash 710

Receivable for investments sold 11,613,983

Receivable for fund shares sold 2,066,627

Dividends receivable 1,289,335

Interest receivable 244,841

Other receivables 74,010

TOTAL ASSETS 573,028,617

LIABILITIES

Payable for investments purchased $ 11,925,374

Payable for fund shares redeemed 738,600

Accrued management fee 265,289

Distribution fees payable 284,318

Other payables and accrued expenses 228,827

TOTAL LIABILITIES 13,442,408

NET ASSETS $ 559,586,209

Net Assets consist of: $ 484,589,383
Paid in capital

Undistributed net investment income 4,750,341

Accumulated undistributed net realized gain (loss) on (1,950,921)
investments and foreign currency transactions

Net unrealized appreciation (depreciation) on 72,197,406
investments and assets and liabilities in foreign
currencies

NET ASSETS $ 559,586,209

CALCULATION OF MAXIMUM OFFERING PRICE $22.31
CLASS A:
NET ASSET VALUE, and redemption price per share
($495,273,895 (divided by) 22,198,273 shares)

Maximum offering price per share (100/95.25 of $22.31) $23.42

CLASS B: $22.09
NET ASSET VALUE, and offering price per share
($43,800,412 (divided by) 1,983,236 shares) A

INITIAL CLASS: $22.53
NET ASSET VALUE, and redemption price per share
($20,511,902 (divided by) 910,249 shares)

Maximum offering price per share (100/95.25 of $22.53) $23.65

</TABLE>

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

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED JUNE 30, 1995 (UNAUDITED)

INVESTMENT INCOME $ 4,945,578
Dividends

Interest 3,706,502

TOTAL INCOME 8,652,080

EXPENSES

Management fee $ 1,445,989
Basic fee

Performance adjustment 48,134

Transfer agent fees 538,332
Class A

Class B 42,911

Initial Class 22,147

Distribution fees 1,398,145
Class A

Class B 144,788

Accounting fees and expenses 143,207

Non-interested trustees' compensation 1,061

Custodian fees and expenses 25,065

Registration fees 28,639
Class A

Class B 15,764

Initial Class 14,338

Audit 23,692

Legal 6,279

Interest 948

Miscellaneous 20,775

Total expenses before reductions 3,920,214

Expense reductions (18,475) 3,901,739

NET INVESTMENT INCOME 4,750,341

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

Investment securities (including realized gain (loss) of 4,163,994
$5,188 on sales of investment in affiliated issuers)

Foreign currency transactions 53 4,164,047

Change in net unrealized appreciation (depreciation) on 76,193,244
investment securities

NET GAIN (LOSS) 80,357,291

NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ 85,107,632
FROM OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C> <C>
SIX MONTHS THREE MONTHS YEAR ENDED
ENDED JUNE 30, ENDED SEPTEMBER 30,
1995 DECEMBER 31, 1994
(UNAUDITED) 1994

INCREASE (DECREASE) IN NET ASSETS

Operations $ 4,750,341 $ 2,067,920 $ 6,903,469
Net investment income

Net realized gain (loss) 4,164,047 (5,789,778) 8,280,193

Change in net unrealized appreciation 76,193,245 (9,641,386) (23,325,658)
(depreciation)

NET INCREASE (DECREASE) IN NET ASSETS 85,107,633 (13,363,244) (8,141,996)
RESULTING FROM OPERATIONS

Distributions to shareholders - (6,826,359) (5,752,632)
From net investment income
Class A

Class B - (382,214) -

Initial Class - (464,141) (458,027)

From net realized gain - (5,071,018) (22,876,692)
Class A

Class B - (211,573) -

Initial Class - (241,353) (1,535,740)

TOTAL DISTRIBUTIONS - (13,196,658) (30,623,091)

Share transactions - net increase (decrease) 64,115,194 23,899,770 161,198,427

TOTAL INCREASE (DECREASE) IN NET ASSETS 149,222,827 (2,660,132) 122,433,340

NET ASSETS

Beginning of period 410,363,382 413,023,514 290,590,174

End of period (including undistributed $ 559,586,209 $ 410,363,382 $ 413,023,514
net investment income of $4,750,341,
$0, and $5,875,182 respectively)

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS - CLASS A SIX MONTHS THREE MONTHS YEARS ENDED SEPTEMBER 30,
ENDED JUNE 30, ENDED
1995 DECEMBER 31,

SELECTED PER-SHARE DATA (UNAUDITED) 1994 1994 1993 1992 D 1991 1990

</TABLE>

Net asset value, beginning of period $ 18.70 $ 19.96 $ 22.52 $ 19.53 $ 21.38 $ 17.21 $ 19.55

Income from Investment Operations

Net investment income .19 .10 F .39 F .33 .61 .66 .70

Net realized and unrealized gain (loss) 3.42 (.75) (.81) 4.44 .58 4.26 (2.49)

on investments

Total from investment operations 3.61 (.65) (.42) 4.77 1.19 4.92 (1.79)

Less Distributions

From net investment income - (.35) (.43) (.57) (.62) (.75) (.55)

From net realized gain - (.26) (1.71) (1.21) (2.42) - -

Total distributions - (.61) (2.14) (1.78) (3.04) (.75) (.55)

Net asset value, end of period $ 22.31 $ 18.70 $ 19.96 $ 22.52 $ 19.53 $ 21.38 $ 17.21

TOTAL RETURN B, C 19.30% (3.26)% (2.24) 26.33% 7.26% 29.51% (9.49)

% %

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 495,274 $ 375,691 $ 385,349 $ 269,833 $ 194,710 $ 199,604 $ 172,086

Ratio of expenses to average net assets 1.62% 1.73% A 1.84% 1.57% 1.46% 1.56% 1.59%

A E

Ratio of expenses to average net assets before 1.63% 1.84% A 1.85% 1.73% 1.46% 1.56% 1.59%

expense reductions A

Ratio of net investment income to average net 1.99% 2.03% A 1.89% 2.06% 3.22% 3.61% 3.70%

assets A

Portfolio turnover 139% 228% A 159% 183% 211% 223% 114%

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C>
SIX MONTHS THREE MONTHS YEAR ENDED
ENDED ENDED SEPTEMBER 30,
JUNE 30, 1994 DECEMBER 31,

(UNAUDITED) 1994 1994 D

SELECTED PER-SHARE DATA

Net asset value, beginning of period $ 18.57 $ 19.98 $ 19.65

Income from Investment Operations

Net investment income .11 .06 E .05 E

Net realized and unrealized gain (loss) 3.41 (.74) .28
on investments

Total from investment operations 3.52 (.68) .33

Less Distributions

From net investment income - (.47) -

From net realized gain - (.26) -

Total distributions - (.73) -

Net asset value, end of period $ 22.09 $ 18.57 $ 19.98

TOTAL RETURN B,C 18.96% (3.41)% 1.68%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 43,800 $ 17,090 $ 8,824

Ratio of expenses to average net assets 2.10% A 2.53% A 2.63% A

Ratio of expenses to average net assets 2.11% A 2.58% A 2.84% A
before expense reductions

Ratio of net investment income to 1.51% A 1.22% A 1.11% A
average net assets

Portfolio turnover 139% A 228% A 159%

</TABLE>

A ANNUALIZED
B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN (SEE NOTE 6 OF NOTES TO FINANCIAL
STATEMENTS).
D FOR THE PERIOD JUNE 30, 1994 (COMMENCEMENT OF SALES OF CLASS B SHARES) TO
SEPTEMBER 30, 1994.
E NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS - INITIAL CLASS SIX MONTHS THREE MONTHS YEARS ENDED SEPTEMBER 30,
ENDED JUNE 30, ENDED
1995 DECEMBER 31,

SELECTED PER-SHARE DATA (UNAUDITED) 1994 1994 1993 1992 D 1991 1990

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 18.86 $ 20.23 $ 22.72 $ 19.72 $ 21.55 $ 17.37 $ 19.77

Income from Investment Operations

Net investment income .26 .13 F .54 F .45 .73 .77 .80

Net realized and unrealized gain (loss) 3.41 (.74) (.81) 4.46 .58 4.26 (2.49)
on investments

Total from investment operations 3.67 (.61) (.27) 4.91 1.31 5.03 (1.69)

Less Distributions

From net investment income - (.50) (.51) (.70) (.72) (.85) (.71)

From net realized gain - (.26) (1.71) (1.21) (2.42) - -

Total distributions - (.76) (2.22) (1.91) (3.14) (.85) (.71)

Net asset value, end of period $ 22.53 $ 18.86 $ 20.23 $ 22.72 $ 19.72 $ 21.55 $ 17.37

TOTAL RETURN B, C 19.46% (3.02)% (1.51)% 26.98% 7.89% 30.01% (8.96)%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 20,512 $ 17,583 $ 18,850 $ 20,707 $ 17,933 $ 19,193 $ 15,988

Ratio of expenses to average net assets 1.09% A 1.11% A 1.14% .89% .87% 1.00% 1.03%
E

Ratio of expenses to average net assets before 1.10% A 1.14% A 1.15% 1.05% .87% 1.00% 1.03%
expense reductions

Ratio of net investment income to average net 2.52% A 2.65% A 2.60% 2.74% 3.78% 4.12% 4.21%
assets

Portfolio turnover 139% A 228% A 159% 183% 211% 223% 114%

</TABLE>

INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
William J. Hayes, Vice President
Daniel R. Frank, Vice President
Arthur S. Loring, Secretary
Stephen P. Jonas, Treasurer
Robert H. Morrison, Manager,
Security Transactions
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox *
Phyllis Burke Davis *
Richard J. Flynn *
Edward C. Johnson 3d
E. Bradley Jones *
Donald J. Kirk *
Peter S. Lynch
Edward H. Malone *
Marvin L. Mann *
Gerald C. McDonough *
Thomas R. Williams *
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENT
State Street Bank and Trust Company
Boston, MA - Class A
Fidelity Investments Institutional
Operations Company
Boston, MA - Class B
* INDEPENDENT TRUSTEES
CUSTODIAN
Brown Brothers Harriman & Co.
Boston, MA
GROWTH FUNDS
Fidelity Advisor Overseas Fund
Fidelity Advisor Equity Portfolio Growth
Fidelity Advisor Global Resources Fund
Fidelity Advisor Growth
Opportunities Fund
Fidelity Advisor Strategic
Opportunities Fund
GROWTH AND INCOME FUNDS
Fidelity Advisor Equity Income Fund
Fidelity Advisor Income & Growth Fund
INCOME FUNDS
Fidelity Advisor Emerging Markets Income Fund
Fidelity Advisor High Yield Fund
Fidelity Advisor Strategic Income Fund
Fidelity Advisor Government Investment Fund
Fidelity Advisor Limited Term Bond Fund
Fidelity Advisor Short Fixed-Income Fund
TAX-EXEMPT FUNDS
Fidelity Advisor High Income
Municipal Fund
Fidelity Advisor Limited Term Tax-Exempt Fund
Fidelity Advisor Short-Intermediate Tax-Exempt Fund
MONEY MARKET FUNDS
Daily Money Fund: Money Market Portfolio
Daily Money Fund: U.S. Treasury Portfolio
Daily Tax-Exempt Money Fund
(REGISTERED TRADEMARK)
(registered trademark)

(2_FIDELITY_LOGOS)FIDELITY ADVISOR
(registered trademark)

EMERGING MARKETS INCOME
FUND - CLASS A & CLASS B
SEMIANNUAL REPORT
JUNE 30, 1995
CONTENTS

PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.

PERFORMANCE 4 How the fund has done over time.

FUND TALK 11 The manager's review of fund
performance, strategy and outlook.

INVESTMENT CHANGES 14 A summary of major shifts in the
fund's investments over the past six
months.

INVESTMENTS 15 A complete list of the fund's
investments with their market
values.

FINANCIAL STATEMENTS 20 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.

NOTES 25 Notes to the financial statements.

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, THE FEDERAL
RESERVE BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO INVESTMENT RISK,
INCLUDING THE POSSIBLE LOSS OF PRINCIPAL.
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

DEAR SHAREHOLDER:
Although there have been positive market indications so far in 1995, no one
can predict what lies ahead for investors. Last year, stocks posted
below-average returns and bonds had one of the worst years in history. This
downturn followed a period in which the investing environment was generally
very positive.
These market ups and downs are a normal part of investing, and there are
some basic principles that are helpful for investors to remember in
different types of markets.
Keeping in mind that the effects of interest rate changes on your bond
investments will only be "paper" gains or losses unless you sell your
shares, staying in your bond fund may be appropriate if your investment
horizon is at least a year or more. The longer your investing time frame,
the more likely it is that you will retain your principal investment
through both up and down markets. For example, a 10-year time frame, such
as saving for a college education, enables you to weather these ups and
downs in a long-term fund, which has higher potential returns. An
intermediate-length fund could be appropriate if your investment horizon is
two to four years, and a short-term bond fund could be the right choice if
you need your money in one or two years.
If your time horizon is less than a year, you might want to consider moving
some of your bond investment into a money market fund, which seeks income
and a stable share price by investing in high-quality, short-term
investments. Of course, there is no assurance that a money market fund will
achieve its goal, and it is important to remember that money market funds
are not insured or guaranteed by any agency of the U.S. government.
No matter what your investment horizon or portfolio diversity, it makes
good sense to follow a regular investment plan - investing a certain amount
of money at the same time each month or quarter - and to review your
portfolio periodically. A periodic investment plan will not, of course,
assure a profit or protect against a loss.
Remember to contact your investment professional if you need help with your
investments.
Best regards,
Edward C. Johnson 3d
ADVISOR EMERGING MARKETS INCOME FUND - CLASS A
PERFORMANCE: THE BOTTOM LINE

Advisor Emerging Markets Income - Class A -7.67% -3.81% -5.40%

Advisor Emerging Markets Income - Class A
(incl. max. 4.75% sales charge) -12.06% -8.38% -9.89%

JP Morgan Emerging Market Bond Index 9.23% 10.94% n/a

Average General World Income Fund 10.15% 10.61% n/a

Consumer Price Index 1.87% 3.04% 3.95%

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
began on March 10, 1994. 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 those of the JP Morgan
Emerging Market Bond Index - a broad gauge of bond performance in
developing countries over the past six months. To measure how Class A's
performance stacked up against its peers, you can compare it to the average
general world income fund, which reflects the performance of 154 funds with
similar objectives tracked by Lipper Analytical Services over the past six
months. These benchmarks include reinvested dividends and capital gains, if
any, and exclude the effects of sales charges. Comparing Class A's
performance to the consumer price index (CPI) helps show how the class did
compared to inflation. (The CPI returns begin on the month end closest to
the fund's start date.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JUNE 30, 1995 PAST 1 LIFE OF
YEAR FUND

Advisor Emerging Markets Income - Class A -3.81% -4.15%

Advisor Emerging Markets Income - Class A
(incl. max. 4.75% sales charge) -8.38% -7.64%

JP Morgan Emerging Market Bond Index 10.94% n/a

Average General World Income Fund 10.61% n/a

Consumer Price Index 3.04% 2.95%

AVERAGE ANNUAL TOTAL RETURNS take Class A shares' actual (or 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
Fidelity Advisor EmerJP Morgan Emerging
03/31/94 9525.00 10000.00
04/30/94 9650.33 10005.00
05/31/94 10272.40 10695.35
06/30/94 9775.20 9834.37
07/31/94 9994.53 10076.30
08/31/94 11198.69 10796.75
09/30/94 11518.45 10902.56
10/31/94 11221.58 10594.02
11/30/94 10988.36 10702.08
12/31/94 10184.34 9989.32
01/31/95 9015.10 9643.69
02/28/95 8370.79 9141.25
03/31/95 8125.99 8882.55
04/30/95 8823.62 9836.54
05/31/95 9350.02 10703.14
06/30/95 9402.70 10910.78

$10,000 OVER LIFE OF FUND: Let's say you invested $10,000 in Fidelity
Advisor Emerging Markets Income Fund - Class A on March 31, 1994, shortly
after the fund started, and paid the maximum 4.75% sales charge. As the
chart shows, by June 30, 1995, the value of your investment would have
fallen to $9,403 - a 5.97% decrease on your initial investment. For
comparison, look at how the JP Morgan Emerging Market Bond Index did over
the same period. With dividends reinvested, the same $10,000 investment
would have grown to $10,911 - a 9.11% increase.
UNDERSTANDING
PERFORMANCE
Many markets around the
globe offer the potential for
significant growth over time;
however, investing in foreign
markets means assuming
greater risks than investing in
the United States. Factors like
changes in a country's financial
markets, its local political and
economic climate, and the
fluctuating value of its currency
create these risks. For these
reasons an international fund's
performance may be more
volatile than a fund that invests
exclusively in the United
States.
(checkmark)

TOTAL RETURN COMPONENTS
SIX MONTHS MARCH 10, 1994
ENDED (COMMENCEMENT
JUNE 30, 1995 OF OPERATIONS) TO
DECEMBER 31, 1994

Dividend return 4.41% 4.80%

Capital appreciation return -12.08% -2.33%

Total return -7.67% 2.47%

DIVIDEND returns and capital appreciation returns are both part of a class'
total return. A dividend return reflects the actual dividends paid by the
class. A capital appreciation return reflects both the amount paid by the
class to shareholders as capital gain distributions and changes in the
class' share price. Both returns assume the dividends or gains are
reinvested and exclude the effects of sales charges.
DIVIDENDS AND YIELD
PERIODS ENDED JUNE 30, 1995 PAST PAST 6 PAST
MONTH MONTHS YEAR

Dividends per share 6.73(cents) 39.29(cents) 75.91(cents)

Annualized dividend rate 9.89% 9.92% 8.19%

30-day annualized yield 10.11% - -

DIVIDENDS per share show the income paid by the class for a set period. The
annualized dividend rate is based on an average net asset value of $8.28
over the past month, $7.99 over the past six months and $9.27 over the past
year, you can compare the class' income distributions over these three
periods. The 30-day annualized YIELD is a standard formula for all bond
funds based on the yields of the bonds in the fund, averaged over the past
30 days. This figure shows you the yield characteristics of the fund's
investments at the end of the period. It also helps you to compare funds
from different companies on an equal basis. The offering share price used
in the calculation of the yield includes the effect of Class A's maximum
4.75% sales charge. If Fidelity had not reimbursed certain Class A expenses
during the period shown, the yield would have been 9.59%.
ADVISOR EMERGING MARKETS INCOME FUND - CLASS B
PERFORMANCE: THE BOTTOM LINE

There are several ways to evaluate historical performance. You can look at
the total percentage change in value, the average annual percentage change,
or the growth of a hypothetical $10,000 investment. Total return includes
changes in share price, plus reinvestment of any dividends (or income) and
capital gains (the profits the fund earns when it sells securities that
have grown in value). You can also look at income to measure performance.
Initial offering of Class B shares took place on June 30, 1994. Class B
shares bear a 1.00% 12 b-1/shareholder service fee. This fee is not
reflected in returns prior to that date. Returns prior to June 30, 1994 are
those of Class A, the original class of the fund and reflect Class A's
0.25% 12 b-1 fee. Had Class B's 12 b-1 fee been reflected, prior returns
would have been lower. Class B's contingent deferred sales charge included
in the past six months, past one year, and life of fund total return
figures are 4%, 4% and 3% respectively. If Fidelity had not reimbursed
certain Class B expenses during the periods shown, the total returns and
dividends would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED JUNE 30, 1995 PAST 6 PAST 1 LIFE OF
MONTHS YEAR FUND

Advisor Emerging Markets Income - Class B -7.82% -4.44% -6.01%

Advisor Emerging Markets Income - Class B
(incl. contingent deferred sales charge) -11.34% -7.90% -8.53%

JP Morgan Emerging Market Bond Index 9.23% 10.94% n/a

Average General World Income Fund 10.15% 10.61% n/a

Consumer Price Index 1.87% 3.04% 3.95%

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
began on March 10, 1994. 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 those of the JP Morgan
Emerging Market Bond Index - a broad gauge of the bond performance in
developing countries over the past six months. To measure how Class B's
performance stacked up against its peers, you can compare it to the average
general world income fund, which currently reflects the performance of 154
funds tracked by Lipper Analytical Services over the past six months. These
benchmarks include reinvested dividends and capital gains, if any, and
exclude the effects of sales charges. Comparing Class B's performance to
the consumer price index (CPI) helps show how the class did compared to
inflation. (The CPI returns begin on the month end closest to the fund's
start date.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JUNE 30, 1995 PAST 1 LIFE OF
YEAR FUND

Advisor Emerging Markets Income - Class B -4.44% -4.62%

Advisor Emerging Markets Income - Class B
(incl. contingent deferred sales charge) -7.90% -6.58%

JP Morgan Emerging Market Bond Index 10.94% n/a

Average General World Income Fund 10.61% n/a

Consumer Price Index 3.04% 2.95%

AVERAGE ANNUAL TOTAL RETURNS take Class B shares' actual (or 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
Fidelity AdvisoJP Morgan Emerging Market Bond Index
(JP00
03/31/94 10000.00 10000.00
04/30/94 10131.58 10005.00
05/31/94 10784.67 10695.35
06/30/94 10262.68 9834.37
07/31/94 10479.19 10076.30
08/31/94 11731.96 10796.75
09/30/94 12068.80 10902.56
10/31/94 11760.43 10594.02
11/30/94 11498.08 10702.08
12/31/94 10638.87 9989.32
01/31/95 9433.23 9643.69
02/28/95 8743.94 9141.25
03/31/95 8483.25 8882.55
04/30/95 9205.14 9836.54
05/31/95 9746.94 10703.14
06/30/95 9543.95 10910.78

$10,000 OVER LIFE OF FUND: Let's say you invested $10,000 in Fidelity
Advisor Emerging Markets Income Fund - Class B on March 31, 1994, shortly
after the fund started and paid the applicable contingent deferred sales
charge upon redemption at the end of the period. As the chart shows, by
June 30, 1995, the value of your investment would have fallen to $9,544 - a
4.56% decrease on your initial investment. For comparison, look at how the
JP Morgan Emerging Market Bond Index did over the same period. With
dividends reinvested, the same $10,000 investment would have grown to
$10,911 - a 9.11% increase.
UNDERSTANDING
PERFORMANCE
Many markets around the
globe offer the potential for
significant growth over time;
however, investing in foreign
markets means assuming
greater risks than investing in
the United States. Factors like
changes in a country's financial
markets, its local political and
economic climate, and the
fluctuating value of its currency
create these risks. For these
reasons an international fund's
performance may be more
volatile than a fund that invests
exclusively in the United
States.
(checkmark)
TOTAL RETURN COMPONENTS
SIX MONTHS JUNE 30, 1994
ENDED (COMMENCEMENT OF
JUNE 30, OPERATIONS) TO
1995 DECEMBER 31, 1994

Dividend return 4.05% 4.30%

Capital appreciation return -11.87% -2.34%

Total return -7.82% 1.96%

Dividends per share 6.17(cents) 36.14(cents) 67.54(cents)

Annualized dividend rate 9.04% 9.11% 7.28%

30-day annualized yield 9.78% - -

DIVIDENDS per share show the income paid by the class for a set period. The
annualized dividend rate is based on an average net asset value of $8.30
over the past month, $8.00 over the past six months, and $9.28 over the
past year, you can compare the class' income distributions over these three
periods. The 30-day annualized YIELD is a standard formula for all bond
funds based on the yields of the bonds in the fund, averaged over the past
30 days. This figure shows you the yield characteristics of the fund's
investments at the end of the period. It also helps you compare funds from
different companies on an equal basis. The offering share price used in the
calculation of the yield excludes the effect of Class B's contingent
deferred sales charge. If Fidelity had not reimbursed certain Class B
expenses during the period shown, the yield would have been 9.13%.
FUND TALK: THE MANAGER'S OVERVIEW

NOTE TO SHAREHOLDERS: On June 20, 1995, John Carlson (right photo) became
portfolio manager of Fidelity Advisor Emerging Markets Income Fund. The
following is an interview with Jonathan Kelly - who managed the fund during
most of the period covered by this report - with some comments from John
Carlson on changes in the fund, outlook and strategy:
Q. JONATHAN, HOW HAS THE FUND PERFORMED?
J.K. It has been a difficult period for the fund. For the six months ended
June 30, 1995, Fidelity Advisor Emerging Markets Income - Class A and Class
B shares had total returns of -7.67% and -7.82%, respectively. During the
same period, the average general world income fund returned 10.15%,
according to Lipper Analytical Services. The J.P. Morgan Emerging Market
Bond Index returned 9.23% for the same period. For the 12 months ended June
30, Class A and Class B returned -3.81% and -4.44%, respectively, while the
average general world income fund tracked by Lipper returned 10.61%. The
J.P. Morgan Emerging Market Bond Index returned 10.94% for the same period.
Q. WHY DID THE FUND UNDERPERFORM?
A. When comparing the fund's returns to the Lipper average, it's important
to note that many other funds in the group don't share the objective of
investing mainly in emerging markets. Instead, many invest in countries
with an investment-grade rating. Those countries performed well in the
first six months of the year. Emerging markets, on the other hand, were
staggered by the fallout from Mexico's devaluation of the peso in December
1994.
Q. YET THE EMERGING MARKET INDEX POSTED POSITIVE RETURNS FOR BOTH THE SIX-
AND 12-MONTH PERIODS, BUT THE FUND POSTED NEGATIVE RETURNS FOR BOTH . . .
A. Right. The index had positive returns because emerging markets rebounded
smartly starting in March. In order to explain the fund's relative
performance, let's take a step back. I took over the fund at the end of
January during a period of great turbulence in the markets. At that time,
the fund was aggressively positioned in a way that had helped it perform
quite well during parts of 1994. In the aftermath of the Mexican
devaluation and subsequent sell-offs in many emerging markets, the fund
suffered because it held some securities that quickly became illiquid - or
difficult to trade - as the markets were falling. In addition, shareholder
flows were volatile and in order to meet redemptions I initially maintained
a minimum 15% cash position that was later reduced to a minimum 10% cash
position. Over the period, I also reduced the fund's investments in some of
the more aggressive and less liquid securities. As a result of these two
factors, the fund was not able to take full advantage of the market
recovery beginning in mid-March.
Q. WHAT HELPED EMERGING MARKETS TURN AROUND?
A. Over long periods of time, the most important factor in emerging markets
is the perception of whether a country's creditworthiness is improving or
deteriorating. However, there are also periods of time when emerging
markets enter a liquidity-driven phase, when cash flows into or out of the
markets can affect debt payments. After Mexico devalued the peso, the
question was no longer, "Are long-term credit fundamentals improving?" but
rather, "Will I get paid tomorrow?" Three factors helped turn the situation
around. First, the precipitous fall in emerging market bond prices created
a dramatically oversold environment where value had become compelling.
Second, the external balance in Mexico adjusted much more quickly than
expected, so that the country changed from being a net importer of goods
to a net exporter. The trade surplus increased the country's supply of hard
currency, making it easier to repay debt. Finally, the U.S. bond market
rallied, helping the market for all long-duration assets, such as Brady
bonds - emerging market securities that are dollar-denominated and
partially backed by U.S. government bonds. I should add that the
re-election of President Menem in Argentina - who had run on a platform of
continued economic reform - and Poland's attainment of an investment-grade
rating from Moody's Investors Service also helped improve investor
sentiment regarding emerging markets.
Q. TURNING TO YOU, JOHN, WHAT CHANGES HAVE YOU MADE SINCE TAKING OVER THE
FUND?
J.C. I've added some Latin short-term, high-quality corporate securities to
the portfolio. At this stage in the liquidity cycle, these securities
represent good value. The lack of new issuance since the Mexican
devaluation and the demand from buyers crossing over from high-yield
markets should cause these securities to outperform. Beyond that, I'm
looking to broaden the universe of securities in the fund, creating more of
a balance among Latin America, Eastern Europe, Africa and Southeast Asia.
That will take us to places such as South Africa and Russia. I will also
take a critical look at local currencies. As always, the security selection
will be research-driven, backed by Fidelity's sovereign, corporate and
quantitative research staffs.
Q. WHAT'S YOUR OUTLOOK?
A. I believe there will be a continued increase in liquidity globally, with
a likelihood of lower interest rates and a relatively stronger flow of
funds into Latin America and out of Eastern Europe. More capital should
flow into the major markets - such as Mexico, Brazil and Argentina -
relative to smaller markets such as Ecuador or Panama. In my opinion, there
is also a strong likelihood of continued volatility in the Latin market and
relative stability in Eastern Europe.
FUND FACTS
GOAL: seeks a high level of
current income by investing
primarily in debt securities and
other instruments of issuers
in emerging markets. As a
secondary objective, the
fund seeks capital
appreciation.
START DATE: March 10, 1994
SIZE: as of June 30, 1995,
more than $44 million
MANAGER: Jonathan Kelly,
January 1995 to June 1995;
John Carlson, since June
1995, when he joined Fidelity
(checkmark)
JOHN CARLSON ON HIS
INVESTMENT APPROACH:
"I have a mosaic approach to
investing. That is, I build an
overall picture from many little
pieces of information. I start
by looking at what's
happening in developed
markets, including the actions
of the Federal Reserve
Board, the German
Bundesbank and the Bank of
Japan. These are the big
drivers globally. I layer in
what's happening regionally in
terms of trade and capital
flows. I then analyze each
country's monetary and fiscal
policy, paying particular
attention to the independence
of the central bank and the
strength of its currency.
Financial reserves, local
capital markets,
demographics, education
level and politics are among
some of the other variables
studied. Historical perspective
is also crucial to fully
comprehending a country in
terms of its social and
economic policies. Corporate
bonds are evaluated from the
bottom up, using research to
discern an issuer's ability to
meet its obligations. When
you put all of this together,
you get a comprehensive
picture of the world in terms of
financial flows and investment
opportunities."
INVESTMENT CHANGES

The charts below highlight two different aspects of the fund's investments:
the country where they were issued and their currency exposure. The top
countries in each table may differ because securities issued in one country
may be denominated in another country's currency, and because of the
effects of currency hedging.
TOP COUNTRIES AS OF JUNE 30, 1995
(EXCLUDING REPURCHASE AGREEMENTS) % OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
DECEMBER 31, 1994

Brazil 23.1 4.2

Argentina 16.8 16.2

Mexico 6.0 6.4

Bulgaria 4.3 10.8

Czech Republic 4.2 0

TOP COUNTRIES ARE BASED ON THE LOCATION OF THE ISSUER OF EACH SECURITY,
INDICATING WHERE THE FUND IS EXPOSED TO POLITICAL AND CREDIT RISKS. THE
FUND'S LARGEST POSITION AS OF JUNE 30, 1995, WAS IN SECURITIES OF BRAZILIAN
ISSUERS.
TOP CURRENCY EXPOSURES AS OF JUNE 30, 1995
(ESTIMATED, BY CURRENCY) % OF FUND'S % OF NET ASSETS
NET ASSETS 6 MONTHS AGO

U.S. dollar 89 82

Czech koruna 4 0

Thai baht 4 0

Indonesian rupiah 2 0

Philippine peso 1 0

THE U.S. DOLLAR EXPOSURE ABOVE INCLUDES THE EFFECTS OF FOREIGN INVESTMENTS
WHOSE CURRENCY RISK IS
FULLY HEDGED. THE CZECH KORUNA, AT APPROXIMATELY 4% OF ASSETS, WAS THE
FUND'S LARGEST FOREIGN CURRENCY
EXPOSURE AS OF JUNE 30, 1995.
AVERAGE YEARS TO MATURITY AS OF JUNE 30, 1995
DECEMBER 31, 1994

Years 12.2 8.6

AVERAGE YEARS TO MATURITY IS BASED ON THE AVERAGE TIME UNTIL PRINCIPAL
PAYMENTS ARE EXPECTED FROM EACH OF THE FUND'S BONDS, WEIGHTED BY DOLLAR
AMOUNT.
ASSET ALLOCATION
AS OF JUNE 30, 1995 AS OF DECEMBER 31, 1994
26
Row: 1, Col: 1, Value: 37.2
Row: 1, Col: 2, Value: 2.1
Row: 1, Col: 3, Value: 54.1
Row: 1, Col: 4, Value: 6.6
Row: 1, Col: 1, Value: 38.3
Row: 1, Col: 2, Value: 6.9
Row: 1, Col: 3, Value: 50.3
Row: 1, Col: 4, Value: 4.5
Corporate bonds 6.6%
Government
obligations 56.1%
Stocks 0.1%
Short-term and
other investments 37.2%
Corporate bonds 4.5%
Government
obligations 50.3%
Stocks 6.9%
Short-term and
other investments 38.3%
INVESTMENTS JUNE 30, 1995 (UNAUDITED)

Showing Percentage of Total Value of Investment in Securities

NONCONVERTIBLE BONDS - 6.6%
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) AMOUNT (B) (NOTE 1)
BRAZIL - 1.4%
Ceval Alimentos 10 3/4%, 7/11/96 (e) - $ 650,000 $ 646,750
COLOMBIA - 3.8%
Banco Commercial Columbia
8 5/8%, 6/2/00 (e) - 250,000 252,188
Centragas Transpotadora De Gas:
10.65%, 12/1/10 euro BBB- 600,000 619,500
10.65%, 12/1/10 (e) - 850,000 877,625
1,749,313
MEXICO - 1.4%
Grupo Condumex SA de CV 6 1/4%, 7/27/96 - 200,000 186,000
Grupo Televisa SA de CV 5.8125%, 4/7/96 (g) - 500,000 472,500
658,500
TOTAL NONCONVERTIBLE BONDS
(Cost $3,070,949) 3,054,563
FOREIGN GOVERNMENT OBLIGATIONS - 56.1% (H)
ARGENTINA - 16.8%
Argentina Republic:
BOCON 6.0625%, 4/1/01 (g) B1 1,438,462 897,355
Brady euro:
discount 6 7/8%, 3/31/23 (g) B1 2,000,000 1,147,500
par 5%, 3/31/23 (i) B1 9,500,000 4,524,375
7.3125%, 3/31/05 (g) BB- 1,900,000 1,166,125
7,735,355
BRAZIL - 21.7%
Brazil Federative Republic:
Brady:
capitalization bond 8%, 4/15/14 B1 3,485,340 1,712,173
eligible interest 7 1/4%, 4/15/06 (g) - 2,000,000 1,197,500
par euro 4 1/4%, 4/15/24 (i) - 6,250,000 2,773,438
par 4 1/4%, 4/15/24 (i) - 1,250,000 554,688
IDU euro 7.8125%, 1/1/01 (g) B1 4,607,500 3,709,038
9,946,837
FOREIGN GOVERNMENT OBLIGATIONS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) AMOUNT (B) (NOTE 1)
BULGARIA - 4.3%
Republic of Bulgaria Brady discount
7.5625%, 7/28/24 (g) - $ 4,000,000 $ 1,985,000
ECUADOR - 3.7%
Republic of Ecuador Brady:
discount 6 3/4%, 12/21/04 (e)(g) - 54,600 30,303
discount 7 1/4%, 2/28/25 (e)(g) - 730,000 361,350
par euro 3%, 2/28/25 (e)(i) - 375,000 120,938
past due interest (e)(f) - 2,000,000 595,000
past due interest 7 1/4%, 2/28/15 (e)(g) - 2,027,000 603,033
1,710,624
MEXICO - 4.6%
Mexican Government Brady
par 6 1/4%, 12/31/19 Ba3 3,500,000 2,126,250
Mexico Value Recovery (rights) (a) - 5,500,000 55
2,126,305
PANAMA - 1.7%
Republic of Panama euro 7 1/4%, 5/10/02 (g) - 1,000,000 760,000
POLAND - 3.3%
Polish Government Brady:
discount euro 7 1/8%, 10/27/24 (g) - 1,000,000 766,250
past due interest 3 1/4%, 10/27/14 (g) - 1,250,000 746,875
1,513,125
TOTAL FOREIGN GOVERNMENT OBLIGATIONS
(Cost $24,437,804) 25,777,246
COMMON STOCKS - 0.1%
SHARES
PHILIPPINES - 0.1%
International Container Terminal Services, Inc. (a)
(Cost $19,158) 33,255 23,112
PURCHASED BANK DEBT - 5.4%
PRINCIPAL VALUE
AMOUNT (B) (NOTE 1)
MOROCCO - 2.6%
Kingdom of Morocco loan participation
7 3/8%, 1/1/04 (g) $ 2,000,000 $ 1,175,000
RUSSIA - 2.8%
Bank for Foreign Economic Affairs of
the USSR (Vnesheconombank) loan
participation (a)(f) 4,000,000 1,295,000
TOTAL PURCHASED BANK DEBT
(Cost $2,439,563) 2,470,000
CERTIFICATES OF DEPOSIT - 3.1%
THAILAND - 3.1%
Krung Thai Bank PCL 11%, 12/4/95 THB 25,000,000 1,013,105
Thai Military Bank PCL 12 3/4%, 8/3/95 THB 10,000,000 405,550
TOTAL CERTIFICATES OF DEPOSIT
(Cost $1,419,565) 1,418,655
COMMERCIAL PAPER - 6.8%
CZECH REPUBLIC - 4.2%
Unilever NV
0%, 7/5/95 CSK 30,000,000 1,159,032
0%, 7/25/95 CSK 10,000,000 383,985
0%, 8/16/95 CSK 10,000,000 381,354
1,924,371
INDONESIA - 2.1%
Indah Kiat Pulp and Paper PT 0%, 7/24/95 (c) IDR 1,000,000 445,253
Tjiwi Kimia Pabrik Kertas PT 0%, 10/4/95 (c) IDR 1,200,000 515,880
961,133
THAILAND - 0.5%
Citibank Thailand 0%, 7/27/95 THB 6,250,000 251,701
TOTAL COMMERCIAL PAPER
(Cost $3,135,714) 3,137,205
REPURCHASE AGREEMENTS - 21.9%
MATURITY VALUE
AMOUNT (NOTE 1)
Investments in repurchase agreements
(U.S. Treasury obligations), in a joint
trading account at 6.15%, dated
6/30/95 due 7/3/95 $ 10,074,160 $ 10,069,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $44,591,753) $ 45,949,781
FORWARD FOREIGN CURRENCY CONTRACTS
AMOUNTS SETTLEMENT UNREALIZED
DATES VALUE GAIN/(LOSS)
CONTRACTS TO BUY
1,573,550 DEM 8/15/95 $ 1,141,171 $ (1,359)
12,787,300 JPY 8/15/95 152,036 (170)
TOTAL CONTRACTS TO BUY
(Payable amount $1,294,736) $ 1,293,207 (1,529)
THE VALUE OF CONTRACTS TO BUY AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 2.8%
CONTRACTS TO SELL
1,573,550 DEM 8/15/95 $ 1,141,171 (41,172)
12,787,300 JPY 8/15/95 152,036 (1,484)
TOTAL CONTRACTS TO SELL
(Receivable amount $1,250,551) $ 1,293,207 (42,656)
THE VALUE OF CONTRACTS TO SELL AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 2.8%
$ (44,185)
CURRENCY ABBREVIATIONS
CSK - Czech koruna
DEM - German deutsche mark
IDR - Indonesian rupiah
JPY - Japanese yen
THB - Thai baht
LEGEND
(1.) Non-income producing
(2.) Principal amount is stated in United States dollars unless otherwise
noted.
(3.) Principal amount in thousands.
(4.) Standard & Poor's Corporation credit ratings are used in the absence
of a rating by Moody's Investors Service, Inc.
(5.) 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 $3,487,187 or 7.8% of net
assets.
(6.) Security purchased on a delayed delivery basis (see Note 2 of Notes
to Financial Statements).
(7.) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(8.) Some foreign government obligations have not been individually rated
by S&P or Moody's. The ratings listed are assigned to securities by FMR,
the fund's investment adviser, based principally on S&P and Moody's ratings
of the sovereign credit of the issuing government.
(9.) Debt obligation initially issued at one coupon which converts to a
higher coupon at a specified date.
OTHER INFORMATION
The composition of long-term debt holdings as a percentage of total value
of investment in securities, is as follows (ratings are unaudited):
MOODY'S RATINGS S&P RATINGS
Aaa, Aa, A 0.0% AAA, AA, A 0.0%
Baa 0.0% BBB 1.4%
Ba 4.6% BB 4.2%
B 26.1% B 0.0%
Caa 0.0% CCC 0.0%
Ca, C 0.0% CC, C 0.0%
D 0.0%
For some foreign government obligations, FMR has assigned the ratings of
the sovereign credit of the issuing government. The percentage not rated by
either S&P or Moody's amounted to 34.4%. FMR has determined that unrated
debt securities that are lower quality account for 19.6% of the total value
of investment in securities.
INCOME TAX INFORMATION
At June 30, 1995, the aggregate cost of investment securities for income
tax purposes was $44,601,006. Net unrealized appreciation aggregated
$1,348,775, of which $1,943,191 related to appreciated investment
securities and $594,416 related to depreciated investment securities.
The fund has elected to defer to its fiscal year ending December 31, 1995
$758,000 of losses recognized during the period November 1, 1994 to
December 31, 1994.
INDUSTRY DIVERSIFICATION
As a Percentage of Total Value of
Investment in Securities (Unaudited)
Basic Industries 2.2%
Finance 5.5
Government Obligations 56.1
Media & Leisure 1.0
Nondurables 4.2
Purchased Bank Debt 5.4
Repurchase Agreements 21.9
Technology 0.4
Utilities 3.3
100.0%
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
JUNE 30, 1995 (UNAUDITED)

ASSETS

Investment in securities, at value (including repurchase $ 45,949,781
agreements of $10,069,000) (cost $44,591,753) -
See accompanying schedule

Cash 1,015,243

Receivable for investments sold 1,965,089

Interest receivable 790,781

Receivable from investment adviser for expense 11,787
reductions

TOTAL ASSETS 49,732,681

LIABILITIES

Payable for investments purchased $ 2,657,279
Regular delivery

Delayed delivery 1,920,000

Unrealized depreciation on foreign currency contracts 44,185

Payable for closed foreign currency contracts 551

Distributions payable 13,187

Accrued management fee 26,651

Distribution fees payable 13,513

Other payables and accrued expenses 103,492

TOTAL LIABILITIES 4,778,858

NET ASSETS $ 44,953,823

Net Assets consist of:

Paid in capital $ 52,879,764

Distributions in excess of net investment income (565,445)

Accumulated undistributed net realized gain (loss) on (8,674,320)
investments and foreign currency transactions

Net unrealized appreciation (depreciation) on 1,313,824
investments and assets and liabilities in foreign
currencies

NET ASSETS $ 44,953,823

CALCULATION OF MAXIMUM OFFERING PRICE $8.37
CLASS A:
NET ASSET VALUE, and redemption price per share
($37,384,872 (divided by) 4,463,901 shares)

Maximum offering price per share (100/95.25 of $8.37) $8.79

CLASS B: $8.39
NET ASSET VALUE, offering price and redemption price per
share ($7,568,951 (divided by) 902,223 shares) A

</TABLE>

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

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED JUNE 30, 1995 (UNAUDITED)

INVESTMENT INCOME $ 1,968,531
Interest

EXPENSES

Management fee $ 124,848

Transfer agent fees - Class A 57,227

Transfer agent fees - Class B 12,352

Distribution fees - Class A 37,159

Distribution fees - Class B 28,734

Accounting fees and expenses 22,501

Non-interested trustees' compensation 74

Custodian fees and expenses 20,293

Registration fees - Class A 12,426

Registration fees - Class B 10,938

Audit 22,005

Legal 645

Reports to shareholders 1,158

Miscellaneous 293

Total expenses before reductions 350,653

Expense reductions (65,098) 285,555

NET INVESTMENT INCOME 1,682,976

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

Investment securities (8,051,221)

Foreign currency transactions 98,327 (7,952,894)

Change in net unrealized appreciation (depreciation) on:

Investment securities 4,722,541

Assets and liabilities in foreign currencies (139,713) 4,582,828

NET GAIN (LOSS) (3,370,066)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ (1,687,090)
FROM OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS MARCH 10, 1994
ENDED (COMMENCEMENT
JUNE 30, OF OPERATIONS) TO
1995 DECEMBER 31,
(UNAUDITED) 1994

INCREASE (DECREASE) IN NET ASSETS

Operations $ 1,682,976 $ 1,149,574
Net investment income

Net realized gain (loss) (7,952,894) 70,512

Change in net unrealized appreciation (depreciation) 4,582,828 (3,269,004)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING (1,687,090) (2,048,918)
FROM OPERATIONS

Distributions to shareholders (1,449,843) (757,141)
From net investment income
Class A

Class B (257,433) (58,330)

In excess of net investment income - (322,864)
Class A

Class B - (24,873)

From net realized gain - (44,276)
Class A

Class B - (4,694)

In excess of net realized gain - (1,148,710)
Class A

Class B - (121,779)

TOTAL DISTRIBUTIONS (1,707,276) (2,482,667)

Share transactions - net increase (decrease) 13,285,312 39,594,462

TOTAL INCREASE (DECREASE) IN NET ASSETS 9,890,946 35,062,877

NET ASSETS

Beginning of period 35,062,877 -

End of period (including distributions in excess of net $ 44,953,823 $ 35,062,877
investment income of $(565,445) and $(541,145),
respectively)

</TABLE>

FINANCIAL HIGHLIGHTS CLASS A

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR ENDED
ENDED DECEMBER
JUNE 30, 1995 31,

(UNAUDITED) 1994 D

SELECTED PER-SHARE DATA

Net asset value, beginning of period $ 9.520 $ 10.000

Income from Investment Operations

Net investment income .431 .356

Net realized and unrealized gain (loss) on investments (1.188) (.073)

Total from investment operations (.757) .283

Less Distributions

From net investment income (.393) (.353)

In excess of net investment income - (.150)

From net realized gain - (.010)

In excess of net realized gain - (.250)

Total distributions (.393) (.763)

Net asset value, end of period $ 8.370 $ 9.520

TOTAL RETURN B, C (7.67)% 2.47%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 37,385 $ 30,029

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

Ratio of expenses to average net assets before expense 1.81% A 2.15%
reductions A

Ratio of net investment income to average net assets 9.68% A 6.60%
A

Portfolio turnover 249% A 354%
A

</TABLE>

A ANNUALIZED
B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN (SEE NOTE 6 OF NOTES TO FINANCIAL
STATEMENTS).
C TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED.
D FOR THE PERIOD MARCH 10, 1994 (COMMENCEMENT OF SALES OF CLASS A SHARES)
TO DECEMBER 31, 1994.
FINANCIAL HIGHLIGHTS CLASS B

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR ENDED
ENDED DECEMBER
JUNE 30, 1995 31,

(UNAUDITED) 1994 E

SELECTED PER-SHARE DATA

Net asset value, beginning of period $ 9.520 $ 9.700

Income from Investment Operations

Net investment income .419 .167

Net realized and unrealized gain (loss) on investments (1.188) .227

Total from investment operations (.769) .394

Less Distributions

From net investment income (.361) (.220)

In excess of net investment income - (.094)

From net realized gain - (.010)

In excess of net realized gain - (.250)

Total distributions (.361) (.574)

Net asset value, end of period $ 8.390 $ 9.520

TOTAL RETURN B, C (7.82)% 3.67%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 7,569 $ 5,034

Ratio of expenses to average net assets 2.25% A 2.25% A

Ratio of expenses to average net assets before expense 2.60% A, 2.60% A,
reductions D D

Ratio of net investment income to average net assets 8.92% A 5.86% A

Portfolio turnover 249% A 354% A

</TABLE>

A ANNUALIZED
B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN (SEE NOTE 6 OF NOTES TO FINANCIAL
STATEMENTS).
C TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
D LIMITED IN ACCORDANCE WITH A STATE EXPENSE LIMITATION.
E FOR THE PERIOD JUNE 30, 1994 (COMMENCEMENT OF SALES OF CLASS B SHARES) TO
DECEMBER 31, 1994.
NOTES TO FINANCIAL STATEMENTS
For the period ended June 30, 1995 (Unaudited)

1. SIGNIFICANT ACCOUNTING
POLICIES.
Fidelity Advisor Emerging Markets Income Fund (the fund) is a fund of
Fidelity Advisor Series VIII (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 and Class B shares, each of which has equal rights
as to assets and voting privileges. Each class has exclusive voting rights
with respect to its distribution plan. Investment income, realized and
unrealized capital gains and losses, and the common expenses of the fund
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,
registration, and certain other class-specific fees and expenses. On March
16, 1995, creation of an Institutional Class of shares was approved by the
Board of Trustees. Offering of the new class commenced on July 3, 1995.
The following summarizes the significant accounting policies of the funds:
SECURITY VALUATION. Securities are valued based upon a computerized matrix
system and/or appraisals by a pricing service, both of which consider
market transactions and dealer-supplied valuations. Short-term securities
maturing within sixty days of their purchase date are valued either at
amortized cost or original cost plus accrued interest, both of which
approximate current value. Securities (including restricted securities) for
which market quotations are not readily available are valued at their fair
value as determined in good faith under consistently applied procedures
under the general supervision of the Board of Trustees.
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.
Net realized gains and losses on foreign currency transactions represent
net gains and losses from sales and maturities of forward currency
contracts , disposition of foreign currencies, currency gains and losses
realized between the trade and settlement dates on securities transactions,
and the difference between the amount of net investment income accrued and
the U.S. dollar amount actually received. 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
1. SIGNIFICANT ACCOUNTING
POLICIES - CONTINUED
INCOME TAXES - CONTINUED
not subject to U.S. federal income taxes to the extent that it distributes
substantially all of its taxable income for its fiscal year. The fund may
be subject to foreign taxes on income, gains on investments or currency
repatriation. The fund accrues such taxes as applicable. The schedule of
investments includes information regarding income taxes under the caption
"Income Tax Information."
INVESTMENT INCOME. Interest income, which includes accretion of original
issue discount, is accrued as earned. Interest 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 between the
funds in the trust.
DISTRIBUTIONS TO SHAREHOLDERS.
Distributions are recorded on the ex-dividend date. Income dividends are
declared separately for each class, while capital gain distributions are
declared at the fund level and allocated to each class on a pro rata basis
based on the number of shares held by each class on the ex-dividend date.
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 foreign
currency transactions, market discount and losses deferred due to wash
sales.
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital and may
affect the per-share allocation between net investment income and realized
and unrealized gain (loss). Undistributed net investment income (loss) 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. Distributions in
excess of net investment income and accumulated undistributed net realized
gain (loss) on investments and foreign currency transactions may include
temporary book and tax basis differences that will reverse in a subsequent
period. Any taxable income or gain remaining at fiscal year end is
distributed in the following year.
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.
FORWARD FOREIGN CURRENCY
CONTRACTS. The fund may use foreign currency contracts to facilitate
transactions in foreign securities and to manage the fund's currency
exposure. Contracts to buy generally are used to acquire exposure to
foreign currencies, while contracts to sell are used to hedge the fund's
investments against currency
2. OPERATING POLICIES -
CONTINUED
FORWARD FOREIGN CURRENCY
CONTRACTS - CONTINUED
fluctuations. Also, a contract to buy or sell can offset a previous
contract. These contracts involve market risk in excess of the unrealized
gain or loss reflected in the fund's Statement of Assets and Liabilities.
The U.S. dollar value of the currencies the fund has committed to buy or
sell is shown in the schedule of investments under the caption "Forward
Foreign Currency Contracts." This amount represents the aggregate exposure
to each currency the fund has acquired or hedged through currency contracts
at period end. 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 forward foreign currency contracts is determined
using forward currency exchange rates supplied by a quotation service.
Purchases and sales of forward foreign currency contracts having the same
settlement date and broker are offset and any realized gain (loss) is
recognized on the date of offset; otherwise, gain (loss) is recognized on
settlement date. Contracts that have been offset with different
counterparties are reflected as both a contract to buy and a contract to
sell in the schedule of investments under the caption "Forward Foreign
Currency Contracts."
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, 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 that mature in
60 days or less from the date of purchase, and are collateralized by U.S.
Treasury or Federal Agency obligations.
REPURCHASE AGREEMENTS. The fund, through its custodian, receives delivery
of the underlying securities, whose market value is required to be at least
102% of the resale price at the time of purchase. FMR, the fund's
investment adviser, is responsible for determining that the value of these
underlying securities remains at least equal to the resale price.
DELAYED DELIVERY TRANSACTIONS.
The fund may purchase or sell securities on a when-issued or forward
commitment basis. Payment and delivery may take place a month or more after
the date of the transaction. The price of the underlying securities and the
date when the securities will be delivered and paid for are fixed at the
time the transaction is negotiated. The market value of the securities
purchased or sold on a when-issued or forward commitment basis are
identified as such in the fund's schedule of investments. The fund may
receive compensation for interest forgone in the purchase of a delayed
delivery security. With respect to purchase commitments, the fund
identifies securities as segregated in its custodial records with a value
at least equal to the amount of the commitment. Losses may arise due to
changes in the market value of the underlying securities or if the
counterparty does not perform under the contract.
3. JOINT TRADING ACCOUNT.
At the end of the period, the fund had 20% or more of its total investments
in repurchase agreements through a joint trading account. These repurchase
agreements were with entities whose creditworthiness has been reviewed and
found satisfactory by FMR. The repurchase agreements were dated June 30,
1995 and due July 3, 1995. The maturity values of the joint trading account
investments were $10,074,160 at 6.15%. The investments in repurchase
agreements through the joint trading account are summarized as follows:
SUMMARY OF JOINT TRADING
Number of dealers or banks 22
Maximum amount with one dealer or bank 17.1%
Aggregate principal amount of agreements $15,088,144,000
Aggregate maturity amount of agreements $15,095,872,000
Aggregate market value of collateral $15,428,420,000
Coupon rates of collateral 0.0% to 13 3/4%
Maturity dates of collateral 7/31/95 to 2/15/25
4. PURCHASES AND SALES
OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $38,502,259 and $34,021,418, respectively.
5. 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 .1200% to .3700% for the period. 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. The annual individual fund fee rate is .55%. For
the period, the management fee was equivalent to an annualized rate of .70%
of average net assets.
SUB-ADVISER FEE. FMR, on behalf of the fund, entered into sub-advisory
agreements with affiliates of FMR. In addition, one of the sub-advisers,
Fidelity International Investment Advisors (FIIA), entered into a
sub-advisory agreement with its subsidiary, Fidelity International
Investment Advisors (U.K.) Limited (FIIAL U.K.). Under the sub-advisory
arrangements, FMR may receive investment advice and research services and
may grant the sub-advisers investment management authority to buy and sell
securities. FMR pays its sub-advisers either a portion of its management
fee
5. FEES AND OTHER TRANSACTIONS WITH AFFILIATES -
CONTINUED
SUB-ADVISER FEE - CONTINUED
or a fee based on costs incurred for these services. FIIA pays FIIAL U.K. a
fee based on costs incurred for either service.
DISTRIBUTION AND SERVICE PLAN. In accordance with Rule 12b-1 of the 1940
Act, the Trustees have adopted separate distribution plans with respect to
the fund's Class A shares ("Class A Plan") and Class B shares ("Class B
Plan"), pursuant to which the fund pays Fidelity Distributors Corporation
(FDC), an affiliate of FMR, a distribution and service fee. This fee is
based on annual rates of .25% and 1.00% (of which .75% represents a
distribution fee and .25% represents a shareholder service fee) of the
average net assets of the Class A and Class B shares, respectively. For the
period, the fund paid FDC $37,159 and $28,734 under the Class A Plan and
Class B Plan, respectively, of which $37,159 and $7,184 were paid to
securities dealers, banks and other financial institutions for the
distribution of Class A and Class B shares, and providing shareholder
support services.
In addition, FMR or FDC may use its resources to pay administrative and
promotional expenses related to the sale of the fund's shares. Subject to
the approval of the Board of Trustees, the Plans also authorize payments to
third parties that assist in the sale of the fund's shares or render
shareholder support services. No payments were made under the Plans during
the period.
SALES LOAD. FDC receives a front-end sales charge of up to 4.75% for
selling Class A shares of the fund. For the period, FDC received sales
charges of $189,282 on sales of Class A shares of the fund, of which
$142,733 was paid to securities dealers, banks, and other financial
institutions. FDC also receives the proceeds of a contingent deferred sales
charge levied on Class B share redemptions occurring within five years of
purchase. The charge is based on declining rates which range from 4% to 1%
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. For the period, FDC received contingent deferred sales
charges of $4,035 on Class B share redemptions from the fund. When Class B
shares are sold, FDC pays commissions from its own resources to dealers
through which the sales are made.
TRANSFER AGENT FEES. State Street Bank and Trust Company (SSB) is the
transfer, dividend disbursing, and shareholder servicing agent for the
fund's Class A shares, while Fidelity Investments Institutional Operations
Company (FIIOC), an affiliate of FMR (collectively, with SSB, referred to
as the Transfer Agents) acts in that capacity for the fund's Class B
shares. Effective January 1, 1995, the Board of Trustees approved a revised
transfer agent contract pursuant to which the Transfer Agents receive
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. Under the prior transfer agent contract, the Transfer Agents
5. FEES AND OTHER TRANSACTIONS WITH AFFILIATES -
CONTINUED
TRANSFER AGENT FEE - CONTINUED
received fees based on the type, size, number of accounts and the number of
transactions made by shareholders. With respect to Class A shares, SSB has
delegated certain transfer, dividend paying, and shareholder services to
FIIOC for which FIIOC receives its allocable share of all such fees. FIIOC
pays for typesetting, printing and mailing of all shareholder reports,
except proxy statements.
ACCOUNTING FEES. FSC 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.
6. EXPENSE REDUCTIONS.
FMR voluntarily agreed to reimburse the fund's operating expenses
(excluding interest, taxes, brokerage commissions and extraordinary
expenses) above an annual rate of 1.50% and 2.25% of average net assets for
Class A and Class B, respectively. For the period, the reimbursement
reduced the expenses by $46,315 and $18,783 for Class A and Class B,
respectively.
7. CREDIT RISK
The fund's relatively large investment in countries with limited or
developing capital markets may involve greater risks than investments in
more developed markets and the prices of such investments may be volatile.
The yields of emerging market debt obligations reflect, among other things,
perceived credit risk. The consequences of political, social or economic
changes in these markets may have disruptive effects on the market prices
of the fund's investments and the income they generate, as well as the
fund's ability to repatriate such amounts.
8. SHARE TRANSACTIONS.
Share transactions for both classes were as follows:
SHARES DOLLARS
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED JUNE 30,
DECEMBER 31, JUNE 30, DECEMBER 31,
1995 1994 A, B 1995 1994 A, B
CLASS A
Shares sold 3,249,110 5,699,727 $ 26,060,809 $ 60,093,354
Reinvestment of distributions 162,064 203,573 1,300,747 2,117,041
Shares redeemed (2,103,100) (2,747,473) (17,073,410) (28,236,220)
Net increase (decrease) 1,308,074 3,155,827 $ 10,288,146 $ 33,974,175
CLASS B
Shares sold 430,966 545,353 $ 3,461,086 $ 5,812,924
Reinvestment of distributions 28,355 18,090 227,842 187,018
Shares redeemed (85,700) (34,841) (691,762) (379,655)
Net increase (decrease) 373,621 528,602 $ 2,997,166 $ 5,620,287
A SHARE TRANSACTIONS FOR THE CLASS A ARE FOR THE PERIOD MARCH 10, 1994
(COMMENCEMENT OF SALE OF SHARES) TO DECEMBER 31, 1994.
B SHARE TRANSACTIONS FOR THE CLASS B ARE FOR THE PERIOD JUNE 30, 1994
(COMMENCEMENT OF SALE OF SHARES) TO DECEMBER 31, 1994.

INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Robert A. Lawrence, Vice President
Arthur S. Loring, Secretary
Stephen P. Jonas, Treasurer
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox *
Phyllis Burke Davis *
Richard J. Flynn *
Edward C. Johnson 3d
E. Bradley Jones *
Donald J. Kirk *
Peter S. Lynch
Edward H. Malone *
Marvin L. Mann *
Gerald C. McDonough *
Thomas R. Williams *
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENTS
State Street Bank and Trust Company
Boston, MA - Class A
Fidelity Investments Institutional
Operations Company
Boston, MA - Class B
CUSTODIAN
Chase Manhattan Bank, N.A.
New York, NY
* INDEPENDENT TRUSTEES
GROWTH FUNDS
Fidelity Advisor Overseas Fund
Fidelity Advisor Equity Portfolio Growth
Fidelity Advisor Global Resources Fund
Fidelity Advisor Growth
Opportunities Fund
Fidelity Advisor Strategic
Opportunities Fund
GROWTH AND INCOME FUNDS
Fidelity Advisor Equity Income Fund
Fidelity Advisor Income & Growth Fund
INCOME FUNDS
Fidelity Advisor Emerging Markets Income Fund
Fidelity Advisor High Yield Fund
Fidelity Advisor Strategic Income Fund
Fidelity Advisor Government Investment Fund
Fidelity Advisor Limited Term Bond Fund
Fidelity Advisor Short Fixed-Income Fund
TAX-EXEMPT FUNDS
Fidelity Advisor High Income
Municipal Fund
Fidelity Advisor Limited Term Tax-Exempt Fund
Fidelity Advisor Short-Intermediate Tax-Exempt Fund
MONEY MARKET FUNDS
Daily Money Fund: Money Market Portfolio
Daily Money Fund: U.S. Treasury Portfolio
Daily Tax-Exempt Money Fund
(REGISTERED TRADEMARK)
(registered trademark)

(2_FIDELITY_LOGOS)FIDELITY ADVISOR
(registered trademark)

STRATEGIC INCOME -
CLASS A & CLASS B
SEMIANNUAL REPORT
JUNE 30, 1995
CONTENTS

PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.

PERFORMANCE 4 How the fund has done over time.

FUND TALK 10 The manager's review of fund
performance, strategy and outlook.

INVESTMENT CHANGES 13 A summary of the fund's
investments.

INVESTMENTS 14 A complete list of the fund's
investments with their market
values.

FINANCIAL STATEMENTS 26 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.

NOTES 31 Notes to the financial statements.

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, THE
FEDERAL RESERVE BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO
INVESTMENT RISK, INCLUDING THE POSSIBLE LOSS OF PRINCIPAL.
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

DEAR SHAREHOLDER:
Although there have been positive market indications so far in 1995, no one
can predict what lies ahead for investors. Last year, stocks posted
below-average returns and bonds had one of the worst years in history. This
downturn followed a period in which the investing environment was generally
very positive.
These market ups and downs are a normal part of investing, and there are
some basic principles that are helpful for investors to remember in
different types of markets.
Keeping in mind that the effects of interest rate changes on your bond
investments will only be "paper" gains or losses unless you sell your
shares, staying in your bond fund may be appropriate if your investment
horizon is at least a year or more. The longer your investing time frame,
the more likely it is that you will retain your principal investment
through both up and down markets. For example, a 10-year time frame, such
as saving for a college education, enables you to weather these ups and
downs in a long-term fund, which has higher potential returns. An
intermediate-length fund could be appropriate if your investment horizon is
two to four years, and a short-term bond fund could be the right choice if
you need your money in one or two years.
If your time horizon is less than a year, you might want to consider moving
some of your bond investment into a money market fund, which seeks income
and a stable share price by investing in high-quality, short-term
investments. Of course, there is no assurance that a money market fund will
achieve its goal, and it is important to remember that money market funds
are not insured or guaranteed by any agency of the U.S. government.
No matter what your investment horizon or portfolio diversity, it makes
good sense to follow a regular investment plan - investing a certain amount
of money at the same time each month or quarter - and to review your
portfolio periodically. A periodic investment plan will not, of course,
assure a profit or protect against a loss.
Remember to contact your investment professional if you need help with your
investments.
Best regards,
Edward C. Johnson 3d
ADVISOR STRATEGIC INCOME FUND - CLASS A
PERFORMANCE: THE BOTTOM LINE

Advisor Strategic Income - Class A 13.62% 13.82%

Advisor Strategic Income - Class A
(incl. max. 4.75% sales charge) 8.23% 8.41%

Merrill Lynch High Yield Master Index 12.76% 11.01%

Average General Bond Fund 10.69% 9.42%

Consumer Price Index 1.87% 2.01%

CUMULATIVE TOTAL RETURNS show Class A's performance in percentage terms
over a set period - in this case, six months or since the fund began on
October 31, 1994. 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 those of the Merrill Lynch
High Yield Master Index - a broad gauge of the high yield bond market. To
measure how Class A's performance stacked up against its peers, you can
compare it to the average general bond fund, which reflects the performance
of 67 funds with similar objectives tracked by Lipper Analytical Services
over the past six months. These benchmarks include reinvested dividends and
capital gains, if any, and exclude the effects of sales charges. Comparing
Class A's performance to the consumer price index (CPI) helps show how the
class did compared to inflation. (The CPI returns begin on the month end
closest to the fund's start date).
AVERAGE ANNUAL TOTAL RETURNS will appear once the fund is a year old.

$10,000 OVER LIFE OF FUND
Fidelity Advisor High Yield Master
10/31/94 9525.00 10000.00
11/30/94 9572.77 9914.93
12/31/94 9541.61 9845.16
01/31/95 9648.07 9984.27
02/28/95 9875.95 10295.79
03/31/95 10019.24 10439.08
04/30/95 10395.11 10683.49
05/31/95 10786.33 11017.27
06/30/95 10841.49 11101.42

$10,000 OVER LIFE OF FUND: Let's say you invested $10,000 in Fidelity
Advisor Strategic Income Fund - Class A on October 31, 1994, when the fund
started, and paid the maximum 4.75% sales charge. As the chart shows, by
June 30, 1995, the value of your investment would have grown to $10,841 -
an 8.41% increase on your initial investment. For comparison, look at how
the Merrill Lynch High Yield Master Index did over the same period. With
dividends reinvested, the same $10,000 investment would have grown to
$11,101 - an 11.01% increase.
UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. Bond prices, for
example, generally move in
the opposite direction of
interest rates. In turn, the
share price, return, and yield
of a fund that invests in
bonds will vary. That means
if you sell your shares during
a market downturn, you might
lose money. But if you can
ride out the market's ups and
downs, you may have a gain.
(checkmark)
TOTAL RETURN COMPONENTS
SIX MONTHS OCTOBER 31, 1994
ENDED (COMMENCEMENT OF
JUNE 30, 1995 OPERATIONS) TO
DECEMBER 31, 1994

Dividend return 4.04% 0.97%

Capital appreciation return 9.58% -0.80%

Total return 13.62% 0.17%

DIVIDEND returns and capital appreciation returns are both part of a class'
total return. A dividend return reflects the actual dividends paid by the
class. A capital appreciation return reflects both the amount paid by the
class to shareholders as capital gain distributions and changes in the
class' share price. Both returns assume the dividends or gains are
reinvested and exclude the effects of sales charges.
DIVIDENDS AND YIELD
PERIOD ENDED JUNE 30, 1995 PAST PAST 6 LIFE OF
MONTH MONTHS CLASS

Dividends per share 6.56(cents) 37.99(cents) 47.75(cents)

Annualized dividend rate 7.35% 7.39% 4.65%

30-day annualized yield 7.69% - -

DIVIDENDS per share show the income paid by the class for a set period. The
annualized dividend rate is based on an average net asset value of $10.86
over the past month, $10.36 over the past six months, and $10.27 over the
life of class. The 30-day annualized YIELD is a standard formula for all
bond funds based on the yields of the bonds in the fund, averaged over the
past 30 days. This figure shows you the yield characteristics of the fund's
investments at the end of the period. It also helps you to compare funds
from different companies on an equal basis. The offering share price used
in the calculation of the yield includes the effect of Class A's maximum
4.75% sales charge. If Fidelity had not reimbursed certain Class A expenses
during the period shown, the yield would have been 7.46%.
ADVISOR STRATEGIC INCOME FUND - CLASS B
PERFORMANCE: THE BOTTOM LINE

Advisor Strategic Income - Class B 13.33% 13.26%

Advisor Strategic Income - Class B
(incl. 4.00% contingent deferred sales charge) 9.33% 9.26%

Merrill Lynch High Yield Master Index 12.76% 11.01%

Average General Bond Fund 10.69% 9.42%

Consumer Price Index 1.87% 2.01%

CUMULATIVE TOTAL RETURNS show Class B's performance in percentage terms
over a set period - in this case, six months or since the fund began on
October 31, 1994. 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 those of the Merrill Lynch
High Yield Master Index - a broad gauge of the high yield bond market. To
measure how Class B's performance stacked up against its peers, you can
compare it to the average general bond fund, which reflects the performance
of 67 funds with similar objectives tracked by Lipper Analytical Services
over the past six months. These benchmarks include reinvested dividends and
capital gains, if any, and exclude the effects of sales charges. Comparing
Class B's performance to the consumer price index (CPI) helps show how the
class did compared to inflation. (The CPI returns begin on the month end
closest to the fund's start date.)
AVERAGE ANNUAL TOTAL RETURNS will appear once the fund is a year old.
$10,000 OVER LIFE OF FUND
Fidelity Advisor Master (J0A0)(ML02)
10/31/94 10000.00 10000.00
11/30/94 10045.19 9914.93
12/31/94 9993.77 9845.16
01/31/95 10109.93 9984.27
02/28/95 10342.97 10295.79
03/31/95 10496.27 10439.08
04/30/95 10883.14 10683.49
05/31/95 11285.68 11017.27
06/30/95 10926.35 11101.42

$10,000 OVER LIFE OF FUND: Let's say you invested $10,000 in Fidelity
Advisor Strategic Income Fund - Class B on October 31, 1994, when the fund
started and paid the maximum 4% contingent deferred sales charge upon
redemption at the end of the period. As the chart shows, by June 30, 1995,
the value of your investment would have grown to $10,926 - a 9.26% increase
on your initial investment. For comparison, look at how the Merrill Lynch
High Yield Master Index did over the same period. With dividends
reinvested, the same $10,000 investment would have grown to $11,101 - an
11.01% increase.
UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. Bond prices, for
example, generally move in
the opposite direction of
interest rates. In turn, the
share price, return, and yield
of a fund that invests in
bonds will vary. That means if
you sell your shares during a
market downturn, you might
lose money. But if you can
ride out the market's ups and
downs, you may have a gain.
(checkmark)
TOTAL RETURN COMPONENTS
SIX MONTHS OCTOBER 31, 1994
ENDED (COMMENCEMENT OF
JUNE 30, 1995 OPERATIONS) TO
DECEMBER 31, 1994

Dividend return 3.64% 0.84%

Capital appreciation return 9.69% -0.90%

Total return 13.33% -0.06%

DIVIDEND returns and capital appreciation returns are both part of a class'
total return. A dividend return reflects the actual dividends paid by the
class. A capital appreciation return reflects both the amount paid by the
class to shareholders as capital gain distributions and changes in the
class' share price. Both returns assume the dividends or gains are
reinvested and exclude the effects of sales charges.
DIVIDENDS AND YIELD
PERIOD ENDED JUNE 30, 1995 PAST PAST 6 LIFE OF
MONTH MONTHS CLASS

Dividends per share 5.92(cents) 34.27(cents) 42.66(cents)

Annualized dividend rate 6.63% 6.67% 4.15%

30-day annualized yield 7.31% - -

DIVIDENDS per share show the income paid by the class for a set period. The
annualized dividend rate is based on an average net asset value of $10.87
over the past month, $10.36 over the past six months, and $10.27 over the
life of class. The 30-day annualized YIELD is a standard formula for all
bond funds based on the yields of the bonds in the fund, averaged over the
past 30 days. This figure shows you the yield characteristics of the fund's
investments at the end of the period. It also helps you compare funds from
different companies on an equal basis. The offering share price used in the
calculation of the yield excludes the effect of Class B's contingent
deferred sales charge. If Fidelity had not reimbursed certain Class B
expenses during the period shown, the yield would have been 7.10%.
FUND TALK: THE MANAGER'S OVERVIEW

An interview with Donald Taylor, Portfolio Manager of Fidelity Advisor
Strategic Income Fund
Q. DON, HOW HAS THE FUND PERFORMED DURING THE PAST SIX MONTHS?
A. It has done very well. For the six months ended June 30, 1995, Fidelity
Advisor Strategic Income - Class A and Class B shares had total returns of
13.62% and 13.33%, respectively. During the same period, the average
general bond fund tracked by Lipper Analytical Services returned 10.69%.
Since the fund's inception on October 31, 1994, Class A and Class B
returned 13.82% and 13.26%, respectively, while the average general bond
fund tracked by Lipper returned 9.42%
Q. WHAT FACTORS HELPED THE FUND'S PERFORMANCE?
A. The fund is invested in certain asset classes that did well during the
period. It benefited from its exposure to emerging markets, which rebounded
starting in March. Furthermore, the fund's high-yield investments -
including holdings in Revlon and American Standard - performed
significantly better than the high-yield market as a whole during the
period. In addition, the fund benefited from having currency exposure in
its investments in non-dollar-denominated bonds in developed markets
outside of the U.S. Returns for American investors were increased by the
drop in the dollar's value we saw during much of the six-month period, as
most bond markets in the developed world rallied during the period.
Q. BEFORE WE GET INTO THE SPECIFICS CONCERNING THE PAST SIX MONTHS, CAN YOU
REVIEW FOR US HOW THE FUND IS SET UP?
A. Sure. The fund is trying to find opportunities in a variety of
fixed-income categories that often have different returns. There are three
main categories that the fund invests in: U.S. government securities,
including U.S. agency and mortgage-backed securities; foreign fixed-income
securities, including those in emerging markets; and U.S. corporate
securities. The corporate issues for the most part will be lower-quality
high-yield bonds, also called junk bonds. Of course, the junk bonds and
emerging market securities involve greater risks than higher quality bonds
or U.S. securities. The thrust of the strategy is to establish diversity
within the portfolio. In addition, I use Fidelity's research capabilities
to find opportunities to add value within each sector, by targeting certain
securities, companies, countries or maturities at different times.
Q. LET'S TALK ABOUT EMERGING MARKETS . . .
A. As you know, many of these markets suffered severe downturns starting in
December 1994, when Mexico devalued the peso in an attempt to shore up the
dwindling foreign exchange reserves of the nation's central bank. While
these markets have been extremely volatile, they hit bottom in the
beginning of March, and long-term values there have been compelling. Bonds
in Brazil and Argentina, for example, have credit spreads 10% to 13% higher
than U.S. Treasuries, and the fund is committed to capturing potential
long-term value by riding out short-term corrections.
Q. HOW ABOUT THE HIGH-YIELD MARKET?
A. This market has become more correlated with the Treasury market, because
bonds within it are generally of a higher quality than five or six years
ago. At the same time, it still offers plenty of opportunity to find value.
My main focus is to use Fidelity's research to identify improving credit
stories, to find, for example, B-rated bonds that are on their way to
becoming Ba-rated, but are still priced like B-rated bonds.
Q. HIGH-YIELD BONDS ARE PRETTY DEPENDENT ON CORPORATE EARNINGS. ARE YOU
CONCERNED ABOUT THIS SECTOR, GIVEN THE FACT THAT THE ECONOMY HAS SHOWN
SIGNS OF SLOWING LATELY?
A. It's something I'm keeping my eye on, especially when the market
hesitated in May. One factor that has helped the high-yield market sustain
some strength in the face of weak economic reports is that its fundamental
credit structure is fairly strong. Fidelity has the resources available to
research and identify the particular companies that have solid credit
profiles.
Q. HOW ARE YOU FOCUSING THE PART OF THE PORTFOLIO DEDICATED TO U.S.
GOVERNMENT SECURITIES?
A. Early in the period, I had been overweighting Treasuries relative to
mortgage-backed securities, because as interest rates fell, prepayment risk
- the risk that mortgage holders will refinance at lower rates - increased.
However, by the end of the period, the fund had more investments in U.S.
government mortgage-backed securities - 11.7% - than it did in Treasuries -
5.4%. That's because the mortgage-backed securities reached a point where
they represented a better value.
Q. WHAT'S YOUR OUTLOOK?
A. As far as the U.S. economy is concerned, it's hard to say. On the one
hand, we have seen some economic weakness, but it might be short-lived. As
the economy has weakened, high-yield bonds have become somewhat cheaper
relative to Treasuries, indicating some vulnerability. However, I believe
economic growth will pick up in the second half of the year, allaying fears
that corporate earnings will suffer. At the same time, inflationary
pressures seem to be contained and there's a good chance that relatively
low interest rates will be with us for a while. This should allow
high-yield bonds to perform well and should dampen current concerns about
economic weakness reducing credit quality. There has been a significant
drop in the yield of the long bond since 1994.
Q. IS THERE A RISK THAT A PICKUP IN GROWTH WILL LEAD US INTO A REPLAY OF
1994, WHEN THE BOND MARKET TUMBLED?
A. I don't think so, mainly because there isn't the same kind of financial
speculation in the bond market as there was in 1994, when there was a great
deal of leveraged money in short securities. It seems to be a less
vulnerable bond market. While the U.S. economy appears to be recovering
somewhat from its recent weakness, the global economy appears relatively
weak, which could provide a healthy backdrop for bond markets worldwide. In
the emerging markets, there's a lot of room for a strong rally, but it's
difficult to say how quickly that could happen.
FUND FACTS
GOAL: seeks a high level of
current income by investing
primarily in debt securities;
the fund may also seek
capital appreciation
START DATE: October 31, 1994
SIZE: as of June 30, 1995,
more than $45 million
MANAGER: Donald Taylor,
since October 1994;
joined Fidelity in 1986
(checkmark)
DON TAYLOR ON RISK IN THE
HIGH-YIELD MARKET:
"In 1989 and 1990, the
economy was slowing into a
recession and the high- yield
market sold off heavily. While
economic conditions today
might be similar, it's difficult to
conceive - especially given
the higher quality mix of the
market - that we'd see a
sell-off of that magnitude in the
foreseeable future.
"In the first place, the
qualitative mix of bonds in the
market relative to 1989-1990
is more in the higher-quality
B- and Ba-rated range and
less in the lower-quality B-
and C-rated range. Over the
several years prior to the junk
bond market crash, there
were a number of new
high-yield issues that were of
much lower quality than the
typical issues of the past five
years.
"Other factors unique to that
era also added to the severe
drop in the high-yield market.
The market was flooded with
a lot of new issuance from
leveraged buyouts, hurting
the market by increasing
supply and sparking fears of
similar situations. Significant
participants in the high-yield
market - including savings
and loans and insurance
companies - were legislated
or pressured out of it, sharply
reducing demand. And Drexel
Burnham Lambert, a
dominant market maker in the
high-yield area, had to retreat
after it was rocked by
scandal."
INVESTMENT CHANGES

TOP FIVE HOLDINGS AS OF JUNE 30, 1995
(BY ISSUER, EXCLUDING REPURCHASE % OF FUND'S % OF FUND'S
AGREEMENTS) INVESTMENTS INVESTMENTS
6 MONTHS AGO

U.S. Government (various issues) 24.8 26.4

Brazil Federative Republic (various 4.6 2.1
issues)

International Bank Reconstruction &
Development (various issues) 3.4 0.0

Argentina Republic (various issues) 3.3 2.6

Mexican Government Brady (various 3.0 0.7
issues)

TOP FIVE SECTORS AS OF JUNE 30, 1995
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE SECTORS
6 MONTHS AGO

Basic Industries 7.9 3.2

Finance 7.3 3.2

Media & Leisure 7.1 5.5

Retail & Wholesale 3.5 6.5

Construction & Real Estate 2.8 1.9

QUALITY DIVERSIFICATION AS OF JUNE 30, 1995
(MOODY'S RATINGS) % OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
6 MONTHS AGO

Aaa, Aa, A 37.5 28.9

Baa 0.2 0.0

Ba 7.8 1.6

B 30.8 27.9

Caa, Ca, C 0.1 0.0

Nonrated 12.2 9.4

TABLE EXCLUDES SHORT-TERM INVESTMENTS. UNRATED DEBT SECURITIES THAT ARE
EQUIVALENT TO BA AND BELOW AT JUNE 30, 1995, ACCOUNT FOR 8.1% OF THE FUND'S
INVESTMENTS.
ASSET ALLOCATION
AS OF JUNE 30, 1995* AS OF DECEMBER 31, 1994**
Corporate Bonds 37.5%
U.S. Government
and Agency
Obligations 24.8%
Foreign Government
Obligations 21.4%
Short-term and
other investments 16.3%
TOTAL FOREIGN
ISSUES 29.1%
Corporate Bonds 32.3%
U.S. Government
and Agency
Obligations 26.4%
Foreign Government
Obligations 17.9%
Short-term and
other investments 23.4%
TOTAL FOREIGN
ISSUES 20.7%
Row: 1, Col: 1, Value: 16.3
Row: 1, Col: 2, Value: 21.4
Row: 1, Col: 3, Value: 24.8
Row: 1, Col: 4, Value: 37.5
Row: 1, Col: 1, Value: 23.4
Row: 1, Col: 2, Value: 17.9
Row: 1, Col: 3, Value: 26.4
Row: 1, Col: 4, Value: 32.3
*
**
INVESTMENTS JUNE 30, 1995 (UNAUDITED)

Showing Percentage of Total Value of Investment in Securities

CORPORATE BONDS - 37.5%
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) AMOUNT (B) (NOTE 1)
CONVERTIBLE BONDS - 1.5%
FINANCE - 1.5%
CREDIT & OTHER FINANCE - 1.5%
Huntingdon International Holdings PLC
euro 7 1/2%, 9/25/06 - $ 1,000,000 $ 730,000
NONCONVERTIBLE BONDS - 36.0%
AEROSPACE & DEFENSE - 1.1%
Alliant Techsystems, Inc. 11 3/4%,
3/1/03 (g) B2 500,000 537,500
BASIC INDUSTRIES - 6.9%
CHEMICALS & PLASTICS - 3.2%
NL Industries, Inc. 0%, 10/15/05 (e) B2 1,000,000 702,500
Pioneer Americas Acquisition Corp.
13 3/8%, 4/1/05 (g) B2 500,000 516,250
Trans Resources, Inc. 11 7/8%, 7/1/02 (g) B2 300,000 272,250
1,491,000
IRON & STEEL - 1.2%
AK Steel Corp. 10 3/4%, 4/1/04 Ba3 560,000 586,600
METALS & MINING - 0.3%
Kaiser Aluminum & Chemical Corp.
12 3/4%, 2/1/03 B2 120,000 129,000
PACKAGING & CONTAINERS - 1.2%
Grupo Industrial Durango 9.6875%,
11/18/96 (g) (i) B1 65,000 54,925
Owens Ill, Inc. 9.95%, 10/15/04 B2 500,000 515,000
569,925
PAPER & FOREST PRODUCTS - 1.0%
Repap New Brunswick, Inc. (yankee)
10 5/8%, 4/15/05 B2 470,000 473,525
TOTAL BASIC INDUSTRIES 3,250,050
CONGLOMERATES - 1.8%
American Standard, Inc. 0%, 6/1/05 (e) B1 500,000 382,500
Figgie International Holdings, Inc.
9 7/8%, 10/1/99 B1 500,000 488,750
871,250
CORPORATE BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) AMOUNT (B) (NOTE 1)
NONCONVERTIBLE BONDS - CONTINUED
CONSTRUCTION & REAL ESTATE - 2.4%
BUILDING MATERIALS - 2.0%
Building Materials Corp., America 0%,
7/1/04 (e) B1 $ 1,000,000 $ 595,000
Pace Industries, Inc. 10 5/8%, 12/1/02 B1 350,000 332,500
927,500
CONSTRUCTION - 0.4%
U.S. Home Corp. 9 3/4%, 6/15/03 Ba3 200,000 194,000
TOTAL CONSTRUCTION & REAL ESTATE 1,121,500
DURABLES - 1.9%
AUTOS, TIRES, & ACCESSORIES - 0.7%
Doehler Jarvis 11 7/8%, 6/1/02 B3 40,000 43,000
Harvard Industries, Inc. 12%, 7/15/04 B2 300,000 308,250
351,250
TEXTILES & APPAREL - 1.2%
Consoltex Group, Inc./Consoltex USA,
Inc. gtd. 11%, 10/1/03 B2 500,000 457,500
United States Leather, Inc. 10 1/4%, 7/31/03 B2 120,000 102,900
560,400
TOTAL DURABLES 911,650
ENERGY - 0.2%
OIL & GAS - 0.2%
Flores & Rucks, Inc. 13 1/2%, 12/1/04 B3 100,000 112,500
FINANCE - 4.7%
ASSET BACKED SECURITIES - 1.2%
Premier Auto Trust 4.90%, 12/15/98 Aaa 203,018 200,512
Sears Credit Act Master Trust II 7%, 1/15/04 Aaa 200,000 205,875
Standard Credit Card Master Trust I:
8%, 10/7/97 Aaa 100,000 101,843
8 1/4%, 10/7/97 A2 55,000 56,366
7.65%, 2/15/00 A2 30,000 30,881
595,477
CORPORATE BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) AMOUNT (B) (NOTE 1)
NONCONVERTIBLE BONDS - CONTINUED
FINANCE - CONTINUED
BANKS - 1.2%
Deutsche Bank Finance NV
4 1/8%, 11/15/99 Aaa JPY 31,000,000 $ 397,159
Lake Baden Wuerttemberg Finance NV
euro 3 3/4%, 6/21/99 Aaa JPY 5,000,000 63,113
Lloyds Bank PLC 7 3/8%, 3/11/04 Aa3 GBP 75,000 105,010
565,282
CREDIT & OTHER FINANCE - 1.4%
General Electric Capital Corp.:
8%, 10/29/98 AAA ITL 820,000,000 455,039
6 1/2%, 2/8/99 Aaa SEK 1,050,000 125,947
7 3/8%, 2/8/99 Aaa ITL 140,000,000 75,586
656,572
INSURANCE - 0.9%
American Life Holdings 11 1/4%, 9/15/04 B1 400,000 416,000
TOTAL FINANCE 2,233,331
INDUSTRIAL MACHINERY & EQUIPMENT - 1.3%
MVE, Inc. Unit 12 1/2%, 2/15/02 (warrants) (a) B3 110,000 114,400
Specialty Equipment Cos., Inc.
11 3/8%, 12/1/03 B3 500,000 513,750
628,150
MEDIA & LEISURE - 7.1%
BROADCASTING - 3.5%
Granite Broadcasting Corp. 10 3/8%,
5/15/05 (g) B3 250,000 249,688
Telemundo Group, Inc. 10 1/4%, 12/30/01 - 172,000 158,240
Turner Broadcasting Systems, Inc.
8 3/8%, 7/1/13 Ba2 500,000 452,500
United International Holdings, Inc. Unit
0%, 11/15/99 B3 1,000,000 605,000
Viacom, Inc. 8%, 7/7/06 B1 200,000 194,500
1,659,928
ENTERTAINMENT - 0.2%
Casino America, Inc. Unit 0%, 1/1/96 B1 100,000 99,500
CORPORATE BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) AMOUNT (B) (NOTE 1)
NONCONVERTIBLE BONDS - CONTINUED
MEDIA & LEISURE - CONTINUED
LEISURE DURABLES & TOYS - 0.6%
ICON Health And Fitness, Inc. 13%,
7/15/02 B3 $ 270,000 $ 272,700
LODGING & GAMING - 1.9%
Grand Casino Resorts, Inc. gtd.
12 1/2%, 2/1/00 Ba3 220,000 246,400
Harrah's Jazz Co. 14 1/4%, 11/15/01 B1 500,000 520,000
Players International, Inc. 10 7/8%,
4/15/05 (g) Ba3 160,000 157,600
924,000
RESTAURANTS - 0.9%
Foodmaker, Inc. 9 1/4%, 3/1/99 B1 450,000 412,875
TOTAL MEDIA & LEISURE 3,369,003
NONDURABLES - 1.6%
HOUSEHOLD PRODUCTS - 1.6%
Revlon Worldwide Corp. secured 0%,
3/15/98 B3 1,130,000 776,875
RETAIL & WHOLESALE - 2.9%
APPAREL STORES - 0.6%
Specialty Retailers, Inc., 11%, 8/15/03 B3 300,000 279,000
GROCERY STORES - 0.5%
Pathmark Stores, Inc. 0%, 11/1/03 (e) B3 400,000 240,000
RETAIL & WHOLESALE, MISCELLANEOUS - 1.8%
Finlay Fine Jewelry Corp. 10 5/8%, 5/1/03 B1 320,000 308,800
Florists Transworld Delivery, Inc.
14%, 12/15/01 B3 300,000 286,500
Payless Cashways, Inc. 9 1/8%, 4/15/03 Ba3 300,000 234,000
829,300
TOTAL RETAIL & WHOLESALE 1,348,300
SERVICES - 1.1%
LEASING & RENTAL - 0.1%
GPA Delaware, Inc. gtd. 8 3/4%, 12/15/98 Caa 60,000 50,400
CORPORATE BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) AMOUNT (B) (NOTE 1)
NONCONVERTIBLE BONDS - CONTINUED
SERVICES - CONTINUED
SERVICES - 1.0%
Borg Warner Security Corp. 9 1/8%, 5/1/03 B3 $ 500,000 $ 446,250
TOTAL SERVICES 496,650
TECHNOLOGY - 0.6%
COMPUTERS & OFFICE EQUIPMENT - 0.6%
Bell & Howell Holdings Co.
0%, 3/1/05 (e) B3 500,000 290,000
TRANSPORTATION - 0.7%
RAILROADS - 0.7%
Transtar Holdings L.P./Transtar Cap Corp.,
Series B, 0%, 12/15/03 (e) B- 590,000 348,100
UTILITIES - 1.7%
CELLULAR - 0.8%
Pagemart Nationwide, Inc. 0%,
2/1/05 (e) (g) - 600,000 364,500
GAS - 0.8%
Columbia Gas Systems, Inc. 10 1/4%, 8/1/11 (b) B3 240,000 361,200
TELEPHONE - 0.1%
Call-Net Enterprises, Inc. 0%,12/1/04 (e) B2 130,000 78,000
TOTAL UTILITIES 803,700
TOTAL NONCONVERTIBLE BONDS 17,098,559
TOTAL CORPORATE BONDS
(Cost $16,887,864) 17,828,559
U.S. GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS - 13.1%
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) AMOUNT (B) (NOTE 1)
U.S. TREASURY OBLIGATIONS - 5.4%
7 3/4%, 12/31/99 Aaa $ 70,000 $ 74,736
10 3/4%, 5/15/03 Aaa 40,000 51,131
11 7/8%, 11/15/03 Aaa 360,000 490,558
9%, 11/15/18 Aaa 720,000 910,238
8 7/8%, 2/15/19 Aaa 590,000 737,594
8 1/8%, 8/15/19 Aaa 240,000 279,226
2,543,483
U.S. GOVERNMENT AGENCY OBLIGATIONS - 7.7%
Federal Home Loan Bank 7.59%, 12/23/96 Aaa 100,000 102,250
Federal Home Loan Mortgage Corp.:
4.78%, 2/10/97 (callable) Aaa 50,000 49,008
4.60%, 3/1/99 (callable) (f) Aaa 60,000 58,088
Federal National Mortgage Association:
5.20%, 7/10/98 (callable) Aaa 60,000 58,331
4.70%, 9/10/98 (callable) Aaa 150,000 143,455
4.95%, 9/30/98 Aaa 390,000 375,634
4.82%, 10/21/98 (callable) Aaa 200,000 192,674
4 7/8%, 10/15/98 (callable) Aaa 30,000 28,808
4.94%, 10/30/98 (callable) Aaa 440,000 421,987
5.30%, 12/10/98 (callable) Aaa 500,000 484,375
Government Trust Certificates:
(assets of Trust guaranteed by U.S. Government
through Defense Security Assistance Agency):
Class 1-C, 9 1/4%, 11/15/01 Aaa 70,000 77,106
Class 2-E, 9.40%, 5/15/02 Aaa 210,000 232,256
Class T-2, 9.40%, 11/15/96 Aaa 199,752 204,250
Class T-2, 9 5/8%, 5/15/02 Aaa 20,000 22,138
(assets of Trust guaranteed by U.S. Government
through Export-Import Bank):
Series 1994-F, 8.178%, 12/15/04 Aaa 91,858 97,854
Series 1995-A, 6.28%, 6/15/04 Aaa 140,000 139,398
Private Export Funding Corp.:
8 3/4%, 6/30/03 Aaa 100,000 114,070
6.86%, 4/30/04 Aaa 58,500 59,341
State of Israel (guaranteed by U.S. Government
through Agency for International Development):
7 3/4%, 4/1/98 Aaa 8,895 9,101
4 7/8%, 9/15/98 Aaa 40,000 38,538
6%, 2/15/99 Aaa 20,000 19,896
7 3/4%, 11/15/99 Aaa 33,000 34,842
5 3/4%, 3/15/00 Aaa 110,000 107,594
8 1/2%, 4/1/06 Aaa 200,000 222,000
U.S. GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) AMOUNT (B) (NOTE 1)
U.S. GOVERNMENT AGENCY OBLIGATIONS - CONTINUED
Tennessee Valley Authority:
8 1/4%, 11/15/96 Aaa $ 60,000 $ 61,716
4.60%, 12/15/96 Aaa 75,000 73,561
U.S. Housing & Urban Development
8.27%, 8/1/03 Aaa 210,000 230,967
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS 3,659,238
TOTAL U.S. GOVERNMENT AND GOVERNMENT
AGENCY OBLIGATIONS (Cost $5,953,043) 6,202,721
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES - 11.7%
FEDERAL HOME LOAN MORTGAGE CORPORATION - 1.5%
6%, 12/1/07 Aaa 223,189 213,172
7%, 7/1/22 (h) Aaa 500,000 491,795
704,967
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 7.6%
6%, 4/1/01 to 7/1/01 Aaa 1,897,000 1,865,895
6 1/2%, 5/1/08 to 1/1/24 Aaa 776,957 757,620
9%, 12/1/24 Aaa 708,153 737,583
9 1/2%, 12/1/24 Aaa 249,080 261,534
3,622,632
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - 2.6%
6%, 4/15/09 Aaa 436,594 424,042
11 1/2%, 3/15/10 Aaa 287,823 322,451
7 1/2%, 6/15/23 Aaa 500,000 502,500
1,248,993
TOTAL U.S. GOVERNMENT AGENCY MORTGAGE-
BACKED SECURITIES (Cost $5,500,051) 5,576,592
COMMERCIAL MORTGAGE SECURITIES - 1.1%
Meritor Mortgage Security Corp. Series 1987-1
Class A3, commercial, 9.40%, 6/1/99 Baa3 91,828 92,517
Resolution Trust Corp.:
commercial Series 1994-C2 Class E,
8%, 4/25/25 BB+ 243,821 219,515
commercial floater Series 1995-C1 Class C,
6.90%, 2/25/27 Aaa 100,000 93,656
Structured Asset Securities Corp. Series 1995-C1,
Class D, commercial, 7 3/8%, 9/25/24 BBB 150,000 133,266
TOTAL COMMERCIAL MORTGAGE SECURITIES
(Cost $504,874) 538,954
FOREIGN GOVERNMENT OBLIGATIONS (J) - 21.4%
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) AMOUNT (B) (NOTE 1)
Argentina Republic:
euro 7.3125%, 3/31/05 (i) BB- $ 900,000 $ 552,375
Brady euro:
5%, 3/31/23 (i) B1 1,500,000 714,375
6.875%, 3/31/23 (i) B1 500,000 286,875
Belgium Government 7 1/2%, 7/29/08 AAA BEF 2,000,000 68,035
Brazil Federative Republic:
Brady PAR euro 4 1/4%, 4/15/24 (i) - 700,000 310,625
IDU euro 6.6875%, 1/1/01 (i) B1 776,000 624,680
7 1/4%, 4/15/06 (i) - 500,000 299,375
8%, 4/15/14 B2 832,320 408,877
4 1/4%, 4/15/24 (i) - 250,000 110,937
7 1/4%, 4/15/24 (i) - 750,000 427,500
Canadian Government 8 1/2%, 4/1/02 Aa1 CAD 326,000 246,430
Commonwealth of Australia, 12%, 11/15/01 Aa2 AUD 110,000 89,778
Danish Government Bullet 8%, 5/15/03 Aa1 DKK 550,000 99,138
French Government:
OAT 9 1/2%, 1/25/01 Aaa FRF 2,106,000 481,533
8 1/2%, 12/26/12 Aaa FRF 570,000 123,454
German Government 8 3/8%, 5/21/01 Aaa DEM 1,470,000 1,150,611
Kingdom of Belgium:
9 1/4%, 1/2/98 AAA BEF 4,000,000 151,098
9%, 7/30/98 AA+ BEF 2,000,000 75,866
Kingdom of Denmark 9%, 11/15/98 Aa1 DKK 200,000 38,424
Kingdom of Spain 8.30%, 12/15/98 - ESP 28,100,000 212,307
Mexican Government:
Brady:
6 1/4%, 12/31/19 Ba3 250,000 151,875
6 1/4%, 12/31/19 Ba3 1,250,000 759,375
discount note:
6 7/8%, 12/31/19 (i) Ba3 250,000 177,500
7.1875%, 12/31/19 (i) Ba3 500,000 355,000
Mexico Value Recovery (rights) (a) - 2,652,000 27
Netherlands Government 6 1/2%, 4/15/03 - NLG 475,000 300,554
Philippine Government PAR 12/1/17 (f) - 250,000 181,563
Poland Brady euro 7 1/8%, 10/27/24 (i) - 250,000 191,562
Poland PAR 2 3/4%, 10/27/24 (f) - 250,000 106,250
Polish Government past due interest Bearer,
3 1/4%, 10/27/14 (i) - 250,000 149,375
Republic of Austria:
7%, 2/14/00 Aaa ATS 500,000 52,413
euro 4 1/2%, 9/28/05 Aaa JPY 20,000,000 266,982
Republic of Bulgaria 7.5625%, 7/28/24 (i) - 300,000 148,875
Republic of Ecuador PAR eruo 3%, 2/28/25 (f) - 250,000 80,625
FOREIGN GOVERNMENT OBLIGATIONS (J) - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) AMOUNT (B) (NOTE 1)
Republic of Venezuela Oil Recovery Rights (a) B+ $ 3,750 $ -
United Kingdom Treasury:
10%, 2/26/01 Aaa GBP 180,000 308,087
9 3/4%, 8/27/02 Aaa GBP 43,000 73,320
Venezuela Republic:
PAR A euro 6.75%, 3/31/20 Ba2 500,000 251,250
PAR B euro 6.75%, 3/31/20 Ba3 250,000 125,625
TOTAL FOREIGN GOVERNMENT OBLIGATIONS
(Cost $9,237,046) 10,152,551
SUPRANATIONAL OBLIGATIONS - 3.5%
European Investment Bank 5 7/8%,
11/26/99 Aaa JPY 5,000,000 68,754
International Bank Reconstruction & Development:
4 1/2%, 6/20/00 Aaa JPY 90,000,000 1,184,940
4 3/4%, 1/15/04 Aaa JPY 30,000,000 409,863
TOTAL SUPRANATIONAL OBLIGATIONS
(Cost $1,452,039) 1,663,557
COMMON STOCKS - 0.2%
SHARES
HOLDING COMPANIES - 0.2%
SDW Holdings Corp. (warrants) (a) 16,500 99,000
MEDIA & LEISURE - 0.0%
LEISURE DURABLES & TOYS - 0.0%
IHF Capital, Inc., Series I (warrants) (a)(g) 270 6,750
SERVICES - 0.0%
Perry Capital Corp. (warrants) (a)(g) 300 1,500
TOTAL COMMON STOCKS
(Cost $81,871) 107,250
PREFERRED STOCKS - 3.1%
SHARES VALUE (NOTE 1)
CONVERTIBLE PREFERRED STOCKS - 1.0%
CONSTRUCTION & REAL ESTATE - 0.4%
REAL ESTATE - 0.4%
Catellus Development Corp., Series B, $3.625,
exchangeable (g) 5,000 $ 207,500
RETAIL & WHOLESALE - 0.6%
GROCERY STORES - 0.6%
Supermarkets General Holdings Corp. $3.52
exchangeable pay-in-kind (a) 10,000 270,000
TOTAL CONVERTIBLE PREFERRED STOCKS 477,500
NONCONVERTIBLE PREFERRED STOCKS - 2.1%
BASIC INDUSTRIES - 1.0%
PAPER & FOREST PRODUCTS - 1.0%
S D Warren Co. exchangeable pay-in-kind 16,500 462,000
FINANCE - 1.1%
SAVINGS & LOANS - 1.1%
Greater New York Savings Bank Series B, perpetual 12% 18,787 516,643
TOTAL NONCONVERTIBLE PREFERRED STOCKS 978,643
TOTAL PREFERRED STOCKS
(Cost $1,184,316) 1,456,143
REPURCHASE AGREEMENTS - 8.4%
MATURITY
AMOUNT
Investments in repurchase agreements
(U.S. Treasury obligations), in a
joint trading account at 6.15%,
dated 6/30/95 due 7/3/95 $ 3,997,047 3,995,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $44,796,104) $ 47,521,327
CURRENCY ABBREVIATIONS
AUD - Australian dollar
ATS - Austrian schilling
BEF - Belgian franc
GBP - British pound
CAD - Canadian dollar
DKK - Danish krone
NLG - Dutch guilder
FRF - French franc
DEM - German deutsche mark
ITL - Italian lira
JPY - Japanese yen
ESP - Spanish peseta
SEK - Swedish krona
LEGEND
(1.) Non-income producing
(2.) Non-income producing - issuer filed for protection under the Federal
Bankruptcy Code or is in default of interest payment.
(3.) Principal amount is stated in United States dollars unless otherwise
noted.
(4.) Standard & Poor's Corporation credit ratings are used in the absence
of a rating by Moody's Investors Service, Inc.
(5.) Debt obligation initially issued in zero coupon form which converts to
coupon form at a specified rate and date.
(6.) Debt obligation initially issued at one coupon which converts to a
higher coupon at a specified date.
(7.) 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 $2,368,463 or 5.2% of net
assets.
(8.) Security purchased on a delayed delivery basis (see Note 2 of Notes to
Financial Statements).
(9.) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end date.
(10.) Some foreign government obligations have not been individually rated
by S&P or Moody's. The ratings listed are assigned to securities by FMR,
the fund's investment adviser, based principally on S&P and Moody's ratings
of the sovereign credit of the issuing government.
OTHER INFORMATION
The composition of long-term debt holdings as a percentage of total value
of investment in securities, is as follows (ratings are unaudited):
MOODY'S RATINGS S&P RATINGS
Aaa, Aa, A 37.5% AAA, AA, A 36.5%
Baa 0.2% BBB 0.5%
Ba 7.8% BB 9.7%
B 30.8% B 22.3%
Caa 0.1% CCC 0.8%
Ca, C 0.0% CC, C 0.0%
D 0.8%
For some foreign government obligations, FMR has assigned the ratings of
the sovereign credit of the issuing government. The percentage not rated by
either S&P or Moody's amounted to 8.1%. FMR has determined that unrated
debt securities that are lower quality account for 8.1% of the total value
of investment in securities.
Distribution of investments by country of issue, as a percentage of total
value of investment in securities, is as follows:
United States 70.9%
Brazil 4.6
Supranational 3.5
Germany 3.4
Argentina 3.3
Mexico 3.2
United Kingdom 2.6
Canada 1.7
France 1.3
Others (individually less than 1%) 5.5
TOTAL 100.0%
INCOME TAX INFORMATION
At June 30, 1995, the aggregate cost of investment securities for income
tax purposes was $44,796,104. Net unrealized appreciation aggregated
$2,725,223, of which $2,930,126 related to appreciated investment
securities and $204,903 related to depreciated investment securities.
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
JUNE 30, 1995 (UNAUDITED)

ASSETS

Investment in securities, at value (including repurchase $ 47,521,327
agreements of $3,995,000) (cost $44,796,104) -
See accompanying schedule

Cash 48,620

Receivable for investments sold 31,998

Receivable for fund shares sold 316,623

Interest receivable 738,161

TOTAL ASSETS 48,656,729

LIABILITIES

Payable for investments purchased $ 2,124,836
Regular delivery

Delayed delivery 493,274

Distributions payable 38,420

Accrued management fee 22,084

Distribution fees payable 21,393

Other payables and accrued expenses 30,364

TOTAL LIABILITIES 2,730,371

NET ASSETS $ 45,926,358

Net Assets consist of:

Paid in capital $ 42,969,271

Distributions in excess of net investment income (146,501)

Accumulated undistributed net realized gain (loss) on 376,094
investments and foreign currency transactions

Net unrealized appreciation (depreciation) on 2,727,494
investments and assets and liabilities in foreign
currencies

NET ASSETS $ 45,926,358

CALCULATION OF MAXIMUM OFFERING PRICE $10.87
CLASS A:
NET ASSET VALUE, and redemption price per share
($25,645,653 (divided by) 2,359,842 shares)

Maximum offering price per share (100/95.25 of $10.87) $11.41

CLASS B: $10.87
NET ASSET VALUE and offering price per share
($20,280,705 (divided by) 1,865,272 shares) A

</TABLE>

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

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED JUNE 30, 1995 (UNAUDITED)

INVESTMENT INCOME $ 30,653
Dividends

Interest 1,388,167

TOTAL INCOME 1,418,820

EXPENSES

Management fee $ 98,031

Transfer agent fees 24,376
Class A

Class B 15,164

Distribution fees 22,745
Class A

Class B 71,367

Accounting fees and expenses 22,501

Non-interested trustees' compensation 55

Custodian fees and expenses 5,714

Registration fees 10,234
Class A

Class B 10,404

Audit 15,625

Legal 517

Reports to shareholders 93

Miscellaneous 270

Total expenses before reductions 297,096

Expense reductions (26,304) 270,792

NET INVESTMENT INCOME 1,148,028

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

Investment securities 435,748

Foreign currency transactions (51,352) 384,396

Change in net unrealized appreciation (depreciation) on:

Investment securities 2,716,822

Assets and liabilities in foreign currencies 11,492 2,728,314

NET GAIN (LOSS) 3,112,710

NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ 4,260,738
FROM OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS OCTOBER 31, 1994
ENDED JUNE 30, (COMMENCEMENT
1995 OF OPERATIONS) TO
(UNAUDITED) DECEMBER 31,
1994

INCREASE (DECREASE) IN NET ASSETS

Operations $ 1,148,028 $ 93,779
Net investment income

Net realized gain (loss) 384,396 (166,394)

Change in net unrealized appreciation (depreciation) 2,728,314 (820)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 4,260,738 (73,435)
FROM OPERATIONS

Distributions to shareholders (666,605) (53,334)
From net investment income
Class A

Class B (464,725) (45,552)

TOTAL DISTRIBUTIONS (1,131,330) (98,886)

Share transactions - net increase (decrease) 22,731,132 20,238,139

TOTAL INCREASE (DECREASE) IN NET ASSETS 25,860,540 20,065,818

NET ASSETS

Beginning of period 20,065,818 -

End of period (including distributions in excess of net $ 45,926,358 $ 20,065,818
investment income of $146,501 and $163,199,
respectively)

</TABLE>

FINANCIAL HIGHLIGHTS - CLASS A

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED PERIOD ENDED
JUNE 30, 1995 DECEMBER 31,
(UNAUDITED) 1994 D

SELECTED PER-SHARE DATA

Net asset value, beginning of period $ 9.920 $ 10.000

Income from Investment Operations

Net investment income .424 .064 E

Net realized and unrealized gain (loss) on investments .906 (.046)

Total from investment operations 1.330 .018

Less Distributions

From net investment income (.380) (.098)

Net asset value, end of period $ 10.870 $ 9.920

TOTAL RETURN B, C 13.62% .17%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 25,646 $ 10,687

Ratio of expenses to average net assets 1.35% 1.35% A
A

Ratio of expenses to average net assets before 1.52% 2.50% A,
expense reductions A F

Ratio of net investment income to average net assets 7.45% 5.80% A
A

Portfolio turnover 231% 104% A
A

</TABLE>

A ANNUALIZED
B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN (SEE NOTE 5 OF NOTES TO FINANCIAL
STATEMENTS).
C TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED.
D AS OF OCTOBER 31, 1994 (COMMENCEMENT OF SALES OF CLASS A & CLASS B
SHARES) TO DECEMBER 31, 1994.
E NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.
F LIMITED IN ACCORDANCE WITH A STATE EXPENSE LIMITATION.
FINANCIAL HIGHLIGHTS - CLASS B

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS PERIOD ENDED
ENDED DECEMBER 31,
JUNE 30, 1995 1994 D
(UNAUDITED)

SELECTED PER-SHARE DATA

Net asset value, beginning of period $ 9.910 $ 10.000

Income from Investment Operations

Net investment income .391 .072 E

Net realized and unrealized gain (loss) on .912 (.078)
investments

Total from investment operations 1.303 (.006)

Less Distributions

From net investment income (.343) (.084)

Net asset value, end of period $ 10.870 $ 9.910

TOTAL RETURN B, C 13.33% (.06)%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 20,281 $ 9,379

Ratio of expenses to average net assets 2.10% A 2.10% A

Ratio of expenses to average net assets before 2.25% A 2.50% A,
expense reductions F

Ratio of net investment income to average net assets 6.71% A 5.06% A

Portfolio turnover 231% A 104% A

</TABLE>

1. SIGNIFICANT ACCOUNTING
POLICIES.
Fidelity Advisor Strategic Income Fund (the fund) is a fund of Fidelity
Advisor Series VIII (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 and Class B shares, each of which has equal rights
as to assets and voting privileges. Each class has exclusive voting rights
with respect to its distribution plan. Investment income, realized and
unrealized capital gains and losses, and the common expenses of the fund
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,
registration, and certain other class-specific fees and expenses. On March
16, 1995, creation of an Institutional Class of shares was approved by the
Board of Trustees. Offering of the new class commenced on July 3, 1995.
SECURITY VALUATION. 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 (sales prices if the principal market is an
exchange) in the principal market in which such securities are normally
traded. Securities for which market quotations are not readily available
(and in certain cases debt securities which trade on an exchange) are
valued primarily using dealer-supplied valuations or at their fair value as
determined in good faith under consistently applied procedures under the
general supervision of the Board of Trustees. Short-term securities
maturing within sixty days of their purchase date 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.
Net realized gains and losses on foreign currency transactions represent
net gains and losses from sales and maturities of forward currency
contracts, disposition of foreign currencies, currency gains and losses
realized between the trade and settlement dates on securities transactions,
and the difference between the amount of net investment income accrued and
the U.S. dollar amount actually received. The effects of changes in foreign
currency exchange rates on investments in securities are included with the
net realized and unrealized gain or loss on investment securities.
INCOME TAXES. The fund intends to qualify as a regulated investment company
under Subchapter M of the Internal Revenue Code. By so qualifying, the fund
1. SIGNIFICANT ACCOUNTING
POLICIES - CONTINUED
INCOME TAXES - CONTINUED
will not be subject to income taxes to the extent that it distributes
substantially all of its taxable income for its fiscal year. The schedule
of investments includes information regarding income taxes under the
caption "Income Tax Information."
INVESTMENT INCOME. Interest income, which includes accretion of original
issue discount, is accrued as earned.
EXPENSES. Most expenses of the trust can be directly attributed to a fund.
Expenses which cannot be directly attributed are apportioned between the
funds in the trust.
DISTRIBUTIONS TO SHAREHOLDERS. Distributions are recorded on the
ex-dividend date. Income dividends are declared separately for each class,
while capital gain distributions are declared at the fund level and
allocated to each class on a pro rata basis based on the number of shares
held by each class on the ex-dividend date.
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 foreign
currency transactions and market discount.
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital and may
affect the per-share allocation between net investment income and realized
and unrealized gain (loss). Distributions in excess of net investment
income may include temporary book and tax basis differences that will
reverse in a subsequent period. Any taxable income or gain remaining at
fiscal year end is distributed in the following year.
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.
FORWARD FOREIGN CURRENCY
CONTRACTS. The fund may use foreign currency contracts to facilitate
transactions in foreign securities and to manage the fund's currency
exposure. Contracts to buy generally are used to acquire exposure to
foreign currencies, while contracts to sell are used to hedge the fund's
investments against currency fluctuations. Also, a contract to buy or sell
can offset a previous contract. 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 forward foreign currency contracts is determined
using forward currency exchange rates supplied by a quotation service.
Purchases and sales of forward foreign currency contracts having the same
settlement date and broker are offset and any realized gain (loss) is
recognized on the date of offset; otherwise, gain (loss) is recognized on
settlement date.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the fund,
2. OPERATING POLICIES - CONTINUED
JOINT TRADING ACCOUNT - CONTINUED
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 that mature in 60 days or less from the date of purchase, and
are collateralized by U.S. Treasury or Federal Agency obligations.
REPURCHASE AGREEMENTS. The fund, through its custodian, receives delivery
of the underlying securities, whose market value is required to be at least
102% of the resale price at the time of purchase. FMR, the fund's
investment adviser, is responsible for determining that the value of these
underlying securities remains at least equal to the resale price.
DELAYED DELIVERY TRANSACTIONS. The fund may purchase or sell securities on
a when-issued or forward commitment basis. Payment and delivery may take
place a month or more after the date of the transaction. The price of the
underlying securities and the date when the securities will be delivered
and paid for are fixed at the time the transaction is negotiated. The
market value of the securities purchased or sold on a when-issued or
forward commitment basis are identified as such in the fund's schedule of
investments. With respect to purchase commitments, the fund identifies
securities as segregated in its custodial records with a value at least
equal to the amount of the commitment. Losses may arise due to changes in
the market value of the underlying securities or if the counterparty does
not perform under the contract.
3. PURCHASES AND SALES
OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $60,347,249 and $35,130,316, respectively, of which U.S.
government and government agency obligations aggregated $29,805,021 and
$22,684,009, 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 .1200% to .3700% for the period. 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. The annual individual fund fee rate is .45%.
For the period, the management fee was equivalent to an annualized rate of
.60% of average net assets.
DISTRIBUTION AND SERVICE PLAN. In accordance with Rule 12b-1 of the 1940
Act, the Trustees have adopted separate distribution plans with respect to
the fund's Class A shares ("Class A Plan")
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
DISTRIBUTION AND SERVICE PLAN - CONTINUED
and Class B shares ("Class B Plan"), pursuant to which the fund pays
Fidelity Distributors Corporation (FDC), an affiliate of FMR, a
distribution and service fee. This fee is based on annual rates of .25% and
1.00% (of which .75% represents a distribution fee and .25% represents a
shareholder service fee) of the average net assets of the Class A and Class
B shares, respectively. For the period, the fund paid FDC $22,745 and
$71,367 under the Class A Plan and Class B Plan, respectively, of which
$22,745 and $17,842 were paid to securities dealers, banks and other
financial institutions for the distribution of Class A and Class B shares,
and providing shareholder support services.
In addition, FMR or FDC may use its resources to pay administrative and
promotional expenses related to the sale of the fund's shares. Subject to
the approval of the Board of Trustees, the Plans also authorize payments to
third parties that assist in the sale of the fund's shares or render
shareholder support services. No payments were made under the Plans during
the period.
SALES LOAD. FDC receives a front-end sales charge of up to 4.75% for
selling Class A shares of the fund. For the period, FDC received sales
charges of $359,348 on sales of Class A shares of the fund, of which
$326,756 was paid to securities dealers, banks, and other financial
institutions. FDC also receives the proceeds of a contingent deferred sales
charge levied on Class B share redemptions occurring within five years of
purchase. The charge is based on declining rates which range from 4% to 1%
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. For the period, FDC received contingent deferred sales
charges of $11,550 on Class B share redemptions from the fund. When Class B
shares are sold, FDC pays commissions from its own resources to dealers
through which the sales are made.
TRANSFER AGENT FEES. State Street Bank and Trust Company (SSB) is the
transfer, dividend disbursing, and shareholder servicing agent for the
fund's Class A shares, while Fidelity Investments Institutional Operations
Company (FIIOC), an affiliate of FMR (collectively, with SSB, referred to
as the Transfer Agents) acts in that capacity for the fund's Class B
shares. Effective January 1, 1995, the Board of Trustees approved a revised
transfer agent contract pursuant to which the Transfer Agents receive
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. Under the prior transfer agent contract, the Transfer Agents received
fees based on the type, size, number of accounts and the number of
transactions made by shareholders. With respect to the Class A shares, SSB
has delegated certain transfer, dividend paying, and shareholder services
to
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
TRANSFER AGENT FEES - CONTINUED
FIIOC for which FIIOC receives its allocable share of all such fees. FIIOC
pays for typesetting, printing and mailing of all shareholder reports,
except proxy statements.
ACCOUNTING FEES. Fidelity Service Co. (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.
5. EXPENSE REDUCTIONS.
FMR voluntarily agreed to reimburse the funds' operating expenses
(excluding interest, taxes, brokerage commissions and extraordinary
expenses) above an annual rate of 1.35% and 2.10% of average net assets for
Class A and Class B, respectively. For the period, the reimbursement
reduced expenses by $15,119 and $11,185 for Class A and Class B,
respectively.
6. SHARE TRANSACTIONS.
Share transactions for both classes were as follows:
SHARES DOLLARS
SIX MONTHS PERIOD SIX MONTHS PERIOD
ENDED ENDED ENDED ENDED JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1995 1994 A 1995 1994 A

CLASS A
Shares sold 1,611,382 1,089,553 $ 16,561,888 $ 10,913,598
Reinvestment of distributions 52,645 4,800 553,694 47,705
Shares redeemed (381,904) (16,634) (3,896,825) (187,175)
Net increase (decrease) 1,282,123 1,077,719 $ 13,218,757 $ 10,774,128
CLASS B
Shares sold 1,028,050 983,229 $ 10,584,981 $ 9,833,907
Reinvestment of distributions 38,659 4,120 407,447 40,895
Shares redeemed (147,502) (41,284) (1,480,053) (410,791)
Net increase (decrease) 919,207 946,065 $ 9,512,375 $ 9,464,011
A SHARE TRANSACTIONS FOR CLASS A AND CLASS B ARE FOR THE PERIOD OCTOBER 31,
1994 (COMMENCEMENT OF SALE OF SHARES) TO DECEMBER 31, 1994.

INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Robert A. Lawrence, Vice President
Donald Taylor, Vice President
Arthur S. Loring, Secretary
Stephen P. Jonas, Treasurer
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox *
Phyllis Burke Davis *
Richard J. Flynn *
Edward C. Johnson 3d
E. Bradley Jones *
Donald J. Kirk *
Peter S. Lynch
Edward H. Malone *
Marvin L. Mann *
Gerald C. McDonough *
Thomas R. Williams *
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENTS
State Street Bank and Trust Company
Boston, MA - Class A
Fidelity Investments Institutional
Operations Company
Boston, MA - Class B
CUSTODIAN
Bank of New York
New York, NY
* INDEPENDENT TRUSTEES
GROWTH FUNDS
Fidelity Advisor Overseas Fund
Fidelity Advisor Equity Portfolio Growth
Fidelity Advisor Global Resources Fund
Fidelity Advisor Growth
Opportunities Fund
Fidelity Advisor Strategic
Opportunities Fund
GROWTH AND INCOME FUNDS
Fidelity Advisor Equity Income Fund
Fidelity Advisor Income & Growth Fund
INCOME FUNDS
Fidelity Advisor Emerging Markets Income Fund
Fidelity Advisor High Yield Fund
Fidelity Advisor Strategic Income Fund
Fidelity Advisor Government Investment Fund
Fidelity Advisor Limited Term Bond Fund
Fidelity Advisor Short Fixed-Income Fund
TAX-EXEMPT FUNDS
Fidelity Advisor High Income
Municipal Fund
Fidelity Advisor Limited Term Tax-Exempt Fund
Fidelity Advisor Short-Intermediate Tax-Exempt Fund
MONEY MARKET FUNDS
Daily Money Fund: Money Market Portfolio
Daily Money Fund: U.S. Treasury Portfolio
Daily Tax-Exempt Money Fund
(REGISTERED TRADEMARK)
(registered trademark)