SUPPLEMENT TO THE
FIDELITY(registered trademark) ADVISOR DIVERSIFIED INTERNATIONAL FUND
CLASS A, CLASS T, CLASS B, AND CLASS C DECEMBER 29, 1999 PROSPECTUS
The following information replaces similar information found in the
"Fund Management" section on page 23.
FMR pays FMR U.K., FMR Far East, and FIIA for providing sub-advisory
services, and FIIA in turn pays FIIA(U.K.)L. FIIA or FMR Far East in
turn pays FIJ for providing sub-advisory services.
SUPPLEMENT TO THE
FIDELITY(registered trademark) ADVISOR DIVERSIFIED INTERNATIONAL FUND
INSTITUTIONAL CLASS DECEMBER 29, 1999 PROSPECTUS
The following information replaces similar information found in the
"Fund Management" section on page 20.
FMR pays FMR U.K., FMR Far East, and FIIA for providing sub-advisory
services, and FIIA in turn pays FIIA(U.K.)L. FIIA or FMR Far East in
turn pays FIJ for providing sub-advisory services.
SUPPLEMENT TO THE
FIDELITY(registered trademark) ADVISOR
EMERGING ASIA FUND CLASS A, CLASS T,
CLASS B, AND CLASS C DECEMBER 29, 1999 PROSPECTUS
The following information replaces similar information found in the
"Fund Management" section on page 26.
FMR pays FMR U.K., FMR Far East and FIIA for providing sub-advisory
services, and FIIA in turn pays FIIA(U.K.)L. FIIA or FMR Far East in
turn pays FIJ for providing sub-advisory services.
SUPPLEMENT TO THE
FIDELITY(registered trademark) ADVISOR
EMERGING ASIA FUND
INSTITUTIONAL CLASS
DECEMBER 29, 1999 REVISED FEBRUARY 3, 2000
PROSPECTUS
The following information replaces similar information found in the
"Fund Management" section on page 23.
FMR pays FMR U.K., FMR Far East and FIIA for providing sub-advisory
services, and FIIA in turn pays FIIA(U.K.)L. FIIA or FMR Far East in
turn pays FIJ for providing sub-advisory services.
SUPPLEMENT TO THE
FIDELITY(registered trademark) ADVISOR EMERGING MARKETS INCOME FUND
CLASS A, CLASS T, CLASS B, AND CLASS C FEBRUARY 29, 2000
PROSPECTUS
The following information replaces similar information found in the
"Fund Management" section on page 26.
(small solid bullet) FMR pays FMR U.K., FMR Far East, and FIIA for
providing sub-advisory services, and FIIA in turn pays FIIA(U.K.)L.
FIIA or FMR Far East in turn pays FIJ for providing sub-advisory
services.
SUPPLEMENT TO THE
FIDELITY(registered trademark) ADVISOR EMERGING MARKETS INCOME FUND
INSTITUTIONAL CLASS FEBURARY 29, 2000
PROSPECTUS
The following information replaces similar information found in the
"Fund Management" section on page 23.
(small solid bullet) FMR pays FMR U.K., FMR Far East, and FIIA for
providing sub-advisory services, and FIIA in turn pays FIIA(U.K.)L.
FIIA or FMR Far East in turn pays FIJ for providing sub-advisory
services.
SUPPLEMENT TO THE
FIDELITY(registered trademark) ADVISOR GLOBAL EQUITY FUND
CLASS A, CLASS T,
CLASS B, AND CLASS C DECEMBER 29, 1999 PROSPECTUS
The followin g information replaces similar information found in the
"Fund Management" section on page 23.
FMR pays FMR U.K., FMR Far East, and FIIA for providing
sub-advisory services, and FIIA in turn pays FIIA(U.K.)L. FIIA or FMR
Far East in turn pays FIJ for providing sub-advisory servi ces.
The following information replaces similar information found in the
"Fund Distribution" section beginning on page 30.
Class T of the fund has adopted a Distribution and Service Plan
pursuant to Rule 12b-1 under the Investment Company Act of 1940. Under
the plan, Class T of the fund is authorized to pay FDC a monthly 12b-1
fee as compensation for providing services intended to result in the
sale of Class T shares and/or shareholder support services. Class T of
the fund may pay FDC a 12b-1 fee at an annual rate of 0.75% of its
average net assets, or such lesser amount as the Trustees may
determine from time to time. Class T of the fund currently pays FDC a
monthly 12b-1 fee at an annual rate of 0.50% of its average net assets
throughout the month. Class T's 12b-1 fee rate may be increased only
when the Trustees believe that it is in the best interests of Class T
shareholders to do so.
SUPPLEMENT TO THE
FIDELITY(registered trademark) ADVISOR GLOBAL EQUITY FUND
INSTITUTIONAL CLASS DECEMBER 29, 1999 PROSPECTUS
The following information replaces similar information found in the
"Fund Management" section on page 20.
FMR pays FMR U.K., FMR Far East, and FIIA for providing sub-advisory
services, and FIIA in turn pays FIIA(U.K.)L. FIIA or FMR Far East in
turn pays FIJ for providing sub-advisory services.
SUPPLEMENT TO THE
FIDELITY(registered trademark) ADVISOR
INTERNATIONAL CAPITAL APPRECIATION FUND'S CLASS A, CLASS T,
CLASS B, AND CLASS C
DECEMBER 29, 1999 PROSPECTUS
The following information replaces similar information found in the
"Fund Management" section on page 24.
FMR pays FMR U.K., FMR Far East, and FIIA for providing sub-advisory
services, and FIIA in turn pays FIIA(U.K.)L. FIIA or FMR Far East in
turn pays FIJ for providing sub-advisory services.
The following information replaces similar information found in the
"Fund Distribution" section under the heading "Finder's Fee" on page
30.
3. For disability, payment of death benefits, or minimum required
distributions starting at age 70 from Traditional IRAs, Roth IRAs,
SIMPLE IRAs, SEPs, SARSEPs and plans covering a sole-proprietor or
self-employed individuals and their employees (formerly Keogh/H.R. 10
plans).
SUPPLEMENT TO THE
FIDELITY(registered trademark) ADVISOR
INTERNATIONAL CAPITAL
APPRECIATION FUND'S
INSTITUTIONAL CLASS
DECEMBER 29, 1999 PROSPECTUS
The following information replaces similar information found in the
"Fund Management" section on page 22.
FMR pays FMR U.K., FMR Far East, and FIIA for providing sub-advisory
services, and FIIA in turn pays FIIA(U.K.)L. FIIA or FMR Far East in
turn pays FIJ for providing sub-advisory services.
SUPPLEMENT TO THE
FIDELITY(registered trademark) ADVISOR
JAPAN FUND
CLASS A, CLASS T,
CLASS B AND CLASS C
DECEMBER 29, 1999 AS REVISED JUNE 16, 2000 PROSPECTUS
The following information replaces similar information found in the
"Fund Management" section on page 23.
FMR pays FMR U.K., FMR Far East, and FIIA for providing sub-advisory
services, and FIIA in turn pays FIIA(U.K.)L. FIIA or FMR Far East in
turn pays FIJ for providing sub-advisory services.
SUPPLEMENT TO THE
FIDELITY(registered trademark) ADVISOR
JAPAN FUND
INSTITUTIONAL CLASS
DECEMBER 29, 1999 AS REVISED JUNE 16, 2000 PROSPECTUS
The following information replaces similar information found in the
"Fund Management" section on page 21.
FMR pays FMR U.K., FMR Far East, and FIIA for providing sub-advisory
services, and FIIA in turn pays FIIA(U.K.)L. FIIA or FMR Far East in
turn pays FIJ for providing sub-advisory services.
SUPPLEMENT TO THE
FIDELITY(registered trademark) ADVISOR LATIN
AMERICA FUND
CLASS A, CLASS T,
CLASS B, AND CLASS C
DECEMBER 29, 1999
PROSPECTUS
The following information replaces similar information found under the
heading "Principal Investment Risks" in the "Investment Details"
section beginning on page 7.
LATIN AMERICA. The economies of countries in Latin America are all
considered emerging market economies. High interest, inflation, and
unemployment rates generally characterize each economy. Currency
devaluations in any country can have a significant affect on the
entire region. Because commodities such as agricultural products,
minerals, and metals represent a significant percentage of exports of
many Latin American countries, the economies of those countries are
particularly sensitive to fluctuations in commodity prices. Recently,
the markets in many Latin American countries have experienced
significant downturns as well as significant volatility. A small
number of industries, including the telephone services industry,
represent a large portion of the Latin American market as a whole. The
Latin American market also tends to be relatively concentrated in
certain issuers. For example, as of June 19, 2000, Telefonos de Mexico
SA accounted for approximately 14% of the MSCI Emerging Markets
Free-Latin America Index. The telephone services industry can be
significantly affected by increasing competition, government
regulation, and financing difficulties.
SUPPLEMENT TO THE
FIDELITY(registered trademark) ADVISOR LATIN
AMERICA FUND
INSTITUTIONAL CLASS
DECEMBER 29, 1999
PROSPECTUS
The following information replaces similar information found under the
heading "Principal Investment Risks" in the "Investment Details"
section beginning on page 6.
LATIN AMERICA. The economies of countries in Latin America are all
considered emerging market economies. High interest, inflation, and
unemployment rates generally characterize each economy. Currency
devaluations in any country can have a significant affect on the
entire region. Because commodities such as agricultural products,
minerals, and metals represent a significant percentage of exports of
many Latin American countries, the economies of those countries are
particularly sensitive to fluctuations in commodity prices. Recently,
the markets in many Latin American countries have experienced
significant downturns as well as significant volatility. A small
number of industries, including the telephone services industry,
represent a large portion of the Latin American market as a whole. The
Latin American market also tends to be relatively concentrated in
certain issuers. For example, as of June 19, 2000, Telefonos de Mexico
SA accounted for approximately 14% of the MSCI Emerging Markets
Free-Latin America Index. The telephone services industry can be
significantly affected by increasing competition, government
regulation, and financing difficulties.
SUPPLEMENT TO THE
FIDELITY(registered trademark) ADVISOR OVERSEAS FUND
CLASS A, CLASS T,
CLASS B, CLASS C
DECEMBER 29, 1999
PROSPECTUS
The following information replaces similar information found in the
"Fund Management" section on page 25.
FMR pays FMR U.K., FMR Far East, and FIIA for providing sub-advisory
services, and FIIA in turn pays FIIA(U.K.)L. FIIA or FMR Far East in
turn pays FIJ for providing sub-advisory services.
SUPPLEMENT TO THE
FIDELITY(registered trademark) ADVISOR OVERSEAS FUND
INSTITUTIONAL CLASS
DECEMBER 29, 1999
PROSPECTUS
The following information replaces similar information found in the
"Fund Management" section on page 22.
FMR pays FMR U.K., FMR Far East, and FIIA for providing sub-advisory
services, and FIIA in turn pays FIIA(U.K.)L. FIIA or FMR Far East in
turn pays FIJ for providing sub-advisory services.
SUPPLEMENT TO THE
FIDELITY ADVISOR LATIN AMERICA FUND, FIDELITY ADVISOR EMERGING ASIA
FUND, FIDELITY ADVISOR JAPAN FUND, FIDELITY ADVISOR INTERNATIONAL
CAPITAL APPRECIATION FUND, FIDELITY ADVISOR EUROPE CAPITAL
APPRECIATION FUND, FIDELITY ADVISOR OVERSEAS FUND, FIDELITY ADVISOR
DIVERSIFIED INTERNATIONAL FUND, FIDELITY ADVISOR GLOBAL EQUITY FUND,
FIDELITY ADVISOR HIGH YIELD FUND, FIDELITY ADVISOR HIGH INCOME FUND,
FIDELITY ADVISOR GOVERNMENT INVESTMENT FUND, FIDELITY ADVISOR MORTGAGE
SECURITIES FUND, FIDELITY ADVISOR INTERMEDIATE BOND FUND, FIDELITY
ADVISOR SHORT FIXED-INCOME FUND, AND FIDELITY ADVISOR MUNICIPAL INCOME
FUND
FUNDS OF FIDELITY ADVISOR SERIES II AND FIDELITY ADVISOR SERIES VIII
CLASS A, CLASS T, CLASS B, CLASS C, INSTITUTIONAL CLASS, AND INITIAL
CLASS
DECEMBER 29, 1999
REVISED JUNE 16, 2000
STATEMENT OF ADDITIONAL INFORMATION
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND IN THE
"SPECIAL CONSIDERATIONS REGARDING LATIN AMERICA" SECTION BEGINNING ON
PAGE 33.
The telephone services industry comprised a major segment of the Latin
American market as a whole, as represented by the MSCI Emerging
Markets Free - Latin America Index as of June 19, 2000. The pace of
the privatization of most of Latin America's telephone services
companies has been accelerating and is generally expected to
ameliorate the industry's worsening infrastructure problems and
substantially expand and improve services to the consumer. Following
the privatization and breakup of many of Latin America's
telecommunications monopolies, telephone services companies are now
faced with an increasingly competitive operating environment that
could substantially affect their profit margins adversely. In
addition, because these companies are regulated providers of a highly
visible basic service, in a sovereign stress scenario a company may
not be permitted to pass on increased operating expenses or
devaluation-related price increases directly and immediately to
consumers. Attempts by management to undertake restructuring
initiatives, such as cutting employment overhead, could also meet with
strong government and union opposition. Latin America countries have
periodically experienced sharp economic slowdowns, high interest
rates, and spiraling inflation. In this environment, the earnings and
profits of telephone services companies could be particularly
vulnerable. Access to capital could be substantially restricted by the
market's reaction to regional or global economic crisis. Because
telephone services companies issue among Latin America's most liquid
stocks, they may be among the first companies whose shares will be
sold by foreign investors seeking to repatriate their overseas
investments in times of regional or global crisis. Accordingly, shares
of telephone services companies may be subject to a high degree of
price volatility in these situations.
THE FOLLOWING INFORMATION SUPPLEMENTS THE INFORMATION FOUND IN THE
"TRUSTEES AND OFFICERS" SECTION BEGINNING ON PAGE 91.
MARIE L. KNOWLES (53), Member of the Advisory Board (2000). Beginning
in 1972, Ms. Knowles served in various positions with Atlantic
Richfield Company (ARCO) (diversified energy) including Executive Vice
President and Chief Financial Officer (1996-2000); Director
(1996-1998); and Senior Vice President (1993-1996). In addition, Ms.
Knowles served as President of ARCO Transportation Company
(1993-1996). She currently serves as a Director of Phelps Dodge
Corporation (copper mining and manufacturing), URS Corporation
(multidisciplinary engineering, 1999), and America West Holdings
Corporation (aviation and travel services, 1999). Ms. Knowles also
serves as a member of the National Board of the Smithsonian
Institution and she is a trustee of the Brookings Institution.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND IN THE
"MANAGEMENT CONTRACTS" SECTION BEGINNING ON PAGE 99.
On behalf of Advisor High Yield, Advisor High Income, Advisor Mortgage
Securities, Advisor Intermediate Bond, and Advisor Short Fixed-Income,
FMR has entered into sub-advisory agreements with FMR U.K. and FMR Far
East. On behalf of Advisor Latin America ,Advisor Emerging Asia,
Advisor Japan, Advisor International Capital Appreciation, Advisor
Europe Capital Appreciation, Advisor Overseas, Advisor Diversified
International, and Advisor Global Equity, FMR has entered into
sub-advisory agreements with FMR U.K., FMR Far East, and FIIA. On
behalf of Advisor Latin America, Advisor Emerging Asia, Advisor Japan,
Advisor International Capital Appreciation, Advisor Europe Capital
Appreciation, Advisor Overseas, Advisor Diversified International, and
Advisor Global Equity, FIIA, in turn, has entered into a sub-advisory
agreement with FIIA(U.K.)L. On behalf of Advisor Emerging Asia,
Advisor Japan, Advisor International Capital Appreciation, Advisor
Overseas, Advisor Diversified International, and Advisor Global
Equity, FIIA, in turn, has entered into a sub-advisory agreement with
FIJ. Pursuant to the sub-advisory agreements, FMR may receive from the
sub-advisers investment research and advice on issuers outside the
United States and FMR may grant the sub-advisers investment management
authority as well as the authority to buy and sell securities if FMR
believes it would be beneficial to the funds.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND IN THE
"MANAGEMENT CONTRACTS" SECTION BEGINNING ON PAGE 99.
For providing non-discretionary investment advice and research
services the sub-advisers are compensated as follows:
(small solid bullet) FMR pays FMR U.K. and FMR Far East fees equal to
110% and 105%, respectively, of FMR U.K.'s and FMR Far East's costs
incurred in connection with providing investment advice and research
services.
(small solid bullet) FMR pays FIIA a fee equal to 30% of FMR's monthly
management fee with respect to the average net assets held by the fund
for which the sub-adviser has provided FMR with investment advice and
research services.
(small solid bullet) FIIA pays FIIA(U.K.)L a fee equal to 110% of
FIIA(U.K.)L's costs incurred in connection with providing investment
advice and research services.
(small solid bullet) FIIA pays FIJ a fee equal to 105% of FIJ's costs
incurred in connection with providing investment advice and research
services.
(small solid bullet) FMR Far East pays FIJ a fee equal to 100% of
FIJ's costs incurred in connection with providing investment advice
and research services for a fund to FMR Far East.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND IN THE
"MANAGEMENT CONTRACTS" SECTION BEGINNING ON PAGE 99.
For providing discretionary investment management and executing
portfolio transactions, the sub-advisers are compensated as follows:
(small solid bullet) FMR pays FMR U.K. and FMR Far East a fee equal to
50% of its monthly management fee (including any performance
adjustment) with respect to the fund's average net assets managed by
the sub-adviser on a discretionary basis.
(small solid bullet) FMR pays FIIA a fee equal to 57% of its monthly
management fee (including any performance adjustment) with respect to
the fund's average net assets managed by the sub-adviser on a
discretionary basis.
(small solid bullet) FIIA pays FIIA(U.K.)L a fee equal to a percentage
of the fund's monthly average net assets managed by FIIA(U.K.)L on a
discretionary basis. The fee rate is based on the monthly average net
assets managed by FIIA(U.K.)L on behalf of FIIA pursuant to
sub-advisory arrangements less any assets managed by FIIA(U.K.)L on
behalf of FIIA on which a reduction is applicable to the sub-advisory
fee paid to FIIA(U.K.)L (Average Group Assets). The fee rate is
calculated on a cumulative basis pursuant to the graduated fee rate
schedule below.
Average Group Assets Annualized Fee Rate
from $0 - $500 million 0.30%
$500 million - $1 billion 0.25%
over $1 billion 0.20%
FIIA(U.K.)L's fee will not exceed 50% of the fee that FIIA receives
from FMR for services provided on behalf of the fund.
(small solid bullet) FIIA pays FIJ a fee equal to a percentage of the
fund's monthly average net assets managed by FIJ on a discretionary
basis. The fee rate is based on the monthly average net assets managed
by FIJ on behalf of FIIA pursuant to sub-advisory arrangements less
any assets managed by FIJ on behalf of FIIA on which a reduction is
applicable to the sub-advisory fee paid to FIJ (Average Group Assets).
The fee rate is calculated on a cumulative basis pursuant to the
graduated fee rate schedule below.
Average Group Assets Annualized Fee Rate
from $0 - $200 million 0.30%
$200 million - $500 million 0.25%
over $500 million 0.20%
FIJ's fee will not exceed 50% of the fee that FIIA receives from FMR
for services provided on behalf of the fund.
SUPPLEMENT TO THE
FIDELITY(registered trademark) ADVISOR STRATEGIC INCOME FUND
A FUND OF FIDELITY ADVISOR SERIES II
FIDELITY ADVISOR EMERGING MARKETS INCOME FUND
A FUND OF FIDELITY ADVISOR SERIES VIII
CLASS A, CLASS T, CLASS B, CLASS C, AND INSTITUTIONAL CLASS
FEBRUARY 29, 2000
STATEMENT OF ADDITIONAL INFORMATION
THE FOLLOWING INFORMATION SUPPLEMENTS THE INFORMATION FOUND IN THE
"TRUSTEES AND OFFICERS" SECTION BEGINNING ON PAGE 35.
J. MICHAEL COOK (57), Member of the Advisory Board (2000). Prior to
Mr. Cook's retirement in May 1999, he served as Chairman and Chief
Executive Officer of Deloitte & Touche LLP, Chairman of the Deloitte &
Touche Foundation, and a member of the Board of Deloitte Touche
Tohmatsu. He currently serves as an Executive in Residence of the
Columbia Business School and as a Director of Dow Chemical Company
(2000), HCA - The Healthcare Company (1999), and Children First
(1999). He is a member of the Executive Committee of the Securities
Regulation Institute, a member of the Advisory Board of Boardroom
Consultants, past chairman and a member of the Board of Catalyst (a
leading organization for the advancement of women in business), and a
Director of the STAR Foundation (Society to Advance the Retarded and
Handicapped). He also serves as a member of the Board and Executive
Committee and as Co-Chairman of the Audit and Finance Committee of the
Center for Strategic & International Studies, a member of the Board of
Overseers of the Columbia Business School, and a Member of the
Advisory Board of the Graduate School of Business of the University of
Florida.
MARIE L. KNOWLES (53), Member of the Advisory Board (2000). Beginning
in 1972, Ms. Knowles served in various positions with Atlantic
Richfield Company (ARCO) (diversified energy) including Executive Vice
President and Chief Financial Officer (1996-2000); Director
(1996-1998); and Senior Vice President (1993-1996). In addition, Ms.
Knowles served as President of ARCO Transportation Company
(1993-1996). She currently serves as a Director of Phelps Dodge
Corporation (copper mining and manufacturing), URS Corporation
(multidisciplinary engineering, 1999), and America West Holdings
Corporation (aviation and travel services, 1999). Ms. Knowles also
serves as a member of the National Board of the Smithsonian
Institution and she is a trustee of the Brookings Institution.
THE FOLLOWING INFORMATION REPLACES THE SIMILAR INFORMATION FOUND IN
THE "TRUSTEES AND OFFICERS" SECTION BEGINNING ON PAGE 35.
ROBERT A. LAWRENCE (47), is Vice President of Advisor Strategic Income
and Advisor Emerging Markets Income (2000). Mr. Lawrence serves as
Vice President of certain High Income Bond Funds (2000), Vice
President of Fidelity Real Estate High Income Fund (1995) and Fidelity
Real Estate High Income Fund II (1996), Vice President of certain
Equity Funds (1997), and Senior Vice President of FMR (1993).
THE FOLLOWING INFORMATION HAS BEEN REMOVED FROM THE "TRUSTEES AND
OFFICERS" SECTION BEGINNING ON PAGE 35.
BART A. GRENIER (40), is Vice President of certain High Income Bond
Funds (1997 through February 29, 2000). Mr. Grenier rejoined Fidelity
in August 1997 from DDJ Capital Management, LLC, where he had served
as Managing Director since April 1997. Mr. Grenier originally joined
Fidelity in 1991 as a senior analyst. Mr. Grenier served as a Director
of High-Income Group Research and as Director of U.S. Equity Research
from 1994 to March 1996. He later became Group Leader of the
Income-Growth and Asset Allocation-Income Groups in 1996 and Assistant
Equity Division Head in 1997.
MATTHEW N. KARSTETTER (38), Deputy Treasurer (1998), is Deputy
Treasurer of the Fidelity funds and is an employee of FMR (1998).
Before joining FMR, Mr. Karstetter served as Vice President of
Investment Accounting and Treasurer of IDS Mutual Funds at American
Express Financial Advisors (1996-1998). Prior to 1996, Mr. Karstetter
was Vice President, Mutual Fund Services at State Street Bank & Trust
(1991-1996).
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND IN THE
"MANAGEMENT CONTRACTS" SECTION ON PAGE 41.
On behalf of Advisor Strategic Income and Advisor Emerging Markets
Income, FMR has entered into sub-advisory agreements with FMR U.K.,
FMR Far East, and FIIA. FIIA, in turn, has entered into a sub-advisory
agreement with FIIA(U.K.)L and FIJ. Pursuant to the sub-advisory
agreements, FMR may receive from the sub-advisers investment research
and advice on issuers outside the United States and FMR may grant the
sub-advisers investment management authority as well as the authority
to buy and sell securities if FMR believes it would be beneficial to
the funds.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND IN THE
"MANAGEMENT CONTRACTS" SECTION ON PAGE 42.
For providing non-discretionary investment advice and research
services the sub-advisers are compensated as follows:
(small solid bullet) FMR pays FMR U.K. and FMR Far East fees equal to
110% and 105%, respectively, of FMR U.K.'s and FMR Far East's costs
incurred in connection with providing investment advice and research
services.
(small solid bullet) FMR pays FIIA a fee equal to 30% of FMR's monthly
management fee with respect to the average net assets held by the fund
for which the sub-adviser has provided FMR with investment advice and
research services.
(small solid bullet) FIIA pays FIIA(U.K.)L a fee equal to 110% of
FIIA(U.K.)L's costs incurred in connection with providing investment
advice and research services.
(small solid bullet) FIIA pays FIJ a fee equal to 105% of FIJ's costs
incurred in connection with providing investment advice and research
services.
(small solid bullet) FMR Far East pays FIJ a fee equal to 100% of
FIJ's costs incurred in connection with providing investment advice
and research services for a fund to FMR Far East.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND IN THE
"MANAGEMENT CONTRACTS" SECTION ON PAGE 42.
For providing discretionary investment management and executing
portfolio transactions, the sub-advisers are compensated as follows:
(small solid bullet) FMR pays FMR U.K. and FMR Far East a fee equal to
50% of its monthly management fee with respect to the fund's average
net assets managed by the sub-adviser on a discretionary basis.
(small solid bullet) FMR pays FIIA a fee equal to 57% of its monthly
management fee with respect to the fund's average net assets managed
by the sub-adviser on a discretionary basis.
(small solid bullet) FIIA pays FIIA(U.K.)L a fee equal to a percentage
of the fund's monthly average net assets managed by FIIA(U.K.)L on a
discretionary basis. The fee rate is based on the monthly average net
assets managed by FIIA(U.K.)L on behalf of FIIA pursuant to
sub-advisory arrangements less any assets managed by FIIA(U.K.)L on
behalf of FIIA on which a reduction is applicable to the sub-advisory
fee paid to FIIA(U.K.)L (Average Group Assets). The fee rate is
calculated on a cumulative basis pursuant to the graduated fee rate
schedule below.
Average Group Assets Annualized Fee Rate
from $0 - $500 million 0.23%
$500 million - $1 billion 0.20%
over $1 billion 0.17%
FIIA(U.K.)L's fee will not exceed 50% of the fee that FIIA receives
from FMR for services provided on behalf of the fund.
(small solid bullet) FIIA pays FIJ a fee equal to a percentage of the
fund's monthly average net assets managed by FIJ on a discretionary
basis. The fee rate is based on the monthly average net assets managed
by FIJ on behalf of FIIA pursuant to sub-advisory arrangements less
any assets managed by FIJ on behalf of FIIA on which a reduction is
applicable to the sub-advisory fee paid to FIJ (Average Group Assets).
The fee rate is calculated on a cumulative basis pursuant to the
graduated fee rate schedule below.
Average Group Assets Annualized Fee Rate
from $0 - $200 million 0.20%
$200 million - $500 million 0.17%
over $500 million 0.15%
FIJ's fee will not exceed 50% of the fee that FIIA receives from FMR
for services provided on behalf of the fund.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND IN THE
"MANAGEMENT CONTRACTS" SECTION ON PAGE 42.
For discretionary investment management and execution of portfolio
transactions, fees paid to FIIA and FIIA(U.K.)L on behalf of Advisor
Strategic Income for the past three fiscal years are shown in the
table below.
Fiscal Year Ended December 31 FIIAA FIIA(U.K.)LB
Advisor Strategic Income
1999 $ 99,344 $ 33,170
1998 $ 0 $ 0
1997 $ 0 $ 0
A Prior to August 1, 1999, FMR paid FIIA a fee equal to 50% of its
monthly management fee with respect to the fund's average net assets
managed by the sub-adviser on a discretionary basis.
B Prior to July 1, 2000, FIIA paid FIIA(U.K.)L a fee equal to 110% of
FIIA(U.K.)L's costs incurred in connection with providing
discretionary investment management services.
