FIDELITY ADVISOR SERIES V, N-30D, 1995-08-23

FIDELITY ADVISOR SERIES V
N-30D, 1995-08-23

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(2_FIDELITY_LOGOS)FIDELITY ADVISOR
(registered trademark)

GLOBAL RESOURCES
FUND - CLASS A
SEMIANNUAL REPORT
APRIL 30, 1995
CONTENTS

PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.

PERFORMANCE 4 How the fund has done over time.

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

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

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

FINANCIAL STATEMENTS 19 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.

NOTES 23 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 some 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
PERFORMANCE: THE BOTTOM LINE

Advisor Global Resources - Class 4.57% 10.55% 94.03% 183.44%
A

Advisor Global Resources - Class A
(incl. max. 4.75% sales charge) -0.40% 5.30% 84.82% 169.98%

S&P 500(registered trademark) 10.47% 17.47% 81.29% 164.97%

Average Natural Resources Fund 0.10% 6.28% 32.99% n/a

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, six months, one year, five years, or
since the fund started on December 29, 1987. 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 the fund's returns to the
performance of the Standard & Poor's Composite Index of 500 Stocks - a
common proxy for the U.S. stock market. To measure how the fund's
performance stacked up against its peers, you can compare it to the average
natural resources fund, which reflects the performance of 36 natural
resources funds with similar objectives tracked by Lipper Analytical
Services over the past six months. Both benchmarks include reinvested
dividends and capital gains, if any, and exclude the effects of sales
charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED APRIL 30, 1995 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

Advisor Global Resources - Class A 10.55% 14.18% 15.25%

Advisor Global Resources - Class A
(incl. max. 4.75% sales charge) 5.30% 13.07% 14.48%

S&P 500 17.47% 12.64% 14.19%

Average Natural Resources Fund 6.28% 5.66% n/a

AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had performed at a
constant rate each year.
$10,000 OVER LIFE OF FUND
Fidelity Advisor GStandard & Poor's
12/29/87 9525.00 10000.00
12/31/87 9505.95 10064.43
01/31/88 9410.70 10488.14
02/29/88 10125.08 10976.89
03/31/88 10401.30 10637.70
04/30/88 10572.75 10755.78
05/31/88 10401.30 10849.36
06/30/88 11087.10 11347.34
07/31/88 11039.48 11304.22
08/31/88 10744.20 10919.88
09/30/88 10696.58 11385.07
10/31/88 10925.18 11701.57
11/30/88 10677.53 11534.24
12/31/88 11036.53 11736.09
01/31/89 11928.58 12595.17
02/28/89 11752.25 12281.55
03/31/89 11980.45 12567.71
04/30/89 12353.86 13219.97
05/31/89 12644.30 13755.38
06/30/89 12602.81 13676.98
07/31/89 13515.60 14912.01
08/31/89 13920.14 15204.28
09/30/89 13546.72 15141.94
10/31/89 13069.58 14790.65
11/30/89 13650.45 15092.38
12/31/89 14693.81 15454.60
01/31/90 13766.97 14417.59
02/28/90 14411.24 14603.58
03/31/90 14682.51 14990.58
04/30/90 13913.91 14615.81
05/31/90 15326.77 16040.85
06/30/90 15134.62 15931.78
07/31/90 15880.62 15880.79
08/31/90 15462.41 14445.17
09/30/90 14976.38 13741.69
10/31/90 13902.60 13682.60
11/30/90 14128.66 14566.50
12/31/90 13917.68 14972.90
01/31/91 14376.90 15625.72
02/28/91 16449.24 16742.96
03/31/91 16060.68 17148.14
04/30/91 16143.10 17189.30
05/31/91 16920.23 17931.87
06/30/91 15942.93 17110.59
07/31/91 16472.79 17907.95
08/31/91 16896.68 18332.37
09/30/91 16237.30 18026.21
10/31/91 16614.09 18267.77
11/30/91 15271.77 17531.58
12/31/91 15931.41 19537.19
01/31/92 16920.78 19173.80
02/29/92 17301.30 19423.06
03/31/92 16870.04 19044.31
04/30/92 17491.57 19604.21
05/31/92 17960.88 19700.27
06/30/92 17377.41 19406.73
07/31/92 18075.04 20200.47
08/31/92 17808.67 19786.36
09/30/92 17986.25 20019.84
10/31/92 17605.73 20089.91
11/30/92 17834.04 20774.97
12/31/92 18055.83 21030.51
01/31/93 18634.64 21207.16
02/28/93 19156.97 21495.58
03/31/93 20427.52 21949.14
04/30/93 21528.65 21417.97
05/31/93 22587.44 21991.97
06/30/93 22898.02 22055.75
07/31/93 22587.44 21967.52
08/31/93 23886.22 22800.09
09/30/93 23759.16 22624.53
10/31/93 24832.07 23092.86
11/30/93 23900.33 22873.48
12/31/93 24906.04 23150.25
01/31/94 26420.39 23937.36
02/28/94 25597.05 23288.65
03/31/94 24023.89 22273.27
04/30/94 24420.85 22558.37
05/31/94 24744.31 22928.32
06/30/94 24303.23 22366.58
07/31/94 25126.57 23100.20
08/31/94 26346.88 24047.31
09/30/94 26214.56 23458.15
10/31/94 25817.59 23985.96
11/30/94 24126.80 23112.39
12/31/94 24338.35 23455.15
01/31/95 23860.25 24063.34
02/28/95 24562.46 25001.09
03/31/95 25937.00 25738.87
04/28/95 26997.79 26496.88

$10,000 OVER LIFE OF FUND: Let's say you invested $10,000 in Fidelity
Advisor Global Resources Fund - Class A on December 29, 1987, when the fund
started, and paid the maximum 4.75% sales charge. As the chart shows, by
April 30, 1995, the value of your investment would have grown to $26,998 -
a 169.98% 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 $26,497 - a 164.97% 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. Foreign
stocks involve greater risks, due
to political and economic
uncertainties. 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 Malcolm MacNaught, Portfolio Manager of Fidelity Advisor
Global Resources Fund
Q. MALCOLM, HOW HAS THE FUND
PERFORMED?
A. For the six and 12 months ended April 30, 1995, the fund had total
returns of 4.57% and 10.55%, respectively. During the same periods, the
average natural resources fund returned 0.10% and 6.28%, respectively, as
tracked by Lipper Analytical Services.
Q. WHAT HELPED THE FUND PERFORM BETTER THAN THE AVERAGE OVER THE PAST SIX
MONTHS?
A. One reason for the fund's above-average performance was its energy
holdings, which accounted for about 24% of investments at the end of the
period. Throughout most of 1994, fuel prices remained weak because of warm
weather and excess inventories. A relatively cool summer and warm winter
kept a lid on demand. At the same time, inventories were high so supply was
ample. Low energy prices kept energy stock prices depressed during the
fourth quarter of last year. I used that period of weakness to buy more
natural gas stocks, adding names like Burlington Resources. Recently oil
and gas inventories fell, prices rose, and energy stocks generally
improved. Another reason for the improvement in prices was the switching by
industrial and commercial users to natural gas because of its cheapness
relative to oil.
Q. WHERE ELSE ARE YOU FINDING OPPORTUNITIES IN THE ENERGY SECTOR?
A. In companies that have developed new technologies to improve their
chances of finding new oil fields and can re-evaluate older fields for
possible new drilling sites. These new technologies have dramatically
improved the chances of finding oil and gas at reduced costs.
Q. WHAT'S YOUR OUTLOOK FOR ENERGY COMPANIES FOR THE REMAINDER OF 1995?
A. Over the next six months, I believe that oil prices could remain firm as
the global economic recovery continues. What's more, developing economies
continue to place more demands on the world's energy reserves and
production. If we have a normal summer and winter, in terms of energy
usage, oil and gas prices could be better in 1995 than they were in 1994.
Q. HOW DID GOLD STOCKS FARE DURING THE PERIOD?
A. As the price of that precious metal went higher, many of the fund's gold
stocks rose roughly 15% from their 1994 lows. Barrick Gold Corp., one of
the fund's largest holdings, acquired Lac Minerals, making it an even more
attractive investment than it was before. I think Barrick Gold Corp. can
double its production over the next few years.
Q. WHAT ABOUT BASIC INDUSTRIES LIKE ALUMINUM AND PAPER?
A. Aluminum stocks did better as that metal's price moved to near
historical highs. Economic improvement translated into higher demand for
aluminum. Also, aluminum is becoming an increasingly larger component of
automobile engines and structural car parts, which also fueled additional
demand. Paper and forest companies, which made up 5.8% of the fund's
investments at the end of the period, also did well as paper prices rose.
Intermediate papers, or white, coated papers, were especially attractive
because demand continues to rise while supply remains fairly flat.
Q. YOU'VE REDUCED THE FUND'S STAKE IN DRUG STOCKS. WHAT'S YOUR REASONING
BEHIND THAT?
A. In general, drug stock prices rose in the second half of 1994, so I
locked in profits by selling some of these companies, and found
opportunities with technology and pollution control companies. Technology
stocks, which made up 4.7% of investments at the end of the period, are
experiencing stronger-than-expected earnings. That has helped holdings like
IBM and Texas Instruments. Meanwhile, pollution control companies such as
United Waste Systems and Browning-Ferris Industries benefited from
improving volume and prices. As a result, these types of companies could
grow earnings between 15% and 25% in 1995.
Q. WHILE THE FUND PERFORMED WELL,
THERE MUST HAVE BEEN SOME
DISAPPOINTMENTS . . .
A. Sure. In hindsight, I could have had more of the fund in
non-commodity-driven, or non-natural resource stocks like technology stocks
and financial stocks. However, investors tend to choose natural resource
funds as inflation hedges and should expect the fund's performance to
reflect conditions in the natural resources market. The fund has the
flexibility to invest some of its assets outside the natural resources
sector when I feel market conditions warrant.
Q. WHAT WILL YOUR STRATEGY BE OVER THE NEXT SIX MONTHS?
A. The stock market generally seems to be fairly priced right now, meaning
that stocks aren't too expensive or too cheap relative to their underlying
value. Stocks that are interest rate-sensitive - like lumber and cement -
may be interesting buys during the summer if rates come down, which I
believe they will. My reasoning is that lower interest rates could ignite
housing starts and other types of building. As always, I'll stick with
well-managed companies that have above-average revenue growth and the
ability to grow earnings.

FUND FACTS
GOAL: long-term capital
growth and protection of
purchasing power by
investing in natural
resource-related stocks
START DATE: December 29,
1987
SIZE: as of April 30, 1995,
more than $222 million
MANAGER: Malcolm
MacNaught, since December
1987; joined Fidelity in 1968
(checkmark)
MALCOLM MACNAUGHT ON
OVERSEAS OPPORTUNITIES:
"With many foreign
economies currently in a
recovery stage, or on the
verge of one, I'm paying
particular attention to
companies with a large
percentage of their business
stemming from sales in
overseas markets. Scott
Paper, for instance, recently
launched a worldwide
marketing program that
should boost its overseas
earnings. Another example is
Tambrands, whose women's
personal hygiene products
are gaining wider acceptance
across the globe. Looking
ahead, global companies
could have better
performance than companies
with only domestic exposure
because of the cheapness of
the U.S. dollar. The United
States is the lowest-cost
producer of many products
and services."
(solid bullet) Basic industry companies
made up the fund's largest
sector weighting as of April
30, 1995, and include:
chemicals and plastics
(11.6%); iron and steel
(3.4%); metals and mining
(8.4%); packaging and
containers (0.3%); and paper
and forest products (5.8%).
INVESTMENT CHANGES

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

Alcan Aluminium Ltd. 1.4 1.0

Barrick Gold Corp. 1.4 1.2

Western Mining Corp. Holdings 1.3 0.0
Ltd.

Scott Paper Co. 1.3 1.0

Pioneer Group, Inc. 1.2 0.9

Great Lakes Chemical Corp. 1.2 1.0

Aluminum Co. of America 1.1 0.7

RJR Nabisco Holdings Corp. 1.1 1.0

Ashanti Goldfields Ltd. GDR 1.1 0.0

Johnson & Johnson 1.1 1.0

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

Basic Industries 29.5 29.0

Energy 24.4 22.9

Health 7.8 12.9

Industrial Machinery & Equipment 7.2 6.9

Precious Metals 6.3 4.4

ASSET ALLOCATION
AS OF APRIL 30, 1995 * AS OF OCTOBER 31, 1994 **
6.8
Row: 1, Col: 1, Value: 0.0
Row: 1, Col: 2, Value: 6.8
Row: 1, Col: 3, Value: 43.2
Row: 1, Col: 4, Value: 40.0
Row: 1, Col: 1, Value: 7.2
Row: 1, Col: 2, Value: 50.0
Row: 1, Col: 3, Value: 42.8
Stocks 93.2%
Short-term
investments 6.8%
FOREIGN
INVESTMENTS 25.5%
Stocks 92.8%
Short-term
investments 7.2%
FOREIGN
INVESTMENTS 19.1%

*
INVESTMENTS APRIL 30, 1995 (UNAUDITED)

Showing Percentage of Total Value of Investment in Securities

COMMON STOCKS - 92.4%
SHARES VALUE
(NOTE 1)
AEROSPACE & DEFENSE - 0.1%
DEFENSE ELECTRONICS - 0.1%
Tech-Sym Corp. (a) 10,000 $ 252,500
BASIC INDUSTRIES - 29.5%
CHEMICALS & PLASTICS - 11.6%
AEP Industries, Inc. 52,000 1,222,000
AT Plastics, Inc. 60,000 508,868
Cambrex Corp. 15,000 511,875
Cominco Fertilizer Ltd. 50,000 1,534,902
Eastman Chemical Co. 36,000 2,043,000
Engelhard Corp. 50,000 1,918,750
Geon Co. 60,000 1,620,000
Georgia Gulf Corp. 10,000 326,250
Grace (W.R.) & Co. 25,000 1,340,625
Great Lakes Chemical Corp. 45,000 2,643,750
Hanna (M.A.) Co. 48,300 1,201,463
Intertape Polymer Group, Inc. 105,000 2,235,978
Methanex Corp. (a) 100,000 1,050,924
Monsanto Co. 21,000 1,748,250
Nalco Chemical Co. 60,000 2,100,000
Potash Corp. of Saskatchewan 43,000 2,299,126
Rohm & Haas Co. 36,000 2,092,500
26,398,261
IRON & STEEL - 3.4%
AK Steel Holding Corp. (a) 30,000 806,250
Armco, Inc. (a) 310,000 2,170,000
J & L Specialty Steel, Inc. 68,500 1,267,250
Quanex Corp. 55,000 1,278,750
Republic Engineered Steels, Inc. 153,000 1,224,000
Schnitzer Steel, Inc. Class A 45,000 978,750
7,725,000
METALS & MINING - 8.4%
Alcan Aluminium Ltd. 115,000 3,265,239
Alumax, Inc. (a) 81,000 2,288,250
Aluminum Co. of America 57,000 2,557,875
Castech Aluminum Group (a) 101,000 1,338,250
De Beers Consolidated Mines Ltd. ADR 50,000 1,381,250
Diamond Fields Resources, Inc. 50,000 1,673,181
IMCO Recycling, Inc. 100,000 1,575,000
COMMON STOCKS - CONTINUED
SHARES VALUE
(NOTE 1)
BASIC INDUSTRIES - CONTINUED
METALS & MINING - CONTINUED
Kaiser Aluminum Corp. (a) 65,000 $ 731,250
Reynolds Metals Co. 47,500 2,392,813
Still Watermining Co. (a) 70,000 1,347,500
Union Miniere SA 7,500 570,652
19,121,260
PACKAGING & CONTAINERS - 0.3%
Grupo Industrial Durango SA de CV ADR (a) 82,200 657,600
PAPER & FOREST PRODUCTS - 5.8%
Asia Pacific Resources International Class A (a) 200,000 1,575,000
Champion International Corp. 25,000 1,100,000
Georgia-Pacific Corp. 20,000 1,587,500
International Paper Co. 18,000 1,386,000
Mead Corp. 30,000 1,552,500
Scott Paper Co. 32,000 2,852,000
Temple-Inland, Inc. 34,000 1,496,000
Willamette Industries, Inc. 30,000 1,537,500
13,086,500
TOTAL BASIC INDUSTRIES 66,988,621
CONSTRUCTION & REAL ESTATE - 3.4%
BUILDING MATERIALS - 2.2%
Centex Construction Products (a) 110,000 1,375,000
Lafarge Corp. 101,091 2,034,456
Medusa Corp. 70,200 1,588,275
4,997,731
CONSTRUCTION - 0.5%
Kaufman & Broad Home Corp. 90,000 1,181,250
REAL ESTATE INVESTMENT TRUSTS - 0.7%
Storage USA, Inc. 30,000 858,750
Trizec Ltd. (a) 100,000 663,741
1,522,491
TOTAL CONSTRUCTION & REAL ESTATE 7,701,472
COMMON STOCKS - CONTINUED
SHARES VALUE
(NOTE 1)
DURABLES - 0.6%
AUTOS, TIRES, & ACCESSORIES - 0.6%
Cummins Engine Co., Inc. 10,000 $ 447,500
Dana Corp. 33,000 849,750
1,297,250
ENERGY - 23.6%
ENERGY SERVICES - 6.8%
Atwood Oceanics, Inc. (a) 36,400 500,500
BJ Services Co. (a) 30,200 690,825
Dreco Energy Services Ltd. Class A (a) 100,000 1,375,000
Dual Drilling Co. (a) 110,000 962,500
Global Marine, Inc. (a) 150,000 656,250
Marine Drilling Cos., Inc. (a) 225,500 944,281
Nabors Industries, Inc. (a) 185,000 1,745,938
Noble Drilling Corp. (a) 200,000 1,325,000
Precision Drilling Class A (a) 70,000 716,288
Pride Petroleum Services, Inc. (a) 245,000 1,960,000
Seitel, Inc. (a) 18,000 576,000
Smith International, Inc. (a) 95,000 1,638,750
Sonat Offshore Drilling, Inc. 5,100 137,700
Tuboscope Vetco Corp. (a) 150,000 1,050,000
Weatherford International, Inc. (a) 100,000 1,100,000
15,379,032
OIL & GAS - 16.8%
Amerada Hess Corp. 48,000 2,430,000
Anderson Exploration Ltd. (a) 105,700 1,237,500
Apache Corp. 38,000 1,026,000
Atlantic Richfield Co. 12,000 1,374,000
Barrett Resources Corp. (a) 10,000 235,000
Barrington Petroleum Ltd. (a) 169,800 594,823
Blue Range Resource Corp. Class A (a) 124,200 961,761
Blue Range Resource Corp. Class A (a) (b) 46,000 356,208
British Petroleum PLC ADR 22,000 1,894,750
Burlington Resources, Inc. 60,000 2,347,500
Canadian Pioneer (a) 246,518 309,067
Chieftain International, Inc. (a) 160,000 2,271,470
Coastal Corp. (The) 65,000 1,933,750
Coda Energy, Inc. (a) 114,000 840,750
Columbus Energy Corp. (a) 63,140 505,120
Czar Resources Ltd. (a) 500,000 420,370
COMMON STOCKS - CONTINUED
SHARES VALUE
(NOTE 1)
ENERGY - CONTINUED
OIL & GAS - CONTINUED
HS Resources, Inc. (a) 23,400 $ 386,100
Inverness Petroleum Ltd. (a) 130,000 862,863
Lomak Petroleum, Inc. (a) 70,000 560,000
Louis Dreyfus Natural Gas Corp. (a) 105,700 1,625,138
Manville Oil & Gas Ltd. 120,000 300,896
Mark Resources, Inc. 100,000 497,806
Morgan Hydrocarbons, Inc. (a) 205,000 589,623
Newfield Exploration Co. (a) 43,000 989,000
Northrock Resources Ltd. (a) 120,000 763,302
Northrock Resources Ltd. (a) (b) 100,000 636,085
Nuevo Energy Corp. (a) 44,000 841,500
Occidental Petroleum Corp. 80,000 1,840,000
Parker & Parsley Petroleum Co. 38,500 822,938
Renaissance Energy Ltd. (a) 62,000 1,406,025
Richland Petroleum Corp. Class A (a) 160,000 1,150,485
Rio Alto Exploration Ltd. (a) 154,200 597,035
Taro Industries Ltd. (a) 300,000 115,050
Total SA sponsored ADR 53,000 1,662,875
Ulster Petroleums Ltd. (a) 207,600 784,653
USX-Marathon Group 55,000 1,031,250
Vastar Resources, Inc. 25,000 668,750
Vintage Petroleum, Inc. 60,000 1,230,000
38,099,443
TOTAL ENERGY 53,478,475
FINANCE - 1.6%
CREDIT & OTHER FINANCE - 0.4%
BankAmerica Corp. 20,000 990,000
SECURITIES INDUSTRY - 1.2%
Pioneer Group, Inc. 110,000 2,777,500
TOTAL FINANCE 3,767,500
COMMON STOCKS - CONTINUED
SHARES VALUE
(NOTE 1)
HEALTH - 7.8%
DRUGS & PHARMACEUTICALS - 6.7%
Allergan, Inc. 19,000 $ 515,375
American Home Products Corp. 28,500 2,198,063
Bristol-Myers Squibb Co. 37,500 2,442,188
Celtrix Laboratories, Inc. (a) 17,400 23,925
COR Therapeutics, Inc. (a) 71,000 1,171,500
Insite Vision, Inc. (a) 87,500 262,500
North American Biologicals, Inc. (a) 132,000 1,204,500
Pfizer, Inc. 27,000 2,338,875
Protein Design Labs, Inc. (a) 42,000 1,044,750
Rhone Poulenc Rorer, Inc. 40,000 1,675,000
Schering-Plough Corp. 25,000 1,884,375
Thermotrex Corp. (a) 25,000 496,875
15,257,926
MEDICAL EQUIPMENT & SUPPLIES - 1.1%
Johnson & Johnson 38,000 2,470,000
TOTAL HEALTH 17,727,926
INDUSTRIAL MACHINERY & EQUIPMENT - 7.2%
ELECTRICAL EQUIPMENT - 0.5%
General Electric Co. 21,000 1,176,000
INDUSTRIAL MACHINERY & EQUIPMENT - 1.7%
Exide Corp. 53,500 2,006,250
Flow International Corp. (a) 30,000 251,250
McDermott (J. Ray) SA 56,000 1,540,000
3,797,500
POLLUTION CONTROL - 5.0%
American Ecology Corp. 130,000 845,000
Browning-Ferris Industries, Inc. 60,000 1,980,000
Sanifill, Inc. (a) 80,000 2,130,000
TETRA Technologies, Inc. (a) 119,100 1,592,963
TRC Companies, Inc. (a) 104,300 795,288
United Waste Systems, Inc. (a) 64,000 1,808,000
Waste Management International PLC sponsored ADR (a) 90,000 776,250
Western Waste Industries, Inc. (a) 80,000 1,480,000
11,407,501
TOTAL INDUSTRIAL MACHINERY & EQUIPMENT 16,381,001
COMMON STOCKS - CONTINUED
SHARES VALUE
(NOTE 1)
NONDURABLES - 2.5%
FOODS - 0.4%
Kellogg Co. 13,700 $ 869,950
HOUSEHOLD PRODUCTS - 0.4%
Tambrands, Inc. 22,000 915,750
TOBACCO - 1.7%
Philip Morris Companies, Inc. 20,000 1,355,000
RJR Nabisco Holdings Corp. 91,300 2,499,338
3,854,338
TOTAL NONDURABLES 5,640,038
PRECIOUS METALS - 6.3%
Ashanti Goldfields Ltd. GDR 100,000 2,485,000
Barrick Gold Corp. 128,000 3,115,159
Kinross Gold Corp. (a) 285,000 1,734,026
Mentor Exploration & Development Co. Ltd. (a) 160,000 1,622,478
Orvana Minerals Corp. (a) 213,500 700,671
Sudbury Contact Mines, Ltd. (a) 140,000 1,613,261
Western Mining Corp. Holdings Ltd. 520,000 2,943,782
14,214,377
RETAIL & WHOLESALE - 0.2%
GROCERY STORES - 0.2%
Stop & Shop Companies, Inc. 20,000 532,500
SERVICES - 0.4%
Thomas Group (a) 84,000 861,000
TECHNOLOGY - 4.7%
COMMUNICATIONS EQUIPMENT - 0.4%
Cisco Systems, Inc. (a) 20,000 797,500
COMPUTER SERVICES & SOFTWARE - 0.4%
SunGard Data Systems, Inc. 20,000 932,500
COMPUTERS & OFFICE EQUIPMENT - 2.9%
Comdisco, Inc. 600 16,875
Compaq Computer Corp. (a) 17,000 646,000
Digital Equipment Corp. (a) 30,700 1,416,038
International Business Machines Corp. 11,000 1,042,250
Sun Microsystems, Inc. (a) 40,000 1,595,000
Xerox Corp. 15,200 1,871,500
6,587,663
COMMON STOCKS - CONTINUED
SHARES VALUE
(NOTE 1)
TECHNOLOGY - CONTINUED
ELECTRONIC INSTRUMENTS - 0.0%
Anadigics, Inc. 1,000 $ 13,375
ELECTRONICS - 1.0%
Micron Technology, Inc. 13,500 1,110,375
Texas Instruments, Inc. 11,000 1,166,000
2,276,375
TOTAL TECHNOLOGY 10,607,413
TRANSPORTATION - 3.0%
RAILROADS - 2.6%
Burlington Northern, Inc. 40,000 2,380,000
CSX Corp. 4,100 326,463
Illinois Central Corp., Series A 22,000 772,750
Southern Pacific Rail Corp. (a) 135,000 2,345,625
5,824,838
TRUCKING & FREIGHT - 0.4%
Mullen Trucking Ltd. (a) 155,000 928,777
TOTAL TRANSPORTATION 6,753,615
UTILITIES - 1.5%
CELLULAR - 0.5%
Vodafone Group PLC sponsored ADR 36,000 1,147,500
ELECTRIC UTILITY - 0.3%
Thermo Ecotek (a) 40,000 565,000
GAS - 0.7%
Questar Corp. 56,000 1,659,000
TOTAL UTILITIES 3,371,500
TOTAL COMMON STOCKS
(Cost $193,334,780) 209,575,188
PREFERRED STOCKS - 0.8%
SHARES VALUE
(NOTE 1)
CONVERTIBLE PREFERRED STOCKS - 0.5%
ENERGY - 0.5%
ENERGY SERVICES - 0.5%
Reading & Bates Corp. $1.625 40,000 $ 1,075,000
NONCONVERTIBLE PREFERRED STOCKS - 0.3%
ENERGY - 0.3%
OIL & GAS - 0.3%
Gulf Canada Resources Ltd., Series 1, adj. rate 270,000 759,367
TOTAL PREFERRED STOCKS
(Cost $1,908,771) 1,834,367
REPURCHASE AGREEMENTS - 6.8%
MATURITY
AMOUNT
Investments in repurchase agreements
(U.S. Treasury obligations) in a joint
trading account at 5.93%, dated
4/28/95 due 5/1/95 $ 15,500,656 15,493,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $210,736,551) $ 226,902,555
LEGEND
(a) Non-income producing
(b) 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 $992,293 or 0.4% of net
assets.
OTHER INFORMATION
Distribution of investments by country of issue, as a percentage of total
value of investment in securities, is as follows:
United States 74.5%
Canada 17.5
United Kingdom 1.7
France 1.5
Australia 1.3
Ghana 1.1
Others (individually less than 1%) 2.4
TOTAL 100.0%
INCOME TAX INFORMATION
At April 30, 1995, the aggregate cost of investment securities for income
tax purposes was $210,828,416. Net unrealized appreciation aggregated
$16,074,139, of which $23,776,864 related to appreciated investment
securities and $7,702,725 related to depreciated investment securities.
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

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

ASSETS

Investment in securities, at value (including repurchase $ 226,902,555
agreements of $15,493,000) (cost $210,736,551) -
See accompanying schedule

Cash 333

Receivable for investments sold 6,917,804

Receivable for fund shares sold 1,091,325

Dividends receivable 150,179

TOTAL ASSETS 235,062,196

LIABILITIES

Payable for investments purchased $ 11,992,739

Payable for fund shares redeemed 415,586

Accrued management fee 136,591

Distribution fees payable 115,680

Other payables and accrued expenses 81,202

TOTAL LIABILITIES 12,741,798

NET ASSETS $ 222,320,398

Net Assets consist of:

Paid in capital $ 209,247,122

Accumulated net investment loss (222,996)

Accumulated undistributed net realized gain (loss) on (2,870,101)
investments and foreign currency transactions

Net unrealized appreciation (depreciation) on 16,166,373
investments and assets and liabilities in foreign
currencies

NET ASSETS, for 12,301,759 shares outstanding $ 222,320,398

NET ASSET VALUE and redemption price per share $18.07
($222,320,398 (divided by) 12,301,759 shares)

Maximum offering price per share (100/95.25 of $18.07) $18.97

</TABLE>

STATEMENT OF OPERATIONS

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

INVESTMENT INCOME $ 1,391,634
Dividends

Interest 272,390

1,664,024

Less foreign taxes withheld (19,719)

TOTAL INCOME 1,644,305

EXPENSES

Management fee $ 762,376

Transfer agent fees 333,452

Distribution fees 644,960

Accounting fees and expenses 59,994

Non-interested trustees' compensation 638

Custodian fees and expenses 27,289

Registration fees 29,936

Audit 14,673

Legal 4,322

Interest 1,974

Reports to shareholders 11,418

Miscellaneous 1,213

Total expenses before reductions 1,892,245

Expense reductions (24,944) 1,867,301

NET INVESTMENT INCOME (LOSS) (222,996)

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

Investment securities (2,239,915)

Foreign currency transactions (9,592) (2,249,507)

Change in net unrealized appreciation (depreciation) on:

Investment securities 12,072,516

Assets and liabilities in foreign currencies 360 12,072,876

NET GAIN (LOSS) 9,823,369

NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ 9,600,373
FROM OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR ENDED
ENDED APRIL 30, OCTOBER 31,
1995 1994
(UNAUDITED)

INCREASE (DECREASE) IN NET ASSETS

Operations $ (222,996) $ (773,691)
Net investment income (loss)

Net realized gain (loss) (2,249,507) 3,777,673

Change in net unrealized appreciation (depreciation) 12,072,876 1,218,553

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 9,600,373 4,222,535
FROM OPERATIONS

Distributions to shareholders from net realized gains (3,086,044) (1,895,685)

Share transactions 64,444,418 187,226,410
Net proceeds from sales of shares

Reinvestment of distributions 2,773,066 1,607,842

Cost of shares redeemed (50,772,410) (32,108,690)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 16,445,074 156,725,562
FROM SHARE TRANSACTIONS

TOTAL INCREASE (DECREASE) IN NET ASSETS 22,959,403 159,052,412

NET ASSETS

Beginning of period 199,360,995 40,308,583

End of period $ 222,320,398 $ 199,360,995

OTHER INFORMATION
Shares

Sold 3,872,650 10,824,371

Issued in reinvestment of distributions 172,751 98,039

Redeemed (3,096,405) (1,861,855)

Net increase (decrease) 948,996 9,060,555

</TABLE>

FINANCIAL HIGHLIGHTS
SIX MONTHS YEARS ENDED OCTOBER 31,
ENDED APRIL 30,
1995

(UNAUDITED) 1994 1993 1992 1991 1990

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SELECTED PER-SHARE DATA

Net asset value, $ 17.56 $ 17.59 $ 13.88 $ 14.11 $ 12.30 $ 12.60
beginning of period

Income from Investment
Operations

Net investment income (.02) (.11) .22 (.10) (.15) (.10)
D

Net realized and .79 .76 4.91 .79 2.45 .93
unrealized gain (loss)

Total from investment .77 .65 5.13 .69 2.30 .83
operations

Less Distributions - - - - - (.08)
From net investment
income

From net realized gain (.26) (.68) (1.42) (.92) (.49) (1.05)

Total distributions (.26) (.68) (1.42) (.92) (.49) (1.13)

Net asset value, $ 18.07 $ 17.56 $ 17.59 $ 13.88 $ 14.11 $ 12.30
end of period

TOTAL RETURN A, B 4.57% 3.97% 41.05% 5.97% 19.50% 6.37%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period $ 222,320 $ 199,361 $ 40,309 $ 7,087 $ 5,940 $ 4,615
(000 omitted)

Ratio of expenses to 1.92% 2.07% 2.62% 3.27% 3.35% 3.34%
average net assets E C C C

Ratio of expenses to 1.95% 2.10% 2.63% 3.27% 3.35% 3.34%
average net assets E C C C
before expense
reductions

Ratio of net investment (.23)% (.67) (1.18) (1.22) (1.28) (1.13)
income to average E % % % % %
net assets

Portfolio turnover rate 177% 125% 208% 248% 256% 229%
E

</TABLE>

A 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).
B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C LIMITED IN ACCORDANCE WITH A STATE EXPENSE LIMITATION.
D NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.
E ANNUALIZED
NOTES TO FINANCIAL STATEMENTS
For the period ended April 30, 1995 (Unaudited)

1. SIGNIFICANT ACCOUNTING
POLICIES.
Fidelity Advisor Global Resources Fund (the fund) is a fund of Fidelity
Advisor Series V (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 following
summarizes the significant accounting policies of the fund:
SECURITY VALUATION. Securities for which quotations are readily available
are valued at the last sale price, or if no sale price, at the closing bid
price in the principal market in which such securities are normally traded.
Securities (including restricted securities) for which quotations are not
readily available 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. 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 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.
1. SIGNIFICANT ACCOUNTING
POLICIES - CONTINUED
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 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 losses deferred due to wash sales. The fund also
utilized earnings and profits distributed to shareholders on redemption of
shares as a part of the dividends paid deduction for income tax purposes.
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital and may
affect the per-share allocation between net investment income and realized
and unrealized gain (loss). Accumulated net investment 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. 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 SEC), the fund, along with other
affiliated entities of Fidelity Management & Research Company (FMR), may
transfer uninvested cash balances into one or
2. OPERATING POLICIES - CONTINUED
JOINT TRADING ACCOUNT - CONTINUED
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 $178,308,504 and $165,625,332, 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 .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 .45%. For
the period, the management fee was equivalent to an annualized rate of .77%
of average net assets.
DISTRIBUTION AND SERVICE PLAN. Pursuant to the Distribution and Service
Plan (the Plan), and in accordance with Rule 12b-1 of the 1940 Act, the
fund pays Fidelity Distributors Corporation (FDC), an affiliate of FMR, a
distribution and service fee that is based on an annual rate of .65% of its
average net assets. For the period, the fund paid $644,960 of which
$496,062 was paid to securities dealers, banks and other financial
institutions for selling shares of the fund and providing shareholder
support services.
SALES LOAD. FDC received sales charges for selling shares of the fund. The
sales charge rates ranged from 2.00% to 4.75% based on purchase amounts of
less than $1,000,000. Purchase amounts of $1,000,000 or more are not
charged a sales load. For the period, FDC received $1,368,286 of which
$1,153,361 was paid to securities dealers, banks and other financial
institutions.
TRANSFER AGENT FEES. State Street Bank and Trust Company (SSB) is the
transfer, dividend disbursing and shareholder servicing agent for the fund.
SSB has an arrangement for certain transfer, dividend disbursing and
shareholder servicing to be performed by Fidelity Investments Institutional
Operations Company (FIIOC), an affiliate of FMR. During the period November
1, 1994 to
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES -
CONTINUED
TRANSFER AGENT FEES - CONTINUED
December 31, 1994, the fund paid fees based on the type, size, number of
accounts and the number of transactions made by shareholders. Effective
January 1, 1995, the Board of Trustees approved a revised transfer agent
contract pursuant to which the fund pays account fees and asset-based fees
that vary according to account size and type of account.
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 $488,021 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 $3,679,000. The weighted average
interest rate was 6.4375%.
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
$24,944 under this arrangement.

INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
INVESTMENT SUB-ADVISERS
Fidelity Management & Research (U.K.) Inc. London, England
Fidelity Management & Research
(Far East) Inc. Tokyo, Japan
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
William J. Hayes, Vice President
Malcolm W. MacNaught II, 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
* 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)

(2_FIDELITY_LOGOS)FIDELITY ADVISOR
(registered trademark)

HIGH INCOME MUNICIPAL
FUND - CLASS A & CLASS B
SEMIANNUAL REPORT
APRIL 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 30 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.

NOTES 35 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 HIGH INCOME MUNICIPAL FUND - CLASS A
PERFORMANCE: THE BOTTOM LINE

Advisor High Income Municipal - Class A 6.14% 4.89% 53.11% 100.24%

Advisor High Income Municipal - Class A
(incl. max. 4.75% sales charge) 1.10% -0.09% 45.84% 90.72%

Lehman Brothers Municipal Bond Index 7.57% 6.65% 49.85% n/a

Average High-Yield Municipal Bond Fund 6.60% 6.06% 45.68% n/a

Consumer Price Index 1.61% 3.05% 17.84% 32.09%

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
since the fund started on September 16, 1987. 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 Lehman Brothers Municipal Bond Index - a broad gauge of the
municipal bond market. To measure how Class A's performance stacked up
against its peers, you can compare it to the average high-yield municipal
bond fund, which reflects the performance of 38 high-yield municipal bond
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 APRIL 30, 1995 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

Advisor High Income Municipal - Class A 4.89% 8.89% 9.53%

Advisor High Income Municipal - Class A
(incl. max. 4.75% sales charge) -0.09% 7.84% 8.83%

Lehman Brothers Municipal Bond Index 6.65% 8.43% n/a

Average High Yield Municipal Bond Fund 6.06% 7.78% n/a

Consumer Price Index 3.05% 3.34% 3.74%

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 HMunicipal Bond
09/30/87 10000.00 10000.00
10/31/87 10032.38 10035.40
11/30/87 10202.58 10297.42
12/31/87 10377.36 10446.84
01/31/88 10759.02 10818.96
02/29/88 10878.34 10933.31
03/31/88 10752.22 10805.94
04/30/88 10804.97 10888.06
05/31/88 10859.04 10856.60
06/30/88 11061.38 11015.43
07/31/88 11096.61 11087.25
08/31/88 11134.47 11097.01
09/30/88 11304.16 11297.86
10/31/88 11458.61 11497.27
11/30/88 11470.99 11391.96
12/31/88 11602.18 11508.50
01/31/89 11748.28 11746.49
02/28/89 11760.06 11612.46
03/31/89 11850.56 11584.71
04/30/89 12121.38 11859.73
05/31/89 12319.41 12106.06
06/30/89 12460.51 12270.46
07/31/89 12569.82 12437.46
08/31/89 12667.06 12315.70
09/30/89 12705.25 12278.75
10/31/89 12839.39 12428.55
11/30/89 12997.45 12646.05
12/31/89 13121.03 12749.75
01/31/90 13141.73 12689.82
02/28/90 13235.91 12802.76
03/31/90 13318.95 12806.60
04/30/90 13197.12 12714.40
05/31/90 13467.57 12991.57
06/30/90 13626.25 13105.90
07/31/90 13836.42 13298.55
08/31/90 13743.06 13105.72
09/30/90 13840.78 13113.59
10/31/90 14030.80 13350.94
11/30/90 14378.94 13619.30
12/31/90 14470.68 13679.22
01/31/91 14639.09 13862.52
02/28/91 14751.65 13983.13
03/31/91 14838.38 13988.72
04/30/91 15080.00 14174.77
05/31/91 15266.41 14300.93
06/30/91 15301.94 14286.62
07/31/91 15499.80 14460.92
08/31/91 15639.78 14651.81
09/30/91 15823.22 14842.28
10/31/91 15998.55 14975.86
11/30/91 16058.74 15017.79
12/31/91 16233.38 15340.67
01/31/92 16413.33 15375.96
02/29/92 16502.50 15380.57
03/31/92 16585.29 15386.72
04/30/92 16734.96 15523.66
05/31/92 16885.10 15706.84
06/30/92 17116.62 15970.72
07/31/92 17712.64 16449.84
08/31/92 17575.48 16288.63
09/30/92 17685.17 16394.51
10/31/92 17471.74 16233.84
11/30/92 17821.91 16524.43
12/31/92 18036.80 16692.98
01/31/93 18341.88 16886.62
02/28/93 18989.55 17497.91
03/31/93 18791.48 17312.43
04/30/93 18990.75 17487.29
05/31/93 19148.03 17585.22
06/30/93 19455.03 17878.89
07/31/93 19469.47 17902.13
08/31/93 19970.92 18274.50
09/30/93 20247.47 18482.83
10/31/93 20258.33 18517.94
11/30/93 20060.34 18354.99
12/31/93 20523.56 18742.28
01/31/94 20762.54 18955.94
02/28/94 20213.79 18464.98
03/31/94 19136.33 17713.46
04/30/94 19263.30 17864.02
05/31/94 19377.22 18019.44
06/30/94 19305.87 17914.92
07/31/94 19629.13 18242.77
08/31/94 19660.41 18306.62
09/30/94 19334.40 18037.51
10/31/94 18946.81 17716.44
11/30/94 18325.27 17395.77
12/31/94 18774.84 17778.48
01/31/95 19379.86 18286.95
02/28/95 19889.71 18819.10
03/31/95 19981.51 19035.52
04/28/95 20016.96 19058.36

$10,000 OVER LIFE OF FUND: Let's say you invested $10,000 in Fidelity
Advisor High Income Municipal Fund - Class A on September 30, 1987, shortly
after the fund started, and paid the maximum 4.75% sales charge. As the
chart shows, by April 30, 1995, the value of your investment would have
grown to $19,246 - a 92.46% increase on your initial investment. For
comparison, look at how the Lehman Brothers Municipal Bond index did over
the same period. With dividends reinvested, the same $10,000 would have
grown to $19,058 - a 90.58% 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

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SIX YEARS ENDED OCTOBER 31,
MONTHS
ENDED
APRIL
30,

1995 1994 1993 1992 1991 1990

Dividend return 3.29% 5.27% 6.49% 7.01% 7.89% 7.88%

Capital appreciation 2.85% -11.30% 9.46% 2.20% 6.13% 1.40%
return

Total return 6.14% -6.03% 15.95% 9.21% 14.02% 9.28%

</TABLE>

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

<TABLE>
<CAPTION>
<S> <C> <C> <C>
PERIODS ENDED APRIL 30, 1995 PAST PAST 6 PAST
MONTH MONTHS YEAR

Dividends per share 5.80(cents) 35.62(cents) 70.53(cents)

Annualized dividend rate 6.07% 6.38% 6.16%

30-day annualized yield 5.88% - -

30-day annualized tax-equivalent yield 8.52% - -

</TABLE>

DIVIDENDS per share show the income paid by the class for a set period. If
you annualize this number, based on an average net asset value of $11.63
over the past month, $11.26 over the past six months and $11.45 over the
past year, you can compare the class' income over these three periods. The
30-day annualized YIELD is a standard formula for all funds based on the
yields of the bonds in the fund, averaged over the past 30 days. This
figure, which includes the effect of Class A's maximum 4.75% sales charge
in its offering price, 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 tax-equivalent yield shows what
you would have to earn on a taxable investment to equal the class' tax-free
yield, if you're in the 31% combined federal tax bracket.
ADVISOR HIGH INCOME MUNICIPAL 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.
On June 30, 1994, the fund began offering Class B shares. All performance
information for Class B prior to June 30, 1994 reflects the performance of
Class A and therefore does not reflect different Class B 12b-1 fee and
transfer agent fee arrangements (see Notes to the Financial Statements),
which, if included, would have lowered Class B's performance. Also, if
Fidelity had not reimbursed certain Class A expenses, the past 5 years and
life of fund total return figures would have been lower. Class B's
contingent deferred sales charges included in the past 6 months, past 1
year, past 5 years and life of fund total return figures are 4%, 4%, 1% and
0%, respectively.
CUMULATIVE TOTAL RETURNS
<TABLE>
<CAPTION>
<C> <C> <C> <C> <C>
PERIODS ENDED APRIL 30, 1995 PAST 6 PAST 1 PAST 5 LIFE OF
MONTHS YEAR YEARS FUND

Advisor High Income Municipal - Class B 5.65% 3.91% 51.68% 98.36%

Advisor High Income Municipal - Class B
(incl. contingent deferred sales charge) 1.65% -0.03 50.68% 98.36%
%

Lehman Brothers Municipal Bond Index 7.57% 6.65% 49.85% n/a

Average High-Yield Municipal Bond Fund 6.60% 6.06% 45.68% n/a

Consumer Price Index 1.61% 3.05% 17.84% 32.09%
</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
since the fund started on September 16, 1987. 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 Lehman Brothers Municipal Bond Index - a broad gauge of the
municipal bond market. To measure how Class B's performance stacked up
against its peers, you can compare it to the average high-yield municipal
bond fund, which reflects the performance of 38 high-yield municipal bond
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
PERIODS ENDED APRIL 30, 1995 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

Advisor High Income Municipal - Class 3.91% 8.69% 9.40%
B

Advisor High Income Municipal - Class B
(incl. contingent deferred sales charge) -0.03% 8.54% 9.40%

Lehman Brothers Municipal Bond Index 6.65% 8.43% n/a

Average High-Yield Municipal Bond Fund 6.06% 7.78% n/a

Consumer Price Index 3.05% 3.34% 3.74%

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 Advisor HMunicipal Bond Inde
09/30/87 9525.00 10000.00
10/31/87 9555.84 10035.40
11/30/87 9717.96 10297.42
12/31/87 9884.43 10446.84
01/31/88 10247.97 10818.96
02/29/88 10361.63 10933.31
03/31/88 10241.49 10805.94
04/30/88 10291.73 10888.06
05/31/88 10343.23 10856.60
06/30/88 10535.96 11015.43
07/31/88 10569.52 11087.25
08/31/88 10605.57 11097.01
09/30/88 10767.21 11297.86
10/31/88 10914.32 11497.27
11/30/88 10926.12 11391.96
12/31/88 11051.08 11508.50
01/31/89 11190.24 11746.49
02/28/89 11201.46 11612.46
03/31/89 11287.66 11584.71
04/30/89 11545.61 11859.73
05/31/89 11734.24 12106.06
06/30/89 11868.64 12270.46
07/31/89 11972.76 12437.46
08/31/89 12065.38 12315.70
09/30/89 12101.76 12278.75
10/31/89 12229.53 12428.55
11/30/89 12380.09 12646.05
12/31/89 12497.79 12749.75
01/31/90 12517.51 12689.82
02/28/90 12607.21 12802.76
03/31/90 12686.31 12806.60
04/30/90 12570.27 12714.40
05/31/90 12827.88 12991.57
06/30/90 12979.02 13105.90
07/31/90 13179.21 13298.55
08/31/90 13090.28 13105.72
09/30/90 13183.36 13113.59
10/31/90 13364.36 13350.94
11/30/90 13695.96 13619.30
12/31/90 13783.34 13679.22
01/31/91 13943.75 13862.52
02/28/91 14050.96 13983.13
03/31/91 14133.57 13988.72
04/30/91 14363.71 14174.77
05/31/91 14541.25 14300.93
06/30/91 14575.10 14286.62
07/31/91 14763.56 14460.92
08/31/91 14896.89 14651.81
09/30/91 15071.62 14842.28
10/31/91 15238.63 14975.86
11/30/91 15295.95 15017.79
12/31/91 15462.30 15340.67
01/31/92 15633.70 15375.96
02/29/92 15718.64 15380.57
03/31/92 15797.50 15386.72
04/30/92 15940.08 15523.66
05/31/92 16083.08 15706.84
06/30/92 16303.61 15970.72
07/31/92 16871.31 16449.84
08/31/92 16740.66 16288.63
09/30/92 16845.14 16394.51
10/31/92 16641.85 16233.84
11/30/92 16975.39 16524.43
12/31/92 17180.06 16692.98
01/31/93 17470.65 16886.62
02/28/93 18087.55 17497.91
03/31/93 17898.89 17312.43
04/30/93 18088.70 17487.29
05/31/93 18238.49 17585.22
06/30/93 18530.91 17878.89
07/31/93 18544.67 17902.13
08/31/93 19022.30 18274.50
09/30/93 19285.71 18482.83
10/31/93 19296.06 18517.94
11/30/93 19107.49 18354.99
12/31/93 19548.70 18742.28
01/31/94 19776.33 18955.94
02/28/94 19253.64 18464.98
03/31/94 18227.36 17713.46
04/30/94 18348.32 17864.02
05/31/94 18456.82 18019.44
06/30/94 18388.87 17914.92
07/31/94 18720.58 18242.77
08/31/94 18749.98 18306.62
09/30/94 18456.26 18037.51
10/31/94 18132.72 17716.44
11/30/94 17549.75 17395.77
12/31/94 17975.09 17778.48
01/31/95 18582.34 18286.95
02/28/95 19083.02 18819.10
03/31/95 19183.36 19035.52
04/28/95 19246.41 19058.36

$10,000 OVER LIFE OF FUND: Let's say you invested $10,000 in Fidelity
Advisor High Income Municipal Fund - Class B on September 30, 1987, shortly
after the fund started. As the chart shows, by April 30, 1995, the value of
your investment would have grown to $20,017 - a 100.17% increase on your
initial investment. For comparison, look at how the Lehman Brothers
Municipal Bond index did over the same period. With dividends reinvested,
the same $10,000 would have grown to $19,058 - a 90.58% 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

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SIX YEARS ENDED OCTOBER 31,
MONTHS
ENDED
APRIL 30,

1995 1994 1993 1992 1991 1990

Dividend return 2.88% 4.90% 6.49% 7.01% 7.89% 7.88%

Capital appreciation 2.77% -11.37% 9.46% 2.20% 6.13% 1.40%
return

Total return 5.65% -6.47% 15.95% 9.21% 14.02% 9.28%

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C>
PERIODS ENDED APRIL 30, 1995 PAST PAST 6 LIFE OF
MONTH MONTHS CLASS

Dividends per share 5.05(cents) 31.25(cents) 50.08(cents)

Annualized dividend rate 5.29% 5.59% 5.26%

30-day annualized yield 5.38% - -

30-day annualized tax-equivalent yield 7.80% - -

</TABLE>

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 $11.62
over the past month, $11.27 over the past six months, and $11.40 over the
life of Class. The 30-day annualized YIELD is a standard formula for all
funds based on the yields of the bonds in the fund, averaged over the past
30 days. This figure, which excludes the effect of Class B's contingent
deferred sales charge, 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 tax-equivalent yield shows what
you would have to earn on a taxable investment to equal the class' tax-free
yield, if you're in the 31% combined federal tax bracket.
FUND TALK: THE MANAGER'S OVERVIEW

An interview with Guy Wickwire, Portfolio Manager of Fidelity Advisor High
Income Municipal Fund
Q. GUY, HOW HAS THE FUND PERFORMED?
A. For the six months ended April 30, 1995, the fund's Class A and Class B
shares had total returns of 6.14% and 5.65%, respectively. Those compared
to the average high-yield municipal bond fund's return of 6.60% for the
same period, as tracked by Lipper Analytical Services. For the 12-month
period ended April 30, 1995, the fund's Class A and B shares returned 4.89%
and 3.91%, respectively, compared to the average high-yield municipal bond
fund's return of 6.06%, again as tracked by Lipper Analytical Services.
Q. HASN'T THE MUNICIPAL BOND MARKET BEEN UNUSUALLY STRONG OVER THE PAST SIX
MONTHS?
A. Yes, in fact the municipal bond market enjoyed one of its strongest
rallies of the decade during the past six months. The market was
particularly strong during the first quarter of 1995 and municipals topped
the charts as the best performing fixed-income category in that period.
After hitting their lows last November, municipal bond prices steadily
improved as investors perceived that the threat of higher interest rates
was slowly fading. However, in the last few weeks of April, the municipal
market gave back some its earlier gains. Investors were worried that some
elements contained in tax reform proposals might reduce the appeal of
municipal bonds.
Q. WHILE THE FUND TURNED IN STRONG PERFORMANCE, IT SLIGHTLY UNDERPERFORMED
THE AVERAGE HIGH-YIELD MUNICIPAL FUND. WHY?
A. Michigan Healthcare - a Michigan hospital, which represents less than 1%
of the fund's net assets at the end of the period - filed Chapter 11
bankruptcy during the period. As a result, the holding detracted from the
fund's performance. An independent pricing service, in determining the
current price of these bonds, has already taken into account this credit
development. Fidelity is dedicating significant resources in an effort to
maximize shareholder value.
Q. WHAT STRATEGIES WORKED WELL DURING THE PAST SIX MONTHS?
A. From November through the end of February, the fund's duration - which
is a measure of its sensitivity to changes in interest rates - was
relatively long. The longer a fund's duration, the more sensitive its share
price is to interest rate changes. When bond yields were falling, as they
were during that period, having a longer duration helped the fund's
performance. However, I've used some of the market's recent strength to
reduce the fund's duration to a more neutral stance. In my view, it is
unclear which way interest rates go from here, so I'm inclined to maintain
that neutral duration. Also, I've continued to focus on maintaining and
enhancing the fund's income, which has helped its total return. Looking
ahead, if rates stabilize, bond prices probably won't appreciate as much as
they have in recent months. And if interest rates rise, municipal bond
prices could drop. In either of those situations, yield is probably going
to be a more important determinant of total return.
Q. TO WHAT SECTORS HAVE YOU LOOKED TO FIND HIGHER INCOME?
A. Health care bonds, which made up the fund's largest sector concentration
at 30.9% of investments at the end of the period, are one place I've found
attractive levels of income. I bought many of these bonds after President
Clinton abandoned his health care reform package and their prices were
cheap. Since then, this sector has generally done quite well. As always, I
work with Fidelity's research staff to identify opportunities that have
stable or improving prospects.
Q. WERE INDUSTRIAL REVENUE BONDS - WHICH MADE UP THE FUND'S SECOND LARGEST
SECTOR CONCENTRATION AT 20.9% OF INVESTMENTS - ALSO ATTRACTIVE BECAUSE OF
THEIR HIGH INCOME?
A. Yes, industrial development bonds - which are primarily used by many
private sector companies to fund their pollution control programs - tend to
offer attractive yields. So far in 1995, there has been a relatively low
supply of new municipal bonds issued and demand is quite strong. That's
made it more difficult to find new high-yielding opportunities. But I did
add a few new issues in the industrial revenue bond sector. In general,
however, I added to existing holdings I like rather than purchasing new
issues.
Q. WHAT FACTORS INFLUENCE YOUR INVESTMENT DECISIONS?
A. I choose a specific bond based on how attractive it is from the
standpoint of price, maturity structure, credit quality, yield and other
factors. Supply and demand within a given state can be another important
consideration. I generally try to purchase bonds I like when supply is
heavy and, as a result, prices are relatively cheap. I also emphasize bonds
from states with high state income taxes. Demand for these bonds - which
are exempt from state taxes - tends to remain relatively strong. As a
result, the fund's top five states - Pennsylvania, Michigan, New York,
California and Connecticut - made up roughly 44% of the fund's investments
at the end of the period.
Q. YOU'VE ALREADY MENTIONED THAT YOU DON'T THINK YIELDS WILL FALL MUCH FROM
CURRENT LEVELS. BUT WHAT OTHER FACTORS DO YOU THINK WILL INFLUENCE THE BOND
MARKET GOING FORWARD?
A. As I mentioned earlier, the threat of tax reform has confused the
municipal bond market, and that confusion could hang around for awhile.
Politicians don't plan to debate this issue until 1996, with legislation
arriving in 1997 at the earliest. Even though this whole issue is a long
way off, it is bothering municipals now. But bear in mind that municipal
bonds - after their decline in the last several weeks of the period - are
more attractively priced now than they were during the rally.

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

Pennsylvania 12.0 11.4

Michigan 10.9 7.8

New York 10.4 8.3

California 7.2 7.7

Connecticut 4.2 3.2

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

Health Care 30.9 29.3

Industrial Development 20.9 25.4

Electric Revenue 8.7 5.1

Lease Revenue 8.2 8.2

Resource Recovery 7.7 2.7

AVERAGE YEARS TO MATURITY AS OF APRIL 30, 1995
6 MONTHS AGO

Years 20.1 20.1

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.
DURATION AS OF APRIL 30, 1995
6 MONTHS AGO

Years 7.8 9.0

DURATION SHOWS HOW MUCH A BOND FUND'S PRICE FLUCTUATES WITH CHANGES IN
COMPARABLE INTEREST RATES. IF RATES RISE 1%, FOR EXAMPLE, A FUND WITH A
FIVE-YEAR DURATION IS LIKELY TO LOSE ABOUT 5% OF ITS VALUE. OTHER FACTORS
ALSO CAN INFLUENCE A BOND FUND'S PERFORMANCE AND SHARE PRICE. ACCORDINGLY,
A BOND FUND'S ACTUAL PERFORMANCE MAY DIFFER FROM THIS EXAMPLE.
QUALITY DIVERSIFICATION (MOODY'S RATINGS)
AS OF APRIL 30, 1995 AS OF OCTOBER 31, 1994

Aaa 9.0%
Aa, A 13.3%
Baa 31.1%
Ba or B 12.7%
Caa 0.9%
Non-rated 30.1%
Short-term
investments 2.9%
Aaa 8.4%
Aa, A 13.8%
Baa 28.6%
Ba or B 17.7%
Caa 0.0%
Non-rated 26.2%
Short-term
investments 5.3%
Row: 1, Col: 1, Value: 2.9
Row: 1, Col: 2, Value: 29.8
Row: 1, Col: 3, Value: 1.2
Row: 1, Col: 4, Value: 12.7
Row: 1, Col: 5, Value: 31.1
Row: 1, Col: 6, Value: 13.3
Row: 1, Col: 7, Value: 9.0
Row: 1, Col: 1, Value: 5.3
Row: 1, Col: 2, Value: 26.2
Row: 1, Col: 3, Value: 0.0
Row: 1, Col: 4, Value: 17.7
Row: 1, Col: 5, Value: 28.6
Row: 1, Col: 6, Value: 13.8
Row: 1, Col: 7, Value: 8.4
WHERE MOODY'S RATINGS ARE NOT AVAILABLE, WE HAVE USED S&P RATINGS. UNRATED
DEBT SECURITIES THAT ARE EQUIVALENT TO BA AND BELOW AT APRIL 30, 1995, AND
OCTOBER 31, 1994, ACCOUNT FOR 29.2% AND 25.1%, RESPECTIVELY, OF THE FUND'S
INVESTMENTS.
INVESTMENTS APRIL 30, 1995 (UNAUDITED)

Showing Percentage of Total Value of Investment in Securities

MUNICIPAL BONDS - 97.1%
MOODY'S PRINCIPAL VALUE
RATINGS (A) AMOUNT (NOTE 1)
ALABAMA - 1.8%
Cullman Med. Park South Med. Clinic Board Rev.
(Cullman Reg'l. Med. Ctr.) Series A:
6.50% 2/15/13 Baa $ 2,700,000 $ 2,544,750
6.50% 2/15/23 Baa 1,670,000 1,536,400
Selma Spl. Care Facs. Fing. Auth. Hosp. Ref.
Rfdg. (Vaughan Reg'l. Med. Ctr. Proj.)
7.125% 6/1/14 - 2,170,000 2,009,963
Shelby County Series A, 7.70% 8/1/17 - 4,000,000 4,305,000
10,396,113
ARIZONA - 0.2%
Tucson & Pima County Ind. Dev. Auth. Single
Family Mtg. Rev. (Verex Mtg. Assurance, Inc.)
9.375% 2/1/14 BB 1,040,000 1,067,300
ARKANSAS - 0.5%
Arkansas Gen. Oblig. (College Savings)
(Cap. Appreciation) Series C, 0% 6/1/13 Aa 2,500,000 859,375
Fayetteville Pub. Facs. Board Rev. Rfdg.
(Butterfield Trail Village Proj.):
Series A:
8.25% 9/1/00 (e) - 905,000 907,263
9.50% 9/1/14 - 1,000,000 1,051,250
Series B, 8.25% 9/1/00 - 40,000 40,650
2,858,538
CALIFORNIA - 6.4%
California Pub. Wrks. Board Lease Rev.:
Rfdg. (Dept. Corrections St. Prisons) Series A,
5% 12/1/19, (AMBAC Insured) Aaa 3,000,000 2,550,000
(California University Proj.) Series A,
5.50% 6/1/14 A 1,500,000 1,346,250
Central California Joint Pwrs. Health Fing. Auth.
Rfdg. (Commty. Hosp. of Central California Proj.)
5% 2/1/23 A 2,000,000 1,545,000
Fresno Swr. Rev. Series A-1, 4.75% 9/1/21,
(AMBAC Insured) Aaa 2,000,000 1,617,500
Los Angeles County Ctfs. of Prtn.
(Cap. Appreciation) (Disney Parking Proj.):
0% 9/1/13 A 3,200,000 900,000
0% 3/1/14 A 1,000,000 272,500
0% 9/1/14 A 7,260,000 1,905,750
Northern California Pwr. Agcy. Pub. Pwr. Rev.
Rfdg. (Geothermal Proj. #3) Series A,
5.85% 7/1/10 A 1,500,000 1,430,625
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (A) AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
Oakland Redev. Agcy. Rfdg. Central Dist.
Redev. (Sr. Tax Allocation) 5.50% 2/1/14,
(AMBAC Insured) Aaa $ 1,000,000 $ 928,750
Orange County Dev. Agcy. Tax Allocation
(Santa Ana Heights Proj.):
6.20% 9/1/08 Caa 1,650,000 1,503,563
6% 9/1/15 Caa 1,200,000 1,036,500
Riverside County Ctfs. of Prtn. Rfdg.
(Air Force Village West, Inc.) Series A,
8.125% 6/15/20 - 3,000,000 3,056,250
Sacramento City Fing. Auth. (Cap. Appreciation)
Series B, 0% 11/1/11, (MBIA Insured) Aaa 1,225,000 448,656
Sacramento Fing. Auth. Lease Rev. Rfdg. Series A,
5.40% 11/1/20, (AMBAC Insured) Aaa 2,000,000 1,797,500
San Bernardino County Ctfs. of Prtn.
(Med. Ctr. Fing. Proj.) 5.50% 8/1/17 (e) Baa1 12,000,000 9,705,000
San Joaquin County Ctfs. of Prtn. (Cap. Facs.
Proj.) 4.70% 11/15/06, (MBIA Insured) Aaa 1,385,000 1,263,813
San Jose Redev. Agcy. Tax Allocation Bonds
Series 1993 Rites, 5.59% 8/1/14,
(MBIA Insured) INFL (d) Aaa 3,000,000 2,550,000
Sequoia Hosp. 5.375% 8/15/13 Baa1 3,000,000 2,486,250
36,343,907
COLORADO - 3.5%
Avon Metropolitan Dist. Gen. Oblig.
Rfdg. & Impt. (Eagle Co.) Series 1990,
8.30% 11/1/10 - 1,200,000 1,294,500
Colorado Health Facs. Auth. Rev.:
(PSL Health Sys. Proj.):
Series A, 6.875% 2/15/23 Baa1 2,000,000 1,942,500
Series B, 8.50% 2/15/21 Baa1 1,000,000 1,090,000
(Rocky Mountain Adventist):
6.625% 2/1/13 Baa 5,200,000 4,940,000
6.625% 2/1/22 Baa 4,000,000 3,720,000
Colorado Springs Arpt. Rev.
(Cap. Appreciation) Series C:
0% 1/1/06 BBB 1,405,000 716,550
0% 1/1/08 BBB 870,000 381,713
Denver City & County Arpt. Rev. Series A (b):
6.60% 11/15/97 Baa 1,000,000 1,007,500
6.90% 11/15/98 Baa 1,000,000 1,016,250
7.50% 11/15/23 Baa 2,500,000 2,550,000
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (A) AMOUNT (NOTE 1)
COLORADO - CONTINUED
Mesa County Ind. Dev. Rev. (Joy Technologies,
Inc. Proj.) 8.50% 9/15/06 Ba3 $ 1,250,000 $ 1,303,125
19,962,138
CONNECTICUT - 4.2%
Connecticut Health & Edl. Facs. Auth. Rev.:
RIB (Yale Univ.):
7.436% 5/15/30 INFL (d) Aaa 2,000,000 1,865,000
5.929% 6/10/30 Aaa 6,000,000 5,842,500
(New Britain Mem. Hosp.) Series A,
7.50% 7/1/06 BBB 3,000,000 3,112,500
(St. Mary's Hosp.) Series C, 7.375% 7/1/20 Baa 1,500,000 1,501,875
(The Griffin Hosp.) Series A:
6% 7/1/13 Baa1 1,810,000 1,608,638
5.75% 7/1/23 Baa1 3,280,000 2,718,300
Eastern Connecticut Resource Recovery Auth.
Solid Waste Rev. (Wheelabrator Lisbon Proj.)
Series A:
5.50% 1/1/14 A 4,750,000 4,001,875
5.50% 1/1/20 (b) A 4,000,000 3,270,000
23,920,688
DISTRICT OF COLUMBIA - 0.5%
District of Columbia Hosp. Rev.
(Hosp. for Sick Children) Series A,
8.875% 1/1/21 - 985,000 1,053,950
District of Columbia Rev. Rfdg.
Series A, 6% 6/1/07, (MBIA Insured) Aaa 2,000,000 2,010,000
3,063,950
FLORIDA - 0.9%
Escambia County Poll. Cont. Rev.
(Champion Int'l. Corp. Proj.)
6.90% 8/1/22 (b) Baa1 1,500,000 1,520,625
Florida Mid-Bay Bridge Auth. Rev. Series A,
7.50% 10/1/17 - 2,500,000 2,662,500
Jacksonville Health Facs. Auth. Hosp. Rev. Rfdg.
(Methodist Hosp. Proj.) Series A,
8% 10/1/06 - 1,000,000 965,000
5,148,125
GEORGIA - 1.2%
Georgia Muni. Elec. Auth. Spl. Oblig. (Fifth
Crossover Series Proj. 1) 6.50% 1/1/17,
(MBIA Insured) Aaa 3,000,000 3,138,750
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (A) AMOUNT (NOTE 1)
GEORGIA - CONTINUED
Rome-Floyd County Dev. Auth. Ind. Dev. Rev.
(Kroger Co. Proj.) 8% 12/1/09 - $ 3,500,000 $ 3,810,625
6,949,375
IDAHO - 0.1%
Boise Urban Renewal Parking Agcy. Rev.
(Tax Increment) Series A, B, C,
8.125% 9/1/15 (e) A 375,000 398,906
ILLINOIS - 3.8%
Chicago O'Hare Int'l. Arpt. Spl. Facs.
Rev. Rfdg. (American Airlines, Inc. Proj.)
8.20% 12/1/24 Baa2 1,000,000 1,101,250
Decatur Econ. Dev. Rev. Rfdg. (Kroger Co. Proj.)
Series 1992, 7.75% 6/1/07 Ba2 705,000 756,994
Illinois Dev. Fin. Auth. Solid Waste Disp. Rev.
(Ford Heights Waste Tire Proj.)
7.875% 4/1/11 (b) - 10,000,000 9,562,500
Illinois Edl. Facs. Auth. Rev.:
Rfdg. (Art Institute of Chicago) 5.75% 3/1/18 A1 3,500,000 3,272,500
(Covenant Retirement Commty.) Series A,
7.60% 12/1/12 - 750,000 742,500
(Lewis University):
5.90% 10/1/14 Baa 1,740,000 1,594,275
6% 10/1/24 Baa 2,575,000 2,323,938
(Memorial Hosp.):
7.125% 5/1/10 BBB 1,000,000 976,250
7.25% 5/1/22 BBB 1,000,000 973,750
21,303,957
INDIANA - 1.2%
Fishers Econ. Dev. Rev. (1st Mtg. United
Student Funds, Inc.) 8.375% 9/1/14 - 1,750,000 1,824,375
Indianapolis Arpt. Auth. Rev. Spl. Facs.
(Fedex Corp. Proj.) 7.10% 1/15/17 (b) Baa2 3,000,000 3,056,250
Indianapolis Econ. Dev. Rev. Rfdg. & Impt.
(Nat'l. Benevolent Assoc.) 7.625% 10/1/22 Baa1 1,000,000 976,250
Wabash Econ. Dev. Rev. Rfdg. (Jesco Investment
Corp. Proj.) 6.625% 6/1/02 Ba2 1,050,000 1,074,938
6,931,813
IOWA - 0.6%
Woodbury County Health Sys. Rev.
(St. Luke's Health Sys. Northpark)
Series A, 7.15% 12/1/22 - 3,320,000 3,187,200
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (A) AMOUNT (NOTE 1)
KANSAS - 0.0%
Kansas City Single Family Mtg. Rev.
9.50% 8/1/06, (AMBAC Insured) Aaa $ 75,000 $ 79,125
KENTUCKY - 2.6%
Kenton County Arpt. Board Arpt. Rev.
(Spl. Facs. Delta Airlines, Inc. Proj. A):
7.80% 12/1/15 Ba3 3,500,000 3,666,250
7.125% 2/1/21 (b) Ba1 8,840,000 8,729,500
6.125% 2/1/22 (b) Ba1 1,750,000 1,531,250
Murray Ind. Dev. Rev. Rfdg. (Kroger Co. Proj.)
7.25% 9/1/12 Ba2 700,000 727,125
14,654,125
LOUISIANA - 2.7%
Calcasieu Parish, Inc. Ind. Dev. Board Poll. Cont.
Rev. Rfdg. (Gulf States Util. Co. Proj.)
6.75% 10/1/12 Ba1 1,500,000 1,447,500
Lake Charles Hbr. & Term. Dist. Port Facs.
Rev. Rfdg. (Trunkline LNG Co. Proj.)
Series 1992, 7.75% 8/15/22 Baa3 7,500,000 8,043,750
Louisiana Pub. Facs. Auth. Ind. Dev. Rev. Rfdg.
(Beverly Enterprises, Inc.) 8.25% 9/1/08 - 570,000 595,650
Port New Orleans Ind. Dev. Rev. Rfdg.
(Continental Grain Co. Proj.) 7.50% 7/1/13 BB 3,000,000 3,056,250
St. Charles Parish Environmental Impt. Rev.
(Louisiana Pwr. & Lt. Proj.) Series B,
5.95% 12/1/23 (b) Baa2 2,000,000 1,790,000
St. Tammany Pub. Trust Fing. Auth. Rev. Rfdg.
(Cap. Appreciation) Series C, 0% 7/20/14 Aa 2,000,000 565,000
15,498,150
MARYLAND - 3.5%
Baltimore County Poll. Cont. Rev. Rfdg.
(Bethlehem Steel Proj. B) 7.50% 6/1/15 - 3,750,000 3,750,000
Maryland Commty. Dev. Administration Dept.
Hsg. & Commty. Dev. (Multi-Family Hsg.)
Series A, 6.50% 5/15/21 (b) Aa 2,150,000 2,112,375
Maryland Energy Fing. Administration Ltd. Oblig.
Solid Waste Disp. Facs. Recycling Rev.
(Hagerstown Fiber LP) 9% 10/15/16 (b) - 9,000,000 8,966,250
Maryland Health & Higher Edl. Facs. Auth. Rev.:
Rfdg.:
(Doctors Commty. Hosp.) 5.50% 7/1/24 Baa 2,700,000 2,092,500
(Howard County Gen. Hosp.) 5.50% 7/1/13 Baa1 800,000 673,000
(Good Samaritan Hosp.) 5.75% 7/1/13 A 2,680,000 2,522,550
20,116,675
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (A) AMOUNT (NOTE 1)
MASSACHUSETTS - 1.0%
Brockton Gen. Oblig.:
7.75% 12/15/96 Baa $ 300,000 $ 306,375
7.75% 12/15/98 Ba1 170,000 181,475
Massachusetts Ind. Fin. Agcy. Health Care Facs.
Rev. (Hampden Nursing Home Proj.)
Series A, 9.75% 10/1/17 - 765,000 726,750
Massachusetts Ind. Fin. Agcy. Rev.:
Rfdg. (Atlanticare Med. Ctr.) Series A,
10.125% 11/1/14 - 700,000 644,000
Rfdg. (Emerson College) 8.90% 1/1/18 - 1,000,000 1,106,250
(Massachusetts Biomedical)(Cap. Appreciation)
Series A-2:
0% 8/1/08 A1 800,000 340,000
0% 8/1/10 A1 4,500,000 1,653,750
(Institute Dev. Disabilities) 9.25% 6/1/09 (b) - 95,000 93,100
(New England Ctr. for Autism) 9.50% 11/1/15 - 300,000 327,000
(Reed's Landing Proj.) 8.625% 10/1/23 - 500,000 491,875
5,870,575
MICHIGAN - 10.9%
Detroit Hosp. Fin. Auth. Facs. Rev.
(Michigan Healthcare Corp. Proj.)
10% 12/1/20 (f) Caa1 6,715,000 2,686,000
Flint Hosp. Bldg. Auth. Rev.:
Rfdg. (Hurley Med. Ctr.) 9.50% 7/1/06 Baa1 1,165,000 1,194,125
(Hurley Med. Ctr.) 7.80% 7/1/14 Baa1 700,000 725,375
Greater Detroit Resource Recovery Auth. Rev.:
Series G, 9.25% 12/13/08 BBB 4,500,000 4,696,875
Series H, 9.25% 12/13/08 BBB 3,445,000 3,595,719
Highland Park Hosp. Fin. Auth. Hosp. Facs. Rev.
(Lakeside Commty. Hosp. Proj.)
10% 3/1/20 (f) B1 150,000 60,000
Michigan Hosp. Fin. Auth. Rev. Rfdg.:
(Detroit Macomb Hosp. Corp.) Series A:
7.30% 6/1/01 B 1,750,000 1,725,938
7.40% 6/1/13 B 4,285,000 3,968,981
7% 6/1/15 B 1,605,000 1,418,419
(Pontiac Osteopathic Hosp.) 6% 2/1/24 Baa1 5,000,000 4,062,500
(Port Huron Hosp.) Series A,
7.625% 7/1/15 Baa 2,000,000 2,000,000
(Saratoga Commty. Hosp.) 8.75% 6/1/10 - 410,000 433,063
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (A) AMOUNT (NOTE 1)
MICHIGAN - CONTINUED
Michigan Strategic Fund Ltd. Oblig. Rev.:
(Great Lakes Pulp & Fibre Proj.):
10.25% 12/1/16 (b) - $ 3,000,000 $ 3,112,500
10.25% 12/1/16 - 20,000,000 20,750,000
(Mercy Svcs. for Aging Proj.) 9.40% 5/15/20 - 600,000 634,500
(Michigan Health Care Corp. Proj.)
9.10% 12/1/14 (f) - 2,115,000 846,000
Waterford Twp. Econ. Dev. Corp. Rev. Ltd.
Tax. Oblig. (Canterbury Health Care):
7.40% 7/1/99 - 180,000 179,775
7.60% 7/1/00 - 195,000 195,000
8% 7/1/08 - 300,000 299,250
8.375% 7/1/23 - 2,400,000 2,454,000
Wayne Charter County Spl. Arpt. Facs. Rev.
(Republic Airlines, Inc. Proj.) Series C,
10.375% 12/1/15 - 6,400,000 6,688,000
61,726,020
MINNESOTA - 3.0%
Minnesota Hsg. Single Fam. Mtg. Rev.
6.40% 7/1/15 Aa 2,000,000 2,000,000
St. Paul Hsg. & Redev. Auth. Hosp. Rev.
(Healtheast Proj.):
Series A:
6.625% 11/1/17 Baa 7,000,000 6,553,750
9.75% 11/1/17 Baa 390,000 430,463
Series B, 6.625% 11/1/17 Baa 7,000,000 6,553,750
White Bear Lake 1st Mtg. Nursing Home Rev.
Series 1992, 8.25% 11/1/12 - 1,625,000 1,643,281
17,181,244
MISSISSIPPI - 0.3%
Claiborne County Poll. Cont. Rev.
(Middle South Energy, Inc. Proj.):
Series A, 9.50% 12/1/13 - 50,000 56,125
Series C, 9.875% 12/1/14 - 1,100,000 1,247,125
Mississippi Home Corp. Single Family Sr.
Rev. Rfdg. Series 1990 A, 9.25% 3/1/12,
(FGIC Insured) Aaa 270,000 292,613
1,595,863
MISSOURI - 0.7%
Kansas City Ind. Dev. Auth.
(Kingswood United Methodist Manor Proj.)
Series 1993, 9% 11/15/13 - 2,000,000 2,095,000
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (A) AMOUNT (NOTE 1)
MISSOURI - CONTINUED
St. Louis Reg'l. Convention & Sports Complex
Auth. Series C, 7.90% 8/15/21 - $ 1,550,000 $ 1,633,313
3,728,313
NEBRASKA - 0.3%
Omaha Pub. Pwr. Dist. Elec. Sys. Rev.
Series 1992 B, 6.20% 2/1/17 Aa 1,750,000 1,802,500
NEVADA - 1.4%
Clark County Ind. Dev. Rev. (Southwest Gas
Corp.) Series A, 6.50% 12/1/33 (b)(e) Baa3 6,000,000 5,520,000
Las Vegas Redev. Agcy. Tax Increment Rev.
(Sub. Lien Fremont St. Proj. A):
6% 6/15/10 BBB 1,500,000 1,400,625
6.10% 6/15/14 BBB 1,000,000 946,250
7,866,875
NEW HAMPSHIRE - 1.4%
New Hampshire Higher Edl. & Health Facs.
Auth. Rev.:
(1st Mtg. River Woods at Exeter):
8% 3/1/00 - 1,900,000 1,935,625
8% 3/1/01 - 750,000 763,125
9% 3/1/23 - 1,830,000 1,951,238
(Littleton Hosp. Assoc., Inc.) Series A,
9.50% 5/1/20 - 500,000 537,500
(Valley Reg'l. Hosp.) 7.35% 4/1/23 (e) - 3,180,000 2,973,300
8,160,788
NEW JERSEY - 0.6%
Camden County Impt. Auth. Lease Rev.
(Dockside Refridgerated Holt)
8.40% 4/1/24 - 3,000,000 3,060,000
New Jersey Econ. Dev. Auth. Econ. Dev. Rev.
Rfdg. (Stolt Term. Proj.) 10.50% 1/15/18 - 60,000 67,725
New Jersey Econ. Dev. Auth. 1st Mtg. Gross Rev.
(Franciscan Oaks Proj.) Series A,
8.50% 10/1/23 - 500,000 504,375
3,632,100
NEW MEXICO - 2.6%
Albuquerque Retirement Facs. Rev. Rfdg.
(La Vida Liena Proj.) Series A,
8.85% 2/1/23 - 2,000,000 2,052,500
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (A) AMOUNT (NOTE 1)
NEW MEXICO - CONTINUED
Farmington Poll. Cont. Rev.
(Pub. Svc. Co. of New Mexico San Juan Proj.):
Rfdg. Series X, 5.90% 4/1/07 Ba2 $ 5,550,000 $ 5,140,688
Series A:
6.50% 9/1/04 Ba2 750,000 743,438
6% 3/1/08 Ba2 1,550,000 1,431,813
6.50% 9/1/09 Ba2 1,045,000 996,669
6.40% 8/15/23 Ba2 5,000,000 4,506,250
14,871,358
NEW YORK - 9.8%
Metropolitan Transit Auth. Trans. Facs.
(Cap. Appreciation) Series 7, 0% 7/1/12 Baa1 7,000,000 2,283,750
New York City Ind. Dev. Agcy. Spl. Facs. Rev.
(Terminal One Group Assoc. Proj.)
6% 1/1/19 (b) A 5,000,000 4,693,750
New York State Dorm. Auth. Rev.:
Rfdg. (State Univ. Edl. Facs.) Series A:
5.50% 5/15/13 Baa1 14,035,000 12,789,394
5.25% 5/15/15 Baa1 2,750,000 2,389,063
Rfdg. (State Univ. of NY) Series A,
5.875% 5/15/17 Baa1 3,565,000 3,297,625
(City Univ. Sys. Consolidated) Series A:
5.75% 7/1/13 Baa1 2,000,000 1,867,500
5.75% 7/1/13 Baa1 5,170,000 4,827,488
New York State Energy Research & Dev. Auth.
Elec. Facs. Rev. (Long Island Lighting)
Series A (b):
7.15% 12/1/20 Ba1 1,500,000 1,438,125
6.90% 8/1/22 Ba1 1,550,000 1,439,563
New York State Local Gov't. Assistance Corp.:
Rfdg. Series C, 5.50% 4/1/17 A 7,500,000 6,890,625
Series A:
5.90% 4/1/12 A 2,200,000 2,147,750
6% 4/1/16 A 5,875,000 5,735,469
Series D, 5% 4/1/23 A 3,000,000 2,516,250
New York State Tollway Auth. Gen. Rev.
(Cap. Appreciation)(Spl. Oblig.) Series A,
0% 1/1/04 BBB 4,000,000 2,375,000
Suffolk County Wtr. Auth. 6% 6/1/17,
(MBIA Insured) Aaa 1,000,000 992,500
55,683,852
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (A) AMOUNT (NOTE 1)
NORTH CAROLINA - 0.3%
North Carolina Eastern Muni. Pwr. Sys.
Rev. Rfdg. Series C, 5.125% 1/1/03 A $ 2,000,000 $ 1,875,000
OHIO - 3.7%
Butler County Hosp. Facs. Rev. 7.50% 1/1/10 Baa 3,500,000 3,552,500
Fairfield Econ. Dev. Rev. Rfdg.
(Beverly Enterprises Proj.) 8.50% 1/1/03 - 1,000,000 1,050,000
Mahoning Valley San. Dist. Wtr. Rev.:
7.75% 5/15/14 - 2,000,000 2,052,500
7.75% 5/15/19 - 2,000,000 2,037,500
Mount Vernon Hosp. Rev. (Knox Commty. Hosp.)
7.875% 6/1/12 - 50,000 51,938
Ohio Econ. Dev. Rev. Rfdg. (Kroger Co. Proj.)
Series 1992, 7.50% 9/1/10 Ba2 470,000 496,438
Ohio Solid Waste Rev. (Republic Engineered
Steels Proj.) 8.25% 10/1/14 (b) - 7,000,000 7,008,750
Summit County Ind. Dev. Rev. Rfdg.
(Surnow Assoc. Proj.) 7.65% 10/1/06 Ba3 920,000 986,700
Warren Hosp. Rev. Rfdg. (Warren Gen.
Hosp. Proj.) Series B, 7.30% 11/15/14 BBB 4,000,000 3,965,000
21,201,326
OKLAHOMA - 0.7%
Tulsa Muni. Arpt. Trust Rev. 7.35% 12/1/11 Baa1 4,000,000 4,125,000
PENNSYLVANIA - 11.3%
Allegheny County Hosp. Dev. Auth. Health
Facs. Rev. (Allegheny Valley School)
8.50% 2/1/15 Ba1 400,000 426,000
Allegheny County Ind. Dev. Auth. Rev.
(YMCA Pittsburgh Proj.) Series 1990,
8.75% 3/1/10 (e) - 380,000 405,650
Butler County Ind. Dev. Auth. Health Ctr.
Rev. Rfdg. (Sherwood Oaks Proj.)
5.75% 6/1/11 A 3,000,000 2,718,750
Cumberland County Muni. Auth. Rev.
(Carlisle Hosp.):
6.80% 11/15/14 Baa 3,250,000 3,038,750
6.80% 11/15/23 Baa 1,000,000 915,000
Delaware County Auth. Rev. (1st Mtg.
Riddle Village Proj.):
Series 1992, 8.75% 6/1/10 - 2,870,000 2,991,975
8% 6/1/99 - 750,000 765,000
7% 6/1/00 - 1,000,000 992,500
8.25% 6/1/22 - 1,250,000 1,229,688
9.25% 6/1/22 - 1,700,000 1,814,750
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (A) AMOUNT (NOTE 1)
PENNSYLVANIA - CONTINUED
Harrisburg Auth. Wtr. Rev. 5.875% 6/18/15,
(FGIC Insured) Aaa $ 4,000,000 $ 3,895,000
Keystone Oaks School Dist. Series C,
5.829% 9/1/16, (AMBAC Insured) Aaa 2,000,000 1,940,000
Lehigh County Gen. Purp. Auth. Rev.
(Wiley House) 8.75% 11/1/14 - 275,000 277,063
Montgomery County Higher Ed. & Health
Auth. Hosp. Rev. (United Hosp., Inc. Proj.):
(St. Christopher):
8.25% 11/1/03 Ba1 1,250,000 1,289,063
7% 11/1/06 Ba1 120,000 114,150
8.50% 11/1/17 Ba1 525,000 540,094
Series A:
8% 11/1/95 Ba1 100,000 100,625
8% 11/1/96 Ba1 65,000 65,975
10% 11/1/05 Ba1 25,000 25,875
8.375% 11/1/11 Ba1 120,000 124,350
Series B:
8% 11/1/95 Ba1 50,000 50,313
8.10% 11/1/97 Ba1 35,000 35,831
Northampton County Ind. Dev. Auth. Rev. Rfdg.
(Bethlehem Steel Poll. Cont. Proj.) Series 1994,
7.55% 6/1/17 - 1,940,000 1,942,425
Pennsylvania Convention Ctr. Auth. Rev.
Rfdg. Series A, 6.70% 9/1/14 Baa 3,750,000 3,759,375
Pennsylvania Econ. Dev. Fing. Auth. Resource
Recovery Rev. (Sr. Northhampton
Generating A) 6.60% 1/1/19 - 6,000,000 5,520,000
Pennsylvania Ind. Dev. Auth. Rev. Econ. Dev.
5.80% 7/1/09, (AMBAC Insured) Aaa 1,345,000 1,345,000
Philadelphia Hosp. & Higher Ed. Facs. Auth. Rev.
(Graduate Health System) Series A:
6.25% 7/1/13 Baa1 7,000,000 6,343,750
6.25% 7/1/18 Baa1 5,180,000 4,616,675
Philadelphia Ind. Dev. Auth. Dev. Rev.
(Long Term Care, Maplewood) 8% 1/1/24 - 3,000,000 2,842,500
Philadelphia Muni. Auth. Rev. Lease Rfdg.
Series D, 6.30% 7/15/17 Ba 2,230,000 2,098,988
Philadelphia Wtr. & Wastewtr. Rev.:
Rfdg.:
6.50% 6/15/06, (AMBAC Insured) Aaa 4,500,000 4,488,750
5.50% 6/15/07, (AMBAC Insured) Aaa 3,000,000 2,970,000
6.06% 6/15/12, (FGIC Insured) INFL (d) Aaa 2,000,000 1,802,500
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (A) AMOUNT (NOTE 1)
PENNSYLVANIA - CONTINUED
Somerset County Hosp. Auth. Rev.
(Health Care 1st Mtg-gtd.) 8.50% 6/1/24 (e) - $ 2,500,000 $ 2,471,875
63,958,240
PUERTO RICO - 0.6%
Puerto Rico Telephone Auth. Rev. 2.62% 1/1/04,
(AMBAC Insured) INFL (d) Aaa 4,000,000 3,455,000
RHODE ISLAND - 1.3%
Rhode Island Auth. & Econ. Dev. Corp.
Arpt. Rev. Series A, 7% 7/1/14,
(FSA Insured) (b) Aaa 4,000,000 4,345,000
Rhode Island Clean Wtr. Protection Fin. Agcy.
Wtr. Poll. Cont. Rev. (Revolving Fund Pooled
Loan) Series A, 5.40% 10/1/15,
(MBIA Insured) Aaa 1,650,000 1,536,563
Rhode Island Health & Edl. Bldg. Corp. Rev.
(Westerly Hospital) 6% 7/1/19 Baa 1,575,000 1,293,469
7,175,032
TENNESSEE - 1.6%
Bradley County Ind. Dev. Board Ind. Dev.
Rev. Rfdg. (Kroger Co.-Peytons SE Proj.)
8.10% 5/1/12 Ba2 650,000 706,063
Dyer County Ind. Dev. Board Ind. Dev. Rev.
Rfdg. (Tennessee Assoc. Proj.) 6% 2/1/07 Ba2 1,715,000 1,629,250
East Ridge Ind. Dev. Board Rev. Rfdg.
(Kroger Co. Proj.) 5.75% 9/1/00 Ba2 2,100,000 2,060,625
Rutherford County Ind. Dev. Board Dev. Rev.
Rfdg. (Kroger Co. Proj.) 7.30% 6/1/21 Ba2 1,000,000 1,028,750
Springfield Ind. Dev. Board Ind. Dev. Rev.
Rfdg. (Kroger Co. Proj.) 7.25% 5/1/11 Ba2 3,500,000 3,648,750
9,073,438
TEXAS - 3.6%
East Texas Health Facs. Dev. Corp. Hosp. Rev.
(Palestine) 7.80% 8/15/18 - 3,000,000 2,887,500
Harris County Cultural & Ed. Facs. Fin. Corp. Rev.
(Space Ctr. Houston Proj.):
9% 8/15/00 - 700,000 539,000
9.25% 8/15/15 - 5,900,000 4,543,000
Houston Elderly Hsg. Auth. 1st Lien Rev.
(Low Income Elderly Hsg.) 7.50% 7/1/17 - 450,000 452,813
Houston Hsg. Fin. Corp. Single Family Mtg. Rev.
(Verex Mtg. Assurance, Inc.) Series 1984 A,
10.875% 2/15/16 A 185,000 188,931
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (A) AMOUNT (NOTE 1)
TEXAS - CONTINUED
San Antonio Health Facs. Dev. Corp. Econ. Dev.
Rev. Rfdg. (Encore Nursing Ctr. Partner)
(Beverly Enterprises, Inc.) 8.25% 12/1/19 - $ 2,250,000 $ 2,275,313
Tomball Hospital Auth. Rev. Rfdg.
6.125% 7/1/23 Baa 3,735,000 3,240,113
Tyler Health Facs. Dev. Corp. Hosp. Rev.
(East Texas Med. Ctr. Reg'l. Health Sys.)
Series B, 6.75% 11/1/25 Baa 6,500,000 6,004,375
20,131,045
UTAH - 0.1%
South Salt Lake City Ind. Rev. (Price Savers
Wholesale Club Proj.) 9% 11/15/13 - 250,000 279,063
VERMONT - 0.7%
Vermont Ind. Dev. Auth. Mtg. Rev.
(Wake Robin Corp. Proj.) Series A,
8.75% 4/1/23 - 3,665,000 3,843,652
VIRGINIA - 3.0%
Charlottesville Ind. Dev. Auth. Ind. Dev. Rev. Rfdg.
(Kroger Co. Proj.) 7.25% 5/1/10 Ba2 3,250,000 3,388,125
Hopewell Ind. Dev. Auth. Resource Recovery Rev.
(Stone Container Corp.) 8.25% 6/1/16 - 3,735,000 3,945,094
Loudoun County Ind. Dev. Auth. Residential Care
Facs. Rev. (Falcons Landing Proj.) Series A:
9.25% 11/1/04 - 1,000,000 1,036,250
8.75% 11/1/24 - 8,500,000 8,478,750
16,848,219
WASHINGTON - 3.3%
Washington Pub. Pwr. Supply Sys. Rev.:
(Nuclear Proj. #1) 5.40% 7/1/12 Aa 2,800,000 2,499,000
(Nuclear Proj. #2) 5.26% 7/1/12 Aa 14,000,000 12,565,000
(Nuclear Proj. #3) 5.26% 7/1/12 Aa 4,000,000 3,570,000
18,634,000
WEST VIRGINIA - 1.2%
Kanawha County Ind. Dev. Rev. Rfdg.
(Topvalco, Inc. Proj.) 7.125% 11/1/12 Ba2 4,500,000 4,601,250
Ripley Ind. Dev. Rev. Rfdg. (Kroger Co. Proj.)
7.30% 5/1/11 Ba2 2,200,000 2,301,750
6,903,000
TOTAL MUNICIPAL BONDS
(Cost $565,138,867) 551,501,588
MUNICIPAL NOTES (C) - 2.9%
MOODY'S PRINCIPAL VALUE
RATINGS (A) AMOUNT (NOTE 1)
CALIFORNIA - 0.8%
Southern California Pub. Pwr. Auth. Rev.
(Transmission Proj.) Series 1991, 4.25%,
(AMBAC Insured) LOC Swiss Bank, VRDN VMIG 1 $ 4,300,000 $ 4,300,000
ILLINOIS - 0.4%
Illinois Dev. Fin. Auth. Multi-Family Hsg.
Rev. Rfdg. (Garden Glen Apts.)
Series 1993, 5.10%, VRDN A-1 2,300,000 2,300,000
INDIANA - 0.3%
Indiana Hosp. Equip. Fing. Auth. Rev.
Series 1985 A, 4.75%, (MBIA Insured)
BPA Bank of New York, VRDN VMIG 1 1,800,000 1,800,000
NEW YORK - 0.6%
New York City Muni. Wtr. Fin. Auth.
Wtr. & Swr. Rev. Series G, 5%,
(FGIC Insured), VRDN VMIG 1 3,300,000 3,300,000
OHIO - 0.1%
Ohio State Univ. Rev. (Gen. Receipts)
Series 1986 B, 4.75%,
BPA Fuji Bank, VRDN VMIG 1 800,000 800,000
PENNSYLVANIA - 0.7%
Sayre Health Care Facs. Auth. Hosp. Rev.
(VHA of Pennsylvania) Series 1985 A,
4.75%, (AMBAC Insured)
BPA First Nat'l. Bank of Chicago, VRDN - 1,300,000 1,300,000
Schuylkill County Ind. Dev. Auth. Resource
Recovery Rev. (Westwood Energy Prop.)
Series 1985, 5.20%, LOC Fuji Bank, VRDN P-1 2,700,000 2,700,000
4,000,000
TOTAL MUNICIPAL NOTES
(Cost $16,500,000) 16,500,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $581,638,867) $ 568,001,588
FUTURES CONTRACTS
EXPIRATION UNDERLYING FACE UNREALIZED
DATE AMOUNT AT VALUE GAIN/(LOSS)
SOLD
150 U.S. Treasury Bond Futures Contracts June 1995 $ 15,801,563 $
(26,361)
THE FACE VALUE OF FUTURES SOLD AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 2.8%
SECURITY TYPE ABBREVIATIONS
INFL - Inverse Floating Rate Securities
VRDN - Variable Rate Demand Notes
LEGEND
(a) Standard & Poor's Corporation credit ratings are used in the absence of
a rating by Moody's Investors Service, Inc.
(b) Private activity obligations whose interest is subject to the federal
alternative minimum tax for individuals.
(c) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(d) Coupon is inversely indexed to a floating interest rate. The price will
be more volatile than the price of a comparable fixed rate security. The
rate shown is the rate at period end.
(e) A portion of the security was pledged to cover margin requirements for
futures contracts. At the period end, the value of securities pledged
amounted to $2,010,438.
(f) Non-income producing - issuer filed for protection under the Federal
Bankruptcy Code or is in default of interest payment.
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 20.6% AAA, AA, A 23.7%
Baa 27.0% BBB 21.0%
Ba 10.7% BB 9.0%
B 0.0% B 1.3%
Caa 0.9% CCC 0.4%
Ca, C 0.0% CC, C 0.0%
D 0.0%
The percentage not rated by either S&P or Moody's amounted to 30.1%. FMR
has determined that unrated debt securities that are lower quality account
for 27.3% of the total value of investment in securities.
The distribution of municipal securities by revenue source, as a percentage
of total value of investment in securities, is as follows:
Health Care 30.9%
Industrial Development 20.9
Others (individually less than 10%) 48.2
TOTAL 100.0%
INCOME TAX INFORMATION
At April 30, 1995, the aggregate cost of investment securities for income
tax purposes was $581,638,867. Net unrealized depreciation aggregated
$13,637,279, of which $12,448,072 related to appreciated investment
securities and $26,085,351 related to depreciated investment securities.
At October 31, 1994, the fund had a capital loss carryforward of
approximately $3,173,000 which will expire on October 31, 2002.
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

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

ASSETS

Investment in securities, at value (cost $581,638,867) - $ 568,001,588
See accompanying schedule

Cash 973,113

Receivable for investments sold 458,469

Interest receivable 11,958,179

TOTAL ASSETS 581,391,349

LIABILITIES

Payable for investments purchased $ 4,168,855

Distributions payable 754,926

Accrued management fee 194,567

Distribution fees payable 129,293

Other payables and accrued expenses 131,369

TOTAL LIABILITIES 5,379,010

NET ASSETS $ 576,012,339

Net Assets consist of:

Paid in capital $ 602,900,843

Accumulated undistributed net realized gain (loss) on (13,224,864)
investments

Net unrealized appreciation (depreciation) on (13,663,640)
investments

NET ASSETS $ 576,012,339

CALCULATION OF MAXIMUM OFFERING PRICE $11.54
CLASS A:
NET ASSET VALUE and redemption price per share
($553,548,023 (divided by) 47,955,559 shares)

Maximum offering price per share (100/95.25 of $11.54) $12.12

CLASS B: $11.52
NET ASSET VALUE and offering price per share
($22,464,316 (divided by) 1,949,736 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 APRIL 30, 1995 (UNAUDITED)

INTEREST INCOME $ 19,454,701

EXPENSES

Management fee $ 1,112,232

Transfer agent fees 482,357
Class A

Class B 15,750

Distribution fees

Class A 666,229

Class B 79,623

Accounting fees and expenses 112,225

Non-interested trustees' compensation 3,326

Custodian fees and expenses 6,598

Registration fees

Class A 28,822

Class B 15,351

Audit 17,009

Legal 17,262

Reports to shareholders 37,858

Miscellaneous 4,013

TOTAL EXPENSES 2,598,655

NET INTEREST INCOME 16,856,046

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

Investment securities (7,555,942)

Futures contracts (1,627,489) (9,183,431)

Change in net unrealized appreciation (depreciation) on:

Investment securities 24,213,770

Futures contracts (22,782) 24,190,988

NET GAIN (LOSS) 15,007,557

NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ 31,863,603
FROM OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR ENDED
ENDED APRIL 30, OCTOBER 31,
1995 1994
(UNAUDITED)

INCREASE (DECREASE) IN NET ASSETS

Operations $ 16,856,046 $ 31,847,461
Net interest income

Net realized gain (loss) (9,183,431) (3,054,925)

Change in net unrealized appreciation (depreciation) 24,190,988 (64,524,052)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 31,863,603 (35,731,516)
FROM OPERATIONS

Distributions to shareholders from:
Net interest income

Class A (16,435,358) (31,785,094)

Class B (420,688) (63,973)

Net realized gain Class A - (2,464,636)

In excess of net realized gain Class A - (350,395)

TOTAL DISTRIBUTIONS (16,856,046) (34,664,098)

Share transactions - net increase (decrease) 6,613,957 127,211,465

TOTAL INCREASE (DECREASE) IN NET ASSETS 21,621,514 56,815,851

NET ASSETS

Beginning of period 554,390,825 497,574,974

End of period $ 576,012,339 $ 554,390,825

</TABLE>

FINANCIAL HIGHLIGHTS - CLASS A
SIX MONTHS YEARS ENDED OCTOBER 31,
ENDED
APRIL 30, 1995

(UNAUDITED) 1994 1993 1992 1991 1990

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SELECTED PER-SHARE DATA

Net asset value, $ 11.220 $ 12.720 $ 11.650 $ 11.410 $ 10.870 $ 10.820
beginning of period

Income from
Investment
Operations

Net interest .356 .689 D .710 .774 .803 .811
income

Net realized and .320 (1.430) 1.100 .250 .660 .150
unrealized gain
(loss) on
investments

Total from .676 (.741) 1.810 1.024 1.463 .961
investment
operations

Less Distributions

From net interest (.356) (.689) (.710) (.774) (.803) (.811)
income

From net realized - (.060) (.030) (.010) (.120) (.100)
gain

In excess of net - (.010) - - - -
realized gain

Total distributions (.356) (.759) (.740) (.784) (.923) (.911)

Net asset value, end $ 11.540 $ 11.220 $ 12.720 $ 11.650 $ 11.410 $ 10.870
of period

TOTAL RETURN B, C 6.14% (6.03) 15.95% 9.21% 14.02% 9.28%
%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of $ 553,548 $ 544,422 $ 497,575 $ 156,659 $ 67,135 $ 22,702
period (000 omitted)

Ratio of expenses to .93% .89% .92% .90% .90% .90%
average net assets A

Ratio of expenses to .93% .89% .92% .96% 1.24% 2.09%
average net assets A
before expense
reductions

Ratio of net interest 6.22% 5.78% 5.59% 6.59% 7.08% 7.37%
income to average A
net assets

Portfolio turnover 38% 38% 27% 13% 10% 11%
A

</TABLE>

A ANNUALIZED
B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN.
C TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED.
D EFFECTIVE NOVEMBER 1, 1993, THE FUND BEGAN REFLECTING IN NET INTEREST
INCOME PER SHARE CERTAIN RECLASSIFICATIONS RELATED TO BOOK TO TAX
DIFFERENCES IN ACCORDANCE WITH NEW GENERALLY ACCEPTED ACCOUNTING
PRINCIPLES.
FINANCIAL HIGHLIGHTS - CLASS B

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS PERIOD
ENDED ENDED
APRIL 30, 1995 OCTOBER 31,
(UNAUDITED) 1994 C

SELECTED PER-SHARE DATA

Net asset value, beginning of period $ 11.210 $ 11.610

Income from Investment Operations

Net interest income .313 .188

Net realized and unrealized gain (loss) on investments .310 (.400)

Total from investment operations .623 (.212)

Less Distributions

From net interest income (.313) (.188)

Net asset value, end of period $ 11.520 $ 11.210

TOTAL RETURN B 5.65% (1.86)%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 22,464 $ 9,968

Ratio of expenses to average net assets 1.89% A 2.09%
A

Ratio of net interest income to average net assets 5.33% A 4.58%
A

Portfolio turnover 38% A 38%

</TABLE>

A ANNUALIZED
B THE TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C FOR THE PERIOD JUNE 30, 1994 (COMMENCEMENT OF SALES OF CLASS B SHARES) TO
OCTOBER 31, 1994.
NOTES TO FINANCIAL STATEMENTS
For the period ended April 30, 1995 (Unaudited)

1. SIGNIFICANT ACCOUNTING
POLICIES.
Fidelity Advisor High Income Municipal Fund (the fund) is a fund of
Fidelity Advisor Series V (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. The fund commenced sale of Class B
shares on June 30, 1994. Interest 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.
The following summarizes the significant accounting policies of the fund:
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 for which quotations are not readily
available through the pricing service are valued at their fair value as
determined in good faith under consistently applied procedures under the
general supervision of the Board of Trustees.
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 all of its taxable income for its fiscal
year. The schedule of investments includes information regarding income
taxes under the caption "Income Tax Information."
INTEREST INCOME. Interest income, which includes amortization of premium
and accretion of original issue discount, is accrued as earned.
DISTRIBUTIONS TO SHAREHOLDERS. Distributions are declared daily and paid
monthly from net interest income. Distributions from realized gains, if
any, 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 futures
and options transactions and market discount.
1. SIGNIFICANT ACCOUNTING
POLICIES - CONTINUED
DISTRIBUTIONS TO SHAREHOLDERS - CONTINUED
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 interest income and realized
and unrealized gain (loss). Undistributed net realized gain (loss) on
investments may include temporary book and tax basis differences which will
reverse in a subsequent period. Any taxable income or gain remaining at
fiscal year end is distributed in the following year.
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.
FUTURES CONTRACTS AND OPTIONS.
The fund may use futures and options contracts to manage its exposure to
the bond market and to fluctuations in interest rates. Buying futures,
writing puts, and buying calls tend to increase the fund's exposure to the
underlying instrument. Selling futures, buying puts, and writing calls tend
to decrease the fund's exposure to the underlying instrument, or hedge
other fund investments. The underlying face amount at value is shown in the
schedule of investments under the caption "Futures Contracts." This amount
reflects each contract's exposure to the underlying instrument at period
end. Losses may arise from changes in the value of the underlying
instruments, if there is an illiquid secondary market for the contracts, or
if the counterparties do not perform under the contracts' terms.
Futures contracts are valued at the settlement price established each day
by the board of trade or exchange on which they are traded. Exchange-traded
options are valued using the last sale price or, in the absence of a sale,
the last offering price. Options traded over-the-counter are valued using
dealer-supplied valuations.
3. PURCHASES AND SALES
OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $104,874,971 and $100,984,049, respectively.
The market value of futures contracts opened and closed during the period
amounted to $297,975,348 and $288,741,244, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, Fidelity Management &
Research Company (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
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
MANAGEMENT FEE - CONTINUED
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 .25%. For the
period, the management fee was equivalent to an annualized rate of .41% 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") 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 $666,229 and $79,623 under the Class A Plan and
Class B Plan, respectively, of which $658,079 and $19,940 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 $1,142,633 on sales of Class A shares of the fund, of which
$976,179 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 $8,067 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. UMB Bank, n.a. (UMB) is the custodian, transfer agent,
and shareholder servicing agent for the fund's Class A and Class B shares.
UMB has entered into sub-arrangements with State Street Bank and Trust
Company (State Street) and Fidelity Investments Institutional Operations
Company (FIIOC), an affiliate of FMR, to perform
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
TRANSFER AGENT FEES - CONTINUED
the transfer, dividend disbursing, and shareholder servicing agent
functions for the Class A and Class B shares, respectively. During the
period November 1, 1994 to December 31, 1994, State Street and FIIOC
received fees based on the type, size, number of accounts and the number of
transactions made by shareholders of the respective classes of the fund.
Effective January 1, 1995, the Board of Trustees approved a revised
transfer agent contract pursuant to which State Street and FIIOC 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. All fees are paid to State Street and FIIOC by UMB, which is
reimbursed by the fund for such payments. FIIOC pays for typesetting,
printing and mailing of all shareholder reports, except proxy statements.
UMB also has a sub-contract with Fidelity Service Co. (FSC), an affiliate
of FMR, under which 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. For the period, FSC received accounting fees amounting to
$112,225.
5. SHARE TRANSACTIONS.
Share transactions for both classes were as follows:
SHARES DOLLARS
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED APRIL 30,
OCTOBER 31, APRIL 30, OCTOBER 31,
1995 1994 A 1995 1994 A
CLASS A
Shares sold 7,040,981 22,999,310 $ 79,083,558 $ 279,994,055
Reinvestment of distributions 932,628 1,766,115 10,525,502 21,077,604
Shares redeemed (8,547,517) (15,352,447) (94,943,054) (184,125,024)
Net increase (decrease) (573,908) 9,412,978 $ (5,333,994) $116,946,635
CLASS B
Shares sold 1,101,834 892,941 $ 12,406,698 $ 10,311,726
Reinvestment of distributions 23,957 3,497 271,404 39,828
Shares redeemed (65,035) (7,458) (730,151) (86,724)
Net increase (decrease) 1,060,756 888,980 $ 11,947,951 $ 10,264,830
A SHARE TRANSACTIONS FOR THE CLASS B ARE FOR THE PERIOD JUNE 30, 1994
(COMMENCEMENT OF SALE OF SHARES) TO OCTOBER 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
Guy E. Wickwire, 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 AGENT
UMB Bank, n.a.
Kansas City, MO
CUSTODIAN
UMB Bank, n.a.
Kansas City, MO
* 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)