FIDELITY ADVISOR SERIES V, N-30D, 1996-01-22

FIDELITY ADVISOR SERIES V
N-30D, 1996-01-22

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(2_FIDELITY_LOGOS)FIDELITY ADVISOR
(registered trademark)

HIGH INCOME MUNICIPAL
FUND - CLASS A & CLASS B
ANNUAL REPORT
OCTOBER 31, 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 15 A summary of major shifts in the
fund's investments over the past six
months.

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

FINANCIAL STATEMENTS 31 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.

NOTES 37 Notes to the financial statements.

REPORT OF INDEPENDENT 42 The auditors' opinion.
ACCOUNTANTS

THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL
INFORMATION OF THE SHAREHOLDERS OF THE FUND. THIS REPORT IS NOT AUTHORIZED
FOR DISTRIBUTION TO
PROSPECTIVE INVESTORS IN THE FUND UNLESS PRECEDED OR ACCOMPANIED BY AN
EFFECTIVE
PROSPECTUS.
MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED BY,
ANY DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE FDIC,
FEDERAL RESERVE BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO
INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT INVESTED.
NEITHER THE FUND NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK.
FOR MORE INFORMATION ON ANY FIDELITY ADVISOR FUND, INCLUDING CHARGES AND
EXPENSES,
CONTACT YOUR INVESTMENT PROFESSIONAL FOR A FREE PROSPECTUS. READ IT
CAREFULLY BEFORE YOU
INVEST OR SEND MONEY.
PRESIDENT'S MESSAGE

DEAR SHAREHOLDER:
Although the markets were fairly positive in 1995, no one can predict what
lies ahead for investors. The previous 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 12.50% 52.64% 112.23%

Advisor High Income Municipal - Class A
(incl. max. 4.75% sales charge) 7.16% 45.39% 102.15%

Lehman Brothers Municipal Bond Index 14.84% 52.34% n/a

Average High-Yield Municipal Bond Fund 12.72% 47.90% n/a

Consumer Price Index 2.81% 15.13% 33.65%

CUMULATIVE TOTAL RETURNS show Class A's performance in percentage terms
over a set period - in this case, 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 36 high-yield municipal bond funds with similar
objectives tracked by Lipper Analytical Services over the past 12 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 OCTOBER 31, 1995 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

Advisor High Income Municipal - Class A 12.50% 8.83% 9.70%

Advisor High Income Municipal - Class A
(incl. max. 4.75% sales charge) 7.16% 7.77% 9.04%

Lehman Brothers Municipal Bond Index 14.84% 8.78% n/a

Average High Yield Municipal Bond Fund 12.72% 8.12% n/a

Consumer Price Index 2.81% 2.86% 3.65%

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
FA High Inc Cl I (679)LB Muni Bond Index
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 10878.35 10933.31
03/31/88 10752.21 10805.94
04/30/88 10804.96 10888.06
05/31/88 10859.03 10856.60
06/30/88 11061.37 11015.43
07/31/88 11096.60 11087.25
08/31/88 11134.46 11097.01
09/30/88 11304.15 11297.86
10/31/88 11458.60 11497.27
11/30/88 11470.98 11391.96
12/31/88 11602.17 11508.50
01/31/89 11748.27 11746.49
02/28/89 11760.05 11612.46
03/31/89 11850.55 11584.71
04/30/89 12121.36 11859.73
05/31/89 12319.40 12106.06
06/30/89 12460.50 12270.46
07/31/89 12569.81 12437.46
08/31/89 12667.04 12315.70
09/30/89 12705.24 12279.00
10/31/89 12839.38 12429.17
11/30/89 12997.44 12646.68
12/31/89 13121.01 12750.13
01/31/90 13141.72 12689.82
02/28/90 13235.90 12803.39
03/31/90 13318.94 12807.23
04/30/90 13197.12 12714.51
05/31/90 13467.56 12992.07
06/30/90 13626.24 13106.27
07/31/90 13836.41 13299.59
08/31/90 13743.04 13106.48
09/30/90 13840.77 13113.95
10/31/90 14030.79 13351.83
11/30/90 14378.93 13620.34
12/31/90 14470.66 13679.59
01/31/91 14639.07 13863.17
02/28/91 14751.63 13983.78
03/31/91 14838.36 13988.81
04/30/91 15079.97 14175.56
05/31/91 15266.37 14301.58
06/30/91 15301.90 14287.42
07/31/91 15499.76 14461.44
08/31/91 15639.74 14651.90
09/30/91 15823.19 14842.67
10/31/91 15998.52 14976.25
11/30/91 16058.70 15018.04
12/31/91 16233.36 15340.32
01/31/92 16413.30 15375.30
02/29/92 16502.47 15380.22
03/31/92 16585.27 15385.91
04/30/92 16734.95 15522.85
05/31/92 16885.07 15705.55
06/30/92 17116.60 15969.09
07/31/92 17712.61 16447.84
08/31/92 17575.45 16287.48
09/30/92 17685.14 16394.00
10/31/92 17471.71 16232.84
11/30/92 17821.88 16523.57
12/31/92 18036.75 16692.28
01/31/93 18341.83 16886.41
02/28/93 18989.50 17497.19
03/31/93 18791.44 17312.25
04/30/93 18990.71 17486.93
05/31/93 19147.98 17585.20
06/30/93 19454.97 17878.70
07/31/93 19469.42 17902.12
08/31/93 19970.87 18274.84
09/30/93 20247.42 18482.99
10/31/93 20258.28 18518.67
11/30/93 20060.30 18355.52
12/31/93 20523.52 18743.00
01/31/94 20762.50 18957.05
02/28/94 20213.75 18466.06
03/31/94 19136.29 17714.12
04/30/94 19263.27 17864.34
05/31/94 19377.19 18019.22
06/30/94 19305.84 17909.12
07/31/94 19654.09 18237.40
08/31/94 19684.97 18300.50
09/30/94 19376.60 18031.85
10/31/94 19036.93 17711.60
11/30/94 18424.89 17391.38
12/31/94 18871.45 17774.16
01/31/95 19508.98 18282.15
02/28/95 20034.62 18813.79
03/31/95 20139.96 19029.96
04/30/95 20206.16 19052.42
05/31/95 20852.77 19660.38
06/30/95 20689.20 19488.35
07/31/95 20760.36 19673.10
08/31/95 20974.77 19922.56
09/30/95 21183.95 20048.66
10/31/95 21433.87 20340.17

$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 October 31, 1995, the value of your investment would have
grown to $20,400 - a 104.00% 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 $20,340 - a 103.40% 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>
YEARS ENDED OCTOBER 31,

1995 1994 1993 1992 1991

Dividend return 6.62% 5.27% 6.49% 7.01% 7.89%

Capital appreciation return 5.88% -11.30% 9.46% 2.20% 6.13%

Total return 12.50% -6.03% 15.95% 9.21% 14.02%

</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, if any, and exclude the effects of sales charges.
DIVIDENDS AND YIELD

<TABLE>
<CAPTION>
<S> <C> <C> <C>
PERIODS ENDED OCTOBER 31, 1995 PAST PAST 6 PAST 1
MONTH MONTHS YEAR

Dividends per share 5.68(cents) 34.41(cents) 70.02(cents)

Annualized dividend rate 5.65% 5.81% 6.08%

30-day annualized yield 5.39% - -

30-day annualized tax-equivalent yield 8.42% - -

</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 $11.84
over the past month, $11.75 over the past six months and $11.51 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 shows you the yield characteristics of the fund's investments at the
end of the period. It also helps you compare funds from different companies
on an equal basis. The offering share price used in the calculation of the
yield includes the effect of Class A's maximum 4.75% sales charge. 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 36% federal
tax bracket, but does not reflect payment of the federal alternative
minimum tax, if applicable.
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. A fund's total return
includes changes in a fund's share price, plus reinvestment of any
dividends (or income) and capital gains (the profits the fund earns when it
sells securities that have grown in value). You can also look at income to
measure performance.
Initial offering of Class B shares took place on June 30, 1994. Class B
shares bear a 1.00% 12b-1/shareholder service fee. This fee is not
reflected in returns prior to that date, and returns would have been lower
had this fee been taken into account. Prior date returns are those of Class
A, the original class of the fund, and reflect Class A's 0.25% 12b-1 fee.
If Fidelity had not reimbursed certain class expenses, the past one year,
past five years and life of fund total returns and dividends would have
been lower. Class B's contingent deferred sales charges included in the
past 1 year, past 5 years and life of fund total return figures are 4%, 1%
and 0%, respectively.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 1995 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

Advisor High Income Municipal - Class B 11.57% 50.66% 109.48%

Advisor High Income Municipal - Class B
(incl. contingent deferred sales charge) 7.57% 49.66% 109.48%

Lehman Brothers Municipal Bond Index 14.84% 52.34% n/a

Average High-Yield Municipal Bond Fund 12.72% 47.90% n/a

Consumer Price Index 2.81% 15.13% 33.65%

CUMULATIVE TOTAL RETURNS show Class B's performance in percentage terms
over a set period - in this case, 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 36 high-yield municipal bond funds with similar
objectives tracked by Lipper Analytical Services over the past 12 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 OCTOBER 31, 1995 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

Advisor High Income Municipal - Class 11.57% 8.54% 9.52%
B

Advisor High Income Municipal - Class B
(incl. contingent deferred sales charge) 7.57% 8.40% 9.52%

Lehman Brothers Municipal Bond Index 14.84% 8.78% n/a

Average High-Yield Municipal Bond Fund 12.72% 8.12% n/a

Consumer Price Index 2.81% 2.86% 3.65%

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
FA High Inc- Cl B (669) LB Muni Bond Index
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 10878.35 10933.31
03/31/88 10752.21 10805.94
04/30/88 10804.96 10888.06
05/31/88 10859.03 10856.60
06/30/88 11061.37 11015.43
07/31/88 11096.60 11087.25
08/31/88 11134.46 11097.01
09/30/88 11304.15 11297.86
10/31/88 11458.60 11497.27
11/30/88 11470.98 11391.96
12/31/88 11602.17 11508.50
01/31/89 11748.27 11746.49
02/28/89 11760.05 11612.46
03/31/89 11850.55 11584.71
04/30/89 12121.36 11859.73
05/31/89 12319.40 12106.06
06/30/89 12460.50 12270.46
07/31/89 12569.81 12437.46
08/31/89 12667.04 12315.70
09/30/89 12705.24 12279.00
10/31/89 12839.38 12429.17
11/30/89 12997.44 12646.68
12/31/89 13121.01 12750.13
01/31/90 13141.72 12689.82
02/28/90 13235.90 12803.39
03/31/90 13318.94 12807.23
04/30/90 13197.12 12714.51
05/31/90 13467.56 12992.07
06/30/90 13626.24 13106.27
07/31/90 13836.41 13299.59
08/31/90 13743.04 13106.48
09/30/90 13840.77 13113.95
10/31/90 14030.79 13351.83
11/30/90 14378.93 13620.34
12/31/90 14470.66 13679.59
01/31/91 14639.07 13863.17
02/28/91 14751.63 13983.78
03/31/91 14838.36 13988.81
04/30/91 15079.97 14175.56
05/31/91 15266.37 14301.58
06/30/91 15301.90 14287.42
07/31/91 15499.76 14461.44
08/31/91 15639.74 14651.90
09/30/91 15823.19 14842.67
10/31/91 15998.52 14976.25
11/30/91 16058.70 15018.04
12/31/91 16233.36 15340.32
01/31/92 16413.30 15375.30
02/29/92 16502.47 15380.22
03/31/92 16585.27 15385.91
04/30/92 16734.95 15522.85
05/31/92 16885.07 15705.55
06/30/92 17116.60 15969.09
07/31/92 17712.61 16447.84
08/31/92 17575.45 16287.48
09/30/92 17685.14 16394.00
10/31/92 17471.71 16232.84
11/30/92 17821.88 16523.57
12/31/92 18036.75 16692.28
01/31/93 18341.83 16886.41
02/28/93 18989.50 17497.19
03/31/93 18791.44 17312.25
04/30/93 18990.71 17486.93
05/31/93 19147.98 17585.20
06/30/93 19454.97 17878.70
07/31/93 19469.42 17902.12
08/31/93 19970.87 18274.84
09/30/93 20247.42 18482.99
10/31/93 20258.28 18518.67
11/30/93 20060.30 18355.52
12/31/93 20523.52 18743.00
01/31/94 20762.50 18957.05
02/28/94 20213.75 18466.06
03/31/94 19136.29 17714.12
04/30/94 19263.27 17864.34
05/31/94 19377.19 18019.22
06/30/94 19305.84 17909.12
07/31/94 19629.10 18237.40
08/31/94 19660.37 18300.50
09/30/94 19334.36 18031.85
10/31/94 18946.77 17711.60
11/30/94 18325.24 17391.38
12/31/94 18774.81 17774.16
01/31/95 19379.82 18282.15
02/28/95 19889.67 18813.79
03/31/95 19981.48 19029.96
04/30/95 20016.92 19052.42
05/31/95 20645.55 19660.38
06/30/95 20470.12 19488.35
07/31/95 20523.68 19673.10
08/31/95 20718.46 19922.56
09/30/95 20873.24 20048.66
10/31/95 21139.12 20340.17

$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 October 31, 1995, the value
of your investment would have grown to $21,139 - a 111.39% 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 $20,340 - a 103.40% 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>
YEARS ENDED OCTOBER 31,

1995 1994 1993 1992 1991

Dividend return 5.77% 4.90% 6.49% 7.01% 7.89%

Capital appreciation return 5.80% -11.37% 9.46% 2.20% 6.13%

Total return 11.57% -6.47% 15.95% 9.21% 14.02%

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C>
PERIODS ENDED OCTOBER 31, 1995 PAST PAST 6 PAST 1
MONTH MONTHS YEAR

Dividends per share 4.98(cents) 29.98(cents) 61.24(cents)

Annualized dividend rate 4.96% 5.07% 5.32%

30-day annualized yield 4.97% - -

30-day annualized tax-equivalent yield 7.77% - -

</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 $11.82
over the past month, $11.73 over the past six months, and $11.51 over the
past year. 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 shows you the yield characteristics of the fund's
investments at the end of the period. It also helps you compare funds from
different companies on an equal basis. The offering share price used in the
calculation of the yield excludes the effect of Class B's contingent
deferred sales charge. 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 36% federal tax bracket, but does not reflect payment of the
federal alternative minimum tax, if applicable.
FUND TALK: THE MANAGER'S OVERVIEW

MARKET RECAP
In sharp contrast to much of 1994,
the municipal bond market posted
positive returns for the 12 months
ended October 31, 1995. For the
period, the Lehman Brothers
Municipal Bond Index - a broad
measure of the tax-free market -
had a total return of 14.84%. By
comparison, the Lehman Brothers
Aggregate Bond Index - a proxy
of investment-grade taxable
bonds - had a total return of
15.65%. While the bankruptcy of
Orange County, California, in
December 1994 caused some
concern among investors, tax-free
bonds managed to surge ahead of
their taxable counterparts in the
first quarter of 1995 on signs of a
slowing economy and tamer
inflation expectations. By spring,
however, the muni bond market
began to underperform U.S.
Treasury securities when
Congress began consideration of
tax-code changes, some of which
threatened the tax-exempt status
of municipal securities. This threat
of radical tax reform dampened
enthusiasm in the municipal bond
market, helping shorter maturity
bonds to outperform longer bonds
throughout the spring and
summer months. In early fall,
historically attractive valuations
relative to Treasuries, weakening
new issuance and stronger
demand from insurance
companies and retail buyers
helped tax-free bonds rebound.
An interview with Tanya Roy, Portfolio Manager of Fidelity Advisor High
Income Municipal Fund
Q. HOW DID THE FUND PERFORM, TANYA?
A. For the year ended October 31, 1995, the fund's class A and B shares
returned 12.50% and 11.57%, respectively. For the same period, the average
high- yield municipal bond fund returned 12.72%, according to Lipper
Analytical Services. The Lehman Brothers Municipal Bond Index returned
14.84% for the period. Unlike the index, the fund has approximately 37% of
its investments in non-investment grade municipal bonds. As a rule,
investment-grade bonds have more price sensitivity to interest rate changes
and thus will outperform high-yield bonds in a rally like we've seen this
year.
Q. MUNICIPAL BONDS HAVE PERFORMED WELL THIS YEAR COMPARED TO 1994. WHAT
WERE SOME OF THE MAJOR FACTORS THAT SHAPED THE PERFORMANCE OF THE MUNICIPAL
BOND MARKET?
A. Municipal bonds surged ahead in the first quarter of 1995 and continued
to appreciate throughout the year. This paralleled the upward price
movement in Treasury bonds as investors grew increasingly optimistic about
the prospects for low inflation and moderate economic growth. The
performance of munis also has been aided by a 17% drop in new issuance from
last year's levels. I think, however, the major factor in the market this
year has been the discussion of federal tax reform and the prospect of a
flat tax. Many of the radical tax reform proposals in Washington threaten
to eliminate the tax-free advantage of municipal bonds. The effect of such
debate has impacted the demand side of the equation. The muni yield curve
steepened last spring and early summer as buyers, both retail investors and
insurance companies, sought bonds with maturities inside 15 years. Demand
in the market also was held back by flat to negative cash flows into mutual
funds, a major buyer of municipal bonds.
Q. WHERE DO HIGH-INCOME MUNICIPAL BONDS FIT INTO THIS PICTURE?
A. In general, most high-income munis fall into the longer maturities on
the yield curve and, as I said before, the longer end tended to
underperform the shorter end of the curve. High-yield muni bonds do,
however, generate attractive income to compensate for their additional
risk. Although price-performance has overshadowed income this year, when
you look at the total return components of bonds over time, the income
component makes up the majority of the return of the bond.
Q. HEALTH CARE BONDS ENCOMPASS APPROXIMATELY 28% OF THE PORTFOLIO. WHAT
HAPPENED IN THAT AREA THIS YEAR?
A. Two-thirds of the fund's health care exposure consists of hospital
bonds. The sector has lagged this year relative to other municipal sectors.
In general, like the tax-reform talk, Medicare and Medicaid reform
proposals in Washington have tainted the industry.
Q. WHAT'S YOUR OPINION ON THE STATUS OF THE TAX-FREE HEALTH CARE MARKET?
HAVE YOU BEEN ABLE TO FIND ANY APPEALING ISSUERS IN THIS SECTOR?
A. Keep in mind that this kind of uncertainty presents investment
opportunities. I think it's necessary to look at hospital issuers on a
case-by-case basis. Over time, market valuations of individual issuers will
sort themselves out and good credits should be recognized by the market.
With the help of Fidelity's strong research staff, I believe I've
identified solid health-care names such as Rocky Mountain Adventist in
Colorado. In general, I look for hospitals and other health care facilities
with low costs, market leadership and forward-thinking management.
Q. HOW HAS THE FUND'S POSITION IN AIRLINE BONDS DONE?
A. Very well. Municipal bonds backed by fees paid by major airlines to
airports have been a top performing sector of the high-yield muni market. A
number of airline bonds are not investment grade, but they trade as if they
were. In other words, many airline bonds are trading at yields much higher
than their credit rating would suggest. This is the case with the fund's
major airline holding, Delta Airlines. The fund's Delta holdings are in
Kenton County, Kentucky - the Cincinnati/Northern Kentucky Airport - and at
Chicago's O'Hare Airport.
Q. WHAT ABOUT THE FUND'S HOLDINGS IN ELECTRIC UTILITIES?
A. The fund owns bonds issued by both municipal utilities and
investor-owned utilities. Approximately 10% of the fund's investments are
in this sector. Like health care, the electric utility industry is
experiencing substantial change because of deregulation and mergers. In the
near term, I believe the changes in this sector will impact investor-owned
utilities more than municipal utilities. This is because, in general,
municipal utilities already operate on a more cost effective basis in part
due to their ability to issue tax-exempt debt. As always, our investment
approach to this sector is driven by good fundamental credit research.
Q. WERE THERE ANY DISAPPOINTMENTS?
A. When I started managing the fund in August, it had an underweighting in
general obligation bonds issued by New York City. Because city bonds have
performed well, their underweighting hurt the fund somewhat. I've begun to
build up the fund's position in these bonds to where it will be about equal
in weighting to the fund's benchmark.
Q. DID YOU MAKE ANY STRUCTURAL CHANGES TO THE FUND?
A. Yes. Most of the changes were to the investment-grade portion of the
fund. Within this area, I've focused on improving the fund's convexity.
Like duration, convexity measures the sensitivity of a bond to interest
rate changes. Generally the more convexity a bond has, the slower its price
will fall and the faster it should rise when interest rates change. One way
I've improved convexity is buying non-callable bonds. Additionally, I
focused on the 15- to 20-year part of the yield curve in order to take
advantage of the attractiveness of that part of the curve. Put another way,
the yield pick-up here is especially attractive given normal historical
yield curve relationships.
Q. WHAT'S YOUR OUTLOOK, TANYA?
A. The muni market may exhibit some volatility in the near term as we head
into the next election year. Political debate on tax reform will
predominate. A major question facing the financial markets now is what will
emerge from the budget negotiations in Washington. Given how much the bond
market has rallied this year, I don't think investors should expect to see
the same degree of price performance enjoyed over the last year. Returns
should be generated more from income than price appreciation.

FUND FACTS
GOAL: high current, federally
tax-free income
START DATE: September 16,
1987
SIZE: as of October 31, 1995,
more than $597 million
MANAGER: Tanya Roy, since
August 1995; municipal bond
analyst, 1989 to 1995; joined
Fidelity in 1989
(checkmark)
TANYA ROY ON HER INVESTMENT
STYLE:
"I don't set out to make
interest-rate bets. My style is
more a relative-value
approach. Fundamental credit
research, as well as the
appropriate overweighting
and underweighting of issuers
are major contributors to the
fund's returns over time.
Relative value can be derived
from numerous sources such
as bond structure, which
includes coupon, optionality -
whether a bond is callable or
non-callable - and yield curve
posi- tioning, as well as credit
research. These are the
primary sources of total return
outperformance that I focus
on."
NOTE TO SHAREHOLDERS:
In August 1995, Tanya Roy
became the portfolio manager
of Fidelity Advisor High
Income Municipal Fund.
INVESTMENT CHANGES

TOP FIVE STATES AS OF OCTOBER 31, 1995
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE STATES
6 MONTHS AGO

New York 10.5 10.4

Pennsylvania 9.1 12.0

Michigan 8.6 10.9

California 6.8 7.2

Connecticut 5.3 4.2

TOP FIVE SECTORS AS OF OCTOBER 31, 1995
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE SECTORS
6 MONTHS AGO

Health Care 27.6 30.9

Industrial Development 22.2 20.9

Electric Revenue 10.2 8.7

Transportation 7.9 4.6

Lease Revenue 7.2 8.2

AVERAGE YEARS TO MATURITY AS OF OCTOBER 31, 1995
6 MONTHS AGO

Years 18.4 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 OCTOBER 31, 1995
6 MONTHS AGO

Years 7.7 7.8

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 OCTOBER 31, 1995 AS OF APRIL 30, 1995

Aaa 10.8%
Aa, A 13.2%
Baa 26.6%
Ba or B 12.9%
Caa 0.9%
Non-rated 28.0%
Short-term
investments 7.6%
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%
Row: 1, Col: 1, Value: 7.6
Row: 1, Col: 2, Value: 27.0
Row: 1, Col: 3, Value: 1.9
Row: 1, Col: 4, Value: 12.9
Row: 1, Col: 5, Value: 26.6
Row: 1, Col: 6, Value: 13.2
Row: 1, Col: 7, Value: 10.8
Row: 1, Col: 1, Value: 3.9
Row: 1, Col: 2, Value: 29.1
Row: 1, Col: 3, Value: 1.9
Row: 1, Col: 4, Value: 12.7
Row: 1, Col: 5, Value: 30.1
Row: 1, Col: 6, Value: 13.3
Row: 1, Col: 7, Value: 9.0
WHERE MOODY'S RATINGS ARE NOT AVAILABLE, WE HAVE USED S&P RATINGS. UNRATED
DEBT SECURITIES THAT ARE EQUIVALENT TO BA AND BELOW AT OCTOBER 31, 1995,
AND APRIL 30, 1995, ACCOUNT FOR 25.4% AND 29.2%, RESPECTIVELY, OF THE
FUND'S INVESTMENTS.
INVESTMENTS OCTOBER 31, 1995

Showing Percentage of Total Value of Investments in Securities

MUNICIPAL BONDS - 92.4%
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (A) AMOUNT (NOTE 1)
ALABAMA - 1.5%
Cullman Med. Park South Med. Clinic Board Rev.
(Cullman Reg'l. Med. Ctr. Proj.) Series A:
6.50% 2/15/13 Baa $ 2,700,000 $ 2,639,250
6.50% 2/15/23 Baa 420,000 403,725
Selma Spl. Care Facs. Fing. Auth. Healthcare
Facs. Rev. Rfdg. (Vaughan Reg'l. Med.
Ctr. Proj.) 7.125% 6/1/14 - 1,510,000 1,440,163
Shelby County Series A, 7.70% 8/1/17 - 4,000,000 4,375,000
8,858,138
ARIZONA - 0.2%
Arizona Trans. Board Excise Tax Rev. Rfdg.
(Maricopa County Reg'l. Area A Road
Proj.) 6% 7/1/03, (AMBAC Insured) Aaa 1,300,000 1,410,500
ARKANSAS - 0.2%
Fayetteville Pub. Facs. Board Rev. Rfdg.
(Butterfield Trail Village Proj.):
Series A:
8.25% 9/1/00 - 870,000 872,975
9.50% 9/1/14 - 500,000 538,750
Series B, 8.25% 9/1/00 - 40,000 41,053
1,452,778
CALIFORNIA - 6.3%
California Pub. Wks. Board Lease Rev. Rfdg.
Series A:
(Dept. of Corrections State Prisons Proj.)
5% 12/1/19, (AMBAC Insured) Aaa 3,000,000 2,745,000
(California University Proj.) 5.50% 6/1/14 A1 1,500,000 1,440,000
Foothill/Eastern Trans. Corridor Agcy. California
Toll Road Rev. (Sr. Lien) Series A:
0% 1/1/14 BBB- 2,000,000 580,000
6% 1/1/16 BBB- 3,750,000 3,665,625
Los Angeles County Ctfs. of Prtn. (Cap.
Appreciation) (Disney Parking Proj.):
0% 3/1/14 Baa1 1,000,000 282,500
0% 9/1/14 Baa1 7,260,000 1,987,425
Northern California Pwr. Agcy. Pub. Pwr. Rev.
Rfdg. (Geothermal Proj. #3) Series A, 5.85%
7/1/10, (AMBAC Insured) Aaa 1,500,000 1,567,500
Oakland Redev. Agcy. Rfdg. (Sr. Tax Allocation)
(Central Dist. Redev. Proj.) 5.50% 2/1/14,
(AMBAC Insured) Aaa 1,000,000 988,750
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (A) AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
Orange County Dev. Agcy. (Tax Allocation)
(Santa Ana Heights Proj.):
6.20% 9/1/08 Caa $ 1,650,000 $ 1,596,375
6% 9/1/15 Caa 1,200,000 1,080,000
Riverside County Ctfs. of Prtn. Rfdg.
(Air Force Village West, Inc.) Series A:
8.125% 6/15/12 - 4,790,000 4,951,663
8.125% 6/15/20 - 3,000,000 3,101,250
Sacramento City Fing. Auth. Lease Rev. Rfdg.
Series A, 5.40% 11/1/20,
(AMBAC Insured) Aaa 2,000,000 1,920,000
Sacramento City Fing. Auth Rev. (Tax Allocation)
(Cap. Appreciation) Series B,
0% 11/1/11, (MBIA Insured) Aaa 1,225,000 494,594
Sacramento Cogeneration Auth. Cogeneration
Proj. Rev. (Proctor & Gamble Proj.):
5.40% 7/1/98 BBB- 1,100,000 1,112,375
6.375% 7/1/10 BBB- 1,000,000 1,026,250
6.50% 7/1/14 BBB- 3,800,000 3,904,500
San Jose Redev. Agcy. Tax Allocation Bonds
Series 1993 Rites, 5.59% 8/1/14,
(MBIA Insured) INFL (d) Aaa 3,000,000 2,733,750
Sequoia Hosp. 5.375% 8/15/13 Baa1 2,500,000 2,203,125
37,380,682
COLORADO - 3.5%
Colorado Health Facs. Auth. Rev.:
(National Benevolent Assoc. Proj.)
Series A, 6.50% 6/1/25 Baa1 1,360,000 1,283,500
(Rocky Mountain Adventist Proj.):
6.625% 2/1/13 Baa 7,200,000 7,119,000
6.625% 2/1/22 Baa 5,000,000 4,875,000
Colorado Springs Arpt. Rev. (Cap. Appreciation)
Series C:
0% 1/1/06 BBB+ 1,405,000 790,313
0% 1/1/08 BBB+ 870,000 420,863
Denver City & County Arpt. Rev. Series A (e):
6.60% 11/15/97 Baa 1,000,000 1,031,250
6.90% 11/15/98 Baa 1,000,000 1,051,250
7.50% 11/15/23 Baa 2,500,000 2,721,875
Mesa County Ind. Dev. Rev. (Joy Technologies,
Inc. Proj.) 8.50% 9/15/06 Ba3 1,250,000 1,335,938
20,628,989
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (A) AMOUNT (NOTE 1)
CONNECTICUT - 4.4%
Connecticut Gen. Oblig. 6% 10/1/04 Aa $ 1,500,000 $ 1,631,250
Connecticut Health & Edl. Facs. Auth. Rev.
RIB (Yale Univ. Proj.):
7.742% 5/15/30 INFL (d) Aaa 2,000,000 2,027,500
5.929% 6/10/30 Aaa 6,000,000 6,045,000
(New Britain Mem. Hosp. Proj.) Series A,
7.50% 7/1/06 BBB- 3,000,000 3,228,750
(The Griffin Hosp.) Series A:
6% 7/1/13 Baa1 1,810,000 1,708,188
5.75% 7/1/23 Baa1 3,280,000 2,911,000
Eastern Connecticut Resource Recovery Auth.
Solid Waste Rev. (Wheelabrator Lisbon Proj.)
Series A (e):
5.50% 1/1/14 A 4,750,000 4,429,375
5.50% 1/1/20 A 4,000,000 3,655,000
25,636,063
DISTRICT OF COLUMBIA - 0.5%
District of Columbia Hosp. Rev. (Hosp. for Sick
Children) Series A, 8.875% 1/1/21 - 985,000 1,062,569
District of Columbia Rev. Rfdg. Series A,
6% 6/1/07, (MBIA Insured) Aaa 2,000,000 2,092,500
3,155,069
FLORIDA - 0.9%
Florida Board of Ed. Gen. Oblig.
5.40% 6/1/06 Aa 2,595,000 2,682,581
Florida Mid-Bay Bridge Auth. Rev. Series A,
7.50% 10/1/17 - 2,500,000 2,759,375
5,441,956
GEORGIA - 2.2%
Cobb County School Dist. Unltd. Tax 5% 2/1/97 Aa1 3,300,000 3,337,125
Georgia Gen. Oblig. Series B, 7.50% 4/1/97 Aaa 2,350,000 2,461,625
Georgia Muni. Elec. Auth. Spl. Oblig. (Fifth
Crossover Series Proj. 1) 6.50% 1/1/17,
(MBIA Insured) Aaa 3,000,000 3,307,500
Rome-Floyd County Dev. Auth. Ind. Dev. Rev.
(Kroger Co. Proj.) 8% 12/1/09 - 3,500,000 3,801,875
12,908,125
IDAHO - 0.1%
Boise Urban Renewal Parking Agcy. Rev.
(Tax Increment) Series A, B, C,
8.125% 9/1/15 BBB 375,000 405,000
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (A) AMOUNT (NOTE 1)
ILLINOIS - 4.0%
Chicago O'Hare Int'l. Arpt. Rev. Rfdg.
(Gen. Arpt. 2nd Lien) Series A, 6.375%
1/1/15, (MBIA Insured) Aaa $ 1,400,000 $ 1,473,500
Chicago O'Hare Int'l. Arpt. Spl. Facs. Rev. Rfdg.
(American Airlines, Inc. Proj.)
8.20% 12/1/24 Baa2 1,000,000 1,172,500
Decatur Econ. Dev. Rev. Rfdg. (Kroger Co.)
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 (e) - 10,000,000 9,737,483
Illinois Edl. Facs. Auth. Rev.:
Rfdg. (Art Institute of Chicago) 5.75% 3/1/18 A1 3,500,000 3,434,375
(Lewis University):
5.90% 10/1/14 Baa 1,740,000 1,685,625
6% 10/1/24 Baa 2,575,000 2,478,438
Illinois Health Facs. Auth. Rev.:
(Covenant Retirement Commty.)
Series A, 7.60% 12/1/12 BBB+ 750,000 790,313
(Memorial Hosp.):
7.125% 5/1/10 BBB 1,000,000 1,001,250
7.25% 5/1/22 BBB 1,000,000 1,002,500
23,532,978
INDIANA - 1.4%
Fishers Econ. Dev. Rev. (1st Mtg. United Student
Funds, Inc.) 8.375% 9/1/14 - 1,750,000 1,839,688
Indianapolis Arpt. Auth. Spl. Facs. Rev.
(United Airlines, Inc. Proj.) Series A,
6.50% 11/15/31 (e) Baa2 4,500,000 4,449,375
Indianapolis Econ. Dev. Rev. Rfdg. & Impt.
(Nat'l. Benevolent Assoc.) 7.625% 10/1/22 Baa1 1,000,000 1,046,250
Wabash Econ. Dev. Rev. Rfdg. (Jesco Investment
Corp. Proj.) 6.625% 6/1/02 Ba2 965,000 1,012,044
8,347,357
IOWA - 0.6%
Woodbury County Health Sys. Rev. (St. Luke's
Health Sys. Northpark) Series A,
7.15% 12/1/22 - 3,320,000 3,299,250
KANSAS - 0.0%
Kansas City Single Family Mtg. Rev.
9.50% 8/1/06, (AMBAC Insured) Aaa 65,000 69,306
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (A) AMOUNT (NOTE 1)
KENTUCKY - 2.6%
Kenton County Arpt. Board Spl. Facs.
Arpt. Rev. (Delta Airlines, Inc. Proj. A):
7.80% 12/1/15 Ba3 $ 3,500,000 $ 3,740,625
7.125% 2/1/21 (e) Ba1 8,840,000 9,182,550
6.125% 2/1/22 (e) Ba1 1,750,000 1,675,625
Murray Ind. Dev. Rev. Rfdg. (Kroger Co.)
7.25% 9/1/12 Ba2 700,000 723,625
15,322,425
LOUISIANA - 1.2%
Calcasieu Parish Inc. Ind. Dev. Board Poll. Cont.
Rev. Rfdg. (Gulf States Util. Co. Proj.)
6.75% 10/1/12 Ba1 1,000,000 1,013,750
Louisiana Pub. Facs. Auth. Ind. Dev. Rev. Rfdg.
(Beverly Enterprises, Inc.) 8.25% 9/1/08 - 555,000 591,075
Port New Orleans Ind. Dev. Rev. Rfdg.
(Continental Grain Co. Proj.) 7.50% 7/1/13 BB- 3,000,000 3,086,250
St. Charles Parish Environmental Impt. Rev.
(Louisiana Pwr & Lt. Proj.) Series B,
5.95% 12/1/23 (e) Baa2 2,000,000 1,912,500
St. Tammany Pub. Trust Fing. Auth. Rev. Rfdg.
(Cap. Appreciation) Series C, 0% 7/20/14 Aaa 2,000,000 605,000
7,208,575
MARYLAND - 2.9%
Baltimore County Poll. Cont. Rev. Rfdg.
(Bethlehem Steel Proj. B) 7.50 6/1/15 - 3,750,000 3,909,375
Maryland Commty. Dev. Administration Dept.
Hsg. & Commty. Dev. (Multi-Family Hsg.)
Series A, 6.50% 5/15/21 (e) Aa 2,150,000 2,187,625
Maryland Energy Fing. Administration Ltd.
Oblig. Solid Waste Disp. Facs. Recycling Rev.
(Hagerstown Fiber Ltd. Partners)
9% 10/15/16 - 6,000,000 6,097,500
Maryland Health & Higher Edl. Facs. Auth. Rev.:
Rfdg.:
(Doctors Commty. Hosp.) 5.50% 7/1/24 Baa 2,700,000 2,247,750
(Howard County Gen. Hosp.) 5.50% 7/1/13 Baa1 300,000 274,875
(Good Samaritan Hosp.) 5.75% 7/1/13 A 2,680,000 2,643,150
17,360,275
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (A) AMOUNT (NOTE 1)
MASSACHUSETTS - 0.9%
Brockton Gen. Oblig.:
7.75% 12/15/96 Baa $ 300,000 $ 307,005
7.75% 12/15/98 Ba1 170,000 183,388
Massachusetts Ind. Fin. Agcy. Rev.:
Rfdg.:
(Atlanticare Med. Ctr.) Series A,
10.125% 11/1/14 - 700,000 644,000
(Emerson College) 8.90% 1/1/18 - 1,000,000 1,117,500
(Institute Dev. Disabilities) 9.25% 6/1/09 - 90,000 88,200
(Massachusetts Biomedical) (Cap. Appreciation)
Series A-2:
0% 8/1/08 A- 800,000 379,000
0% 8/1/10 A- 4,500,000 1,828,125
(New England Ctr. for Autism) 9.50% 11/1/15 - 300,000 330,375
(Reed's Landing Proj.) 8.625% 10/1/23 - 500,000 504,375
5,381,968
MICHIGAN - 8.6%
Detroit Hosp. Fin. Auth. Facs. Rev. (Michigan
Healthcare Corp. Proj.) 0% 12/1/20 (b) Caa 6,715,000 2,551,700
Flint Hosp. Bldg. Auth. Rev. (Hurley Med. Ctr.):
Rfdg. 9.50% 7/1/06 Baa 1,165,000 1,195,931
7.80% 7/1/14 Baa1 700,000 751,625
Highland Park Hosp. Fin. Auth. Hosp. Facs. Rev.
(Lakeside Commty. Hosp. Proj.) 0% 3/1/20 (b) - 150,000 49,500
Michigan Hosp. Fin. Auth. Rev. Rfdg.:
(Detroit-Macomb Hosp. Corp.) Series A:
7.30% 6/1/01 BB+ 1,750,000 1,750,000
7% 6/1/15 BB+ 6,450,000 6,071,063
(Pontiac Osteopathic Hosp.) 6% 2/1/24 Baa1 5,000,000 4,387,500
(Port Huron Hosp.) Series A, 7.625% 7/1/15 Baa 2,000,000 2,025,000
Michigan Strategic Fund Ltd. Oblig. Rev.:
(Great Lakes Pulp & Fibre Proj.) (e):
10.25% 12/1/16 - 3,000,000 3,146,250
10.25% 12/1/16 - 20,000,000 20,975,000
(Mercy Svcs. for Aging Proj.) 9.40% 5/15/20 - 600,000 654,750
(Michigan Health Care Corp. Proj.)
0% 12/1/14 (b) - 2,115,000 803,700
Wayne Charter County Spl. Arpt. Facs. Rev.
(Republic Airlines, Inc. Proj.) Series C,
10.375% 12/1/15 - 6,400,000 6,606,464
50,968,483
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (A) AMOUNT (NOTE 1)
MINNESOTA - 2.1%
Minnesota Hsg. Single Family Mtg. Rev.
6.40% 7/1/15 Aa $ 2,000,000 $ 2,047,500
St. Paul Hsg. & Redev. Auth. Hosp. Rev.
(Healtheast Proj.):
Series A:
6.625% 11/1/17 Baa 3,000,000 2,951,250
9.75% 11/1/17 Baa 390,000 428,513
Series B, 6.625% 11/1/17 Baa 7,000,000 6,886,250
12,313,513
MISSISSIPPI - 0.7%
Claiborne County Poll. Cont. Rev.:
Rfdg. (Sys. Energy Resources, Inc. Proj.)
7.30% 5/1/25 Ba1 2,250,000 2,351,250
(Middle South Energy, Inc. Proj.):
Series A, 9.50% 12/1/13 - 50,000 57,188
Series C, 9.875% 12/1/14 - 1,100,000 1,269,125
Mississippi Home Corp. Single Family Sr. Rev.
Rfdg. Series 1990 A, 9.25% 3/1/12,
(FGIC Insured) Aaa 260,000 282,750
3,960,313
MISSOURI - 0.7%
Kansas City Ind. Dev. Auth. (Kingswood United
Methodist Manor Proj.) Series 1993,
9% 11/15/13 - 2,000,000 2,157,500
St. Louis Reg'l. Convention & Sports Complex
Auth. Series C, 7.90% 8/15/21 - 1,550,000 1,648,813
3,806,313
NEVADA - 2.2%
Clark County Ind. Dev. Rev. (Southwest Gas
Corp.) Series A, 6.50% 12/1/33 (e) Baa 6,000,000 5,985,000
Clark County Passenger Facs. Charge Rev.
(Las Vegas/Macarran Int'l. Arpt. Proj.)
Series A, 5.75% 7/1/23, (MBIA Insured) (e) Aaa 4,500,000 4,353,750
Las Vegas Redev. Agcy. Tax Increment Rev.
(Sub. Lien Fremont St. Proj. A):
6% 6/15/10 BBB+ 1,500,000 1,464,375
6.10% 6/15/14 BBB+ 1,000,000 977,500
12,780,625
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (A) AMOUNT (NOTE 1)
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 $ 1,941,135
8% 3/1/01 - 750,000 772,500
9% 3/1/23 - 1,830,000 1,960,388
(Littleton Hosp. Assoc., Inc.) Series A,
9.50% 5/1/20 - 500,000 540,625
(Valley Reg'l. Hosp.) 7.35% 4/1/23 - 3,180,000 3,076,650
8,291,298
NEW JERSEY - 1.4%
Camden County Impt. Auth. Lease Rev.
(Dockside Refrigerated Holt) 8.40% 4/1/24 (e) - 3,000,000 3,041,250
New Jersey Econ. Dev. Auth. Econ. Dev. Rev.:
Rfdg.:
(Holt Hauling & Warehousing)
8.60% 12/15/17 (e) - 4,500,000 4,635,000
(Stolt Terminals Proj.) 10.50% 1/15/18 - 60,000 67,275
New Jersey Econ. Dev. Auth. 1st Mtg. Gross Rev.
(Franciscan Oaks Proj.) Series A,
8.50% 10/1/23 - 500,000 531,250
8,274,775
NEW MEXICO - 3.7%
Albuquerque Arpt. Rev. Rfdg. (e)(f):
6.75% 7/1/11, (AMBAC Insured) Aaa 1,805,000 1,967,450
6.70% 7/1/18, (AMBAC Insured) Aaa 3,970,000 4,074,213
Albuquerque Retirement Facs. Rev. Rfdg.
(La Vida Liena Proj.) Series A, 8.85% 2/1/23 - 2,000,000 2,095,000
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 5,362,688
Series A:
6.50% 9/1/04 Ba2 750,000 750,698
6% 3/1/08 Ba2 700,000 675,500
6.50% 9/1/09 Ba2 1,795,000 1,788,305
6.40% 8/15/23 Ba2 5,000,000 4,793,750
21,507,604
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (A) AMOUNT (NOTE 1)
NEW YORK - 9.7%
Metropolitan Transit Auth. Trans. Facs. (Cap.
Appreciation) Series 7, 0% 7/1/12 Baa1 $ 7,000,000 $ 2,581,250
New York City Ind. Dev. Agcy. Spl. Facs. Rev.
(Terminal One Group Assoc. Proj.)
6% 1/1/19 (e) A 5,000,000 4,881,250
New York State Dorm. Auth. Rev. Series A:
Rfdg.:
(State Univ. Edl. Facs.):
5.50% 5/15/13 Baa1 14,035,000 13,368,338
5.25% 5/15/15 Baa1 2,750,000 2,519,688
(State Univ. of NY) 5.875% 5/15/17 Baa1 3,565,000 3,547,175
(Consolidated City Univ. Sys.) 5.75% 7/1/13 Baa1 3,170,000 3,094,713
New York State Energy Research & Dev. Auth.
Elec. Facs. Rev. (Long Island Lighting)
Series A (e):
7.15% 12/1/20 Ba1 1,500,000 1,524,375
6.90% 8/1/22 Ba1 1,550,000 1,550,000
New York State Local Gov't. Assistance Corp.:
Rfdg. Series C, 5.50% 4/1/17 A 7,500,000 7,284,375
Series A, 6% 4/1/16 A 5,875,000 5,904,375
New York State Med. Care Facs. Fing.
Agcy. Rev. (Mortgage Proj.) Series E,
6.20% 2/15/15, (FHA Insured) Aa 3,000,000 3,071,250
New York State Tollway Auth. Gen. Rev. (Cap.
Appreciation) (Spl. Oblig.) Series A,
0% 1/1/04 BBB 4,000,000 2,590,000
New York State Urban Dev. Corp. Rev. Rfdg.
(Correctional Cap. Facs.) Series A:
6.30% 1/1/03 Baa1 2,000,000 2,125,000
6.40% 1/1/04 Baa1 2,000,000 2,132,500
Suffolk County Wtr. Auth. 6% 6/1/17,
(MBIA Insured) Aaa 1,000,000 1,047,500
57,221,789
NORTH CAROLINA - 0.8%
North Carolina Eastern Muni. Pwr. Agcy. #1
Catawba Elec. Rev. Rfdg. 5.75% 1/1/02 A 1,750,000 1,793,750
North Carolina Eastern Muni. Pwr. Agcy. Pwr.
Sys. Rev. Rfdg.:
Series B, 7.25% 1/1/07 A 1,000,000 1,100,000
Series C, 5.125% 1/1/03 A 2,000,000 1,960,000
4,853,750
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (A) AMOUNT (NOTE 1)
OHIO - 4.3%
Butler County Hosp. Facs. Rev. 7.50% 1/1/10 Baa $ 3,500,000 $ 3,640,000
Fairfield Econ. Dev. Rev. Rfdg. (Beverly
Enterprises Proj.) 8.50% 1/1/03 - 1,000,000 1,073,750
Gateway Econ. Dev. Corp. Rev. (Greater Cleveland
Stadium) Series 1990, 6.50% 9/15/14 (e) - 3,000,000 2,940,000
Hamilton County Swr. Sys. Rev. Rfdg. & Impt.
(Metropolitan Swr. Dist. Proj.) Series A,
5% 12/1/14, (FGIC Insured) Aaa 3,000,000 2,786,250
Mahoning Valley San. Dist. Wtr. Rev.:
7.75% 5/15/14 - 2,000,000 2,120,000
7.75% 5/15/19 - 2,000,000 2,105,000
Ohio Econ. Dev. Rev. Rfdg. (Kroger Co. Proj.)
Series 1992, 7.50% 9/1/10 Ba2 470,000 493,500
Ohio Solid Waste Rev. (Republic Engineered
Steels Proj.) 8.25% 10/1/14 (e) - 7,000,000 7,201,250
Ohio Wtr. Dev. Auth. Poll. Cont. Facs. Rev.
(Wtr. Cont. Ln. Fund)5.625% 6/1/06,
(MBIA Insured) Aaa 2,000,000 2,097,500
Summit County Ind. Dev. Rev. Rfdg. (Surnow
Assoc. Proj.) 7.65% 10/1/06 Ba3 870,000 949,388
25,406,638
OKLAHOMA - 0.7%
Tulsa Muni. Arpt. Trust Rev. 7.35% 12/1/11 Baa2 4,000,000 4,290,000
PENNSYLVANIA - 9.1%
Allegheny County Hosp. Dev. Auth. Health
Facs. Rev. (Allegheny Valley School):
8% 2/1/02 Ba1 570,000 593,513
8.50% 2/1/15 Ba1 2,930,000 3,087,488
Allegheny County Ind. Dev. Auth. Rev. (YMCA
Pittsburgh Proj.) Series 1990, 8.75% 3/1/10 - 380,000 411,825
Butler County Ind. Dev. Auth. Health Ctr. Rev.
Rfdg. (Sherwood Oaks Proj.) 5.75% 6/1/11 A- 3,000,000 2,846,250
Cumberland County Muni. Auth. Rev. (Carlisle
Hosp.):
6.80% 11/15/14 Baa 3,250,000 3,189,063
6.80% 11/15/23 Baa 1,000,000 967,500
Delaware County Auth. Rev. (1st Mtg.) (Riddle
Village Proj.):
Series 1992, 8.75% 6/1/10 - 2,870,000 3,131,888
7% 6/1/00 - 1,000,000 1,012,500
8.25% 6/1/22 - 1,250,000 1,331,250
9.25% 6/1/22 - 1,700,000 1,891,250
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (A) AMOUNT (NOTE 1)
PENNSYLVANIA - CONTINUED
Montgomery County Higher Ed. & Health Auth.
Hosp. Rev. (United Hosp., Inc. Proj.):
(St. Christopher):
8.25% 11/1/03 Ba1 $ 1,250,000 $ 1,306,250
7% 11/1/06 Ba1 120,000 120,300
8.50% 11/1/17 Ba1 525,000 547,969
Series A:
8% 11/1/95 Ba1 100,000 100,000
8% 11/1/96 Ba1 65,000 66,061
10% 11/1/05 Ba1 25,000 25,469
Series B:
8% 11/1/95 Ba1 50,000 50,000
8.10% 11/1/97 Ba1 35,000 36,094
Northampton County Ind. Dev. Auth. Rev. Rfdg.
(Bethlehem Steel Poll. Cont. Proj.) Series 1994
7.55% 6/1/17 - 1,940,000 2,010,325
Pennsylvania Econ. Dev. Fing. Auth. Resource
Recovery Rev. (Sr. Northhampton Generating)
Series A, 6.60% 1/1/19 (e) - 6,000,000 5,880,000
Pennsylvania Ind. Dev. Auth. Rev. Econ. Dev. Rev.:
(Long Term Care, Maplewood) 8% 1/1/24 - 3,000,000 3,123,750
5.80% 7/1/09, (AMBAC Insured) Aaa 1,345,000 1,402,163
Philadelphia Hosp. & Higher Ed. Facs. Auth.
Rev. (Graduate Health System) Series A:
6.25% 7/1/13 Baa1 7,000,000 6,790,000
6.25% 7/1/18 Baa1 5,180,000 4,966,325
Philadelphia Muni. Auth. Rev. Lease Rfdg.
Series D, 6.30% 7/15/17 Baa 2,230,000 2,224,425
Philadelphia Wtr. & Wastewtr. Rev. 5.50%
6/15/12, (FGIC Insured) Aaa 4,000,000 3,945,000
Somerset County Hosp. Auth. Rev.
(Health Care 1st Mtg-gtd.) 8.50% 6/1/24 - 2,500,000 2,531,250
53,587,908
PUERTO RICO - 0.7%
Puerto Rico Telephone Auth. Rev. 2.62% 1/1/04,
(AMBAC Insured) INFL (d) Aaa 4,000,000 3,900,000
RHODE ISLAND - 1.0%
Rhode Island Auth. & Econ. Dev. Corp. Arpt.
Rev. Series A, 7% 7/1/14, (FSA Insured) (e) Aaa 4,000,000 4,550,000
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 1,577,813
6,127,813
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (A) AMOUNT (NOTE 1)
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 $ 704,438
Dyer County Ind. Dev. Board. Ind. Dev. Rev.
Rfdg. (Tennessee Assoc. Proj.) 6% 2/1/07 Ba2 1,715,000 1,657,119
East Ridge Ind. Dev. Board Rev. Rfdg.
(Kroger Co. Proj.) 5.75% 9/1/00 Ba2 2,100,000 2,107,875
Rutherford County Ind. Dev. Board Dev. Rev.
Rfdg. (Kroger Co. Proj.) 7.30% 6/1/21 Ba2 1,000,000 1,023,750
Springfield Ind. Dev. Board Ind. Dev. Rev.
Rfdg. (Kroger Co. Proj.) 7.25% 5/1/11 Ba2 3,500,000 3,635,625
9,128,807
TEXAS - 2.7%
Dallas-Fort Worth Int'l. Arpt. Facs. Impt. Corp.
Rev. (AMR Corp.) 7.50% 11/1/25 (e) Baa2 6,000,000 6,360,000
East Texas Health Facs. Dev. Corp. Hosp. Rev.
(Palestine) 7.80% 8/15/18 - 3,000,000 2,647,500
Harris County Cultural & Ed. Facs. Fin. Corp.
Rev. (Space Ctr. Houston Proj.) (b):
9% 8/15/00 - 700,000 175,000
9.25% 8/15/15 - 5,900,000 1,475,000
Houston Elderly Hsg. Auth. 1st Lien Rev. (Low
Income Elderly Hsg.) 7.50% 7/1/17 - 450,000 461,250
Houston Hsg. Fin. Corp. Single Family Mtg.
Rev. (Verex Mtg. Assurance, Inc.) Series 1984 A,
10.875% 2/15/16 A 180,000 182,700
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 2,340,000
Tomball Hosp. Auth. Rev. Rfdg. 6.125% 7/1/23 (e) Baa 2,200,000 1,980,000
15,621,450
UTAH - 0.0%
South Salt Lake City Ind. Rev. (Price Savers
Wholesale Club Proj.) 9% 11/15/13 - 250,000 284,375
VIRGINIA - 2.9%
Charlottesville Ind. Dev. Auth. Ind. Dev. Rev.
Rfdg. (Kroger Co. Proj.) 7.25% 5/1/10 Ba2 3,250,000 3,375,938
Hopewell Ind. Dev. Auth. Resources Recovery
Rev. (Stone Container Corp.) 8.25% 6/1/16 - 3,735,000 4,099,163
Loudoun County Ind. Dev. Auth. Residential Care
Facs. Rev. (Falcons Landing Proj.) Series A:
9.25% 11/1/04 - 1,000,000 1,053,750
8.75% 11/1/24 - 8,500,000 8,670,000
17,198,851
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (A) AMOUNT (NOTE 1)
WASHINGTON - 3.5%
Clark County Pub. Util. Dist. (Multi Purp. Proj.
No. 1) 6% 1/1/08, (FGIC Insured) Aaa $ 1,700,000 $ 1,808,375
Washington Pub. Pwr. Supply Sys. Rev.:
(Nuclear Proj. #1) 5.40% 7/1/12 Aa 2,800,000 2,625,000
(Nuclear Proj. #2) 5.40% 7/1/12 Aa 14,000,000 12,862,500
(Nuclear Proj. #3 5.40% 7/1/12 Aa 4,000,000 3,640,000
20,935,875
WEST VIRGINIA - 1.2%
Kanawha County Ind. Dev. Rev. Rfdg.
(Topvalco, Inc. Proj.) 7.125% 11/1/12 Ba2 4,500,000 4,623,750
Ripley Ind. Dev. Rev. Rfdg. (Kroger Co. Proj.)
7.30% 5/1/11 Ba2 2,200,000 2,293,500
6,917,250
TOTAL MUNICIPAL BONDS
(Cost $543,000,851) 545,176,864
MUNICIPAL NOTES (C) - 7.6%
CALIFORNIA - 0.5%
Los Angeles County Trans. Commission Sales
Tax Rev. Rfdg. Series 1992 A, 3.20%,
BPA Industrial Bank of Japan
Ltd. (FGIC Insured) VRDN VMIG 1 2,800,000 2,800,000
CONNECTICUT - 0.9%
Connecticut State Dev. Auth. Poll. Cont. Rev. Rfdg.
(Connecticut Lt. & Pwr. Co. Proj.) Series A,
4.10%, LOC Deutsche Bank, VRDN VMIG 1 2,000,000 2,000,000
Connecticut Spl. Assessment Unemployment
Compensation Rev. Series 1993B, 3.65%,
LOC Industrial Bank of Japan, Mitsubishi
Bank Ltd. Japan, VRDN VMIG 1 3,100,000 3,100,000
5,100,000
GEORGIA - 0.3%
Hapeville Dev. Auth. Ind. Dev. Rev. (Hapeville
Hotel Proj.) 4.15%, LOC Swiss Bank, VRDN P-1 2,000,000 2,000,000
ILLINOIS - 0.2%
Illinois Dev. Fin. Auth. Multi-Family Hsg. Rev. Rfdg.
(Garden Glen Apts.) Series 1993,
3.95%, VRDN A-1+ 1,200,000 1,200,000
MUNICIPAL NOTES (C) - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (A) AMOUNT (NOTE 1)
INDIANA - 1.7%
Indiana Hosp. Equip. Fing. Auth. Rev.
Series 1985 A, 4.50%, BPA Bank
of New York (MBIA Insured) VRDN VMIG 1 $ 10,100,000 $ 10,100,000
MASSACHUSETTS - 0.8%
Commonwealth of Massachusetts Gen. Oblig.
BAN 1995 Series A, 4.25% 6/12/96 MIG 1 5,000,000 5,015,800
MINNESOTA - 0.6%
Duluth Tax Increment Rev. (Lake Superior Paper
Co.) Series 1985, 4.05%, LOC Nat'l. Australia
Bank, VRDN VMIG 1 2,400,000 2,400,000
Minneapolis Hsg. Dev. Rev. Rfdg. (One Ten
Grant Proj.) Series 1989, 3.70%, LOC
First Bank NA, VRDN VMIG 1 1,000,000 1,000,000
3,400,000
NEW YORK - 0.8%
New York City Muni. Wtr. Fin. Auth.
Wtr. & Swr. Rev. VRDN:
Series G, 3.80% (FGIC Insured) VMIG 1 1,500,000 1,500,000
Series 1993-C, 3.90% (FGIC Insured) VMIG 1 1,100,000 1,100,000
New York State Energy & Research Dev. Auth.
Poll. Cont. Rev. (Niagra Mohawk Pwr.)
Series 1987 A, 4.15%, LOC Toronto
Dominion Bank, VRDN - 2,300,000 2,300,000
4,900,000
NORTH CAROLINA - 0.4%
Wake County Ind. Facs. & Poll. Cont. Fing.
Auth. Rev. (Carolina Pwr. & Lt. Co.) Series B,
4.75%, LOC Sumitimo Bank Ltd., VRDN A-1 2,200,000 2,200,000
OHIO - 0.0%
Ohio State Univ. Rev. (Gen. Receipts)
Series 1986 B, 4.40%, BPA Fuji Bank, VRDN VMIG 1 100,000 100,000
SOUTH CAROLINA - 0.5%
South Carolina Jobs Econ. Dev. Auth. Rev.
(St. Francis Hosp. Sys. Proj.) 4%,
LOC Chemical Bank, VRDN VMIG 1 2,900,000 2,900,000
WISCONSIN - 0.9%
Wisconsin Gen. Oblig. TRAN 4.50% 6/17/96 MIG 1 5,000,000 5,024,500
TOTAL MUNICIPAL NOTES
(Cost $44,740,300) 44,740,300
TOTAL INVESTMENTS - 100%
(Cost $587,741,151) $ 589,917,164
SECURITY TYPE ABBREVIATIONS
BAN - Bond Anticipation Notes
TRAN - Tax and Revenue Anticipation
Notes
VRDN - Variable Rate Demand Notes
LEGEND
(1.) Standard & Poor's credit ratings are used in the absence of a rating
by Moody's Investors Service, Inc.
(2.) Non-income producing - issuer filed for protection under the Federal
Bankruptcy Code or is in default of interest payment.
(3.) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(4.) 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.
(5.) Private activity obligations whose interest is subject to the federal
alternative minimum tax for individuals.
(6.) Security purchased on a delayed delivery basis (see Note 2 of Notes to
Financial Statements).
OTHER INFORMATION
The composition of long-term debt holdings as a percentage of total value
of investment in securities, is as follows (ratings are unaudited):
MOODY'S RATINGS S&P RATINGS
Aaa, Aa, A 21.8% AAA, AA, A 23.8%
Baa 22.8% BBB 20.6%
Ba 11.1% BB 10.9%
B 0.0% B 0.0%
Caa 0.9% CCC 0.0%
Ca, C 0.0% CC, C 0.0%
D 0.4%
The percentage not rated by either S&P or Moody's amounted to 28.0%. FMR
has determined that unrated debt securities that are lower quality account
for 25.4% 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 27.6%
Industrial Development 22.2
Electric Revenue 10.2
Others (individually less than 10%) 40.0
TOTAL 100.0%
INCOME TAX INFORMATION
At October 31, 1995, the aggregate cost of investment securities for income
tax purposes was $587,741,151. Net unrealized appre- ciation aggregated
$2,176,013, of which $19,718,406 related to appreciated invest- ment
securities and $17,542,393 related to depreciated investment securities.
At October 31, 1995, the fund had a capital loss carryforward of
approximately $10,683,000 of which $3,173,000 and $7,510,000 will expire on
October 31, 2002 and 2003, respectively.
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
OCTOBER 31, 1995

ASSETS

Investment in securities, at value (cost $587,741,151) - $ 589,917,164
See accompanying schedule

Cash 326,825

Receivable for investments sold 9,326,973

Interest receivable 12,073,391

Prepaid expenses 15,919

TOTAL ASSETS 611,660,272

LIABILITIES

Payable for investments purchased $ 6,601,202
Regular delivery

Delayed delivery 5,846,081

Distributions payable 1,018,381

Accrued management fee 189,953

Distribution fees payable 143,500

Other payables and accrued expenses 180,668

TOTAL LIABILITIES 13,979,785

NET ASSETS $ 597,680,487

Net Assets consist of:

Paid in capital $ 607,721,661

Accumulated undistributed net realized gain (loss) on (12,217,187)
investments

Net unrealized appreciation (depreciation) on 2,176,013
investments

NET ASSETS $ 597,680,487

CALCULATION OF MAXIMUM OFFERING PRICE $11.88
CLASS A:
NET ASSET VALUE and redemption price per share
($565,130,988 (divided by) 47,576,602 shares)

Maximum offering price per share (100/95.25 of $11.88) $12.47

CLASS B: $11.86
NET ASSET VALUE and offering price per share
($32,395,487 (divided by) 2,732,373 shares) A

INSTITUTIONAL CLASS: $11.88
NET ASSET VALUE, offering price and redemption price per

share ($154,012 (divided by) 12,960 shares)

</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>
YEAR ENDED OCTOBER 31, 1995

INTEREST INCOME $ 39,601,326

EXPENSES

Management fee $ 2,289,466

Transfer agent fees 1,011,284
Class A

Class B 42,001

Institutional Class 335

Distribution fees 1,366,177
Class A

Class B 217,395

Accounting fees and expenses 229,551

Non-interested trustees' compensation 6,028

Custodian fees and expenses 19,369

Registration fees 44,493
Class A

Class B 47,648

Institutional Class 13,741

Audit 38,153

Legal 26,175

Reports to shareholders 50,855

Miscellaneous 4,344

Total expenses before reductions 5,407,015

Expense reductions (37,440) 5,369,575

NET INTEREST INCOME 34,231,751

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

Investment securities (5,323,341)

Futures contracts (2,903,244) (8,226,585)

Change in net unrealized appreciation (depreciation) on:

Investment securities 40,027,062

Futures contracts 3,579 40,030,641

NET GAIN (LOSS) 31,804,056

NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ 66,035,807
FROM OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31,
1995 1994

INCREASE (DECREASE) IN NET ASSETS

Operations $ 34,231,751 $ 31,847,461
Net interest income

Net realized gain (loss) (8,226,585) (3,054,925)

Change in net unrealized appreciation (depreciation) 40,030,641 (64,524,052)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 66,035,807 (35,731,516)
FROM OPERATIONS

Distributions to shareholders (33,101,699) (31,785,094)
From net interest income
Class A

Class B (1,127,659) (63,973)

Institutional Class (2,393) -

From net realized gain Class A - (2,464,636)

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

TOTAL DISTRIBUTIONS (34,231,751) (34,664,098)

Share transactions - net increase (decrease) 11,485,606 127,211,465

TOTAL INCREASE (DECREASE) IN NET ASSETS 43,289,662 56,815,851

NET ASSETS

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

End of period $ 597,680,487 $ 554,390,825

</TABLE>

FINANCIAL HIGHLIGHTS - CLASS A

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
YEARS ENDED OCTOBER 31,

1995 1994 C 1993 1992 1991

SELECTED PER-SHARE DATA

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

Income from Investment
Operations

Net interest income .700 .689 .710 .774 .803

Net realized and unrealized .660 (1.430) 1.100 .250 .660
gain (loss)

Total from investment 1.360 (.741) 1.810 1.024 1.463
operations

Less Distributions

From net interest income (.700) (.689) (.710) (.774) (.803)

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

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

Total distributions (.700) (.759) (.740) (.784) (.923)

Net asset value, end of $ 11.880 $ 11.220 $ 12.720 $ 11.650 $ 11.410
period

TOTAL RETURN A, B 12.50% (6.03)% 15.95% 9.21% 14.02%

RATIOS AND SUPPLEMENTAL
DATA

Net assets, end of period $ 565,131 $ 544,422 $ 497,575 $ 156,659 $ 67,135
(000 omitted)

Ratio of expenses to average .91% .89% .92% .90% .90%
net assets D D

Ratio of net interest income to 6.06% 5.78% 5.59% 6.59% 7.08%
average net assets

Portfolio turnover 37% 38% 27% 13% 10%

</TABLE>

A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN (SEE NOTE 5 OF NOTES TO FINANCIAL
STATEMENTS).
B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE.
C EFFECTIVE NOVEMBER 1, 1993, THE FUND ADOPTED STATEMENT OF POSITION 93-2,
"DETERMINATION, DISCLOSURE, AND FINANCIAL STATEMENT PRESENTATION OF INCOME,
CAPITAL GAIN, AND RETURN OF CAPITAL DISTRIBUTIONS BY INVESTMENT COMPANIES."
AS A RESULT, NET INTEREST INCOME PER SHARE MAY REFLECT CERTAIN
RECLASSIFICATIONS RELATED TO BOOK TO TAX DIFFERENCES.
D FMR VOLUNTARILY AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES
DURING THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO
WOULD HAVE BEEN HIGHER.
FINANCIAL HIGHLIGHTS - CLASS B

<TABLE>
<CAPTION>
<S> <C> <C>
YEARS ENDED OCTOBER 31,

1995 1994 E

SELECTED PER-SHARE DATA

Net asset value, beginning of period $ 11.210 $ 11.610

Income from Investment Operations

Net interest income .612 .188

Net realized and unrealized gain (loss) .650 (.400)

Total from investment operations 1.262 (.212)

Less Distributions

From net interest income (.612) (.188)

Net asset value, end of period $ 11.860 $ 11.210

TOTAL RETURN B, C 11.57% (1.86)%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 32,395 $ 9,968

Ratio of expenses to average net assets 1.86% 2.09%
D A

Ratio of net interest income to average net assets 5.18% 4.58%
A

Portfolio turnover 37% 38%

</TABLE>

A ANNUALIZED
B TOTAL RETURNS DO NOT INCLUDE THE CONTINGENT DEFERRED SALES CHARGE AND FOR
PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN (SEE NOTE 5 OF NOTES TO FINANCIAL
STATEMENTS).
D FMR VOLUNTARILY AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES
DURING THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO
WOULD HAVE BEEN HIGHER.
E FOR THE PERIOD JUNE 30, 1994 (COMMENCEMENT OF SALE OF CLASS B SHARES) TO
OCTOBER 31, 1994.
FINANCIAL HIGHLIGHTS - INSTITUTIONAL CLASS
YEAR ENDED
OCTOBER 31,
1995 E

SELECTED PER-SHARE DATA

Net asset value, beginning of period $ 11.700

Income from Investment Operations

Net interest income .232

Net realized and unrealized gain (loss) .180

Total from investment operations .412

Less Distributions

From net interest income (.232)

Net asset value, end of period $ 11.880

TOTAL RETURN B, C 3.55%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 154

Ratio of expenses to average net assets .75%
A, D

Ratio of net interest income to average net assets 5.89% A

Portfolio turnover 37%

A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIOD SHOWN (SEE NOTE 5 OF NOTES TO FINANCIAL
STATEMENTS).
D FMR VOLUNTARILY AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES
DURING THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO
WOULD HAVE BEEN HIGHER.
E FOR THE PERIOD JULY 3, 1995 (COMMENCEMENT OF SALE OF INSTITUTIONAL CLASS
SHARES) TO OCTOBER 31, 1995.
NOTES TO FINANCIAL STATEMENTS
For the period ended October 31, 1995

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, Class B, and Institutional Class shares, each of
which has equal rights as to assets and voting privileges. Each class has
exclusive voting rights with respect to its distribution plan. The fund
commenced sale of Institutional Class shares on July 3, 1995. Investment
income, realized and unrealized capital gains and losses, and the common
expenses of the fund are allocated on a pro rata basis to each class based
on the relative net assets of each class to the total net assets of the
fund. Each class of shares differs in its respective distribution, transfer
agent, registration, and certain other class-specific fees and expenses.
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 substantially all of its taxable income for
its fiscal year. The schedule of investments includes information regarding
income taxes under the caption "Income Tax Information."
INTEREST INCOME. Interest income, which includes amortization of premium
and accretion of original issue discount, is accrued as earned.
EXPENSES. Most expenses of the trust can be directly attributed to a fund.
Expenses which cannot be directly attributed are apportioned between the
funds in the trust.
PREPAID EXPENSES. FMR bears all organizational expenses except for
registering and qualifying each class and shares of each class for
distribution under federal and state securities law, which are borne by
each class and amortized over one year.
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.
1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
DISTRIBUTIONS TO SHAREHOLDERS - CONTINUED
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.
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 undistributed net realized gain
(loss) on investments may include temporary book and tax basis differences
which will reverse in a subsequent period. Any taxable 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.
DELAYED DELIVERY TRANSACTIONS. The fund may purchase or sell securities on
a when-issued or forward commitment basis. Payment and delivery may take
place a month or more after the date of the transaction. The price of the
underlying securities and the date when the securities will
be delivered and paid for are fixed at the time the transaction is
negotiated. The market value of the securities purchased or sold on a
when-issued or forward commitment basis are identified as such in the
fund's schedule of investments. The fund may receive compensation for
interest forgone in the purchase of a delayed delivery security.
Losses may arise due to changes in the market value of the underlying
securities or if the counterparty does not perform under the contract.
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. 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 $203,572,607 and $224,351,804, respectively.
The market value of futures contracts opened and closed during the period
amounted to $314,742,738 and $322,559,590, 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 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 annual rate of .40% 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"), Class B shares ("Class B Plan")
and Institutional Class shares (collectively referred to as "the Plans").
Under the Class A Plan and Class B Plan 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 $1,366,177 and $217,395
under the Class A Plan and Class B Plan, respectively, of which $1,358,027
and $54,382 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.
Under the Plans, FMR or FDC may use its resources to pay administrative and
promotional expenses related to the sale of the fund's Class A, Class B,
and Institutional Class 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 $2,247,388 on sales of Class A shares of the fund, of which
$1,894,260 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
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES -
CONTINUED
SALES LOAD - CONTINUED
of the redeemed shares, excluding any reinvested dividends and capital
gains. For the period, FDC received contingent deferred sales charges of
$39,695 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, Class B and
Institutional shares. UMB has entered into sub-arrangements with State
Street Bank and Trust Company (State Street) with respect to the Class A
shares, and Fidelity Investments Institutional Operations Company (FIIOC),
an affiliate of FMR, with respect to the Class B and Institutional shares
to perform the transfer, dividend disbursing, and shareholder servicing
agent functions. 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.
5. EXPENSE REDUCTIONS.
Effective July 1, 1995, FMR voluntarily agreed to reimburse operating
expenses (excluding interest, taxes, brokerage commissions and
extraordinary expenses) above an annual rate of average net assets of
1.00%, 1.75% and .75% for Class A, Class B and Institutional Class,
respectively. For the period, the reimbursement reduced expenses by $23,461
and $13,979 for Class B and Institutional Class, respectively.
6. SHARE TRANSACTIONS.
Share transactions for each class of shares were as follows:
SHARES DOLLARS
YEAR ENDED OCTOBER 31, YEAR ENDED OCTOBER 31,
1995 A 1994 B 1995 A 1994 B
CLASS A
Shares sold 12,273,037 22,999,310 $ 140,517,484 $ 279,994,055
Reinvestment of distributions 1,809,737 1,766,115 20,850,961 21,077,604
Shares redeemed (15,035,639) (15,352,447) (171,150,553) (184,125,024)
Net increase (decrease) (952,865) 9,412,978 $ (9,782,108) $ 116,946,635
CLASS B
Shares sold 2,043,527 892,941 $ 23,449,301 $ 10,311,726
Reinvestment of distributions 61,101 3,497 707,595 39,828
Shares redeemed (261,235) (7,458) (3,041,172) (86,724)
Net increase (decrease) 1,843,393 888,980 $ 21,115,724 $ 10,264,830
INSTITUTIONAL CLASS
Shares sold 12,792 - $ 150,012 $ -
Reinvestment of distributions 168 - 1,978 -
Shares redeemed - - - -
Net increase (decrease) 12,960 - $ 151,990 $ -
A SHARE TRANSACTIONS FOR THE INSTITUTIONAL CLASS ARE FOR THE PERIOD JULY 3,
1995 (COMMENCEMENT OF SALE OF SHARES) TO OCTOBER 31, 1995.
B SHARE TRANSACTIONS FOR CLASS B ARE FOR THE PERIOD JUNE 30, 1994
(COMMENCEMENT OF SALE OF SHARES) TO OCTOBER 31, 1994.
REPORT OF INDEPENDENT ACCOUNTANTS

To the Trustees of Fidelity Advisor Series V and the Shareholders of
Fidelity Advisor High Income
Municipal Fund:
We have audited the accompanying statement of assets and liabilities of
Fidelity Advisor Series V: Fidelity Advisor High Income Municipal Fund,
including the schedule of portfolio investments, as of October 31, 1995,
and the related statement of operations for the year then ended, the
statement of changes in net assets for each of the two years in the period
then ended and the financial highlights for each of the five years in the
period then ended (Class A), for the year ended October 31, 1995, and for
the period June 30, 1994 (commencement of sale of Class B shares) to
October 31, 1994 (Class B) and for the period July 3, 1995 (commencement of
sale of Institutional Class shares) to October 31, 1995 (Institutional
Class). These financial statements and financial highlights are the
responsibility of the fund's management. Our responsibility is to express
an opinion on these financial statements and financial highlights based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of October 31, 1995 by correspondence with the
custodian and brokers. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position
of Fidelity Advisor Series V: Fidelity Advisor High Income Municipal Fund
as of October 31, 1995, the results of its operations for the year then
ended, the changes in its net assets for each of the two years in the
period then ended, and the financial highlights for each of the five years
in the period then ended (Class A), for the year ended October 31, 1995 and
for the period June 30, 1994 (commencement of sale of Class B shares) to
October 31, 1994 (Class B) and for the period July 3, 1995 (commencement of
sale of Institutional Class shares) to October 31, 1995 (Institutional
Class), in conformity with generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
December 11, 1995

INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Fred L. Henning, Jr., Vice President
Robert A. Lawrence, Vice President
Arthur S. Loring, Secretary
Kenneth A. Rathgeber, 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
STATE TAX-EXEMPT FUNDS
Fidelity Advisor New York Tax-Free 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 - INSTITUTIONAL CLASS
ANNUAL REPORT
OCTOBER 31, 1995
CONTENTS

PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.

PERFORMANCE 4 How the fund has done over time.

FUND TALK 7 The manager's review of fund
performance, strategy and outlook.

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

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

FINANCIAL STATEMENTS 27 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.

NOTES 33 Notes to the financial statements.

REPORT OF INDEPENDENT 38 The auditors' opinion.
ACCOUNTANTS

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. A fund's total return
includes changes in a fund's share price, plus reinvestment of any
dividends (or income) and capital gains (the profits the fund earns when it
sells securities that have grown in value). You can also look at income to
measure performance. Initial offering of Institutional Class shares took
place on July 3, 1995. Institutional Class shares are sold to eligible
investors without a sales load or 12b-1 fee. Returns prior to July 3, 1995
are those of Class A, the original class of the fund, and reflect Class A's
0.25% 12b-1 fee. If Fidelity had not reimbursed certain class expenses, the
past one year, past five years and life of fund total returns and dividends
would have been lower.
CUMULATIVE TOTAL RETURNS
<TABLE>
<CAPTION>
<S> <C> <C> <C>
PERIODS ENDED OCTOBER 31, 1995 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

Advisor High Income Municipal - Institutional Class 12.59% 52.76% 112.40%

Lehman Brothers Municipal Bond Index 14.84% 52.34% n/a

Average High-Yield Municipal Bond Fund 12.72% 47.90% n/a

Consumer Price Index 2.81% 15.13% 33.65%
</TABLE>
CUMULATIVE TOTAL RETURNS show Institutional Class' performance in
percentage terms over a set period - in this case, 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 Institutional
Class' returns to those of the Lehman Brothers Municipal Bond Index - a
broad gauge of the municipal bond market. To measure how Institutional
Class' performance stacked up against its peers, you can compare it to the
average high-yield municipal bond fund, which reflects the performance of
36 high-yield municipal bond funds with similar objectives tracked by
Lipper Analytical Services over the past 12 months. These benchmarks
include reinvested dividends and capital gains, if any. Comparing
Institutional Class' 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 OCTOBER 31, 1995 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

Advisor High Income Municipal - Institutional 12.59% 8.84% 9.71%
Class

Lehman Brothers Municipal Bond Index 14.84% 8.78% n/a

Average High Yield Municipal Bond Fund 12.72% 8.12% n/a

Consumer Price Index 2.81% 2.86% 3.65%

AVERAGE ANNUAL TOTAL RETURNS take Institutional Class' actual (or
cumulative) return and show you what would have happened if Institutional
Class shares had performed at a constant rate each year.
$10,000 OVER LIFE OF FUND
FA High Inc Muni(220) LB Muni Bond Index
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 10247.96 10818.96
02/29/88 10361.62 10933.31
03/31/88 10241.48 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 10767.20 11297.86
10/31/88 10914.32 11497.27
11/30/88 10926.11 11391.96
12/31/88 11051.07 11508.50
01/31/89 11190.23 11746.49
02/28/89 11201.45 11612.46
03/31/89 11287.65 11584.71
04/30/89 11545.60 11859.73
05/31/89 11734.23 12106.06
06/30/89 11868.63 12270.46
07/31/89 11972.74 12437.46
08/31/89 12065.36 12315.70
09/30/89 12101.74 12279.00
10/31/89 12229.51 12429.17
11/30/89 12380.07 12646.68
12/31/89 12497.76 12750.13
01/31/90 12517.48 12689.82
02/28/90 12607.19 12803.39
03/31/90 12686.29 12807.23
04/30/90 12570.25 12714.51
05/31/90 12827.85 12992.07
06/30/90 12978.99 13106.27
07/31/90 13179.18 13299.59
08/31/90 13090.25 13106.48
09/30/90 13183.33 13113.95
10/31/90 13364.33 13351.83
11/30/90 13695.93 13620.34
12/31/90 13783.31 13679.59
01/31/91 13943.72 13863.17
02/28/91 14050.93 13983.78
03/31/91 14133.54 13988.81
04/30/91 14363.67 14175.56
05/31/91 14541.22 14301.58
06/30/91 14575.06 14287.42
07/31/91 14763.53 14461.44
08/31/91 14896.85 14651.90
09/30/91 15071.58 14842.67
10/31/91 15238.59 14976.25
11/30/91 15295.92 15018.04
12/31/91 15462.27 15340.32
01/31/92 15633.67 15375.30
02/29/92 15718.61 15380.22
03/31/92 15797.47 15385.91
04/30/92 15940.04 15522.85
05/31/92 16083.03 15705.55
06/30/92 16303.56 15969.09
07/31/92 16871.26 16447.84
08/31/92 16740.62 16287.48
09/30/92 16845.09 16394.00
10/31/92 16641.80 16232.84
11/30/92 16975.34 16523.57
12/31/92 17180.00 16692.28
01/31/93 17470.60 16886.41
02/28/93 18087.50 17497.19
03/31/93 17898.84 17312.25
04/30/93 18088.65 17486.93
05/31/93 18238.45 17585.20
06/30/93 18530.86 17878.70
07/31/93 18544.63 17902.12
08/31/93 19022.25 18274.84
09/30/93 19285.67 18482.99
10/31/93 19296.01 18518.67
11/30/93 19107.43 18355.52
12/31/93 19548.65 18743.00
01/31/94 19776.29 18957.05
02/28/94 19253.60 18466.06
03/31/94 18227.32 17714.12
04/30/94 18348.26 17864.34
05/31/94 18456.77 18019.22
06/30/94 18388.81 17909.12
07/31/94 18720.52 18237.40
08/31/94 18749.93 18300.50
09/30/94 18456.21 18031.85
10/31/94 18132.68 17711.60
11/30/94 17549.71 17391.38
12/31/94 17975.05 17774.16
01/31/95 18582.30 18282.15
02/28/95 19082.97 18813.79
03/31/95 19183.31 19029.96
04/30/95 19246.37 19052.42
05/31/95 19862.27 19660.38
06/30/95 19706.46 19488.35
07/31/95 19770.66 19673.10
08/31/95 19970.67 19922.56
09/30/95 20131.71 20048.66
10/31/95 20399.70 20340.17

$10,000 OVER LIFE OF FUND: Let's say you invested $10,000 in Fidelity
Advisor High Income Municipal Fund - Institutional Class on September 30,
1987, shortly after the fund started. As the chart shows, by October 31,
1995, the value of your investment would have grown to $21,434 - a 114.34%
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 $20,340 - a 103.40%
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>
YEARS ENDED OCTOBER 31,

1995 1994 1993 1992 1991

Dividend return 6.71% 5.27% 6.49% 7.01% 7.89%

Capital appreciation return 5.88% -11.30% 9.46% 2.20% 6.13%

Total return 12.59% -6.03% 15.95% 9.21% 14.02%

</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, if any.
DIVIDENDS AND YIELD
PERIODS ENDED OCTOBER 31, 1995 PAST LIFE
MONTH OF CLASS

Dividends per share 5.92(cents) 23.15(cents)

Annualized dividend rate 5.88% 5.99%

30-day annualized yield n/a -

30-day annualized tax-equivalent yield n/a -

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 $11.85
over the past month, and $11.75 over the life of Class, you can compare the
class' income over these two 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 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 36% federal
tax bracket, but does not reflect payment of the federal alternative
minimum tax, if applicable.
FUND TALK: THE MANAGER'S OVERVIEW

MARKET RECAP
In sharp contrast to much of 1994,
the municipal bond market posted
positive returns for the 12 months
ended October 31, 1995. For the
period, the Lehman Brothers
Municipal Bond Index - a broad
measure of the tax-free market -
had a total return of 14.84%. By
comparison, the Lehman Brothers
Aggregate Bond Index - a proxy
of investment-grade taxable
bonds - had a total return of
15.65%. While the bankruptcy of
Orange County, California, in
December 1994 caused some
concern among investors, tax-free
bonds managed to surge ahead of
their taxable counterparts in the
first quarter of 1995 on signs of a
slowing economy and tamer
inflation expectations. By spring,
however, the muni bond market
began to underperform U.S.
Treasury securities when
Congress began consideration of
tax-code changes, some of which
threatened the tax-exempt status
of municipal securities. This threat
of radical tax reform dampened
enthusiasm in the municipal bond
market, helping shorter maturity
bonds to outperform longer bonds
throughout the spring and
summer months. In early fall,
historically attractive valuations
relative to Treasuries, weakening
new issuance and stronger
demand from insurance
companies and retail buyers
helped tax-free bonds rebound.
An interview with Tanya Roy,
Portfolio Manager of Fidelity Advisor High Income Municipal Fund
Q. HOW DID THE FUND PERFORM, TANYA?
A. For the year ended October 31, 1995, the fund's Institutional Class of
shares returned 12.59%. For the same period, the average high- yield
municipal bond fund returned 12.72%, according to Lipper Analytical
Services. The Lehman Brothers Municipal Bond Index returned 14.84% for the
period. Unlike the index, the fund has approximately 37% of its
investments in non-investment grade municipal bonds. As a rule,
investment-grade bonds have more price sensitivity to interest rate changes
and thus will outperform high-yield bonds in a rally like we've seen this
year.
Q. MUNICIPAL BONDS HAVE PERFORMED WELL THIS YEAR COMPARED TO 1994. WHAT
WERE SOME OF THE MAJOR FACTORS THAT SHAPED THE PERFORMANCE OF THE MUNICIPAL
BOND MARKET?
A. Municipal bonds surged ahead in the first quarter of 1995 and continued
to appreciate throughout the year. This paralleled the upward price
movement in Treasury bonds as investors grew increasingly optimistic about
the prospects for low inflation and moderate economic growth. The
performance of munis also has been aided by a 17% drop in new issuance from
last year's levels. I think, however, the major factor in the market this
year has been the discussion of federal tax reform and the prospect of a
flat tax. Many of the radical tax reform proposals in Washington threaten
to eliminate the tax-free advantage of municipal bonds. The effect of such
debate has impacted the demand side of the equation. The muni yield curve
steepened last spring and early summer as buyers, both retail investors and
insurance companies, sought bonds with maturities inside 15 years. Demand
in the market also was held back by flat to negative cash flows into mutual
funds, a major buyer of municipal bonds.
Q. WHERE DO HIGH-INCOME MUNICIPAL BONDS FIT INTO THIS PICTURE?
A. In general, most high-income munis fall into the longer maturities on
the yield curve and, as I said before, the longer end tended to
underperform the shorter end of the curve. High-yield muni bonds do,
however, generate attractive income to compensate for their additional
risk. Although price-performance has overshadowed income this year, when
you look at the total return components of bonds over time, the income
component makes up the majority of the return of the bond.
Q. HEALTH CARE BONDS ENCOMPASS APPROXIMATELY 28% OF THE PORTFOLIO. WHAT
HAPPENED IN THAT AREA THIS YEAR?
A. Two-thirds of the fund's health care exposure consists of hospital
bonds. The sector has lagged this year relative to other municipal sectors.
In general, like the tax-reform talk, Medicare and Medicaid reform
proposals in Washington have tainted the industry.
Q. WHAT'S YOUR OPINION ON THE STATUS OF THE TAX-FREE HEALTH CARE MARKET?
HAVE YOU BEEN ABLE TO FIND ANY APPEALING ISSUERS IN THIS SECTOR?
A. Keep in mind that this kind of uncertainty presents investment
opportunities. I think it's necessary to look at hospital issuers on a
case-by-case basis. Over time, market valuations of individual issuers will
sort themselves out and good credits should be recognized by the market.
With the help of Fidelity's strong research staff, I believe I've
identified solid health-care names such as Rocky Mountain Adventist in
Colorado. In general, I look for hospitals and other health care facilities
with low costs, market leadership and forward-thinking management.
Q. HOW HAS THE FUND'S POSITION IN AIRLINE BONDS DONE?
A. Very well. Municipal bonds backed by fees paid by major airlines to
airports have been a top performing sector of the high-yield muni market. A
number of airline bonds are not investment grade, but they trade as if they
were. In other words, many airline bonds are trading at yields much higher
than their credit rating would suggest. This is the case with the fund's
major airline holding, Delta Airlines. The fund's Delta holdings are in
Kenton County, Kentucky - the Cincinnati/Northern Kentucky Airport - and at
Chicago's O'Hare Airport.
Q. WHAT ABOUT THE FUND'S HOLDINGS IN ELECTRIC UTILITIES?
A. The fund owns bonds issued by both municipal utilities and
investor-owned utilities. Approximately 10% of the fund's investments are
in this sector. Like health care, the electric utility industry is
experiencing substantial change because of deregulation and mergers. In the
near term, I believe the changes in this sector will impact investor-owned
utilities more than municipal utilities. This is because, in general,
municipal utilities already operate on a more cost effective basis in part
due to their ability to issue tax-exempt debt. As always, our investment
approach to this sector is driven by good fundamental credit research.
Q. WERE THERE ANY DISAPPOINTMENTS?
A. When I started managing the fund in August, it had an underweighting in
general obligation bonds issued by New York City. Because city bonds have
performed well, their underweighting hurt the fund somewhat. I've begun to
build up the fund's position in these bonds to where it will be about equal
in weighting to the fund's benchmark.
Q. DID YOU MAKE ANY STRUCTURAL CHANGES TO THE FUND?
A. Yes. Most of the changes were to the investment-grade portion of the
fund. Within this area, I've focused on improving the fund's convexity.
Like duration, convexity measures the sensitivity of a bond to interest
rate changes. Generally the more convexity a bond has, the slower its price
will fall and the faster it should rise when interest rates change. One way
I've improved convexity is buying non-callable bonds. Additionally, I
focused on the 15- to 20-year part of the yield curve in order to take
advantage of the attractiveness of that part of the curve. Put another way,
the yield pick-up here is especially attractive given normal historical
yield curve relationships.
Q. WHAT'S YOUR OUTLOOK, TANYA?
A. The muni market may exhibit some volatility in the near term as we head
into the next election year. Political debate on tax reform will
predominate. A major question facing the financial markets now is what will
emerge from the budget negotiations in Washington. Given how much the bond
market has rallied this year, I don't think investors should expect to see
the same degree of price performance enjoyed over the last year. Returns
should be generated more from income than price appreciation.

TOP FIVE STATES AS OF OCTOBER 31, 1995
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE STATES
6 MONTHS AGO

New York 10.5 10.4

Pennsylvania 9.1 12.0

Michigan 8.6 10.9

California 6.8 7.2

Connecticut 5.3 4.2

TOP FIVE SECTORS AS OF OCTOBER 31, 1995
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE SECTORS
6 MONTHS AGO

Health Care 27.6 30.9

Industrial Development 22.2 20.9

Electric Revenue 10.2 8.7

Transportation 7.9 4.6

Lease Revenue 7.2 8.2

AVERAGE YEARS TO MATURITY AS OF OCTOBER 31, 1995
6 MONTHS AGO

Years 18.4 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 OCTOBER 31, 1995
6 MONTHS AGO

Years 7.7 7.8

Showing Percentage of Total Value of Investments in Securities

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
OCTOBER 31, 1995

ASSETS

Investment in securities, at value (cost $587,741,151) - $ 589,917,164
See accompanying schedule

Cash 326,825

Receivable for investments sold 9,326,973

Interest receivable 12,073,391

Prepaid expenses 15,919

TOTAL ASSETS 611,660,272

LIABILITIES

Payable for investments purchased $ 6,601,202
Regular delivery

Delayed delivery 5,846,081

Distributions payable 1,018,381

Accrued management fee 189,953

Distribution fees payable 143,500

Other payables and accrued expenses 180,668

TOTAL LIABILITIES 13,979,785

NET ASSETS $ 597,680,487

Net Assets consist of:

Paid in capital $ 607,721,661

Accumulated undistributed net realized gain (loss) on (12,217,187)
investments

Net unrealized appreciation (depreciation) on 2,176,013
investments

NET ASSETS $ 597,680,487

CALCULATION OF MAXIMUM OFFERING PRICE $11.88
CLASS A:
NET ASSET VALUE and redemption price per share
($565,130,988 (divided by) 47,576,602 shares)

Maximum offering price per share (100/95.25 of $11.88) $12.47

CLASS B: $11.86
NET ASSET VALUE and offering price per share
($32,395,487 (divided by) 2,732,373 shares) A

INSTITUTIONAL CLASS: $11.88
NET ASSET VALUE, offering price and redemption price per

share ($154,012 (divided by) 12,960 shares)

</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>
YEAR ENDED OCTOBER 31, 1995

INTEREST INCOME $ 39,601,326

EXPENSES

Management fee $ 2,289,466

Transfer agent fees 1,011,284
Class A

Class B 42,001

Institutional Class 335

Distribution fees 1,366,177
Class A

Class B 217,395

Accounting fees and expenses 229,551

Non-interested trustees' compensation 6,028

Custodian fees and expenses 19,369

Registration fees 44,493
Class A

Class B 47,648

Institutional Class 13,741

Audit 38,153

Legal 26,175

Reports to shareholders 50,855

Miscellaneous 4,344

Total expenses before reductions 5,407,015

Expense reductions (37,440) 5,369,575

NET INTEREST INCOME 34,231,751

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

Investment securities (5,323,341)

Futures contracts (2,903,244) (8,226,585)

Change in net unrealized appreciation (depreciation) on:

Investment securities 40,027,062

Futures contracts 3,579 40,030,641

NET GAIN (LOSS) 31,804,056

NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ 66,035,807
FROM OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31,
1995 1994

INCREASE (DECREASE) IN NET ASSETS

Operations $ 34,231,751 $ 31,847,461
Net interest income

Net realized gain (loss) (8,226,585) (3,054,925)

Change in net unrealized appreciation (depreciation) 40,030,641 (64,524,052)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 66,035,807 (35,731,516)
FROM OPERATIONS

Distributions to shareholders (33,101,699) (31,785,094)
From net interest income
Class A

Class B (1,127,659) (63,973)

Institutional Class (2,393) -

From net realized gain Class A - (2,464,636)

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

TOTAL DISTRIBUTIONS (34,231,751) (34,664,098)

Share transactions - net increase (decrease) 11,485,606 127,211,465

TOTAL INCREASE (DECREASE) IN NET ASSETS 43,289,662 56,815,851

NET ASSETS

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

End of period $ 597,680,487 $ 554,390,825

</TABLE>

FINANCIAL HIGHLIGHTS - CLASS A

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
YEARS ENDED OCTOBER 31,

1995 1994 C 1993 1992 1991

SELECTED PER-SHARE DATA

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

Income from Investment
Operations

Net interest income .700 .689 .710 .774 .803

Net realized and unrealized .660 (1.430) 1.100 .250 .660
gain (loss)

Total from investment 1.360 (.741) 1.810 1.024 1.463
operations

Less Distributions

From net interest income (.700) (.689) (.710) (.774) (.803)

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

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

Total distributions (.700) (.759) (.740) (.784) (.923)

Net asset value, end of $ 11.880 $ 11.220 $ 12.720 $ 11.650 $ 11.410
period

TOTAL RETURN A, B 12.50% (6.03)% 15.95% 9.21% 14.02%

RATIOS AND SUPPLEMENTAL
DATA

Net assets, end of period $ 565,131 $ 544,422 $ 497,575 $ 156,659 $ 67,135
(000 omitted)

Ratio of expenses to average .91% .89% .92% .90% .90%
net assets D D

Ratio of net interest income to 6.06% 5.78% 5.59% 6.59% 7.08%
average net assets

Portfolio turnover 37% 38% 27% 13% 10%

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C>
YEARS ENDED OCTOBER 31,

1995 1994 E

SELECTED PER-SHARE DATA

Net asset value, beginning of period $ 11.210 $ 11.610

Income from Investment Operations

Net interest income .612 .188

Net realized and unrealized gain (loss) .650 (.400)

Total from investment operations 1.262 (.212)

Less Distributions

From net interest income (.612) (.188)

Net asset value, end of period $ 11.860 $ 11.210

TOTAL RETURN B, C 11.57% (1.86)%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 32,395 $ 9,968

Ratio of expenses to average net assets 1.86% 2.09%
D A

Ratio of net interest income to average net assets 5.18% 4.58%
A

Portfolio turnover 37% 38%

</TABLE>

SELECTED PER-SHARE DATA

Net asset value, beginning of period $ 11.700

Income from Investment Operations

Net interest income .232

Net realized and unrealized gain (loss) .180

Total from investment operations .412

Less Distributions

From net interest income (.232)

Net asset value, end of period $ 11.880

TOTAL RETURN B, C 3.55%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 154

Ratio of expenses to average net assets .75%
A, D

Ratio of net interest income to average net assets 5.89% A

Portfolio turnover 37%

(REGISTERED TRADEMARK)

(2_FIDELITY_LOGOS)FIDELITY ADVISOR
(registered trademark)

GLOBAL RESOURCES
FUND - CLASS A AND CLASS B
ANNUAL REPORT
OCTOBER 31, 1995
CONTENTS

PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.

PERFORMANCE 4 How the fund has done over time.

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

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

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

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

NOTES 27 Notes to the financial statements.

REPORT OF INDEPENDENT 33 The auditors' opinion.
ACCOUNTANTS

DISTRIBUTIONS 34

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

Advisor Global Resources - Class A 11.40% 106.87% 201.95%

Advisor Global Resources - Class A 6.11% 97.05% 187.61%
(incl. max. 4.75% sales charge)

S&P 500(registered trademark) 26.44% 121.65% 203.28%

Average Natural Resources Fund -0.40% 35.77% n/a

CUMULATIVE TOTAL RETURNS show Class A's performance in percentage terms
over a set period - in this case, 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 Class A'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 Class A's performance stacked up against
its peers, you can compare it to the average natural resources fund, which
reflects the performance of 35 natural resources funds with similar
objectives tracked by Lipper Analytical Services over the past 12 months.
Both benchmarks include reinvested dividends and capital gains, if any, and
exclude the effects of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 1995 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

Advisor Global Resources - Class A 11.40% 15.65% 15.12%

Advisor Global Resources - Class A 6.11% 14.53% 14.41%
(incl. max. 4.75% sales charge)

S&P 500 26.44% 17.26% 15.19%

Average Natural Resources Fund -0.40% 6.01% n/a

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
FA Global Res Cl I (686) S&P 500
12/29/87 10000.00 10000.00
12/31/87 9980.00 10064.43
01/31/88 9880.00 10488.14
02/29/88 10630.00 10976.89
03/31/88 10920.00 10637.70
04/30/88 11100.00 10755.78
05/31/88 10920.00 10849.36
06/30/88 11640.00 11347.34
07/31/88 11590.00 11304.22
08/31/88 11280.00 10919.88
09/30/88 11230.00 11385.07
10/31/88 11470.00 11701.57
11/30/88 11210.00 11534.24
12/31/88 11586.91 11736.09
01/31/89 12523.44 12595.17
02/28/89 12338.32 12281.55
03/31/89 12577.89 12567.71
04/30/89 12969.93 13219.97
05/31/89 13274.85 13755.38
06/30/89 13231.29 13676.98
07/31/89 14189.61 14912.01
08/31/89 14614.32 15204.28
09/30/89 14222.28 15141.94
10/31/89 13721.34 14790.65
11/30/89 14331.18 15092.38
12/31/89 15426.57 15454.60
01/31/90 14453.51 14417.59
02/28/90 15129.90 14603.58
03/31/90 15414.70 14990.58
04/30/90 14607.77 14615.81
05/31/90 16091.10 16040.85
06/30/90 15889.36 15931.78
07/31/90 16672.56 15880.79
08/31/90 16233.50 14445.17
09/30/90 15723.23 13741.69
10/31/90 14595.91 13682.60
11/30/90 14833.24 14566.50
12/31/90 14611.74 14972.90
01/31/91 15093.85 15625.72
02/28/91 17269.54 16742.96
03/31/91 16861.60 17148.14
04/30/91 16948.13 17189.30
05/31/91 17764.01 17931.87
06/30/91 16737.98 17110.59
07/31/91 17294.26 17907.95
08/31/91 17739.29 18332.37
09/30/91 17047.02 18026.21
10/31/91 17442.60 18267.77
11/30/91 16033.35 17531.58
12/31/91 16725.88 19537.19
01/31/92 17764.58 19173.80
02/29/92 18164.09 19423.06
03/31/92 17711.32 19044.31
04/30/92 18363.84 19604.21
05/31/92 18856.56 19700.27
06/30/92 18243.99 19406.73
07/31/92 18976.41 20200.47
08/31/92 18696.76 19786.36
09/30/92 18883.19 20019.84
10/31/92 18483.69 20089.91
11/30/92 18723.39 20774.97
12/31/92 18956.24 21030.51
01/31/93 19563.91 21207.16
02/28/93 20112.29 21495.58
03/31/93 21446.19 21949.14
04/30/93 22602.24 21417.97
05/31/93 23713.83 21991.97
06/30/93 24039.89 22055.75
07/31/93 23713.83 21967.52
08/31/93 25077.37 22800.09
09/30/93 24943.98 22624.53
10/31/93 26070.39 23092.86
11/30/93 25092.19 22873.48
12/31/93 26148.04 23150.25
01/31/94 27737.91 23937.36
02/28/94 26873.51 23288.65
03/31/94 25221.90 22273.27
04/30/94 25638.66 22558.37
05/31/94 25978.24 22928.32
06/30/94 25515.17 22366.58
07/31/94 26379.57 23100.20
08/31/94 27660.73 24047.31
09/30/94 27521.81 23458.15
10/31/94 27105.05 23985.96
11/30/94 25329.95 23112.39
12/31/94 25552.05 23455.15
01/31/95 25050.10 24063.34
02/28/95 25787.33 25001.09
03/31/95 27230.42 25738.87
04/30/95 28344.11 26496.88
05/31/95 28736.25 27555.96
06/30/95 29551.91 28196.09
07/31/95 30806.76 29131.07
08/31/95 31293.02 29204.19
09/30/95 31528.31 30436.60
10/31/95 30226.39 30327.94

$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
October 31, 1995, the value of your investment would have grown to $28,761
- - a 187.61% 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 $30,328 - a 203.28% 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)
ADVISOR GLOBAL RESOURCES 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. A fund's total return
includes changes in a fund's share price, plus reinvestment of any
dividends (or income) and capital gains (the profits the fund earns when it
sells securities that have grown in value). Initial offering of Class B
shares took place on July 3, 1995. Class B shares bear a 1.00%
12b-1/shareholder service fee. This fee is not reflected in returns prior
to that date, and returns would have been lower had this fee been taken
into account. Prior date returns are those of Class A, the original class
of the fund, and reflect Class A's 0.65% 12b-1 fee. Had Class B's fee been
reflected, prior returns would have been lower. If Fidelity had not
reimbursed certain class expenses, the past 5 years and life of fund total
returns would have been lower. Class B's contingent deferred sales charges
included in the past 1 year, past 5 years and life of fund total return
figures are 4%, 1% and 0%, respectively.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 1995 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

Advisor Global Resources - Class B 11.28% 106.66% 201.64%

Advisor Global Resources - Class B 7.28% 105.66% 201.64%
(incl. contingent deferred sales charge)

S&P 500(registered trademark) 26.44% 121.65% 203.28%

Average Natural Resources Fund -0.40% 35.77% n/a

CUMULATIVE TOTAL RETURNS show Class B's performance in percentage terms
over a set period - in this case, 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 Class B'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 Class B's performance stacked up against
its peers, you can compare it to the average natural resources fund, which
reflects the performance of 35 natural resources funds with similar
objectives tracked by Lipper Analytical Services over the past 12 months.
Both benchmarks include reinvested dividends and capital gains, if any, and
exclude the effects of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 1995 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

Advisor Global Resources - Class B 11.28% 15.62% 15.11%

Advisor Global Resources - Class B 7.28% 15.51% 15.11%
(incl. contingent deferred sales charge)

S&P 500 26.44% 17.26% 15.19%

Average Natural Resources Fund -0.40% 6.01% n/a

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
FA Global Res- Cl B (656) S&P 500
12/29/87 10000.00 10000.00
12/31/87 9980.00 10064.43
01/31/88 9880.00 10488.14
02/29/88 10630.00 10976.89
03/31/88 10920.00 10637.70
04/30/88 11100.00 10755.78
05/31/88 10920.00 10849.36
06/30/88 11640.00 11347.34
07/31/88 11590.00 11304.22
08/31/88 11280.00 10919.88
09/30/88 11230.00 11385.07
10/31/88 11470.00 11701.57
11/30/88 11210.00 11534.24
12/31/88 11586.91 11736.09
01/31/89 12523.44 12595.17
02/28/89 12338.32 12281.55
03/31/89 12577.89 12567.71
04/30/89 12969.93 13219.97
05/31/89 13274.85 13755.38
06/30/89 13231.29 13676.98
07/31/89 14189.61 14912.01
08/31/89 14614.32 15204.28
09/30/89 14222.28 15141.94
10/31/89 13721.34 14790.65
11/30/89 14331.18 15092.38
12/31/89 15426.57 15454.60
01/31/90 14453.51 14417.59
02/28/90 15129.90 14603.58
03/31/90 15414.70 14990.58
04/30/90 14607.77 14615.81
05/31/90 16091.10 16040.85
06/30/90 15889.36 15931.78
07/31/90 16672.56 15880.79
08/31/90 16233.50 14445.17
09/30/90 15723.23 13741.69
10/31/90 14595.91 13682.60
11/30/90 14833.24 14566.50
12/31/90 14611.74 14972.90
01/31/91 15093.85 15625.72
02/28/91 17269.54 16742.96
03/31/91 16861.60 17148.14
04/30/91 16948.13 17189.30
05/31/91 17764.01 17931.87
06/30/91 16737.98 17110.59
07/31/91 17294.26 17907.95
08/31/91 17739.29 18332.37
09/30/91 17047.02 18026.21
10/31/91 17442.60 18267.77
11/30/91 16033.35 17531.58
12/31/91 16725.88 19537.19
01/31/92 17764.58 19173.80
02/29/92 18164.09 19423.06
03/31/92 17711.32 19044.31
04/30/92 18363.84 19604.21
05/31/92 18856.56 19700.27
06/30/92 18243.99 19406.73
07/31/92 18976.41 20200.47
08/31/92 18696.76 19786.36
09/30/92 18883.19 20019.84
10/31/92 18483.69 20089.91
11/30/92 18723.39 20774.97
12/31/92 18956.24 21030.51
01/31/93 19563.91 21207.16
02/28/93 20112.29 21495.58
03/31/93 21446.19 21949.14
04/30/93 22602.24 21417.97
05/31/93 23713.83 21991.97
06/30/93 24039.89 22055.75
07/31/93 23713.83 21967.52
08/31/93 25077.37 22800.09
09/30/93 24943.98 22624.53
10/31/93 26070.39 23092.86
11/30/93 25092.19 22873.48
12/31/93 26148.04 23150.25
01/31/94 27737.91 23937.36
02/28/94 26873.51 23288.65
03/31/94 25221.90 22273.27
04/30/94 25638.66 22558.37
05/31/94 25978.24 22928.32
06/30/94 25515.17 22366.58
07/31/94 26379.57 23100.20
08/31/94 27660.73 24047.31
09/30/94 27521.81 23458.15
10/31/94 27105.05 23985.96
11/30/94 25329.95 23112.39
12/31/94 25552.05 23455.15
01/31/95 25050.10 24063.34
02/28/95 25787.33 25001.09
03/31/95 27230.42 25738.87
04/30/95 28344.11 26496.88
05/31/95 28736.25 27555.96
06/30/95 29551.91 28196.09
07/31/95 30775.39 29131.07
08/31/95 31245.96 29204.19
09/30/95 31481.25 30436.60
10/31/95 30163.65 30327.94

$10,000 OVER LIFE OF FUND: Let's say you invested $10,000 in Fidelity
Advisor Global Resources Fund - Class B on December 29, 1987, when the fund
started. As the chart shows, by October 31, 1995, the value of your
investment would have grown to $30,164 - a 201.64% 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 $30,328 - a 203.28% 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

MARKET RECAP
Strong corporate earnings and a
favorable interest rate
environment helped the U.S.
stock market post robust returns
for the 12 months ended October
31, 1995. The Standard & Poor's
Composite Index of 500 Stocks
finished the 12-month period with
a total return of 26.44% - well
above its historical annual
average of roughly 12%. With
inflation posing little threat,
interest rates fell during the first
half of 1995. The Federal
Reserve Board cut the federal
funds rate - the rate banks
charge each other for overnight
loans - by 0.25% on July 6 to
5.75%. Large-capitalization
stocks led the rally. Technology
companies - whose goods and
services benefited from both
corporate and consumer demand
- - posted the strongest earnings
growth and stock price gains.
Lower interest rates and
continued merger and acquisition
activity helped financial stocks
perform especially well. In June,
the Dow Jones Industrial Average
closed above 4500 for the first
time. Returns from foreign
markets suffered as investors
brought capital back to the U.S.
The Morgan Stanley Emerging
Markets Free Index was down
19.43% for the 12 months ended
October 31. The Morgan Stanley
EAFE (Europe, Australasia, Far
East) Index was down 0.37% for
the year ended October 31.
European markets have fared
well through the first 10 months of
1995, while the Japanese market
has struggled through much of
the year.
An interview with Malcolm MacNaught, Portfolio Manager of Fidelity Advisor
Global Resources Fund
Q. MALCOLM, HOW HAS THE FUND PERFORMED?
A. Quite well. For the 12 months ended October 31, 1995, the fund's Class A
and Class B shares had total returns of 11.40% and 11.28%, respectively.
Those beat the average natural resources fund which had a total return of
- -0.40% for the same period, as tracked by Lipper Analytical Services.
Q. WHAT HELPED THE FUND PERFORM BETTER THAN THE AVERAGE?
A. Energy stocks - which made up 22.2% of the fund's investments at the end
of the period - were one key. During the past six months, oilfield service
companies were among the best performers in this sector. They benefited
from stronger day rates for the offshore drilling rigs and support vessels
as availability tightened. Companies such as Pride Petroleum, Reading &
Bates, Sonat Offshore Drilling and Atwood Oceanics were some of the fund's
best performers over the past six months.
Q. DID ALL ENERGY COMPANIES FARE AS WELL?
A. No, integrated oil companies with large petrochemical operations didn't
do as well. Investors were concerned that prices of commodity chemicals had
peaked, and that lower earnings lay ahead.
Q. WHAT OTHER FACTORS CONTRIBUTED TO PERFORMANCE?
A. Many basic industry stocks, which accounted for about 31.9% of the
portfolio at the end of the period, posted strong results in the first
half. Aluminum companies continue to show earnings growth as aluminum
prices remain strong and the supply and demand situation remains favorable
for producers. Fertilizer and agricultural chemicals companies including
Potash Corp. of Saskatchewan, the fund's largest holding, and Mississippi
Chemical and Arcadian Corp., benefited from strong sales. The latest U.S.
grain and soybean harvest shows below-normal levels of inventory carryover,
which should necessitate a strong planting season next year. This should
continue to help chemicals companies, particularly if you factor in food
crop realization in other parts of the world.
Q. WHAT STOCKS DIDN'T PERFORM AS WELL AS YOU HAD HOPED?
A. Steel companies, including Inland Steel, suffered from weak steel prices
and a sluggish construction environment.
Q. WHERE ARE YOU FINDING OPPORTUNITIES IN THE INDUSTRIAL MACHINERY AND
EQUIPMENT SECTOR?
A. Recently there haven't been many. I'm standing on the sidelines in
anticipation that they may become more realistically priced.
Q. DO YOU SEE MUCH OPPORTUNITY IN THE PRECIOUS METALS SECTOR?
A. I think it's unlikely that gold will break above $400 per ounce over the
next several months. So the only strategy that makes sense is to search for
the best companies with growing reserves, production and earnings.
Q. WHAT IS YOUR OUTLOOK FOR THE
NATURAL RESOURCES SECTOR IN 1996?
A. I believe that unless the Central Banks of the world go crazy printing
money, inflation is not going to be much of a concern over the near term.
So my investment emphasis will be to find companies that can benefit from
flat or declining material prices and those with real volume growth.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER,
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.

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 October 31, 1995,
more than $276 million
MANAGER: Malcolm
MacNaught, since December
1987; joined Fidelity in 1968
(checkmark)
MALCOLM MACNAUGHT ON HIS
STRATEGY:
"The fund has the flexibility to
invest some of its assets
outside the natural resources
sector when I feel market
conditions warrant, and at the
end of October, roughly 13%
of the fund was invested in
technology and health care
companies. Investors are
worried about a slowing
economy, and tended to sell
cyclical stocks to seek refuge in
defensive stocks such as
healthcare. What's more, many
of the fund's drug companies
continued to dazzle investors
with healthy earnings growth
resulting from a combination of
new drugs and cost cutting.
However, I recognize that
investors choose to invest in a
natural resource fund
primarily as a hedge against
inflation. So, over time I expect
the fund's portfolio makeup and
performance to reflect market
conditions among natural
resources stocks."
INVESTMENT CHANGES

TOP TEN STOCKS AS OF OCTOBER 31, 1995
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE STOCKS
6 MONTHS AGO

Potash Corp. of Saskatchewan 1.6 1.0

Exide Corp. 1.5 0.9

Burlington Northern Sante Fe 1.4 1.0
Corp.

Inco Ltd. 1.3 0.0

Johnson & Johnson 1.2 1.1

Intertape Polymer Group, Inc. 1.2 1.0

Scott Paper Co. 1.2 1.3

Merck & Co., Inc. 1.2 0.0

Great Lakes Chemical Corp. 1.1 1.2

Renaissance Energy Ltd. 1.1 0.6

TOP FIVE MARKET SECTORS AS OF OCTOBER 31, 1995
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE MARKET SECTORS
6 MONTHS AGO

Basic Industries 31.9 29.5

Energy 22.2 24.4

Industrial Machinery & Equipment 8.0 7.2

Health 7.6 7.8

Precious Metals 5.9 6.3

ASSET ALLOCATION
AS OF OCTOBER 31, 1995* AS OF APRIL 30, 1995**
Row: 1, Col: 1, Value: 6.1
Row: 1, Col: 2, Value: 93.90000000000001
Row: 1, Col: 1, Value: 6.8
Row: 1, Col: 2, Value: 93.2
Stocks 93.9%
Short-term
investments 6.1%
FOREIGN
INVESTMENTS 21.7%
Stocks 93.2%
Short-term
investments 6.8%
FOREIGN
INVESTMENTS 25.5%
*
**
INVESTMENTS OCTOBER 31, 1995

Showing Percentage of Total Value of Investment in Securities

COMMON STOCKS - 93.5%
SHARES VALUE (NOTE 1)
AEROSPACE & DEFENSE - 0.3%
DEFENSE ELECTRONICS - 0.3%
Tech-Sym Corp. (a) 25,000 $ 740,625
BASIC INDUSTRIES - 31.9%
CHEMICALS & PLASTICS - 15.1%
Agrium, Inc. 50,000 2,040,721
Applied Extrusion Technologies, Inc. (a) 50,000 768,750
Arcadian Corp. 90,000 1,856,250
Cambrex Corp. 21,200 808,250
Cytec Industries, Inc. (a) 25,000 1,368,750
du Pont (E.I.) de Nemours & Co. 10,000 623,750
Eastman Chemical Co. 30,000 1,785,000
Engelhard Corp. 111,250 2,767,344
FMC Corp. 22,000 1,575,750
First Mississippi Corp. 80,000 1,640,000
Fuller (H.B.) Co. 51,000 1,606,500
Great Lakes Chemical Corp. 46,000 3,087,750
Hanna (M.A.) Co. 60,800 1,558,000
IMC Fertilizer Group, Inc. 16,000 1,120,000
Intertape Polymer Group, Inc. 110,000 3,211,231
Mississippi Chemical Corp. 100,000 2,412,500
NL Industries, Inc. (a) 70,000 910,000
Potash Corp. of Saskatchewan 60,000 4,194,868
Rohm & Haas Co. 49,200 2,718,300
Schulman (A.), Inc. 85,400 1,601,250
Sybron Chemical Industry Corp. (a) 60,000 772,500
Union Carbide Corp. 60,000 2,272,500
40,699,964
IRON & STEEL - 4.3%
AK Steel Holding Corp. 36,900 1,143,900
Huntco, Inc. Class A 100,000 1,300,000
Inland Steel Industries, Inc. 70,000 1,636,250
LTV Corp. (a) 130,000 1,820,000
Nucor Corp. 35,000 1,684,375
Republic Engineered Steels, Inc. (a) 170,000 1,083,750
USX-U.S. Steel Group 100,000 2,987,500
11,655,775
METALS & MINING - 9.5%
Alcan Aluminium Ltd. 85,000 2,694,775
Alumax, Inc. (a) 60,000 1,770,000
Aluminum Co. of America 54,000 2,754,000
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
BASIC INDUSTRIES - CONTINUED
METALS & MINING - CONTINUED
Bre-X Minerals Ltd. (a) 80,000 $ 2,781,703
De Beers Consolidated Mines Ltd. ADR 65,000 1,787,500
Freeport McMoRan Copper Co. Class A 20,000 457,500
IMCO Recycling, Inc. 100,000 2,150,000
Inco Ltd. 100,000 3,439,941
Kaiser Aluminum Corp. (a) 100,000 1,125,000
Magma Copper Co. Class B (a) 115,000 1,926,250
Reynolds Metals Co. 50,000 2,518,750
Romarco Minerals, Inc. (a) 250,000 269,617
Stillwater Mining Co. (a) 126,800 2,139,750
25,814,786
PAPER & FOREST PRODUCTS - 3.0%
Asia Pacific Resources International Class A (a) 180,000 1,305,000
James River Corp. of Virginia 56,000 1,799,000
Mead Corp. 30,000 1,728,750
Scott Paper Co. 60,000 3,195,000
8,027,750
TOTAL BASIC INDUSTRIES 86,198,275
CONSTRUCTION & REAL ESTATE - 1.7%
BUILDING MATERIALS - 1.1%
Lafarge Corp. 92,138 1,612,415
Medusa Corp. 60,000 1,500,000
3,112,415
CONSTRUCTION - 0.6%
McDermott (J. Ray) SA 100,000 1,512,500
TOTAL CONSTRUCTION & REAL ESTATE 4,624,915
DURABLES - 3.7%
AUTOS, TIRES, & ACCESSORIES - 2.9%
Chrysler Corp. 50,900 2,627,713
General Motors Corp. 36,181 1,582,919
Lear Seating Corp. (a) 50,000 1,387,500
Magna International, Inc. Class A 50,000 2,175,530
7,773,662
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
DURABLES - CONTINUED
CONSUMER ELECTRONICS - 0.4%
Whirlpool Corp. 20,000 $ 1,060,000
TEXTILES & APPAREL - 0.4%
Shaw Industries, Inc. 85,000 1,083,750
TOTAL DURABLES 9,917,412
ENERGY - 21.8%
ENERGY SERVICES - 8.6%
Atwood Oceanics, Inc. (a) 60,000 1,192,500
BJ Services Co. (a) 60,200 1,414,700
ENSCO International, Inc. (a) 105,000 1,771,875
Energy Ventures, Inc. (a) 20,000 380,000
Falcon Drilling, Inc. (a) 100,000 1,037,500
Global Industries Ltd. (a) 40,000 1,050,000
Global Marine, Inc. (a) 200,000 1,300,000
Marine Drilling Companies, Inc. (a) 350,000 1,312,500
Nabors Industries, Inc. (a) 188,100 1,622,363
Pride Petroleum Services, Inc. (a) 240,000 2,100,000
Production Operators Corp. 18,000 540,000
Seitel, Inc. (a) 60,000 1,552,500
Serv-Tech, Inc. (a) 100,000 550,000
Smith International, Inc. (a) 85,000 1,360,000
Sonat Offshore Drilling, Inc. 60,000 1,905,000
Varco International, Inc. 83,500 761,938
Transocean Drilling AS (a) 154,100 2,351,538
Weatherford Enterra, Inc. (a) 45,000 1,085,625
23,288,039
OIL & GAS - 13.2%
Barrington Petroleum Ltd. (a) 219,800 482,268
Belden & Blake Corp. (a) 100,000 1,451,563
Blue Range Resource Corp. Class A (a) 116,600 802,194
British Petroleum PLC ADR 23,160 2,043,870
Cairn Energy USA, Inc. (a) 109,800 1,317,600
Chesapeake Energy Corp. (a) 72,000 2,106,000
Chieftain International, Inc. (a) 210,000 2,889,550
Coastal Corp. (The) 60,000 1,942,500
Coda Energy, Inc. (a) 94,600 709,500
Columbus Energy Corp. 59,100 332,438
Devon Energy Corp. 101,000 2,196,750
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
ENERGY - CONTINUED
OIL & GAS - CONTINUED
Forcenergy Gas Exploration, Inc. (a) 70,000 $ 682,500
Lomak Petroleum, Inc. (a) 90,000 697,500
Louisiana Land & Exploration Co. 70,000 2,476,250
Mitchell Energy & Development Corp. Class B 18,200 295,750
Newfield Exploration Co. (a) 45,000 1,327,500
Nuevo Energy Corp. (a) 44,000 973,500
Occidental Petroleum Corp. 125,000 2,687,500
Renaissance Energy Ltd. (a) 140,000 3,084,790
Rio Alto Exploration Ltd. (a) 214,200 629,297
Stone Energy Corp. (a) 85,000 966,875
Total SA sponsored ADR 80,000 2,470,000
Ulster Petroleums Ltd. (a) 220,000 777,241
Union Pacific Resources Group, Inc. (a) 25,000 568,750
Vintage Petroleum, Inc. 80,000 1,610,000
35,521,686
TOTAL ENERGY 58,809,725
FINANCE - 1.6%
BANKS - 0.8%
Barnett Banks, Inc. 12,000 663,000
Boatmen's Bancshares, Inc. 21,000 798,000
First Security Corp. 21,000 687,750
2,148,750
SECURITIES INDUSTRY - 0.8%
Pioneer Group, Inc. 86,700 2,275,875
TOTAL FINANCE 4,424,625
HEALTH - 7.6%
DRUGS & PHARMACEUTICALS - 6.1%
Allergan, Inc. 32,400 951,750
American Home Products Corp. 25,000 2,215,625
Amgen, Inc. 25,000 1,200,000
Bristol-Myers Squibb Co. 40,000 3,050,000
COR Therapeutics, Inc. (a) 80,000 830,000
Merck & Co., Inc. 55,000 3,162,500
Neurex Corp. (a) 55,000 261,250
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
HEALTH - CONTINUED
DRUGS & PHARMACEUTICALS - CONTINUED
North American Biologicals, Inc. (a) 130,000 $ 1,040,000
Schering-Plough Corp. 56,000 3,003,000
Sugen, Inc. (a) 70,000 691,250
16,405,375
MEDICAL EQUIPMENT & SUPPLIES - 1.2%
Johnson & Johnson 40,000 3,260,000
MEDICAL FACILITIES MANAGEMENT - 0.3%
Spectral Diagnostics, Inc. (a) 52,000 870,212
TOTAL HEALTH 20,535,587
INDUSTRIAL MACHINERY & EQUIPMENT - 8.0%
ELECTRICAL EQUIPMENT - 1.4%
California Microwave Corp. (a) 50,000 1,100,000
General Electric Co. 20,000 1,265,000
Sensormatic Electronics Corp. 60,000 1,282,500
3,647,500
INDUSTRIAL MACHINERY & EQUIPMENT - 1.6%
Exide Corp. 90,000 3,948,750
Flow International Corp. (a) 44,000 489,500
4,438,250
POLLUTION CONTROL - 5.0%
American Ecology Corp. 140,000 490,000
Browning-Ferris Industries, Inc. 83,200 2,423,200
Envirosource, Inc. (a) 200,000 525,000
Sanifill, Inc. (a) 75,000 2,362,500
TRC Companies, Inc. (a) 104,300 612,763
TETRA Technologies, Inc. (a) 100,000 1,325,000
United Waste Systems, Inc. (a) 70,000 2,765,000
Waste Management International PLC sponsored ADR (a) 115,000 1,164,375
Western Waste Industries, Inc. (a) 100,000 1,975,000
13,642,838
TOTAL INDUSTRIAL MACHINERY & EQUIPMENT 21,728,588
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
NONDURABLES - 1.6%
AGRICULTURE - 0.7%
Delta & Pine Land Co. 45,000 $ 1,743,750
TOBACCO - 0.9%
Philip Morris Companies, Inc. 30,000 2,535,000
TOTAL NONDURABLES 4,278,750
PRECIOUS METALS - 5.9%
Barrick Gold Corp. 120,000 2,789,141
Firstmiss Gold, Inc. (a) 106,276 1,912,968
Free State Consolidated Gold Mines Ltd. ADR 90,000 849,375
Golden Shamrock Mines, Ltd. (a) 1,000,000 509,497
Great Central Mines NL (a) 320,000 652,162
Hecla Mining Co. (a) 69,400 511,825
Kinross Gold Corp. (a) 300,000 2,231,313
Mentor Exploration & Development Co. Ltd. (a) 160,000 1,591,670
Newmont Mining Corp. 35,000 1,321,250
Sudbury Contact Mines Ltd. (a) 140,000 1,379,695
Unisel Gold Mines Ltd. 300,000 810,000
Vaal Reefs Exploration & Mining Co. Ltd. ADR 220,000 1,251,250
15,810,146
SERVICES - 0.4%
Western Atlas, Inc. (a) 25,000 1,096,875
TECHNOLOGY - 5.6%
COMMUNICATIONS EQUIPMENT - 1.1%
ADC Telecommunications, Inc. 900 34,414
DSC Communications Corp. (a) 25,000 925,000
Nokia Corp. AB sponsored ADR 20,000 1,115,000
Tellabs, Inc. (a) 24,000 816,000
2,890,414
COMPUTER SERVICES & SOFTWARE - 1.0%
DST Systems, Inc. 1,000 21,000
Cooper & Cheyan Technology 500 5,500
Novell, Inc. 102,000 1,683,000
Oracle Systems Corp. (a) 22,000 959,750
2,669,250
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
TECHNOLOGY - CONTINUED
COMPUTERS & OFFICE EQUIPMENT - 2.4%
ADAPTEC, Inc. (a) 20,000 $ 890,000
Digital Equipment Corp. (a) 27,400 1,483,025
International Business Machines Corp. 20,000 1,945,000
Xerox Corp. 17,000 2,205,750
6,523,775
ELECTRONICS - 1.1%
Intel Corp. 20,000 1,397,500
Kyocera Corp. ADR 10,000 1,655,000
3,052,500
TOTAL TECHNOLOGY 15,135,939
TRANSPORTATION - 1.8%
RAILROADS - 1.8%
Burlington Northern Sante Fe Corp. 46,000 3,858,250
CSX Corp. 5,700 477,375
Southern Pacific Rail Corp. (a) 20,640 459,240
TOTAL TRANSPORTATION 4,794,865
UTILITIES - 1.6%
CELLULAR - 0.7%
AirTouch Communications, Inc. (a) 40,000 1,140,000
Palmer Wireless, Inc. (a) 35,000 796,250
1,936,250
GAS - 0.7%
Enron Corp. 50,000 1,718,750
TELEPHONE SERVICES - 0.2%
AT&T Corp. 10,000 640,000
TOTAL UTILITIES 4,295,000
TOTAL COMMON STOCKS
(Cost $235,391,322) 252,391,327
PREFERRED STOCKS - 0.4%
SHARES VALUE (NOTE 1)
CONVERTIBLE PREFERRED STOCKS - 0.1%
ENERGY - 0.1%
ENERGY SERVICES - 0.1%
Reading & Bates Corp. $1.625 8,100 $ 281,475
NONCONVERTIBLE PREFERRED STOCKS - 0.3%
ENERGY - 0.3%
OIL & GAS - 0.3%
Gulf Canada Resources Ltd., Series 1, adj. rate 270,000 763,109
TOTAL PREFERRED STOCKS
(Cost $1,047,044) 1,044,584
REPURCHASE AGREEMENTS - 6.1%
MATURITY
AMOUNT
Investments in repurchase agreements
(U.S. Treasury obligations) in a joint
trading account at 5.88%, dated
10/31/95 due 11/1/95 $ 16,566,705 16,564,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $253,002,366) $ 269,999,911
LEGEND
(1.) Non-income producing
OTHER INFORMATION
Distribution of investments by country of issue, as a percentage of total
value of investment in securities, is as follows:
United States 78.3%
Canada 14.5
South Africa 1.7
United Kingdom 1.2
Others (individually less than 1%) 4.3
TOTAL 100.0%
INCOME TAX INFORMATION
At October 31, 1995, the aggregate cost of investment securities for income
tax purposes was $253,195,613. Net unrealized appreciation aggregated
$16,804,298, of which $31,146,556 related to appreciated investment
securities and $14,342,258 related to depreciated investment securities.
The fund hereby designates $273,000 as a capital gain dividend for the
purpose of the dividend paid deduction.
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
ASSETS OCTOBER 31, 1995

Investment in securities, at value (including repurchase $ 269,999,911
agreements of $16,564,000) (cost $253,002,366) -
See accompanying schedule

Cash 3

Receivable for investments sold 10,113,362

Receivable for fund shares sold 1,680,505

Dividends receivable 142,196

Prepaid expenses 27,006

TOTAL ASSETS 281,962,983

LIABILITIES

Payable for investments purchased $ 4,887,918

Payable for fund shares redeemed 417,619

Accrued management fee 125,565

Distribution fees payable 150,133

Other payables and accrued expenses 176,514

TOTAL LIABILITIES 5,757,749

NET ASSETS $ 276,205,234

Net Assets consist of:

Paid in capital $ 249,274,757

Accumulated net investment loss (408)

Accumulated undistributed net realized gain (loss) on 9,933,080
investments and foreign currency transactions

Net unrealized appreciation (depreciation) on 16,997,805
investments and assets and liabilities in foreign currencies

NET ASSETS $ 276,205,234

CALCULATION OF MAXIMUM OFFERING PRICE $19.25
CLASS A:
NET ASSET VALUE, and redemption price per share
($272,978,972 (divided by) 14,180,177 shares)

Maximum offering price per share (100/95.25 of $19.25) $20.21

CLASS B: $19.23
NET ASSET VALUE, offering price and redemption price per
share
($2,507,937 (divided by) 130,423 shares) A

INSTITUTIONAL CLASS: $19.27
NET ASSET VALUE, offering price and redemption price per
share
($718,325 (divided by) 37,270 shares)

</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>
INVESTMENT INCOME YEAR ENDED OCTOBER 31, 1995

Dividends $ 2,876,403

Interest 649,281

3,525,684

Less foreign taxes withheld (43,895)

TOTAL INCOME 3,481,789

EXPENSES

Management fee $ 1,730,945

Transfer agent fees 692,183
Class A

Class B 1,330

Institutional Class 431

Distribution fees 1,473,539
Class A

Class B 4,188

Accounting fees and expenses 136,434

Non-interested trustees' compensation 1,482

Custodian fees and expenses 53,346

Registration fees 73,863
Class A

Class B 12,338

Institutional Class 12,041

Audit 31,245

Legal 13,298

Interest 1,974

Reports to shareholders 26,188

Miscellaneous 1,525

Total expenses before reductions 4,266,350

Expense reductions (99,418) 4,166,932

NET INVESTMENT INCOME (LOSS) (685,143)

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

Investment securities 11,240,942

Foreign currency transactions (2,532) 11,238,410

Change in net unrealized appreciation (depreciation) on:

Investment securities 12,904,057

Assets and liabilities in foreign currencies 251 12,904,308

NET GAIN (LOSS) 24,142,718

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM $ 23,457,575
OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31,
1995 1994

INCREASE (DECREASE) IN NET ASSETS

Operations $ (685,143) $ (773,691)
Net investment income (loss)

Net realized gain (loss) 11,238,410 3,777,673

Change in net unrealized appreciation (depreciation) 12,904,308 1,218,553

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 23,457,575 4,222,535
FROM OPERATIONS

Distribution to shareholders (3,086,044) (1,895,685)
from net realized gain
Class A

Share transactions - net increase (decrease) 56,472,708 156,725,562

TOTAL INCREASE (DECREASE) IN NET ASSETS 76,844,239 159,052,412

NET ASSETS

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

End of period $ 276,205,234 $ 199,360,995

</TABLE>

FINANCIAL HIGHLIGHTS - CLASS A

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
YEARS ENDED OCTOBER 31,

1995 1994 E 1993 1992 1991

SELECTED PER-SHARE DATA

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

Income from Investment
Operations

Net investment (.05) D (.11) .22 (.10) (.15)
income (loss) D

Net realized and unrealized 2.00 .76 4.91 .79 2.45
gain (loss)

Total from investment 1.95 .65 5.13 .69 2.30
operations

Less Distributions

From net investment - - - - -
income

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

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

Net asset value, end of $ 19.25 $ 17.56 $ 17.59 $ 13.88 $ 14.11
period

TOTAL RETURN A, B 11.40% 3.97% 41.05% 5.97% 19.50%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period $ 272,979 $ 199,361 $ 40,309 $ 7,087 $ 5,940
(000 omitted)

Ratio of expenses to average 1.86% 2.10% 2.63% 3.27% 3.35%
net assets F C C

Ratio of expenses to average 1.84% 2.07% 2.62% 3.27% 3.35%
net assets after expense C C
reductions

Ratio of net investment (.30) (.67) (1.18) (1.22) (1.28)
income (loss) to average % % % % %
net assets

Portfolio turnover 161% 125% 208% 248% 256%

</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.
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 EFFECTIVE NOVEMBER 1, 1993, THE FUND ADOPTED STATEMENT OF POSITION 93-2,
"DETERMINATION, DISCLOSURE, AND FINANCIAL STATEMENT PRESENTATION OF INCOME,
CAPITAL GAIN, AND RETURN OF CAPITAL DISTRIBUTIONS BY INVESTMENT COMPANIES."
AS A RESULT, NET INVESTMENT INCOME PER SHARE MAY REFLECT CERTAIN
RECLASSIFICATIONS RELATED TO BOOK TO TAX DIFFERENCES.
F FMR VOLUNTARILY AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES
DURING THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO
WOULD HAVE BEEN HIGHER.
<TABLE>
<CAPTION>
<S> <C>
FINANCIAL HIGHLIGHTS - CLASS B
YEAR ENDED

OCTOBER 31,

1995 F

SELECTED PER-SHARE DATA

Net asset value, beginning of period $ 18.87

Income from Investment Operations

Net investment income (loss) (.03) D

Net realized and unrealized gain (loss) .39

Total from investment operations .36

Net asset value, end of period $ 19.23

TOTAL RETURN B, C 1.91%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 2,508

Ratio of expenses to average net assets 2.23%
A,E

Ratio of expenses to average net assets after expense reductions 2.21% A

Ratio of net investment income (loss) to average net assets (.67)%
A

Portfolio turnover 161%
</TABLE>
A ANNUALIZED
B THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIOD SHOWN (SEE NOTE 6 OF NOTES TO
FINANCIAL STATEMENTS).
C TOTAL RETURNS DO NOT INCLUDE THE CONTINGENT DEFERRED SALES CHARGE AND FOR
PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
D NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.
E FMR VOLUNTARILY AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES
DURING THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO
WOULD HAVE BEEN HIGHER.
F FOR THE PERIOD JULY 3, 1995 (COMMENCEMENT OF SALE OF CLASS B SHARES) TO
OCTOBER 31, 1995.
FINANCIAL HIGHLIGHTS - INSTITUTIONAL CLASS

<TABLE>
<CAPTION>
<S> <C>
YEAR ENDED
OCTOBER 31,

1995 F

SELECTED PER-SHARE DATA

Net asset value, beginning of period $ 18.87

Income from Investment Operations

Net investment income (loss) (.01) D

Net realized and unrealized gain (loss) .41

Total from investment operations .40

Net asset value, end of period $ 19.27

TOTAL RETURN B, C 2.12%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 718

Ratio of expenses to average net assets 1.68%
A,E

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

Ratio of net investment income (loss) to average net assets (.13)%
A

Portfolio turnover 161%

</TABLE>

A ANNUALIZED
B THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIOD SHOWN (SEE NOTE 6 OF NOTES TO
FINANCIAL STATEMENTS).
C TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
D NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.
E FMR VOLUNTARILY AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES
DURING THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO
WOULD HAVE BEEN HIGHER.
F FOR THE PERIOD JULY 3, 1995 (COMMENCEMENT OF SALE OF INSTITUTIONAL CLASS
SHARES) TO OCTOBER 31, 1995.
NOTES TO FINANCIAL STATEMENTS
For the period ended October 31, 1995

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 fund offers Class A, Class B, and Institutional Class shares, each of
which has equal rights as to assets and voting privileges. Each class has
exclusive voting rights with respect to its distribution plan. The fund
commenced sale of Class B and Institutional Class shares on July 3, 1995.
Investment income, realized and unrealized capital gains and losses, and
the common expenses of the fund are allocated on a pro rata basis to each
class based on the relative net assets of each class to the total net
assets of the fund. Each class of shares differs in its respective
distribution, transfer agent, registration, and certain other
class-specific fees and expenses.
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
1. SIGNIFICANT ACCOUNTING POLICIES- CONTINUED
INCOME TAXES - CONTINUED
not subject to income taxes to the extent that it distributes substantially
all of its taxable income for its fiscal year. The schedule of investments
includes information regarding income taxes under the caption "Income Tax
Information."
INVESTMENT INCOME. Dividend income is recorded on the ex-dividend date,
except certain dividends from foreign securities where the ex-dividend date
may have passed, are recorded as soon as the fund is informed of the
ex-dividend date. Interest income is accrued as earned. Investment income
is recorded net of foreign taxes withheld where recovery of such taxes is
uncertain.
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.
PREPAID EXPENSES. FMR bears all organizational expenses except for
registering and qualifying each class and shares of each class for
distribution under federal and state securities law, which are borne by
each class and amortized over one year.
DISTRIBUTIONS TO SHAREHOLDERS. Distributions are recorded on the
ex-dividend date. Income dividends are declared separately for each class,
while capital gain distributions are declared at the fund level and
allocated to each class on a pro rata basis based on the number of shares
held by each class on the ex-dividend date.
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences, which may result in distribution
reclassifications, are primarily due to differing treatments for foreign
currency transactions and 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 that will
reverse in a subsequent period. Any taxable income or gain remaining at
fiscal year end is distributed in the following year.
SECURITY TRANSACTIONS. Security transactions are accounted for as of trade
date. Gains and losses on securities sold are determined on the basis of
identified cost.
2. OPERATING POLICIES.
FORWARD FOREIGN CURRENCY CONTRACTS. The fund may use foreign currency
contracts to facilitate transactions in foreign securities and to manage
the fund's currency exposure. Contracts to buy generally are used to
acquire exposure to foreign currencies, while contracts to sell
2. OPERATING POLICIES- CONTINUED
FORWARD FOREIGN CURRENCY
CONTRACTS - CONTINUED
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 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 U.S. Treasury or Federal Agency Securities, the market
value of which is required to be at least equal to
the repurchase price. For term repurchase agreement transactions, the
underlying securities are marked-to-market daily and maintained at a value
at least equal to the repurchase price. FMR, the fund's investment adviser,
is responsible for determining that the value of the underlying securities
remains in accordance with the market value requirements stated above.
3. PURCHASES AND SALES OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $387,389,606 and $346,992,473, 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 annual rate of .76% of
average net assets.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
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"), Class B shares ("Class B Plan")
and Institutional Class shares (collectively referred to as "the Plans").
Under the Class A Plan and Class B Plan the fund pays Fidelity Distributors
Corporation (FDC), an affiliate of FMR, a distribution and service fee.
This fee is based on annual rates of .65% and 1.00% (of which .75%
represents a distribution fee and .25% represents a shareholder service
fee) of the average net assets of the Class A and Class B shares,
respectively. For the period, the fund paid FDC $1,473,539 and $4,188 under
the Class A Plan and Class B Plan, respectively, of which $1,133,430 and
$1,047 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.
Under the Plans, FMR or FDC may use its resources to pay administrative and
promotional expenses related to the sale of the fund's Class A, Class B,
and Institutional Class 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 $2,777,231 on sales of Class A shares of the fund, of which
$2,346,101 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 $247 on Class B share redemptions from the fund. When Class B
shares are sold, FDC pays commissions from its own resources to dealers
through which the sales are made.
TRANSFER AGENT FEES. State Street Bank and Trust Company (State Street) is
the transfer, dividend disbursing, and shareholder servicing agent for the
fund's Class A shares, while Fidelity Investments Institutional Operations
Company (FIIOC), an affiliate of FMR (collectively, with State Street,
referred to as the Transfer Agents) acts in that capacity for the fund's
Class B and Institutional Class shares. During the period November 1, 1994
to December 31, 1994,
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
TRANSFER AGENT FEES - CONTINUED
State Street received 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 Transfer Agents receive account fees and asset-based fees that
vary according to the account size and type of account of the shareholders
of the respective classes of the fund. With respect to the Class A shares,
State Street has delegated certain transfer, dividend paying, and
shareholder services to FIIOC for which FIIOC receives its allocable share
of all such fees. FIIOC pays for typesetting, printing and mailing of all
shareholder reports, except proxy statements.
ACCOUNTING AND SECURITY LENDING FEES. FSC maintains the funds' accounting
records and administers their security lending program. The security
lending fee is based on the number and duration of lending transactions.
The accounting 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 $243,517 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 period for
which loans were outstanding amounted to $3,679,000. The weighted average
interest rate was 6.4375%. Interest expense includes $1,974 paid under the
bank borrowing program.
6. EXPENSE REDUCTIONS.
Effective October 30, 1995, FMR voluntarily agreed to reimburse operating
expenses (excluding interest, taxes, brokerage commissions and
extraordinary expenses) above an annual rate of 2.40%, 2.75%, and 1.75% of
average net assets for Class A, Class B, and Institutional Class,
respectively. For the period, the reimbursement reduced expenses by
$27,074, $11,960, and $10,894 for Class A, Class B, and Institutional
Class, respectively.
7. SHARE TRANSACTIONS.
Share transactions for each class of shares was as follows:
SHARES DOLLARS
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED OCTOBER 31, OCTOBER 31,
OCTOBER 31, OCTOBER 31,
1995 1994 1995 1994
CLASS A
Shares sold 7,829,216 10,824,371 $ 140,936,888 $ 187,226,410
Reinvestment of distributions 172,755 98,039 2,772,967 1,607,842
Shares redeemed (5,174,557) (1,861,855) (90,539,239) (32,108,690)
Net increase (decrease) 2,827,414 9,060,555 $ 53,170,616 $ 156,725,562
CLASS B
Shares sold 131,062 -- $ 2,593,820 $ --
Reinvestment of distributions -- -- -- --
Shares redeemed (639) -- (12,702) --
Net increase (decrease) 130,423 -- $ 2,581,118 $ --
INSTITUTIONAL CLASS
Shares sold 38,128 -- $ 737,951 $ --
Reinvestment o f distributions -- -- -- --
Shares redeemed (858) -- (16,977) --
Net increase (decrease) 37,270 -- $ 720,974 $ --
REPORT OF INDEPENDENT ACCOUNTANTS

To the Trustees of Fidelity Advisor Series V and the Shareholders of
Fidelity Advisor Global Resources Fund:
We have audited the accompanying statement of assets and liabilities of
Fidelity Advisor Series V: Fidelity Advisor Global Resources Fund,
including the schedule of portfolio investments, as of October 31, 1995,
and the related statement of operations for the year then ended, the
statement of changes in net assets for each of the two years in the period
then ended and the financial highlights for each of the five years in the
period then ended (Class A) and the period July 3, 1995 (commencement of
sale of Class B and Institutional Class shares) to October 31, 1995 (Class
B and Institutional Class). These financial statements and financial
highlights are the responsibility of the fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of October 31,1995 by correspondence with the custodian
and brokers. An audit also includes assessing the accounting principles
used
and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position
of Fidelity Advisor Series V: Fidelity Advisor Global Resources Fund as
of October 31,1995, the results of its operations for the year then ended,
the changes in its net assets for each of the two years in the period then
ended, and the financial highlights for each of the five years in the
period then ended (Class A) and the period July 3, 1995 (commencement of
sale of Class B and Institutional Class shares) to October 31, 1995 (Class
B and Institutional Class), in conformity with generally accepted
accounting principles.
COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
December 11, 1995
DISTRIBUTIONS

The Board of Trustees of Fidelity Advisor Global Resources voted to pay to
shareholders of record at the opening of business on record date, the
following distribution derived from capital gains realized from sales of
portfolio securities:
PAY DATE RECORD DATE CAPITAL GAINS
Class A 12/11/95 12/8/95 $.69
Class B 12/11/95 12/8/95 $.69
A total of 54% of the dividends distributed during the fiscal year
qualifies for the dividends-received deductions for corporate shareholders.
The fund will notify shareholders in January 1996 of the applicable
percentage for use in preparing 1995 income tax returns.

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
Kenneth A. Rathgeber, 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
CUSTODIAN
Brown Brothers Harriman & Co.
Boston, MA
* INDEPENDENT TRUSTEES
TRANSFER AND SHAREHOLDER
SERVICING AGENT
State Street Bank and Trust Company
Boston, MA - Class A
Fidelity Investments Institutional
Operations Company
Boston, MA - Class B
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
STATE TAX-EXEMPT FUNDS
Fidelity Advisor New York Tax-Free Fund
MONEY MARKET FUNDS
Daily Money Fund:
Money Market Portfolio
Daily Money Fund:
U.S. Treasury Portfolio
Daily Tax-Exempt Money Fund

(2_FIDELITY_LOGOS)FIDELITY ADVISOR
(registered trademark)

GLOBAL RESOURCES
FUND - INSTITUTIONAL CLASS
ANNUAL REPORT
OCTOBER 31, 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 25 Notes to the financial statements.

REPORT OF INDEPENDENT 31 The auditors' opinion.
ACCOUNTANTS

DISTRIBUTIONS 32

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. A fund's total return
includes changes in a fund's share price, plus reinvestment of any
dividends (or income) and capital gains (the profits the fund earns when it
sells securities that have grown in value). Initial offering of
Institutional Class shares took place on July 3, 1995. Institutional Class
shares are sold to eligible investors without a sales load or 12b-1 fee.
Returns prior to July 3, 1995 are those of Class A, the original class of
the fund, and reflect Class A's 0.65% 12b-1 fee. If Fidelity had not
reimbursed certain class expenses, the past 1 year, past 5 years and life
of fund total returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 1995 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

Advisor Global Resources - Institutional 11.52% 107.09% 202.26%
Class

S&P 500(registered trademark) 26.44% 121.65% 203.28%

Average Natural Resources Fund -0.40% 35.77% n/a

CUMULATIVE TOTAL RETURNS show Institutional Class' performance in
percentage terms over a set period - in this case, 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 Institutional Class' 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 Institutional Class'
performance stacked up against its peers, you can compare it to the average
natural resources fund, which reflects the performance of 35 natural
resources funds with similar objectives tracked by Lipper Analytical
Services over the past 12 months. Both benchmarks include reinvested
dividends and capital gains, if any, and exclude the effects of sales
charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 1995 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

Advisor Global Resources - Institutional 11.52% 15.67% 15.14%
Class

S&P 500 26.44% 17.26% 15.19%

Average Natural Resources Fund -0.40% 6.01% n/a

AVERAGE ANNUAL TOTAL RETURNS take Institutional Class' actual (or
cumulative) return and show you what would have happened if Institutional
Class shares had performed at a constant rate each year.
$10,000 OVER LIFE OF FUND
FA Global Resources (226) S&P 500
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 11980.44 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 14411.23 14603.58
03/31/90 14682.50 14990.58
04/30/90 13913.90 14615.81
05/31/90 15326.77 16040.85
06/30/90 15134.62 15931.78
07/31/90 15880.61 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 14376.89 15625.72
02/28/91 16449.24 16742.96
03/31/91 16060.67 17148.14
04/30/91 16143.09 17189.30
05/31/91 16920.22 17931.87
06/30/91 15942.92 17110.59
07/31/91 16472.78 17907.95
08/31/91 16896.67 18332.37
09/30/91 16237.29 18026.21
10/31/91 16614.08 18267.77
11/30/91 15271.77 17531.58
12/31/91 15931.40 19537.19
01/31/92 16920.77 19173.80
02/29/92 17301.29 19423.06
03/31/92 16870.03 19044.31
04/30/92 17491.56 19604.21
05/31/92 17960.87 19700.27
06/30/92 17377.40 19406.73
07/31/92 18075.03 20200.47
08/31/92 17808.66 19786.36
09/30/92 17986.24 20019.84
10/31/92 17605.72 20089.91
11/30/92 17834.03 20774.97
12/31/92 18055.82 21030.51
01/31/93 18634.62 21207.16
02/28/93 19156.96 21495.58
03/31/93 20427.50 21949.14
04/30/93 21528.63 21417.97
05/31/93 22587.42 21991.97
06/30/93 22898.00 22055.75
07/31/93 22587.42 21967.52
08/31/93 23886.20 22800.09
09/30/93 23759.14 22624.53
10/31/93 24832.04 23092.86
11/30/93 23900.31 22873.48
12/31/93 24906.00 23150.25
01/31/94 26420.36 23937.36
02/28/94 25597.02 23288.65
03/31/94 24023.86 22273.27
04/30/94 24420.82 22558.37
05/31/94 24744.28 22928.32
06/30/94 24303.20 22366.58
07/31/94 25126.54 23100.20
08/31/94 26346.85 24047.31
09/30/94 26214.53 23458.15
10/31/94 25817.56 23985.96
11/30/94 24126.77 23112.39
12/31/94 24338.32 23455.15
01/31/95 23860.22 24063.34
02/28/95 24562.43 25001.09
03/31/95 25936.97 25738.87
04/30/95 26997.76 26496.88
05/31/95 27371.28 27555.96
06/30/95 28148.19 28196.09
07/31/95 29328.50 29131.07
08/31/95 29776.72 29204.19
09/30/95 30030.71 30436.60
10/31/95 28760.76 30327.94

$10,000 OVER LIFE OF FUND: Let's say you invested $10,000 in Fidelity
Advisor Global Resources Fund - Institutional Class on December 29, 1987,
when the fund started. As the chart shows, by October 31, 1995, the value
of your investment would have grown to $30,226 - a 202.26% 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 $30,328 - a 203.28% 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

MARKET RECAP
Strong corporate earnings and a
favorable interest rate
environment helped the U.S.
stock market post robust returns
for the 12 months ended October
31, 1995. The Standard & Poor's
Composite Index of 500 Stocks
finished the 12-month period with
a total return of 26.44% - well
above its historical annual
average of roughly 12%. With
inflation posing little threat,
interest rates fell during the first
half of 1995. The Federal
Reserve Board cut the federal
funds rate - the rate banks
charge each other for overnight
loans - by 0.25% on July 6 to
5.75%. Large-capitalization
stocks led the rally. Technology
companies - whose goods and
services benefited from both
corporate and consumer demand
- - posted the strongest earnings
growth and stock price gains.
Lower interest rates and
continued merger and acquisition
activity helped financial stocks
perform especially well. In June,
the Dow Jones Industrial Average
closed above 4500 for the first
time. Returns from foreign
markets suffered as investors
brought capital back to the U.S.
The Morgan Stanley Emerging
Markets Free Index was down
19.43% for the 12 months ended
October 31. The Morgan Stanley
EAFE (Europe, Australasia, Far
East) Index was down 0.37% for
the year ended October 31.
European markets have fared
well through the first 10 months of
1995, while the Japanese market
has struggled through much of
the year.
An interview with Malcolm MacNaught, Portfolio Manager of Fidelity Advisor
Global Resources Fund
Q. MALCOLM, HOW HAS THE FUND
PERFORMED?
A. Quite well. For the 12 months ended October 31, 1995, the fund had a
total return of 11.52%. That beat the average natural resources fund which
had a total return of -0.40% for the same period, as tracked by Lipper
Analytical Services.
Q. WHAT HELPED THE FUND PERFORM BETTER THAN THE AVERAGE?
A. Energy stocks - which made up 22.2% of the fund's investments at the end
of the period - were one key. During the past six months, oilfield service
companies were among the best performers in this sector. They benefited
from stronger day rates for the offshore drilling rigs and support vessels
as availability tightened. Companies such as Pride Petroleum, Reading &
Bates, Sonat Offshore Drilling and Atwood Oceanics were some of the fund's
best performers over the past six months.
Q. DID ALL ENERGY COMPANIES FARE AS WELL?
A. No, integrated oil companies with large petrochemical operations didn't
do as well. Investors were concerned that prices of commodity chemicals had
peaked, and that lower earnings lay ahead.
Q. WHAT OTHER FACTORS CONTRIBUTED
TO PERFORMANCE?
A. Many basic industry stocks, which accounted for about 31.9% of the
portfolio at the end of the period, posted strong results in the first
half. Aluminum companies continue to show earnings growth as aluminum
prices remain strong and the supply and demand situation remains favorable
for producers. Fertilizer and agricultural chemicals companies including
Potash Corp. of Saskatchewan, the fund's largest holding, and Mississippi
Chemical and Arcadian Corp., benefited from strong sales. The latest U.S.
grain and soybean harvest shows below-normal levels of inventory carryover,
which should necessitate a strong planting season next year. This should
continue to help the sales of fertilizer and agricultural chemicals
companies, particularly if you factor in food crop realization in other
parts of the world.
Q. WHAT STOCKS DIDN'T PERFORM AS WELL AS YOU HAD HOPED?
A. Steel companies, including Inland Steel, suffered from weak steel prices
and a sluggish construction environment.
Q. WHERE ARE YOU FINDING OPPORTUNITIES IN THE INDUSTRIAL MACHINERY AND
EQUIPMENT SECTOR?
A. Recently there haven't been many. I'm standing on the sidelines in
anticipation that they may become more realistically priced.
Q. DO YOU SEE MUCH OPPORTUNITY IN THE PRECIOUS METALS SECTOR?
A. I think it's unlikely that gold will break above $400 per ounce over the
next several months. So the only strategy that makes sense is to search for
the best companies with growing reserves, production and earnings.
Q. WHAT IS YOUR OUTLOOK FOR THE
NATURAL RESOURCES SECTOR IN 1996?
A. I believe that unless the Central Banks of the world go crazy printing
money, inflation is not going to be much of a concern over the near term.
So my investment emphasis will be to find companies that can benefit from
flat or declining material prices and those with real volume growth.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER,
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.

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 October 31, 1995,
more than $276 million
MANAGER: Malcolm
MacNaught, since December
1987; joined Fidelity in 1968
(checkmark)
MALCOLM MACNAUGHT ON HIS
STRATEGY:
"The fund has the flexibility to
invest some of its assets
outside the natural resources
sector when I feel market
conditions warrant, and at the
end of October, roughly 13%
of the fund was invested in
technology and health care
companies. Investors are
worried about a slowing
economy, and tended to sell
cyclical stocks to seek refuge in
defensive stocks such as
healthcare. What's more, many
of the fund's drug companies
continued to dazzle investors
with healthy earnings growth
resulting from a combination of
new drugs and cost cutting.
However, I recognize that
investors choose to invest in a
natural resource funds primarily
as a hedge against inflation. So,
over time I expect the fund's
portfolio makeup and
performance to reflect market
conditions among natural
resources stocks."
INVESTMENT CHANGES

TOP TEN STOCKS AS OF OCTOBER 31, 1995
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE STOCKS
6 MONTHS AGO

Potash Corp. of Saskatchewan 1.6 1.0

Exide Corp. 1.5 0.9

Burlington Northern Sante Fe 1.4 1.0
Corp.

Inco Ltd. 1.3 0.0

Johnson & Johnson 1.2 1.1

Intertape Polymer Group, Inc. 1.2 1.0

Scott Paper Co. 1.2 1.3

Merck & Co., Inc. 1.2 0.0

Great Lakes Chemical Corp. 1.1 1.2

Renaissance Energy Ltd. 1.1 0.6

TOP FIVE MARKET SECTORS AS OF OCTOBER 31, 1995
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE MARKET SECTORS
6 MONTHS AGO

Basic Industries 31.9 29.5

Energy 22.2 24.4

Industrial Machinery & Equipment 8.0 7.2

Health 7.6 7.8

Precious Metals 5.9 6.3

Showing Percentage of Total Value of Investment in Securities

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
ASSETS OCTOBER 31, 1995

Investment in securities, at value (including repurchase $ 269,999,911
agreements of $16,564,000) (cost $253,002,366) -
See accompanying schedule

Cash 3

Receivable for investments sold 10,113,362

Receivable for fund shares sold 1,680,505

Dividends receivable 142,196

Prepaid expenses 27,006

TOTAL ASSETS 281,962,983

LIABILITIES

Payable for investments purchased $ 4,887,918

Payable for fund shares redeemed 417,619

Accrued management fee 125,565

Distribution fees payable 150,133

Other payables and accrued expenses 176,514

TOTAL LIABILITIES 5,757,749

NET ASSETS $ 276,205,234

Net Assets consist of:

Paid in capital $ 249,274,757

Accumulated net investment loss (408)

Accumulated undistributed net realized gain (loss) on 9,933,080
investments and foreign currency transactions

Net unrealized appreciation (depreciation) on 16,997,805
investments and assets and liabilities in foreign currencies

NET ASSETS $ 276,205,234

CALCULATION OF MAXIMUM OFFERING PRICE $19.25
CLASS A:
NET ASSET VALUE, and redemption price per share
($272,978,972 (divided by) 14,180,177 shares)

Maximum offering price per share (100/95.25 of $19.25) $20.21

CLASS B: $19.23
NET ASSET VALUE, offering price and redemption price per
share
($2,507,937 (divided by) 130,423 shares) A

INSTITUTIONAL CLASS: $19.27
NET ASSET VALUE, offering price and redemption price per
share
($718,325 (divided by) 37,270 shares)

</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>
INVESTMENT INCOME YEAR ENDED OCTOBER 31, 1995

Dividends $ 2,876,403

Interest 649,281

3,525,684

Less foreign taxes withheld (43,895)

TOTAL INCOME 3,481,789

EXPENSES

Management fee $ 1,730,945

Transfer agent fees 692,183
Class A

Class B 1,330

Institutional Class 431

Distribution fees 1,473,539
Class A

Class B 4,188

Accounting fees and expenses 136,434

Non-interested trustees' compensation 1,482

Custodian fees and expenses 53,346

Registration fees 73,863
Class A

Class B 12,338

Institutional Class 12,041

Audit 31,245

Legal 13,298

Interest 1,974

Reports to shareholders 26,188

Miscellaneous 1,525

Total expenses before reductions 4,266,350

Expense reductions (99,418) 4,166,932

NET INVESTMENT INCOME (LOSS) (685,143)

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

Investment securities 11,240,942

Foreign currency transactions (2,532) 11,238,410

Change in net unrealized appreciation (depreciation) on:

Investment securities 12,904,057

Assets and liabilities in foreign currencies 251 12,904,308

NET GAIN (LOSS) 24,142,718

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM $ 23,457,575
OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31,
1995 1994

INCREASE (DECREASE) IN NET ASSETS

Operations $ (685,143) $ (773,691)
Net investment income (loss)

Net realized gain (loss) 11,238,410 3,777,673

Change in net unrealized appreciation (depreciation) 12,904,308 1,218,553

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 23,457,575 4,222,535
FROM OPERATIONS

Distribution to shareholders (3,086,044) (1,895,685)
from net realized gain
Class A

Share transactions - net increase (decrease) 56,472,708 156,725,562

TOTAL INCREASE (DECREASE) IN NET ASSETS 76,844,239 159,052,412

NET ASSETS

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

End of period $ 276,205,234 $ 199,360,995

</TABLE>

FINANCIAL HIGHLIGHTS - CLASS A

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
YEARS ENDED OCTOBER 31,

1995 1994 E 1993 1992 1991

SELECTED PER-SHARE DATA

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

Income from Investment
Operations

Net investment (.05) D (.11) .22 (.10) (.15)
income (loss) D

Net realized and unrealized 2.00 .76 4.91 .79 2.45
gain (loss)

Total from investment 1.95 .65 5.13 .69 2.30
operations

Less Distributions

From net investment - - - - -
income

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

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

Net asset value, end of $ 19.25 $ 17.56 $ 17.59 $ 13.88 $ 14.11
period

TOTAL RETURN A, B 11.40% 3.97% 41.05% 5.97% 19.50%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period $ 272,979 $ 199,361 $ 40,309 $ 7,087 $ 5,940
(000 omitted)

Ratio of expenses to average 1.86% 2.10% 2.63% 3.27% 3.35%
net assets F C C

Ratio of expenses to average 1.84% 2.07% 2.62% 3.27% 3.35%
net assets after expense C C
reductions

Ratio of net investment (.30) (.67) (1.18) (1.22) (1.28)
income (loss) to average % % % % %
net assets

Portfolio turnover 161% 125% 208% 248% 256%

</TABLE>

1995 F

SELECTED PER-SHARE DATA

Net asset value, beginning of period $ 18.87

Income from Investment Operations

Net investment income (loss) (.03) D

Net realized and unrealized gain (loss) .39

Total from investment operations .36

Net asset value, end of period $ 19.23

TOTAL RETURN B, C 1.91%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 2,508

Ratio of expenses to average net assets 2.23%
A,E

Ratio of expenses to average net assets after expense reductions 2.21% A

Ratio of net investment income (loss) to average net assets (.67)%
A

<TABLE>
<CAPTION>
<S> <C>
YEAR ENDED
OCTOBER 31,

1995 F

SELECTED PER-SHARE DATA

Net asset value, beginning of period $ 18.87

Income from Investment Operations

Net investment income (loss) (.01) D

Net realized and unrealized gain (loss) .41

Total from investment operations .40

Net asset value, end of period $ 19.27

TOTAL RETURN B, C 2.12%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 718

Ratio of expenses to average net assets 1.68%
A,E

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

Ratio of net investment income (loss) to average net assets (.13)%
A

Portfolio turnover 161%

</TABLE>

The Board of Trustees of Fidelity Advisor Global Resources voted to pay to
shareholders of record at the opening of business on record date, the
following distribution derived from capital gains realized from sales of
portfolio securities:
PAY DATE RECORD DATE CAPITAL GAINS
Institutional Class 12/11/95 12/8/95 $.69
A total of 54% of the dividends distributed during the fiscal year
qualifies for the dividends-received deductions for corporate shareholders.
The fund will notify shareholders in January 1996 of the applicable
percentage for use in preparing 1995 income tax returns.

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
Kenneth A. Rathgeber, Treasurer
Robert H. Morrison, Manager,
Security Transactions
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox*
Phyllis Burke Davis*
Richard J. Flynn*
Edward C. Johnson 3d
E. Bradley Jones*
Donald J. Kirk*
Peter S. Lynch
Edward H. Malone*
Marvin L. Mann*
Gerald C. McDonough*
Thomas R. Williams*
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENT
Fidelity Investments Institutional
Operations 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
STATE TAX-EXEMPT FUNDS
Fidelity Advisor New York Tax-Free 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)

NEW YORK TAX-FREE
FUND - CLASS A & CLASS B
ANNUAL REPORT
OCTOBER 31, 1995
CONTENTS

PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.

PERFORMANCE 4 How the fund has done over time.

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

INVESTMENT SUMMARY 11 A summary of the fund's
investments.

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

FINANCIAL STATEMENTS 15 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.

NOTES 21 Notes to the financial statements.

REPORT OF INDEPENDENT 25 The auditors' opinion.
ACCOUNTANTS

THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL
INFORMATION OF THE SHAREHOLDERS OF THE FUND. THIS REPORT IS NOT AUTHORIZED
FOR DISTRIBUTION TO
PROSPECTIVE INVESTORS IN THE FUND UNLESS PRECEDED OR ACCOMPANIED BY AN
EFFECTIVE
PROSPECTUS.
MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED BY,
ANY DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE FDIC,
FEDERAL RESERVE BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO
INVESTMENT RISK, INCLUDING THE POSSIBLE LOSS OF PRINCIPAL AMOUNT INVESTED.
NEITHER THE FUND NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK.
FOR MORE INFORMATION ON ANY FIDELITY ADVISOR FUND, INCLUDING CHARGES AND
EXPENSES,
CONTACT YOUR INVESTMENT PROFESSIONAL FOR A FREE PROSPECTUS. READ IT
CAREFULLY BEFORE YOU
INVEST OR SEND MONEY.
PRESIDENT'S MESSAGE

DEAR SHAREHOLDER:
Although the markets have been fairly positive this year, 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 NEW YORK TAX-FREE FUND - CLASS A
PERFORMANCE: THE BOTTOM LINE

There are several ways to evaluate a fund's 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. A fund's total
return includes changes in a fund's 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 the fund's
income to measure performance. If Fidelity had not reimbursed certain Class
A expenses during the period shown, the total return would have been lower.
CUMULATIVE TOTAL RETURNS
PERIOD ENDED OCTOBER 31, 1995 LIFE OF
FUND

Advisor New York Tax-Free - Class A 4.85%

Advisor New York Tax-Free - Class A
(incl. max. 4.75% sales charge) -0.13%

Consumer Price Index 0.52%

CUMULATIVE TOTAL RETURNS show Class A's performance in percentage terms
over a set period - in this case, since the fund began on August 21, 1995.
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. Once the fund
has a longer record, you can compare Class A's returns to the Lehman
Brothers Municipal Bond Index - a broad gauge of the municipal bond market.
You may also want to look at the performance of the average New York
municipal bond fund as tracked by Lipper Analytical Services. Both
benchmarks include reinvested dividends and capital gains, if any. They
will appear in the fund's next report six months from now. Comparing Class
A's performance to the consumer price index (CPI) helps show how the class
did compared to inflation. (The CPI return begins on the month end closest
to the fund's start date.)
AVERAGE ANNUAL RETURNS will appear once the fund is a year old, and the
growth of a hypothetical $10,000 INVESTMENT in the fund will appear in the
fund's next report six months from now.

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
PERIOD ENDED OCTOBER 31, 1995

LIFE OF
FUND

Dividend return 0.85%

Capital appreciation return 4.00%

Total return 4.85%

Dividends per share 3.55(cents)

Annualized dividend rate 4.04%

DIVIDENDS per share show the income paid by the class for a set period. The
annualized dividend rate is based on an average net asset value of $10.35
over the past month.
ADVISOR NEW YORK TAX-FREE FUND - CLASS B
PERFORMANCE: THE BOTTOM LINE

There are several ways to evaluate a fund's 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. A fund's total
return includes changes in a fund's 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 the fund's
income to measure performance. If Fidelity had not reimbursed certain Class
B expenses during the period shown, the total return would have been lower.
CUMULATIVE TOTAL RETURNS
PERIOD ENDED OCTOBER 31, 1995 LIFE OF
FUND

Advisor New York Tax-Free - Class B 4.65%

Advisor New York Tax-Free - Class B
(incl. 4.00% contingent deferred sales 0.65%
charge)

Consumer Price Index 0.52%

CUMULATIVE TOTAL RETURNS show Class B's performance in percentage terms
over a set period - in this case, since the fund began on August 21, 1995.
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. Once the fund
has a longer record, you can compare Class B's returns to the Lehman
Brothers Municipal Bond Index - a broad gauge of the municipal bond market.
You may also want to look at the performance of the average New York
municipal bond fund as tracked by Lipper Analytical Services. Both
benchmarks include reinvested dividends and capital gains, if any. They
will appear in the fund's next report six months from now. Comparing Class
B's performance to the consumer price index (CPI) helps show how the class
did compared to inflation. (The CPI return begins on the month end closest
to the fund's start date.)
AVERAGE ANNUAL RETURNS will appear once the fund is a year old, and the
growth of a hypothetical $10,000 INVESTMENT in the fund will appear in the
fund's next report six months from now.

LIFE OF
FUND

Dividend return 0.75%

Capital appreciation return 3.90%

Total return 4.65%

Dividends per share 3.11(cents)

Annualized dividend rate 3.54%

DIVIDENDS per share show the income paid by the class for a set period. The
annualized dividend rate is based on an average net asset value of $10.35
over the past month.
FUND TALK: THE MANAGER'S OVERVIEW

MARKET RECAP
In sharp contrast to much of 1994,
the municipal bond market posted
positive returns for the 12 months
ended October 31, 1995. For the
period, the Lehman Brothers
Municipal Bond Index - a broad
measure of the tax-free market -
had a total return of 14.84%. By
comparison, the Lehman Brothers
Aggregate Bond Index - a proxy
of investment-grade taxable
bonds - had a total return of
15.65%. While the bankruptcy of
Orange County, California in
December 1994 caused some
concern among investors, tax-free
bonds managed to surge ahead of
their taxable counterparts in the
first quarter of 1995 on signs of a
slowing economy and tamer
inflation expectations. By spring,
however, the muni bond market
began to underperform U.S.
Treasury securities when
Congress began consideration of
tax-code changes, some of which
threatened the tax-exempt status
of municipal securities. This threat
of radical tax reform dampened
enthusiasm in the municipal bond
market, helping shorter maturity
bonds to outperform longer bonds
throughout the spring and
summer months. By early fall,
historically attractive valuations
relative to Treasuries, weakening
new issuance, and stronger
demand from insurance
companies and retail buyers
helped tax-free bonds rebound.
An interview with Norm Lind,
Portfolio Manager of Advisor
New York Tax-Free Fund
Q. HOW DID THE FUND PERFORM, NORM?
A. This is a new fund, introduced on August 21, 1995. Fidelity usually
compares fund performance over six- or 12-month periods, but in this first
report, we'll look at the performance of the fund since its inception. The
fund's Class A and B shares had a total return of 4.85% and 4.65%,
respectively, for the period August 21 to October 31, 1995. In the fund's
next report, we will compare the fund's performance to its peers as tracked
by Lipper Analytical Services.
Q. MUNICIPAL BONDS, LIKE OTHER TYPES OF BONDS, HAVE PERFORMED WELL THIS
YEAR COMPARED TO 1994. WAS THE FUND ABLE TO BENEFIT FROM THE COMEBACK IN
MUNIS?
A. To some extent, yes. Prior to the fund's inception, the municipal bond
market had a very strong first quarter of 1995 despite problems such as the
bankruptcy of Orange County, California in December of 1994. On the other
hand, in the spring and summer, the market underperformed taxable bonds as
the various tax reform proposals in Washington - including the flat tax -
posed a threat to munis' federally tax-free status. This slowed the flow of
cash into municipal bond mutual funds - a major player in the $1.2 trillion
municipal bond market. Now, munis seem to be moving back up again, helped
in part by an almost 17% decrease in issuance from 1994 levels. Also, in
the third quarter of 1995, we have seen a lot of interest from large
institutional investors such as insurance companies because of attractive
percentage spreads - or the amount of yield of a higher-yielding Treasury
bond that tax-exempt investors can capture.
Q. SO, NORM, HOW HAS THE NEW YORK MARKET SHAPED UP THIS YEAR?
A. So far, New York has been a great place for municipal bond investors.
Yields have fallen, and thus prices have risen across all major areas of
the market. An important event, however, occurred just after the close of
the fund's reporting period on October 31. New York State voters rejected a
constitutional amendment, known as debt reform, that would have changed the
way the state manages its debt. Even though this measure was voted down, I
don't see much of an impact on the markets. However, I believe it will
re-emerge in one form or another. Ultimately, we may see an end to
state-appropriated debt - that is, debt paid by yearly monetary commitments
by the Legislature - and the emergence of traditional revenue bonds, which
are secured by a tax or revenue source.
Q. WHAT AREAS OF THE NEW YORK MUNI MARKET DO YOU FAVOR?
A. I basically divide the New York muni market into three categories: bonds
issued by New York State and state-appropriated bonds issued by agencies
like the New York State Dormitory Authority, New York City bonds, and bonds
backed by sources of revenue such as tolls and taxes. I tend to favor
revenue bonds. For example, the holding that has contributed the most to
the fund is the Local Government Assistance Corporation (LGAC). LGAC bonds
are backed by a dedicated portion of the state sales tax and are known to
have good credit quality. I believe they will continue to add value to the
fund. I am also overweighting bonds issued by the Port Authority of New
York and New Jersey as well as the New York Thruway. Both the Port
Authority and Thruway bonds are supported by tolls. Additionally, the Port
Authority offers immediate diversification in that it controls all of the
major airports in the New York metropolitan area, many major tunnels, the
World Trade Center, and the major ports of international trade.
Q. HAVE THERE BEEN ANY DISAPPOINTMENTS SO FAR?
A. Yes. Despite the tremendous performance of New York City bonds, I'm
underweighted versus the benchmark. I was surprised at Mayor Giuliani's
progress in putting through spending and tax-cutting measures in the last
budget. Although I may consider some types of New York City bonds in the
future if any buying opportunities present themselves, the city faces great
challenges. Just like we are seeing on the national level, there is a
rethinking of what people expect from government. With stagnation in
employment growth and the real estate market, along with a desire to cut
taxes, we are going to see some contentious budget battles going forward.
Q. HOW IS THE FUND STRUCTURED?
A. I've tried to bring the fund's duration - or its price sensitivity to a
given change in interest rates - more in line with its benchmark. I will
continue to buy non-callable bonds or those that can't be refunded prior to
their maturity. I've also bought discount bonds that have the potential to
appreciate in price if interest rates fall.
Q. WHAT'S YOUR OUTLOOK ON THE MUNICIPAL BOND MARKET?
A. The market will probably trade in a choppy pattern for the next few
months as political rhetoric regarding tax reform heats up with the
upcoming presidential election. Long term, I think municipal bonds make
sense for many investors as munis are still rather cheap as compared to
Treasury bonds.

NORM LIND ON NEW YORK
STATE'S BOND RATING:
"After a tough budget fight,
New York managed to cut
expenditures for the first
time in 50 years. So why is
the state saddled with an
A/A- bond rating, the lowest
in the country along with
Louisiana? While some
progress was made this
year, much is left to be done.
The Pataki administration
faces a difficult question:
how much government and
taxes can you cut and still
balance the budget? It's
going to be a tough political
balancing act. If they can
build on this year, I think the
rating agencies will look
favorably on New York."

INVESTMENT SUMMARY

TOP FIVE SECTORS AS OF OCTOBER 31, 1995
% OF FUND'S
INVESTMENTS

General Obligation 19.2

Water & Sewer 18.7

Lease Revenue 14.1

Electric Revenue 13.4

Education 8.8

AVERAGE YEARS TO MATURITY AS OF OCTOBER 31, 1995

Years 16.5

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 OCTOBER 31, 1995

Years 8.4

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 THE ABOVE EXAMPLE.
QUALITY DIVERSIFICATION (MOODY'S RATINGS) AS OF OCTOBER 31, 1995

Aaa 27.5%
Aa, A 30.2%
Baa 26.5%
Ba, B 0.0%
Non-rated 0.0%
Short-term
investments 15.8%
Row: 1, Col: 1, Value: 27.5
Row: 1, Col: 2, Value: 30.2
Row: 1, Col: 3, Value: 26.5
Row: 1, Col: 4, Value: 0.0
Row: 1, Col: 5, Value: 0.0
Row: 1, Col: 6, Value: 15.8
SHOWN AS A PERCENTAGE OF THE FUND'S INVESTMENTS. WHERE MOODY'S RATINGS ARE
NOT AVAILABLE, WE HAVE USED S&P RATINGS.
INVESTMENTS OCTOBER 31, 1995

Showing Percentage of Total Value of Investments

MUNICIPAL BONDS - 84.2%
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (A) AMOUNT (NOTE 1)
NEW YORK - 78.7%
Erie County Gen. Oblig. Series B, 5.60%
6/15/10 (FGIC Insured) Aaa $ 100,000 $ 100,750
Metropolitan Trans. Auth. Svc. Contract:
(Commuter Facs.) Series O, 5.75% 7/1/13 Baa1 400,000 391,500
(Trans. Facs.) Series P, 5.75% 7/1/15 Baa1 150,000 144,750
Monroe County Gen. Oblig. Pub. Impt. 5.25%
6/1/08 (FGIC Insured) Aaa 100,000 100,500
Nassau County Combined Swr. Dist. Rfdg.
Series F, 5.10% 7/1/05 (MBIA Insured) Aaa 175,000 177,844
New York City Gen. Oblig.:
Series A-1, 6.50% 8/1/16 Baa1 200,000 205,750
6% 2/15/16 Baa1 150,000 147,563
New York City Muni. Wtr. Fin. Auth.
Wtr. & Swr. Sys. Rev. Series A,
6% 6/15/25 A 275,000 276,031
New York State Dorm. Auth. Rev.
(FIT Student Hsg. Corp.) 5.75% 7/1/05
(AMBAC Insured) Aaa 125,000 132,500
New York State Energy Research & Dev. Auth.
Facs. Rev. Rfdg. (Consolidated Edison Co.)
Series A, 6.10% 8/15/20 A1 100,000 100,875
New York State Envir. Facs. Corp. Poll. Cont.
Rev. (Wtr. Revolving Fund) Series B,
5.90% 11/15/14 Aaa 150,000 152,813
New York State Local Gov't Assistance Corp.
Series A, 6% 4/1/24 A 255,000 255,319
New York State Mtg. Agcy. Rev. (Homeowner
Mtg.) Series 49, 5.85% 10/1/17 Aa 100,000 99,000
New York State Pwr. Auth. Rev. & Gen. Purp.
Rfdg. Series CC, 5.125% 1/1/11 Aa 200,000 192,750
New York State Thruway Auth. (Highway &
Bridge Trust Fund) Series A, 6% 4/1/14
(MBIA Insured) Aaa 100,000 102,875
Shelter Island Unified Free School Dist. #1
6.20% 12/15/08 (AMBAC Insured) Aaa 160,000 173,400
Suffolk County Wtr. Auth. 6% 6/1/17
(MBIA Insured) Aaa 100,000 104,750
Triborough Bridge & Tunnel Auth. Rev.
(Gen. Purp.) Series A, 4.75% 1/1/19 Aa 150,000 128,811
2,987,781
NEW YORK & NEW JERSEY - 2.5%
New York & New Jersey Port Auth. Rev.
Consolidated 85th Series, 5.375%
3/1/28 A1 100,000 95,250
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (A) AMOUNT (NOTE 1)
PUERTO RICO - 3.0%
Puerto Rico Elec. Pwr. Auth. Pwr. Rev. Rfdg.
Series S, 7% 7/1/07 Baa1 $ 100,000 $ 115,625
TOTAL MUNICIPAL BONDS
(Cost $3,097,868) 3,198,656
MUNICIPAL NOTES (A) - 15.8%
NEW YORK - 15.8%
New York City Ind. Dev. Agcy. Civic Facs.
Rev. (National Audobon Society, Inc. Proj.)
Series 1989, 3.90%, LOC Swiss Bank,
VRDN A-1+ 100,000 100,000
New York City Trust Cultural Resource Rev.
(Guggenheim Foundation) Series 1990 B,
3.90%, LOC Swiss Bank, VRDN VMIG 1 100,000 100,000
New York State Dorm. Auth. Rev.
(Cornell Univ.) Series 1990 B, 3.90%,
(BPA Morgan Guaranty Trust Co.)
VRDN VMIG 1 200,000 200,000
New York State Energy Research & Dev. Auth.
Poll. Cont. Rev., VRDN:
(Central Hudson Gas & Elec.)
Series 1985 B, 3.60%,
LOC Deutsche Bank - 100,000 100,000
(Niagra Mohawk Pwr.)
Series 1987 A, 4.30%,
LOC Toronto-Dominion Bank - 100,000 100,000
TOTAL MUNICIPAL NOTES
(Cost $600,000) 600,000
TOTAL INVESTMENTS - 100%
(Cost $3,697,868) $ 3,798,656

SECURITY TYPE ABBREVIATIONS
VRDN - Variable Rate Demand Notes
LEGEND
(1.) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(2.) Standard & Poor's Corporation credit ratings are used in the absence
of a rating by Moody's Investors Service, Inc.
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 57.7% AAA, AA, A 58.2%
Baa 26.5% BBB 23.4%
Ba 0.0% BB 0.0%
B 0.0% B 0.0%
Caa 0.0% CCC 0.0%
Ca, C 0.0% CC, C 0.0%
D 0.0%
The percentage not rated by either S&P or Moody's amounted to 0.00%.
The distribution of municipal securities by revenue source, as a percentage
of total value of investment in securities, is as follows:
General Obligation 19.2%
Water & Sewer 18.7
Lease Revenue 14.1
Electric Revenue 13.4
Others
(individually less than 10%) 34.6
TOTAL 100.0%
INCOME TAX INFORMATION
At October 31, 1995, the aggregate cost of investment securities for income
tax purposes was $3,697,868. Net unrealized appreciation aggregated
$100,788, of which $101,015 related to appreciated investment securities
and $227 related to depreciated investment securities.
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
OCTOBER 31, 1995

ASSETS

Investment in securities, at value (cost $3,697,868) - $ 3,798,656
See accompanying schedule

Cash 189,190

Interest receivable 50,644

Prepaid expenses 1,863

Receivable from investment adviser for expense reductions 18,524

TOTAL ASSETS 4,058,877

LIABILITIES

Payable for investments purchased $ 147,395

Distributions payable 1,283

Distribution fees payable 1,253

Other payables and accrued expenses 33,211

TOTAL LIABILITIES 183,142

NET ASSETS $ 3,875,735

Net Assets consist of:

Paid in capital $ 3,774,947

Net unrealized appreciation (depreciation) on investments 100,788

NET ASSETS $ 3,875,735

CLASS A: $10.40
NET ASSET VALUE, and redemption price per share
($2,032,533 (divided by) 195,448 shares)

Maximum offering price per share (100/95.25 of $10.40) $10.92

CLASS B: $10.39
NET ASSET VALUE, and offering price per share
($1,160,659 (divided by) 111,669 shares)A

INSTITUTIONAL CLASS: $10.40
NET ASSET VALUE, offering price and redemption price
per share ($682,543 (divided by) 65,603 shares)

</TABLE>

A Redemption price per share is equal to net asset value less any
applicable deferred sales charge.
STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
AUGUST 21, 1995 (COMMENCEMENT OF OPERATIONS) TO OCTOBER 31, 1995

INTEREST INCOME $ 29,546

EXPENSES

Management fee $ 2,203

Distribution fees 620
Class A

Class B 1,730

Accounting fees and expenses 8,710

Registration fees 3,827
Class A

Class B 3,365

Institutional Class 2,376

Audit 17,875

Total expenses before reductions 40,706

Expense reductions (34,104) 6,602

NET INTEREST INCOME 22,944

Change in net unrealized appreciation (depreciation) 100,788
on investment securities

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM $ 123,732
OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C>
AUGUST 21, 1995
(COMMENCEMENT
OF OPERATIONS) TO
OCTOBER 31,1995

INCREASE (DECREASE) IN NET ASSETS

Operations $ 22,944
Net interest income

Change in net unrealized appreciation (depreciation) 100,788

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 123,732

Distributions to shareholders
From net interest income

Class A (10,525)

Class B (6,231)

Institutional Class (6,188)

TOTAL DISTRIBUTIONS (22,944)

Share transactions - net increase (decrease) 3,774,947

TOTAL INCREASE (DECREASE) IN NET ASSETS 3,875,735

NET ASSETS

Beginning of period -

End of period $ 3,875,735

</TABLE>

FINANCIAL HIGHLIGHTS - CLASS A

<TABLE>
<CAPTION>
<S> <C> <C>
AUGUST 21, 1995
(COMMENCEMENT
OF OPERATIONS) TO
OCTOBER 31,1995

SELECTED PER-SHARE DATA

Net asset value, beginning of period $ 10.000

Income from Investment Operations

Net interest income .084

Net realized and unrealized gain (loss) .400

Total from investment operations .484

Less Distributions

From net interest income (.084)

Net asset value, end of period $ 10.400

TOTAL RETURN B 4.85%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 2,033

Ratio of expenses to average net assets 1.00%A,
C

Ratio of net interest income to average net assets 4.16%A

Portfolio turnover 0%

</TABLE>

A ANNUALIZED
B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED. THE TOTAL RETURN WOULD HAVE BEEN
LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIOD SHOWN (SEE
NOTE 5 OF NOTES TO FINANCIAL STATEMENTS).
C FMR VOLUNTARILY AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES
DURING THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO
WOULD HAVE BEEN HIGHER.
FINANCIAL HIGHLIGHTS - CLASS B

<TABLE>
<CAPTION>
<S> <C> <C>
AUGUST 21, 1995
(COMMENCEMENT
OF OPERATIONS) TO
OCTOBER 31,1995

SELECTED PER-SHARE DATA

Net asset value, beginning of period $ 10.000

Income from Investment Operations

Net interest income .074

Net realized and unrealized gain (loss) .390

Total from investment operations .464

Less Distributions

From net interest income (.074)

Net asset value, end of period $ 10.390

TOTAL RETURN B 4.65%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 1,161

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

Ratio of net interest income to average net assets 3.52%A

Portfolio turnover 0%

</TABLE>

A ANNUALIZED
B TOTAL RETURNS DO NOT INCLUDE THE CONTINGENT DEFERRED SALES CHARGE AND FOR
PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. THE TOTAL RETURN WOULD
HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIOD
SHOWN (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS).
C FMR VOLUNTARILY AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES
DURING THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO
WOULD HAVE BEEN HIGHER.
FINANCIAL HIGHLIGHTS - INSTITUTIONAL CLASS

<TABLE>
<CAPTION>
<S> <C> <C>
AUGUST 21, 1995
(COMMENCEMENT
OF OPERATIONS) TO
OCTOBER 31,1995

SELECTED PER-SHARE DATA

Net asset value, beginning of period $ 10.000

Income from Investment Operations

Net interest income $ .095

Net realized and unrealized gain (loss) .400

Total from investment operations .495

Less Distributions

From net interest income (.095)

Net asset value, end of period $ 10.400

TOTAL RETURN B 4.96%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 683

Ratio of expenses to average net assets 0.75%A,
C

Ratio of net interest income to average net assets 4.75%A

Portfolio turnover 0%

</TABLE>

A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. THE
TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED
DURING THE PERIOD SHOWN (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS).
C FMR VOLUNTARILY AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES
DURING THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO
WOULD HAVE BEEN HIGHER.
NOTES TO FINANCIAL STATEMENTS
For the period ended October 31, 1995

1. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity Advisor New York Tax Free 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, Class B, and Institutional Class shares, each of
which has equal rights as to assets and voting privileges. Each class has
exclusive voting rights with respect to its distribution plan. The fund
commenced sale of shares on August 21, 1995. Investment income, realized
and unrealized capital gains and losses, and the common expenses of the
fund are allocated on a pro rata basis to each class based on the relative
net assets of each class to the total net assets of the fund. Each class of
shares differs in its respective distribution, transfer agent,
registration, and certain other class-specific fees and expenses.
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. The fund intends to qualify as a regulated investment company
under Subchapter M of the Internal Revenue Code. By so qualifying, the fund
will not be subject to income taxes to the extent that it distributes
substantially all of its taxable income for its fiscal year. The schedule
of investments includes information regarding income taxes under the
caption "Income Tax Information."
INTEREST INCOME. Interest income, which includes amortization of premium
and accretion of original issue discount, is accrued as earned.
EXPENSES. Most expenses of the trust can be directly attributed to a fund.
Expenses which cannot be directly attributed are apportioned between the
funds in the trust.
PREPAID EXPENSES. FMR bears all organizational expenses except for
registering and qualifying the fund and shares of the fund for distribution
under federal and state securities law, which are borne by the fund and
amortized over one year.
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
1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
DISTRIBUTIONS TO SHAREHOLDERS -
CONTINUED
and allocated to each class on a prorata basis based on the number of
shares held by each class on the ex-dividend date.
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. 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 $3,097,866 and $0, 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 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 .39% 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"), Class B shares ("Class B Plan")
and Institutional Class shares (collectively referred to as "the Plans").
Under the Class A Plan and Class B Plan the fund pays Fidelity Distributors
Corporation (FDC), an affiliate of FMR, a distribution
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES -
CONTINUED
DISTRIBUTION AND SERVICE PLAN -
CONTINUED
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 $368 and $1,730 under the
Class A Plan and Class B Plan, respectively, of which $368 and $432 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.
Under the Plans, FMR or FDC may use its resources to pay administrative and
promotional expenses related to the sale of the fund's Class A, Class B,
and Institutional Class 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 no sales
charges on sales of Class A shares of the fund; all sales charges were
retained by 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. When Class B shares are sold, FDC pays commissions from its
own resources to dealers through which the sales are made.
TRANSFER AGENT FEES AND ACCOUNTING FEES. UMB Bank, n.a. (UMB) is the
custodian, transfer agent, and shareholder servicing agent for the fund's
Class A, Class B and Institutional shares. UMB has entered into
sub-arrangements with State Street Bank and Trust Company (State Street)
with respect to the Class A shares, and Fidelity Investments Institutional
Operations Company (FIIOC), an affiliate of FMR, with respect to the Class
B and Institutional shares, to perform the transfer, dividend disbursing,
and shareholder servicing agent functions. 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 in the level of average net assets for the month plus out-of-pocket
expenses. For the period, FSC received accounting fees amounting to $8,710.
5. EXPENSE REDUCTIONS.
FMR voluntarily agreed to reimburse the funds' operating expenses
(excluding interest, taxes, brokerage commissions and extraordinary
expenses) above an annual rate of 1.00%, 1.75%, and 0.75% of average net
assets for Class A, Class B, and Institutional Class, respectively. For the
period, the reimbursement reduced expenses by $14,449, $11,117, and $8,538
for Class A, Class B, and Institutional Class, respectively.
6. BENEFICIAL INTEREST.
At the end of the period, an affiliate of FMR was record owner of
approximately 36.1%, 58.6% and 100% of the total outstanding shares of
Class A, Class B and Institutional Class, respectively.
7. SHARE TRANSACTIONS.
Share transactions for all classes were as follows:

<TABLE>
<CAPTION>
<S> <C> <C> <C>
PERIOD ENDED
OCTOBER 31, 1995A

SHARES DOLLARS

CLASS A

Sold 194,544 $ 1,979,912

Reinvestment of dividends from net interest income 904 9,361

Redeemed - -

Net increase (decrease) 195,448 $ 1,989,273

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C>
CLASS B

Sold 111,132 $ 1,123,890

Reinvestment of dividends from net interest income 537 5,564

Redeemed - -

Net increase (decrease) 111,669 $ 1,129,454

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C>
INSTITUTIONAL CLASS

Sold 65,001 $ 650,032

Reinvestment of dividends from net interest income 602 6,188

Redeemed - -

Net increase (decrease) 65,603 $ 656,220

</TABLE>

A SHARE TRANSACTIONS FOR CLASS A, CLASS B AND INSTITUTIONAL CLASS ARE FOR
THE PERIOD AUGUST 21, 1995 (COMMENCEMENT OF SALE OF SHARES) TO OCTOBER 31,
1995.
REPORT OF INDEPENDENT ACCOUNTANTS

Page 26 = BLANK

(EXCEPT FOR "ANNUAL REPORT" AND PAGE NUMBER)

Do NOT strip-in this type.

Page 27 = BLANK

(EXCEPT FOR "ANNUAL REPORT" AND PAGE NUMBER)

Do NOT strip-in this type.
INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Arthur S. Loring, Secretary
Kenneth A. Rathgeber, 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
STATE TAX-EXEMPT FUNDS
Fidelity Advisor New York Tax-Free 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)

NEW YORK TAX-FREE
FUND - INSTITUTIONAL CLASS
ANNUAL REPORT
OCTOBER 31, 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 SUMMARY 9 A summary of the fund's
investments.

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

FINANCIAL STATEMENTS 13 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.

NOTES 19 Notes to the financial statements.

REPORT OF INDEPENDENT 23 The auditors' opinion.
ACCOUNTANTS

THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL
INFORMATION OF THE SHAREHOLDERS OF THE FUND. THIS REPORT IS NOT AUTHORIZED
FOR DISTRIBUTION TO
PROSPECTIVE INVESTORS IN THE FUND UNLESS PRECEDED OR ACCOMPANIED BY AN
EFFECTIVE
PROSPECTUS.
MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED BY,
ANY DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE FDIC,
FEDERAL RESERVE BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO
INVESTMENT RISK, INCLUDING THE POSSIBLE LOSS OF PRINCIPAL AMOUNT INVESTED.
NEITHER THE FUND NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK.
FOR MORE INFORMATION ON ANY FIDELITY ADVISOR FUND, INCLUDING CHARGES AND
EXPENSES,
CONTACT YOUR INVESTMENT PROFESSIONAL FOR A FREE PROSPECTUS. READ IT
CAREFULLY BEFORE YOU
INVEST OR SEND MONEY.
PRESIDENT'S MESSAGE

DEAR SHAREHOLDER:
Although the markets have been fairly positive this year, 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 NEW YORK TAX-FREE FUND - INSTITUTIONAL CLASS
PERFORMANCE: THE BOTTOM LINE

There are several ways to evaluate a fund's 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. A fund's total
return includes changes in a fund's 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 the fund's
income to measure performance. If Fidelity had not reimbursed certain
Institutional Class expenses during the period shown, the total return
would have been lower.
CUMULATIVE TOTAL RETURNS
PERIOD ENDED OCTOBER 31, 1995 LIFE OF
FUND

Advisor New York Tax-Free - Institutional 4.96%
Class

Consumer Price Index 0.52%

CUMULATIVE TOTAL RETURNS show Institutional Class' performance in
percentage terms over a set period - in this case, since the fund began on
August 21, 1995. 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. Once the fund has a longer record, you can compare Institutional
Class' returns to the Lehman Brothers Municipal Bond Index - a broad gauge
of the municipal bond market. You may also want to look at the performance
of the average New York municipal bond fund as tracked by Lipper Analytical
Services. Both benchmarks include reinvested dividends and capital gains,
if any. They will appear in the fund's next report six months from now.
Comparing Institutional Class' performance to the consumer price index
(CPI) helps show how the class did compared to inflation. (The CPI return
begins on the month end closest to the fund's start date.)
AVERAGE ANNUAL RETURNS will appear once the fund is a year old, and the
growth of a hypothetical $10,000 INVESTMENT in the fund will appear in the
fund's next report six months from now.

LIFE OF
FUND

Dividend return 0.96%

Capital appreciation return 4.00%

Total return 4.96%

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, if any.
DIVIDENDS
PERIOD ENDED OCTOBER 31, 1995 PAST
MONTH

Dividends per share 4.07(cents)

Annualized dividend rate 4.63%

DIVIDENDS per share show the income paid by the class for a set period. The
annualized dividend rate is based on an average net asset value of $10.36
over the past month.
FUND TALK: THE MANAGER'S OVERVIEW

MARKET RECAP
In sharp contrast to much of 1994,
the municipal bond market posted
positive returns for the 12 months
ended October 31, 1995. For the
period, the Lehman Brothers
Municipal Bond Index - a broad
measure of the tax-free market -
had a total return of 14.84%. By
comparison, the Lehman Brothers
Aggregate Bond Index - a proxy
of investment-grade taxable
bonds - had a total return of
15.65%. While the bankruptcy of
Orange County, California in
December 1994 caused some
concern among investors, tax-free
bonds managed to surge ahead of
their taxable counterparts in the
first quarter of 1995 on signs of a
slowing economy and tamer
inflation expectations. By spring,
however, the muni bond market
began to underperform U.S.
Treasury securities when
Congress began consideration of
tax-code changes, some of which
threatened the tax-exempt status
of municipal securities. This threat
of radical tax reform dampened
enthusiasm in the municipal bond
market, helping shorter maturity
bonds to outperform longer bonds
throughout the spring and
summer months. By early fall,
historically attractive valuations
relative to Treasuries, weakening
new issuance and stronger
demand from insurance
companies and retail buyers
helped tax-free bonds rebound.
An interview with Norm Lind,
Portfolio Manager of Advisor
New York Tax-Free Fund
Q. HOW DID THE FUND PERFORM, NORM?
A. This is a new fund, introduced on August 21, 1995. Fidelity usually
compares fund performance over six- or 12-month periods, but in this first
report, we'll look at the performance of the fund since its inception. The
fund's institutional class shares returned 4.96%, for the period August 21
to October 31, 1995. In the fund's next report, we will compare the fund's
performance to its peers as tracked by Lipper Analytical Services.
Q. MUNICIPAL BONDS, LIKE OTHER TYPES OF BONDS, HAVE PERFORMED WELL THIS
YEAR COMPARED TO 1994. WAS THE FUND ABLE TO BENEFIT FROM THE COMEBACK IN
MUNIS?
A. To some extent, yes. Prior to the fund's inception, the municipal bond
market had a very strong first quarter of 1995 despite problems such as the
bankruptcy of Orange County, California in December of 1994. On the other
hand, in the spring and summer, the market underperformed taxable bonds as
the various tax reform proposals in Washington - including the flat tax -
posed a threat to munis' federally tax-free status. This slowed the flow of
cash into municipal bond mutual funds - a major player in the $1.2 trillion
municipal bond market. Now, munis seem to be moving back up again, helped
in part by an almost 17% decrease in issuance from 1994 levels. Also, in
the third quarter of 1995, we have seen a lot of interest from large
institutional investors such as insurance companies because of attractive
percentage spreads - or the amount of yield of a higher-yielding Treasury
bond that tax-exempt investors can capture.
Q. SO, NORM, HOW HAS THE NEW YORK MARKET SHAPED UP THIS YEAR?
A. So far, New York has been a great place for municipal bond investors.
Yields have fallen, and thus prices have risen across all major areas of
the market. An important event, however, occurred just after the close of
the fund's reporting period on October 31. New York State voters rejected a
constitutional amendment, known as debt reform, that would have changed the
way the state manages its debt. Even though this measure was voted down, I
don't see much of an impact on the markets. However, I believe it will
re-emerge in one form or another. Ultimately, we may see an end to
state-appropriated debt - that is, debt paid by yearly monetary commitments
by the Legislature - and the emergence of traditional revenue bonds, which
are secured by a tax or revenue source.
Q. WHAT AREAS OF THE NEW YORK MUNI MARKET DO YOU FAVOR?
A. I basically divide the New York muni market into three categories: bonds
issued by New York State and state-appropriated bonds issued by agencies
like the New York State Dormitory Authority, New York City bonds, and bonds
backed by sources of revenue such as tolls and taxes. I tend to favor
revenue bonds. For example, the holding that has contributed the most to
the fund is the Local Government Assistance Corporation (LGAC). LGAC bonds
are backed by a dedicated portion of the state sales tax and are known to
have good credit quality. I believe they will continue to add value to the
fund. I am also overweighting bonds issued by the Port Authority of New
York and New Jersey as well as the New York Thruway. Both the Port
Authority and Thruway bonds are supported by tolls. Additionally, the Port
Authority offers immediate diversification in that it controls all of the
major airports in the New York metropolitan area, many major tunnels, the
World Trade Center, and the major ports of international trade.
Q. HAVE THERE BEEN ANY DISAPPOINTMENTS SO FAR?
A. Yes. Despite the tremendous performance of New York City bonds, I'm
underweighted versus the benchmark. I was surprised at Mayor Giuliani's
progress in putting through spending and tax-cutting measures in the last
budget. Although I may consider some types of New York City bonds in the
future if any buying opportunities present themselves, the city faces great
challenges. Just like we are seeing on the national level, there is a
rethinking of what people expect from government. With stagnation in
employment growth and the real estate market, along with a desire to cut
taxes, we are going to see some contentious budget battles going forward.
Q. HOW IS THE FUND STRUCTURED?
A. I've tried to bring the fund's duration - or its price sensitivity to a
given change in interest rates - more in line with its benchmark. I will
continue to buy non-callable bonds or those that can't be refunded prior to
their maturity. I've also bought discount bonds that have the potential to
appreciate in price if interest rates fall.
Q. WHAT'S YOUR OUTLOOK ON THE MUNICIPAL BOND MARKET?
A. The market will probably trade in a choppy pattern for the next few
months as political rhetoric regarding tax reform heats up with the
upcoming presidential election. Long term, I think municipal bonds make
sense for many investors as munis are still rather cheap as compared to
Treasury bonds.

INVESTMENT SUMMARY

TOP FIVE SECTORS AS OF OCTOBER 31, 1995
% OF FUND'S
INVESTMENTS

General Obligation 19.2

Water & Sewer 18.7

Lease Revenue 14.1

Electric Revenue 13.4

Education 8.8

AVERAGE YEARS TO MATURITY AS OF OCTOBER 31, 1995

Years 16.5

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 OCTOBER 31, 1995

Years 8.4

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 THE ABOVE EXAMPLE.
QUALITY DIVERSIFICATION (MOODY'S RATINGS) AS OF OCTOBER 31, 1995

Showing Percentage of Total Value of Investments

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
OCTOBER 31, 1995

ASSETS

Investment in securities, at value (cost $3,697,868) - $ 3,798,656
See accompanying schedule

Cash 189,190

Interest receivable 50,644

Prepaid expenses 1,863

Receivable from investment adviser for expense reductions 18,524

TOTAL ASSETS 4,058,877

LIABILITIES

Payable for investments purchased $ 147,395

Distributions payable 1,283

Distribution fees payable 1,253

Other payables and accrued expenses 33,211

TOTAL LIABILITIES 183,142

NET ASSETS $ 3,875,735

Net Assets consist of:

Paid in capital $ 3,774,947

Net unrealized appreciation (depreciation) on investments 100,788

NET ASSETS $ 3,875,735

CLASS A: $10.40
NET ASSET VALUE, and redemption price per share
($2,032,533 (divided by) 195,448 shares)

Maximum offering price per share (100/95.25 of $10.40) $10.92

CLASS B: $10.39
NET ASSET VALUE, and offering price per share
($1,160,659 (divided by) 111,669 shares)A

INSTITUTIONAL CLASS: $10.40
NET ASSET VALUE, offering price and redemption price
per share ($682,543 (divided by) 65,603 shares)

</TABLE>

A Redemption price per share is equal to net asset value less any
applicable deferred sales charge.
STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
AUGUST 21, 1995 (COMMENCEMENT OF OPERATIONS) TO OCTOBER 31, 1995

INTEREST INCOME $ 29,546

EXPENSES

Management fee $ 2,203

Distribution fees 620
Class A

Class B 1,730

Accounting fees and expenses 8,710

Registration fees 3,827
Class A

Class B 3,365

Institutional Class 2,376

Audit 17,875

Total expenses before reductions 40,706

Expense reductions (34,104) 6,602

NET INTEREST INCOME 22,944

Change in net unrealized appreciation (depreciation) 100,788
on investment securities

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM $ 123,732
OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C>
AUGUST 21, 1995
(COMMENCEMENT
OF OPERATIONS) TO
OCTOBER 31,1995

INCREASE (DECREASE) IN NET ASSETS

Operations $ 22,944
Net interest income

Change in net unrealized appreciation (depreciation) 100,788

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 123,732

Distributions to shareholders
From net interest income

Class A (10,525)

Class B (6,231)

Institutional Class (6,188)

TOTAL DISTRIBUTIONS (22,944)

Share transactions - net increase (decrease) 3,774,947

TOTAL INCREASE (DECREASE) IN NET ASSETS 3,875,735

NET ASSETS

Beginning of period -

End of period $ 3,875,735

</TABLE>

FINANCIAL HIGHLIGHTS - CLASS A

<TABLE>
<CAPTION>
<S> <C> <C>
AUGUST 21, 1995
(COMMENCEMENT
OF OPERATIONS) TO
OCTOBER 31,1995

SELECTED PER-SHARE DATA

Net asset value, beginning of period $ 10.000

Income from Investment Operations

Net interest income .084

Net realized and unrealized gain (loss) .400

Total from investment operations .484

Less Distributions

From net interest income (.084)

Net asset value, end of period $ 10.400

TOTAL RETURN B 4.85%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 2,033

Ratio of expenses to average net assets 1.00%A,
C

Ratio of net interest income to average net assets 4.16%A

Portfolio turnover 0%

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C>
AUGUST 21, 1995
(COMMENCEMENT
OF OPERATIONS) TO
OCTOBER 31,1995

SELECTED PER-SHARE DATA

Net asset value, beginning of period $ 10.000

Income from Investment Operations

Net interest income .074

Net realized and unrealized gain (loss) .390

Total from investment operations .464

Less Distributions

From net interest income (.074)

Net asset value, end of period $ 10.390

TOTAL RETURN B 4.65%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 1,161

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

Ratio of net interest income to average net assets 3.52%A

Portfolio turnover 0%

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C>
AUGUST 21, 1995
(COMMENCEMENT
OF OPERATIONS) TO
OCTOBER 31,1995

SELECTED PER-SHARE DATA

Net asset value, beginning of period $ 10.000

Income from Investment Operations

Net interest income $ .095

Net realized and unrealized gain (loss) .400

Total from investment operations .495

Less Distributions

From net interest income (.095)

Net asset value, end of period $ 10.400

TOTAL RETURN B 4.96%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 683

Ratio of expenses to average net assets 0.75%A,
C

Ratio of net interest income to average net assets 4.75%A

Portfolio turnover 0%

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C>
PERIOD ENDED
OCTOBER 31, 1995A

SHARES DOLLARS

CLASS A

Sold 194,544 $ 1,979,912

Reinvestment of dividends from net interest income 904 9,361

Redeemed - -

Net increase (decrease) 195,448 $ 1,989,273

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C>
CLASS B

Sold 111,132 $ 1,123,890

Reinvestment of dividends from net interest income 537 5,564

Redeemed - -

Net increase (decrease) 111,669 $ 1,129,454

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C>
INSTITUTIONAL CLASS

Sold 65,001 $ 650,032

Reinvestment of dividends from net interest income 602 6,188

Redeemed - -

Net increase (decrease) 65,603 $ 656,220

</TABLE>

A SHARE TRANSACTIONS FOR CLASS A, CLASS B AND INSTITUTIONAL CLASS ARE FOR
THE PERIOD AUGUST 21, 1995 (COMMENCEMENT OF SALE OF SHARES) TO OCTOBER 31,
1995.
REPORT OF INDEPENDENT ACCOUNTANTS

To the Trustees of Advisor Series V and the Shareholders of Advisor New
York Tax-Free Fund:
We have audited the accompanying statement of assets and liabilities of
Fidelity Advisor Series V: Fidelity Advisor New York Tax-Free Fund,
including the schedule of portfolio investments, as of October 31, 1995,
and the related statement of operations, the statement of changes in net
assets and the financial highlights for the period August 21, 1995
(commencement of operations) to October 31, 1995. These financial
statements and financial highlights are the responsibility of the fund's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of October 31, 1995 by correspondence with the
custodian and brokers. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that
our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position
of Fidelity Advisor Series V: Fidelity Advisor New York Tax-Free Fund as of
October 31, 1995, the results of its operations, the changes in its net
assets and the financial highlights for the period August 21, 1995
(commencement of operations) to October 31, 1995, in conformity with
generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
December 8, 1995
INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Arthur S. Loring, Secretary
Kenneth A. Rathgeber, 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
STATE TAX-EXEMPT FUNDS
Fidelity Advisor New York Tax-Free Fund
MONEY MARKET FUNDS
Daily Money Fund:
Money Market Portfolio
Daily Money Fund: U.S. Treasury Portfolio
Daily Tax-Exempt Money Fund
(REGISTERED TRADEMARK)