SUPPLEMENT TO THE PROSPECTUS
FIDELITY ADVISOR FUNDS
CLASS A, CLASS T, AND CLASS B
DATED AUGUST 30, 1996
Effective until September 30, 1996, the following replaces the
information found in the "Selling Shares in Writing" discussion in the "How
to Sell Shares" section on page 47.
(small solid bullet) If you purchased your shares through a bank
representative:
Fidelity Investments Institutional Operations Company
P.O. Box 1182
Boston, MA 02103-1182
Effective April 1, 1996 through September 30, 1996, the following
information supplements the discussion of sales charges and investment
professional concessions found in the "Transaction Details" section
beginning on page 52.
Investment professionals will receive full reallowance of the sales
charge paid on purchases of Class T shares of Advisor California
Municipal Income and Advisor New York Municipal Income.
Effective April 1, 1996 through September 30, 1996, the following
information supplements the second paragraph following the contingent
deferred sales charge schedules found in the "Transaction Details"
section on page 53.
Investment professionals with whom FDC has agreements will receive as
compensation from FDC a concession equal to 3.50% of your purchase of Class
B shares of Advisor California Municipal Income and Advisor New York
Municipal Income.
SUPPLEMENT TO THE FIDELITY ADVISOR INSTITUTIONAL CLASS PROSPECTUS
DATED FEBRUARY 26, 1996
Class A has been renamed "Class T" and a new class of shares (Class A)
will be available for purchase on or about September 3, 1996. In addition,
Fidelity Global Resources Fund has been renamed Fidelity Natural Resources
Fund.
The following information replaces the seventh paragraph on page 3 in the
"Who May Want to Invest" section.
Government Investment is designed for investors who seek high current
income from a portfolio of U.S. Government securities in a manner
consistent with preserving principal.
Intermediate Bond and Short Fixed-Income are designed for investors who
seek high current income from a portfolio of investment-grade debt
securities consistent with capital preservation.
The following information replaces the last paragraph beginning on page
3 in the "Who May Want to Invest" section.
Each fund is composed of multiple classes of shares. All classes of a fund
have a common investment objective and investment portfolio. Class A and
Class T shares have front-end sales charge and pay a distribution fee.
Class T shares may be subject to a contingent deferred sales charge (CDSC).
Natural Resources offers Class B shares which do not have a front-end sales
charge, but do have a CDSC, and pay a distribution fee and a shareholder
service fee. Because Institutional Class shares have no sales charge, and
do not pay a distribution fee or a shareholder service fee, Institutional
Class shares are expected to have a higher total return than Class A, Class
T, or Class B shares. You may obtain more information about Class A, Class
T, and Class B, which are not offered through this prospectus, by calling
1-800-843-3001 or from your investment professional.
The following information replaces the first paragraph and table in the
"Expenses" section on page 4.
SHAREHOLDER TRANSACTION EXPENSES are charges you pay when you buy, sell, or
hold Institutional Class shares of a fund.
Maximum sales charge on purchases and None
reinvested distributions
Maximum deferred sales None
charge
Redemption fee (except Natural Resources) None
Redemption fee for Natural Resources on shares held 1.00
less than 60 days[A] (as a % of amount redeemed) %
Exchange fee None
Annual account maintenance fee $12.0
(for accounts under $2500) 0
[A] NATURAL RESOURCES WILL CHARGE A REDEMPTION FEE ON SHARES
PURCH A SED ON OR AFTER M ARCH 1, 1997.
The following information replaces the similar information regarding Income
& Growth, Natural Resources, and Short Fixed-Income found in the
"Expenses" section beginning on page 4.
The following are based on historical expenses, adjusted for cu rrent
fees, of the Institutional Class of Income & Growth and Natural Resources,
and are calculated as a percentage of average net assets of the
Institutional Class of Income & Growth and Natural Resources, respectively.
A portion of the brokerage commissions that each fund paid was used to
reduce other expenses. Including this reduction, total operating expenses
would have been 0.94% and 1.17% for the Institutional Class of Income &
Growth and Natural Resources, respectively.
Operating Expenses
INCOME & GROWTH Management fee (after 0.46%[B
fee reduction) ]
12b-1 fee (Distribution None
fee)
Other expenses 0. 4 9%[A
]
Total operating 0 . 9 5%
expenses
Operating Expenses
NATURAL RESOURCES Management fee (after 0.61%[C
fee reduction) ]
12b-1 fee (Distribution None
fee)
Other expenses 0.58%[A
]
Total operating 1.19%
expenses
Operating Expenses
SHORT
Management fee 0.45%
FIXED-INCOME
12b-1 fee (Distribution None
fee)
Other expenses (after 0.30%[A
reimbursement) ]
Total operating 0.75%
expenses
[A] BASED ON ESTIMATED EXPENSES FOR FIRST YEAR.
[B] EFFECTIVE AUGUST 1, 1996 FMR VOLUNTARILY AGREED TO IMPLEMENT A
MANAGEMENT FEE REDUCTION. THE INDIVIDUAL FUND FEE RATE WAS REDUCED FROM
0.20% TO 0.15%. IF THIS AGREEMENT WAS NOT IN EFFECT, THE MANAGEMENT FEE
WOULD BE 0.51% AND TOTAL OPERATING EXPENSES WOULD BE 1.00% .
[C] EFFECTIVE SEPTEMBER 1, 1996 FMR VOLUNTARILY AGREED TO IMPLEMENT A
MANAGEMENT FEE REDUCTION. THE INDIVIDUAL FUND FEE RATE WAS REDUCED FROM
0.45% TO 0.30%. IF THIS AGREEMENT WAS NOT IN EFFECT, THE MANAGEMENT FEE
WOULD BE 0.76% AND TOTAL OPERATING EXPENSES WOULD BE 1.34%.
EXPENSE TABLE EXAMPLE: You would pay the following expenses on a $1,000
investment in Institutional Class shares, assuming a 5% annual return and
full redemption at the end of each time period:
Examples
INCOME & GROWTH After 1 year $1 0
After 3 $ 3 0
years
After 5 $ 53
years
After 10 $11 7
years
Examples
NATURAL RESOURCES After 1 year $12
After 3 $38
years
After 5 $65
years
After 10 $144
years
Examples
SHORT FIXED-INCOME After 1 year $8
After 3 $24
years
After 5 $42
years
After 10 $94
years
THESE EXAMPLES ILLUSTRATE THE EFFECT OF EXPENSES, BUT ARE NOT MEANT TO
SUGGEST ACTUAL OR EXPECTED COSTS OR RETURNS, ALL OF WHICH MAY VARY.
Effective October 30, 1995, FMR has voluntarily agreed to reimburse the
Institutional Class of Income & Growth to the extent that total operating
expenses as a percentage of the fund's average net assets exceed 1.25%.
Effective August 30, 1996, FMR has voluntarily agreed to reimburse the
Institutional Class of Natural Resources and Short Fixed-Income to the
extent that total operating expenses as a percentage of each fund's average
net assets exceed 1.50% and 0.75%, respectively. If this agreement were not
in effect, other expenses of the Institutional Class as a percentage of
average net assets would be 0.53% for Short Fixed-Income.
The following information replaces the third paragraph under the heading
"FMR and Affiliates" in the "Charter" section on page 20.
As of June 30, 1996, FMR advised funds having approximately 26 million
shareholder accounts with a total value of more than $394 billion.
C. Robert Chow is manager of Advisor Equity Income, which he has managed
since March 1996. Previously, he managed Select Paper and Forest Products,
Select Computers, and Select Insurance. In addition, he was an equity
analyst covering consumer finance and household products. Mr. Chow joined
Fidelity in 1989.
Bettina E. Doulton is lead manager and vice president of Advisor Income &
Growth, which she has managed since March 1996. Ms. Doulton also manages
Advisor Annuity Income & Growth, and Puritan(registered trademark).
Previously, she managed Advisor Equity Income, VIP Equity-Income, Value,
Select Automotive, and was an assistant to Peter Lynch on
Magellan(registered trademark). Ms. Doulton also served as an analyst
following the automotive and tire industry as well as the gaming and
lodging industry. Ms. Doulton joined Fidelity in 1986.
Stephen Du F our is manager of Advisor Natural Resources, which
he has managed since August 1996. He also manages several other Fidelity
funds. Previously, Mr. Du F our managed other funds and was an
analyst. Prior to joining Fidelity in 1992, Mr. Du F our earned an MBA
in finance from the University of Chicago.
Kevin E. Grant is vice president of Advisor Income & Growth and has been
manager of its fixed-income investments since March 1996. Mr. Grant is also
vice president and manager of Advisor Intermediate Bond, and manager of
Advisor Strategic Income's U.S. government and domestic investment grade
investments. In addition, he manages the fixed-income investments of
Puritan. Mr. Grant also manages Advisor World Limited Term Bond, Spartan
Ginnie Mae, Ginnie Mae, and Mortgage Securities. Previously, he was vice
president and chief strategist for mortgage-backed securities at Morgan
Stanley and an investment director at Aetna. Mr. Grant joined Fidelity in
1993.
Lawrence Greenberg is vice president and manager of Advisor Equity Growth,
which he has managed since June 1996. Mr. Greenberg also manages
VIP:Growth, Growth Company, and Emerging Growth. Mr. Greenberg joined
Fidelity in 1986.
Harris B. Leviton is vice president and manager of Advisor Strategic
Opportunities, which he has managed since March 1996. Previously, he
managed Retirement Growth, Select Electronics, and Convertible Securities.
Mr. Leviton joined Fidelity in 1986.
Richard Mace, Jr. is vice president and manager of Advisor Overseas, which
he has managed since March 1996. Mr. Mace also manages International Value,
Global Balanced, Overseas, Advisor Annuity Overseas, and VIP Overseas.
Previously, he managed International Growth & Income, Select
Transportation, Select Industrial Materials, and Select Chemicals.
Additionally, between 1992 and 1993, he co-managed Equity-Income and Global
Balanced. Mr. Mace joined Fidelity in 1987.
Thomas Sprague is manager of Advisor Large Cap, which he has managed since
March 1996. Mr. Sprague also manages Large Cap Stock, Trust Earnings
Growth, and Advisor World U.S. Large Cap. Previously, he managed Select
Environmental Services, Select Electronics, Select Software, and Select
Computer Services. Mr. Sprague joined Fidelity in 1989.
The following information replaces the second and third paragraphs on
page 23 under the heading "Global Resources Fund" in the "Investment and
Principles and Risks" section.
The fund, under normal conditions, will invest at least 65% of its total
assets in securities of foreign and domestic companies that own or develop
natural resources, or supply goods and services to such companies, or in
physical commodities. These may include companies involved either directly
or through subsidiaries in exploring, mining, refining, processing,
transporting, fabricating, dealing in, or owning natural resources. Natural
resources include precious metals (e.g., gold, platinum and silver),
ferrous and nonferrous metals (e.g., iron, aluminum and copper), strategic
metals (e.g., uranium and titanium), hydrocarbons (e.g., coal, oil and
natural gases), chemicals, forest products, real estate, food products and
other basic commodities. FMR will seek securities whose prices directly
reflect positive changes in the value of an underlying natural resource or
whose issuers will benefit from particular phases in the overall economic
cycle. Accordingly, the fund may shift its emphasis from one natural
resource industry to another depending on prevailing trends or
developments. The fund may also invest in securities of companies in other
industries, and in corporate and governmental debt securities of all
types.
The following information replaces the two paragraphs under the heading
"Income & Growth Fund" in the "Investment Principles and Risks" section on
page 24.
INCOME & GROWTH FUND seeks both income and growth of capital by investing
in a diversified portfolio of equity and fixed-income securities with
income, growth of income and capital appreciation potential.
FMR manages the fund to maintain a balance between stocks and bonds. When
FMR's outlook is neutral, it will invest approximately 60% of the fund's
assets in stocks and other equity securities and the remainder in bonds and
other fixed-income securities. FMR may vary from this target if it believes
stocks or bonds offer more favorable opportunities, but will always invest
at least 25% of the fund's total assets in fixed-income senior securities
(including debt securities and preferred stock).
The fund invests in equity securities, convertible securities, common and
preferred stocks, and fixed-income securities that provide income or
opportunities for capital growth. The fund may buy securities that are not
currently paying income but offer prospects for future income. The fund may
invest in securities of foreign issuers. In selecting investments for the
fund, FMR will consider such factors as the issuer's financial strength,
its outlook for increased dividend or interest payments, and the potential
for capital gains.
The following information replaces the second paragraph on page 25 under
the heading "Government Investment Fund" in the "Investment Principles and
Risks" section.
The fund normally invests only in U.S. Government securities, repurchase
agreements and other instruments related to U.S. Government securities.
Under normal conditions, the fund will invest at least 65% of its total
assets in U.S. Government securities and repurchase agreements for U.S.
Government securities. Other instruments may include futures or options on
U.S. Government securities or interests in U.S. Government securities that
have been repackaged by dealers or other third parties.
The following information replaces the second paragraph on page 26 under
the heading "Intermediate Municipal Income Fund" in the "Investment
Principles and Risks" section.
The fund normally invests at least 80% of its net assets in securities
whose interest is free from federal income tax. The fund normally invests
in municipal obligations rated investment-grade or higher. The fund may
also invest more than 25% of its total assets in tax-free securities whose
revenue sources are from similar types of projects (e.g., education,
electric utilities, health care, housing, transportation or water, sewer,
and gas utilities) or whose issuers share the same geographic location. The
fund may, under normal conditions, invest up to 100% of its assets in
municipal securities subject to the federal alternative minimum tax.
The following information replaces the second paragraph on page 26 under
the heading "California Municipal Income Fund" in the "Investment
Principles and Risks" section.
The fund normally invests at least 80% of its net assets in securities
whose interest is free from federal and California income taxes. The fund
normally invests in municipal securities of investment-grade quality. The
fund may, under normal conditions, invest up to 100% of its assets in
municipal securities subject to the federal alternative minimum tax.
The following information replaces the second paragraph on page 26 under
the heading "New York Municipal Income Fund" in the "Investment Principles
and Risks" section.
The fund normally invests at least 80% of its net assets in securities
whose interest is free from federal and New York State and City personal
income taxes. The fund normally invests in municipal securities of
investment-grade quality. The fund may, under normal conditions, invest up
to 100% of its assets in municipal securities subject to the federal
alternative minimum tax.
The following information replaces the information found in the
RESTRICTIONS subsection beginning on page 27 under the heading "Debt
Securities" (found on page 27) in the "Securities and Investment Practices"
section.
For all of the Equity Funds, purchase of a debt security is consistent with
a fund's debt quality policy if it is rated at or above the stated level
by Moody's Investor Service (Moody's) or rated in the equivalent categories
by Standard & Poor's (S&P), or is unrated but judged to be of
equivalent quality by FMR.
Natural Resources currently intends to limit its investment in lower
than Baa-quality debt securities to less than 35% of its assets and
currently intends to limit its investments in debt securities to
Caa-quality and above.
Each of Overseas, Mid Cap, Equity Growth, Growth Opportunities, Strategic
Opportunities, Large Cap, Equity Income, and Income & Growth currently
intends to limit its investments in lower than Baa-quality debt securities
to less than 35% of its assets.
Each of Short Fixed-Income, Intermediate Municipal Income,
Short-Intermediate Municipal Income, California Municipal Income, and New
York Municipal Income normally invests only in investment-grade securities,
but reserves the right to invest up to 5% of its assets in below
investment-grade securities. A security is considered to be
investment-grade if it is rated investment-grade by Moody's, S&P, Duff &
Phelps Credit Rating Co. (Duff & Phelps), or Fitch Investors Service, L.P.
(Fitch), or is unrated but judged by FMR to be of equivalent quality.
Intermediate Bond invests only in investment-grade securities, and will
limit its investments in medium quality securities to 5% of its assets. A
security is considered to be investment-grade or medium quality if it is
rated investment-grade or medium quality, respectively, by Moody's ,
S&P, Duff & Phelps, or F itch, or is unrated but judged by FMR to be of
equivalent quality.
High Income Municipal does not currently intend to invest more than 10% of
its total assets in bonds that are in default.
The following information replaces the similar information regarding Income
& Growth and Natural Resources found in the table in the "Breakdown
of Expenses" section on page 33.
Group Individual Total
Fee Rate Fund Fee Manageme
Rate nt Fee
Income & Growth 0.31% 0.20%[ E 0.51%
] [ E ]
Natural Resources 0.31% 0.45%[ F 0.76%
] [ F ]
[ E ] EFFECTIVE AUGUST 1, 1996 FMR VOLUNTARILY AGREED TO REDUCE THE
FUND'S INDIVIDUAL FUND FEE RATE FROM 0.20% TO 0.15%. IF THIS
REDUCTION WERE IN EFFECT, THE TOTAL FEE WOULD HAVE BEEN 0.46%.
[F] EFFECTIVE SEPTEMBER 1, 1996 FMR VOLUNTARILY AGREED TO REDUCE THE FUND'S
INDIVIDUAL FUND FEE RATE FROM 0.45% TO 0.30%. IF THIS REDUCTION WERE IN
EFFECT, THE TOTAL FEE WOULD HAVE BEEN 0.61%.
The following information supplements the first paragraph of the "How to
Sell Shares" section on page 37.
I f you sell your shares of Natural Resources after holding them less
than 60 days, you will pay a redemption fee equal to 1.00% of the value of
those shares. Natural Resources will charge a redemption fee on shares
p urchased on or after March 1, 1997.
Effective September 30, 1996, the following information replaces the
similar information under the heading "Selling Shares in Writing" in the
"How to Sell Shares" section on page 37.
Deliver your letter to your investment professional, or mail it to the
following address:
Fidelity Investments
P.O. Box 770002
Cincinnati, OH 45277-0081
The following information replaces the second paragraph under the heading
"Exchange privilege" in the "Investor Services" section on page 39.
Note that exchanges out of a fund are limited to four per calendar year
(although exchanges out of Natural Resources are unlimited) and that they
may have tax consequences for you. For details on policies and restrictions
governing exchanges, including circumstances under which a shareholder's
exchange privilege may be suspended or revoked, see "Exchange
Restrictions," page 43.
The following information replaces the fourth paragraph of the
"Transaction Details" section beginning o n page 41.
The OFFERING PRICE (price to buy one share) of Institutional Class
s hares is the NAV. The REDEMPTION PRICE (price to sell one
share) of Institutional Class s hares is the NAV minus any
applicab le re demption fee.
The following information supplements the "When you place an order to
sell shares" discussion in the "Transaction Details" section on page 42.
NATURAL RESOURCES REDEMPTION FEE, if applicable, of 1.00% for shares
held less than 60 days, will be deducted from the amount of your
redemption. This fee is paid to the fund rather than FMR. If shares you are
redeeming were not all held for the same length of time, those shares you
held longest will be redeemed first for purposes of determ ining the
applicable fee.
The following replaces the sixth bullet in the "Exchange Restrictions"
section on page 43.
(small solid bullet) Because excessive trading can hurt fund performance
and shareholders, each fund reserves the right to temporarily or
permanently terminate the exchange privilege of any investor who makes more
than four exchanges out of the fund per calendar year. Exchanges out of
Natural Resources are unlimited, although the fund reserves the right to
enact limitations in the future. Accounts under common ownership or
control, including accounts with the same taxpayer identification number,
will be counted together for purposes of the four exchange limit.
The following information supplements the information found in the
"Exchange Restrictions" section on page 43.
(small solid bullet) Each fund reserves the right to reject exchange
purchases in excess of 1% of its net assets or $1 million, whichever is
less. For purposes of this policy, accounts under common ownership will be
aggregated.
