FIDELITY ADVISOR SERIES V, N-30D, 1996-06-26

FIDELITY ADVISOR SERIES V
N-30D, 1996-06-26

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(2_FIDELITY_LOGOS)FIDELITY ADVISOR
(registered trademark)

HIGH INCOME MUNICIPAL
FUND - CLASS A AND CLASS B
SEMIANNUAL REPORT
APRIL 30, 1996
CONTENTS

PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.

PERFORMANCE 4 How the fund has done over time.

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

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

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

FINANCIAL STATEMENTS 30 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.

NOTES 36 Notes to the financial statements.

THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL
INFORMATION OF THE SHAREHOLDERS OF THE FUND. THIS REPORT IS NOT AUTHORIZED
FOR DISTRIBUTION TO
PROSPECTIVE INVESTORS IN THE FUND UNLESS PRECEDED OR ACCOMPANIED BY AN
EFFECTIVE
PROSPECTUS.
MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED BY,
ANY DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE FDIC,
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 stocks have managed to post solid returns through the first four
months of 1996, signs of strength in the economy have led to inflation
fears, causing some uncertainty in bond markets so far this year. In 1995,
both stock and bond markets posted strong results, while the year before,
stocks posted below-average returns and bonds had one of the worst years in
history.
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 0.60% 6.63% 42.88% 113.52%

Advisor High Income Municipal - Class A -2.92% 2.90% 37.88% 106.04%
(incl. max. 3.50% sales charge)

Lehman Brothers Municipal Bond Index 1.11% 7.95% 45.09% n/a

High-Yield Municipal Debt Funds Average 1.06% 6.91% 42.21% n/a

CUMULATIVE TOTAL RETURNS show Class A's performance in percentage terms
over a set period - in this case, six months, one year, five years, or
since the fund started on September 16, 1987. For example, if you had
invested $1,000 in a fund that had a 5% return over the past year, the
value of your investment would be $1,050. You can compare Class A's returns
to those of the Lehman Brothers Municipal Bond Index, which reflects the
performance of the investment-grade municipal bond market. To measure how
Class A's performance stacked up against its peers, you can compare it to
the high-yield municipal debt funds average, which reflects the performance
of 44 high-yield municipal debt funds with similar objectives tracked by
Lipper Analytical Services over the past six months. These benchmarks
include reinvested dividends and capital gains, if any, and exclude the
effects of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED APRIL 30, 1996 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

Advisor High Income Municipal - Class A 6.63% 7.40% 9.19%

Advisor High Income Municipal - Class A 2.90% 6.64% 8.74%
(incl. max. 3.50% sales charge)

Lehman Brothers Municipal Bond Index 7.95% 7.73% n/a

High Yield Municipal Debt Funds Average 6.91% 7.28% 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
IMAHDR PRASUN SHR__CHT 19960430 19960524 160542 S00000000000001
FA High Inc. Muni Cl A Lehman Bros. Muni Bond
00220 LB015
1987/09/30 9650.00 10000.00
1987/10/31 9681.25 10035.40
1987/11/30 9845.49 10297.42
1987/12/31 10014.15 10446.84
1988/01/31 10382.45 10818.96
1988/02/29 10497.60 10933.31
1988/03/31 10375.89 10805.94
1988/04/30 10426.79 10888.06
1988/05/31 10478.97 10856.60
1988/06/30 10674.23 11015.43
1988/07/31 10708.22 11087.25
1988/08/31 10744.75 11097.01
1988/09/30 10908.51 11297.86
1988/10/31 11057.55 11497.27
1988/11/30 11069.50 11391.96
1988/12/31 11196.10 11508.50
1989/01/31 11337.08 11746.49
1989/02/28 11348.45 11612.46
1989/03/31 11435.78 11584.71
1989/04/30 11697.12 11859.73
1989/05/31 11888.22 12106.06
1989/06/30 12024.38 12270.46
1989/07/31 12129.87 12437.46
1989/08/31 12223.70 12315.70
1989/09/30 12260.56 12279.00
1989/10/31 12390.00 12429.17
1989/11/30 12542.53 12646.68
1989/12/31 12661.78 12750.13
1990/01/31 12681.76 12689.82
1990/02/28 12772.64 12803.39
1990/03/31 12852.77 12807.23
1990/04/30 12735.22 12714.51
1990/05/31 12996.20 12992.07
1990/06/30 13149.32 13106.27
1990/07/31 13352.13 13299.59
1990/08/31 13262.04 13106.48
1990/09/30 13356.34 13113.95
1990/10/31 13539.71 13351.83
1990/11/30 13875.67 13620.34
1990/12/31 13964.19 13679.59
1991/01/31 14126.71 13863.17
1991/02/28 14235.33 13983.78
1991/03/31 14319.02 13988.81
1991/04/30 14552.17 14175.56
1991/05/31 14732.05 14301.58
1991/06/30 14766.34 14287.42
1991/07/31 14957.27 14461.44
1991/08/31 15092.35 14651.90
1991/09/30 15269.37 14842.67
1991/10/31 15438.57 14976.25
1991/11/30 15496.65 15018.04
1991/12/31 15665.19 15340.32
1992/01/31 15838.84 15375.30
1992/02/29 15924.89 15380.22
1992/03/31 16004.78 15385.91
1992/04/30 16149.22 15522.85
1992/05/31 16294.10 15705.55
1992/06/30 16517.52 15969.09
1992/07/31 17092.67 16447.84
1992/08/31 16960.31 16287.48
1992/09/30 17066.16 16394.00
1992/10/31 16860.20 16232.84
1992/11/30 17198.11 16523.57
1992/12/31 17405.46 16692.28
1993/01/31 17699.87 16886.41
1993/02/28 18324.87 17497.19
1993/03/31 18133.74 17312.25
1993/04/30 18326.04 17486.93
1993/05/31 18477.80 17585.20
1993/06/30 18774.05 17878.70
1993/07/31 18787.99 17902.12
1993/08/31 19271.89 18274.84
1993/09/30 19538.76 18482.99
1993/10/31 19549.24 18518.67
1993/11/30 19358.19 18355.52
1993/12/31 19805.20 18743.00
1994/01/31 20035.82 18957.05
1994/02/28 19506.27 18466.06
1994/03/31 18466.52 17714.12
1994/04/30 18589.05 17864.34
1994/05/31 18698.98 18019.22
1994/06/30 18630.14 17909.12
1994/07/31 18966.20 18237.40
1994/08/31 18995.99 18300.50
1994/09/30 18698.42 18031.85
1994/10/31 18370.64 17711.60
1994/11/30 17780.02 17391.38
1994/12/31 18210.95 17774.16
1995/01/31 18826.16 18282.15
1995/02/28 19333.41 18813.79
1995/03/31 19435.06 19029.96
1995/04/30 19498.94 19052.42
1995/05/31 20122.93 19660.38
1995/06/30 19965.07 19488.35
1995/07/31 20030.12 19673.10
1995/08/31 20232.75 19922.56
1995/09/30 20395.91 20048.66
1995/10/31 20667.41 20340.17
1995/11/30 21057.49 20677.62
1995/12/31 21243.42 20876.33
1996/01/31 21359.29 21033.94
1996/02/29 21326.21 20891.96
1996/03/31 20875.60 20624.97
1996/04/30 20792.20 20566.60
IMATRL PRASUN SHR__CHT 19960430 19960524 160544 R00000000000056

$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 current maximum 3.50% sales charge. As
the chart shows, by April 30, 1996, the value of your investment would have
grown to $20,792 - a 107.92% 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 $20,567 - a 105.67% increase.
UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. Bond prices, for
example, generally move in
the opposite direction of
interest rates. In turn, the
share price, return, and yield
of a fund that invests in
bonds will vary. That means if
you sell your shares during a
market downturn, you might
lose money. But if you can
ride out the market's ups and
downs, you may have a gain.
(checkmark)
TOTAL RETURN COMPONENTS
SIX YEARS ENDED OCTOBER 31,
MONTHS
ENDED
APRIL 30,

1996 1995 1994 1993 1992 1991

Dividend return 2.70% 6.62% 5.27% 6.49% 7.01% 7.89%

Capital appreciation -2.10% 5.88% -11.30% 9.46% 2.20% 6.13%
return

Total return 0.60% 12.50% -6.03% 15.95% 9.21% 14.02%

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 APRIL 30, 1996 PAST PAST 6 PAST 1
MONTH MONTHS YEAR

Dividends per share 5.31(cents) 32.66(cents) 67.07(cents)

Annualized dividend rate 5.56% 5.49% 5.66%

30-day annualized yield 5.40% - -

30-day annualized tax-equivalent yield 8.44% - -

</TABLE>

DIVIDENDS per share show the income paid by the class for a set period. If
you annualize this number, based on an average net asset value of $11.63
over the past month, $11.94 over the past six months and $11.85 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 current maximum 3.50% 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 class' total return
includes changes in share price, plus reinvestment of any dividends (or
income) and capital gains (the profits the fund earns when it sells
securities that have grown in value). You can also look at income to
measure performance. The initial offering of Class B shares took place on
June 30, 1994. Class B shares bear a 0.90% 12b-1/shareholder service fee
(1.00% prior to January 1, 1996.) Returns prior to June 30, 1994 are those
of Class A, the original class of the fund, and reflect Class A's 0.25%
12b-1 fee. Had Class B's 12b-1 fee been reflected, returns prior to June
30, 1994 would have been lower. Class B's contingent deferred sales charges
included in the past six months, past one year, past five years and life
of fund total return figures are 4%, 4%, 1% and 0%, respectively. 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.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
CUMULATIVE TOTAL RETURNS
PERIODS ENDED APRIL 30, 1996 PAST 6 PAST 1 PAST 5 LIFE OF
MONTHS YEAR YEARS FUND

Advisor High Income Municipal - Class 0.26% 5.88% 40.53% 110.00%
B

Advisor High Income Municipal - Class -3.65% 1.88% 39.53% 110.00%
B
(incl. contingent deferred sales charge)

Lehman Brothers Municipal Bond Index 1.11% 7.95% 45.09% n/a

High-Yield Municipal Debt Funds 1.06% 6.91% 42.21% n/a
Average
</TABLE>
CUMULATIVE TOTAL RETURNS show Class B's performance in percentage terms
over a set period - in this case, six months, one year, five years, or
since the fund started on September 16, 1987. For example, if you had
invested $1,000 in a fund that had a 5% return over the past year, the
value of your investment would be $1,050. You can compare Class B's returns
to those of the Lehman Brothers Municipal Bond Index, which reflects the
performance of the investment-grade municipal bond market. To measure how
Class B's performance stacked up against its peers, you can compare it to
the high-yield municipal debt funds average, which reflects the performance
of 44 high-yield municipal debt funds with similar objectives tracked by
Lipper Analytical Services over the past six months. These benchmarks
include reinvested dividends and capital gains, if any, and exclude the
effects of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED APRIL 30, 1996 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

Advisor High Income Municipal - Class 5.88% 7.04% 8.98%
B

Advisor High Income Municipal - Class B 1.88% 6.89% 8.98%
(incl. contingent deferred sales charge)

Lehman Brothers Municipal Bond Index 7.95% 7.73% n/a

High-Yield Municipal Debt Funds 6.91% 7.28% n/a
Average

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
IMAHDR PRASUN SHR__CHT 19960430 19960524 160542 S00000000000001
FA High Inc. Muni Cl B Lehman Bros. Muni Bond
00669 LB015
1987/09/30 10000.00 10000.00
1987/10/31 10032.38 10035.40
1987/11/30 10202.58 10297.42
1987/12/31 10377.36 10446.84
1988/01/31 10759.02 10818.96
1988/02/29 10878.35 10933.31
1988/03/31 10752.21 10805.94
1988/04/30 10804.96 10888.06
1988/05/31 10859.03 10856.60
1988/06/30 11061.37 11015.43
1988/07/31 11096.60 11087.25
1988/08/31 11134.46 11097.01
1988/09/30 11304.15 11297.86
1988/10/31 11458.60 11497.27
1988/11/30 11470.98 11391.96
1988/12/31 11602.17 11508.50
1989/01/31 11748.27 11746.49
1989/02/28 11760.05 11612.46
1989/03/31 11850.55 11584.71
1989/04/30 12121.36 11859.73
1989/05/31 12319.40 12106.06
1989/06/30 12460.50 12270.46
1989/07/31 12569.81 12437.46
1989/08/31 12667.04 12315.70
1989/09/30 12705.24 12279.00
1989/10/31 12839.38 12429.17
1989/11/30 12997.44 12646.68
1989/12/31 13121.01 12750.13
1990/01/31 13141.72 12689.82
1990/02/28 13235.90 12803.39
1990/03/31 13318.94 12807.23
1990/04/30 13197.12 12714.51
1990/05/31 13467.56 12992.07
1990/06/30 13626.24 13106.27
1990/07/31 13836.41 13299.59
1990/08/31 13743.04 13106.48
1990/09/30 13840.77 13113.95
1990/10/31 14030.79 13351.83
1990/11/30 14378.93 13620.34
1990/12/31 14470.66 13679.59
1991/01/31 14639.07 13863.17
1991/02/28 14751.63 13983.78
1991/03/31 14838.36 13988.81
1991/04/30 15079.97 14175.56
1991/05/31 15266.37 14301.58
1991/06/30 15301.90 14287.42
1991/07/31 15499.76 14461.44
1991/08/31 15639.74 14651.90
1991/09/30 15823.19 14842.67
1991/10/31 15998.52 14976.25
1991/11/30 16058.70 15018.04
1991/12/31 16233.36 15340.32
1992/01/31 16413.30 15375.30
1992/02/29 16502.47 15380.22
1992/03/31 16585.27 15385.91
1992/04/30 16734.95 15522.85
1992/05/31 16885.07 15705.55
1992/06/30 17116.60 15969.09
1992/07/31 17712.61 16447.84
1992/08/31 17575.45 16287.48
1992/09/30 17685.14 16394.00
1992/10/31 17471.71 16232.84
1992/11/30 17821.88 16523.57
1992/12/31 18036.75 16692.28
1993/01/31 18341.83 16886.41
1993/02/28 18989.50 17497.19
1993/03/31 18791.44 17312.25
1993/04/30 18990.71 17486.93
1993/05/31 19147.98 17585.20
1993/06/30 19454.97 17878.70
1993/07/31 19469.42 17902.12
1993/08/31 19970.87 18274.84
1993/09/30 20247.42 18482.99
1993/10/31 20258.28 18518.67
1993/11/30 20060.30 18355.52
1993/12/31 20523.52 18743.00
1994/01/31 20762.50 18957.05
1994/02/28 20213.75 18466.06
1994/03/31 19136.29 17714.12
1994/04/30 19263.27 17864.34
1994/05/31 19377.19 18019.22
1994/06/30 19305.84 17909.12
1994/07/31 19629.10 18237.40
1994/08/31 19660.37 18300.50
1994/09/30 19334.36 18031.85
1994/10/31 18946.77 17711.60
1994/11/30 18325.24 17391.38
1994/12/31 18774.81 17774.16
1995/01/31 19379.82 18282.15
1995/02/28 19889.67 18813.79
1995/03/31 19981.48 19029.96
1995/04/30 20016.92 19052.42
1995/05/31 20645.55 19660.38
1995/06/30 20470.12 19488.35
1995/07/31 20523.68 19673.10
1995/08/31 20718.46 19922.56
1995/09/30 20873.24 20048.66
1995/10/31 21139.12 20340.17
1995/11/30 21526.26 20677.62
1995/12/31 21703.52 20876.33
1996/01/31 21810.78 21033.94
1996/02/29 21765.60 20891.96
1996/03/31 21292.92 20624.97
1996/04/30 21194.66 20566.60
IMATRL PRASUN SHR__CHT 19960430 19960522 160544 R00000000000056

$10,000 OVER LIFE OF FUND: Let's say you invested $10,000 in Fidelity
Advisor High Income Municipal Fund - Class B on September 30, 1987, shortly
after the fund started. As the chart shows, by April 30, 1996, the value of
your investment would have grown to $21,191 - a 111.91% 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 $20,567 - a 105.67% increase.
UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. Bond prices, for
example, generally move in
the opposite direction of
interest rates. In turn, the
share price, return, and yield of
a fund that invests in bonds
will vary. That means if you
sell your shares during a
market downturn, you might
lose money. But if you can ride
out the market's ups and
downs, you may have
a gain.
(checkmark)
TOTAL RETURN COMPONENTS
SIX YEARS ENDED OCTOBER 31,
MONTHS
ENDED
APRIL 30,

1996 1995 1994 1993 1992 1991

Dividend return 2.37% 5.77% 4.89% 6.49% 7.01% 7.89%

Capital appreciation -2.11% 5.80% -11.38% 9.46% 2.20% 6.13%
return

Total return 0.26% 11.57% -6.49% 15.95% 9.21% 14.02%

<TABLE>
<CAPTION>
<S> <C> <C> <C>
PERIODS ENDED APRIL 30, 1996 PAST PAST 6 PAST 1
MONTH MONTHS YEAR

Dividends per share 4.60(cents) 28.58(cents) 58.57(cents)

Annualized dividend rate 4.82% 4.81% 4.96%

30-day annualized yield 4.83% - -

30-day annualized tax-equivalent yield 7.55% - -

</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 $11.61
over the past month, $11.92 over the past six months, and $11.82 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

An interview with Tanya Roy, Portfolio Manager of Fidelity Advisor High
Income Municipal Fund
Q. HOW DID THE FUND PERFORM, TANYA?
A. As of April 30, 1996, the fund's Class A and Class B shares had a total
return of 0.60% and 0.26%, respectively, for the past six months and 6.63%
and 5.88%, respectively, for the past year. For the same periods, the
Lipper high-yield municipal debt funds average was 1.06% and 6.91%,
respectively. Additionally, the Lehman Brothers Municipal Bond Index
returned 1.11% for the past six months and 7.95% for the past year.
Q. WHY DID THE FUND UNDERPERFORM ITS PEERS?
A. The fund's performance was hurt by its interest in the Ford Heights,
Illinois incinerator project. In March, the governor of Illinois signed a
bill that repealed a tax subsidy supporting three incinerator projects in
the state, including Ford Heights. Ford Heights later entered bankruptcy
proceedings. Fidelity is currently devoting significant efforts to maximize
shareholder value.
Q. LOOKING AT THE GENERAL MARKET, WHAT'S HAPPENED IN THE PAST SIX MONTHS?
A. Bond prices have fallen and their yields have risen in response to
reports indicating surprising strength in the economy. Investors often
worry that a strong economy indicates the potential for inflation, which
erodes the value of fixed-income investments. For the municipal bond
market, however, performance relative to the U.S. Treasury market has been
favorable because of fading fears of radical tax reform and healthy demand
from certain market participants, including insurance companies. To get a
sense of relative performance, it's worth examining the ratio of municipal
yields to Treasury yields - expressed in percentage terms. A move from a
higher percentage (where municipals are less expensive) to a lower
percentage (where municipals are more expensive) indicates municipal bonds
have outperformed Treasuries. Six months ago, the ratio for 30-year bonds
stood at about 88%; today, it stands at about 82%.
Q. WHAT HAPPENED IN THE HIGH-YIELD MUNICIPAL MARKET?
A. It has performed relatively well. The difference in yield - or spread -
between high-yield and investment-grade municipal bonds has tightened,
illustrating good relative performance. A combination of factors has led to
the relative outperformance of high-yield versus investment-grade bonds.
First, high yield bonds tend to be less interest rate sensitive than higher
quality municipals. Therefore, during the period, their yields rose and
their prices declined less than the yields and prices of investment-grade
bonds. Second, new issuance was relatively muted in the high-yield sector,
leading to more demand than supply. Finally, we saw improved financial
performance in some sectors of the high-yield universe, which helped the
bonds' relative performance.
Q. WERE THERE ANY AREAS OF THE HIGH-YIELD MARKET THAT DID NOT PERFORM WELL?
A. One sector that underperformed recently was resource recovery projects
involved in recycling paper into pulp. Pulp and paper prices fell
dramatically in the past six months, which led to reduced financial
flexibility for some of these projects. As a result, many resource recovery
bonds issued to finance construction and start-up operations came under
pressure in the market and their prices declined more than the overall
high-yield market.
Q. WHAT ABOUT HOSPITAL BONDS?
A. Hospital bonds have performed in line with the general market. We
continued to see a wide range of credit developments, which reflects the
ongoing changes in the industry. One positive situation for the fund
involved Denver hospital HealthOne, which enjoyed strong gains when it
announced a merger. Subsequently, in what is known as a tender offer, the
issuer offered to exchange existing bonds for cash or new securities.
Q. HOW WOULD YOU DESCRIBE THE FUND'S ASSET ALLOCATION BY MATURITY?
A. The increase in the fund's holdings in the 10- to 15- year maturity area
reflects a modest reallocation to better match the interest rate
sensitivity of the fund's benchmark index.
Q. TANYA, WE UNDERSTAND THAT THERE WILL BE A CHANGE IN THE FUND'S
INVESTMENT POLICIES . . .
A. Yes, there will. As of June 24, the fund will adopt a policy that
limits its investments in defaulted securities to 10%. Previously, the
fund had no limit on its ability to invest in defaulted securities. We
believe a 10% limit - bringing the fund in line with the quality policies
of Fidelity's other aggressive municipal funds - will provide the fund with
sufficient flexibility to invest in these types of securities.
Q. WHAT'S YOUR OUTLOOK?
A. The issue of tax reform - while faded from view at the moment - is not
dead and will probably receive renewed attention as this presidential
election year progresses. Should tax reform emerge as an issue in the
presidential campaign, it could lead to the underperformance of municipals
relative to Treasuries - similar to what occurred last year. High-yield
municipals, however, should continue to perform well given the relative
strength of the economy and the limited amount of bond issuance. I also
continue to believe that municipal bonds represent an attractive investment
choice in the context of a diversified portfolio.
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: seeks to provide a
high-current yield by
investing in a diversified
portfolio of municipal
obligations whose interest is
not included in gross income
for purposes of calculating
federal income tax
START DATE: September 16,
1987
SIZE: as of April 30, 1996,
more than $572 million
MANAGER: Tanya Roy, since
1995; municipal bond
analyst, 1989 to 1995; joined
Fidelity in 1989
(checkmark)
TANYA ROY ON SUPPLY
AND DEMAND IN THE MUNICIPAL
MARKET:
"Supply and demand forces
play an influential role in the
municipal market. Supply comes
in two forms: new bond sales
and refinancings (also called
refundings), in which issuers
typically replace existing bonds
with lower-cost debt. The
outlook for refunding volume is
highly sensitive to interest rate
levels and, therefore, is difficult
to predict. The modest growth
in new debt sales we've seen so
far in 1996 reflects several
trends: tighter fiscal
management by municipal
governments; industry
consolidation, particularly among
hospitals and electric utilities;
and heightened sensitivity of
taxpayers to government
costs. The continuation of these
trends could mean a relatively
small increase in new issuance
for the remainder of the year,
although we could see brief
periods of concentrated supply.
"Demand is derived from
individuals, mutual funds,
insurance companies, banks
and other sources, and changes
depending on circumstances.
For example, individual investor
demand generally decreases
when interest rates are low, or
when other investments, such
as stocks, provide competitive
returns. Higher interest rates or
a correction in the stock market
could bring higher demand for
municipals. However, the
ongoing issue of tax reform -
which has caused some
investors to worry that
municipals could lose their
tax-free advantage - could be
an offsetting factor."
INVESTMENT CHANGES

TOP FIVE STATES AS OF APRIL 30, 1996
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE STATES
6 MONTHS AGO

New York 11.4 10.5

Pennsylvania 7.8 9.1

California 7.0 6.8

Michigan 6.4 8.6

Ohio 6.0 4.3

TOP FIVE SECTORS AS OF APRIL 30, 1996
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE SECTORS
6 MONTHS AGO

Health Care 24.9 27.6

Industrial Development 20.2 22.2

General Obligation 16.5 4.1

Electric Revenue 12.6 10.2

Transportation 6.5 7.9

AVERAGE YEARS TO MATURITY AS OF APRIL 30, 1996
6 MONTHS AGO

Years 17.2 18.4

AVERAGE YEARS TO MATURITY IS BASED ON THE AVERAGE TIME UNTIL PRINCIPAL
PAYMENTS ARE EXPECTED FROM EACH OF THE FUND'S BONDS, WEIGHTED BY DOLLAR
AMOUNT.
DURATION AS OF APRIL 30, 1996
6 MONTHS AGO

Years 7.2 7.7

Aaa 14.4%
Aa, A 14.7%
Baa 26.3%
Ba or B 11.8%
Caa 0.9%
Non-rated 28.4%
Short-term
investments 3.5%
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%
Row: 1, Col: 1, Value: 3.5
Row: 1, Col: 2, Value: 28.4
Row: 1, Col: 3, Value: 1.9
Row: 1, Col: 4, Value: 11.8
Row: 1, Col: 5, Value: 26.3
Row: 1, Col: 6, Value: 14.7
Row: 1, Col: 7, Value: 13.4
Row: 1, Col: 1, Value: 7.6
Row: 1, Col: 2, Value: 28.0
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: 12.2
Row: 1, Col: 7, Value: 10.8
WHERE MOODY'S RATINGS ARE NOT AVAILABLE, WE HAVE USED S&P RATINGS. UNRATED
DEBT SECURITIES THAT ARE EQUIVALENT TO BA AND BELOW AT APRIL 30, 1996, AND
OCTOBER 31, 1995, ACCOUNT FOR 25.8% AND 25.4%, RESPECTIVELY, OF THE FUND'S
INVESTMENTS.
INVESTMENTS APRIL 30, 1996 (UNAUDITED)

Showing Percentage of Total Value of Investment in Securities

MUNICIPAL BONDS - 96.5%
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
ALABAMA - 1.3%
Cullman Med. Park South Med. Clinic Board Rev.
(Cullman Reg. Med. Ctr.) Series A:
6.50% 2/15/13 Baa $ 2,700,000 $ 2,625,750
6.50% 2/15/23 Baa 420,000 401,100
Shelby County Series A, 7.70% 8/1/17 - 4,000,000 4,385,000
7,411,850
ARIZONA - 0.3%
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 1,387,726
CALIFORNIA - 7.0%
California Hsg. Fin. Agcy. Rev. (Home Mtg.)
Series A, 5.70% 8/1/16, (MBIA Insured) (c) Aaa 1,200,000 1,171,500
California Gen. Oblig. Unltd. Tax 6.10% 9/1/04 A1 1,415,000 1,508,744
California Pub. Wks. Board Lease Rev. Rfdg. Series A:
(Dept. Corrections St. Prisons Proj.)
5% 12/1/19, (AMBAC Insured) Aaa 3,000,000 2,658,750
(California University Proj.) 5.50% 6/1/14 A1 1,500,000 1,413,750
Central Valley Fing. Auth. Rev. (Cogeneration Proj.)
(Carson Ice Gen. Proj.) 6% 7/1/09 BBB- 4,500,000 4,348,125
Foothill/Eastern Trans. Corridor Agcy. California
Toll Road Rev. (Sr. Lien) Series A:
0% 1/1/14 Baa 2,000,000 615,000
6% 1/1/16 Baa 3,750,000 3,614,063
Los Angeles County Ctfs. of Prtn. (Cap.
Appreciation) (Disney Parking Proj.):
0% 3/1/14 Baa1 1,000,000 296,250
0% 9/1/14 Baa1 7,260,000 2,078,175
Northern California Pwr. Agcy. Pub. Pwr. Rev.
Rfdg. (Geothermal Proj. #3) Series A,
5.85% 7/1/10, (AMBAC Insured) Aaa 1,500,000 1,545,000
Orange County Dev. Agcy. (Tax Allocation)
(Santa Ana Heights Proj.):
6.20% 9/1/08 Caa 1,650,000 1,592,250
6% 9/1/15 Caa 1,200,000 1,101,000
Riverside County Ctfs. of Prtn.:
Rfdg. (Air Force Village West, Inc.) Series A:
8.125% 6/15/12 - 4,790,000 4,939,688
8.125% 6/15/20 - 3,000,000 3,093,750
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
Sacramento City Fing. Auth.:
Lease Rev. Rfdg. Series A,
5.40% 11/1/20, (AMBAC Insured) Aaa $ 2,000,000 $ 1,870,000
Rev. (Tax Allocation) (Cap. Appreciation)
Series B, 0% 11/1/11, (MBIA Insured) Aaa 1,225,000 493,063
Sacramento Cogeneration Auth. Cogeneration
Proj. Rev. (Proctor & Gamble Proj.):
5.40% 7/1/98 BBB- 1,100,000 1,105,500
6.375% 7/1/10 BBB- 1,000,000 997,500
6.50% 7/1/14 BBB- 3,800,000 3,828,500
Sequoia Hosp. 5.375% 8/15/13 Baa1 1,835,000 1,562,044
39,832,652
COLORADO - 3.9%
Colorado Health Facs. Auth. Rev.:
(Rocky Mountain Adventist Proj.):
6.625% 2/1/13 Baa 6,900,000 6,986,250
6.625% 2/1/22 Baa 4,000,000 4,020,000
(National Benevolent Assoc. Proj.)
Series A, 6.50% 6/1/25 Baa1 1,360,000 1,237,600
Colorado Springs Arpt. Rev. (Cap. Appreciation)
Series C:
0% 1/1/06 BBB+ 1,405,000 774,506
0% 1/1/08 BBB+ 870,000 414,338
Denver City & County Arpt. Rev.:
Series A, 6.60% 11/15/97 (e) Baa 1,000,000 1,021,250
Series A, 6.90% 11/15/98 Baa 1,000,000 1,038,750
Series A, 0% 11/15/02, (MBIA Insured) Aaa 2,115,000 1,504,294
Series A, 7.50% 11/15/23 Baa 2,500,000 2,765,625
Series D, 0% 11/15/04, (MBIA Insured) Aaa 1,700,000 1,077,375
Mesa County Ind. Dev. Rev. (Joy Technologies,
Inc. Proj.) 8.50% 9/15/06 Ba1 1,250,000 1,320,313
22,160,301
CONNECTICUT - 5.4%
Connecticut Health & Edl. Facs. Auth. Rev.:
(The Griffin Hosp.) Series A:
6% 7/1/13 Baa1 1,810,000 1,681,038
5.75% 7/1/23 Baa1 3,280,000 2,853,600
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
CONNECTICUT - CONTINUED
Connecticut Health & Edl. Facs. Auth. Rev.: - continued
(New Britain Mem. Hosp.) Series A:
7.50% 7/1/06 BBB- $ 3,000,000 $ 3,157,500
7.75% 7/1/22 BBB- 1,500,000 1,571,250
RIB (Yale Univ. Proj.) 5.929% 6/10/30 Aaa 10,000,000 9,950,000
Connecticut Spl. Tax Oblig. Rev.
(Trans. Infrastructure):
Series B, 5.80% 9/1/04 A1 2,000,000 2,095,000
Rfdg. Series A, 5.25% 9/1/07, (MBIA Insured) Aaa 1,750,000 1,760,938
Eastern Connecticut Resources Recovery Auth.
Solid Waste Rev. (Wheelabrator Lisbon Proj.)
Series A (e):
5.50% 1/1/14 A 4,750,000 4,280,938
5.50% 1/1/20 A 4,000,000 3,500,000
30,850,264
DISTRICT OF COLUMBIA - 1.0%
District of Columbia Hosp. Rev. (Hosp. for Sick
Children) Series A, 8.875% 1/1/21 - 975,000 1,037,156
District of Columbia Rev. Rfdg. Series A,
6% 6/1/07, (MBIA Insured) Aaa 2,000,000 2,052,500
District of Columbia Redev. Land Agcy. Sport Arena
Spl. Tax Rev.:
5.30% 11/1/99 Baa 1,700,000 1,687,250
5.625% 11/1/10 Baa 750,000 705,000
5,481,906
FLORIDA - 1.0%
Florida Board of Ed. Gen. Oblig. 5.40% 6/1/06 Aa 2,595,000 2,640,413
Florida Mid-Bay Bridge Auth. Rev. Series A,
7.50% 10/1/17 - 2,500,000 2,728,125
5,368,538
GEORGIA - 2.0%
Cobb County School Dist. Unltd. Tax
5% 2/1/97 Aa1 3,300,000 3,334,782
Georgia Gen. Oblig. Series B, 7.50% 4/1/97 Aaa 2,350,000 2,433,566
Georgia Muni. Elec. Auth. Pwr. Rev. Rfdg. Series Z,
5.20% 1/1/06 A 3,000,000 2,943,750
Rome-Floyd County Dev. Auth. Ind. Dev. Rev.
(Kroger Co. Proj.) 8% 12/1/09 - 2,500,000 2,728,125
11,440,223
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
IDAHO - 0.1%
Boise Urban Renewal Parking Agcy. Rev.
(Tax Increment) Series A, B, C,
8.125% 9/1/15 (a) A $ 375,000 $ 398,438
ILLINOIS - 4.8%
Chicago School Board of Ed. (MBIA Insured):
6% 12/1/08, Aaa 3,390,000 3,542,550
6.25% 12/1/09 Aaa 3,000,000 3,183,750
Chicago O'Hare Int'l. Arpt.:
Rev. Rfdg. (2nd Lien)
(Gen. Arpt. Proj.) Series A, 6.375%
1/1/15, MBIA Insured) Aaa 1,400,000 1,443,750
Spl. Facs. Rev. Rfdg.
(American Airlines, Inc. Proj.) 8.20% 12/1/24 Baa2 1,000,000 1,143,750
Decatur Econ. Dev. Rev. Rfdg. (Kroger Co.)
Series 1992, 7.75% 6/1/07 Ba2 705,000 762,281
Du Page County Commty. High School Dist. #99
(Downers Grove) Series A, 6% 2/1/06,
(AMBAC Insured) Aaa 1,640,000 1,728,150
Illinois Dev. Fin. Auth. Solid Waste Disp. Rev.
(Ford Heights Waste Tire Proj.) 7.875%
4/1/11 (e)(g) - 10,000,000 2,500,000
Illinois Edl. Facs. Auth. Rev.:
Rfdg. (Art Institute of Chicago) 5.75% 3/1/18 A1 3,500,000 3,355,625
(Lewis University):
5.90% 10/1/14 Baa 1,740,000 1,648,650
6% 10/1/24 Baa 2,575,000 2,414,063
Illinois Health Facs. Auth. Rev.:
(Covenant Retirement Commty.)
Series A, 7.60% 12/1/12 BBB+ 750,000 793,125
(Mem. Hosp.):
7.125% 5/1/10 BBB 1,000,000 1,010,000
7.25% 5/1/22 BBB 1,000,000 1,011,250
Round Lake Beach Tax Increment Rev. Rfdg.
7.50% 12/1/13 - 2,500,000 2,550,000
27,086,944
INDIANA - 1.1%
Fishers Econ. Dev. Rev.:
(1st Mtg. United Student Funds, Inc.)
8.375% 9/1/14 - 1,750,000 1,820,000
(United Student Aid Funds, Inc.) 8.25% 9/1/09 - 2,500,000 2,612,500
Indianapolis Econ. Dev. Rev. Rfdg. & Impt.
(Nat'l. Benevolent Assoc.) 7.625% 10/1/22 Baa1 1,000,000 1,043,750
Wabash Econ. Dev. Rev. Rfdg. (Jesco Investment
Corp. Proj.) 6.625% 6/1/02 Ba2 965,000 996,363
6,472,613
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
IOWA - 0.7%
Woodbury County Health Sys. Rev. (St. Luke's
Health Sys. Northpark) Series A,
7.15% 12/1/22 - $ 3,320,000 $ 3,826,300
3,826,300
KANSAS - 0.0%
Kansas City Single Family Mtg. Rev. 9.50%
8/1/06, (AMBAC Insured) Aaa 55,000 57,613
57,613
KENTUCKY - 3.8%
Kenton County Arpt. Board Spl. Facs. Arpt. Rev.:
(Delta Airlines, Inc.) 7.80% 12/1/15 Ba1 3,500,000 3,714,375
(Delta Airlines, Inc. Proj. A) 7.125% 2/1/21 BB 10,840,000 11,260,050
6% 3/1/05, (MBIA Insured) Aaa 5,570,000 5,799,763
Murray Ind. Dev. Rev. Rfdg. (Kroger Co.)
7.25% 9/1/12 Ba2 700,000 730,625
21,504,813
LOUISIANA - 0.9%
Calcasieu Parish Inc. Ind. Dev. Board Poll. Cont.
Rev. Rfdg. (Gulf States Util. Co. Proj.)
6.75% 10/1/12 Ba1 1,000,000 1,000,000
Louisiana Pub. Facs. Auth. Ind. Dev. Rev. Rfdg.
(Beverly Enterprises, Inc.) 8.25% 9/1/08 - 555,000 586,913
Port New Orleans Ind. Dev. Rev. Rfdg.
(Continental Grain Co. Proj.) 7.50% 7/1/13 BB- 3,000,000 3,097,500
St. Tammany Pub. Trust Fing. Auth. Rev. Rfdg.
(Cap. Appreciation) Series C, 0% 7/20/14 Aaa 2,000,000 635,000
5,319,413
MARYLAND - 1.9%
Baltimore County Poll. Cont. Rev. Rfdg.
(Bethlehem Steel Proj. B) 7.50 6/1/15 - 3,750,000 3,885,938
Maryland Commty. Dev. Administration Dept.
Hsg. & Commty. Dev. (Multi-Family Hsg.)
Series A, 6.50% 5/15/21 (e) Aa 2,150,000 2,168,813
Maryland Energy Fing. Administration Ltd.
Oblig. Solid Waste Disp. Facs. Recycling
Rev. (Hagerstown Fiber L.P. 94) 9% 10/15/16 - 2,000,000 1,862,500
Maryland Health & Higher Edl. Facs. Auth. Rev.
(Good Samaritan Hosp.), 5.75% 7/1/13 A1 2,680,000 2,639,800
10,557,051
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
MASSACHUSETTS - 2.6%
Brockton Gen. Oblig.:
7.75% 12/15/96 Baa $ 150,000 $ 152,699
7.75% 12/15/98 Ba1 170,000 181,263
Massachusetts Health & Edl. Facs. Auth. Rev.
(1st Mtg.) (Fairview Extended Care)
Series A, 10.25% 1/1/21 - 5,000,000 5,668,750
Massachusetts Ind. Fin. Agcy. Rev.:
(Institute Dev. Disabilities) 9.25% 6/1/09 - 90,000 88,200
(Massachusetts Biomedical) Series A-2,
0% 8/1/08 A 800,000 381,000
(Cap. Appreciation) (Massachusetts Biomedical)
Series A-2, 0% 8/1/10 A 4,500,000 1,839,375
Rfdg. (Atlanticare Med. Ctr.) Series A,
10.125% 11/1/14 - 700,000 665,000
Massachusetts Ind. Fin. Agcy. Rev. Rfdg.
(Emerson College) 8.90% 1/1/18 - 1,000,000 1,102,500
Massachusetts Ind. Fin. Agcy. 8.625% 10/1/23 - 4,500,000 4,809,375
14,888,162
MICHIGAN - 6.4%
Detroit Hosp. Fin. Auth. Facs. Rev. (Michigan
Healthcare Corp. Proj.) 0% 12/1/20 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 1,183,757
7.80% 7/1/14 Baa 700,000 744,625
Highland Park Hosp. Fin. Auth. Hosp. Facs. Rev.
(Lakeside Commty. Hosp. Proj.) 0% 3/1/20 - 150,000 42,000
Michigan Hosp. Fin. Auth. Rev. Rfdg.:
(Pontiac Osteopathic Hosp.) 6% 2/1/24 Baa1 5,000,000 4,381,250
(Port Huron Hosp.) Series A, 7.625% 7/1/15 Aaa 2,000,000 2,052,860
(Detroit Macomb Hosp. Corp.) Series A:
7.30% 6/1/01 BB+ 1,750,000 1,752,188
7% 6/1/15 BB+ 6,450,000 6,167,813
Michigan Strategic Fund Ltd. Oblig. Rev.:
(Michigan Health Care Corp. Proj.)
0% 12/1/14 - 2,115,000 803,700
(Mercy Svcs. for Aging Proj.)
9.40% 5/15/20 - 600,000 666,000
(Great Lakes Pulp & Fibre Proj.)
10.25% 12/1/16 (e) - 3,000,000 2,782,500
10.25% 12/1/16 - 12,250,000 11,361,875
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
MICHIGAN - CONTINUED
Tawas City Hosp. Fin. Auth. Hosp. Rev.
(St. Joseph Hosp. Proj.) Series A,
8.50% 3/15/12 - $ 1,935,000 $ 1,997,888
36,488,156
MINNESOTA - 1.6%
Minnesota Hsg. Single Fam. Mtg. Rev.
6.40% 7/1/15 (e) Aa 2,000,000 2,025,000
St. Paul Hsg. & Redev. Auth. Hosp. Rev.
(Healtheast Proj.):
Series A, 9.75% 11/1/17 Baa 385,000 414,838
Series B, 6.625% 11/1/17 Baa 7,000,000 6,860,000
9,299,838
MISSISSIPPI - 1.0%
Claiborne County Poll. Cont. Rev.:
(Middle South Energy, Inc. Proj.):
Series A, 9.50% 12/1/13 Ba1 50,000 55,813
Series C, 9.875% 12/1/14 Ba1 1,100,000 1,237,500
(Sys. Energy Resources, Inc. Proj.):
Rfdg. 7.30% 5/1/25 Ba1 2,250,000 2,317,500
6.20% 2/1/26 Ba1 2,000,000 1,857,500
Mississippi Home Corp. Single Family Sr. Rev.
Rfdg. Series 1990 A,
9.25% 3/1/12, (FGIC Insured) Aaa 260,000 278,850
5,747,163
MISSOURI - 1.0%
Kansas City Ind. Dev. Auth. (Kingswood United
Methodist Manor Proj.) Series 1993,
9% 1 1/15/13 - 2,000,000 2,152,500
Lake Ozarks Commty. Bridge Corp. Sys. Rev.
6.40% 12/1/25 - 1,750,000 1,642,813
St. Louis Reg'l. Convention & Sports Complex
Auth. Series C, 7.90% 8/15/21 - 1,550,000 1,695,313
5,490,626
NEVADA - 1.4%
Clark County Ind. Dev. Rev. (Southwest Gas Corp.)
Series A, 6.50% 12/1/33 Baa3 6,000,000 5,730,000
Las Vegas Redev. Agcy. Tax Increment Rev.:
(Sub. Lien Fremont Proj. A) 6.10% 6/15/14 BBB+ 1,000,000 948,750
(Sub. Lien Hsg. Proj.) Series B, 6% 6/15/10 BBB+ 1,500,000 1,441,875
8,120,625
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
NEW HAMPSHIRE - 1.1%
New Hampshire Higher Edl. & Health Facs. Auth.:
Rev. (1st Mtg. River Woods at Exeter):
8% 3/1/01 - $ 750,000 $ 772,500
9% 3/1/23 - 1,830,000 1,974,113
(Valley Reg'l. Hosp.) 7.35% 4/1/23 - 3,145,000 2,948,438
Rev. (Littleton Hosp. Assoc., Inc.)
Series A, 9.50% 5/1/20 - 500,000 533,125
6,228,176
NEW JERSEY - 3.2%
Camden County Impt. Auth. Lease Rev.:
(Dockside Refrigerated Holt) 8.40% 4/1/24 (e) - 3,000,000 2,943,750
(Holt Hauling & Warehousing):
9.625% 1/1/11 - 3,000,000 2,910,000
9.875% 1/1/21 - 1,300,000 1,256,125
New Jersey Econ. Dev. Auth. Econ. Dev. Rev. Rfdg.:
(Stolt Term. Proj.) 10.50% 1/15/18 - 60,000 65,850
(Holt Hauling & Warehouse) 8.60%
12/15/17 (e) - 4,500,000 4,567,500
New Jersey Tran. Auth.:
6% 12/15/05, (MBIA Insured) Aaa 1,000,000 1,070,000
6% 12/15/06, (MBIA Insured) Aaa 3,000,000 3,202,500
Passaic County Util. Auth. Swr. Dev. Rev.
0% 3/1/02 A1 2,500,000 1,862,500
17,878,225
NEW MEXICO - 4.2%
Albuquerque Arpt. Rev. Rfdg. (AMBAC Insured) (c):
6.75% 7/1/11 Aaa 1,805,000 1,877,200
6.70% 7/1/18 Aaa 3,970,000 4,014,663
Albuquerque Retirement Facs. Rev. Rfdg.
(La Vida Liena Proj.) Series A, 8.85% 2/1/23 - 2,000,000 2,115,000
Farmington Poll. Cont. Rev. (Pub. Svc. Co. of
New Mexico San Juan Proj.):
Rfdg., Series X, 5.90% 4/1/07 Ba2 10,550,000 10,114,813
Series A:
6% 3/1/08 Ba2 700,000 672,000
6.50%, 9/1/09 Ba2 1,795,000 1,790,513
6.50% 9/1/04 Ba2 750,000 750,383
New Mexico Edl. Assistance Foundation Student
Loan Rev. 5.25% 4/1/05, (AMBAC Insured) Aaa 2,275,000 2,238,031
23,572,603
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
NEW YORK - 11.4%
New York City Series B, 5.70% 8/15/02 Baa1 $ 1,165,000 $ 1,169,369
New York City Gen. Oblig.:
Series H, 6.875% 2/1/02 Baa1 2,000,000 2,120,000
Series A, 7% 8/1/03 Baa1 2,000,000 2,150,000
5.50% 2/15/04 Baa1 5,000,000 4,900,000
New York City Ind. Dev. Agcy. Spl. Facs. Rev.
(Term. One Group Assoc. Proj.)
5.90% 1/1/06 A 8,680,000 8,701,700
New York State Dorm. Auth. Rev.:
Rfdg. (State Univ. of New York)
Series A, 5.50% 5/15/05 Baa1 2,750,000 2,701,875
(New York City Univ.) 5.70% 7/1/05 Baa1 3,000,000 2,970,000
(Consolidated City Univ. Sys.)
Series A, 5.75% 7/1/13 Baa1 3,170,000 3,023,388
Rfdg. (New York State Univ. Edl. Facs.)
Series B, 5.50% 5/15/08 Baa1 12,150,000 11,679,188
New York State Energy Research & Dev.
Auth. Elec. Facs. Rev. (Long Island Lighting)
Series A:
7.15% 12/1/20 (e) Ba1 1,500,000 1,516,875
6.90% 8/1/22 (e) Ba1 1,550,000 1,542,250
New York State Local Govt. Assistance Corp.
Rfdg. Series C, 5.50% 4/1/17 A 7,500,000 7,153,125
New York State Medical Care Facs. Fing.
Agcy. Rev. (Mtg. Proj.) Series A,
6.20% 2/15/15, (FHA Insured) Aa 3,000,000 2,977,500
New York State Tollway Auth. Gen. Rev. (Spl.
Oblig.) Series A, 0% 1/1/04 BBB 4,000,000 2,570,000
New York State Thruway Auth. Hwy. & Bridge
Trust Fund Series B, 5.125% 4/1/15,
(MBIA Insured) Aaa 2,500,000 2,296,875
New York State Tollway Auth. Svc. Contract Rev.
(Local Hwy. & Bridges) 5.90% 4/1/07 Baa1 2,000,000 1,995,000
New York State Urban Dev. Corp. Rev. Rfdg.
(Correctional Cap. Facs.) Series A:
6.30% 1/1/03 Baa1 2,000,000 2,077,500
6.40% 1/1/04 Baa1 2,000,000 2,090,000
Suffolk County Wtr. Auth. 6% 6/1/17,
(MBIA Insured) Aaa 1,000,000 1,018,750
64,653,395
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
NORTH CAROLINA - 1.6%
North Carolina Eastern Muni. Pwr. Agcy. Sys. Rev.:
7.25% 1/1/07 A $ 1,000,000 $ 1,097,500
Series B, 6.125% 1/1/09 A 3,000,000 3,026,250
Rfdg. Series C:
5.125% 1/1/03 A 2,000,000 1,947,500
5.25% 1/1/04 A 1,365,000 1,327,463
North Carolina Muni. Pwr. Agcy. Rev. Rfdg.
(Proj. #1 Catawba Elec.) 5.75% 1/1/02 A 1,750,000 1,778,438
9,177,151
OHIO - 6.0%
Butler County Hosp. Facs. Rev. 7.50% 1/1/10 Baa 3,500,000 3,631,250
Fairfield Econ. Dev. Rev. Rfdg. (Beverly
Enterprises Proj.) 8.50% 1/1/03 - 1,000,000 1,066,250
Gateway Econ. Dev. Corp. (Greater Cleveland
Stadiums) Series 1990, 6.50% 9/15/14 - 3,000,000 2,868,750
Mahoning Valley San. Dist. Wtr. Rev.:
7.75% 5/15/14 - 2,000,000 2,080,000
7.75% 5/15/19 - 2,000,000 2,065,000
Ohio Econ. Dev. Rev. Rfdg. (Kroger Co. Proj.)
Series 1992, 7.50% 9/1/10 Ba2 2,470,000 2,618,200
Ohio Bldg. Auth. Rfdg. (State Facs.-Vern Riffe)
Series A, 5.75% 10/1/04, (AMBAC Insured) Aaa 4,000,000 4,175,000
Ohio Solid Waste Rev. (Republic Engineered
Steels Proj.) 8.25% 10/1/14 (e) - 7,000,000 6,807,500
Ohio Wtr. Dev. Auth. Pollution Cont. Facs. Rev.
(Wtr. Control Loan Fd.) State Matching
Series 6.50% 1/1/04 (MBIA Insured) Aaa 1,835,000 2,020,794
Ohio Wtr. 5.625% 6/1/06, (MBIA Insured) Aaa 2,000,000 2,045,000
Student Loan Fund Corp. Student Loan Rev.
Series B, 8.875% 8/1/08 (e) - 3,765,000 3,901,481
Summit County Ind. Dev. Rev. Rfdg.
(Surnow Assoc. Proj.) 7.65% 10/1/06 Ba2 870,000 935,250
34,214,475
OKLAHOMA - 0.8%
Tulsa Muni. Arpt. Trust Rev. 7.35% 12/1/11 Baa2 4,000,000 4,275,000
4,275,000
PENNSYLVANIA - 7.8%
Allegheny County Hosp. Dev. Auth. Health
Facs. Rev. (Allegheny Valley School):
8% 2/1/02 Ba1 510,000 523,388
8.50% 2/1/15 Ba1 2,930,000 3,047,200
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
PENNSYLVANIA - CONTINUED
Allegheny County Ind. Dev. Auth. Rev. (YMCA
Pittsburgh Proj.) Series 1990, 8.75% 3/1/10 - $ 370,000 $ 394,975
Butler County Ind. Dev. Auth. Health Ctr. Rev.
Rfdg. (Sherwood Oaks Proj.) 5.75% 6/1/11 A- 3,000,000 2,760,000
Cumberland County Muni. Auth. Rev. (Carlisle
Hosp.):
6.80% 11/15/14 Baa 3,250,000 3,156,563
6.80% 11/15/23 Baa 1,000,000 955,000
Delaware County Auth. Rev. (1st Mtg. Riddle
Village Proj.):
9.25% 6/1/22 - 2,905,000 3,184,606
Series 1992, 8.75% 6/1/10 - 2,870,000 3,081,663
7% 6/1/00 - 1,000,000 1,010,000
8.25% 6/1/22 - 2,250,000 2,373,750
Montgomery County Higher Ed. & Health Auth.
Hosp. Rev. (United Hosp., Inc. Proj.):
(St. Christopher):
8.25% 11/1/03 Ba1 1,250,000 1,298,438
7% 11/1/06 Ba1 120,000 120,450
8.50% 11/1/17 Ba1 525,000 546,656
Series A:
8% 11/1/96 Ba1 65,000 65,516
10% 11/1/05 Ba1 25,000 25,313
Series B, 8.10% 11/1/97 Ba1 35,000 35,744
Northampton County Ind. Dev. Auth. Rev. Rfdg.
(Bethlehem Steel Poll. Cont. Proj.)
Series 1994, 7.55% 6/1/17 - 1,940,000 1,998,200
Pennsylvania Econ. Dev. Fing. Auth. Resource
Recovery Rev. (Sr. Northhampton Generating)
Series A, 6.60% 1/1/19 - 6,000,000 5,730,000
Pennsylvania Ind. Dev. Auth. Rev. Econ. Dev.
5.80% 7/1/09, (AMBAC Insured) Aaa 1,345,000 1,378,625
Philadelphiaa Ind. Dev. Auth. Dev. Rev. (Long
Term Care, Maplewood) 8% 1/1/24 - 3,000,000 3,120,000
Philadelphia Hosp. & Higher Ed. Facs. Auth. Rev.
(Graduate Health System)
Series A, 6.25% 7/1/13 Baa1 2,700,000 2,541,375
Philadelphia Muni. Auth. Rev. Rfdg. Lease
(Series D) 6.30% 7/15/17 Baa 2,230,000 2,174,250
Somerset County Pennsylvania Hosp. Auth. Rev.
(Health Care 1st Mtg-gf) 8.50% 6/1/24 - 4,500,000 4,758,750
44,280,462
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
RHODE ISLAND - 1.1%
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 $ 1,565,438
Rhode Island Auth. & Econ. Dev. Corp. Arprt. Rev.
Series A, 7% 7/1/14, (FSA Insured) Aaa 4,000,000 4,465,000
6,030,438
SOUTH CAROLINA - 0.4%
Piedmont Muni. Pwr. Elec. Agcy.
6.25% 1/1/05, (FGIC Insured) Aaa 2,000,000 2,147,500
2,147,500
TENNESSEE - 0.5%
Dyer County Ind. Dev. Board. Ind. Dev. Rev.
Rfdg. (Tennessee Assoc. Proj.) 6% 2/01/07 Ba2 1,640,000 1,584,650
Rutherford County Ind. Dev. Board Dev. Rev.
Rfdg. (Kroger Co. Proj.) 7.30% 6/1/21 Ba2 1,000,000 1,025,000
2,609,650
TEXAS - 3.6%
Alliance Arpt. Spl. Facs. (Federal Express Corp.)
6.375% 4/1/21 Baa2 4,500,000 4,398,750
Dallas-Fort Worth Int'l. Arpt. Facs. Impt. Corp.
Rev. (AMR Corp.) 7.50% 11/1/25 (e) Baa2 6,000,000 6,352,500
East Texas Health Facs. Dev. Corp. Hosp. Rev.
(Palestine) 7.80% 8/15/18 - 3,000,000 2,700,000
Harris County Cultural & Ed. Facs. Fin. Corp. Rev.
Rfdg. (Space Ctr. Houston Proj.):
Series A, 9.25% 8/15/23 - 1,870,000 1,783,513
Series B, 0% 8/15/23 - 4,730,000 1,176,588
Houston Elderly Hsg. Auth. 1st Lien Rev. (Low
Income Elderly Hsg.) 7.50% 7/1/17 - 450,000 449,438
Houston Hsg. Fin. Corp. Single Family Mtg. Rev.
(Verex Mtg. Assurance, Inc.) Series 1984 A,
10.875% 2/15/16 A 165,000 166,972
Midlothian Inpt. School Dist. 0% 2/15/04 Aaa 1,845,000 1,233,844
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 2,325,938
20,587,543
UTAH - 0.0%
South Salt Lake City Ind. Rev. (Price Savers
Wholesale Club Proj.) 9% 11/15/13 - 250,000 280,000
280,000
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
VIRGINIA - 2.9%
Hopewell Ind. Dev. Auth. Resources Recovery Rev.
(Stone Container Corp.) 8.25% 6/1/16 - $ 3,735,000 $ 4,024,463
Loudoun County Ind. Dev. Auth. Residential Care
Facs. Rev. (Falcons Landing Proj.) Series A:
9.25% 11/1/04 - 1,000,000 1,045,000
8.75% 11/1/24 - 8,500,000 8,595,625
Virginia Hsg. Dev. Auth. Mtg. 6.10% 1/1/19 Aa1 3,000,000 2,973,750
16,638,838
WASHINGTON - 2.3%
Washington Pub. Pwr. Supply Sys. Nuclear Proj. #2
Rev. 5.40% 7/1/12 (f) Aa 14,000,000 13,002,500
13,002,500
WEST VIRGINIA - 0.4%
Ripley Ind. Dev. Rev. Rfdg. (Kroger Co. Proj.)
7.30% 5/1/11 Ba2 2,200,000 2,318,250
2,318,250
TOTAL MUNICIPAL BONDS
(Cost $555,973,948) 547,085,421
MUNICIPAL NOTES - 3.5%
ARIZONA - 1.7%
Mohave County Ind. Dev. Auth. Ind. Dev. Rev.
(Citizens Util. Co.) Series 1993 E,
3.30% 5/8/96, Variable Tender (e) A-1+ 3,500,000 3,499,685
Yavapi County Ind. Dev. Auth. Ind. Dev. Rev.
(Citizens Util. Co.) Series 1993,
3.30% 5/8/96, Variable Tender (e) A-1+ 6,100,000 6,099,390
9,599,075
MASSACHUSETTS - 0.9%
Commonwealth of Massachusetts Gen. Oblig.
1995 Series A, 4.25% 6/12/96, BAN MIG 1 5,000,000 5,002,300
5,002,300
MINNESOTA - 0.0%
Fridley Ind. Dev. Auth. Rev. (Longview Fibre Co.
Proj.) Series 1988, 5.50% LOC
Algemene Bank, VRDN (d) - 240,000 240,000
240,000
MUNICIPAL NOTES - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
WISCONSIN - 0.9%
Wisconsin Gen. Oblig. TRAN Series 1995,
4.50% 6/17/96 MIG 1 $ 5,000,000 $ 5,004,300
5,004,300
TOTAL MUNICIPAL NOTES
(Cost $19,847,088) 19,845,675
TOTAL INVESTMENTS - 100%
(Cost $575,821,036) $ 566,931,096
FUTURES CONTRACTS
EXPIRATION UNDERLYING FACE UNREALIZED
DATE AMOUNT AT VALUE GAIN/(LOSS)
SOLD
36 Municipal Bond Index Futures June 1996 $ 4,005,000 $ 38,798
THE FACE VALUE OF FUTURES SOLD AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 0.7%
SECURITY TYPE ABBREVIATIONS
BAN - Bond Anticipation Notes
TRAN - Tax and Revenue Anticipation Notes
VRDN - Variable Rate Demand Notes
LEGEND
1. Security pledged to cover margin requirements for futures contracts. At
the period end, the value of securities pledged amounted to $398,438.
2. Standard & Poor's credit ratings are used in the absence of a rating by
Moody's Investors Service, Inc.
3. Security purchased on a delayed delivery basis (see Note 2 of Notes to
Financial Statements).
4. The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
5. Private activity obligations whose interest is subject to the federal
alternative minimum tax for individuals.
6. 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.
7. Non-income producing - issuer filed for protection under the Federal
Bankruptcy Code or is in default of interest payment.
OTHER INFORMATION
The composition of long-term debt holdings as a percentage of total value
of investment in securities, is as follows (ratings are unaudited):
MOODY'S RATINGS S&P RATINGS
Aaa, Aa, A 26.8% AAA, AA, A 27.1%
Baa 22.1% BBB 23.7%
Ba 7.9% BB 9.7%
B 0.0% B 0.3%
Caa 0.9% CCC 0.0%
Ca, C 0.0% CC, C 0.0%
D 0.5%
The percentage not rated by either S&P or Moody's amounted to 28.4%. FMR
has determined that unrated debt securities that are lower quality account
for 25.8% 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 24.9%
Industrial Development 20.2
General Obligation 16.5
Electric Revenue 12.6
Transportation 6.5
Others (individually less than 5%) 19.3
TOTAL 100.0%
INCOME TAX INFORMATION
At April 30, 1996, the aggregate cost of investment securities for income
tax purposes was $575,821,036. Net unrealized depreciation aggregated
$8,889,940, of which $13,658,838 related to appreciated investment
securities and $22,548,778 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>
APRIL 30, 1996 (UNAUDITED)

ASSETS

Investment in securities, at value (cost $575,821,036) - $ 566,931,096
See accompanying schedule

Receivable for investments sold 7,000,112

Interest receivable 11,801,459

Receivable for daily variation on futures contracts 27,000

Prepaid expenses 3,996

TOTAL ASSETS 585,763,663

LIABILITIES

Payable to custodian bank $ 612,353

Payable for investments purchased

Regular delivery 4,024,134

Delayed delivery 7,047,411

Payable for fund shares redeemed 80,674

Distributions payable 987,359

Accrued management fee 185,383

Other payables and accrued expenses 302,344

TOTAL LIABILITIES 13,239,658

NET ASSETS $ 572,524,005

Net Assets consist of:

Paid in capital $ 594,998,679

Accumulated undistributed net realized gain (loss) (13,623,532)
on investments

Net unrealized appreciation (depreciation) on (8,851,142)
investments

NET ASSETS $ 572,524,005

CALCULATION OF MAXIMUM OFFERING PRICE $11.63
CLASS A:
NET ASSET VALUE, and redemption price per share
($534,268,171 (divided by) 45,935,858 shares)

Maximum offering price per share (100/96.50 of $11.63) $12.05

CLASS B: $11.61
NET ASSET VALUE, and offering price per share
($37,436,716 (divided by) 3,225,753 shares) A

INSTITUTIONAL CLASS: $11.64
NET ASSET VALUE, offering price and redemption price
per share ($819,118 (divided by) 70,388 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>
SIX MONTHS ENDED APRIL 30, 1996 (UNAUDITED)

INTEREST INCOME $ 19,138,808

EXPENSES

Management fee $ 1,192,202

Transfer agent fees 513,797
Class A

Class B 31,849

Institutional Class 646

Distribution fees 705,132
Class A

Class B 156,842

Accounting fees and expenses 118,102

Non-interested trustees' compensation 1,083

Custodian fees and expenses 14,763

Registration fees 22,169
Class A

Class B 12,144

Institutional Class 23,973

Audit 19,671

Legal 5,024

Miscellaneous 9,997

Total expenses before reductions 2,827,394

Expense reductions (27,792) 2,799,602

NET INTEREST INCOME 16,339,206

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

Investment securities (1,462,717)

Futures contracts 56,372 (1,406,345)

Change in net unrealized appreciation (depreciation) on:

Investment securities (11,065,953)

Futures contracts 38,798 (11,027,155)

NET GAIN (LOSS) (12,433,500)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ 3,905,706
FROM OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR ENDED
ENDED OCTOBER 31,
APRIL 30,1996 1995
(UNAUDITED)

INCREASE (DECREASE) IN NET ASSETS

Operations $ 16,339,206 $ 34,231,751
Net interest income

Net realized gain (loss) (1,406,345) (8,226,585)

Change in net unrealized appreciation (depreciation) (11,027,155) 40,030,641

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 3,905,706 66,035,807
FROM OPERATIONS

Distributions to shareholders (15,465,870) (33,101,699)
From net interest income
Class A

Class B (859,620) (1,127,659)

Institutional Class (13,716) (2,393)

TOTAL DISTRIBUTIONS (16,339,206) (34,231,751)

Share transactions - net increase (decrease) (12,722,982) 11,485,606

TOTAL INCREASE (DECREASE) IN NET ASSETS (25,156,482) 43,289,662

NET ASSETS

Beginning of period 597,680,487 554,390,825

End of period $ 572,524,005 $ 597,680,487

</TABLE>

FINANCIAL HIGHLIGHTS - CLASS A
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
SIX MONTHS YEARS ENDED OCTOBER 31,
ENDED APRIL 30,
1996

(UNAUDITED) 1995 1994 D 1993 1992 1991

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

Net asset value, $ 11.880 $ 11.220 $ 12.720 $ 11.650 $ 11.410 $ 10.870
beginning of period

Income from Investment
Operations

Net investment .327 .700 .689 .710 .774 .803
income

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

Total from investment .077 1.360 (.741) 1.810 1.024 1.463
operations

Less Distributions

From net investment (.327) (.700) (.689) (.710) (.774) (.803)
income

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

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

Total distributions (.327) (.700) (.759) (.740) (.784) (.923)

Net asset value, end $ 11.630 $ 11.880 $ 11.220 $ 12.720 $ 11.650 $ 11.410
of period

TOTAL RETURN B, C 0.60% 12.50 (6.03) 15.95 9.21% 14.02%
% % %

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of $ 534,268 $ 565,131 $ 544,422 $ 497,575 $ 156,659 $ 67,135
period (000 omitted)

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

Ratio of net investment 5.51% 6.06 5.78% 5.59 6.59% 7.08%
income to average A % %
net assets

Portfolio turnover rate 57% 37 38% 27 13% 10%
A % %

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C>
SIX MONTHS YEARS ENDED
ENDED OCTOBER 31,
APRIL 30, 1996

(UNAUDITED) 1995 1994 E

SELECTED PER-SHARE DATA

Net asset value, beginning of period $ 11.860 $ 11.210 $ 11.610

Income from Investment Operations

Net investment income .286 .612 .188

Net realized and unrealized gain (loss) (.250) .650 (.400)

Total from investment operations .036 1.262 (.212)

Less Distributions

From net investment income (.286) (.612) (.188)

Net asset value, end of period $ 11.610 $ 11.860 $ 11.210

TOTAL RETURN B, C 0.26% 11.57% (1.86)%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 37,437 $ 32,395 $ 9,968

Ratio of expenses to average net assets 1.61% A 1.86% 2.09%
D A

Ratio of net investment income to average 4.83% A 5.18% 4.58%
net assets A

Portfolio turnover rate 57% A 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 AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD HAVE
BEEN HIGHER (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS).
E FOR THE PERIOD JUNE 30, 1994 (COMMENCEMENT OF SALE OF CLASS B SHARES) TO
OCTOBER 31, 1994.
FINANCIAL HIGHLIGHTS - INSTITUTIONAL CLASS
SIX MONTHS YEAR ENDED
ENDED OCTOBER 31,
APRIL 30, 1996

(UNAUDITED) 1995 E

SELECTED PER-SHARE DATA

Net asset value, beginning of period $ 11.880 $ 11.700

Income from Investment Operations

Net investment income .330 .232

Net realized and unrealized gain (loss) (.240) .180

Total from investment operations .090 .412

Less Distributions

From net investment income (.330) (.232)

Net asset value, end of period $ 11.640 $ 11.880

TOTAL RETURN B, C 0.72% 3.55%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 819 $ 154

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

Ratio of net investment income to average net assets 5.71% A 5.89% A

Portfolio turnover rate 57% A 37%

A ANNUALIZED
B TOTAL RETURNS 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 AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD HAVE
BEEN HIGHER (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS).
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 April 30, 1996 (Unaudited)

1. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity Advisor High Income Municipal Fund (the fund) is a fund of
Fidelity Advisor Series V (the trust) and is authorized to issue an
unlimited number of shares. The trust is registered under the Investment
Company Act of 1940, as amended (the 1940 Act), as an open-end management
investment company organized as a Massachusetts business trust.
The fund offers Class A, 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. 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 financial statements have been prepared in conformity with generally
accepted accounting principles which permit management to make certain
estimates and assumptions at the date of the financial statements. 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. Fidelity Management & Research Company (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. These expenses are borne by each class and amortized over
one year.
1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
DISTRIBUTIONS TO SHAREHOLDERS. Distributions are declared daily and paid
monthly from net interest income. Distributions from realized gains, if
any, are recorded on the ex-dividend date. Income dividends are declared
separately for each class, while capital gain distributions are declared at
the fund level and allocated to each class on a pro rata basis based on the
number of shares held by each class on the ex-dividend date.
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences, which may result in distribution
reclassifications, are primarily due to differing treatments for futures
and options transactions and market discount.
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
that 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. Futures contracts
involve, to varying degrees, risk of loss in excess of the futures
variation margin reflected in the Statement of Assets and Liabilities. The
underlying face amount at value of any open futures contracts at period end
is shown in the schedule of investments under the caption "Futures
Contracts." This amount
2. OPERATING POLICIES - CONTINUED
FUTURES CONTRACTS AND OPTIONS - CONTINUED
reflects each contract's exposure to the underlying instrument at period
end. Losses may arise from changes in the value of the underlying
instruments, if there is an illiquid secondary market for the contracts, or
if the counterparties do not perform under the contracts' terms.
Futures contracts are valued at the settlement price established each day
by the board of trade or exchange on which they are traded. Exchange-traded
options are valued using the last sale price or, in the absence of a sale,
the last offering price. Options traded over-the-counter are valued using
dealer-supplied valuations.
3. PURCHASES AND SALES OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $172,171,849 and $157,956,389, respectively.
The market value of futures contracts opened and closed during the period
amounted to $10,614,088 and $6,494,741, 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 .1100% 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 .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. For the period November 1, 1995 to December 31, 1995, this fee
was 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.
Effective January 1, 1996, the Board of Trustees approved a revised Class B
distribution plan, under which the fee is based on an annual rate of .90%
(of which .65% represents a distribution fee and .25% represents a
shareholder service fee) of the average net assets of the Class B shares.
For the period, the fund
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
DISTRIBUTION AND SERVICE PLAN - CONTINUED
paid FDC $705,132 and $156,842 under the Class A Plan and Class B Plan,
respectively, of which $705,132 and $44,714 were paid to securities
dealers, banks and other financial institutions for the distribution of
Class A and Class B shares, respectively, 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. The Plans also authorize payments to third
parties that assist in the sale of the fund's shares or render shareholder
support services.
SALES LOAD. For the period November 1, 1995 through December 31, 1995, FDC
received a front-end sales charge of up to 4.75% for selling Class A shares
of the fund. Effective January 1, 1996, the Board of Trustees approved a
revised Class A sales charge. Under the revised arrangement, FDC receives a
front-end sales charge of up to 3.50% for selling Class A shares of the
fund. For the period, FDC received sales charges of $682,650 on sales of
Class A shares of the fund, of which $572,579 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 $41,339 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 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
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
TRANSFER AGENT AND ACCOUNTING FEES - CONTINUED
accounting records. The fee is based on the level of average net assets for
the month plus out-of-pocket expenses. For the period, the transfer agent
fees were equivalent to an annualized rate of .18%, .18%, and .27% of
average net assets for Class A, Class B, and Institutional Class,
respectively.
5. EXPENSE REDUCTIONS.
FMR voluntarily agreed to reimburse operating expenses (excluding interest,
taxes, brokerage commissions and extraordinary expenses) above the
following annual rates of average net assets for each class.
(I) CLASS A. For the period, this expense limitation was 1.00% of average
net assets.
(II) CLASS B. Effective January 1, 1996, the expense limitation changed
from an annual rate of 1.75% to 1.65% of average net assets.
(III) INSTITUTIONAL CLASS. For the period, this expense limitation was .75%
of average net assets and the reimbursement reduced expenses by $23,864.
In addition, the fund has entered into arrangements with its custodian and
transfer agent whereby interest earned on uninvested cash balances was used
to offset a portion of the class' expenses. During the period, the fund's
custodian fees were reduced by $2,168 under the custodian arrangement and
Class A expenses were reduced by $1,760 under the transfer agent
arrangement.
6. SHARE TRANSACTIONS.
Share transactions for each class of shares were as follows:
SHARES DOLLARS
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED APRIL 30,
OCTOBER 31, APRIL 30, OCTOBER 31,
1996 1995 A 1996 1995 A

CLASS A
Shares sold 4,299,214 12,273,037 $ 51,302,385 $ 140,517,484
Reinvestment of distributions 817,888 1,809,737 9,769,629 20,850,961
Shares redeemed (6,757,846) (15,035,639) (80,386,183) (171,150,553)
Net increase (decrease) (1,640,744) (952,865) $ (19,314,169) $
(9,782,108)
CLASS B
Shares sold 738,131 2,043,527 $ 8,810,864 $ 23,449,301
Reinvestment of distributions 44,712 61,101 533,238 707,595
Shares redeemed (289,463) (261,235) (3,439,756) (3,041,172)
Net increase (decrease) 493,380 1,843,393 $ 5,904,346 $ 21,115,724
INSTITUTIONAL CLASS
Shares sold 56,500 12,792 $ 675,816 $ 150,012
Reinvestment of distributions 928 168 11,025 1,978
Shares redeemed - - - -
Net increase (decrease) 57,428 12,960 $ 686,841 $ 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.

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
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 AGENTS
UMB Bank, n.a.
Kansas City, MO
State Street Bank and Trust Company
Boston, MA - Class A
Fidelity Investments Institutional Operations Company
Boston, MA - Class B
* INDEPENDENT TRUSTEES
CUSTODIAN
UMB Bank, n.a.
Kansas City, MO
GROWTH FUNDS
Fidelity Advisor Overseas Fund
Fidelity Advisor Mid Cap Fund
Fidelity Advisor Equity Growth Fund
Fidelity Advisor Global Resources Fund
Fidelity Advisor Growth
Opportunities Fund
Fidelity Advisor Strategic
Opportunities Fund
Fidelity Advisor Large Cap Fund
GROWTH AND INCOME FUNDS
Fidelity Advisor Equity Income Fund
Fidelity Advisor Income & Growth Fund
TAXABLE 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 Intermediate Bond Fund
Fidelity Advisor Short Fixed-Income Fund
MUNICIPAL FUNDS
Fidelity Advisor High Income
Municipal Fund
Fidelity Advisor Intermediate Municipal Income Fund
Fidelity Advisor Short-Intermediate Municipal Income Fund
STATE MUNICIPAL FUNDS
Fidelity Advisor California Municipal Income Fund
Fidelity Advisor New York Municipal Income 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)

HIGH INCOME MUNICIPAL
FUND - INSTITUTIONAL CLASS
SEMIANNUAL REPORT
APRIL 30, 1996
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 10 A summary of major shifts in the
fund's investments over the past six
months.

INVESTMENTS 11 A complete list of the fund's
investments with their market
values.

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

NOTES 32 Notes to the financial statements.

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 class' total return
includes changes in share price, plus reinvestment of any dividends (or
income) and capital gains (the profits the fund earns when it sells
securities that have grown in value). You can also look at income to
measure performance. The 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 six months, past one year, past five years and life of fund total
returns and dividends would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED APRIL 30, 1996 PAST 6 PAST 1 PAST 5 LIFE OF
MONTHS YEAR YEARS FUND

Advisor High Income Municipal - 0.72% 6.82% 43.14% 113.90%
Institutional Class

Lehman Brothers Municipal Bond Index 1.11% 7.95% 45.09% n/a

High-Yield Municipal Debt Funds Average 1.06% 6.91% 42.21% n/a

CUMULATIVE TOTAL RETURNS show Institutional Class' performance in
percentage terms over a set period - in this case, six months, one year,
five years, or since the fund started on September 16, 1987. For example,
if you had invested $1,000 in a fund that had a 5% return over the past
year, the value of your investment would be $1,050. You can compare
Institutional Class' returns to those of the Lehman Brothers Municipal Bond
Index, which reflects the performance of the investment-grade municipal
bond market. To measure how Institutional Class' performance stacked up
against its peers, you can compare it to the high-yield municipal debt
funds average, which reflects the performance of 44 high-yield municipal
debt funds with similar objectives tracked by Lipper Analytical Services
over the past six months. These benchmarks include reinvested dividends and
capital gains, if any.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED APRIL 30, 1996 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

Advisor High Income Municipal - 6.82% 7.44% 9.21%
Institutional Class

Lehman Brothers Municipal Bond Index 7.95% 7.73% n/a

High Yield Municipal Debt Funds Average 6.91% 7.28% 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
IMAHDR PRASUN SHR__CHT 19960430 19960524 160542 S00000000000001
FA High Inc. Muni Cl I Lehman Bros. Muni Bond
00679 LB015
1987/09/30 10000.00 10000.00
1987/10/31 10032.38 10035.40
1987/11/30 10202.58 10297.42
1987/12/31 10377.36 10446.84
1988/01/31 10759.02 10818.96
1988/02/29 10878.35 10933.31
1988/03/31 10752.21 10805.94
1988/04/30 10804.96 10888.06
1988/05/31 10859.03 10856.60
1988/06/30 11061.37 11015.43
1988/07/31 11096.60 11087.25
1988/08/31 11134.46 11097.01
1988/09/30 11304.15 11297.86
1988/10/31 11458.60 11497.27
1988/11/30 11470.98 11391.96
1988/12/31 11602.17 11508.50
1989/01/31 11748.27 11746.49
1989/02/28 11760.05 11612.46
1989/03/31 11850.55 11584.71
1989/04/30 12121.36 11859.73
1989/05/31 12319.40 12106.06
1989/06/30 12460.50 12270.46
1989/07/31 12569.81 12437.46
1989/08/31 12667.04 12315.70
1989/09/30 12705.24 12279.00
1989/10/31 12839.38 12429.17
1989/11/30 12997.44 12646.68
1989/12/31 13121.01 12750.13
1990/01/31 13141.72 12689.82
1990/02/28 13235.90 12803.39
1990/03/31 13318.94 12807.23
1990/04/30 13197.12 12714.51
1990/05/31 13467.56 12992.07
1990/06/30 13626.24 13106.27
1990/07/31 13836.41 13299.59
1990/08/31 13743.04 13106.48
1990/09/30 13840.77 13113.95
1990/10/31 14030.79 13351.83
1990/11/30 14378.93 13620.34
1990/12/31 14470.66 13679.59
1991/01/31 14639.07 13863.17
1991/02/28 14751.63 13983.78
1991/03/31 14838.36 13988.81
1991/04/30 15079.97 14175.56
1991/05/31 15266.37 14301.58
1991/06/30 15301.90 14287.42
1991/07/31 15499.76 14461.44
1991/08/31 15639.74 14651.90
1991/09/30 15823.19 14842.67
1991/10/31 15998.52 14976.25
1991/11/30 16058.70 15018.04
1991/12/31 16233.36 15340.32
1992/01/31 16413.30 15375.30
1992/02/29 16502.47 15380.22
1992/03/31 16585.27 15385.91
1992/04/30 16734.95 15522.85
1992/05/31 16885.07 15705.55
1992/06/30 17116.60 15969.09
1992/07/31 17712.61 16447.84
1992/08/31 17575.45 16287.48
1992/09/30 17685.14 16394.00
1992/10/31 17471.71 16232.84
1992/11/30 17821.88 16523.57
1992/12/31 18036.75 16692.28
1993/01/31 18341.83 16886.41
1993/02/28 18989.50 17497.19
1993/03/31 18791.44 17312.25
1993/04/30 18990.71 17486.93
1993/05/31 19147.98 17585.20
1993/06/30 19454.97 17878.70
1993/07/31 19469.42 17902.12
1993/08/31 19970.87 18274.84
1993/09/30 20247.42 18482.99
1993/10/31 20258.28 18518.67
1993/11/30 20060.30 18355.52
1993/12/31 20523.52 18743.00
1994/01/31 20762.50 18957.05
1994/02/28 20213.75 18466.06
1994/03/31 19136.29 17714.12
1994/04/30 19263.27 17864.34
1994/05/31 19377.19 18019.22
1994/06/30 19305.84 17909.12
1994/07/31 19654.09 18237.40
1994/08/31 19684.97 18300.50
1994/09/30 19376.60 18031.85
1994/10/31 19036.93 17711.60
1994/11/30 18424.89 17391.38
1994/12/31 18871.45 17774.16
1995/01/31 19508.98 18282.15
1995/02/28 20034.62 18813.79
1995/03/31 20139.96 19029.96
1995/04/30 20206.16 19052.42
1995/05/31 20852.77 19660.38
1995/06/30 20689.20 19488.35
1995/07/31 20760.36 19673.10
1995/08/31 20974.77 19922.56
1995/09/30 21183.95 20048.66
1995/10/31 21433.87 20340.17
1995/11/30 21858.89 20677.62
1995/12/31 22052.87 20876.33
1996/01/31 22174.68 21033.94
1996/02/29 22124.75 20891.96
1996/03/31 21676.10 20624.97
1996/04/30 21588.41 20566.60
IMATRL PRASUN SHR__CHT 19960430 19960524 160544 R00000000000056

$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 April 30,
1996, the value of your investment would have grown to $21,585 - a 115.85%
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 $20,567 - a 105.67%
increase.
UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. Bond prices, for
example, generally move in
the opposite direction of
interest rates. In turn, the
share price, return, and yield
of a fund that invests in
bonds will vary. That means if
you sell your shares during a
market downturn, you might
lose money. But if you can
ride out the market's ups and
downs, you may have a gain.
(checkmark)
TOTAL RETURN COMPONENTS
SIX YEARS ENDED OCTOBER 31,
MONTHS
ENDED
APRIL 30,

1996 1995 1994 1993 1992 1991

Dividend return 2.74% 6.69% 5.27% 6.49% 7.01% 7.89%

Capital appreciation -2.02% 5.88% -11.30% 9.46% 2.20% 6.13%
return

Total return 0.72% 12.57% -6.03% 15.95% 9.21% 14.02%

<TABLE>
<CAPTION>
<S> <C> <C> <C>
PERIODS ENDED APRIL 30, 1996 PAST PAST 6 LIFE
MONTH MONTHS OF CLASS

Dividends per share 5.25(cents) 33.06(cents) 56.21(cents)

Annualized dividend rate 5.49% 5.55% 4.74%

30-day annualized yield 4.92% - -

30-day annualized tax-equivalent yield 7.69% - -

</TABLE>

DIVIDENDS per share show the income paid by the class for a set period. If
you annualize this number, based on an average net asset value of $11.63
over the past month, $11.94 over the past six months, and $11.86 over the
life of Class, 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. If Fidelity had not reimbursed certain class expenses
during the periods shown, the yield would have been 4.62%. 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

An interview with Tanya Roy, Portfolio Manager of Fidelity Advisor High
Income Municipal Fund
Q. HOW DID THE FUND PERFORM, TANYA?
A. As of April 30, 1996, the fund's Institutional Class shares had a total
return of 0.72% for the past six months and 6.82% for the past year. For
the same periods, the Lipper high-yield municipal debt funds average was
1.06% and 6.91%, respectively. Additionally, the Lehman Brothers Municipal
Bond Index returned 1.11% for the past six months and 7.95% for the past
year.
Q. WHY DID THE FUND UNDERPERFORM ITS PEERS?
A. The fund's performance was hurt by its interest in the Ford Heights,
Illinois incinerator project. In March, the governor of Illinois signed a
bill that repealed a tax subsidy supporting three incinerator projects in
the state, including Ford Heights. Ford Heights later entered bankruptcy
proceedings. Fidelity is currently devoting significant efforts to maximize
shareholder value.
Q. LOOKING AT THE GENERAL MARKET, WHAT'S HAPPENED IN THE PAST SIX MONTHS?
A. Bond prices have fallen and their yields have risen in response to
reports indicating surprising strength in the economy. Investors often
worry that a strong economy indicates the potential for inflation, which
erodes the value of fixed-income investments. For the municipal bond
market, however, performance relative to the U.S. Treasury market has been
favorable because of fading fears of radical tax reform and healthy demand
from certain market participants, including insurance companies. To get a
sense of relative performance, it's worth examining the ratio of municipal
yields to Treasury yields - expressed in percentage terms. A move from a
higher percentage (where municipals are less expensive) to a lower
percentage (where municipals are more expensive) indicates municipal bonds
have outperformed Treasuries. Six months ago, the ratio for 30-year bonds
stood at about 88%; today, it stands at about 82%.
Q. WHAT HAPPENED IN THE HIGH-YIELD MUNICIPAL MARKET?
A. It has performed relatively well. The difference in yield - or spread -
between high-yield and investment-grade municipal bonds has tightened,
illustrating good relative performance. A combination of factors has led to
the relative outperformance of high-yield versus investment-grade bonds.
First, high yield bonds tend to be less interest rate sensitive than higher
quality municipals. Therefore, during the period, their yields rose and
their prices declined less than the yields and prices of investment-grade
bonds. Second, new issuance was relatively muted in the high-yield sector,
leading to more demand than supply. Finally, we saw improved financial
performance in some sectors of the high-yield universe, which helped the
bonds' relative performance.
Q. WERE THERE ANY AREAS OF THE HIGH-YIELD MARKET THAT DID NOT PERFORM WELL?
A. One sector that underperformed recently was resource recovery projects
involved in recycling paper into pulp. Pulp and paper prices fell
dramatically in the past six months, which led to reduced financial
flexibility for some of these projects. As a result, many resource recovery
bonds issued to finance construction and start-up operations came under
pressure in the market and their prices declined more than the overall
high-yield market.
Q. WHAT ABOUT HOSPITAL BONDS?
A. Hospital bonds have performed in line with the general market. We
continued to see a wide range of credit developments, which reflects the
ongoing changes in the industry. One positive situation for the fund
involved Denver hospital HealthOne, which enjoyed strong gains when it
announced a merger. Subsequently, in what is known as a tender offer, the
issuer offered to exchange existing bonds for cash or new securities.
Q. HOW WOULD YOU DESCRIBE THE FUND'S ASSET ALLOCATION BY MATURITY?
A. The increase in the fund's holdings in the 10- to 15- year maturity area
reflects a modest reallocation to better match the interest rate
sensitivity of the fund's benchmark index.
Q. TANYA, WE UNDERSTAND THAT THERE WILL BE A CHANGE IN THE FUND'S
INVESTMENT POLICIES . . .
A. Yes, there will. As of June 24, the fund will adopt a policy that
limits its investments in defaulted securities to 10%. Previously, the
fund had no limit on its ability to invest in defaulted securities. We
believe a 10% limit - bringing the fund in line with the quality policies
of Fidelity's other aggressive municipal funds - will provide the fund with
sufficient flexibility to invest in these types of securities.
Q. WHAT'S YOUR OUTLOOK?
A. The issue of tax reform - while faded from view at the moment - is not
dead and will probably receive renewed attention as this presidential
election year progresses. Should tax reform emerge as an issue in the
presidential campaign, it could lead to the underperformance of municipals
relative to Treasuries - similar to what occurred last year. High-yield
municipals, however, should continue to perform well given the relative
strength of the economy and the limited amount of bond issuance. I also
continue to believe that municipal bonds represent an attractive investment
choice in the context of a diversified portfolio.
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.

TOP FIVE STATES AS OF APRIL 30, 1996
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE STATES
6 MONTHS AGO

New York 11.4 10.5

Pennsylvania 7.8 9.1

California 7.0 6.8

Michigan 6.4 8.6

Ohio 6.0 4.3

TOP FIVE SECTORS AS OF APRIL 30, 1996
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE SECTORS
6 MONTHS AGO

Health Care 24.9 27.6

Industrial Development 20.2 22.2

General Obligation 16.5 4.1

Electric Revenue 12.6 10.2

Transportation 6.5 7.9

AVERAGE YEARS TO MATURITY AS OF APRIL 30, 1996
6 MONTHS AGO

Years 17.2 18.4

AVERAGE YEARS TO MATURITY IS BASED ON THE AVERAGE TIME UNTIL PRINCIPAL
PAYMENTS ARE EXPECTED FROM EACH OF THE FUND'S BONDS, WEIGHTED BY DOLLAR
AMOUNT.
DURATION AS OF APRIL 30, 1996
6 MONTHS AGO

Years 7.2 7.7

Showing Percentage of Total Value of Investment in Securities

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
APRIL 30, 1996 (UNAUDITED)

ASSETS

Investment in securities, at value (cost $575,821,036) - $ 566,931,096
See accompanying schedule

Receivable for investments sold 7,000,112

Interest receivable 11,801,459

Receivable for daily variation on futures contracts 27,000

Prepaid expenses 3,996

TOTAL ASSETS 585,763,663

LIABILITIES

Payable to custodian bank $ 612,353

Payable for investments purchased

Regular delivery 4,024,134

Delayed delivery 7,047,411

Payable for fund shares redeemed 80,674

Distributions payable 987,359

Accrued management fee 185,383

Other payables and accrued expenses 302,344

TOTAL LIABILITIES 13,239,658

NET ASSETS $ 572,524,005

Net Assets consist of:

Paid in capital $ 594,998,679

Accumulated undistributed net realized gain (loss) (13,623,532)
on investments

Net unrealized appreciation (depreciation) on (8,851,142)
investments

NET ASSETS $ 572,524,005

CALCULATION OF MAXIMUM OFFERING PRICE $11.63
CLASS A:
NET ASSET VALUE, and redemption price per share
($534,268,171 (divided by) 45,935,858 shares)

Maximum offering price per share (100/96.50 of $11.63) $12.05

CLASS B: $11.61
NET ASSET VALUE, and offering price per share
($37,436,716 (divided by) 3,225,753 shares) A

INSTITUTIONAL CLASS: $11.64
NET ASSET VALUE, offering price and redemption price
per share ($819,118 (divided by) 70,388 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>
SIX MONTHS ENDED APRIL 30, 1996 (UNAUDITED)

INTEREST INCOME $ 19,138,808

EXPENSES

Management fee $ 1,192,202

Transfer agent fees 513,797
Class A

Class B 31,849

Institutional Class 646

Distribution fees 705,132
Class A

Class B 156,842

Accounting fees and expenses 118,102

Non-interested trustees' compensation 1,083

Custodian fees and expenses 14,763

Registration fees 22,169
Class A

Class B 12,144

Institutional Class 23,973

Audit 19,671

Legal 5,024

Miscellaneous 9,997

Total expenses before reductions 2,827,394

Expense reductions (27,792) 2,799,602

NET INTEREST INCOME 16,339,206

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

Investment securities (1,462,717)

Futures contracts 56,372 (1,406,345)

Change in net unrealized appreciation (depreciation) on:

Investment securities (11,065,953)

Futures contracts 38,798 (11,027,155)

NET GAIN (LOSS) (12,433,500)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ 3,905,706
FROM OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR ENDED
ENDED OCTOBER 31,
APRIL 30,1996 1995
(UNAUDITED)

INCREASE (DECREASE) IN NET ASSETS

Operations $ 16,339,206 $ 34,231,751
Net interest income

Net realized gain (loss) (1,406,345) (8,226,585)

Change in net unrealized appreciation (depreciation) (11,027,155) 40,030,641

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 3,905,706 66,035,807
FROM OPERATIONS

Distributions to shareholders (15,465,870) (33,101,699)
From net interest income
Class A

Class B (859,620) (1,127,659)

Institutional Class (13,716) (2,393)

TOTAL DISTRIBUTIONS (16,339,206) (34,231,751)

Share transactions - net increase (decrease) (12,722,982) 11,485,606

TOTAL INCREASE (DECREASE) IN NET ASSETS (25,156,482) 43,289,662

NET ASSETS

Beginning of period 597,680,487 554,390,825

End of period $ 572,524,005 $ 597,680,487

</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS - CLASS A
SIX MONTHS YEARS ENDED OCTOBER 31,
ENDED APRIL 30,
1996

(UNAUDITED) 1995 1994 D 1993 1992 1991

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

Net asset value, $ 11.880 $ 11.220 $ 12.720 $ 11.650 $ 11.410 $ 10.870
beginning of period

Income from Investment
Operations

Net investment .327 .700 .689 .710 .774 .803
income

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

Total from investment .077 1.360 (.741) 1.810 1.024 1.463
operations

Less Distributions

From net investment (.327) (.700) (.689) (.710) (.774) (.803)
income

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

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

Total distributions (.327) (.700) (.759) (.740) (.784) (.923)

Net asset value, end $ 11.630 $ 11.880 $ 11.220 $ 12.720 $ 11.650 $ 11.410
of period

TOTAL RETURN B, C 0.60% 12.50 (6.03) 15.95 9.21% 14.02%
% % %

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of $ 534,268 $ 565,131 $ 544,422 $ 497,575 $ 156,659 $ 67,135
period (000 omitted)

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

Ratio of net investment 5.51% 6.06 5.78% 5.59 6.59% 7.08%
income to average A % %
net assets

Portfolio turnover rate 57% 37 38% 27 13% 10%
A % %

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C>
SIX MONTHS YEARS ENDED
ENDED OCTOBER 31,
APRIL 30, 1996

(UNAUDITED) 1995 1994 E

SELECTED PER-SHARE DATA

Net asset value, beginning of period $ 11.860 $ 11.210 $ 11.610

Income from Investment Operations

Net investment income .286 .612 .188

Net realized and unrealized gain (loss) (.250) .650 (.400)

Total from investment operations .036 1.262 (.212)

Less Distributions

From net investment income (.286) (.612) (.188)

Net asset value, end of period $ 11.610 $ 11.860 $ 11.210

TOTAL RETURN B, C 0.26% 11.57% (1.86)%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 37,437 $ 32,395 $ 9,968

Ratio of expenses to average net assets 1.61% A 1.86% 2.09%
D A

Ratio of net investment income to average 4.83% A 5.18% 4.58%
net assets A

Portfolio turnover rate 57% A 37% 38%

</TABLE>

(UNAUDITED) 1995 E

SELECTED PER-SHARE DATA

Net asset value, beginning of period $ 11.880 $ 11.700

Income from Investment Operations

Net investment income .330 .232

Net realized and unrealized gain (loss) (.240) .180

Total from investment operations .090 .412

Less Distributions

From net investment income (.330) (.232)

Net asset value, end of period $ 11.640 $ 11.880

TOTAL RETURN B, C 0.72% 3.55%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 819 $ 154

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

Ratio of net investment income to average net assets 5.71% A 5.89% A

Portfolio turnover rate 57% A 37%

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
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 AGENTS
UMB Bank, n.a.
Kansas City, MO
Fidelity Investments Institutional Operations Company
Boston, MA
CUSTODIAN
UMB Bank, n.a.
Kansas City, MO
* INDEPENDENT TRUSTEES
GROWTH FUNDS
Fidelity Advisor Overseas Fund
Fidelity Advisor Mid Cap Fund
Fidelity Advisor Equity Growth Fund
Fidelity Advisor Global Resources Fund
Fidelity Advisor Growth
Opportunities Fund
Fidelity Advisor Strategic
Opportunities Fund
Fidelity Advisor Large Cap Fund
GROWTH AND INCOME FUNDS
Fidelity Advisor Equity Income Fund
Fidelity Advisor Income & Growth Fund
TAXABLE 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 Intermediate Bond Fund
Fidelity Advisor Short Fixed-Income Fund
MUNICIPAL FUNDS
Fidelity Advisor High Income
Municipal Fund
Fidelity Advisor Intermediate Municipal Income Fund
Fidelity Advisor Short-Intermediate Municipal Fund
STATE MUNICIPAL FUNDS
Fidelity Advisor California Municipal Income Fund
Fidelity Advisor New York Municipal Income 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)

CALIFORNIA MUNICIPAL INCOME
FUND - CLASS A & CLASS B

SEMIANNUAL REPORT
APRIL 30, 1996
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.

DEAR SHAREHOLDER:
Although stocks have managed to post solid returns through the first four
months of 1996, signs of strength in the economy have led to inflation
fears, causing some uncertainty in bond markets so far this year. In 1995,
both stock and bond markets posted strong results, while the year before,
stocks posted below-average returns and bonds had one of the worst years in
history.
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 CALIFORNIA MUNICIPAL INCOME FUND - CLASS A
PERFORMANCE: THE BOTTOM LINE

Advisor California Municipal Income - Class -2.67%
A

Advisor California Municipal Income - Class
A (incl. max. 3.50% sales charge) -6.07%

CUMULATIVE TOTAL RETURNS show Class A's performance in percentage terms
over a set period - in this case, since the fund started on February 20,
1996. 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 California Municipal Bond Index, which includes California
investment-grade municipal bonds with maturities of at least one year. You
may also want to look at the performance of the California municipal debt
funds average 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.
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 APRIL 30, 1996

LIFE OF
FUND

Dividend return 0.63%

Capital appreciation return -3.30%

Total return -2.67%

Dividends per share 3.59(cents)

Annualized dividend rate 4.53%

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 $9.65
over the past month.
ADVISOR CALIFORNIA MUNICIPAL INCOME FUND - CLASS B
PERFORMANCE: THE BOTTOM LINE

Advisor California Municipal Income - Class B -2.84%

Advisor California Municipal Income - Class B -6.71%
(incl. 4.00% contingent deferred sales
charge)

CUMULATIVE TOTAL RETURNS show Class B's performance in percentage terms
over a set period - in this case, since the fund began on February 20,
1996. 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 California Municipal Bond Index, which includes California
investment-grade municipal bonds with maturities of at least one year. You
may also want to look at the performance of the California municipal debt
funds average 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.
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 0.56%

Capital appreciation return -3.40%

Total return -2.84%

Dividends per share 3.07(cents)

Annualized dividend rate 3.87%

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 $9.64
over the past month.
FUND TALK: THE MANAGER'S OVERVIEW

An interview with Jonathan Short, Portfolio Manager of Advisor California
Municipal Income Fund
Q. JON, HOW HAS THE FUND PERFORMED?
A. This fund was introduced on February 20, 1996. Fidelity generally looks
at performance for six- or 12-month periods. For this report, we will look
at performance since inception. For the period ended April 30, 1996, the
total returns for Class A and Class B were -2.67% and -2.84%, respectively.
In the next report, we will compare the fund's performance to that of its
benchmark, the Lehman Brothers California Municipal Bond Index, as well as
the Lipper California municipal debt funds average.
Q. LET'S TALK ABOUT THE WAY YOU'VE STRUCTURED THE FUND SO FAR . . .
A. Sure. Since the fund began, I've made a conscious effort to position the
fund all along the yield curve and to purchase non-callable bonds. I have
been targeting non-callable bonds because I believe that they have total
return characteristics that are more attractive than those of callable
bonds, whose upside potential can be limited. I have also been able to buy
a number of BBB-rated issues that I felt offered attractive yields for
their credit risk.
Q. THE FUND STARTED AT A PRETTY VOLATILE TIME IN THE MUNICIPAL MARKET. WHAT
EFFECT DID THAT HAVE ON YOUR BUYING?
A. In early March of this year, an employment report came out showing that
job growth for February far exceeded most expectations. The bond market
took quite a tumble - Treasury futures closed down three points that day -
and it's been struggling to recover. Municipals, however, have outperformed
Treasuries during this period and, though both markets have had negative
returns, munis have done better than Treasuries on a relative basis. For
the fund, this market has for the most part created an opportunity to buy
bonds that other investors were selling.
Q. HAVE THERE BEEN ANY DISAPPOINTMENTS OVER THE PAST SIX MONTHS?
A. One of the few disappointments I had over the period involved a hospital
issue that our analysts felt strongly positive about. I was only able to
buy a small amount of that issue, not nearly as much as I wanted. Some good
credit news regarding the bonds came out afterward, and I just wasn't able
to take as much advantage of the opportunity as I would have liked.
Q. WHAT ARE YOUR THOUGHTS ON THE STATE OF CALIFORNIA'S CREDIT STATUS?
A. Well, first let's back up a little bit. Since the harsh recession of
1992-93, California has undergone a major structural change. The state has
shifted from a defense- and aerospace-focused economy to one driven by high
tech, tourism and entertainment. This past year was a real turning point,
as the deficit the state had accumulated in the early 1990s was finally
erased. In fact, for the fiscal year ending June 30, the state is
projecting that revenues will come in roughly $1 billion ahead of budget.
That said, there's still much work to do to ensure that the state maintains
its improved fiscal condition. Rather than letting this year's surplus bail
it out of making significant changes in its fiscal management, the state
needs to continue to make intelligent budget decisions. If it does make
those tough choices, California may be able to continue to enhance its
credit standing.
Q. WHAT SPECIFIC AREAS ARE YOU FOCUSING ON WITHIN THE STATE MUNICIPAL
MARKET?
A. I've been buying a fair amount of general obligation, state-issued debt,
since I view the state's credit as improving. The state was recently
upgraded by Fitch Investor Service to A+ from A, and its obligations are
trading well in the marketplace. As I noted earlier, I have also tried to
add some exposure to BBB-rated securities. There have been a few situations
where our research staff has identified opportunities to receive an
attractive yield for the credit risk we have taken on.
Q. PROBABLY THE TWO MOST NOTED COUNTIES IN CALIFORNIA ARE ORANGE AND LOS
ANGELES COUNTIES. WHAT'S YOUR EXPOSURE THERE?
A. I don't own any direct obligations of Orange County. Los Angeles County
is an interesting story. I'd like to see a balanced budget this year that
doesn't rely on the "one-shots" that it's used in the past, such as selling
county assets. I think a more sound approach would involve consolidating
some of the agencies within the county, creating better relationships with
the labor unions and overhauling the massive county hospital system. More
broadly, it needs to take a hard look at what its resources are and what it
can do to gain some efficiencies in serving its constituents. The fund has
one direct obligation of Los Angeles County, a zero coupon bond that
represents less than 1% of the fund's assets.
Q. WHAT'S YOUR OUTLOOK FOR THE NEXT SEVERAL MONTHS?
A. Overall, I'd have to say I feel very positive about the state, as I
think the California economy is going to outperform the nation in both 1996
and 1997. This strong economy should pass through to state and local
governments in the form of higher revenues and, hopefully, improved credit
quality. The state is now entering its budget season and the final budget
that's adopted will be an important indication of the direction the state
will take. Overall, I feel the state is taking a conservative view toward
revenues while remaining relatively tough on expenditures, and there's a
general sense of optimism that California is on the right track.
Q. WE UNDERSTAND THAT THERE WILL BE SOME CHANGES IN THE FUND'S INVESTMENT
POLICIES . . .
A. Yes, there will. As of June 24, the fund will use two additional
agencies - Duff & Phelps Credit Rating Co. and Fitch Investors Service,
L.P., as well as the Moody's Investors Service and Standard & Poor's
agencies the fund already uses - to determine the credit quality of the
fund's bonds. In addition, as of June 24, the fund will reserve the right
to invest up to 5% in non-investment grade securities. The fund does not
intend to seek out the lower quality bonds. Instead, this change gives the
fund additional flexibility under unusual circumstances.
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: a high level of current
income free from federal
income tax and California
state personal income tax by
investing primarily in municipal
securities
START DATE: February 20, 1996
SIZE: as of April 30, 1996,
more than $2 million
MANAGER: Jonathan Short,
since February 1996; manager,
Fidelity California Municipal
Income Fund, since March
1995; Fidelity California
Insured Municipal Income,
Fidelity Minnesota Municipal
Income, Spartan California
Municipal Income, Spartan
California Intermediate Municipal
Income, since October 1995;
joined Fidelity in 1990
(checkmark)
JONATHAN SHORT ON HIS
INVESTMENT PHILOSOPHY:
"My overall philosophy in
managing a portfolio is to
stress balance in both
security structure and
positioning along the yield
curve. At the same time, of
course, I'm trying to maintain
the highest yield and
tax-exempt income possible
for my shareholders. I
generally like to focus on
non-callable securities
whenever the spread
relationship between
non-callables and callables is
attractive. In an environment
where the bond market is
rallying, callable bonds can be
taken away by their issuer,
while non-callables can't, which
can give non-callables an
advantage when it comes to
total return. I do pay strict
attention to whether the slope
of the yield curve is providing
adequate yield
compensation relative to
risk. As far as credit quality, I
feel that in the current
environment credit spreads
are fairly tight, and the
difference between AAA and
BBB bonds is not as
significant as it could be. I'll
continue to be active in
positioning the fund in those
areas of credit quality that I
feel will provide the best
long-term value for investors.
I also try to manage the fund
to have a fairly constant
duration, one that's in line with
its benchmark index."

INVESTMENT SUMMARY

TOP FIVE SECTORS AS OF APRIL 30, 1996
% OF FUND'S
INVESTMENTS

Electric Revenue 24.9

General Obligation 21.1

Water & Sewer 17.4

Special Tax 13.6

Industrial Development 11.8

AVERAGE YEARS TO MATURITY AS OF APRIL 30, 1996

Years 12.6

AVERAGE YEARS TO MATURITY IS BASED ON THE AVERAGE TIME UNTIL PRINCIPAL
PAYMENTS ARE EXPECTED FROM EACH OF THE FUND'S BONDS, WEIGHTED BY DOLLAR
AMOUNT.
DURATION AS OF APRIL 30, 1996

Years 7.9

Aaa 43.4%
Aa, A 32.7%
Baa 12.1%
Ba, B 0.0%
Non-rated 0.0%
Short-term investments 11.8%
Row: 1, Col: 1, Value: 43.4
Row: 1, Col: 2, Value: 32.7
Row: 1, Col: 3, Value: 12.1
Row: 1, Col: 4, Value: 0.0
Row: 1, Col: 5, Value: 0.0
Row: 1, Col: 6, Value: 11.8
SHOWN AS A PERCENTAGE OF THE FUND'S INVESTMENTS. WHERE MOODY'S RATINGS ARE
NOT AVAILABLE, WE HAVE USED S&P RATINGS.
FIDELITY ADVISOR CALIFORNIA MUNICIPAL INCOME FUND
INVESTMENTS APRIL 30, 1996 (UNAUDITED)

Showing Percentage of Total Value of Investments in Securities

MUNICIPAL BONDS - 88.2%
MOODY'S PRINCIPAL VALUE
RATINGS (C) AMOUNT (NOTE 1)
CALIFORNIA - 86.3%
California Dept. Wtr. Resource Rev.
(Central Valley Proj.) 5% 12/1/22 Aa $ 100,000 $ 86,500
California Gen. Oblig. 5.75% 11/1/12 A1 130,000 130,650
California Pub. Works Board Lease Rev.:
(Commty. College Projs.) Series C, 6% 3/1/05
(AMBAC Insured) A 80,000 85,000
(Univ. of California Projs.) Series B, 5%6/1/05 A1 230,000 225,688
Central California Joint Pwrs. Health Fing.
Auth. Rfdg. (Commty. Hosp. of Central
California Proj.) 5% 2/1/23 A 50,000 40,438
Central Valley Fing. Auth. Rev. (Cogeneration Proj.)
(Carson Ice Gen. Proj.) 5.70% 7/1/03 BBB- 100,000 99,750
East Bay Muni. Util. Dist. Wastewater Treatment
Sys. Rev. 6% 6/1/06 (FGIC Insured) Aaa 100,000 106,250
East Bay Muni. Util. Dist. Wtr. Sys. Rev.:
6% 6/1/01 (FGIC Insured) Aaa 75,000 79,313
6.50% 6/1/24 (AMBAC Insured) (Pre-refunded
to 6/1/04 @102) (d) Aaa 75,000 84,188
Foothill/Eastern Trans. Corridor Agcy. Toll Rd.
Rev. (Sr. Lien) Series A, 6% 1/1/34 Baa 100,000 93,125
Los Angeles County Ctfs. of Prtn. (Cap. Appreciation)
(Disney Parking Proj.) 0% 9/1/16 Baa1 100,000 24,750
Los Angeles County Trans. Commission Sales Tax
Rev. Rfdg. Series B, 6.50% 7/1/10 (e) A1 150,000 164,813
Los Angeles Wastewater Sys. Rev. Rfdg. Series A,
5% 2/1/11 (FGIC Insured) Aaa 100,000 93,125
Northern California Pwr. Agcy. Pub. Pwr. Rev. Rfdg.:
(Geothermal Proj. #3) Series B, 5% 7/1/99
(AMBAC Insured) Aaa 100,000 101,625
(Geothermal Proj.) Series A, 5.85% 7/1/10
(AMBAC Insured) Aaa 100,000 103,000
Redding Joint Pwrs. Fing. Auth. Elec. Sys. Rev.
Series A, 5.50% 6/1/05, (MBIA Insured) Aaa 100,000 102,875
San Bernardino County Ctfs. of Prtn.
(Med. Ctr. Fing. Proj.) Series A,
5.50% 8/1/15 (MBIA Insured) Aaa 100,000 94,875
San Francisco Bay Area Rapid Transit Dist. Sales
Tax Rev. 5.50% 7/1/20 (FGIC Insured) Aaa 100,000 94,875
San Francisco City & County Swr. Rev. Rfdg.
5.50% 10/1/01 (AMBAC Insured) Aaa 75,000 77,813
San Jose Redev. Agcy. Tax Alloc. Rev.
(Merged Area Redev. Proj.)
5% 8/1/20 (MBIA Insured) Aaa 100,000 87,250
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (C) AMOUNT (NOTE 1)
CALIFORNIA - CONTINUED
Sequoia Hosp. Dist. Rev. 5.375% 8/15/23 Baa1 $ 50,000 $ 40,688
Southern California Pub. Pwr. Auth. Rev. Rfdg.
(Transmission Proj.) Series B, 7.25% 7/1/06 Aa 95,000 97,773
Turlock Irrigation Dist. Rev. Rfdg. Series A,
6% 1/1/07 (MBIA Insured) Aaa 75,000 79,215
2,193,579
GUAM - 1.9%
Guam Pwr. Auth. Series A, 6.30% 10/1/12 BBB 50,000 49,313
TOTAL MUNICIPAL BONDS
(Cost $2,317,745) 2,242,892
MUNICIPAL NOTES (A) - 11.8%
CALIFORNIA
California Poll. Cont. Fing. Auth. Resource Recovery Rev. (b):
(Burney Forest Products Proj.)
Series 1989 A, 3.95%,
LOC Natl. Westminster Bank, VRDN P-1 100,000 100,000
(Malaga Proj.) Series A, 4.15%, LOC Bank of
America Nat'l. Trust & Savings, VRDN - 100,000 100,000
California Poll. Cont. Fin. Auth. Solid Waste Disp.
Rev. (Shell Oil Co.)(Martinez Proj.)
Series 1994 A, 3.95% 10/1/24, VRDN (b) VMIG 1 100,000 100,000
TOTAL MUNICIPAL NOTES
(Cost $300,000) 300,000
TOTAL INVESTMENTS - 100%
(Cost $2,617,745) $ 2,542,892
FUTURES CONTRACTS
EXPIRATION UNDERLYING FACE UNREALIZED
DATE AMOUNT AT VALUE GAIN/(LOSS)
PURCHASED
2 Municipal Bond Contracts June 1996 $ 222,500 $ (1,049)
THE FACE VALUE OF FUTURES PURCHASED AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 8.7%
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. Private activity obligations whose interest is subject to the federal
alternative minimum tax for individuals.
3. Standard & Poor's credit ratings are used in the absence of a rating by
Moody's Investors Service, Inc.
4. Security collateralized by an amount sufficient to pay interest and
principal.
5. A portion of the security was pledged to cover margin requirements for
futures contracts. At the period end, the value of securities pledged
amounted to $54,938.
INCOME TAX INFORMATION
At April 30, 1996, the aggregate cost of investment securities for income
tax purposes was $2,617,745. Net unrealized depreciation aggregated
$74,853, of which $245 related to appreciated investment securities and
$75,098 related to depreciated investment securities.
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 76.7% AAA, AA, A 77.0%
Baa 20.3% BBB 15.0%
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 0.0%.
The distribution of municipal securities by revenue source, as a percentage
of total value of investment in securities, is as follows:
Electric Revenue 24.9%
General Obligation 21.1
Water and Sewer 17.4
Special Tax 13.6
Industrial Development 11.8
Others (individually less than 5%) 11.2
TOTAL 100.0%
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
APRIL 30, 1996 (UNAUDITED)

ASSETS

Investment in securities, at value (cost $2,617,745) - $ 2,542,892
See accompanying schedule

Cash 33,295

Interest receivable 39,254

Prepaid expenses 34,158

Receivable from investment adviser for expense 20,871
reductions

TOTAL ASSETS 2,670,470

LIABILITIES

Accrued management fee $ 788

Distribution fees payable 267

Payable for daily variation on futures contracts 1,228

Other payables and accrued expenses 19,278

TOTAL LIABILITIES 21,561

NET ASSETS $ 2,648,909

Net Assets consist of:

Paid in capital $ 2,725,934

Accumulated undistributed net realized gain (loss) (1,123)
on investments

Net unrealized appreciation (depreciation) on (75,902)
investments

NET ASSETS $ 2,648,909

CALCULATION OF MAXIMUM OFFERING PRICE $9.67
CLASS A:
NET ASSET VALUE, and redemption price per share
($618,220 (divided by) 63,952 shares)

Maximum offering price per share (100/96.50 of $9.67) $10.02

CLASS B: $9.66
NET ASSET VALUE, offering price and redemption price
per share ($281,524 (divided by) 29,137 shares) A

INSTITUTIONAL CLASS: $9.63
NET ASSET VALUE, offering price and redemption price
per share ($1,749,165 (divided by) 181,619 shares)

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

</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
FEBRUARY 20, 1996 (COMMENCEMENT OF OPERATIONS) TO APRIL 30, 1996 (UNAUDITED)

INTEREST INCOME $ 20,533

EXPENSES

Management fee $ 1,716

Transfer agent fees 143
Class A

Class B 79

Institutional Class 286

Distribution fees 148
Class A

Class B 317

Accounting fees and expenses 11,552

Registration fees 4,361
Class A

Class B 4,079

Institutional Class 5,253

Audit 7,577

Total expenses before reductions 35,511

Expense reductions (31,824) 3,687

NET INTEREST INCOME 16,846

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

Investment securities (1,074)

Futures contracts (49) (1,123)

Change in net unrealized appreciation (depreciation) on:

Investment securities (74,853)

Futures contracts (1,049) (75,902)

NET GAIN (LOSS) (77,025)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ (60,179)
FROM OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS
FEBRUARY 20, 1996
(COMMENCEMENT
OF
OPERATIONS) TO
APRIL 30,1996
(UNAUDITED)
<TABLE>
<CAPTION>
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS

Operations $ 16,846
Net interest income

Net realized gain (loss) (1,123)

Change in net unrealized appreciation (depreciation) (75,902)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (60,179)

Distributions to shareholders from:
Net interest income

Class A (1,747)

Class B (927)

Institutional Class (14,172)

TOTAL DISTRIBUTIONS (16,846)

Share transactions - net increase (decrease) 2,725,934

TOTAL INCREASE (DECREASE) IN NET ASSETS 2,648,909

NET ASSETS

Beginning of period -

End of period $ 2,648,909
</TABLE>
FINANCIAL HIGHLIGHTS - CLASS A
FEBRUARY 20, 1996
(COMMENCEMENT
OF
OPERATIONS) TO
APRIL 30, 1996

(UNAUDITED)

SELECTED PER-SHARE DATA

Net asset value, begining of period $ 10.000

Income from Investment Operations

Net interest income .064

Net realized and unrealized gain (loss) (.330)

Total from investment operations (.266)

Less Distributions

From net interest income (.064)

Net asset value, end of period $ 9.670

TOTAL RETURN B (2.67)%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 618

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

Ratio of net interest income to average net assets 2.95% A

Portfolio turnover 3% A

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.
C FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD HAVE
BEEN HIGHER (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS).
FINANCIAL HIGHLIGHTS - CLASS B
FEBRUARY 20, 1996
(COMMENCEMENT
OF
OPERATIONS) TO
APRIL 30, 1996

(UNAUDITED)

SELECTED PER-SHARE DATA

Net asset value, begining of period $ 10.000

Income from Investment Operations

Net interest income .056

Net realized and unrealized gain (loss) (.340)

Total from investment operations (.284)

Less Distributions

From net interest income (.056)

Net asset value, end of period $ 9.660

TOTAL RETURN B (2.84)%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 282

Ratio of expenses to average net assets 1.65% A, C

Ratio of net interest income to average net assets 2.66% A

Portfolio turnover 3% A

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.
C FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD HAVE
BEEN HIGHER (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS).
FINANCIAL HIGHLIGHTS - INSTITUTIONAL CLASS
FEBRUARY 20, 1996
(COMMENCEMENT
OF
OPERATIONS) TO
APRIL 30, 1996

(UNAUDITED)

SELECTED PER-SHARE DATA

Net asset value, begining of period $ 10.000

Income from Investment Operations

Net interest income .087

Net realized and unrealized gain (loss) (.370)

Total from investment operations (.283)

Less Distributions

From net interest income (.087)

Net asset value, end of period $ 9.630

TOTAL RETURN B (2.83)%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 1,749

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

Ratio of net interest income to average net assets 4.22% A

Portfolio turnover 3% A

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.
C FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD HAVE
BEEN HIGHER (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS)
NOTES TO FINANCIAL STATEMENTS
For the period ended April 30, 1996 (Unaudited)

1. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity Advisor California Municipal Income 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 February 20, 1996. 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 financial statements have been prepared in conformity with generally
accepted accounting principles which permit management to make certain
estimates and assumptions at the date of the financial statements. 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 each class and shares of each class for
distribution under federal and state securities law. These expenses are
borne by each class and amortized over one year.
1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
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 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. Futures contracts
involve, to varying degrees, risk of loss in excess of the futures
variation margin reflected in the Statement of Assets and Liabilities. The
underlying face amount at value of any open futures contracts at period end
is shown in the schedule of investments under the caption "Futures
Contracts". The amount reflects each contract's exposure to the underlying
instrument at period end. Losses may arise from changes in the value of the
underlying instruments, if there is an illiquid secondary market for the
contracts, or if the counterparties do not perform under the contracts'
terms.
Futures contracts are valued at the settlement price established each day
by the board of trade or exchange on which they are traded. Exchange-traded
options are valued using the last sale price or, in the absence of a sale,
the last offering price. Options traded over-the-counter are valued using
dealer-supplied valuations.
3. PURCHASES AND SALES OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $2,330,941 and $10,822, respectively.
The market value of futures contracts opened and closed during the period
amounted to $337,277 and $113,678, 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 .1100% to
.3700% for the period. In the event that these rates were lower than the
contractual rates in effect
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
MANAGEMENT FEE - CONTINUED
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 .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 .90% (of which
.65% 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 $148 and $317 under the
Class A Plan and Class B Plan, respectively, of which $148 and $88 were
paid to securities dealers, banks and other financial institutions for the
distribution of Class A and Class B shares, respectively, 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. The Plans also authorize payments to third
parties that assist in the sale of the fund's shares or render shareholder
support services.
SALES LOAD. FDC receives a front-end sales charge of up to 3.50% for
selling Class A shares of the fund. For the period, FDC received sales
charges of $7,033 on sales of Class A shares of the fund, of which $6,539
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. 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 Class 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 Class 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
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
TRANSFER AGENT FEES AND ACCOUNTING FEES - CONTINUED
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
$11,552.
For the period the transfer agent fees were equivalent to an annualized
rate of .24%, .23% and .09% of average net assets for Class A, Class B and
Institutional Class, respectively.
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%, 1.65%, and 0.75% of average net
assets for Class A, Class B, and Institutional Class, respectively. For the
period, the reimbursement reduced expenses by $6,797, $5,802, and $19,225
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 27.0%, 32.4% 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
APRIL 30, 1996 A

SHARES DOLLARS

CLASS A

Sold 63,748 $ 623,524

Reinvestment of dividends from net interest income 204 1,975

Redeemed - -

Net increase (decrease) 63,952 $ 625,499

</TABLE>

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

Sold 29,068 $ 284,066

Reinvestment of dividends from net interest income 69 665

Redeemed - -

Net increase (decrease) 29,137 $ 284,731

</TABLE>

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

Sold 180,001 $ 1,800,010

Reinvestment of dividends from net interest income 1,618 15,694

Redeemed - -

Net increase (decrease) 181,619 $ 1,815,704

</TABLE>

A SHARE TRANSACTIONS FOR CLASS A, CLASS B AND INSTITUTIONAL CLASS ARE FOR
THE PERIOD FEBRUARY 20, 1996 (COMMENCEMENT OF SALE OF SHARES) TO APRIL 30,
1996.

INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Fred L. Henning, 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 AGENTS
UMB Bank, n.a.
Kansas City, MO
State Street Bank and Trust Company
Boston, MA - Class A
Fidelity Investments Institutional Operations Company
Boston, MA - Class B
CUSTODIAN
UMB Bank, n.a.
Kansas City, MO
* INDEPENDENT TRUSTEES
GROWTH FUNDS
Fidelity Advisor Overseas Fund
Fidelity Advisor Mid Cap Fund
Fidelity Advisor Equity Growth Fund
Fidelity Advisor Global Resources Fund
Fidelity Advisor Growth
Opportunities Fund
Fidelity Advisor Strategic
Opportunities Fund
Fidelity Advisor Large Cap Fund
GROWTH AND INCOME FUNDS
Fidelity Advisor Equity Income Fund
Fidelity Advisor Income & Growth Fund
TAXABLE 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 Intermediate Bond Fund
Fidelity Advisor Short Fixed-Income Fund
MUNICIPAL FUNDS
Fidelity Advisor High Income
Municipal Fund
Fidelity Advisor Intermediate Municipal Income Fund
Fidelity Advisor Short-Intermediate Municipal Income Fund
STATE MUNICIPAL FUNDS
Fidelity Advisor California Municipal Income Fund
Fidelity Advisor New York Municipal Income 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)

CALIFORNIA MUNICIPAL INCOME
FUND - INSTITUTIONAL CLASS

SEMIANNUAL REPORT
APRIL 30, 1996
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.

DEAR SHAREHOLDER:
Although stocks have managed to post solid returns through the first four
months of 1996, signs of strength in the economy have led to inflation
fears, causing some uncertainty in bond markets so far this year. In 1995,
both stock and bond markets posted strong results, while the year before,
stocks posted below-average returns and bonds had one of the worst years in
history.
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 CALIFORNIA MUNICIPAL INCOME FUND - INSTITUTIONAL CLASS
PERFORMANCE: THE BOTTOM LINE

Advisor California Municipal Income -
Institutional Class -2.83%

CUMULATIVE TOTAL RETURNS show Institutional Class' performance in
percentage terms over a set period - in this case, since the fund started
on February 20, 1996. 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 California Municipal Bond Index,
which includes California investment-grade municipal bonds with maturities
of at least one year. You may also want to look at the performance of the
California municipal debt funds average 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.
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 0.87%

Capital appreciation return -3.70%

Total return -2.83%

Dividends per share 4.12(cents)

Annualized dividend rate 5.21%

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 $9.63
over the past month.
FUND TALK: THE MANAGER'S OVERVIEW

An interview with Jonathan Short, Portfolio Manager of Advisor California
Municipal Income Fund
Q. JON, HOW HAS THE FUND PERFORMED?
A. This fund was introduced on February 20, 1996. Fidelity generally looks
at performance for six- or 12-month periods. For this report, we will look
at performance since inception. For the period ended April 30, 1996, the
Institutional Class' total return was -2.83%. In the next report, we will
compare the fund's performance to that of its benchmark, the Lehman
Brothers California Municipal Bond Index, as well as the Lipper California
municipal debt funds average.
Q. LET'S TALK ABOUT THE WAY YOU'VE STRUCTURED THE FUND SO FAR . . .
A. Sure. Since the fund began, I've made a conscious effort to position the
fund all along the yield curve and to purchase non-callable bonds. I have
been targeting non-callable bonds because I believe that they have total
return characteristics that are more attractive than those of callable
bonds, whose upside potential is limited. I have also been able to buy a
number of BBB-rated issues that I felt offered attractive yields for their
credit risk.
Q. THE FUND STARTED AT A PRETTY VOLATILE TIME IN THE MUNICIPAL MARKET. WHAT
EFFECT DID THAT HAVE ON YOUR BUYING?
A. In early March of this year, an employment report came out showing that
job growth for February far exceeded most expectations. The bond market
took quite a tumble - Treasury futures closed down three poionts that day -
and it's been struggling to recover. Municipals, however, have outperformed
Treasuries during this period and, though both markets have had negative
returns, munis have done better than Treasuries on a relative basis. For
the fund, this market has for the most part created an opportunity to buy
bonds that other investors were selling.
Q. HAVE THERE BEEN ANY DISAPPOINTMENTS OVER THE PAST SIX MONTHS?
A. One of the few disappointments I had over the period involved a hospital
issue that our analysts felt strongly positive about. I was only able to
buy a small amount of that issue, not nearly as much as I wanted. Some good
credit news regarding the bonds came out afterward, and I just wasn't able
to take as much advantage of the opportunity as I would have liked.
Q. WHAT ARE YOUR THOUGHTS ON THE STATE OF CALIFORNIA'S CREDIT STATUS?
A. Well, first let's back up a little bit. Since the harsh recession of
1992-93, California has undergone a major structural change. The state has
shifted from a defense- and aerospace-focused economy to one driven by high
tech, tourism and entertainment. This past year was a real turning point,
as the deficit the state had accumulated in the early 1990s was finally
erased. In fact, for the fiscal year ending June 30, the state is
projecting that revenues will come in roughly $1billion ahead of budget.
That said, there's still much work to do to ensure that the state maintains
its improved fiscal condition. Rather than letting this year's surplus bail
it out of making significant changes in its fiscal management, the state
needs to continue to make intelligent budget decisions. If it does make
those tough choices, California may be able to continue to enhance its
credit standing.
Q. WHAT SPECIFIC AREAS ARE YOU FOCUSING ON WITHIN THE STATE MUNICIPAL
MARKET?
A. I've been buying a fair amount of general obligation, state-issued debt,
since I view the state's credit as improving. The state was recently
upgraded by Fitch Investor Service to A+ from A, and its obligations are
trading well in the marketplace. As I noted earlier, I have also tried to
add some more exposure to BBB-rated securities. There have been a few
situations where our research staff has identified opportunities to receive
an attractive yield for the credit risk we have taken on.
Q. PROBABLY THE TWO MOST NOTED COUNTIES IN CALIFORNIA ARE ORANGE AND LOS
ANGELES COUNTIES. WHAT'S YOUR EXPOSURE THERE?
A. I don't own any direct obligations of Orange County. Los Angeles County
is an interesting story. I'd like to see a balanced budget this year that
doesn't rely on the "one-shots" that it's used in the past, such as selling
county assets. I think a more sound approach would involve consolidating
some of the agencies within the county, creating better relationships with
the labor unions and overhauling the massive county hospital system. More
broadly, it needs to take a hard look at what its resources are and what it
can do to gain some efficiencies in serving its constituents. The fund has
one direct obligation of Los Angeles County, a zero coupon bond that
represents less than 1% of the fund's assets.
Q. WHAT'S YOUR OUTLOOK FOR THE NEXT SEVERAL MONTHS?
A. Overall, I'd have to say I feel very positive about the state, as I
think the California economy is going to outperform the nation in both 1996
and 1997. This strong economy should pass through to state and local
governments in the form of higher revenues and, hopefully, improved credit
quality. The state is now entering its budget season and the final budget
that's adopted will be an important indication of the direction the state
will take. Overall, I feel the state is taking a conservative view toward
revenues while remaining relatively tough on expenditures, and there's a
general sense of optimism that California is on the right track.
Q. WE UNDERSTAND THAT THERE WILL BE SOME CHANGES IN THE FUND'S INVESTMENT
POLICIES . . .
A. Yes, there will. As of June 24, the fund will use two additional
agencies - Duff & Phelps Credit Rating Co. and Fitch Investors Service,
L.P., as well as the Moody's Investors Service and Standard & Poor's
agencies the fund already uses - to determine the credit quality of the
fund's bonds. In addition, as of June 24, the fund will reserve the right
to invest up to 5% in non-investment grade securities. The fund does not
intend to seek out the lower quality bonds. Instead, this change gives the
fund additional flexibility under unusual circumstances.
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: a high level of current
income free from federal
income tax and California state
personal income tax by
investing primarily in municipal
securities
START DATE: February 20, 1996
SIZE: as of April 30, 1996,
more than $2 million
MANAGER: Jonathan Short,
since February 1996; manager
Fidelity California Municipal
Income Fund, since March
1995; Fidelity California
Insured Municipal Income,
Fidelity Minnesota Municipal
Income, Spartan California
Municipal Income, Spartan
California Intermediate
Municipal Income, since
October 1995; joined Fidelity
in 1990
(checkmark)
JONATHAN SHORT ON HIS
INVESTMENT PHILOSOPHY:
"My overall philosophy in
managing a portfolio is to
stress balance in both
security structure and
positioning along the yield
curve. At the same time, of
course, I'm trying to maintain
the highest yield and
tax-exempt income possible
for my shareholders. I
generally like to focus on
non-callable securities
whenever the spread
relationship between
non-callables and callables is
attractive. In an environment
where the bond market is
rallying, callable bonds can be
taken away by their issuer,
while non-callables can't, which
can give non-callables an
advantage when it comes to
total return. I do pay strict
attention to whether the slope
of the yield curve is providing
adequate yield
compensation relative to
risk. As far as credit quality, I
feel that in the current
environment credit spreads
are fairly tight, and the
difference between AAA and
BBB bonds is not as
significant as it could be. I'll
continue to be active in
positioning the fund in those
areas of credit quality that I
feel will provide the best
long-term value for investors.
I also try to manage the fund
to have a fairly constant
duration, one that's in line with
its benchmark index."

INVESTMENT SUMMARY

TOP FIVE SECTORS AS OF APRIL 30, 1996
% OF FUND'S
INVESTMENTS

Electric Revenue 24.9

General Obligation 21.1

Water & Sewer 17.4

Special Tax 13.6

Industrial Development 11.8

AVERAGE YEARS TO MATURITY AS OF APRIL 30, 1996

Years 12.6

AVERAGE YEARS TO MATURITY IS BASED ON THE AVERAGE TIME UNTIL PRINCIPAL
PAYMENTS ARE EXPECTED FROM EACH OF THE FUND'S BONDS, WEIGHTED BY DOLLAR
AMOUNT.
DURATION AS OF APRIL 30, 1996

Years 7.9

Showing Percentage of Total Value of Investments in Securities

STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
APRIL 30, 1996 (UNAUDITED)

ASSETS

Investment in securities, at value (cost $2,617,745) - $ 2,542,892
See accompanying schedule

Cash 33,295

Interest receivable 39,254

Prepaid expenses 34,158

Receivable from investment adviser for expense 20,871
reductions

TOTAL ASSETS 2,670,470

LIABILITIES

Accrued management fee $ 788

Distribution fees payable 267

Payable for daily variation on futures contracts 1,228

Other payables and accrued expenses 19,278

TOTAL LIABILITIES 21,561

NET ASSETS $ 2,648,909

Net Assets consist of:

Paid in capital $ 2,725,934

Accumulated undistributed net realized gain (loss) (1,123)
on investments

Net unrealized appreciation (depreciation) on (75,902)
investments

NET ASSETS $ 2,648,909

CALCULATION OF MAXIMUM OFFERING PRICE $9.67
CLASS A:
NET ASSET VALUE, and redemption price per share
($618,220 (divided by) 63,952 shares)

Maximum offering price per share (100/96.50 of $9.67) $10.02

CLASS B: $9.66
NET ASSET VALUE, offering price and redemption price
per share ($281,524 (divided by) 29,137 shares) A

INSTITUTIONAL CLASS: $9.63
NET ASSET VALUE, offering price and redemption price
per share ($1,749,165 (divided by) 181,619 shares)

A REDEMPTION PRICE PER SHARE IS EQUAL TO NET ASSET VALUE LESS ANY
APPLICABLE DEFERRED SALES CHARGE.
STATEMENT OF OPERATIONS
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
FEBRUARY 20, 1996 (COMMENCEMENT OF OPERATIONS) TO APRIL 30, 1996 (UNAUDITED)

INTEREST INCOME $ 20,533

EXPENSES

Management fee $ 1,716

Transfer agent fees 143
Class A

Class B 79

Institutional Class 286

Distribution fees 148
Class A

Class B 317

Accounting fees and expenses 11,552

Registration fees 4,361
Class A

Class B 4,079

Institutional Class 5,253

Audit 7,577

Total expenses before reductions 35,511

Expense reductions (31,824) 3,687

NET INTEREST INCOME 16,846

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

Investment securities (1,074)

Futures contracts (49) (1,123)

Change in net unrealized appreciation (depreciation) on:

Investment securities (74,853)

Futures contracts (1,049) (75,902)

NET GAIN (LOSS) (77,025)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ (60,179)
FROM OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS
FEBRUARY 20, 1996
(COMMENCEMENT
OF
OPERATIONS) TO
APRIL 30,1996
(UNAUDITED)
<TABLE>
<CAPTION>
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS

Operations $ 16,846
Net interest income

Net realized gain (loss) (1,123)

Change in net unrealized appreciation (depreciation) (75,902)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (60,179)

Distributions to shareholders from:
Net interest income

Class A (1,747)

Class B (927)

Institutional Class (14,172)

TOTAL DISTRIBUTIONS (16,846)

Share transactions - net increase (decrease) 2,725,934

TOTAL INCREASE (DECREASE) IN NET ASSETS 2,648,909

NET ASSETS

Beginning of period -

End of period $ 2,648,909

FINANCIAL HIGHLIGHTS - CLASS A
FEBRUARY 20, 1996
(COMMENCEMENT
OF
OPERATIONS) TO
APRIL 30, 1996

(UNAUDITED)

SELECTED PER-SHARE DATA

Net asset value, begining of period $ 10.000

Income from Investment Operations

Net interest income .064

Net realized and unrealized gain (loss) (.330)

Total from investment operations (.266)

Less Distributions

From net interest income (.064)

Net asset value, end of period $ 9.670

TOTAL RETURN B (2.67)%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 618

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

Ratio of net interest income to average net assets 2.95% A

Portfolio turnover 3% A

(UNAUDITED)

SELECTED PER-SHARE DATA

Net asset value, begining of period $ 10.000

Income from Investment Operations

Net interest income .056

Net realized and unrealized gain (loss) (.340)

Total from investment operations (.284)

Less Distributions

From net interest income (.056)

Net asset value, end of period $ 9.660

TOTAL RETURN B (2.84)%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 282

Ratio of expenses to average net assets 1.65% A, C

Ratio of net interest income to average net assets 2.66% A

Portfolio turnover 3% A

(UNAUDITED)

SELECTED PER-SHARE DATA

Net asset value, begining of period $ 10.000

Income from Investment Operations

Net interest income .087

Net realized and unrealized gain (loss) (.370)

Total from investment operations (.283)

Less Distributions

From net interest income (.087)

Net asset value, end of period $ 9.630

TOTAL RETURN B (2.83)%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 1,749

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

Ratio of net interest income to average net assets 4.22% A

Portfolio turnover 3% A
</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.
C FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD HAVE
BEEN HIGHER (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS)
NOTES TO FINANCIAL STATEMENTS
For the period ended April 30, 1996 (Unaudited)

<TABLE>
<CAPTION>
<S> <C> <C> <C>
PERIOD ENDED
APRIL 30, 1996 A

SHARES DOLLARS

CLASS A

Sold 63,748 $ 623,524

Reinvestment of dividends from net interest income 204 1,975

Redeemed - -

Net increase (decrease) 63,952 $ 625,499

</TABLE>

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

Sold 29,068 $ 284,066

Reinvestment of dividends from net interest income 69 665

Redeemed - -

Net increase (decrease) 29,137 $ 284,731

</TABLE>

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

Sold 180,001 $ 1,800,010

Reinvestment of dividends from net interest income 1,618 15,694

Redeemed - -

Net increase (decrease) 181,619 $ 1,815,704

</TABLE>

A SHARE TRANSACTIONS FOR CLASS A, CLASS B AND INSTITUTIONAL CLASS ARE FOR
THE PERIOD FEBRUARY 20, 1996 (COMMENCEMENT OF SALE OF SHARES) TO APRIL 30,
1996.
INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Fred L. Henning, 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 AGENTS
UMB Bank, n.a.
Kansas City, MO
Fidelity Investments Institutional Operations Company
Boston, MA
CUSTODIAN
UMB Bank, n.a.
Kansas City, MO
* INDEPENDENT TRUSTEES
GROWTH FUNDS
Fidelity Advisor Overseas Fund
Fidelity Advisor Mid Cap Fund
Fidelity Advisor Equity Growth Fund
Fidelity Advisor Global Resources Fund
Fidelity Advisor Growth
Opportunities Fund
Fidelity Advisor Strategic
Opportunities Fund
Fidelity Advisor Large Cap Fund
GROWTH AND INCOME FUNDS
Fidelity Advisor Equity Income Fund
Fidelity Advisor Income & Growth Fund
TAXABLE 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 Intermediate Bond Fund
Fidelity Advisor Short Fixed-Income Fund
MUNICIPAL FUNDS
Fidelity Advisor High Income
Municipal Fund
Fidelity Advisor Intermediate Municipal Income Fund
Fidelity Advisor Short-Intermediate Municipal Income Fund
STATE MUNICIPAL FUNDS
Fidelity Advisor California Municipal Income Fund
Fidelity Advisor New York Municipal Income 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)

GLOBAL RESOURCES
FUND - CLASS A AND CLASS B
SEMIANNUAL REPORT
APRIL 30, 1996
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.

DEAR SHAREHOLDER:
Although stocks have managed to post solid returns through the first four
months of 1996, signs of strength in the economy have led to inflation
fears, causing some uncertainty in bond markets so far this year. In 1995,
both stock and bond markets posted strong results, while the year before,
stocks posted below-average returns and bonds had one of the worst years in
history.
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. 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 26.30% 34.55% 125.02% 281.37%
A

Advisor Global Resources - Class A 21.88% 29.84% 117.15% 268.02%
(incl. max. 3.50% sales charge)

S&P 500(registered trademark) 13.76% 30.21% 100.72% 245.02%

Natural Resources Funds Average 29.16% 27.09% 68.24% n/a

CUMULATIVE TOTAL RETURNS show Class A's performance in percentage terms
over a set period - in this case, six months, one year, five years, or
since the fund started on 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 500 Index - 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 natural resources funds average, which
reflects the performance of 40 natural resources funds with similar
objectives tracked by Lipper Analytical Services over the past six months.
Both benchmarks include reinvested dividends and capital gains, if any, and
exclude the effects of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED APRIL 30, 1996 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

Advisor Global Resources - Class A 34.55% 17.61% 17.40%

Advisor Global Resources - Class A 29.84% 16.78% 16.90%
(incl. max. 3.50% sales charge)

S&P 500 30.21% 14.95% 16.00%

Natural Resources Funds Average 27.09% 10.79% 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
IMAHDR PRASUN SHR__CHT 19960430 19960523 131253 S00000000000001
FA Global Resources -CL A SP Standard & Poor 500
00166 SP001
1987/12/29 9650.00 10000.00
1987/12/31 9630.70 10064.43
1988/01/31 9534.20 10488.14
1988/02/29 10257.95 10976.89
1988/03/31 10537.80 10637.70
1988/04/30 10711.50 10755.78
1988/05/31 10537.80 10849.36
1988/06/30 11232.60 11347.34
1988/07/31 11184.35 11304.22
1988/08/31 10885.20 10919.88
1988/09/30 10836.95 11385.07
1988/10/31 11068.55 11701.57
1988/11/30 10817.65 11534.24
1988/12/31 11181.37 11736.09
1989/01/31 12085.12 12595.17
1989/02/28 11906.47 12281.55
1989/03/31 12137.67 12567.71
1989/04/30 12515.99 13219.97
1989/05/31 12810.23 13755.38
1989/06/30 12768.20 13676.98
1989/07/31 13692.97 14912.01
1989/08/31 14102.81 15204.28
1989/09/30 13724.50 15141.94
1989/10/31 13241.09 14790.65
1989/11/30 13829.59 15092.38
1989/12/31 14886.64 15454.60
1990/01/31 13947.63 14417.59
1990/02/28 14600.36 14603.58
1990/03/31 14875.19 14990.58
1990/04/30 14096.50 14615.81
1990/05/31 15527.91 16040.85
1990/06/30 15333.24 15931.78
1990/07/31 16089.02 15880.79
1990/08/31 15665.32 14445.17
1990/09/30 15172.92 13741.69
1990/10/31 14085.05 13682.60
1990/11/30 14314.08 14566.50
1990/12/31 14100.32 14972.90
1991/01/31 14565.56 15625.72
1991/02/28 16665.10 16742.96
1991/03/31 16271.44 17148.14
1991/04/30 16354.95 17189.30
1991/05/31 17142.27 17931.87
1991/06/30 16152.15 17110.59
1991/07/31 16688.96 17907.95
1991/08/31 17118.41 18332.37
1991/09/30 16450.38 18026.21
1991/10/31 16832.11 18267.77
1991/11/30 15472.18 17531.58
1991/12/31 16140.47 19537.19
1992/01/31 17142.82 19173.80
1992/02/29 17528.34 19423.06
1992/03/31 17091.42 19044.31
1992/04/30 17721.10 19604.21
1992/05/31 18196.58 19700.27
1992/06/30 17605.45 19406.73
1992/07/31 18312.24 20200.47
1992/08/31 18042.37 19786.36
1992/09/30 18222.28 20019.84
1992/10/31 17836.76 20089.91
1992/11/30 18068.07 20774.97
1992/12/31 18292.77 21030.51
1993/01/31 18879.17 21207.16
1993/02/28 19408.36 21495.58
1993/03/31 20695.58 21949.14
1993/04/30 21811.16 21417.97
1993/05/31 22883.84 21991.97
1993/06/30 23198.50 22055.75
1993/07/31 22883.84 21967.52
1993/08/31 24199.66 22800.09
1993/09/30 24070.94 22624.53
1993/10/31 25157.92 23092.86
1993/11/30 24213.97 22873.48
1993/12/31 25232.86 23150.25
1994/01/31 26767.08 23937.36
1994/02/28 25932.94 23288.65
1994/03/31 24339.13 22273.27
1994/04/30 24741.31 22558.37
1994/05/31 25069.01 22928.32
1994/06/30 24622.14 22366.58
1994/07/31 25456.29 23100.20
1994/08/31 26692.61 24047.31
1994/09/30 26558.55 23458.15
1994/10/31 26156.37 23985.96
1994/11/30 24443.40 23112.39
1994/12/31 24657.72 23455.15
1995/01/31 24173.35 24063.34
1995/02/28 24884.78 25001.09
1995/03/31 26277.35 25738.87
1995/04/30 27352.06 26496.88
1995/05/31 27730.48 27555.96
1995/06/30 28517.59 28196.09
1995/07/31 29713.39 29131.07
1995/08/31 30167.49 29204.19
1995/09/30 30424.82 30436.60
1995/10/31 29138.19 30327.94
1995/11/30 30621.59 31659.34
1995/12/31 31728.20 32269.10
1996/01/31 32934.06 33367.54
1996/02/29 33748.41 33676.86
1996/03/31 34782.00 34001.17
1996/04/30 36802.21 34502.34
IMATRL PRASUN SHR__CHT 19960430 19960523 131257 R00000000000104

$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 current maximum 3.50% sales charge. As the chart
shows, by April 30, 1996, the value of your investment would have grown to
$36,802 - a 268.02% 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 $34,502 - a
245.02% 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 class' total return
includes changes in share price, plus reinvestment of any dividends (or
income) and capital gains (the profits the fund earns when it sells
securities that have grown in value). The initial offering of Class B
shares took place on July 3, 1995. Class B shares bear a 1.00%
12b-1/shareholder service fee. Returns prior to July 3, 1995 are those of
Class A, the original class of the fund, and reflect Class A's prior 0.65%
12b-1 fee. Had Class B's 12b-1 fee been reflected, returns prior to July 3,
1995 would have been lower. Class B's contingent deferred sales charges
included in the past six months, past one year, past five years and life of
fund total return figures are 4%, 4%, 1% and 0%, respectively. If Fidelity
had not reimbursed certain class expenses, total returns would have been
lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED APRIL 30, 1996 PAST 6 PAST 1 PAST 5 LIFE OF
MONTHS YEAR YEARS FUND

Advisor Global Resources - Class 25.69% 33.76% 123.70% 279.12%
B

Advisor Global Resources - Class B 21.69% 29.76% 122.70% 279.12%
(incl. contingent deferred sales
charge)

S&P 500(registered trademark) 13.76% 30.21% 100.72% 245.02%

Natural Resources Funds Average 29.16% 27.09% 68.24% n/a

CUMULATIVE TOTAL RETURNS show Class B's performance in percentage terms
over a set period - in this case, six months, one year, five years, or
since the fund started on 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 500 Index - 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 natural resources funds average, which
reflects the performance of 40 natural resources funds with similar
objectives tracked by Lipper Analytical Services over the past six months.
Both benchmarks include reinvested dividends and capital gains, if any, and
exclude the effects of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED APRIL 30, 1996 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

Advisor Global Resources - Class B 33.76% 17.47% 17.32%

Advisor Global Resources - Class B 29.76% 17.37% 17.32%
(incl. contingent deferred sales charge)

S&P 500 30.21% 14.95% 16.00%

Natural Resources Funds Average 27.09% 10.79% 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
'96
IMAHDR PRASUN SHR__CHT 19960430 19960523 131046 S00000000000001
FA Global Resources -CL B SP Standard & Poor 500
00656 SP001
1987/12/29 10000.00 10000.00
1987/12/31 9980.00 10064.43
1988/01/31 9880.00 10488.14
1988/02/29 10630.00 10976.89
1988/03/31 10920.00 10637.70
1988/04/30 11100.00 10755.78
1988/05/31 10920.00 10849.36
1988/06/30 11640.00 11347.34
1988/07/31 11590.00 11304.22
1988/08/31 11280.00 10919.88
1988/09/30 11230.00 11385.07
1988/10/31 11470.00 11701.57
1988/11/30 11210.00 11534.24
1988/12/31 11586.91 11736.09
1989/01/31 12523.44 12595.17
1989/02/28 12338.32 12281.55
1989/03/31 12577.89 12567.71
1989/04/30 12969.93 13219.97
1989/05/31 13274.85 13755.38
1989/06/30 13231.29 13676.98
1989/07/31 14189.61 14912.01
1989/08/31 14614.32 15204.28
1989/09/30 14222.28 15141.94
1989/10/31 13721.34 14790.65
1989/11/30 14331.18 15092.38
1989/12/31 15426.57 15454.60
1990/01/31 14453.51 14417.59
1990/02/28 15129.90 14603.58
1990/03/31 15414.70 14990.58
1990/04/30 14607.77 14615.81
1990/05/31 16091.10 16040.85
1990/06/30 15889.36 15931.78
1990/07/31 16672.56 15880.79
1990/08/31 16233.50 14445.17
1990/09/30 15723.23 13741.69
1990/10/31 14595.91 13682.60
1990/11/30 14833.24 14566.50
1990/12/31 14611.74 14972.90
1991/01/31 15093.85 15625.72
1991/02/28 17269.54 16742.96
1991/03/31 16861.60 17148.14
1991/04/30 16948.13 17189.30
1991/05/31 17764.01 17931.87
1991/06/30 16737.98 17110.59
1991/07/31 17294.26 17907.95
1991/08/31 17739.29 18332.37
1991/09/30 17047.02 18026.21
1991/10/31 17442.60 18267.77
1991/11/30 16033.35 17531.58
1991/12/31 16725.88 19537.19
1992/01/31 17764.58 19173.80
1992/02/29 18164.09 19423.06
1992/03/31 17711.32 19044.31
1992/04/30 18363.84 19604.21
1992/05/31 18856.56 19700.27
1992/06/30 18243.99 19406.73
1992/07/31 18976.41 20200.47
1992/08/31 18696.76 19786.36
1992/09/30 18883.19 20019.84
1992/10/31 18483.69 20089.91
1992/11/30 18723.39 20774.97
1992/12/31 18956.24 21030.51
1993/01/31 19563.91 21207.16
1993/02/28 20112.29 21495.58
1993/03/31 21446.19 21949.14
1993/04/30 22602.24 21417.97
1993/05/31 23713.83 21991.97
1993/06/30 24039.89 22055.75
1993/07/31 23713.83 21967.52
1993/08/31 25077.37 22800.09
1993/09/30 24943.98 22624.53
1993/10/31 26070.39 23092.86
1993/11/30 25092.19 22873.48
1993/12/31 26148.04 23150.25
1994/01/31 27737.91 23937.36
1994/02/28 26873.51 23288.65
1994/03/31 25221.90 22273.27
1994/04/30 25638.66 22558.37
1994/05/31 25978.24 22928.32
1994/06/30 25515.17 22366.58
1994/07/31 26379.57 23100.20
1994/08/31 27660.73 24047.31
1994/09/30 27521.81 23458.15
1994/10/31 27105.05 23985.96
1994/11/30 25329.95 23112.39
1994/12/31 25552.05 23455.15
1995/01/31 25050.10 24063.34
1995/02/28 25787.33 25001.09
1995/03/31 27230.42 25738.87
1995/04/30 28344.11 26496.88
1995/05/31 28736.25 27555.96
1995/06/30 29551.91 28196.09
1995/07/31 30775.39 29131.07
1995/08/31 31245.96 29204.19
1995/09/30 31481.25 30436.60
1995/10/31 30163.65 30327.94
1995/11/30 31669.48 31659.34
1995/12/31 32767.57 32269.10
1996/01/31 34017.25 33367.54
1996/02/29 34828.73 33676.86
1996/03/31 35867.42 34001.17
1996/04/30 37912.35 34502.34
IMATRL PRASUN SHR__CHT 19960430 19960523 131051 R00000000000104

$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 April 30, 1996, the value of your
investment would have grown to $37,912 - a 279.12% 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 $34,502 - a 245.02% increase.
UNDERSTANDING
PERFORMANCE
How a fund did yesterday is no
guarantee of how it will do
tomorrow. The stock market, for
example, has a history of
growth in the long run and
volatility in the short run. Foreign
stocks involve greater risks, due
to political and economic
uncertainties. In turn, the share
price and return of a fund that
invests in stocks will vary. That
means if you sell your shares
during a market downturn, you
might lose money. But if you
can ride out the market's ups
and downs, you may have a
gain.
(checkmark)
FUND TALK: THE MANAGER'S OVERVIEW

An interview with Malcolm MacNaught, Portfolio Manager of Fidelity Advisor
Global Resources Fund
Q. MALCOLM, HOW HAS THE FUND PERFORMED?
A. For the six months ended April 30, 1996, the fund's Class A and Class B
shares had total returns of 26.30% and 25.69%, respectively. During the
same six month period, the natural resources funds average tracked by
Lipper Analytical Services returned 29.16%. For the 12 months ended April
30, 1996, the fund's Class A and Class B shares had total returns of 34.55%
and 33.76%, respectively, while the natural resources funds average
returned 27.09%. The Standard & Poor's 500 Index returned 13.76% for the
six-month period and 30.21% for the 12-month period.
Q. WHY DID THE NATURAL RESOURCES SECTOR TURN IN A BETTER PERFORMANCE THAN
THE STOCK MARKET AS A WHOLE DURING THE PAST SIX MONTHS?
A. Many of the world's major commodities posted strong price increases
during the period. The Commodity Bureau Index, a broad measure of commodity
prices, hit a seven-year high in the first quarter of 1996. There were two
groups that did particularly well and provided the underpinnings for the
natural resources sector to outperform the broader market: gold and energy.
The demand for gold rose late in the period, boosted primarily by fears of
inflation. Meanwhile, the supply of gold remained relatively tight. Rising
demand and limited supply pushed the price of many North American
gold-related stocks higher. Energy stocks rose dramatically as lower
inventories and rising demand lifted oil and natural gas prices to their
highest levels since the 1991 Persian Gulf War.
Q. LET'S BEGIN WITH ENERGY, SINCE ENERGY-RELATED COMPANIES MADE UP ABOUT
26% OF THE FUND'S INVESTMENTS AT THE END OF THE PERIOD. WHICH ENERGY STOCKS
PERFORMED WELL FOR THE FUND OVER THE PAST SIX MONTHS?
A. Energy service companies, including drillers like Diamond Offshore and
Falcon Drilling, were some of the fund's best performers during the period.
Additionally, the colder-than-normal winter in the East and Midwest,
coupled with low inventories, helped natural gas stocks. Virtually all
natural gas stocks east of the Mississippi and in the Gulf of Mexico
performed well. Those with significant exploration successes, such as
Chesapeake Energy, did even better. This company has successfully carved
out a profitable niche by using horizontal drilling technology to tap
reserves that other companies didn't think they could tap. In 1995, its
production more than doubled.
Q. WHICH OF THE FUND'S GOLD HOLDINGS DID WELL?
A. Bre-X Minerals, a Canadian company, performed well on the news that it
had discovered a deposit in Indonesia that holds at least 30 million ounces
of gold. South African gold producers, including Vaal Reefs Exploration &
Mining and Western Deep Levels, were also among the fund's leading
performers over the past six months.
Q. WHAT WAS YOUR STRATEGY WITH THE BASIC INDUSTRIES COMPONENT OF THE FUND?
A. Throughout the past six months, I kept a large portion of the fund's
stake in the basic industries category invested in specialty chemicals
companies. The global economy remained reasonably healthy, boosting demand
for these products. That greater demand, along with lower raw materials
costs, enhanced the operating margins of many specialty chemical companies,
such as Rohm & Haas.
Q. DO YOU REGRET SOME OF YOUR INVESTMENT DECISIONS OVER THE PAST SIX
MONTHS?
A. Sure. I could have had more of the fund invested in energy stocks or in
gold instead of keeping it more broadly diversified over a number of
natural resources groups. However, I believe investors choose a natural
resources fund to track the activities in the natural resources sector as a
whole, rather than any other sector in particular. So the fund tends to be
more balanced than many of its competitors.
Q. SOME OF THE FUND'S LARGEST HOLDINGS DON'T REALLY QUALIFY UNDER THE
HEADING OF "NATURAL RESOURCES" COMPANIES. HOW DO THE STOCKS OF DRUG AND
TECHNOLOGY COMPANIES, FOR EXAMPLE, FIT INTO A NATURAL RESOURCES FUND?
A. I don't want the performance of the fund to be totally dependent on
rising or falling commodity prices. Sometimes inflation is not a problem,
and in a non-inflationary period, natural resources companies often find it
difficult to raise prices. Also, some of the stocks included in the
technology sector provide very valuable services or equipment to natural
resources companies. Sun Microsystems is an excellent example. It provides
computer equipment and software for business users. The fund's charter
allows me to invest up to 35% of its net assets in sectors other than
natural resources. At the end of the period, technology stocks accounted
for 6.4% of investments, and health care stocks made up 5.8%. While the
fund's technology holdings turned in a mixed performance during the past
six months, many health care holdings performed quite well in the same
period.
Q. WHAT'S YOUR OUTLOOK?
A. I think that the economy is doing better than some of the economic data
suggest. Some observers are worried that the rise in personal, corporate
and government debt could derail economic growth. In my view, the
indebtedness of these groups is still manageable so long as interest rates
remain low. No one can say for sure where the economy or interest rates are
headed. The natural resources sector, and the energy industry in
particular, have been hot recently. But it's important for shareholders to
remember that historically there is some seasonality to energy stocks. From
my vantage point, if that seasonality holds true to form, some interesting
opportunities could emerge for buying attractive energy companies at lower
price levels.
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 of
shareholders' capital by investing
primarily 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
START DATE: December 29,
1987
SIZE: as of April 30, 1996,
more than $513 million
MANAGER: Malcolm
MacNaught, since December
1987, joined Fidelity in 1968
(checkmark)
MALCOLM MACNAUGHT ON
FINDING ATTRACTIVE
INVESTMENTS:
"There are many measures I
use to identify attractive
investment opportunities.
Obviously, I consider
fundamental factors like
price-to-earnings ratios, book
value, cash flow and others.
And in my view, the strength
of a given company's
management can be the key
to its growth. I also take into
account each company's
prospects for price increases
and volume growth. The best
of all worlds is when a
company can do both: grow
volume and increase prices.
However, in a non-inflationary
period or in highly competitive
industries it may be difficult to
levy price hikes, though the
inability to raise prices may be
offset by increases in
productivity. Since new
products can provide volume
growth, I target companies
with new products and strong
marketing franchises."
INVESTMENT CHANGES

TOP TEN STOCKS AS OF APRIL 30, 1996
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE STOCKS
6 MONTHS AGO

Bre-X Minerals Ltd. 2.6 1.0

Louisiana Land & Exploration Co. 1.2 0.9

Diamond Offshore Drilling, Inc. 1.1 0.0

Pechiney SA Class A 1.0 0.0

Occidental Petroleum Corp. 1.0 1.0

Xerox Corp. 1.0 0.8

Kerr-McGee Corp. 1.0 0.0

Alcan Aluminium Ltd. 1.0 1.0

Falcon Drilling, Inc. 0.9 0.4

Witco Corp. 0.9 0.0

TOP FIVE MARKET SECTORS AS OF APRIL 30, 1996
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE MARKET SECTORS
6 MONTHS AGO

Energy 26.2 22.2

Basic Industries 23.3 31.9

Precious Metals 8.2 5.9

Industrial Machinery & Equipment 6.6 8.0

Technology 6.4 5.6

ASSET ALLOCATION
AS OF APRIL 30, 1996 * AS OF OCTOBER 31, 1995 **
Row: 1, Col: 1, Value: 7.9
Row: 1, Col: 2, Value: 92.09999999999999
Row: 1, Col: 1, Value: 6.1
Row: 1, Col: 2, Value: 93.90000000000001
Stocks 92.1%
Short-term
investments 7.9%
FOREIGN
INVESTMENTS 19.8%
Stocks 93.9%
Short-term
investments 6.1%
FOREIGN
INVESTMENTS 21.7%
*
**
INVESTMENTS APRIL 30, 1996 (UNAUDITED)

Showing Percentage of Total Value of Investment in Securities

COMMON STOCKS - 92.1%
SHARES VALUE (NOTE 1)
AEROSPACE & DEFENSE - 0.3%
DEFENSE ELECTRONICS - 0.3%
Tech-Sym Corp. (a) 51,000 $ 1,765,875
BASIC INDUSTRIES - 23.3%
CHEMICALS & PLASTICS - 15.2%
Air Products & Chemicals, Inc. 45,000 2,570,625
Applied Extrusion Technologies, Inc. (a) 120,000 1,680,000
Cambrex Corp. 47,000 2,021,000
Cytec Industries, Inc. (a) 35,000 2,900,625
DSM NV 25,000 2,553,254
du Pont (E.I.) de Nemours & Co. 20,000 1,607,500
Eastman Chemical Co. 50,000 3,362,500
Engelhard Corp. 112,250 2,820,281
FMC Corp. (a) 35,000 2,428,125
Ferro Corp. 100,000 2,775,000
Fuller (H.B.) Co. 130,202 4,264,116
Furon Co. 69,000 1,500,750
Geon Co. 75,000 1,987,500
Georgia Gulf Corp. 50,200 1,844,850
Great Lakes Chemical Corp. 63,500 4,333,875
Hanna (M.A.) Co. 97,500 3,363,750
IMC Fertilizer Group, Inc. 60,000 2,212,500
Monsanto Co. 20,000 3,030,000
NuCo2, Inc. (a) 50,000 1,362,500
Nippon Shokubai Co. Ltd. 400,000 4,336,456
Nippon Zeon Co. Ltd. 150,000 952,879
OM Group, Inc. 52,000 1,982,500
Praxair, Inc. 100,000 3,862,500
Rohm & Haas Co. 70,000 4,646,250
Schulman (A.), Inc. 180,000 3,915,000
Union Carbide Corp. 70,000 3,185,000
Uniroyal Chemical Corp. (a) 200,000 2,350,000
Witco Corp. 140,000 4,777,500
78,626,836
IRON & STEEL - 1.5%
Allegheny Ludlum Industries, Inc. 115,000 2,271,250
Birmingham Steel Corp. 50,000 800,000
Nucor Corp. 37,000 2,081,250
Quanex Corp. 100,000 2,200,000
Republic Engineered Steels, Inc. (a) 96,800 387,200
7,739,700
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
BASIC INDUSTRIES - CONTINUED
METALS & MINING - 4.4%
Alcan Aluminium Ltd. 160,000 $ 5,086,451
Alumax, Inc. (a) 108,100 3,621,350
Aluminum Co. of America 62,000 3,867,250
Castech Aluminum Group, Inc. (a) 105,000 1,535,625
Pechiney SA Class A 109,683 5,163,923
Reynolds Metals Co. 60,000 3,225,000
22,499,599
PAPER & FOREST PRODUCTS - 2.2%
Consolidated Papers, Inc. 50,000 2,737,500
Kimberly-Clark Corp. 25,000 1,815,625
Louisiana-Pacific Corp. 110,000 2,763,750
Sappi Ltd. 200,000 2,505,774
Stone Container Corp. 100,000 1,700,000
11,522,649
TOTAL BASIC INDUSTRIES 120,388,784
CONGLOMERATES - 1.4%
Hanson PLC sponsored ADR 225,000 3,403,125
Tyco International Ltd. 101,600 3,924,300
7,327,425
CONSTRUCTION & REAL ESTATE - 1.8%
BUILDING MATERIALS - 0.7%
Lafarge Corp. 102,199 2,171,729
Medusa Corp. 55,000 1,608,750
3,780,479
CONSTRUCTION - 0.9%
McDermott (J. Ray) SA 120,500 2,937,188
Sumitomo Forestry Co. Ltd. 106,000 1,622,938
4,560,126
REAL ESTATE INVESTMENT TRUSTS - 0.2%
Winston Hotels, Inc. 100,000 1,175,000
TOTAL CONSTRUCTION & REAL ESTATE 9,515,605
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
DURABLES - 1.3%
AUTOS, TIRES, & ACCESSORIES - 1.3%
Discount Auto Parts, Inc. (a) 60,000 $ 1,762,500
Ford Motor Co. 50,000 1,793,750
Lear Seating Corp. (a) 55,000 1,815,000
Scania AB (a):
Class A 14,500 401,322
Class B 29,000 800,509
6,573,081
ENERGY - 26.2%
ENERGY SERVICES - 10.5%
Atwood Oceanics, Inc. (a) 58,000 2,472,250
BJ Services Co. (a) 80,000 3,070,000
Carbo Ceramics, Inc. 25,000 537,500
Diamond Offshore Drilling, Inc. (a) 112,000 5,572,000
Falcon Drilling, Inc. (a) 180,000 4,837,500
Global Industries Ltd. (a) 135,000 3,476,250
Global Marine, Inc. (a) 170,000 1,933,750
Key Energy Group, Inc. (a) 38,000 323,000
Marine Drilling Companies, Inc. (a) 300,000 2,962,500
Nabors Industries, Inc. (a) 200,000 3,075,000
Numar Corp. (a) 200,000 3,075,000
Patterson Energy, Inc. 14,700 216,825
Pride Petroleum Services, Inc. (a) 200,000 3,275,000
Schlumberger Ltd. 41,000 3,618,250
Seacor Holdings, Inc. (a) 50,000 2,062,500
Serv-Tech, Inc. (a) 100,000 675,000
Sonat Offshore Drilling, Inc. 50,000 2,743,750
Tidewater, Inc. 55,000 2,337,500
Transocean Drilling AS (a) 170,300 4,766,499
Weatherford Enterra, Inc. (a) 45,000 1,586,250
Western Atlas, Inc. (a) 25,000 1,500,000
54,116,324
OIL & GAS - 15.7%
Amerada Hess Corp. 71,600 4,054,350
Anadarko Petroleum Corp. 40,000 2,330,000
Barrett Resources Corp. (a) 80,000 2,220,000
Beau Canada Exploration Ltd. (a) 1,400,000 2,107,118
Belco Oil & Gas Corp. (a) 49,700 1,435,088
Belden & Blake Corp. (a) 160,000 3,240,000
Benton Oil & Gas Co. 22,400 392,000
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
ENERGY - CONTINUED
OIL & GAS - CONTINUED
Blue Range Resource Corp. Class A (a) 140,000 $ 1,207,738
British Petroleum PLC ADR 22,000 2,403,500
Cairn Energy USA, Inc. (a) 310,000 3,836,250
Chesapeake Energy Corp. (a) 50,000 3,537,500
Chieftain International, Inc. (a) 250,000 4,717,154
Coastal Corp. (The) 75,000 2,971,875
Flores & Rucks, Inc. (a) 160,000 3,340,000
Forcenergy Gas Exploration, Inc. (a) 127,000 1,778,000
Grad & Walker Energy Corp. (a) 160,000 1,098,344
Kerr-McGee Corp. 80,000 5,110,000
Louisiana Land & Exploration Co. 113,400 6,137,775
Noble Affiliates, Inc. 10,300 361,788
Occidental Petroleum Corp. 200,000 5,150,000
Plains Resources, Inc. 132,400 1,539,150
Ranger Oil Ltd. 200,000 1,483,059
Rio Alto Exploration Ltd. (a) 310,000 1,638,706
Royal Dutch Petroleum Co. Ord. 30,000 4,272,542
Santa Fe Energy Resources, Inc. (a) 230,000 2,760,000
Stone Energy Corp. (a) 100,000 1,800,000
3-D Geophysical, Inc. 49,500 581,625
Triton Energy Ltd. Class A (a) 60,000 3,300,000
United Meridian Corp. (a) 105,000 3,255,000
Vintage Petroleum, Inc. 130,000 3,168,750
81,227,312
TOTAL ENERGY 135,343,636
FINANCE - 3.4%
BANKS - 0.8%
Bank of New York Co., Inc. 82,000 3,977,000
FEDERAL SPONSORED CREDIT - 0.7%
Federal National Mortgage Association 125,000 3,828,125
INSURANCE - 1.6%
American Financial Group, Inc. 120,000 3,675,000
Reinsurance Group of America, Inc. 29,700 1,232,550
UNUM Corp. 55,000 3,272,500
8,180,050
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
FINANCE - CONTINUED
SECURITIES INDUSTRY - 0.3%
Pioneer Group, Inc. 60,000 $ 1,605,000
TOTAL FINANCE 17,590,175
HEALTH - 5.8%
DRUGS & PHARMACEUTICALS - 4.8%
Bristol-Myers Squibb Co. 42,000 3,454,500
COR Therapeutics, Inc. (a) 110,000 1,168,750
Genome Therapeutics Corp. (a) 70,000 691,250
Immunex Corp. (a) 100,000 1,562,500
Intercardia, Inc. (a) 20,000 450,000
Pharmacia & Upjohn, Inc. 120,000 4,590,000
Pfizer, Inc. 60,000 4,132,500
Schering-Plough Corp. 55,000 3,155,625
SmithKline Beecham PLC ADR Ord. 85,000 4,590,000
Sugen, Inc. (a) 80,000 1,150,000
24,945,125
MEDICAL EQUIPMENT & SUPPLIES - 0.5%
St. Jude Medical, Inc. (a) 70,000 2,555,000
MEDICAL FACILITIES MANAGEMENT - 0.5%
Genesis Health Ventures, Inc. (a) 62,100 1,839,713
Spectral Diagnostics, Inc. (a) 100,000 668,111
2,507,824
TOTAL HEALTH 30,007,949
INDUSTRIAL MACHINERY & EQUIPMENT - 6.6%
ELECTRICAL EQUIPMENT - 1.3%
Advanced Lighting Technologies, Inc. (a) 140,000 2,030,000
California Microwave Corp. (a) 80,000 1,470,000
General Electric Co. 26,000 2,015,000
Sensormatic Electronics Corp. 53,100 1,081,913
6,596,913
INDUSTRIAL MACHINERY & EQUIPMENT - 0.8%
Exide Corp. 150,000 4,218,750
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
INDUSTRIAL MACHINERY & EQUIPMENT - CONTINUED
POLLUTION CONTROL - 4.5%
American Ecology Corp. 119,900 $ 209,825
Envirosource, Inc. (a) 210,000 735,000
Safety Kleen Corp. 160,000 2,400,000
Sanifill, Inc. (a) 70,000 3,036,250
TETRA Technologies, Inc. (a) 115,000 2,271,250
USA Waste Services, Inc. (a) 155,000 4,030,000
United Waste Systems, Inc. (a) 81,000 4,455,000
WMX Technologies, Inc. 100,000 3,475,000
Zurn Industries, Inc. 130,000 2,648,750
23,261,075
TOTAL INDUSTRIAL MACHINERY & EQUIPMENT 34,076,738
NONDURABLES - 4.4%
AGRICULTURE - 0.5%
Pioneer Hi-Bred International, Inc. 50,000 2,787,500
FOODS - 2.3%
Nabisco Holdings Corp. Class A 100,000 3,062,500
RalCorp Holdings, Inc. (a) 110,000 2,420,000
Ralston Purina Co. 41,000 2,393,375
Tyson Foods, Inc. 155,000 3,855,625
11,731,500
HOUSEHOLD PRODUCTS - 1.2%
First Brands Corp. 110,000 2,915,000
Rubbermaid, Inc. 120,000 3,390,000
6,305,000
TOBACCO - 0.4%
RJR Nabisco Holdings Corp. 75,000 2,240,625
TOTAL NONDURABLES 23,064,625
PRECIOUS METALS - 8.2%
Bre-X Minerals Ltd. (a) 90,000 13,215,374
Bresea Resources Ltd. (a) 100,000 1,123,307
Cartaway Resources Corp. 150,000 423,993
De Beers Consolidated Mines Ltd. ADR 125,000 3,968,750
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
PRECIOUS METALS - CONTINUED
Driefontein Consolidated Ltd. ADR 100,000 $ 1,587,500
Euro-Nevada Mining Corp. 8,600 322,015
Firstmiss Gold, Inc. (a) 130,000 3,997,500
Kinross Gold Corp. (a) 300,000 2,599,024
Mentor Exploration & Development Co. Ltd. (a) 160,000 1,644,580
Newmont Mining Corp. 34,300 1,985,113
Rustenburg Platinum Holdings Ltd. 1,100 21,721
Stillwater Mining Co. (a) 120,000 2,880,000
Sudbury Contact Mines Ltd. (a) 140,000 1,521,236
Vaal Reefs Exploration & Mining Co. Ltd. ADR 300,000 2,925,000
Western Deep Levels Ltd. ADR 50,000 2,487,500
Western Mining Holdings Ltd. 200,000 1,461,173
42,163,786
SERVICES - 0.0%
Western Staff Services, Inc. 14,000 196,000
TECHNOLOGY - 6.4%
COMMUNICATIONS EQUIPMENT - 1.0%
ADC Telecommunications, Inc. 48,000 2,016,000
DSC Communications Corp. (a) 70,000 2,205,000
P-COM, Inc. (a) 40,000 990,000
5,211,000
COMPUTER SERVICES & SOFTWARE - 1.2%
Computer Data Systems, Inc. 50,700 899,925
Landmark Graphics Corp. (a) 145,000 2,863,750
Netscape Communications Corp. (a) 20,000 1,220,000
Oracle Systems Corp. (a) 30,000 1,012,500
5,996,175
COMPUTERS & OFFICE EQUIPMENT - 2.6%
Digital Equipment Corp. (a) 24,000 1,434,000
International Business Machines Corp. 39,000 4,192,500
Seagate Technology (a) 30,000 1,740,000
Sun Microsystems, Inc. (a) 20,000 1,085,000
Xerox Corp. 35,000 5,127,500
13,579,000
ELECTRONIC INSTRUMENTS - 0.2%
Silicon Valley Group, Inc. 30,000 802,500
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
TECHNOLOGY - CONTINUED
ELECTRONICS - 1.4%
Intel Corp. 20,000 $ 1,355,000
Kemet Corp. 100,000 2,387,500
Kyocera Corp. ADR 23,000 3,470,125
7,212,625
TOTAL TECHNOLOGY 32,801,300
TRANSPORTATION - 1.0%
RAILROADS - 1.0%
Burlington Northern Santa Fe Corp. 50,000 4,375,000
CSX Corp. 12,900 661,125
5,036,125
UTILITIES - 2.0%
CELLULAR - 0.2%
Palmer Wireless, Inc. (a) 50,000 1,034,375
GAS - 1.1%
Enron Corp. 89,000 3,582,250
ENSERCH Corp. 92,100 1,980,150
5,562,400
TELEPHONE SERVICES - 0.7%
Bell Atlantic Corp. 41,900 2,723,500
Lucent Technologies, Inc. (a) 21,000 737,625
3,461,125
TOTAL UTILITIES 10,057,900
TOTAL COMMON STOCKS
(Cost $401,927,291) 475,909,004
REPURCHASE AGREEMENTS - 7.9%
MATURITY
AMOUNT
Investments in repurchase agreements
(U.S. Treasury obligations) in a joint
trading account at 5.33%, dated
4/30/96 due 5/1/96 $ 40,560,004 40,554,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $442,481,291) $ 516,463,004
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 80.2%
Canada 7.5
South Africa 2.6
United Kingdom 2.0
Japan 2.0
Netherlands 1.3
France 1.0
Others (individually less than 1%) 3.4
TOTAL 100.0%
INCOME TAX INFORMATION
At April 30, 1996, the aggregate cost of investment securities for income
tax purposes was $442,502,726. Net unrealized appreciation aggregated
$73,960,278, of which $84,278,904 related to appreciated investment
securities and $10,318,626 related to depreciated investment securities.
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
ASSETS APRIL 30, 1996 (UNAUDITED)

Investment in securities, at value (including repurchase $ 516,463,004
agreements of $40,554,000) (cost $442,481,291) -
See accompanying schedule

Cash 479,161

Receivable for investments sold 5,223,849

Receivable for fund shares sold 7,992,449

Dividends receivable 322,027

Other receivables 14,084

Prepaid expenses 6,751

TOTAL ASSETS 530,501,325

LIABILITIES

Payable for investments purchased $ 16,080,890

Payable for fund shares redeemed 739,650

Accrued management fee 283,768

Distribution fees payable 221,731

Other payables and accrued expenses 123,199

TOTAL LIABILITIES 17,449,238

NET ASSETS $ 513,052,087

Net Assets consist of:

Paid in capital $ 412,229,702

Accumulated net investment (loss) (233,840)

Accumulated undistributed net realized gain (loss) on 27,074,163
investments and foreign currency transactions

Net unrealized appreciation (depreciation) on 73,982,062
investments and assets and liabilities in foreign
currencies

NET ASSETS $ 513,052,087

CALCULATION OF MAXIMUM OFFERING PRICE $23.50
CLASS A:
NET ASSET VALUE, and redemption price per share
($486,431,768 (divided by) 20,695,917 shares)

Maximum offering price per share (100/96.50 of $23.50) $24.35

CLASS B: $23.36
NET ASSET VALUE, and offering price per share
($17,968,005 (divided by) 769,108 shares) A

INSTITUTIONAL CLASS : $23.54
NET ASSET VALUE, offering price and redemption price
per share ($8,652,314 (divided by) 367,537 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>
SIX MONTHS ENDED APRIL 30, 1996 (UNAUDITED)

INVESTMENT INCOME $ 1,877,674
Dividends

Interest 821,075

TOTAL INCOME 2,698,749

EXPENSES

Management fee $ 1,349,821

Transfer agent fees 424,413
Class A

Class B 9,580

Institutional Class 1,852

Distribution fees 936,387
Class A

Class B 36,419

Accounting fees and expenses 126,550

Non-interested trustees' compensation 633

Custodian fees and expenses 35,877

Registration fees 20,300
Class A

Class B 22,108

Institutional Class 20,063

Audit 13,184

Legal 2,693

Miscellaneous 6,624

Total expenses before reductions 3,006,504

Expense reductions (74,323) 2,932,181

NET INVESTMENT INCOME (LOSS) (233,432)

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

Investment securities 27,634,654

Foreign currency transactions 1,004 27,635,658

Change in net unrealized appreciation (depreciation) on:

Investment securities 56,984,168

Assets and liabilities in foreign currencies 89 56,984,257

NET GAIN (LOSS) 84,619,915

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM $ 84,386,483
OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR ENDED
ENDED OCTOBER 31,
APRIL 30,1996 1995
(UNAUDITED)

INCREASE (DECREASE) IN NET ASSETS

Operations $ (233,432) $ (685,143)
Net investment income (loss)

Net realized gain (loss) 27,635,658 11,238,410

Change in net unrealized appreciation (depreciation) 56,984,257 12,904,308

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 84,386,483 23,457,575
FROM OPERATIONS

Distributions to shareholders (10,063,536) (3,086,044)
From net realized gain
Class A

Class B (127,176) -

Institutional Class (30,367) -

TOTAL DISTRIBUTIONS (10,221,079) (3,086,044)

Share transactions - net increase (decrease) 162,681,449 56,472,708

TOTAL INCREASE (DECREASE) IN NET ASSETS 236,846,853 76,844,239

NET ASSETS

Beginning of period 276,205,234 199,360,995

End of period (including accumulated net investment $ 513,052,087 $ 276,205,234
loss of $233,840 and $408, respectively)

FINANCIAL HIGHLIGHTS - CLASS A
SIX MONTHS YEARS ENDED OCTOBER 31,
ENDED APRIL 30,
1996

(UNAUDITED) 1995 1994 I 1993 1992 1991

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

Net asset value, $ 19.25 $ 17.56 $ 17.59 $ 13.88 $ 14.11 $ 12.30
beginning of period

Income from (.01) D (.05) D (.11) D .22 (.10) (.15)
Investment
Operations
Net investment
income (loss)

Net realized and 4.95 2.00 .76 4.91 .79 2.45
unrealized gain
(loss)

Total from investment 4.94 1.95 .65 5.13 .69 2.30
operations

Less Distributions (.69) (.26) (.68) (1.42) (.92) (.49)
From net realized
gain

Net asset value, $ 23.50 $ 19.25 $ 17.56 $ 17.59 $ 13.88 $ 14.11
end of period

TOTAL RETURN B, C 26.30% 11.40% 3.97% 41.05% 5.97% 19.50%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of $ 486,432 $ 272,979 $ 199,361 $ 40,309 $ 7,087 $ 5,940
period (000 omitted)

Ratio of expenses to 1.69% A 1.86% 2.10% 2.63% 3.27% 3.35%
average net assets E E E G G

Ratio of expenses to 1.66% A, 1.84% 2.07% 2.62% 3.27% 3.35%
average net assets F F F F
after expense
reductions

Ratio of net investment (.12)% (.30) (.67) (1.18) (1.22) (1.28)%
income (loss) to A % % % %
average net assets

Portfolio turnover rate 160% A 161% 125% 208% 248% 256%

Average commission $ 0.0298
rate H

</TABLE>

A ANNUALIZED
B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN (SEE NOTE 5 OF NOTES TO FINANCIAL
STATEMENTS).
C TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED.
D NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.
E FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD HAVE
BEEN HIGHER.
F FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES
WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES (SEE NOTE 5 OF
NOTES TO FINANCIAL STATEMENTS).
G LIMITED IN ACCORDANCE WITH A STATE EXPENSE LIMITATION.
H FOR FISCAL YEARS BEGINNING ON OR AFTER SEPTEMBER 1, 1995, A FUND IS
REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR SECURITY
TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY FROM PERIOD
TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF TRADES EXECUTED IN
VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE STRUCTURES MAY
DIFFER.
I 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.
FINANCIAL HIGHLIGHTS - CLASS B

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR ENDED
ENDED APRIL 30, OCTOBER 31,
1996

(UNAUDITED) 1995 G

SELECTED PER-SHARE DATA D

Net asset value, beginning of period $ 19.23 $ 18.87

Income from Investment Operations

Net investment income (loss) (.10) (.03)

Net realized and unrealized gain (loss) 4.92 .39

Total from investment operations 4.82 .36

Less Distributions

From net realized gain (.69) -

Net asset value, end of period $ 23.36 $ 19.23

TOTAL RETURN B, C 25.69% 1.91%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 17,968 $ 2,508

Ratio of expenses to average net assets 2.56% A, 2.23% A,
E E

Ratio of expenses to average net assets after 2.56% A 2.21% A,
expense reductions F

Ratio of net investment income (loss) to average net (1.02)% A (.67)% A
assets

Portfolio turnover rate 160% A 161%

Average commission rate H $ 0.0298

</TABLE>

A ANNUALIZED
B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN (SEE NOTE 5 OF NOTES TO FINANCIAL
STATEMENTS).
C TOTAL RETURNS DO NOT INCLUDE THE 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 AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD HAVE
BEEN HIGHER.
F FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES
WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES (SEE NOTE 5 OF
NOTES TO FINANCIAL STATEMENTS).
G FOR THE PERIOD JULY 3, 1995 (COMMENCEMENT OF SALE OF CLASS B SHARES) TO
OCTOBER 31, 1995.
H FOR FISCAL YEARS BEGINNING ON OR AFTER SEPTEMBER 1, 1995, A FUND IS
REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR SECURITY
TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY FROM PERIOD
TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF TRADES EXECUTED IN
VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE STRUCTURES MAY
DIFFER.
FINANCIAL HIGHLIGHTS - INSTITUTIONAL CLASS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR ENDED
ENDED OCTOBER 31,
APRIL 30, 1996

(UNAUDITED) 1995 G

SELECTED PER-SHARE DATA D

Net asset value, beginning of period $ 19.27 $ 18.87

Income from Investment Operations

Net investment income (loss) - (.01)

Net realized and unrealized gain (loss) 4.96 .41

Total from investment operations 4.96 .40

Less Distributions

From net realized gain (.69) -

Net asset value, end of period $ 23.54 $ 19.27

TOTAL RETURN B, C 26.38% 2.12%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 8,652 $ 718

Ratio of expenses to average net assets 1.58% A, 1.68% A,
E E

Ratio of expenses to average net assets after 1.53% A, 1.66% A,
expense reductions F F

Ratio of net investment income (loss) to average net .01% A (.13)% A
assets

Portfolio turnover rate 160% A 161%

Average commission rate H $ 0.0298

</TABLE>

A ANNUALIZED
B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN (SEE NOTE 5 OF NOTES TO FINANCIAL
STATEMENTS).
C TOTAL RETURNS 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 AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD HAVE
BEEN HIGHER.
F FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES
WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES (SEE NOTE 5 OF
NOTES TO FINANCIAL STATEMENTS).
G FOR THE PERIOD JULY 3, 1995 (COMMENCEMENT OF SALE OF INSTITUTIONAL CLASS
SHARES) TO OCTOBER 31, 1995.
H FOR FISCAL YEARS BEGINNING ON OR AFTER SEPTEMBER 1, 1995, A FUND IS
REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR SECURITY
TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY FROM PERIOD
TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF TRADES EXECUTED IN
VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE STRUCTURES MAY
DIFFER.
NOTES TO FINANCIAL STATEMENTS
For the period ended April 30, 1996 (Unaudited)

1. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity Advisor Global Resources Fund (the fund) is a fund of Fidelity
Advisor Series V (the trust) and is authorized to issue an unlimited number
of shares. The trust is registered under the Investment Company Act of
1940, as amended (the 1940 Act), as an open-end management investment
company organized as a Massachusetts business trust.
The 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. 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 financial statements have been prepared in conformity with generally
accepted accounting principles which permit management to make certain
estimates and assumptions at the date of the financial statements. 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.
1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, the fund is not subject to income taxes to
the extent that it distributes substantially all of its taxable income for
its fiscal year. The schedule of investments includes information regarding
income taxes under the caption "Income Tax Information."
INVESTMENT INCOME. Dividend income is recorded on the ex-dividend date,
except certain dividends from foreign securities where the ex-dividend date
may have passed, are recorded as soon as the fund is informed of the
ex-dividend date. Interest income is accrued as earned. Investment income
is recorded net of foreign taxes withheld where recovery of such taxes is
uncertain.
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. These expenses 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 distribu-
tions 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 are used to
hedge the fund's investments against currency fluctuations. Also, a
contract to buy or sell can offset a previous contract. Losses may arise
from changes in the value of the foreign currency or if the counterparties
do not perform under the contracts' terms.
The U.S. dollar value of forward foreign currency contracts is determined
using forward currency exchange rates supplied by a quotation service.
Purchases and sales of forward foreign currency contracts having the same
settlement date and broker are offset and any realized gain (loss) is
recognized on the date of offset; otherwise, gain (loss) is recognized on
settlement date.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the fund, 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 $402,848,928 and $264,992,544, 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 .2500% 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
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
MANGAEMENT FEE - CONTINUED
rates, as they resulted in the same or a lower management fee. The annual
individual fund fee rate is .45%. For the period, the management fee was
equivalent to an annualized rate of .76% 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. For the period November 1, 1995 to December 31, 1995, this fee
was 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.
Effective January 1, 1996, the Board of Trustees approved a revised Class A
distribution plan, under which the fee is based on an annual rate of .50%
of the average net assets of the Class A shares. For the period, the fund
paid FDC $936,387 and $36,419 under the Class A Plan and Class B Plan,
respectively, of which $863,616 and $9,104 were paid to securities dealers,
banks and other financial institutions for the distribution of Class A and
Class B shares, respectively, 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. The Plans also authorize payments to third
parties that assist in the sale of the fund's shares or render shareholder
support services.
SALES LOAD. For the period November 1, 1995 through December 31, 1995, FDC
received a front-end sales charge of up to 4.75% for selling Class A shares
of the fund. Effective January 1, 1996, the Board of Trustees approved a
revised Class A sales charge. Under the revised arrangement, FDC receives a
front-end sales charge of up to 3.50% for selling Class A shares of the
fund. For the period, FDC received sales charges of $1,653,563 on sales of
Class A shares of the fund, of which $1,399,765 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
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
SALES LOAD - CONTINUED
charges of $5,568 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. 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. For the
period, the transfer agent fees were equivalent to an annualized rate of
.25%, .27%, and .11% of average net assets for Class A, Class B, and
Institutional Class, respectively.
ACCOUNTING AND SECURITY LENDING FEES. Fidelity Service Co. (FSC), an
affiliate of FMR, maintains the fund's
accounting records and administers the 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 $184,926 for the period.
5. EXPENSE REDUCTIONS.
FMR voluntarily agreed to reimburse operating expenses (excluding interest,
taxes, brokerage commissions and extraordinary expenses) above the
following annual rates of average net assets for Class A, Class B and
Institutional Class.
(I) CLASS A. Effective January 1, 1996, the expense limitation changed from
an annual rate of 2.40% to 2.25% of average net assets.
(II) CLASS B. For the period, this expense limitation was 2.75% of average
net assets and the reimbursement reduced expenses by $6,039.
(III) INSTITUTIONAL CLASS. For the period, this expense limitation was
1.75% of average net assets and the reimbursement reduced expenses by
$9,446.
FMR has directed certain portfolio trades to brokers who paid a portion of
the fund's expenses. For the period, the fund's expenses were reduced by
$52,917 under this arrangement.
5. EXPENSE REDUCTIONS -
CONTINUED
In addition, the fund has entered into arrangements with its custodian and
transfer agent whereby interest earned on uninvested cash balances was used
to offset a portion of the class' expenses. During the period, the fund's
custodian fees were reduced by $564 under the custodian arrangement, and
Class A, and Institutional Class expenses were reduced by $4,507, and $850,
respectively, under the transfer agent arrangement.
6. SHARE TRANSACTIONS.
Share transactions for each class of shares were as follows:
SHARES DOLLARS
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31,
1996 1995 A 1996 1995 A

CLASS A
Shares sold 8,199,439 7,829,216 $ 178,455,824 $ 140,936,888
Reinvestment of distributions 462,106 172,755 9,214,395 2,772,967
Shares redeemed (2,145,805) (5,174,557) (45,970,685) (90,539,239)
Net increase (decrease) 6,515,740 2,827,414 $ 141,699,534 $ 53,170,616
CLASS B
Shares sold 654,308 131,062 $ 14,150,219 $ 2,593,820
Reinvestment of distributions 5,653 - 112,491 -
Shares redeemed (21,276) (639) (444,788) (12,702)
Net increase (decrease) 638,685 130,423 $ 13,817,922 $ 2,581,118
INSTITUTIONAL CLASS
Shares sold 331,156 38,128 $ 7,187,113 $ 737,951
Reinvestment of distributions 1,464 - 29,239 -
Shares redeemed (2,353) (858) (52,359) (16,977)
Net increase (decrease) 330,267 37,270 $ 7,163,993 $ 720,974
A SHARE TRANSACTIONS FOR CLASS B AND INSTITUTIONAL CLASS ARE FOR THE PERIOD
JULY 3, 1995 (COMMENCEMENT OF SALE OF SHARES) TO OCTOBER 31, 1995.

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
State Street Bank and Trust Company
Boston, MA - Class A
Fidelity Investments Institutional
Operations Company
Boston, MA - Class B
CUSTODIAN
Brown Brothers Harriman & Co.
Boston, MA
GROWTH FUNDS
Fidelity Advisor Overseas Fund
Fidelity Advisor Mid Cap Fund
Fidelity Advisor Equity Growth Fund
Fidelity Advisor Global Resources Fund
Fidelity Advisor Growth
Opportunities Fund
Fidelity Advisor Strategic
Opportunities Fund
Fidelity Advisor Large Cap Fund
GROWTH AND INCOME FUNDS
Fidelity Advisor Equity Income Fund
Fidelity Advisor Income & Growth Fund
TAXABLE 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 Intermediate Bond Fund
Fidelity Advisor Short Fixed-Income Fund
MUNICIPAL FUNDS
Fidelity Advisor High Income
Municipal Fund
Fidelity Advisor Intermediate Municipal Income Fund
Fidelity Advisor Short-Intermediate Municipal Income Fund
STATE MUNICIPAL FUNDS
Fidelity Advisor California Municipal Income Fund
Fidelity Advisor New York Municipal Income Fund
MONEY MARKET FUNDS
Daily Money Fund: Money Market Portfolio
Daily Money Fund: U.S. Treasury Portfolio
Daily Tax-Exempt Money Fund
* INDEPENDENT TRUSTEES

(2_FIDELITY_LOGOS)FIDELITY ADVISOR
(registered trademark)

GLOBAL RESOURCES
FUND - INSTITUTIONAL CLASS
SEMIANNUAL REPORT
APRIL 30, 1996
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.

DEAR SHAREHOLDER:
Although stocks have managed to post solid returns through the first four
months of 1996, signs of strength in the economy have led to inflation
fears, causing some uncertainty in bond markets so far this year. In 1995,
both stock and bond markets posted strong results, while the year before,
stocks posted below-average returns and bonds had one of the worst years in
history.
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. 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 - INSTITUTIONAL CLASS
PERFORMANCE: THE BOTTOM LINE

Advisor Global Resources - 26.38% 34.77% 125.39% 282.00%
Institutional Class

S&P 500(registered trademark) 13.76% 30.21% 100.72% 245.02%

Natural Resources Funds 29.16% 27.09% 68.24% n/a
Average

CUMULATIVE TOTAL RETURNS show Institutional Class' performance in
percentage terms over a set period - in this case, six months, one year,
five years, or since the fund started on December 29, 1987. For example, if
you invested $1,000 in a fund that had a 5% return over the past year, the
value of your investment would be $1,050. You can compare Institutional
Class' returns to the performance of the Standard & Poor's 500 Index - 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 natural
resources funds average, which reflects the performance of 40 natural
resources funds with similar objectives tracked by Lipper Analytical
Services over the past six months. Both benchmarks include reinvested
dividends and capital gains, if any, and exclude the effects of sales
charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED APRIL 30, 1996 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

Advisor Global Resources - 34.77% 17.65% 17.42%
Institutional Class

S&P 500 30.21% 14.95% 16.00%

Natural Resources Funds Average 27.09% 10.79% 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
IMAHDR PRASUN SHR__CHT 19960430 19960523 131151 S00000000000001
FA Global Resources -CL I SP Standard & Poor 500
00686 SP001
1987/12/29 10000.00 10000.00
1987/12/31 9980.00 10064.43
1988/01/31 9880.00 10488.14
1988/02/29 10630.00 10976.89
1988/03/31 10920.00 10637.70
1988/04/30 11100.00 10755.78
1988/05/31 10920.00 10849.36
1988/06/30 11640.00 11347.34
1988/07/31 11590.00 11304.22
1988/08/31 11280.00 10919.88
1988/09/30 11230.00 11385.07
1988/10/31 11470.00 11701.57
1988/11/30 11210.00 11534.24
1988/12/31 11586.91 11736.09
1989/01/31 12523.44 12595.17
1989/02/28 12338.32 12281.55
1989/03/31 12577.89 12567.71
1989/04/30 12969.93 13219.97
1989/05/31 13274.85 13755.38
1989/06/30 13231.29 13676.98
1989/07/31 14189.61 14912.01
1989/08/31 14614.32 15204.28
1989/09/30 14222.28 15141.94
1989/10/31 13721.34 14790.65
1989/11/30 14331.18 15092.38
1989/12/31 15426.57 15454.60
1990/01/31 14453.51 14417.59
1990/02/28 15129.90 14603.58
1990/03/31 15414.70 14990.58
1990/04/30 14607.77 14615.81
1990/05/31 16091.10 16040.85
1990/06/30 15889.36 15931.78
1990/07/31 16672.56 15880.79
1990/08/31 16233.50 14445.17
1990/09/30 15723.23 13741.69
1990/10/31 14595.91 13682.60
1990/11/30 14833.24 14566.50
1990/12/31 14611.74 14972.90
1991/01/31 15093.85 15625.72
1991/02/28 17269.54 16742.96
1991/03/31 16861.60 17148.14
1991/04/30 16948.13 17189.30
1991/05/31 17764.01 17931.87
1991/06/30 16737.98 17110.59
1991/07/31 17294.26 17907.95
1991/08/31 17739.29 18332.37
1991/09/30 17047.02 18026.21
1991/10/31 17442.60 18267.77
1991/11/30 16033.35 17531.58
1991/12/31 16725.88 19537.19
1992/01/31 17764.58 19173.80
1992/02/29 18164.09 19423.06
1992/03/31 17711.32 19044.31
1992/04/30 18363.84 19604.21
1992/05/31 18856.56 19700.27
1992/06/30 18243.99 19406.73
1992/07/31 18976.41 20200.47
1992/08/31 18696.76 19786.36
1992/09/30 18883.19 20019.84
1992/10/31 18483.69 20089.91
1992/11/30 18723.39 20774.97
1992/12/31 18956.24 21030.51
1993/01/31 19563.91 21207.16
1993/02/28 20112.29 21495.58
1993/03/31 21446.19 21949.14
1993/04/30 22602.24 21417.97
1993/05/31 23713.83 21991.97
1993/06/30 24039.89 22055.75
1993/07/31 23713.83 21967.52
1993/08/31 25077.37 22800.09
1993/09/30 24943.98 22624.53
1993/10/31 26070.39 23092.86
1993/11/30 25092.19 22873.48
1993/12/31 26148.04 23150.25
1994/01/31 27737.91 23937.36
1994/02/28 26873.51 23288.65
1994/03/31 25221.90 22273.27
1994/04/30 25638.66 22558.37
1994/05/31 25978.24 22928.32
1994/06/30 25515.17 22366.58
1994/07/31 26379.57 23100.20
1994/08/31 27660.73 24047.31
1994/09/30 27521.81 23458.15
1994/10/31 27105.05 23985.96
1994/11/30 25329.95 23112.39
1994/12/31 25552.05 23455.15
1995/01/31 25050.10 24063.34
1995/02/28 25787.33 25001.09
1995/03/31 27230.42 25738.87
1995/04/30 28344.11 26496.88
1995/05/31 28736.25 27555.96
1995/06/30 29551.91 28196.09
1995/07/31 30806.76 29131.07
1995/08/31 31293.02 29204.19
1995/09/30 31528.31 30436.60
1995/10/31 30226.39 30327.94
1995/11/30 31763.59 31659.34
1995/12/31 32925.99 32269.10
1996/01/31 34175.53 33367.54
1996/02/29 35019.37 33676.86
1996/03/31 36090.39 34001.17
1996/04/30 38183.77 34502.34
IMATRL PRASUN SHR__CHT 19960430 19960523 131155 R00000000000104

$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 April 30, 1996, the value of
your investment would have grown to $38,200 - a 282.00% 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 $34,502 - a 245.02% increase.
UNDERSTANDING
PERFORMANCE
How a fund did yesterday is no
guarantee of how it will do
tomorrow. The stock market, for
example, has a history of
growth in the long run and
volatility in the short run. Foreign
stocks involve greater risks, due
to political and economic
uncertainties. In turn, the share
price and return of a fund that
invests in stocks will vary. That
means if you sell your shares
during a market downturn, you
might lose money. But if you
can ride out the market's ups
and downs, you may have a
gain.
(checkmark)
FUND TALK: THE MANAGER'S OVERVIEW

An interview with Malcolm MacNaught, Portfolio Manager of Fidelity Advisor
Global Resources Fund
Q. MALCOLM, HOW HAS THE FUND PERFORMED?
A. For the six months ended April 30, 1996, Institutional Class had a total
return of 26.38%. During the same six month period, the natural resources
funds average tracked by Lipper Analytical Services returned 29.16%. For
the 12 months ended April 30, 1996, Institutional Class had a total return
of 34.77%, while the natural resources funds average returned 27.09%. The
Standard & Poor's 500 Index returned 13.76% for the six-month period and
30.21% for the 12-month period.
Q. WHY DID THE NATURAL RESOURCES SECTOR TURN IN A BETTER PERFORMANCE THAN
THE STOCK MARKET AS A WHOLE DURING THE PAST SIX MONTHS?
A. Many of the world's major commodities posted strong price increases
during the period. The Commodity Bureau Index, a broad measure of commodity
prices, hit a seven-year high in the first quarter of 1996. There were two
groups that did particularly well and provided the underpinnings for the
natural resources sector to outperform the broader market: gold and energy.
The demand for gold rose late in the period, boosted primarily by fears of
inflation. Meanwhile, the supply of gold remained relatively tight. Rising
demand and limited supply pushed the price of many North American
gold-related stocks higher. Energy stocks rose dramatically as lower
inventories and rising demand lifted oil and natural gas prices to their
highest levels since the 1991 Persian Gulf War.
Q. LET'S BEGIN WITH ENERGY, SINCE ENERGY-RELATED COMPANIES MADE UP ABOUT
26% OF THE FUND'S INVESTMENTS AT THE END OF THE PERIOD. WHICH ENERGY STOCKS
PERFORMED WELL FOR THE FUND OVER THE PAST SIX MONTHS?
A. Energy service companies, including drillers like Diamond Offshore and
Falcon Drilling, were some of the fund's best performers during the period.
Additionally, the colder-than-normal winter in the East and Midwest,
coupled with low inventories, helped natural gas stocks. Virtually all
natural gas stocks east of the Mississippi and in the Gulf of Mexico
performed well. Those with significant exploration successes, such as
Chesapeake Energy, did even better. This company has successfully carved
out a profitable niche by using horizontal drilling technology to tap
reserves that other companies didn't think they could tap. In 1995, its
production more than doubled.
Q. WHICH OF THE FUND'S GOLD HOLDINGS DID WELL?
A. Bre-X Minerals, a Canadian company, performed well on the news that it
had discovered a deposit in Indonesia that holds at least 30 million ounces
of gold. South African gold producers, including Vaal Reefs Exploration &
Mining and Western Deep Levels, were also among the fund's leading
performers over the past six months.
Q. WHAT WAS YOUR STRATEGY WITH THE BASIC INDUSTRIES COMPONENT OF THE FUND?
A. Throughout the past six months, I kept a large portion of the fund's
stake in the basic industries category invested in specialty chemicals
companies. The global economy remained reasonably healthy, boosting demand
for these products. That greater demand, along with lower raw materials
costs, enhanced the operating margins of many specialty chemical companies,
such as Rohm & Haas.
Q. DO YOU REGRET SOME OF YOUR INVESTMENT DECISIONS OVER THE PAST SIX
MONTHS?
A. Sure. I could have had more of the fund invested in energy stocks or in
gold instead of keeping it more broadly diversified over a number of
natural resources groups. However, I believe investors choose a natural
resources fund to track the activities in the natural resources sector as a
whole, rather than any other sector in particular. So the fund tends to be
more balanced than many of its competitors.
Q. SOME OF THE FUND'S LARGEST HOLDINGS DON'T REALLY QUALIFY UNDER THE
HEADING OF "NATURAL RESOURCES" COMPANIES. HOW DO THE STOCKS OF DRUG AND
TECHNOLOGY COMPANIES, FOR EXAMPLE, FIT INTO A NATURAL RESOURCES FUND?
A. I don't want the performance of the fund to be totally dependent on
rising or falling commodity prices. Sometimes inflation is not a problem,
and in a non-inflationary period, natural resources companies often find it
difficult to raise prices. Also, some of the stocks included in the
technology sector provide very valuable services or equipment to natural
resources companies. Sun Microsystems is an excellent example. It provides
computer equipment and software for business users. The fund's charter
allows me to invest up to 35% of its net assets in sectors other than
natural resources. At the end of the period, technology stocks accounted
for 6.4% of investments, and health care stocks made up 5.8%. While the
fund's technology holdings turned in a mixed performance during the past
six months, many health care holdings performed quite well in the same
period.
Q. WHAT'S YOUR OUTLOOK?
A. I think that the economy is doing better than some of the economic data
suggest. Some observers are worried that the rise in personal, corporate
and government debt could derail economic growth. In my view, the
indebtedness of these groups is still manageable so long as interest rates
remain low. No one can say for sure where the economy or interest rates are
headed. The natural resources sector, and the energy industry in
particular, have been hot recently. But it's important for shareholders to
remember that historically there is some seasonality to energy stocks. From
my vantage point, if that seasonality holds true to form, some interesting
opportunities could emerge for buying attractive energy companies at lower
price levels.
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.

TOP TEN STOCKS AS OF APRIL 30, 1996
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE STOCKS
6 MONTHS AGO

Bre-X Minerals Ltd. 2.6 1.0

Louisiana Land & Exploration Co. 1.2 0.9

Diamond Offshore Drilling, Inc. 1.1 0.0

Pechiney SA Class A 1.0 0.0

Occidental Petroleum Corp. 1.0 1.0

Xerox Corp. 1.0 0.8

Kerr-McGee Corp. 1.0 0.0

Alcan Aluminium Ltd. 1.0 1.0

Falcon Drilling, Inc. 0.9 0.4

Witco Corp. 0.9 0.0

TOP FIVE MARKET SECTORS AS OF APRIL 30, 1996
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE MARKET SECTORS
6 MONTHS AGO

Energy 26.2 22.2

Basic Industries 23.3 31.9

Precious Metals 8.2 5.9

Industrial Machinery & Equipment 6.6 8.0

Technology 6.4 5.6

Showing Percentage of Total Value of Investment in Securities

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
ASSETS APRIL 30, 1996 (UNAUDITED)

Investment in securities, at value (including repurchase $ 516,463,004
agreements of $40,554,000) (cost $442,481,291) -
See accompanying schedule

Cash 479,161

Receivable for investments sold 5,223,849

Receivable for fund shares sold 7,992,449

Dividends receivable 322,027

Other receivables 14,084

Prepaid expenses 6,751

TOTAL ASSETS 530,501,325

LIABILITIES

Payable for investments purchased $ 16,080,890

Payable for fund shares redeemed 739,650

Accrued management fee 283,768

Distribution fees payable 221,731

Other payables and accrued expenses 123,199

TOTAL LIABILITIES 17,449,238

NET ASSETS $ 513,052,087

Net Assets consist of:

Paid in capital $ 412,229,702

Accumulated net investment (loss) (233,840)

Accumulated undistributed net realized gain (loss) on 27,074,163
investments and foreign currency transactions

Net unrealized appreciation (depreciation) on 73,982,062
investments and assets and liabilities in foreign
currencies

NET ASSETS $ 513,052,087

CALCULATION OF MAXIMUM OFFERING PRICE $23.50
CLASS A:
NET ASSET VALUE, and redemption price per share
($486,431,768 (divided by) 20,695,917 shares)

Maximum offering price per share (100/96.50 of $23.50) $24.35

CLASS B: $23.36
NET ASSET VALUE, and offering price per share
($17,968,005 (divided by) 769,108 shares) A

INSTITUTIONAL CLASS : $23.54
NET ASSET VALUE, offering price and redemption price
per share ($8,652,314 (divided by) 367,537 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>
SIX MONTHS ENDED APRIL 30, 1996 (UNAUDITED)

INVESTMENT INCOME $ 1,877,674
Dividends

Interest 821,075

TOTAL INCOME 2,698,749

EXPENSES

Management fee $ 1,349,821

Transfer agent fees 424,413
Class A

Class B 9,580

Institutional Class 1,852

Distribution fees 936,387
Class A

Class B 36,419

Accounting fees and expenses 126,550

Non-interested trustees' compensation 633

Custodian fees and expenses 35,877

Registration fees 20,300
Class A

Class B 22,108

Institutional Class 20,063

Audit 13,184

Legal 2,693

Miscellaneous 6,624

Total expenses before reductions 3,006,504

Expense reductions (74,323) 2,932,181

NET INVESTMENT INCOME (LOSS) (233,432)

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

Investment securities 27,634,654

Foreign currency transactions 1,004 27,635,658

Change in net unrealized appreciation (depreciation) on:

Investment securities 56,984,168

Assets and liabilities in foreign currencies 89 56,984,257

NET GAIN (LOSS) 84,619,915

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM $ 84,386,483
OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR ENDED
ENDED OCTOBER 31,
APRIL 30,1996 1995
(UNAUDITED)

INCREASE (DECREASE) IN NET ASSETS

Operations $ (233,432) $ (685,143)
Net investment income (loss)

Net realized gain (loss) 27,635,658 11,238,410

Change in net unrealized appreciation (depreciation) 56,984,257 12,904,308

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 84,386,483 23,457,575
FROM OPERATIONS

Distributions to shareholders (10,063,536) (3,086,044)
From net realized gain
Class A

Class B (127,176) -

Institutional Class (30,367) -

TOTAL DISTRIBUTIONS (10,221,079) (3,086,044)

Share transactions - net increase (decrease) 162,681,449 56,472,708

TOTAL INCREASE (DECREASE) IN NET ASSETS 236,846,853 76,844,239

NET ASSETS

Beginning of period 276,205,234 199,360,995

End of period (including accumulated net investment $ 513,052,087 $ 276,205,234
loss of $233,840 and $408, respectively)

FINANCIAL HIGHLIGHTS - CLASS A
SIX MONTHS YEARS ENDED OCTOBER 31,
ENDED APRIL 30,
1996

(UNAUDITED) 1995 1994 I 1993 1992 1991

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

Net asset value, $ 19.25 $ 17.56 $ 17.59 $ 13.88 $ 14.11 $ 12.30
beginning of period

Income from (.01) D (.05) D (.11) D .22 (.10) (.15)
Investment
Operations
Net investment
income (loss)

Net realized and 4.95 2.00 .76 4.91 .79 2.45
unrealized gain
(loss)

Total from investment 4.94 1.95 .65 5.13 .69 2.30
operations

Less Distributions (.69) (.26) (.68) (1.42) (.92) (.49)
From net realized
gain

Net asset value, $ 23.50 $ 19.25 $ 17.56 $ 17.59 $ 13.88 $ 14.11
end of period

TOTAL RETURN B, C 26.30% 11.40% 3.97% 41.05% 5.97% 19.50%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of $ 486,432 $ 272,979 $ 199,361 $ 40,309 $ 7,087 $ 5,940
period (000 omitted)

Ratio of expenses to 1.69% A 1.86% 2.10% 2.63% 3.27% 3.35%
average net assets E E E G G

Ratio of expenses to 1.66% A, 1.84% 2.07% 2.62% 3.27% 3.35%
average net assets F F F F
after expense
reductions

Ratio of net investment (.12)% (.30) (.67) (1.18) (1.22) (1.28)%
income (loss) to A % % % %
average net assets

Portfolio turnover rate 160% A 161% 125% 208% 248% 256%

Average commission $ 0.0298
rate H

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR ENDED
ENDED APRIL 30, OCTOBER 31,
1996

(UNAUDITED) 1995 G

SELECTED PER-SHARE DATA D

Net asset value, beginning of period $ 19.23 $ 18.87

Income from Investment Operations

Net investment income (loss) (.10) (.03)

Net realized and unrealized gain (loss) 4.92 .39

Total from investment operations 4.82 .36

Less Distributions

From net realized gain (.69) -

Net asset value, end of period $ 23.36 $ 19.23

TOTAL RETURN B, C 25.69% 1.91%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 17,968 $ 2,508

Ratio of expenses to average net assets 2.56% A, 2.23% A,
E E

Ratio of expenses to average net assets after 2.56% A 2.21% A,
expense reductions F

Ratio of net investment income (loss) to average net (1.02)% A (.67)% A
assets

Portfolio turnover rate 160% A 161%

Average commission rate H $ 0.0298

</TABLE>

A ANNUALIZED
B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN (SEE NOTE 5 OF NOTES TO FINANCIAL
STATEMENTS).
C TOTAL RETURNS DO NOT INCLUDE THE 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 AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD HAVE
BEEN HIGHER.
F FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES
WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES (SEE NOTE 5 OF
NOTES TO FINANCIAL STATEMENTS).
G FOR THE PERIOD JULY 3, 1995 (COMMENCEMENT OF SALE OF CLASS B SHARES) TO
OCTOBER 31, 1995.
H FOR FISCAL YEARS BEGINNING ON OR AFTER SEPTEMBER 1, 1995, A FUND IS
REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR SECURITY
TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY FROM PERIOD
TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF TRADES EXECUTED IN
VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE STRUCTURES MAY
DIFFER.
FINANCIAL HIGHLIGHTS - INSTITUTIONAL CLASS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR ENDED
ENDED OCTOBER 31,
APRIL 30, 1996

(UNAUDITED) 1995 G

SELECTED PER-SHARE DATA D

Net asset value, beginning of period $ 19.27 $ 18.87

Income from Investment Operations

Net investment income (loss) - (.01)

Net realized and unrealized gain (loss) 4.96 .41

Total from investment operations 4.96 .40

Less Distributions

From net realized gain (.69) -

Net asset value, end of period $ 23.54 $ 19.27

TOTAL RETURN B, C 26.38% 2.12%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 8,652 $ 718

Ratio of expenses to average net assets 1.58% A, 1.68% A,
E E

Ratio of expenses to average net assets after 1.53% A, 1.66% A,
expense reductions F F

Ratio of net investment income (loss) to average net .01% A (.13)% A
assets

Portfolio turnover rate 160% A 161%

Average commission rate H $ 0.0298

</TABLE>

A ANNUALIZED
B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN (SEE NOTE 5 OF NOTES TO FINANCIAL
STATEMENTS).
C TOTAL RETURNS 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 AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD HAVE
BEEN HIGHER.
F FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES
WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES (SEE NOTE 5 OF
NOTES TO FINANCIAL STATEMENTS).
G FOR THE PERIOD JULY 3, 1995 (COMMENCEMENT OF SALE OF INSTITUTIONAL CLASS
SHARES) TO OCTOBER 31, 1995.
H FOR FISCAL YEARS BEGINNING ON OR AFTER SEPTEMBER 1, 1995, A FUND IS
REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR SECURITY
TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY FROM PERIOD
TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF TRADES EXECUTED IN
VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE STRUCTURES MAY
DIFFER.
NOTES TO FINANCIAL STATEMENTS
For the period ended April 30, 1996 (Unaudited)

(2_FIDELITY_LOGOS)FIDELITY ADVISOR
(registered trademark)

NEW YORK MUNICIPAL INCOME
FUND - CLASS A & CLASS B
(FORMERLY ADVISOR NEW YORK TAX-FREE FUND)
SEMIANNUAL REPORT
APRIL 30, 1996
CONTENTS

PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.

PERFORMANCE 4 How the fund has done over time.

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

INVESTMENT CHANGES 13 A summary of major shifts in the
fund's investments over the past six
months.

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

FINANCIAL STATEMENTS 17 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.

NOTES 23 Notes to the financial statements.

DEAR SHAREHOLDER:
Although stocks have managed to post solid returns through the first four
months of 1996, signs of strength in the economy have led to inflation
fears, causing some uncertainty in bond markets so far this year. In 1995,
both stock and bond markets posted strong results, while the year before,
stocks posted below-average returns and bonds had one of the worst years in
history.
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 MUNICIPAL INCOME FUND - CLASS A
PERFORMANCE: THE BOTTOM LINE

Advisor New York Municipal Income - Class 0.73% 5.62%
A

Advisor New York Municipal Income - Class A -2.79% 1.92%
(incl. max. 3.50% sales charge)

Lehman Brothers New York 4 Plus Year 0.96% n/a
Municipal Bond Index

New York Municipal Debt Funds Average 0.47% 5.28%

CUMULATIVE TOTAL RETURNS show Class A's performance in percentage terms
over a set period - in this case, six months, or since the fund started 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. You can compare Class A's returns to the Lehman Brothers New York 4
Plus Year Municipal Bond Index, which includes New York investment-grade
municipal bonds with maturities of at least four years. To measure how
Class A's performance stacked up against its peers, you can compare it to
the New York municipal debt funds average, which reflects the performance
of 100 New York municipal debt funds with similar objectives tracked by
Lipper Analytical Services over the past six months. Both benchmarks
include reinvested dividends and capital gains, if any.
AVERAGE ANNUAL TOTAL RETURNS
AVERAGE ANNUAL RETURNS take Class A shares' actual (or cumulative) return
and show you what would have happened if Class A had performed at a
constant rate each year. Since the class is less than a year old, we will
report these numbers in the next report.
$10,000 OVER LIFE OF FUND

IMAHDR PRASUN SHR__CHT 19960430 19960522 102225 S00000000000001
Fidelity Advisor LB Municipal Bond I
1995/08/31 9650.00 10000.00
1995/09/30 9683.70 10063.30
1995/10/31 9858.95 10209.62
1995/11/30 10033.02 10379.00
1995/12/31 10145.31 10478.74
1996/01/31 10219.78 10557.85
1996/02/29 10129.39 10486.59
1996/03/31 9973.26 10352.57
1996/04/30 9931.21 10323.27
IMATRL PRASUN SHR__CHT 19960430 19960522 102229 R00000000000092

$10,000 OVER LIFE OF FUND: Let's say you invested $10,000 in Advisor New
York Municipal Income Fund - Class A on August 31, 1995, shortly after the
fund started, and paid the current maximum 3.50% sales charge. As the chart
shows, by April 30, 1996, the value of your investment would have decreased
to $9,931 - a .69% decrease on your initial investment. For comparison,
look at how the Lehman Brothers Municipal Bond Index, which reflects the
performance of the investment-grade municipal bond market, did over the
same period. With dividends reinvested, the same $10,000 investment would
have grown to $10,323 - a 3.23% increase.
UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. Bond prices, for
example, generally move in
the opposite direction of
interest rates. In turn, the
share price, return, and yield
of a fund that invests in
bonds will vary. That means if
you sell your shares during a
market downturn, you might
lose money. But if you can
ride out the market's ups and
downs, you may have a gain.
(checkmark)
TOTAL RETURN COMPONENTS
SIX MONTHS AUGUST 21, 1995
ENDED (COMMENCEMENT
APRIL 30, OF
1996 OPERATIONS) TO
OCTOBER 31,
1995

Dividend return 2.08% 0.85%

Capital appreciation return -1.35% 4.00%

Total return 0.73% 4.85%

<TABLE>
<CAPTION>
<S> <C> <C> <C>
PERIODS ENDED APRIL 30, 1996 PAST PAST 6 LIFE OF
MONTH MONTHS CLASS

Dividends per share 3.64(cents) 21.93(cents) 30.34(cents)

Annualized dividend rate 4.31% 4.19% 4.17%

30-day annualized yield 4.42% - -

30-day annualized tax-equivalent yield 7.81% - -

</TABLE>

DIVIDENDS per share show the income paid by the class for a set period. If
you annualize this number, based on an average share price of $10.27 over
the past month, $10.49 over the past six months, and $10.43 over the life
of class, you can compare the class' income over these three periods. The
30-day annualized YIELD is a standard formula for all bond funds based on
the yields of the bonds in the fund, averaged over the past 30 days. This
figure shows you the yield characteristics of the fund's investments at the
end of the period. It also helps you compare funds from different companies
on an equal basis. The offering share price used in the calculation of the
yield includes the effect of Class A's current maximum 3.50% 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 43.41%
combined effective 1996 federal, state and New York City tax bracket but
does not reflect the payment of the federal alternative minimum tax, if
applicable. If Fidelity had not reimbursed certain Class A expenses during
the period shown, the yield and the tax-equivalent yield would have been
2.47% and 4.36%, respectively.
ADVISOR NEW YORK MUNICIPAL INCOME FUND - CLASS B
PERFORMANCE: THE BOTTOM LINE

Advisor New York Municipal Income - Class B 0.39% 5.06%

Advisor New York Municipal Income - Class B -3.55% 1.06%
(incl. 4.00% contingent deferred sales charge)

Lehman Brothers New York 4 Plus Year 0.96% n/a
Municipal Bond Index

New York Municipal Debt Funds Average 0.47% 5.28%

CUMULATIVE TOTAL RETURNS show Class B's performance in percentage terms
over a set period - in this case, six months, or since the fund started 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. You can compare Class B's returns to the Lehman Brothers New York 4
Plus Year Municipal Bond Index, which includes New York investment-grade
municipal bonds with maturities of at least four years. To measure how
Class B's performance stacked up against its peers, you can compare it to
the New York municipal debt funds average, which reflects the performance
of 100 New York municipal debt funds with similar objectives tracked by
Lipper Analytical Services over the past six months. Both benchmarks
include reinvested dividends and capital gains, if any.
AVERAGE ANNUAL TOTAL RETURNS
AVERAGE ANNUAL RETURNS take Class B shares' actual (or cumulative) return
and show you what would have happened if Class B had performed at a
constant rate each year. Since the class is less than a year old, we will
report these numbers in the next report.
$10,000 OVER LIFE OF FUND - CLASS B

IMAHDR PRASUN SHR__CHT 19960430 19960521 102225 S00000000000001
Fidelity Advisor NY LB Municipal Bond
00612 LB015
1995/08/31 10000.00 10000.00
1995/09/30 10031.16 10063.3
1995/10/31 10198.61 10209.62
1995/11/30 10382.57 10379
1995/12/31 10481.89 10478.74
1996/01/31 10553.22 10557.85
1996/02/29 10464.34 10486.59
1996/03/31 10297.38 10352.57
1996/04/30 9839.00 10323.27
IMATRL PRASUN SHR__CHT 19960430 19960522 102229 R00000000000092

$10,000 OVER LIFE OF FUND: Let's say you invested $10,000 in Advisor New
York Municipal Income Fund - Class B on August 31, 1995, shortly after the
fund started and paid the applicable 4% contingent deferred sales charge.
As the chart shows, by April 30, 1996, the value of your investment would
have decreased to $9,839 - a 1.61% loss on your initial investment. For
comparison, look at how the Lehman Brothers Municipal Bond Index, which
reflects the performance of the investment-grade municipal bond market, did
over the same period. With dividends reinvested, the same $10,000
investment would have grown to $10,323 - a 3.23% increase.
UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. Bond prices, for
example, generally move in
the opposite direction of
interest rates. In turn, the
share price, return, and yield
of a fund that invests in
bonds will vary. That means if
you sell your shares during a
market downturn, you might
lose money. But if you can
ride out the market's ups and
downs, you may have a gain.
(checkmark)
TOTAL RETURN COMPONENTS
SIX MONTHS AUGUST 21, 1995
ENDED (COMMENCEMENT
APRIL 30, OF
1996 OPERATIONS) TO
OCTOBER 31,
1995

Dividend return 1.74% 0.75%

Capital appreciation return -1.35% 3.90%

Total return 0.39% 4.65%

<TABLE>
<CAPTION>
<S> <C> <C> <C>
PERIODS ENDED APRIL 30, 1996 PAST PAST 6 LIFE OF
MONTH MONTHS CLASS

Dividends per share 3.12(cents) 18.38(cents) 25.82(cents)

Annualized dividend rate 3.69% 3.52% 3.56%

30-day annualized yield 3.98% - -

30-day annualized tax-equivalent yield 7.03% - -

</TABLE>

DIVIDENDS per share show the income paid by the class for a set period. If
you annualize this number, based on an average share price of $10.26 over
the past month, $10.48 over the past six months, and $10.42 over the life
of class, you can compare the class' income over these three periods. The
30-day annualized YIELD is a standard formula for all bond funds based on
the yields of the bonds in the fund, averaged over the past 30 days. This
figure shows you the yield characteristics of the fund's investments at the
end of the period. It also helps you compare funds from different companies
on an equal basis. The 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 43.41% combined effective 1996 federal, state and New York City tax
bracket but does not reflect the payment of the federal alternative minimum
tax, if applicable. If Fidelity had not reimbursed certain Class B expenses
during the period shown, the yield and the tax-equivalent yield would have
been 1.25% and 2.21%, respectively. The offering share price used in the
calculation of the yield excludes the effect of Class B's contingent
deferred sales charge.
FUND TALK: THE MANAGER'S OVERVIEW

An interview with Norman Lind, Portfolio Manager of Fidelity Advisor New
York Municipal Income Fund
Q. HOW DID THE FUND PERFORM, NORM?
A. For the six months ended April 30, 1996, the fund's Class A and Class B
shares had a total return of 0.73% and 0.39%, respectively. That compares
to 0.47% for the New York State Municipal Debt funds average as tracked by
Lipper Analytical Services over the period, and 0.96% for the Lehman
Brothers New York 4 Plus Year Municipal Bond Index.
Q. HOW WOULD YOU DESCRIBE THE FUND'S PERFORMANCE DURING THE PERIOD?
A. The fund started in August of 1995, and it was able to take advantage of
favorable market conditions that were occurring in the last part of 1995.
As we were getting started, we concentrated the fund's holdings in what was
available in municipals at the time, which happened to be in the
longer-maturity end of the market. In the first quarter of 1996, the
municipal market did well overall relative to alternative securities such
as Treasuries for three reasons. First, there was not a lot of supply out
there; second, there was fairly heavy demand for that limited supply.
Lastly, some of the fear that had been spooking the market for some time
with regard to flat tax proposals and their potential impact on municipal
securities dissolved, in part because no specific proposals emerged from
the Kemp Commission to serve as a rallying point behind a strong tax reform
movement.
Q. HOW DID THAT TRANSLATE TO THE NEW YORK MARKET SPECIFICALLY?
A. Well, New York had its own reform movement to contend with, as voters
went to the polls over a constitutional debt reform amendment. It did not
pass, unfortunately, because I think it would have been strongly positive
in forcing the state to address some of its structural budget issues. The
good news was that it really didn't have a negative impact on the state
municipal market, as other factors came into play. For example, the state
budget, which was due April 1, still has not come in. That means no new
debt issuance has been authorized, and the tightness in supply has kept the
state market fairly strong.
Q. HOW HAVE YOU STRUCTURED THE PORTFOLIO?
A. I have been a buyer of premium bonds for the portfolio, specifically
non-callable premiums. The non-callability of these bonds provides them
with upside potential because they aren't subject to the same reinvestment
risk as callables. That's the risk that the proceeds of a bond which has
been called by its issuer will have to be reinvested at lower rates. The
premium - or above-par - price provides the bond with what's known as de
minimis protection - which means that the bond is protected from
unfavorable tax treatment that can occur if the bond appreciates in price
beyond a certain limit. I am currently somewhat underweighted in New York
City bonds as well as state-appropriated bonds while being a bit
overweighted in New York State Local Government Assistance Corporation -
LGAC - bonds. LGAC is an authority that was set up several years ago and
has now reached the end of its financing program. The market has been slow
to recognize the value of the program, but now these bonds trade closely to
the highest grade bonds in the state.
Q. HAVE THERE BEEN ANY AREAS OF DISAPPOINTMENT FOR YOU?
A. Just one. I wish that I'd been able to invest more of the fund in New
York City bonds. I believe the city is firmly a BBB credit, due in part to
the structural safeguards in place, such as the City Control Board. The
city's economy seems to have turned the corner; although its growth is
still behind the country overall, it's closing the gap. And the safety nets
in place offer stability for the city's finances; the Control Board can
step in to make cuts if the city's deficit exceeds $100 million and the
Municipal Assistance Corporation is available to provide continuing bond
market access for the city. So we've been able to add some positions in the
short end of the yield curve, but at around 6.7% of the portfolio, our
exposure has only been about half as much as I would have liked.
Q. GETTING BACK TO THE STATE'S BUDGET, WILL NEW YORK BE ABLE TO BUILD ON
THE PROGRESS MADE LAST YEAR?
A. I certainly hope so. Last year, for the first time in 50 years, the
state managed to make year-over-year cuts in total expenditures. Governor
Pataki had a budget on the table earlier that would have worked hand in
hand with a federal budget deal to force key changes in how the state
handled welfare and Medicaid financing. However, when the federal budget
failed to deliver these hoped-for changes, the Governor introduced a
revised budget plan. The current Pataki budget looks reasonable, even
though it relies more on one-time cuts than the kinds of structural changes
I'd prefer to see. Still, the bottom line is that New York is making a
concerted effort to stay committed to tax and spending cuts, which should
benefit its business climate and credit quality.
Q. LOOKING AHEAD, WHAT DO YOU THINK THE NEXT SEVERAL MONTHS MAY HOLD FOR
THIS MARKET?
A. I like where both the market and the fund are right now. I see the
municipal market as fairly priced - it's neither too cheap nor too
expensive - and yields are in line with comparable Treasuries. So I don't
expect dramatic price or yield changes in either direction. One clear wild
card is whether we'll see renewed discussion of the flat tax as the
election season heats up. Within the state, we will continue to monitor the
budget process closely and invest accordingly. Meanwhile, I'll continue to
focus on non-callable and premium bonds as they're available within the
fund's overall structure.
FUND FACTS
GOAL: a high level of current
income free from federal
income tax and New York state
and city personal income tax by
investing primarily in municipal
securities
START DATE: August 21, 1995
SIZE: As of April 30, 1996,
more than $6 million
MANAGER: Norman Lind,
since August 1995; joined
Fidelity in 1986
(checkmark)
NORMAN LIND ON AMT BONDS:
"The fund recently expanded
its ability to add AMT
bonds - ones which are
subject to the Alternative
Minimum Tax - to the
portfolio. I haven't taken any
large AMT positions yet, but I
wanted to make sure that
shareholders who may be
sensitive to AMT holdings stay
informed. I've been somewhat
underweighted in the housing
sector, for instance, because
many of the housing bonds
in the state are AMT issues.
There are also AMT bonds
issued by TOGA - Terminal
One Group Authority - that
target the expansion of the
international terminal at
Kennedy Airport and are
backed by both Air France
and British Airways. For the
extra 15 or 20 basis points in
yield that I might pick up,
AMTs can add some solid
value to the fund."
(solid bullet) As of June 24, 1996, there
will be two changes to the fund's
investment policies. First,
Fidelity will use two additional
agencies - Duff & Phelps
Credit Rating Co. and Fitch
Investor Services, as well as
Moody's Investors Service and
Standard & Poor's, which the
fund already uses - to
determine the credit quality of
the fund's bonds. In addition, as
of June 24, the fund will reserve
the right to invest up to 5% in
non-investment grade
securities. The fund does not
intend to seek out the lower
quality bonds. Instead, this
change gives the fund
additional flexibility under
unusual circumstances.
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.

INVESTMENT CHANGES

TOP FIVE SECTORS AS OF APRIL 30, 1996
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE SECTORS
6 MONTHS AGO

General Obligation 44.7 19.2

Water & Sewer 14.6 18.7

Electric Revenue 12.2 13.4

Special Tax 12.1 6.7

Transportation 9.0 8.6

AVERAGE YEARS TO MATURITY AS OFAPRIL 30, 1996

Years 13.4 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 APRIL 30, 1996

Years 7.8 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 APRIL 30, 1996 AS OF OCTOBER 31, 1995
Aaa 42.4%
Aa, A 29.4%
Baa 19.1%
Ba, B 0.0%
Non-rated 0.0%
Short-term investments 9.1%
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: 42.4
Row: 1, Col: 2, Value: 29.4
Row: 1, Col: 3, Value: 19.1
Row: 1, Col: 4, Value: 0.0
Row: 1, Col: 5, Value: 0.0
Row: 1, Col: 6, Value: 9.1
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 APRIL 30, 1996 (UNAUDITED)

Showing Percentage of Total Value of Investments

MUNICIPAL BONDS - 90.9%
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
NEW YORK - 86.4%
Albany County 5.75% 6/1/09 (FGIC Insured) Aaa $ 200,000 $ 202,750
Brookhaven 5.375% 10/1/05 (FGIC Insured) Aaa 205,000 208,075
Broome County 7.40% 4/15/01 (FGIC Insured) Aaa 200,000 223,250
Erie County Series B, 5.60%
6/15/10 (FGIC Insured) Aaa 100,000 98,375
Monroe County Pub. Impt.:
6.50% 6/1/04 A1 100,000 109,625
5.25% 6/1/08 (FGIC Insured) Aaa 100,000 98,375
Nassau County Combined Swr. Dist. Rfdg.
Series F, 5.10% 7/1/05 (MBIA Insured) Aaa 230,000 228,563
New York City Gen. Oblig.:
Series A-1, 6.50% 8/1/16 Baa1 200,000 200,250
Series D, 6% 2/15/16 Baa1 275,000 260,219
New York City Metropolitan Trans. Auth. Svc.
Contract (Commuter Facs.) Series O,
5.75% 7/1/13 Baa1 400,000 382,500
New York City Muni. Assistance Corp.
6% 7/1/05 Aa 300,000 320,250
New York City Muni. Wtr. Fin. Auth. Wtr. &
Swr. Sys. Rev. Series A, 6% 6/15/25 A 275,000 270,531
New York State Dorm. Auth. Lease Rev. Rfdg.
Series A, 6% 7/1/03 (AMBAC Insured) Aaa 150,000 159,375
New York State Dorm. Auth. Rev.:
Rfdg. (State Univ. Edl. Facs.) Series A,
6.50% 5/15/05 Baa1 200,000 210,500
(City Univ. Sys. Consolidated) Series C,
6% 7/1/03 (AMBAC Insured) Aaa 200,000 212,750
(FIT Student Hsg. Corp.) 5.75% 7/1/05
(AMBAC Insured) Aaa 125,000 129,844
New York State Energy Research & Dev. Auth.
Facs. Rev. Rfdg. (Consolidated Edison Co.)
Series A, 6.10% 8/15/20 A1 100,000 99,750
New York State Envir. Facs. Corp. Poll. Cont. Rev.
(State Wtr. Revolving Fund) :
Series B, 5.90% 11/15/14 Aaa 150,000 151,125
Series D, 6.40% 11/15/06 Aaa 100,000 110,750
New York State Local Gov't Assistance Corp.:
Series A, 6% 4/1/24 A 255,000 250,538
Series B, 6% 4/1/18 A 225,000 224,156
New York State Mtg. Agcy. Rev. (Homeowner
Mtg.) Series 49, 5.85% 10/1/17 Aa 100,000 98,125
New York State Pwr. Auth. Rev. & Gen. Prtn.
Series CC, 5.125% 1/1/11 Aa 200,000 190,250
New York State Tollway Auth. Hwy. & Bridge
Trust Fund, Series B, 6% 4/1/03
(AMBAC Insured) Aaa 210,000 223,650
New York State Urban Dev. Corp. Rev.
6.25% 4/1/05 (MBIA Insured) Aaa 150,000 161,438
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
NEW YORK - CONTINUED
Shelter Island Unified Free School Dist. #1
6.20% 12/15/08 (AMBAC Insured) Aaa $ 160,000 $ 168,400
Suffolk County Gen. Oblig. 5% 10/15/03
(AMBAC Insured) Aaa 180,000 181,125
Suffolk County Wtr. Auth. 6% 6/1/17
(MBIA Insured) Aaa 100,000 101,875
Syracuse Gen. Oblig.
7.70% 12/1/99 (MBIA Insured) Aaa 120,000 131,400
Triborough Bridge & Tunnel Auth. Rev. Rfdg.
(Gen. Purp.) Series Y, 6% 1/1/12 Aa 265,000 274,605
5,682,419
NEW YORK & NEW JERSEY - 1.4%
New York & New Jersey Port Auth. Consolidated
85th Series, 5.375% 3/1/28 A1 100,000 92,750
PUERTO RICO - 3.1%
Puerto Rico Commonwealth Hwy. & Trans. Auth.
Hwy. Rev. 5.50% 7/1/36 Baa1 100,000 91,125
Puerto Rico Elec. Pwr. Auth. Pwr. Rev. Rfdg.
Series S, 7% 7/1/07 Baa1 100,000 113,000
204,125
TOTAL MUNICIPAL BONDS
(Cost $6,010,538) 5,979,294
MUNICIPAL NOTES (A) - 9.1.%
NEW YORK - 9.1%
New York City Muni. Wtr. Fin. Auth. Wtr. & Swr.
Rev. Series G, 3.40% (FGIC Insured), VRDN VMIG 1 100,000 100,000
New York State Energy Research & Dev. Auth.
Poll. Cont. Rev., VRDN:
(Central Hudson Gas & Elec.) Series 1985 B,
2.85%, LOC Bankers Trust P-1 100,000 100,000
(Niagara Mohawk Pwr. Corp.):
Series 1985 B, 3.65%, LOC Toronto-Dominion
Bank P-1 200,000 200,000
Series 1985 C, 3.65%, LOC Mitsubishi Trust &
Banking P-1 200,000 200,000
TOTAL MUNICIPAL NOTES
(Cost $600,000) 600,000
TOTAL INVESTMENTS - 100%
(Cost $6,610,538) $ 6,579,294
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 credit ratings are used in the absence of a rating by
Moody's Investors Service, Inc.
INCOME TAX INFORMATION
At April 30, 1996, the aggregate cost of investment securities for income
tax purposes was $6,610,538. Net unrealized depreciation aggregated
$31,244, of which $45,399 related to appreciated investment securities and
$76,643 related to depreciated investment securities.
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 71.8% AAA, AA, A 73.4%
Baa 19.1% BBB 16.0%
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 0.0%.
The distribution of municipal securities by revenue source, as a percentage
of total value of investment in securities, is as follows:
General Obligation 44.7%
Water & Sewer 14.6
Electric Revenue 12.2
Special Tax 12.1
Transportation 9.0
Others (individually less than 5%) 7.4
TOTAL 100.0%
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
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APRIL 30, 1996 (UNAUDITED)

ASSETS

Investment in securities, at value (cost $6,610,538) - $ 6,579,294
See accompanying schedule

Receivable for fund shares sold 27,181

Interest receivable 102,309

Prepaid expenses 32,758

Receivable from investment adviser for expense reductions 20,637

TOTAL ASSETS 6,762,179

LIABILITIES

Payable to custodian bank $ 13,047

Payable for investments purchased 323,589

Distributions payable 6,746

Accrued management fee 2,034

Other payables and accrued expenses 17,138

TOTAL LIABILITIES 362,554

NET ASSETS $ 6,399,625

Net Assets consist of:

Paid in capital $ 6,405,135

Accumulated undistributed net realized gain (loss) 25,734
on investments

Net unrealized appreciation (depreciation) on investments (31,244)

NET ASSETS $ 6,399,625

CLASS A: $10.26
NET ASSET VALUE, and redemption price per share
($3,676,080 (divided by) 358,362 shares)

Maximum offering price per share (100/96.50 of $10.26) $10.63

CLASS B: $10.25
NET ASSET VALUE, offering price and redemption price per
share ($2,035,171 (divided by) 198,582 shares) A

INSTITUTIONAL CLASS: $10.27
NET ASSET VALUE, offering price and redemption price per

share ($688,374 (divided by) 67,058 shares)

</TABLE>

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

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SIX MONTHS ENDED APRIL 30, 1996 (UNAUDITED)

INTEREST INCOME $ 142,341

EXPENSES

Management fee $ 10,941

Transfer agent fees 2,831
Class A

Class B 1,255

Institutional Class 444

Distribution fee 3,849
Class A

Class B 8,054

Accounting fees and expenses 27,598

Non-interested trustees' compensation 10

Custodian fees and expenses 247

Registration fees 5,495
Class A

Class B 6,886

Institutional Class 3,048

Audit 11,360

Miscellaneous 29

Total expenses before reductions 82,047

Expense reductions (51,974) 30,073

NET INTEREST INCOME 112,268

REALIZED AND UNREALIZED GAIN (LOSS) 25,734
Net realized gain (loss) on investment securities

Change in net unrealized appreciation (depreciation) on (132,032)
investment securities

NET GAIN (LOSS) (106,298)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ 5,970
FROM OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

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SIX MONTHS AUGUST 21, 1995
ENDED APRIL 30, (COMMENCEMENT
1996 OF
(UNAUDITED) OPERATIONS) TO
OCTOBER 31, 1995

INCREASE (DECREASE) IN NET ASSETS

Operations $ 112,268 $ 22,944
Net interest income

Net realized gain (loss) 25,734 -

Change in net unrealized appreciation (depreciation) (132,032) 100,788

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 5,970 123,732
FROM OPERATIONS

Distributions to shareholders
From Net interest income

Class A (65,555) (10,525)

Class B (31,184) (6,231)

Institutional Class (15,529) (6,188)

TOTAL DISTRIBUTIONS (112,268) (22,944)

Share transactions - net increase (decrease) 2,630,188 3,774,947

TOTAL INCREASE (DECREASE) IN NET ASSETS 2,523,890 3,875,735

NET ASSETS

Beginning of period 3,875,735 -

End of period $ 6,399,625 $ 3,875,735

</TABLE>

FINANCIAL HIGHLIGHTS - CLASS A
SIX MONTHS AUGUST 21, 1995
ENDED (COMMENCEMENT
APRIL 30, 1996 OF
(UNAUDITED) OPERATIONS) TO
OCTOBER 31,
1995

SELECTED PER-SHARE DATA

Net asset value, beginning of period $ 10.400 $ 10.000

Income from Investment Operations

Net interest income .219 .084

Net realized and unrealized gain (loss) (.140) .400

Total from investment operations .079 0.484

Less Distributions

From net interest income (.219) (.084)

Net asset value, end of period $ 10.260 $ 10.400

TOTAL RETURNB 0.73% 4.85%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 3,676 $ 2,033

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

Ratio of expenses to average net assets after .95% A, 1.00% A
expense reductions C

Ratio of net interest income to average net assets 4.28% A 4.16% A

Portfolio turnover 22% A 0%

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 RETURNS WOULD HAVE BEEN
LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN.
C FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES
WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES (SEE NOTE 5 OF
NOTES TO FINANCIAL STATEMENTS).
D FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD HAVE
BEEN HIGHER (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS).
FINANCIAL HIGHLIGHTS - CLASS B
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SIX MONTHS AUGUST 21, 1995
ENDED APRIL 30, (COMMENCEMENT
1996 OF
(UNAUDITED) OPERATIONS) TO
OCTOBER 31,
1995

SELECTED PER-SHARE DATA

Net asset value, beginning of period $ 10.390 $ 10.000

Income from Investment Operations

Net interest income .184 .074

Net realized and unrealized gain (loss) (.140) .390

Total from investment operations .044 .464

Less Distributions

From net interest income (.184) (.074)

Net asset value, end of period $ 10.250 $ 10.390

TOTAL RETURN B 0.39% 4.65%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 2,035 $ 1,161

Ratio of expenses to average net assets 1.68% A, 1.75% A,
D D

Ratio of expenses to average net assets after expense 1.61% A, 1.75% A
reductions C

Ratio of net interest income to average net assets 3.61% A 3.52% A

Portfolio turnover 22% A 0%

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 RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS
SHOWN.
C FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES
WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES (SEE NOTE 5 OF
NOTES TO FINANCIAL STATEMENTS).
D FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD HAVE
BEEN HIGHER (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS).
FINANCIAL HIGHLIGHTS - INSTITUTIONAL CLASS
</TABLE>
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SIX MONTHS AUGUST 21, 1995
ENDED (COMMENCEMENT
APRIL 30, 1996 OF
(UNAUDITED) OPERATIONS) TO
OCTOBER 31,
1995

SELECTED PER-SHARE DATA

Net asset value, beginning of period $ 10.400 $ 10.000

Income from Investment Operations

Net interest income .231 .095

Net realized and unrealized gain (loss) (.130) .400

Total from investment operations .101 .495

Less Distributions

From net interest income (.231) (.095)

Net asset value, end of period $ 10.270 $ 10.400

TOTAL RETURNB 0.94% 4.96%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 688 $ 683

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

Ratio of expenses to average net assets after expense .64% A, .75% A,
reductions C C

Ratio of net interest income to average net assets 4.50% A 4.75% A

Portfolio turnover 22% A 0%

</TABLE>

A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. THE
TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
C FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES
WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES (SEE NOTE 5 OF
NOTES TO FINANCIAL STATEMENTS).
D FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD HAVE
BEEN HIGHER (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS)
NOTES TO FINANCIAL STATEMENTS
For the period ended April 30, 1996 (Unaudited)

1. SIGNIFICANT ACCOUNTING POLICIES.
On December 14, 1995, the Board of Trustees approved a change in the fund's
name from Fidelity Advisor New York Tax-Free Fund to Fidelity Advisor New
York Municipal Income 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. 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 each class and shares of each class for
distribution under federal and state securities law. These expenses 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.
1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
DISTRIBUTIONS TO SHAREHOLDERS - CONTINUED
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 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 $3,447,110 and $552,228, 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 .1100% 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 .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
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES -
CONTINUED
DISTRIBUTION AND SERVICE PLAN - CONTINUED
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. For the period November 1, 1995, to December
31, 1995, this fee was 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. Effective January 1, 1996, the Board of Trustees approved a
revised Class B distribution plan, under which the fee is based on an
annual rate of .90% (of which .65% represents a distribution fee and .25%
represents a shareholder service fee) of the average net assets of the
Class B shares. For the period, the fund paid FDC $3,849 and $8,053 under
the Class A Plan and Class B Plan, respectively, of which $3,849 and $2,169
were paid to securities dealers, banks and other financial institutions for
the distribution of Class A and Class B shares, respectively, 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. The Plans also authorize payments to third
parties that assist in the sale of the fund's shares or render shareholder
support services.

SALES LOAD. For the period November 1, 1995 through December 31, 1995, FDC
received a front-end sales charge of up to 4.75% for selling Class A shares
of the fund. Effective January 1, 1996, the Board of Trustees approved a
revised Class A sales charge. Under the revised arrangement, FDC receives a
front-end sales charge of up to 3.50% for selling Class A shares of the
fund. For the period, FDC received sales charges of $29,590 on sales of
Class A shares of the fund, of which $27,425 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 $1,029 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 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
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
TRANSFER AGENT FEES AND ACCOUNTING FEES - CONTINUED
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 on the level of average net assets for the month plus out-of-pocket
expenses. For the period, FSC received accounting fees amounting to
$27,598.
For the period, the transfer agent fees were equivalent to an annualized
rate of .02%, .02%, and .02% of average net assets for Class A Class B, and
Institutional Class, respectively.
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%, 1.65%, and 0.75% of average net
assets for Class A, Class B, and Institutional Class, respectively. For the
period, the reimbursement reduced expenses by $22,305, $16,776, and $6,997
for Class A, Class B, and Institutional Class, respectively.
In addition, the fund has entered into arrangements with its custodian and
transfer agent whereby interest earned on uninvested cash balances was used
to offset a portion of the class' expenses. During the period, Class A,
Class B, and Institutional Class expenses were reduced by $824, $582 and
$397, respectively, under these arrangements.
6. BENEFICIAL INTEREST.
At the end of the period, an affiliate of FMR was record owner of
approximately 20.0%, 53.2% and 100% of the total outstanding shares of
Class A, Class B and Institutional Class, respectively.
7. SHARE TRANSACTIONS.
Share transactions for each class of shares were as follows:

SHARES DOLLARS
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1996 OCTOBER 31, APRIL 30, 1996 OCTOBER 31,
(UNAUDITED) 1995 A (UNAUDITED) 1995 A
CLASS A
Shares Sold 170,869 194,544 $ 1,788,121 $ 1,979,912

Reinvestment of dividends 4,782 904 50,132 9,361
from net interest income

Shares Redeemed (12,737) - (132,769) -

Net increase (decrease) 162,914 195,448 $ 1,705,484 $ 1,989,273

CLASS B
Shares Sold 88,229 111,132 $ 923,083 $ 1,123,890

Reinvestment of dividends 2,079 537 21,805 5,564
from net interest income

Shares Redeemed (3,395) - (35,471) -

Net increase (decrease) 86,913 111,669 $ 909,417 $ 1,129,454

INSTITUTIONAL CLASS
Shares Sold - 65,001 $ - $ 650,010

Reinvestment of dividends 1,455 602 15,287 6,210
from net interest income

Shares Redeemed - - - -

Net increase (decrease) 1,455 65,603 $ 15,287 $ 656,220

A FOR THE PERIOD AUGUST 21, 1995 (COMMENCEMENT OF SALE OF SHARES) TO
OCTOBER 31, 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 AGENTS
UMB Bank, n.a.
Kansas City, MO
State Street Bank and Trust Company
Boston, MA - Class A
Fidelity Investments Institutional Operations Company
Boston, MA - Class B
CUSTODIAN
UMB Bank, n.a.
Kansas City, MO
* INDEPENDENT TRUSTEES
GROWTH FUNDS
Fidelity Advisor Overseas Fund
Fidelity Advisor Mid Cap Fund
Fidelity Advisor Equity Growth Fund
Fidelity Advisor Global Resources Fund
Fidelity Advisor Growth
Opportunities Fund
Fidelity Advisor Strategic
Opportunities Fund
Fidelity Advisor Large Cap Fund
GROWTH AND INCOME FUNDS
Fidelity Advisor Equity Income Fund
Fidelity Advisor Income & Growth Fund
TAXABLE 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 Intermediate Bond Fund
Fidelity Advisor Short Fixed-Income Fund
MUNICIPAL FUNDS
Fidelity Advisor High Income
Municipal Fund
Fidelity Advisor Intermediate Municipal Income Fund
Fidelity Advisor Short-Intermediate Municipal Income Fund
STATE MUNICIPAL FUNDS
Fidelity Advisor California Municipal Income Fund
Fidelity Advisor New York Municipal Income 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 MUNICIPAL INCOME
FUND - INSTITUTIONAL CLASS
(FORMERLY ADVISOR NEW YORK TAX-FREE FUND)
SEMIANNUAL REPORT
APRIL 30, 1996
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 10 A summary of major shifts in the
fund's investments over the past six
months.

INVESTMENTS 11 A complete list of the fund's
investments with their market
values.

FINANCIAL STATEMENTS 14 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.

NOTES 20 Notes to the financial statements.

DEAR SHAREHOLDER:
Although stocks have managed to post solid returns through the first four
months of 1996, signs of strength in the economy have led to inflation
fears, causing some uncertainty in bond markets so far this year. In 1995,
both stock and bond markets posted strong results, while the year before,
stocks posted below-average returns and bonds had one of the worst years in
history.
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 MUNICIPAL INCOME FUND - INSTITUTIONAL CLASS
PERFORMANCE: THE BOTTOM LINE

Advisor New York Municipal Income - 0.94% 5.95%
Institutional Class

Lehman Brothers New York 4 Plus Year 0.96% n/a
Municipal Bond Index

New York Municipal Debt Funds Average 0.47% 5.28%

CUMULATIVE TOTAL RETURNS show Institutional Class' performance in
percentage terms over a set period - in this case, six months, or since the
fund started 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. You can compare Institutional Class' returns to
the Lehman Brothers New York 4 Plus Year Municipal Bond Index, which
includes New York Investment-grade municipal bonds with maturities of at
least four years. To measure how Institutional Class' performance stacked
up against its peers, you can compare it to the New York municipal debt
funds average, which reflects the performance of 100 New York municipal
debt funds with similar objectives tracked by Lipper Analytical Services
over the past six months. Both benchmarks include reinvested dividends and
capital gains, if any.
AVERAGE ANNUAL TOTAL RETURNS
AVERAGE ANNUAL RETURNS take Institutional Class shares' actual (or
cumulative) return and show you what would have happened if Institutional
Class had performed at a constant rate each year. Since the fund is less
than a year old, we will report these numbers in the next report.
$10,000 OVER LIFE OF FUND

IMATRL PRASUN SHR__CHT 19960430 19960522 102229 R00000000000092
Fidelity Advisor NY LB Municipal Bond
00661 LB015
1995/08/31 10000.00 10000.00
1995/09/30 10039.75 10063.30
1995/10/31 10216.57 10209.62
1995/11/30 10410.16 10379.00
1995/12/31 10519.29 10478.74
1996/01/31 10608.73 10557.85
1996/02/29 10517.31 10486.59
1996/03/31 10356.76 10352.57
1996/04/30 10312.58 10323.27
IMATRL PRASUN SHR__CHT 19960430 19960522 102229 R00000000000092

$10,000 OVER LIFE OF FUND: Let's say you invested $10,000 in Advisor New
York Municipal Income Fund - Institutional Class on August 31, 1995,
shortly after the fund started. As the chart shows, by April 30, 1996, the
value of your investment would have grown to $10,313 - a 3.13% increase on
your initial investment. For comparison, look at how the Lehman Brothers
Municipal Bond Index, which reflects the performance of the
investment-grade municipal bond market, did over the same period. With
dividends reinvested, the same $10,000 investment would have grown to
$10,323 - a 3.23% increase.
UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. Bond prices, for
example, generally move in
the opposite direction of
interest rates. In turn, the
share price, return, and yield
of a fund that invests in
bonds will vary. That means if
you sell your shares during a
market downturn, you might
lose money. But if you can
ride out the market's ups and
downs, you may have a gain.
(checkmark)
TOTAL RETURN COMPONENTS
SIX MONTHS AUGUST 21, 1995
ENDED (COMMENCEMENT
APRIL 30, OF
1996 OPERATIONS) TO
OCTOBER 31,
1995

Dividend return 2.19% 0.96%

Capital appreciation return -1.25% 4.00%

Total return 0.94% 4.96%

<TABLE>
<CAPTION>
<S> <C> <C> <C>
PERIODS ENDED APRIL 30, 1996 PAST PAST 6 LIFE OF
MONTH MONTHS CLASS

Dividends per share 3.58(cents) 23.09(cents) 32.60(cents)

Annualized dividend rate 4.25% 4.41% 4.49%

30-day annualized yield 4.58% - -

30-day annualized tax-equivalent yield 8.09% - -

</TABLE>

DIVIDENDS per share show the income paid by the class for a set period. If
you annualize this number, based on an average share price of $10.27 over
the past month, $10.49 over the past six months, and $10.43 over the life
of class, you can compare the class' income over these three periods. The
30-day annualized YIELD is a standard formula for all bond funds based on
the yields of the bonds in the fund, averaged over the past 30 days. This
figure shows you the yield characteristics of the fund's investments at the
end of the period. It also helps you compare funds from different companies
on an equal basis. The 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 43.41% combined effective 1996 federal and state and New York City
tax bracket but does not reflect the payment of the federal alternative
minimum tax, if applicable. If Fidelity had not reimbursed certain
Institutional Class expenses during the period shown, expenses would have
exceeded the income of the class and both the yield and tax-equivalent
yield would have been -0.74%.
FUND TALK: THE MANAGER'S OVERVIEW

An interview with Norman Lind, Portfolio Manager of Fidelity Advisor New
York Municipal Income Fund
Q. HOW DID THE FUND PERFORM, NORM?
A. For the six months ended April 30, 1996, the fund's Institutional Class
shares had a total return of 0.94%. That compares to 0.47% for the New York
State Municipal Debt funds average as tracked by Lipper Analytical Services
over the period, and 0.96% for the Lehman Brothers New York 4 Plus Year
Municipal Bond Index.
Q. HOW WOULD YOU DESCRIBE THE FUND'S PERFORMANCE DURING THE PERIOD?
A. The fund started in August of 1995, and it was able to take advantage of
favorable market conditions that were occurring in the last part of 1995.
As we were getting started, we concentrated the fund's holdings in what was
available in municipals at the time, which happened to be in the
longer-maturity end of the market. In the first quarter of 1996, the
municipal market did well overall relative to alternative securities such
as Treasuries for three reasons. First, there was not a lot of supply out
there; second, there was fairly heavy demand for that limited supply.
Lastly, some of the fear that had been spooking the market for some time
with regard to flat tax proposals and their potential impact on municipal
securities dissolved, in part because no specific proposals emerged from
the Kemp Commission to serve as a rallying point behind a strong tax reform
movement.
Q. HOW DID THAT TRANSLATE TO THE NEW YORK MARKET SPECIFICALLY?
A. Well, New York had its own reform movement to contend with, as voters
went to the polls over a constitutional debt reform amendment. It did not
pass, unfortunately, because I think it would have been strongly positive
in forcing the state to address some of its structural budget issues. The
good news was that it really didn't have a negative impact on the state
municipal market, as other factors came into play. For example, the state
budget, which was due April 1, still has not come in. That means no new
debt issuance has been authorized, and the tightness in supply has kept the
state market fairly strong.
Q. HOW HAVE YOU STRUCTURED THE PORTFOLIO?
A. I have been a buyer of premium bonds for the portfolio, specifically
non-callable premiums. The non-callability of these bonds provides them
with upside potential because they aren't subject to the same reinvestment
risk as callables. That's the risk that the proceeds of a bond which has
been called by its issuer will
have to be reinvested at lower rates. The premium - or above-par - price
provides the bond with what's known as de minimis protection - which means
that the bond is protected from unfavorable tax treatment that can occur if
the bond appreciates in price beyond a certain limit. I am currently
somewhat underweighted in New York City bonds as well as state-appropriated
bonds while being a bit overweighted in New York State Local Government
Assistance Corporation - LGAC - bonds. LGAC is an authority that was set up
several years ago and has now reached the end of its financing program. The
market has been slow to recognize the value of the program, but now these
bonds trade closely to the highest grade bonds in the state.
Q. HAVE THERE BEEN ANY AREAS OF DISAPPOINTMENT FOR YOU?
A. Just one. I wish that I'd been able to invest more of the fund in New
York City bonds. I believe the city is firmly a BBB credit, due in part to
the structural safeguards in place, such as the City Control Board. The
city's economy seems to have turned the corner; although its growth is
still behind the country overall, it's closing the gap. And the safety nets
in place offer stability for the city's finances; the Control Board can
step in to make cuts if the city's deficit exceeds $100 million and the
Municipal Assistance Corporation is available to provide continuing bond
market access for the city. So we've been able to add some positions in the
short end of the yield curve, but at around 6.7% of the portfolio, our
exposure has only been about half as much as I would have liked.
Q. GETTING BACK TO THE STATE'S BUDGET, WILL NEW YORK BE ABLE TO BUILD ON
THE PROGRESS MADE LAST YEAR?
A. I certainly hope so. Last year, for the first time in 50 years, the
state managed to make year-over-year cuts in total expenditures. Governor
Pataki had a budget on the table earlier that would have worked hand in
hand with a federal budget deal to force key changes in how the state
handled welfare and Medicaid financing. However, when the federal budget
failed to deliver these hoped-for changes, the Governor introduced a
revised budget plan. The current Pataki budget looks reasonable, even
though it relies more on one-time cuts than the kinds of structural changes
I'd prefer to see. Still, the bottom line is that New York is making a
concerted effort to stay committed to tax and spending cuts, which should
benefit its business climate and credit quality.
Q. LOOKING AHEAD, WHAT DO YOU THINK THE NEXT SEVERAL MONTHS MAY HOLD FOR
THIS MARKET?
A. I like where both the market and the fund are right now. I see the
municipal market as fairly priced - it's neither too cheap nor too
expensive - and yields are in line with comparable Treasuries. So I don't
expect dramatic price or yield changes in either direction. One clear wild
card is whether we'll see renewed discussion of the flat tax as the
election season heats up. Within the state, we will continue to monitor the
budget process closely and invest accordingly. Meanwhile, I'll continue to
focus on non-callable and premium bonds as they're available within the
fund's overall structure.
FUND FACTS
GOAL: a high level of current
income free from federal
income tax and New York state
and city personal income tax by
investing primarily in municipal
securities
START DATE: August 21, 1995
SIZE: As of April 30, 1996,
more than $6 million
MANAGER: Norman Lind,
since August 1995; joined
Fidelity in 1986
(checkmark)
NORMAN LIND ON AMT BONDS:
"The fund recently expanded
its ability to add AMT
bonds - ones which are
subject to the Alternative
Minimum Tax - to the
portfolio. I haven't taken any
large AMT positions yet, but I
wanted to make sure that
shareholders who may be
sensitive to AMT holdings stay
informed. I've been somewhat
underweighted in the housing
sector, for instance, because
many of the housing bonds
in the state are AMT issues.
There are also AMT bonds
issued by TOGA - Terminal
One Group Authority - that
target the expansion of the
international terminal at
Kennedy Airport and are
backed by both Air France
and British Airways. For the
extra 15 or 20 basis points in
yield that I might pick up,
AMTs can add some solid
value to the fund."
(solid bullet) As of June 24, 1996, there
will be two changes to the fund's
investment policies. First,
Fidelity will use two additional
agencies - Duff & Phelps
Credit Rating Co. and Fitch
Investor Services, as well as
Moody's Investors Service and
Standard & Poor's, which the
fund already uses - to
determine the credit quality of
the fund's bonds. In addition, as
of June 24, the fund will reserve
the right to invest up to 5% in
non-investment grade
securities. The fund does not
intend to seek out the lower
quality bonds. Instead, this
change gives the fund
additional flexibility under
unusual circumstances.
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.

INVESTMENT CHANGES

TOP FIVE SECTORS AS OF APRIL 30, 1996
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE SECTORS
6 MONTHS AGO

General Obligation 44.7 19.2

Water & Sewer 14.6 18.7

Electric Revenue 12.2 13.4

Special Tax 12.1 6.7

Transportation 9.0 8.6

AVERAGE YEARS TO MATURITY AS OFAPRIL 30, 1996

Years 13.4 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 APRIL 30, 1996

Years 7.8 8.4

Showing Percentage of Total Value of Investments

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
APRIL 30, 1996 (UNAUDITED)

ASSETS

Investment in securities, at value (cost $6,610,538) - $ 6,579,294
See accompanying schedule

Receivable for fund shares sold 27,181

Interest receivable 102,309

Prepaid expenses 32,758

Receivable from investment adviser for expense reductions 20,637

TOTAL ASSETS 6,762,179

LIABILITIES

Payable to custodian bank $ 13,047

Payable for investments purchased 323,589

Distributions payable 6,746

Accrued management fee 2,034

Other payables and accrued expenses 17,138

TOTAL LIABILITIES 362,554

NET ASSETS $ 6,399,625

Net Assets consist of:

Paid in capital $ 6,405,135

Accumulated undistributed net realized gain (loss) 25,734
on investments

Net unrealized appreciation (depreciation) on investments (31,244)

NET ASSETS $ 6,399,625

CLASS A: $10.26
NET ASSET VALUE, and redemption price per share
($3,676,080 (divided by) 358,362 shares)

Maximum offering price per share (100/96.50 of $10.26) $10.63

CLASS B: $10.25
NET ASSET VALUE, offering price and redemption price per
share ($2,035,171 (divided by) 198,582 shares) A

INSTITUTIONAL CLASS: $10.27
NET ASSET VALUE, offering price and redemption price per

share ($688,374 (divided by) 67,058 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>
SIX MONTHS ENDED APRIL 30, 1996 (UNAUDITED)

INTEREST INCOME $ 142,341

EXPENSES

Management fee $ 10,941

Transfer agent fees 2,831
Class A

Class B 1,255

Institutional Class 444

Distribution fee 3,849
Class A

Class B 8,054

Accounting fees and expenses 27,598

Non-interested trustees' compensation 10

Custodian fees and expenses 247

Registration fees 5,495
Class A

Class B 6,886

Institutional Class 3,048

Audit 11,360

Miscellaneous 29

Total expenses before reductions 82,047

Expense reductions (51,974) 30,073

NET INTEREST INCOME 112,268

REALIZED AND UNREALIZED GAIN (LOSS) 25,734
Net realized gain (loss) on investment securities

Change in net unrealized appreciation (depreciation) on (132,032)
investment securities

NET GAIN (LOSS) (106,298)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ 5,970
FROM OPERATIONS

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS AUGUST 21, 1995
ENDED APRIL 30, (COMMENCEMENT
1996 OF
(UNAUDITED) OPERATIONS) TO
OCTOBER 31, 1995

INCREASE (DECREASE) IN NET ASSETS

Operations $ 112,268 $ 22,944
Net interest income

Net realized gain (loss) 25,734 -

Change in net unrealized appreciation (depreciation) (132,032) 100,788

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 5,970 123,732
FROM OPERATIONS

Distributions to shareholders
From Net interest income

Class A (65,555) (10,525)

Class B (31,184) (6,231)

Institutional Class (15,529) (6,188)

TOTAL DISTRIBUTIONS (112,268) (22,944)

Share transactions - net increase (decrease) 2,630,188 3,774,947

TOTAL INCREASE (DECREASE) IN NET ASSETS 2,523,890 3,875,735

NET ASSETS

Beginning of period 3,875,735 -

End of period $ 6,399,625 $ 3,875,735

</TABLE>

FINANCIAL HIGHLIGHTS - CLASS A
SIX MONTHS AUGUST 21, 1995
ENDED (COMMENCEMENT
APRIL 30, 1996 OF
(UNAUDITED) OPERATIONS) TO
OCTOBER 31,
1995

SELECTED PER-SHARE DATA

Net asset value, beginning of period $ 10.400 $ 10.000

Income from Investment Operations

Net interest income .219 .084

Net realized and unrealized gain (loss) (.140) .400

Total from investment operations .079 0.484

Less Distributions

From net interest income (.219) (.084)

Net asset value, end of period $ 10.260 $ 10.400

TOTAL RETURNB 0.73% 4.85%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 3,676 $ 2,033

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

Ratio of expenses to average net assets after .95% A, 1.00% A
expense reductions C

Ratio of net interest income to average net assets 4.28% A 4.16% A

Portfolio turnover 22% A 0%

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 RETURNS WOULD HAVE BEEN
LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN.
C FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES
WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES (SEE NOTE 5 OF
NOTES TO FINANCIAL STATEMENTS).
D FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD HAVE
BEEN HIGHER (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS).
FINANCIAL HIGHLIGHTS - CLASS B
SIX MONTHS AUGUST 21, 1995
ENDED APRIL 30, (COMMENCEMENT
1996 OF
(UNAUDITED) OPERATIONS) TO
OCTOBER 31,
1995
<TABLE>
<CAPTION>
<S> <C> <C>
SELECTED PER-SHARE DATA

Net asset value, beginning of period $ 10.390 $ 10.000

Income from Investment Operations

Net interest income .184 .074

Net realized and unrealized gain (loss) (.140) .390

Total from investment operations .044 .464

Less Distributions

From net interest income (.184) (.074)

Net asset value, end of period $ 10.250 $ 10.390

TOTAL RETURN B 0.39% 4.65%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 2,035 $ 1,161

Ratio of expenses to average net assets 1.68% A, 1.75% A,
D D

Ratio of expenses to average net assets after expense 1.61% A, 1.75% A
reductions C

Ratio of net interest income to average net assets 3.61% A 3.52% A

Portfolio turnover 22% A 0%

SELECTED PER-SHARE DATA

Net asset value, beginning of period $ 10.400 $ 10.000

Income from Investment Operations

Net interest income .231 .095

Net realized and unrealized gain (loss) (.130) .400

Total from investment operations .101 .495

Less Distributions

From net interest income (.231) (.095)

Net asset value, end of period $ 10.270 $ 10.400

TOTAL RETURNB 0.94% 4.96%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000 omitted) $ 688 $ 683

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

Ratio of expenses to average net assets after expense .64% A, .75% A,
reductions C C

Ratio of net interest income to average net assets 4.50% A 4.75% A

Portfolio turnover 22% A 0%

</TABLE>

Reinvestment of dividends 4,782 904 50,132 9,361
from net interest income

Shares Redeemed (12,737) - (132,769) -

Net increase (decrease) 162,914 195,448 $ 1,705,484 $ 1,989,273

CLASS B
Shares Sold 88,229 111,132 $ 923,083 $ 1,123,890

Reinvestment of dividends 2,079 537 21,805 5,564
from net interest income

Shares Redeemed (3,395) - (35,471) -

Net increase (decrease) 86,913 111,669 $ 909,417 $ 1,129,454

INSTITUTIONAL CLASS
Shares Sold - 65,001 $ - $ 650,010

Reinvestment of dividends 1,455 602 15,287 6,210
from net interest income

Shares Redeemed - - - -

Net increase (decrease) 1,455 65,603 $ 15,287 $ 656,220

A FOR THE PERIOD AUGUST 21, 1995 (COMMENCEMENT OF SALE OF SHARES) TO
OCTOBER 31, 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 AGENTS
UMB Bank, n.a.
Kansas City, MO
Fidelity Investments Institutional Operations Company
Boston, MA
CUSTODIAN
UMB Bank, n.a.
Kansas City, MO
* INDEPENDENT TRUSTEES
GROWTH FUNDS
Fidelity Advisor Overseas Fund
Fidelity Advisor Mid Cap Fund
Fidelity Advisor Equity Growth Fund
Fidelity Advisor Global Resources Fund
Fidelity Advisor Growth
Opportunities Fund
Fidelity Advisor Strategic
Opportunities Fund
Fidelity Advisor Large Cap Fund
GROWTH AND INCOME FUNDS
Fidelity Advisor Equity Income Fund
Fidelity Advisor Income & Growth Fund
TAXABLE 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 Intermediate Bond Fund
Fidelity Advisor Short Fixed-Income Fund
MUNICIPAL FUNDS
Fidelity Advisor High Income
Municipal Fund
Fidelity Advisor Intermediate Municipal Income Fund
Fidelity Advisor Short-Intermediate Municipal Income Fund
STATE MUNICIPAL FUNDS
Fidelity Advisor California Municipal Income Fund
Fidelity Advisor New York Municipal Income Fund
MONEY MARKET FUNDS
Daily Money Fund: Money Market Portfolio
Daily Money Fund: U.S. Treasury Portfolio
Daily Tax-Exempt Money Fund
(REGISTERED TRADEMARK)