SUPPLEMENT TO THE FIDELITY ADVISOR FUNDS
CLASS A, CLASS T, AND CLASS B
FEBRUARY 28,1997 PROSPECTUS
The following information replaces similar information found on the cover
page.
High Yield and Strategic Income may each invest without limitation in
lower-quality debt securities, sometimes called "junk bonds." Investors
should consider that these securities carry greater risks, such as the risk
of default, than other debt securities. Refer to "Investment Principles and
Risks" on page 40 for further information.
The following information replaces similar information found in "Who May
Want to Invest" beginning on page 3.
High Income Municipal, Municipal Bond, Intermediate Municipal Income, and
Short-Intermediate Municipal Income are designed for investors in higher
tax brackets who seek high current income that is free from federal income
tax. Municipal Bond, Intermediate Municipal Income, and Short-Intermediate
Municipal Income also invest consistent with consideration of capital
preservation. High Income Municipal may invest in lower-quality municipal
securities which invoke greater risks than the investment-grade securities.
The following information replaces similar information found in "Who May
Want to Invest" on page 3.
Each fund is composed of multiple classes of shares. All classes of a
fund have a common investment objective and investment portfolio. Class A
and Class T shares have a front-end sales charge and pay a distribution
fee. Class T shares may be subject to a contingent deferred sales charge
(CDSC). EFFECTIVE AUGUST 1, 1997 , Class A shares may also be
subject to a CDSC. Class B shares do not have a front-end sales charge, but
do have a CDSC, and pay a distribution fee and a shareholder service fee.
Because Institutional Class shares have no sales charge and do not pay a
distribution fee or a shareholder service fee, but are available only to
certain types of investors. See "Sales Charge Reductions and Waivers," page
64, for Institutional Class eligibility information. You may obtain more
information about Institutional Class shares, which are not offered through
this prospectus, by calling 1-800-843-3001 or from your investment
professional.
The performance of one class of shares of a fund may be different from the
performance of another class of shares of the same fund because of
different sales charges and class expenses. Contact your investment
professional to discuss which class is appropriate for you.
In determining which class of shares is appropriate for you, you should
consider, among other factors, the amount you plan to invest, the length of
time you intend to hold your shares, your eligibility for a sales charge
waiver or reduction, and the package of services provided to you by your
investment professional and the overall costs of those services. In
general, Class A shares have higher costs than Class T shares over a short
holding period because Class A shares have a higher front-end sales charge,
and Class A shares have lower costs than Class T shares over a longer
holding period because Class A shares have lower 12b-1 fees. If you are
planning to invest a significant amount either at one time or through a
regular investment program, you should consider the reduced front-end sales
charges available on Class A and Class T shares. See "Transaction Details,"
page 60, and "Sales Charge Reductions and Waivers," page 64, for sales
charge reduction information. If you are eligible for a front-end sales
charge waiver on a purchase of both Class A and Class T shares, Class A
shares generally will have lower costs than Class T shares because Class A
shares have lower 12b-1 fees. However, you should evaluate the overall
costs of purchasing Class A shares or Class T shares in the context of the
package of services provided to you by your investment professional. See
"Sales Charge Reductions and Waivers," page 64, for sales charge waiver
information. If you prefer not to pay a front-end sales charge, you should
consider Class B shares. While Class B shares are subject to higher ongoing
costs than Class A or Class T shares, because of their higher 12b-1 fees,
Class B shares are sold with a CDSC instead of a front-end sales charge so
your entire purchase amount is immediately invested. Please note that
purchase amounts of more than $250,000 will not be accepted for Class B
shares, and that Class A or Class T shares may have lower costs for
investments that qualify for a front-end sales charge reduction or waiver.
If you sell your Class B shares of the Intermediate-Term Bond Funds within
three years or your Class B shares of the Bond Funds and the Equity Funds
within six years, you will normally pay a CDSC that varies depending on how
long you have held your shares. See "Transaction Details," page 60, for
CDSC schedules and related information.
EFFECTIVE AUGUST 1, 1997 , the following information replaces similar
information found in "Expenses" on page 4.
Class Class Class
A T B
Maximum sales charge (as a % of 5.75% 3.50 None
offering price) on purchases of: %
TechnoQuant Growth, Mid Cap,
Equity Growth, Growth
Opportunities, Strategic
Opportunities, Large Cap, Growth &
Income, Equity Income, and
Balanced (the Equity Funds)
Maximum sales charge (as a % of 4.75% 3.50 None
offering price) on purchases of: %
High Yield, Strategic Income,
Mortgage Securities, Government
Investment, High Income Municipal,
Municipal Bond, California
Municipal Income, and New York
Municipal Income (the Bond Funds)
Maximum sales charge (as a % of 3.75% 2.75 None
offering price) on purchases of: %
Intermediate Bond and
Intermediate Municipal Income (the
Intermediate-Term Bond Funds)
Maximum sales charge (as a % of 1.50% 1.50 None
offering price) on purchases of: %
Short-Fixed Income and
Short-Intermediate
Municipal Income (the Short-Term
Bond Funds)
Maximum CDSC for all Equity and Non Non 5.00%[
Bond Funds (as a % of the lesser e[A] e[A] B]
of original purchase price or
redemption proceeds)
Maximum CDSC for the Non Non 3.00%[
Intermediate-Term Bond e[A] e[A] C]
Funds (as a % of the lesser of the
original purchase price or
redemption proceeds)
Maximum CDSC for the Short-Term Non Non *
Bond Funds (as a % of the lesser e[A] e[A]
of the original purchase price or
redemption proceeds)
Maximum sales charge on Non Non None
reinvested distributions e e
Redemption fee Non Non None
e e
Exchange fee Non Non None
e e
Annual account maintenance fee $12.0 $12. $12.0
(for accounts under $2,500) 0 00 0
* FUNDS DO NOT OFFER CLASS B SHARES.
[A] A CONTINGENT DEFERRED SALES CHARGE CHARGE OF 0.25% IS ASSESSED ON
CERTAIN REDEMPTIONS OF CLASS A AND CLASS T SHARES ON WHICH A FINDERS FEE
WAS PAID. SEE "TRANSACTION DETAILS", PAGE 60.
[B] DECLINES OVER 6 YEARS FROM 5.00% TO 0%.
[C] DECLINES OVER 3 YEARS FROM 3.00% TO 0%.
The following information replaces similar information regarding Growth
Opportunities found in "Expenses" on page 5.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
EQUITY FUNDS
Operating Expenses Class Class T Class B
A
GROWTH OPPORTUNITIES Management fee 0.61% 0.61% 0.61%
12b-1 fee (including 0.25% Shareholder 0.25% 0.50% 1.00%
Service Fee for Class B shares)
Other expenses 0.28%[ 0.23% 0.32%
A] [A]
Total operating expenses 1.14% 1.34% 1.93%
</TABLE>
[A] BASED ON ESTIMATED EXPENSES FOR FIRST YEAR.
The following information replaces similar information found in
"Expenses" on page 7.
A portion of the brokerage commissions that certain of the funds pay is
used to reduce fund expenses. In addition, certain funds have entered into
arrangements with their custodian and transfer agent whereby interest
earned on uninvested cash balances is used to reduce custodian and transfer
agent expenses. Including these reductions, the total operating expenses
presented in the preceding tables for the applicable class would have been:
Class Class
T B
Mid Cap 1.60% 2.37%
Equity Growth 1.34% 1.95%
Strategic Opportunities 1.27% 1.79%
Large Cap 2.00% 2.50%
Equity Income 1.26% 1.79%
Balanced 1.20% 1.90%
High Yield 1.11% 1.79%
Strategic Income 1.22% 1.87%
Government Investment 0.99% 1.67%
Intermediate Bond 0.96% 1.66%
Short-Intermediate Municipal Income 0.89% *
California Municipal Income 0.87% 1.62%
New York Municipal Income 0.97% 1.62%
* FUND DOES NOT OFFER CLASS B SHARES
The following information replaces similar information regarding Growth
Opportunities found in "Expenses" on page 8. Class A information in the
table below reflects Growth Opportunities' maximum Class A front-end sales
charge as in effect through July 31, 1997. EFFECTIVE AUGUST 1, 1997 ,
Growth Opportunities' maximum Class A front-end sales charge increases from
5.25% to 5.75%.
EXPENSE TABLE EXAMPLE: You would pay the following expenses,
including the maximum front-end sales charge or CDSC, as applicable, on a
$1,000 investment, assuming a 5% annual return and either (1) full
redemption or (2) no redemption, at the end of each time period:
EQUITY FUNDS
Examples
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Full Redemption No
Redempt
ion
Class Class T Class B Class B
A
GROWTH OPPORTUNITIES After 1 year $64 $48 $70[A] $20
After 3 years $87 $76 $91[A] $61
After 5 years $112 $10 $124[A $10
6 ] 4
After 10 $18 $19 $19 $19
years[B] 4 1 5 5
</TABLE>
[A] REFLECTS DEDUCTION OF APPLICABLE CDSC.
[B] REFLECTS CONVERSION OF CLASS B SHARES TO CLASS A SHARES AFTER SEVEN
YEARS.
EFFECTIVE AUGUST 1, 1997 , for the funds listed below, the following
information replaces similar information relating to Class A shares found
in "Expenses" on page 8. The Class A expense numbers in the table below
reflect the August 1, 1997 increases in the funds' maximum Class A front
end sales charges.
EXPENSE TABLE EXAMPLE: You would pay the following expenses,
including the maximum front-end sales charge or CDSC, as applicable, on a
$1,000 investment, assuming a 5% annual return and either (1) full
redemption or (2) no redemption, at the end of each time period:
EQUITY FUNDS
Example
s
Full
Redemption
Class A
TECHNOQUANT GROWTH After 1 year $71
After 3 years $99
MID CAP After 1 year $71
After 3 years $98
EQUITY GROWTH After 1 year $69
After 3 years $93
After 5 years $119
After 10 $194
years
GROWTH OPPORTUNITIES After 1 year $68
After 3 years $92
After 5 years $117
After 10 $188
years
STRATEGIC OPPORTUNITIES After 1 year $70
After 3 years $95
After 5 years $122
After 10 $200
years
LARGE CAP After 1 year $74
After 3 years $109
GROWTH & INCOME After 1 year $69
After 3 years $93
EQUITY INCOME After 1 year $68
After 3 years $90
After 5 years $115
After 10 $184
years
BALANCED After 1 year $68
After 3 years $90
After 5 years $115
After 10 $184
years
TAXABLE INCOME FUNDS
Example
s
Full
Redemption
Class A
HIGH YIELD After 1 year $58
After 3 years $81
After 5 years $106
After 10 $177
years
STRATEGIC INCOME After 1 year $60
After 3 years $85
After 5 years $113
After 10 $191
years
MORTGAGE SECURITIES After 1 year $56
After 3 years $75
After 5 years $95
After 10 $153
years
GOVERNMENT INVESTMENT After 1 year $56
After 3 years $75
After 5 years $95
After 10 $153
years
INTERMEDIATE BOND After 1 year $46
After 3 years $65
After 5 years $85
After 10 $144
years
MUNICIPAL FUNDS
Example
s
Full
Redemption
Class A
HIGH INCOME MUNICIPAL After 1 year $56
After 3 years $75
After 5 years $95
After 10 $153
years
MUNICIPAL BOND After 1 year $56
After 3 years $75
After 5 years $95
After 10 $153
years
INTERMEDIATE MUNICIPAL INCOME After 1 year $46
After 3 years $65
After 5 years $85
After 10 $144
years
STATE MUNICIPAL FUNDS
Example
s
Full
Redemption
Class A
CALIFORNIA MUNICIPAL INCOME After 1 year $56
After 3 years $75
NEW YORK MUNICIPAL INCOME After 1 year $56
After 3 years $75
After 5 years $95
After 10 $153
years
The following information replaces similar information found in
"Expenses" on page 11.
If these agreements were not in effect, other expenses and total operating
expenses, as a percentage of average net assets, would have been the
following amounts:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Other Expenses Total Operating Expenses
Class Class Class Class Class Class B
A[A] T B A[A] T
Large Cap 0.96 1.34% 2.35% 1.81% 2.44% 3.95%
%
Strategic Income 0.65% (dagger) (dagger) 1.39% (dagger) (dagger)
Mortgage 2.25% 0.53% 1.08% 2.85% 1.23% 2.43%
Securities[A]
Government 0.72 (dagger) 0.43% 1.32% (dagger) 1.78%
Investment %
Intermediate Bond 0.48 (dagger) 0.44% 1.08% (dagger) 1.79%
%
Short Fixed-Income 0.50 (dagger) * 1.10% (dagger) *
%
High Income 0.48 (dagger) (dagger) 1.03% (dagger) (dagger)
Municipal %
Municipal Bond[A] 2.80% 0.37% 0.52% 3.35% 1.02% 1.82%
Intermediate 1.00% 0.39% 0.56% 1.55% 1.04% 1.86%
Municipal Income
Short-Intermediate 1.29% 0.60% * 1.84% 1.15% *
Municipal Income
California Municipal Income[A] 2.01% 0.38% 0.95% 2.50%[B] 1.03% 2.25%
New York Municipal Income 1.95% 1.97% 2.42% 2.50% 2.62% 3.72%
</TABLE>
* FUND DOES NOT OFFER CLASS B SHARES.
[A] BASED ON ESTIMATED EXPENSES FOR THE FIRST YEAR.
[B] LIMITED IN ACCORDANCE WITH A STATE LIMITATION. WITHOUT THIS LIMITATION,
TOTAL OPERATING EXPENSES WOULD BE 2.56% FOR CALIFORNIA MUNICIPAL INCOME,
CLASS A.
(dagger) TOTAL OPERATING EXPENSES WERE LESS THAN THE VOLUNTARY EXPENSE CAPS
IN EFFECT DURING THE FISCAL YEAR ENDED 1996.
EFFECTIVE AUGUST 1, 1997 , for the funds listed below, the following
information replaces similar information relating to Class A load adjusted
total return figures found in "Performance" on pages 30-32. The total
return figures in the table below reflect the August 1, 1997 increases in
the funds' maximum Class A front-end sales charges. Unless revised in this
prospectus supplement, the footnotes to the total return tables found in
"Performance" on pages 35-36 remain unchanged.
EQUITY FUNDS - CLASS A
Average Annual Total Return F Cumulative Total Return F
Past 1 Past 5 10 Years/ Past 1 Past 5 10 Years/
year years Life of year years Life of
fund+ fund+
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
MID CAP - CLASS A (LOAD ADJ.) [A][C] n/a n/a n/a n/a n/a 10.27
%
EQUITY GROWTH - CLASS A (LOAD ADJ.) [A][C] 12.13 17.36 18.92 12.13 122.6 465.4
% % % % 4% 4%
GROWTH OPPORTUNITIES - CLASS A (LOAD ADJ.)[A][B] 10.78 16.27 19.84 10.78 112.5 406.4
% % % % 1% 6%
STRATEGIC OPPORTUNITIES - CLASS A (LOAD ADJ.) [A][D] (4.30) 10.78 11.21 (4.30) 66.84 189.4
% % % % % 3%
LARGE CAP - CLASS A (LOAD ADJ.) [A][C] n/a n/a n/a n/a n/a 11.50
%
EQUITY INCOME - CLASS A (LOAD ADJ.) [A][C] 11.97 17.59 12.53 11.97 124.7 225.6
% % % % 9% 7%
BALANCED - CLASS A (LOAD ADJ.)[A][B] 2.96% 7.35% 10.64 2.96% 42.58 170.1
% % 2%
</TABLE>
TAXABLE BOND FUNDS - CLASS A
Average Annual Total Return F Cumulative Total Return F
Past 1 Past 5 10 years/ Past 1 Past 5 10 years/
year years Life of year years Life of
fund+ fund+
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
HIGH YIELD - CLASS A (LOAD ADJ.)[A][B] 7.34% 13.24 13.17 7.34% 86.25 237.3
% % % 3%
STRATEGIC INCOME - CLASS A (LOAD ADJ.)[A][D] 7.45% n/a 13.37 7.45% n/a 31.34
% %
MORTGAGE SECURITIES - CLASS A 1.65% 6.75% 7.78% 1.65% 38.64 111.4
(LOAD ADJ.) [A][E] % 7%
GOVERNMENT INVESTMENT - CLASS A (LOAD ADJ.) [A][B] (0.61) 5.72% 6.52% (0.61) 32.08 85.96
% % % %
INTERMEDIATE BOND - CLASS A (LOAD ADJ.) [A][C] 0.93% 6.12% 7.26% 0.93% 34.60 101.5
% 0%
</TABLE>
MUNICIPAL FUNDS - CLASS A
Average Annual Total Return F Cumulative Total Return F
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Past 1 Past 5 10 years/ Past 1 Past 5 10 years/
year years Life of year years Life of
fund+ fund+
HIGH INCOME MUNICIPAL - CLASS A (LOAD ADJ.)[A][B] (0.53) 5.89% 8.52% (0.53) 33.16 111.11
% % % %
MUNICIPAL BOND - CLASS A (LOAD ADJ.)[A] [D] (1.05) 5.69% 6.69% (1.05) 31.88 91.13
% % % %
INTERMEDIATE MUNICIPAL INCOME - CLASS A 0.94% 5.21% 5.73% 0.94% 28.90 74.57
(LOAD ADJ.)[A][C] % %
</TABLE>
STATE MUNICIPAL FUNDS - CLASS A
Average Annual Total Return F Cumulative Total Return F
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Past 1 Past 5 10 years/ Past 1 Past 5 10 years/
year years Life of year years Life of
fund+ fund+
CALIFORNIA MUNICIPAL INCOME - CLASS A (LOAD n/a n/a n/a n/a n/a (2.87)
ADJ.)[A][B] %
NEW YORK MUNICIPAL INCOME - CLASS A (LOAD 0.23% n/a 4.23% 0.23% n/a 5.09%
ADJ.)[A][B]
</TABLE>
[A] LOAD ADJUSTED RETURNS INCLUDE THE EFFECT OF PAYING CLASS A'S MAXIMUM
FRONT-END SALES CHARGE OF 5.75% FOR THE EQUITY FUNDS; 4.75% FOR THE BOND
FUNDS; 3.75% FOR THE INTERMEDIATE-TERM BOND FUNDS; AND 1.50% FOR THE
SHORT-TERM BOND FUNDS. LOAD ADJUSTED RETURNS INCLUDE THE EFFECT OF PAYING
CLASS T'S MAXIMUM FRONT-END SALES CHARGE OF 3.50% FOR THE EQUITY FUNDS AND
BOND FUNDS; 2.75% FOR THE INTERMEDIATE-TERM BOND FUNDS; AND 1.50% FOR THE
SHORT-TERM BOND FUNDS. CLASS B'S CDSC INCLUDED IN THE TOTAL RETURN FIGURES
ARE CALCULATED PURSUANT TO THE CDSC SCHEDULES FOUND ON PAGE 62.
The following information replaces similar information found in footnote F
of the "Performance" section on page 36.
[F] CLASS A OF MUNICIPAL BOND COMMENCED OPERATIONS ON MARCH 3, 1997.
RETURNS BETWEEN JULY 1, 1996 AND FEBRUARY 28, 1997 ARE THOSE OF CLASS T AND
REFLECT CLASS T'S 0.25% 12B-1 FEE. RETURNS PRIOR TO THAT DATE ARE THOSE OF
INITIAL CLASS, THE ORIGINAL CLASS OF THE FUND WHICH DOES NOT BEAR A 12B-1
FEE. CLASS A'S RETURNS WOULD HAVE BEEN LOWER IF ITS 12B-1 FEE WAS REFLECTED
IN RETURNS PRIOR TO JULY 1, 1996.
INITIAL OFFERING OF CLASS B SHARES OF EQUITY GROWTH TOOK PLACE ON DECEMBER
31, 1996. CLASS B SHARES BEAR A 12B-1 FEE (INCLUDING A SHAREHOLDER
SERVICING FEE), WHICH IS NOT REFLECTED IN PRIOR RETURN DATES. RETURNS
BETWEEN SEPTEMBER 10, 1992 AND DECEMBER 31, 1996 ARE THOSE OF CLASS T AND
REFLECT CLASS T'S APPLICABLE 12B-1 FEE (0.65% PRIOR TO JANUARY 1, 1996).
RETURNS PRIOR TO SEPTEMBER 10, 1992 ARE THOSE OF INSTITUTIONAL CLASS, THE
ORIGINAL CLASS OF THE FUND, WHICH DOES NOT BEAR A 12B-1 FEE. CLASS B
RETURNS WOULD HAVE BEEN LOWER IF ITS 12B-1 FEE (INCLUDING A SHAREHOLDER
SERVICING FEE) HAD BEEN REFLECTED IN PRIOR DATE RETURNS.
INITIAL OFFERING OF CLASS B SHARES OF BALANCED TOOK PLACE ON DECEMBER 31,
1996. CLASS B SHARES BEAR A 12B-1 FEE (INCLUDING A SHAREHOLDER SERVICING
FEE), WHICH IS NOT REFLECTED IN PRIOR RETURN DATES. RETURNS BETWEEN JANUARY
6, 1987 AND DECEMBER 31, 1996 ARE THOSE OF CLASS T AND REFLECT CLASS T'S
APPLICABLE 12B-1 FEE (0.65% PRIOR TO JANUARY 1, 1996). CLASS B RETURNS
WOULD HAVE BEEN LOWER IF ITS 12B-1 FEE (INCLUDING A SHAREHOLDER SERVICING
FEE) HAD BEEN REFLECTED IN PRIOR DATE RETURNS.
The following information replaces similar information found in the
"Charter" section on page 38.
THE FUNDS MAY HOLD SPECIAL MEETINGS AND MAIL PROXY MATERIALS. These
meetings may be called to elect or remove trustees, change fundamental
policies, approve a management contract, or for other purposes.
Shareholders not attending these meetings are encouraged to vote by proxy.
The transfer agent will mail proxy materials in advance, including a voting
card and information about the proposals to be voted on. For shareholders
of TechnoQuant Growth, Mid Cap, Equity Growth, Large Cap, and Growth &
Income, you are entitled to one vote for each share you own. For
shareholders of Growth Opportunities, Strategic Opportunities, Equity
Income, Balanced, High Yield, Strategic Income, Mortgage Securities,
Government Investment, Intermediate Bond, Short Fixed-Income, High Income
Municipal, Municipal Bond, Intermediate Municipal Income,
Short-Intermediate Municipal Income, California Municipal Income, and New
York Municipal Income, the number of votes you are entitled to is based
upon the dollar value of your investment.
The following information replaces similar information under the heading
"FMR and Its Affiliates" in the "Charter" section beginning on page 38.
George Fischer is manager of Advisor Municipal Bond and Advisor High Income
Municipal, which he has managed since October 1995 and April 1997,
respectively. He also manages several other Fidelity funds. Since joining
Fidelity in 1989, Mr. Fischer has worked as an analyst and manager.
The following information supplements similar information found in "FMR
and Its Affiliates" on page 40.
As of May 31, 1997, approximately 44.14% and 28.67% of California Municipal
Income's and New York Municipal Income's total outstanding shares,
respectively, were held by an FMR affiliate. Therefore based on his
membership in this family group, Mr. Edward C. Johnson 3d may be deemed to
be a beneficial owner of these shares of California Municipal Income and
New York Municipal Income.
The following information replaces similar information found in "Investment
Principles and Risks" on page 43.
HIGH INCOME MUNICIPAL FUND seeks high current income that is free from
federal income tax by investing primarily in investment-grade municipal
securities. The fund may also invest up to 35% of its assets in below
investment-grade securities. FMR normally invests so that at least 80% of
the fund's assets are invested in municipal securities whose interest is
free from federal income tax. In addition, FMR may invest all of the fund's
assets in municipal securities issued to finance private activities. The
interest from these securities is a tax preference item for the purposes of
the federal alternative minimum tax.
Although the fund can invest in securities of any maturity, FMR seeks to
manage the fund so that it generally reacts to changes in interest rates
similarly to municipal bonds with maturities between eight and 18 years. As
of October 31, 1996, the fund's dollar-weighted average maturity was
approximately 16.4 years.
The following information replaces similar information found under the
heading "Securities and Investment Practices" in the "Investment Principles
and Risks" section on page 46.
High Income Municipal currently intends to limit its investments in below
investment-grade securities to less than 35% of its assets and does not
currently intend to invest more than 10% of its total assets in bonds that
are in default. A security is considered to be investment-grade quality if
it is rated investment-grade by Moody's Investor Service, Standard and
Poor's, Duff & Phelps Credit Rating Co., or Fitch Investors Service L.P.,
or is unrated but judged by FMR to be of equivalent quality.
The following information replaces the similar information found under
the heading "Equity Securities" in the "Securities and Investment
Practices" section on page 44.
RESTRICTIONS: With respect to 75% of its total assets, each of
TechnoQuant Growth, Mid Cap, Growth Opportunities, Strategic Opportunities,
Large Cap, Growth & Income, Equity Income, Balanced, High Yield, Mortgage
Securities, Government Investment, Intermediate Bond, Short Fixed-Income,
High Income Municipal, Municipal Bond and Intermediate Municipal Income may
not purchase more than 10% of the outstanding voting securities of a single
issuer. For TechnoQuant Growth, Strategic Opportunities, and Growth &
Income, this limitation does not apply to securities of other investment
companies.
With respect to 100% of its total assets, Equity Growth may not purchase
more than 10% of the outstanding voting securities of a single issuer.
The following information replaces the similar information found under the
heading "Diversification" in the "Securities and Investment Practices"
section on page 48.
RESTRICTIONS: With respect to 100% of its total assets Equity Growth
may not purchase a security if, as a result, more than 5% would be invested
in the securities of any one issuer. This limitation does not apply to U.S.
Government securities.
With respect to 75% of its total assets each of TechnoQuant Growth, Mid
Cap, Growth Opportunities, Strategic Opportunities, Large Cap, Growth &
Income, Equity Income, Balanced, High Yield, Mortgage Securities,
Government Investment, Intermediate Bond, Short Fixed-Income, High Income
Municipal, Municipal Bond, and Intermediate Municipal Income may not
purchase a security if, as a result, more than 5% would be invested in the
securities of any one issuer. This limitation does not apply to U.S.
Government securities or, for TechnoQuant Growth, Strategic Opportunities,
and Growth & Income, to securities of other investment companies.
The following information replaces the similar information found in the
"Fundamental Investment Policies and Restrictions" section on page 49.
With respect to 75% of its total assets each of TechnoQuant Growth, Mid
Cap, Growth Opportunities, Strategic Opportunities, Large Cap, Growth &
Income, Equity Income, Balanced, High Yield, Mortgage Securities,
Government Investment, Intermediate Bond, Short Fixed-Income, High Income
Municipal, Municipal Bond, and Intermediate Municipal Income may not
purchase a security if, as a result, more than 5% would be invested in the
securities of any one issuer. With respect to 100% of its total assets,
Equity Growth may not purchase a security if, as a result, more than 5%
would be invested in the securities of any one issuer. This limitation does
not apply to U.S. Government securities or, for TechnoQuant Growth,
Strategic Opportunities, and Growth & Income, to securities of other
investment companies.
With respect to 75% of its total assets, each of TechnoQuant Growth, Mid
Cap, Growth Opportunities, Strategic Opportunities, Large Cap, Growth &
Income, Equity Income, Balanced, High Yield, Mortgage Securities,
Government Investment, Intermediate Bond, Short Fixed-Income, High Income
Municipal, Municipal Bond, and Intermediate Municipal Income may not
purchase more than 10% of the outstanding voting securities of a single
issuer. With respect to 100% of its total assets, Equity Growth may not
purchase more than 10% of the outstanding voting securities of a single
issuer. This limitation does not apply to U.S. Government securities or,
for TechnoQuant Growth, Strategic Opportunities, and Growth & Income, to
securities of other investment companies.
The following information replaces the similar information under the
heading "Management Fee" in the "Breakdown of Expenses" section on page
50.
Investment performance will be measured separately for each class of shares
offered by Growth Opportunities and the least of the results obtained will
be used in calculating the performance adjustment. Investment performance
for Strategic Opportunities will be represented by the average performance
of all classes of the fund, weighted according to their average assets for
each month.
The following information replaces similar information found in "How to Buy
Shares" on page 54.
Once each business day, two share prices are calculated for Class A and
Class T shares of each fund: the offering price and the NAV. If you pay a
front-end sales charge or qualify for a reduction as described on page 61,
your Class A or Class T share price will be the offering price. If you
qualify for a front-end sales charge waiver as described on page 64, your
Class A or Class T share price will be the NAV. When you buy Class A or
Class T shares at the offering price, the transfer agent deducts the
appropriate sales charge and invests the rest in Class A or Class T shares
of the fund. Class B's NAV is also calculated every business day. Class B
shares of each fund are sold without a front-end sales charge and may be
subject to a CDSC upon redemption. For information on how the CDSC is
calculated, see "Transaction Details," page 60.
PURCHASE AMOUNTS OF MORE THAN $250,000 WILL NOT BE ACCEPTED FOR CLASS B
SHARES.
The following information replaces similar information found in "Investor
Services" on page 58.
FIDELITY ADVISOR SYSTEMATIC WITHDRAWAL PROGRAM lets you set up periodic
redemptions from your Class A, Class T, or Class B account. Accounts with a
value of $10,000 or more in Class A, Class T or Class B shares are eligible
for this program. Aggregate redemptions per 12 month period from your Class
B account may not exceed 10% of the account value and are not subject to a
CDSC. Because of Class A's and Class T's front-end sales charge, you may
not want to set up a systematic withdrawal plan during a period when you
are buying Class A or Class T shares on a regular basis.
EFFECTIVE AUGUST 1, 1997 , the following information replaces
similar information found in "Transaction Details" on page 61.
THE OFFERING PRICE (price to buy one share) of Class A and Class T
of each fund is its NAV, divided by the difference between one and the
applicable sales charge percentage. Class A has a maximum sales charge of
5.75% of the offering price for the Equity Funds; 4.75% of the offering
price for the Bond Funds; 3.75% of the offering price for the
Intermediate-Term Bond Funds; and 1.50% of the offering price for the
Short-Term Bond Funds. Class T has a maximum sales charge of 3.50% of the
offering price for the Equity Funds and the Bond Funds; 2.75% of the
offering price for the Intermediate-Term Bond Funds; and 1.50% of the
offering price for the Short-Term Bond Funds. The offering price of Class B
of each fund is its NAV. A class's REDEMPTION PRICE (price to sell
one share) is its NAV minus any applicable CDSC.
SALES CHARGES AND INVESTMENT PROFESSIONAL
CONCESSIONS - CLASS A
EQUITY FUNDS: Sales Charge Investment
Profession
al
Concession
as % of
Offering
Price
As a % of As an
Offering approxim
Price ate % of
Net
Amount
Invested
Up to $49,999 5.75% 6.10% 5.00%
$50,000 to $99,999 4.50% 4.71% 3.75%
$100,000 to $249,999 3.50% 3.63% 2.75%
$250,000 to $499,999 2.50% 2.56% 2.00%
$500,000 to $999,999 2.00% 2.04% 1.75%
$1,000,000 - $24,999,999 1.00% 1.01% 0.75%
$25,000,000 or more None* None* *
BOND FUNDS: Sales Charge Investment
Profession
al
Concession
as % of
Offering
Price
As a % of As an
Offering approxim
Price ate % of
Net
Amount
Invested
Up to $49,999 4.75% 4.99% 4.25%
$50,000 to $99,999 4.50% 4.71% 4.00%
$100,000 to $249,999 3.50% 3.63% 3.00%
$250,000 to $499,999 2.50% 2.56% 2.25%
$500,000 to $999,999 2.00% 2.04% 1.75%
$1,000,000 - $24,999,999 0.50% 0.50% 0.50%
$25,000,000 or more None* None* *
INTERMEDIATE-TERM BOND FUNDS: Sales Charge Investment
Profession
al
Concession
as % of
Offering
Price
As a % of As an
Offering approxim
Price ate % of
Net
Amount
Invested
Up to $49,999 3.75% 3.91% 3.00%
$50,000 to $99,999 3.00% 3.10% 2.25%
$100,000 to $249,999 2.25% 2.30% 1.75%
$250,000 to $499,999 1.75% 1.78% 1.50%
$500,000 to $999,999 1.50% 1.52% 1.25%
$1,000,000 - $24,999,999 0.50% 0.50% 0.50%
$25,000,000 or more None* None* *
SHORT-TERM BOND FUNDS: Sales Charge Investment
Profession
al
Concession
as % of
Offering
Price
As a % of As an
Offering approxim
Price ate % of
Net
Amount
Invested
Up to $499,999 1.50% 1.52% 1.25%
$500,000 to $999,999 1.00% 1.01% 0.75%
$1,000,000 - $24,999,999 None None None
$25,000,000 or more None* None *
*
* SEE SECTION ENTITLED FINDERS FEE.
EFFECTIVE AUGUST 1, 1997 , the following information replaces similar
information found in "Transaction Details" on page 62.
FINDERS FEE. On eligible purchases of (i) Class A shares in amounts
of $1 million or more that qualify for a Class A load waiver, (ii) Class A
shares in amounts of $25 million or more, and (iii) Class T shares in
amounts of $1 million or more, investment professionals will be compensated
with a fee at the rate of 0.25% of the amount purchased.
Any assets on which a finders fee has been paid will bear a CDSC (Class A
or Class T CDSC) if they do not remain in Class A or Class T shares of the
Fidelity Advisor funds, Daily Money Class (formerly Initial Class) shares
of Treasury Fund (formerly Daily Money Fund: U.S. Treasury Portfolio),
Prime Fund (formerly Daily Money Fund: Money Market Portfolio), or
Tax-Exempt Fund (formerly Daily Tax-Exempt Money Fund), for a period of at
least one uninterrupted year. The Class A or Class T CDSC will be 0.25% of
the lesser of the cost of the shares at the initial date of purchase or the
value of the shares at redemption, not including any reinvested dividends
or capital gains. Class A or Class T CDSC shares representing reinvested
dividends and capital gains, if any, will be redeemed first, followed by
other Class A or Class T CDSC shares that have been held for the longest
period of time.
Shares held by an insurance company separate account will be aggregated at
the client (e.g., the contract holder or plan sponsor) level, not at the
separate account level. Upon request, anyone claiming eligibility for the
0.25% fee with respect to shares held by an insurance company separate
account must provide FDC access to records detailing purchases at the
client level.
With respect to employee benefit plans, the Class A or Class T CDSC does
not apply to the following types of redemptions: (i) plan loans or
distributions or (ii) exchanges to non-Advisor fund investment options.
With respect to Individual Retirement Accounts, the Class A or Class T CDSC
does not apply to redemptions made for disability, payment of death
benefits, or required partial distributions starting at age 70. Your
investment professional should advise the transfer agent at the time your
redemption order is placed if you qualify for a waiver of the Class A or
Class T CDSC.
The following information replaces similar information found in
"Transaction Details" on page 63.
REINSTATEMENT PRIVILEGE. If you have sold all or part of your
Class A, Class T, or Class B shares of a fund, you may reinvest an amount
equal to all or a portion of the redemption proceeds in the same class of
the fund or any of the other Fidelity Advisor funds, at the NAV next
determined after receipt and acceptance of your investment order, provided
that such reinvestment is made within 90 days of redemption. Under these
circumstances, the dollar amount of the CDSC, if any, you paid on Class T
or Class B shares will be reimbursed to you by reinvesting that amount in
Class T shares or Class B shares, as applicable. EFFECTIVE AUGUST 1,
1997 , the dollar amount of the CDSC, if any, you paid on Class A,
shares will likewise be reimbursed to you by reinvesting that amount in
Class A shares. You must reinstate your shares into an account with the
same registration. This privilege may be exercised only once by a
shareholder with respect to a fund and certain restrictions may apply. For
purposes of the CDSC holding period schedule, the holding period of your
Class T or Class B shares will continue as if the shares had not been
redeemed. EFFECTIVE AUGUST 1, 1997 , for purposes of the CDSC holding
period schedule, the holding period of your Class A, shares will also
continue as if the shares had not been redeemed.
EFFECTIVE AUGUST 1, 1997 , the following information replaces similar
information found in "Exchange Restrictions" on page 64.
(small solid bullet) Any exchanges of Class A, Class T, or Class B shares
are not subject to a CDSC.
The following information supplements information found in "Sales Charge
Reductions and Waivers" on page 65.
A FRONT-END SALES CHARGE WILL NOT APPLY TO THE FOLLOWING CLASS A SHARES:
1. Purchased for an insurance company separate account used to fund annuity
contracts for employee benefit plans which, in the aggregate, have more
than 200 eligible employees or a minimum of $1 million in plan assets
invested in Fidelity Advisor funds;
2. Purchased by a trust institution or bank trust department (excluding
employee benefit plan assets) that has executed a participation agreement
with FDC specifying certain asset minimums and qualifications, and
marketing restrictions. Assets managed by third parties do not qualify for
this waiver;
3. Purchased for use in a broker-dealer managed account program, provided
the broker-dealer has executed a participation agreement with FDC
specifying certain asset minimums and qualifications, and marketing,
program and trading restrictions. Employee benefit plan assets do not
qualify for this waiver; or
4. Purchased on a discretionary basis by a registered investment advisor
which is not part of an organization primarily engaged in the brokerage
business, that has executed a participation agreement with FDC specifying
certain asset minimums and qualifications, and marketing, program and
trading restrictions. Employee benefit plan assets do not qualify for this
waiver.
For the purpose of load waiver (3) certain broker dealers that otherwise
meet the qualifications and asset minimums established by FDC are not
required to sign a participation agreement.
EFFECTIVE AUGUST 1, 1997 , the following information supplements
information found in "Sales Charge Reductions and Waivers" on page 65.
A FRONT-END SALES CHARGE WILL NOT APPLY TO THE FOLLOWING CLASS A
SHARES:
5. Purchased as part of an employee benefit plan having $25 million
or more in plan assets.
The following information replaces similar information found in "Sales
Charge Reductions and Waivers" on page 66.
If you are investing through an account managed by a broker-dealer, if you
have authorized an investment adviser to make investment decisions for you,
or if you are investing through a trust department, you may qualify to
purchase Class T shares without a sales charge (as described in (9), (10)
and (13), above), Class A shares without a sales charge (as described in
(2), (3) and (4) above), or Institutional Class shares. Because
Institutional Class shares have no sales charge, and do not pay a
distribution fee or a shareholder service fee, Institutional Class shares
are expected to have a higher total return than Class A, Class T, or Class
B shares. Contact your investment professional to discuss if you qualify.
THE CDSC ON CLASS B SHARES MAY BE WAIVED:
1. In cases of disability or death, provided that Class B shares are
redeemed within one year following the death or the initial determination
of disability;
2. In connection with a total or partial redemption related to certain
distributions from retirement plans or accounts at age 70 1/2, which are
permitted without penalty pursuant to the Internal Revenue Code; or
3. In connection with redemptions through the Fidelity Advisor Systematic
Withdrawal Program.
SUPPLEMENT TO THE FIDELITY ADVISOR FUNDS
INSTITUTIONAL CLASS FEBRUARY 28,1997 PROSPECTUS
The following information replaces similar information on the cover page.
High Yield and Strategic Income may each invest without limitation in
lower-quality debt securities, sometimes called "junk bonds." Investors
should consider that these securities carry greater risks, such as the risk
of default, than other debt securities. Refer to "Investment Principles and
Risks" on page 23 for further information.
The following information replaces similar information found in "Who May
Want to Invest" on page 3.
High Income Municipal, Municipal Bond, Intermediate Municipal Income, and
Short-Intermediate Municipal Income are designed for investors in higher
tax brackets who seek high current income that is free from federal income
tax. Municipal Bond, Intermediate Municipal Income, and Short-Intermediate
Municipal Income also invest consistent with consideration of capital
preservation. High Income Municipal may invest in lower-quality municipal
securities which invoke greater risks than the investment-grade securities.
The following information replaces similar information found in "Who May
Want to Invest" on page 4.
Each fund is composed of multiple classes of shares. All classes of a fund
have a common investment objective and investment portfolio. Class A and
Class T shares have a front-end sales charge and pay a distribution fee.
Class T shares may be subject to a contingent deferred sales charge (CDSC).
EFFECTIVE AUGUST 1, 1997, Class A shares may also be subject to a
CDSC. Class B shares do not have a front-end sales charge, but do have a
CDSC, and pay a distribution fee and a shareholder service fee. Because
Institutional Class shares have no sales charge and do not pay a
distribution fee or a shareholder service fee, Institutional Class shares
are expected to have a higher total return than Class A, Class T or Class B
shares.
The following information replaces similar information found in the
"Charter" section on page 21.
THE FUNDS MAY HOLD SPECIAL MEETINGS AND MAIL PROXY MATERIALS. These
meetings may be called to elect or remove trustees, change fundamental
policies, approve a management contract, or for other purposes.
Shareholders not attending these meetings are encouraged to vote by proxy.
The transfer agent will mail proxy materials in advance, including a voting
card and information about the proposals to be voted on. For shareholders
of TechnoQuant Growth, Mid Cap, Equity Growth, Large Cap, and Growth &
Income, you are entitled to one vote for each share you own. For
shareholders of, Growth Opportunities, Strategic Opportunities, Equity
Income, Balanced, High Yield, Strategic Income, Mortgage Securities,
Government Investment, Intermediate Bond, Short Fixed-Income, High Income
Municipal, Municipal Bond, Intermediate Municipal Income,
Short-Intermediate Municipal Income, California Municipal Income, and New
York Municipal Income, the number of votes you are entitled to is based
upon the dollar value of your investment.
The following information replaces similar information under the heading
"FMR and Its Affiliates" in the "Charter" section beginning on page 21.
George Fischer is manager of Advisor Municipal Bond and Advisor High Income
Municipal, which he has managed since October 1995 and April 1997,
respectively. He also manages several other Fidelity funds. Since joining
Fidelity in 1989, Mr. Fischer has worked as an analyst and manager.
The following information supplements similar information found in "FMR
and Its Affiliates" on page 23.
As of May 31, 1997, approximately 44.14% and 28.67% of California Municipal
Income's and New York Municipal Income's total outstanding shares,
respectively, were held by an FMR affiliate. Therefore based on his
membership in this family group, Mr. Edward C. Johnson 3d may be deemed to
be a beneficial owner of these shares of California Municipal Income and
New York Municipal Income.
The following information replaces similar information found in "Investment
Principles and Risks" on page 26.
HIGH INCOME MUNICIPAL FUND seeks high current income that is free from
federal income tax by investing primarily in investment-grade municipal
securities. The fund may also invest up to 35% of its assets in below
investment-grade securities. FMR normally invests so that at least 80% of
the fund's assets are invested in municipal securities whose interest is
free from federal income tax. In addition, FMR may invest all of the fund's
assets in municipal securities issued to finance private activities. The
interest from these securities is a tax preference item for the purposes of
the federal alternative minimum tax.
Although the fund can invest in securities of any maturity, FMR seeks to
manage the fund so that it generally reacts to changes in interest rates
similarly to municipal bonds with maturities between eight and 18 years. As
of October 31, 1996, the fund's dollar-weighted average maturity was
approximately 16.4 years.
The following information replaces the similar information found under
the heading "Equity Securities" in the "Securities and Investment
Practices" section on page 27.
RESTRICTIONS: With respect to 75% of its total assets, each of,
TechnoQuant Growth, Mid Cap, Growth Opportunities, Strategic Opportunities,
Large Cap, Growth & Income, Equity Income, Balanced, High Yield, Mortgage
Securities, Government Investment, Intermediate Bond, Short Fixed-Income,
High Income Municipal, Municipal Bond and Intermediate Municipal Income may
not purchase more than 10% of the outstanding voting securities of a single
issuer. For TechnoQuant Growth, Strategic Opportunities and Growth &
Income, this limitation does not apply to securities of other investment
companies.
With respect to 100% of its total assets, Equity Growth may not purchase
more than 10% of the outstanding voting securities of a single issuer.
The following information replaces similar information found in "Securities
and Investment Practices" on page 29.
High Income Municipal currently intends to limit its investments in below
investment-grade securities to less than 35% of its assets and does not
currently intend to invest more than 10% of its total assets in bonds that
are in default. A security is considered to be investment-grade if it is
rated investment-grade by Moody's Investor Service, Standard and Poor's,
Duff & Phelps Credit Rating Co., or Fitch Investors Service, L.P., or is
unrated but judged by FMR to be of equivalent quality.
The following information replaces the similar information found under
the heading "Diversification" in the "Securities and Investment Practices"
section on page 31.
RESTRICTIONS: With respect to 100% of its total assets Equity Growth
may not purchase a security if, as a result, more than 5% would be invested
in the securities of any one issuer. This limitation does not apply to U.S.
Government securities.
With respect to 75% of its total assets each of TechnoQuant Growth, Mid
Cap, Growth Opportunities, Strategic Opportunities, Large Cap, Growth &
Income, Equity Income, Balanced, High Yield, Mortgage Securities,
Government Investment, Intermediate Bond, Short Fixed-Income, High Income
Municipal, Municipal Bond, and Intermediate Municipal Income may not
purchase a security if, as a result, more than 5% would be invested in the
securities of any one issuer. This limitation does not apply to U.S.
Government securities or, for TechnoQuant Growth, Strategic Opportunities
and Growth & Income, to securities of other investment companies.
The following information replaces the similar information found in the
"Fundamental Investment Policies and Restrictions" section on page 32.
With respect to 75% of its total assets each of, TechnoQuant Growth, Mid
Cap, Growth Opportunities, Strategic Opportunities, Large Cap, Growth &
Income, Equity Income, Balanced, High Yield, Mortgage Securities,
Government Investment, Intermediate Bond, Short Fixed-Income, High Income
Municipal, Municipal Bond, and Intermediate Municipal Income may not
purchase a security if, as a result, more than 5% would be invested in the
securities of any one issuer. With respect to 100% of its total assets,
Equity Growth may not purchase a security if, as a result, more than 5%
would be invested in the securities of any one issuer. This limitation does
not apply to U.S. Government securities or, for TechnoQuant Growth,
Strategic Opportunities and Growth & Income, to securities of other
investment companies.
With respect to 75% of its total assets, each of, TechnoQuant Growth, Mid
Cap, Growth Opportunities, Strategic Opportunities, Large Cap, Growth &
Income, Equity Income, Balanced, High Yield, Mortgage Securities,
Government Investment, Intermediate Bond, Short Fixed-Income, High Income
Municipal, Municipal Bond, and Intermediate Municipal Income may not
purchase more than 10% of the outstanding voting securities of a single
issuer. With respect to 100% of its total assets, Equity Growth may not
purchase more than 10% of the outstanding voting securities of a single
issuer. These limitations do not apply to U.S. Government securities or,
for TechnoQuant Growth, Strategic Opportunities and Growth & Income, to
securities of other investment companies.
The following information replaces similar information found under the
heading "Management Fee" in the "Breakdown of Expenses" section on page 33.
Investment performance will be measured separately for each class of shares
offered by Growth Opportunities and the least of the results obtained will
be used in calculating the performance adjustment. Investment performance
for Strategic Opportunities will be represented by the average performance
of all classes of the fund, weighted according to their average assets for
each month.
The following information supplements the information found in "Exchange
Restrictions" on page 43.
OTHER FUNDS MAY HAVE DIFFERENT EXCHANGE RESTRICTIONS, and may impose fees
of up to 1.00% on purchases, administrative fees of up to $7.50, and
redemption fees of up to 1.50% on exchanges. Check each fund's prospectus
for details.
SUPPLEMENT TO THE FIDELITY ADVISOR FUNDS:
CLASS A, CLASS T, CLASS B, INSTITUTIONAL CLASS, AND INITIAL CLASS
FEBRUARY 28, 1997
STATEMENT OF ADDITIONAL INFORMATION
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND IN "INVESTMENT
POLICIES AND LIMITATIONS" ON PAGE 8.
STRATEGIC OPPORTUNITIES FUND
THE FOLLOWING ARE THE FUND'S FUNDAMENTAL INVESTMENT LIMITATIONS SET
FORTH IN THEIR ENTIRETY. THE FUND MAY NOT:
(1) with respect to 75% of the fund's total assets, purchase the securities
of any issuer (other than securities issued or guaranteed by the U.S.
government or any of its agencies or instrumentalities or securities of
other investment companies) if, as a result, (a) more than 5% of the fund's
total assets would be invested in the securities of that issuer, or (b) the
fund would hold more than 10% of the outstanding voting securities of that
issuer;
(2) issue senior securities, except as permitted under the Investment
Company Act of 1940;
(3) currently intend to sell securities short, unless it owns or has the
right to obtain securities equivalent in kind and amount to the securities
sold short, and provided that transactions in futures contracts and options
are not deemed to constitute selling securities short;
(4) borrow money, except that the fund may borrow money for temporary or
emergency purposes (not for leveraging or investment) in an amount not
exceeding 33 1/3% of its total assets (including the amount borrowed) less
liabilities (other than borrowings). Any borrowings that come to exceed
this amount will be reduced within three days (not including Sundays and
holidays) to the extent necessary to comply with the 33 1/3% limitation;
(5) underwrite securities issued by others, except to the extent that the
fund may be considered an underwriter within the meaning of the Securities
Act of 1933 in the disposition of restricted securities;
(6) purchase the securities of any issuer (other than securities issued or
guaranteed by the U.S. government or any of its agencies or
instrumentalities) if, as a result, more than 25% of the fund's total
assets would be invested in the securities of companies whose principal
business activities are in the same industry;
(7) lend any security or make any other loan if, as a result, more than 33
1/3% of its total assets would be lent to other parties, but this
limitation does not apply to purchases of debt securities or to repurchase
agreements or;
(8) purchase or sell real estate unless acquired as a result of ownership
of securities or other instruments (but this shall not prevent the fund
from investing in securities or other instruments backed by real estate or
securities of companies engaged in the real estate business);
(9) The fund may notwithstanding any other fundamental investment policy or
limitation, invest all of its assets in the securities of a single open-end
management investment company managed by Fidelity Management & Research
Company or an affiliate or successor with substantially the same
fundamental investment objective, policies, and limitations as the fund.
THE FOLLOWING INVESTMENT LIMITATIONS ARE NOT FUNDAMENTAL AND MAY BE
CHANGED WITHOUT SHAREHOLDER APPROVAL.
(i) The fund may borrow money only (a) from a bank or from a registered
investment company or portfolio for which FMR or an affiliate serves as
investment adviser or (b) by engaging in reverse repurchase agreements with
any party (reverse repurchase agreements are treated as borrowings for
purposes of fundamental investment limitation (6)). The fund will not
borrow from other funds advised by FMR or its affiliates if total
outstanding borrowings immediately after such borrowing would exceed 15% of
the fund's total assets.
(ii) The fund does not currently intend to purchase any security if, as a
result, more than 10% of its net assets would be invested in securities
that are deemed to be illiquid because they are subject to legal or
contractual restrictions on resale or because they cannot be sold or
disposed of in the ordinary course of business at approximately the prices
at which they are valued.
(iii) The fund does not currently intend to lend assets other than
securities to other parties, except by (a) lending money (up to 5% of the
fund's net assets) to a registered investment company or portfolio for
which FMR or an affiliate serves as investment adviser or (b) acquiring
loans, loan participations, or other forms of direct debt instruments and,
in connection therewith, assuming any associated unfunded commitments of
the sellers. (This limitation does not apply to purchases of debt
securities or to repurchase agreements.)
(iv) The fund does not currently intend to invest all of its assets in the
securities of a single open-end management investment company managed by
Fidelity Management & Research Company or an affiliate or successor with
substantially the same fundamental investment objective, policies, and
limitations as the fund.
(v) currently intend to purchase securities on margin, except that the fund
may obtain such short-term credits as are necessary for the clearance of
transactions, and provided that margin payments in connection with futures
contracts and options on futures contracts shall not constitute purchasing
securities on margin;
For the fund's limitations on futures and options transactions, see the
section entitled "Limitations on Futures and Options Transactions" on page
60
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION IN "PERFORMANCE" ON
PAGES 68 AND 69.
The following tables and charts show performance for each class of
shares of each fund. Class A shares have a maximum front-end sales charge
of 5.25% for TechnoQuant Growth, Overseas, Mid Cap, Equity Growth, Growth
Opportunities, Strategic Opportunities, Large Cap, Growth & Income, Equity
Income, and Balanced (the Equity Funds); 4.25% for Emerging Markets Income,
High Yield, Strategic Income, Mortgage Securities, Government Investment,
High Income Municipal, Municipal Bond, New York Municipal Income, and
California Municipal Income (the Bond Funds); 3.25% for Intermediate Bond
and Intermediate Municipal Income (the Intermediate-Term Bond Funds); and
1.50% for Short Fixed-Income and Short-Intermediate Municipal Income (the
Short-Term Bond Funds). EFFECTIVE AUGUST 1, 1997, the Equity Funds',
Bond Funds' and the Intermediate Term Bond Funds' Class A shares maximum
front-end sales charges increase as follows: 5.75% for the Equity Funds;
4.75% for the Bond Funds; and 3.75% for the Intermediate Term Bond Funds.
As the case may be, the performance numbers herein reflect the Class A
shares maximum front-end sales charges as in effect through July 31, 1997.
Class A shares are also subject to a 12b-1 fee of 0.25% (Equity Funds), and
0.15% (Bond Funds, Intermediate-Term Bond Funds, and Short-Term Bond
Funds). Class T shares have a maximum front-end sales charge of 3.50% for
the Equity Funds, 3.50% for the Bond Funds, 2.75% for the Intermediate-Term
Bond Funds, and 1.50% for the Short-Term Bond Funds. Class T shares are
also subject to a 12b-1 fee of 0.50% (the Equity Funds), 0.25% (the Bond
Funds and the Intermediate-Term Bond Funds), and 0.15% (the Short-Term Bond
Funds). Class B shares have contingent deferred sales charges (CDSC) upon
redemption: maximum CDSC is 5.00% for all funds that offer Class B except
the Intermediate-Term Bond Funds, which have a maximum CDSC of 3.00%. Class
B shares are also subject to a 12b-1 fee of 0.75% (the Equity Funds) or
0.65% (the Bonds Funds and the Intermediate-Term Bond Funds), as well as a
0.25% shareholder services fee. Institutional Class shares do not have a
sales charge or a 12b-1 fee. Initial Class shares of Strategic
Opportunities have a front-end sales charge of 3.50% and no 12b-1 fee.
Initial Class shares of Mortgage Securities and Municipal Bond do not have
a sales charge or a 12b-1 fee.
THE FOLLOWING INFORMATION SUPPLEMENTS INFORMATION FOUND IN "ADDITIONAL
PURCHASE, EXCHANGE, AND REDEMPTION INFORMATION" ON PAGE 119.
CLASS A SHARES ONLY
Pursuant to Rule 22d-1 under the 1940 Act, FDC exercises its right to
waive Class A's maximum 5.25% (Equity Funds); 4.25% (Bond Funds); 3.25%
(Intermediate Bond Funds); or 1.50% (Short Bond Funds) front-end sales
charge in connection with a fund's merger with or acquisition of any
investment company or trust. EFFECTIVE AUGUST 1, 1997, Class A's
maximum front-end sales charges increase as follows: 5.75% (Equity funds),
4.75% (Bond funds), 3.75% (Intermediate Bond funds). In addition, FDC has
chosen to waive Class A's front-end sales charge in certain instances
because of efficiencies involved in those sales of shares. The sales charge
will not apply:
1. to shares purchased by an insurance company separate account used to
fund annuity contracts purchased by employee benefit plans (including
403(b) programs, but otherwise as defined in ERISA), which, in the
aggregate, have either more than 200 eligible employees or a minimum of
$1,000,000 in assets invested in Fidelity Advisor funds;
2. to shares purchased by a trust institution or bank trust department
(excluding employee benefit plan assets) that has executed a participation
agreement with FDC specifying certain asset minimums and qualifications,
and marketing restrictions. Assets managed by third parties do not qualify
for this waiver;
3. to shares purchased for use in a broker-dealer managed account program,
provided the broker-dealer has executed a participation agreement with FDC
specifying certain asset minimums and qualifications, and marketing,
program and trading restrictions. Employee benefit plan assets do not
qualify for this waiver; or
4. to shares purchased on a discretionary basis by a registered investment
adviser which is not part of an organization primarily engaged in the
brokerage business, that has executed a participation agreement with FDC
specifying certain asset minimums and qualifications, and marketing,
program and trading restrictions. Employee benefit plan assets do not
qualify for this waiver.
5. EFFECTIVE AUGUST 1, 1997 to shares purchased by an employee
benefit plan having $25 million or more in plan assets.
For the purpose of load waiver (3), certain broker-dealers that otherwise
meet the qualifications and asset minimums established by FDC are not
required to sign a participation agreement.
A sales load waiver form must accompany these transactions.
EFFECTIVE AUGUST 1, 1997, THE FOLLOWING INFORMATION REPLACES
SIMILAR INFORMATION FOUND IN "ADDITIONAL PURCHASE, EXCHANGE, AND REDEMPTION
INFORMATION" ON PAGE 120.
FINDERS FEE. On eligible purchases of (i) Class A shares in amounts
of $1 million or more that qualify for a Class A load waiver, (ii) Class A
shares in amounts of $25 million or more, and (iii) Class T shares in
amounts of $1 million or more, investment professionals will be compensated
with a fee of 0.25%. Class A eligible purchases are the following purchases
made through broker-dealers and banks: an individual trade of $25 million
or more; an individual trade of $1 million or more that is load waived; a
trade which brings the value of the accumulated account(s) of an investor
(including an employee benefit plan) past $25 million; a load waived trade
that brings the value of the accumulated account(s) of an investor
(including an employee benefit plan) past $1 million; a trade for an
investor with an accumulated account value of $25 million or more; a load
waived trade for an investor with an accumulated account value of $1
million or more; an incremental trade toward an investor's $25 million
"Letter of Intent"; and an incremental load waived trade toward an
investor's $1 million "Letter of Intent". Class T eligible purchases are
the following purchases made through broker-dealers and banks: an
individual trade of $1 million or more; a trade which brings the value of
the accumulated account(s) of an investor (including an employee benefit
plan) past $1 million; a trade for an investor with an accumulated account
value of $1 million or more; and an incremental trade toward an investor's
$1 million "Letter of Intent."
Any assets in relation to which an investment professional has received
such compensation will bear a contingent deferred sales charge (Class A or
Class T CDSC) if they do not remain in Class A or Class T shares of the
Fidelity Advisor Funds, Daily Money Class (formerly Initial Class) shares
of Treasury Fund (formerly Daily Money Fund: U.S. Treasury Portfolio),
Prime Fund (formerly Daily Money Fund: Money Market Portfolio), or shares
of Tax-Exempt Fund (formerly Daily Tax-Exempt Money Fund), for a period of
at least one uninterrupted year. The Class A or Class T CDSC will be 0.25%
of the lesser of the cost of the shares at the initial date of purchase or
the value of the shares at redemption, not including any reinvested
dividends or capital gains. Class A or Class T CDSC shares representing
reinvested dividends or capital gains, if any, will be redeemed first,
followed by other Class A or Class T CDSC shares that have been held for
the longest period of time.
With respect to employee benefit plans, the Class A or Class T CDSC does
not apply to the following types of redemptions: (i) plan loans or
distributions or (ii) exchanges to non-Advisor fund investment options.
With respect to Individual Retirement Accounts, the Class A or Class T CDSC
does not apply to redemptions made for disability, payment of death
benefits, or required partial distributions starting at age 70 1/2.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND IN "ADDITIONAL
PURCHASE, EXCHANGE, AND REDEMPTION INFORMATION" ON PAGE 121.
CLASS B SHARES ONLY
The contingent deferred sales charge (CDSC) on Class B shares may be waived
(1) in the case of disability or death, provided that Class B shares are
redeemed within one year following the death or the initial determination
of disability; (2) in connection with a total or partial redemption related
to certain distributions from retirement plans or accounts at age 70 1/2,
which are permitted without penalty pursuant to the Internal Revenue Code;
or (3) in connection with redemptions through the Fidelity Advisor
Systematic Withdrawal Program.
A sales load waiver form must accompany these transactions.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND IN "ADDITIONAL
PURCHASE, EXCHANGE, AND REDEMPTION INFORMATION" ON PAGE 122.
CLASS A, CLASS T, CLASS B, AND INSTITUTIONAL CLASS SHARES ONLY
FIDELITY ADVISOR SYSTEMATIC WITHDRAWAL PROGRAM. If you own Class A, Class
T, or Institutional Class shares worth $10,000 or more, you can have
monthly, quarterly or semi-annual checks sent from your account to you, to
a person named by you, or to your bank checking account. If you own Class B
shares worth $10,000 or more, you can have monthly or quarterly checks sent
from your account to you, to a person named by you, or to your bank
checking account. Aggregate redemptions per 12 month period from your Class
B account may not exceed 10% of the value of the account and are not
subject to a CDSC; and you may set your withdrawal amount as a percentage
of the value of your account or a fixed dollar amount. Your Systematic
Withdrawal Program payments are drawn from Class A, Class T, Class B, or
Institutional Class share redemptions, as applicable. If Systematic
Withdrawal Plan redemptions exceed income dividends earned on your shares,
your account eventually may be exhausted.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND IN
"DISTRIBUTIONS AND TAXES" ON PAGE 123.
Each municipal fund purchases securities whose interest FMR believes is
free from federal income tax. Generally, issuers or other parties have
entered into covenants requiring continuing compliance with federal tax
requirements to preserve the tax-free status of interest payments over the
life of the security. If at any time the covenants are not complied with,
or if the IRS otherwise determines that the issuer did not comply with
relevant tax requirements, interest payments from a security could become
federally taxable retroactive to the date the security was issued. For
certain types of structured securities, the tax status of the pass-through
of tax-free income may also be based on the federal and state tax treatment
of the structure.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND IN "TRUSTEES
AND OFFICERS" ON PAGE 126.
The Trustees and executive officers of the trusts are listed below. Except
as indicated, each individual has held the office shown or other offices in
the same company for the last five years. All persons named as Trustees
also serve in similar capacities for other funds advised by FMR. The
business address of each Trustee and officer who is an "interested person"
(as defined in the 1940 Act) is 82 Devonshire Street, Boston, Massachusetts
02109, which is also the address of FMR. The business address of all the
other Trustees is Fidelity Investments, P.O. Box 9235, Boston,
Massachusetts 02205-9235. Those Trustees who are "interested persons" by
virtue of their affiliation with either a trust or FMR are indicated by an
asterisk (*).
ROBERT M. GATES (53), Trustee (1997), is a consultant, author, and lecturer
(1993). Mr. Gates was Director of the Central Intelligence Agency (CIA)
from 1991-1993. From 1989 to 1991, Mr. Gates served as Assistant to the
President of the United States and Deputy National Security Advisor. Mr.
Gates is currently a Trustee for the Forum For International Policy, a
Board Member for the Virginia Neurological Institute, and a Senior Advisor
of the Harvard Journal of World Affairs. In addition, Mr. Gates also serves
as a member of the corporate board for LucasVarity PLC (automotive
components and diesel engines), Charles Stark Draper Laboratory
(non-profit), NACCO Industries, Inc. (mining and manufacturing), and TRW
Inc. (original equipment and replacement products) Mr. Gates currently
serves as a Trustee for each of the following trusts: Fidelity Advisor
Series II, III, IV, V, VI, and VIII, Fidelity Municipal Trust, and Fidelity
Income Fund.
WILLIAM O. McCOY (63),Trustee (1997), is the Vice President of Finance for
the University of North Carolina (16-school system, 1995). Prior to his
retirement in December 1994, Mr. McCoy was Vice Chairman of the Board of
BellSouth Corporation (telecommunications, 1984) and President of BellSouth
Enterprises (1986). He is currently a Director of Liberty Corporation
(holding company, 1984), Weeks Corporation of Atlanta (real estate, 1994),
Carolina Power and Light Company (electric utility, 1996), and the Kenan
Transport Co. (1996). Previously, he was a Director of First American
Corporation (bank holding company, 1979-1996). In addition, Mr. McCoy
serves as a member of the Board of Visitors for the University of North
Carolina at Chapel Hill (1994) and for the Kenan-Flager Business School
(University of North Carolina at Chapel Hill, 1988). Mr. McCoy currently
serves as a Trustee for each of the following trusts: Fidelity Advisor
Series II, III, IV, V, VI, and VIII, Fidelity Municipal Trust, and Fidelity
Income Fund.
THE FOLLOWING FOOTNOTE REPLACES A SIMILAR FOOTNOTE FOUND IN THE "TRUSTEES
AND OFFICERS" SECTION ON PAGE 130.
(double dagger)(double dagger)(double dagger) During the period from May 1,
1996 through December 31, 1996, William O. McCoy served as a Member of the
Advisory Board of each trust. Mr. McCoy was appointed to the Board of
Trustees of Fidelity Advisor Series II, III, IV, V, and VI, Fidelity
Municipal Trust, and Fidelity Income Fund, effective January 1, 1997.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND IN THE
"TRUSTEES AND OFFICERS" SECTION ON PAGES 131-135.
As of May 31, 1997, approximately 44.14% of California Municipal Income's,
7.39% of Emerging Markets Income's, 4.05% of Large Cap's, and 28.67% of
Municipal Bond's, outstanding shares was held by an FMR affiliate. FMR
Corp. is the ultimate parent company of this FMR affiliate. By virtue of
his ownership interest in FMR Corp., as described in the "FMR" section on
page 125, Mr. Edward C. Johnson 3d, President and Trustee of the fund, may
be deemed to be a beneficial owner of these shares. As of the above date,
with the exception of Mr. Johnson 3d's deemed ownership of California
Municipal Income's, Emerging Markets Income's, Large Cap's, and Municipal
Bond's shares, the Trustees and officers of the funds owned, in the
aggregate, less than 1% of each fund's total outstanding shares.
As of May 31, 1997, the following owned of record or beneficially 5% or
more of the outstanding shares of the classes of the following Fidelity
Advisor funds:
ADVISOR BALANCED - CLASS A: EQ Financial Consultants, New York, NY
(10.99%); First Tennessee Bank, Memphis, TN (7.61%).
ADVISOR BALANCED - CLASS T : CIGNA, Hartford, CT (22.15%); Smith
Barney, New York, NY (5.24%).
ADVISOR BALANCED - CLASS B: Royal Alliance Assoc., Inc., Birmingham,
AL (5.92%).
ADVISOR BALANCED - INSTITUTIONAL CLASS: Whitney National Bank, New
Orleans, LA (33.07%); Valley National Bank, Clifton, NJ (14.31%); Charles
Schwab and Co., Inc., San Francisco, CA (9.38%); Moss Lawton, Chicago, IL
(8.19%); Benefit Services Corporation, Atlanta, GA (6.09%).
ADVISOR CALIFORNIA MUNICIPAL INCOME - CLASS A: FMR Corp., Boston, MA
(105.20%); Sunamerica Securities, Inc., Phoenix, AZ (34.18%).
ADVISOR CALIFORNIA MUNICIPAL INCOME - CLASS T: First Allied
Securities, Inc., Cokeville, WY (21.42%); Prudential Securities, New York,
NY (15.83%); Hornor Townsend & Kent, Philadelphia, PA (12.58%); W. S.
Griffith & Co., Inc., San Diego, CA (5.48%).
ADVISOR CALIFORNIA MUNICIPAL INCOME - CLASS B: FMR Corp., Boston, MA
(13.02%); UBOC Investment Services, Inc., Los Angeles, CA (12.54%); U. S.
Life Equity Sales, New York, NY (12.11%); Prudential Securities, New York,
NY (9.08%); Merrill Lynch Pierce Fenner & Smith, Jacksonville, FL (7.51%);
Piper Jaffrey & Hopwood, Inc., Minneapolis, MN (7.34%); A. G. Edwards &
Sons, St. Louis, MO (6.67%); Alliance Advisory & Securities, Westlake
Village, CA (6.42%); PaineWebber, Inc., Weehawken, NJ (6.33%); Sunamerica
Securities, Inc., Phoenix, AZ (5.30%).
ADVISOR CALIFORNIA MUNICIPAL INCOME - INSTITUTIONAL CLASS: FMR
Corp., Boston, MA (99.61%).
ADVISOR EMERGING MARKETS INCOME - CLASS A: FMR Corp., Boston, MA
(11.67%); Dain Bosworth, Inc., Minneapolis, MN (10.22%); PNC Securities,
Pittsburgh, PA (7.55%); Washington Square Securities, Minneapolis, MN
(6.96%); Merrill Lynch Pierce Fenner & Smith, Jacksonville, FL (5.43%).
ADVISOR EMERGING MARKETS INCOME - CLASS T: FMR Corp., Boston, MA
(9.37%); Donaldson, Lufkin & Jenrette, New York, NY (6.80%).
ADVISOR EMERGING MARKETS INCOME - CLASS B: Donaldson, Lufkin &
Jenrette, New York, NY (9.26%); PaineWebber, Inc., Weehawken, NJ (6.83%).
ADVISOR EMERGING MARKETS INCOME - INSTITUTIONAL CLASS: Robert E.
Jones & Associates, Denver, CO (59.98%); First National Bank La Jolla, La
Jolla, CA (7.36%).
ADVISOR EQUITY GROWTH - CLASS A: FIS Securities, Inc., Providence,
RI (9.60%); Donaldson, Lufkin & Jenrette, New York, NY (6.68%).
ADVISOR EQUITY GROWTH - CLASS T: CIGNA, Hartford, CT (8.88%); Smith
Barney, New York, NY (5.61%); Merrill Lynch Pierce Fenner & Smith,
Jacksonville, FL (5.33%).
ADVISOR EQUITY GROWTH - CLASS B : FIS Securities, Inc., Providence,
RI (11.76%).
ADVISOR EQUITY INCOME - CLASS A: Donaldson, Lufkin & Jenrette, New
York, NY (8.16%); FIS Securities, Inc., Providence, RI (6.04%).
ADVISOR EQUITY INCOME - CLASS T: Smith Barney, New York, NY (5.33%).
ADVISOR EQUITY INCOME - CLASS B: Merrill Lynch Pierce Fenner &
Smith, Jacksonville, FL (7.26%); Smith Barney, New York, NY (7.18%);
Donaldson, Lufkin & Jenrette, New York, NY (6.61%).
ADVISOR EQUITY INCOME - INSTITUTIONAL CLASS: Bank of Boston, Boston,
MA (29.73%); First National Bank of Ohio, Akron, OH (13.12%); First
Hawaiian Bank, Honolulu, HI (5.82%).
ADVISOR GOVERNMENT INVESTMENT - CLASS A: FMR Corp., Boston, MA
(15.00%); Wilmington Trust Company, Wilmington, DE (12.68%); CJM Planning
Corp., Fair Lawn, NJ (10.68%); A. G. Edwards & Sons, St. Louis, MO (9.08%);
Vestax Securities, Hudson, OH (9.00%); UBOC Investment Services, Inc., Los
Angeles, CA (7.28%); EQ Financial Consultants, New York, NY (6.92%).
ADVISOR GOVERNMENT INVESTMENT - CLASS T: Oriental Financial Services
Corp., Hato Rey, PR (6.54%); Commonwealth Equity Services, Waltham, MA
(6.28%); Smith Barney, New York, NY (5.02%).
ADVISOR GOVERNMENT INVESTMENT - CLASS B: Donaldson, Lufkin &
Jenrette, New York, NY (7.52%); Royal Alliance Assoc., Inc., Birmingham, AL
(6.29%); Smith Barney, New York, NY (5.31%).
ADVISOR GOVERNMENT INVESTMENT - INSTITUTIONAL CLASS: First Hawaiian
Bank, Honolulu, HI (63.05%); First Security Trust Company, Coral Gables, FL
(6.02%).
ADVISOR GROWTH OPPORTUNITIES - CLASS A: Donaldson, Lufkin &
Jenrette, New York, NY (6.28%); Prudential Securities, New York, NY
(6.04%); A. G. Edwards & Sons, St. Louis, MO (5.09%).
ADVISOR GROWTH OPPORTUNITIES - CLASS T : CIGNA, Hartford, CT
(16.42%); Smith Barney, New York, NY (6.72%).
ADVISOR GROWTH OPPORTUNITIES - CLASS B: Merrill Lynch Pierce Fenner
& Smith, Jacksonville, FL (9.76%); A. G. Edwards & Sons, St. Louis, MO
(6.83%); Smith Barney, New York, NY (6.46%); Prudential Securities, New
York, NY (5.54%).
ADVISOR GROWTH OPPORTUNITIES - INSTITUTIONAL CLASS: Frost National
Bank, San Antonio, TX (9.55%); Charles Schwab and Co., Inc., San Francisco,
CA (9.54%); Marshall & Ilsley Trust Co., Milwaukee, WI (7.31%).
ADVISOR HIGH INCOME MUNICIPAL - CLASS A: Dain Bosworth, Inc.,
Minneapolis, MN (29.02%); A. G. Edwards & Sons, St. Louis, MO (19.28%);
1717 Capital Management Company, Newark, DE (15.87%); FMR Corp., Boston, MA
(6.18%); EQ Financial Consultants, New York, NY (5.75%); Corelink
Financial, Providence, RI (5.47%).
ADVISOR HIGH INCOME MUNICIPAL - CLASS T: Smith Barney, New York, NY
(8.75%); A. G. Edwards & Sons, St. Louis, MO (6.86%); Royal Alliance
Assoc., Inc., Birmingham, AL (5.26%); Donaldson, Lufkin & Jenrette, New
York, NY (5.09%).
ADVISOR HIGH INCOME MUNICIPAL - CLASS B: Donaldson, Lufkin &
Jenrette, New York, NY (10.32%); Merrill Lynch Pierce Fenner & Smith,
Jacksonville, FL (5.26%).
ADVISOR HIGH INCOME MUNICIPAL - INSTITUTIONAL CLASS: Tompkins County
Trust Company, Ithaca, NY (19.03%); FMR Corp., Boston, MA (12.49%); Charles
Schwab and Co., Inc., San Francisco, CA (6.58%); Liberty National Bank &
Trust, Oklahoma City, OK (6.40%); Jack White & Company - TX, Beaumont, TX
(5.55%); Evergreen Bank, N.A., Glens Falls, NY (5.55%); University Bank,
Houston, TX (5.26%).
ADVISOR HIGH YIELD - CLASS A: FIS Securities, Providence, RI
(13.09%); Donaldson, Lufkin & Jenrette, New York, NY (8.22%).
ADVISOR HIGH YIELD - CLASS T: Donaldson, Lufkin & Jenrette, New
York, NY (9.06%); Smith Barney, New York, NY (6.17%); Manulife Financial,
Canada (5.94%).
ADVISOR HIGH YIELD - CLASS B: Merrill Lynch Pierce Fenner & Smith,
Jacksonville, FL (10.58%); Donaldson, Lufkin & Jenrette, New York, NY
(8.20%); Prudential Securities, New York, NY (6.79%); Smith Barney, New
York, NY (5.98%).
ADVISOR HIGH YIELD - INSTITUTIONAL CLASS: Charles Schwab and Co.,
Inc., San Francisco, CA (18.03%); Donaldson, Lufkin & Jenrette, New York,
NY (10.12%); Resources Trust Company, Englewood, CO (7.56%); First Hawaiian
Bank, Honolulu, HI (6.49%); Capital Planning Corp., Bellevue, WA (5.08%).
ADVISOR INTERMEDIATE BOND - CLASS A: FIS Securities, Inc.,
Providence, RI (30.64%); Corelink Financial, Providence, RI (13.33%);
Donaldson, Lufkin & Jenrette, New York, NY (9.26%); FMR Corp., Boston, MA
(5.80%); Prudential Securities, New York, NY (5.58%).
ADVISOR INTERMEDIATE BOND - CLASS T: PaineWebber, Inc., Weehawken,
NJ (8.22%).
ADVISOR INTERMEDIATE BOND - CLASS B: Donaldson, Lufkin &
Jenrette, New York, NY (11.67%); Royal Alliance Assoc., Inc., Birmingham,
AL (6.19%).
ADVISOR INTERMEDIATE BOND - INSTITUTIONAL CLASS: Mercantile Bank,
N.A., St. Louis, MO (12.75%); Amivest Corporation, New York, NY (6.41%);
Magna Trust Company, Belleville, IL (6.23%); Bank of Mississippi, Jackson,
MS (5.75%).
ADVISOR INTERMEDIATE MUNICIPAL INCOME - CLASS A: FMR Corp., Boston,
MA (34.84%); Summit Trust Company, Summit, NJ (33.49%); Locust Street
Securities, Inc., Des Moines, IA (26.25%); Corelink Financial, Providence,
RI (15.65%).
ADVISOR INTERMEDIATE MUNICIPAL INCOME - CLASS T : Royal Alliance
Assoc., Inc., Birmingham, AL (8.75%); Smith Barney, New York, NY (6.98%);
Commonwealth Equity Services, Waltham, MA (5.44%).
ADVISOR INTERMEDIATE MUNICIPAL INCOME - CLASS B: Merrill Lynch
Pierce Fenner & Smith, Jacksonville, FL (12.04%); National Financial
Services Corporation, Boston, MA (7.61%); Prudential Securities, New York,
NY (7.07%); Donaldson, Lufkin & Jenrette, New York, NY (6.93%); Royal
Alliance Assoc., Inc., Birmingham, AL (6.35%); A. G. Edwards & Sons, St.
Louis, MO (6.08%).
ADVISOR INTERMEDIATE MUNICIPAL INCOME - INSTITUTIONAL CLASS: Liberty
National Bank & Trust, Oklahoma City, OK (24.47%); Wells Fargo Bank, San
Francisco, CA (12.90%); Frost National Bank, San Antonio, TX (10.88%);
South Holland Bancorp, South Holland, IL (8.94%); Citizens National Bank of
Evansville, Evansville, IN (6.20%); Laird Norton Co., Seattle, WA (5.71%).
ADVISOR LARGE CAP - CLASS A: A. G. Edwards & Sons, St. Louis, MO
(12.19%); FMR Corp., Boston, MA (7.63%); Westport Bank and Trust Co.,
Westport, CT (6.24%); LaSalle St. Securities, Inc., Chicago, IL (6.03%);
1717 Capital Management Company, Newark, DE (5.62%).
ADVISOR LARGE CAP - CLASS T: Dain Bosworth, Inc., Minneapolis, MN
(8.07%); Securities America, Inc., Omaha, NE (7.86%).
ADVISOR LARGE CAP -CLASS B: Dain Bosworth, Inc., Minneapolis, MN
(20.70%); Prudential Securities, New York, NY (7.53%).
ADVISOR LARGE CAP - INSTITUTIONAL CLASS: FMR Corp., Boston, MA
(39.94%); Charles Schwab and Co., Inc., San Francisco, CA (21.21%); Union
Planters National Bank, Memphis, TN (13.71%); First Hawaiian Bank,
Honolulu, HI (8.16%).
ADVISOR MID CAP - CLASS A: PaineWebber, Inc., Weehawken, NJ (7.88%);
Smith Barney, New York, NY (6.50%); A. G. Edwards & Sons, St. Louis, MO
(6.15%); First Tennessee Bank, Memphis, TN (5.38%).
A DVISOR MID CAP - CLASS T: Commonwealth Equity Services, Waltham, MA
(8.26%); Dain Bosworth, Inc., Minneapolis, MN (7.29%); Smith Barney, New
York, NY (6.22%); Donaldson, Lufkin & Jenrette, New York, NY (5.64%).
ADVISOR MID CAP - CLASS B: Dain Bosworth, Inc., Minneapolis, MN
(15.26%); Merrill Lynch Pierce Fenner & Smith, Jacksonville, FL (8.41%);
Smith Barney, New York, NY (7.59%).
ADVISOR MID CAP - INSTITUTIONAL CLASS: First Hawaiian Bank,
Honolulu, HI (71.21%).
ADVISOR MORTGAGE SECURITIES - CLASS A: CIGNA, Hartford, CT (94.86%);
FMR Corp., Boston, MA (6.77%).
ADVISOR MORTGAGE SECURITIES - CLASS T: Sunamerica Securities, Inc.,
Phoenix, AZ (64.26%); FMR Corp., Boston, MA (16.93%); Donaldson, Lufkin &
Jenrette, New York, NY (11.07%); First Heartland Capital, Quincy, IL
(5.35%).
ADVISOR MORTGAGE SECURITIES - CLASS B: 1717 Capital Management
Company, Newark, DE (42.51%); FMR Corp., Boston, MA (20.26%); Washington
Square Securities, Minneapolis, MN (20.10%).
ADVISOR MORTGAGE SECURITIES - INSTITUTIONAL CLASS : FMR Corp.,
Boston, MA (11.29%).
ADVISOR MORTGAGE SECURITIES - INITIAL CLASS : National
Financial Services Corporation, Boston, MA (13.26%).
ADVISOR MUNICIPAL BOND - CLASS A: Sigma Financial Corp., Ann Arbor,
MI (71.64%); FMR Corp., Boston, MA (20.18%); PaineWebber, Inc., Weehawken,
NJ (7.04%).
ADVISOR MUNICIPAL BOND - CLASS T: 1717 Capital Management Company,
Newark, DE (17.82%); FSC Securities Corp., Atlanta, GA (15.26%); Jefferson
Pilot Investor Services, Greensboro, NC (11.52%); A. G. Edwards & Sons, St.
Louis, MO (8.96%); Donaldson, Lufkin & Jenrette, New York, NY (8.35%);
Lovell, Inc., Brentwood, TN (6.92%); KMS Financial Services, Inc., Seattle,
WA (5.31%).
ADVISOR MUNICIPAL BOND - CLASS B: Prudential Securities, New York,
NY (20.58%); FMR Corp., Boston, MA (11.79%); Dain Bosworth, Inc.,
Minneapolis, MN (11.64%); Investment Advisors & Consultants, Inc., Ocean,
NJ (9.21%); Bank One, N.A., Columbus, OH (6.12%); John Hancock
Distributors, Boston, MA (5.85%); Associated Investments Services, Inc.,
Portage, WI (5.64%).
ADVISOR MUNICIPAL BOND - INSTITUTIONAL CLASS: Drovers Bank, York, PA
(46.61%); Peoples Bank and Trust Co., Indianapolis, IN (26.40%); Premier
Bank and Trust, Elyria, OH (11.26%); FMR Corp., Boston, MA (8.23%).
ADVISOR NEW YORK MUNICIPAL INCOME - CLASS A: FMR Corp., Boston, MA
(52.77%); PaineWebber, Inc., Weehawken, NJ (38.22%); A. G. Edwards & Sons,
St. Louis, MO (6.55%).
ADVISOR NEW YORK MUNICIPAL INCOME - CLASS T: FMR Corp., Boston, MA
(18.55%); A. G. Edwards & Sons, St. Louis, MO (11.27%); North Ridge
Securities Corp., Hauppauge, NY (10.71%); First Albany, Albany, NY (7.03%);
HRC Services, Inc., Glenwood Landing, NY (5.46%).
ADVISOR NEW YORK MUNICIPAL INCOME - CLASS B: FMR Corp., Boston, MA
(23.60%); Chase Investment Services, New York, NY (16.26%); National
Financial Services Corporation, Boston, MA (16.21%); Prudential Securities,
New York, NY (11.11%); Merrill Lynch Pierce Fenner & Smith, Jacksonville,
FL (5.24%).
ADVISOR NEW YORK MUNICIPAL INCOME - INSTITUTIONAL CLASS: FMR Corp.,
Boston, MA (106.39%).
ADVISOR OVERSEAS - CLASS A: EQ Financial Consultants, New York, NY
(9.19%); Chase Investment Services, New York, NY (6.50%); PaineWebber,
Inc., Weehawken, NJ (6.06%).
ADVISOR OVERSEAS - CLASS T: Great West Life/Benefits Corp.,
Englewood, CO (7.56%); Smith Barney, New York, NY (7.22%).
ADVISOR OVERSEAS - CLASS B: Royal Alliance Assoc., Inc., Birmingham,
AL (6.60%); PaineWebber, Inc., Weehawken, NJ (6.57%); Smith Barney, New
York, NY (6.54%); Merrill Lynch Pierce Fenner & Smith, Jacksonville, FL
(5.71%).
ADVISOR OVERSEAS - INSTITUTIONAL CLASS: First National Bank, Iowa
City, IA (24.65%); Bingham, Dana & Gould L.L.P., Boston, MA (13.34%); First
Hawaiian Bank, Honolulu, HI (9.37%); One Valley Bank, N.A., Charleston, WV
(5.98%).
ADVISOR SHORT FIXED-INCOME - CLASS A: A. G. Edwards & Sons, St.
Louis, MO (19.35%); FMR Corp., Boston, MA (13.04%); Corelink Financial,
Providence, RI (6.12%); Harbour Investments, Inc., Madison, WI (6.04%);
Terra Securities Corp., Oak Brook, IL (5.90%).
ADVISOR SHORT FIXED-INCOME - CLASS T: Smith Barney, New York, NY
(6.37%); Royal Alliance Assoc., Inc., Birmingham, AL (5.55%).
ADVISOR SHORT FIXED-INCOME - INSTITUTIONAL CLASS: First Hawaiian
Bank, Honolulu, HI (57.10%); First National Bank of Springfield,
Springfield, IL (17.54%); Benefit Services Corporation, Atlanta, GA
(12.45%).
ADVISOR SHORT-INTERMEDIATE MUNICIPAL INCOME - CLASS A: FMR Corp.,
Boston, MA (51.72%); Investment Advisors & Consultants, Inc., Ocean, NJ
(16.09%); Chase Manhattan Bank, N.A., Rochester, NY (5.97%).
ADVISOR SHORT-INTERMEDIATE MUNICIPAL INCOME - CLASS T: Key/Society
Corp., Cleveland, OH (17.63%); Cowles, Sabol & Co., Inc., Encino, CA
(8.43%).
ADVISOR SHORT-INTERMEDIATE MUNICIPAL INCOME - INSTITUTIONAL CLASS:
University Bank, Houston, TX (22.34%); FMR Corp., Boston, MA (21.84%);
First American Bank & Trust, Fort Atkinson, WI (19.58%); Peoples Bank and
Trust Co., Indianapolis, IN (12.83%); Drovers Bank, York, PA (11.06%).
ADVISOR STRATEGIC INCOME - CLASS A: FIS Securities, Inc.,
Providence, RI (33.50%); FMR Corp., Boston, MA (7.83%); Terra Securities
Corp., Oak Brook, IL (7.10%); PaineWebber, Inc., Weehawken, NJ (5.05%).
ADVISOR STRATEGIC INCOME - CLASS T : Royal Alliance Assoc., Inc.,
Birmingham, AL (7.76%); Donaldson Lufkin & Jenrette, New York, NY (7.35%);
Financial Network Investment Corp., Torrance, CA (5.08%).
ADVISOR STRATEGIC INCOME - CLASS B: G W & Wade Asset Management Co.,
Wellesley, MA (33.18%); FIS Securities, Inc., Providence, RI (6.02%).
ADVISOR STRATEGIC INCOME - INSTITUTIONAL CLASS: Charles Schwab and
Co., Inc., San Francisco, CA (88.97%); Bingham, Dana & Gould L.L.P.,
Boston, MA (5.04%).
ADVISOR STRATEGIC OPPORTUNITIES - CLASS A: FMR Corp., Boston, MA
(14.26%); A. G. Edwards & Sons, St. Louis, MO (12.69%); Stephens, Inc.,
Little Rock, AR (5.42%).
ADVISOR STRATEGIC OPPORTUNITIES - CLASS T: Merrill Lynch Pierce
Fenner & Smith, Jacksonville, FL (12.63%); CIGNA, Hartford, CT (10.43%); A.
G. Edwards & Sons, St. Louis, MO (6.42%); Smith Barney, New York, NY
(5.09%).
ADVISOR STRATEGIC OPPORTUNITIES - CLASS B: Donaldson, Lufkin &
Jenrette, New York, NY (6.38%); Smith Barney, New York, NY (6.37%).
ADVISOR STRATEGIC OPPORTUNITIES - INSTITUTIONAL CLASS: National Bank
of Alaska, Anchorage, AK (18.50%); Evergreen Bank, N.A., Glens Falls, NY
(15.96%); Whitney National Bank, New Orleans, LA (11.31%); Equitable Trust
Company, Nashville, TN (10.21%); First Tennessee Bank, Memphis, TN
(10.12%); Thumb National Bank and Trust, Pigeon, MI (6.13%); Commonwealth
Equity Services, Waltham, MA (5.60%).
A shareholder owning of record or beneficially more than 25% of a fund's
outstanding shares may be considered a controlling person. That
shareholder's vote could have a more significant effect on matters
presented at a shareholders' meeting than votes of other shareholders.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND IN THE
"MANAGEMENT CONTRACT" SECTION ON PAGE 136.
FMR is each fund's manager pursuant to management contracts dated and
approved by shareholders on the dates shown in the table below.
<TABLE>
<CAPTION>
<S> <C> <C>
FUND DATE OF MANAGEMENT CONTRACT DATE OF SHAREHOLDER APPROVAL
TechnoQuant Growth 12/1/96 12/23/96*
Overseas 1/1/93 12/1/92
Mid Cap 1/18/96 1/18/96*
Equity Growth 12/1/90 11/14/90
Growth Opportunities 1/1/95 12/14/94
Strategic Opportunities 7/1/97 6/18/97
Large Cap 1/18/96 1/18/96*
Growth & Income 12/1/96 12/23/96*
Equity Income 8/1/86 7/23/86
Balanced 1/1/95 12/14/94
Emerging Markets Income 7/1/97 6/18/97
High Yield 1/1/95 12/14/94
Strategic Income 7/1/97 6/18/97
Mortgage Securities 8/1/94 7/13/94
Government Investment 1/1/95 12/14/94
Intermediate Bond 1/1/95 12/14/94
Short Fixed-Income 1/1/95 12/14/94
High Income Municipal 12/1/94 11/16/94
Municipal Bond 1/1/94 12/15/93
Intermediate Municipal Income 7/1/95 6/14/95
Short-Intermediate Municipal Income 7/1/95 6/14/95
New York Municipal Income 11/17/94 12/8/94
California Municipal Income 12/14/95 12/14/95*
</TABLE>
* Approved by FMR, then the sole shareholder of the fund.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND IN THE
"MANAGEMENT CONTRACT" SECTION ON PAGE 139.
CALIFORNIA MUNICIPAL INCOME, STRATEGIC INCOME AND EMERGING MARKETS
INCOME. The following fee schedule is the current fee schedule for
California Municipal Income, Strategic Income and Emerging Markets
Income.
GROUP FEE RATE SCHEDULE EFFECTIVE ANNUAL FEE RATES
Average Group Annualized Group Net Effective Annual
Assets Rate Assets Fee Rate
$ 0 - $3 billion .3700% $ 0.5 billion .3700%
3 - 6 .3400 25 .2664
6 - 9 .3100 50 .2188
9 - 12 .2800 75 .1986
12 - 15 .2500 100 .1869
15 - 18 .2200 125 .1793
18 - 21 .2000 150 .1736
21 - 24 .1900 175 .1690
24 - 30 .1800 200 .1652
30 - 36 .1750 225 .1618
36 - 42 .1700 250 .1587
42 - 48 .1650 275 .1560
48 - 66 .1600 300 .1536
66 - 84 .1550 325 .1514
84 - 120 .1500 350 .1494
120 - 156 .1450 375 .1476
156 - 192 .1400 400 .1459
192 - 228 .1350 425 .1443
228 - 264 .1300 450 .1427
264 - 300 .1275 475 .1413
300 - 336 .1250 500 .1399
336 - 372 .1225 525 .1385
372 - 408 .1200 550 .1372
408 - 444 .1175
444 - 480 .1150
480 - 516 .1125
Over 516 .1100
This fee schedule has been approved by the shareholders of California
Municipal Income, Strategic Income, and Emerging Markets Income.
TECHNOQUANT GROWTH, MID CAP, LARGE CAP, GROWTH & INCOME AND STRATEGIC
OPPORTUNITIES. The following fee schedule is the current fee schedule
for TechnoQuant Growth, Mid Cap, Large Cap, Growth & Income and Strategic
Opportunities.
GROUP FEE RATE SCHEDULE EFFECTIVE ANNUAL FEE RATES
Average Group Annualized Group Net Effective Annual
Assets Rate Assets Fee Rate
$ 0 - 3 billion .5200% $ 0.5 billion .5200%
3 - 6 .4900 25 .4238
6 - 9 .4600 50 .3823
9 - 12 .4300 75 .3626
12 - 15 .4000 100 .3512
15 - 18 .3850 125 .3430
18 - 21 .3700 150 .3371
21 - 24 .3600 175 .3325
24 - 30 .3500 200 .3284
30 - 36 .3450 225 .3249
36 - 42 .3400 250 .3219
42 - 48 .3350 275 .3190
48 - 66 .3250 300 .3163
66 - 84 .3200 325 .3137
84 - 102 .3150 350 .3113
102 - 138 .3100 375 .3090
138 - 174 .3050 400 .3067
174 - 210 .3000 425 .3046
210 - 246 .2950 450 .3024
246 - 282 .2900 475 .3003
282 - 318 .2850 500 .2982
318 - 354 .2800 525 .2962
354 - 390 .2750 550 .2924
390 - 426 .2700
426 - 462 .2650
462 - 498 .2600
498 - 534 .2550
Over 534 .2500
THIS FEE SCHEDULE HAS BEEN APPROVED BY SHAREHOLDERS OF STRATEGIC
OPPORTUNITIES FUND.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND IN THE
"COMPUTING THE PERFORMANCE ADJUSTMENT" SECTION ON PAGE 145.
COMPUTING THE PERFORMANCE ADJUSTMENT. The basic fee for Overseas,
Growth Opportunities and Strategic Opportunities is subject to upward or
downward adjustment, depending upon whether, and to what extent, the
investment performance of each applicable fund for the performance period
exceeds, or is exceeded by, the record of the S&P 500 (Growth Opportunities
and Strategic Opportunities), or the cap-weighted EAFE (Overseas) (the
Indices) over the same period. The performance period consists of the most
recent month plus the previous 35 months. Each percentage point of
difference, calculated to the nearest 1.0% for Growth Opportunities and
Overseas, and 0.01% for Strategic Opportunities (up to a maximum difference
of (plus/minus)10.00) is multiplied by a performance adjustment rate of
0.02%. Thus, the maximum annualized adjustment rate is (plus/minus)0.20%.
This performance comparison is made at the end of each month. One-twelfth
of this rate is then applied to each fund's average net assets for the
entire performance period, giving the dollar amount which will be added to
(or subtracted from) the basic fee. For Growth Opportunities and Overseas
investment performance will be measured separately for each class of shares
offered by that fund and the least of the results obtained will be used in
calculating the performance adjustment to the management fee paid by the
fund. For Strategic Opportunities investment performance will be
represented by the average performance of all classes of the fund weighted
according to their average assets for each month.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND IN THE
"SUB-ADVISERS" SECTION ON PAGE 148.
On behalf of TechnoQuant Growth, Overseas, Mid Cap, Growth
Opportunities, Strategic Opportunities, Large Cap, Growth & Income,
Balanced, Emerging Markets Income, High Yield, Strategic Income,
Intermediate Bond, Mortgage Securities, and Short Fixed-Income FMR may also
grant FMR U.K. and FMR Far East investment management authority as well as
the authority to buy and sell securities if FMR believes it would be
beneficial to the funds.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND IN THE
"DISTRIBUTION AND SERVICE PLANS" SECTION ON PAGE 152.
Pursuant to the Class A Plans, FDC is paid a distribution fee as a
percentage of Class A's average net assets at an annual rate of up to 0.75%
for each of TechnoQuant Growth, Overseas, Mid Cap, Equity Growth, Growth
Opportunities, Strategic Opportunities, Large Cap, Growth & Income, Equity
Income, and Balanced (the Equity Funds); and up to 0.40% for each of
Emerging Markets Income, High Yield, Strategic Income, Government
Investment, Mortgage Securities, High Income Municipal, Municipal Bond, New
York Municipal Income, and California Municipal Income (the Bond Funds),
Intermediate Bond and Intermediate Municipal Income (the Intermediate-Term
Bond Funds), and Short-Intermediate Municipal Income and Short Fixed-Income
(the Short-Term Bond Funds). Pursuant to the Class T Plans, FDC is paid a
distribution fee as a percentage of Class T's average net assets at an
annual rate of up to 0.75% for each of TechnoQuant Growth, Equity Growth,
Mid Cap, Large Cap, Growth & Income, and Equity Income; up to 0.65% for
each of Overseas, Growth Opportunities, Strategic Opportunities, and
Balanced; up to 0.40% for each of Emerging Markets Income, High Yield,
Strategic Income, Intermediate Bond, Mortgage Securities, Government
Investment, High Income Municipal, Municipal Bond, Short-Intermediate
Municipal Income, Intermediate Municipal Income, New York Municipal Income,
and California Municipal Income; and up to 0.15% for Short Fixed-Income.
Pursuant to the Class B Plans, FDC is paid a distribution fee as a
percentage of Class B's average net assets at an annual rate of up to 0.75%
for each fund with Class B shares. For the purpose of calculating the
distribution fees, average net assets are determined at the close of
business on each day throughout the month, but excluding assets
attributable to Class T shares of Equity Growth, Equity Income, and
Overseas purchased more than 144 months prior to such day and to Class B
shares of Equity Income purchased more than 144 months prior to such day.
Currently, the Trustees have approved a distribution fee for Class A at an
annual rate of 0.25% for each of the Equity Funds and 0.15% for each of the
Bond Funds, the Intermediate-Term Bond Funds, and the Short-Term Bond
Funds. Currently, the Trustees have approved a distribution fee for Class T
at an annual rate of 0.50% for each of the Equity Funds; 0.25% for each of
the Bond Funds and the Intermediate-Term Bond Funds; and 0.15% for each of
the Short-Term Bond Funds. Currently, the Trustees have approved a
distribution fee for Class B at an annual rate of 0.75% for each of the
Equity Funds and 0.65% for each of the Bond Funds and the Intermediate-Term
Bond Funds. These fee rates may be increased only when, in the opinion of
the Trustees, it is in the best interests of the shareholders of the
applicable class to do so. Class B of each fund also pays investment
professionals a service fee at an annual rate of 0.25% of its average daily
net assets determined at the close of business on each day throughout the
month for personal service and/or the maintenance of shareholder
accounts.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND IN THE "VOTING
RIGHTS" SECTION ON PAGE 159.
VOTING RIGHTS. Each fund's capital consists of shares of
beneficial interest. The shares have no preemptive rights, and Class A,
Class T, Institutional Class, and Initial Class shares have no conversion
rights; the voting and dividend rights, the conversion rights of Class B
shares, the right of redemption, and the privilege of exchange are
described in the Prospectus. Shareholders of Growth Opportunities,
Strategic Opportunities, Equity Income, Emerging Markets Income, Balanced,
High Yield, Strategic Income, Mortgage Securities, Government Investment,
Intermediate Bond, Short Fixed-Income, High Income Municipal, Municipal
Bond, Intermediate Municipal Income, Short-Intermediate Municipal Income,
New York Municipal Income, and California Municipal Income receive one vote
for each dollar of net asset value owned. Shares are fully paid and
nonassessable, except as set forth under the heading "Shareholder and
Trustee Liability" above. Shareholders representing 10% or more of a trust,
a fund, or class of a fund may, as set forth in the Declaration of Trust,
call meetings of the trust, fund or class, as applicable, for any purpose
related to the trust, fund, or class, as the case may be, including, in the
case of a meeting of an entire trust, the purpose of voting on removal of
one or more Trustees. Each trust or fund may be terminated upon the sale of
its assets to another open-end management investment company, or upon
liquidation and distribution of its assets, if approved by vote of the
holders of a majority of the outstanding shares of the funds of Fidelity
Advisor Series I, and VII, or as determined by the current value of each
shareholder's investment in the funds of Fidelity Advisor Series II, III,
IV, V, VI, and VIII,- Fidelity Municipal Trust, and Fidelity Income Fund.
If not so terminated, each trust and fund will continue indefinitely.
Growth Opportunities, Strategic Opportunities, Balanced, Emerging Markets
Income, High Yield, Strategic Income, Government Investment, Intermediate
Bond, Short Fixed-Income, High Income Municipal, California Municipal
Income, New York Municipal Income, Mid Cap, Large Cap, Mortgage Securities,
TechnoQuant Growth, Growth & Income, Intermediate Municipal Income, and
Short-Intermediate Municipal Income may invest all of their assets in
another investment company.
SUPPLEMENT TO FIDELITY ADVISOR FOCUS FUNDS: CLASS A, CLASS T, CLASS B, AND
INSTITUTIONAL CLASS
STATEMENT OF ADDITIONAL INFORMATION
DATED MARCH 24, 1997
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND IN "INVESTMENT
POLICIES AND LIMITATIONS" BEGINNING ON PAGE 8.
THE FOLLOWING ARE THE FUNDAMENTAL INVESTMENT LIMITATIONS FOR NATURAL
RESOURCES FUND SET FORTH IN THEIR ENTIRETY. THE FUND MAY NOT:
(1) issue senior securities, except as permitted under the Investment
Company Act of 1940;
(2) borrow money, except that the fund may borrow money for temporary or
emergency purposes (not for leveraging or investment) in an amount not
exceeding 33 1/3% of its total assets (including the amount borrowed) less
liabilities (other than borrowings). Any borrowings that come to exceed
this amount will be reduced within three days (not including Sundays and
holidays) to the extent necessary to comply with the 33 1/3% limitation;
(3) underwrite securities issued by others, except to the extent that the
fund may be considered an underwriter within the meaning of the Securities
Act of 1933 in the disposition of restricted securities;
(4) purchase the securities of any issuer if, as a result, less than 25% of
the fund's total assets would be invested in the securities of issuers
principally engaged in the business activity of the industries in the
natural resources sector;
(5) purchase or sell real estate unless acquired as a result of ownership
of securities or other instruments (but this shall not prevent the fund
from investing in securities or other instruments backed by real estate or
securities of companies engaged in the real estate business); or
(6) lend any security or make any other loan if, as a result, more than 33
1/3% of its total assets would be lent to other parties, but this
limitation does not apply to purchases of debt securities or to repurchase
agreements.
(7) The fund may, notwithstanding any other fundamental investment policy
or limitation, invest all of its assets in the securities of a single
open-end management investment company with substantially the same
fundamental investment objective, policies, and limitations as the fund.
THE FOLLOWING LIMITATIONS FOR NATURAL RESOURCES FUND ARE NOT
FUNDAMENTAL AND MAY BE CHANGED WITHOUT SHAREHOLDER APPROVAL.
(i) In order to qualify as a "regulated investment company" under
Subchapter M of the Internal Revenue Code of 1986, as amended, the fund
currently intends to comply with certain diversification limits imposed by
Subchapter M.
(ii) The fund does not currently intend to sell securities short, unless it
owns or has the right to obtain securities equivalent in kind and amount to
the securities sold short, and provided that transactions in futures
contracts and options are not deemed to constitute selling securities
short.
(iii) The fund does not currently intend to purchase securities on margin,
except that the fund may obtain such short-term credits as are necessary
for the clearance of transactions, and provided that margin payments in
connection with futures contracts and options on futures contracts shall
not constitute purchasing securities on margin.
(iv) The fund does not currently intend to hedge more than 40% of its total
assets with short sales against the box under normal conditions.
(v) The fund may borrow money only (a) from a bank or from a registered
investment company or portfolio for which FMR or an affiliate serves as
investment adviser or (b) by engaging in reverse repurchase agreements with
any party (reverse repurchase agreements are treated as borrowings for
purposes of fundamental investment limitation (2)). The fund will not
purchase any security while borrowings representing more than 5% of its
total assets are outstanding. The fund will not borrow from other funds
advised by FMR or its affiliates if total outstanding borrowings
immediately after such borrowing would exceed 15% of the fund's total
assets.
(vi) The fund does not currently intend to purchase any security if, as a
result, more than 10% of its net assets would be invested in securities
that are deemed to be illiquid because they are subject to legal or
contractual restrictions on resale or because they cannot be sold or
disposed of in the ordinary course of business at approximately the prices
at which they are valued.
(vii) The fund does not currently intend to invest in physical commodities
other than precious metals (i.e., gold, palladium, platinum and silver) and
it intends to limit such investments to not more than 25% of the fund's
total assets. The fund may receive no more than 10% of its yearly income
from gains resulting from selling metals or any other physical commodity.
(viii) The fund does not currently intend to lend assets other than
securities to other parties, except by (a) lending money (up to 5% of the
fund's net assets) to a registered investment company or portfolio for
which FMR or an affiliate serves as investment adviser or (b) acquiring
loans, loan participations, or other forms of direct debt instruments and,
in connection therewith, assuming any associated unfunded commitments of
the sellers. (This limitation does not apply to purchases of debt
securities or to repurchase agreements.)
(ix) The fund does not currently intend to invest all of its assets in the
securities of a single open-end management investment company with
substantially the same fundamental investment objective, policies, and
limitations as the fund.
Subchapter M generally requires the fund to invest no more than 25% of its
total assets in securities of any one issuer and to invest at least 50% of
its total assets so that no more than 5% of the fund's total assets are
invested in securities of any one issuer. However, Subchapter M allows
unlimited investments in cash, cash items, government securities (as
defined in Subchapter M) and securities of other investment companies.
These tax requirements are generally applied at the end of each quarter of
the fund's taxable year.
For purposes of limitation (4), FMR considers an issuer to be principally
engaged in a business activity normally based on standard industry
classifications published by the U.S. Government. However, FMR may consider
an issuer to be principally engaged in a business activity if at least 50%
of its assets, gross income, or net profits are committed to, or derived
from, that activity.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND IN
"PERFORMANCE" ON PAGE 21.
1 Average annual and cumulative total returns for Class A shares include
the effect of paying Class A's maximum applicable front-end sales charge of
5.25%. EFFECTIVE AUGUST 1, 1997, Natural Resources' Class A maximum
front-end sales charge increases to 5.75%. As the case may be, the Class A
total returns herein reflect the Class A shares maximum front-end sales
charge as in effect through July 31, 1997. Average annual and cumulative
total returns for Class T shares include the effect of paying Class T's
maximum applicable front-end sales charge of 3.50%. Average annual and
cumulative total returns for Class B shares include the effect of paying
Class B's CDSC upon redemption based on the following schedule: one year or
less, 5%; greater than one year to two years, 4%; greater than 2 years to
four years, 3%; greater than four years to five years, 2%; greater than
five years to six years, 1%; greater than six years, 0%. Initial offering
of Class A shares took place on September 3, 1996. Returns prior to that
date are those of Class T, the original class of the fund, and reflect
Class T's 0.50% 12b-1 fee (0.65% prior to January 1, 1996). Initial
offering of Institutional Class took place on July 3, 1995. Institutional
Class shares do not bear a sales load or 12b-1 fee. Returns prior to July
3, 1995 are those of Class T, the original class of the fund and include a
Class T 12b-1 fee (at a then currently applicable rate of 0.65%). Class B
returns prior to July 3, 1995 are those of Class T shares and include the
applicable Class T 12b-1 fees discussed above.
THE FOLLOWING INFORMATION SUPPLEMENTS INFORMATION FOUND IN "ADDITIONAL
PURCHASE, EXCHANGE, AND REDEMPTION INFORMATION" ON PAGE 25.
CLASS A SHARES ONLY
Pursuant to Rule 22d-1 under the 1940 Act, FDC exercises its right to
waive Class A's maximum 5.25% front-end sales charge in connection with a
fund's merger with or acquisition of any investment company or trust.
EFFECTIVE AUGUST 1, 1997, Class A's maximum front-end sales charge
increases to 5.75%. In addition, FDC has chosen to waive Class A's
front-end sales charge in certain instances because of efficiencies
involved in those sales of shares. The sales charge will not apply:
1. to shares purchased by an insurance company separate account used to
fund annuity contracts purchased by employee benefit plans (including
403(b) programs, but otherwise as defined in ERISA), which, in the
aggregate, have either more than 200 eligible employees or a minimum of
$1,000,000 in assets invested in Fidelity Advisor funds;
2. to shares purchased by a trust institution or bank trust department
(excluding employee benefit plan assets) that has executed a participation
agreement with FDC specifying certain asset minimums and qualifications,
and marketing restrictions. Assets managed by third parties do not qualify
for this waiver;
3. to shares purchased for use in a broker-dealer managed account program,
provided the broker-dealer has executed a participation agreement with FDC
specifying certain asset minimums and qualifications, and marketing,
program and trading restrictions. Employee benefit plan assets do not
qualify for this waiver;
4. to shares purchased on a discretionary basis by a registered investment
adviser which is not part of an organization primarily engaged in the
brokerage business, that has executed a participation agreement with FDC
specifying certain asset minimums and qualifications, and marketing,
program and trading restrictions. Employee benefit plan assets do not
qualify for this waiver; or
5. EFFECTIVE AUGUST 1, 1997, to shares purchased by an employee
benefit plan having $25 million or more in plan assets.
For the purpose of load waiver (3), certain broker-dealers that otherwise
meet the qualifications and asset minimums established by FDC are not
required to sign a participation agreement.
A sales load waiver form must accompany these transactions.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND IN "ADDITIONAL
PURCHASE, EXCHANGE, AND REDEMPTION INFORMATION" ON PAGE 26.
CLASS B SHARES ONLY
The contingent deferred sales charge (CDSC) on Class B shares may be waived
(1) in the case of disability or death, provided that Class B shares are
redeemed within one year following the death or the initial determination
of disability; (2) in connection with a total or partial redemption related
to certain distributions from retirement plans or accounts at age 70 1/2,
which are permitted without penalty pursuant to the Internal Revenue Code;
or (3) in connection with redemptions through the Fidelity Advisor
Systematic Withdrawal Program.
A sales load waiver form must accompany these transactions.
EFFECTIVE AUGUST 1, 1997, THE FOLLOWING INFORMATION REPLACES
SIMILAR INFORMATION FOUND IN "ADDITIONAL PURCHASE, EXCHANGE, AND REDEMPTION
INFORMATION" ON PAGE 26.
FINDERS FEE. On eligible purchases of (i) Class A shares in amounts
of $1 million or more that qualify for a Class A load waiver, (ii) Class A
shares in amounts of $25 million or more, and (iii) Class T shares in
amounts of $1 million or more, investment professionals will be compensated
with a fee of 0.25%. Class A eligible purchases are the following purchases
made through broker-dealers and banks: an individual trade of $25 million
or more; an individual trade of $1 million or more that is load waived; a
trade which brings the value of the accumulated account(s) of an investor
(including an employee benefit plan) past $25 million; a load waived trade
that brings the value of the accumulated account(s) of an investor
(including an employee benefit plan) past $1 million; a trade for an
investor with an accumulated account value of $25 million or more; a load
waived trade for an investor with an accumulated account value of $1
million or more; an incremental trade toward an investor's $25 million
"Letter of Intent"; and an incremental load waived trade toward an
investor's $1 million "Letter of Intent." Class T eligible purchases are
the following purchases made through broker-dealers and banks: an
individual trade of $1 million or more; a trade which brings the value of
the accumulated account(s) of an investor (including an employee benefit
plan) past $1 million; a trade for an investor with an accumulated account
value of $1 million or more; and an incremental trade toward an investor's
$1 million "Letter of Intent."
Any assets in relation to which an investment professional has received
such compensation will bear a contingent deferred sales charge (Class A or
Class T CDSC) if they do not remain in Class A or Class T shares of the
Fidelity Advisor Funds, Daily Money Class (formerly Initial Class) shares
of Treasury Fund (formerly Daily Money Fund: U.S. Treasury Portfolio),
Prime Fund (formerly Daily Money Fund: Money Market Portfolio), or shares
of Tax-Exempt Fund (formerly Daily Tax-Exempt Money Fund), for a period of
at least one uninterrupted year. The Class A or Class T CDSC will be 0.25%
of the lesser of the cost of the shares at the initial date of purchase or
the value of the shares at redemption, not including any reinvested
dividends or capital gains. Class A or Class T CDSC shares representing
reinvested dividends or capital gains, if any, will be redeemed first,
followed by other Class A or Class T CDSC shares that have been held for
the longest period of time.
With respect to employee benefit plans, the Class A or Class T CDSC does
not apply to the following types of redemptions: (i) plan loans or
distributions or (ii) exchanges to non-Advisor fund investment options.
With respect to Individual Retirement Accounts, the Class A or Class T CDSC
does not apply to redemptions made for disability, payment of death
benefits, or required partial distributions starting at age 70 1/2.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND IN "ADDITIONAL
PURCHASE, EXCHANGE, AND REDEMPTION INFORMATION" ON PAGE 27.
CLASS A, CLASS T, CLASS B, AND INSTITUTIONAL CLASS SHARES ONLY
FIDELITY ADVISOR SYSTEMATIC WITHDRAWAL PROGRAM. If you own Class A, Class
T, or Institutional Class shares worth $10,000 or more, you can have
monthly, quarterly or semi-annual checks sent from your account to you, to
a person named by you, or to your bank checking account. If you own Class B
shares worth $10,000 or more you can have monthly or quarterly checks sent
from your account to you, to a person named by you, or to your bank
checking account. Aggregate redemptions per 12-month period from your Class
B account may not exceed 10% of the value of the account and are not
subject to a CDSC; and you may set your withdrawal amount as a percentage
of the value of your account or a fixed dollar amount. Your Systematic
Withdrawal Program payments are drawn from Class A, Class T, Class B, or
Institutional Class share redemptions, as applicable. If Systematic
Withdrawal Plan redemptions exceed income dividends earned on your shares,
your account eventually may be exhausted.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND IN "TRUSTEES
AND OFFICERS" BEGINNING ON PAGE 29.
The Trustees and executive officers of the trust are listed below. Except
as indicated, each individual has held the office shown or other offices in
the same company for the last five years. All persons named as Trustees
also serve in similar capacities for other funds advised by FMR. The
business address of each Trustee and officer who is an "interested person"
(as defined in the Investment Company Act of 1940) is 82 Devonshire Street,
Boston, Massachusetts 02109, which is also the address of FMR. The business
address of all the other Trustees is Fidelity Investments, P.O. Box 9235,
Boston, Massachusetts 02205-9235. Those Trustees who are "interested
persons" by virtue of their affiliation with either the trust or FMR are
indicated by an asterisk (*).
ROBERT M. GATES (53), Trustee (1997), is a consultant, author, and lecturer
(1993). Mr. Gates was Director of the Central Intelligence Agency (CIA)
from 1991-1993. From 1989 to 1991, Mr. Gates served as Assistant to the
President of the United States and Deputy National Security Advisor. Mr.
Gates is currently a Trustee for the Forum For International Policy, a
Board Member for the Virginia Neurological Institute, and a Senior Advisor
of the Harvard Journal of World Affairs. In addition, Mr. Gates also serves
as a member of the corporate board for Lucas Varity PLC (automotive
components and diesel engines), Charles Stark Draper Laboratory
(non-profit), NACCO Industries, Inc. (mining and manufacturing), and TRW
Inc. (original equipment and replacement products). Mr. Gates currently
serves as a Trustee for the following trust: Fidelity Advisor Series V.
WILLIAM O. McCOY (63) Trustee (1997), is the Vice President of Finance for
the University of North Carolina (16-school system, 1995). Prior to his
retirement in December 1994, Mr. McCoy was Vice Chairman of the Board of
BellSouth Corporation (telecommunications, 1984) and President of BellSouth
Enterprises (1986). He is currently a Director of Liberty Corporation
(holding company, 1984), Weeks Corporation of Atlanta (real estate, 1994),
Carolina Power and Light Company (electric utility, 1996) and the Kenan
Transport Co. (1996). Previously, he was a Director of First American
Corporation (bank holding company, 1979-1996). In addition, Mr. McCoy
serves as a member of the Board of Visitors for the University of North
Carolina at Chapel Hill (1994) and for the Kenan-Flager Business School
(University of North Carolina at Chapel Hill, 1988). Mr. McCoy currently
serves as a Trustee for the following trust: Fidelity Advisor Series V.
The following table sets forth information describing the compensation of
each Trustee of each fund for his or her services as trustee for each fund
for its most recent fiscal year end.
COMPENSATION TABLE
<TABLE>
<CAPTION>
<S><C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Aggregate Compensation from
J. Gary Ralph Phyllis Richard Edward E. Donald Peter S. William Gerald Edward Marvin Thomas
a FundA
Burkhea F. Cox Burke J. Bradley J. Kirk Lynch O. C. H. L. Mann R.
d(double Davis Flynn Johnson C. Jones (double McCoy McDono Malone Williams
dagger) (double 3d (double dagger) (double ugh (double
dagger) dagger) dagger) dagger)
(double (double (double
dagger) dagger) dagger)
(double
dagger)
Consumer Industries*
$ 0 $ 7 $ 7 $ 0 $ 0 $ 7 $ 7 $ 0 $ 0 $ 8 $ 0 $ 7 $ 7
Cyclical Industries*
0 7 7 0 0 7 7 0 0 8 0 7 7
Financial Services*
0 9 9 0 0 9 9 0 0 11 0 9 9
Health Care*
0 16 16 0 0 16 16 0 0 20 0 16 16
Natural Resources**,B
0 152 146 187 0 147 149 0 84 148 148 148 150
Technology*
0 16 16 1 0 16 16 0 0 20 1 16 16
Utilities Growth*
0 12 12 0 0 12 12 0 0 15 0 12 12
TOTAL COMPENSATION FROM THE
0 137,700 134,700 168,000 0 134,700 136,200 0 85,333 136,200 136,200 134,700 136,200
FUND COMPLEX+,A
</TABLE>
* Estimated for the fiscal year ending July 31, 1997.
** Fiscal year ended October 31, 1996.
(double dagger) Interested Trustees of each fund are compensated by FMR.
(double dagger)(double dagger) Richard J. Flynn and Edward H. Malone served
on the Board of Trustees through December 31, 1996.
(double dagger)(double dagger)(double dagger) During the period from May 1,
1996 through December 31, 1996, William O. McCoy served as a Member of the
Advisory Board of each trust.
+ Information is for the calendar year ended December 31, 1996 for 235
funds in the complex.
A Compensation figures include cash, a pro rata portion of benefits accrued
under the retirement program for the period ended December 30, 1996 and
required to be deferred, and may include amounts deferred at the election
of Trustees.
B The following amounts are required to be deferred by each non-interested
Trustee, most of which is subject to vesting: Ralph F. Cox, $6, Phyllis
Burke Davis, $6, Richard J. Flynn, $0, E. Bradley Jones, $6, Donald J.
Kirk, $6, William O. McCoy, $0, Gerald C. McDonough, $6, Edward H. Malone,
$6, Marvin L. Mann, $6, and Thomas R. Williams, $6.
THE FOLLOWING INFORMATION REPLACES THE INFORMATION FOUND IN "MANAGEMENT
CONTRACTS" ON PAGE 33.
FMR is manager of Consumer Industries, Cyclical Industries, Financial
Services, Health Care, Technology, and Utilities Growth funds pursuant to
management contracts dated July 18, 1996, which were approved by FMR as
sole shareholder on August 30, 1996. FMR is the manager of Natural
Resources pursuant to a management contract dated July 1, 1997, which was
approved by shareholders on June 18, 1997.
The following fee schedule is the current fee schedule for each fund.
GROUP FEE RATE SCHEDULE EFFECTIVE ANNUAL FEE RATES
Average Group Annualized Group Net Effective Annual Fee
Assets Rate Assets Rate
0 - $3 billion .5200% $ 0.5 billion .5200%
3 - 6 .4900 25 .4238
6 - 9 .4600 50 .3823
9 - 12 .4300 75 .3626
12 - 15 .4000 100 .3512
15 - 18 .3850 125 .3430
18 - 21 .3700 150 .3371
21 - 24 .3600 175 .3325
24 - 30 .3500 200 .3284
30 - 36 .3450 225 .3249
36 - 42 .3400 250 .3219
42 - 48 .3350 275 .3190
48 - 66 .3250 300 .3163
66 - 84 .3200 325 .3137
84 - 102 .3150 350 .3113
102 - 138 .3100 375 .3090
138 - 174 .3050 400 .3067
174 - 210 .3000 425 .3046
210 - 246 .2950 450 .3024
246 - 282 .2900 475 .3003
282 - 318 .2850 500 .2982
318 - 354 .2800 525 .2962
354 - 390 .2750 550 .2942
390 - 426 .2700
426 - 462 .2650
462 - 498 .2600
498 - 534 .2550
Over 534 .2500
This fee schedule has been approved by the shareholders of Natural
Resources.
The individual fund fee rates for each fund are set forth in the following
chart. Based on the average group net assets of the funds advised by FMR
for January 1997, the annual management fee rate would be calculated as
follows:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Group Fee Rate Individual Fund Fee Rate Management Fee Rate
Consumer Industries .3014% + 0.30% = .6014%
Cyclical Industries .3014% + 0.30% = .6014%
Financial Services .3014% + 0.30% = .6014%
Natural Resources .3014% + 0.30% = .6014%
Health Care .3014% + 0.30% = .6014%
Technology .3014% + 0.30% = .6014%
Utilities Growth .3014% + 0.30% = .6014%
</TABLE>
SUPPLEMENT TO THE FIDELITY ADVISOR FOCUS FUNDS INSTITUTIONAL CLASS MARCH
24,1997 PROSPECTUS
The following information replaces similar information found in "Who May
Want to Invest" on page 3.
Consumer Industries, Cyclical Industries, Health Care, Natural
Resources, Technology, and Utilities Growth are non-diversified funds and
may invest a greater portion of their assets in securities of individual
issuers than diversified funds. As a result, changes in the market value of
a single issuer could cause greater fluctuations in share value than would
occur in a more diversified fund.
The following information replaces similar information found in "Who May
Want to Invest" on page 3.
Each fund is composed of multiple classes of shares. All classes of a
fund have a common investment objective and investment portfolio. Class A
and Class T shares have a front-end sales charge and pay a distribution
fee. Class T shares may be subject to a contingent deferred sales charge
(CDSC). EFFECTIVE AUGUST 1, 1997 , Class A shares may also be subject
to a CDSC. Class B shares do not have a front-end sales charge, but do have
a CDSC, and pay a distribution fee and a shareholder service fee. Because
Institutional Class shares have no sales charge, and do not pay a
distribution fee or a shareholder service fee, Institutional Class shares
are expected to have a higher total return than Class A, Class T, or Class
B shares. You may obtain more information about Class A, Class T, and Class
B shares, which are not offered through this prospectus, by calling
1-800-843-3001 or from your investment professional.
The following information replaces similar information found in "Charter"
on page 14.
EACH FUND IS A MUTUAL FUND: an investment that pools
shareholders' money and invests it toward a specified goal. Consumer
Industries, Cyclical Industries, Health Care, Technology, and Utilities
Growth are non-diversified funds and Financial Services is a diversified
fund of Fidelity Advisor Series VII, a Massachusetts business trust
organized on March 21, 1980. Natural Resources is a non-diversified fund of
Advisor Series V, a Massachusetts business trust organized on April 23,
1986. Each trust is an open-end management company. There is a remote
possibility that one fund might become liable for a misstatement in the
prospectus about another fund.
The following information replaces similar information under the heading
"FMR and Its Affiliates" in the "Charter" section on page 14.
Beso Sikharulidze is manager of Advisor Health Care, which he has managed
since June 1997. He also manages another Fidelity fund. Mr. Sikharulidze
joined Fidelity as an analyst in 1992, after receiving his MBA from Harvard
University.
The following information replaces similar information found in "Investment
Principles and Risks" section on page 15.
The funds may involve significantly greater risks and therefore may
experience greater volatility than a mutual fund that does not concentrate
its investments. Because of the funds' narrow focus, each fund's
performance is closely tied to and affected by industries within its market
sector. Companies in an industry are often faced with the same obstacles,
issues, or regulatory burdens, and their securities may react similarly and
move in unison with these or other market conditions. Also, because the
funds (except Financial Services) are non-diversified, they are further
exposed to increased volatility. Non-diversified funds may have greater
investments in a single issuer than diversified funds, so the performance
of a single issuer can have a substantial impact on a fund's share price.
Finally, the funds' strategies in seeking to achieve their investment
objectives may lead to investments in smaller companies. Securities of
smaller companies, especially those whose business involves emerging
products or concepts, may be more volatile due to their limited product
lines, markets, or financial resources, or their susceptibility to major
setbacks or downturns.
The following information replaces similar information found in the
"Securities and Investment Practices" section beginning on page 16.
EQUITY SECURITIES may include common stocks, preferred stocks,
convertible securities, and warrants. Common stocks, the most familiar
type, represent an equity (ownership) interest in a corporation. Although
equity securities have a history of long-term growth in value, their prices
fluctuate based on changes in a company's financial condition and on
overall market and economic conditions. Smaller companies are especially
sensitive to these factors.
RESTRICTIONS: With respect to 75% of its total assets, Financial
Services may not purchase more than 10% of the outstanding voting
securities of a single issuer. This limitation does not apply to securities
of other investment companies.
DIVERSIFICATION. Diversifying a fund's investment portfolio can
reduce the risks of investing. This may include limiting the amount of
money invested in any one issuer or, on a broader scale, in any one
industry. Economic, business, or political changes can affect all
securities of a similar type. A fund that is not diversified may be more
sensitive to changes in the market value of a single issuer or industry.
RESTRICTIONS: Each fund (except Financial Services) is considered
non-diversified. Generally, to meet federal tax requirements at the close
of each quarter, each fund (except Financial Services) does not invest more
than 25% of its total assets in any one issuer and, with respect to 50% of
total assets, does not invest more than 5% of its total assets in any one
issuer. With respect to 75% of its total assets, Financial Services may not
purchase a security if, as a result, more than 5% would be invested in the
securities of any one issuer. These limitations do not apply to U.S.
Government securities or to securities of other investment companies.
Each fund normally invests at least 80% of its assets, but always invests
at least 25% of its total assets, in securities of companies principally
engaged in the business activities of the industries in the market sector
identified for the fund.
The following information replaces similar information in "Fundamental
Investment Policies and Restrictions" section on page 18.
EACH FUND (except Natural Resources) seeks capital appreciation.
Each fund invests at least 25% of its total assets in securities of
companies principally engaged in the business activities of the industries
in the market sector identified for the fund.
With respect to 75% of its total assets, Financial Services may not
purchase a security if, as a result, more than 5% would be invested in the
securities of any one issuer and may not purchase more than 10% of the
outstanding voting securities of a single issuer. These limitations do not
apply to U.S. Government securities or to securities of other investment
companies.
The following information supplements the information found in "Exchange
Restrictions" on page 28.
OTHER FUNDS MAY HAVE DIFFERENT EXCHANGE RESTRICTIONS, and may impose fees
of up to 1.00% on purchases, administrative fees of up to $7.50, and
redemption fees of up to 1.50% on exchanges. Check each fund's prospectus
for details.
SUPPLEMENT TO THE FIDELITY
ADVISOR FOCUS FUNDS
CLASS A, CLASS T, AND CLASS B
MARCH 24, 1997 PROSPECTUS
The following information replaces similar information found in "Who May
Want to Invest" on page 3.
Consumer Industries, Cyclical Industries, Health Care, Natural
Resources, Technology, and Utilities Growth are non-diversified funds and
may invest a greater portion of their assets in securities of individual
issuers than diversified funds. As a result, changes in the market value of
a single issuer could cause greater fluctuations in share value than would
occur in a more diversified fund.
The following information replaces similar information found in "Who May
Want to Invest" on page 3.
Each fund is composed of multiple classes of shares. All classes of a
fund have a common investment objective and investment portfolio. Class A
and Class T shares have a front-end sales charge and pay a distribution
fee. Class T shares may be subject to a contingent deferred sales charge
(CDSC). EFFECTIVE AUGUST 1, 1997 , Class A shares may also be subject
to a CDSC. Class B shares do not have a front-end sales charge, but do have
a CDSC, and pay a distribution fee and a shareholder service fee.
Institutional Class shares have no sales charge and do not pay a
distribution fee or a shareholder service fee, but are available only to
certain types of investors. See "Sales Charge Reductions and Waivers," page
33, for Institutional Class eligibility information. You may obtain more
information about Institutional Class shares, which are not offered through
this prospectus, by calling 1-800-843-3001 or from your investment
professional.
The performance of one class of shares of a fund may be different from the
performance of another class of shares of the same fund because of
different sales charges and class expenses. Contact your investment
professional to discuss which class is appropriate for you.
In determining which class of shares is appropriate for you, you should
consider, among other factors, the amount you plan to invest, the length of
time you intend to hold your shares, your eligibility for a sales charge
waiver or reduction, and the package of services provided to you by your
investment professional and the overall costs of those services. In
general, Class A shares have higher costs than Class T shares over a short
holding period because Class A shares have a higher front-end sales charge,
and Class A shares have lower costs than Class T shares over a longer
holding period because Class A shares have lower 12b-1 fees. If you are
planning to invest a significant amount either at one time or through a
regular investment program, you should consider the reduced front-end sales
charges available on Class A and Class T shares. See "Transaction Details,"
page 30, and "Sales Charge Reductions and Waivers," page 33, for sales
charge reduction information. If you are eligible for a front-end sales
charge waiver on a purchase of both Class A and Class T shares, Class A
shares generally will have lower costs than Class T shares because Class A
shares have lower 12b-1 fees. However, you should evaluate the overall
costs of purchasing Class A shares or Class T shares in the context of the
package of services provided to you by your investment professional. See
"Sales Charge Reductions and Waivers," page 33, for sales charge waiver
information. If you prefer not to pay a front-end sales charge, you should
consider Class B shares. While Class B shares are subject to higher ongoing
costs than Class A or Class T shares, because of their higher 12b-1 fees,
Class B shares are sold with a CDSC instead of a front-end sales charge so
your entire purchase amount is immediately invested. Please note that
purchase amounts of more than $250,000 will not be accepted for Class B
shares, and that Class A or Class T shares may have lower costs for
investments that qualify for a front-end sales charge reduction or waiver.
If you sell your Class B shares within six years, you will normally pay a
CDSC that varies depending on how long you have held your shares. See
"Transaction Details," page 30, for CDSC schedules and related information.
EFFECTIVE AUGUST 1, 1997, the following information replaces similar
information found in "Expenses" on page 3.
Clas Clas Clas
s A s T s B
Maximum sales charge on purchases 5.75 3.50 None
(as a % of offering price) % %
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Maximum CDSC (as a % of the lesser of original purchase price or redemption proceeds) None None 5.00[
[A] [A] B]
</TABLE>
Maximum sales charge on None None None
reinvested distributions
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Redemption fee on shares held less than 60 days 1.00 1.00 1.00
(as a % of amount redeemed) % % %
</TABLE>
Exchange fee None None None
Annual account maintenance fee $12.0 $12.0 $12.0
(for accounts under $2,500) 0 0 0
[A] A CONTINGENT DEFERRED SALES CHARGE CHARGE OF 0.25% IS ASSESSED ON
CERTAIN REDEMPTIONS OF CLASS A AND CLASS T SHARES ON WHICH A FINDERS FEE
WAS PAID. SEE "TRANSACTION DETAILS," PAGE 30.
[B] DECLINES OVER 6 YEARS FROM 5.00% TO 0%.
EFFECTIVE AUGUST 1, 1997 , the following information relating to
Class A shares replaces similar information found in "Expenses" on page 4.
The Class A expense numbers in the table below reflect the August 1, 1997
increases in the funds' maximum Class A front-end sales charges.
EXPENSE TABLE EXAMPLE: You would pay the following expenses, including the
maximum front-end sales charge or CDSC, as applicable, on a $1,000
investment, assuming a 5% annual return and either (1) full redemption or
(2) no redemption, at the end of each time period:
Examples
Full Redemption
Class A
CONSUMER INDUSTRIES After 1 year $ 74
After 3 years $ 109
CYCLICAL INDUSTRIES After 1 year $ 74
After 3 years $ 109
FINANCIAL SERVICES After 1 year $ 74
After 3 years $ 109
HEALTH CARE After 1 year $ 74
After 3 years $ 109
NATURAL RESOURCES After 1 year $ 71
After 3 years $ 100
After 5 years $ 131
After 10 years $ 218
TECHNOLOGY After 1 year $ 74
After 3 years $ 109
UTILITIES GROWTH After 1 year $ 74
After 3 years $ 109
EFFECTIVE AUGUST 1, 1997 , the following information replaces
similar information relating to Class A load adjusted total return figures
found in "Performance" on page 13. The total return figures in the table
below reflect the August 1, 1997 increase in Natural Resources' maximum
front-end sales charge. Unless revised in this prospectus supplement, the
footnotes to the total return tables found in "Performance" on page 14
remain unchanged.
NATURAL RESOURCES
Average Annual Total Return [A] Cumulative Total Return [A]
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Past 1 year Past 5 Life of fund(dagger) Past 1 year Past 5 Life of fund(dagger)
years years
NATURAL RESOURCES - CLASS A
(LOAD ADJ.)[B] 27.20% 17.10% 16.42% 27.20% 120.19% 284.07%
</TABLE>
[B] LOAD ADJUSTED RETURNS FOR CLASS A INCLUDE THE EFFECT OF PAYING CLASS
A'S MAXIMUM 5.75% FRONT-END SALES CHARGE. LOAD ADJUSTED RETURNS FOR CLASS T
SHARES INCLUDE THE EFFECT OF CLASS T'S MAXIMUM 3.50% FRONT-END SALES
CHARGE.
The following information replaces similar information found in "Charter"
on page 16.
EACH FUND IS A MUTUAL FUND: an investment that pools
shareholders' money and invests it toward a specified goal. Consumer
Industries, Cyclical Industries, Health Care, Technology, and Utilities
Growth are non-diversified funds and Financial Services is a diversified
fund of Fidelity Advisor Series VII, a Massachusetts business trust
organized on March 21, 1980. Natural Resources is a non-diversified fund of
Advisor Series V, a Massachusetts business trust organized on April 23,
1986. Each trust is an open-end management company. There is a remote
possibility that one fund might become liable for a misstatement in the
prospectus about another fund.
The following information replaces similar information under the heading
"FMR and Its Affiliates" in the "Charter" section on page 16.
Beso Sikharulidze is manager of Advisor Health Care, which he has managed
since June 1997. He also manages another Fidelity fund. Mr. Sikharulidze
joined Fidelity as an analyst in 1992, after receiving his MBA from Harvard
University.
The following information replaces similar information found in "Investment
Principles and Risks" on page 17.
The funds may involve significantly greater risks and therefore may
experience greater volatility than a mutual fund that does not concentrate
its investments. Because of the funds' narrow focus, each fund's
performance is closely tied to and affected by industries within its market
sector. Companies in an industry are often faced with the same obstacles,
issues, or regulatory burdens, and their securities may react similarly and
move in unison with these or other market conditions. Also, because the
funds (except Financial Services) are non-diversified, they are further
exposed to increased volatility. Non-diversified funds may have greater
investments in a single issuer than diversified funds, so the performance
of a single issuer can have a substantial impact on a fund's share price.
Finally, the funds' strategies in seeking to achieve their investment
objectives may lead to investments in smaller companies. Securities of
smaller companies, especially those whose business involves emerging
products or concepts, may be more volatile due to their limited product
lines, markets, or financial resources, or their susceptibility to major
setbacks or downturns.
The following information replaces similar information found in "Securities
and Investment Practices" on page 18.
EQUITY SECURITIES may include common stocks, preferred stocks,
convertible securities, and warrants. Common stocks, the most familiar
type, represent an equity (ownership) interest in a corporation. Although
equity securities have a history of long-term growth in value, their prices
fluctuate based on changes in a company's financial condition and on
overall market and economic conditions. Smaller companies are especially
sensitive to these factors.
RESTRICTIONS: With respect to 75% of its total assets, Financial
Services may not purchase more than 10% of the outstanding voting
securities of a single issuer. This limitation does not apply to securities
of other investment companies.
DIVERSIFICATION. Diversifying a fund's investment portfolio can
reduce the risks of investing. This may include limiting the amount of
money invested in any one issuer or, on a broader scale, in any one
industry. Economic, business, or political changes can affect all
securities of a similar type. A fund that is not diversified may be more
sensitive to changes in the market value of a single issuer or industry.
RESTRICTIONS: Each fund (except Financial Services) is considered
non-diversified. Generally, to meet federal tax requirements at the close
of each quarter, each fund (except Financial Services) does not invest more
than 25% of its total assets in any one issuer and, with respect to 50% of
total assets, does not invest more than 5% of its total assets in any one
issuer. With respect to 75% of its total assets, Financial Services may not
purchase a security if, as a result, more than 5% would be invested in the
securities of any one issuer. These limitations do not apply to U.S.
Government securities or to securities of other investment companies.
Each fund normally invests at least 80% of its assets, but always invests
at least 25% of its total assets, in securities of companies principally
engaged in the business activities of the industries in the market sector
identified for the fund.
The following information replaces similar information found in
"Fundamental Investment Policies and Restrictions" on page 20.
EACH FUND (except Natural Resources) seeks capital appreciation.
Each fund invests at least 25% of its total assets in securities of
companies principally engaged in the business activities of the industries
in the market sector identified for the fund.
With respect to 75% of its total assets, Financial Services may not
purchase a security if, as a result, more than 5% would be invested in the
securities of any one issuer and may not purchase more than 10% of the
outstanding voting securities of a single issuer. These limitations do not
apply to U.S. Government securities or to securities of other investment
companies.
The following information replaces similar information found in "How to Buy
Shares" on page 24.
Once each business day, two share prices are calculated for Class A and
Class T shares of each fund: the offering price and the NAV. If you pay a
front-end sales charge or qualify for a reduction as described on page 33,
your Class A or Class T share price will be the offering price. If you
qualify for a front-end sales charge waiver as described on page 33, your
Class A or Class T share price will be the NAV. When you buy Class A or
Class T shares at the offering price, the transfer agent deducts the
appropriate sales charge and invests the rest in Class A or Class T shares
of the fund. Class B's NAV is also calculated every business day. Class B
shares of each fund are sold without a front-end sales charge and may be
subject to a CDSC upon redemption. For information on how the CDSC is
calculated, see "Transaction Details," page 30.
PURCHASE AMOUNTS OF MORE THAN $250,000 WILL NOT BE ACCEPTED FOR CLASS B
SHARES.
The following information replaces similar information found in "Investor
Services" on page 28.
FIDELITY ADVISOR SYSTEMATIC WITHDRAWAL PROGRAM lets you set up periodic
redemptions from your Class A, Class T, or Class B account. Accounts with a
value of $10,000 or more in Class A , Class T, or Class B shares are
eligible for this program. Aggregate redemptions per 12-month period from
your Class B account may not exceed 10% of the account value and are not
subject to a CDSC. Because of Class A's and Class T's front-end sales
charge, you may not want to set up a systematic withdrawal plan during a
period when you are buying Class A or Class T shares on a regular basis.
EFFECTIVE AUGUST 1, 1997 , the following information replaces
similar information found in "Transaction Details" on page 30.
THE OFFERING PRICE (price to buy one share) of Class A and Class T
of each fund is its NAV divided by the difference between one and the
applicable sales charge percentage. Class A has a maximum sales charge of
5.75% of the offering price. Class T has a maximum sales charge of 3.50% of
the offering price. The OFFERING PRICE of Class B of each fund is
its NAV. A class's REDEMPTION PRICE (price to sell one share) is its
NAV minus the fund's redemption fee, if applicable, and any applicable
CDSC.
SALES CHARGES AND INVESTMENT PROFESSIONAL
CONCESSIONS - CLASS A
As a % of Sales Investment
Offering Charge Profession
Price As an al
approxim Concession
ate % of as % of
Net Offering
Amount Price
Invested
Up to $49,999 5.75% 6.10% 5.00%
$50,000 to $99,999 4.50% 4.71% 3.75%
$100,000 to $249,999 3.50% 3.63% 2.75%
$250,000 to $499,999 2.50% 2.56% 2.00%
$500,000 to $999,999 2.00% 2.04% 1.75%
$1,000,000 - $24,999,999 1.00% 1.01% 0.75%
$25,000,000 or more None* None* *
* SEE SECTION ENTITLED FINDERS FEE.
EFFECTIVE AUGUST 1, 1997 , the following information replaces
similar information found in "Transaction Details" on page 30.
FINDERS FEE. On eligible purchases of (i) Class A shares in amounts
of $1 million or more that qualify for a Class A load waiver, (ii) Class A
shares in amounts of $25 million or more, and (iii) Class T shares in
amounts of $1 million or more, investment professionals will be compensated
with a fee at the rate of 0.25% of the amount purchased.
Any assets on which a finders fee has been paid will bear a CDSC (Class A
or Class T CDSC) if they do not remain in Class A or Class T shares of the
Fidelity Advisor funds, Daily Money Class (formerly Initial Class) shares
of Treasury Fund (formerly Daily Money Fund: U.S. Treasury Portfolio),
Prime Fund (formerly Daily Money Fund: Money Market Portfolio), or
Tax-Exempt Fund (formerly Daily Tax-Exempt Money Fund), for a period of at
least one uninterrupted year. The Class A or Class T CDSC will be 0.25% of
the lesser of the cost of the shares at the initial date of purchase or the
value of the shares at redemption, not including any reinvested dividends
or capital gains. Class A or Class T CDSC shares representing reinvested
dividends and capital gains, if any, will be redeemed first, followed by
other Class A or Class T CDSC shares that have been held for the longest
period of time.
Shares held by an insurance company separate account will be aggregated at
the client (e.g., the contract holder or plan sponsor) level, not at the
separate account level. Upon request, anyone claiming eligibility for the
0.25% fee with respect to shares held by an insurance company separate
account must provide FDC access to records detailing purchases at the
client level.
With respect to employee benefit plans, the Class A or Class T CDSC does
not apply to the following types of redemptions: (i) plan loans or
distributions or (ii) exchanges to non-Advisor fund investment options.
With respect to Individual Retirement Accounts, the Class A or Class T CDSC
does not apply to redemptions made for disability, payment of death
benefits, or required partial distributions starting at age 70. Your
investment professional should advise the transfer agent at the time your
redemption order is placed if you qualify for a waiver of the Class A or
Class T CDSC.
The following information replaces similar information found in
"Transaction Details" on page 31.
REINSTATEMENT PRIVILEGE If you have sold all or part of your
Class A, Class T, or Class B shares of a fund, you may reinvest an amount
equal to all or a portion of the redemption proceeds in the same class of
the fund or any of the other Fidelity Advisor funds, at the NAV next
determined after receipt and acceptance of your investment order, provided
that such reinvestment is made within 90 days of redemption. Under these
circumstances, the dollar amount of the CDSC, if any, you paid on Class T
or Class B shares will be reimbursed to you by reinvesting that amount in
Class T shares or Class B shares, as applicable. EFFECTIVE AUGUST 1,
1997 , the dollar amount of the CDSC, if any, you paid on Class A shares
will likewise be reimbursed to you by reinvesting that amount in Class A
shares. You must reinstate your shares into an account with the same
registration. This privilege may be exercised only once by a shareholder
with respect to a fund and certain restrictions may apply. For purposes of
the CDSC holding period schedule, the holding period of your Class T or
Class B shares will continue as if the shares had not been redeemed.
EFFECTIVE AUGUST 1, 1997 , for purposes of the CDSC holding period
schedule, the holding period of your Class A shares will also continue as
if the shares had not been redeemed.
EFFECTIVE AUGUST 1, 1997 , the following information replaces similar
information found in "Exchange Restrictions" on page 33.
(small solid bullet) Any exchanges of Class A, Class T, or Class B shares
are not subject to a CDSC.
The following information supplements information found in "Sales Charge
Reductions and Waivers" on page 33.
A FRONT-END SALES CHARGE WILL NOT APPLY TO THE FOLLOWING CLASS A SHARES:
1. Purchased for an insurance company separate account used to fund annuity
contracts for employee benefit plans which, in the aggregate, have more
than 200 eligible employees or a minimum of $1 million in plan assets
invested in Fidelity Advisor funds;
2. Purchased by a trust institution or bank trust department
(excluding employee benefit plan assets) that has executed a participation
agreement with FDC specifying certain asset minimums and qualifications,
and marketing restrictions. Assets managed by third parties do not qualify
for this waiver;
3. Purchased for use in a broker-dealer managed account program, provided
the broker-dealer has executed a participation agreement with FDC
specifying certain asset minimums and qualifications, and marketing,
program and trading restrictions. Employee benefit plan assets do not
qualify for this waiver; or
4. Purchased on a discretionary basis by a registered investment advisor
which is not part of an organization primarily engaged in the brokerage
business, that has executed a participation agreement with FDC specifying
certain asset minimums and qualifications, and marketing, program and
trading restrictions. Employee benefit plan assets do not qualify for this
waiver.
For the purpose of load waiver (3), certain broker-dealers that otherwise
meet the qualifications and asset minimums established by FDC are not
required to sign a participation agreement.
EFFECTIVE AUGUST 1, 1997 , the following information supplements
information found in "Sales Charge Reductions and Waivers" on page 33.
A FRONT-END SALES CHARGE WILL NOT APPLY TO THE FOLLOWING CLASS A
SHARES:
5. Purchased as part of an employee benefit plan having $25 million
or more in plan assets.
The following information replaces similar information found in "Sales
Charge Reductions and Waivers" on page 34.
If you are investing through an account managed by a broker-dealer, if you
have authorized an investment adviser to make investment decisions for you,
or if you are investing through a trust department, you may qualify to
purchase Class T shares without a sales charge (as described in (9), (10)
and (13), above), Class A shares without a sales charge (as described in
(2), (3), and (4) above), or Institutional Class shares. Because
Institutional Class shares have no sales charge, and do not pay a
distribution fee or a shareholder service fee, Institutional Class shares
are expected to have a higher total return than Class A, Class T, or Class
B shares. Contact your investment professional to discuss if you qualify.
THE CDSC ON CLASS B SHARES MAY BE WAIVED:
1. In cases of disability or death, provided that Class B shares are
redeemed within one year following the death or the initial determination
of disability;
2. In connection with a total or partial redemption related to
certain distributions from retirement plans or accounts at age 70 1/2,
which are permitted without penalty pursuant to the Internal Revenue Code;
or
3. In connection with redemptions through the Fidelity Advisor Systematic
Withdrawal Program.
