FIDELITY BALANCED FUND
FIDELITY GLOBAL BALANCED FUND
SUPPLEMENT TO THE STATEMENT OF ADDITIONAL INFORMATION
DATED SEPTEMBER 18, 1993
The following paragraph replaces the first paragraph in the section
entitled "Valuation of Portfolio Securities" beginning on page 16.
Portfolio securities are valued by various methods depending on the primary
market or exchange on which they trade. Most equity securities for which
the primary market is the U.S. are valued at last sale price or, if no sale
has occurred, at the closing bid price. Most equity securities for which
the primary market is outside the U.S. are valued using the official
closing price or the last sale price in the principal market where they are
traded. If the last sale price (on the local exchange) is unavailable, the
last evaluated quote or last bid price is normally used. Short-term
securities are valued either at amortized cost or at original cost plus
accrued interest, both of which approximate current value. Convertible and
fixed-income securities are valued primarily by a pricing service that uses
a vendor security valuation matrix which incorporates both dealer-supplied
valuations and electronic data processing techniques. This twofold
approach is believed to more accurately reflect fair value because it takes
into account appropriate factors such as institutional trading in similar
groups of securities, yield, quality, coupon rate, maturity, type of issue,
trading characteristics, and other market data, without exclusive reliance
upon quoted, exchange, or over-the-counter prices. Use of pricing services
has been approved by the Board of Trustees.
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MANAGEMENT CONTRACT. Effective November 1, 1993, FMR agreed to voluntarily
adopt the revised group fee rate schedule shown below for purposes of
calculating the group fee component of the management fee. The revised
schedule provides for lower management fees as total assets under
management increase, and it will be presented to shareholders for approval
at the next shareholder meeting.
The following table replaces that found in the section entitled "Management
Contracts" beginning on page 24.
GROUP FEE RATE SCHEDULE EFFECTIVE ANNUAL FEE RATES
Average Group Annualized Group Net Effective Annual Fee
Assets Rate Assets Rate
0 - $3 billion .520% $ 0.5 billion .5200%
3 - 6 .490 25 .4238
6 - 9 .460 50 .3823
9 - 12 .430 75 .3626
12 - 15 .400 100 .3512
15 - 18 .385 125 .3430
18 - 21 .370 150 .3371
21 - 24 .360 175 .3325
24 - 30 .350 200 .3284
30 - 36 .345 225 .3253
36 - 42 .340 250 .3223
42 - 48 .335 275 .3198
48 - 66 .325 300 .3175
66 - 84 .320 325 .3153
84 - 102 .315 350 .3133
102 - 138 .310
138 - 174 .305
174 - 228 .300
228 282 .295
282- 336 .290
Over 336 .285
The following information supplements that found in the "Management
Contracts" section beginning on page 24.
During the fiscal years ended July 31, 1993, 1992, and 1991, FMR
received fees of $11,430,000, $4,601,223, $1,777,967, respectively, for its
services as investment adviser to Balanced Fund. These fees were equivalent
to .53%, .54%, and .55%, respectively, of the average net assets of the
fund for each of these periods. During the fiscal period ended July 31,
1993, FMR received fees of $136,784 for its services as investment adviser
to Global Balanced Fund, which was equivalent to .77% of the fund's average
net assets for the period.
BALB/GBLB-94-2 April 11, 1994
