UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-3737
Fidelity Advisor Series IV
(Exact name of registrant as specified in charter)
82 Devonshire St., Boston, Massachusetts 02109
(Address of principal executive offices) (Zip code)
Eric D. Roiter, Secretary
82 Devonshire St.
Boston, Massachusetts 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: 617-563-7000
Date of fiscal year end: | November 30 |
Date of reporting period: | November 30, 2003 |
Item 1. Reports to Stockholders
Fidelity ®
Institutional
Short-Intermediate
Government Fund
Annual Report
November 30, 2003
(2_fidelity_logos) (Registered_Trademark)
Contents
Chairman's Message | Ned Johnson's message to shareholders. | |
Performance | How the fund has done over time. | |
Management's Discussion | The manager's review of fund performance, strategy and outlook. | |
Investment Changes | A summary of major shifts in the fund's investments over the past six months. | |
Investments | A complete list of the fund's investments with their market values. | |
Financial Statements | Statements of assets and liabilities, operations, and changes in net assets, | |
Notes | Notes to the financial statements. | |
Auditors' Opinion | ||
Trustees and Officers | ||
For a free copy of the fund's proxy voting guidelines call 1-888-622-3175, or visit the Securities and Exchange Commission (SEC)'s web site at www.sec.gov.
The third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR Corp. or an affiliated company.
(Recycle graphic) This report is printed on recycled paper using soy-based inks.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.
Mutual fund shares are not deposits or obligations of, or guaranteed by, any depository institution. Shares are not insured by the FDIC, the Federal Reserve Board, or any other agency, and are subject to investment risks, including possible loss of principal amount invested.
Neither the fund nor Fidelity Distributors Corporation is a bank.
For more information on any Fidelity fund, including charges and expenses, call 1-800-544-6666 for a free prospectus. Read it carefully before you invest or send money.
Annual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
Many of you have read or heard news stories recently that were critical of mutual funds and made allegations that the mutual fund industry has been less than forthright. I find these reports unsettling and not necessarily an accurate picture of the overall industry, and I would like you to know where we at Fidelity stand.
With specific regard to allegations that certain mutual fund companies were violating the Securities and Exchange Commission's forward pricing rules or were involved in so-called "market timing" activities, I want to say two things:
First, Fidelity does not have agreements that permit customers who buy fund shares after 4 p.m. to obtain the 4 p.m. price. This is not to say that someone could not deceive the company through fraudulent acts. But I underscore that we have no so-called "agreements" which would permit this illegal practice.
Second, Fidelity has been on record for years opposing predatory short-term trading which adversely affects other shareholders in a mutual fund. In fact, in the 1980s, we began charging a fee - which is returned to the fund and, therefore, to investors - to discourage this activity. What's more, several years ago we took the industry lead in developing a Fair Value Pricing Policy to prevent market timing on foreign securities in our funds. It is reasonable to assume that another structure can be developed that would alter the system to make it much more difficult for predatory traders to operate. This, however, will only be achieved through close cooperation among regulators, legislators and the industry.
Certainly no industry is perfect, and there have been instances of unethical and illegal activity from time to time within the mutual fund industry. When this occurs, confessed or convicted offenders should be dealt with appropriately. Clearly, every system can be improved. We applaud well thought out improvements by regulators, legislators and industry representatives that achieve the common goal of building and protecting the value of investors' holdings. But we remain concerned about the risk of over-regulation and the quick application of simplistic solutions to intricate problems.
For more than 57 years, Fidelity Investments has worked very hard to improve its products and service to justify your trust. When our family founded this company in 1946, we had only a few hundred customers. Many of them were family and friends. Today, we serve more than 18 million customers including individual investors and participants in retirement plans across America.
Let me close by saying that we do not take your trust in us for granted, and we realize that we must always work to improve all aspects of our service to you. In turn, we urge you to continue your active participation with your financial matters, so that your interests can be well served.
Best regards,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Annual Report
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value) and assuming a constant rate of performance each year. The $100,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
Periods ended November 30, 2003 | Past 1 | Past 5 | Past 10 |
Fidelity® Inst Sht-Int Govt | 2.48% | 5.71% | 5.83% |
$100,000 Over 10 Years
Let's say hypothetically that $100,000 was invested in Fidelity® Institutional Short-Intermediate Government Fund on November 30, 1993. The chart shows how the value of your investment would have grown, and also shows how the LB 1-5 Year US Government Bond Index did over the same period.
Annual Report
Management's Discussion of Fund Performance
Comments from George Fischer, Portfolio Manager of Fidelity® Institutional Short-Intermediate Government Fund
The investment-grade bond market, as represented by the Lehman Brothers® Aggregate Bond Index, was poised to record its fourth straight year of positive returns after gaining 5.18% for the 12 months ending November 30, 2003. The index hasn't suffered a calendar year loss since falling 0.82% in 1999 when stocks were near their pinnacle. Since then, bonds have had the upper hand, but they struggled somewhat in the second half of 2003 when the economic environment became more conducive for riskier assets. Turning to individual index components, corporates had a solid year, particularly lower-quality issues, advancing 9.65% according to the Lehman Brothers Credit Bond Index. Conversely, Treasuries - the highest-quality bond sector - had the lowest return year to date through November, but gained 3.98% for the year overall. Mortgages were hurt by record home refinancing activity before rebounding late in the period, while increased scrutiny of two major government-sponsored enterprises hurt the overall performance of agency bonds. The Lehman Brothers U.S. Agency and Mortgage-Backed Securities indexes gained 3.85% and 3.04%, respectively, during the past year.
During the year, Fidelity Institutional Short-Intermediate Government Fund returned 2.48%, outpacing the fund's peer group as measured by the LipperSM Short-Intermediate U.S. Government Funds Average, which returned 2.33%. Additionally, the fund's benchmark - the Lehman Brothers 1-5 Year U.S. Government Bond Index - returned 2.81%. The key contributor to the fund's outperformance of its peer group average was its relatively large weighting in agency and mortgage securities, both of which outperformed Treasury securities during the period. That said, the fund's performance may have benefited even more if it had fewer mortgage securities going into the summer months when volatility was high and more of them when volatility abated in the fall.
The views expressed in this statement reflect those of the portfolio manager only through the end of the period of the report as stated on the cover and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Annual Report
Investment Changes
Coupon Distribution as of November 30, 2003 | ||
% of fund's | % of fund's investments | |
1 - 1.99% | 15.1 | 10.3 |
2 - 2.99% | 29.1 | 7.1 |
3 - 3.99% | 11.7 | 6.7 |
4 - 4.99% | 2.1 | 5.6 |
5 - 5.99% | 10.5 | 22.0 |
6 - 6.99% | 12.8 | 17.9 |
7 - 7.99% | 1.3 | 3.4 |
8% and over | 4.2 | 5.0 |
Coupon distribution shows the range of stated interest rates on the fund's investments, excluding short-term investments. |
Average Years to Maturity as of November 30, 2003 | ||
6 months ago | ||
Years | 2.6 | 3.2 |
Average years to maturity is based on the average time remaining until principal payments are expected from each of the fund's bonds, weighted by dollar amount. |
Duration as of November 30, 2003 | ||
6 months ago | ||
Years | 2.4 | 2.3 |
Duration shows how much a bond fund's price fluctuates with changes in comparable interest rates. If rates rise 1%, for example, a fund with a five-year duration is likely to lose about 5% of its value. Other factors also can influence a bond fund's performance and share price. Accordingly, a bond fund's actual performance may differ from this example. |
Asset Allocation (% of fund's net assets) | |||||||
As of November 30, 2003* | As of May 31, 2003** | ||||||
 | Mortgage Securities 5.1% | | Mortgage Securities 8.9% | ||||
 | CMOs and Other Mortgage Related Securities 5.7% | | CMOs and Other Mortgage Related Securities 7.7% | ||||
 | U.S. Treasury | | U.S. Treasury | ||||
 | U.S. Government | | U.S. Government | ||||
 | Short-Term | | Short-Term | ||||
* Futures and Swaps | 4.9% | ** Futures and Swaps | 0.0% | ||||
Annual Report
Investments November 30, 2003
Showing Percentage of Net Assets
U.S. Government and Government Agency Obligations - 80.0% | ||||
Principal | Value | |||
U.S. Government Agency Obligations - 46.3% | ||||
Fannie Mae: | ||||
1.875% 9/15/05 | $ 40,000,000 | $ 39,915,160 | ||
2.875% 5/19/08 | 900,000 | 869,886 | ||
3.25% 1/15/08 | 5,210,000 | 5,185,586 | ||
6.25% 2/1/11 | 575,000 | 628,809 | ||
6.25% 7/19/11 | 12,000,000 | 12,325,764 | ||
Farm Credit Systems Financial Assistance Corp. 8.8% 6/10/05 | 9,550,000 | 10,531,721 | ||
Federal Home Loan Bank 2.5% 3/15/06 | 3,700,000 | 3,706,764 | ||
Freddie Mac: | ||||
1.5% 8/15/05 | 2,545,000 | 2,523,322 | ||
1.75% 5/15/05 | 7,235,000 | 7,226,427 | ||
2.875% 9/15/05 | 39,125,000 | 39,675,215 | ||
2.875% 12/15/06 | 38,495,000 | 38,499,650 | ||
3.625% 9/15/08 | 41,168,000 | 41,222,301 | ||
4.375% 2/4/10 | 11,300,000 | 11,249,286 | ||
5.125% 8/20/12 | 3,800,000 | 3,787,369 | ||
5.875% 3/21/11 | 570,000 | 610,302 | ||
Government Loan Trusts (assets of Trust guaranteed by U.S. Government through Agency for International Development) Series 1-B, 8.5% 4/1/06 | 1,179,130 | 1,288,235 | ||
Guaranteed Export Trust Certificates (assets of Trust guaranteed by U.S. Government through Export-Import Bank): | ||||
Series 1993-C, 5.2% 10/15/04 | 91,199 | 93,833 | ||
Series 1993-D, 5.23% 5/15/05 | 111,062 | 113,514 | ||
Series 1994-F, 8.187% 12/15/04 | 2,659,832 | 2,693,239 | ||
Series 1995-A, 6.28% 6/15/04 | 704,706 | 715,643 | ||
Guaranteed Trade Trust Certificates (assets of Trust guaranteed by U.S. Government through Export-Import Bank) Series 1992-A, 7.02% 9/1/04 | 1,043,248 | 1,074,097 | ||
Overseas Private Investment Corp. U.S. Government guaranteed participation certificates 6.77% 11/15/13 | 1,307,692 | 1,447,452 | ||
Private Export Funding Corp. secured: | ||||
5.73% 1/15/04 | 15,000,000 | 15,084,900 | ||
5.8% 2/1/04 | 601,000 | 605,550 | ||
6.86% 4/30/04 | 195,025 | 199,353 | ||
State of Israel (guaranteed by U.S. Government through Agency for International Development) 6.8% 2/15/12 | 2,500,000 | 2,781,313 | ||
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS | 244,054,691 | |||
U.S. Government and Government Agency Obligations - continued | ||||
Principal | Value | |||
U.S. Treasury Obligations - 33.7% | ||||
U.S. Treasury Bonds 11.75% 2/15/10 | $ 1,199,000 | $ 1,342,411 | ||
U.S. Treasury Notes: | ||||
1.625% 10/31/05 | 26,000,000 | 25,823,278 | ||
2.375% 8/15/06 | 63,000,000 | 62,953,250 | ||
2.625% 5/15/08 | 15,000,000 | 14,652,540 | ||
3.375% 11/15/08 | 15,000,000 | 15,015,240 | ||
5.625% 5/15/08 | 4,000,000 | 4,405,624 | ||
5.875% 11/15/05 | 24,000,000 | 25,783,128 | ||
6% 8/15/09 | 10,000,000 | 11,260,550 | ||
6.5% 10/15/06 | 15,000,000 | 16,659,375 | ||
TOTAL U.S. TREASURY OBLIGATIONS | 177,895,396 | |||
TOTAL U.S. GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS (Cost $422,178,047) | 421,950,087 | |||
U.S. Government Agency - Mortgage Securities - 5.1% | ||||
Fannie Mae - 3.7% | ||||
5.5% 1/1/09 to 11/1/17 | 4,356,285 | 4,494,454 | ||
6% 9/1/08 to 10/1/16 | 6,342,110 | 6,644,761 | ||
6.5% 7/1/08 to 9/1/32 | 4,543,000 | 4,782,977 | ||
6.5% 12/1/33 (a) | 471,995 | 492,350 | ||
7% 4/1/08 to 6/1/31 | 1,236,431 | 1,316,371 | ||
8% 8/1/09 | 67,267 | 71,941 | ||
9% 2/1/13 to 8/1/21 | 469,453 | 521,294 | ||
9.5% 5/1/09 to 11/1/21 | 47,574 | 51,877 | ||
10% 1/1/20 | 6,612 | 7,478 | ||
10.5% 5/1/10 to 8/1/20 | 108,349 | 122,243 | ||
11% 11/1/10 to 9/1/14 | 460,625 | 515,239 | ||
11.5% 11/1/15 to 7/15/19 | 404,634 | 459,079 | ||
12% 4/1/15 | 16,441 | 18,828 | ||
12.5% 3/1/16 | 24,511 | 28,164 | ||
19,527,056 | ||||
Freddie Mac - 0.8% | ||||
5% 12/1/33 (a) | 1,000,000 | 979,375 | ||
6.5% 5/1/08 | 114,344 | 120,946 | ||
7.5% 11/1/12 | 381,417 | 409,513 | ||
8% 9/1/07 to 12/1/09 | 315,768 | 336,445 | ||
8.5% 7/1/06 to 6/1/14 | 375,805 | 403,204 | ||
U.S. Government Agency - Mortgage Securities - continued | ||||
Principal | Value | |||
Freddie Mac - continued | ||||
9% 12/1/07 to 3/1/22 | $ 219,928 | $ 242,228 | ||
9.5% 1/1/17 to 12/1/22 | 627,581 | 695,825 | ||
10% 1/1/09 to 6/1/20 | 209,661 | 231,608 | ||
10.5% 9/1/16 to 5/1/21 | 120,363 | 133,783 | ||
11% 12/1/11 to 6/1/13 | 8,651 | 9,614 | ||
11.5% 10/1/15 | 7,220 | 8,145 | ||
12% 9/1/11 to 11/1/19 | 38,934 | 44,195 | ||
12.25% 11/1/14 | 28,672 | 32,742 | ||
12.5% 8/1/10 to 6/1/19 | 476,642 | 542,449 | ||
4,190,072 | ||||
Government National Mortgage Association - 0.6% | ||||
8% 11/15/09 to 12/15/23 | 2,362,148 | 2,549,746 | ||
8.5% 5/15/16 to 3/15/17 | 55,470 | 61,264 | ||
10.5% 1/15/16 to 1/15/18 | 269,741 | 303,138 | ||
11% 10/20/13 | 8,754 | 9,788 | ||
12.5% 11/15/14 | 67,259 | 77,214 | ||
13.5% 7/15/11 | 12,850 | 14,924 | ||
3,016,074 | ||||
TOTAL U.S. GOVERNMENT AGENCY - MORTGAGE SECURITIES (Cost $25,796,953) | 26,733,202 | |||
Collateralized Mortgage Obligations - 5.7% | ||||
U.S. Government Agency - 5.7% | ||||
Fannie Mae: | ||||
floater Series 1994-42 Class FK, 3.66% 4/25/24 (b) | 3,000,000 | 3,038,750 | ||
sequential pay Series 1993-238 Class C, 6.5% 12/25/08 | 5,000,000 | 5,308,401 | ||
Fannie Mae guaranteed REMIC pass thru certificates: | ||||
floater Series 2002-74 Class FV, 1.5688% 11/25/32 (b) | 4,975,775 | 4,993,773 | ||
planned amortization class: | ||||
Series 2001-80 Class PH, 6% 12/25/27 | 652,938 | 659,985 | ||
Series 2002-55 Class PA, 5.5% 3/25/18 | 370,138 | 370,936 | ||
Series 2003-54 Class AZ, 4.5% 6/25/18 | 433,550 | 433,190 | ||
Freddie Mac planned amortization class Series 1995 Class PB, 6.5% 9/20/25 | 280,990 | 283,012 | ||
Freddie Mac Multi-class participation certificates guaranteed: | ||||
floater Series 2526 Class FC, 1.52% 11/15/32 (b) | 2,905,134 | 2,903,314 | ||
Collateralized Mortgage Obligations - continued | ||||
Principal | Value | |||
U.S. Government Agency - continued | ||||
Freddie Mac Multi-class participation certificates guaranteed: - continued | ||||
planned amortization class Series 2466 Class DE, 6.5% 4/15/30 | $ 1,656,712 | $ 1,688,711 | ||
sequential pay: | ||||
Series 1929 Class EZ, 7.5% 2/17/27 | 4,103,522 | 4,344,049 | ||
Series 2303 Class VT, 6% 2/15/12 | 866,146 | 875,300 | ||
Series 1543 Class VK, 6.7% 1/15/23 | 3,000,000 | 3,132,449 | ||
Series 2473 Class JB, 5.5% 2/15/29 | 610,000 | 617,425 | ||
Series 2609: | ||||
Class D, 5% 5/15/33 | 23,454 | 23,380 | ||
Class DZ, 5% 5/15/33 | 745,168 | 744,962 | ||
Ginnie Mae guaranteed REMIC pass thru securities Series 2001-53 Class TA, 6% 12/20/30 | 652,847 | 667,352 | ||
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $30,262,127) | 30,084,989 | |||
Cash Equivalents - 13.9% | |||
Maturity | |||
Investments in repurchase agreements (Collateralized by U.S. Government Obligations, in a joint trading account at 1.07%, dated 11/28/03 due 12/1/03) | $ 73,099,529 | 73,093,000 | |
TOTAL INVESTMENT PORTFOLIO - 104.7% (Cost $551,330,127) | 551,861,278 | ||
NET OTHER ASSETS - (4.7)% | (24,798,561) | ||
NET ASSETS - 100% | $ 527,062,717 | ||
Swap Agreements | |||||
Expiration | Notional | Unrealized | |||
Interest Rate Swap | |||||
Receive quarterly a fixed rate equal to 2.369% and pay quarterly a floating rate based on 3-month LIBOR with Goldman Sachs | May 2006 | $ 21,000,000 | $ (135,715) | ||
Receive quarterly a fixed rate equal to 2.6165% and pay quarterly a floating rate based on 3-month LIBOR with Merrill Lynch, Inc. | Oct. 2006 | 5,000,000 | (36,517) | ||
$ 26,000,000 | $ (172,232) | ||||
Legend |
(a) Security or a portion of the security purchased on a delayed delivery or when-issued basis. |
(b) The coupon rate shown on floating or adjustable rate securities represents the rate at period end. |
Other Information |
Purchases and sales of long-term U.S. government and government agency obligations aggregated $1,328,050,258 and $1,332,095,178, respectively. |
Income Tax Information |
At November 30, 2003, the fund had a capital loss carryforward of approximately $9,969,000 of which $5,800,000 and $4,169,000 will expire on November 30, 2007 and 2008, respectively. |
A total of 43.28% of the dividends distributed during the fiscal year was derived from interest on U.S. Government securities which is generally exempt from state income tax (unaudited). The fund will notify shareholders in January 2004 of amounts for use in preparing 2003 income tax returns. |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements
Statement of Assets and Liabilities
November 30, 2003 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $25,896,000 and repurchase agreements of $73,093,000)(cost $551,330,127) - See accompanying schedule | $ 551,861,278 | |
Cash | 488 | |
Receivable for investments sold | 31,252 | |
Receivable for fund shares sold | 290,806 | |
Interest receivable | 3,541,098 | |
Total assets | 555,724,922 | |
Liabilities | ||
Payable for investments purchased on a delayed delivery basis | $ 1,467,357 | |
Payable for fund shares redeemed | 358,397 | |
Distributions payable | 47,245 | |
Unrealized loss on swap agreements | 172,232 | |
Accrued management fee | 199,356 | |
Other payables and accrued expenses | 3,698 | |
Collateral on securities loaned, at value | 26,413,920 | |
Total liabilities | 28,662,205 | |
Net Assets | $ 527,062,717 | |
Net Assets consist of: | ||
Paid in capital | $ 537,205,085 | |
Undistributed net investment income | 136,947 | |
Accumulated undistributed net realized gain (loss) on investments | (10,638,234) | |
Net unrealized appreciation (depreciation) on investments | 358,919 | |
Net Assets, for 54,264,321 shares outstanding | $ 527,062,717 | |
Net Asset Value, offering price and redemption price per share ($527,062,717 ÷ 54,264,321 shares) | $ 9.71 | |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements - continued
Statement of Operations
Year ended November 30, 2003 | ||
Investment Income | ||
Interest | $ 15,909,499 | |
Security lending | 87,480 | |
Total income | 15,996,979 | |
Expenses | ||
Management fee | $ 2,519,554 | |
Non-interested trustees' compensation | 3,368 | |
Total expenses before reductions | 2,522,922 | |
Expense reductions | (64,942) | 2,457,980 |
Net investment income (loss) | 13,538,999 | |
Realized and Unrealized Gain (Loss) Net realized gain (loss) on: | ||
Investment securities | 5,766,408 | |
Swap agreements | 575,094 | |
Total net realized gain (loss) | 6,341,502 | |
Change in net unrealized appreciation (depreciation) on: Investment securities | (5,704,865) | |
Swap agreements | (350,177) | |
Total change in net unrealized appreciation (depreciation) | (6,055,042) | |
Net gain (loss) | 286,460 | |
Net increase (decrease) in net assets resulting from operations | $ 13,825,459 | |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
Year ended | Year ended | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $ 13,538,999 | $ 16,992,090 |
Net realized gain (loss) | 6,341,502 | 12,630,025 |
Change in net unrealized appreciation (depreciation) | (6,055,042) | (3,520,306) |
Net increase (decrease) in net assets resulting | 13,825,459 | 26,101,809 |
Distributions to shareholders from net investment income | (13,734,706) | (17,141,759) |
Share transactions | 242,680,304 | 231,088,515 |
Reinvestment of distributions | 12,958,380 | 15,952,743 |
Cost of shares redeemed | (230,608,437) | (160,650,432) |
Net increase (decrease) in net assets resulting from share transactions | 25,030,247 | 86,390,826 |
Total increase (decrease) in net assets | 25,121,000 | 95,350,876 |
Net Assets | ||
Beginning of period | 501,941,717 | 406,590,841 |
End of period (including undistributed net investment income of $136,947 and undistributed net investment income of $492,900, respectively) | $ 527,062,717 | $ 501,941,717 |
Other Information Shares | ||
Sold | 24,805,945 | 24,049,229 |
Issued in reinvestment of distributions | 1,322,306 | 1,664,472 |
Redeemed | (23,559,188) | (16,793,766) |
Net increase (decrease) | 2,569,063 | 8,919,935 |
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights
Years ended November 30, | 2003 | 2002 | 2001 | 2000 | 1999 |
Selected Per-Share Data | |||||
Net asset value, beginning of period | $ 9.71 | $ 9.51 | $ 9.19 | $ 9.11 | $ 9.48 |
Income from Investment Operations | |||||
Net investment income (loss)B | .236 | .376D | .562 | .596 | .579 |
Net realized and unrealized gain (loss) | .004 | .206D | .329 | .079 | (.362) |
Total from investment operations | .240 | .582 | .891 | .675 | .217 |
Distributions from net investment income | (.240) | (.382) | (.571) | (.595) | (.587) |
Net asset value, end of period | $ 9.71 | $ 9.71 | $ 9.51 | $ 9.19 | $ 9.11 |
Total ReturnA | 2.48% | 6.25% | 9.96% | 7.70% | 2.37% |
Ratios to Average Net AssetsC | |||||
Expenses before expense | .45% | .45% | .45% | .45% | .45% |
Expenses net of voluntary | .45% | .45% | .45% | .45% | .45% |
Expenses net of all reductions | .44% | .45% | .44% | .44% | .44% |
Net investment income (loss) | 2.42% | 3.92%D | 5.98% | 6.57% | 6.26% |
Supplemental Data | |||||
Net assets, end of period | $ 527,063 | $ 501,942 | $ 406,591 | $ 341,778 | $ 415,722 |
Portfolio turnover rate | 289% | 219% | 173% | 91% | 85% |
A Total returns would have been lower had certain expenses not been reduced during the periods shown.
B Calculated based on average shares outstanding during the period.
C Expense ratios reflect operating expenses of the fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the fund during periods when reimbursements or reductions occur. Expenses net of any voluntary waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the fund.
D Effective December 1, 2001, the fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premium and discount on all debt securities. Per-share data and ratios for periods prior to adoption have not been restated to reflect this change.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Notes to Financial Statements
For the period ended November 30, 2003
1. Significant Accounting Policies.
Fidelity Institutional Short-Intermediate Government Fund (the fund) is a fund of Fidelity Advisor Series IV (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the fund:
Security Valuation. Net asset value per share (NAV calculation) is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Debt securities are valued on the basis of information provided by a pricing service. Pricing services use valuation matrices that incorporate both dealer-supplied valuations and valuation models. If an event that is expected to materially affect the value of a security occurs after the close of an exchange or market on which that security trades, but prior to the NAV calculation, then that security will be fair valued taking the event into account. Securities (including restricted securities) for which market quotations are not readily available are valued at their fair value as determined in good faith under consistently applied procedures under the general supervision of the Board of Trustees. Price movements in futures contracts and ADRs, market and trading trends, the bid/ask quotes of brokers and off-exchange institutional trading may be reviewed in the course of making a good faith determination of a security's fair value. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued on the basis of amortized cost. Investments in open-end investment companies are valued at their net asset value each business day.
Investment Transactions and Income. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. Interest income is accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities, which is accrued using the interest method.
Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among the funds in the trust.
Income Tax Information and Distributions to Shareholders. Each year the fund intends to qualify as a regulated investment company by distributing all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required in the accompanying financial statements. Dividends are declared daily and paid monthly from net investment income. Distributions from realized gains, if any, are recorded on the ex-dividend date.
Annual Report
Notes to Financial Statements - continued
1. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Capital accounts within the financial statements are adjusted for permanent and temporary book and tax differences. These adjustments have no impact on net assets or the results of operations. Temporary differences will reverse in a subsequent period. These differences are primarily due to prior period premium and discount on debt securities, market discount, financing transactions, capital loss carryforwards and losses deferred due to wash sales.
The tax-basis components of distributable earnings and the federal tax cost as of period end were as follows:
Unrealized appreciation | $ 2,137,073 | | |
Unrealized depreciation | (2,259,701) | |
Net unrealized appreciation (depreciation) | (122,628) | |
Undistributed ordinary income | 858,700 | |
Capital loss carryforward | (9,968,658) | |
Cost for federal income tax purposes | $ 551,983,906 |
The tax character of distributions paid was as follows:
November 30, | November 30, | |
Ordinary Income | $ 13,734,706 | $ 17,141,759 |
2. Operating Policies.
Repurchase Agreements. Fidelity Management & Research Company (FMR) has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts. These accounts are then invested in repurchase agreements that are collateralized by U.S. Treasury or Government obligations. The fund may also invest directly with institutions, in repurchase agreements that are collateralized by commercial paper obligations and corporate obligations. Collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. Collateral is marked-to-market daily and maintained at a value at least equal to the principal amount of the repurchase agreement (including accrued interest).
Annual Report
2. Operating Policies - continued
Delayed Delivery Transactions and When-Issued Securities. The fund may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. During the time a delayed delivery sell is outstanding, the contract is marked-to-market daily and equivalent deliverable securities are held for the transaction. The value of the securities purchased on a delayed delivery or when-issued basis are identified as such in the fund's Schedule of Investments. The fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract, or if the issuer does not issue the securities due to political, economic, or other factors.
Swap Agreements. The fund may invest in swaps for the purpose of managing its exposure to interest rate, credit or market risk.
Interest rate swaps are agreements to exchange cash flows periodically based on a notional principal amount, for example, the exchange of fixed rate interest payments for floating rate interest payments. The net receivable or payable is accrued daily and is included in interest income in the accompanying Statement of Operations. The primary risk associated with interest rate swaps is that unfavorable changes in the fluctuation of interest rates could adversely impact the fund.
Swaps are marked-to-market daily based on dealer-supplied valuations and changes in value are recorded as unrealized appreciation (depreciation). Gains or losses are realized upon early termination of the swap agreement. Collateral, in the form of cash or securities, may be required to be held in segregated accounts with the fund's custodian in compliance with swap contracts. Risks may exceed amounts recognized on the Statement of Assets and Liabilities. These risks include changes in the returns of the underlying instruments, failure of the counterparties to perform under the contracts' terms and the possible lack of liquidity with respect to the swap agreements. Details of swap agreements open at period end are included in the fund's Schedule of Investments under the caption "Swap Agreements."
Financing Transactions. To earn additional income, the fund may employ trading strategies which involve the sale and simultaneous agreement to repurchase similar securities ("mortgage dollar rolls") or the purchase and simultaneous agreement to sell similar securities ("reverse mortgage dollar rolls"). The securities traded are mortgage securities and bear the same interest rate but will be collateralized by different pools of mortgages. During the period between the sale and repurchase in a mortgage dollar roll
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Notes to Financial Statements - continued
2. Operating Policies - continued
Financing Transactions - continued
transaction, a fund will not be entitled to receive interest and principal payments on the securities sold but will invest the proceeds of the sale in other securities which may enhance the yield and total return. In addition, the difference between the sale price and the future purchase price is recorded as an adjustment to investment income. During the period between the purchase and subsequent sale in a reverse mortgage dollar roll transaction a fund is entitled to interest and principal payments on the securities purchased. The price differential between the purchase and sale is recorded as an adjustment to investment income. Losses may arise due to changes in the value of the securities or if the counterparty does not perform under the terms of the agreement. If the counterparty files for bankruptcy or becomes insolvent, the fund's right to repurchase or sell securities may be limited.
3. Purchases and Sales of Investments.
Information regarding purchases and sales of securities is included under the caption "Other Information" at the end of the fund's Schedule of Investments.
4. Fees and Other Transactions with Affiliates.
Management Fee. FMR and its affiliates provide the fund with investment management related services for which the fund pays a monthly management fee that is based on an annual rate of .45% of the fund's average net assets. FMR pays all other expenses, except the compensation of the non-interested Trustees and certain exceptions such as interest expense. The management fee paid to FMR by the fund is reduced by an amount equal to the fees and expenses paid by the fund to the non-interested Trustees.
5. Security Lending.
The fund lends portfolio securities from time to time in order to earn additional income. The fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the fund and any additional required collateral is delivered to the fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Cash collateral is invested in cash equivalents. The value of loaned securities and cash collateral at period end are disclosed on the fund's Statement of Assets and Liabilities.
Annual Report
6. Expense Reductions.
Through arrangements with the fund's custodian and transfer agent, credits realized as a result of uninvested cash balances were used to reduce the fund's expenses. During the period, these credits reduced the fund's expenses by $64,942
7. Other Information.
At the end of the period, one unaffiliated shareholder was the owner of record of 15% of the total outstanding shares of the fund.
Annual Report
Report of Independent Auditors
To the Trustees of Fidelity Advisor Series IV and the Shareholders of Fidelity Institutional Short-Intermediate Government Fund:
In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Institutional Short-Intermediate Government Fund (a fund of Fidelity Advisor Series IV) at November 30, 2003 and the results of its operations, the changes in its net assets and the financial highlights for the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fidelity Institutional Short-Intermediate Government Fund's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with auditing standards generally accepted in the United States of America which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at November 30, 2003 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
January 8, 2004
Annual Report
Trustees and Officers
The Trustees, Members of the Advisory Board, and executive officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, and review the fund's performance. Except for William O. McCoy, each of the Trustees oversees 291 funds advised by FMR or an affiliate. Mr. McCoy oversees 293 funds advised by FMR or an affiliate.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. In any event, each non-interested Trustee shall retire not later than the last day of the calendar year in which his or her 72nd birthday occurs. The executive officers and Advisory Board Members hold office without limit in time, except that any officer and Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-888-622-3175.
Interested Trustees*:
Correspondence intended for each Trustee who is an "interested person" (as defined in the 1940 Act) may be sent to 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation | |
Edward C. Johnson 3d (73)** | |
Year of Election or Appointment: 1983 Mr. Johnson is Chairman of the Board of Trustees. Mr. Johnson serves as Chief Executive Officer, Chairman, and a Director of FMR Corp.; a Director and Chairman of the Board and of the Executive Committee of FMR; Chairman and a Director of Fidelity Management & Research (Far East) Inc.; Chairman (1998) and a Director of Fidelity Investments Money Management, Inc.; and Chairman (2001) and a Director (2000) of FMR Co., Inc. | |
Abigail P. Johnson (41)** | |
Year of Election or Appointment: 2001 Senior Vice President of Institutional Short-Intermediate Government (2001). Ms. Johnson also serves as Senior Vice President of other Fidelity funds (2001). She is President and a Director of FMR (2001), Fidelity Investments Money Management, Inc. (2001), FMR Co., Inc. (2001), and a Director of FMR Corp. Previously, Ms. Johnson managed a number of Fidelity funds. | |
Laura B. Cronin (49) | |
Year of Election or Appointment: 2003 Ms. Cronin is an Executive Vice President (2002) and Chief Financial Officer (2002) of FMR Corp. and is a member of the Fidelity Management Committee (2003). Previously, Ms. Cronin served as Vice President of Finance of FMR (1997-1999), and Chief Financial Officer of FMR (1999-2001), Fidelity Personal Investments (2001), and Fidelity Brokerage Company (2001-2002). | |
Robert L. Reynolds (51) | |
Year of Election or Appointment: 2003 Mr. Reynolds is a Director (2003) and Chief Operating Officer (2002) of FMR Corp. and is the head of the Fidelity Management Committee (2003). He also serves on the Board at Fidelity Investments Canada, Ltd. (2000). Previously, Mr. Reynolds served as President of Fidelity Investments Institutional Retirement Group (1996-2000). | |
* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with FMR.
** Edward C. Johnson 3d, Trustee, is Abigail P. Johnson's father.
Annual Report
Non-Interested Trustees:
Correspondence intended for each non-interested Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Age; Principal Occupation | |
J. Michael Cook (61) | |
Year of Election or Appointment: 2001 Prior to Mr. Cook's retirement in May 1999, he served as Chairman and Chief Executive Officer of Deloitte & Touche LLP (accounting/consulting), Chairman of the Deloitte & Touche Foundation, and a member of the Board of Deloitte Touche Tohmatsu. He currently serves as a Director of Comcast (telecommunications, 2002), International Flavors & Fragrances, Inc. (2000), Rockwell Automation (2000) and The Dow Chemical Company (2000). He is a Member of the Diversity Advisory Council of Marakon (2003) and the Advisory Board of the Directorship Search Group, Chairman Emeritus of the Board of Catalyst (a leading organization for the advancement of women in business), and is Chairman of the Accountability Advisory Council to the Comptroller General of the United States. He also serves as a Member of the Advisory Board of the Graduate School of Business of the University of Florida, his alma mater. | |
Ralph F. Cox (71) | |
Year of Election or Appointment: 1991 Mr. Cox is President of RABAR Enterprises (management consulting for the petroleum industry). Prior to February 1994, he was President of Greenhill Petroleum Corporation (petroleum exploration and production). Until March 1990, Mr. Cox was President and Chief Operating Officer of Union Pacific Resources Company (exploration and production). He is a Director of CH2M Hill Companies (engineering), and Abraxas Petroleum (petroleum exploration and production, 1999). In addition, he is a member of advisory boards of Texas A&M University and the University of Texas at Austin. | |
Robert M. Gates (60) | |
Year of Election or Appointment: 1997 Dr. Gates is President of Texas A&M University (2002). He was Director of the Central Intelligence Agency (CIA) from 1991 to 1993. From 1989 to 1991, Dr. Gates served as Assistant to the President of the United States and Deputy National Security Advisor. Dr. Gates is a Director of NACCO Industries, Inc. (mining and manufacturing), and Parker Drilling Co., Inc. (drilling and rental tools for the energy industry, 2001). He also serves as a member of the Advisory Board of VoteHere.net (secure internet voting, 2001). Previously, Dr. Gates served as a Director of LucasVarity PLC (automotive components and diesel engines), a Director of TRW Inc. (automotive, space, defense, and information technology), and Dean of the George Bush School of Government and Public Service at Texas A&M University (1999-2001). Dr. Gates also is a Trustee of the Forum for International Policy. | |
George H. Heilmeier (67) | |
Year of Election or Appointment: 2004 Dr. Heilmeier is Chairman Emeritus of Telcordia Technologies (communication software and systems), where prior to his retirement, he served as company Chairman and Chief Executive Officer. He currently serves on the Boards of Directors of The Mitre Corporation (systems engineering and information technology support for the government), INET Technologies Inc. (telecommunications network surveillance, 2001) and Teletech Holdings (customer management services, 1998). He is Chairman of the General Motors Technology Advisory Committee and a Life Fellow of the IEEE (2000). Dr. Heilmeier is a member of the Defense Science Board and the National Security Agency Advisory Board. He is also a member of the National Academy of Engineering, the American Academy of Arts and Sciences and The Board of Overseers of the School of Engineering and Applied Science of the University of Pennsylvania. Previously, Dr. Heilmeier served as a Director of TRW Inc. (automotive, space, defense, and information technology, 1992-2002) and Compaq (1994-2002). | |
Donald J. Kirk (71) | |
Year of Election or Appointment: 1987 Mr. Kirk is a Governor of the American Stock Exchange (2001), a Trustee and former Chairman of the Board of Trustees of the Greenwich Hospital Association, a Director of the Yale-New Haven Health Services Corp. (1998), and a Director Emeritus and former Chairman of the Board of Directors of National Arts Strategies Inc. Mr. Kirk was an Executive-in-Residence (1995-2000) and a Professor (1987-1995) at Columbia University Graduate School of Business. Prior to 1987, he was Chairman of the Financial Accounting Standards Board. Previously, Mr. Kirk served as a Governor of the National Association of Securities Dealers, Inc. (1996-2002), a member and Vice Chairman of the Public Oversight Board of the American Institute of Certified Public Accountants' SEC Practice Section (1995-2002), a Director of General Re Corporation (reinsurance, 1987-1998) and as a Director of Valuation Research Corp. (appraisals and valuations). | |
Marie L. Knowles (57) | |
Year of Election or Appointment: 2001 Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. She currently serves as a Director of Phelps Dodge Corporation (copper mining and manufacturing), URS Corporation (multidisciplinary engineering, 1999), and McKesson Corporation (healthcare service, 2002). Ms. Knowles is a Trustee of the Brookings Institution and the Catalina Island Conservancy and also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California. | |
Ned C. Lautenbach (59) | |
Year of Election or Appointment: 2000 Mr. Lautenbach has been a partner of Clayton, Dubilier & Rice, Inc. (private equity investment firm) since September 1998. Previously, Mr. Lautenbach was with the International Business Machines Corporation (IBM) from 1968 until his retirement in 1998. He was most recently Senior Vice President and Group Executive of Worldwide Sales and Services. From 1993 to 1995, he was Chairman of IBM World Trade Corporation, and from 1994 to 1998 was a member of IBM's Corporate Executive Committee. Mr. Lautenbach serves as Chairman and as a Director (1998) of Acterna Corporation (communications test equipment). He is also Co-Chairman of Covansys, Inc. (global provider of business and technology solutions, 2000). In addition, he is a Director of Eaton Corporation (diversified industrial) and the Philharmonic Center for the Arts in Naples, Florida (1999). He also is a member of the Council on Foreign Relations. | |
Marvin L. Mann (70) | |
Year of Election or Appointment: 1993 Mr. Mann is Chairman of the non-interested Trustees (2001). He is Chairman Emeritus of Lexmark International, Inc. (computer peripherals) where he served as CEO until April 1998 and retired as Chairman May 1999, and remains a member of the Board. Prior to 1991, he held the positions of Vice President of International Business Machines Corporation (IBM) and President and General Manager of various IBM divisions and subsidiaries. Mr. Mann is a Board member of Imation Corp. (imaging and information storage) and Acterna Corporation (communications test equipment, 1999). He is also a member of the Director Services Committee of the Investment Company Institute. In addition, Mr. Mann is a member of the President's Cabinet at the University of Alabama and the Board of Visitors of the Culverhouse College of Commerce and Business Administration at the University of Alabama. | |
William O. McCoy (70) | |
Year of Election or Appointment: 1997 Prior to his retirement in December 1994, Mr. McCoy was Vice Chairman of the Board of BellSouth Corporation (telecommunications) and President of BellSouth Enterprises. He is currently a Director of Liberty Corporation (holding company), Duke Realty Corporation (real estate), Progress Energy, Inc. (electric utility), and Acterna Corporation (communications test equipment, 1999). He is also a partner of Franklin Street Partners (private investment management firm) and a member of the Research Triangle Foundation Board. In addition, Mr. McCoy served as the Interim Chancellor (1999-2000) and a member of the Board of Visitors (1994-1998) for the University of North Carolina at Chapel Hill and currently serves on the Board of Directors of the University of North Carolina Health Care System and the Board of Visitors of the Kenan-Flagler Business School (University of North Carolina at Chapel Hill). He also served as Vice President of Finance for the University of North Carolina (16-school system, 1995-1998). | |
William S. Stavropoulos (64) | |
Year of Election or Appointment: 2002 Mr. Stavropoulos is Chairman of the Board, President and CEO (2002), and Chairman of the Executive Committee (2000) and a Director of The Dow Chemical Company. Since joining The Dow Chemical Company in 1967, Mr. Stavropoulos served in numerous senior management positions, including President (1993-2000) and Chief Executive Officer (1995-2000). Currently, he is a Director of NCR Corporation (data warehousing and technology solutions), BellSouth Corporation (telecommunications), Chemical Financial Corporation, and Maersk Inc. (industrial conglomerate, 2002). He also serves as a member of the Board of Trustees of the American Enterprise Institute for Public Policy Research. In addition, Mr. Stavropoulos is a member of The Business Council, J.P. Morgan International Council, World Business Council for Sustainable Development, and the University of Notre Dame Advisory Council for the College of Science. | |
Annual Report
Trustees and Officers - continued
Advisory Board Members and Executive Officers:
Correspondence intended for Ms. Small may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for each executive officer and Mr. Lynch may be sent to 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation | |
Peter S. Lynch (60) | |
Year of Election or Appointment: 2003 Member of the Advisory Board of Fidelity Advisor Series IV. Vice Chairman and a Director of FMR, and Vice Chairman (2001) and a Director (2000) of FMR Co., Inc. Previously, Mr. Lynch served as a Trustee of the Fidelity funds (1990-2003). Prior to May 31, 1990, he was a Director of FMR and Executive Vice President of FMR (a position he held until March 31, 1991), Vice President of Fidelity® Magellan® Fund and FMR Growth Group Leader, and Managing Director of FMR Corp. Mr. Lynch was also Vice President of Fidelity Investments Corporate Services. In addition, he serves as a Trustee of Boston College, Massachusetts Eye & Ear Infirmary, Historic Deerfield, John F. Kennedy Library, and the Museum of Fine Arts of Boston. | |
Cornelia M. Small (59) | |
Year of Election or Appointment: 2004 Member of the Advisory Board of Fidelity Advisors Series IV. Ms. Small is a member (2000) and Chairperson (2002) of the Investment Committee, and a member (2002) of the Board of Trustees of Smith College. Previously, she served as Chief Investment Officer (1999-2000), Director of Global Equity Investments (1996-1999), and a member of the Board of Directors (1998-1999) of Scudder Kemper Investments. In addition, Ms. Small served as Co-Chair (2000-2003) of the Annual Fund for the Fletcher School of Law and Diplomacy. | |
Dwight D. Churchill (49) | |
Year of Election or Appointment: 1997 Vice President of Institutional Short-Intermediate Government. He serves as Head of Fidelity's Fixed-Income Division (2000), Vice President of Fidelity's Money Market Funds (2000), Vice President of Fidelity's Bond Funds (1997), and Senior Vice President of FIMM (2000) and FMR (1997). Mr. Churchill joined Fidelity in 1993 as Vice President and Group Leader of Taxable Fixed-Income Investments. | |
Charles S. Morrison (42) | |
Year of Election or Appointment: 2002 Vice President of Institutional Short-Intermediate Government. Mr. Morrison also serves as Vice President of Fidelity's Bond Funds (2002), and Vice President of certain Asset Allocation and Balanced Funds (2002). He serves as Vice President (2002) and Bond Group Leader (2002) of Fidelity Investments Fixed Income Division. Mr. Morrison is also Vice President of FIMM (2002) and FMR (2002). Mr. Morrison joined Fidelity in 1987 as a Corporate Bond Analyst in the Fixed Income Research Division. | |
George Fischer (42) | |
Year of Election or Appointment: 2002 Vice President of Institutional Short-Intermediate Government, which he has managed since June 2002. He also manages other Fidelity funds. Since joining Fidelity Investments in 1989, Mr. Fischer has worked as a research analyst and manager. | |
Eric D. Roiter (55) | |
Year of Election or Appointment: 1998 Secretary of Institutional Short-Intermediate Government. He also serves as Secretary of other Fidelity funds (1998); Vice President, General Counsel, and Clerk of FMR Co., Inc. (2001) and FMR (1998); Vice President and Clerk of FDC (1998); Assistant Clerk of Fidelity Management & Research (U.K.) Inc. (2001) and Fidelity Management & Research (Far East) Inc. (2001); and Assistant Secretary of Fidelity Investments Money Management Inc. (2001). Prior to joining Fidelity, Mr. Roiter was with the law firm of Debevoise & Plimpton, as an associate (1981-1984) and as a partner (1985-1997), and served as an Assistant General Counsel of the U.S. Securities and Exchange Commission (1979-1981). Mr. Roiter is an Adjunct Member, Faculty of Law, at Boston College Law School (2003). | |
Stuart Fross (44) | |
Year of Election or Appointment: 2003 Assistant Secretary of Institutional Short-Intermediate Government. Mr. Fross also serves as Assistant Secretary of other Fidelity funds (2003) and is an employee of FMR. | |
Maria F. Dwyer (44) | |
Year of Election or Appointment: 2002 President and Treasurer of Institutional Short-Intermediate Government. Ms. Dwyer also serves as President and Treasurer of other Fidelity funds (2002) and is a Vice President (1999) and an employee (1996) of FMR. Prior to joining Fidelity, Ms. Dwyer served as Director of Compliance for MFS Investment Management. | |
Timothy F. Hayes (52) | |
Year of Election or Appointment: 2002 Chief Financial Officer of Institutional Short-Intermediate Government. Mr. Hayes also serves as Chief Financial Officer of other Fidelity funds (2002). Recently he was appointed President of Fidelity Service Company (2003) where he also serves as a Director. Mr. Hayes also serves as President of Fidelity Investments Operations Group (FIOG, 2002), which includes Fidelity Pricing and Cash Management Services Group (FPCMS), where he was appointed President in 1998. Previously, Mr. Hayes served as Chief Financial Officer of Fidelity Investments Corporate Systems and Service Group (1998) and Fidelity Systems Company (1997-1998). | |
Jennifer S. Taub (36) | |
Year of Election or Appointment: 2003 Assistant Vice President of Institutional Short-Intermediate Government. Ms. Taub is Assistant Vice President of Fidelity's Fixed-Income Funds (2003), Assistant Secretary of FIMM (2003), and is an employee of FMR. | |
John R. Hebble (45) | |
Year of Election or Appointment: 2003 Deputy Treasurer of Institutional Short-Intermediate Government. Mr. Hebble also serves as Deputy Treasurer of other Fidelity funds (2003), and is an employee of FMR. Before joining Fidelity Investments, Mr. Hebble worked at Deutsche Asset Management where he served as Director of Fund Accounting (2002-2003) and Assistant Treasurer of the Scudder Funds (1998-2003). | |
John H. Costello (57) | |
Year of Election or Appointment: 1986 Assistant Treasurer of Institutional Short-Intermediate Government. Mr. Costello also serves as Assistant Treasurer of other Fidelity funds and is an employee of FMR. | |
Francis V. Knox, Jr. (56) | |
Year of Election or Appointment: 2002 Assistant Treasurer of Institutional Short-Intermediate Government. Mr. Knox also serves as Assistant Treasurer of other Fidelity funds (2002), and is a Vice President and an employee of FMR. Previously, Mr. Knox served as Vice President of Investment & Advisor Compliance (1990-2001), and Compliance Officer of Fidelity Management & Research (U.K.) Inc. (1992-2002), Fidelity Management & Research (Far East) Inc. (1991-2002), and FMR Corp. (1995-2002). | |
Mark Osterheld (48) | |
Year of Election or Appointment: 2002 Assistant Treasurer of Institutional Short-Intermediate Government Fund. Mr. Osterheld also serves as Assistant Treasurer of other Fidelity funds (2002) and is an employee of FMR. | |
Thomas J. Simpson (45) | |
Year of Election or Appointment: 1998 Assistant Treasurer of Institutional Short-Intermediate Government. Mr. Simpson is Assistant Treasurer of other Fidelity funds (2000) and an employee of FMR (1996). Prior to joining FMR, Mr. Simpson was Vice President and Fund Controller of Liberty Investment Services (1987-1995). | |
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Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Adviser
Fidelity Investments Money
Management, Inc.
Fidelity International Investment
Advisors
Fidelity International Investment
Advisors (U.K.) Limited
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Shareholder Servicing Agent
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Custodian
The Bank of New York
New York, NY
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
ISIG-UANN-0104
1.786710.100
Item 2. Code of Ethics
As of the end of the period, November 30, 2003, Fidelity Advisor Series IV: Fidelity Institutional Short-Intermediate Government Fund has adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies to its President and Treasurer and its Chief Financial Officer. A copy of the code of ethics is filed as an exhibit to this Form N-CSR.
Item 3. Audit Committee Financial Expert
The Board of Trustees of Fidelity Advisor Series IV: Fidelity Institutional Short-Intermediate Government Fund has determined that Marie L. Knowles and Donald J. Kirk are each audit committee financial experts, as defined in Item 3 of Form N-CSR. Ms. Knowles and Mr. Kirk are each independent for purposes of Item 3 of Form N-CSR.
Item 4. Principal Accountant Fees and Services
Not applicable.
Item 5. Audit Committee of Listed Registrants
Not applicable.
Item 6. Reserved
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8. Reserved
Item 9. Submission of Matters to a Vote of Security Holders
Not applicable.
Item 10. Controls and Procedures
(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the Fidelity Advisor Series IV: Fidelity Institutional Short-Intermediate Government Fund's (the "Fund") disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) provide reasonable assurances that material information relating to the Fund is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.
(a)(ii) There was no change in the Fund's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the Fund's second fiscal half-year that has materially affected, or is reasonably likely to materially affect, the Fund's internal control over financial reporting.
Item 11. Exhibits
(a) | (1) | Code of Ethics pursuant to Item 2 of Form N-CSR is filed and attached hereto as EX-99.CODE ETH. |
(a) | (2) | Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT. |
(b) | Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Fidelity Advisor Series IV
By: | /s/Maria Dwyer |
Maria Dwyer | |
President and Treasurer | |
Date: | January 28, 2004 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/Maria Dwyer |
Maria Dwyer | |
President and Treasurer | |
Date: | January 28, 2004 |
By: | /s/Timothy F. Hayes |
Timothy F. Hayes | |
Chief Financial Officer | |
Date: | January 28, 2004 |