SCHEDULE 14A INFORMATION
PROXY STATEMENT PURSUANT TO SECTION 14(a)
OF THE SECURITIES EXCHANGE ACT OF 1934
Filed by the Registrant [X]
Filed by a Party other than the Registrant [ ]
Check the appropriate box:
[ ] Preliminary Proxy Statement
[X] Definitive Proxy Statement
[ ] Definitive Additional Materials
[ ] Soliciting Material Pursuant to Sec. 240.14a-11(c) or Sec. 240.14a-12
Fidelity Advisor Series IV
(Name of Registrant as Specified In Its Charter)
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
Payment of Filing Fee (Check appropriate box):
[X] No fee required.
[ ] Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.
(1) Title of each class of securities to which transaction applies:
(2) Aggregate number of securities to which transaction applies:
(3) Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule 0-11:
(4) Proposed maximum aggregate value of transaction:
(5) Total Fee Paid:
[ ] Fee paid previously with preliminary materials.
[ ] Check box if any part of the fee is offset as provided by Exchange Act
Rule 0-11(a)(2) and identify the filing for which the offsetting fee was
paid previously. Identify the previous filing by registration statement
number, or the Form or Schedule and the date of its filing.
(1) Amount Previously Paid:
(2) Form, Schedule or Registration Statement No.:
(3) Filing Party:
(4) Date Filed:
FIDELITY REAL ESTATE HIGH INCOME FUND
A FUND OF
FIDELITY ADVISOR SERIES IV
82 DEVONSHIRE STREET, BOSTON, MASSACHUSETTS 02109
1-617-563-6414
NOTICE OF SPECIAL MEETING OF SHAREHOLDERS
NOTICE IS HEREBY GIVEN that a Special Meeting of Shareholders (the
"Meeting") of Fidelity Real Estate High Income Fund (the "Fund"), a series of
Fidelity Advisor Series IV (the "Trust"), will be held at the office of the
Trust, 82 Devonshire Street, Boston, Massachusetts 02109 on May 6, 1998, at 9:00
a.m. The purpose of the Meeting is to consider and act upon the following
proposal, and to transact such other business as may properly come before the
Meeting or any adjournments thereof.
1. To amend the fund's fundamental investment objective to allow investment
in a wider range of real estate-related instruments.
The Board of Trustees has fixed the close of business on April 8, 1998, as
the record date for the determination of the shareholders of the Fund entitled
to notice of, and to vote at, such Meeting and any adjournments thereof.
By order of the Board of Trustees,
ERIC D. ROITER, Secretary
APRIL 16, 1998
YOUR VOTE IS IMPORTANT -
PLEASE RETURN YOUR PROXY CARD PROMPTLY.
SHAREHOLDERS ARE INVITED TO ATTEND THE MEETING IN PERSON. ANY SHAREHOLDER WHO
DOES NOT EXPECT TO ATTEND THE MEETING IS URGED TO INDICATE VOTING INSTRUCTIONS
ON THE ENCLOSED PROXY CARD, DATE AND SIGN IT, AND RETURN IT IN THE ENVELOPE
PROVIDED, WHICH NEEDS NO POSTAGE IF MAILED IN THE UNITED STATES. IN ORDER TO
AVOID UNNECESSARY EXPENSE, WE ASK YOUR COOPERATION IN MAILING YOUR PROXY CARD
PROMPTLY, NO MATTER HOW LARGE OR SMALL YOUR HOLDINGS MAY BE.
INSTRUCTIONS FOR EXECUTING PROXY CARD
The following general rules for executing proxy cards may be of assistance
to you and help avoid the time and expense involved in validating your vote if
you fail to execute your proxy card properly.
1. INDIVIDUAL ACCOUNTS: Your name should be signed exactly as it appears
in the registration on the proxy card.
2. JOINT ACCOUNTS: Either party may sign, but the name of the party
signing should conform exactly to a name shown in the registration.
3. ALL OTHER ACCOUNTS should show the capacity of the individual signing.
This can be shown either in the form of the account registration
itself or by the individual executing the proxy card. For example:
REGISTRATION VALID SIGNATURE
A. 1) ABC Corp. John Smith, Treasurer
2) ABC Corp. John Smith, Treasurer
c/o John Smith, Treasurer
B. 1) ABC Corp. Profit Sharing Plan Ann B. Collins, Trustee
2) ABC Trust Ann B. Collins, Trustee
3) Ann B. Collins, Trustee Ann B. Collins, Trustee
u/t/d 12/28/78
C. 1) Anthony B. Craft, Cust. Anthony B. Craft
f/b/o Anthony B. Craft, Jr.
UGMA
PROXY STATEMENT
SPECIAL MEETING OF SHAREHOLDERS OF
FIDELITY REAL ESTATE HIGH INCOME FUND
A FUND OF
FIDELITY ADVISOR SERIES IV
TO BE HELD ON MAY 6, 1998
82 Devonshire Street, Boston, Massachusetts 02109
1-617-563-6414
This Proxy Statement is furnished in connection with a solicitation of
proxies made by, and on behalf of, the Board of Trustees of Fidelity Advisor
Series IV (the "Trust") to be used at the Special Meeting of Shareholders of
Fidelity Real Estate High Income Fund (the "Fund") and at any adjournments
thereof (the "Meeting"), to be held on May 6, 1998, at 9:00 a.m. at 82
Devonshire Street, Boston, Massachusetts 02109, the principal executive office
of the trust and Fidelity Management & Research Company ("FMR"), the fund's
investment adviser.
The purpose of the Meeting is set forth in the accompanying Notice. The
solicitation is made primarily by the mailing of this Proxy Statement and the
accompanying proxy card on or about April 16, 1998. The expenses in connection
with preparing this Proxy Statement and its enclosures will be borne by FMR. The
principal business address of FMR and Fidelity Distributors Corporation ("FDC"),
the fund's principal underwriter and distribution agent, is 82 Devonshire
Street, Boston, Massachusetts 02109.
If the enclosed proxy card is executed and returned, it may nevertheless
be revoked at any time prior to its use by written notification received by the
trust, by the execution of a later-dated proxy card, or by attending the Meeting
and voting in person.
All proxy cards solicited by the Board of Trustees that are properly
executed and received by the Secretary prior to the Meeting, and which are not
revoked, will be voted at the Meeting. Shares represented by such proxies will
be voted in accordance with the instructions thereon. If no specification is
made on a proxy card, it will be voted FOR the matters specified on the proxy
card. Only proxies that are voted will be counted towards establishing a quorum.
Broker non-votes are not considered voted for this purpose. Shareholders should
note that while votes to ABSTAIN will count toward establishing a quorum,
passage of any proposal being considered at the Meeting will occur only if a
sufficient number of votes are cast FOR the proposal. Accordingly, votes to
ABSTAIN and votes AGAINST will have the same effect in determining whether the
proposal is approved.
On February 28, 1998, there were 7,002,738.965 shares of the fund issued
and outstanding.
As of February 28, 1998, the trustees and officers of the trust owned, in
the aggregate, less than 1% of the fund's outstanding shares.
To the knowledge of the trust, beneficial ownership of the fund on
February 28, 1998, was as follows:
GTE Service Corporation, Stamford, CT 66.96%
NCR Corporation, Dayton, OH 33.04%
Shareholders of record at the close of business on April 8, 1998, will be
entitled to receive this Statement and to give consent.
FOR A FREE COPY OF THE FUND'S PROSPECTUS ("PROSPECTUS") AND STATEMENT OF
ADDITIONAL INFORMATION ("SAI"), EACH DATED MARCH 30, 1998, ITS ANNUAL REPORT FOR
THE FISCAL YEAR ENDED NOVEMBER 30, 1997, AND ITS SEMIANNUAL REPORT FOR THE
FISCAL PERIOD ENDED MAY 31, 1997, CALL FIDELITY INVESTMENTS AT 1-617-563-6414 OR
WRITE TO FIDELITY DISTRIBUTORS CORPORATION AT 82 DEVONSHIRE STREET, BOSTON,
MASSACHUSETTS 02109.
VOTE REQUIRED: APPROVAL OF PROPOSAL 1 REQUIRES THE AFFIRMATIVE VOTE OF A
"MAJORITY OF THE OUTSTANDING VOTING SECURITIES" OF THE FUND. UNDER THE
INVESTMENT COMPANY ACT OF 1940 (THE "1940 ACT"), THE VOTE OF A "MAJORITY OF THE
OUTSTANDING VOTING SECURITIES" MEANS THE AFFIRMATIVE VOTE OF THE LESSER OF (A)
67% OR MORE OF THE VOTING SECURITIES PRESENT AT THE MEETING OR REPRESENTED BY
PROXY IF THE HOLDERS OF MORE THAN 50% OF THE OUTSTANDING VOTING SECURITIES ARE
PRESENT OR REPRESENTED BY PROXY OR (B) MORE THAN 50% OF THE OUTSTANDING VOTING
SECURITIES. BROKER NON-VOTES ARE NOT CONSIDERED "PRESENT" FOR THIS PURPOSE.
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1. TO AMEND THE FUND'S FUNDAMENTAL INVESTMENT OBJECTIVE TO ALLOW INVESTMENT
IN A WIDER RANGE OF REAL ESTATE-RELATED INSTRUMENTS.
The Board of Trustees has approved, and recommends that the shareholders
of the fund approve, a proposed amendment to the fund's investment objective
which would allow a greater degree of investment in real estate-related
instruments that are not commercial mortgage-backed securities ("CMBS").
Fidelity Real Estate High Income Fund's current fundamental investment
objective is as follows:
The fund seeks a high level of current income by investing primarily
in commercial mortgage-backed securities.
The Trustees recommend that shareholders of the fund vote to replace the fund's
current fundamental investment objective with the following amended fundamental
investment objective:
The fund seeks a high level of current income by investing primarily
in real estate-related instruments. As a secondary objective, the
fund also seeks growth of capital.
Approval of the amended fundamental investment objective would effect two
changes to the existing investment objective of the fund: (1) it would expand
the range of real estate-related instruments in which the fund may invest; and
(2) it would establish growth of capital as a secondary objective.
Since the fund commenced operations in 1995, the relative return of CMBS,
taking credit and other risk into account, has diminished compared to that of
other high-yielding bonds. When the fund was introduced, high-yielding CMBS
offered 200-300 basis points greater yield than comparable high-yielding
corporate bonds with similar risk. Because the number of buyers has increased,
this magnitude of additional yield is generally no longer available, and other
real estate-related instruments sometimes offer what FMR believes to be better
risk/return profiles.
In conjunction with the proposed change to the fund's fundamental
investment objective, the fund's non-fundamental name test policy is also being
revised. Under the fund's current name test policy, at least 65% of the fund's
total assets will normally be invested in lower-quality real estate debt
securities, primarily commercial mortgage-backed securities and other
mortgage-related securities. The revised policy would state:
Under normal market conditions, FMR will invest at least 65% of the
Fund's total assets in commercial and residential mortgage-backed
securities; debt securities of real estate entities; equity
securities of entities whose primary assets are mortgage loans or
commercial or residential mortgage-backed securities; and preferred
stock of real estate investment trusts.
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For purposes of this name test policy, a "real estate entity" is any company
that is primarily engaged in the real estate industry. FMR considers a company
to be primarily engaged in the real estate industry if at least 50% of its
assets, gross income, or net profits are committed to, or derived from, real
estate.
The Board of Trustees has also approved the adoption of three new
non-fundamental policies. The first of these is as follows:
Under normal market conditions, FMR will invest at least 90% of the
Fund's net assets in commercial and residential mortgage-backed
securities; debt securities of real estate entities; equity
securities of entities whose primary assets are mortgage loans or
commercial or residential mortgage-backed securities; preferred
stock of real estate investment trusts; U.S. Government securities;
cash equivalents; and related futures and options.
For purposes of this policy, the term "real estate entity" will have the same
definition as set out above for the proposed revision to the fund's 65% name
test policy.
The second new non-fundamental policy governs investments in non-U.S.
dollar-denominated securities.
The fund does not currently intend to invest more than 5% of its
total assets in non-U.S. dollar-denominated securities.
This policy is not expected to significantly affect the way in which the fund is
managed, the investment performance of the fund, or the securities or
instruments in which the fund invests.
The third new non-fundamental policy governs investments in emerging
market securities.
The fund does not currently intend to invest in any emerging market
securities.
For purposes of this investment policy, countries with emerging markets
include countries (i) that have an emerging stock market, as defined by the
International Finance Corporation, (ii) with low- to middle-income economies,
according to the World Bank, or (iii) that are listed in World Bank publications
as "developing."
Changes in non-fundamental investment policies can be made without
shareholder approval but are subject to the supervision of the Board of
Trustees, and to appropriate disclosure to fund shareholders and prospective
investors.
For a further discussion of the real estate-related instruments in which
the fund may invest, see "Investment Principles and Risks - Securities and
Investment Practices" in the fund's Prospectus and "Investment Policies and
Limitations" in the SAI, each of which is incorporated herein by this reference.
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FMR believes that the broader fundamental investment objective and name
test policy will benefit shareholders of the fund because the broader
flexibility to invest in real estate-related securities should assist FMR in
enhancing the fund's performance through security selection and would allow for
increased diversification. In addition, FMR believes that the establishment of
growth of capital as a secondary objective of the fund is consistent with its
investment in high-yield instruments since a significant portion of the return
on such instruments may be derived from appreciation in the value of the
underlying security.
CONCLUSION. The Board of Trustees has considered the proposal to revise
the fund's fundamental investment objective and believes that the revision will
benefit the fund and its shareholders. The Trustees recommend voting FOR the
proposal. Upon shareholder approval, the revised fundamental investment
objective will become effective when the fund's Prospectus is revised or
supplemented. If the proposal is not approved by the shareholders of the fund,
the fund's current fundamental investment objective will remain unchanged.
OTHER BUSINESS
The Board knows of no other business to be brought before the Meeting.
However, if any other matters properly come before the Meeting, it is the
intention that proxies that do not contain specific instructions to the contrary
will be voted on such matters in accordance with the judgment of the persons
therein designated.
SUBMISSION OF CERTAIN SHAREHOLDER PROPOSALS
The trust does not hold annual shareholder meetings. Shareholders wishing
to submit proposals for inclusion in a proxy statement for a subsequent
shareholder meeting should send their written proposals to the Secretary of the
Trust, 82 Devonshire Street, Boston, Massachusetts 02109.
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Your prompt response will save your fund the expense of
additional mailings.
Return the proxy card in the enclosed envelope or mail to:
FIDELITY INVESTMENTS
Proxy Department
P.O. Box 9107
Hingham, MA 02043-9848
PLEASE FOLD AND DETACH CARD AT PERFORATION BEFORE MAILING.
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FIDELITY ADVISOR SERIES IV: FIDELITY REAL ESTATE HIGH INCOME FUND
PROXY SOLICITED BY THE TRUSTEES
The undersigned, revoking previous proxies, hereby appoint(s) Edward C. Johnson
3d and Eric D. Roiter, or any one or more of them, attorneys, with full power of
substitution, to vote all shares of Fidelity Advisor Series IV: Fidelity Real
Estate High Income Fund which the undersigned is entitled to vote at the Special
Meeting of Shareholders of the fund to be held at the office of the trust at 82
Devonshire Street, Boston, Massachusetts 02109, on May 6, 1998, at 9:00 a.m. and
at any adjournments thereof. All powers may be exercised by a majority of said
proxy holders or substitutes voting or acting or, if only one votes and acts,
then by that one. This Proxy shall be voted on the proposal described in the
Proxy Statement as specified on the reverse side. Receipt of the Notice of the
Meeting and the accompanying Proxy Statement is hereby acknowledged.
Date ________________________, 1998
NOTE: Please sign exactly as your name
appears on this Proxy. When signing in a
fiduciary capacity, such as executor,
administrator, trustee, attorney, guardian,
etc., please so indicate. Corporate and
partnership proxies should be signed by an
authorized person indicating the person's
title.
---------------------------------
---------------------------------
Signature(s) (Title(s), if applicable)
PLEASE SIGN, DATE, AND RETURN PROMPTLY IN
ENCLOSED ENVELOPE
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Please refer to the Proxy Statement discussion of these matters.
IF NO SPECIFICATION IS MADE, THE PROXY SHALL BE VOTED FOR THE PROPOSAL.
As to any other matter, said attorneys shall vote in accordance with their best
judgment.
THE BOARD OF TRUSTEES RECOMMENDS A VOTE FOR THE FOLLOWING: PLEASE FOLD AND
DETACH CARD AT PERFORATION BEFORE MAILING.
==============================================================================
PLEASE VOTE BY FILLING IN THE APPROPRIATE BOX BELOW, AS SHOWN, USING BLUE OR
BLACK INK OR DARK PENCIL. DO NOT USE RED INK.
1. To amend the fundamental investment FOR [ ] AGAINST [ ] ABSTAIN [ ]
objective to allow investment in a
wider range of real estate-related
instruments.
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