SUPPLEMENT TO THE SPARTAN MARKET INDEX FUND(registered trademark) JUNE
26, 1999 PROSPECTUS
The following information replaces the first paragraph in the "Fee
Table" section on page 4.
The following table describes the fees and expenses that are incurred
when you buy, hold, or sell shares of the fund. The annual fund
operating expenses provided below for the fund are based on historical
expenses, adjusted to reflect current fees, but do not reflect the
effect of any expense reimbursements.
The following information replaces the "Annual fund operating
expenses" table and footnote A found in the "Fee Table" section on
page 5.
ANNUAL FUND OPERATING EXPENSES (PAID FROM FUND ASSETS)
Management fee 0.24%
Distribution and Service None
(12b-1) fee
Other expenses 0.16%
Total annual fund operating 0.40%
expensesA
A EFFECTIVE APRIL 18, 1997, FMR HAS AGREED TO REIMBURSE THE FUND TO
THE EXTENT THAT TOTAL OPERATING EXPENSES (EXCLUDING INTEREST, TAXES,
SECURITIES LENDING COSTS, BROKERAGE COMMISSIONS AND EXTRAORDINARY
EXPENSES), AS A PERCENTAGE OF ITS AVERAGE NET ASSETS, EXCEED 0.19%.
THIS ARRANGEMENT CAN BE DISCONTINUED BY FMR AT ANY TIME.
The following information replaces similar information found under the
heading "Selling Shares" in the "Buying and Selling Shares" section on
page 12.
(small solid bullet) Redemption proceeds may be paid in securities or
other property rather than in cash if FMR determines it is in the best
interests of the fund.
The following information replaces the fifth paragraph in the "Fund
Management" section on page 20.
BT serves as sub-adviser and custodian for the fund. BT chooses the
fund's investments and places orders to buy and sell the fund's
investments.
The following information replaces the eighth paragraph in the "Fund
Management" section on page 20.
Effective June 4, 1999, Bankers Trust Corporation and all of its
subsidiaries, including BT, merged with and into a subsidiary of
Deutsche Bank AG. At a meeting held on March 18, 1999, the fund's
Board of Trustees approved a new sub-advisory agreement among the
fund, FMR and BT or its successor by merger that became effective June
4, 1999. At a meeting held on September 15, 1999, shareholders
approved this agreement.
The following information replaces the second and third full
paragraphs in the "Fund Management" section on page 21.
The fund pays a management fee to FMR. The management fee is
calculated and paid to FMR every month. The fund's annual management
fee rate is 0.24% of its average net assets.
FMR pays BT for providing investment management and custodial
services.
Prior to October 1, 1999, the fund paid a management fee at an annual
rate of 0.24% of its average net assets to FMR and a sub-advisory fee
(representing 40% of net income from securities lending) to BT. The
total management and sub-advisory fees for the fund for the fiscal
year ended April 30, 1999, were 0.24%.
