SUPPLEMENT TO
THE SPARTAN(registered trademark)
BOND STRATEGIST
PROSPECTUS
DATED FEBRUARY 20, 1996
The following information replaces in its entirety the fourth paragraph of
the "Investment Principles and Risks" section beginning on page 9.
The fund's level of risk and potential reward depend on the quality and
maturity of its investments. The fund invests in investment-grade
securities under normal conditions. 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 bonds with
maturities between 8 and 18 years. As of December 31, 1995, the fund's
dollar-weighted average maturity was approximately 11.4 years.
The following information replaces the similar information found under
"Debt Securities" in the "Securities and Investment Practices" section
beginning on page 10.
DEBT SECURITIES. Bonds and other debt instruments are used by issuers to
borrow money from investors. The issuer pays the investor a fixed or
variable rate of interest, and must repay the amount borrowed at maturity.
Some debt securities, such as zero coupon bonds, do not pay current
interest, but are purchased at a discount from their face values. In
general, bond prices rise when interest rates fall, and vice versa. Debt
securities have varying degrees of quality and varying levels of
sensitivity to changes in interest rates. Longer-term bonds are generally
more sensitive to interest rate changes than short-term bonds.
Investment-grade debt securities are medium- and high-quality securities.
Some, however, may possess speculative characteristics, and may be more
sensitive to economic changes and to changes in the financial condition of
issuers.
RESTRICTIONS: The fund normally in vests in investment-grade
securities, but reserves the right to invest up to 5% of its assets in
below investment-grade securities (sometimes called "junk bonds"). A
security is considered to be investment-grade if it is rated
investment-grade by Moody's Investors Service, Standard & 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.
