Dear Shareholder:
Several weeks ago, we mailed you proxy information so that you could vote
on a proposal to merge Spartan Long-Term Government Bond Fund with Spartan
Government Income Fund, a larger government bond fund also managed by
Fidelity Management & Research Company. The information included a proxy
statement describing the merger proposal and all the materials you needed
to vote by mail. I am reminding you to vote, if you haven't done so
already, and have enclosed another proxy card for your convenience.
YOUR VOTE IS IMPORTANT.
Your vote must be received before the fund's shareholder meeting scheduled
for May 7, 1996. Unless at least 50% of the fund's shares are voted by the
meeting date, Fidelity will have to delay or hold another meeting, which
can be expensive.
HERE IS A BRIEF SUMMARY OF THE PROPOSAL.
The Trustees of Spartan Long-Term Government Bond Fund are recommending
that the fund merge with Spartan Government Income Fund. If shareholders
vote to approve the merger, Spartan Long-Term Government Bond Fund will
cease to exist and you will become a shareholder of Spartan Government
Income Fund instead.
Both funds currently have the same portfolio manager, but have different
investment policies and goals. Spartan Government Income Fund invests in a
broad cross-section of the government bond market, including short,
intermediate, and long-term securities. Spartan Long-Term Government Bond
Fund has invested almost exclusively in long-term bonds. As a result,
Spartan Government Income Fund has tended to have less volatile performance
than Spartan long-Term Government Bond Fund, rising less in up markets and
falling less in down markets. Overall, it follows a more moderate
investment style.
If the merger is approved, shareholders of the merged fund will enjoy lower
operating expenses for a period of two years. Fidelity has agreed to
reduce its management fee from 0.65% to 0.60% for this period if the merger
is approved. If shareholders vote against the merger, the funds will
remain separate and expenses will not be reduced.
The Trustees, most of whom are not affiliated with Fidelity, are
responsible for protecting your interests as a shareholder. The Trustees
believe that the merger is in shareholders' best interests, and recommend
that you vote for the proposal. But the final decision is up to you.
VOTING BY MAIL OR FAX IS QUICK AND EASY. EVERYTHING YOU NEED IS ENCLOSED.
We encourage you to exercise your right as a shareholder and to vote
promptly. To cast your ballot, simply record your vote on the enclosed
proxy card. Be sure to sign the card before mailing it in the postage-paid
envelope provided. If you prefer, you can fax your vote to us at
617-871-2569.
If you have any questions before you vote, please call us at
1-800-544-8888. Thank you for participating in this important initiative
for your fund. Your vote is extremely important, no matter how many shares
you own. Please return your voting card promptly.
Sincerely,
Edward C. Johnson 3d
President
