SUPPLEMENT TO
THE SPARTAN(registered trademark) SHORT-INTERMEDIATE GOVERNMENT FUND
AND SPARTAN(registered trademark) GOVERNMENT INCOME FUND JUNE 21, 1997
PROSPECTUS
The following information replaces similar information found in
"Investment Principles and Risks" beginning on page 12 .
ILLIQUID SECURITIES. So me investments may be determined by FMR,
under the supervision of the Board of Trustees, to be illiquid, which
means that they may be difficult to sell promptly at an acceptable
price. Difficulty in selling securities may result in a loss or may be
costly to a fund.
INTEREST RATE RISK. In general, bond prices rise when interest rates
fall and fall when interest rates rise. Longer-term bonds are usually
more sensitive to interest rate changes. In other words, the longer
the maturity of a bond, the greater the impact a change in interest
rates is likely to have on the bond's price. In addition, short-term
interest rates and long-term interest rates do not necessarily move in
the same direction. A short-term bond tends to react to changes in
short-term interest rates and a long-term bond tends to react to
changes in long-term interest rates.
PREPAYMENT RISK. Many types of debt securities, including mortgage
securities, are subject to prepayment risk. Prepayment risk occurs
when the issuer of a security can prepay principal prior to the
security's maturity. Securities subject to prepayment risk generally
offer less potential for gains during a declining interest rate
environment, and similar or greater potential for loss in a rising
interest rate environment. In addition, the potential impact of
prepayment features on the price of a debt security may be difficult
to predict and result in greater volatility.
