SUPPLEMENT TO FIDELITY'S
INTERNATIONAL BOND FUNDS PROSPECTUS
DATED FEBRUARY 26, 1996
The following information replaces the similar information found in the
sixth paragraph of the "Investment Principles and Risks" section on page
11.
EACH FUND'S risk and reward depends on the quality and maturity of
its investments. Because Short-Term World Bond invests in higher-quality,
short-term debt securities, it has lower risk and yield potential than the
other funds. Global Bond normally invests in investment-grade securities
of any maturity. New Markets Income has even more flexibility as to
the quality and maturity of its investments. In addition, since New Markets
Income invests primarily in securities of emerging markets, which can be
considered speculative, it tends to offer higher income and total return
potential, but significantly greater risk. Lower quality, longer term
investments typically offer higher yields, but also carry more risk.
The following information replaces the similar information found in the
"Securities and Investment Practices" section under the heading "Debt
Securities" on page 12.
RESTRICTIONS: Purchase of a debt security is consistent with a fund's
debt quality policy if it is rated at or above the stated level by Moody's
Investors Services or rated in the equivalent categories by 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. Short-Term
World Bond currently intends to limit its investments in lower than
A-quality debt securities to 35% of its total assets and in lower than
Baa-quality debt securities to 10% of its total assets. In addition, the
fund currently intends to limit its investments in debt securities to those
of Ba-quality or above. Global Bond normally invests in Baa-quality
securities, but reserves the right to invest up to 5% of its assets in
below Baa-quality securities (sometimes called "junk bonds").
PROPOSED REORGANIZATION. The Board of Trustees of Fidelity Short-Term World
Bond Fund has unanimously approved an Agreement and Plan of Reorganization
("Agreement") between Fidelity Short-Term World Bond Fund (Short-Term
World) and Fidelity Short-Term Bond Fund (Short-Term Bond), a fund of
Fidelity Fixed-Income Trust.
The Agreement provides for transfer of substantially all of the assets and
the assumption of all of the liabilities of Short-Term World solely in
exchange for the number of shares of Short-Term Bond equal in value to the
relative net asset value of the outstanding shares of Short-Term World.
Following such exchange, Short-Term World will distribute the Short-Term
Bond shares to its shareholders pro rata, in liquidation of Short-Term
World as provided in the Agreement (the transactions contemplated by the
Agreement referred to as the "Reorganization").
The Reorganization can be consummated only if, among other things, it is
approved by a majority vote of shareholders. A Special Meeting (the
"Meeting") of the Shareholders of Short-Term World will be held on October
11, 1996, and approval of the Agreement will be voted on at that time. In
connection with the Meeting, Short-Term World will be filing with the
Securities and Exchange Commission and delivering to its shareholders of
record a Proxy Statement describing the Reorganization and a Prospectus for
Short-Term Bond.
If the Agreement is approved at the Meeting and certain conditions required
by the Agreement are satisfied, the Reorganization is expected to become
effective on or about October 31, 1996. If shareholder approval of the
Agreement is delayed due to failure to meet a quorum or otherwise, the
Reorganization will become effective, if approved, as soon as practicable
thereafter.
In the event Short-Term World shareholders fail to approve the Agreement,
Short-Term World will continue to engage in business as a registered
investment company and the Board of Trustees will consider other proposals
for the reorganization or liquidation of Short-Term World.
Effective on or about July 15, 1996, the fund's shares will no longer be
available to new accounts pending the Reorganization. Shareholders of the
fund on or prior to that date, including participants in an employee
benefit plan which offered the fund on or prior to that date (except
participants in an employee benefit plan for which an affiliate of FMR
maintains the accounts at the participant level other than pursuant to a
recordkeeping agreement), will continue to be able to purchase shares of
the fund.
