SUPPLEMENT TO THE FIDELITY GOVERNMENT
SECURITIES FUND NOVEMBER 28, 1997 PROSPECTUS
EFFECTIVE SEPTEMBER 21, 1998, Fidelity Government Securities
Fund will be renamed Fidelity Government Income Fund.
The following information replaces similar information found on
page 15 under the "Other Expenses" section:
The fund has adopted a DISTRIBUTION AND SERVICE PLAN. This
plan recognizes that FMR may use its management fee revenues, as well
as its past profits or its resources from any other source, to pay FDC
for expenses incurred in connection with the distribution of fund
shares. FMR directly, or through FDC, may make payments to third
parties, such as banks or broker-dealers, that engage in the sale of,
or provide shareholder support services for, the fund's shares.
Currently, the Board of Trustees has authorized such payments.
The following information supplements information found on page 10
under the "Investment Principles and Risks" section:
In managing bond funds, FMR selects a benchmark index which is
representative of the portion of the bond market in which the fund
invests. FMR uses this benchmark index as a guide in structuring the
fund and selecting its investments. The benchmark index for the fund
is the Lehman Brothers Government Bond Index, a market value weighted
benchmark of U.S. Government and government agency securities (other
than mortgage securities) with maturities of one year or more. FMR
manages the fund to have similar overall interest rate risk to its
Index.
SUPPLEMENT TO THE
FIDELITY GOVERNMENT SECURITIES FUND
NOVEMBER 28, 1997
STATEMENT OF ADDITIONAL INFORMATION
THE FOLLOWING INFORMATION REPLACES THE SIMILAR INFORMATION FOUND IN
THE "INVESTMENT POLICIES AND LIMITATIONS" SECTION ON PAGE 2.
(iv) The fund may borrow money only (a) from a bank or from a
registered investment company or portfolio for which FMR or an
affiliate serves as investment adviser or (b) by engaging in reverse
repurchase agreements with any party (reverse repurchase agreements
are treated as borrowings for purposes of fundamental investment
limitation (2)). The fund will not borrow from other funds advised by
FMR or its affiliates if total outstanding borrowings immediately
after such borrowing would exceed 15% of the fund's total assets.
THE FOLLOWING INFORMATION REPLACES THE SIMILAR INFORMATION FOUND IN
THE "DISTRIBUTION AND SERVICE PLAN" SECTION ON PAGE 19.
Under the Plan, if the payment of management fees by the fund to FMR
is deemed to be indirect financing by the fund of the distribution of
its shares, such payment is authorized by the Plan. The Plan
specifically recognizes that FMR may use its management fee revenue,
as well as its past profits or its other resources, to pay FDC for
expenses incurred in connection with the distribution of fund shares.
In addition, the Plan provides that FMR, directly or through FDC, may
make payments to third parties, such as banks or broker-dealers, that
engage in the sale of fund shares, or provide shareholder support
services. Currently, the Board of Trustees has authorized such
payments for Fidelity Government Securities Fund shares.
SUPPLEMENT TO THE
FIDELITY GINNIE MAE FUND SEPTEMBER 22, 1997 PROSPECTUS
The following information replaces similar information found in
"Expenses" on page 4.
ANNUAL FUND OPERATING EXPENSES are paid out of the fund's
assets. The fund pays a management fee to FMR. It also incurs other
expenses for services such as maintaining shareholder records and
furnishing shareholder statements and financial reports. The fund's
expenses are factored into its share price or dividends and are not
charged directly to shareholder accounts (see "Breakdown of Expenses"
page 13).
The following figures are based on historical expenses, adjusted to
reflect current fees, of the fund and are calculated as a percentage
of average net assets of the fund. In addition, the fund has entered
into arrangements with its custodian and transfer agent whereby
credits realized as a result of uninvested cash balances are used to
reduce custodian and transfer agent expenses. Including this
reduction, the total fund operating expenses presented in the table
would have been 0.64%.
MANAGEMENT FEE (AFTER REIMBURSEMENT) 0.33%
12B-1 FEE NONE
OTHER EXPENSES 0.32%
TOTAL FUND OPERATING EXPENSES 0.65%
EXAMPLES: Let's say, hypothetically, that the fund's annual
return is 5% and that your shareholder transaction expenses and the
fund's annual operating expenses are exactly as just described. For
every $1,000 you invested, here's how much you would pay in total
expenses if you close your account after the number of years
indicated:
1 YEAR $ 7
3 YEARS $ 21
5 YEARS $ 36
10 YEARS $ 81
These examples illustrate the effect of expenses, but are not meant
to suggest actual or expected expenses or returns, all of which may
vary.
FMR has voluntarily agreed to reimburse the fund to the extent that
total operating expenses (excluding interest, taxes, brokerage
commissions and extraordinary expenses) exceed 0.65% of its average
net assets . If this agreement were not in effect, the management fee,
other expenses and total operating expenses, as a percentage of
average net assets, would have been 0.44%, 0.00% and 0.76%,
respectively.
The following information replaces similar information found in the
"Breakdown of Expenses" section on page 15.
The fund has adopted a DISTRIBUTION AND SERVICE PLAN. This plan
recognizes that FMR may use its management fee revenues, as well as
its past profits or its resources from any other source, to pay FDC
for expenses incurred in connection with the distribution of fund
shares. FMR directly, or through FDC, may make payments to third
parties, such as banks or broker-dealers, that engage in the sale of,
or provide shareholder support services for, the fund's shares.
Currently the Board of Trustees has authorized such payments.
The following information replaces similar information found in the
"Dividends, Capital Gains, and Taxes" section on page 25.
For federal tax purposes, the fund's income and short-term capital
gains are distributed as dividends and taxed as ordinary income;
capital gain distributions are taxed as long-term capital gains. Every
January, Fidelity will send you and the IRS a statement showing the
tax characterization of distributions paid to you in the previous
year.
SUPPLEMENT TO THE FIDELITY GINNIE MAE FUND
SEPTEMBER 22, 1997
STATEMENT OF ADDITIONAL INFORMATION
THE FOLLOWING INFORMATION REPLACES NON-FUNDAMENTAL LIMITATION (III)
FOUND IN THE "INVESTMENT POLICIES AND LIMITATIONS" SECTION ON PAGE
2:
(iii) The fund may borrow money only (a) from a bank or from a
registered investment company or portfolio for which FMR or an
affiliate serves as investment adviser or (b) by engaging in reverse
repurchase agreements with any party (reverse repurchase agreements
are treated as borrowings for purposes of fundamental investment
limitation (3)). The fund will not borrow from other funds advised by
FMR or its affiliates if total outstanding borrowings immediately
after such borrowing would exceed 15% of the fund's total assets.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND IN THE
"DISTRIBUTION AND SERVICE PLAN" SECTION ON PAGE 20:
Under the Plan, if the payment of management fees by the fund to
FMR is deemed to be indirect financing by the fund of the distribution
of its shares, such payment is authorized by the Plan. The Plan
specifically recognizes that FMR may use its management fee revenue,
as well as its past profits or its other resources, to pay FDC for
expenses incurred in connection with the distribution of the fund
shares. In addition, the Plan provides that FMR, directly or through
FDC, may make payments to third parties, such as banks or
broker-dealers, that engage in the sale of fund shares, or provide
shareholder support services. Currently, the Board of Trustees has
authorized such payments for Ginnie Mae Fund shares.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND IN THE
"DISTRIBUTIONS AND TAXES" SECTION ON PAGE 13:
CAPITAL GAIN DISTRIBUTIONS. Long-term capital gains earned by the fund
on the sale of securities and distributed to shareholders are
federally taxable as long-term capital gains, regardless of the length
of time shareholders have held their shares. If a shareholder receives
a capital gain distribution on shares of the fund, and such shares are
held six months or less and are sold at a loss, the portion of the
loss equal to the amount of the capital gain distribution will be
considered a long-term loss for tax purposes. Short-term capital gains
distributed by the fund are taxable to shareholders as dividends, not
as capital gains.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION, WITHIN THE
"TRUSTEES AND OFFICERS" SECTION ON PAGE 17:
Under a retirement program adopted in July 1988 and modified in
November 1995 and November 1996, each non-interested Trustee who
retired before December 30, 1996 may receive payments from a Fidelity
fund during his or her lifetime based on his or her basic trustee fees
and length of service. The obligation of a fund to make such payments
is neither secured nor funded. A Trustee became eligible to
participate in the program at the end of the calendar year in which he
or she reached age 72, provided that, at the time of retirement, he or
she had served as a Fidelity fund Trustee for at least five years.
Under a deferred compensation plan adopted in September 1995 and
amended in November 1996 (the Plan), non-interested Trustees must
defer receipt of a portion of, and may elect to defer receipt of an
additional portion of, their annual fees. Amounts deferred under the
Plan are treated as though equivalent dollar amounts had been invested
in shares of a cross-section of Fidelity funds including funds in each
major investment discipline and representing a majority of Fidelity's
assets under management (the Reference Funds). The amounts ultimately
received by the Trustees under the Plan will be directly linked to the
investment performance of the Reference Funds. Deferral of fees in
accordance with the Plan will have a negligible effect on a fund's
assets, liabilities, and net income per share, and will not obligate a
fund to retain the services of any Trustee or to pay any particular
level of compensation to the Trustee. A fund may invest in the
Reference Funds under the Plan without approval.
As of December 30, 1996, the non-interested Trustees terminated the
retirement program for Trustees who retire after such date. In
connection with the termination of the retirement program, each
then-existing non-interested Trustee received a credit to his or her
Plan account equal to the present value of the estimated benefits that
would have been payable under the retirement program. The amounts
credited to the non-interested Trustees' Plan accounts are subject to
vesting and are treated as though equivalent dollar amounts had been
invested in shares of the Reference Funds. The amounts ultimately
received by the Trustees in connection with the credits to their Plan
accounts will be directly linked to the investment performance of the
Reference Funds. The termination of the retirement program and related
crediting of estimated benefits to the Trustees' Plan accounts did not
result in a material cost to the funds.
SUPPLEMENT TO THE SPARTAN(registered trademark) LIMITED MATURITY
GOVERNMENT FUND SEPTEMBER 22, 1997 PROSPECTUS
Spartan Limited Maturity Government Fund has been renamed Fidelity
Intermediate Government Income Fund. All references to Spartan Limited
Maturity Government Fund are hereby changed to Fidelity Intermediate
Government Income Fund throughout the prospectus.
The minimum investments have been changed to the following:
MINIMUM INVESTMENTS
TO OPEN AN ACCOUNT $2,500
For certain Fidelity retirement accountsA $500
TO ADD TO AN ACCOUNT $250
For certain Fidelity retirement accountsA $250
Through regular investment plansB $100
MINIMUM BALANCE $2,000
For certain Fidelity retirement accountsA $500
A THESE LOWER MINIMUMS APPLY TO FIDELITY TRADITIONAL IRA, ROTH IRA,
ROTH CONVERSION IRA, ROLLOVER IRA, SEP-IRA, AND KEOGH ACCOUNTS.
B FOR MORE INFORMATION ABOUT REGULAR INVESTMENT PLANS, PLEASE REFER
TO "INVESTOR SERVICES," PAGE 22.
References to the minimums throughout the prospectus are changed to
the above minimums.
The following fees for individual transactions have been
eliminated: the $5.00 exchange fee, the $5.00 wire fee, the $2.00
checkwriting fee, and the $5.00 account closeout fee. References to
these fees throughout the prospectus are no longer in effect.
The following information replaces similar information found in
"The Fund at a Glance" section on page 3:
STRATEGY: Invests in securities issued or guaranteed by the
U.S. Government and its agencies while maintaining an average maturity
of three to 10 years.
The following information replaces similar information found in the
"Expenses" section beginning on page 4:
SHAREHOLDER TRANSACTION EXPENSES are charges you may pay
when you buy or sell shares of the fund. In addition, you may be
charged an annual account maintenance fee if your account balance
falls below $2,500. See "Transaction Details," page 25, for an
explanation of how and when these charges apply.
SALES CHARGE ON PURCHASES NONE
AND REINVESTED DISTRIBUTIONS
DEFERRED SALES CHARGE ON REDEMPTIONS NONE
ANNUAL ACCOUNT MAINTENANCE FEE $12.00
(FOR ACCOUNTS UNDER $2,500)
EXAMPLES: Let's say, hypothetically, that the fund's annual
return is 5% and that your shareholder transaction expenses and the
fund's annual operating expenses are exactly as just described. For
every $1,000 you invested, here's how much you would pay in total
expenses if you close your account after the number of years
indicated:
1 YEAR $ 4
3 YEARS $ 12
5 YEARS $ 21
10 YEARS $ 48
These examples illustrate the effect of expenses, but are not meant
to suggest actual or expected expenses or returns, all of which may
vary.
The following information replaces similar information found in the
"Investment Principles and Risks" section on page 11:
Although the fund can invest in securities of any maturity, the
fund normally maintains a dollar-weighted average maturity of three to
10 years. FMR seeks to manage the fund so that it generally reacts to
changes in interest rates similarly to government bonds with
maturities of between one and seven years. In determining a security's
maturity for purposes of calculating the fund's average maturity, an
estimate of the average time for its principal to be paid may be used.
This can be substantially shorter than its stated final maturity. As
of July 31, 1997, the fund's dollar weighted average maturity was
approximately 4.4 years.
The following information replaces similar information found in the
"Breakdown of Expenses" section on page 15:
The fund has adopted a DISTRIBUTION AND SERVICE PLAN. This
plan recognizes that FMR may use its management fee revenues, as well
as past profits or its resources from any other source, to pay FDC for
expenses incurred in connection with the distribution of fund shares.
FMR directly, or through FDC, may make payments to third parties, such
as banks or broker-dealers, that engage in the sale of, or provide
shareholder support services for the fund's shares. Currently, the
Board of Trustees has authorized such payments.
The following information replaces similar information found in the
"Dividends, Capital Gains, and Taxes" section beginning on page 24:
For federal tax purposes, the fund's income and and short-term capital
gains are distributed as dividends and taxed as ordinary income;
capital gain distributions are taxed as long-term capital gains. Every
January, Fidelity will send you and the IRS a statement showing the
tax characterization of distributions paid to you in the previous
year.
SUPPLEMENT TO THE SPARTAN(registered trademark) LIMITED
MATURITY GOVERNMENT FUND
SEPTEMBER 22, 1997
STATEMENT OF ADDITIONAL INFORMATION
THE FOLLOWING REPLACES NON-FUNDAMENTAL INVESTMENT LIMITATION (III)
FOUND UNDER THE "INVESTMENT POLICIES AND LIMITATIONS" SECTION ON PAGE
2:
(iii) The fund may borrow money only (a) from a bank or from a
registered investment company or portfolio for which FMR or an
affiliate serves as investment adviser or (b) by engaging in reverse
repurchase agreements with any party (reverse repurchase agreements
are treated as borrowings for purposes of fundamental investment
limitation (3)). The fund will not borrow from other funds advised by
FMR or its affiliates if total outstanding borrowings immediately
after such borrowing would exceed 15% of the fund's total assets .
THE FOLLOWING INFORMATION REPLACES THE THIRD PARAGRAPH FOUND UNDER THE
"DISTRIBUTION AND SERVICE PLAN" SECTION ON PAGE 18:
Currently, the Board of Trustees has authorized such payments.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND IN THE
"DISTRIBUTIONS AND TAXES" SECTION BEGINNING ON PAGE 12:
CAPITAL GAIN DISTRIBUTIONS. Long-term capital gains earned by the fund
on the sale of securities and distributed to shareholders are
federally taxable as long-term capital gains, regardless of the length
of time shareholders have held their shares. If a shareholder receives
a capital gain distribution on shares of the fund, and such shares are
held six months or less and are sold at a loss, the portion of the
loss equal to the amount of the capital gain distribution will be
considered a long-term loss for tax purposes. Short-term capital gains
distributed by the fund are taxable to shareholders as dividends, not
as capital gains.
THE FOLLOWING INFORMATION SUPPLEMENTS THE INFORMATION FOUND IN
"MANAGEMENT CONTRACT" UNDER THE "MANAGEMENT FEE" SECTION ON PAGE 17:
Effective March 1, 1997, FMR voluntarily agreed, subject to revision
or termination, to reimburse the fund if and to the extent that its
aggregate operating expenses, including management fees, were in
excess of an annual rate of 0.38% of its average net assets. For
fiscal years ended July 31, 1997, 1996, and 1995, management fees
incurred under the fund's contract prior to reimbursement amounted to
$4,549,000, $5,191,000, and $5,657,000, respectively, and management
fees reimbursed by FMR amounted to $775,000, $0, and $0, respectively
after reduction for compensation to the non-interested Trustees.
