SUPPLEMENT TO THE FIDELITY GOVERNMENT BOND FUNDS SEPTEMBER 29, 1999
PROSPECTUS
The following information replaces similar information found in the
"Fee Table" section on page 8.
ANNUAL FUND OPERATING EXPENSES (PAID FROM FUND ASSETS)
GINNIE MAE Management fee 0.43%
Distribution and Service None
(12b-1) fee
Other expenses 0.28%
Total annual fund operating 0.71%
expensesA
GOVERNMENT INCOME Management fee 0.43%
Distribution and Service None
(12b-1) fee
Other expenses 0.25%
Total annual fund operating 0.68%
expenses
INTERMEDIATE GOVERNMENT INCOME Management fee 0.65%
Distribution and Service None
(12b-1) fee
Other expenses 0.00%
Total annual fund operating 0.65%
expensesB
A EFFECTIVE MAY 28, 1999, FMR HAS AGREED TO REIMBURSE GINNIE MAE TO
THE EXTENT THAT TOTAL OPERATING EXPENSES (EXCLUDING INTEREST, TAXES,
BROKERAGE COMMISSIONS AND EXTRAORDINARY EXPENSES), AS A PERCENTAGE OF
ITS AVERAGE NET ASSETS, EXCEED 0.63%. THIS ARRANGEMENT WILL REMAIN IN
EFFECT THROUGH JUNE 30, 2001.
B EFFECTIVE JULY 1, 2000, FMR HAS AGREED TO REIMBURSE INTERMEDIATE
GOVERNMENT INCOME TO THE EXTENT THAT TOTAL OPERATING EXPENSES
(EXCLUDING INTEREST, TAXES, BROKERAGE COMMISSIONS AND EXTRAORDINARY
EXPENSES), AS A PERCENTAGE OF ITS AVERAGE NET ASSETS, EXCEED 0.61%.
THIS ARRANGEMENT WILL REMAIN IN EFFECT THROUGH JANUARY 1, 2001.
The following information replaces similar information found in the
"Fund Management" section on page 27.
(small solid bullet) Fidelity Management & Research Far East Inc. (FMR
Far East) serves as a sub-adviser for Ginnie Mae and Intermediate
Government Income. FMR Far East was organized in 1986 to provide
investment research and advice to FMR. Currently, FMR Far East
provides investment research and advice on issuers based outside the
United States and may also provide investment advisory services for
Ginnie Mae and Intermediate Government Income.
The following information supplements the information found in the
"Fund Management" section on page 27.
(small solid bullet) Fidelity Investments Japan Ltd. (FIJ), in Tokyo,
Japan, serves as a sub-adviser for Ginnie Mae and Intermediate
Government Income. As of September 28, 1999, FIJ had approximately
$16.3 billion in discretionary assets under management. Currently, FIJ
provides investment research and advice on issuers based outside the
United States for Ginnie Mae and Intermediate Government Income.
The following information replaces similar information found in the
"Fund Management" section on page 28.
FMR pays FIMM, FMR U.K. and FMR Far East for providing sub-advisory
services. FMR Far East pays FIJ for providing sub-advisory services.
