IMPORTANT PROXY MATERIALS
ARE ON THE WAY TO YOUR CLIENTS RIGHT NOW!
Dear Investment Professional:
On March 19, 1997, there will be a Special Meeting of Shareholders for
Fidelity U.S. Bond Index Portfolio and Fidelity U.S. Equity Index
Portfolio. The enclosed Proxy Statement details the proposals pertaining
to these funds. A copy of the shareholder letter, being mailed to all of
your clients who hold shares in these funds, is also enclosed.
HERE IS A BRIEF SUMMARY OF THE PROPOSALS.
All of the proposals summarized below have been carefully reviewed by the
Board of Trustees. The Board of Trustees is responsible for protecting the
interests of shareholders. The Trustees believe these proposals are in the
best interest of all shareholders of each fund.
PROPOSAL 1 is to elect Trustees to the Board to supervise the funds'
activities and review contractual arrangements with the companies that
provide the Trust with services.
PROPOSAL 2 is to ratify the selection of Price Waterhouse LLP as
independent accountants of the Trust.
PROPOSAL 3 is to amend the Declaration of Trust to provide voting rights
based on a shareholder's total dollar investment in a fund rather than on
the number of shares owned.
PROPOSAL 4 is to amend the Declaration of Trust to eliminate the
requirement of notifying fund shareholders in the event of appointment of a
Trustee.
PROPOSAL 5 is to amend the Declaration of Trust to provide each fund with
the ability to invest all of its assets in another open-end investment
company with substantially the same investment objective and policies.
PROPOSAL 6 is to adopt a new fundamental investment policy for each fund
permitting it to invest all of its assets in another open-end investment
company managed by Fidelity Management & Research Company ("FMR") or an
affiliate with substantially the same investment objectives and policies.
ADOPTION OF STANDARD INVESTMENT LIMITATIONS. The primary purpose of
PROPOSALS 7 THROUGH 15 is to revise several of each fund's investment
limitations to conform to limitations which are expected to become standard
for all funds managed by FMR. The standardized limitations clarify each
fund's authority in various areas of investing and also serve to bring each
fund's limitations up-to-date by reflecting changes in the market and
regulatory policies in recent years. The proposals do not affect the
fundamental investment objective of either fund, however, and are not
expected to result in any significant changes to either fund's investment
strategy.
If you have any questions about this proxy after reading the letter and
proxy statement, please call your Fidelity representative at 1-800-843-3001
for more information. We appreciate your support, and look forward to
serving you any way we can.
Sincerely,
/s/John Mulherin
John Mulherin
Chief Operating Officer - Fidelity Investments Institutional Services
Company, Inc.
