SUPPLEMENT TO THE
SPARTAN(registered trademark) TOTAL MARKET INDEX FUND,
SPARTAN(registered trademark) EXTENDED MARKET INDEX FUND, AND
SPARTAN(registered trademark) INTERNATIONAL INDEX FUND APRIL 21, 1999
PROSPECTUS
SHAREHOLDER MEETING. On or about September 15, 1999, a meeting of the
shareholders of Spartan Total Market Index Fund, Spartan Extended
Market Index Fund and Spartan International Index Fund will be held to
approve various proposals, including approval of the funds'
sub-advisory agreements with BT, approval of new sub-advisory
agreements with BT and approval of a manager-of-managers arrangement,
which, subject to receipt of an exemptive order from the SEC, would
allow FMR, with the approval of the Board of Trustees, to change
sub-advisers and to modify material terms and conditions of a
sub-advisory agreement without a shareholder vote. Shareholders of
record on July 19, 1999 are entitled to vote at the meeting.
For more detailed information concerning the proposals under
consideration, please contact Fidelity at 1-800-544-8888 to request a
free copy of the proxy statement.
Shares of each fund purchased after April 28, 1999 will no longer be
subject to a purchase fee. However, each fund will deduct a short-term
trading fee of 0.50% for Spartan Total Market Index Fund, 0.75% for
Spartan Extended Market Index Fund or 1.00% for Spartan International
Index Fund, from the redemption amount if you sell shares purchased
after April 28, 1999 after holding them for less than 90 days.
Effective April 29, 1999, the following information replaces similar
information found in "Performance" beginning on page 5.
PERFORMANCE
The following information illustrates the funds' performance over the
past year and compares the funds' performance to the performance of a
market index and an average of the performance of similar funds over
various periods of time. Returns are based on past results and are not
an indication of future performance.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
YEAR-BY-YEAR RETURNS
SPARTAN TOTAL MARKET INDEX FUND
Calendar Year 1998
24.03%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: nil
Row: 2, Col: 1, Value: nil
Row: 3, Col: 1, Value: nil
Row: 4, Col: 1, Value: nil
Row: 5, Col: 1, Value: nil
Row: 6, Col: 1, Value: nil
Row: 7, Col: 1, Value: nil
Row: 8, Col: 1, Value: nil
Row: 9, Col: 1, Value: nil
Row: 10, Col: 1, Value: 24.03
DURING THE PERIOD SHOWN IN THE CHART FOR SPARTAN TOTAL MARKET INDEX
FUND, THE HIGHEST RETURN FOR A QUARTER WAS 22.03% (QUARTER ENDING
DECEMBER 31, 1998) AND THE LOWEST RETURN FOR A QUARTER WAS -12.01%
(QUARTER ENDING SEPTEMBER 30, 1998).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR SPARTAN TOTAL MARKET
INDEX FUND WAS 3.92%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
SPARTAN EXTENDED MARKET INDEX
FUND
Calendar Year 1998
9.31%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: nil
Row: 2, Col: 1, Value: nil
Row: 3, Col: 1, Value: nil
Row: 4, Col: 1, Value: nil
Row: 5, Col: 1, Value: nil
Row: 6, Col: 1, Value: nil
Row: 7, Col: 1, Value: nil
Row: 8, Col: 1, Value: nil
Row: 9, Col: 1, Value: nil
Row: 10, Col: 1, Value: 9.310000000000001
DURING THE PERIOD SHOWN IN THE CHART FOR SPARTAN EXTENDED MARKET INDEX
FUND, THE HIGHEST RETURN FOR A QUARTER WAS 22.69% (QUARTER ENDING
DECEMBER 31, 1998) AND THE LOWEST RETURN FOR A QUARTER WAS -18.48%
(QUARTER ENDING SEPTEMBER 30, 1998).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR SPARTAN EXTENDED
MARKET INDEX FUND WAS -0.37%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
SPARTAN INTERNATIONAL INDEX
FUND
Calendar Year 1998
21.16%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: nil
Row: 2, Col: 1, Value: nil
Row: 3, Col: 1, Value: nil
Row: 4, Col: 1, Value: nil
Row: 5, Col: 1, Value: nil
Row: 6, Col: 1, Value: nil
Row: 7, Col: 1, Value: nil
Row: 8, Col: 1, Value: nil
Row: 9, Col: 1, Value: nil
Row: 10, Col: 1, Value: 21.16
DURING THE PERIOD SHOWN IN THE CHART FOR SPARTAN INTERNATIONAL INDEX
FUND, THE HIGHEST RETURN FOR A QUARTER WAS 21.51% (QUARTER ENDING
DECEMBER 31, 1998) AND THE LOWEST RETURN FOR A QUARTER WAS -14.38%
(QUARTER ENDING SEPTEMBER 30, 1998).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR SPARTAN INTERNATIONAL
INDEX FUND WAS 1.63%.
Effective April 29, 1999, the following information replaces similar
information found in "Performance" beginning on page 5.
AVERAGE ANNUAL RETURNS
For the period ended Life of fund A,B
December 31, 1998
Spartan Total Market Index Fund 24.03%
Wilshire 5000 Index 23.43%
Lipper Growth & Income Funds 15.61%
Average
Spartan Extended Market Index 9.31%
Fund
Wilshire 4500 Index 8.63%
Lipper Growth & Income Funds 15.61%
Average
Spartan International Index 21.16%
Fund
Morgan Stanley Cap. Intl. 20.27%
Europe, Australasia, Far
East Index
Lipper International Funds 13.02%
Average
A BEGINNING JANUARY 1 OF THE FIRST CALENDAR YEAR FOLLOWING THE FUND'S
COMMENCEMENT OF OPERATIONS.
B FROM JANUARY 1, 1998.
Effective April 29, 1999, the following information replaces similar
information found in "Fee Table" beginning on page 7.
SHAREHOLDER FEES (PAID BY THE INVESTOR DIRECTLY)
Sales charge (load) on None
purchases and reinvested
distributions
Deferred sales charge (load) None
on redemptions
Redemption fee on shares held
less than 90 days (as a % of
amount redeemed)
Spartan Total Market Index 0.50%
Spartan Extended Market Index 0.75%
Spartan International Index 1.00%
Annual index account fee (for $10.00
accounts under $10,000)
The following information replaces footnote A to the "Fee Table"
section on page 7.
A EFFECTIVE NOVEMBER 5, 1997, FMR HAS VOLUNTARILY AGREED TO
REIMBURSE SPARTAN TOTAL MARKET INDEX FUND, SPARTAN EXTENDED MARKET
INDEX FUND, AND SPARTAN INTERNATIONAL INDEX FUND TO THE EXTENT THAT
TOTAL OPERATING EXPENSES (WITH THE EXCEPTIONS NOTED BELOW) EXCEED
0.25%, 0.25%, AND 0.35%, RESPECTIVELY, OF ITS AVERAGE NET ASSETS.
EXPENSES ELIGIBLE FOR REIMBURSEMENT DO NOT INCLUDE INTEREST, TAXES,
BROKERAGE COMMISSIONS AND OTHER TRANSACTION COSTS, OR EXTRAORDINARY
EXPENSES. IN ADDITION, SUB-ADVISORY FEES PAID BY THE FUND ASSOCIATED
WITH SECURITIES LENDING ARE NOT ELIGIBLE FOR REIMBURSEMENT. THIS
ARRANGEMENT CAN BE DISCONTINUED BY FMR AT ANY TIME AFTER DECEMBER 31,
1999.
Effective April 29, 1999, the following information replaces similar
information found in "Fee Table" beginning on page 7.
This EXAMPLE helps you compare the cost of investing in the funds with
the cost of investing in other mutual funds.
Let's say, hypothetically, that each fund's annual return is 5% and
that your shareholder fees and each fund's annual operating expenses
are exactly as described in the fee table. This example illustrates
the effect of fees and expenses, but is not meant to suggest actual or
expected fees and expenses or returns, all of which may vary. For
every $10,000 you invested, here's how much you would pay in total
expenses if you close your account after the number of years
indicated:
SPARTAN TOTAL MARKET INDEX FUND 1 year $ 69
3 years $ 215
5 years $ 375
10 years $ 838
SPARTAN EXTENDED MARKET FUND 1 year $ 83
3 years $ 259
5 years $ 450
10 years $ 1,002
SPARTAN INTERNATIONAL INDEX 1 year $ 100
FUND
3 years $ 312
5 years $ 542
10 years $ 1,201
The following information replaces the first paragraph under the
heading "Principal Investment Strategies" for Spartan International
Index Fund on page 10.
BT normally invests at least 80% of the fund's assets in common stocks
included in the MSCI EAFE Index. The MSCI EAFE Index is a
capitalization-weighted index that currently includes stocks of
companies located in 15 European countries (Austria, Belgium,
Denmark, Finland, France, Germany, Ireland, Italy, the Netherlands,
Norway, Portugal, Spain, Sweden, Switzerland, and the United Kingdom),
Australia, New Zealand, Hong Kong, Japan, and Singapore. The MSCI EAFE
Index broadly represents the performance of foreign stock markets.
Effective April 29, 1999, the following information replaces the first
four paragraphs under the heading "Buying Shares" in "Buying and
Selling Shares" beginning on page 13.
BUYING SHARES
The price to buy one share of each fund is the fund's NAV. Each fund's
shares are sold without a sales charge.
Your shares will be bought at the next NAV calculated after your
investment is received in proper form.
Effective April 29, 1999, the following information replaces the first
two paragraphs under the heading "Selling Shares" in "Buying and
Selling Shares" beginning on page 13.
SELLING SHARES
The price to sell one share of each fund is the fund's NAV, minus the
redemption fee (short-term trading fee), if applicable.
Each fund will deduct a short-term trading fee of 0.50% for Spartan
Total Market Index Fund, 0.75% for Spartan Extended Market Index Fund,
or 1.00% for Spartan International Index Fund, from the redemption
amount if you sell shares after holding them less than 90 days. This
fee is paid to the fund rather than Fidelity, and is designed to
offset the brokerage commissions, market impact, and other costs
associated with fluctuations in fund asset levels and cash flow caused
by short-term shareholder trading.
If you bought shares on different days, the shares you held longest
will be redeemed first for purposes of determining whether the
short-term trading fee applies. The short-term trading fee does not
apply to shares that were acquired through reinvestment of
distributions.
Your shares will be sold at the next NAV calculated after your order
is received in proper form, minus the short-term trading fee, if
applicable.
Effective June 26, 1999, the following information supplements
information found under the heading "Selling Shares" in "Buying and
Selling Shares" beginning on page 13.
Spartan Extended Market Index Fund and Spartan International Index
Fund will not deduct a short-term trading fee from redemptions by
Fidelity Four-in-One Index Fund accounts. However, Fidelity
Four-in-One Index Fund will deduct a short-term trading fee from
redemptions and will pay the fee to each of its underlying funds with
a short-term trading fee, including Spartan Extended Market Index Fund
and Spartan International Index Fund, based on the level of the
underlying fund's short-term trading fee and the percentage of
Fidelity Four-in-One Index's assets allocated to that fund.
Effective April 29, 1999, the following information replaces the last
paragraph in "Exchanging Shares" beginning on page 19.
Other funds may have different exchange restrictions, and may impose
trading fees of up to 3.00% of the amount exchanged. Check each fund's
prospectus for details.
Effective April 29, 1999, the following information replaces the
penultimate paragraph under the heading "Policies" in "Account
Features and Policies" beginning on page 19.
If your ACCOUNT BALANCE falls below $10,000 (except accounts not
subject to account minimums), you will be given 30 days' notice to
reestablish the minimum balance. If you do not increase your balance,
Fidelity may close your account and send the proceeds to you. Your
shares will be sold at the NAV, minus the short-term trading fee, if
applicable, on the day your account is closed.
The following information replaces the eighth paragraph found under
the heading "Fund Management" in the "Fund Services" section on page
25.
Effective June 4, 1999, Bankers Trust Corporation and all of its
subsidiaries, including BT, merged with and into a subsidiary of
Deutsche Bank AG. At a meeting held on March 18, 1999, each fund's
Board of Trustees approved a new subadvisory agreement among each
fund, FMR and BT or its successor by merger that became effective June
4, 1999. This agreement will be presented to each fund's shareholders
for approval on September 15, 1999.
SUPPLEMENT TO THE SPARTAN(registered trademark) U.S. EQUITY INDEX FUND
APRIL 21, 1999
PROSPECTUS
SHAREHOLDER MEETING. On or about September 15, 1999, a meeting of the
shareholders of Spartan U.S. Equity Index Fund will be held to approve
various proposals, including approval of the fund's sub-advisory
agreement with BT, approval of a new sub-advisory agreement with BT
and approval of a manager-of-managers arrangement, which, subject to
receipt of an exemptive order from the SEC, would allow FMR, with the
approval of the Board of Trustees, to change sub-advisers and to
modify material terms and conditions of a sub-advisory agreement
without a shareholder vote. Shareholders of record on July 19, 1999
are entitled to vote at the meeting.
For more detailed information concerning the proposals under
consideration, please contact Fidelity at 1-800-544-8888 to request a
free copy of the proxy statement.
The following information replaces similar information found in the
"Fee Table" section on page P-4.
A EFFECTIVE APRIL 18, 1997, FIDELITY MANAGEMENT & RESEARCH COMPANY
(FMR) HAS AGREED TO REIMBURSE THE FUND TO THE EXTENT THAT TOTAL
OPERATING EXPENSES (WITH THE EXCEPTIONS NOTED BELOW) EXCEED 0.19% OF
ITS AVERAGE NET ASSETS. EXPENSES ELIGIBLE FOR REIMBURSEMENT DO NOT
INCLUDE INTEREST, TAXES, BROKERAGE COMMISSIONS, OR EXTRAORDINARY
EXPENSES. IN ADDITION, SUB-ADVISORY FEES PAID BY THE FUND ASSOCIATED
WITH SECURITIES LENDING ARE NOT ELIGIBLE FOR REIMBURSEMENT. THIS
ARRANGEMENT CAN BE DISCONTINUED BY FMR AT ANY TIME AFTER DECEMBER 31,
1999.
The following information replaces the 8th paragraph found under the
heading "Fund Management" in the "Fund Services" section on page P-18.
Effective June 4, 1999, Bankers Trust Corporation and all of its
subsidiaries, including BT, merged with and into a subsidiary of
Deutsche Bank AG. At a meeting held on March 18, 1999, the fund's
Board of Trustees approved a new sub-advisory agreement among the
fund, FMR and BT or its successor by merger that became effective on
June 4, 1999. This agreement will be presented to the fund's
shareholders for approval on September 15, 1999.
