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
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 4.
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.
YEAR-BY-YEAR RETURNS
SPARTAN TOTAL MARKET INDEX FUND
Calendar Year 1998
24.03%
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%.
SPARTAN INTERNATIONAL INDEX
FUND
Calendar Year 1998
21.16%
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: 21.24
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 4.
AVERAGE ANNUAL RETURNS
For the period ended December Life of fund A,B
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 5.
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)
Effective April 29, 1999, the following information replaces similar
information found in "Fee Table" beginning on page 5.
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
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 9.
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 9.
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 the
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 April 29, 1999, the following information replaces the last
paragraph in "Exchanging Shares" beginning on page 12.
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 13.
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.
SUPPLEMENT TO THE SPARTAN(registered trademark) TOTAL MARKET INDEX
FUND,
SPARTAN EXTENDED(registered trademark) MARKET INDEX FUND, AND
SPARTAN(registered trademark) INTERNATIONAL INDEX FUND
APRIL 21, 1999
STATEMENT OF ADDITIONAL INFORMATION
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 THE THIRD
PARAGRAPH FOUND IN "PERFORMANCE" ON PAGE 31.
In addition to average annual returns, a fund may quote unaveraged or
cumulative returns reflecting the simple changes in value of an
investment over a stated period. Average annual and cumulative returns
may be quoted as a percentage or as a dollar amount, and may be
calculated for a single investment, a series of investments, or a
series of redemptions, over any time period. Returns may be broken
down into their components of income and capital (including capital
gains and changes in share price) in order to illustrate the
relationship of these factors and their contributions to return.
Returns may be quoted on a before-tax or after-tax basis. Returns may
or may not include the effect of a fund's short-term trading fee or
index account fee. Excluding a fund's short-term trading fee or index
account fee from a return calculation produces a higher return figure.
Returns and other performance information may be quoted numerically or
in a table, graph, or similar information.
EFFECTIVE APRIL 29, 1999, THE FOLLOWING INFORMATION REPLACES SIMILAR
INFORMATION FOUND IN "PERFORMANCE" BEGINNING ON PAGE 31.
CALCULATING HISTORICAL FUND RESULTS. The following table shows
performance for each fund. For Spartan Total Market Index Fund,
Spartan Extended Market Index Fund, and Spartan International Index
Fund, returns do not include the effect of each fund's 0.50%, 0.75% or
1.00%, respectively, short-term trading fee, applicable to shares held
less than 90 days.
HISTORICAL FUND RESULTS. The following table shows each fund's
performance for the fiscal periods ended 1999.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Average Annual Returns Cumulative Returns
One Year Life of Fund* One Year Life of Fund*
Spartan Total Market Index Fund 14.61% 20.48% 14.61% 27.77%
Spartan Extended Market Index -1.33% 4.50% -1.33% 5.96%
Fund
Spartan International Index 6.58% 13.50% 6.58% 18.12%
Fund
</TABLE>
* From November 5, 1997 (commencement of operations).
EFFECTIVE APRIL 29, 1999, THE FOLLOWING INFORMATION REPLACES SIMILAR
INFORMATION FOUND IN "PERFORMANCE" BEGINNING ON PAGE 31.
The following tables show the growth in value of a hypothetical
$10,000 investment in each fund during the life of each fund, assuming
all distributions were reinvested. Returns are based on past results
and are not an indication of future performance. Tax consequences of
different investments (with the exception of foreign tax withholdings)
have not been factored into the figures below.
During the period from November 5, 1997 (commencement of operations)
to February 28, 1999, a hypothetical $10,000 investment in Spartan
Total Market Index Fund would have grown to $12,777.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
SPARTAN TOTAL MARKET INDEX FUND
Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value
Investment Distributions Gain Distributions
1999 $ 12,520 $ 138 $ 119 $ 12,777
1998* $ 11,112 $ 36 $ 0 $ 11,148
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
SPARTAN TOTAL MARKET INDEX FUND INDEXES
Fiscal Year Ended S&P 500 DJIA Cost of Living**
1999 $ 13,397 $ 12,368 $ 10,179
1998* $ 11,189 $ 11,168 $ 10,019
</TABLE>
* From November 5, 1997 (commencement of operations).
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Spartan
Total Market Index on November 5, 1997, the net amount invested in
fund shares was $10,000. The cost of the initial investment ($10,000)
together with the aggregate cost of reinvested dividends and capital
gain distributions for the period covered (their cash value at the
time they were reinvested) amounted to $10,238. If distributions had
not been reinvested, the amount of distributions earned from the fund
over time would have been smaller, and cash payments for the period
would have amounted to $124 for dividends and $112 for capital gain
distributions. The fund did not distribute any capital gains during
the period. The figures in the table do not include the effect of the
fund's 0.50% purchase fee (which was in effect during the period
November 5, 1997 through April 28, 1999) or its 0.50% short-term
trading fee applicable to shares purchased after April 28, 1999 and
held less than 90 days.
During the period from November 5, 1997 (commencement of operations)
to February 28, 1999, a hypothetical $10,000 investment in Spartan
Extended Market Index Fund would have grown to $10,596.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
SPARTAN EXTENDED MARKET INDEX
FUND
Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value
Investment Distributions Gain Distributions
1999 $ 10,268 $ 119 $ 209 $ 10,596
1998* $ 10,708 $ 30 $ 0 $ 10,738
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
SPARTAN EXTENDED MARKET INDEX INDEXES
FUND
Fiscal Year Ended S&P 500 DJIA Cost of Living**
1999 $ 13,397 $ 12,368 $ 10,179
1998* $ 11,189 $ 11,168 $ 10,019
</TABLE>
* From November 5, 1997 (commencement of operations).
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Spartan
Extended Market Index on November 5, 1997, the net amount invested in
fund shares was $10,000. The cost of the initial investment ($10,000)
together with the aggregate cost of reinvested dividends and capital
gain distributions for the period covered (their cash value at the
time they were reinvested) amounted to $10,326. If distributions had
not been reinvested, the amount of distributions earned from the fund
over time would have been smaller, and cash payments for the period
would have amounted to $116 for dividends and $208 for capital gain
distributions. The fund did not distribute any capital gains during
the period. The figures in the table do not include the effect of the
fund's 0.75% purchase fee (which was in effect during the period
November 5, 1997 through April 28, 1999) or its 0.75% short-term
trading fee applicable to shares purchased after April 28, 1999 and
held less than 90 days.
During the period from November 5, 1997 (commencement of operations)
to February 28, 1999, a hypothetical $10,000 investment in Spartan
International Index Fund would have grown to $11,812.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
SPARTAN INTERNATIONAL INDEX
Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value
Investment Distributions Gain Distributions
1999 $ 11,536 $ 223 $ 53 $ 11,812
1998* $ 11,056 $ 27 $ 0 $ 11,083
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
SPARTAN INTERNATIONAL INDEX INDEXES
Fiscal Year Ended S&P 500 DJIA Cost of Living**
1999 $ 13,397 $ 12,368 $ 10,179
1998* $ 11,189 $ 11,168 $ 10,019
</TABLE>
* From November 5, 1997 (commencement of operations).
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Spartan
International Index on November 5, 1997, the net amount invested in
fund shares was $10,000. The cost of the initial investment ($10,000)
together with the aggregate cost of reinvested dividends and capital
gain distributions for the period covered (their cash value at the
time they were reinvested) amounted to $10,270. If distributions had
not been reinvested, the amount of distributions earned from the fund
over time would have been smaller, and cash payments for the period
would have amounted to $216 for dividends and $52 for capital gain
distributions. The fund did not distribute any capital gains during
the period. The figures in the table do not include the effect of the
fund's 1.00% purchase fee (which was in effect during the period
November 5, 1997 through April 28, 1999) or its 1.00% short-term
trading fee applicable to shares purchased after April 28, 1999 and
held less than 90 days.
EFFECTIVE APRIL 29, 1999, THE FOLLOWING INFORMATION REPLACES THE
SECOND PARAGRAPH FOUND IN "ADDITIONAL PURCHASE, EXCHANGE AND
REDEMPTION INFORMATION" ON PAGE 35.
Each fund, in its discretion, may determine to issue its shares "in
kind" in exchange for securities held by the purchaser having a value,
determined in accordance with the fund's policies for valuation of
portfolio securities, equal to the purchase price of the fund shares
issued. A fund will accept for in kind purchases only securities or
other instruments that are appropriate under its investment objective
and policies. In addition, a fund generally will not accept securities
of any issuer unless they are liquid, have a readily ascertainable
market value, and are not subject to restrictions on resale. All
dividends, distributions, and subscription or other rights associated
with the securities become the property of the fund, along with the
securities. Shares purchased in exchange for securities in kind
generally cannot be redeemed for fifteen days following the exchange
in order to allow time for the transfer to settle.
