(2_FIDELITY_LOGOS)FIDELITY
CONGRESS STREET
FUND
ANNUAL REPORT
DECEMBER 31, 1993
CONTENTS
PRESIDENT'S MESSAGE 3 Ned Johnson on minimizing taxes.
PERFORMANCE 4 How the fund has done over time.
FUND TALK 6 The manager's review of fund
performance, strategy, and outlook.
INVESTMENT CHANGES 8 A summary of major shifts in the
fund's investments over the last six
months.
INVESTMENTS 9 A complete list of the fund's
investments with their market value.
FINANCIAL STATEMENTS 12 Statements of assets and liabilities,
operations, and changes in net
assets, as well as financial
highlights.
NOTES 16 Footnotes to the financial
statements.
REPORT OF INDEPENDENT 18 The auditor's opinion.
ACCOUNTANTS
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL
INFORMATION OF THE SHAREHOLDERS OF THE FUND. THIS REPORT IS NOT AUTHORIZED
FOR
DISTRIBUTION TO PROSPECTIVE INVESTORS IN THE FUND UNLESS PRECEDED OR
ACCOMPANIED BY
AN EFFECTIVE PROSPECTUS. NEITHER THE FUND NOR FIDELITY DISTRIBUTORS
CORPORATION IS A
BANK, AND FUND SHARES ARE NOT BACKED OR GUARANTEED BY ANY BANK OR INSURED
BY THE
FDIC.
PRESIDENT'S MESSAGE
DEAR SHAREHOLDER:
Once the new year begins, many people start reviewing their finances and
calculating their tax bills. No one wants to pay more taxes than they have
to. But a recent survey of 500 U.S. households, conducted by Fidelity and
Yankelovich Partners, showed that few people have taken steps to reduce
their taxes under the new legislation. Many were not even aware that the
new tax laws were retroactive to January 1993.
Whether or not you're someone whose tax bill will increase as a result of
these changes, it may make sense to consider ways to keep more of what you
earn.
First, if your employer offers a 401(k) or 403(b) retirement savings plan,
consider enrolling. These plans are set up so you can make regular
contributions -
before taxes - to a retirement savings plan. They offer a disciplined
savings strategy, the ability to accumulate earnings tax-deferred, and
immediate tax savings. For example, if you earn $40,000 a year and
contribute 7% of your salary to your 401(k) plan, your annual contribution
is $2,800. That reduces your taxable income to $37,200 and, if you're in
the
28% tax bracket, saves you $784 in federal taxes. In addition, you pay no
taxes on any earnings until withdrawal.
It may be a good idea to contact your benefits office as soon as possible
to find out when you can enroll or increase your contribution. Most
employers allow employees to make changes only a few times each year.
Second, consider an IRA. Many people are eligible to make an IRA
contribution (up to $2,000) that is fully tax deductible. That includes
people who are not covered by company pension plans, or those within
certain income brackets. Even if you don't qualify for a fully deductible
contribution, any IRA earnings will grow tax-deferred until withdrawal.
Third, consider adding to your tax-free investments, either municipal bonds
or municipal bond funds. Often these can provide higher after-tax yields
than comparable taxable investments. For example, if you're in the new 36%
federal income tax bracket and invest $10,000 in a taxable investment
yielding 7%, you'll pay $252 in federal taxes and receive $448 in income.
That same $10,000 invested in a tax-free bond fund yielding 5.5% would
allow you to keep $550 in income.
These are three investment strategies that could help lower your tax bill
in 1994. If you're interested in learning more, please call us at
1-800-544-8888 or visit a Fidelity Investor Center.
Wishing you a prosperous new year,
Edward C. Johnson 3d, Chairman
PERFORMANCE: THE BOTTOM LINE
There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. Each
performance figure includes changes in a fund's share price, plus
reinvestment of any dividends (or income) and capital gains (the profits
the fund earns when it sells stocks that have grown in value).
CUMULATIVE TOTAL RETURNS
PERIODS ENDED DECEMBER 31, 1993 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
Congress Street 8.05% 96.14% 312.88%
S&P 500(Registered trademark) 10.08% 97.26% 302.35%
Average Growth & Income Fund 11.55% 86.67% 239.72%
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, one, five, or 10 years. You can compare
these figures to the performance of the Standard & Poor's 500 Composite
Stock Price Index - a common proxy for the U.S. stock market. You can also
compare them to the average growth and income fund, which reflects the
performance of 326 growth & income funds tracked by Lipper Analytical
Services. Both benchmarks include reinvested dividends and capital gains,
if any, and exclude the effects of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED DECEMBER 31, 1993 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
Congress Street 8.05% 14.42% 15.23%
S&P 500(Registered trademark) 10.08% 14.55% 14.94%
Average Growth & Income Fund 11.55% 13.13% 12.88%
AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had performed at a
constant rate each year.
$10,000 OVER 10 YEARS
Congress St S&P 500
12/31/83 10000.00 10000.00
01/31/84 9873.66 9944.00
02/29/84 9449.07 9593.97
03/31/84 9596.95 9759.95
04/30/84 9804.11 9852.67
05/31/84 9159.41 9306.83
06/30/84 9560.17 9508.79
07/31/84 9401.41 9390.88
08/31/84 10301.67 10428.57
09/30/84 10166.15 10430.66
10/31/84 10398.79 10471.34
11/30/84 10290.12 10354.06
12/31/84 10647.77 10627.40
01/31/85 11240.42 11455.28
02/28/85 11401.50 11596.18
03/31/85 11540.55 11604.30
04/30/85 11344.02 11593.85
05/31/85 12144.32 12263.98
06/30/85 12225.37 12456.52
07/31/85 12330.72 12437.84
08/31/85 12221.31 12332.11
09/30/85 11925.51 11946.12
10/31/85 12305.57 12498.03
11/30/85 13483.12 13355.39
12/31/85 14147.15 14001.80
01/31/86 14215.76 14080.21
02/28/86 15471.62 15133.40
03/31/86 16669.27 15977.85
04/30/86 16522.48 15797.30
05/31/86 17584.50 16637.72
06/30/86 17919.54 16918.89
07/31/86 17354.82 15973.13
08/31/86 18357.84 17158.33
09/30/86 16501.40 15739.34
10/31/86 17723.30 16647.50
11/30/86 18158.86 17052.03
12/31/86 17855.71 16617.21
01/31/87 20271.35 18855.54
02/28/87 21204.72 19600.34
03/31/87 21446.07 20166.79
04/30/87 20979.32 19987.30
05/31/87 20957.73 20161.19
06/30/87 22134.28 21179.33
07/31/87 23248.22 22253.12
08/31/87 24226.17 23083.17
09/30/87 23815.99 22577.65
10/31/87 18939.31 17714.42
11/30/87 17232.22 16254.75
12/31/87 18710.85 17491.74
01/31/88 19059.43 18228.14
02/29/88 19916.26 19077.57
03/31/88 19111.15 18488.08
04/30/88 19208.25 18693.29
05/31/88 19440.77 18855.92
06/30/88 20375.42 19721.41
07/31/88 20120.10 19646.47
08/31/88 19734.84 18978.49
09/30/88 20683.17 19786.97
10/31/88 21120.86 20337.05
11/30/88 20817.67 20046.23
12/31/88 21049.95 20397.04
01/31/89 22420.90 21890.10
02/28/89 21881.39 21345.04
03/31/89 22318.13 21842.38
04/30/89 23679.74 22976.00
05/31/89 24611.60 23906.53
06/30/89 24303.87 23770.26
07/31/89 26872.13 25916.71
08/31/89 26886.32 26424.68
09/30/89 26775.17 26316.34
10/31/89 26779.90 25705.80
11/30/89 27484.64 26230.20
12/31/89 28273.42 26859.73
01/31/90 26040.29 25057.44
02/28/90 26406.81 25380.68
03/31/90 27477.26 26053.27
04/30/90 27023.35 25401.94
05/31/90 29756.52 27878.62
06/30/90 30175.77 27689.05
07/31/90 30276.52 27600.44
08/31/90 27814.29 25105.36
09/30/90 26300.59 23882.73
10/31/90 26497.17 23780.04
11/30/90 28077.22 25316.23
12/31/90 29001.71 26022.55
01/31/91 29915.79 27157.13
02/28/91 32099.43 29098.87
03/31/91 33064.29 29803.06
04/30/91 33021.13 29874.59
05/31/91 34222.12 31165.17
06/30/91 32559.32 29737.81
07/31/91 34141.57 31123.59
08/31/91 35374.48 31861.22
09/30/91 34919.85 31329.13
10/31/91 35821.42 31748.94
11/30/91 34817.10 30469.46
12/31/91 38448.14 33955.17
01/31/92 37551.75 33323.60
02/29/92 37468.37 33756.81
03/31/92 36681.42 33098.55
04/30/92 37325.05 34071.65
05/31/92 37306.81 34238.60
06/30/92 36489.49 33728.44
07/31/92 38107.03 35107.94
08/31/92 37498.48 34388.23
09/30/92 37332.51 34794.01
10/31/92 37134.93 34915.79
11/30/92 38099.13 36106.41
12/31/92 38212.05 36550.52
01/31/93 37722.80 36857.55
02/28/93 38206.70 37358.81
03/31/93 38714.66 38147.08
04/30/93 38214.72 37223.92
05/31/93 39399.07 38221.52
06/30/93 39069.43 38332.36
07/31/93 38525.75 38179.04
08/31/93 39953.93 39626.02
09/30/93 39429.18 39320.90
10/31/93 40833.02 40134.84
11/30/93 40770.81 39753.56
12/31/93 41288.37 40234.58
$10,000 OVER 10 YEARS: Let's say you invested $10,000 in Fidelity Congress
Street Fund on December 31, 1983. As the chart shows, by December 31, 1993,
the value of your investment would have grown to $41,288 - a 312.88%
increase on your initial investment. For comparison, look at how the
S&P 500 did over the same period. With dividends reinvested, the same
$10,000 investment would have grown to $40,235 - a 302.35% increase.
UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. The stock market,
for example, has a history of
growth in the long run and
volatility in the short run. In
turn, the share price and
return of a fund that invests in
stocks will vary. That means if
you sell your shares during a
market downturn, you might
lose money. But if you can
ride out the market's ups and
downs, you may have a gain.
(checkmark)
FUND TALK: THE MANAGER'S OVERVIEW
MARKET RECAP
Low inflation, falling interest rates
and a gradually improving
economy boosted U.S. stocks
during the 12 months ended
December 31, 1993. The
Standard & Poor's 500 stock
index rose 10.08%, in line with
the market's long-term average
annual return. Some tobacco,
drug and brand-name consumer
products stocks began to pick up
by year end, but had weak
returns for the year, overall.
Those losses were offset by
impressive gains in other sectors,
including technology, although
semiconductors gave back part
of their gains in the fall. Other
market leaders were finance,
notably securities brokers;
economically-sensitive sectors
like autos and steel;
entertainment; heavy machinery;
and precious metals.
Communications stocks soared
as traditional telephone utilities,
cellular companies, and
entertainment firms scrambled to
form strategic alliances. The
NASDAQ Composite Index -
which tracks over-the-counter
stocks - rose 14.75% for the
year, but was outpaced by
the Dow Jones Industrial Average
- - an index of 30 blue-chip stocks
- - which rose 17.04%. In
mid-November, the Dow closed
above 3700 for the first time and
finished the year at 3754. Most
international markets easily
outpaced U.S. returns. The
Morgan Stanley EAFE (Europe,
Australia, Far East) index rose
32.56%, while the Morgan
Stanley Emerging Markets Index
was up 73.21% for the year.
A Message from Sandy Cushman, Portfolio Manager of Fidelity
Congress Street Fund
Dear Congress Street Fund Shareholder:
For the year ended December 31, the fund had a total return of 8.05%. That
trailed the Standard & Poor's 500 index, which returned 10.08% during
the same period. The fund also lagged the average growth & income fund
tracked by Lipper Analytical Services, which gained 11.55%. These results
came despite a pick-up in the fund's performance over the last six months.
Many of the fund's bigger, blue-chip names spent most of the year in the
doldrums. A big chunk of the growth stocks the fund acquired in the 1960s
fall into the category of consumer non-durables. This sector made up 21.2%
of the fund's investments at the end of the year. These companies lost
pricing power in 1993 for two reasons. Inflation remained very low, which
made it difficult for companies to raise the prices of their products. And
more importantly, consumers shunned familiar brand-name products for
cheaper generic or off-brand items. Stocks like Philip Morris, which
dropped 27.9% in 1993, H.J. Heinz (down 18.7%), and Johnson & Johnson
(down 16.2%) felt the effects.
Lately, we've seen some consumer non-durables rebound a bit. Many companies
cut costs through the year, and should be poised for better earnings now
that the economy is showing signs of strength. By late in the year,
investors had beaten down the prices of some of these stocks to a point at
which bargain hunters began to move in.
Uncertainty over President Clinton's reform plan hurt health-care stocks,
the fund's second biggest sector investment at 15.2% on December 31. Fear
that drug companies would lose the power to raise their prices flattened
the stocks of companies like Upjohn, Merck and Eli Lilly early in the year.
But I think overreaction fueled much of the drug stock sell-off. The
industry is changing and companies are preparing themselves to do business
under a new set of rules. I see a brighter outlook for some of these stocks
in '94.
Technology stocks - 12.8% of the fund's investments - and the fund's one
financial stock, Bankers Trust New York - 4.3% of the fund - turned in
strong performances before investors went in for some profit taking late in
the year. Falling interest rates and low inflation helped the balance
sheets of banks, and their stocks responded. Bankers Trust New York was up
nearly 16% in 1993. On the technology side, the fund's largest investment,
semiconductor manufacturer Motorola, enjoyed a fine year. Motorola's stock
rose nearly 81% in '93. Japanese firms stopped gaining market share and
demand for semiconductors rose due to increasing sales of cellular phones
and personal computers. Investors also speculated about Motorola's
burgeoning role in the building of the so-called information superhighway,
which will join the technologies of telephones, televisions and computers
to bring us interactive services in our homes.
As for the next six months, I, like most people, feel stock valuations are
high. But I'm optimistic for a couple of reasons. Many of the stocks in
this fund have been hit hard over the last couple years and I think most of
the selling has already taken place. Also, if there's a market correction,
I believe the stocks of smaller companies will fall faster than those of
larger companies. The big firms in this fund may lend it more stability
should the market drop. Finally, I like the outlook for some of the
consumer non-durables. Price cuts on brand-name goods have shrunk the gap
between those and the generics, and consumer confidence is picking up. I
think people may be ready to go back to the better known brand-names. Many
of these companies have long, successful histories and have rebounded from
down times before.
Sincerely,
Sandy Cushman
INVESTMENT CHANGES
TOP TEN STOCKS AS OF DECEMBER 31, 1993
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE STOCKS
6 MONTHS AGO
Motorola, Inc. 5.3 5.9
Coca-Cola Company (The) 5.0 5.0
Colgate-Palmolive Co. 4.5 4.4
Bankers Trust New York Corp. 4.3 4.2
International Paper Co. 4.2 4.1
General Electric Co. 4.0 3.8
Johnson & Johnson 4.0 3.8
GTE Corp. 3.9 4.1
Eastman Kodak Co. 3.8 3.5
Exxon Corp. 3.7 4.0
TOP FIVE INDUSTRIES AS OF DECEMBER 31, 1993
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE INDUSTRIES
6 MONTHS AGO
Nondurables 21.2 21.3
Health 15.2 15.7
Technology 12.8 13.3
Energy 9.4 9.8
Basic Industries 7.1 6.8
ASSET ALLOCATION
AS OF DECEMBER 31, 1993 AS OF JUNE 30, 1993
Row: 1, Col: 1, Value: 7.4
Row: 1, Col: 2, Value: 92.5
Row: 1, Col: 1, Value: 6.6
Row: 1, Col: 2, Value: 93.40000000000001
Stocks 92.5%
Short-term
Investments 7.5%
Stocks 93.4%
Short-term
Investments 6.6%
INVESTMENTS DECEMBER 31, 1993
Showing Percentage of Total Value of Investment in Securities
COMMON STOCKS - 92.5%
SHARES VALUE (NOTE 1)
AEROSPACE & DEFENSE - 3.1%
Boeing Co. 46,554 $ 2,013,459 09702310
BASIC INDUSTRIES - 7.1%
PAPER & FOREST PRODUCTS - 7.1%
International Paper Co. 40,099 2,716,707 46014610
Union Camp Corp. 40,000 1,905,000 90553010
4,621,707
CONGLOMERATES - 3.0%
United Technologies Corp. 31,500 1,953,000 91301710
ENERGY - 9.4%
OIL & GAS - 9.4%
Chevron Corp. 20,000 1,742,500 16675110
Exxon Corp. 38,000 2,394,000 30229010
Mobil Corp. 25,000 1,975,000 60705910
6,111,500
FINANCE - 4.3%
BANKS - 4.3%
Bankers Trust New York Corp. 35,012 2,770,325 06636510
HEALTH - 15.2%
DRUGS & PHARMACEUTICALS - 11.2%
American Home Products Corp. 34,501 2,233,940 02660910
Lilly (Eli) & Co. 29,617 1,758,509 53245710
Merck & Co., Inc. 47,486 1,632,331 58933110
Upjohn Co. 58,151 1,693,648 91530210
7,318,428
MEDICAL EQUIPMENT & SUPPLIES - 4.0%
Johnson & Johnson 57,842 2,588,430 47816010
TOTAL HEALTH 9,906,858
INDUSTRIAL MACHINERY & EQUIPMENT - 4.8%
ELECTRICAL EQUIPMENT - 4.0%
General Electric Co. 25,000 2,621,875 36960410
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
INDUSTRIAL MACHINERY & EQUIPMENT - CONTINUED
POLLUTION CONTROL - 0.8%
WMX Technologies, Inc. 20,000 $ 527,500 92929Q10
TOTAL INDUSTRIAL MACHINERY & EQUIPMENT 3,149,375
MEDIA & LEISURE - 2.8%
PUBLISHING - 2.8%
Knight-Ridder, Inc. 30,000 1,792,500 49904010
NONDURABLES - 21.2%
BEVERAGES - 8.6%
Anheuser-Busch Companies, Inc. 48,336 2,374,506 03522910
Coca-Cola Company (The) 72,096 3,235,308 19121610
5,609,814
FOODS - 6.3%
Campbell Soup Co. 56,318 2,309,038 13442910
Heinz (H.J.) Co. 49,906 1,790,378 42307410
4,099,416
HOUSEHOLD PRODUCTS - 4.5%
Colgate-Palmolive Co. 47,380 2,955,328 19416210
TOBACCO - 1.8%
Philip Morris Companies, Inc. 20,000 1,115,000 71815410
TOTAL NONDURABLES 13,779,558
TECHNOLOGY - 12.8%
COMPUTERS & OFFICE EQUIPMENT - 3.7%
Hewlett-Packard Co. 25,000 1,975,000 42823610
International Business Machines Corp. 8,211 463,922 45920010
2,438,922
ELECTRONICS - 5.3%
Motorola, Inc. 37,550 3,468,681 62007610
PHOTOGRAPHIC EQUIPMENT - 3.8%
Eastman Kodak Co. 43,812 2,453,472 27746110
TOTAL TECHNOLOGY 8,361,075
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
TRANSPORTATION - 2.0%
RAILROADS - 2.0%
Union Pacific Corp. 20,850 $ 1,305,731 90781810
UTILITIES - 6.8%
ELECTRIC UTILITY - 2.9%
Consolidated Edison Co. of New York, Inc. 26,264 843,731 20911110
Potomac Electric Power Co. 40,000 1,070,000 73767910
1,913,731
TELEPHONE SERVICES - 3.9%
GTE Corp. 71,838 2,514,330 36232010
TOTAL UTILITIES 4,428,061
TOTAL COMMON STOCKS
(Cost $19,409,542) 60,193,149
REPURCHASE AGREEMENTS - 7.5%
MATURITY
AMOUNT
Investments in repurchase agreements
(U.S. Treasury obligations), in a
joint trading account at 3.23%
dated 12/31/93 due 1/3/94 $ 4,890,316 4,889,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $24,298,542) $ 65,082,149
INCOME TAX INFORMATION
At December 31, 1993, the aggregate cost of investment securities for
income tax purposes was $24,298,542. Net unrealized appreciation aggregated
$40,783,607, of which $41,371,624 related to appreciated investment
securities and $588,017 related to depreciated investment securities.
At December 31, 1993, the fund had a capital loss carryforward of
approximately $940,000 which will expire on December 31, 1999.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
DECEMBER 31, 1993
ASSETS
Investment in securities, at value (including repurchase $ 65,082,149
agreements of $4,889,000) (cost $24,298,542) (Notes
1 and 2) - See accompanying schedule
Cash 182
Dividends receivable 196,628
TOTAL ASSETS 65,278,959
LIABILITIES
Dividends payable $ 736,078
Accrued management fee 75,736
Other payables and accrued expenses 27,592
TOTAL LIABILITIES 839,406
NET ASSETS $ 64,439,553
Net Assets consist of (Note 1):
Paid in capital $ 24,619,752
Distributions in excess of net investment income (23,403)
Accumulated undistributed net realized gain (loss) on (940,403)
investments
Net unrealized appreciation (depreciation) on investment 40,783,607
securities
NET ASSETS, for 428,255 shares outstanding $ 64,439,553
NET ASSET VALUE, offering price and redemption price per $150.47
share ($64,439,553 (divided by) 428,255 shares)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED DECEMBER 31, 1993
INVESTMENT INCOME $ 1,848,412
Dividends
Interest 137,236
TOTAL INCOME 1,985,648
EXPENSES
Management fee (Note 4) $ 288,973
Transfer agent fees (Note 4) 8,026
Accounting fees and expenses (Note 4) 45,439
Non-interested trustees' compensation 431
Custodian fees and expenses 11,953
Registration fees 375
Audit 24,776
Legal 1,054
Miscellaneous 5,178
TOTAL EXPENSES 386,205
NET INVESTMENT INCOME 1,599,443
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 2,051,018
(NOTES 1 AND 3)
Net realized gain (loss) on investment securities
Change in net unrealized appreciation (depreciation) on 1,272,191
investment securities
NET GAIN (LOSS) 3,323,209
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM $ 4,922,652
OPERATIONS
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
YEARS ENDED DECEMBER 31,
1993 1992
INCREASE (DECREASE) IN NET ASSETS
Operations $ 1,599,443 $ 1,662,331
Net investment income
Net realized gain (loss) on investments 2,051,018 1,581,597
Change in net unrealized appreciation (depreciation) 1,272,191 (3,747,139)
on investments
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 4,922,652 (503,211)
FROM OPERATIONS
Distributions to shareholders from: (1,629,694) (1,636,941)
Net investment income
In excess of net investment income (23,403) -
Total distributions (1,653,097) (1,636,941)
Share transactions -
Reinvestment of distributions from net investment 342,573 463,134
income
Cost of shares redeemed (3,063,119) (3,148,619)
Net increase (decrease) in net assets resulting from (2,720,546) (2,685,485)
share transactions
TOTAL INCREASE (DECREASE) IN NET ASSETS 549,009 (4,825,637)
NET ASSETS
Beginning of period 63,890,544 68,716,181
End of period (including under (over) distribution of net $ 64,439,553 $ 63,890,544
investment income of $(23,403) and $949,165,
respectively)
OTHER INFORMATION
Shares
Issued in reinvestment of distributions from net 2,333 3,296
investment
income
Redeemed (21,075) (22,024)
Net increase (decrease) (18,742) (18,728)
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
YEARS ENDED DECEMBER 31,
1993 1992# 1991 1990 1989
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 142.93 $ 147.55 $ 114.22 $ 116.48 $ 90.13
period
Income from Investment
Operations
Net investment income 3.73 3.79 3.44 3.37 3.00
Net realized and 7.66 (4.76) 33.39 (2.08) 26.75
unrealized gain (loss)
on investments*
Total from investment 11.39 (.97) 36.83 1.29 29.75
operations
Less Distributions
From net investment (3.80) (3.65) (3.50) (3.55) (3.35)
income
In excess of net investment (.05) - - - -
income
From net realized short - - - - (.05)
term gain
Total distributions (3.85) (3.65) (3.50) (3.55) (3.40)
Net asset value, end of $ 150.47 $ 142.93 $ 147.55 $ 114.22 $ 116.48
period
TOTAL RETURN 8.05% (.61)% 32.57% 2.58% 34.32%(dagger)
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 64,440 $ 63,891 $ 68,716 $ 56,720 $ 63,008
(000 omitted)
Ratio of expenses to average .61% .62% .67% .71% .62%(double dagger)
net assets
Ratio of net investment 2.52% 2.58% 2.63% 2.94% 2.83%
income to average net
assets
Portfolio turnover rate 0% 0% 0% 0% 3%
</TABLE>
* After provision for income $ - $ - $ - $ 1.76 $ .91
tax on net realized
long-term capital gain at the
end of the period
(dagger) THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIOD SHOWN.
(double dagger) INCLUDES REDUCTION FROM FIDELITY SERVICE CO. FOR
ADJUSTMENTS TO PRIOR PERIODS' FEES. IF THIS REDUCTION HAD NOT EXISTED, THE
RATIO OF EXPENSES TO AVERAGE NET ASSETS WOULD HAVE BEEN .70%.
# AS OF JANUARY 1, 1992, THE FUND DISCONTINUED THE USE OF EQUALIZATION
ACCOUNTING.
NOTES TO FINANCIAL STATEMENTS
For the period ended December 31, 1993
1. SIGNIFICANT ACCOUNTING
POLICIES.
Fidelity Congress Street Fund (the fund) is registered under the Investment
Company Act of 1940, as amended (the 1940 Act), as an open-end management
investment company organized as a Massachusetts business trust and is
authorized to issue 3.8 million shares. The following summarizes the
significant accounting policies of the fund:
SECURITY VALUATION. Securities for which exchange quotations are readily
available are valued at the last sale price, or if no sale price, at the
closing bid price. Securities for which exchange quotations are not readily
available (and in certain cases debt securities which trade on an
exchange), are valued primarily using dealer-supplied valuations or at
their fair value as determined in good faith under consistently applied
procedures under the general supervision of the Board of Trustees.
Short-term securities maturing within sixty days are valued at amortized
cost or original cost plus accrued interest, both of which approximate
current value.
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, the fund is not subject to income taxes to
the extent that it distributes all of its taxable income for its fiscal
year. The fund intends to retain and pay federal income taxes at year-end
on undistributed net long-term capital gains. The schedule of investments
includes information regarding income taxes under the caption "Income Tax
Information."
INVESTMENT INCOME. Dividend income is recorded on the ex-dividend date,
except certain dividends from foreign securities where the ex-dividend date
may have passed, are recorded as soon as the fund is informed of the
ex-dividend date. Interest income is accrued as earned. Dividend and
interest income is recorded net of foreign taxes where recovery of such
taxes is not assured.
DISTRIBUTIONS TO SHAREHOLDERS. Distributions are recorded on the
ex-dividend date.
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences are primarily due to differing treatments for
redemptions in kind and will result in reclassifications to paid in
capital.
SECURITY TRANSACTIONS. Security transactions are accounted for as of trade
date. Gains and losses on securities sold are determined on the basis of
identified cost.
CHANGE IN ACCOUNTING FOR DISTRIBUTIONS TO SHAREHOLDERS. Effective January
1, 1993, the fund adopted Statement of Position 93-2: Determination,
Disclosure, and Financial Statement Presentation of Income, Capital Gain,
and Return of Capital Distributions by Investment Companies. As a result,
the fund changed the classification of distributions to shareholders to
better disclose the differences between financial statement amounts and
distributions determined in accordance with income tax regulations.
Accordingly, amounts as of December 31,
1. SIGNIFICANT ACCOUNTING
POLICIES - CONTINUED
CHANGE IN ACCOUNTING FOR DISTRIBUTIONS TO SHAREHOLDERS - CONTINUED
1992 have been reclassified to reflect an increase in paid in capital of
$59,009,952, a decrease in undistributed net investment income of $918,916
and a decrease in accumulated net realized gain on investments of
$58,091,036.
2. OPERATING POLICIES.
REPURCHASE AGREEMENTS. The fund, through its custodian, receives delivery
of the underlying securities, whose market value is required to be at least
102% of the resale price at the time of purchase. The fund's investment
adviser, Fidelity Management & Research Company (FMR), is responsible
for determining that the value of these underlying securities remains at
least equal to the resale price.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the fund, along with other registered
investment companies having management contracts with FMR, may transfer
uninvested cash balances into a joint trading account. These balances are
invested in one or more repurchase agreements that are collateralized by
U.S. Treasury or Federal Agency obligations.
3. PURCHASES AND SALES OF
INVESTMENTS.
Sales of securities, other than short-term securities, aggregated
$2,917,659, which represents the current value of securities delivered in
redemption of fund shares. There were no purchases of securities during the
period.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, FMR receives a quarterly
fee that is computed monthly at an annual rate of .50% of the fund's
average net assets. The management fee is subject to a reduction to the
extent that the monthly average net assets of all mutual funds advised by
FMR exceed $4 billion in any month. The management fee payable by the fund
on its portion of the excess is reduced by 10%. For the period, the
management fee was reduced by $27,774. For the period, the management fee
was equivalent to an annual rate of .46% of average net assets after the
fee reduction.
TRANSFER AGENT FEE. Fidelity Service Co. (FSC), an affiliate of FMR, is the
fund's transfer, dividend disbursing and shareholder servicing agent. FSC
receives fees based on the type, size, number of accounts and the number of
transactions made by shareholders. FSC pays for typesetting, printing and
mailing of all shareholder reports, except proxy statements.
ACCOUNTING FEE. FSC maintains the fund's accounting records. The fee is
based on the level of average net assets for the month plus out-of-pocket
expenses.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees and Shareholders of Fidelity Congress Street Fund:
We have audited the accompanying statement of assets and liabilities of
Fidelity Congress Street Fund, including the schedule of portfolio
investments, as of December 31, 1993, and the related statement of
operations for the year then ended, the statement of changes in net assets
for each of the two years in the period then ended and the financial
highlights for each of the five years in the period then ended. These
financial statements and financial highlights are the responsibility of the
fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of December 31, 1993 by correspondence with the
custodian and brokers. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position
of Fidelity Congress Street Fund as of December 31, 1993, the results of
its operations for the year then ended, the changes in its net assets for
each of the two years in the period then ended, and the financial
highlights for each of the five years in the period then ended, in
conformity with generally accepted accounting principles.
COOPERS & LYBRAND
Boston, Massachusetts
February 4, 1994
TO CALL FIDELITY
FOR FUND INFORMATION AND QUOTES
The Fidelity Telephone Connection offers you special automated telephone
services for quotes and balances. The services are easy to use,
confidential and quick. All you need is a Touch Tone telephone.
YOUR PERSONAL IDENTIFICATION NUMBER
(PIN)
The first time you call one of our automated telephone services, we'll ask
you
to set up your Personal Identification
Number (PIN). The PIN assures that
only you have automated telephone
access to your account information.
Please have your Customer Number
(T-account #) handy when you call --
you'll need it to establish your PIN. If
you would ever like to change your PIN, just choose the "Change your
Personal
Identification Number" option when
you call. If you forget your PIN, please
call a Fidelity representative at 1-800-
544-6666 for assistance.
(PHONE_GRAPHIC)(PHONE_GRAPHIC)MUTUAL FUND QUOTES*
1-800-544-8544
Just make a selection from this record-ed menu:
PRESS
For quotes on funds you own.
1.
For an individual fund quote.
2.
For the ten most frequently
requested Fidelity fund quotes.
3.
For quotes on Fidelity Select
Portfolios.(Registered trademark)
4.
To change your Personal
Identification Number (PIN).
5.
To speak with a Fidelity
representative.
6.
(PHONE_GRAPHIC)(PHONE_GRAPHIC)MUTUAL FUND ACCOUNT
BALANCES 1-800-544-7544
Just make a selection from this record-
ed menu:
PRESS
For balances on funds you own.
1.
For your most recent fund activity
(purchases, redemptions, and
dividends).
2.
To change your Personal
Identification Number (PIN).
3.
To speak with a Fidelity
representative.
4.
* WHEN YOU CALL THE QUOTES LINE, PLEASE REMEMBER THAT A FUND'S YIELD AND
RETURN WILL
VARY AND, EXCEPT FOR MONEY MARKET FUNDS, SHARE PRICE WILL ALSO VARY. THIS
MEANS THAT
YOU MAY HAVE A GAIN OR LOSS WHEN YOU SELL YOUR SHARES. THERE IS NO
ASSURANCE THAT
MONEY MARKET FUNDS WILL BE ABLE TO MAINTAIN A STABLE $1 SHARE PRICE; AN
INVESTMENT IN
A MONEY MARKET FUND IS NOT INSURED OR GUARANTEED BY THE U.S. GOVERNMENT.
TOTAL
RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN SHARE PRICE, REINVESTMENT OF
DIVIDENDS
AND CAPITAL GAINS, AND THE EFFECTS OF ANY SALES CHARGES. FOR MORE
INFORMATION ON ANY
FIDELITY FUND INCLUDING MANAGEMENT FEES AND CHARGES, CALL 1-800-544-8888
FOR A FREE
PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Rufus C. Cushman Jr., Vice President
Gary L. French, Treasurer
John H. Costello, Assistant Treasurer
Arthur S. Loring, Secretary
Robert H. Morrison, Manager,
Security Transactions
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox *
Phyllis Burke Davis *
Richard J. Flynn *
Edward C. Johnson 3d
E. Bradley Jones *
Donald J. Kirk *
Peter S. Lynch
Edward H. Malone *
Marvin L. Mann *
Gerald C. McDonough *
Thomas R. Williams *
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENT
Fidelity Service Co.
Boston, MA
CUSTODIAN
Brown Brothers Harriman & Co.
Boston, MA
FIDELITY GROWTH AND INCOME FUNDS
Balanced Fund
Congress Street Fund
Convertible Securities Fund
Equity-Income Fund
Equity-Income II Fund
Fidelity Fund
Global Balanced Fund
Growth & Income Portfolio
Market Index Fund
Puritan Fund
Real Estate Investment Portfolio
Utilities Income Fund
THE FIDELITY TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Account Balances 1-800-544-7544
Exchanges/Redemptions 1-800-544-7777
Mutual Fund Quotes 1-800-544-8544
Account Assistance 1-800-544-6666
Product Information 1-800-544-8888
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE
