(2_FIDELITY_LOGOS)FIDELITY
CONGRESS STREET
FUND
ANNUAL REPORT
DECEMBER 31, 1994
CONTENTS
PRESIDENT'S MESSAGE 3 Ned Johnson on stock market
strategies.
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 past six
months.
INVESTMENTS 9 A complete list of the fund's
investments with their market
values.
FINANCIAL STATEMENTS 12 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.
NOTES 16 Notes to the financial statements.
REPORT OF INDEPENDENT 18 The auditors' opinion.
ACCOUNTANTS
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL
INFORMA-
TION 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. MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR
GUARANTEED BY,
ANY DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE FDIC, THE FEDERAL
RESERVE
BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO IN-
VESTMENT RISK, INCLUDING THE POSSIBLE LOSS OF PRINCIPAL. NEITHER THE FUND
NOR FIDELITY
DISTRIBUTORS CORPORATION IS A BANK. FOR MORE INFORMATION ON ANY FIDELITY
FUND, INCLUDING
CHARGES AND EXPENSES, CALL 1-800-544-8888 FOR A FREE PROSPECTUS. READ IT
CAREFULLY BEFORE
YOU INVEST OR SEND MONEY.
PRESIDENT'S MESSAGE
DEAR SHAREHOLDER:
The unsettling period that began for investors when the Federal Reserve
Board raised short-term interest rates in February continued into the
fourth quarter of 1994. The Board raised the federal funds rate - the rate
banks charge each other for overnight loans - five times from February
through August, taking it from 3.00% to 4.75%. A sixth increase in November
lifted the rate to 5.50%. The Fed rate hikes were intended to forestall
inflation that could result from an improving U.S. economy, and they led to
below-average returns for many stocks and negative returns for many bond
investments.
The volatility we have witnessed this year follows a period in which there
was a nearly perfect investing environment. Although there was a
late-summer rally in stocks and, to a lesser extent in bond markets, it is
impossible to predict where interest rates might go or what might happen in
the markets in the months ahead. That's why it probably is a good time to
again review your investment portfolio and how well it matches your goals.
If you can leave your money invested over the long term, you can avoid much
of the volatility that generally accompanies the stock market in the short
term, as we have been witnessing this year. You also can help to manage
risk through diversification of investments. A stock fund is already
diversified because it invests in many issues. You can diversify even
further by placing some of your money in several different stock funds or
in other investment categories, such as bonds.
If you have a short investment time horizon, you might want to consider
moving some of your investment into a money market fund, which seeks income
and a stable share price by investing in high-quality, short-term
investments. As with any mutual fund, of course, there is no assurance that
a money market fund will achieve its goal, and it is important to remember
that money market funds are not insured by any agency of the U.S.
government.
Finally, no matter what your investment horizon or portfolio diversity, it
makes good sense to follow a regular investment plan - investing a certain
amount of money at the same time each month or quarter - and to review your
portfolio periodically, as we have discussed here. A periodic investment
plan will not, of course, assure a profit or protect against a loss.
If you have any questions, please call us at 1-800-544-8888. We stand ready
to provide the information you need to make the investments that are right
for you.
Best regards,
Edward C. Johnson 3d
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, 1994 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
Congress Street 5.86% 54.59% 310.48%
S&P 500(registered trademark) 1.32% 51.77% 283.58%
Average Growth & Income Fund -0.94% 49.80% 224.96%
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, one, five, or 10 years. For example, if
you had invested $1,000 in a fund that had a return of 5% over the past
year, you would have $1,050. You can compare these figures to the
performance of the Standard & Poor's Composite Index of 500 stocks - a
common proxy for the U.S. stock market. You can also compare them to the
average growth and income fund, which currently reflects the performance of
347 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, 1994 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
Congress Street 5.86% 9.10% 15.17%
S&P 500(registered trademark) 1.32% 8.70% 14.39%
Average Growth & Income Fund -0.94% 8.29% 12.38%
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. (024) Standard & Poor's 50
12/31/84 10000.00 10000.00
01/31/85 10556.58 10779.00
02/28/85 10707.87 10911.58
03/31/85 10838.46 10919.22
04/30/85 10653.89 10909.39
05/31/85 11405.50 11539.96
06/30/85 11481.62 11721.13
07/31/85 11580.56 11703.55
08/31/85 11477.81 11604.07
09/30/85 11200.00 11240.86
10/31/85 11556.89 11760.19
11/30/85 12662.80 12566.94
12/31/85 13286.44 13175.18
01/31/86 13350.88 13248.96
02/28/86 14530.34 14239.98
03/31/86 15655.12 15034.57
04/30/86 15517.26 14864.68
05/31/86 16514.67 15655.49
06/30/86 16829.33 15920.06
07/31/86 16298.96 15030.13
08/31/86 17240.96 16145.37
09/30/86 15497.47 14810.15
10/31/86 16645.00 15664.69
11/30/86 17054.06 16045.34
12/31/86 16769.32 15636.19
01/31/87 19038.00 17742.38
02/28/87 19914.58 18443.20
03/31/87 20141.24 18976.21
04/30/87 19702.86 18807.33
05/31/87 19682.58 18970.95
06/30/87 20787.55 19928.98
07/31/87 21833.72 20939.38
08/31/87 22752.16 21720.42
09/30/87 22366.94 21244.74
10/31/87 17786.98 16668.63
11/30/87 16183.76 15295.13
12/31/87 17572.34 16459.09
01/31/88 17899.71 17152.02
02/29/88 18704.40 17951.30
03/31/88 17948.29 17396.61
04/30/88 18039.48 17589.71
05/31/88 18257.85 17742.74
06/30/88 19135.63 18557.13
07/31/88 18895.85 18486.61
08/31/88 18534.03 17858.07
09/30/88 19424.66 18618.82
10/31/88 19835.72 19136.43
11/30/88 19550.97 18862.78
12/31/88 19769.11 19192.87
01/31/89 21056.64 20597.79
02/28/89 20549.96 20084.91
03/31/89 20960.13 20552.89
04/30/89 22238.88 21619.58
05/31/89 23114.05 22495.17
06/30/89 22825.01 22366.95
07/31/89 25237.00 24386.69
08/31/89 25250.32 24864.67
09/30/89 25145.94 24762.72
10/31/89 25150.38 24188.23
11/30/89 25812.23 24681.66
12/31/89 26553.01 25274.02
01/31/90 24455.76 23578.14
02/28/90 24799.99 23882.30
03/31/90 25805.30 24515.18
04/30/90 25379.01 23902.30
05/31/90 27945.86 26232.77
06/30/90 28339.54 26054.39
07/31/90 28434.16 25971.01
08/31/90 26121.76 23623.23
09/30/90 24700.17 22472.78
10/31/90 24884.79 22376.15
11/30/90 26368.69 23821.65
12/31/90 27236.90 24486.27
01/31/91 28095.36 25553.87
02/28/91 30146.11 27380.98
03/31/91 31052.26 28043.60
04/30/91 31011.72 28110.90
05/31/91 32139.64 29325.29
06/30/91 30577.93 27982.19
07/31/91 32063.89 29286.16
08/31/91 33221.78 29980.25
09/30/91 32794.81 29479.58
10/31/91 33641.52 29874.60
11/30/91 32698.32 28670.66
12/31/91 36108.44 31950.58
01/31/92 35266.60 31356.30
02/29/92 35188.29 31763.93
03/31/92 34449.23 31144.53
04/30/92 35053.69 32060.18
05/31/92 35036.56 32217.28
06/30/92 34269.04 31737.24
07/31/92 35788.15 33035.29
08/31/92 35216.62 32358.07
09/30/92 35060.75 32739.89
10/31/92 34875.20 32854.48
11/30/92 35780.72 33974.82
12/31/92 35886.86 34392.71
01/31/93 35427.39 34681.61
02/28/93 35881.84 35153.28
03/31/93 36358.89 35895.02
04/30/93 35889.38 35026.36
05/31/93 37001.66 35965.06
06/30/93 36692.09 36069.36
07/31/93 36181.49 35925.08
08/31/93 37522.77 37286.64
09/30/93 37029.95 36999.54
10/31/93 38348.37 37765.43
11/30/93 38289.94 37406.66
12/31/93 38776.12 37859.28
01/31/94 39299.25 39146.49
02/28/94 38923.01 38085.62
03/31/94 37242.80 36425.09
04/30/94 37258.27 36891.33
05/31/94 38103.52 37496.35
06/30/94 36861.78 36577.69
07/31/94 38320.08 37777.44
08/31/94 40206.21 39326.31
09/30/94 39757.50 38362.82
10/31/94 40814.05 39225.98
11/30/94 40143.60 37797.37
12/30/94 41047.50 38357.90
$10,000 OVER 10 YEARS: Let's say you invested $10,000 in Fidelity Congress
Street Fund on December 31, 1984. As the chart shows, by December 31, 1994,
the value of your investment would have grown to $41,048 - a 310.48%
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 $38,358 - a 283.58% 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
Pressures from rising interest
rates contributed to below-average
returns in the U.S. stock market
during the 12 months ended
December 31, 1994. The
Standard and Poor's Composite
Index of 500 stocks finished the
12-month period with a total
return of 1.32% - well below its
historical annual average. After
steady gains in January, stocks
stumbled from February through
June 1994. During that time, the
Federal Reserve Board raised
short-term interest rates four
times in an effort to curb
possible future inflation triggered
by a strengthening economy.
During the second half of 1994,
there was a tug-of-war in the
stock market, fueled by two
competing sentiments. On one
side there was concern that rising
interest rates would hurt
corporate earnings; the market
dropped in November when the
Fed raised rates again. On the
other hand, strengthening
corporate earnings and a flurry
of merger and acquisition
activity helped the market rally
from July through October and in
December as well. Returns in
overseas market were mixed. The
Morgan Stanley EAFE (Europe,
Australia, Far East) index
returned 7.78% for the 12 months
ended December 31. The
Morgan Stanley Emerging
Markets Free index was down
7.32% during the same period, on
the heels of Mexico's devaluation
of the peso and market corrections
in Asian emerging markets.
NOTE TO SHAREHOLDERS: After 26 years at Fidelity, Sandy Cushman has
retired. As of January 1, 1995, Jonathan F. (Jay) Weed has assumed
responsibility for Congress Street Fund. Mr. Weed is a vice president and a
chief investment officer of Fidelity Personal Trust Services, a division of
Fidelity Management Trust Company. Previously, he managed Fidelity's $2
billion equity index mutual funds for over five years. Mr. Weed joined
Fidelity in 1984.
A Message from Jonathan F. Weed, Portfolio Manager of Fidelity
Congress Street Fund
Dear Congress Street Fund Shareholder:
The past year has been a trying time for even the most seasoned stock
market investor, but your fund fared better than most stock portfolios. The
fund had a total return of 5.86% for the 12 months ended December 31, 1994.
That beat the Standard and Poor's 500 stock index, which returned 1.32%
during the same period. The fund also performed better than the average
growth and income fund, which fell 0.94%, according to Lipper Analytical
Services.
While the fund's stocks were affected by variables particular to them,
certain trends also tended to influence performance. For example, growth
stocks - those of companies with rapid earnings growth - fared better than
cyclicals - those whose prices usually rise and fall in tandem with the
economy. The fund benefited from the growth stock trend through its
investments in technology, 13.4% of the fund as of December 31. This was
one of the best performing sectors in 1994, largely due to strong earnings.
For example, Motorola was helped by strong cellular subscriber growth.
Hewlett Packard also showed positive earnings growth and benefited the
fund.
The fund's investments in the consumer nondurables sector included three
other growth stocks that were among the fund's top performers. Strong sales
in the U.S. and South America helped Coca-Cola. The other two - Campbell
Soup and H.J. Heinz - were rewarded by the market for showing strong
earnings and solidifying market share through acquisitions.
Health care stocks also rebounded well over the past six months, as it
became clearer that health care reform would not be part of the political
agenda. Johnson & Johnson was one of the fund's top performers, for the
most part because of gains in earnings. Merck has reorganized and is
focusing on cost cutting, selling the non-drug parts of its business and
developing new products.
Cyclical stocks fell out of favor because investors were less willing to
bet against the effect of rising interest rates. For example, even though
earnings projections in the railroad industry remained positive, there was
concern an economic slowdown could hurt profits there. The fund's railroad
stock, Union Pacific, also fell because of worries that its value would be
diluted by the company's attempted takeover of the Santa Fe Railroad.
Banks did poorly because of a tightening in their interest margins - the
difference between the interest rates they pay and those they earn through
lending. This affected the fund's worst performer, Banker's Trust of New
York, as did a decline in investment activity and losses on derivatives
contracts it absorbed on behalf of clients. Utility stocks were hurt by
interest rate increases because alternative investments such as CDs and
savings accounts became more attractive. In addition, utilities are facing
deregulation that could result in increased competition and difficulty
obtaining rate hikes. Consolidated Edison and Potomac Electric Power were
two stocks whose performances held back the fund.
Looking ahead, market performance depends on interest rates and the
economy. The Fed's commitment to controlling inflation benefits the market,
but questions remain as to whether it will have to continue to raise
interest rates to do so. If 1994's interest rate increases begin to affect
corporate earnings negatively, stocks could suffer. In addition, higher
yields for other investments could put pressure on stocks. However, if
interest rates stabilize and earnings remain strong, stock performance
could improve. In any event, a long-term outlook will help you more easily
weather periodic market downturns.
Sincerely,
Jonathan F. Weed
INVESTMENT CHANGES
TOP TEN STOCKS AS OF DECEMBER 31, 1994
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE STOCKS
6 MONTHS AGO
Johnson & Johnson 5.0 4.2
Motorola, Inc. 5.0 4.7
International Paper Co. 4.9 4.5
Colgate-Palmolive Co. 4.7 4.1
General Electric Co. 4.1 3.9
Hewlett-Packard Co. 4.0 3.2
Coca-Cola Company (The) 4.0 4.6
GTE Corp. 3.5 3.8
Boeing Co. 3.5 3.6
American Home Products Corp. 3.5 3.3
TOP FIVE INDUSTRIES AS OF DECEMBER 31, 1994
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE INDUSTRIES
6 MONTHS AGO
Nondurables 20.1 20.4
Health 17.2 15.3
Technology 13.4 12.3
Energy 9.5 9.9
Basic Industries 8.8 8.4
ASSET ALLOCATION
AS OF DECEMBER 31, 1994 AS OF JUNE 30, 1994
Row: 1, Col: 1, Value: 8.199999999999999
Row: 1, Col: 2, Value: 51.8
Row: 1, Col: 3, Value: 40.0
Row: 1, Col: 1, Value: 0.0
Row: 1, Col: 2, Value: 7.1
Row: 1, Col: 3, Value: 40.0
Row: 1, Col: 4, Value: 52.9
Stocks 91.8%
Short-term
Investments 8.2%
Stocks 92.9%
Short-term
Investments 7.1%
INVESTMENTS DECEMBER 31, 1994
Showing Percentage of Total Value of Investment in Securities
COMMON STOCKS - 91.8%
SHARES VALUE (NOTE 1)
AEROSPACE & DEFENSE - 3.5%
Boeing Co. 46,554 $ 2,176,396
BASIC INDUSTRIES - 8.8%
CHEMICALS & PLASTICS - 0.9%
Eastman Chemical Co. 10,953 553,127
PAPER & FOREST PRODUCTS - 7.9%
International Paper Co. 40,099 3,022,462
Union Camp Corp. 40,000 1,885,000
4,907,462
TOTAL BASIC INDUSTRIES 5,460,589
CONGLOMERATES - 3.2%
United Technologies Corp. 31,500 1,980,563
ENERGY - 9.5%
OIL & GAS - 9.5%
Chevron Corp. 40,000 1,785,000
Exxon Corp. 33,000 2,004,750
Mobil Corp. 25,000 2,106,250
5,896,000
FINANCE - 2.2%
BANKS - 2.2%
Bankers Trust New York Corp. 24,962 1,382,271
HEALTH - 17.2%
DRUGS & PHARMACEUTICALS - 12.2%
American Home Products Corp. 34,501 2,164,938
Lilly (Eli) & Co. 29,617 1,943,616
Merck & Co., Inc. 47,486 1,810,404
Upjohn Co. 52,251 1,606,718
7,525,676
MEDICAL EQUIPMENT & SUPPLIES - 5.0%
Johnson & Johnson 56,542 3,095,675
TOTAL HEALTH 10,621,351
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
INDUSTRIAL MACHINERY & EQUIPMENT - 5.0%
ELECTRICAL EQUIPMENT - 4.1%
General Electric Co. 50,000 $ 2,550,000
POLLUTION CONTROL - 0.9%
WMX Technologies, Inc. 20,000 525,000
TOTAL INDUSTRIAL MACHINERY & EQUIPMENT 3,075,000
MEDIA & LEISURE - 2.4%
PUBLISHING - 2.4%
Knight-Ridder, Inc. 30,000 1,515,000
NONDURABLES - 20.1%
BEVERAGES - 7.1%
Anheuser-Busch Companies, Inc. 38,336 1,950,344
Coca-Cola Company (The) 48,134 2,478,901
4,429,245
FOODS - 6.4%
Campbell Soup Co. 47,918 2,114,382
Heinz (H.J.) Co. 49,906 1,834,046
3,948,428
HOUSEHOLD PRODUCTS - 4.7%
Colgate-Palmolive Co. 46,033 2,917,341
TOBACCO - 1.9%
Philip Morris Companies, Inc. 20,000 1,150,000
TOTAL NONDURABLES 12,445,014
TECHNOLOGY - 13.4%
COMPUTERS & OFFICE EQUIPMENT - 5.0%
Hewlett-Packard Co. 25,000 2,496,875
International Business Machines Corp. 8,211 603,509
3,100,384
ELECTRONICS - 5.0%
Motorola, Inc. 53,400 3,090,525
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
TECHNOLOGY - CONTINUED
PHOTOGRAPHIC EQUIPMENT - 3.4%
Eastman Kodak Co. 43,812 $ 2,092,023
TOTAL TECHNOLOGY 8,282,932
TRANSPORTATION - 0.7%
RAILROADS - 0.7%
Union Pacific Corp. 9,660 440,738
UTILITIES - 5.8%
ELECTRIC UTILITY - 2.3%
Consolidated Edison Co. of New York, Inc. 26,264 676,298
Potomac Electric Power Co. 40,000 735,000
1,411,298
TELEPHONE SERVICES - 3.5%
GTE Corp. 71,838 2,182,079
TOTAL UTILITIES 3,593,377
TOTAL COMMON STOCKS
(Cost $18,295,275) 56,869,231
REPURCHASE AGREEMENTS - 8.2%
MATURITY
AMOUNT
Investments in repurchase agreements,
(U.S.Treasury obligations), in a
joint trading account at 5.77%
dated 12/30/94 due 1/3/95 $ 5,053,238 5,050,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $23,345,275) $ 61,919,231
INCOME TAX INFORMATION
At December 31, 1994, the aggregate cost of investment securities for
income tax purposes was $23,345,275. Net unrealized appreciation aggregated
$38,573,956, of which $39,022,386 related to appreciated investment
securities and $448,430 related to depreciated investment securities.
At December 31, 1994, 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, 1994
ASSETS
Investment in securities, at value (including repurchase $ 61,919,231
agreements of $5,050,000) (cost $23,345,275) -
See accompanying schedule
Cash 501
Receivable for investments sold 675,339
Dividends receivable 214,046
TOTAL ASSETS 62,809,117
LIABILITIES
Payable for fund shares redeemed $ 675,354
Dividends Payable 724,960
Accrued management fee 70,557
Other payables and accrued expenses 31,268
TOTAL LIABILITIES 1,502,139
NET ASSETS $ 61,306,978
Net Assets consist of:
Paid in capital $ 23,618,127
Undistributed net investment income 55,297
Accumulated undistributed net realized gain (loss) (940,402)
on investments
Net unrealized appreciation (depreciation) on 38,573,956
investments
NET ASSETS, for 395,423 shares outstanding $ 61,306,978
NET ASSET VALUE, offering price and redemption price per $155.04
share ($61,306,978 (divided by) 395,423 shares)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED DECEMBER 31, 1994
INVESTMENT INCOME $ 1,949,438
Dividends
Interest 191,467
TOTAL INCOME 2,140,905
EXPENSES
Management fee $ 278,527
Transfer agent fees 8,149
Accounting fees and expenses 45,356
Non-interested trustees' compensation 356
Custodian fees and expenses 9,159
Registration fees 200
Audit 32,061
Legal 394
Miscellaneous 2,687
TOTAL EXPENSES 376,889
NET INVESTMENT INCOME 1,764,016
REALIZED AND UNREALIZED GAIN (LOSS) 4,042,458
Net realized gain (loss) on investment securities
Change in net unrealized appreciation (depreciation) on (2,209,651)
investment securities
NET GAIN (LOSS) 1,832,807
NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ 3,596,823
FROM OPERATIONS
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
1994 1993
INCREASE (DECREASE) IN NET ASSETS
Operations $ 1,764,016 $ 1,599,443
Net investment income
Net realized gain (loss) 4,042,458 2,051,018
Change in net unrealized appreciation (depreciation) (2,209,651) 1,272,191
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 3,596,823 4,922,652
FROM OPERATIONS
Distributions to shareholders (1,685,315) (1,629,694)
From net investment income
In excess of net investment income - (23,403)
TOTAL DISTRIBUTIONS (1,685,315) (1,653,097)
Share transactions
Reinvestment of distributions 365,640 342,573
Cost of shares redeemed (5,409,723) (3,063,119)
Net increase (decrease) in net assets resulting from (5,044,083) (2,720,546)
share transactions
TOTAL INCREASE (DECREASE) IN NET ASSETS (3,132,575) 549,009
NET ASSETS
Beginning of period 64,439,553 63,890,544
End of period (including under (over) distribution of $ 61,306,978 $ 64,439,553
net investment income of $55,297 and $(23,403),
respectively)
OTHER INFORMATION
Shares
Issued in reinvestment of distributions 2,427 2,333
Redeemed (35,259) (21,075)
Net increase (decrease) (32,832) (18,742)
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
YEARS ENDED DECEMBER 31,
1994 1993 1992 A 1991 1990
SELECTED PER-SHARE DATA
Net asset value, beginning $ 150.47 $ 142.93 $ 147.55 $ 114.22 $ 116.48
of period
Income from Investment
Operations
Net investment income 4.29 3.73 3.79 3.44 3.37
Net realized and 4.38 7.66 (4.76) 33.39 (2.08)
unrealized gain (loss)*
Total from investment 8.67 11.39 (.97) 36.83 1.29
operations
Less Distributions (4.10) (3.80) (3.65) (3.50) (3.55)
From net investment
income
In excess of net - (.05) - - -
investment
income
From net realized gain - - - - -
Total distributions (4.10) (3.85) (3.65) (3.50) (3.55)
Net asset value, end of $ 155.04 $ 150.47 $ 142.93 $ 147.55 $ 114.22
period
TOTAL RETURN 5.86% 8.05% (.61)% 32.57% 2.58%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 61,307 $ 64,440 $ 63,891 $ 68,716 $ 56,720
(000 omitted)
Ratio of expenses to .60% .61% .62% .67% .71%
average net assets
Ratio of net investment 2.82% 2.52% 2.58% 2.63% 2.94%
income to average net
assets
Portfolio turnover rate 0% 0% 0% 0% 0%
*After provision for income $ - $ - $ - $ - $ 1.76
tax on net realized
long-term capital gain at
the end of the period
</TABLE>
A AS OF JANUARY 1, 1992, THE FUND DISCONTINUED THE USE OF EQUALIZATION
ACCOUNTING.
NOTES TO FINANCIAL STATEMENTS
For the period ended December 31, 1994
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 of their purchase date 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. Investment income
is recorded net of foreign taxes withheld where recovery of such taxes is
uncertain.
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.
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
2. OPERATING POLICIES -
CONTINUED
REPURCHASE AGREEMENTS -
CONTINUED
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(SEC), the fund, along with other
affiliated entities of FMR, may transfer uninvested cash balances into one
or more joint trading accounts. These balances are invested in one or more
repurchase agreements that mature in 60 days or less from the date of
purchase, and 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
$5,156,726, 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 $30,793. For the period, the management fee
was equivalent to an annualized rate of .45% of average net assets after
the fee reduction.
TRANSFER AGENT FEES. 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 FEES. 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, 1994, 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, 1994 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, 1994, 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 L.L.P.
Boston, Massachusetts
February 1, 1995
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.
TO VISIT FIDELITY
For directions and hours,
please call 1-800-544-9797.
ARIZONA
7373 N. Scottsdale Road
Scottsdale, AZ
CALIFORNIA
851 East Hamilton Avenue
Campbell, CA
527 North Brand Boulevard
Glendale, CA
19100 Von Karman Avenue
Irvine, CA
10100 Santa Monica Blvd.
Los Angeles, CA
811 Wilshire Boulevard
Los Angeles, CA
251 University Avenue
Palo Alto, CA
1760 Challenge Way
Sacramento, CA
7676 Hazard Center Drive
San Diego, CA
455 Market Street
San Francisco, CA
1400 Civic Drive
Walnut Creek, CA
COLORADO
1625 Broadway
Denver, CO
CONNECTICUT
185 Asylum Street
Hartford, CT
265 Church Street
New Haven, CT
300 Atlantic Street
Stamford, CT
DELAWARE
222 Delaware Avenue
Wilmington, DE
FLORIDA
4400 N. Federal Highway
Boca Raton, FL
90 Alhambra Plaza
Coral Gables, FL
4090 N. Ocean Boulevard
Ft. Lauderdale, FL
4001 Tamiami Trail, North
Naples, FL
1907 West State Road 434
Orlando, FL
2401 PGA Boulevard
Palm Beach Gardens, FL
8065 Beneva Road
Sarasota, FL
2000 66th Street, North
St. Petersburg, FL
GEORGIA
3525 Piedmont Road, N.E.
Atlanta, GA
1000 Abernathy Road
Atlanta, GA
HAWAII
700 Bishop Street
Honolulu, HI
ILLINOIS
215 East Erie Street
Chicago, IL
One North Franklin
Chicago, IL
540 Lake Cook Road
Deerfield, IL
1415 West 22nd Street
Oak Brook, IL
1700 East Golf Road
Schaumburg, IL
LOUISIANA
201 St. Charles Avenue
New Orleans, LA
MAINE
3 Canal Plaza
Portland, ME
MARYLAND
1 West Pennsylvania Ave.
Towson, MD
7401 Wisconsin Avenue
Bethesda, MD
MASSACHUSETTS
470 Boylston Street
Boston, MA
21 Congress Street
Boston, MA
25 State Street
Boston, MA
300 Granite Street
Braintree, MA
101 Cambridge Street
Burlington, MA
416 Belmont Street
Worcester, MA
MICHIGAN
280 North Woodward Ave.
Birmingham, MI
26955 Northwestern Hwy.
Southfield, MI
MINNESOTA
38 South Sixth Street
Minneapolis, MN
MISSOURI
700 West 47th Street
Kansas City, MO
8885 Ladue Road
Ladue, MO
200 North Broadway
St. Louis, MO
NEW JERSEY
60B South Street
Morristown, NJ
501 Route 17, South
Paramus, NJ
505 Millburn Avenue
Short Hills, NJ
NEW YORK
1050 Franklin Avenue
Garden City, NY
999 Walt Whitman Road
Melville, L.I., NY
71 Broadway
New York, NY
350 Park Avenue
New York, NY
10 Bank Street
White Plains, NY
NORTH CAROLINA
2200 West Main Street
Durham, NC
4611 Sharon Road
Charlotte, NC
OHIO
600 Vine Street
Cincinnati, OH
1903 East Ninth Street
Cleveland, OH
28699 Chagrin Boulevard
Woodmere Village, OH
OREGON
121 S.W. Morrison Street
Portland, OR
PENNSYLVANIA
1735 Market Street
Philadelphia, PA
439 Fifth Avenue
Pittsburgh, PA
TENNESSEE
5100 Poplar Avenue
Memphis, TN
TEXAS
10000 Research Boulevard
Austin, TX
7001 Preston Road
Dallas, TX
1155 Dairy Ashford
Houston, TX
1010 Lamar Street
Houston, TX
2701 Drexel Drive
Houston, TX
400 East Las Colinas Blvd.
Irving, TX
14100 San Pedro
San Antonio, TX
UTAH
215 South State Street
Salt Lake City, UT
VERMONT
199 Main Street
Burlington, VT
VIRGINIA
8180 Greensboro Drive
McLean, VA
WASHINGTON
411 108th Avenue, N.E.
Bellevue, WA
1001 Fourth Avenue
Seattle, WA
WASHINGTON, DC
1775 K Street, N.W.
Washington, DC
WISCONSIN
222 East Wisconsin Avenue
Milwaukee, WI
TO WRITE FIDELITY
If more than one address is listed, please locate the address that is
closest to you. We'll give your correspondence immediate attention and send
you written confirmation upon completion of your request.
(LETTER_GRAPHIC)MAKING CHANGES
TO YOUR ACCOUNT
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002
(LETTER_GRAPHIC)FOR NON-RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
OVERNIGHT EXPRESS
Fidelity Investments
100 Crosby Parkway - KP2C
Covington, KY 41015-4399
SELLING SHARES
Fidelity Investments
P.O. Box 193
Boston, MA 02210-0193
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
Fidelity Investments
P.O. Box 30281
Salt Lake City, UT 84130-0281
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions
World Trade Center
164 Northern Avenue
Boston, MA 02210
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 193
Boston, MA 02210-0193
(LETTER_GRAPHIC)FOR RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Jonathan F. Weed, Vice President
William J. Hayes, Vice President
Arthur S. Loring, Secretary
Gary L. French, Treasurer
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
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)
(registered trademark)
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE
