(2_FIDELITY_LOGOS)FIDELITY
CONGRESS STREET
FUND
SEMIANNUAL REPORT
JUNE 30, 1996
CONTENTS
PRESIDENT'S MESSAGE 3 Ned Johnson on investing
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.
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL
INFORMATION OF THE SHAREHOLDERS OF THE FUND.
MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED BY,
ANY DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE FDIC, FEDERAL
RESERVE BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO INVESTMENT RISKS,
INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT INVESTED.
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:
Although stocks have managed to post solid returns through the first six
months of 1996, signs of strength in the economy have led to inflation
fears, causing some uncertainty in bond markets so far this year. In 1995,
both stock and bond markets posted strong results, while the year before,
stocks posted below-average returns and bonds had one of the worst years in
history.
These market ups and downs are a normal part of investing, and there are
some basic principles that are helpful for investors to remember in
different types of markets.
If you can leave your money invested over the long term, you can avoid the
results of the volatility that generally accompanies the stock market in
the short term. You also can help to manage some of the risks of investing
through diversification. 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 types of 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. 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 or guaranteed 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. 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. A fund's total
return 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 JUNE 30, 1996 PAST 6 PAST 1 PAST 5 PAST 10
MONTHS YEAR YEARS YEARS
Congress Street 12.38% 30.04% 109.13% 279.98%
S&P 500(registered trademark) 10.10% 26.00% 107.63% 264.95%
Growth & Income Funds 9.24% 22.13% 95.61% 205.50%
Average
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, six months, one, five, or 10 years. For
example, if you invested $1,000 in a fund that had a return of 5% over the
past year, the value of your investment would be $1,050. You can compare
the fund's returns to the performance of the Standard & Poor's 500 Index -
a widely recognized, unmanaged index of common stock prices. The index
figures assume reinvestment of all dividends paid by stocks included in the
index. They do not, however, include any allowance for the brokerage
commissions or other fees you would pay if you actually invested in those
stocks. To measure how the fund's performance stacked up against its peers,
you can compare it to the growth and income funds average, which reflects
the performance of 527 mutual funds with similar objectives tracked by
Lipper Analytical Services, Inc. over the past six months. Both benchmarks
include reinvested dividends and capital gains, if any, and exclude the
effects of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JUNE 30, 1996 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
Congress Street 30.04% 15.90% 14.28%
S&P 500 26.00% 15.73% 13.79%
Growth & Income Funds Average 22.13% 14.25% 11.70%
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
IMAHDR PRASUN SHR__CHT 19960630 19960710 120848 S00000000000001
Congress Street SP Standard & Poor 500
00024 SP001
1986/06/30 10000.00 10000.00
1986/07/31 9684.85 9441.00
1986/08/31 10244.59 10141.52
1986/09/30 9208.61 9302.82
1986/10/31 9890.47 9839.59
1986/11/30 10133.53 10078.69
1986/12/31 9964.34 9821.69
1987/01/31 11312.39 11144.67
1987/02/28 11833.25 11584.88
1987/03/31 11967.94 11919.68
1987/04/30 11707.45 11813.60
1987/05/31 11695.40 11916.38
1987/06/30 12351.97 12518.16
1987/07/31 12973.61 13152.83
1987/08/31 13519.35 13643.43
1987/09/30 13290.45 13344.63
1987/10/31 10569.05 10470.20
1987/11/30 9616.41 9607.46
1987/12/31 10441.55 10338.58
1988/01/31 10636.08 10773.84
1988/02/29 11114.23 11275.90
1988/03/31 10664.94 10927.47
1988/04/30 10719.13 11048.77
1988/05/31 10848.89 11144.89
1988/06/30 11370.47 11656.44
1988/07/31 11227.99 11612.15
1988/08/31 11013.00 11217.34
1988/09/30 11542.21 11695.19
1988/10/31 11786.46 12020.32
1988/11/30 11617.27 11848.43
1988/12/31 11746.92 12055.78
1989/01/31 12511.98 12938.26
1989/02/28 12210.91 12616.10
1989/03/31 12454.63 12910.05
1989/04/30 13214.47 13580.08
1989/05/31 13734.50 14130.08
1989/06/30 13562.75 14049.54
1989/07/31 14995.96 15318.21
1989/08/31 15003.88 15618.45
1989/09/30 14941.85 15554.41
1989/10/31 14944.49 15193.55
1989/11/30 15337.77 15503.50
1989/12/31 15777.96 15875.58
1990/01/31 14531.76 14810.33
1990/02/28 14736.30 15001.38
1990/03/31 15333.66 15398.92
1990/04/30 15080.36 15013.95
1990/05/31 16605.60 16477.81
1990/06/30 16839.56 16365.76
1990/07/31 16895.78 16313.39
1990/08/31 15521.74 14838.66
1990/09/30 14677.02 14116.01
1990/10/31 14786.72 14055.32
1990/11/30 15668.47 14963.29
1990/12/31 16184.36 15380.76
1991/01/31 16694.46 16051.37
1991/02/28 17913.03 17199.04
1991/03/31 18451.47 17615.25
1991/04/30 18427.39 17657.53
1991/05/31 19097.60 18420.34
1991/06/30 18169.66 17576.69
1991/07/31 19052.63 18395.76
1991/08/31 19740.65 18831.74
1991/09/30 19486.94 18517.25
1991/10/31 19990.06 18765.38
1991/11/30 19429.61 18009.13
1991/12/31 21455.90 20069.38
1992/01/31 20955.68 19696.09
1992/02/29 20909.15 19952.14
1992/03/31 20469.99 19563.07
1992/04/30 20829.17 20138.23
1992/05/31 20818.99 20236.90
1992/06/30 20362.90 19935.37
1992/07/31 21265.57 20750.73
1992/08/31 20925.97 20325.34
1992/09/30 20833.35 20565.18
1992/10/31 20723.09 20637.16
1992/11/30 21261.16 21340.88
1992/12/31 21324.19 21603.38
1993/01/31 21051.16 21784.85
1993/02/28 21321.20 22081.12
1993/03/31 21604.67 22547.03
1993/04/30 21325.68 22001.39
1993/05/31 21986.60 22591.03
1993/06/30 21802.66 22656.54
1993/07/31 21499.26 22565.92
1993/08/31 22296.25 23421.17
1993/09/30 22003.42 23240.82
1993/10/31 22786.83 23721.91
1993/11/30 22752.11 23496.55
1993/12/31 23040.97 23780.86
1994/01/31 23351.82 24589.41
1994/02/28 23128.26 23923.03
1994/03/31 22129.87 22879.99
1994/04/30 22139.06 23172.85
1994/05/31 22641.31 23552.89
1994/06/30 21903.48 22975.84
1994/07/31 22770.01 23729.45
1994/08/31 23890.76 24702.36
1994/09/30 23624.14 24097.15
1994/10/31 24251.95 24639.34
1994/11/30 23853.56 23741.97
1994/12/31 24390.53 24094.07
1995/01/31 25093.74 24718.82
1995/02/28 25955.84 25682.12
1995/03/31 26530.05 26440.00
1995/04/30 27511.71 27218.65
1995/05/31 28496.52 28306.58
1995/06/30 29221.52 28964.15
1995/07/31 29931.64 29924.60
1995/08/31 29845.66 29999.71
1995/09/30 31469.70 31265.70
1995/10/31 31864.56 31154.08
1995/11/30 32979.09 32521.74
1995/12/31 33813.53 33148.11
1996/01/31 35215.65 34276.47
1996/02/29 35532.78 34594.21
1996/03/31 35993.18 34927.36
1996/04/30 36413.33 35442.19
1996/05/31 37622.28 36356.24
1996/06/28 37998.37 36494.76
IMATRL PRASUN SHR__CHT 19960630 19960710 120852 R00000000000123
$10,000 OVER 10 YEARS: Let's say hypothetically that $10,000 was invested
in Fidelity Congress Street Fund on June 30, 1986. As the chart shows, by
June 30, 1996, the value of the investment would have grown to $37,998 - a
279.98% increase on the initial investment. For comparison, look at how the
S&P 500 did over the same period. With dividends and capital gains, if any,
reinvested, the same $10,000 investment would have grown to $36,495 - a
264.95% 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
A Message from Jonathan F. Weed, Portfolio Manager of Fidelity
Congress Street Fund
Dear Congress Street Fund Shareholder:
During the first six months of 1996, stocks maintained the strong
performance we saw throughout 1995. For the six months ended June 30, 1996,
the fund had a total return of 12.38%. That beat the 10.10% total return of
the Standard & Poor's 500 Index during the same period. The fund also
outperformed the growth and income funds average tracked by Lipper
Analytical Services, which posted a 9.24% return during the six-month
period. For the 12 months ended June 30, 1996, the fund had a total return
of 30.04%, while the S&P 500 returned 26.00%, and the growth and income
funds average returned 22.13%.
No one sector or type of stock proved to be a market leader over the past
six months. Instead, the market was characterized by rapid sector rotation,
as investors sought to take advantage of any area or stock that showed
above-average earnings growth. While the fund's exposure to different
sectors and types of stocks helped dictate performance, its gains were more
a result of how the individual stocks in the portfolio performed.
Although statistics through much of the period indicated
stronger-than-expected economic growth, many investors appeared uncertain
about the future of the economy. Cyclical stocks - those that rise and fall
with the economy - did not post the kind of returns one would expect given
the strength indicated by economic data. Instead, returns from cyclical
stocks depended largely on the success of individual companies. One of the
fund's top performers, General Electric (up 20%), came from this area, as
it increased revenue from international sales and benefited from the strong
performance of NBC - the TV network that the company owns - largely due to
strong advertising revenues from its successful prime time programming and
upcoming coverage of the Olympics. However, two of the fund's weakest
performers also were cyclical stocks. Weakening paper prices and flagging
demand hurt International Paper (down 3%), while falling chemical prices
and increasing raw material costs dampened the returns of Eastman Chemical
(down 3%).
Consumer nondurables and health stocks - which historically have sustained
steady earnings growth in many types of market environments - posted
generally good returns. The fund's overweighting in these stocks relative
to the S&P 500 proved helpful, with Coca-Cola (up 32%) the fund's top
performer. American Home Products (up 24%), Campbell Soup (up 18%), Johnson
& Johnson (up 15%) and Pharmacia & Upjohn (up 15%) also rode
the wave of investor interest in nondurables and health stocks. However, HJ
Heinz fell 8% because its acquisition of Weight Watchers led to an earnings
slowdown. Merck (down 2%) suffered from, among other things, concerns about
the strengthening dollar and fears that the company's development of new
products would be too slow to help future earnings.
The fund's technology stocks performed generally as well as those
technology stocks included in the S&P 500. Two technology stocks were among
those that posted some of the fund's strongest returns. While a strong
dollar hurt returns from exports for Hewlett-Packard (up 19%), the
company's price cuts and new products helped attract customers. Eastman
Kodak (up 16%) benefited from strong sales of new imaging technology and
demand for its new Advantix camera.
The fund's performance relative to the S&P 500 also was boosted by the fact
it had less invested in utility stocks than the index. This sector
generally performs in line with bonds, which had a tough six months due to
rising interest rates. Still, the fund had some exposure here. Potomac
Electric Power rose less than 1%, and Consolidated Edison of New York fell
9%.
Looking ahead, I'd sound a note of caution because stock prices have
reached very high levels. An important wild card is the economy which,
while strong at the end of the period, could slow if inflation
fears cause the Federal Reserve Board to raise short-term interest rates.
As always, it's difficult to predict the direction of the market. Over the
long term, however, stocks should remain one of the best ways to provide
excellent growth for investors.
Sincerely,
Jonathan F. Weed
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.
INVESTMENT CHANGES
TOP TEN STOCKS AS OF JUNE 30, 1996
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE STOCKS
6 MONTHS AGO
Hewlett-Packard Co. 5.6 5.0
Coca-Cola Co. (The) 5.4 4.3
General Electric Co. 5.0 4.4
Boeing Co. 4.6 4.3
Johnson & Johnson 4.3 5.5
United Technologies Corp. 4.2 3.6
Campbell Soup Co. 3.9 3.5
Pharmacia & Upjohn, Inc. 3.9 3.6
Eastman Kodak Co. 3.9 3.5
American Home Products Corp 3.8 4.1
TOP FIVE MARKET SECTORS AS OF JUNE 30, 1996
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE MARKET SECTORS
6 MONTHS AGO
Health 20.3 21.3
Nondurables 18.5 19.5
Technology 14.2 12.9
Energy 9.2 9.0
Basic Industries 6.5 6.8
ASSET ALLOCATION
AS OF JUNE 30, 1996 AS OF DECEMBER 31, 1995
Row: 1, Col: 1, Value: 5.3
Row: 1, Col: 2, Value: 44.7
Row: 1, Col: 3, Value: 50.0
Row: 1, Col: 1, Value: 6.3
Row: 1, Col: 2, Value: 43.7
Row: 1, Col: 3, Value: 50.0
Stocks 94.7%
Short-term
investments 5.3%
Stocks 93.7%
Short-term
investments 6.3%
INVESTMENTS JUNE 30, 1996 (UNAUDITED)
Showing Percentage of Total Value of Investment in Securities
COMMON STOCKS - 94.7%
SHARES VALUE (NOTE 1)
AEROSPACE & DEFENSE - 4.6%
Boeing Co. 45,654 $ 3,977,602
BASIC INDUSTRIES - 6.5%
CHEMICALS & PLASTICS - 0.8%
Eastman Chemical Co. 10,953 666,764
PAPER & FOREST PRODUCTS - 5.7%
International Paper Co. 80,198 2,957,301
Union Camp Corp. 40,000 1,950,000
4,907,301
TOTAL BASIC INDUSTRIES 5,574,065
CONGLOMERATES - 4.2%
United Technologies Corp. 31,500 3,622,500
ENERGY - 9.2%
OIL & GAS - 9.2%
Chevron Corp. 40,000 2,360,000
Exxon Corp. 33,000 2,866,875
Mobil Corp. 23,900 2,679,788
7,906,663
FINANCE - 2.2%
BANKS - 2.2%
Bankers Trust New York Corp. 24,962 1,844,068
HEALTH - 20.3%
DRUGS & PHARMACEUTICALS - 14.1%
American Home Products Corp. 55,002 3,306,995
Lilly (Eli) & Co. 37,368 2,428,920
Merck & Co., Inc. 46,886 3,030,008
Pharmacia & Upjohn, Inc. 75,763 3,361,983
12,127,906
MEDICAL EQUIPMENT & SUPPLIES - 6.2%
Guidant Corp. 34,526 1,700,406
Johnson & Johnson 74,054 3,665,673
5,366,079
TOTAL HEALTH 17,493,985
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
INDUSTRIAL MACHINERY & EQUIPMENT - 5.8%
ELECTRICAL EQUIPMENT - 5.0%
General Electric Co. 50,000 $ 4,325,000
POLLUTION CONTROL - 0.8%
WMX Technologies, Inc. 20,000 655,000
TOTAL INDUSTRIAL MACHINERY & EQUIPMENT 4,980,000
MEDIA & LEISURE - 2.5%
PUBLISHING - 2.5%
Knight-Ridder, Inc. 30,000 2,175,000
NONDURABLES - 18.5%
BEVERAGES - 8.7%
Anheuser-Busch Companies, Inc. 38,336 2,875,200
Coca-Cola Co. (The) 94,868 4,636,674
7,511,874
FOODS - 6.6%
Campbell Soup Co. 47,918 3,378,219
Earthgrains Co. 1,533 50,206
Heinz (H.J.) Co. 74,859 2,273,842
5,702,267
HOUSEHOLD PRODUCTS - 0.8%
Colgate-Palmolive Co. 7,733 655,372
TOBACCO - 2.4%
Philip Morris Companies, Inc. 20,000 2,080,000
TOTAL NONDURABLES 15,949,513
TECHNOLOGY - 14.2%
COMPUTERS & OFFICE EQUIPMENT - 6.6%
Hewlett-Packard Co. 48,550 4,836,794
International Business Machines Corp. 8,211 812,889
5,649,683
ELECTRONICS - 3.7%
Motorola, Inc. 51,200 3,219,200
PHOTOGRAPHIC EQUIPMENT - 3.9%
Eastman Kodak Co. 43,012 3,344,183
TOTAL TECHNOLOGY 12,213,066
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
TRANSPORTATION - 0.8%
RAILROADS - 0.8%
Union Pacific Corp. 9,660 $ 674,993
UTILITIES - 5.9%
ELECTRIC UTILITY - 2.1%
Consolidated Edison Co. of New York, Inc. 26,264 768,222
Potomac Electric Power Co. 40,000 1,060,000
1,828,222
TELEPHONE SERVICES - 3.8%
GTE Corp. 71,838 3,214,751
TOTAL UTILITIES 5,042,973
TOTAL COMMON STOCKS
(Cost $17,517,379) 81,454,428
REPURCHASE AGREEMENTS - 5.3%
MATURITY
AMOUNT
Investments in repurchase agreements
(U.S. Treasury obligations), in a joint
trading account at 5.46%, dated
6/28/96 due 7/1/96 $ 4,588,087 4,586,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $22,103,379) $ 86,040,428
INCOME TAX INFORMATION
At June 30, 1996, the aggregate cost of investment securities for income
tax purposes was $22,103,379. Net unrealized appreciation aggregated
$63,937,049, of which $64,176,098 related to appreciated investment
securities and $239,049 related to depreciated investment securities.
At December 31, 1995, the fund had a capital loss carryforward of
approximately $940,400 of which $940,000 and $400 will expire on December
31, 1999 and 2000, respectively.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
JUNE 30, 1996 (UNAUDITED)
ASSETS
Investment in securities, at value (including repurchase $ 86,040,428
agreements of $4,586,000) (cost $22,103,379) -
See accompanying schedule
Cash 960
Dividends receivable 173,414
TOTAL ASSETS 86,214,802
LIABILITIES
Payable for fund shares redeemed $ 7,619
Accrued management fee 97,427
Other payables and accrued expenses 28,784
TOTAL LIABILITIES 133,830
NET ASSETS $ 86,080,972
Net Assets consist of:
Paid in capital $ 18,799,137
Undistributed net investment income 15,853
Accumulated undistributed net realized gain (loss) 3,328,933
on investments
Net unrealized appreciation (depreciation) on 63,937,049
investments
NET ASSETS, for 368,145 shares outstanding $ 86,080,972
NET ASSET VALUE, offering price and redemption price per $233.82
share ($86,080,972 (divided by) 368,145 shares)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED)
INVESTMENT INCOME $ 956,784
Dividends
Interest 129,490
TOTAL INCOME 1,086,274
EXPENSES
Management fee $ 191,712
Transfer agent fees 39,268
Accounting fees and expenses 29,498
Non-interested trustees' compensation 151
Custodian fees and expenses 3,420
Registration fees 125
Audit 15,423
Legal 161
Miscellaneous 471
Total expenses before reductions 280,229
Expense reductions (984) 279,245
NET INVESTMENT INCOME 807,029
REALIZED AND UNREALIZED GAIN (LOSS) 4,269,304
Net realized gain (loss) on investment securities
Change in net unrealized appreciation (depreciation) on 4,768,075
investment securities
NET GAIN (LOSS) 9,037,379
NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ 9,844,408
FROM OPERATIONS
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR ENDED
ENDED DECEMBER 31,
JUNE 30, 1996 1995
(UNAUDITED)
INCREASE (DECREASE) IN NET ASSETS
Operations $ 807,029 $ 1,734,288
Net investment income
Net realized gain (loss) 4,269,304 928,813
Change in net unrealized appreciation (depreciation) 4,768,075 20,595,018
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 9,844,408 23,258,119
FROM OPERATIONS
DISTRIBUTIONS TO SHAREHOLDERS FROM (827,217) (1,753,544)
NET INVESTMENT INCOME
SHARE TRANSACTIONS 120,127 402,081
Reinvestment of distributions
Cost of shares redeemed (4,886,993) (1,382,987)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING (4,766,866) (980,906)
FROM SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) IN NET ASSETS 4,250,325 20,523,669
NET ASSETS
Beginning of period 81,830,647 61,306,978
End of period (including undistributed net investment $ 86,080,972 $ 81,830,647
income of $15,853 and $36,041, respectively)
OTHER INFORMATION
Shares
Issued in reinvestment of distributions 507 2,064
Redeemed (21,944) (7,905)
Net increase (decrease) (21,437) (5,841)
</TABLE>
FINANCIAL HIGHLIGHTS
SIX MONTHS YEARS ENDED DECEMBER 31,
ENDED
JUNE 30, 1996
(UNAUDITED) 1995 1994 1993 D 1992 C 1991
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SELECTED PER-SHARE DATA
Net asset value, $ 210.05 $ 155.04 $ 150.47 $ 142.93 $ 147.55 $ 114.22
beginning of period
Income from
Investment
Operations
Net investment 2.15 4.45 4.29 3.73 3.79 3.44
income
Net realized and 23.82 55.06 4.38 7.66 (4.76) 33.39
unrealized gain
(loss)
Total from 25.97 59.51 8.67 11.39 (.97) 36.83
investment
operations
Less Distributions (2.20) (4.50) (4.10) (3.80) (3.65) (3.50)
From net investment
income
In excess of net - - - (.05) - -
investment income
Total distributions (2.20) (4.50) (4.10) (3.85) (3.65) (3.50)
Net asset value, end $ 233.82 $ 210.05 $ 155.04 $ 150.47 $ 142.93 $ 147.55
of period
TOTAL RETURN B 12.38% 38.63% 5.86% 8.05% (.61) 32.57%
%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of $ 86,081 $ 81,831 $ 61,307 $ 64,440 $ 63,891 $ 68,716
period (000 omitted)
Ratio of expenses to .66% A .67% .60% .61% .62% .67%
average net assets
Ratio of net 1.91% A 2.42% 2.82% 2.52% 2.58% 2.63%
investment income
to average net
assets
Portfolio turnover rate 0% 0% 0% 0% 0% 0%
</TABLE>
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C AS OF JANUARY 1, 1992 THE FUND DISCONTINUED THE USE OF EQUALIZATION
ACCOUNTING.
D 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, NET INVESTMENT INCOME PER SHARE MAY REFLECT CERTAIN
RECLASSIFICATIONS RELATED TO BOOK TO TAX DIFFERENCES.
NOTES TO FINANCIAL STATEMENTS
For the period ended June 30, 1996 (Unaudited)
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 financial statements have been
prepared in conformity with generally accepted accounting principles which
permit management to make certain estimates and assumptions at the date of
the financial statements. 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 substantially 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, which may result in distribution
reclassifications, are primarily due to differing treatments for
redemptions in kind.
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital and may
affect the per-share allocation between net investment income and realized
and unrealized gain (loss). Undistributed net investment income and
accumulated undistributed net realized gain (loss) on investments may
include temporary book and tax basis differences which will reverse in a
1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
DISTRIBUTIONS TO SHAREHOLDERS - CONTINUED
subsequent period. Any taxable income or short-term gain remaining at
fiscal year end is distributed in the following year.
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.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission (the SEC), the fund, along with other
affiliated entities of Fidelity Management & Research Company (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 for U.S. Treasury or
Federal Agency obligations.
REPURCHASE AGREEMENTS. The underlying U.S. Treasury or Federal Agency
Securities are transferred to an account of the fund, or to the Joint
Trading Account, at a bank custodian. The securities are marked-to-market
daily and maintained at a value at least equal to the principal amount of
the repurchase agreement (including accrued interest). FMR, the fund's
investment adviser, is responsible for determining that the value of the
underlying securities remains in accordance with the market value
requirements stated above.
3. PURCHASES AND SALES OF INVESTMENTS.
Sales of securities, other than short-term securities, aggregated
$4,813,103, which includes 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 $21,061. For the period, the management fee
rate 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 account fees and asset-based fees that vary according to
account size and type of account. FSC pays for typesetting, printing and
mailing of all shareholder reports, except proxy statements. For the
period, the transfer agent fees were equivalent to an annualized rate of
.09% of average net assets.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
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.
5. EXPENSE REDUCTIONS.
The fund has entered into an arrangement with its transfer agent whereby
interest earned on uninvested cash balances was used to offset a portion of
the fund's expenses. During the period, the fund's transfer agent fees were
reduced by $984 under this arrangement.
6. BENEFICIAL INTEREST.
At the end of the period, one shareholder was record owner of approximately
12% of the total outstanding shares of the fund.
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
950 Northgate Drive
San Rafael, CA
1400 Civic Drive
Walnut Creek, CA
6300 Canoga Avenue
Woodland Hills, CA
COLORADO
1625 Broadway
Denver, CO
CONNECTICUT
265 Church Street
New Haven, CT
300 Atlantic Street
Stamford, CT
29 South Main Street
West Hartford, 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
7401 Wisconsin Avenue
Bethesda, MD
1 West Pennsylvania Ave.
Towson, MD
MASSACHUSETTS
470 Boylston Street
Boston, MA
21 Congress Street
Boston, MA
25 State Street
Boston, MA
300 Granite Street
Braintree, MA
44 Mall Road
Burlington, MA
416 Belmont Street
Worcester, MA
MICHIGAN
280 North Woodward Ave.
Birmingham, MI
29155 Northwestern Hwy.
Southfield, MI
MINNESOTA
7600 France Avenue South
Edina, MN
MISSOURI
700 West 47th Street
Kansas City, MO
8885 Ladue Road
Ladue, MO
200 North Broadway
St. Louis, MO
NEW JERSEY
56 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
1271 Avenue of the
Americas
New York, NY
71 Broadway
New York, NY
350 Park Avenue
New York, NY
10 Bank Street
White Plains, NY
NORTH CAROLINA
4611 Sharon Road
Charlotte, NC
2200 West Main Street
Durham, NC
OHIO
600 Vine Street
Cincinnati, OH
28699 Chagrin Boulevard
Woodmere Village, OH
1903 East Ninth Street
Cleveland, 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
2701 Drexel Drive
Houston, TX
1010 Lamar Street
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
511 Pine Street
Seattle, WA
WASHINGTON, DC
1775 K Street, N.W.
Washington, DC
WISCONSIN
595 North Barker Road
Brookfield, 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 660602
Dallas, TX 75266-0602
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions - CP6I
400 East Las Colinas Blvd.
Irving, TX 75309-5517
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
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions - CP6R
400 East Las Colinas Blvd.
Irving, TX 75309-5517
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
William J. Hayes, Vice President
Arthur S. Loring, Secretary
Kenneth A. Rathgeber, Treasurer
Robert H. Morrison, Manager,
Security Transactions
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
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 *
ADVISORY BOARD
William O. McCoy
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'S GROWTH AND INCOME FUNDS
Balanced Fund
Congress Street Fund
Convertible Securities Fund
Equity-Income Fund
Equity-Income II Fund
Exchange Fund
Fidelity Fund
Global Balanced Fund
Growth & Income Portfolio
Market Index Fund
Puritan(registered trademark) 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
