(2_FIDELITY_LOGOS)FIDELITY
CONGRESS STREET
FUND
SEMIANNUAL REPORT
JUNE 30, 1997
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.
To reduce expenses and demonstrate respect for our environment, we have
initiated a project through which we will begin eliminating duplicate
copies of most financial reports and prospectuses to most households, even
if they have more than one account in the fund. If additional copies of
financial reports, prospectuses or historical account information are
needed, please call 1-800-544-6666.
PRESIDENT'S MESSAGE
(photo_of_Edward_C_Johnson_3d)
DEAR SHAREHOLDER:
Through the first six months of 1997, stock and bond markets experienced
the kind of short-term volatility that can affect them periodically. The
stock market rebounded strongly from its early spring correction to
continue on its record-setting pace, as seen by the roughly 20%
year-to-date gain by the Standard & Poor's 500 Index. The bond market
posted moderate returns over the first half of the year, as positive news
on the inflation front helped soften the effects of a hike in short-term
interest rates by the Federal Reserve Board in late March.
While it's impossible to predict the future direction of the markets with
any degree of certainty, there are certain basic principles that can help
investors plan for their future needs.
First, investors are encouraged to take a long-term view of their
portfolios. If you can afford to leave your money invested through the
inevitable up and down cycles of the financial markets, you will greatly
reduce your vulnerability to any single decline. We know from experience,
for example, that stock prices have gone up over longer periods of time,
have significantly outperformed other types of investments and have stayed
ahead of inflation.
Second, you can further manage your investing risk through diversification.
A stock mutual fund, for instance, is already diversified, because it
invests in many different companies. You can increase your diversification
further by investing in a number of different stock funds, or in such other
investment categories 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, it's important to
remember that there is no assurance that a money market fund will achieve
its goal of maintaining a stable net asset value of $1.00 per share, and
that these types of funds are neither insured nor guaranteed by any agency
of the U.S. government.
Finally, no matter what your time horizon or portfolio diversity, it makes
good sense to follow a regular investment plan, investing a certain amount
of money in a fund at the same time each month or quarter and periodically
reviewing your overall portfolio. By doing so, you won't get caught up in
the excitement of a rapidly rising market, nor will you buy all your shares
at market highs. While this strategy - known as dollar cost averaging -
won't assure a profit or protect you from a loss in a declining market, it
should help you lower the average cost of your purchases.
If you have questions, please call us at 1-800-544-8888. We are available
24 hours a day, seven days a week to provide you 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. Total return
reflects the change in the value of an investment, assuming reinvestment of
the fund's dividend income and capital gains (the profits the fund earned
upon the sale of securities that have grown in value).
CUMULATIVE TOTAL RETURNS
PERIODS ENDED JUNE 30, 1997 PAST 6 PAST 1 PAST 5 PAST 10
MONTHS YEAR YEARS YEARS
Fidelity Congress Street 18.16% 28.62% 140.01% 295.67%
S&P 500(registered trademark) 20.61% 34.70% 146.59% 292.69%
Growth & Income Funds 15.52% 28.07% 122.51% 232.50%
Average
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, six months, one year, five years or 10
years. For example, if you had 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 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 mutual funds with similar objectives tracked by Lipper
Analytical Services, Inc. The past six months average represents a peer
group of 626 mutual funds. These benchmarks include reinvested dividends
and capital gains, if any, and exclude the effect of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JUNE 30, 1997 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
Fidelity Congress Street 28.62% 19.14% 14.74%
S&P 500 34.70% 19.78% 14.64%
Growth & Income Funds Average 28.07% 17.25% 12.67%
AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and show you
what would have happened if the fund had performed at a constant rate each
year. (Note: Lipper calculates average annual total returns by annualizing
each fund's total return, then taking the arithmetic average. This may
produce a slightly different figure than that obtained by averaging the
cumulative total returns and annualizing the result.)
$10,000 OVER 10 YEARS
1987/06/30 10000.00 10000.00
1987/07/31 10503.27 10507.00
1987/08/31 10945.09 10898.91
1987/09/30 10759.78 10660.22
1987/10/31 8556.57 8364.01
1987/11/30 7785.33 7674.82
1987/12/31 8453.35 8258.87
1988/01/31 8610.83 8606.57
1988/02/29 8997.94 9007.64
1988/03/31 8634.20 8729.30
1988/04/30 8678.07 8826.20
1988/05/31 8783.12 8902.98
1988/06/30 9205.39 9311.63
1988/07/31 9090.04 9276.25
1988/08/31 8915.98 8960.85
1988/09/30 9344.43 9342.59
1988/10/31 9542.17 9602.31
1988/11/30 9405.19 9465.00
1988/12/31 9510.16 9630.63
1989/01/31 10129.54 10335.60
1989/02/28 9885.79 10078.24
1989/03/31 10083.11 10313.06
1989/04/30 10698.27 10848.31
1989/05/31 11119.28 11287.67
1989/06/30 10980.23 11223.33
1989/07/31 12140.54 12236.79
1989/08/31 12146.95 12476.64
1989/09/30 12096.73 12425.48
1989/10/31 12098.87 12137.21
1989/11/30 12417.26 12384.81
1989/12/31 12773.63 12682.05
1990/01/31 11764.73 11831.08
1990/02/28 11930.32 11983.70
1990/03/31 12413.94 12301.27
1990/04/30 12208.87 11993.74
1990/05/31 13443.68 13163.13
1990/06/30 13633.09 13073.62
1990/07/31 13678.61 13031.78
1990/08/31 12566.20 11853.71
1990/09/30 11882.32 11276.43
1990/10/31 11971.14 11227.94
1990/11/30 12684.99 11953.27
1990/12/31 13102.65 12286.77
1991/01/31 13515.62 12822.47
1991/02/28 14502.16 13739.28
1991/03/31 14938.08 14071.77
1991/04/30 14918.58 14105.54
1991/05/31 15461.17 14714.90
1991/06/30 14709.92 14040.96
1991/07/31 15424.76 14695.26
1991/08/31 15981.78 15043.54
1991/09/30 15776.38 14792.31
1991/10/31 16183.70 14990.53
1991/11/30 15729.96 14386.41
1991/12/31 17370.43 16032.22
1992/01/31 16965.45 15734.02
1992/02/29 16927.78 15938.56
1992/03/31 16572.25 15627.76
1992/04/30 16863.03 16087.22
1992/05/31 16854.79 16166.04
1992/06/30 16485.54 15925.17
1992/07/31 17216.33 16576.51
1992/08/31 16941.39 16236.69
1992/09/30 16866.41 16428.28
1992/10/31 16777.15 16485.78
1992/11/30 17212.76 17047.95
1992/12/31 17263.79 17257.64
1993/01/31 17042.75 17402.60
1993/02/28 17261.37 17639.28
1993/03/31 17490.86 18011.46
1993/04/30 17265.00 17575.59
1993/05/31 17800.07 18046.61
1993/06/30 17651.15 18098.95
1993/07/31 17405.52 18026.55
1993/08/31 18050.76 18709.76
1993/09/30 17813.68 18565.69
1993/10/31 18447.92 18950.00
1993/11/30 18419.82 18769.98
1993/12/31 18653.68 18997.10
1994/01/31 18905.33 19643.00
1994/02/28 18724.34 19110.67
1994/03/31 17916.06 18277.45
1994/04/30 17923.50 18511.40
1994/05/31 18330.12 18814.98
1994/06/30 17732.78 18354.02
1994/07/31 18434.31 18956.03
1994/08/31 19341.66 19733.23
1994/09/30 19125.80 19249.76
1994/10/31 19634.07 19682.88
1994/11/30 19311.54 18966.03
1994/12/31 19746.26 19247.30
1995/01/31 20315.57 19746.38
1995/02/28 21013.52 20515.90
1995/03/31 21478.39 21121.32
1995/04/30 22273.13 21743.34
1995/05/31 23070.42 22612.42
1995/06/30 23657.37 23137.71
1995/07/31 24232.27 23904.96
1995/08/31 24162.66 23964.96
1995/09/30 25477.46 24976.28
1995/10/31 25797.14 24887.12
1995/11/30 26699.45 25979.66
1995/12/31 27375.00 26480.03
1996/01/31 28510.14 27381.41
1996/02/29 28766.88 27635.23
1996/03/31 29139.61 27901.36
1996/04/30 29479.76 28312.63
1996/05/31 30458.51 29042.81
1996/06/30 30762.99 29153.46
1996/07/31 29588.10 27865.46
1996/08/31 29939.38 28453.15
1996/09/30 31502.40 30054.49
1996/10/31 31727.38 30883.39
1996/11/30 33995.59 33217.87
1996/12/31 33485.95 32559.82
1997/01/31 35285.48 34594.16
1997/02/28 35843.27 34865.38
1997/03/31 34701.13 33432.76
1997/04/30 36142.09 35428.69
1997/05/31 37976.15 37585.59
1997/06/30 39567.31 39269.43
$10,000 OVER 10 YEARS: Let's say hypothetically that $10,000 was invested
in Fidelity Congress Street Fund on June 30, 1987. As the chart shows, by
June 30, 1997, the value of the investment would have grown to $39,567 - a
295.67% 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 $39,269 - a
292.69% 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
long-term growth and
short-term volatility. 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
NOTE TO SHAREHOLDERS:
Timothy E. Heffernan became Portfolio Manager of Fidelity Congress Street
Fund on June 1, 1997.
Q. HOW DID THE FUND PERFORM, TIM?
A. For the six months that ended June 30, 1997, the fund had a total return
of 18.16%. The fund underperformed the 20.61% return of the Standard &
Poor's 500 Index, but beat the growth and income funds average return of
15.52%, as tracked by Lipper Analytical Services, during the period. For
the 12 months that ended June 30, 1997, the fund had a total return of
28.62%, underperforming the return of 34.70% posted by the S&P 500. The
fund slightly outperformed the growth and income funds average return of
28.07%.
Q. WHAT MARKET FACTORS HELPED THE FUND'S PERFORMANCE DURING THE FIRST HALF
OF THE YEAR?
A. The market favored large-cap stocks that have shown steady earnings
growth - the type of stock found in this fund. Despite stumbling a bit in
the middle of the period due to some investor uncertainty and inflation
concerns, stocks continued on a swift road upward in the first half of
1997. At the beginning of January, stock prices soared after reports of
solid corporate earnings for 1996. At the end of February, Federal Reserve
Board Chairman Alan Greenspan said he felt stock prices were too high. He
followed up on this comment by pushing the federal funds rate - the rate
banks charge each other for overnight loans - up 25 basis points to 5.50%
at the end of March. The market skidded a bit through these months on the
rate concerns, but picked up the pace again in late April. Stocks in the
consumer goods and health care industries performed very well, which helped
the fund. Consumer stocks did well as investors sought out non-cyclical
stocks with solid earnings growth. As far as health care stocks, investors
looked to them as a defensive play, determining that the demand for health
services was fairly constant. The fund was overweighted in both health care
and consumer nondurables relative to the S&P 500 index during the period.
Although these two sectors performed extremely well in the period overall,
the fund's investments in health care and nondurables slightly
underperformed the stocks within these sectors in the index.
Q. WHAT STOCKS CONTRIBUTED MOST TO THE FUND'S PERFORMANCE?
A. The fund's health care holdings, including Merck, American Home Products
and Eli Lilly, helped the fund's performance. Investors bought health care
stocks as a defensive move, based on the thought that the demand for health
services did not rely heavily on the strength of the economy. Investors
were not only seeking steady earnings growth from these companies, but they
also looked to reap the rewards of efficiency brought by consolidation in
the health care industry. Nondurables, such as Coca-Cola and Campbell Soup,
also performed well as investors dove into consumer goods stocks during the
period. Demand for the kinds of products that these companies offer tends
to remain steady in almost any environment, while demand for such durable
products as automobiles are more dependent on the health of the overall
economy.
Q. WHAT WERE SOME OF THE OTHER STOCKS THAT HELPED PERFORMANCE?
A. General Electric, a company that has shown consistently strong earnings
growth, was a great performer during the period. The stock's value
increased considerably during the first half of 1997. Guidant Corp. was
another strong performer. In late April, the company's stock received a
jolt after the FDA approved the marketing of two new pacemaker components.
Also late in the period, favorable studies were released about the
company's pacemaker defibrillator products. United Technologies, parent
company of aircraft engine maker Pratt & Whitney, performed well on the
strength of new aerospace and defense orders. Also, Motorola picked up
steam at the end of the period after receiving several new international
networking contracts.
Q. WERE THERE ANY AREAS OF THE FUND THAT PROVED TO BE WEAK PERFORMERS IN
THE FIRST HALF OF 1997?
A. The fund's investments in the technology sector underperformed the
technology stocks included in the index. In particular, the fund held no
shares in some of the strongest technology stocks in the S&P 500 including
Microsoft and Lucent Technologies. Additionally, the fund was underweighted
in the finance sector, which proved to be another strong performer for the
index.
Q. WHAT'S YOUR OUTLOOK FOR THE FUND AS WE MOVE INTO THE SECOND HALF OF THE
YEAR?
A. At the end of June, stocks continued their march upward, as the Dow
Jones Industrial Average approached 8000. With the market doing so well for
so long, investors are confident, but cautious - suspecting that any shock
to the market could turn the bulls into bears. While a variety of economic
factors indicate a path of moderate growth, the major consumer fundamentals
- - job growth and income gains - remain supportive of a stronger economy. If
consumer spending picks up, inflation may again enter the picture leading
to higher interest rates. With businesses running out of ways to reduce
costs, further margin improvement is limited. Higher interest rates could
ultimately lead to disappointing earnings and a downturn in the market.
Since valuations of large-cap stocks are already high, we will need to see
consistent earnings growth to sustain even higher stock prices.
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, 1997
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE STOCKS
6 MONTHS AGO
General Electric Co. 5.7 5.4
Campbell Soup Co. 5.3 4.2
Merck & Co., Inc. 5.2 4.0
United Technologies Corp. 5.1 4.5
Coca-Cola Co. (The) 5.0 5.4
American Home Products Corp. 4.6 3.5
Exxon Corp. 4.5 3.5
Johnson & Johnson 4.5 3.4
Motorola, Inc. 4.3 3.4
Boeing Co. 4.2 5.3
TOP FIVE MARKET SECTORS AS OF JUNE 30, 1997
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE MARKET
SECTORS
6 MONTHS AGO
Health 20.6 19.2
Nondurables 20.1 19.1
Technology 13.5 13.6
Energy 10.1 9.8
Aerospace & Defense 9.4 5.3
ASSET ALLOCATION (% OF FUND'S INVESTMENTS)
AS OF JUNE 30, 1997 AS OF DECEMBER 31, 1996
Row: 1, Col: 1, Value: 3.8
Row: 1, Col: 2, Value: 46.2
Row: 1, Col: 3, Value: 50.0
Row: 1, Col: 1, Value: 5.6
Row: 1, Col: 2, Value: 44.4
Row: 1, Col: 3, Value: 50.0
Stocks 96.2%
Short-term
investments 3.8%
Stocks 94.4%
Short-term
investments 5.6%
INVESTMENTS JUNE 30, 1997 (UNAUDITED)
Showing Percentage of Total Value of Investment in Securities
COMMON STOCKS - 96.2%
SHARES VALUE (NOTE 1)
AEROSPACE & DEFENSE - 9.4%
Boeing Co. 72,108 $ 3,826,231
United Technologies Corp. 56,100 4,656,300
8,482,531
BASIC INDUSTRIES - 6.3%
CHEMICALS & PLASTICS - 0.6%
Eastman Chemical Co. 8,793 558,356
PAPER & FOREST PRODUCTS - 5.7%
International Paper Co. 65,798 3,195,315
Union Camp Corp. 39,900 1,995,000
5,190,315
TOTAL BASIC INDUSTRIES 5,748,671
ENERGY - 10.1%
OIL & GAS - 10.1%
Chevron Corp. 24,800 1,833,650
Exxon Corp. 66,000 4,059,000
Mobil Corp. 43,800 3,060,525
Union Pacific Resources Group, Inc. 8,181 203,502
9,156,677
FINANCE - 0.4%
BANKS - 0.4%
Citicorp 3,000 361,688
HEALTH - 20.6%
DRUGS & PHARMACEUTICALS - 12.9%
American Home Products Corp. 55,002 4,207,653
Lilly (Eli) & Co. 9,118 996,711
Merck & Co., Inc. 45,886 4,749,201
Pharmacia & Upjohn, Inc. 48,843 1,697,294
11,650,859
MEDICAL EQUIPMENT & SUPPLIES - 7.7%
Guidant Corp. 34,526 2,934,710
Johnson & Johnson 62,654 4,033,351
6,968,061
TOTAL HEALTH 18,618,920
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
INDUSTRIAL MACHINERY & EQUIPMENT - 6.4%
ELECTRICAL EQUIPMENT - 5.7%
General Electric Co. 79,400 $ 5,190,775
POLLUTION CONTROL - 0.7%
Waste Management, Inc. 20,000 642,500
TOTAL INDUSTRIAL MACHINERY & EQUIPMENT 5,833,275
MEDIA & LEISURE - 3.2%
PUBLISHING - 3.2%
Knight-Ridder, Inc. 60,000 2,943,750
NONDURABLES - 20.1%
BEVERAGES - 8.6%
Anheuser-Busch Companies, Inc. 76,672 3,215,432
Coca-Cola Co. (The) 67,698 4,569,615
7,785,047
FOODS - 7.5%
Campbell Soup Co. 95,836 4,791,800
Heinz (H.J.) Co. 42,859 1,976,871
6,768,671
HOUSEHOLD PRODUCTS - 1.1%
Colgate-Palmolive Co. 15,466 1,009,157
TOBACCO - 2.9%
Philip Morris Companies, Inc. 60,000 2,662,500
TOTAL NONDURABLES 18,225,375
TECHNOLOGY - 13.5%
COMPUTERS & OFFICE EQUIPMENT - 5.8%
Hewlett-Packard Co. 67,200 3,763,200
International Business Machines Corp. 16,422 1,481,059
5,244,259
ELECTRONICS - 4.3%
Motorola, Inc. 51,200 3,891,200
PHOTOGRAPHIC EQUIPMENT - 3.4%
Eastman Kodak Co. 39,912 3,063,246
TOTAL TECHNOLOGY 12,198,705
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
TRANSPORTATION - 0.8%
RAILROADS - 0.8%
Union Pacific Corp. 9,660 $ 681,030
UTILITIES - 5.4%
ELECTRIC UTILITY - 1.9%
Consolidated Edison Co. of New York, Inc. 26,264 773,147
Potomac Electric Power Co. 40,000 925,000
1,698,147
TELEPHONE SERVICES - 3.5%
GTE Corp. 71,838 3,151,892
TOTAL UTILITIES 4,850,039
TOTAL COMMON STOCKS
(Cost $15,138,935) 87,100,661
CASH EQUIVALENTS - 3.8%
MATURITY
AMOUNT
Investments in repurchase agreements
(U.S. Treasury obligations) in a joint
trading account at 5.93%, dated
6/30/97 due 7/1/97 $ 3,396,559 3,396,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $18,534,935) $ 90,496,661
INCOME TAX INFORMATION
At June 30, 1997, the aggregate cost of investment securities for income
tax purposes was $18,534,935. Net unrealized appreciation aggregated
$71,961,726, all of which related to appreciated investment securities.
At December 31, 1996, 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, 1997 (UNAUDITED)
ASSETS
Investment in securities, at value (including repurchase $ 90,496,661
agreements of $3,396,000) (cost $18,534,935) -
See accompanying schedule
Cash 621
Dividends receivable 145,120
TOTAL ASSETS 90,642,402
LIABILITIES
Payable for fund shares redeemed $ 2,354
Accrued management fee 96,464
Other payables and accrued expenses 33,603
TOTAL LIABILITIES 132,421
NET ASSETS $ 90,509,981
Net Assets consist of:
Paid in capital $ 8,561,077
Distributions in excess of net investment income (12,579)
Accumulated undistributed net realized gain (loss) 9,999,757
on investments
Net unrealized appreciation (depreciation) on 71,961,726
investments
NET ASSETS, for 306,030 shares outstanding $ 90,509,981
NET ASSET VALUE, offering price and redemption price per $295.76
share ($90,509,981 (divided by) 306,030 shares)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED JUNE 30, 1997 (UNAUDITED)
INVESTMENT INCOME $ 851,581
Dividends
Interest 97,055
TOTAL INCOME 948,636
EXPENSES
Management fee $ 190,587
Transfer agent fees 38,076
Accounting fees and expenses 30,343
Non-interested trustees' compensation 189
Custodian fees and expenses 4,843
Registration fees 125
Audit 16,386
Legal 120
Miscellaneous 300
Total expenses before reductions 280,969
Expense reductions (349) 280,620
NET INVESTMENT INCOME 668,016
REALIZED AND UNREALIZED GAIN (LOSS) 10,940,091
Net realized gain (loss) on investment securities
Change in net unrealized appreciation (depreciation) on 2,524,512
investment securities
NET GAIN (LOSS) 13,464,603
NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ 14,132,619
FROM OPERATIONS
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR ENDED
ENDED JUNE 30, DECEMBER 31,
1997 1996
(UNAUDITED)
INCREASE (DECREASE) IN NET ASSETS
Operations $ 668,016 $ 1,651,802
Net investment income
Net realized gain (loss) 10,940,091 5,440,605
Change in net unrealized appreciation (depreciation) 2,524,512 10,268,240
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 14,132,619 17,360,647
FROM OPERATIONS
Distributions to shareholders from net investment income (672,137) (1,696,301)
Share transactions 160,589 286,262
Reinvestment of distributions
Cost of shares redeemed (14,457,414) (6,434,931)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING (14,296,825) (6,148,669)
FROM SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) IN NET ASSETS (836,343) 9,515,677
NET ASSETS
Beginning of period 91,346,324 81,830,647
End of period (including distributions in excess $ 90,509,981 $ 91,346,324
of net investment income of $12,579 and
$8,458, respectively)
OTHER INFORMATION
Shares
Issued in reinvestment of distributions 536 1,161
Redeemed (56,783) (28,466)
Net increase (decrease) (56,247) (27,305)
</TABLE>
FINANCIAL HIGHLIGHTS
SIX MONTHS YEARS ENDED DECEMBER 31,
ENDED JUNE 30,
1997
(UNAUDITED) 1996 1995 1994 1993 E 1992
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SELECTED PER-SHARE DATA
Net asset value, $ 252.14 $ 210.05 $ 155.04 $ 150.47 $ 142.93 $ 147.55
beginning of period
Income from Investment
Operations
Net investment income 2.16 D 4.48 4.45 4.29 3.73 3.79
Net realized and 43.66 42.21 55.06 4.38 7.66 (4.76)
unrealized gain
(loss)
Total from investment 45.82 46.69 59.51 8.67 11.39 (.97)
operations
Less Distributions
From net investment (2.20) (4.60) (4.50) (4.10) (3.80) (3.65)
income
In excess of net - - - - (.05) -
investment income
Total distributions (2.20) (4.60) (4.50) (4.10) (3.85) (3.65)
Net asset value, $ 295.76 $ 252.14 $ 210.05 $ 155.04 $ 150.47 $ 142.93
end of period
TOTAL RETURN B, C 18.16% 22.32% 38.63 5.86 8.05 (.61)
% % % %
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 90,510 $ 91,346 $ 81,831 $ 61,307 $ 64,440 $ 63,891
(000 omitted)
Ratio of expenses to .67% .67% .67 .60 .61 .62%
average net assets A % % %
Ratio of expenses to .67% .66% .67 .60 .61 .62%
average net assets A F % % %
after expense
reductions
Ratio of net investment 1.60% 1.92% 2.42 2.82 2.52 2.58%
income to average A % % %
net assets
Portfolio turnover rate 0% 0% 0 0 0 0%
% % %
Average commission $ .0000 $ .0320
rate G
</TABLE>
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN.
D NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.
E EFFECTIVE JANUARY1, 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.
F FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES
WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES.
G FOR FISCAL YEARS BEGINNING ON OR AFTER SEPTEMBER 1, 1995, A FUND IS
REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR SECURITY
TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY FROM PERIOD
TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF TRADES EXECUTED IN
VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE STRUCTURES MAY
DIFFER.
NOTES TO FINANCIAL STATEMENTS
For the period ended June 30, 1997 (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 with remaining maturities of sixty days or less for which
quotations are not readily available 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.
Non-cash dividends included in dividend income, if any, are recorded at the
fair market value of the securities received. 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.
Distributions in excess of net investment income and accumulated
undistributed net realized gain (loss) on investments may include temporary
book and tax basis differences that will reverse in a subsequent period.
Any taxable income or gain remaining at fiscal year end is distributed in
the following year.
1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
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 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 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
$13,251,304, 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 $20,978. 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 Company, Inc. (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.
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 arrangements with its custodian and transfer
agent whereby credits realized as a result of uninvested cash balances were
used to reduce a portion of the fund's expenses. During the period, the
fund's custodian and transfer agent fees were reduced by $10 and $339,
respectively, under these arrangements.
MANAGING YOUR INVESTMENTS
Fidelity offers several ways to conveniently manage your personal
investments via your telephone or PC. You can access your account
information, conduct trades and research your investments 24 hours a day.
BY PHONE
Fidelity TouchTone Xpressprovides a single toll-free number to access
account balances, positions, quotes and trading. It's easy to navigate the
service, and on your first call, the system will help you create a personal
identification number (PIN) for security.
SM
(PHONE_GRAPHIC)TOUCHTONE XPRESS
1-800-544-5555
PRESS
For mutual fund and brokerage trading.
1
For quotes.*
2
For account balances and holdings.
3
To review orders and mutual
fund activity.
4
To change your PIN.
5
To speak to a Fidelity representative.
*
0
BY PC
Fidelity's Web site on the Internet provides a wide range of information,
including daily financial news, fund performance, interactive planning
tools and news about Fidelity products and services.
(PHONE_GRAPHIC)FIDELITY'S WEB SITE
WWW.FIDELITY.COM
If you are not currently on the Internet, call Fidelity at 1-800-544-7272
for significant savings on Web access from internetMCI.
SM
(PHONE_GRAPHIC)
FIDELITY ON-LINE XPRESS+
TM
Fidelity On-line Xpress+ software for Windows combines comprehensive
portfolio management capabilities, securities trading and access to
research and analysis tools . . . all on your desktop. Call Fidelity at
1-800-544-7272 or visit our Web site for more information on how to manage
your investments via your PC.
* 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
815 East Birch Street
Brea, CA
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
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
1907 West State Road 434
Longwood, FL
4001 Tamiami Trail, North
Naples, FL
2401 PGA Boulevard
Palm Beach Gardens, FL
8065 Beneva Road
Sarasota, FL
1502 N. Westshore Blvd.
Tampa, 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 Street
Chicago, IL
1415 West 22nd Street
Oak Brook, IL
1700 East Golf Road
Schaumburg, IL
3232 Lake Avenue
Wilmette, IL
INDIANA
4729 East 82nd Street
Indianapolis, IN
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
155 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
150 Essex Street
Millburn, NJ
56 South Street
Morristown, NJ
501 Route 17, South
Paramus, NJ
NEW YORK
1055 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
6150 Poplar Road
Memphis, TN
TEXAS
10000 Research Boulevard
Austin, TX
7001 Preston Road
Dallas, TX
1155 Dairy Ashford Street
Houston, TX
2701 Drexel Drive
Houston, TX
400 East Las Colinas Blvd.
Irving, TX
14100 San Pedro
San Antonio, TX
19740 IH 45 North
Spring, 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
1900 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
2300 Litton Lane - KH1A
Hebron, KY 41048
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
Robert C. Pozen, Senior Vice President
William J. Hayes, Vice President
Richard A. Spillane, Jr., Vice President
Arthur S. Loring, Secretary
Richard A. Silver, Treasurer
Robert H. Morrison, Manager,
Security Transactions
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
BOARD OF TRUSTEES
Ralph F. Cox *
Phyllis Burke Davis *
Robert M. Gates *
Edward C. Johnson 3d
E. Bradley Jones *
Donald J. Kirk *
Peter S. Lynch
Marvin L. Mann *
William O. McCoy *
Gerald C. McDonough *
Robert C. Pozen
Thomas R. Williams *
ADVISORY BOARD
J. Gary Burkhead
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
* INDEPENDENT TRUSTEES
TRANSFER AND SHAREHOLDER
SERVICING AGENT
Fidelity Service Company, Inc.
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
Spartan Market Index Fund
Puritan(registered trademark) Fund
Real Estate Investment Portfolio
Utilities Fund
THE FIDELITY TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Exchanges/Redemptions 1-800-544-7777
Account Assistance 1-800-544-6666
Product Information 1-800-544-8888
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(8 a.m. - 9 p.m.)
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(9 a.m. - 9 p.m. Eastern time)
(registered trademark)
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