(2_FIDELITY_LOGOS)
FIDELITY(REGISTERED TRADEMARK)
CONGRESS STREET
FUND
ANNUAL REPORT
DECEMBER 31, 1999
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 13 Statements of assets and
liabilities, operations, and
changes in net assets, as
well as financial highlights.
NOTES 17 Footnotes to the financial
statements.
REPORT OF INDEPENDENT 20 The auditors' opinion.
ACCOUNTANTS
Standard & Poor's, S&P and S&P 500 are registered service marks of The
McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity
Distributors Corporation.
Other third party marks appearing herein are the property of their
respective owners.
All other marks appearing herein are registered or unregistered
trademarks or service marks of FMR Corp. or an affiliated company.
This report is printed on recycled paper using soy-based inks.
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 1-800-544-6666 FOR A FREE PROSPECTUS. READ IT CAREFULLY
BEFORE YOU INVEST OR SEND MONEY.
PRESIDENT'S MESSAGE
(photo_of_Edward_C_Johnson_3d)
DEAR SHAREHOLDER:
U.S. equity indexes once again dominated the financial headlines, led
by the NASDAQ's 15 record highs in 21 November sessions. Meanwhile,
the Standard & Poor's 500 SM posted two record closings and the Dow
Jones Industrial Average crept above the 11,000 mark for the first
time since mid-September. However, another Federal Reserve Board
interest rate hike and continued inflation concerns drove down the
price of the benchmark 30-year Treasury.
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 an investment in a money market fund is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other
government agency. Although money market funds seek to preserve the
value of your investment at $1.00 per share, it is possible to lose
money by investing in these types of funds.
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. Of course, you should
consider your financial ability to continue your purchases through
periods of low price levels before undertaking such a strategy.
If you have questions, please call us at 1-800-544-6666, or visit our
web site at www.fidelity.com. 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 earned upon the sale of securities that
have grown in value).
CUMULATIVE TOTAL RETURNS
PERIODS ENDED DECEMBER 31, 1999 PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
FIDELITY CONGRESS STREET 11.05% 188.32% 345.70%
S&P 500 21.04% 251.12% 432.89%
Growth & Income Funds Average 13.76% 167.25% 293.90%
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, one year, five years or 10
years. For example, if you had invested $1,000 in a fund that had a 5%
return 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 SM - a market capitalization-weighted
index of common stocks. To measure how the fund's performance stacked
up against its peers, you can compare it to the growth & income funds
average, which reflects the performance of mutual funds with similar
objectives tracked by Lipper Inc. The past one year average represents
a peer group of 913 mutual funds. These benchmarks include reinvested
dividends and capital gains, if any, and exclude the effect of sales
charges. Lipper has created new comparison categories that group funds
according to portfolio characteristics and capitalization, as well as
by capitalization only. These averages are listed on page 5 of this
report.*
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED DECEMBER 31, 1999 PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
FIDELITY CONGRESS STREET 11.05% 23.59% 16.12%
S&P 500 21.04% 28.56% 18.21%
Growth & Income Funds Average 13.76% 21.34% 14.42%
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 an
arithmetic average. This may produce a different figure than that
obtained by averaging the cumulative total returns and annualizing the
result.)
$10,000 OVER 10 YEARS
Congress Street S&P 500
00024 SP001
1989/12/31 10000.00 10000.00
1990/01/31 9210.16 9329.00
1990/02/28 9339.80 9449.34
1990/03/31 9718.41 9699.75
1990/04/30 9557.86 9457.26
1990/05/31 10524.55 10379.34
1990/06/30 10672.83 10308.76
1990/07/31 10708.47 10275.77
1990/08/31 9837.61 9346.84
1990/09/30 9302.23 8891.65
1990/10/31 9371.76 8853.42
1990/11/30 9930.60 9425.35
1990/12/31 10257.57 9688.32
1991/01/31 10580.87 10110.73
1991/02/28 11353.20 10833.64
1991/03/31 11694.46 11095.82
1991/04/30 11679.19 11122.45
1991/05/31 12103.97 11602.94
1991/06/30 11515.85 11071.52
1991/07/31 12075.47 11587.46
1991/08/31 12511.54 11862.08
1991/09/30 12350.74 11663.98
1991/10/31 12669.61 11820.28
1991/11/30 12314.40 11343.92
1991/12/31 13598.66 12641.67
1992/01/31 13281.61 12406.53
1992/02/29 13252.12 12567.82
1992/03/31 12973.79 12322.74
1992/04/30 13201.43 12685.03
1992/05/31 13194.98 12747.19
1992/06/30 12905.92 12557.26
1992/07/31 13478.02 13070.85
1992/08/31 13262.78 12802.90
1992/09/30 13204.08 12953.97
1992/10/31 13134.20 12999.31
1992/11/30 13475.23 13442.58
1992/12/31 13515.17 13607.93
1993/01/31 13342.13 13722.24
1993/02/28 13513.28 13908.86
1993/03/31 13692.94 14202.33
1993/04/30 13516.12 13858.64
1993/05/31 13935.01 14230.05
1993/06/30 13818.43 14271.32
1993/07/31 13626.13 14214.23
1993/08/31 14131.26 14752.95
1993/09/30 13945.67 14639.35
1993/10/31 14442.19 14942.39
1993/11/30 14420.18 14800.44
1993/12/31 14603.26 14979.52
1994/01/31 14800.28 15488.82
1994/02/28 14658.58 15069.08
1994/03/31 14025.81 14412.07
1994/04/30 14031.63 14596.54
1994/05/31 14349.96 14835.92
1994/06/30 13882.33 14472.44
1994/07/31 14431.53 14947.14
1994/08/31 15141.86 15559.97
1994/09/30 14972.87 15178.75
1994/10/31 15370.77 15520.27
1994/11/30 15118.28 14955.03
1994/12/31 15458.61 15176.81
1995/01/31 15904.30 15570.34
1995/02/28 16450.69 16177.12
1995/03/31 16814.63 16654.51
1995/04/30 17436.80 17144.98
1995/05/31 18060.97 17830.27
1995/06/30 18520.47 18244.46
1995/07/31 18970.54 18849.45
1995/08/31 18916.04 18896.76
1995/09/30 19945.35 19694.21
1995/10/31 20195.61 19623.90
1995/11/30 20902.00 20485.39
1995/12/31 21430.86 20879.93
1996/01/31 22319.52 21590.69
1996/02/29 22520.51 21790.83
1996/03/31 22812.31 22000.68
1996/04/30 23078.60 22324.97
1996/05/31 23844.83 22900.73
1996/06/30 24083.19 22987.98
1996/07/31 23163.41 21972.37
1996/08/31 23438.42 22435.77
1996/09/30 24662.05 23698.46
1996/10/31 24838.18 24352.06
1996/11/30 26613.88 26192.83
1996/12/31 26214.89 25673.95
1997/01/31 27623.68 27278.06
1997/02/28 28060.35 27491.92
1997/03/31 27166.22 26362.28
1997/04/30 28294.29 27936.10
1997/05/31 29730.11 29636.85
1997/06/30 30975.77 30964.59
1997/07/31 32637.87 33428.44
1997/08/31 30355.75 31555.78
1997/09/30 32024.14 33284.09
1997/10/31 30061.45 32172.40
1997/11/30 31757.07 33661.66
1997/12/31 32193.88 34239.63
1998/01/31 33022.42 34618.32
1998/02/28 34716.44 37114.99
1998/03/31 35717.03 39015.65
1998/04/30 35875.35 39408.15
1998/05/31 34927.54 38730.72
1998/06/30 35838.14 40303.96
1998/07/31 35677.68 39874.73
1998/08/31 32007.26 34109.64
1998/09/30 34117.70 36294.70
1998/10/31 36501.24 39246.91
1998/11/30 38902.85 41625.67
1998/12/31 40134.47 44024.14
1999/01/31 40334.42 45865.23
1999/02/28 39883.18 44439.74
1999/03/31 40998.45 46217.77
1999/04/30 42862.21 48007.79
1999/05/31 42057.04 46874.32
1999/06/30 44163.20 49475.85
1999/07/31 43196.21 47931.21
1999/08/31 43011.20 47693.95
1999/09/30 41104.11 46386.66
1999/10/31 42975.70 49322.01
1999/11/30 43409.18 50324.73
1999/12/31 44569.96 53288.85
IMATRL PRASUN SHR__CHT 19991231 20000121 113025 R00000000000123
$10,000 OVER 10 YEARS: Let's say hypothetically that $10,000 was
invested in Fidelity Congress Street Fund on December 31, 1989. As the
chart shows, by December 31, 1999, the value of the investment would
have grown to $44,570 - a 345.70% increase on the initial investment.
For comparison, look at how the Standard & Poor's 500 Index did over
the same period. With dividends and capital gains, if any, reinvested,
the same $10,000 would have grown to $53,289 - a 432.89% 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)
* THE LIPPER LARGE-CAP VALUE FUNDS AVERAGE REFLECTS THE PERFORMANCE
(EXCLUDING SALES CHARGES) OF MUTUAL FUNDS WITH SIMILAR PORTFOLIO
CHARACTERISTICS AND CAPITALIZATION. THE LIPPER LARGE-CAP SUPERGROUP
AVERAGE REFLECTS THE PERFORMANCE (EXCLUDING SALES CHARGES) OF MUTUAL
FUNDS WITH SIMILAR CAPITALIZATION. AS OF DECEMBER 31, 1999, THE ONE
YEAR, FIVE YEAR, AND 10 YEAR CUMULATIVE AND AVERAGE ANNUAL TOTAL
RETURNS FOR THE LIPPER LARGE-CAP VALUE FUNDS AVERAGE WERE 11.23%,
176.57%, 306.70% AND 11.23%, 22.35%, 14.91%, RESPECTIVELY; AND THE ONE
YEAR, FIVE YEAR AND 10 YEAR CUMULATIVE AND AVERAGE ANNUAL TOTAL
RETURNS FOR THE LIPPER LARGE-CAP SUPERGROUP AVERAGE WERE 24.93%,
227.59%, 397.83% AND 24.93%, 26.34%, 17.07%, RESPECTIVELY.
FUND TALK: THE MANAGER'S OVERVIEW
MARKET RECAP
Despite the fifth consecutive year
of returns exceeding 20% for the
Standard & Poor's 500 Index, this
performance was not necessarily an
entirely accurate representation of
the overall health of the U.S. equity
markets. For example, during the
12-month period ending December
31, 1999, the S&P 500 - a
market-capitalization-weighted
index of 500 widely held U.S. stocks
- - returned 21.04%. Interestingly,
however, the top 50 stocks in the
S&P 500 - the so-called "Nifty 50"
- - accounted for 115% of its total
return. Meanwhile, the remaining
450 stocks had a cumulative return
of -3.13%. Overall, more stocks fell
than rose in 1999. Additionally, just
one sector - technology - was
responsible for approximately 70%
of the S&P's return. This incredibly
narrow market breadth was further
illustrated by the technology-laden
NASDAQ Index. Its 12-month return
of 86.12% was the all-time highest
annual return for any major U.S. stock
index. The Dow Jones Industrial
Average - an index of 30 blue-chip
stocks - posted a 27.13% return
during the period. Also dominating
headlines in 1999 was the Federal
Reserve Board's persistent inflation
worries, and its attempts to keep the
same in check by increasing key
short-term interest rates by 0.25
percentage points on three occasions.
(Photograph of Tim Heffernan)
An interview with Tim Heffernan, Portfolio Manager of Fidelity
Congress Street Fund
Q. HOW DID THE FUND PERFORM, TIM?
A. For the 12 months that ended December 31, 1999, the fund posted a
total return of 11.05%. That trailed the 21.04% return delivered by
the Standard & Poor's 500 Index for the same time frame. The growth
and income funds average tracked by Lipper Inc. returned 13.76% during
the same 12-month period.
Q. WHY DID THE FUND TRAIL ITS BENCHMARK DURING THE 12-MONTH PERIOD?
A. Much of why the fund lagged the S&P 500 - and to a degree, its
Lipper peer group - is attributable to its underexposure to the
high-flying technology sector. The fund lost ground by not holding the
stocks that led the tech rush and powered the "new economy," such as
Cisco, Oracle, Nortel Networks, Sun Microsystems and America Online.
Having an underweighted position in Microsoft also hurt relative
performance. Being overexposed to an otherwise weak health care
sector, most notably in poorly performing drug stocks, also hurt.
Selected holdings in consumer product giants Philip Morris, Heinz,
Coca-Cola and Campbell Soup also hampered returns.
Q. WHAT FACTORS HELPED FUND PERFORMANCE?
A. The fund got a lift from its healthy underweighting of the
predominantly weak finance sector, which was plagued by markedly
higher interest rates during the period. Having no exposure to
rate-sensitive S&P 500 benchmark issues such as Bank of America, First
Union and Banc One was one of the keys to our success here. Even
though the fund couldn't keep pace with a narrowly led market, it was
compensated for holding some of the stronger performers within
technology and telecommunications. Hewlett-Packard (HP) and Motorola
were the big winners here for us. Also, industrial machinery and
equipment stronghold General Electric (GE), the fund's top holding at
the close of the period, performed nicely for the fund over the past
12 months.
Q. WHAT OTHER STOCKS CONTRIBUTED TO FUND RETURNS?
A. Motorola benefited from strong growth in its cellular handset
business and its expansion into the broadband cable market. HP soared
on rising demand for home PCs and related peripherals, the appointment
of a new CEO and a successful restructuring effort that involved the
spin-off of Agilent Technologies - a testing and measurement devices
concern. Conglomerates GE and United Technologies continued to exceed
earnings expectations due to the strength of their underlying
businesses. Global paper and packaging concern International Paper
also beat earnings estimates, helped by favorable industry conditions
and cost reduction programs related to its merger with Union Camp.
Q. WHICH STOCKS HURT THE MOST?
A. It was a constant struggle for drug stocks over the past year, as
they confronted growing concerns of increased government regulation in
the face of an election year, slowing product pipelines and impending
patent expirations. American Home Products, Merck and Eli Lilly
recoiled in response to these numerous challenges. The fund benefited,
however, from not owning laggards Pfizer, Schering-Plough and Bristol
Myers Squibb during this time. Leading medical device manufacturer
Guidant continued to hit its numbers, but could not live up to Wall
Street's lofty sales growth expectations. Our stake in Campbell's Soup
also hurt, as the stock moved lower in response to slowing soup sales
despite consistent growth in its Godiva and Pepperidge Farm divisions.
Q. WHAT'S YOUR OUTLOOK?
A. I'm generally positive about the market. However, rising interest
rates and concerns about inflation usually pose dangers for equities,
and the current cycle doesn't seem to be an exception. While investor
enthusiasm and positive business fundamentals have been powerful
forces driving the market higher, the short-term outlook remains
cloudy until the Federal Reserve Board believes the pace of economic
growth has cooled. Longer term, however, if the market can effectively
overcome concerns about inflation and interest rates, I believe it can
maintain its advances.
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 AND DO NOT NECESSARILY REPRESENT THE VIEWS OF FIDELITY OR
ANY OTHER PERSON IN THE FIDELITY ORGANIZATION. ANY SUCH VIEWS ARE
SUBJECT TO CHANGE AT ANY TIME BASED UPON MARKET OR OTHER CONDITIONS
AND FIDELITY DISCLAIMS ANY RESPONSIBILITY TO UPDATE SUCH VIEWS. THESE
VIEWS MAY NOT BE RELIED ON AS INVESTMENT ADVICE AND, BECAUSE
INVESTMENT DECISIONS FOR A FIDELITY FUND ARE BASED ON NUMEROUS
FACTORS, MAY NOT BE RELIED ON AS AN INDICATION OF TRADING INTENT ON
BEHALF OF ANY FIDELITY FUND.
INVESTMENT CHANGES
<TABLE>
<CAPTION>
<S> <C> <C>
TOP TEN STOCKS AS OF DECEMBER
31, 1999
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
General Electric Co. 11.0 7.9
Exxon Mobil Corp. 7.8 7.3
Hewlett-Packard Co. 6.8 6.0
Motorola, Inc. 6.7 4.3
United Technologies Corp. 6.5 7.1
Merck & Co., Inc. 5.4 5.9
Johnson & Johnson 5.2 5.5
International Paper Co. 4.9 5.3
GTE Corp. 4.5 4.8
Guidant Corp. 4.1 4.5
62.9 58.6
TOP FIVE MARKET SECTORS AS OF
DECEMBER 31, 1999
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
TECHNOLOGY 20.2 16.3
HEALTH 20.1 23.1
NONDURABLES 12.4 14.8
INDUSTRIAL MACHINERY & 11.2 8.6
EQUIPMENT
ENERGY 9.8 9.5
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
ASSET ALLOCATION (% OF FUND'S
NET ASSETS)
AS OF DECEMBER 31, 1999 AS OF JUNE 30, 1999
Stocks 96.7% Stocks 96.8%
Short-Term Investments and Short-Term Investments and
Net Other Assets 3.3% Net Other Assets 3.2%
</TABLE>
Row: 1, Col: 1, Value: 96.7
Row: 1, Col: 2, Value: 0.0
Row: 1, Col: 3, Value: 0.0
Row: 1, Col: 4, Value: 0.0
Row: 1, Col: 5, Value: 0.0
Row: 1, Col: 6, Value: 0.0
Row: 1, Col: 7, Value: 0.0
Row: 1, Col: 8, Value: 3.3
Row: 1, Col: 1, Value: 96.8
Row: 1, Col: 2, Value: 0.0
Row: 1, Col: 3, Value: 0.0
Row: 1, Col: 4, Value: 0.0
Row: 1, Col: 5, Value: 0.0
Row: 1, Col: 6, Value: 0.0
Row: 1, Col: 7, Value: 0.0
Row: 1, Col: 8, Value: 3.2
PRIOR TO THIS REPORT, CERTAIN INFORMATION RELATED TO PORTFOLIO
HOLDINGS IS STATED AS A PERCENTAGE OF THE FUND'S INVESTMENTS.
INVESTMENTS DECEMBER 31, 1999
Showing Percentage of Net Assets
<TABLE>
<CAPTION>
<S> <C> <C> <C>
COMMON STOCKS - 96.7%
SHARES VALUE (NOTE 1)
AEROSPACE & DEFENSE - 8.0%
Boeing Co. 40,513 $ 1,683,822
United Technologies Corp. 112,200 7,293,000
8,976,822
BASIC INDUSTRIES - 5.3%
CHEMICALS & PLASTICS - 0.4%
Eastman Chemical Co. 8,793 419,316
PAPER & FOREST PRODUCTS - 4.9%
International Paper Co. 98,397 5,553,281
TOTAL BASIC INDUSTRIES 5,972,597
ENERGY - 9.8%
OIL & GAS - 9.8%
Chevron Corp. 24,800 2,148,300
Exxon Mobil Corp. 108,923 8,775,109
Union Pacific Resources 8,181 104,308
Group, Inc.
11,027,717
FINANCE - 0.5%
CREDIT & OTHER FINANCE - 0.5%
Citigroup, Inc. 11,250 625,078
HEALTH - 20.1%
DRUGS & PHARMACEUTICALS - 10.8%
American Home Products Corp. 86,059 3,393,952
Eli Lilly & Co. 18,236 1,212,694
Merck & Co., Inc. 90,852 6,092,762
Pharmacia & Upjohn, Inc. 32,260 1,451,700
12,151,108
MEDICAL EQUIPMENT & SUPPLIES
- - 9.3%
Guidant Corp. 98,849 4,645,903
Johnson & Johnson 62,654 5,834,654
10,480,557
TOTAL HEALTH 22,631,665
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
INDUSTRIAL MACHINERY &
EQUIPMENT - 11.2%
ELECTRICAL EQUIPMENT - 11.0%
General Electric Co. 79,400 $ 12,287,147
POLLUTION CONTROL - 0.2%
Waste Management, Inc. 14,500 249,219
TOTAL INDUSTRIAL MACHINERY & 12,536,366
EQUIPMENT
MEDIA & LEISURE - 3.2%
PUBLISHING - 3.2%
Knight-Ridder, Inc. 60,000 3,570,000
NONDURABLES - 12.4%
BEVERAGES - 6.7%
Anheuser-Busch Companies, 51,772 3,669,341
Inc.
The Coca-Cola Co. 66,543 3,876,130
7,545,471
FOODS - 2.7%
Campbell Soup Co. 34,203 1,323,229
H. J. Heinz Co. 42,859 1,706,324
Vlasic Foods International, 5,891 33,505
Inc. (a)
3,063,058
HOUSEHOLD PRODUCTS - 1.7%
Colgate-Palmolive Co. 29,462 1,915,030
TOBACCO - 1.3%
Philip Morris Companies, Inc. 60,000 1,391,250
TOTAL NONDURABLES 13,914,809
TECHNOLOGY - 20.2%
COMPUTER SERVICES & SOFTWARE
- - 1.3%
Microsoft Corp. (a) 12,600 1,471,050
COMPUTERS & OFFICE EQUIPMENT
- - 10.0%
Hewlett-Packard Co. 67,200 7,656,600
International Business 32,844 3,547,152
Machines Corp.
11,203,752
ELECTRONICS - 6.7%
Motorola, Inc. 51,200 7,539,200
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
TECHNOLOGY - CONTINUED
PHOTOGRAPHIC EQUIPMENT - 2.2%
Eastman Kodak Co. 37,637 $ 2,493,451
TOTAL TECHNOLOGY 22,707,453
TRANSPORTATION - 0.4%
RAILROADS - 0.4%
Union Pacific Corp. 9,660 421,418
UTILITIES - 5.6%
ELECTRIC UTILITY - 1.1%
Consolidated Edison, Inc. 26,264 906,108
Potomac Electric Power Co. 14,545 333,626
1,239,734
TELEPHONE SERVICES - 4.5%
GTE Corp. 71,838 5,069,069
TOTAL UTILITIES 6,308,803
TOTAL COMMON STOCKS 108,692,728
(Cost $14,982,871)
CASH EQUIVALENTS - 2.3%
MATURITY AMOUNT
Investments in repurchase $ 2,552,719 2,552,000
agreements (U.S. Treasury
obligations), in a joint
trading account at 3.38%,
dated 12/31/99 due 1/3/00
TOTAL INVESTMENT PORTFOLIO - 111,244,728
99.0%
(Cost $17,534,871)
NET OTHER ASSETS - 1.0% 1,098,872
NET ASSETS - 100% $ 112,343,600
</TABLE>
LEGEND
(a) Non-income producing
INCOME TAX INFORMATION
At December 31, 1999, the aggregate
cost of investment securities for income
tax purposes was $17,534,871. Net unrealized appreciation aggregated
$93,709,857, all of which was related to appreciated investment
securities.
At December 31, 1999, the fund had a capital loss carryforward of
approximately $400 all of which will expire on December 31, 2000.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1999
ASSETS
Investment in securities, at $ 111,244,728
value (including repurchase
agreements of $2,552,000)
(cost $17,534,871) - See
accompanying schedule
Cash 573
Receivable for investments 1,083,386
sold
Dividends receivable 176,882
TOTAL ASSETS 112,505,569
LIABILITIES
Payable for fund shares $ 3,257
redeemed
Accrued management fee 122,275
Other payables and accrued 36,437
expenses
TOTAL LIABILITIES 161,969
NET ASSETS $ 112,343,600
Net Assets consist of:
Paid in capital $ 18,627,799
Undistributed net investment 6,363
income
Accumulated undistributed net (419)
realized gain (loss) on
investments and foreign
currency transactions
Net unrealized appreciation 93,709,857
(depreciation) on investments
NET ASSETS, for 272,497 $ 112,343,600
shares outstanding
NET ASSET VALUE, offering $412.27
price and redemption price
per share ($112,343,600
(divided by) 272,497 shares)
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 1999
INVESTMENT INCOME $ 1,691,131
Dividends
Interest 173,873
TOTAL INCOME 1,865,004
EXPENSES
Management fee $ 489,439
Transfer agent fees 87,914
Accounting fees and expenses 60,514
Custodian fees and expenses 6,736
Audit 23,194
Legal 929
Total expenses before 668,726
reductions
Expense reductions (882) 667,844
NET INVESTMENT INCOME 1,197,160
REALIZED AND UNREALIZED GAIN 3,641,274
(LOSS)
Net realized gain (loss) on
investment securities
Change in net unrealized 6,535,019
appreciation (depreciation)
on investment securities
NET GAIN (LOSS) 10,176,293
NET INCREASE (DECREASE) IN $ 11,373,453
NET ASSETS RESULTING FROM
OPERATIONS
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED DECEMBER 31, 1999 YEAR ENDED DECEMBER 31, 1998
INCREASE (DECREASE) IN NET
ASSETS
Operations Net investment $ 1,197,160 $ 1,284,594
income
Net realized gain (loss) 3,641,274 2,475,195
Change in net unrealized 6,535,019 17,498,938
appreciation (depreciation)
NET INCREASE (DECREASE) IN 11,373,453 21,258,727
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (1,191,521) (1,299,163)
from net investment income
Share transaction 249,900 276,827
Reinvestment of distributions
Cost of shares redeemed (3,346,065) (2,881,579)
NET INCREASE (DECREASE) IN (3,096,165) (2,604,752)
NET ASSETS RESULTING FROM
SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) 7,085,767 17,354,812
IN NET ASSETS
NET ASSETS
Beginning of period 105,257,833 87,903,021
End of period (including $ 112,343,600 $ 105,257,833
undistributed net investment
income of $6,363 and $724,
respectively)
OTHER INFORMATION
Shares
Issued in reinvestment of 632 784
distributions
Redeemed (8,565) (8,544)
Net increase (decrease) (7,933) (7,760)
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
YEARS ENDED DECEMBER 31, 1999 1998 1997 1996 1995
SELECTED PER-SHARE DATA
Net asset value, beginning $ 375.34 $ 305.02 $ 252.14 $ 210.05 $ 155.04
of period
Income from Investment
Operations
Net investment income 4.34 B 4.50 B 4.57 B 4.48 4.45
Net realized and unrealized 36.94 70.41 52.81 42.21 55.06
gain (loss)
Total from investment 41.28 74.91 57.38 46.69 59.51
operations
Less Distributions
From net investment income (4.35) (4.59) (4.50) (4.60) (4.50)
Net asset value, end of period $ 412.27 $ 375.34 $ 305.02 $ 252.14 $ 210.05
TOTAL RETURN A 11.05% 24.66% 22.81% 22.32% 38.63%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 112,344 $ 105,258 $ 87,903 $ 91,346 $ 81,831
(000 omitted)
Ratio of expenses to average .61% .64% .65% .67% .67%
net assets
Ratio of expenses to average .61% .64% .65% .66% C .67%
net assets after expense
reductions
Ratio of net investment 1.10% 1.34% 1.59% 1.92% 2.42%
income to average net assets
Portfolio turnover rate 1% 0% 0% 0% 0%
</TABLE>
THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN.
NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.
FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES.
NOTES TO FINANCIAL STATEMENTS
For the period ended December 31, 1999
1. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity Congress Street Fund (the fund) is registered under the
Investment Company Act of 1940, as amended, as an open-end management
investment company organized as a Massachusetts business trust and is
authorized to issue 3.8 million shares. Shares of the fund are not
currently available for purchase. The financial statements have been
prepared in conformity with generally accepted accounting principles
which require 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. Foreign securities are valued based
on quotations from the principal market in which such securities are
normally traded. If trading or events occurring in other markets after
the close of the principal market in which foreign securities are
traded, and before the close of the business of the fund, are expected
to materially affect the value of those securities, then they are
valued at their fair value taking this trading or these events into
account. Fair value is determined in good faith under consistently
applied procedures under the general supervision of the Board of
Trustees. 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. 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, and capital loss carryforwards.
1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
DISTRIBUTIONS TO SHAREHOLDERS - CONTINUED
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital.
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 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 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.
Purchases of securities, other than short-term securities aggregated
$1,224,023. Sales of securities other than short-term securities
aggregated $4,328,429, of which $3,244,875 represents the current
value of securities delivered in redemption of fund shares. The
realized gain of $2,762,504 on securities delivered in redemption of
fund shares is not taxable to the fund.
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 rate was equivalent
to an annual rate of .45% of average net assets.
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
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
TRANSFER AGENT FEES - CONTINUED
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 annual rate of .08% 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
$92 and $790, respectively, under these arrangements.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees and the Shareholders of Fidelity Congress Street Fund:
In our opinion, the accompanying statement of assets and liabilities,
including the schedule of investments, and the related statements of
operations and of changes in net assets and the financial highlights
present fairly, in all material respects, the financial position of
Fidelity Congress Street Fund at December 31, 1999, and the results of
its operations, the changes in its net assets and the financial
highlights for the periods indicated, in conformity with accounting
principles generally accepted in the United States. These financial
statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Fidelity
Congress Street Fund's management; our responsibility is to express an
opinion on these financial statements based on our audits. We
conducted our audits of these financial statements in accordance with
auditing standards generally accepted in the United States which
require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement
presentation. We believe that our audits, which included confirmation
of securities at December 31, 1999 by correspondence with the
custodian and brokers, provide a reasonable basis for the opinion
expressed above.
/s/PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
February 8, 2000
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 Automated Service Telephone provides 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.
(PHONE_GRAPHIC)
FIDELITY AUTOMATED
SERVICE TELEPHONE (FAST SM)
1-800-544-5555
PRESS
1 For mutual fund and brokerage trading.
2 For quotes.*
3 For account balances and holdings.
4 To review orders and mutual fund activity.
5 To change your PIN.
*0To speak to a Fidelity representative.
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.
(COMPUTER_GRAPHIC)
FIDELITY'S WEB SITE
WWW.FIDELITY.COM
If you are not currently on the Internet, call EarthLink Sprint at
1-800-288-2967, and be sure to ask for registration number SMD004 to
receive a special Fidelity package that includes 30 days of free
Internet access. EarthLink is North America's #1 independent Internet
access provider.
(COMPUTER_GRAPHIC)
FIDELITY ON-LINE XPRESS+(registered trademark)
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 1-800-544-0240 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.
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4400 N. Federal Highway
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7401 Wisconsin Avenue
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150 Essex Street
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501 Route 17, South
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1055 Franklin Avenue
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999 Walt Whitman Road
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1271 Avenue of the Americas
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NORTH CAROLINA
4611 Sharon Road
Charlotte, NC
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600 Vine Street
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28699 Chagrin Boulevard
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439 Fifth Avenue
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6150 Poplar Road
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10000 Research Boulevard
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19740 IH 45 North
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595 North Barker Road
Brookfield, WI
INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
OFFICERS
Edward C. Johnson 3d, President
Robert C. Pozen, Senior Vice President
Robert A. Lawrence, Vice President
Eric D. Roiter, Secretary
Richard A. Silver, Treasurer
Matthew N. Karstetter, Deputy Treasurer
John H. Costello, 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
Abigail P. Johnson
Ned C. Lautenbach
* 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
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Congress Street Fund
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Real Estate Investment Portfolio
Utilities Fund
THE FIDELITY TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Exchanges/Redemptions
and Account Assistance 1-800-544-6666
Product Information 1-800-544-6666
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for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
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Telephone (FAST SM) 1-800-544-5555
AUTOMATED LINE FOR QUICKEST SERVICE
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Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
