SECURITIES AND EXCHANGE COMMISSION FORM N-30D Initial annual and semi-annual reports mailed to investment company shareholders pursuant to Rule 30e-1 (other than those required to be submitted as part of Form NCSR) Filing Date: 1998-09-21 | Period of Report: 1998-07-31 SEC Accession No. 0000081205-98-000009 (HTML Version on secdatabase.com) FILER FIDELITY PURITAN TRUST Mailing Address Business Address 82 DEVONSHIRE STREET 82 DEVONSHIRE ST CIK:81205| IRS No.: 046026952 | State of Incorp.:MA | Fiscal Year End: 0731 MAILZONE ZH-1 BOSTON MA 02109 Type: N-30D | Act: 40 | File No.: 811-00649 | Film No.: 98712162 BOSTON MA 02109 6174391706 Copyright © 2012 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document FIDELITY BALANCED FUND ANNUAL REPORT JULY 31, 1998 (FIDELITY_LOGO_GRAPHIC) (REGISTERED TRADEMARK) CONTENTS PRESIDENT'S MESSAGE 3 NED JOHNSON ON INVESTING STRATEGIES. PERFORMANCE 4 HOW THE FUND HAS DONE OVER TIME. FUND TALK 6 THE MANAGERS' REVIEW OF FUND PERFORMANCE, STRATEGY AND OUTLOOK. INVESTMENT CHANGES 9 A SUMMARY OF MAJOR SHIFTS IN THE FUND'S INVESTMENTS OVER THE PAST SIX MONTHS. INVESTMENTS 10 A COMPLETE LIST OF THE FUND'S INVESTMENTS WITH THEIR MARKET VALUES. FINANCIAL STATEMENTS 29 STATEMENTS OF ASSETS AND LIABILITIES, OPERATIONS, AND CHANGES IN NET ASSETS, AS WELL AS FINANCIAL HIGHLIGHTS. NOTES 33 NOTES TO THE FINANCIAL STATEMENTS. REPORT OF INDEPENDENT 38 THE AUDITORS' OPINION. ACCOUNTANTS DISTRIBUTIONS 39 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. THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR THE GENERAL INFORMATION OF THE SHAREHOLDERS OF THE FUND. THIS REPORT IS NOT AUTHORIZED FOR DISTRIBUTION TO PROSPECTIVE INVESTORS IN THE FUND UNLESS PRECEDED OR ACCOMPANIED BY AN EFFECTIVE PROSPECTUS. 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 (photo_of_Edward_C_Johnson_3d) DEAR SHAREHOLDER: So far, 1998 has been a year of considerable volatility in the U.S. stock and bond markets. In the first quarter, the U.S. stock market soared as inflation and interest rates remained stable, while the economy maintained strong growth. By summer, however, investors began to exercise caution relative to the troublesome Asian economic climate and reports of concerns about corporate earnings domestically. Market volatility and low interest rates were also the main stories in the bond market, with many investors moving assets to highly rated U.S. Treasuries. 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 Copyright © 2012 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document 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 earned upon the sale of securities that have grown in value). CUMULATIVE TOTAL RETURNS PERIODS ENDED JULY 31, 1998 PAST 1 PAST 5 PAST 10 YEAR YEARS YEARS FIDELITY BALANCED 14.54% 68.60% 228.20% S&P 500 (REGISTERED TRADEMARK) 19.29% 180.53% 445.15% LB AGGREGATE BOND 7.87% 38.97% 139.96% BALANCED FUNDS AVERAGE 9.75% 89.19% 232.69% 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 - a widely recognized, unmanaged index of common stocks - and the performance of the Lehman Brothers Aggregate Bond Index - a market value weighted performance benchmark for investment-grade fixed-rate debt issues, including government, corporate, asset-backed, and mortgage-backed securities, with maturities of at least one year. To measure how the fund's performance stacked up against its peers, you can compare it to the balanced funds average, which reflects the performance of mutual funds with similar objectives tracked by Lipper Analytical Services, Inc. The past one year average represents a peer group of 379 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 JULY 31, 1998 PAST 1 PAST 5 PAST 10 YEAR YEARS YEARS FIDELITY BALANCED 14.54% 11.01% 12.62% S&P 500 (REGISTERED TRADEMARK) 19.29% 22.91% 18.48% Copyright © 2012 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document LB AGGREGATE BOND 7.87% 6.80% 9.15% BALANCED FUNDS AVERAGE 9.75% 13.54% 12.71% 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. $10,000 OVER 10 YEARS Balanced S&P 500 LB Aggregate Bond FID Balanced Composite 00304 SP001 LB001 F0021 1988/07/31 10000.00 10000.00 10000.00 10000.00 1988/08/31 9952.61 9660.00 10026.00 9806.40 1988/09/30 10190.52 10071.52 10253.59 10146.09 1988/10/31 10344.34 10351.50 10446.36 10391.63 1988/11/30 10248.20 10203.48 10318.91 10251.76 1988/12/31 10365.89 10382.04 10330.26 10363.91 1989/01/31 10719.61 11142.00 10479.02 10878.79 1989/02/28 10641.01 10864.57 10403.57 10684.93 1989/03/31 10759.05 11117.71 10448.31 10852.68 1989/04/30 11107.72 11694.72 10666.67 11281.37 1989/05/31 11356.78 12168.36 10947.21 11674.18 1989/06/30 11526.39 12099.00 11280.00 11776.22 1989/07/31 11980.59 13191.54 11520.27 12514.58 1989/08/31 12051.24 13450.09 11349.77 12587.67 1989/09/30 12060.69 13394.95 11407.65 12582.38 1989/10/31 12101.58 13084.18 11688.28 12531.05 1989/11/30 12285.55 13351.10 11799.32 12732.04 1989/12/31 12408.90 13671.53 11831.18 12929.14 1990/01/31 11950.52 12754.17 11690.39 12347.07 1990/02/28 12037.83 12918.70 11727.79 12458.44 1990/03/31 12136.05 13261.04 11736.00 12660.01 1990/04/30 11970.11 12929.52 11628.03 12423.53 1990/05/31 12368.38 14190.14 11972.22 13297.40 1990/06/30 12423.39 14093.65 12164.98 13328.78 1990/07/31 12457.03 14048.55 12332.85 13376.76 1990/08/31 11930.04 12778.56 12167.59 12579.51 1990/09/30 11735.14 12156.25 12268.58 12253.70 1990/10/31 11678.29 12103.97 12424.39 12284.33 1990/11/30 12087.65 12885.89 12691.52 12866.12 1990/12/31 12351.18 13245.41 12889.51 13161.78 1991/01/31 12862.42 13822.91 13049.34 13571.38 1991/02/28 13443.38 14811.25 13160.26 14199.73 1991/03/31 13700.51 15169.68 13251.06 14445.10 1991/04/30 13924.14 15206.08 Copyright © 2012 www.secdatabase.com.