Although Fidelity Investments posted an overall profit of $2.2 billion in 2000, boosted by strong sales of its brokerage and institutional retirement products, its mutual funds' performance, sales and assets slumped and did not meet company projections, according to Fidelity's annual report released earlier this month.

Fidelity funds had only mediocre returns, outperforming only 57 percent of their peers overall, the same results the funds reported in 1999, according to the report. The middling performance put a significant damper on sales, the report said.

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