Fidelity VIP Financial Services Portfolio

Transcription

1 Fidelity VIP Financial Services Key Takeaways For the semiannual reporting period ending June 30, 2017, the fund's share classes returned roughly 5.7%, versus the 5.85% gain of the MSCI U.S. IMI Financials 5% Capped Linked Index. After a huge post-election surge, the financials sector saw returns slow for the first half of 2017, as prospects for near-term regulatory relief stalled, 10-year Treasury yields declined, and loan growth and trading activity decelerated. Manager Chris Lee's picks in the regional banks segment provided the biggest boost versus the MSCI sector index, while security selection in the consumer finance group hindered the fund's relative result. Chris remains encouraged about the sector's prospects, believing financials stand to benefit from higher interest rates, a prolonged economic recovery and valuations that look attractive relative to other sectors. However, identifying higher-quality financials with competitive advantages and above-average returns on capital at reasonable prices has become more challenging in the current environment. MARKET RECAP The U.S. equity bellwether S&P 500 index returned 9.34% for the six months ending June 30, 2017, gaining strongly to begin the new year on optimism for President Trump's probusiness agenda. Equity markets leveled off in March, however, as the fledgling administration faced the first test of its domestic agenda. The index reacted with uncertainty to efforts by Congress to repeal and replace the Affordable Care Act (ACA) and then turned upward through June 30. In a stark reversal from 2016, growthoriented stocks handily topped their value counterparts for the first half of Among sectors, information technology (+17%) fared best, surging as a handful of major index constituents posted stellar returns. Health care (+16%) was close behind, climbing in February and again in the second quarter, following the ACA's reprieve. Meanwhile, consumer staples (+8%) and utilities (+9%) fell just shy of the broader market amid investors' general preference for risk assets. Financials (+7%) lagged because sentiment regarding the potential for deregulation and lower taxes faded as the White House turned its attention to other initiatives. Rising interest rates hurt real estate (+6%) and dividend-rich telecommunication services (-11%), the latter of which was further hampered by increased competition. Lastly, lower oil prices sent energy (-13%) to the bottom of the sector performance rankings. Not FDIC Insured May Lose Value No Bank Guarantee

2 Q&A An interview with Manager Christopher Lee Fund Facts Christopher Lee Manager Start Date: July 18, 2001 Size (in millions): $ Investment Approach Fidelity VIP Financial Services is a sector-based, equity-focused strategy that seeks to outperform its benchmark through active management. We believe that stocks of high-quality financial companies exhibiting persistent growth and purchased at reasonable prices can outperform the market over time. Our investment approach relies on fundamental research to uncover differences between expectations and underlying growth potential, presenting an opportunity to generate excess returns. In our search for companies that exhibit potential for sustainable growth, we look for business catalysts such as expanding returns, new markets, product cycles or productivity improvements. Sector strategies could be used by investors as alternatives to individual stocks for either tactical- or strategic-allocation purposes. Q: Chris, how did the fund perform for the six months ending June 30, 2017 The fund's share classes gained about 5.7%, which was close to the 5.85% return of the MSCI U.S. IMI Financials 5% Capped Linked Index and slightly ahead of the peer group average. The fund lagged the broader S&P 500 by a sizable margin. Looking back a full year, the fund rose almost 29%, which trailed the 33.85% gain of the MSCI sector index and a similar return for the peer group average. However, the fund soundly outpaced the S&P 500's 17.90% advance. Q: Focusing on the past six months, why did the MSCI sector index lag the broader market Financials stocks had a huge run right after last November's election fueled expectations of regulatory relief. Some of that optimism waned in 2017, however, as investors began questioning how quickly President Trump would be able to advance his agenda. Plus, the yield on the 10-year Treasury declined, reflecting expectations that higher short-term interest rates would eventually slow economic growth. Policy uncertainty led to a deceleration in loan growth, as many commercial and industrial businesses sat on the sidelines. Market volatility was surprisingly low, hindering trading activity. Lastly, credit losses rose among low-end borrowers. The sector benefited, however, from continued modest economic recovery and the Federal Reserve's decision to raise interest rates in March and June. These increases benefited lenders that make money on the difference between rates paid out on deposits and charged on loans. Plus, for the first time, all the major U.S. banks passed their annual federal stress tests, a measure of whether they have adequate capital on hand to withstand a severe economic recession. As a result, many banks gained regulatory approval to boost dividends and share buybacks. Q: Which segments within the financials sector benefited most from this backdrop The biggest winner was the financial exchanges & data group, which typically doesn't fare well amid low volatility. 2 For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.

3 However, increased uncertainties around the Trump agenda, the timing and extent of interest rate increases and the pace of economic recovery bolstered hedging activity, which helped the group gain 21% the past six months. Asset management & custody banks also fared well, thanks to their attractive valuations and the market rally. Property & casualty (P&C) insurance stocks posted decent returns, buoyed by stable pricing and low catastrophe levels. Diversified banks were aided by the stress test results. By contrast, long-term Treasury yields kept regional bank returns in check. Low volatility was a headwind for investment banking & brokerage, and concern about potentially higher credit losses hurt consumer finance. Q: What helped the fund relative to the MSCI benchmark this period Stock picks, particularly in the regional banks group, gave the biggest boost to our relative result. I tend to favor higher-quality financials with competitive advantages and above-average returns on capital that I think are reasonably priced. Long term, I believe owning "A-minus" companies at "B-minus" prices can help manage downside risk and preserve capital. Our quality bias likely helped the fund in this weaker-performing segment, although no one regional bank stood out as a top contributor this period. The fund also gained ground from selection in the P&C insurance group, most notably from our overweighting in mortgage-title insurer Fidelity National Financial (FNF). I view FNF as a higher-quality company with above-average returns on capital and good barriers to entry. As 10-year yields fell, investors became less concerned about slowing mortgage volumes, which helped the stock. Plus, management executed well, driving improved profitability and a 33% gain for the fund's shares this period. Q: Which other stocks stood out Our overweighting in CBOE Holdings, parent of the Chicago Board Options Exchange, returned 24% for the first half of CBOE's March acquisition of Kansas-based competitor Bats Global Markets (which we owned at the start of the period) helped, as Bats' significant European presence and technology expertise bolstered CBOE's earnings outlook. Another winner was non-benchmark credit card processor Visa. This is a stable, higher-quality, fee-based company with a history of steadily compounding earnings. The shift worldwide from cash to plastic continued to benefit the company. Also, a post-election rotation into interest-ratesensitive names which had hurt Visa in late 2016 reversed this period, helping drive the stock's 21% gain. Q: Which choices hurt relative performance Our picks in consumer finance disappointed most, led by overweightings in credit card issuers Synchrony Financial and Capital One Financial. Both stocks posted declines due to rising credit losses and reduced earnings estimates. Synchrony, a private-label credit card provider, also was pressured by weak foot traffic for brick-and-mortar retailers. Capital One missed first-quarter earnings estimates and had to raise its loan loss provisions. We like both positions because they generate higher returns on capital than most regional banks and have much cheaper price-to-earnings (P/E) ratios. We believe Synchrony and Capital One stand to benefit if credit losses stabilize. Elsewhere, our stake in Goldman Sachs Group, a leader in the investment banking & brokerage segment, declined as low volatility pressured trading activity. Market share losses and delays in regulatory reform further hampered the stock's performance. Goldman and Capital One were among our largest holdings at period end. Q: What's your outlook, Chris, for the sector and fund at period end Consensus expectations seem to be that we'll see a slow and prolonged economic recovery, with unemployment continuing to edge lower the rest of If so, the Fed likely will proceed with its plans to edge interest rates higher and shrink its balance sheet. This backdrop bodes well for the sector, particularly for lenders. Plus, I think newly appointed pro-business leaders in Washington could help deliver regulatory relief. Lastly, the sector's earnings and revenue outlook generally seems stable, and valuations look attractive relative to other sectors that have posted much stronger year-to-date gains. However, it has become increasingly difficult to find higherquality financials at reasonable prices because valuations, in an absolute sense, seem elevated. My plan is to look for buying opportunities when I see higher-quality stocks selling off because of near-term controversy. The fund ended the period with a higher stake in the investment banking & brokerage group, primarily online brokers; a reduced position in diversified banks, the proceeds of which went into smaller regional banks; and more exposure to asset management & custody banks. 3 For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.

4 LARGEST CONTRIBUTORS VS. BENCHMARK Chris Lee on lessons from the financial crisis: "Roughly 10 years ago, when the last financial crisis began, I was managing Fidelity Advisor Electronics Fund. One lesson I learned is that regardless of what sectors or types of stocks you're investing in, it's important to think about the big picture and be aware of what's driving the market and economies. "Covering semiconductors, I wasn't paying enough attention to the shape of the yield curve or other elements of the broader economy that, with hindsight, presented some clues about what was to come. Although I'm still a bottom-up investor, I've become much more attuned to the macroeconomic backdrop. "The second lesson: be flexible. When there's a lot of fear in the market and most investors are selling stocks, you can often find good buying opportunities. I'm always checking to see if it's sentiment or fundamentals that are pressuring the share price because if it's the former, the stock will likely bounce back. But you have to be willing to be flexible and patient. Our electronics fund made money because we were buying when everyone else was selling, and we were willing to wait. "The last lesson: be open-minded. Each crisis is different. It's natural to look back at precisely what happened last time in order to prevent history from repeating itself. But I think the likelihood of housing being the source of the next financial crisis is probably pretty low, especially because lending standards have become much stricter. In my view, the next downturn will probably be brought on by other issues, such as shadow (unregulated) banking, China or the reach for yield in a low interest rate environment." Holding FNF Group CBOE Holdings, Inc. Visa, Inc. Class A Allstate Corp. IntercontinentalExchange, Inc. * 1 basis point = 0.01%. Market Segment Property & Casualty Insurance Financial Exchanges & Data Data Processing & Outsourced Services Property & Casualty Insurance Financial Exchanges & Data Average Relative Weight LARGEST DETRACTORS VS. BENCHMARK Holding Market Segment Relative Contribution (basis points)* 1.52% % % % % 18 Average Relative Weight Relative Contribution (basis points)* Synchrony Financial Consumer Finance 2.06% -53 Capital One Financial Corp. Goldman Sachs Group, Inc. S&P Global, Inc. American International Group, Inc. * 1 basis point = 0.01%. Consumer Finance 4.07% -46 Investment Banking & Brokerage Financial Exchanges & Data Multi-Line Insurance 2.08% % % For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.

5 10 LARGEST HOLDINGS Holding Market Segment Weight Weight Six Months Ago Citigroup, Inc. Diversified Banks 6.06% 4.83% Capital One Financial Corp. Consumer Finance 5.81% 4.78% Bank of America Corp. Diversified Banks 5.42% 4.82% Huntington Bancshares, Inc. Regional Banks 4.95% 3.16% Berkshire Hathaway, Inc. Class B Multi-Sector Holdings 4.82% 5.80% Goldman Sachs Group, Inc. Investment Banking & Brokerage 4.30% 4.90% TD Ameritrade Holding Corp. Investment Banking & Brokerage 3.93% -- Chubb Ltd. Property & Casualty Insurance 3.83% 2.78% The Travelers Companies, Inc. Property & Casualty Insurance 3.65% 2.58% JPMorgan Chase & Co. Diversified Banks 3.42% 3.43% 10 Largest Holdings as a % of Net Assets 46.19% 44.06% Total Number of Holdings The 10 largest holdings are as of the end of the reporting period, and may not be representative of the fund's current or future investments. Holdings do not include money market investments. MARKET-SEGMENT DIVERSIFICATION Market Segment Weight Weight Six Months Ago Regional Banks 18.12% 14.69% Diversified Banks 18.06% 22.31% Property & Casualty Insurance 11.99% 10.94% Investment Banking & Brokerage 11.80% 7.20% Consumer Finance 8.56% 10.11% Asset Management & Custody Banks 7.05% 5.79% Financial Exchanges & Data 4.88% 4.57% Multi-Sector Holdings 4.82% 5.80% Multi-Line Insurance 3.68% 5.24% Data Processing & Outsourced Services 2.67% 2.60% Other 5.44% 6.20% ASSET ALLOCATION Asset Class Weight Weight Six Months Ago Domestic Equities 95.82% 94.57% International Equities 1.25% 1.28% Developed Markets 0.06% 0.00% Emerging Markets 1.19% 1.03% Tax-Advantaged Domiciles 0.00% 0.25% Bonds 0.00% 0.00% Cash & Net Other Assets 2.93% 4.15% Net Other Assets can include fund receivables, fund payables, and offsets to other derivative positions, as well as certain assets that do not fall into any of the portfolio composition categories. Depending on the extent to which the fund invests in derivatives and the number of positions that are held for future settlement, Net Other Assets can be a negative number. "Tax-Advantaged Domiciles" represent countries whose tax policies may be favorable for company incorporation. 5 For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.

6 PERFORMANCE SUMMARY Variable annuity contracts are issued by insurance companies through separate accounts that are part of the insurer. The value of a variable annuity contract depends on the values of units of subaccounts of the separate account. Each subaccount purchases shares of a corresponding mutual fund. Subaccount investment performance is based on the performance of the mutual fund in which it invests, less insurance company charges made against the assets of the separate account. A subaccount is not a mutual fund. The information provided in this Performance Summary contains performance information for the fund, or class, and each variable subaccount, with comparisons over different time periods to the fund's relevant benchmarks including an appropriate index as well as a group of similar funds whose average returns are compiled and monitored by an independent mutual fund research company. Figures for more than one year assume a steady compounded rate of return and are not a class' year-by-year results, which fluctuated over the periods shown. Fund performance numbers are net of all underlying fund operating expenses, but do not include any insurance charges imposed by your insurance company's separate account. If fund performance information included the effect of these additional charges, the total returns would have been lower. The performance table also contains performance information for certain insurance company subaccounts that invest in the fund. Each variable subaccount's performance, as shown, is net of all fees and expenses, including those charges imposed by your insurance company. Seeing the returns over different time periods can help you assess the performance against relevant measurements and across multiple market environments. The performance information includes average annual total returns and cumulative total returns and is further explained in this section.* Investing in a variable annuity involves risk of loss investment returns, contract value, and, for variable income annuities, payment amounts are not guaranteed and will fluctuate. Withdrawals of taxable amounts from an annuity are subject to ordinary income tax, and, if taken before age 59 1/2, may be subject to a 10% IRS penalty. Current performance may be higher or lower than the performance data quoted below. An investor's shares, when redeemed, may be worth more or less than their original cost. For month-end performance figures, please visit or call Fidelity. The performance data featured represents past performance, which is no guarantee of future results. Fiscal periods ending June 30, 2017 Cumulative Annualized Total Returns for the Fund 6 Month YTD / LOF 1 VIP Financial Services - Initial Class Gross Expense Ratio: 0.72% % 5.72% 28.81% 9.10% 14.83% 0.70% VIP Financial Services - Investor Class Gross Expense Ratio: 0.80% % 5.73% 28.75% 9.04% 14.75% 0.62% S&P 500 Index 9.34% 9.34% 17.90% 9.61% 14.63% 7.18% MSCI US IMI Financials 5% Capped Linked Index 5.85% 5.85% 33.85% 12.55% 17.33% 1.92% Morningstar Insurance Financial 5.62% 5.62% 33.35% 8.98% 14.29% 1.31% 1 Life of Fund (LOF) if performance is less than 10 years. Fund inception date: 07/18/ This expense ratio is from the prospectus in effect as of the date shown above and generally is based on amounts incurred during that fiscal year. This fund has a short term trading fee 1.00% for shares held less than 60 days. Performance and disclosure information continued on next page. 6 For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.

7 PERFORMANCE SUMMARY (continued): Fiscal periods ending June 30, 2017 Total Returns for the Variable Subaccount** Annualized Cumulative Annualized New York Only: 10 /Life of Subaccount 6 Month YTD /Life of Subaccount Fidelity Retirement Reserves A -0.11% 5.30% 5.30% 27.78% 8.22% 13.91% -0.11% Fidelity Income Advantage B -0.31% 5.19% 5.19% 27.53% 8.00% 13.68% -0.31% Fidelity Personal Retirement Annuity C (for contracts purchased prior to 1/1/09 and on or after 9/7/10) Fidelity Personal Retirement Annuity C (for contracts purchased between 1/1/09 and 9/6/10) Fidelity Personal Retirement Annuity C (for contracts purchased on or after 9/7/10 with an initial purchase payment of $1M+) 0.36% 5.60% 5.60% 28.43% 8.76% 14.46% 0.36% 0.33% 5.60% 5.60% 28.43% 8.76% 14.46% 0.33% 0.52% 5.68% 5.68% 28.62% 8.93% 14.63% 0.52% Fidelity Retirement Reserves - Subaccount Inception: July 30, 2001; New York Only Inception: July 30, Fidelity Income Advantage - Subaccount Inception: July 30, 2001; New York Only Inception: July 30, Fidelity Personal Retirement Annuity - Subaccount Inception: August 15, 2005; New York Only Inception: October 28, Fidelity Retirement Reserves' underlying fund options are Initial Class fund offerings. Fidelity Income Advantage's underlying fund options are Initial Class fund offerings. Fidelity Personal Retirement Annuity's underlying fund options are Investor Class fund offerings. A In NY, Retirement Reserves B In NY, Income Advantage C In NY, Personal Retirement Annuity * Total returns are historical and include changes in share price (for the fund) and unit price (for the variable subaccount) and reinvestment of dividends and capital gains, if any. ** Returns for Fidelity Retirement Reserves include the 0.80% annual annuity charge. For Fidelity Retirement Reserves contracts, returns do not reflect the annual $30 maintenance fee which applies to contracts where purchase payments less any withdrawals are less than $25,000. Returns for Fidelity Income Advantage include the 1.00% annual annuity charge. Returns for Fidelity Personal Retirement Annuity ("FPRA") include the 0.25% annual annuity charge for contracts purchased prior to 1/1/2009, and on or after 9/7/2010. For FPRA contracts purchased between 1/1/2009 and 9/6/2010, returns include a 0.35% annual annuity charge prior to 9/7/2010 and 0.25% thereafter. For FPRA contracts purchased on or after 9/7/2010 with an initial purchase payment of $1,000,000 or more, returns include a 0.10% annual annuity charge. Life of subaccount returns are from the subaccount inception, the date the portfolio was first available in the insurance company's variable product. Please see the last page(s) of this Q&A document for most-recent calendar-quarter performance. 7 For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.

8 Definitions and Important Information Fidelity Income Advantage (policy form nos. FVIA-92100, et al. and FVIA-99100, et al.), Fidelity Retirement Reserves (policy form no. NRR-96100, et al.), Fidelity Personal Retirement Annuity (policy form no. DVA-2005, et al.), Fidelity Freedom Lifetime Income (policy form nos. FFLI-Q-2005, et al. and FFLI-NQ-2005, et al.), and Fidelity Growth and Guaranteed Income (policy form no. DVA-GWB- 2007, et al.) are issued by Fidelity Investments Life Insurance Company, 100 Salem Street, Smithfield, RI 02917, and for NY residents, Income Advantage (policy form nos. EFVIA-92100, et al. and EFVIA-99100, et al.), Retirement Reserves (policy form no. EVA-91100, et al.), Personal Retirement Annuity (policy form no. EDVA-2005, et al.), Fidelity Freedom Lifetime Income (policy form nos. EFLI-Q-2005, et al. and EFLI-NQ-2005, et al.), and Growth and Guaranteed Income (policy form no. EDVA-GWB-2007, et al.) are issued by Empire Fidelity Investments Life Insurance Company, New York, NY. Annuities are distributed by Fidelity Brokerage Services (Member NYSE, SIPC) and Fidelity Insurance Agency, Inc. FUND RISKS Stock markets, especially foreign markets, are volatile and can decline significantly in response to issuer, political, regulatory, market, or economic developments. Foreign securities are subject to interest rate, currency exchange rate, economic, and political risks. The financials industries are subject to extensive government regulation, can be subject to relatively rapid change due to increasingly blurred distinctions between service segments, and can be significantly affected by availability and cost of capital funds, changes in interest rates, the rate of corporate and consumer debt defaults, and price competition. used as a recommendation for any sector or industry. MORNINGSTAR INFORMATION 2017 Morningstar, Inc. All rights reserved. The Morningstar information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or redistributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Fidelity does not review the Morningstar data and, for mutual fund performance, you should check the fund's current prospectus for the most up-to-date information concerning applicable loads, fees and expenses. RELATIVE WEIGHTS Relative weights represents the % of fund assets in a particular market segment, asset class or credit quality relative to the benchmark. A positive number represents an overweight, and a negative number is an underweight. The fund's benchmark is listed immediately under the fund name in the Performance Summary. IMPORTANT FUND INFORMATION Relative positioning data presented in this commentary is based on the fund's primary benchmark (index) unless a secondary benchmark is provided to assess performance. VIP refers to Variable Insurance Products Unless otherwise disclosed to you, in providing this information, Fidelity is not undertaking to provide impartial investment advice, act as an impartial adviser, or to give advice in a fiduciary capacity. INDICES It is not possible to invest directly in an index. All indices represented are unmanaged. All indices include reinvestment of dividends and interest income unless otherwise noted. S&P 500 is a market-capitalization-weighted index of 500 common stocks chosen for market size, liquidity, and industry group representation to represent U.S. equity performance. MSCI US IMI Financials 5% Capped Linked Index represents the performance of the MSCI US IMI Financials 5% Capped Index since 9/1/2016, and the MSCI US IM Financials 25/50 Index prior to that date. MARKET-SEGMENT WEIGHTS Market-segment weights illustrate examples of sectors or industries in which the fund may invest, and may not be representative of the fund's current or future investments. Should not be construed or 8

9 Manager Facts Christopher Lee is a sector leader at Fidelity Management & Research Company (FMRCo), the investment advisor for Fidelity's family of mutual funds. Fidelity Investments is a leading provider of investment management, retirement planning, portfolio guidance, brokerage, benefits outsourcing and other financial products and services to more than 20 million individuals, institutions and financial intermediaries. In this role, Mr. Lee is responsible for covering the global investment banks within the financials sector. He also manages, Fidelity Advisor Financial Services Fund, VIP Financial Services, and Fidelity Select Financial Services (all since 2013). In addition, Mr. Lee co-manages Fidelity Series Broad Market Opportunities Fund, Fidelity Stock Selector All Cap Fund, and Fidelity Advisor Stock Selector All Cap Fund (all since 2013). Prior to assuming his current responsibilities, Mr. Lee managed Fidelity Select Brokerage and Investment Management from 2013 to 2016, VIP Growth Strategies and Fidelity Growth Strategies Fund from 2012 to 2013, as well as Select Consumer Finance from 2009 to 2012 (which he comanaged until November 2012). Prior to that, he managed Select Electronics and Fidelity Advisor Electronics Fund from 2007 to Mr. Lee joined Fidelity in 2004 as an equity analyst following the semiconductor industry. Previously, he was an associate in the Technology group for TA Associates, a private equity firm in Boston, from 1999 to Mr. Lee has been in the investments industry since joining Robertson Stephens as a financial analyst in the Technology group in Mr. Lee earned his bachelor of arts degree in East Asian studies from Yale University and his master of business administration degree from the Sloan School of Management at the Massachusetts Institute of Technology. 9 For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.

10 PERFORMANCE SUMMARY Quarter ending September 30, 2017 Total Returns for the Variable Subaccount New York Only: 10 /Life of Subaccount 1 Annualized /Life of Subaccount Fidelity Retirement Reserves 0.72% 29.52% 9.72% 13.86% 0.72% Fidelity Income Advantage 0.51% 29.26% 9.50% 13.63% 0.51% Fidelity Personal Retirement Annuity (for contracts purchased prior to 1/1/09 and on or after 9/7/10) Fidelity Personal Retirement Annuity (for contracts purchased between 1/1/09 and 9/6/10) Fidelity Personal Retirement Annuity (for contracts purchased on or after 9/7/10 with an initial purchase payment of $1M+) 1.19% 30.21% 10.25% 14.42% 1.19% 1.16% 30.21% 10.25% 14.42% 1.16% 1.34% 30.40% 10.42% 14.60% 1.34% Current performance may be higher or lower than the performance data quoted above. For month-end performance figures, please visit or call Fidelity. The performance data featured represents past performance, which is no guarantee of future results. Investing in a variable annuity involves risk of loss investment returns, contract value, and, for variable income annuities, payment amounts are not guaranteed and will fluctuate. Withdrawals of taxable amounts from an annuity are subject to ordinary income tax, and, if taken before age 59 1/2, may be subject to a 10% IRS penalty. Please see the Fiscal Performance Summary section of this Q&A document for performance footnotes and additional information. Before investing, please carefully consider the investment objectives, risks, charges, and expenses of the fund or annuity and its investment options. For this and other information, call or write Fidelity for a free prospectus or, if available, a summary prospectus. Read it carefully before you invest. Past performance is no guarantee of future results. Views expressed are through the end of the period stated and do not necessarily represent the views of Fidelity. 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. The securities mentioned are not necessarily holdings invested in by the portfolio manager(s) or FMR LLC. References to specific company securities should not be construed as recommendations or investment advice. Information included on this page is as of the most recent calendar quarter. S&P 500 is a registered service mark of Standard & Poor's Financial Services LLC. 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 LLC or an affiliated company. Fidelity Brokerage Services LLC, Member NYSE, SIPC., 900 Salem Street, Smithfield, RI Fidelity Investments Institutional Services Company, Inc., 500 Salem Street, Smithfield, RI FMR LLC. All rights reserved. Not NCUA or NCUSIF insured. May lose value. No credit union guarantee Diversification does not ensure a profit or guarantee against a loss.