Fidelity VIP Freedom Funds

Transcription

1 Fidelity VIP Freedom Funds Key Takeaways For the semiannual reporting period ending June 0, 207, VIP Freedom Fund share classes posted gains ranging roughly from % to %. Each Fund outperformed its respective Composite index, with excess returns of between and percentage points. Both active allocation decisions and bottom-up results among underlying investments added value versus Composites, with performance from underlying managers the larger factor. The top-down strategy of underweighting fixed-income assets in favor of equities added substantial value. Within the equity asset class, favoring non-u.s. developed-markets (DM) and emergingmarkets (EM) equity over U.S. equity helped further. FUND NAMES VIP Freedom Income VIP Freedom 200 VIP Freedom 200 VIP Freedom 20 VIP Freedom 2020 VIP Freedom 202 VIP Freedom 200 Among underlying investments, large-cap growth strategies added most to relative results. In particular, the VIP Overseas, Growth and Emerging Markets portfolios well outpaced their specific benchmarks and thus contributed most. Indeed, only VIP Growth & Income notably detracted. Versus Composites and given an evolving outlook, Co-Managers Andrew Dierdorf and Brett Sumsion gradually increased the Funds' overweighting to non-u.s. DM equity. They also modestly reduced the fixed-income underweighting although it remains by far the Funds' largest variance from Composites mainly by adding exposure to short-term debt. Not FDIC Insured May Lose Value No Bank Guarantee

2 Market Recap For the first half of 207, synchronized global economic expansion provided support for equities, while flagging commodity prices helped mitigate concern about potential overheating. The U.S. dollar weakened against most major currencies, helping international equities spearhead the global market rally. Around the world, large-cap stocks bested smallcaps, and growth topped value segments. In this environment, the MSCI ACWI (All Country World Index) Index of global equities gained.72% for the six months ending June 0, 207. Regionally, the U.S. (+9%) rose strongly early in 207 on optimism around President Trump's pro-business stance but later faced headwinds amid tests of his administration's domestic agenda. Favorable election results in France and elsewhere suggested ebbing political uncertainty and near-term risk in the eurozone: Europe (+8%) roughly doubled the U.K. (+9%), as Britain faced more-mixed conditions ahead of its anticipated exit from the European Union. Despite continued central-bank easing, Japan (+0%) lagged the rest of the Asia Pacific group (+6%). Commodity-price volatility whipsawed resource-rich Canada (+4%), but the emerging-markets (EM) group (+8%) boomed in the year's first half. Looking at sectors, information technology (+2%) led the way, boosted by a surge among major U.S. and Chinese internet names. Health care (+6%), particularly in the U.S. and Europe, benefited from strong balance sheets and dividend yields, as well as rising demand for the sector's products and services. Conversely, energy (-8%) posted the sole negative return, with telecommunication services (+2%) and real estate (+0%) the next-closest laggards; the remaining sectors clustered closer to the index result. Amid a decline in long-term interest rates and solid demand for new bond issues the past six months, the Bloomberg Barclays U.S. Aggregate Bond Index rose 2.27%. Longer rates fell for much of the period, influenced by diminished expectations for U.S. fiscal stimulus, softer inflation data and renewed oil-price weakness. As expected, the U.S. Federal Reserve raised its target rate by a quarter point in June, the third such hike in as many quarters, which served to help flatten the yield curve. Within the Bloomberg Barclays index, investment-grade corporate credit, up.80%, led major market segments; U.S. Treasuries rose just.87%. Outside the index, most riskier, non-core fixed-income segments, including EM and U.S. high-yield debt, led the broader market, whereas inflation-protected bonds lagged. BROAD ASSET CLASS RETURNS (%) PERIOD ENDING JUNE 0, 207 P e r f o r m a n c e Best Worst Dispersion of Returns* Calendar- Returns Average Annual Cumulative Mos Mos Source: FMRCo., periods greater than one year are annualized *Difference between best- and worst-performing asset classes over the given time period You cannot invest directly in an index. Past performance is no guarantee of future results. U.S. Equities - Dow Jones U.S. Total Stock Market Index, Non-U.S. Developed-Markets Equities - MSCI World ex USA Net Mass, Emerging-Markets Equities - MSCI Emerging Markets Index, Commodities - Bloomberg Commodity Index Total Return, High-Yield Debt - The BofA Merrill Lynch U.S. High Yield Constrained Index, Floating-Rate Debt - S&P/LSTA Leveraged Performing Loan Index, Emerging-Markets Debt - J.P. Morgan Emerging Markets Bond Index Global, Real Estate Debt - Fidelity Real Estate Income Composite Index, Investment-Grade Debt - Bloomberg Barclays U.S. Aggregate Bond Index, Inflation- Protected Debt - Bloomberg Barclays U.S. -0 Treasury Inflation-Protected Securities (TIPS) Index (Series-L), Short-Term Debt - Bloomberg Barclays U.S. Month Treasury Bellwether Index U.S. Equities Non-U.S. Developed-Markets Equities Emerging-Markets Equities Commodities High-Yield Debt Floating-Rate Debt Emerging-Markets Debt Real Estate Debt Investment-Grade Debt Inflation-Protected Debt Short-Term Debt 2 For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.

3 Q&A Andrew Dierdorf Co-Manager Fund Facts Brett Sumsion Co-Manager VIP Freedom Fund Start Date Size (in millions) Income 04/26/200 $ /26/200 $ /26/200 $ /26/200 $ /26/200 $ /26/200 $ /26/200 $29. Investment Approach Fidelity VIP Freedom Funds SM (the Funds) are designed so that the target date referenced in the Fund name is the approximate year when we expect investors to retire and begin gradually withdrawing their investment. Each of the Funds seeks high total return with a secondary objective of principal preservation. Except for Fidelity VIP Freedom Income SM, each Fund's asset allocation strategy becomes increasingly conservative as it approaches its target retirement date and beyond. Ultimately, the Funds are expected to merge with Fidelity VIP Freedom Income SM. The Funds employ a robust investment process focused on helping investors solve the challenge of investing through retirement by leveraging the depth and strength of Fidelity's investment research and resources. An interview with Co- Managers Andrew Dierdorf and Brett Sumsion Q: Brett, how did VIP Freedom Funds perform for the six months ending June 0, 207 B.S. The Funds' share classes posted gains ranging from about % for VIP Freedom Income to roughly % for VIP Freedom 200. Versus its respective Composite index, VIP Freedom Income led by about a percentage point; VIP Freedom 200, by more than 2 percentage points. The Funds also generally finished ahead of their respective peer group averages. Looking back a full year, our performance and relative outperformance was even stronger, with the Funds logging absolute gains of between 6% and 8% that, again, generally outperformed peer averages. (For specific Fund results, please refer to the Fiscal Performance Summary.) Q: Would you please describe the U.S. stockmarket environment the past six months B.S. The bellwether S&P 00 returned 9.4% this period, surging early on amid optimism for President Trump's probusiness agenda. Equity markets leveled off in March, though, as the fledgling administration faced tests of its domestic agenda. The S&P 00 reacted with uncertainty to efforts by Congress to repeal or replace the Affordable Care Act (ACA), but then turned upward through June 0. Among sectors, technology (+7%) fared best, soaring as a handful of major index names posted stellar returns. Health care (+6%) saw an upsurge following the ACA's reprieve. Financials (+7%), though, lagged because sentiment regarding the potential for deregulation and lower taxes faded as the White House turned attention to other initiatives. Rising interest rates hurt so-called "bond proxy" or income-oriented sectors such as real estate (+6%) and telecom services (-%), the latter hampered further by increased competition. Lastly, lower oil prices sent energy (-%) to the bottom of the sector performance rankings. In a stark reversal from 206, growth-oriented stocks handily topped their value counterparts for the first half of 207, according to FTSE Russell; also, large-cap stocks nearly doubled the gain of small-cap stocks. For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.

4 Q: Andrew, how did allocation decisions affect relative performance in the first half of 207 A.D. Versus Composite indexes, our top-down strategy of underweighting fixed-income assets continued to bear fruit. Among equities, overweighting the DM and, in particular, EM asset classes contributed additional value. That said, while favoring non-u.s. over U.S. equity was the correct decision, our U.S. tilt toward value-oriented and broader-cap investments detracted from relative results. Among our fixed-income allocations, I'll note that the highyield asset class outperformed the Bloomberg Barclays bond index. Q: What would you highlight with regard to the Funds' underlying holdings A.D The bulk of our relative outperformance was driven by successes among the Funds' underlying managers. In the U.S. equity sleeve, large-cap growth strategies added most to relative results, most notably VIP Growth (+20%), which tends to emphasize larger stocks and technology-related names, as does VIP Contrafund (+2%), another strong contributor. Among non-u.s. equities, VIP Overseas (+9%) and VIP Emerging Markets (+2%) well outpaced their specific benchmarks and added substantial value. Among our fixed-income investments, VIP Investment Grade Bond (+%) led the Bloomberg Barclays bond index, as did VIP High Income (+4%), though the latter slightly lagged its asset-class benchmark. Indeed, across all underlying holdings, from a selection standpoint, only the U.S. equity sleeve's VIP Growth & Income (+6%) detracted notably; the manager's valuation-conscious investment approach was hampered by a market that favored an increasingly narrow slice of growth companies. modestly reduced the fixed-income underweighting although it remains by far the Funds' largest variance from Composites. We decreased the Funds' allocation to highyield bonds and we added exposure to short-term debt. While past performance does not guarantee future results, it was gratifying to see a general affirmation of our activemanagement philosophy. In constructing multi-asset-class portfolios, we believe the main driver of positive outcomes is strategic asset allocation actively decided, skillfully applied. Active management among underlying investments offers additional potential to outperform indexes, and we think the market environment going forward may provide more opportunity for active managers. We believe the long-term power of incremental and abovebenchmark compounding returns may help shareholders with their most important life goals. We remain committed to ongoing excellence in our targetdate strategies, providing client-focused solutions supported by deep capabilities, expertise and resources across all aspects of the investment process. We believe VIP Freedom Funds' dynamic and diversified investment strategy can provide participants with an effective approach to retirement saving. Q: What is your outlook as of June 0 A.D. In our view, overall potential future risks include a trend toward a reversal in globalization; market volatility as central banks evaluate policy; and a rapidly strengthening U.S. dollar. In addition, we continue to monitor China's economy as well as a number of geopolitical stresses. Later, I'll dig more deeply into some of the underpinnings of this outlook and how it affects the VIP Freedom Funds' strategic and active positioning. Among other changes and in response to our evolving capital-markets views, this period we gradually increased the Funds' overweighting to non-u.s. DM equity. We also 4 For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.

5 Andrew Dierdorf on positioning: "Ongoing structural shifts are reflected via our quantitative and qualitative assessments for how to position the strategic glide path for VIP Freedom Funds. Similarly, our capital-markets views inform each Fund's active positioning relative to its specific glide path as we work to exploit our active allocation tools. Using what we call a 'gradual contrarian' approach, we tilt the Funds toward where we think they could be rewarded for taking risk over a one- to three-year horizon. To evaluate opportunities, we synthesize information from across Fidelity and through four lenses: Macro Environment: We believe the U.S. economy may be later in the business cycle than non-u.s. DM and EM economies. Recent market performance indicates higher expectations for U.S. growth. Credit conditions are tightening, but we believe employment gains and income expectations should allow continued expansion. We expect Fed tightening to remain gradual, and we see potential for rising inflation. The cyclical path of most DM economies could depend largely on the effectiveness of fiscal and monetary policy. Despite signs of stabilization, we think China still faces cyclical headwinds and remains a risk. Stabilization there has benefited other EM and the export sectors of DM economies. Valuation: We view U.S. equities as expensive and EM equity as discounted versus DM equity. Market Sentiment: Often a contrarian indicator, market sentiment remains relatively bearish on commodities and neutral with regard to EM equity. Bottom-Up: Research indicates U.S. corporate earnings remain strong, despite margin pressure. "Our strategic and active asset allocation decisions are intended to add value versus each Fund's Composite index over a full market cycle. Regardless of economic and market conditions, we continue to evaluate and enhance our investment process in the best interest of participants, balancing risk and reward in the context of the Funds' focus on delivering risk-adjusted returns consistent with the needs of retirement investors." For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.

6 VIP Freedom Income ASSET ALLOCATION PERFORMANCE SUMMARY Asset Class DOMESTIC EQUITY FUNDS INTERNATIONAL EQUITY FUNDS BOND FUNDS SHORT-TERM FUNDS & OTHER ASSETS INVESTED ASSETS SUBTOTALS Benchmark Average Relative DJ US Total Stk Mkt -0.9% 6 MSCI AC Wld exus (Net MA) BBgBarc U.S. Agg Bond Relative Contribution (basis points)*.% % 26 BBgBarc M t-bill.8% -7 FID FF Income Comp Idx 0.0% 27 NET EXPENSES Total Value Added 2 * basis point = 0.0%. 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. ASSET ALLOCATION Asset Class Six Domestic Equity Funds.0% 6.26% Equity Funds.0% 6.26% International Equity Funds.8% 0.7% Developed-Markets Equity Funds 6.48%.62% Emerging-Markets Equity Funds 4.70% 4.6% Bond Funds 4.27% 42.9% Investment-Grade Bond Funds 9.27% 9.0% High-Yield Bond Funds 2.00%.86% Short-Term Funds & Net Other Assets 2.4% 0.66% 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. FUND HOLDINGS BY ASSET CLASS Holding Six Domestic Equity Funds.0% 6.26% Equity Funds.0% 6.26% VIP Growth & Income - IC.%.44% VIP Equity-Income - IC 2.7%.0% VIP Growth - IC 2.67% 2.8% VIP Contrafund - IC 2.62% 2.84% VIP Value - IC 2.04% 2.22% VIP Value Strategies - IC.00%.08% VIP Mid Cap - IC 0.77% 0.82% International Equity Funds.8% 0.7% Developed-Markets Equity Funds 6.48%.62% Holding Six VIP Overseas - IC 6.48%.62% Emerging-Markets Equity Funds 4.70% 4.6% VIP Emerging Mkts - IC 4.70% 4.6% Bond Funds 4.27% 42.9% Investment-Grade Bond Funds 9.27% 9.0% VIP Investment Grd Bd -IC 9.27% 9.0% High-Yield Bond Funds 2.00%.86% VIP High Income - IC 2.00%.86% Short-Term Funds & Net Other Assets 2.4% 0.66% VIP Government MM - IC 2.4% 0.6% NET OTHER ASSETS 0.0% -0.00% 6 For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.

7 VIP Freedom Income (continued) TARGET ASSET ALLOCATION Current 00% 80% 60% 40% 20% 0% YEARS TO RETIREMENT RETIREMENT YEARS Source: FMRCo. Domestic Equity Funds International Equity Funds Bond Funds Short-Term Funds Fidelity VIP Freedom Funds invest in a diversified mix of Fidelity domestic equity, international equity, bond, and short-term funds, many of which are managed exclusively for this purpose. As the chart above shows, Freedom Funds follow an asset allocation strategy that becomes increasingly more conservative as the target date approaches and passes. Freedom Funds are generally expected to reach their most conservative allocation 0 9 years after the target date. Future target allocations for the Freedom Fund featured above may differ from this approximate illustration. 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 9 /2, may be subject to a 0% 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. Performance and disclosure information continued on next page. 7 For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.

8 VIP Freedom Income (continued) Fiscal periods ending June 0, 207 Cumulative Annualized Total Returns for the Fund 6 Month YTD 0 / LOF VIP Freedom Income - Initial Class Gross Expense Ratio: 0.46% 2 4.8% 4.8% 6.%.% 4.27%.9% Bloomberg Barclays U.S. Aggregate Bond Index 2.27% 2.27% -0.% 2.48% 2.2% 4.48% Fidelity Freedom Income Composite Index.6%.6% 4.6% 2.89%.89%.7% Morningstar Insurance Target-Date Retirement 4.9% 4.9%.92%.8% 4.44%.69% Life of Fund (LOF) if performance is less than 0 years. Fund inception date: 04/26/ 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. Fiscal periods ending June 0, 207 Total Returns for the Variable Subaccount** Annualized Cumulative Annualized New York Only: 0 /Life 6 Month YTD 0 /Life of Subaccount Fidelity Retirement Reserves A.0% 4.4% 4.4%.0% 2.2%.4%.0% Fidelity Retirement Reserves - Subaccount Inception: July 0, 200; New York Only Inception: July 0, 200. Fidelity Retirement Reserves' underlying fund options are Initial Class fund offerings. A In NY, Retirement Reserves * 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 $0 maintenance fee which applies to contracts where purchase payments less any withdrawals are less than $2,000. 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. 8 For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.

9 VIP Freedom 200 ASSET ALLOCATION PERFORMANCE SUMMARY Asset Class DOMESTIC EQUITY FUNDS INTERNATIONAL EQUITY FUNDS BOND FUNDS SHORT-TERM FUNDS & OTHER ASSETS INVESTED ASSETS SUBTOTALS Benchmark Average Relative Relative Contribution (basis points)* DJ US Total Stk Mkt -0.8% MSCI AC Wld exus (Net MA) BBgBarc U.S. Agg Bond.8% 22-4.% 0 BBgBarc M t-bill.6% -6 FID FF 200 Comp Idx 0.0% 7 NET EXPENSES Total Value Added 7 * basis point = 0.0%. 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. ASSET ALLOCATION Asset Class Six Domestic Equity Funds 22.42% 24.27% Equity Funds 22.42% 24.27% International Equity Funds 4.9%.86% Developed-Markets Equity Funds 8.89% 8.29% Emerging-Markets Equity Funds.69%.6% Bond Funds 7.0% 8.79% Investment-Grade Bond Funds.0% 4.94% High-Yield Bond Funds 2.00%.8% Short-Term Funds & Net Other Assets 2.49% 2.08% 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. FUND HOLDINGS BY ASSET CLASS Holding Six Domestic Equity Funds 22.42% 24.27% Equity Funds 22.42% 24.27% VIP Growth & Income - IC 4.7%.% VIP Equity-Income - IC 4.% 4.0% VIP Growth - IC.99% 4.26% VIP Contrafund - IC.9% 4.24% VIP Value - IC.0%.% VIP Value Strategies - IC.49%.60% VIP Mid Cap - IC.%.22% International Equity Funds 4.9%.86% Developed-Markets Equity Funds 8.89% 8.29% Holding Six VIP Overseas - IC 8.89% 8.29% Emerging-Markets Equity Funds.69%.6% VIP Emerging Mkts - IC.69%.6% Bond Funds 7.0% 8.79% Investment-Grade Bond Funds.0% 4.94% VIP Investment Grd Bd -IC.0% 4.94% High-Yield Bond Funds 2.00%.8% VIP High Income - IC 2.00%.8% Short-Term Funds & Net Other Assets 2.49% 2.08% VIP Government MM - IC 2.0% 2.0% NET OTHER ASSETS 0.0% 0.00% 9 For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.

10 VIP Freedom 200 (continued) TARGET ASSET ALLOCATION Current 00% 80% 60% 40% 20% 0% YEARS TO RETIREMENT RETIREMENT YEARS Source: FMRCo. Domestic Equity Funds International Equity Funds Bond Funds Short-Term Funds Fidelity VIP Freedom Funds invest in a diversified mix of Fidelity domestic equity, international equity, bond, and short-term funds, many of which are managed exclusively for this purpose. As the chart above shows, Freedom Funds follow an asset allocation strategy that becomes increasingly more conservative as the target date approaches and passes. Freedom Funds are generally expected to reach their most conservative allocation 0 9 years after the target date. Future target allocations for the Freedom Fund featured above may differ from this approximate illustration. 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 9 /2, may be subject to a 0% 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. Performance and disclosure information continued on next page. 0 For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.

11 VIP Freedom 200 (continued) Fiscal periods ending June 0, 207 Cumulative Annualized Total Returns for the Fund 6 Month YTD 0 / LOF VIP Freedom Initial Class Gross Expense Ratio: 0.% % 6.24% 8.62%.7%.88% 4.0% Bloomberg Barclays U.S. Aggregate Bond Index 2.27% 2.27% -0.% 2.48% 2.2% 4.48% Fidelity Freedom 200 Composite Index 4.64% 4.64% 6.46%.4%.%.90% Morningstar Insurance Target-Date % 6.4% 8.62%.6% 6.22% 4.2% Life of Fund (LOF) if performance is less than 0 years. Fund inception date: 04/26/ 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. Fiscal periods ending June 0, 207 Total Returns for the Variable Subaccount** Annualized Cumulative Annualized New York Only: 0 /Life 6 Month YTD 0 /Life of Subaccount Fidelity Retirement Reserves A.26%.82%.82% 7.7% 2.92%.0%.26% Fidelity Retirement Reserves - Subaccount Inception: July 0, 200; New York Only Inception: July 0, 200. Fidelity Retirement Reserves' underlying fund options are Initial Class fund offerings. A In NY, Retirement Reserves * 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 $0 maintenance fee which applies to contracts where purchase payments less any withdrawals are less than $2,000. 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. For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.

12 VIP Freedom 200 ASSET ALLOCATION PERFORMANCE SUMMARY Asset Class DOMESTIC EQUITY FUNDS INTERNATIONAL EQUITY FUNDS BOND FUNDS SHORT-TERM FUNDS & OTHER ASSETS INVESTED ASSETS SUBTOTALS Benchmark Average Relative Relative Contribution (basis points)* DJ US Total Stk Mkt -0.8% 6 MSCI AC Wld exus (Net MA) BBgBarc U.S. Agg Bond 4.% 9-4.% 2 BBgBarc M t-bill.% - FID FF 200 Comp Idx 0.0% 82 NET EXPENSES Total Value Added 7 * basis point = 0.0%. 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. ASSET ALLOCATION Asset Class Six Domestic Equity Funds 28.6% 0.4% Equity Funds 28.6% 0.4% International Equity Funds 7.47% 6.77% Developed-Markets Equity Funds 0.90% 0.% Emerging-Markets Equity Funds 6.7% 6.4% Bond Funds 4.06%.2% Investment-Grade Bond Funds 2.07%.48% High-Yield Bond Funds.99%.8% Short-Term Funds & Net Other Assets 9.86% 7.46% 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. FUND HOLDINGS BY ASSET CLASS Holding Six Domestic Equity Funds 28.6% 0.4% Equity Funds 28.6% 0.4% VIP Growth & Income - IC 6.0% 6.44% VIP Equity-Income - IC.2%.64% VIP Growth - IC.0%.4% VIP Contrafund - IC 4.99%.2% VIP Value - IC.89% 4.6% VIP Value Strategies - IC.9% 2.0% VIP Mid Cap - IC.47%.4% International Equity Funds 7.47% 6.77% Developed-Markets Equity Funds 0.90% 0.% Holding Six VIP Overseas - IC 0.90% 0.% Emerging-Markets Equity Funds 6.7% 6.4% VIP Emerging Mkts - IC 6.7% 6.4% Bond Funds 4.06%.2% Investment-Grade Bond Funds 2.07%.48% VIP Investment Grd Bd -IC 2.07%.48% High-Yield Bond Funds.99%.8% VIP High Income - IC.99%.8% Short-Term Funds & Net Other Assets 9.86% 7.46% VIP Government MM - IC 9.86% 7.47% NET OTHER ASSETS -0.0% -0.0% 2 For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.

13 VIP Freedom 200 (continued) TARGET ASSET ALLOCATION Current 00% 80% 60% 40% 20% 0% YEARS TO RETIREMENT RETIREMENT YEARS Source: FMRCo. Domestic Equity Funds International Equity Funds Bond Funds Short-Term Funds Fidelity VIP Freedom Funds invest in a diversified mix of Fidelity domestic equity, international equity, bond, and short-term funds, many of which are managed exclusively for this purpose. As the chart above shows, Freedom Funds follow an asset allocation strategy that becomes increasingly more conservative as the target date approaches and passes. Freedom Funds are generally expected to reach their most conservative allocation 0 9 years after the target date. Future target allocations for the Freedom Fund featured above may differ from this approximate illustration. 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 9 /2, may be subject to a 0% 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. Performance and disclosure information continued on next page. For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.

14 VIP Freedom 200 (continued) Fiscal periods ending June 0, 207 Cumulative Annualized Total Returns for the Fund 6 Month YTD 0 / LOF VIP Freedom Initial Class Gross Expense Ratio: 0.4% 2 7.4% 7.4% 0.4% 4.2% 7.8% 4.88% Bloomberg Barclays U.S. Aggregate Bond Index 2.27% 2.27% -0.% 2.48% 2.2% 4.48% Fidelity Freedom 200 Composite Index.48%.48% 8.% 4.0% 6.86% 4.74% Morningstar Insurance Target-Date % 6.4% 8.62%.6% 6.22% 4.2% Life of Fund (LOF) if performance is less than 0 years. Fund inception date: 04/26/ 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. Fiscal periods ending June 0, 207 Total Returns for the Variable Subaccount** Annualized Cumulative Annualized New York Only: 0 /Life 6 Month YTD 0 /Life of Subaccount Fidelity Retirement Reserves A 4.04% 6.9% 6.9% 9.2%.9% 6.% 4.04% Fidelity Retirement Reserves - Subaccount Inception: July 0, 200; New York Only Inception: July 0, 200. Fidelity Retirement Reserves' underlying fund options are Initial Class fund offerings. A In NY, Retirement Reserves * 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 $0 maintenance fee which applies to contracts where purchase payments less any withdrawals are less than $2,000. 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. 4 For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.

15 VIP Freedom 20 ASSET ALLOCATION PERFORMANCE SUMMARY Asset Class DOMESTIC EQUITY FUNDS INTERNATIONAL EQUITY FUNDS BOND FUNDS SHORT-TERM FUNDS & OTHER ASSETS INVESTED ASSETS SUBTOTALS Benchmark Average Relative Relative Contribution (basis points)* DJ US Total Stk Mkt -0.9% 20 MSCI AC Wld exus (Net MA) BBgBarc U.S. Agg Bond 4.% 2-4.6% BBgBarc M t-bill.% - FID FF 20 Comp Idx 0.0% 202 NET EXPENSES Total Value Added 94 * basis point = 0.0%. 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. ASSET ALLOCATION Asset Class Six Domestic Equity Funds 4.9% 6.76% Equity Funds 4.9% 6.76% International Equity Funds 20.20% 9.0% Developed-Markets Equity Funds 2.96% 2.46% Emerging-Markets Equity Funds 7.24% 7.04% Bond Funds 0.4%.66% Investment-Grade Bond Funds 28.44% 27.8% High-Yield Bond Funds.99%.84% Short-Term Funds & Net Other Assets 4.46% 2.08% 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. FUND HOLDINGS BY ASSET CLASS Holding Six Domestic Equity Funds 4.9% 6.76% Equity Funds 4.9% 6.76% VIP Growth & Income - IC 7.% 7.77% VIP Equity-Income - IC 6.40% 6.8% VIP Growth - IC 6.22% 6.4% VIP Contrafund - IC 6.08% 6.42% VIP Value - IC 4.74%.02% VIP Value Strategies - IC 2.% 2.4% VIP Mid Cap - IC.80%.8% International Equity Funds 20.20% 9.0% Developed-Markets Equity Funds 2.96% 2.46% Holding Six VIP Overseas - IC 2.96% 2.46% Emerging-Markets Equity Funds 7.24% 7.04% VIP Emerging Mkts - IC 7.24% 7.04% Bond Funds 0.4%.66% Investment-Grade Bond Funds 28.44% 27.8% VIP Investment Grd Bd -IC 28.44% 27.8% High-Yield Bond Funds.99%.84% VIP High Income - IC.99%.84% Short-Term Funds & Net Other Assets 4.46% 2.08% VIP Government MM - IC 4.47% 2.% NET OTHER ASSETS -0.00% -0.0% For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.

16 VIP Freedom 20 (continued) TARGET ASSET ALLOCATION Current 00% 80% 60% 40% 20% 0% YEARS TO RETIREMENT RETIREMENT YEARS Source: FMRCo. Domestic Equity Funds International Equity Funds Bond Funds Short-Term Funds Fidelity VIP Freedom Funds invest in a diversified mix of Fidelity domestic equity, international equity, bond, and short-term funds, many of which are managed exclusively for this purpose. As the chart above shows, Freedom Funds follow an asset allocation strategy that becomes increasingly more conservative as the target date approaches and passes. Freedom Funds are generally expected to reach their most conservative allocation 0 9 years after the target date. Future target allocations for the Freedom Fund featured above may differ from this approximate illustration. 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 9 /2, may be subject to a 0% 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. 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.

17 VIP Freedom 20 (continued) Fiscal periods ending June 0, 207 Cumulative Annualized Total Returns for the Fund 6 Month YTD 0 / LOF VIP Freedom 20 - Initial Class Gross Expense Ratio: 0.7% 2 8.2% 8.2% 2.2% 4.67% 7.7% 4.9% S&P 00 Index 9.4% 9.4% 7.90% 9.6% 4.6% 7.8% Fidelity Freedom 20 Composite Index 6.% 6.% 9.8% 4.% 7.4% 4.84% Morningstar Insurance Target-Date % 7.8% 0.96% 4.42% 7.46% 4.68% Life of Fund (LOF) if performance is less than 0 years. Fund inception date: 04/26/ 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. Fiscal periods ending June 0, 207 Total Returns for the Variable Subaccount** Annualized Cumulative Annualized New York Only: 0 /Life 6 Month YTD 0 /Life of Subaccount Fidelity Retirement Reserves A 4.% 7.89% 7.89%.2%.84% 6.84% 4.% Fidelity Retirement Reserves - Subaccount Inception: July 0, 200; New York Only Inception: July 0, 200. Fidelity Retirement Reserves' underlying fund options are Initial Class fund offerings. A In NY, Retirement Reserves * 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 $0 maintenance fee which applies to contracts where purchase payments less any withdrawals are less than $2,000. 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.

18 VIP Freedom 2020 ASSET ALLOCATION PERFORMANCE SUMMARY Asset Class DOMESTIC EQUITY FUNDS INTERNATIONAL EQUITY FUNDS BOND FUNDS SHORT-TERM FUNDS & OTHER ASSETS INVESTED ASSETS SUBTOTALS Benchmark Average Relative Relative Contribution (basis points)* DJ US Total Stk Mkt -0.7% 2 MSCI AC Wld exus (Net MA) BBgBarc U.S. Agg Bond 4.2% 62-4.% 7 BBgBarc M t-bill.% -4 FID FF 2020 Comp Idx 0.0% 28 NET EXPENSES Total Value Added 207 * basis point = 0.0%. 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. ASSET ALLOCATION Asset Class Six Domestic Equity Funds 9.49% 4.08% Equity Funds 9.49% 4.08% International Equity Funds 22.0% 2.2% Developed-Markets Equity Funds 4.8%.8% Emerging-Markets Equity Funds 7.72% 7.49% Bond Funds 27.88% 29.24% Investment-Grade Bond Funds 2.89% 2.40% High-Yield Bond Funds.99%.84% Short-Term Funds & Net Other Assets 0.% 8.6% 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. FUND HOLDINGS BY ASSET CLASS Holding Six Domestic Equity Funds 9.49% 4.08% Equity Funds 9.49% 4.08% VIP Growth & Income - IC 8.0% 8.68% VIP Equity-Income - IC 7.24% 7.6% VIP Growth - IC 7.04% 7.20% VIP Contrafund - IC 6.88% 7.8% VIP Value - IC.7%.6% VIP Value Strategies - IC 2.6% 2.72% VIP Mid Cap - IC 2.0% 2.07% International Equity Funds 22.0% 2.2% Developed-Markets Equity Funds 4.8%.8% Holding Six VIP Overseas - IC 4.8%.8% Emerging-Markets Equity Funds 7.72% 7.49% VIP Emerging Mkts - IC 7.72% 7.49% Bond Funds 27.88% 29.24% Investment-Grade Bond Funds 2.89% 2.40% VIP Investment Grd Bd -IC 2.89% 2.40% High-Yield Bond Funds.99%.84% VIP High Income - IC.99%.84% Short-Term Funds & Net Other Assets 0.% 8.6% VIP Government MM - IC 0.4% 8.9% NET OTHER ASSETS -0.0% -0.02% 8 For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.

19 VIP Freedom 2020 (continued) TARGET ASSET ALLOCATION Current 00% 80% 60% 40% 20% 0% YEARS TO RETIREMENT RETIREMENT YEARS Source: FMRCo. Domestic Equity Funds International Equity Funds Bond Funds Short-Term Funds Fidelity VIP Freedom Funds invest in a diversified mix of Fidelity domestic equity, international equity, bond, and short-term funds, many of which are managed exclusively for this purpose. As the chart above shows, Freedom Funds follow an asset allocation strategy that becomes increasingly more conservative as the target date approaches and passes. Freedom Funds are generally expected to reach their most conservative allocation 0 9 years after the target date. Future target allocations for the Freedom Fund featured above may differ from this approximate illustration. 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 9 /2, may be subject to a 0% 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. Performance and disclosure information continued on next page. 9 For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.

20 VIP Freedom 2020 (continued) Fiscal periods ending June 0, 207 Cumulative Annualized Total Returns for the Fund 6 Month YTD 0 / LOF VIP Freedom Initial Class Gross Expense Ratio: 0.60% % 9.07%.4% 4.9% 8.% 4.82% S&P 00 Index 9.4% 9.4% 7.90% 9.6% 4.6% 7.8% Fidelity Freedom 2020 Composite Index 6.90% 6.90% 0.96% 4.8% 8.07% 4.77% Morningstar Insurance Target-Date % 7.06% 0.2% 4.2% 7.4% 4.7% Life of Fund (LOF) if performance is less than 0 years. Fund inception date: 04/26/ 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. Fiscal periods ending June 0, 207 Total Returns for the Variable Subaccount** Annualized Cumulative Annualized New York Only: 0 /Life 6 Month YTD 0 /Life of Subaccount Fidelity Retirement Reserves A.99% 8.64% 8.64% 2.0% 4.% 7.47%.99% Fidelity Retirement Reserves - Subaccount Inception: July 0, 200; New York Only Inception: July 0, 200. Fidelity Retirement Reserves' underlying fund options are Initial Class fund offerings. A In NY, Retirement Reserves * 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 $0 maintenance fee which applies to contracts where purchase payments less any withdrawals are less than $2,000. 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. 20 For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.

21 VIP Freedom 202 ASSET ALLOCATION PERFORMANCE SUMMARY Asset Class DOMESTIC EQUITY FUNDS INTERNATIONAL EQUITY FUNDS BOND FUNDS SHORT-TERM FUNDS & OTHER ASSETS INVESTED ASSETS SUBTOTALS Benchmark Average Relative Relative Contribution (basis points)* DJ US Total Stk Mkt -0.8% 26 MSCI AC Wld exus (Net MA) BBgBarc U.S. Agg Bond 4.2% 7 -.% 44 BBgBarc M t-bill 2.% -2 FID FF 202 Comp Idx 0.0% 229 NET EXPENSES Total Value Added 22 * basis point = 0.0%. 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. ASSET ALLOCATION Asset Class Six Domestic Equity Funds 4.7% 4.4% Equity Funds 4.7% 4.4% International Equity Funds 2.86% 2.09% Developed-Markets Equity Funds.70%.8% Emerging-Markets Equity Funds 8.6% 7.9% Bond Funds 24.% 2.8% Investment-Grade Bond Funds 22.2% 22.02% High-Yield Bond Funds.99%.84% Short-Term Funds & Net Other Assets 8.06%.92% 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. FUND HOLDINGS BY ASSET CLASS Holding Six Domestic Equity Funds 4.7% 4.4% Equity Funds 4.7% 4.4% VIP Growth & Income - IC 9.% 9.4% VIP Equity-Income - IC 7.99% 8.6% VIP Growth - IC 7.76% 7.92% VIP Contrafund - IC 7.9% 7.89% VIP Value - IC.92% 6.7% VIP Value Strategies - IC 2.90% 2.98% VIP Mid Cap - IC 2.24% 2.28% International Equity Funds 2.86% 2.09% Developed-Markets Equity Funds.70%.8% Holding Six VIP Overseas - IC.70%.8% Emerging-Markets Equity Funds 8.6% 7.9% VIP Emerging Mkts - IC 8.6% 7.9% Bond Funds 24.% 2.8% Investment-Grade Bond Funds 22.2% 22.02% VIP Investment Grd Bd -IC 22.2% 22.02% High-Yield Bond Funds.99%.84% VIP High Income - IC.99%.84% Short-Term Funds & Net Other Assets 8.06%.92% VIP Government MM - IC 8.09%.92% NET OTHER ASSETS -0.0% -0.0% 2 For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.

22 VIP Freedom 202 (continued) TARGET ASSET ALLOCATION Current 00% 80% 60% 40% 20% 0% YEARS TO RETIREMENT RETIREMENT YEARS Source: FMRCo. Domestic Equity Funds International Equity Funds Bond Funds Short-Term Funds Fidelity VIP Freedom Funds invest in a diversified mix of Fidelity domestic equity, international equity, bond, and short-term funds, many of which are managed exclusively for this purpose. As the chart above shows, Freedom Funds follow an asset allocation strategy that becomes increasingly more conservative as the target date approaches and passes. Freedom Funds are generally expected to reach their most conservative allocation 0 9 years after the target date. Future target allocations for the Freedom Fund featured above may differ from this approximate illustration. 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 9 /2, may be subject to a 0% 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. Performance and disclosure information continued on next page. 22 For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.

23 VIP Freedom 202 (continued) Fiscal periods ending June 0, 207 Cumulative Annualized Total Returns for the Fund 6 Month YTD 0 / LOF VIP Freedom Initial Class Gross Expense Ratio: 0.62% % 9.76% 4.62%.9% 9.49%.28% S&P 00 Index 9.4% 9.4% 7.90% 9.6% 4.6% 7.8% Fidelity Freedom 202 Composite Index 7.46% 7.46% 2.%.% 9.27%.% Morningstar Insurance Target-Date % 8.79%.6%.02% 9.2% 4.87% Life of Fund (LOF) if performance is less than 0 years. Fund inception date: 04/26/ 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. Fiscal periods ending June 0, 207 Total Returns for the Variable Subaccount** Annualized Cumulative Annualized New York Only: 0 /Life 6 Month YTD 0 /Life of Subaccount Fidelity Retirement Reserves A 4.4% 9.2% 9.2%.7% 4.% 8.6% 4.4% Fidelity Retirement Reserves - Subaccount Inception: July 0, 200; New York Only Inception: July 0, 200. Fidelity Retirement Reserves' underlying fund options are Initial Class fund offerings. A In NY, Retirement Reserves * 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 $0 maintenance fee which applies to contracts where purchase payments less any withdrawals are less than $2,000. 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. 2 For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.

24 VIP Freedom 200 ASSET ALLOCATION PERFORMANCE SUMMARY Asset Class DOMESTIC EQUITY FUNDS INTERNATIONAL EQUITY FUNDS BOND FUNDS SHORT-TERM FUNDS & OTHER ASSETS INVESTED ASSETS SUBTOTALS Benchmark Average Relative Relative Contribution (basis points)* DJ US Total Stk Mkt -0.7% MSCI AC Wld exus (Net MA) BBgBarc U.S. Agg Bond 4.% % 49 BBgBarc M t-bill 2.0% - FID FF 200 Comp Idx 0.0% 26 NET EXPENSES Total Value Added 2 * basis point = 0.0%. 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. ASSET ALLOCATION Asset Class Six Domestic Equity Funds.2%.27% Equity Funds.2%.27% International Equity Funds 27.97% 27.0% Developed-Markets Equity Funds 8.76% 8.% Emerging-Markets Equity Funds 9.2% 8.97% Bond Funds 6.% 6.4% Investment-Grade Bond Funds 4.% 2.62% High-Yield Bond Funds.99%.8% Short-Term Funds & Net Other Assets 2.8% 0.78% 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. FUND HOLDINGS BY ASSET CLASS Holding Six Domestic Equity Funds.2%.27% Equity Funds.2%.27% VIP Growth & Income - IC.6%.69% VIP Equity-Income - IC 9.7% 0.24% VIP Growth - IC 9.46% 9.70% VIP Contrafund - IC 9.26% 9.66% VIP Value - IC 7.22% 7.% VIP Value Strategies - IC.4%.6% VIP Mid Cap - IC 2.74% 2.79% International Equity Funds 27.97% 27.0% Developed-Markets Equity Funds 8.76% 8.% Holding Six VIP Overseas - IC 8.76% 8.% Emerging-Markets Equity Funds 9.2% 8.97% VIP Emerging Mkts - IC 9.2% 8.97% Bond Funds 6.% 6.4% Investment-Grade Bond Funds 4.% 2.62% VIP Investment Grd Bd -IC 4.% 2.62% High-Yield Bond Funds.99%.8% VIP High Income - IC.99%.8% Short-Term Funds & Net Other Assets 2.8% 0.78% VIP Government MM - IC 2.7% 0.78% NET OTHER ASSETS -0.0% -0.0% 24 For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.

25 VIP Freedom 200 (continued) TARGET ASSET ALLOCATION Current 00% 80% 60% 40% 20% 0% YEARS TO RETIREMENT RETIREMENT YEARS Source: FMRCo. Domestic Equity Funds International Equity Funds Bond Funds Short-Term Funds Fidelity VIP Freedom Funds invest in a diversified mix of Fidelity domestic equity, international equity, bond, and short-term funds, many of which are managed exclusively for this purpose. As the chart above shows, Freedom Funds follow an asset allocation strategy that becomes increasingly more conservative as the target date approaches and passes. Freedom Funds are generally expected to reach their most conservative allocation 0 9 years after the target date. Future target allocations for the Freedom Fund featured above may differ from this approximate illustration. 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 9 /2, may be subject to a 0% 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. Performance and disclosure information continued on next page. 2 For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.

26 VIP Freedom 200 (continued) Fiscal periods ending June 0, 207 Cumulative Annualized Total Returns for the Fund 6 Month YTD 0 / LOF VIP Freedom Initial Class Gross Expense Ratio: 0.66% 2.6%.6% 7.60%.74% 0.2%.09% S&P 00 Index 9.4% 9.4% 7.90% 9.6% 4.6% 7.8% Fidelity Freedom 200 Composite Index 8.74% 8.74% 4.9%.78% 0.08%.9% Morningstar Insurance Target-Date % 8.82%.% 4.79% 8.84% 4.47% Life of Fund (LOF) if performance is less than 0 years. Fund inception date: 04/26/ 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. Fiscal periods ending June 0, 207 Total Returns for the Variable Subaccount** Annualized Cumulative Annualized New York Only: 0 /Life 6 Month YTD 0 /Life of Subaccount Fidelity Retirement Reserves A 4.24% 0.9% 0.9% 6.66% 4.89% 9.% 4.24% Fidelity Retirement Reserves - Subaccount Inception: July 0, 200; New York Only Inception: July 0, 200. Fidelity Retirement Reserves' underlying fund options are Initial Class fund offerings. A In NY, Retirement Reserves * 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 $0 maintenance fee which applies to contracts where purchase payments less any withdrawals are less than $2,000. 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. 26 For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.

27 Definitions and Important Information Fidelity Income Advantage (policy form nos. FVIA-9200, et al. and FVIA-9900, et al.), Fidelity Retirement Reserves (policy form no. NRR-9600, et al.), Fidelity Personal Retirement Annuity (policy form no. DVA-200, et al.), Fidelity Freedom Lifetime Income (policy form nos. FFLI-Q-200, et al. and FFLI-NQ-200, et al.), and Fidelity Growth and Guaranteed Income (policy form no. DVA-GWB- 2007, et al.) are issued by Fidelity Investments Life Insurance Company, 00 Salem Street, Smithfield, RI 0297, and for NY residents, Income Advantage (policy form nos. EFVIA-9200, et al. and EFVIA-9900, et al.), Retirement Reserves (policy form no. EVA-900, et al.), Personal Retirement Annuity (policy form no. EDVA-200, et al.), Fidelity Freedom Lifetime Income (policy form nos. EFLI-Q-200, et al. and EFLI-NQ-200, 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. BROAD ASSET CLASS RETURNS A graphical representation of historical market performance and the variations in returns among asset classes, as represented by the following indexes: Bloomberg Barclays U.S. -0 Treasury Inflation-Protected Securities (TIPS) Index (Series-L) is a market value-weighted index that measures the performance of inflation-protected securities issued by the U.S. Treasury that have a remaining average life between and 0 years. Bloomberg Barclays U.S. Month Treasury Bellwether Index is a market value-weighted index of investment-grade fixed-rate public obligations of the U.S. Treasury with maturities of months, excluding zero coupon strips. Bloomberg Barclays U.S. Aggregate Bond Index is a broad-based, market-value-weighted benchmark that measures the performance of the investment grade, U.S. dollardenominated, fixed-rate taxable bond market. Sectors in the index include Treasuries, governmentrelated and corporate securities, MBS (agency fixed-rate and hybrid ARM pass-throughs), ABS, and CMBS. BofA Merrill Lynch U.S. High Yield Constrained Index is a modified market capitalization weighted index of US dollar denominated below investment grade corporate debt publicly issued in the US domestic market. Qualifying securities must have a below investment grade rating (based on an average of Moody's, S&P and Fitch). The country of risk of qualifying issuers must be an FX-G0 member, a Western European nation, or a territory of the US or a Western European nation. The FX-G0 includes all Euro members, the US, Japan, the UK, Canada, Australia, New Zealand, Switzerland, Norway and Sweden. In addition, qualifying securities must have at least one year remaining to final maturity, a fixed coupon schedule and at least $00 million in outstanding face value. Defaulted securities are excluded. The index contains all securities of The BofA Merrill Lynch US High Yield Index but caps issuer exposure at 2%. Bloomberg Commodity Index Total Return measures the performance of the commodities market. It consists of exchangetraded futures contracts on physical commodities that are weighted to account for the economic significance and market liquidity of each commodity. Dow Jones U.S. Total Stock Market Index is a float-adjusted market capitalization weighted index of all equity securities of U.S. headquartered companies with readily available price data. Fidelity Real Estate Income Composite Index is a customized blend of unmanaged indexes, weighted as follows: The BofA Merrill Lynch US Real Estate Index - 40%; MSCI REIT Preferred Index - 40%; and FTSE NAREIT All REITs Index - 20%. J.P. Morgan Emerging Markets Bond Index Global tracks total returns for the U.S. dollar-denominated debt instruments issued by Emerging Market sovereign and quasi-sovereign entities, such as Brady bonds, loans, and Eurobonds. MSCI World ex USA Index is a market capitalization weighted index that is designed to measure the investable equity market performance for global investors of developed markets outside the United States. MSCI Emerging Markets Index is a market capitalization-weighted index that is designed to measure the investable equity market performance for global investors in emerging markets. S&P/LSTA Leveraged Performing Loan Index is a market valueweighted index designed to represent the performance of U.S. dollar-denominated institutional leveraged performing loan portfolios (excluding loans in payment default) using current market weightings, spreads and interest payments. FUND RISKS The fund is subject to risks resulting from the asset allocation decisions of the Investment Adviser. Pursuant to the Adviser's ability to use an active asset allocation strategy, investors may be subject to a different risk profile compared to the fund's neutral asset allocation strategy shown in its glide path. The fund is subject to the volatility of the financial markets, including that of equity and fixed income investments. Fixed income investments entail issuer default and credit risk, inflation risk, and interest rate risk (as interest rates rise, bond prices usually fall and vice versa). This effect is usually more pronounced for longer-term securities. No target date fund is considered a complete retirement program and there is no guarantee and single fund will provide sufficient retirement income at or through retirement. Principal invested is not guaranteed at any time, including at or after the funds' target dates. 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 You could lose money by investing in a money market fund. Although the fund seeks to preserve the value of your investment at $.00 per share, it cannot guarantee it will do so. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Fidelity Investments and its affiliates, the fund's sponsor, have no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time. Fidelity's government and U.S. Treasury money market funds will not 27

28 impose a fee upon the sale of your shares, nor temporarily suspend your ability to sell shares if the fund's weekly liquid assets fall below 0% of its total assets because of market conditions or other factors. 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. Bloomberg Barclays U.S. Aggregate Bond Index is a broad-based, market-value-weighted benchmark that measures the performance of the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market. Sectors in the index include Treasuries, governmentrelated and corporate securities, MBS (agency fixed-rate and hybrid ARM pass-throughs), ABS, and CMBS. Fidelity Freedom 200 Composite Index is a customized blend of the following unmanaged indexes: Dow Jones U.S. Total Stock Market Index; MSCI ACWI (All Country World Index) ex USA Index; Bloomberg Barclays U.S. Aggregate Bond Index; and Bloomberg Barclays U.S. Month Treasury Bellwether Index. The composition differed in periods prior to January, 204. The index weightings are adjusted monthly to reflect the fund's changing asset allocations. Fidelity Freedom 200 Composite Index is a customized blend of the following unmanaged indexes: Dow Jones U.S. Total Stock Market Index; MSCI ACWI (All Country World Index) ex USA Index; Bloomberg Barclays U.S. Aggregate Bond Index; and Bloomberg Barclays U.S. Month Treasury Bellwether Index. The composition differed in periods prior to January, 204. The index weightings are adjusted monthly to reflect the fund's changing asset allocations. Fidelity Freedom 20 Composite Index is a customized blend of the following unmanaged indexes: Dow Jones U.S. Total Stock Market Index; MSCI ACWI (All Country World Index) ex USA Index; Bloomberg Barclays U.S. Aggregate Bond Index; and Bloomberg Barclays U.S. Month Treasury Bellwether Index. The composition differed in periods prior to January, 204. The index weightings are adjusted monthly to reflect the fund's changing asset allocations. Fidelity Freedom 2020 Composite Index is a customized blend of the following unmanaged indexes: Dow Jones U.S. Total Stock Market Index; MSCI ACWI (All Country World Index) ex USA Index; Bloomberg Barclays U.S. Aggregate Bond Index; and Bloomberg Barclays U.S. Month Treasury Bellwether Index. The composition differed in periods prior to January, 204. The index weightings are adjusted monthly to reflect the fund's changing asset allocations. Fidelity Freedom 202 Composite Index is a customized blend of the following unmanaged indexes: Dow Jones U.S. Total Stock Market Index; MSCI ACWI (All Country World Index) ex USA Index; Bloomberg Barclays U.S. Aggregate Bond Index; and Bloomberg Barclays U.S. Month Treasury Bellwether Index. The composition differed in periods prior to January, 204. The index weightings are adjusted monthly to reflect the fund's changing asset allocations. Fidelity Freedom 200 Composite Index is a customized blend of the following unmanaged indexes: Dow Jones U.S. Total Stock Market Index; MSCI ACWI (All Country World Index) ex USA Index; Bloomberg Barclays U.S. Aggregate Bond Index; and Bloomberg Barclays U.S. Month Treasury Bellwether Index. The composition differed in periods prior to January, 204. The index weightings are adjusted monthly to reflect the fund's changing asset allocations. Fidelity Freedom Income Composite Index is a customized blend of the following unmanaged indexes: Dow Jones U.S. Total Stock Market Index; MSCI ACWI (All Country World Index) ex USA Index; Bloomberg Barclays U.S. Aggregate Bond Index; and Bloomberg Barclays U.S. Month Treasury Bellwether Index. The composition differed in periods prior to January, 204. The index weightings are adjusted monthly to reflect the fund's changing asset allocations. S&P 00 is a market-capitalization-weighted index of 00 common stocks chosen for market size, liquidity, and industry group representation to represent U.S. equity performance. MSCI ACWI (All Country World Index) Index is a marketcapitalization-weighted index that is designed to measure the investable equity market performance for global investors of developed and emerging markets. MORNINGSTAR INFORMATION 207 Morningstar, Inc. All rights reserved. The Morningstar information contained herein: () is proprietary to Morningstar and/or its content providers; (2) may not be copied or redistributed; and () 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. 28

29 Manager Facts Analyst (CFA) charterholder. Andrew Dierdorf is a portfolio manager in the Global Asset Allocation (GAA) group at Fidelity Investments. 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. Dierdorf is responsible for comanaging Fidelity's U.S. and Canadian target date portfolios, including Fidelity ClearPath s (both retail and institutional, since 200), Fidelity-managed 29 College Savings Plans (since 2007), Fidelity Income Replacement Funds (since 2009), Fidelity Freedom Funds (since 20), and FIAM Target Date Strategies (since 202). He is also a co-manager for the Fidelity Four-in-One Index Fund (since 2009). Previously, Mr. Dierdorf co-managed Fidelity Global Strategies Fund and Fidelity Tactical Strategies Fund until May 204. Prior to joining Fidelity in his current position in 2004, Mr. Dierdorf worked as an actuary at several insurance companies between 994 and He has been in the financial services industry since 99. Mr. Dierdorf earned his bachelor of science degree in statistics from the University of Delaware, where he also minored in economics. He is a Chartered Financial Analyst (CFA) charterholder, as well as a Fellow of the Society of Actuaries (FSA), Chartered Market Technician (CMT), and a Member of the American Academy of Actuaries (MAAA). Brett Sumsion is a portfolio manager on the Target Date team within the Global Asset Allocation (GAA) group at Fidelity Investments. 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. Sumsion is responsible for co-managing Fidelity's U.S. and Canadian target date portfolios, including Fidelity ClearPath s, Fidelitymanaged 29 College Savings Plans, Fidelity Income Replacement Funds, Fidelity Freedom Funds, and FIAM Target Date Strategies (all since 204). Prior to joining Fidelity in 204, Mr. Sumsion held various positions at DuPont Capital Management, Inc., including that of managing director of asset allocation from 2008 to 20 and portfolio manager from 200 to Previously, Mr. Sumsion worked at Strategis Financial Group, Inc., where he was chief executive officer from 2004 to 200 and vice president of asset allocation research from 200 to He has been in the investments industry since 200. Mr. Sumsion earned his bachelor of arts degree in economics from Brigham Young University and his master of business administration degree in finance from The Wharton School at the University of Pennsylvania. He is also a Chartered Financial 29 For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.

30 PORTFOLIO MANAGER Q&A AS OF SEPTEMBER 0, 207 PERFORMANCE SUMMARY: Quarter ending September 0, 207 VIP Freedom Income Total Returns for the Variable Subaccount New York Only: 0 /Life Annualized 0 /Life Fidelity Retirement Reserves.0%.4%.9%.6%.0% VIP Freedom 200 Total Returns for the Variable Subaccount New York Only: 0 /Life Annualized 0 /Life Fidelity Retirement Reserves.2% 7.% 4.0% 4.8%.2% VIP Freedom 200 Total Returns for the Variable Subaccount New York Only: 0 /Life Annualized 0 /Life Fidelity Retirement Reserves 4.06% 8.88% 4.67% 6.00% 4.06% VIP Freedom 20 Total Returns for the Variable Subaccount New York Only: 0 /Life Annualized 0 /Life Fidelity Retirement Reserves 4.6% 0.9%.29% 6.9% 4.6% VIP Freedom 2020 Total Returns for the Variable Subaccount New York Only: 0 /Life Annualized 0 /Life Fidelity Retirement Reserves 4.04%.80%.72% 7.20% 4.04% VIP Freedom 202 Total Returns for the Variable Subaccount New York Only: 0 /Life Annualized 0 /Life Fidelity Retirement Reserves 4.% 2.84% 6.07% 8.24% 4.% VIP Freedom 200 Total Returns for the Variable Subaccount New York Only: 0 /Life Annualized 0 /Life Fidelity Retirement Reserves 4.6%.60% 6.90% 9.0% 4.6% 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 9 /2, may be subject to a 0% IRS penalty. Please see the Fiscal Performance Summary section of this Q&A document for performance footnotes and additional information. 0 For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.

31 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. S&P 00 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., 00 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. Information included on this page is as of the most recent calendar quarter.