Fidelity VIP Real Estate Portfolio

Transcription

1 Fidelity VIP Real Estate Portfolio Key Takeaways The fund's share classes gained about 2% for the semiannual reporting period ending June 30, 2017, outperforming the Dow Jones U.S. Select Real Estate Securities Index SM, which gained 1.36%. Although the U.S. real estate investment trust (REIT) market benefited this period from generally favorable supply and demand characteristics, investors tended to favor faster-growing equities to steadier, income-oriented securities. Versus the Dow Jones index, the fund was helped the most by strong security selection across several categories, as well as a significant underweighting among retail REITs. Stock picking in this latter category, however, curbed results. During the period, Portfolio Manager Samuel Wald reduced the fund's exposure to the retail REIT sector, which he saw as facing a number of long-term challenges not likely to ease. At period end, amid generally healthy economic conditions and real estate fundamentals, Sam is maintaining his patient, diversified approach to managing the portfolio, paying close attention to both near- and long-term opportunity. 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 Portfolio Manager Samuel Wald Fund Facts Samuel Wald Portfolio Manager Start Date: November 06, 2002 Size (in millions): $ Investment Approach Fidelity VIP Real Estate Portfolio seeks above-average income and long-term capital growth, consistent with reasonable investment risk, by investing in securities of companies that own and, in most cases, operate commercial real estate properties. Investment in real estate securities has the potential to provide portfolio diversification, consistent income generation and the ability to outpace inflation. We believe real estate investment trusts (REITs) represent a balance between real estate and stocks, and that recognizing attributes of both is key to identifying opportunities to outperform. Through rigorous bottom-up research from both Fidelity's dedicated real estate team and the firm's broader research resources, we strive to add value through security selection within a disciplined risk framework. Our process seeks to determine the relative attractiveness of individual REITs and will try to take advantage of pricing discrepancies in the market. Q: Sam, how did the portfolio perform for the semiannual period ending June 30, 2017 The fund's share classes finished the period up about 2%, outpacing the 1.36% increase in the benchmark Dow Jones U.S. Select Real Estate Securities Index SM. The broader U.S. stock market, as measured by the S&P 500 index, was up 9.34%. The fund modestly lagged its peer group average. Compared with the Dow Jones index, the fund benefited from strong security selection across several categories. A significant underweighting in the retail real estate investment trust (REIT) category also added value, although stock picking here limited some of the upside. Although we normally focus on bottom-up stock picking, we view the long-term challenges in retail real estate as significant enough to warrant less exposure to this category. Looking out a bit further, for the 12 months ending June 30, the fund's share classes returned about -2% to -3%, about in line with the Dow Jones index, ahead of the peer group average, and falling well short of the S&P 500. Q: How would you describe the investment environment over the past six months REITs were up and down throughout the six months, even as their share prices remained in a narrow trading range. Although the market benefited this period from a generally solid supply/demand backdrop with a few notable exceptions investors often seemed more attracted to high-flying growth equities rather than their steadier, income-oriented counterparts, including REITs. Against this backdrop, I continued to stick to my investment philosophy, as I do in all kinds of market conditions. My approach starts with the recognition that REITs are a balance of stocks and real estate, behaving more like the former in the short term and more like the latter over longer periods. REITs are like stocks in that a portfolio manager can add value by correctly predicting earnings surprises, which correlate to short-term moves in the securities' prices. Longer-term, a manager can boost returns by concentrating on the value of a REIT's underlying assets 2 For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.

3 and comparing that value to where the stock might be trading on any given day. This focus on the underlying assets provides an anchor point for my colleagues and me as we determine how REITs should be priced, allowing us to avoid getting sidetracked by day-to-day news. Second, my process involves in-depth research. With the help of Fidelity's highly capable team of analysts, we determine the relative attractiveness of individual REITs for the fund and will often take advantage of significant pricing discrepancies we see in the marketplace. Lastly, I generally believe that individual security selection and not sector allocation or market timing can provide the best opportunity for outperformance over time. Stock picking historically has been where I've had the most success during my career as both a portfolio manager and analyst. Q: What about managing risk Managing risk is a vital part of my approach. I think it's important to monitor risk every day, not simply react to unexpected challenges as they occur. I regularly review the portfolio's risk parameters to help establish and maintain appropriate position sizes and sector weightings, so as to try to make stock selection the primary driver of the fund's relative performance. I also try to limit unintended sources of risk, such as geographic or market-cap concentration, to try to reduce the fund's unintended outcomes. Of final note, I take part in quarterly meetings at Fidelity to review what went right in the portfolio and how we might replicate it, along with what went wrong and how best to strive to avoid it in the future. Q: Relative to the benchmark, which stocks especially influenced results this period As I mentioned, retail REITs struggled, and I significantly cut back the fund's exposure to the sector. In light of the category's challenges, the fund benefited from not owning a number of poor-performing benchmark components, especially Kimco Realty and Macerich. That said, retail remains a relatively large stake in the index, and we did maintain exposure to specific companies, even as we continued to underweight the sector. In the group, our relative overweights in DDR and Urban Edge Properties were notable detractors. Elsewhere, the fund benefited from out-of-benchmark holdings in data-center REITs CoreSite Realty and Equinix, both of which benefited from continued strong demand for specialized facilities to handle the growing need for data storage. However, we lacked exposure to benchmark component DuPont Fabros Technology, which in June agreed to be acquired at a premium by its larger competitor, Digital Realty Trust, a strong performer that we underweighted and did not hold at all at period end. Among industrial REITs, which have benefited from the global shift toward e-commerce and the corresponding demand for warehouse facilities, the fund's large overweighting in DCT Industrial Trust contributed to results. Tempering that contribution, however, was our meaningful underexposure to the largest industrial REIT, Prologis, whose risk/reward trade-off we found less appealing than DCT's and that of various other competitors. Q: Any closing thoughts, Sam As we significantly reduced the fund's retail-sector exposure, we redeployed the assets across several other categories. As a result of our bottom-up moves, we added exposure to the industrial sector, as demand has been increasing for specialized warehouse facilities. The fund's health care REIT allocation grew, partly reflecting my view that a number of stocks in the category may have become oversold in light of uncertainty surrounding possible Obamacare repeal. In addition, with supply increasing in the self-storage group, I saw better opportunity elsewhere and trimmed the fund's stake there. As of June 30, we are very far along in the current real estate cycle, now eight years or more in duration. As analysts and fund managers, our job is to worry about what could potentially go wrong, and we logically have more concerns in year eight of the cycle than we did in year two. Potential risks could include overly restrictive monetary policy from the Federal Reserve or concerns that getting close to full employment could affect demand for future offices or apartments. Despite these risks, the U.S. economy appears healthy today, while the supply/demand balance for real estate remains solid across most property types and geographic markets, with a few notable exceptions. In this environment, we continue to maintain a patient, diversified approach to managing the portfolio, with an eye solidly focused on both near-term opportunity and long-term trends. 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 Sam Wald on his approach to the retail REIT sector: "My investment strategy focuses on individual security selection, so I don't normally make topdown changes to the fund's sector allocations. But in recent months, I've made an exception with respect to the retail REIT sector. My decision to cut exposure here is based on my belief that retail real estate is facing some significant long-term headwinds. "I see at least four main long-term challenges weighing on the sector. First, in the U.S., we have significantly more retail space per capita than any other country in the world, meaning an adjustment could be in our future. Second, various retail tenants have already experienced bankruptcies this year, and with competition from e-commerce growing, this trend could continue or accelerate. Third, department stores have traditionally been big draws for malls, but many of these retailers are experiencing massive problems in their businesses, and the market has been speculating about additional possible bankruptcies. Lastly, millennials and younger generations appear to be more interested in accumulating experiences than things, and they are especially comfortable with the efficiency of online shopping two trends that are negative omens for retailers. "All told, I see the difficulties in retail as a series of big long-term challenges rather than short-term obstacles, and good reasons to stay underweight the sector." Holding Market Segment Average Relative Weight Relative Contribution (basis points)* Kimco Realty Corp. Retail -1.44% 45 CoreSite Realty Corp. Real-Estate Related 1.50% 40 Equinix, Inc. Industrial/Office 2.00% 35 DCT Industrial Trust, Inc. Industrial/Office 2.41% 26 Healthcare Realty Trust, Inc. * 1 basis point = 0.01%. Healthcare 1.79% 24 LARGEST DETRACTORS VS. BENCHMARK Holding Market Segment Average Relative Weight Relative Contribution (basis points)* DDR Corp. Retail 0.65% -38 Digital Realty Trust, Inc. Industrial/Office -2.68% -37 Urban Edge Properties Retail 2.61% -36 Pennsylvania Real Estate Investment Trust (SBI) Cedar Shopping Centers, Inc. * 1 basis point = 0.01%. Retail 0.43% -25 Retail 0.80% 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 Portfolio Weight Portfolio Weight Six Months Ago AvalonBay Communities, Inc. Residential 6.01% 5.60% Simon Property Group, Inc. Retail 5.51% 9.75% Ventas, Inc. Healthcare 5.46% 5.21% Boston Properties, Inc. Industrial/Office 5.18% 4.86% Extra Space Storage, Inc. Self Storage 4.28% 4.39% Mid-America Apartment Communities, Inc. Residential 4.15% 3.76% Essex Property Trust, Inc. Residential 4.02% 2.71% Welltower, Inc. Healthcare 3.99% 2.26% Public Storage Self Storage 3.31% 4.00% General Growth Properties, Inc. Retail 3.22% 1.32% 10 Largest Holdings as a % of Net Assets 45.13% 46.69% 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 Portfolio Weight Portfolio Weight Six Months Ago Industrial/Office 28.30% 24.11% Residential 22.51% 20.14% Retail 14.09% 22.01% Health Care 11.37% 9.86% Self Storage 7.59% 8.39% Hotels 7.13% 5.92% Diversified 3.46% 4.02% Real-Estate Related 2.88% 3.34% Commercial 0.00% 0.64% Hybrid REIT 0.00% 0.00% Other 2.67% 1.57% ASSET ALLOCATION Asset Class Portfolio Weight Portfolio Weight Six Months Ago Domestic Equities 97.57% 98.43% International Equities 0.00% 0.00% Developed Markets 0.00% 0.00% Emerging Markets 0.00% 0.00% Tax-Advantaged Domiciles 0.00% 0.00% Bonds 0.00% 0.00% Cash & Net Other Assets 2.43% 1.57% 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 Real Estate Portfolio - Initial Class Gross Expense Ratio: 0.67% % 2.20% -2.37% 7.36% 8.93% 6.11% VIP Real Estate Portfolio - Investor Class Gross Expense Ratio: 0.75% % 2.15% -2.47% 7.28% 8.84% 6.02% S&P 500 Index 9.34% 9.34% 17.90% 9.61% 14.63% 7.18% Dow Jones U.S. Select Real Estate Securities Index 1.36% 1.36% -2.43% 8.02% 8.97% 5.32% Morningstar Insurance Real Estate 2.68% 2.68% -1.94% 7.18% 8.53% 5.36% 1 Life of Fund (LOF) if performance is less than 10 years. Fund inception date: 11/06/ 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. 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 5.26% 1.79% 1.79% -3.15% 6.50% 8.06% 5.26% Fidelity Income Advantage B 5.05% 1.69% 1.69% -3.35% 6.29% 7.84% 5.05% 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+) 5.75% 2.02% 2.02% -2.71% 7.01% 8.57% 5.75% 5.72% 2.02% 2.02% -2.71% 7.01% 8.57% 5.72% 5.91% 2.09% 2.09% -2.57% 7.17% 8.73% 5.91% Fidelity Retirement Reserves - Subaccount Inception: September 26, 2003; New York Only Inception: September 26, Fidelity Income Advantage - Subaccount Inception: September 26, 2003; New York Only Inception: September 26, 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. 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. FUND RISKS Stock markets, especially foreign markets, are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments. Foreign securities are subject to interest rate, currency exchange rate, economic, and political risks. Changes in real estate values or economic downturns can have a significant negative effect on issuers in the real estate industry. The fund may have additional volatility because it can invest a significant portion of assets in securities of a small number of individual issuers. 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. Dow Jones U.S. Select Real Estate Securities Index is a floatadjusted market-capitalization-weighted index of publicly traded real estate securities such as real estate investment trusts (REITs) and real estate operating companies (REOCs). 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. 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 used as a recommendation for any sector or industry. 8

9 Manager Facts Samuel Wald is a portfolio manager 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. Wald manages Fidelity Advisor Real Estate Fund, VIP Real Estate Portfolio, Fidelity Series Real Estate Equity Fund, FIAMSM US Institutional REIT Pool, and two separate institutional accounts. Additionally, he manages the real estate investment trust (REIT) sub-portfolios of Fidelity Strategic Dividend and Income Fund, the real estate equities sub-portfolio of Fidelity Strategic Real Return Fund, the Real Estate sub-portfolio of Stock Selector Mid Cap Fund, and the REIT sub-portfolio of Fidelity Canada- US Monthly Income Fund. In this capacity, Mr. Wald also co-manages Fidelity Stock Selector All Cap Fund and Fidelity Series Broad Market Opportunities Fund. Prior to assuming his current position in 2004, Mr. Wald held various other positions at FMRCo, including that of research analyst and research associate in the Equity Research division following real estate, REITs and specialty and generic pharmaceuticals stocks. He has been in the investments industry since joining Fidelity in Mr. Wald earned his bachelor of science degree in finance, magna cum laude, from Yeshiva University. He is a Chartered Financial Analyst (CFA ) charterholder, and is also published in the Fall 2013 Journal of Portfolio Management with his paper titled "Searching for a Common Factor in Public and Private Real Estate Returns". Under Sam's stewardship, Fidelity Advisor Real Estate Fund Institutional Class won the 2015 Lipper Funds Award for risk-adjusted performance versus peers over the 10-year period. 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 5.17% -1.22% 7.74% 7.88% 5.17% Fidelity Income Advantage 4.96% -1.42% 7.52% 7.67% 4.96% 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+) 5.66% -0.72% 8.26% 8.39% 5.66% 5.63% -0.72% 8.26% 8.39% 5.63% 5.82% -0.57% 8.42% 8.56% 5.82% 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.