Fidelity VIP Overseas Portfolio

Transcription

1 Fidelity VIP Overseas Portfolio Key Takeaways For the semiannual reporting period ending June 30, 2017, the fund's share classes gained roughly 19%, considerably ahead of the 13.99% return of the benchmark MSCI EAFE Index. Amid an improving economic backdrop for the eurozone, the first six months of 2017 provided a good environment for Portfolio Manager Vincent Montemaggiore's focus on buying high-quality businesses at attractive valuations. Versus the benchmark, stock selection in the United Kingdom, Japan and Europe ex U.K. delivered the greatest boost to relative performance. From a sector standpoint, picks in financials, industrials and consumer discretionary lifted results most. Stock selection in Denmark and non-benchmark exposure to Malta detracted modestly from relative performance. Among sectors, picks in telecommunication services nicked us. Despite valuations near the high end of their historical ranges, Vince continues to find attractive opportunities, particularly in domestically oriented U.K. companies and Japan-based firms positioned to benefit from the tight labor market there. MARKET RECAP For the first half of 2017, 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-market currencies, helping international equities spearhead the global market rally. In this environment, the MSCI ACWI (All Country World Index) ex USA Index returned 14.24% for the six months, well ahead of U.S. counterparts. Favorable election results in France and elsewhere suggested ebbing political uncertainty and nearterm risk in the eurozone, and Europe (+18%) far outpaced the U.K. (+10%). Britain, meanwhile, faced more-mixed conditions ahead of its anticipated exit from the European Union. Japan (+10%), despite continued easing by its central bank, lagged the rest of the Asia Pacific group (+16%). Commodity-price volatility whipsawed resource-rich Canada (+4%), but the emergingmarkets group (+18%) boomed. Among sectors, information technology (+30%) powered to the top amid a broad-based surge led by major Chinese internet names. Elsewhere, defensive-oriented consumer staples (+17%) and the more cyclical industrials (+17%) sector both outperformed. Energy (-3%) was the sole sector to post a negative, with double-digit gainers materials (+11%) and telecommunication services (+11%) the next-closest laggards. Not FDIC Insured May Lose Value No Bank Guarantee

2 Q&A An interview with Portfolio Manager Vincent Montemaggiore Fund Facts Vincent Montemaggiore Lead Manager Start Date: January 28, 1987 Size (in millions): $1, Investment Approach Fidelity VIP Overseas Portfolio is a diversified international equity strategy that seeks long-term capital growth. The fund's philosophy centers around owning high-quality companies purchased at attractive prices that can outperform the market over the long term, given their ability to compound value through the re-investment of earnings back into the business at attractive returns. By focusing on buying these companies at inexpensive valuations, we attempt to build in an inherent margin of safety in the investment. We particularly favor firms with unique business models that are able to generate sustainably high returns on capital through a full business cycle and are trading at a discount to their intrinsic (fair) value based on several conservative valuation frameworks. We strive to uncover these companies through in-depth fundamental analysis, working in concert with Fidelity's global research team, as well as by leveraging the fund managers' own independent analysis. Q: How did the fund perform for the six months ending June 30, 2017, Vince The fund's share classes posted gains of roughly 19%, considerably ahead of the 13.99% return of the MSCI EAFE Index. The fund also topped the peer group average, albeit by a smaller margin. Amid an improving economic backdrop for the eurozone, the first six months of 2017 provided a good environment for my focus on buying highquality businesses at what I consider attractive valuations. Looking back a full year, the fund gained roughly 21%, a bit better than the MSCI benchmark return and considerably above the peer average. Q: Please tell us more about the investment backdrop the past six months. Versus the United States, several factors came together to make stocks in the MSCI benchmark attractive to investors. For one thing, the fourth quarter of 2016 and the first quarter of 2017 marked the first time in about a decade that economic growth in the eurozone outpaced U.S. growth in two consecutive quarters. At the same time, after a huge fourth-quarter rally prompted by the Republican victory in the U.S. presidential election, the U.S. dollar weakened against a basket of foreign currencies through the first six months of 2017, as investors began to question whether President Trump could follow through on his pro-business campaign platform. A weaker dollar lifts the value of foreign stocks quoted in greenbacks. Finally, European markets got a boost from Emmanuel Macron's strong showing in the first round of France's presidential voting, which took place on April 23. Macron subsequently won the election and, in June, also saw his party win a clear majority in Parliament, leading to growing optimism about Macron's chances of implementing his probusiness platform. Q: What helped most versus the benchmark Stock selection in the United Kingdom, Japan and Europe ex U.K. delivered the greatest boost to performance relative to the MSCI EAFE benchmark. From a sector standpoint, 2 For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.

3 picks in financials, industrials and consumer discretionary lifted results most. Notably, all major geographical regions in the benchmark and eight of 11 market sectors added value, so the positive impact from active management was quite consistent this period. I'll also note that, among the remaining sectors, negative overall effects were either negligible or, in the case of telecommunication services, slight. At the stock level, two of the fund's largest relative contributors were weak-performing index names in the energy sector that I avoided: Netherlands-based Royal Dutch Shell and the U.K.'s BP. Prices for crude oil and natural gas trended lower during the six months, hampering the returns of both stocks. Royal Dutch shares also suffered from weaker-thanexpected fourth-quarter earnings. In February, the company announced its worst annual profit in more than a decade, as it continued to sell off assets while integrating the operations of LNG (liquefied natural gas) provider BG Group, acquired in early Q: What about contributors in other sectors Within the consumer discretionary sector, avoiding sizable Japan-based index component Toyota Motor was the right call, as the stock struggled this period. Concerned that U.S. auto sales might be nearing a peak, investors rotated out of automotive stocks. We saw late-cycle behavior across all the major players in this industry in the form of increased sales incentives, which squeezed profit margins. In addition, the share prices of auto companies like Toyota suffered from uncertainty over what role they'll play as electric vehicles become more mainstream. Among overweighted positions, France-based asset manager Amundi stood out. Investors began to appreciate the attractiveness of its Pioneer Investments acquisition announced in December 2016 which could materially boost the company's earnings potential. In addition, Amundi saw a pickup in high-margin French retail capital inflows, which helped drive profit growth. corruption and bribery in the Middle East. I deemed both of these risks to be more than reflected in the company's recent share price and added to the position. Another non-benchmark stock that weighed on relative results was U.K.-based Kambi Group, a business-tobusiness provider of turnkey sports-betting solutions. The stock is a recent spinoff from Unibet a Stockholm-based sports-betting firm. In an effort to diversify and grow its customer base, the company is aggressively spending to build out its platform and is taking longer than anticipated to attract new customers. This delay, coupled with weakness in the sports-betting industry this period, resulted in a weak stock price. Q: What is your outlook as of June 30 Although European valuations are at the high end of their historical range, the earnings recovery has been modest thus far. This could be changing for the better, however. While a cyclical rebound in Europe is not a key part of the thesis underpinning my holdings, the fund owns many names that might benefit. That said, almost all of my time is spent on a bottom-up search for high-quality businesses that are trading at what I consider attractive valuations. Today, I'm finding opportunities among domestically oriented U.K. firms, businesses benefiting from the demographically driven, structurally tight Japanese labor market, Europe-based defense contractors, cash-handling businesses, domestic European cyclicals and, as I discuss later, some highquality emerging-markets banks. Q: What about negatives Stock selection in Denmark and non-benchmark exposure to Malta were modest detractors to relative performance. Among individual holdings, a non-benchmark position in U.K.-based oilfield-services provider John Wood Group weighed on the fund's relative results. A lower oil price resulted in less offshore work in the North Sea region, and a more difficult pricing environment hampered the company's financial results. In addition, the company appeared to have had a relationship with a firm accused of 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 Vince Montemaggiore on emergingmarkets (EM) banks: "International funds I manage have historically had a small weighting in emerging markets. Being a value investor with a focus on high-quality business models, I've always struggled with the fact that the best EM businesses tend to be priced accordingly. "On the other hand, many EM stocks are cheap for a good reason often due to being issued by stateowned entities with minimal transparency and little regard for shareholder value. "More recently, though, I've found interesting opportunities in a select few high-quality EM banks, several of which have been managed well through the business cycle. "These banks have good corporate governance and strong deposit franchises. Moreover, they operate in markets dominated by only a few players, which creates a rational competitive environment allowing them to manage through volatile economic backdrops. "These attributes have afforded certain banks an ability to compound value at rates well into the double digits, with a consistently high return on tangible equity. "With several of these banks now sporting 12- month forward pricing around 10 times earnings and price-to-book ratios near the low end of their historical ranges, I think the group is an interesting place to look for new ideas." Holding Royal Dutch Shell PLC Class A (United Kingdom) Toyota Motor Corp. Market Segment Average Relative Relative Contribution (basis points)* Energy -1.69% 33 Consumer Discretionary -1.12% 31 Amundi SA Financials 0.74% 23 BP PLC Energy -0.86% 20 S&P Global, Inc. Financials 0.88% 18 * 1 basis point = 0.01%. LARGEST DETRACTORS VS. BENCHMARK Holding Market Segment Average Relative Relative Contribution (basis points)* John Wood Group PLC Energy 0.49% -21 Kambi Group PLC Consumer Discretionary 0.32% -17 Astellas Pharma, Inc. Health Care 0.58% -16 Novo Nordisk A/S Series B Health Care -0.31% -15 BT Group PLC * 1 basis point = 0.01%. ASSET ALLOCATION Asset Class Telecommunicatio n Services 0.34% -14 Portfolio Portfolio Six Months Ago International Equities 92.59% 93.45% Developed Markets 89.63% 91.57% Emerging Markets 2.96% 1.88% Tax-Advantaged Domiciles 0.00% 0.00% Domestic Equities 5.45% 6.28% Bonds 0.00% 0.00% Cash & Net Other Assets 1.96% 0.27% 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. 4 For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.

5 MARKET-SEGMENT DIVERSIFICATION Market Segment Portfolio Portfolio Six Months Ago Financials 21.28% 21.34% Industrials 16.91% 13.15% Consumer Staples 13.39% 13.66% Consumer Discretionary 12.45% 13.37% Health Care 12.06% 15.00% Information Technology 11.73% 11.30% Materials 5.88% 6.22% Energy 2.60% 3.05% Telecommunication Services 1.25% 1.59% Real Estate 0.51% 1.05% Utilities 0.00% 0.00% Other 0.00% 0.00% COUNTRY DIVERSIFICATION Country Portfolio Portfolio Six Months Ago United Kingdom 22.93% 21.95% Japan 18.39% 20.58% Germany 9.36% 9.64% France 7.86% 9.16% United States 7.22% 6.52% Switzerland 5.48% 6.57% Netherlands 4.37% 3.20% Sweden 3.96% 5.24% Spain 3.13% 1.65% Ireland 2.55% 1.43% Italy 2.17% 1.65% Australia 2.10% 1.56% Belgium 1.94% 2.34% Hong Kong 1.15% 1.58% 10 LARGEST HOLDINGS Holding Nestle SA (Reg. S) Market Segment Consumer Staples Portfolio Portfolio Six Months Ago 2.31% 2.36% Bayer AG Health Care 1.60% 1.46% SAP AG Unilever NV (NY Reg.) British American Tobacco PLC (United Kingdom) Information Technology Consumer Staples Consumer Staples 1.39% 1.42% 1.37% % 1.30% Total SA Energy 1.27% 1.63% Sanofi SA Health Care 1.24% 1.50% Amadeus IT Holding SA Class A Information Technology 1.06% 1.01% Prudential PLC Financials 1.05% 1.08% Deutsche Post AG Industrials 1.05% 1.14% 10 Largest Holdings as a % of Net Assets 13.69% 14.50% 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. 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 Overseas Portfolio - Initial Class Gross Expense Ratio: 0.80% % 18.95% 20.91% 2.74% 9.69% 1.60% VIP Overseas Portfolio - Investor Class Gross Expense Ratio: 0.88% % 18.93% 20.89% 2.66% 9.60% 1.51% MSCI EAFE Index (Net Massachusetts tax) 13.99% 13.99% 20.51% 1.33% 8.86% 1.18% Morningstar Insurance Foreign Large Growth 18.11% 18.11% 18.57% 2.64% 8.78% 2.13% 1 Life of Fund (LOF) if performance is less than 10 years. Fund inception date: 01/28/ 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 0.78% 18.47% 18.47% 19.94% 1.91% 8.81% 0.78% Fidelity Income Advantage B 0.58% 18.35% 18.35% 19.70% 1.71% 8.59% 0.58% 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+) 1.26% 18.78% 18.78% 20.58% 2.40% 9.33% 1.26% 1.22% 18.78% 18.78% 20.58% 2.40% 9.33% 1.22% 1.41% 18.87% 18.87% 20.77% 2.56% 9.49% 1.41% Fidelity Retirement Reserves - Subaccount Inception: February 10, 1988; New York Only Inception: June 03, Fidelity Income Advantage - Subaccount Inception: February 10, 1988; New York Only Inception: June 03, 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. From April 30, 2004, to April 30, 2015, the underlying fund option for Fidelity Retirement Reserves and Fidelity Income Advantage was Initial Class R. Fidelity Personal Retirement Annuity's underlying fund options are Investor Class fund offerings. Prior to April 30, 2015, the underlying fund option for Fidelity Personal Retirement Annuity was Investor Class R. A In NY, Retirement Reserves B In NY, Income Advantage C In NY, Personal Retirement Annuity * Total returns are historical and include changes in share price (for the fund) and unit price (for the variable subaccount) and reinvestment of dividends and capital gains, if any. ** Returns for Fidelity Retirement Reserves include the 0.80% annual annuity charge. For Fidelity Retirement Reserves contracts, returns do not reflect the annual $30 maintenance fee which applies to contracts where purchase payments less any withdrawals are less than $25,000. Returns for Fidelity Income Advantage include the 1.00% annual annuity charge. Returns for Fidelity Personal Retirement Annuity ("FPRA") include the 0.25% annual annuity charge for contracts purchased prior to 1/1/2009, and on or after 9/7/2010. For FPRA contracts purchased between 1/1/2009 and 9/6/2010, returns include a 0.35% annual annuity charge prior to 9/7/2010 and 0.25% thereafter. For FPRA contracts purchased on or after 9/7/2010 with an initial purchase payment of $1,000,000 or more, returns include a 0.10% annual annuity charge. Life of subaccount returns are from the subaccount inception, the date the portfolio was first available in the insurance company's variable product. Please see the last page(s) of this Q&A document for most-recent calendar-quarter performance. 7 For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.

8 Definitions and Important Information Fidelity Income Advantage (policy form nos. FVIA-92100, et al. and FVIA-99100, et al.), Fidelity Retirement Reserves (policy form no. NRR-96100, et al.), Fidelity Personal Retirement Annuity (policy form no. DVA-2005, et al.), Fidelity Freedom Lifetime Income (policy form nos. FFLI-Q-2005, et al. and FFLI-NQ-2005, et al.), and Fidelity Growth and Guaranteed Income (policy form no. DVA-GWB- 2007, et al.) are issued by Fidelity Investments Life Insurance Company, 100 Salem Street, Smithfield, RI 02917, and for NY residents, Income Advantage (policy form nos. EFVIA-92100, et al. and EFVIA-99100, et al.), Retirement Reserves (policy form no. EVA-91100, et al.), Personal Retirement Annuity (policy form no. EDVA-2005, et al.), Fidelity Freedom Lifetime Income (policy form nos. EFLI-Q-2005, et al. and EFLI-NQ-2005, et al.), and Growth and Guaranteed Income (policy form no. EDVA-GWB-2007, et al.) are issued by Empire Fidelity Investments Life Insurance Company, New York, NY. Annuities are distributed by Fidelity Brokerage Services (Member NYSE, SIPC) and Fidelity Insurance Agency, Inc. FUND RISKS Stock markets, especially foreign markets, are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments. Foreign securities are subject to interest rate, currency exchange rate, economic, and political risks, all of which are magnified in emerging markets 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. MORNINGSTAR INFORMATION 2017 Morningstar, Inc. All rights reserved. The Morningstar information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or redistributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Fidelity does not review the Morningstar data and, for mutual fund performance, you should check the fund's current prospectus for the most up-to-date information concerning applicable loads, fees and expenses. RELATIVE WEIGHTS Relative weights represents the % of fund assets in a particular market segment, asset class or credit quality relative to the benchmark. A positive number represents an overweight, and a negative number is an underweight. The fund's benchmark is listed immediately under the fund name in the Performance Summary. IMPORTANT FUND INFORMATION Relative positioning data presented in this commentary is based on the fund's primary benchmark (index) unless a secondary benchmark is provided to assess performance. VIP refers to Variable Insurance Products Effective 10/10/16, Vincent Montemaggiore became lead portfolio manager, Andrew Sergeant became co-portfolio manager, and Graeme Rockett transitioned to co-portfolio manager of the fund. Effective 12/31/16, Graeme Rockett retired from Fidelity. 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. MSCI EAFE Index (Net MA Tax) is a market-capitalization-weighted index that is designed to measure the investable equity market performance for global investors in developed markets, excluding the U.S. & Canada. Index returns are adjusted for tax withholding rates applicable to U.S. based mutual funds organized as Massachusetts business trusts. MSCI ACWI (All Country World Index) ex USA Index is a market capitalization-weighted index designed to measure the investable equity market performance for global investors of large and mid-cap stocks in developed and emerging markets, excluding the United States. 8

9 Manager Facts Vincent Montemaggiore is a portfolio manager at Fidelity Management & Research Company (FMR Co.), 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. Montemaggiore manages Fidelity Overseas Fund, Fidelity Advisor Overseas Fund, and Fidelity VIP Overseas Portfolio. Additionally, he co-manages Fidelity International Growth Fund, Fidelity Advisor International Growth Fund, and Fidelity Series International Growth Fund, as well as an international growth fund available exclusively to Canadian investors, a sub-advised institutional international growth portfolio, and the developed market growth sleeves of Fidelity Total International Equity Fund, Fidelity Advisor Total International Equity Fund, and Fidelity Flex International Fund. Prior to assuming his current responsibilities, Mr. Montemaggiore co-managed Select Banking Portfolio, after being sole manager on the fund from 2008 to He also assumed research analyst coverage responsibilities for large-cap and regional banks in Previously, Mr. Montemaggiore managed Select Industrial Equipment Portfolio, after taking on research coverage of industrial and machinery stocks in He joined Fidelity full time in 2005 as an equity research analyst following the media industry. Before joining Fidelity, Mr. Montemaggiore worked as an investment banking analyst at de Guardiola Advisors, Inc. He also worked at Putnam Lovell Securities, Inc., where he focused on mergers and acquisitions within the financial services industry. He has been in the investments industry since Mr. Montemaggiore earned his bachelor of science degree in engineering from the University of Pennsylvania and his master of business administration degree from Columbia Business School. 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 December 31, 2017 Total Returns for the Variable Subaccount New York Only: 10 /Life of Subaccount 1 Annualized /Life of Subaccount Fidelity Retirement Reserves 1.33% 29.25% 7.76% 8.10% 1.33% Fidelity Income Advantage 1.12% 28.99% 7.54% 7.89% 1.12% Fidelity Personal Retirement Annuity (for contracts purchased prior to 1/1/09 and on or after 9/7/10) Fidelity Personal Retirement Annuity (for contracts purchased between 1/1/09 and 9/6/10) Fidelity Personal Retirement Annuity (for contracts purchased on or after 9/7/10 with an initial purchase payment of $1M+) 1.80% 29.85% 8.27% 8.62% 1.80% 1.77% 29.85% 8.27% 8.62% 1.77% 1.95% 30.05% 8.43% 8.78% 1.95% 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.