Fidelity VIP Emerging Markets Portfolio

Transcription

1 Fidelity VIP Emerging Markets Key Takeaways For the year ending December 31, 2017, the fund's share classes returned about 47%, considerably ahead of the 37.75% gain of the benchmark MSCI Emerging Markets Index. Emerging-markets (EM) equity proved one of the best-performing asset classes of 2017, which provided a solid backdrop for Manager Sammy Simnegar's focus on high-quality businesses with favorable stock-price momentum. Versus the benchmark, Sammy's active management added value in nine of 11 market sectors. Positioning in consumer discretionary, financials and information technology contributed most, mainly due to stock selection. All major geographical regions were relative contributors, led by emerging Asia. Conversely, the materials and real estate sectors detracted, and a small cash allocation hurt in such a strong market. Among countries, South Korea and Mexico were noteworthy negatives. At period end, Sammy is encouraged by signs of acceleration in global economies, and he has increased the fund's exposure to more economically sensitive names to take advantage of this development. MARKET RECAP The MSCI ACWI (All Country World Index) ex USA Index gained 27.40% in 2017, helped partly by a generally weak U.S. dollar. Certain election results in continental Europe (+28%) suggested ebbing political uncertainty and nearterm risk there, whereas the U.K. (+21%) faced more-mixed conditions ahead of its expected exit from the European Union. Japan (+24%), despite central-bank easing and recent pressure from regional yen strength, lagged the rest of the Asia-Pacific group (+26%). Commodity-price volatility slowed Canada (+17%), but emerging markets (+36%) sped ahead. Sectorwise, information technology (+52%) was driven by a surge among software, semiconductor and internet-related names. Financials (+27%) rode rising interest rates that, at the same time, held back consumer staples (+24%), utilities (+19%) and telecommunication services (+15%) so-called "bond proxy" sectors. Real estate (+27%) bucked the trend, largely due to demand in China. Similarly, materials (+33%) and industrials (+30%) responded to Chinese demand, as well as to price gains for certain commodities. In the energy sector (+17%), oil prices lost ground in the first half of 2017 before rebounding through December 31 to end well above where they started 12 months ago. Lastly, health care (+19%) dealt with early-year turmoil around drug pricing and health care legislation. Not FDIC Insured May Lose Value No Bank Guarantee

2 Q&A An interview with Manager Sammy Simnegar Fund Facts Sammy Simnegar Manager Start Date: January 23, 2008 Size (in millions): $ Investment Approach Fidelity VIP Emerging Markets is a diversified emerging-markets equity strategy that seeks capital appreciation. Our investment approach focuses on "best of breed" growth stocks that are underappreciated by the market. We favor dominant franchises and industry leaders that exhibit strong balance sheets, secular-growth tailwinds, rising earnings-per-share growth, attractive industry structures with high return on invested capital, and shareholder-oriented management. We seek to mitigate some of the risk inherent to emerging-markets stocks by limiting active position sizes and by emphasizing high-quality, stable-growing companies that generate strong free cash flow and don't need to access the debt markets to fund their growth. We strive to uncover these companies through in-depth fundamental analysis, working in concert with Fidelity's global research organization, which includes a team of dedicated "on-the-ground" emerging-markets specialists. Q: Sammy, how did the fund perform for the year ending December 31, 2017 The fund's share classes gained about 47% for the 12 months, considerably ahead of the 37.75% return of the benchmark MSCI Emerging Markets Index. The fund also outpaced its peer group average by a similar margin. My focus on what I consider high-quality businesses with favorable stock-price momentum was rewarded by the market against a solid backdrop that included improving prospects for global economic growth, accommodative monetary policy and a weaker U.S. dollar in Q: What was especially noteworthy about the investment environment this period The U.S. dollar peaked around the end of 2016 and spent most of 2017 declining, which helped EM stocks. At the same time, confidence in key markets such as China and India rebounded amid better-than-expected performance of those economies. Also, the price of crude oil, although lower at 2017's halfway mark, rose for the year overall, helping Russia, Brazil and other economies dependent on oil revenue. Another positive: Industrial metals such as copper, nickel and aluminum were sharply higher this year, helping EM countries that produce those commodities. In fact, this was the first time since the end of the Great Recession of that we observed such a widespread, simultaneous upswing in economic activity. I responded by raising the fund's stake in more economically sensitive sectors such as consumer discretionary and financials, and by lessening our exposure to consumer staples and health care, two more-defensive sectors. Q: How was the fund able to outpace the benchmark this past year Active management added value versus the benchmark in nine of 11 market sectors. Stock picking accounted for the vast majority of the fund's outperformance and met with particular success in the consumer discretionary sector, which on its own added more than 4 percentage points to our relative result. Positioning in financials and information technology further lifted relative performance. 2 For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.

3 All major geographical regions were relative contributors. Our stock choices in emerging Asia were especially successful, led by China and India. As usual, I tried to focus on companies I consider beneficiaries of dominant market share, sustainable margins, high barriers to entry, a "best-in-class" return on invested capital, recurring revenue and properly incentivized management teams. These are all indicators of quality, a key part of my approach to stock picking. Another factor I watch closely is a stock's price momentum. I'll discuss these two factors in more detail later. Q: Which stocks were notable contributors versus the benchmark One way we helped ourselves was by avoiding benchmark components with what I viewed as weak fundamentals. The most notable of these this period was China Mobile, the fund's largest relative contributor. This company falls into the category of state-owned enterprises (SOEs), which typically don't meet my standards for transparency and shareholder-friendly behavior. China Mobile shares returned only about 3% in Similarly, in the energy sector, sidestepping Russia-based Gazprom and Brazil's Petroleo Brasileiro (Petrobras) two other SOEs worked well for us, as both stocks fell considerably short of our benchmark. I was extremely selective about the fund's exposure in the energy sector, where many businesses are highly commoditized, meaning firms there often have little opportunity to distinguish themselves from competitors. As a result, the fund tends to carry a substantial underweighting in this group. An out-of-benchmark stake in for-profit educator Estacio Participacoes (+126%), based in Brazil, also stood out as a contributor. The stock was relatively inexpensive when I established the position in July That was soon after the shares had sold off in response to antitrust officials in Brazil blocking a merger with rival Kroton Educacional. At that point, many analysts had given up on the stock. We maintained close contact with Estacio and liked the management team's plan to roughly double the firm's profit margin, even without a merger. The company went on to beat earnings estimates, with the stock also benefiting from overall improvement in investor sentiment toward Brazil. A non-benchmark position in Hangzhou Hikvision Digital, the world's largest manufacturer of security cameras, further lifted our relative result. This stock was a new position for the fund this year, as my research revealed the company was taking market share both in its home market of China as well as abroad. The ongoing threat of global terrorism and crime drove this company's improving fortunes, boosting the value of our position by about 117%. In addition to its global security-camera business, the firm also was making inroads in applications related to machine vision also known as industrial image processing and artificial intelligence in China. Q: What about detractors Untimely ownership of strong-performing index name JD.com, a China-based e-tailer akin to Amazon.com in the United States, made this stock our largest relative detractor. Although in general I like Chinese internet companies, I'd been reluctant to invest in this one because, until recently, the company had negative free cash flow. However, when the company's free cash flow turned positive in the first half of the year, I began buying. Unfortunately, the stock peaked for the year in August and I liquidated our position in November, thus missing both the stock's early-year and late-year rallies. Avoiding shares of South Korea-based index constituent SK Hynix also hurt us. Aided by strong global demand and tightening supply for certain types of semiconductors, shares of Korea's No. 2 memory-chip maker after Samsung nearly doubled in value this period. With that said, as of period end I still view the company as a "one-trick pony" in a highly cyclical and capital-intensive industry. Q: What's your outlook at year-end, Sammy I'm encouraged by signs of simultaneous acceleration among global economies. I especially like how well China has managed its transition to a consumer-driven economy, and India appears to be in good shape. The outlook for major developed markets also appears favorable as of December 31, with the U.S. doing well and Europe and Japan benefiting from a combination of decent economic growth, low inflation and accommodative monetary policy. U.S. passage of major tax-cut legislation in December further bolsters that country's prospects, in my opinion. Strength in developed markets should benefit emerging markets as well. As noted earlier, this improving picture has led me to give the fund more exposure to economically sensitive sectors, but I remain committed to doing so with a quality bias, in view of somewhat stretched valuations. 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 Sammy Simnegar on quality, momentum and fund performance: "One way to look at a mutual fund's performance is to measure how well it has done versus its benchmark in both up and down markets often referred to as 'upside capture' and 'downside capture.' For example, if a fund has an upside capture of 78% for a certain period of time, this means it captured 78% of the benchmark's gains during that time frame. "The goal of my management style is to roughly keep pace with the benchmark in advancing markets and to outperform in declining markets. I try to do this by focusing primarily on two factors: quality and momentum. "Historically, my emphasis on quality has tended to help the fund amid falling share prices, as investors typically seek out companies with lower debt, better cash flow, stronger competitive moats and other quality markers during difficult times. When the system works as intended, it gives the fund's shareholders a somewhat smoother ride during the market's rough patches. "When the market has been strong, momentum has tended to keep the fund roughly in sync with the benchmark. That's because looking at momentum helps keep me focused on stocks that are participating in the rally and avoiding those that, although perhaps attractive in other ways, are responding less favorably for some reason. "Although the system isn't perfect, it's worked fairly well for me over time. According to Morningstar, for the five years ending October 31, 2017 a reasonably long period reflecting the methods I currently use the fund exhibited an upside capture of roughly 96% and a downside capture of about 79%, resulting in meaningful outperformance overall." Holding China Mobile Ltd. PC Jeweller Ltd % Steinhoff International Holdings NV (South Africa) Estacio Participacoes SA Smiles SA * 1 basis point = 0.01%. Market Segment Telecommunication Services Average Relative LARGEST DETRACTORS VS. BENCHMARK Holding JD.com, Inc. sponsored ADR NOVATEK OAO GDR (Reg. S) SK Hynix, Inc. Geely Automobile Holdings Ltd. Evergrande Real Estate Group Ltd. * 1 basis point = 0.01%. Market Segment Relative Contribution (basis points)* -1.40% % % % % 47 Average Relative Relative Contribution (basis points)* -0.13% -34 Energy 0.23% -33 Information -0.69% % -29 Real Estate -0.16% 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 Six Months Ago Information 28.60% 28.29% Financials 19.96% 15.42% 16.41% 14.20% Industrials 7.94% 9.81% Staples 7.32% 12.51% Materials 6.46% 6.75% Health Care 3.67% 4.23% Energy 2.34% 2.35% Real Estate 2.21% 1.23% Utilities 1.98% 2.04% Telecommunication Services 1.53% 1.90% Other 0.00% 0.00% COUNTRY DIVERSIFICATION Country Six Months Ago China 17.20% 15.35% India 13.50% 12.06% Hong Kong 8.49% 6.95% Brazil 7.71% 6.78% South Africa 7.21% 5.96% Korea (South) 6.85% 7.50% United States 6.34% 8.44% Taiwan 4.68% 5.29% Mexico 3.91% 5.89% United Kingdom 2.53% 2.90% Philippines 2.40% 2.84% Turkey 2.26% 1.51% Argentina 2.22% -- France 2.21% 1.94% Indonesia 1.60% 2.51% Switzerland 1.52% -- Netherlands 1.41% 1.41% Russia 1.27% 2.26% Israel 1.00% 1.98% 10 LARGEST HOLDINGS Holding Tencent Holdings Ltd. Market Segment Information Samsung Electronics Co. Ltd. Information Alibaba Group Holding Ltd. sponsored ADR Taiwan Semiconductor Manufacturing Co. Ltd. Naspers Ltd. Class N Baidu.com, Inc. sponsored ADR Ping An Insurance (Group) Co. of China Ltd. (H Shares) Information Information Information Six Months Ago 5.82% 4.79% 5.36% 5.36% 4.15% 3.88% 3.98% 4.01% 2.85% 2.28% 1.66% -- Financials 1.45% -- Sberbank of Russia Financials 1.27% 1.07% Itau Unibanco Holding SA Financials 1.25% 1.29% Housing Development Finance Corp. Ltd. Financials 1.24% 1.31% 10 Largest Holdings as a % of Net Assets 29.02% 26.02% 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. ASSET ALLOCATION Asset Class Six Months Ago International Equities 92.85% 91.41% Emerging Markets 83.76% 81.73% Developed Markets 9.09% 9.68% Tax-Advantaged Domiciles 0.00% 0.00% Domestic Equities 5.56% 7.31% Bonds 0.00% 0.00% Cash & Net Other Assets 1.59% 1.28% 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 December 31, 2017 Cumulative Annualized Total Returns for the Fund 6 Month YTD / LOF 1 VIP Emerging Markets - Initial Class Gross Expense Ratio: 1.05% % 47.40% 47.40% 11.07% 7.60% 2.95% VIP Emerging Markets - Investor Class Gross Expense Ratio: 1.14% % 47.32% 47.32% 10.94% 7.52% 2.86% MSCI Emerging Markets Index (Gross) 16.15% 37.75% 37.75% 9.50% 4.73% 3.74% Morningstar Insurance Diversified Emerging Mkts 14.42% 36.47% 36.47% 8.75% 3.91% -- 1 Life of Fund (LOF) if performance is less than 10 years. Fund inception date: 01/23/ 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 December 31, 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 1.11% 17.82% 46.22% 46.22% 10.18% 6.74% 1.11% Fidelity Income Advantage B 0.91% 17.70% 45.93% 45.93% 9.96% 6.53% 0.91% 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+) 1.59% 18.09% 46.95% 46.95% 10.66% 7.25% 1.59% 1.56% 18.09% 46.95% 46.95% 10.66% 7.25% 1.56% 1.74% 18.18% 47.17% 47.17% 10.83% 7.41% 1.74% Fidelity Retirement Reserves - Subaccount Inception: April 30, 2008; New York Only Inception: April 30, Fidelity Income Advantage - Subaccount Inception: April 30, 2008; New York Only Inception: April 30, Fidelity Personal Retirement Annuity - Subaccount Inception: April 30, 2008; New York Only Inception: April 30, Fidelity Retirement Reserves' underlying fund options are Initial Class fund offerings (Initial Class R prior to April 30, 2015). Fidelity Income Advantage's underlying fund options are Initial Class fund offerings (Initial Class R prior to April 30, 2015). Fidelity Personal Retirement Annuity's underlying fund options are Investor Class fund offerings (Investor Class R prior to April 30, 2015). 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 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. 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, 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, all of which are magnified in emerging markets. 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 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 Emerging Markets Index (Gross) is a market-capitalizationweighted index that is designed to measure the investable equity market performance for global investors of emerging markets. MSCI ACWI (All Country World Index) ex USA Index is a marketcapitalization-weighted index that is designed to measure the investable equity market performance for global investors of developed and emerging markets, excluding the United States. 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 8

9 Manager Facts Sammy Simnegar 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, he is responsible for managing Fidelity and Fidelity Advisor International Capital Appreciation Fund (since 2008), Fidelity and Fidelity Advisor Emerging Markets Fund (since 2012), and Fidelity and Fidelity Advisor Total International Equity Fund (since 2014). Prior to assuming his current position in January 2008, Mr. Simnegar was an equity analyst at Fidelity Management & Research Company (FMRCo), focusing on Emerging Markets energy, materials, and industrials from 2003 to 2007, U.S. Regional Banks from 2001 to 2003, and real estate, hotels, and emerging telecom from 1998 to Before joining Fidelity in 1998, Mr. Simnegar worked as an equity analyst at JPMorgan from 1997 to 1998, and as a senior trade analyst at Trans Alliance Group, Inc. from 1994 to He has been in the investments industry since Mr. Simnegar earned his bachelor of arts degree in history from the University of California and his master of business administration degree in international finance 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 1.11% 46.22% 10.18% 6.74% 1.11% Fidelity Income Advantage 0.91% 45.93% 9.96% 6.53% 0.91% 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+) 1.59% 46.95% 10.66% 7.25% 1.59% 1.56% 46.95% 10.66% 7.25% 1.56% 1.74% 47.17% 10.83% 7.41% 1.74% 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.