Fidelity VIP International Capital Appreciation Portfolio

Transcription

1 Fidelity VIP International Capital Appreciation Key Takeaways For the year ending December 31, 2017, the fund's share classes rose about 36%, well ahead of the 27.40% return of the benchmark MSCI ACWI (All Country World Index) ex USA Index. Against a favorable backdrop that included improving prospects for global economic growth, accommodative monetary policy and a weaker U.S. dollar, Manager Sammy Simnegar's focus on high-quality businesses with positive stock-price momentum was rewarded by the market. Versus the benchmark, Sammy's active management added value in 10 of 11 market sectors. Positioning in financials, consumer discretionary, information technology and industrials contributed most. All major geographical regions were relative contributors, led by Europe ex U.K. and Japan. Conversely, stock selection in the materials sector detracted. Regionally, South Korea and Brazil part of the emergingmarkets (EM) group weighed on relative performance. Amid an improving cyclical environment at year-end, Sammy has given the fund more exposure to sectors such as technology and industrials, but he remains committed to doing so with a quality bias, given somewhat stretched valuations. 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: December 22, 2004 Size (in millions): $ Investment Approach Fidelity VIP International Capital Appreciation is a diversified international equity strategy that seeks capital growth by investing in non-u.s. stocks. Our investment approach seeks to identify high-quality growth stocks benefiting from long-term "mega trends," as well as the three "B's" brands, barriers to entry and "best in class" management teams using a proprietary quantitative screen and bottom-up fundamental analysis. Although the fund has wide latitude to underweight and overweight sectors and geographies relative to its benchmark, the MSCI All Country World ex USA Index, it employs a unique risk-managed portfolio construction process that attempts to optimize alpha (risk-adjusted excess return). Rather than adjusting security weights according to conviction, we use an equal-active-weight approach, which limits the impact of dramatic fluctuations in any single position, while still allowing for high active share (benchmark differentiation). Q: Sammy, how did the fund perform for the year ending December 31, 2017 The fund's share classes rose about 36%, well ahead of the 27.40% return of the benchmark MSCI ACWI ex USA Index. My focus on high-quality businesses with positive stockprice momentum was rewarded by the market against a favorable backdrop that included improving prospects for global economic growth, accommodative monetary policy and a weaker U.S. dollar in Q: Would you explain more about the fund's performance the past year The fund outpaced a strong-performing benchmark, a double win for shareholders. A sizable chunk of the benchmark's return this period was due to U.S.-dollar weakness. After peaking on the first trading day of the new year, the greenback declined fairly steadily throughout 2017, erasing the gains seen right after the U.S. presidential election and then some. For the 12 months overall, the dollar declined about 10% versus a basket of foreign currencies. A weak dollar increases the value of foreign securities quoted in dollars. Currency was only part of the story, though. In the third quarter, the eurozone expanded at a year-over-year pace of 2.6%, its strongest growth rate since the first quarter of That initial estimate was later revised up to 2.8%. More generally, economic trends across most important developed and emerging markets seemed to be improving, contributing to many positive earnings surprises this year. Versus the benchmark, positioning in financials, consumer discretionary, information technology and industrials contributed most. Overall, active management added value in 10 of 11 market sectors. Similarly, all major geographies proved relative contributors, led by the Europe ex U.K. and Japan regions. The fund's emphasis on strong, durable, organic growth that is, growth without considering mergers and other outside influences also proved rewarding, as growth significantly outperformed value in For definitions, fund risks and other important information, please see the Definitions and Important section of this Q&A.

3 Q: Which stocks contributed most versus the benchmark this year Our top relative contributor was a position in Wirecard, a Germany-based global online-payment business benefiting from the secular shift toward e-commerce. Reports of short selling referring to traders taking positions in anticipation of a declining stock price near the start of the year resulted in a sell-off of the shares. However, whatever concerns the market had about the company's business model dissipated over time, as Wirecard's organic growth, profit margins and free cash flow all improved dramatically during the year. Also, the stock was added to our benchmark at the end of November, which likely triggered additional buying. The fund's position gained nearly 160% in value for the full year; as Wirecard's stock price advanced, I reduced our stake for risk-management reasons. Another overweighting, China-based Tencent Holdings, also more than doubled in value. Combining web-based advertising with online gaming and messaging, Tencent is one of the largest Asian internet companies. Further, the company is protected by China's government from such U.S. competition as Google and Facebook. Robust revenue and earnings growth kept this stock on a fairly steady upward trajectory in Overweighting another China-based internet company, Alibaba Group Holding, also proved rewarding for the fund. Alibaba shares, which nearly doubled in value this period, benefited in part from a surge after the online retailer hosted an impressive analyst day in early June. Here, the firm announced a year-over-year sales increase of 60% for the fourth quarter of 2016 and projected top-line growth in the high-40% range for fiscal-year 2018, well ahead of many analysts' expectations. Growth estimates for the company remained solid throughout the latter half of 2017 amid fundamental improvements in the Chinese economy and consumers' continued shift from brick-and-mortar retailers to e-commerce. Lastly, I'll note contributor Maruti Suzuki India, by far the dominant automaker in India, a market in which auto ownership enjoyed healthy growth due to the country's rapidly growing middle class. The company did a good job of riding this trend with appealing products customized to the local market, and its stock responded with a 96% gain. Q: How about negatives Materials proved the fund's sole sector-level detractor, mainly due to stock selection. Within emerging markets, South Korea and Brazil weighed on relative performance. The negative impact from Korea largely was due to not owning benchmark component Samsung Electronics, the fund's largest relative detractor this year. All four of the company's main divisions wireless phone handsets, digital memory, electronic displays and semiconductors did well this year, lifting the stock to a 62% gain. Despite the company's good fortune, I questioned the durability of demand for many of its products. Also, Samsung has been plagued with corporate-governance challenges, with its chairman doing jail time for the alleged bribery of South Korea's former president. Position management was partly responsible for the negative impact of FirstRand Limited, a South Africa-based provider of banking, investment and insurance products and services. I considered FirstRand a "best in class" bank in this country and added to the position earlier on. In November, however, FirstRand announced its decision to make an acquisition I thought was a mistake. I therefore sold the stock from the fund and, in doing so, missed its year-end rally. Our overweighted position in James Hardie Industries also detracted. This Dublin-based company supplies fibercement building products and has significant exposure to the United States. Production problems sidetracked the stock this period. Moreover, I sold our stake at what proved to be an inopportune time. Q: What's your outlook at year-end, Sammy I'm encouraged by signs of simultaneous acceleration in global economies. In particular, I'm encouraged by how well China is managing its transition to a consumer-driven economy. Although this process has much further to go, and I would prefer to see more of a free-market approach, the government has done a good job so far, in my opinion. 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 prospects there, in my view. Given this improving picture, I've given the fund more exposure to economically sensitive sectors such as technology and industrials, but I remain committed to doing so with a quality bias, given what I see as somewhat stretched valuations. 3 For definitions, fund risks and other important information, please see the Definitions and Important section of this Q&A.

4 LARGEST CONTRIBUTORS VS. BENCHMARK Sammy Simnegar on his focus on quality and momentum: "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 101% and a downside capture of about 69%, resulting in significant overall outperformance." Holding Wirecard AG Tencent Holdings Ltd. Naspers Ltd. Class N Market Segment Consumer Discretionary Average Relative Relative Contribution (basis points)* 0.53% % % 32 Relo Holdings Corp. Real Estate 0.53% 30 Maruti Suzuki India Ltd. * 1 basis point = 0.01%. Consumer Discretionary LARGEST DETRACTORS VS. BENCHMARK Holding Samsung Electronics Co. Ltd. Market Segment 0.51% 30 Average Relative Relative Contribution (basis points)* -1.16% -34 FirstRand Ltd. Financials 0.30% -27 James Hardie Industries PLC CDI Materials 0.13% -27 CRH PLC Materials 0.35% -19 Nippon Paint Holdings Co. Ltd. * 1 basis point = 0.01%. ASSET ALLOCATION Asset Class Materials 0.21% -16 Six Months Ago International Equities 86.36% 86.69% Developed Markets 68.38% 69.01% Emerging Markets 17.98% 17.68% Tax-Advantaged Domiciles 0.00% 0.00% Domestic Equities 12.54% 10.98% Bonds 0.00% 0.00% Cash & Net Other Assets 1.10% 2.33% 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 section of this Q&A.

5 MARKET-SEGMENT DIVERSIFICATION Market Segment Six Months Ago Industrials 23.37% 24.06% 19.06% 18.97% Financials 12.96% 12.37% Consumer Discretionary 11.85% 10.36% Consumer Staples 10.36% 14.00% Health Care 7.39% 6.76% Materials 7.06% 7.83% Real Estate 4.22% 2.01% Utilities 1.01% 0.74% Telecommunication Services 0.95% 0.56% Energy 0.64% 0.00% Other 0.00% 0.00% COUNTRY DIVERSIFICATION Country Six Months Ago United Kingdom 15.13% 12.70% United States 13.45% 13.67% France 10.02% 10.55% Japan 9.04% 7.25% Germany 7.36% 6.91% India 5.98% 4.70% Netherlands 4.11% 3.10% Switzerland 4.09% 4.64% Canada 3.96% 3.48% Hong Kong 3.28% 2.94% Ireland 2.72% 1.76% Sweden 2.25% 3.47% Brazil 2.25% -- China 1.96% 2.12% Australia 1.73% 2.37% South Africa 1.58% 2.03% Spain 1.57% 1.76% Philippines 1.51% 1.55% Taiwan 1.30% 1.31% Indonesia 1.14% 1.16% Israel 1.04% 1.58% 10 LARGEST HOLDINGS Holding Tencent Holdings Ltd. Alibaba Group Holding Ltd. sponsored ADR Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR British American Tobacco PLC (United Kingdom) Market Segment Six Months Ago 1.77% 1.51% 1.38% 1.27% 1.30% 1.31% Consumer Staples 1.21% 1.15% Unilever PLC Consumer Staples 1.21% 1.27% Naspers Ltd. Class N Consumer Discretionary 1.07% 0.92% AIA Group Ltd. Financials 0.97% 0.90% SAP SE 0.93% 1.00% Diageo PLC Consumer Staples 0.91% -- LVMH Moet Hennessy - Louis Consumer Vuitton SA Discretionary 0.82% 0.85% 10 Largest Holdings as a % of Net Assets 11.56% 12.09% 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 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 International Capital Appreciation - Initial Class Gross Expense Ratio: 0.99% % 36.45% 36.45% 10.97% 11.35% 5.31% VIP International Capital Appreciation - Investor Class Gross Expense Ratio: 1.07% % 36.33% 36.33% 10.87% 11.27% 5.23% MSCI All Country World ex USA (Net of MA Tax) Index 11.52% 27.40% 27.40% 8.00% 6.96% 1.99% Morningstar Insurance Foreign Large Growth 10.62% 30.97% 30.97% 8.70% 8.10% 2.83% 1 Life of Fund (LOF) if performance is less than 10 years. Fund inception date: 12/22/ 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 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 4.47% 12.38% 35.36% 35.36% 10.08% 10.46% 4.47% Fidelity Income Advantage B 4.26% 12.26% 35.09% 35.09% 9.86% 10.24% 4.26% 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+) 4.97% 12.67% 35.99% 35.99% 10.62% 10.99% 4.97% 4.94% 12.67% 35.99% 35.99% 10.63% 10.99% 4.94% 5.13% 12.75% 36.19% 36.19% 10.79% 11.16% 5.13% Fidelity Retirement Reserves - Subaccount Inception: July 01, 2005; New York Only Inception: July 01, Fidelity Income Advantage - Subaccount Inception: July 01, 2005; New York Only Inception: July 01, 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 July 1, 2005, 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 section of this Q&A.

8 Definitions and Important 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. 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. 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 All Country World ex USA Index (Net MA Tax) is a marketcapitalization-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. Index returns are adjusted for tax withholding rates applicable to U.S. based mutual funds organized as Massachusetts business trusts. 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 2018 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 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 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 4.47% 35.36% 10.08% 10.46% 4.47% Fidelity Income Advantage 4.26% 35.09% 9.86% 10.24% 4.26% 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+) 4.97% 35.99% 10.62% 10.99% 4.97% 4.94% 35.99% 10.63% 10.99% 4.94% 5.13% 36.19% 10.79% 11.16% 5.13% 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. 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.