Fidelity VIP Health Care Portfolio

Transcription

1 Fidelity VIP Health Care Portfolio Key Takeaways For the year ending December 31, 2017, the fund's share classes gained about 25%, outpacing the 23.44% result of the MSCI U.S. IMI Health Care 25/50 Index, as well as the broadmarket S&P 500 index. In general, health care companies enjoyed solid balance sheets, fair valuations and rising demand for their products and services the past year, helping the sector top the S&P 500. Versus the MSCI sector index, the fund benefited from owning more-opportunistic stocks and avoiding some more-defensive index names particularly within the biotechnology industry. A sizable overweighting in Vertex Pharmaceuticals was the top individual relative contributor by a wide margin, while largely avoiding index components Merck and Celegene also helped. Conversely, our large overweighting in Allergan hurt most by far, with our position returning about -20% the past year. Despite the potential for policy risk, Portfolio Manager Eddie Yoon thinks health care companies should remain strong due to solid and continuing secular-demand dynamics. At year-end, the fund's biggest positions are stocks Eddie considers very strong growers with robust capital allocation. He's become focused on more-stable companies offering growth at a reasonable price, such as Becton Dickinson. On December 8, 2017, shareholders approved proposals from the Board of Trustees to eliminate each sector/industry fund's fundamental "invests primarily" policy and to modify the fundamental concentration policy for certain funds. The changes took effect on January 1, 2018, and do not impact how the funds are managed. MARKET RECAP U.S. equities gained 21.83% in 2017, as the S&P 500 index rose steadily and closed the year just shy of an alltime high after a particularly strong three-month finish. Early on, equities rallied on optimism for President Trump's pro-business agenda but leveled off in March amid fading optimism and stalled efforts by Congress to repeal and replace the Affordable Care Act. Upward momentum soon returned and continued through year-end with consumer sentiment and other market indicators staying positive. The lone exception was a brief cooldown in August, when geopolitical tension escalated and uncertainty grew regarding the future of health care, tax reform and the debt ceiling. Sectorwise, information technology fared best by a wide margin, rising 39% amid strong earnings growth from several major index constituents. A 24% gain in materials was spurred by increased demand, especially from China. Consumer discretionary gained 23%, despite many brick-and-mortar retailers suffering from online competition, and financials edged the broader market on an uptick in bond yields. Conversely, the defensive energy and telecom services sectors returned about -1% each. Rising interest rates held back real estate (+11%), while consumer staples (+13%) and utilities (+12%) struggled due to investors' general preference for risk assets. Not FDIC Insured May Lose Value No Bank Guarantee

2 Q&A An interview with Portfolio Manager Eddie Yoon Fund Facts Eddie Yoon Portfolio Manager Start Date: July 18, 2001 Size (in millions): $ Investment Approach Fidelity VIP Health Care Portfolio is a sector-based, equity-focused strategy that seeks to outperform its benchmark through active management. Stock picking is the core of our investment process and relies on fundamental, bottom-up research. We look to leverage Fidelity's deep and experienced global health care team in building a diversified portfolio of health care companies, ranging from high-quality, stable earnings growers to opportunistic names producing innovative products that disrupt the marketplace. Our fundamental analysis focuses on free cash flow and capital allocation, which we believe are the biggest drivers of long-term shareholder value, and also examines market opportunity, sales growth and margin outlook. We seek to concentrate the portfolio in our best ideas, but carefully manage risk through position sizing. Sector strategies could be used by investors as alternatives to individual stocks for either tactical- or strategic-allocation purposes. Q: Eddie, how did the fund perform for the year ending December 31, 2017 The fund's share classes gained about 25%, outpacing the 23.44% result of the MSCI U.S. IMI Health Care 25/50 Index, as well as the broad-market S&P 500. We also outperformed our peer group average. Health care stocks rallied in the first half of 2017, hitting a record high in June following the release of the Senate Republican health care bill after months of the party's efforts to dismantle the Affordable Care Act (ACA). While the ACA and drug prices became a source of volatility in the back half of the year, the health care sector finished 2017 ahead of the S&P 500. In general, health care companies enjoyed solid balance sheets, and stock valuations appeared fair to modestly below average on a historical basis. The sector also was helped by rising demand for health care products and services, partly due to an aging population. Q: What factors helped the fund outperform the MSCI sector index the past year The fund's holdings range from high-quality, stable earnings producers to opportunistic names offering innovative products. The broad mix of companies that make up the sector gives me flexibility to play both offense and defense, depending on my market outlook. We got the mix right in 2017, as a combination of owning moreopportunistic stocks and avoiding some of the more defensive index names boosted relative performance. In terms of industries, security selection in biotechnology was by far the most helpful. Despite continued political rhetoric regarding drug prices, biotech names generally benefited from strong trial data, innovative new products and merger-and-acquisition activity. Among individual stocks, a sizable overweighting in Vertex Pharmaceuticals was the fund's top relative contributor by a wide margin. Vertex is a large-cap biotech company focused on developing drugs to treat cystic fibrosis (CF). I was optimistic about the firm's plan to field a new class of triple combination CF treatments to potentially serve the largest remaining segment of untreated patients. Vertex 2 For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.

3 shares rose 103%, with notable jumps in March and July following news of positive trial results for its combination therapies. While I'm still positive on Vertex, I reduced the fund's position in the stock to take some profits. Vertex remained a sizable holding and notable overweighting at year-end. Q: What other choices significantly influenced relative performance It helped to largely avoid Celgene a stock I underweighted and then sold. Its shares took an October tumble amid a flurry of negative news, including the announcement that the company would cease trials for its candidate compound to treat Crohn's disease, and downward earnings guidance. These events were followed by worries over other products in Celgene's pipeline and the potential for a reshuffling of executives. Similarly, largely avoiding sizable benchmark component Merck also proved advantageous, as large-cap, moredefensive names tended to underperform. Merck is a relatively slow grower that does not align with the types of pharma names I seek for the fund; I prefer firms with stable-to-improving organic (core) growth. Intuitive Surgical a large fund holding manufactures robotic surgical systems, most notably the da Vinci Surgical System, which is used in minimally invasive surgeries such as hernia repair and colorectal procedures. The stock gained about 73% in 2017, as the firm continued to raise its procedure-growth guidance throughout the year. Intuitive won U.S. Food and Drug Administration (FDA) approval for the da Vinci X. This new robot has similar features to Intuitive's other models, but at a much lower price, making it attractive to cost-aware hospitals. While I sold some of the fund's position to lock in profits, I continue to like the firm's focus on strategic innovation and expansion. Lastly, I'll note that the fund's foreign holdings contributed overall, aided in part by a broadly weaker U.S. dollar. Q: What stocks disappointed Our large overweighting in Allergan hurt most by far. I expected the firm to benefit from its exposure to highgrowth, cash-paying markets, including best-in-class brands like Botox, Juvederm and CoolSculpting, and I also found the stock's valuation attractive. However, shares of Allergan returned about -21% the past year amid the firm's legal battle related to Restasis' intellectual property. In October, Allergan lost the patent lawsuit, potentially opening the door for early generic competition. Shares of Allergan also were hurt when the firm posted mixed clinical data for a potential treatment for nonalcoholic steatohepatitis (NASH), a liver condition. I reduced the fund's position in Allergan but it remained among our largest year-end holdings. It hurt to avoid index component AbbVie (+60%), which made a strong advance in early September on a bevy of good news. The global biotech company secured surprise patent protection concessions for Humira, its rheumatoid arthritis blockbuster, and had favorable clinical results. A sizable overweighting in Alexion Pharmaceuticals also dragged on results. Investors fretted over the price of Alexion's Soliris one of the world's most expensive prescription drugs. In addition, the firm had a tough time meeting lofty financial expectations. Amid the turmoil, Alexion named a new CEO, as the drugmaker sought to regain investor confidence following the exit of top management and an internal investigation into sales practices. Unfortunately, that confidence was not regained the past year, and I substantially cut our stake in Alexion but remained overweighted as of December 31. Q: Eddie, what is your outlook as of year-end I continue to believe policy risk will always be a factor for the sector. Despite the risk, I think health care companies should remain strong due to solid and continuing seculardemand dynamics. I also believe that the potential for drug-pricing regulation is another issue that likely will continue to loom over the pharmaceuticals and biotechnology industries in Lately, the market appears to have narrowed, so I've maintained a high concentration in the fund's top-10 holdings. The fund's biggest positions at period end are in stocks I feel most confident about: very strong growers with what we consider robust capital allocation. I've also become focused on more-stable companies offering growth at a reasonable price, in areas such as medical equipment and large-cap biotechnology. For example, this period I established a large position in Becton, Dickinson. The firm makes syringes and other medical staples used by health providers worldwide. As the global utilization of health care continues to increase, I expect the firm to continue to grow. In my view, few firms in this space will experience improving fundamentals into 2018, but I think Becton, Dickinson is one that could. 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 Eddie Yoon on tech-enabled health care: "Looking ahead to 2018 and beyond, one of the biggest trends I'm seeing in health care is the emergence of new technologies being used by health care companies to offer a more consumerfriendly approach to services. "We're already seeing the adoption of tech-enabled services to meet consumer demand in a number of new ways. For example, companies are beginning to use mobile apps to help consumers better understand and use their benefits, interact with care teams and aggregate their clinical information. This should increase a consumer's health IQ and help them navigate a very complex, yet highly personal area of their lives. "Elsewhere, innovative technologies in the form of medical devices are not only bringing down the costs of health care for businesses and consumers, but also making procedures more reproducible and improving clinical outcomes. For instance, devices that continuously monitor diabetics' blood sugar can cut down on or eliminate the need for finger pricking, which can help patients more effectively manage a potentially costly chronic condition. Telemedicine business models also are on the rise. Patients can engage in clinical interaction over the phone, via a video chat or alternative web application, instead of at the doctor's office. "Going forward, I expect the way consumers interact with the health care system will continue to evolve, with demand for technology-enabled services increasing along with the sector's focus on consumer value. Shifting to some of these newer services may take time for many consumers, but adoption is already taking place. I'll continue to keep my eye on companies that can help consumers make more informed health care decisions and drive down costs." Holding Vertex Pharmaceuticals, Inc. Market Segment Average Relative Weight Relative Contribution (basis points)* Biotechnology 1.70% 163 Merck & Co., Inc. Pharmaceuticals -4.81% 130 Celgene Corp. Biotechnology -2.63% 97 Intuitive Surgical, Inc. Health Care Equipment 2.07% 94 AnaptysBio, Inc. Biotechnology 0.19% 82 * 1 basis point = 0.01%. LARGEST DETRACTORS VS. BENCHMARK Holding Market Segment Average Relative Weight Relative Contribution (basis points)* Allergan PLC Pharmaceuticals 4.03% -197 AbbVie, Inc. Biotechnology -3.46% -119 Alexion Pharmaceuticals, Inc. Biotechnology 1.63% -109 TESARO, Inc. Biotechnology 1.07% -80 Abbott Laboratories * 1 basis point = 0.01%. Health Care Equipment -2.41% For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.

5 10 LARGEST HOLDINGS Holding Market Segment Portfolio Weight Portfolio Weight Six Months Ago UnitedHealth Group, Inc. Managed Health Care 8.40% 7.02% Amgen, Inc. Biotechnology 7.45% 9.31% Becton, Dickinson & Co. Health Care Equipment 6.17% 3.64% Boston Scientific Corp. Health Care Equipment 4.50% 4.98% Cigna Corp. Managed Health Care 4.27% 3.17% Humana, Inc. Managed Health Care 4.03% 2.34% Biogen, Inc. Biotechnology 3.57% 0.95% Bristol-Myers Squibb Co. Pharmaceuticals 3.17% 2.26% Cerner Corp. Health Care Technology 2.50% -- Allergan PLC Pharmaceuticals 2.47% 7.23% 10 Largest Holdings as a % of Net Assets 46.53% 49.68% Total Number of Holdings The 10 largest holdings are as of the end of the reporting period, and may not be representative of the fund's current or future investments. Holdings do not include money market investments. MARKET-SEGMENT DIVERSIFICATION Market Segment Portfolio Weight Portfolio Weight Six Months Ago Biotechnology 32.94% 27.37% Health Care Equipment 20.83% 24.20% Managed Health Care 16.94% 16.57% Pharmaceuticals 15.87% 17.35% Health Care Technology 5.03% 3.15% Health Care Facilities 1.40% 1.86% Drug Retail 1.30% 2.11% Health Care Services 1.12% 2.77% Life Sciences Tools & Services 0.94% 0.93% Health Care Distributors 0.90% 0.93% Other 2.15% 1.35% ASSET ALLOCATION Asset Class Portfolio Weight Portfolio Weight Six Months Ago Domestic Equities 86.83% 91.30% International Equities 12.61% 8.01% Developed Markets 10.62% 6.53% Emerging Markets 1.99% 1.48% Tax-Advantaged Domiciles 0.00% 0.00% Bonds 0.00% 0.00% Cash & Net Other Assets 0.56% 0.69% 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 Health Care Portfolio - Initial Class Gross Expense Ratio: 0.67% % 25.05% 25.05% 6.01% 19.83% 13.05% VIP Health Care Portfolio - Investor Class Gross Expense Ratio: 0.75% % 24.97% 24.97% 5.93% 19.72% 12.96% S&P 500 Index 11.42% 21.83% 21.83% 11.41% 15.79% 8.50% MSCI US IMI Health Care 25/ % 23.44% 23.44% 8.59% 18.07% 11.64% Morningstar Insurance Health 3.79% 22.01% 22.01% 5.34% 17.08% 11.99% 1 Life of Fund (LOF) if performance is less than 10 years. Fund inception date: 07/18/ 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 12.15% 2.29% 24.05% 24.05% 5.16% 18.87% 12.15% Fidelity Income Advantage B 11.92% 2.18% 23.80% 23.80% 4.95% 18.63% 11.92% 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+) 12.67% 2.53% 24.66% 24.66% 5.67% 19.44% 12.67% 12.64% 2.53% 24.66% 24.66% 5.67% 19.44% 12.64% 12.84% 2.60% 24.84% 24.84% 5.83% 19.62% 12.84% Fidelity Retirement Reserves - Subaccount Inception: July 30, 2001; New York Only Inception: July 30, Fidelity Income Advantage - Subaccount Inception: July 30, 2001; New York Only Inception: July 30, Fidelity Personal Retirement Annuity - Subaccount Inception: August 15, 2005; New York Only Inception: October 28, Fidelity Retirement Reserves' underlying fund options are Initial Class fund offerings. Fidelity Income Advantage's underlying fund options are Initial Class fund offerings. Fidelity Personal Retirement Annuity's underlying fund options are Investor Class fund offerings. A In NY, Retirement Reserves B In NY, Income Advantage C In NY, Personal Retirement Annuity * Total returns are historical and include changes in share price (for the fund) and unit price (for the variable subaccount) and reinvestment of dividends and capital gains, if any. ** Returns for Fidelity Retirement Reserves include the 0.80% annual annuity charge. For Fidelity Retirement Reserves contracts, returns do not reflect the annual $30 maintenance fee which applies to contracts where purchase payments less any withdrawals are less than $25,000. Returns for Fidelity Income Advantage include the 1.00% annual annuity charge. Returns for Fidelity Personal Retirement Annuity ("FPRA") include the 0.25% annual annuity charge for contracts purchased prior to 1/1/2009, and on or after 9/7/2010. For FPRA contracts purchased between 1/1/2009 and 9/6/2010, returns include a 0.35% annual annuity charge prior to 9/7/2010 and 0.25% thereafter. For FPRA contracts purchased on or after 9/7/2010 with an initial purchase payment of $1,000,000 or more, returns include a 0.10% annual annuity charge. Life of subaccount returns are from the subaccount inception, the date the portfolio was first available in the insurance company's variable product. Please see the last page(s) of this Q&A document for most-recent calendar-quarter performance. 7 For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.

8 Definitions and Important Information 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. 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. The health care industries are subject to government regulation and reimbursement rates, as well as government approval of products and services, which could have a significant effect on price and availability, and can be significantly affected by rapid obsolescence and patent expirations. The fund may have additional volatility because it can invest a significant portion of assets in securities of a small number of individual issuers. Small Cap 1750 Indices. S&P 500 is a market-capitalization-weighted index of 500 common stocks chosen for market size, liquidity, and industry group representation to represent U.S. equity performance. MARKET-SEGMENT WEIGHTS Market-segment weights illustrate examples of sectors or industries in which the fund may invest, and may not be representative of the fund's current or future investments. Should not be construed or used as a recommendation for any sector or industry. 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 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. At a shareholder meeting on 12/8/17, a proposal was approved to combine the oversight of Fidelity's sector funds with Fidelity's broader equity and high income funds under a single Board of Trustees. The unified Board will be effective on 3/1/18. Effective 12/18/17, the fund's redemption fee has been removed. 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 US IMI Health Care 25/50 Index is a modified marketcapitalization-weighted index of stocks designed to measure the performance of Health Care companies in the MSCI U.S. Investable Market 2500 Index. The MSCI U.S. Investable Market 2500 Index is the aggregation of the MSCI U.S. Large Cap 300, Mid Cap 450, and 8

9 Manager Facts Eddie Yoon is a sector leader 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. Yoon is responsible for the coverage of health care equipment and supplies stocks, and serves as the health care sector leader. Additionally, he manages various Fidelity funds. Prior to joining Fidelity in 2006, Mr. Yoon held multiple positions at JPMorgan Asset Management, including analyst and coportfolio manager. He has been in the investments industry since Mr. Yoon earned his bachelor of arts degree in business economics from Brown University. 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 12.15% 24.05% 5.16% 18.87% 12.15% Fidelity Income Advantage 11.92% 23.80% 4.95% 18.63% 11.92% 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+) 12.67% 24.66% 5.67% 19.44% 12.67% 12.64% 24.66% 5.67% 19.44% 12.64% 12.84% 24.84% 5.83% 19.62% 12.84% 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.