Fidelity VIP Telecommunications Portfolio

Transcription

1 Fidelity VIP s Portfolio Key Takeaways For the 12 months ending December 31, 2017, the fund's share classes gained about 2%, besting the -5.71% result of its sector benchmark, the MSCI IMI U.S. 25/50 Index. In comparison, the broad-based S&P 500 index advanced 21.83%. The telecommunications sector struggled to keep pace with the broader market in 2017, as many investors gravitated toward technology and other sectors with better growth opportunities. Stock selection largely drove the fund's outperformance versus the MSCI benchmark. Choices in integrated telecommunication services and wireless telecommunication services added value, as did underweighting two poor-performing index components: Windstream Holdings and NII Holdings. Conversely, stock picking in application software detracted, as did positioning among alternative carriers especially avoiding strong-performing PDVWireless. While continuing to emphasize companies that can benefit from the growth of broadband, Portfolio Manager Matthew Drukker plans to monitor mergers and acquisitions within the industry, as well as the anticipated rollout of 5G networks. On December 8, 2017, shareholders approved proposals to eliminate each sector/industry fund's fundamental "invests primarily" policy and to modify the fundamental concentration policy for certain funds. The changes took place on January 1, 2018, and will 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 Matthew Drukker Fund Facts Matthew Drukker Portfolio Manager Start Date: April 24, 2007 Size (in millions): $42.86 Investment Approach Fidelity VIP s Portfolio is a sectorbased, equity-focused strategy that seeks to outperform its benchmark through active management. We use a bottom-up, stock-by-stock approach to capitalize on our view that both earnings revisions and earnings growth drive telecommunications stocks. As such, the fund tends to emphasize companies with sustainable growth that is likely to beat expectations, as well as secular growers that can drive consistent excess returns. Due to the capital intensity of the telecom sector, we believe free-cash-flow yield is the best profitability indicator to determine earnings power. So, we look for companies that generate a lot of cash from strong sales growth and benefit from high barriers to entry, quality franchises, strong management teams and positive market-share trends over multiyear periods. Sector strategies could be used by investors as alternatives to individual stocks for either tactical- or strategic-allocation purposes. Q: Matt, how did the fund perform for the year ending December 31, 2017 Investors generally shunned telecommunication services stocks for most of the year to instead pursue investments with better growth opportunities in a bullish market. In this environment, the fund's share classes gained about 2%, solidly outpacing the -5.71% result of its sector benchmark, the MSCI IMI U.S. 25/50 Index. However, the fund trailed the 21.83% advance of the broad-based S&P 500 index. Q: What factors impacted the performance of telecom stocks in 2017 Companies in the benchmark reported solid earnings, but stock multiples compressed for much of the period as investors rotated to other sectors such as information technology, the top-performer in the S&P 500 for Telecom finally received some positive news in December, with the passage of U.S. tax reform, which lifted earnings outlooks for many companies in the sector and sent shares higher. As primarily domestic businesses with high capital expenditures, telecom companies stood to become some of the biggest beneficiaries of tax relief. On the regulatory front, the current U.S. administration appears to be taking a less-restrictive approach than the past administration. As the Federal Communications Commission voted to repeal the classification of the internet as a Title II service of the Communications Act of 1934, also known as the open internet order or net neutrality, it is seemingly closing the door on legislative efforts to treat internet service as a public utility, therefore reducing the potential for price regulation. Q: Given the market environment, how was the fund positioned I remained focused on companies I think can profit from the growth of broadband consumption. U.S.-based telecom firms are experiencing a lot of competition and are spending substantial capital to stay on top of broadband demand and gain an edge over their 2 For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.

3 rivals. The major wireless providers are having difficulty translating increases in data usage into revenue growth, since data prices deflate equally or sometimes faster than the growth of data consumption. This tends to create both winners and losers across the telecom sector. Because I believe stock prices ultimately follow the earnings and cash flows of the companies they represent, I invest the fund's assets in firms I expect to increase pershare earnings at above-benchmark rates over the long term. Given the fixed-cost nature and high incremental margins of telecom companies, I usually find that sales growth drives earnings and cash flow more sustainably than cutting costs. Ideally, the fund will own companies with consistently higher sales growth and cash flow than the average of stocks in the MSCI index. Overall, my emphasis on companies with these characteristics gave the fund a meaningful edge over the MSCI index in Q: What specific factors helped the fund outperform the MSCI index this period Stock selection was the biggest driver of the fund's relative performance by far. Choices among integrated telecommunication services and wireless telecommunication services firms helped the most. Underweighting poor-performing index component Windstream Holdings contributed more than any other individual position. Windstream, a wireline-only company, struggled amid high debt, declining demand for voice services, and market-share losses. Its shares fell hardest in early August, after the company posted a second-quarter loss and eliminated its dividend. Similarly, underweighting NII Holdings, a wireless provider in Latin America, added value. It had a weak balance sheet and suffered lackluster subscriber trends, market-share challenges and high exposure to voice services. While I did own a small stake thinking the company might be an acquisition target, I ultimately sold it in December to invest in other opportunities. Q: What else helped The fund's out-of-index positions in a handful of specialized real estate investment trusts (REITs) also gave the fund an edge over the MSCI index. Here, shares of American Tower, a large owner/operator of wireless communication towers, returned 37% in American Tower exemplifies my focus on companies capitalizing on the growth of broadband. The company has strong pricing power, long-term customer agreements with wireless carriers, and has benefited from its customers' investments to remain competitive. Given the stock's solid performance, I trimmed the fund's stake in November on price strength. The fund's underweighting in integrated telecom provider Consolidated Communications Holdings further lifted the relative result. Consolidated struggled through much of the period and its shares dropped further in early November due to disappointing revenue. The stock fell off so much, however, that I added modestly to the position in November, at what I believed was a discounted valuation. Q: What held back the fund's relative result Stock picking in application software generally detracted, as did underweighting alternative carriers, on average. Within the latter group, it hurt to not own index component PDVWireless, a developer of private broadband networks. PDV is one of the largest license holders of 900-megahertz spectrum, which primarily is used for dispatch systems and local two-way radio communications. Generally, I worried about the company's ability to fully monetize its licenses. However, in 2017, the company began to see more success selling to transportation companies and commercial fleets. Elsewhere, untimely ownership of Alaska-based General Communications, a regional cable and wireless company, also hurt. I built much of the fund's stake after the company agreed to be acquired by Liberty Interactive in April, missing much of the benefit from the takeout premium. I still held on to the fund's position in General Communications at period end, as I believe once this deal closes, operations may improve. Q: What will you be watching moving forward I'm monitoring several things, including the efforts of cable companies to push their way into wireless, which I think could affect future competition in the telecom sector. However, the main event, from my perspective, is the embattled merger plan between national wireless and pay- TV provider AT&T and media company Time Warner. In November, the U.S. Department of Justice (DOJ) sued to block this transaction. Since then, the companies have lawyered up, responded to the DOJ's arguments line-byline, and made plans to defend their merger in court in March. In my view, if leaders in media distribution and content are permitted to pair up in the U.S., it could shift the strategy of other telecom companies, potentially leading to additional deals within the telecom industry, as many firms potentially seek to differentiate their offerings of bundled services. 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 Matt Drukker on the anticipated rollout of the 5G network: "As we proceed into 2018, I'll be closely watching the rollout of the first iteration of 5G networks. "As wireless networks have evolved from 1G to 4G, carriers have added more broadband capabilities. For example, the move from 3G to 4G allowed for greater spectral efficiency the amount of bits that can travel over airwaves and higher-bandwidth capabilities, resulting in better video streaming on smartphones, essentially bringing video service to mobile devices. "The move to 5G is expected to improve spectrum efficiency even further while also reducing latency, which is important for applications such as the internet of things and self-driving vehicles. Moreover, it will usher in the first use of millimeter waves, a new type of spectrum that should allow for higher data throughput. "Carriers are expected to roll out 5G networks in two phases. The first is with fixed-wireless broadband, which is mainly being spearheaded by Verizon Communications, one of the fund's largest holdings. Verizon is now testing a fixed-wireless broadband solution for home use. While the company still faces hurdles, lab results show this solution can be delivered with high throughput at close range and under good conditions. "It remains to be seen if Verizon can offer this capability in the real world. In general, a number of fixed-wireless solutions offered by other carriers in the past have failed due to poor range and interference from the local environment, such as rain and nearby trees. "The second phase will be 5G mobile. All the carriers are now laying the groundwork for their 5G networks, mainly by adding cell sites and high bandwidth backhaul. As a result, I think we should anticipate additional fiber being laid by carriers and added spectrum acquisitions in 2018." Holding Windstream Holdings, Inc. NII Holdings, Inc. Market Segment Integrated Wireless Average Relative Weight Relative Contribution (basis points)* -0.88% % 106 American Tower Corp. Specialized REITs 2.23% 94 Consolidated Communications Holdings, Inc. IDT Corp. Class B * 1 basis point = 0.01%. Integrated Integrated LARGEST DETRACTORS VS. BENCHMARK Holding Market Segment -1.19% % 69 Average Relative Weight Relative Contribution (basis points)* PDVWireless, Inc. Alternative Carriers -1.85% -73 General Communications, Inc. Class A Integrated 0.32% -41 ORBCOMM, Inc. Alternative Carriers -1.54% -40 Synchronoss Technologies, Inc. Shenandoah s Co. * 1 basis point = 0.01%. Application Software 0.14% -39 Wireless -0.77% 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 Verizon Communications, Inc. Integrated 21.96% 23.12% AT&T, Inc. Integrated 10.37% 11.25% T-Mobile U.S., Inc. Wireless 7.03% 6.50% CenturyLink, Inc. Alternative Carriers 4.88% 3.25% Liberty Global PLC Class C Cable & Satellite 4.35% 3.26% Time Warner, Inc. Movies & Entertainment 4.16% -- Zayo Group Holdings, Inc. Alternative Carriers 3.80% 2.10% General Communications, Inc. Class A Integrated 3.45% 2.85% Vonage Holdings Corp. Alternative Carriers 3.30% 2.20% Cogent Communications Group, Inc. Alternative Carriers 3.27% 3.00% 10 Largest Holdings as a % of Net Assets 66.58% 63.97% 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 Integrated 41.85% 48.06% Alternative Carriers 19.81% 18.86% Wireless 15.42% 14.41% Cable & Satellite 11.93% 8.81% Movies & Entertainment 4.26% 0.66% Specialized Reits 2.54% 2.52% Internet Software & 2.21% 2.03% Communications Equipment 0.94% -- Construction & Engineering 0.26% 0.55% ASSET ALLOCATION Asset Class Portfolio Weight Portfolio Weight Six Months Ago Domestic Equities 93.06% 93.01% International Equities 6.17% 6.08% Developed Markets 5.78% 5.69% Emerging Markets 0.39% 0.39% Tax-Advantaged Domiciles 0.00% 0.00% Bonds 0.00% 0.00% Cash & Net Other Assets 0.77% 0.91% 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 s Portfolio - Initial Class Gross Expense Ratio: 0.78% % 2.05% 2.05% 8.65% 10.01% 5.68% VIP s Portfolio - Investor Class Gross Expense Ratio: 0.86% % 1.89% 1.89% 8.57% 9.94% 5.59% S&P 500 Index 11.42% 21.83% 21.83% 11.41% 15.79% 8.50% MSCI US IMI 25/ % -5.71% -5.71% 5.85% 8.93% 4.63% Morningstar Insurance Communications 6.46% 1.90% 1.90% 6.73% 7.76% 2.84% 1 Life of Fund (LOF) if performance is less than 10 years. Fund inception date: 04/24/ 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 4.83% 3.62% 1.24% 1.24% 7.81% 9.13% 4.83% Fidelity Income Advantage B 4.62% 3.52% 1.03% 1.03% 7.60% 8.91% 4.62% Fidelity Personal Retirement Annuity C (for contracts purchased prior to 1/1/09 and on or after 9/7/10) Fidelity Personal Retirement Annuity C (for contracts purchased between 1/1/09 and 9/6/10) Fidelity Personal Retirement Annuity C (for contracts purchased on or after 9/7/10 with an initial purchase payment of $1M+) 5.33% 3.84% 1.63% 1.63% 8.30% 9.67% 5.33% 5.30% 3.84% 1.63% 1.63% 8.30% 9.67% 5.30% 5.49% 3.92% 1.79% 1.79% 8.47% 9.83% 5.49% Fidelity Retirement Reserves - Subaccount Inception: April 30, 2007; New York Only Inception: April 30, Fidelity Income Advantage - Subaccount Inception: April 30, 2007; New York Only Inception: April 30, Fidelity Personal Retirement Annuity - Subaccount Inception: April 30, 2007; New York Only Inception: April 30, 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 (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 telecom services industry is subject to government regulation of rates of return and services that may be offered and can be significantly affected by intense competition. The fund may have additional volatility because it can invest a significant portion of assets in securities of a small number of individual issuers. 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. The Board of Trustees unanimously approved a proposal to shareholders for trustee election that would combine oversight of Fidelity's sector funds with Fidelity's broader equity and high income funds under a single Board of Trustees. If approved, the unified Board would be effective on or about 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 25/50 Index is a modified market-capitalization-weighted index of stocks designed to measure the performance of 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 Small Cap 1750 Indices. 8

9 Manager Facts Matthew Drukker is a research analyst/portfolio manager at Fidelity Management & Research Company (FMRCo), the investment advisor for Fidelity's family of mutual funds. Fidelity Investments is a leading provider of investment management, retirement planning, portfolio guidance, brokerage, benefits outsourcing and other financial products and services to more than 20 million individuals, institutions and financial intermediaries. In this role, Mr. Drukker is responsible for covering the U.S. telecommunications industry (since 2010). He also manages Fidelity Select s Portfolio, Fidelity Telecom Central Fund, VIP s Portfolio (all since 2013), and Fidelity Select Wireless Portfolio (since 2016). Additionally, he is responsible for managing the telecommunications sub-portfolios of Fidelity Stock Selector All Cap Fund and Fidelity Series Broad Market Opportunities Fund (both since 2013). Prior to assuming his current responsibilities, Mr. Drukker comanaged Select Wireless Portfolio from 2011 to 2013, and covered the restaurant industry until September Before joining Fidelity full time in 2008, he was an intern in Fidelity's Equity Research division in Previously, Mr. Drukker was an investment banker in New York from 1999 to 2006, specializing in mergers and acquisitions and capital raising for financial institutions. He has been in the investments industry since Mr. Drukker earned his bachelor of arts degree in economics from Williams College and his master of business administration degree in finance from The Wharton School at the University of Pennsylvania. 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 March 31, 2018 Total Returns for the Variable Subaccount New York Only: 10 /Life of Subaccount 1 Annualized /Life of Subaccount Fidelity Retirement Reserves 6.53% -5.43% 4.55% 6.59% 6.53% Fidelity Income Advantage 6.31% -5.62% 4.34% 6.37% 6.31% 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+) 7.04% -5.03% 5.02% 7.11% 7.04% 7.01% -5.03% 5.02% 7.11% 7.01% 7.20% -4.89% 5.18% 7.27% 7.20% 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 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 LLC, Member NYSE, SIPC., 900 Salem Street, Smithfield, RI Fidelity Investments Institutional 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.