fidelity variable insurance products: fundsmanager – 20%, 50%, … · 2021. 3. 8. · let’s say...

Fidelity® Variable Insurance Products: FundsManager – 20%, 50%, 60%, 70%, 85% Portfolio

FundsManager 20% PortfolioFundsManager 50% PortfolioFundsManager 60% PortfolioFundsManager 70% PortfolioFundsManager 85% Portfolio

Annual ReportDecember 31, 2020

Annual Report

Note to Shareholders 3Performance 4Management’s Discussion of Fund Performance 9VIP FundsManager® 20% Portfolio 10 Investment Summary

11 Schedule of Investments15 Financial Statements

VIP FundsManager® 50% Portfolio 20 Investment Summary21 Schedule of Investments24 Financial Statements




Notes to Financial Statements 59Report of Independent Registered Public Accounting Firm

68

Trustees and Officers 69Shareholder Expense Example 74Distributions 76Board Approval of Investment Advisory Contracts and Management Fees

78

To view a fund’s proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission’s (SEC) web site at http://www.sec.gov.You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.Fidelity® Variable Insurance Products are separate account options which are purchased through a variable insurance contract.Standard & Poor’s, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.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. © 2021 FMR LLC. All rights reserved.

Contents

This report and the financial statements contained herein are submitted for the general information of the shareholders of the Funds. This report is not authorized for distribution to prospective investors in the Funds unless preceded or accompanied by an effective prospectus.A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund’s Forms N-PORT may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC’s Public Reference Room may be obtained by calling 1-800-SEC-0330.For a complete list of a fund’s portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity’s web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEENeither the Funds nor Fidelity Distributors Corporation is a bank.

3 Annual Report

Note to Shareholders:

Early in 2020, the outbreak and spread of a new coronavirus emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and the outlook for corporate earnings. The virus causes a respiratory disease known as COVID-19. On March 11, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread.

In the weeks following, as the crisis worsened, we witnessed an escalating human tragedy with wide-scale social and economic consequences from coronavirus-containment measures. The outbreak of COVID-19 prompted a number of measures to limit the spread, including travel and border restrictions, quarantines, and restrictions on large gatherings. In turn, these resulted in lower consumer activity, diminished demand for a wide range of products and services, disruption in manufacturing and supply chains, and – given the wide variability in outcomes regarding the outbreak – significant market uncertainty and volatility. Amid the turmoil, global governments and central banks took unprecedented action to help support consumers, businesses, and the broader economies, and to limit disruption to financial systems.

The situation continues to unfold, and the extent and duration of its impact on financial markets and the economy remain highly uncertain. Extreme events such as the coronavirus crisis are “exogenous shocks” that can have significant adverse effects on mutual funds and their investments. Although multiple asset classes may be affected by market disruption, the duration and impact may not be the same for all types of assets.

Fidelity is committed to helping you stay informed amid news about COVID-19 and during increased market volatility, and we’re taking extra steps to be responsive to customer needs. We encour-age you to visit our websites, where we offer ongoing updates, commentary, and analysis on the markets and our funds.

4Annual Report

VIP FundsManager® 20% Portfolio

Performance: The Bottom LineAverage annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. 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 performance information included the effect of these additional charges, the total returns would have been lower. How a fund did yesterday is no guarantee of how it will do tomorrow.

Average Annual Total Returns

For the periods ended December 31, 2020 Past 1 year

Past 5 years

Past 10 years

Service Class 8.11% 5.31% 4.41%Service Class 2 7.97% 5.16% 4.26%Investor Class 8.21% 5.33% 4.41%

$10,000 Over 10 Years

Let’s say hypothetically that $10,000 was invested in VIP FundsManager® 20% Portfolio - Investor Class on December 31, 2010.

The chart shows how the value of your investment would have changed, and also shows how the Bloomberg Barclays U.S. Aggregate Bond Index performed over the same period.

Period Ending Values

$15,400 VIP FundsManager® 20% Portfolio - Investor Class

$14,576 Bloomberg Barclays U.S. Aggregate Bond Index

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Past 5 years

Past 10 years




The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.



$36,700 S&P 500® Index

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Past 5 years

Past 10 years







$36,700 S&P 500® Index

7 Annual Report





Past 5 years

Past 10 years







$36,700 S&P 500® Index

8Annual Report





Past 5 years

Past 10 years







$36,700 S&P 500® Index

9 Annual Report

Management’s Discussion of Fund Performance

Market Recap: Global financial markets were highly volatile and unpredictable in 2020, a year that will be remembered by most investors for the impact of the coronavirus pandemic. The early-2020 outbreak and spread of COVID-19 resulted in a sharp decline for risk assets, followed by a historic rebound. The crisis and containment efforts led to broad contraction in economic activity and dislocation in financial markets. Rapid and expansive monetary- and fiscal-policy responses partially offset the economic disruption and fueled the market surge for many assets from late March through the end of the year.

Non-U.S. equities gained 10.81% in 2020, according to the MSCI ACWI (All Country World Index) ex USA Index, despite significant ups and downs related to the pandemic. Emerging markets (+19%) was the top region, followed by Japan (+15%) and Europe ex U.K. (+12%). Conversely, the U.K. (-10%), Canada (+6%) and Asia Pacific ex Japan (+7%) lagged. By sector, information technology (+46%) was by far the top performer, while consumer discretionary (+23%) and materials (+22%) also notably outpaced the index. Energy (-23%), real estate (-9%) and financials (-4%) all underperformed.

The Dow Jones U.S. Total Stock Market Index gained 20.79% for the year. After a sharp decline in the first quarter (-20.96%) due to the coronavirus outbreak, U.S. equities reversed course, driven by resilient corporate earnings and potential for a vaccine breakthrough, and closed the year at an all-time high. Among sectors, consumer discretionary (+47%) and information technology (+46%) led, whereas energy (-33%) fared worst, followed by real estate (-5%). Large-cap stocks performed about on par with smaller-caps, while growth handily outpaced value. Commodities notably lagged equities.

Turning to fixed income, U.S. taxable investment-grade bonds (the Bloomberg Barclays U.S. Aggregate Bond Index) rose 7.51%, as most categories generated a solid gain. Corporate bonds (+9.35%) led the way, along with commercial mortgage backed securities (+8.11%), Treasury securities (+8.00) and government bonds (7.94%). Agency bonds (+5.48%) and mortgage-backed securities (+3.87%) had smaller gains. Extended (non-core) categories outside the index were mixed, including Treasury Inflation-Protected Securities (+10.99%), high-yield bonds (+6.07%), emerging-markets debt (+5.88%) and floating-rate bank loans (+3.50%).

Comments from Lead Portfolio Manager Geoff Stein and Co-Portfolio Manager Avishek Hazrachoudhury: For the year, the Portfolios’ share classes posted gains ranging from about 8% to 18%, and each outpaced their respective Composite benchmarks. Strong security selection, particularly among U.S. and international developed-markets (DM) equities, fueled the Portfolios’ returns versus Composite benchmarks and more than offset negative results from asset class positioning. Exceptional performance from Fidelity® Stock Selector All Cap Fund – which topped its benchmark, the S&P 500 Index, by a sizable margin – drove U.S. stock selection. The fund benefited from picks in several sectors, most notably information technology, health care and communication services. Fidelity® Overseas Fund led the way in terms of international DM stock selection, also handily outperforming its benchmark, the MSCI EAFE Index, powered by choices in continental Europe and the U.K. Picks in Japan also helped but were partially offset by an underweighting in that top-performing market. Security selection in emerging markets (EM) provided a further boost to relative performance, thanks to robust stock choices in China via Fidelity Emerging Markets Fund. Turning to asset class positioning, our equity allocation strategy substantially hampered relative performance this past year, mostly due to positioning in late February and March. During that time, we had moderate overweightings in U.S. and EM stocks, when markets around the world fell amid coronavirus pandemic fears. Beginning in late March, we increased the Portfolios’ equity exposure, which resulted in modest contributions from foreign DM and EM stocks. The Portfolios’ holdings of large-cap and value-oriented U.S. equity funds did not compare favorably to the performance of our all-cap U.S. equity benchmark. This was an additional factor weighing on the relative outcome of our U.S. equity positioning. Out-of-benchmark equity exposure had a mixed impact, with commodities contributing, fueled by strong performance from Fidelity Select Gold Portfolio, whereas REITs (real estate investment trusts) detracted. Our fixed-income positioning had a neutral impact on relative performance. An underweighted allocation in investment-grade bonds, along with an out-of-benchmark stake in long-term U.S. Treasuries, aided performance. Unfortunately, this was mostly negated by adverse results in other market segments. Looking ahead, we are cautiously optimistic, as reflected by the Portfolios’ moderate overweightings in equity and credit risk.

The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such 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.

10Annual Report


Investment Summary (Unaudited)

The information in the following tables is based on the direct investments of the Fund.

Top Holdings as of December 31, 2020

% of fund’s net assets

Fidelity U.S. Bond Index Fund 42.8Fidelity Cash Central Fund 0.11% 22.1Fidelity Stock Selector All Cap Fund 14.1Fidelity Inflation-Protected Bond Index Fund 4.2Fidelity Overseas Fund 2.1Fidelity Emerging Markets Fund 1.8Fidelity Long-Term Treasury Bond Index Fund 1.5Fidelity High Income Fund 1.3Fidelity Low-Priced Stock Fund 1.0Fidelity New Markets Income Fund 1.0

91.9

Asset Allocation (% of fund’s net assets)

Period end*

Domestic Equity Funds 19.4%

International Equity Funds 7.5%

Bond Funds 50.8%

Short-Term Funds 22.1%

Short-Term Investments 0.3%

Net Other Assets (Liabilities)** (0.1)%* Futures – (3.3)%

** Net Other Assets (Liabilities) are not included in the pie chart

11 Annual Report

See accompanying notes which are an integral part of the financial statements.

Equity Funds – 26.9%Shares Value

Fidelity Commodity Strategy Fund (a) 173,878 $ 1,392,764Fidelity Contrafund (a) 267,474 4,482,861Fidelity Emerging Asia Fund (a) 43,906 2,999,210Fidelity Emerging Markets Discovery Fund (a) 196,430 3,303,958Fidelity Emerging Markets Fund (a) 369,479 16,877,792Fidelity Equity-Income Fund (a) 124,479 7,761,240Fidelity Europe Fund (a) 46,039 1,950,677Fidelity Global Commodity Stock Fund (a) 296,923 3,960,950Fidelity Gold Portfolio (a) 211,667 6,248,402Fidelity International Capital Appreciation Fund (a) 156,695 4,338,879Fidelity International Discovery Fund (a) 81,965 4,351,505Fidelity International Enhanced Index Fund (a) 357,477 3,671,290Fidelity International Small Cap Fund (a) 71,642 2,194,409Fidelity International Small Cap Opportunities Fund (a) 102,256 2,519,597Fidelity International Value Fund (a) 336,576 2,850,801Fidelity Japan Fund (a) 90,399 1,813,405Fidelity Japan Smaller Companies Fund (a) 57,275 1,017,772Fidelity Large Cap Value Enhanced Index Fund (a) 161,364 2,270,392Fidelity Low-Priced Stock Fund (a) 196,736 9,567,254Fidelity Overseas Fund (a) 327,815 19,485,340Fidelity Pacific Basin Fund (a) 46,338 2,032,387Fidelity Real Estate Investment Portfolio (a) 114,391 4,510,431Fidelity Stock Selector All Cap Fund (a) 2,315,287 131,600,933Fidelity U.S. Low Volatility Equity Fund (a) 596,793 6,403,594Fidelity Value Discovery Fund (a) 117,568 3,782,177

TOTAL EQUITY FUNDS(Cost $199,688,297) 251,388,020

Fixed-Income Funds – 50.8%

Fidelity High Income Fund (a) 1,411,834 12,339,428Fidelity Inflation-Protected Bond Index Fund (a) 3,600,856 39,753,453Fidelity Long-Term Treasury Bond Index Fund (a) 855,368 13,643,127Fidelity New Markets Income Fund (a) 593,170 8,956,865Fidelity U.S. Bond Index Fund (a) 32,148,667 400,250,902

TOTAL FIXED-INCOME FUNDS(Cost $435,640,129) 474,943,775

Money Market Funds – 22.1%

Fidelity Cash Central Fund 0.11% (b)(Cost $206,186,300) 206,145,071 206,186,300


Schedule of Investments December 31, 2020Showing Percentage of Net Assets

U.S. Treasury Obligations – 0.3%Principal Amount

Value

U.S. Treasury Bills, yield at date of purchase 0.06% to 0.09% 2/11/21 to 4/1/21 (c)(Cost $2,449,699) $ 2,450,000 $ 2,449,751

TOTAL INVESTMENT IN SECURITIES – 100.1%(Cost $843,964,425) 934,967,846

NET OTHER ASSETS (LIABILITIES) – (0.1)% (487,556)NET ASSETS – 100% $ 934,480,290

12Annual Report


Schedule of Investments – continued

Futures ContractsNumber

of contractsExpiration

DateNotional Amount

Value Unrealized Appreciation/ (Depreciation)

Purchased

Equity Index ContractsICE E-mini MSCI EAFE Index Contracts (United States) 46 March 2021 $ 4,900,840 $ 85,368 $ 85,368

Sold

Equity Index ContractsCME E-mini S&P 500 Index Contracts (United States) 187 March 2021 35,051,280 (777,401) (777,401)

TOTAL FUTURES CONTRACTS $ (692,033)

The notional amount of futures purchased as a percentage of Net Assets is 0.5%

The notional amount of futures sold as a percentage of Net Assets is 3.8%

For the period, the average monthly notional amount at value for futures contracts in the aggregate was $32,118,139.

Legend(a) Affiliated Fund

(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund’s holdings as of its most recent quarter end is available upon request.

In addition, each Fidelity Central Fund’s financial statements, which are not covered by the Fund’s Report of Independent Registered Public Accounting Firm, are available on the SEC’s website or upon request.

(c) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At period end, the value of securities pledged amounted to $2,449,751.

Affiliated Central FundsInformation regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:

Fund Income earnedFidelity Cash Central Fund $ 357,295Total $ 357,295

Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable.

The value, beginning of period, for the Fidelity Cash Central Fund was $71,453,177. Net realized gain (loss) and change in net unrealized appreciation (depreciation) on Fidelity Cash Central Fund is presented in the Statement of Operations, if applicable. Purchases and sales of the Fidelity Cash Central Fund were $223,472,353 and $88,738,829, respectively, during the period.

Affiliated Underlying FundsFiscal year to date information regarding the Fund’s investments in affiliated Underlying Funds, excluding any Money Market Central Funds, is presented below. Exchanges between classes of the same affiliated Underlying Funds may occur.

Affiliate

Value, beginning of period Purchases(a)

Sales Proceeds(a)

Dividend Income

Realized Gain (loss)

Change in Unrealized

appreciation (depreciation)

Value, end

of periodFidelity Commodity Strategy Fund $ 1,448,405 $ — $ — $ — $ — $ (55,641) $ 1,392,764Fidelity Contrafund 4,913,777 1,149,559 2,452,021 344,540 217,191 654,355 4,482,861Fidelity Diversified International Fund 3,559,565 36,879 3,127,021 — (173,369) (296,054) —Fidelity Emerging Asia Fund 1,724,288 453,879 70,911 367,806 (1,395) 893,349 2,999,210Fidelity Emerging Markets Discovery Fund 2,804,685 167,839 123,899 19,353 (7,120) 462,453 3,303,958Fidelity Emerging Markets Fund 12,656,964 848,531 511,842 231,181 (21,444) 3,905,583 16,877,792Fidelity Equity-Income Fund 4,783,665 3,438,281 943,490 226,265 (36,138) 518,922 7,761,240Fidelity Europe Fund 1,639,377 458,908 434,579 22,192 3,942 283,029 1,950,677Fidelity Global Commodity Stock Fund — 3,481,653 106,448 62,957 5,359 580,386 3,960,950Fidelity Gold Portfolio 5,929,232 2,600,654 3,929,136 270,360 641,922 1,005,730 6,248,402Fidelity High Income Fund — 11,562,239 527,034 372,530 1,119 1,303,104 12,339,428

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Affiliate


Sales Proceeds(a)

Dividend Income




Value, end

of periodFidelity Inflation-Protected Bond Index Fund $ 45,113,866 $ 12,056,045 $ 21,914,723 $ 515,514 $ 1,045,760 $ 3,452,505 $ 39,753,453Fidelity International Capital Appreciation Fund 1,061,688 2,995,210 783,219 54,986 46,249 1,018,951 4,338,879Fidelity International Discovery Fund 2,941,018 1,489,377 812,611 155,216 45,881 687,840 4,351,505Fidelity International Enhanced Index Fund 3,212,518 1,017,039 821,217 59,084 (32,701) 295,651 3,671,290Fidelity International Small Cap Fund 1,949,728 499,367 471,075 18,001 28,733 187,656 2,194,409Fidelity International Small Cap Opportunities Fund 1,893,623 472,702 228,721 — (1,458) 383,451 2,519,597Fidelity International Value Fund 2,280,114 1,002,527 622,098 48,724 (62,769) 253,027 2,850,801Fidelity Investments Money Market Prime Reserves Portfolio

Institutional Class 0.01% 149,641,174 14,321,930 164,022,354 684,573 71,109 (11,859) —Fidelity Japan Fund 7,415,567 846,160 7,187,541 73,870 1,115,210 (375,991) 1,813,405Fidelity Japan Smaller Companies Fund 3,373,246 15,950 2,251,430 15,950 138,772 (258,766) 1,017,772Fidelity Large Cap Value Enhanced Index Fund — 2,134,771 249,414 36,994 13,970 371,065 2,270,392Fidelity Long-Term Treasury Bond Index Fund 8,167,893 18,179,216 13,713,521 393,238 2,438,005 (1,428,466) 13,643,127Fidelity Low-Priced Stock Fund 4,633,556 5,546,654 1,077,438 785,403 (122,142) 586,624 9,567,254Fidelity Mega Cap Stock Fund 7,094,651 232,405 6,042,374 — (1,785,033) 500,351 —Fidelity New Markets Income Fund 8,133,255 1,418,258 647,501 344,976 (26,456) 79,309 8,956,865Fidelity Overseas Fund 11,587,622 8,661,038 4,109,462 102,223 109,543 3,236,599 19,485,340Fidelity Pacific Basin Fund 939,343 984,311 388,682 86,551 31,957 465,458 2,032,387Fidelity Real Estate Investment Portfolio 8,187,298 748,647 2,742,686 207,139 (1,223,159) (459,669) 4,510,431Fidelity Stock Selector All Cap Fund 90,810,513 27,384,710 7,117,923 6,528,055 (421,461) 20,945,094 131,600,933Fidelity U.S. Bond Index Fund 348,364,263 101,985,894 65,314,921 11,411,646 312,207 14,903,459 400,250,902Fidelity U.S. Low Volatility Equity Fund — 6,470,574 915,085 39,287 45,506 802,599 6,403,594Fidelity Value Discovery Fund 2,303,165 1,587,186 455,043 38,593 (952) 347,821 3,782,177

$ 748,564,059 $ 234,248,393 $ 314,115,420 $ 23,517,207 $ 2,396,838 $ 55,237,925 $ 726,331,795

(a) Includes the value of shares purchased or redeemed through in-kind transactions, if applicable.


Investment ValuationThe following is a summary of the inputs used, as of December 31, 2020, involving the Fund’s assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.

Valuation Inputs at Reporting Date:Description Total Level 1 Level 2 Level 3Investments in Securities:Equity Funds $ 251,388,020 $ 251,388,020 $ — $ —Fixed-Income Funds 474,943,775 474,943,775 — —Money Market Funds 206,186,300 206,186,300 — —Other Short-Term Investments and Net Other Assets 2,449,751 — 2,449,751 —Total Investments in Securities: $ 934,967,846 $ 932,518,095 $ 2,449,751 $ —

Derivative Instruments:Assets

Futures Contracts $ 85,368 $ 85,368 $ — $ —Total Assets $ 85,368 $ 85,368 $ — $ —Liabilities

Futures Contracts $ (777,401) $ (777,401) $ — $ —Total Liabilities $ (777,401) $ (777,401) $ — $ —Total Derivative Instruments: $ (692,033) $ (692,033) $ — $ —

Value of Derivative InstrumentsThe following table is a summary of the Fund’s value of derivative instruments by primary risk exposure as of December 31, 2020. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.

14Annual Report



Primary Risk Exposure / Derivative Type ValueAsset Liability

Equity Risk Futures Contracts (a) $ 85,368 $ (777,401)Total Equity Risk 85,368 (777,401)Total Value of Derivatives $ 85,368 $ (777,401)

(a) Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. In the Statement of Assets and Liabilities, the period end daily variation margin is included in receivable or payable for daily variation margin on futures contracts, and the net cumulative appreciation (depreciation) is included in Total accumulated earnings (loss).

15 Annual Report



Financial StatementsStatement of Assets and Liabilities

December 31, 2020

Assets Investment in securities, at value — See accompanying schedule:

Unaffiliated issuers (cost $2,449,699) $ 2,449,751Fidelity Central Funds (cost $206,186,300) 206,186,300Other affiliated issuers (cost $635,328,426) 726,331,795

Total Investment in Securities (cost $843,964,425) $ 934,967,846Cash 30,129Receivable for investments sold 330,987Receivable for fund shares sold 932Distributions receivable from Fidelity Central Funds 17,680

Total assets 935,347,574Liabilities Payable for investments purchased $ 17,680Payable for fund shares redeemed 424,274Accrued management fee 154,584Distribution and service plan fees payable 1,176Payable for daily variation margin on futures contracts 269,570

Total liabilities 867,284

Net Assets $ 934,480,290

Net Assets consist of: Paid in capital $ 841,976,182Total accumulated earnings (loss) 92,504,108Net Assets $ 934,480,290

Net Asset Value and Maximum Offering Price Service Class: Net Asset Value, offering price and redemption price per share ($60,793 ÷ 5,111 shares) $ 11.89

Service Class 2: Net Asset Value, offering price and redemption price per share ($9,323,453 ÷ 786,112 shares) $ 11.86

Investor Class: Net Asset Value, offering price and redemption price per share ($925,096,044 ÷ 77,829,105 shares) $ 11.89

16Annual Report


Financial Statements – continued

Statement of OperationsYear ended December

31, 2020

Investment Income Dividends:

Unaffiliated issuers $ 2,282Affiliated issuers 11,451,149

Interest 5,926Income from Fidelity Central Funds 357,295

Total income 11,816,652Expenses Management fee $ 2,149,405Distribution and service plan fees 22,095Independent trustees’ fees and expenses 2,764

Total expenses before reductions 2,174,264Expense reductions (439,357)Total expenses after reductions 1,734,907

Net investment income (loss) 10,081,745

Realized and Unrealized Gain (Loss) Net realized gain (loss) on:

Investment securities: Unaffiliated issuers 103,419Fidelity Central Funds (401)Other affiliated issuers 2,396,838

Foreign currency transactions 510Futures contracts (10,876,679)Capital gain distributions from underlying funds:

Affiliated issuers 12,066,058Total net realized gain (loss) 3,689,745Change in net unrealized appreciation (depreciation) on:

Investment securities: Unaffiliated issuers (79)Affiliated issuers 55,237,925

Assets and liabilities in foreign currencies (11)Futures contracts (564,041)

Total change in net unrealized appreciation (depreciation) 54,673,794Net gain (loss) 58,363,539Net increase (decrease) in net assets resulting from operations $ 68,445,284

Statement of Changes in Net AssetsYear ended

December 31, 2020

Year ended December 31,

2019Increase (Decrease) in Net Assets Operations

Net investment income (loss) $ 10,081,745 $ 15,330,350Net realized gain (loss) 3,689,745 3,695,673Change in net unrealized appreciation (depreciation) 54,673,794 55,726,922Net increase (decrease) in net assets resulting from operations 68,445,284 74,752,945

Distributions to shareholders (15,496,204) (43,905,467)Share transactions – net increase (decrease) 60,425,801 62,132,859

Total increase (decrease) in net assets 113,374,881 92,980,337Net Assets

Beginning of period 821,105,409 728,125,072End of period $ 934,480,290 $ 821,105,409

17 Annual Report


Financial Highlights

VIP FundsManager 20% Portfolio Service Class

Years ended December 31, 2020 2019 2018 2017 2016Selected Per–Share Data Net asset value, beginning of period $ 11.19 $ 10.75 $ 11.63 $ 11.04 $ 11.02Income from Investment Operations

Net investment income (loss) A .13 .22 .21 .16 .14Net realized and unrealized gain (loss) .77 .86 (.40) .65 .17

Total from investment operations .90 1.08 (.19) .81 .31Distributions from net investment income (.13) (.21) (.21) (.15) (.14)Distributions from net realized gain (.07) (.43) (.48) (.07) (.15)

Total distributions (.20) (.64) (.69) (.22) (.29)Net asset value, end of period $ 11.89 $ 11.19 $ 10.75 $ 11.63 $ 11.04

Total Return B,C 8.11% 10.39% (1.67)% 7.33% 2.83%Ratios to Average Net Assets D,E

Expenses before reductions .35% .35% .35% .35% .35%Expenses net of fee waivers, if any .20% .20% .20% .20% .20%Expenses net of all reductions .20% .20% .20% .20% .20%Net investment income (loss) 1.17% 2.01% 1.87% 1.41% 1.25%

Supplemental Data Net assets, end of period (000 omitted) $ 61 $ 57 $ 55 $ 59 $ 60Portfolio turnover rate F 32%G 33% 47% 61% 58%

A Calculated based on average shares outstanding during the period.B Total returns do not reflect charges attributable to your insurance company’s separate account. Inclusion of these charges would reduce the total returns shown.C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.D Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund’s expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense

information related to investments in Fidelity Central Funds, please refer to the “Investments in Fidelity Central Funds” note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset

arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.F Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).G Portfolio turnover rate excludes certain securities received or delivered in-kind.

18Annual Report


Financial Highlights – continued

VIP FundsManager 20% Portfolio Service Class 2




Total distributions (.19)B (.63) (.67) (.20) (.28)Net asset value, end of period $ 11.86 $ 11.16 $ 10.72 $ 11.60 $ 11.01

Total Return C,D 7.97% 10.26% (1.82)% 7.19% 2.66%Ratios to Average Net Assets E,F


Supplemental Data Net assets, end of period (000 omitted) $ 9,323 $ 8,978 $ 8,286 $ 8,188 $ 7,529Portfolio turnover rate G 32%H 33% 47% 61% 58%

A Calculated based on average shares outstanding during the period.B Total distributions per share do not sum due to rounding.C Total returns do not reflect charges attributable to your insurance company’s separate account. Inclusion of these charges would reduce the total returns shown.D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.E Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund’s expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense

information related to investments in Fidelity Central Funds, please refer to the “Investments in Fidelity Central Funds” note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset

arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.G Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).H Portfolio turnover rate excludes certain securities received or delivered in-kind.

19 Annual Report


VIP FundsManager 20% Portfolio Investor Class




Total distributions (.20) (.64) (.69) (.22) (.29)Net asset value, end of period $ 11.89 $ 11.18 $ 10.74 $ 11.62 $ 11.04



Supplemental Data Net assets, end of period (000 omitted) $ 925,096 $ 812,070 $ 719,784 $ 777,291 $ 739,074Portfolio turnover rate F 32%G 33% 47% 61% 58%




20Annual Report






Fidelity U.S. Bond Index Fund 30.8Fidelity Stock Selector All Cap Fund 30.6Fidelity Overseas Fund 6.2Fidelity Inflation-Protected Bond Index Fund 4.4Fidelity Low-Priced Stock Fund 2.4Fidelity Equity-Income Fund 2.2Fidelity U.S. Low Volatility Equity Fund 1.8Fidelity Emerging Markets Fund 1.4Fidelity Long-Term Treasury Bond Index Fund 1.4Fidelity International Discovery Fund 1.4

82.6


Period end*



Bond Funds 38.6%



Net Other Assets (Liabilities)** (0.1)%* Futures – (5.0)%


21 Annual Report



Fidelity Commodity Strategy Fund (a) 1,226,913 $ 9,827,572Fidelity Contrafund (a) 3,806,455 63,796,183Fidelity Emerging Asia Fund (a) 349,691 23,887,425Fidelity Emerging Markets Discovery Fund (a) 1,523,326 25,622,350Fidelity Emerging Markets Fund (a) 1,818,688 83,077,667Fidelity Equity-Income Fund (a) 2,025,503 126,290,103Fidelity Europe Fund (a) 856,378 36,284,732Fidelity Global Commodity Stock Fund (a) 5,215,594 69,576,030Fidelity Gold Portfolio (a) 1,395,283 41,188,768Fidelity International Capital Appreciation Fund (a) 2,923,543 80,952,896Fidelity International Discovery Fund (a) 1,542,194 81,875,089Fidelity International Enhanced Index Fund (a) 6,625,691 68,045,850Fidelity International Small Cap Fund (a) 1,332,284 40,807,848Fidelity International Small Cap Opportunities Fund (a) 1,695,932 41,787,756Fidelity International Value Fund (a) 6,240,728 52,858,965Fidelity Japan Fund (a) 2,719,641 54,555,995Fidelity Japan Smaller Companies Fund (a) 3,259,076 57,913,782Fidelity Large Cap Value Enhanced Index Fund (a) 3,678,730 51,759,725Fidelity Low-Priced Stock Fund (a) 2,897,625 140,911,503Fidelity Overseas Fund (a) 6,061,040 360,268,240Fidelity Pacific Basin Fund (a) 865,937 37,980,011Fidelity Real Estate Investment Portfolio (a) 192,370 7,585,166Fidelity Stock Selector All Cap Fund (a) 31,449,281 1,787,577,149Fidelity U.S. Low Volatility Equity Fund (a) 9,819,928 105,367,825Fidelity Value Discovery Fund (a) 1,842,043 59,258,536

TOTAL EQUITY FUNDS(Cost $2,760,621,030) 3,509,057,166


Fidelity High Income Fund (a) 7,769,437 67,904,879Fidelity Inflation-Protected Bond Index Fund (a) 23,085,859 254,867,888Fidelity Long-Term Treasury Bond Index Fund (a) 5,174,530 82,533,756Fidelity New Markets Income Fund (a) 3,270,400 49,383,047Fidelity U.S. Bond Index Fund (a) 144,538,232 1,799,500,995

TOTAL FIXED-INCOME FUNDS(Cost $2,079,596,438) 2,254,190,565






Value


TOTAL INVESTMENT IN SECURITIES – 100.1%(Cost $4,925,912,463) 5,848,943,759

NET OTHER ASSETS (LIABILITIES) – (0.1)% (2,936,247)NET ASSETS – 100% $5,846,007,512

22Annual Report





DateNotional Amount


Sold

Equity Index ContractsCME E-mini S&P 500 Index Contracts (United States) 1,556 March 2021 $ 291,656,640 $ (6,854,309) $ (6,854,309)











Affiliate


Sales Proceeds(a)

Dividend Income




Value, end

of periodFidelity Commodity Strategy Fund $ 10,220,184 $ — $ — $ — $ — $ (392,612) $ 9,827,572Fidelity Contrafund 82,972,985 6,198,033 38,960,810 5,105,326 4,502,902 9,083,073 63,796,183Fidelity Emerging Asia Fund 14,440,302 2,969,322 762,049 2,933,400 123,509 7,116,341 23,887,425Fidelity Emerging Markets Discovery Fund 23,240,771 209,640 1,312,294 150,417 (139,450) 3,623,683 25,622,350Fidelity Emerging Markets Fund 96,594,267 1,391,176 32,948,462 1,141,887 3,229,275 14,811,411 83,077,667Fidelity Equity-Income Fund 84,762,100 53,220,826 18,240,499 3,718,396 (1,739,643) 8,287,319 126,290,103Fidelity Europe Fund 37,127,713 5,452,897 9,891,506 414,092 (1,103,669) 4,699,297 36,284,732Fidelity Global Commodity Stock Fund 33,832,048 34,366,862 4,738,181 1,108,401 (900,256) 7,015,557 69,576,030Fidelity Gold Portfolio 82,267,597 2,389,683 69,494,393 2,063,770 21,786,991 4,238,890 41,188,768Fidelity High Income Fund — 66,010,624 5,946,227 2,163,072 213,197 7,627,285 67,904,879Fidelity Inflation-Protected Bond Index Fund 279,161,775 46,301,746 96,056,854 3,224,799 3,333,816 22,127,405 254,867,888Fidelity International Capital Appreciation Fund 24,027,130 45,592,964 6,195,587 1,029,043 37,342 17,491,047 80,952,896Fidelity International Discovery Fund 31,736,858 41,458,867 6,639,023 2,929,241 (36,739) 15,355,126 81,875,089Fidelity International Enhanced Index Fund 72,171,890 10,653,780 16,319,260 1,099,399 (3,351,307) 4,890,747 68,045,850Fidelity International Small Cap Fund 41,101,797 5,819,350 8,250,231 335,793 (876,289) 3,013,221 40,807,848Fidelity International Small Cap Opportunities

Fund 40,064,633 5,623,964 9,214,584 — 1,175,943 4,137,800 41,787,756Fidelity International Value Fund 52,384,726 8,107,477 7,832,355 906,188 (1,733,585) 1,932,702 52,858,965Fidelity Investments Money Market Prime

Reserves Portfolio Institutional Class 0.01% 186,642,484 1,478,509 188,195,027 832,921 86,150 (12,116) —Fidelity Japan Fund 95,382,678 1,384,749 51,852,226 965,861 6,018,860 3,621,934 54,555,995Fidelity Japan Smaller Companies Fund 81,639,797 907,583 25,491,886 907,583 (3,287,647) 4,145,935 57,913,782

23 Annual Report


Affiliate


Sales Proceeds(a)

Dividend Income




Value, end

of periodFidelity Large Cap Value Enhanced Index Fund $ 15,723,015 $ 37,426,251 $ 7,367,064 $ 848,050 $ (790,804) $ 6,768,327 $ 51,759,725Fidelity Long-Term Treasury Bond Index Fund 56,544,597 86,955,940 68,648,815 2,492,144 17,036,420 (9,354,386) 82,533,756Fidelity Low-Priced Stock Fund 75,831,642 79,793,049 20,210,224 11,083,727 (3,304,252) 8,801,288 140,911,503Fidelity Mega Cap Stock Fund 126,409,531 180,619 104,432,855 — (31,524,882) 9,367,587 —Fidelity New Markets Income Fund 53,559,909 2,357,775 6,418,907 2,080,952 (587,817) 472,087 49,383,047Fidelity Overseas Fund 327,764,704 53,466,277 60,834,942 1,896,195 (75,788) 39,947,989 360,268,240Fidelity Pacific Basin Fund 21,042,974 12,385,295 3,305,072 1,622,209 (54,715) 7,911,529 37,980,011Fidelity Real Estate Investment Portfolio 55,585,013 501,634 36,068,628 408,970 (10,111,921) (2,320,932) 7,585,166Fidelity Stock Selector All Cap Fund 1,682,211,189 144,160,924 328,490,829 90,851,619 20,291,411 269,404,454 1,787,577,149Fidelity U.S. Bond Index Fund 1,829,513,098 319,789,962 429,554,369 53,727,874 12,923,037 66,829,267 1,799,500,995Fidelity U.S. Low Volatility Equity Fund — 102,549,906 11,151,632 649,349 638,901 13,330,650 105,367,825Fidelity Value Discovery Fund 39,745,529 23,576,981 8,737,704 577,184 (379,360) 5,053,090 59,258,536

$ 5,653,702,936 $ 1,202,682,665 $ 1,683,562,495 $ 197,267,862 $ 31,399,630 $ 559,024,995 $ 5,763,247,731




Valuation Inputs at Reporting Date:Description Total Level 1 Level 2 Level 3Investments in Securities:Equity Funds $ 3,509,057,166 $ 3,509,057,166 $ — $ —Fixed-Income Funds 2,254,190,565 2,254,190,565 — —Money Market Funds 68,298,426 68,298,426 — —Other Short-Term Investments and Net Other Assets 17,397,602 — 17,397,602 —Total Investments in Securities: $ 5,848,943,759 $ 5,831,546,157 $ 17,397,602 $ —

Derivative Instruments:Liabilities

Futures Contracts $ (6,854,309) $ (6,854,309) $ — $ —Total Liabilities $ (6,854,309) $ (6,854,309) $ — $ —Total Derivative Instruments: $ (6,854,309) $ (6,854,309) $ — $ —



Equity Risk Futures Contracts (a) $ 0 $ (6,854,309)Total Equity Risk 0 (6,854,309)Total Value of Derivatives $ 0 $ (6,854,309)


24Annual Report




December 31, 2020


Unaffiliated issuers (cost $17,397,396) $ 17,397,602Fidelity Central Funds (cost $68,297,599) 68,298,426Other affiliated issuers (cost $4,840,217,468) 5,763,247,731

Total Investment in Securities (cost $4,925,912,463) $ 5,848,943,759Receivable for investments sold 797,709Receivable for fund shares sold 12,942Distributions receivable from Fidelity Central Funds 2,429

Total assets 5,849,756,839Liabilities Payable for investments purchased $ 17,841Payable for fund shares redeemed 840,127Accrued management fee 963,322Distribution and service plan fees payable 14,157Payable for daily variation margin on futures contracts 1,913,880

Total liabilities 3,749,327

Net Assets $ 5,846,007,512

Net Assets consist of: Paid in capital $ 4,826,968,331Total accumulated earnings (loss) 1,019,039,181Net Assets $ 5,846,007,512


Service Class 2: Net Asset Value, offering price and redemption price per share ($114,211,075 ÷ 8,453,648 shares) $ 13.51

Investor Class: Net Asset Value, offering price and redemption price per share ($5,731,732,296 ÷ 422,574,501 shares) $ 13.56

25 Annual Report



31, 2020





Total expenses before reductions 13,990,768Expense reductions (2,851,152)Total expenses after reductions 11,139,616



Investment securities: Unaffiliated issuers 1,445,163Fidelity Central Funds (5,598)Other affiliated issuers 31,399,630

Foreign currency transactions 9,152Futures contracts (51,176,696)Capital gain distributions from underlying funds:



Assets and liabilities in foreign currencies (400)Futures contracts (5,290,864)



December 31, 2020




Distributions to shareholders (181,171,815) (640,240,283)Share transactions – net increase (decrease) (428,725,848) (199,067,212)


Beginning of period 5,733,883,925 5,625,937,233End of period $ 5,846,007,512 $ 5,733,883,925

26Annual Report





Net investment income (loss) A .14 .20 .19 .16 .15Net realized and unrealized gain (loss) 1.55 1.76 (.86) 1.58 .35

Total from investment operations 1.69 1.96 (.67) 1.74 .50Distributions from net investment income (.14) (.20) (.18) (.15) (.15)Distributions from net realized gain (.26) (1.15) (1.00) (.08) (.16)

Total distributions (.40) (1.36)B (1.18) (.24)B (.32)B

Net asset value, end of period $ 13.57 $ 12.28 $ 11.68 $ 13.53 $ 12.03



Supplemental Data Net assets, end of period (000 omitted) $ 64 $ 58 $ 55 $ 64 $ 62Portfolio turnover rate G 24%H 25% 80% 47% 40%




27 Annual Report






Total distributions (.39) (1.34) (1.16) (.22)B (.30)B



Expenses before reductions .50% .50% .50% .50% .50%Expenses net of fee waivers, if any .35% .35% .35% .35% .35%Expenses net of all reductions .35% .35% .35% .35% .35%Net investment income (loss) .97% 1.53% 1.37% 1.06% 1.11%





28Annual Report







Total distributions (.40) (1.36)B (1.18) (.24)B (.32)B




Supplemental Data Net assets, end of period (000 omitted) $ 5,731,732 $ 5,630,795 $ 5,535,648 $ 6,623,127 $ 6,179,579Portfolio turnover rate G 24%H 25% 80% 47% 40%




29 Annual Report






Fidelity Stock Selector All Cap Fund 35.0Fidelity U.S. Bond Index Fund 23.9Fidelity Overseas Fund 7.1Fidelity Inflation-Protected Bond Index Fund 4.0Fidelity Low-Priced Stock Fund 2.8Fidelity Equity-Income Fund 2.5Fidelity U.S. Low Volatility Equity Fund 2.1Fidelity Emerging Markets Fund 1.9Fidelity International Discovery Fund 1.6Fidelity International Capital Appreciation Fund 1.6

82.5


Period end*



Bond Funds 31.1%


Short-Term Investments 0.3%* Futures – (3.2)%

30Annual Report



Fidelity Commodity Strategy Fund (a) 1,258,567 $ 10,081,125Fidelity Contrafund (a) 4,536,241 76,027,408Fidelity Emerging Asia Fund (a) 383,928 26,226,121Fidelity Emerging Markets Discovery Fund (a) 1,691,720 28,454,735Fidelity Emerging Markets Fund (a) 2,684,490 122,627,500Fidelity Equity-Income Fund (a) 2,691,463 167,812,748Fidelity Europe Fund (a) 1,110,914 47,069,446Fidelity Global Commodity Stock Fund (a) 6,847,703 91,348,355Fidelity Gold Portfolio (a) 1,590,153 46,941,330Fidelity International Capital Appreciation Fund (a) 3,786,606 104,851,108Fidelity International Discovery Fund (a) 1,991,266 105,716,309Fidelity International Enhanced Index Fund (a) 8,612,418 88,449,535Fidelity International Small Cap Fund (a) 1,733,474 53,096,313Fidelity International Small Cap Opportunities Fund (a) 2,190,470 53,973,174Fidelity International Value Fund (a) 8,099,108 68,599,445Fidelity Japan Fund (a) 3,346,552 67,131,829Fidelity Japan Smaller Companies Fund (a) 3,219,746 57,214,885Fidelity Large Cap Value Enhanced Index Fund (a) 4,945,301 69,580,383Fidelity Low-Priced Stock Fund (a) 3,804,459 185,010,822Fidelity Overseas Fund (a) 7,863,352 467,397,648Fidelity Pacific Basin Fund (a) 1,122,295 49,223,879Fidelity Real Estate Investment Portfolio (a) 218,363 8,610,034Fidelity Stock Selector All Cap Fund (a) 40,619,181 2,308,794,252Fidelity U.S. Low Volatility Equity Fund (a) 13,091,720 140,474,160Fidelity Value Discovery Fund (a) 2,607,487 83,882,870



Fidelity High Income Fund (a) 8,557,526 74,792,775Fidelity Inflation-Protected Bond Index Fund (a) 24,015,250 265,128,365Fidelity Long-Term Treasury Bond Index Fund (a) 4,932,321 78,670,526Fidelity New Markets Income Fund (a) 3,636,194 54,906,529Fidelity U.S. Bond Index Fund (a) 126,940,159 1,580,404,985

TOTAL FIXED-INCOME FUNDS(Cost $1,869,310,527) 2,053,903,180






Value



NET OTHER ASSETS (LIABILITIES) – 0.0% (3,283,113)NET ASSETS – 100% $6,604,129,492

31 Annual Report




DateNotional Amount


Purchased


Sold

Equity Index ContractsCME E-mini S&P 500 Index Contracts (United States) 1,399 March 2021 262,228,560 (4,832,829) (4,832,829)

TOTAL FUTURES CONTRACTS $ (3,962,142)












Affiliate


Sales Proceeds(a)

Dividend Income




Value, end

of periodFidelity Commodity Strategy Fund $ 10,483,867 $ — $ — $ — $ — $ (402,742) $ 10,081,125Fidelity Contrafund 101,010,860 8,664,731 51,049,338 5,972,103 7,156,249 10,244,906 76,027,408Fidelity Emerging Asia Fund 15,426,199 3,371,375 469,358 3,216,731 57,882 7,840,023 26,226,121Fidelity Emerging Markets Discovery Fund 24,898,042 430,069 811,826 166,721 (56,593) 3,995,043 28,454,735Fidelity Emerging Markets Fund 107,379,783 2,785,163 14,067,527 1,680,503 (539,891) 27,069,972 122,627,500Fidelity Equity-Income Fund 103,284,890 69,410,331 14,503,304 4,861,337 (1,074,922) 10,695,753 167,812,748Fidelity Europe Fund 48,427,545 5,109,828 11,399,769 535,871 (1,861,151) 6,792,993 47,069,446Fidelity Global Commodity Stock Fund 50,453,752 52,778,093 15,984,049 1,451,186 (6,086,162) 10,186,721 91,348,355Fidelity Gold Portfolio 88,699,305 4,253,226 74,725,844 2,329,097 23,542,181 5,172,462 46,941,330Fidelity High Income Fund — 70,068,594 3,613,790 2,328,454 24,456 8,313,515 74,792,775Fidelity Inflation-Protected Bond Index Fund 274,974,190 12,490,277 47,462,420 3,313,699 2,225,238 22,901,080 265,128,365Fidelity International Capital Appreciation Fund 31,115,335 55,659,047 5,611,312 1,329,628 102,685 23,585,353 104,851,108Fidelity International Discovery Fund 57,317,131 36,013,412 5,945,647 3,773,232 (82,776) 18,414,189 105,716,309Fidelity International Enhanced Index Fund 91,386,612 13,321,866 18,347,609 1,426,858 (3,244,324) 5,332,990 88,449,535

32Annual Report



Affiliate


Sales Proceeds(a)

Dividend Income




Value, end

of periodFidelity International Small Cap Fund $ 52,461,360 $ 5,404,098 $ 8,051,497 $ 435,843 $ (1,282,084) $ 4,564,436 $ 53,096,313Fidelity International Small Cap Opportunities

Fund 51,011,625 4,977,933 9,500,450 — 86,771 7,397,295 53,973,174Fidelity International Value Fund 70,182,558 7,852,310 9,164,671 1,173,254 (2,193,751) 1,922,999 68,599,445Fidelity Investments Money Market Prime

Reserves Portfolio Institutional Class 0.01% 29,693,508 335,602 30,032,951 55,988 3,841 — —Fidelity Japan Fund 121,163,757 3,334,116 68,331,278 1,185,768 6,843,683 4,121,551 67,131,829Fidelity Japan Smaller Companies Fund 93,342,123 896,629 37,100,096 896,630 (4,091,781) 4,168,010 57,214,885Fidelity Large Cap Value Enhanced Index Fund 30,582,466 38,817,372 6,076,652 1,137,390 (509,335) 6,766,532 69,580,383Fidelity Long-Term Treasury Bond Index Fund 58,531,253 83,270,914 71,651,308 2,447,438 17,291,510 (8,771,843) 78,670,526Fidelity Low-Priced Stock Fund 93,713,561 100,782,372 15,999,007 14,581,933 (1,401,669) 7,915,565 185,010,822Fidelity Mega Cap Stock Fund 154,674,420 1,088,581 128,455,875 — (39,016,071) 11,708,945 —Fidelity New Markets Income Fund 55,105,964 3,498,199 3,813,368 2,230,361 (124,524) 240,258 54,906,529Fidelity Overseas Fund 435,083,581 48,841,851 69,641,042 2,453,787 (4,820,270) 57,933,528 467,397,648Fidelity Pacific Basin Fund 27,334,913 14,054,345 2,896,769 2,097,636 70,676 10,660,714 49,223,879Fidelity Real Estate Investment Portfolio 57,366,688 992,140 36,630,647 452,833 (11,579,102) (1,539,045) 8,610,034Fidelity Stock Selector All Cap Fund 2,066,454,563 206,317,852 334,237,221 114,602,825 28,673,059 341,585,999 2,308,794,252Fidelity U.S. Bond Index Fund 1,517,341,000 151,881,465 156,720,255 47,752,794 2,856,886 65,045,889 1,580,404,985Fidelity U.S. Low Volatility Equity Fund — 130,335,449 7,936,961 862,378 328,666 17,747,006 140,474,160Fidelity Value Discovery Fund 48,739,032 35,133,237 7,212,189 817,798 (399,624) 7,622,414 83,882,870

$ 5,967,639,883 $ 1,172,170,477 $ 1,267,444,030 $ 225,570,076 $ 10,899,753 $ 699,232,511 $ 6,582,498,594




Valuation Inputs at Reporting Date:Description Total Level 1 Level 2 Level 3Investments in Securities:Equity Funds $ 4,528,595,414 $ 4,528,595,414 $ — $ —Fixed-Income Funds 2,053,903,180 2,053,903,180 — —Money Market Funds 5,577,174 5,577,174 — —Other Short-Term Investments and Net Other Assets 19,336,837 — 19,336,837 —Total Investments in Securities: $ 6,607,412,605 $ 6,588,075,768 $ 19,336,837 $ —





33 Annual Report



Equity Risk Futures Contracts (a) $ 870,687 $ (4,832,829)Total Equity Risk 870,687 (4,832,829)Total Value of Derivatives $ 870,687 $ (4,832,829)


34Annual Report




December 31, 2020



Total Investment in Securities (cost $5,467,836,853) $ 6,607,412,605Receivable for investments sold 904,870Receivable for fund shares sold 247,197Distributions receivable from Fidelity Central Funds 839

Total assets 6,608,565,511Liabilities Payable for investments purchased $ 839Payable for fund shares redeemed 1,144,991Accrued management fee 1,085,142Distribution and service plan fees payable 80,937Payable for daily variation margin on futures contracts 2,124,110


Net Assets $ 6,604,129,492

Net Assets consist of: Paid in capital $ 5,360,573,745Total accumulated earnings (loss) 1,243,555,747Net Assets $ 6,604,129,492

Net Asset Value and Maximum Offering Price Service Class: Net Asset Value, offering price and redemption price per share ($28,620,955 ÷ 2,521,804 shares) $ 11.35



35 Annual Report



31, 2020




Total income 74,431,247Expenses Management fee $ 14,770,582Distribution and service plan fees 1,489,534Independent trustees’ fees and expenses 19,055Interest 682

Total expenses before reductions 16,279,853Expense reductions (3,564,565)Total expenses after reductions 12,715,288



Investment securities: Unaffiliated issuers 1,750,988Fidelity Central Funds (3,793)Other affiliated issuers 10,899,753







December 31, 2020



Net investment income (loss) $ 61,715,959 $ 89,734,019Net realized gain (loss) 110,405,602 134,683,705Change in net unrealized appreciation (depreciation) 696,985,188 817,976,835Net increase (decrease) in net assets resulting from operations 869,106,749 1,042,394,559

Distributions to shareholders (206,697,507) (972,784,748)Share transactions – net increase (decrease) (37,703,902) 599,160,748



36Annual Report







Total distributions (.36) (1.89) (1.57)B (.39)B (.52)Net asset value, end of period $ 11.35 $ 10.20 $ 10.22 $ 12.50 $ 11.03



Supplemental Data Net assets, end of period (000 omitted) $ 28,621 $ 9,951 $ 50 $ 61 $ 59Portfolio turnover rate G 22%H 33% 91% 47% 35%




37 Annual Report






Total distributions (.34) (1.88) (1.55) (.37) (.50)Net asset value, end of period $ 11.31 $ 10.17 $ 10.20 $ 12.47 $ 11.01


Expenses before reductions .50% .50% .50% .50% .50%Expenses net of fee waivers, if any .35% .35% .35% .35% .35%Expenses net of all reductions .35% .35% .35% .35% .35%Net investment income (loss) .91% 1.46% 1.25% .96% 1.04%

Supplemental Data Net assets, end of period (000 omitted) $ 656,402 $ 594,140 $ 533,024 $ 585,346 $ 507,162Portfolio turnover rate F 22%G 33% 91% 47% 35%




38Annual Report







Total distributions (.36) (1.89) (1.57)B (.39)B (.52)Net asset value, end of period $ 11.35 $ 10.20 $ 10.22 $ 12.50 $ 11.03







39 Annual Report






Fidelity Stock Selector All Cap Fund 40.0Fidelity U.S. Bond Index Fund 13.8Fidelity Overseas Fund 8.3Fidelity Inflation-Protected Bond Index Fund 3.4Fidelity Low-Priced Stock Fund 3.3Fidelity Equity-Income Fund 2.9Fidelity U.S. Low Volatility Equity Fund 2.4Fidelity International Discovery Fund 1.9Fidelity International Capital Appreciation Fund 1.9Fidelity Contrafund 1.6

79.5


Period end*



Bond Funds 20.2%


Short-Term Investments 0.3%* Futures – (3.5)%

40Annual Report



Fidelity Commodity Strategy Fund (a) 346,021 $ 2,771,627Fidelity Contrafund (a) 1,762,997 29,547,831Fidelity Emerging Asia Fund (a) 101,587 6,939,423Fidelity Emerging Markets Discovery Fund (a) 420,881 7,079,226Fidelity Emerging Markets Fund (a) 550,095 25,128,337Fidelity Equity-Income Fund (a) 841,258 52,452,406Fidelity Europe Fund (a) 363,599 15,405,687Fidelity Global Commodity Stock Fund (a) 1,806,463 24,098,218Fidelity Gold Portfolio (a) 573,123 16,918,576Fidelity International Capital Appreciation Fund (a) 1,240,021 34,336,173Fidelity International Discovery Fund (a) 649,504 34,482,157Fidelity International Enhanced Index Fund (a) 2,809,145 28,849,917Fidelity International Small Cap Fund (a) 566,871 17,363,245Fidelity International Small Cap Opportunities Fund (a) 715,829 17,638,017Fidelity International Value Fund (a) 2,651,632 22,459,327Fidelity Japan Fund (a) 1,236,643 24,807,052Fidelity Japan Smaller Companies Fund (a) 1,002,343 17,811,632Fidelity Large Cap Value Enhanced Index Fund (a) 2,088,201 29,380,991Fidelity Low-Priced Stock Fund (a) 1,240,010 60,301,675Fidelity Overseas Fund (a) 2,571,205 152,832,428Fidelity Pacific Basin Fund (a) 367,301 16,109,840Fidelity Real Estate Investment Portfolio (a) 59,599 2,349,980Fidelity Stock Selector All Cap Fund (a) 12,927,913 734,822,564Fidelity U.S. Low Volatility Equity Fund (a) 4,029,408 43,235,549Fidelity Value Discovery Fund (a) 808,576 26,011,877



Fidelity High Income Fund (a) 2,313,517 20,220,136Fidelity Inflation-Protected Bond Index Fund (a) 5,630,923 62,165,391Fidelity Long-Term Treasury Bond Index Fund (a) 1,283,850 20,477,412Fidelity New Markets Income Fund (a) 990,023 14,949,343Fidelity U.S. Bond Index Fund (a) 20,326,646 253,066,745







Value



NET OTHER ASSETS (LIABILITIES) – 0.0% (870,049)NET ASSETS – 100% $1,835,609,026

41 Annual Report




DateNotional Amount


Purchased


Sold

Equity Index ContractsCME E-mini S&P 500 Index Contracts (United States) 416 March 2021 77,975,040 (1,814,688) (1,814,688)

TOTAL FUTURES CONTRACTS $ (1,591,933)












Affiliate


Sales Proceeds(a)

Dividend Income




Value, end

of periodFidelity Commodity Strategy Fund $ 2,882,353 $ — $ — $ — $ — $ (110,726) $ 2,771,627Fidelity Contrafund 31,563,908 3,304,880 10,951,398 2,300,963 1,034,806 4,595,635 29,547,831Fidelity Emerging Asia Fund 5,056,221 934,737 1,047,903 852,739 (13,296) 2,009,664 6,939,423Fidelity Emerging Markets Discovery Fund 8,204,814 184,720 1,814,680 41,611 (531,462) 1,035,834 7,079,226Fidelity Emerging Markets Fund 27,130,006 935,149 7,534,029 345,722 59,092 4,538,119 25,128,337Fidelity Equity-Income Fund 32,259,723 21,733,199 4,418,680 1,509,504 (318,675) 3,196,839 52,452,406Fidelity Europe Fund 15,326,274 1,834,978 3,383,102 176,041 (580,400) 2,207,937 15,405,687Fidelity Global Commodity Stock Fund 13,950,313 14,168,628 4,853,080 384,378 (1,849,695) 2,682,052 24,098,218Fidelity Gold Portfolio 24,555,059 1,821,390 16,571,840 786,340 4,848,926 2,265,041 16,918,576Fidelity High Income Fund — 19,267,090 1,302,442 628,692 15,603 2,239,885 20,220,136Fidelity Inflation-Protected Bond Index Fund 73,633,252 6,027,895 24,192,575 796,202 1,439,420 5,257,399 62,165,391Fidelity International Capital Appreciation Fund 9,860,978 18,724,163 1,968,701 437,008 (22,917) 7,742,650 34,336,173Fidelity International Discovery Fund 24,293,262 7,279,443 2,203,295 1,235,224 (41,927) 5,154,674 34,482,157Fidelity International Enhanced Index Fund 28,283,699 8,327,402 7,891,937 462,575 (1,570,010) 1,700,763 28,849,917

42Annual Report



Affiliate


Sales Proceeds(a)

Dividend Income




Value, end

of periodFidelity International Small Cap Fund $ 16,809,087 $ 1,954,619 $ 2,467,364 $ 143,045 $ (435,444) $ 1,502,347 $ 17,363,245Fidelity International Small Cap Opportunities Fund 16,365,812 1,804,926 2,936,952 — (189,667) 2,593,898 17,638,017Fidelity International Value Fund 22,132,884 2,812,527 2,512,217 385,452 (514,861) 540,994 22,459,327Fidelity Japan Fund 36,357,727 1,550,678 16,887,900 439,656 1,141,589 2,644,958 24,807,052Fidelity Japan Smaller Companies Fund 26,262,226 279,131 8,709,002 279,131 (1,537,016) 1,516,293 17,811,632Fidelity Large Cap Value Enhanced Index Fund 12,550,326 16,626,796 2,293,623 476,729 (224,172) 2,721,664 29,380,991Fidelity Long-Term Treasury Bond Index Fund 16,174,948 21,911,899 19,962,802 651,489 4,375,655 (2,022,288) 20,477,412Fidelity Low-Priced Stock Fund 29,486,047 33,527,160 4,872,435 4,754,496 (583,525) 2,744,428 60,301,675Fidelity Mega Cap Stock Fund 48,368,365 492,128 40,041,500 — (12,368,483) 3,549,490 —Fidelity New Markets Income Fund 15,115,710 1,176,122 1,323,164 608,586 (51,100) 31,775 14,949,343Fidelity Overseas Fund 143,675,789 17,563,578 24,912,234 805,440 (2,069,378) 18,574,673 152,832,428Fidelity Pacific Basin Fund 8,654,152 5,022,328 1,055,878 688,916 (13,766) 3,503,004 16,109,840Fidelity Real Estate Investment Portfolio 15,806,856 379,105 10,127,528 122,589 (3,317,116) (391,337) 2,349,980Fidelity Stock Selector All Cap Fund 671,994,691 67,778,670 118,826,189 37,142,365 4,187,318 109,688,074 734,822,564Fidelity U.S. Bond Index Fund 256,661,866 25,546,923 40,761,303 7,951,198 922,097 10,697,162 253,066,745Fidelity U.S. Low Volatility Equity Fund — 40,206,903 2,506,276 263,902 97,572 5,437,350 43,235,549Fidelity Value Discovery Fund 15,353,100 10,692,681 2,186,238 253,875 (173,778) 2,326,112 26,011,877

$ 1,648,769,448 $ 353,869,848 $ 390,516,267 $ 64,923,868 $ (8,284,610) $ 210,174,363 $ 1,814,012,782




Valuation Inputs at Reporting Date:Description Total Level 1 Level 2 Level 3Investments in Securities:Equity Funds $ 1,443,133,755 $ 1,443,133,755 $ — $ —Fixed-Income Funds 370,879,027 370,879,027 — —Money Market Funds 16,877,015 16,877,015 — —Other Short-Term Investments and Net Other Assets 5,589,278 — 5,589,278 —Total Investments in Securities: $ 1,836,479,075 $ 1,830,889,797 $ 5,589,278 $ —





43 Annual Report



Equity Risk Futures Contracts (a) $ 222,755 $ (1,814,688)Total Equity Risk 222,755 (1,814,688)Total Value of Derivatives $ 222,755 $ (1,814,688)


44Annual Report




December 31, 2020



Total Investment in Securities (cost $1,505,590,473) $ 1,836,479,075Receivable for investments sold 104,148Receivable for fund shares sold 1,415,744Distributions receivable from Fidelity Central Funds 224

Total assets 1,837,999,191Liabilities Payable for investments purchased $ 1,306,587Payable for fund shares redeemed 160,003Accrued management fee 300,532Distribution and service plan fees payable 8,163Payable for daily variation margin on futures contracts 614,880


Net Assets $ 1,835,609,026

Net Assets consist of: Paid in capital $ 1,480,239,140Total accumulated earnings (loss) 355,369,886Net Assets $ 1,835,609,026




45 Annual Report



31, 2020








Investment securities: Unaffiliated issuers 533,883Fidelity Central Funds (1,012)Other affiliated issuers (8,284,610)







December 31, 2020




Distributions to shareholders (55,277,556) (209,986,205)Share transactions – net increase (decrease) (21,002,271) 181,654,878



46Annual Report





Net investment income (loss) A .12 .17 .17 .13 .13Net realized and unrealized gain (loss) 1.82 2.26 (1.13) 2.16 .41


Total distributions (.41)B (1.77) (1.37) (.22)B (.62)Net asset value, end of period $ 13.90 $ 12.37 $ 11.71 $ 14.04 $ 11.97



Supplemental Data Net assets, end of period (000 omitted) $ 75 $ 67 $ 63 $ 76 $ 71Portfolio turnover rate G 24%H 39% 98% 57% 45%




47 Annual Report






Total distributions (.40) (1.76) (1.35) (.20)B (.61)Net asset value, end of period $ 13.83 $ 12.31 $ 11.67 $ 13.99 $ 11.93


Expenses before reductions .50% .50% .50% .50% .50%Expenses net of fee waivers, if any .35% .35% .35% .35% .35%Expenses net of all reductions .35% .35% .35% .35% .35%Net investment income (loss) .80% 1.32% 1.13% .86% .96%





48Annual Report







Total distributions (.41)B (1.77) (1.37) (.22)B (.62)Net asset value, end of period $ 13.90 $ 12.37 $ 11.71 $ 14.04 $ 11.96







49 Annual Report






Fidelity Stock Selector All Cap Fund 46.8Fidelity Overseas Fund 9.2Fidelity U.S. Bond Index Fund 4.2Fidelity Low-Priced Stock Fund 3.8Fidelity Equity-Income Fund 3.2Fidelity U.S. Low Volatility Equity Fund 2.6Fidelity International Capital Appreciation Fund 2.2Fidelity International Discovery Fund 2.2Fidelity Large Cap Value Enhanced Index Fund 2.0Fidelity Value Discovery Fund 2.0

78.2


Period end*



Bond Funds 9.3%



Net Other Assets (Liabilities)** (0.1)%* Futures – 0.5%


50Annual Report



Fidelity Commodity Strategy Fund (a) 122,729 $ 983,062Fidelity Contrafund (a) 628,324 10,530,706Fidelity Emerging Asia Fund (a) 33,974 2,320,745Fidelity Emerging Markets Discovery Fund (a) 73,407 1,234,708Fidelity Emerging Markets Fund (a) 172,039 7,858,756Fidelity Equity-Income Fund (a) 343,079 21,390,945Fidelity Europe Fund (a) 150,926 6,394,729Fidelity Global Commodity Stock Fund (a) 644,845 8,602,230Fidelity Gold Portfolio (a) 254,179 7,503,351Fidelity International Capital Appreciation Fund (a) 516,064 14,289,800Fidelity International Discovery Fund (a) 268,819 14,271,596Fidelity International Enhanced Index Fund (a) 1,168,508 12,000,581Fidelity International Small Cap Fund (a) 235,481 7,212,784Fidelity International Small Cap Opportunities Fund (a) 301,531 7,429,735Fidelity International Value Fund (a) 1,097,762 9,298,042Fidelity Japan Fund (a) 400,875 8,041,544Fidelity Japan Smaller Companies Fund (a) 492,432 8,750,519Fidelity Large Cap Value Enhanced Index Fund (a) 954,994 13,436,770Fidelity Low-Priced Stock Fund (a) 518,632 25,221,078Fidelity Overseas Fund (a) 1,030,366 61,244,929Fidelity Pacific Basin Fund (a) 152,758 6,699,975Fidelity Real Estate Investment Portfolio (a) 21,138 833,482Fidelity Stock Selector All Cap Fund (a) 5,468,068 310,804,980Fidelity U.S. Low Volatility Equity Fund (a) 1,608,662 17,260,939Fidelity Value Discovery Fund (a) 414,087 13,321,192

TOTAL EQUITY FUNDS(Cost $478,963,098) 596,937,178


Fidelity High Income Fund (a) 790,881 6,912,296Fidelity Inflation-Protected Bond Index Fund (a) 995,838 10,994,056Fidelity Long-Term Treasury Bond Index Fund (a) 757,190 12,077,176Fidelity New Markets Income Fund (a) 217,140 3,278,812Fidelity U.S. Bond Index Fund (a) 2,261,681 28,157,930







Value


TOTAL INVESTMENT IN SECURITIES – 100.1%(Cost $541,979,307) 664,525,860

NET OTHER ASSETS (LIABILITIES) – (0.1)% (344,388)NET ASSETS – 100% $664,181,472

51 Annual Report




DateNotional Amount


Purchased


Sold

Equity Index ContractsCME E-mini S&P 500 Index Contracts (United States) 76 March 2021 14,245,440 (309,829) (309,829)

TOTAL FUTURES CONTRACTS $ (13,072)











Affiliate


Sales Proceeds(a)

Dividend Income




Value, end

of periodFidelity Commodity Strategy Fund $ 1,022,335 $ — $ — $ — $ — $ (39,273) $ 983,062Fidelity Contrafund 12,817,014 1,547,136 6,211,532 819,145 907,182 1,470,906 10,530,706Fidelity Emerging Asia Fund 1,835,875 333,913 547,305 283,591 25,592 672,670 2,320,745Fidelity Emerging Markets Discovery Fund 2,048,755 92,292 904,897 7,161 (160,411) 158,969 1,234,708Fidelity Emerging Markets Fund 9,739,835 462,521 3,814,446 106,946 (71,796) 1,542,642 7,858,756Fidelity Equity-Income Fund 13,133,858 9,068,858 1,984,152 619,536 (134,113) 1,306,494 21,390,945Fidelity Europe Fund 6,470,857 977,606 1,712,304 72,246 (251,113) 909,683 6,394,729Fidelity Global Commodity Stock Fund 3,624,269 5,672,120 1,493,009 135,494 (214,407) 1,013,257 8,602,230Fidelity Gold Portfolio 9,121,384 2,342,948 6,430,015 339,385 1,375,251 1,093,783 7,503,351Fidelity High Income Fund — 6,800,822 673,290 215,581 16,950 767,814 6,912,296Fidelity Inflation-Protected Bond Index Fund 4,364,655 21,333,518 15,900,828 139,699 422,611 774,100 10,994,056Fidelity International Capital Appreciation Fund 4,167,722 8,003,903 1,104,500 179,816 19,284 3,203,391 14,289,800Fidelity International Discovery Fund 12,382,452 2,217,563 2,147,774 505,472 (152,296) 1,971,651 14,271,596Fidelity International Enhanced Index Fund 12,707,672 1,961,599 2,910,709 193,396 (456,750) 698,769 12,000,581Fidelity International Small Cap Fund 6,676,483 1,046,867 1,022,711 58,760 (110,534) 622,679 7,212,784

52Annual Report



Affiliate


Sales Proceeds(a)

Dividend Income




Value, end

of periodFidelity International Small Cap Opportunities Fund $ 6,490,555 $ 975,783 $ 1,105,726 $ — $ (83,128) $ 1,152,251 $ 7,429,735Fidelity International Value Fund 9,826,822 1,471,892 1,828,368 157,825 (381,889) 209,585 9,298,042Fidelity Japan Fund 7,352,688 3,788,837 4,959,682 140,493 397,882 1,461,819 8,041,544Fidelity Japan Smaller Companies Fund 11,400,061 137,132 2,867,058 137,132 (545,099) 625,483 8,750,519Fidelity Large Cap Value Enhanced Index Fund 8,037,110 5,798,999 1,200,313 219,179 (86,289) 887,263 13,436,770Fidelity Long-Term Treasury Bond Index Fund 8,405,881 13,063,864 10,610,505 374,926 2,194,283 (976,347) 12,077,176Fidelity Low-Priced Stock Fund 11,925,022 14,632,672 2,228,587 2,001,060 (166,487) 1,058,458 25,221,078Fidelity Mega Cap Stock Fund 19,642,259 502,168 16,472,923 — (5,149,045) 1,477,541 —Fidelity New Markets Income Fund — 5,125,273 2,726,667 162,313 319,862 560,344 3,278,812Fidelity Overseas Fund 62,170,629 9,251,257 16,501,271 318,878 (759,130) 7,083,444 61,244,929Fidelity Pacific Basin Fund 3,648,910 2,150,883 557,083 283,435 7,856 1,449,409 6,699,975Fidelity Real Estate Investment Portfolio 5,230,414 223,577 3,389,104 43,295 (1,111,981) (119,424) 833,482Fidelity Stock Selector All Cap Fund 286,115,059 36,985,692 58,900,822 15,421,965 1,269,925 45,335,126 310,804,980Fidelity U.S. Bond Index Fund 32,621,317 16,312,263 21,992,577 826,680 877,090 339,837 28,157,930Fidelity U.S. Low Volatility Equity Fund — 16,423,650 1,386,152 105,932 57,930 2,165,511 17,260,939Fidelity Value Discovery Fund 6,198,738 6,940,325 1,146,110 131,087 (68,025) 1,396,264 13,321,192

$ 579,178,631 $ 195,645,933 $ 194,730,420 $ 24,000,428 $ (2,010,795) $ 80,274,099 $ 658,357,448




Valuation Inputs at Reporting Date:Description Total Level 1 Level 2 Level 3Investments in Securities:Equity Funds $ 596,937,178 $ 596,937,178 $ — $ —Fixed-Income Funds 61,420,270 61,420,270 — —Money Market Funds 4,038,670 4,038,670 — —Other Short-Term Investments and Net Other Assets 2,129,742 — 2,129,742 —Total Investments in Securities: $ 664,525,860 $ 662,396,118 $ 2,129,742 $ —



Futures Contracts $ (309,829) $ (309,829) $ — $ —Total Liabilities $ (309,829) $ (309,829) $ — $ —Total Derivative Instruments: $ (13,072) $ (13,072) $ — $ —


53 Annual Report



Equity Risk Futures Contracts (a) $ 296,757 $ (309,829)Total Equity Risk 296,757 (309,829)Total Value of Derivatives $ 296,757 $ (309,829)


54Annual Report




December 31, 2020


Unaffiliated issuers (cost $2,129,718) $ 2,129,742Fidelity Central Funds (cost $4,038,670) 4,038,670Other affiliated issuers (cost $535,810,919) 658,357,448

Total Investment in Securities (cost $541,979,307) $ 664,525,860Receivable for investments sold 11,341Receivable for fund shares sold 129,195Distributions receivable from Fidelity Central Funds 312

Total assets 664,666,708Liabilities Payable for investments purchased $ 90,449Payable for fund shares redeemed 49,318Accrued management fee 108,463Distribution and service plan fees payable 5,926Payable for daily variation margin on futures contracts 231,080

Total liabilities 485,236

Net Assets $ 664,181,472

Net Assets consist of: Paid in capital $ 529,067,543Total accumulated earnings (loss) 135,113,929Net Assets $ 664,181,472

Net Asset Value and Maximum Offering Price Service Class: Net Asset Value, offering price and redemption price per share ($47 ÷ 3.385 shares) $ 13.88

Service Class 2: Net Asset Value, offering price and redemption price per share ($48,373,336 ÷ 3,516,122.581 shares) $ 13.76

Investor Class: Net Asset Value, offering price and redemption price per share ($615,808,089 ÷ 44,432,361.346 shares) $ 13.86

55 Annual Report



31, 2020








Investment securities: Unaffiliated issuers 247,673Fidelity Central Funds 906Other affiliated issuers (2,010,795)



Investment securities: Unaffiliated issuers (116)Fidelity Central Funds (60)Other affiliated issuers 80,274,099

Assets and liabilities in foreign currencies (50)Futures contracts 26,532



December 31, 2020




Distributions to shareholders (23,811,795) (89,622,619)Share transactions – net increase (decrease) 782,960 62,742,150


Beginning of period 589,853,835 490,910,019End of period $ 664,181,472 $ 589,853,835

56Annual Report






Total from investment operations 2.13 2.73 (1.14) 2.72 .59Distributions from net investment income (.10) (.14) (.10) (.10) (.11)Distributions from net realized gain (.39) (1.99) (1.41) (.13) (.54)

Total distributions (.50)B (2.13) (1.51) (.23) (.65)Net asset value, end of period $ 13.88 $ 12.25 $ 11.65 $ 14.30 $ 11.81


Expenses before reductions .25% .25% .33%G .35% .35%Expenses net of fee waivers, if any .20% .20% .17%G .20% .20%Expenses net of all reductions .20% .20% .17%G .20% .20%Net investment income (loss) .82% 1.26% 1.11% .81% .96%

Supplemental Data Net assets, end of period (000 omitted) $ – $ – $ – $ 2 $ 8Portfolio turnover rate H 37%I 38% 116% 70% 59%



arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.G On certain classes, the size and fluctuation of net assets and expense amounts may cause ratios to differ from contractual rates.H Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).I Portfolio turnover rate excludes certain securities received or delivered in-kind.

57 Annual Report






Total distributions (.48) (2.12) (1.49)B (.21) (.63)Net asset value, end of period $ 13.76 $ 12.20 $ 11.59 $ 14.24 $ 11.76


Expenses before reductions .50% .50% .50% .50% .50%Expenses net of fee waivers, if any .35% .35% .35% .35% .35%Expenses net of all reductions .35% .35% .35% .35% .35%Net investment income (loss) .68% 1.16% .93% .66% .81%





58Annual Report







Total distributions (.50)B (2.13) (1.51) (.23) (.65)Net asset value, end of period $ 13.86 $ 12.28 $ 11.66 $ 14.31 $ 11.81


Expenses before reductions .25% .25% .25% .25% .25%Expenses net of fee waivers, if any .20% .20% .20% .20% .20%Expenses net of all reductions .20% .20% .20% .20% .20%Net investment income (loss) .83% 1.31% 1.08% .81% .96%





59 Annual Report

Notes to Financial StatementsFor the period ended December 31, 2020

1. Organization.

VIP FundsManager 20% Portfolio, VIP FundsManager 50% Portfolio, VIP FundsManager 60% Portfolio, VIP FundsManager 70% Portfolio, and VIP FundsManager 85% Portfolio (the Funds) are funds of Variable Insurance Products Fund V (the Trust). The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. Each Fund is authorized to issue an unlimited number of shares. Shares of each Fund may only be purchased by insurance companies for the purpose of funding variable annuity or variable life insurance contracts. Each Fund offers three classes of shares: Service Class shares, Service Class 2 shares, and Investor Class shares. All classes have equal rights and voting privileges, except for matters affecting a single class.

Effective January 1, 2020:

Investment advisers Fidelity Investments Money Management, Inc., FMR Co., Inc., and Fidelity SelectCo, LLC, merged with and into Fidelity Management & Research Company. In connection with the merger transactions, the resulting, merged investment adviser was then redomiciled from Massachusetts to Delaware, changed its corporate structure from a corporation to a limited liability company, and changed its name to “Fidelity Management & Research Company LLC”.

Broker-dealer Fidelity Distributors Corporation merged with and into Fidelity Investments Institutional Services Company, Inc. (“FIISC”). FIISC was then redomiciled from Massachusetts to Delaware, changed its corporate structure from a corporation to a limited liability company, and changed its name to “Fidelity Distributors Company LLC”.

2. Investments in Fidelity Central Funds.

The Funds invest in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Funds’ Schedules of Investments list each of the Fidelity Central Funds held as of period end, if any, as an investment of each Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, each Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.

The Money Market Central Funds seek preservation of capital and current income and are managed by the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date ranged from less than .005% to .01%.

A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Funds’ Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.

3. Significant Accounting Policies.

Each Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investment Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Funds:

Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of each Fund’s investments to the Fair Value Committee (the Committee) established by each Fund’s investment adviser. In accordance with valuation policies and procedures approved by the Board, each Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees each Fund’s valuation policies and procedures and reports to the Board on the Committee’s activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing each Fund’s investments and ratifies the fair value determinations of the Committee. Each Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:

Level 1 – quoted prices in active markets for identical investments

Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)

Level 3 – unobservable inputs (including the Fund’s own assumptions based on the best information available)

Valuation techniques used to value each Fund’s investments by major category are as follows. Investments in open-end mutual funds are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy. Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. U.S. government and government agency obligations are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances. The aggregate value of investments by input level as of December 31, 2020 is included at the end of each Fund’s Schedule of Investments.

Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded and are categorized as Level 1 in the hierarchy.

Foreign Currency. Certain Funds may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts’ terms.

Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received, and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.

60Annual Report

Notes to Financial Statements – continued

The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in real-ized and unrealized gain (loss) are disclosed separately.

Investment Transactions and Income. For financial reporting purposes, the Funds’ investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Funds are informed of the ex-dividend date. Income and capital gain distributions from any underlying mutual funds or exchange-traded funds (ETFs) are recorded on the ex-dividend date. Certain distributions received by the Funds represent a return of capital or capital gain. The Funds determine the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Interest income is accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable.

Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of each Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of each Fund. Each class differs with respect to distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expenses included in the accompanying financial statements reflect the expenses of each Fund and do not include any expenses associated with any underlying mutual funds or exchange-traded funds (ETFs). Although not included in each Fund’s expenses, each Fund indirectly bears its proportionate share of any underlying mutual funds or exchange-traded funds (ETFs) expenses through the impact of these expenses on each underlying mutual fund’s or exchange-traded fund’s (ETFs) NAV. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.

Income Tax Information and Distributions to Shareholders. Each year, each Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of December 31, 2020, each Fund did not have any unrecognized tax benefits in the financial statements; nor is each Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. Each Fund files a U.S. federal tax return, in addition to state and local tax returns as required. Each Fund’s federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on each Fund’s understanding of the tax rules and rates that exist in the foreign markets in which it invests.

Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.

Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.

Book-tax differences are primarily due to the short-term gain distributions from the underlying mutual funds or exchange-traded funds (ETFs), futures contracts, foreign currency transactions, market discount and losses deferred due to wash sales.

As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows for each Fund:

Tax costGross unrealized

appreciationGross unrealized

depreciation

Net unrealized appreciation

(depreciation)VIP FundsManager 20% Portfolio $ 845,633,305 $ 91,041,782 $ (1,707,241) $ 89,334,541VIP FundsManager 50% Portfolio 4,937,107,303 923,913,519 (12,077,063) 911,836,456VIP FundsManager 60% Portfolio 5,480,588,078 1,142,253,967 (15,429,440) 1,126,824,527VIP FundsManager 70% Portfolio 1,508,369,370 332,672,883 (4,563,178) 328,109,705VIP FundsManager 85% Portfolio 543,771,759 122,752,473 (1,998,372) 120,754,101

The tax-based components of distributable earnings as of period end were as follows for each Fund:

Undistributed ordinary income

Undistributed long-term capital gain

Net unrealized appreciation

(depreciation) on securities and other

investmentsVIP FundsManager 20% Portfolio $ 2,290,797 $ 878,770 $ 89,334,541VIP FundsManager 50% Portfolio 27,829,363 79,373,360 911,836,456VIP FundsManager 60% Portfolio 34,419,451 82,311,772 1,126,824,527VIP FundsManager 70% Portfolio 10,983,278 16,276,902 328,109,705VIP FundsManager 85% Portfolio 4,440,193 9,919,634 120,754,101

61 Annual Report

The tax character of distributions paid was as follows:

December 31, 2020Ordinary Income Long-term Capital Gains Total

VIP FundsManager 20% Portfolio $ 12,763,590 $ 2,732,614 $ 15,496,204VIP FundsManager 50% Portfolio 81,253,830 99,917,985 181,171,815VIP FundsManager 60% Portfolio 82,029,513 124,667,994 206,697,507VIP FundsManager 70% Portfolio 20,337,323 34,940,233 55,277,556VIP FundsManager 85% Portfolio 6,132,237 17,679,558 23,811,795

December 31, 2019Ordinary Income Long-term Capital Gains Total

VIP FundsManager 20% Portfolio $ 16,052,961 $ 27,852,506 $ 43,905,467VIP FundsManager 50% Portfolio 103,646,449 536,593,834 640,240,283VIP FundsManager 60% Portfolio 96,000,914 876,783,834 972,784,748VIP FundsManager 70% Portfolio 23,875,594 186,110,611 209,986,205VIP FundsManager 85% Portfolio 7,482,007 82,140,612 89,622,619

4. Derivative Instruments.

Risk Exposures and the Use of Derivative Instruments. The Funds’ investment objective allows the Funds to enter into various types of derivative contracts, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.

The Funds used derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Funds may not achieve their objectives.

The Funds’ use of derivatives increased or decreased their exposure to the following risk:

Equity Risk Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment.

The Funds are also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Funds will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Funds. Counterparty credit risk related to exchange-traded futures contracts may be mitigated by the protection provided by the exchange on which they trade.

Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.

Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Funds used futures contracts to manage their exposure to the stock market.

Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent daily payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable, if any, is included in daily variation margin on futures contracts in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract. The net realized gain (loss) and change in net unrealized appreciation (depreciation) on futures contracts during the period is presented in the Statement of Operations.

Any open futures contracts at period end are presented in the Schedule of Investments under the caption “Futures Contracts”. The notional amount at value reflects each contract’s exposure to the underlying instrument or index at period end and is representative of volume of activity during the period for VIP FundsManager 85% Portfolio. Securities deposited to meet initial margin require-ments are identified in the Schedule of Investments.

5. Purchases and Sales of Investments.

Purchases and sales of securities, other than short-term securities, U.S. government securities and certain in-kind transactions, are noted in the table below.

62Annual Report


Purchases ($) Sales ($)VIP FundsManager 20% Portfolio 239,330,220 319,382,062VIP FundsManager 50% Portfolio 1,290,216,972 1,774,287,622VIP FundsManager 60% Portfolio 1,282,197,736 1,381,493,895VIP FundsManager 70% Portfolio 387,369,234 425,223,869VIP FundsManager 85% Portfolio 208,786,517 209,208,308

6. Fees and Other Transactions with Affiliates.

Management Fee. Fidelity Management & Research Company LLC (the investment adviser) provides the Funds with investment management related services. For these services each Fund pays a monthly management fee to the investment adviser. The management fee is based on an annual rate of .25% of each fund’s average net assets. The management fee is reduced by an amount equal to the fees and expenses paid by the Funds to the independent Trustees.

The investment adviser has contractually agreed to waive 0.05% of its management fee, thereby limiting each Fund’s management fee to an annual rate of 0.20% of average net assets, until April 30, 2022.

Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Funds have adopted separate 12b-1 Plans for each Service Class of shares. Each Service Class pays Fidelity Distributors Company LLC (FDC), an affiliate of the investment adviser, a service fee. For the period, the service fee is based on an annual rate of .10% of Service Class’ average net assets and .25% of Service Class 2’s average net assets.

For the period, total fees, all of which were reallowed to insurance companies for the distribution of shares and providing shareholder support services were as follows:

Service Class Service Class 2 TotalVIP FundsManager 20% Portfolio $ 58 $ 22,037 $ 22,095VIP FundsManager 50% Portfolio 58 264,640 264,698VIP FundsManager 60% Portfolio 18,037 1,471,497 1,489,534VIP FundsManager 70% Portfolio 65 143,478 143,543VIP FundsManager 85% Portfolio – 102,657 102,657

Brokerage Commissions. A portion of portfolio transactions were placed with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were as follows:

AmountVIP FundsManager 20% Portfolio $ 225VIP FundsManager 50% Portfolio 3,710VIP FundsManager 60% Portfolio 4,676VIP FundsManager 70% Portfolio 1,407VIP FundsManager 85% Portfolio 586

Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, each Fund, along with other registered investment companies having management contracts with Fidelity Management & Research Company LLC (FMR), or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing each Fund to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. Activity in this program during the period for which loans were outstanding was as follows:

Borrower or Lender

Average Loan Balance

Weighted Average

Interest RateInterest Expense

VIP FundsManager 60% Portfolio Borrower $4,624,929 .33% $598

Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note and are noted in the table below.

Purchases ($) Sales ($)VIP FundsManager 20% Portfolio 539,307 152,506VIP FundsManager 50% Portfolio 9,859,011 2,781,499VIP FundsManager 60% Portfolio 12,365,001 3,470,523VIP FundsManager 70% Portfolio 3,746,286 1,048,419VIP FundsManager 85% Portfolio 1,493,021 418,612

63 Annual Report

Reallocation of Underlying Fund Investments. During the period, the investment adviser reallocated investments of the Funds. This involved taxable redemptions of each Fund’s interest in Fidelity Mega Cap Stock Fund for investments and cash, as shown in the table below.

Value of investments and cash redeemed from Fidelity Mega Cap Stock

FundShares of Fidelity Mega

Cap Stock Fund sold

Net realized loss on redemptions of Fidelity Mega Cap Stock Fund

VIP FundsManager 20% $ 5,780,254 453,353 $ (1,730,419)VIP FundsManager 50% 99,474,910 7,801,954 (30,614,314)VIP FundsManager 60% 125,062,846 9,808,851 (38,502,131)VIP FundsManager 70% 38,077,050 2,986,435 (11,771,557)VIP FundsManager 85% 15,417,246 1,209,196 (4,791,232)

In addition, each Fund exchanged investments and cash for shares of Fidelity U.S. Low Volatility Equity Fund, as shown in the table below. This exchange did not recognize any gains or loss for federal income tax purposes.

Value of investments and cash delivered to Fidelity U.S. Low Volatility Equity

Fund

Shares of Fidelity U.S. Low Volatility Equity Fund

received

Net realized gain on redemptions of

investmentsVIP FundsManager 20% $ 5,912,068 630,957 $ 38,663VIP FundsManager 50% 101,614,757 10,844,691 607,195VIP FundsManager 60% 127,748,659 13,633,795 773,494VIP FundsManager 70% 38,918,062 4,153,475 234,071VIP FundsManager 85% 15,777,233 1,683,803 94,531

Net realized gain (loss) on the redemptions of Fidelity Mega Cap Stock Fund and the investments in connection with the exchanges into Fidelity U.S. Low Volatility Equity Fund is included in the accompanying Statements of Operations as “Realized gain (loss) on Other affiliated issuers” and “Realized gain (loss) on Unaffiliated issuers”, respectively.

Other. During the period, the investment adviser reimbursed the Funds for certain losses as follows:

AmountVIP FundsManager 50% Portfolio $ 7,260VIP FundsManager 70% Portfolio 19,844VIP FundsManager 85% Portfolio 4,043

7. Bank Borrowings.

Each Fund is permitted to have bank borrowings for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity requirements. Each Fund has established borrowing arrangements with certain banks. The interest rate on the borrowings is the bank’s base rate, as revised from time to time. Any open loans, including accrued interest, at period end are presented under the caption “Notes payable” in the Statement of Assets and Liabilities, if applicable. Activity in this program during the period for which loans were outstanding was as follows:

Average Loan BalanceWeighted Average Interest

Rate Interest ExpenseVIP FundsManager 60% Portfolio $ 5,154 .59% $ 84

8. Expense Reductions.

The investment adviser contractually agreed to limit each Funds’ management fee to an annual rate of 0.20% of each Funds’ average net assets until April 30, 2022. For the period, each Fund’s management fees were reduced by the following amounts:

Management Fee WaiverVIP FundsManager 20% Portfolio $ 430,434VIP FundsManager 50% Portfolio $ 2,745,214VIP FundsManager 60% Portfolio $ 2,957,927VIP FundsManager 70% Portfolio $ 812,248VIP FundsManager 85% Portfolio $ 288,367

64Annual Report


In addition, FMR has contractually agreed to reimburse 0.10% of class-level expenses for each Fund’s Service Class and Service Class 2. During the period, this reimbursement reduced each Fund’s Service Class and Service Class 2’s expenses by the following amounts:

Reimbursement

VIP FundsManager 20% Portfolio Service Class $ 58Service Class 2 8,815VIP FundsManager 50% Portfolio Service Class 58Service Class 2 105,856VIP FundsManager 60% Portfolio Service Class 18,037Service Class 2 588,599VIP FundsManager 70% Portfolio Service Class 65Service Class 2 57,391VIP FundsManager 85% Portfolio Service Class 2 41,063

In addition, through arrangements with each applicable Fund’s custodian, credits realized as a result of certain uninvested cash balances were used to reduce each applicable Fund’s or class’ expenses. All of the applicable expense reductions are noted in the table below.

Custodian creditsVIP FundsManager 20% Portfolio $ 50VIP FundsManager 50% Portfolio 24VIP FundsManager 60% Portfolio 2VIP FundsManager 70% Portfolio 1VIP FundsManager 85% Portfolio 81

9. Distributions to Shareholders.

Distributions to shareholders of each class were as follows:

Year ended December 31, 2020


VIP FundsManager 20% Portfolio Distributions to shareholders Service Class $ 1,039 $ 3,296Service Class 2 146,006 488,943Investor Class 15,349,159 43,413,228Total $ 15,496,204 $ 43,905,467

VIP FundsManager 50% Portfolio Distributions to shareholders Service Class $ 1,903 $ 6,403Service Class 2 3,243,607 10,344,271Investor Class 177,926,305 629,889,609Total $ 181,171,815 $ 640,240,283

VIP FundsManager 60% Portfolio Distributions to shareholders Service Class $ 516,871 $ 127,381Service Class 2 19,836,963 96,838,260Investor Class 186,343,673 875,819,107Total $ 206,697,507 $ 972,784,748

VIP FundsManager 70% Portfolio Distributions to shareholders Service Class $ 2,227 $ 9,527Service Class 2 1,850,914 7,049,223

65 Annual Report



Investor Class 53,424,415 202,927,455Total $ 55,277,556 $ 209,986,205

VIP FundsManager 85% Portfolio Distributions to shareholders Service Class $ 1 $ 32Service Class 2 1,622,496 5,887,188Investor Class 22,189,298 83,735,399Total $ 23,811,795 $ 89,622,619

10. Share Transactions.

Transactions for each class of shares were as follows:

Shares Shares Dollars DollarsYear

ended December 31,

2020

Year ended

December 31, 2019

Year ended

December 31, 2020

Year ended

December 31, 2019

VIP FundsManager 20% Portfolio Service Class Shares sold 474 488 $ 5,396 $ 5,362Reinvestment of distributions 2 8 27 85Shares redeemed (490) (475) (5,557) (5,200)Net increase (decrease) (14) 21 $ (134) $ 247

Service Class 2 Shares sold 169,733 135,277 $ 1,946,113 $ 1,471,009Reinvestment of distributions 12,572 45,557 146,006 488,943Shares redeemed (201,004) (148,943) (2,234,508) (1,635,546)Net increase (decrease) (18,699) 31,891 $ (142,389) $ 324,406

Investor Class Shares sold 10,143,883 7,333,333 $ 115,312,638 $ 80,852,963Reinvestment of distributions 1,314,979 4,030,427 15,349,159 43,413,228Shares redeemed (6,267,515) (5,729,496) (70,093,473) (62,457,985)Net increase (decrease) 5,191,347 5,634,264 $ 60,568,324 $ 61,808,206

VIP FundsManager 50% Portfolio Service Class Shares sold 47 46 $ 563 $ 522Reinvestment of distributions 2 6 20 65Shares redeemed (47) (54) (573) (638)Net increase (decrease) 2 (2) $ 10 $ (51)

Service Class 2 Shares sold 1,508,761 1,236,912 $ 17,633,236 $ 14,480,294Reinvestment of distributions 259,431 916,624 3,243,607 10,344,271Shares redeemed (1,735,783) (1,485,227) (21,127,010) (17,356,006)Net increase (decrease) 32,409 668,309 $ (250,167) $ 7,468,559

Investor Class Shares sold 7,191,277 7,577,197 $ 88,503,594 $ 89,133,018Reinvestment of distributions 14,149,900 55,620,389 177,926,305 629,889,609Shares redeemed (57,322,537) (78,756,218) (694,905,590) (925,558,347)Net increase (decrease) (35,981,360) (15,558,632) $ (428,475,691) $ (206,535,720)

VIP FundsManager 60% Portfolio Service Class Shares sold 1,889,668 1,033,935 $ 18,961,228 $ 10,068,520Reinvestment of distributions 48,603 11,629 515,170 118,361

66Annual Report


Shares Shares Dollars DollarsYear

ended December 31,

2020

Year ended

December 31, 2019

Year ended

December 31, 2020

Year ended

December 31, 2019

Shares redeemed (392,236) (74,673) (4,010,397) (730,225)Net increase (decrease) 1,546,035 970,891 $ 15,466,001 $ 9,456,656

Service Class 2 Shares sold 4,513,255 3,065,647 $ 44,802,467 $ 30,085,658Reinvestment of distributions 1,925,302 10,514,925 19,836,963 96,838,260Shares redeemed (6,850,794) (7,415,863) (67,756,483) (72,428,400)Net increase (decrease) (412,237) 6,164,709 $ (3,117,053) $ 54,495,518

Investor Class Shares sold 25,372,444 30,000,069 $ 250,252,163 $ 290,830,504Reinvestment of distributions 17,950,984 94,708,477 186,343,673 875,819,107Shares redeemed (48,912,797) (64,915,761) (486,648,686) (631,441,037)Net increase (decrease) (5,589,369) 59,792,785 $ (50,052,850) $ 535,208,574

VIP FundsManager 70% Portfolio Service Class Shares sold 157 165 $ 1,914 $ 1,914Reinvestment of distributions 1 5 16 58Shares redeemed (160) (164) (1,913) (1,910)Net increase (decrease) (2) 6 $ 17 $ 62

Service Class 2 Shares sold 418,359 474,575 $ 5,024,944 $ 5,507,534Reinvestment of distributions 148,835 637,547 1,850,914 7,049,223Shares redeemed (404,562) (450,771) (4,787,224) (5,257,009)Net increase (decrease) 162,632 661,351 $ 2,088,634 $ 7,299,748

Investor Class Shares sold 4,984,655 5,815,873 $ 61,889,548 $ 67,612,769Reinvestment of distributions 4,262,285 18,253,747 53,424,415 202,927,455Shares redeemed (11,809,398) (8,247,223) (138,404,885) (96,185,156)Net increase (decrease) (2,562,458) 15,822,397 $ (23,090,922) $ 174,355,068

VIP FundsManager 85% Portfolio Service Class Shares sold 9 31 $ 112 $ 348Reinvestment of distributions – 3 1 32Shares redeemed (9) (55) (105) (613)Net increase (decrease) – (21) $ 8 $ (233)

Service Class 2 Shares sold 371,641 386,898 $ 4,339,963 $ 4,407,152Reinvestment of distributions 134,213 547,479 1,622,496 5,887,188Shares redeemed (344,935) (301,364) (4,070,631) (3,379,880)Net increase (decrease) 160,919 633,013 $ 1,891,828 $ 6,914,460

Investor Class Shares sold 3,041,695 2,367,616 $ 35,232,328 $ 27,253,129Reinvestment of distributions 1,815,313 7,724,153 22,189,298 83,735,399Shares redeemed (5,117,966) (4,808,338) (58,530,502) (55,160,605)Net increase (decrease) (260,958) 5,283,431 $ (1,108,876) $ 55,827,923

11. Other.

The Funds’ organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Funds. In the normal course of business, the Funds may also enter into contracts that provide general indemnifications. The Funds’ maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Funds. The risk of material loss from such claims is considered remote.

67 Annual Report

The Funds do not invest in the Underlying Funds for the purpose of exercising management or control; however, investments by the Funds within their principal investment strategies may represent a significant portion of the Underlying Fund’s net assets. At the end of the period, the following Funds were the owners of record of 10% or more of the total outstanding shares of the Underlying Funds.

FundVIP FundsManager 50%

PortfolioVIP FundsManager 60%

Portfolio

VIP FundsManager 70% Portfolio

Fidelity Global Commodity Stock Fund 15% 20% –%Fidelity Japan Smaller Companies Fund 10% 10% –%Fidelity International Value Fund –% 13% –%Fidelity Stock Selector All Cap Fund 17% 21% –%Fidelity Commodity Strategy Fund 39% 40% 11%Fidelity U.S. Low Volatility Equity Fund 32% 43% 13%

The Funds, in aggregate, were the owners of record of more than 20% of the total outstanding shares of the following Underlying Funds.

Fund % of shares heldFidelity Global Commodity Stock Fund 44%Fidelity Japan Smaller Companies Fund 26%Fidelity International Value Fund 29%Fidelity Stock Selector All Cap Fund 49%Fidelity U.S. Low Volatility Equity Fund 95%Fidelity Commodity Strategy Fund 100%Fidelity Emerging Markets Discovery Fund 22%

In addition, at the end of the period the investment adviser or its affiliates were owners of record of more than 10% and certain otherwise unaffiliated shareholders each were owners of record of more than 10%, respectively, of the outstanding shares of the following Funds:

Affiliated %Number of

Unaffiliated ShareholdersUnaffiliated

Shareholders %VIP FundsManager 20% Portfolio 99% – –%VIP FundsManager 50% Portfolio 33% 1 61%VIP FundsManager 60% Portfolio 34% 2 44%VIP FundsManager 70% Portfolio 96% – –%VIP FundsManager 85% Portfolio 93% – –%

12. Coronavirus (COVID-19) Pandemic.

An outbreak of COVID-19 first detected in China during December 2019 has since spread globally and was declared a pandemic by the World Health Organization during March 2020. Developments that disrupt global economies and financial markets, such as the COVID-19 pandemic, may magnify factors that affect the Funds’ performance.

68Annual Report

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of Variable Insurance Products Fund V and the Shareholders of VIP FundsManager 20% Portfolio, VIP FundsManager 50% Portfolio, VIP FundsManager 60% Portfolio, VIP FundsManager 70% Portfolio and VIP FundsManager 85% Portfolio

Opinions on the Financial StatementsWe have audited the accompanying statements of assets and liabilities, including the schedules of investments, of VIP FundsManager 20% Portfolio, VIP FundsManager 50% Portfolio, VIP FundsManager 60% Portfolio, VIP FundsManager 70% Portfolio and VIP FundsManager 85% Portfolio (five of the funds constituting Variable Insurance Products Fund V, hereafter collectively referred to as the “Funds”) as of December 31, 2020, the related statements of operations for the year ended December 31, 2020, the statements of changes in net assets for each of the two years in the period ended December 31, 2020, including the related notes, and the financial highlights for each of the five years in the period ended December 31, 2020 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of December 31, 2020, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended December 31, 2020 and each of the financial highlights for each of the five years in the period ended December 31, 2020 in conformity with accounting principles generally accepted in the United States of America.

Basis for OpinionsThese financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of December 31, 2020 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.

/s/ PricewaterhouseCoopers LLP Boston, Massachusetts February 11, 2021

We have served as the auditor of one or more investment companies in the Fidelity group of funds since 1932.

69 Annual Report

Trustees and Officers

The Trustees, Members of the Advisory Board (if any), and officers of the trust and funds, as applicable, are listed below. The Board of Trustees governs each fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee each fund’s activities, review contractual arrangements with companies that provide services to each fund, oversee management of the risks associated with such activities and contractual arrangements, and review each fund’s performance. If the interests of a fund and an underlying Fidelity® fund were to diverge, a conflict of interest could arise and affect how the Trustees and Members of the Advisory Board fulfill their fiduciary duties to the affected funds. FMR has structured the funds to avoid these potential conflicts, although there may be situations where a conflict of interest is unavoidable. In such instances, FMR, the Trustees, and Members of the Advisory Board would take reasonable steps to minimize and, if possible, eliminate the conflict. Each of the Trustees oversees 280 funds.

The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the funds is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.

Each fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.

Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees’ commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.

In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing each fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board’s conclusion that the Trustee should serve (or continue to serve) as a trustee of the funds, is provided below.

Board Structure and Oversight Function. Abigail P. Johnson is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the funds. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Arthur E. Johnson serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.

Fidelity® funds are overseen by different Boards of Trustees. The funds’ Board oversees Fidelity’s investment-grade bond, money market, asset allocation and certain equity funds, and other Boards oversee Fidelity’s high income and other equity funds. The asset allocation funds may invest in Fidelity® funds that are overseen by such other Boards. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.

The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, each fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the funds’ activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the funds’ business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the funds are carried out by or through FMR, its affiliates, and other service providers, the funds’ exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board’s committees has responsibility for overseeing different aspects of the funds’ activities, oversight is exercised primarily through the Operations and Audit Committees. In addition, an ad hoc Board committee of Independent Trustees has worked with FMR to enhance the Board’s oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. Appropriate personnel, including but not limited to the funds’ Chief Compliance Officer (CCO), FMR’s internal auditor, the independent accountants, the funds’ Treasurer and portfolio management personnel, make periodic reports to the Board’s committees, as appropriate, including an annual review of Fidelity’s risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under “Standing Committees of the Trustees.”

Interested Trustees*:

Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.

70Annual Report

Trustees and Officers – continued

Name, Year of Birth; Principal Occupations and Other Relevant Experience+

Abigail P. Johnson (1961)

Year of Election or Appointment: 2009 Trustee Chairman of the Board of Trustees

Ms. Johnson also serves as Trustee of other Fidelity® funds. Ms. Johnson serves as Chairman (2016-present), Chief Executive Officer (2014-present), and Director (2007-present) of FMR LLC (diversified financial services company), President of Fidelity Financial Services (2012-present) and President of Personal, Workplace and Institutional Services (2005-present). Ms. Johnson is Chairman and Director of Fidelity Management & Research Company LLC (investment adviser firm, 2011-present). Previously, Ms. Johnson served as Chairman and Director of FMR Co., Inc. (investment adviser firm, 2011-2019), Vice Chairman (2007-2016) and President (2013-2016) of FMR LLC, President and a Director of Fidelity Management & Research Company (2001-2005), a Trustee of other investment companies advised by Fidelity Management & Research Company, Fidelity Investments Money Management, Inc. (investment adviser firm), and FMR Co., Inc. (2001-2005), Senior Vice President of the Fidelity® funds (2001-2005), and managed a number of Fidelity® funds. Ms. Abigail P. Johnson and Mr. Arthur E. Johnson are not related.

Jennifer Toolin McAuliffe (1959)

Year of Election or Appointment: 2016 Trustee

Ms. McAuliffe also serves as Trustee of other Fidelity® funds. Previously, Ms. McAuliffe served as Co-Head of Fixed Income of Fidelity Investments Limited (now known as FIL Limited (FIL)) (diversified financial services company), Director of Research for FIL’s credit and quantitative teams in London, Hong Kong and Tokyo and Director of Research for taxable and municipal bonds at Fidelity Investments Money Management, Inc. Ms. McAuliffe previously served as a member of the Advisory Board of certain Fidelity® funds (2016). Ms. McAuliffe was previously a lawyer at Ropes & Gray LLP and currently serves as director or trustee of several not-for-profit entities.

* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.

+ The information includes the Trustee’s principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee’s qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for each fund.

Independent Trustees:

Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.

Name, Year of Birth; Principal Occupations and Other Relevant Experience+

Elizabeth S. Acton (1951)


Ms. Acton also serves as Trustee of other Fidelity® funds. Prior to her retirement, Ms. Acton served as Executive Vice President, Finance (2011-2012), Executive Vice President, Chief Financial Officer (2002-2011) and Treasurer (2004-2005) of Comerica Incorporated (financial services). Prior to joining Comerica, Ms. Acton held a variety of positions at Ford Motor Company (1983-2002), including Vice President and Treasurer (2000-2002) and Executive Vice President and Chief Financial Officer of Ford Motor Credit Company (1998-2000). Ms. Acton currently serves as a member of the Board and Audit and Finance Committees of Beazer Homes USA, Inc. (homebuilding, 2012-present). Ms. Acton previously served as a member of the Advisory Board of certain Fidelity® funds (2013-2016).

Ann E. Dunwoody (1953)


General Dunwoody also serves as Trustee of other Fidelity® funds. General Dunwoody (United States Army, Retired) was the first woman in U.S. military history to achieve the rank of four-star general and prior to her retirement in 2012 held a variety of positions within the U.S. Army, including Commanding General, U.S. Army Material Command (2008-2012). General Dunwoody currently serves as President of First to Four LLC (leadership and mentoring services, 2012-present), a member of the Board and Nomination and Corporate Governance Committees of Kforce Inc. (professional staffing services, 2016-present) and a member of the Board of Automattic Inc. (software engineering, 2018-present). Previously, General Dunwoody served as a member of the Advisory Board and Nominating and Corporate Governance Committee of L3 Technologies, Inc. (communication, electronic, sensor and aerospace systems, 2013-2019) and a member of the Board and Audit and Sustainability and Corporate Responsibility Committees of Republic Services, Inc. (waste collection, disposal and recycling, 2013-2016). Ms. Dunwoody also serves on several boards for non-profit organizations, including as a member of the Board, Chair of the Nomination and Governance Committee and a member of the Audit Committee of Logistics Management Institute (consulting non-profit, 2012-present), a member of the Council of Trustees for the Association of the United States Army (advocacy non-profit, 2013-present), a member of the Board of Florida Institute of Technology (2015-present) and a member of the Board of ThanksUSA (military family education non-profit, 2014-present). General Dunwoody previously served as a member of the Advisory Board of certain Fidelity® funds (2018).

71 Annual Report

John Engler (1948)


Mr. Engler also serves as Trustee of other Fidelity® funds. Previously, Mr. Engler served as Governor of Michigan (1991-2003), President of the Business Roundtable (2011-2017) and interim President of Michigan State University (2018-2019). Mr. Engler currently serves as a member of the Board of K12 Inc. (technology-based education company, 2012-present). Previously, Mr. Engler served as a member of the Board of Universal Forest Products (manufacturer and distributor of wood and wood-alternative products, 2003-2019) and Trustee of The Munder Funds (2003-2014). Mr. Engler previously served as a member of the Advisory Board of certain Fidelity® funds (2014-2016).

Robert F. Gartland (1951)


Mr. Gartland also serves as Trustee of other Fidelity® funds. Prior to his retirement, Mr. Gartland held a variety of positions at Morgan Stanley (financial services, 1979-2007), including Managing Director (1987-2007) and Chase Manhattan Bank (1975-1978). Mr. Gartland previously served as Chairman and an investor in Gartland & Mellina Group Corp. (consulting, 2009-2019), as a member of the Board of National Securities Clearing Corporation (1993-1996) and as Chairman of TradeWeb (2003-2004).

Arthur E. Johnson (1947)

Year of Election or Appointment: 2008 Trustee Chairman of the Independent Trustees

Mr. Johnson also serves as Trustee of other Fidelity® funds. Prior to his retirement, Mr. Johnson served as Senior Vice President of Corporate Strategic Development of Lockheed Martin Corporation (defense contractor, 1999-2009). Mr. Johnson currently serves as a member of the Board of Booz Allen Hamilton (management consulting, 2011-present). Mr. Johnson previ-ously served as a member of the Board of Eaton Corporation plc (diversified power management, 2009-2019) and a member of the Board of AGL Resources, Inc. (holding company, 2002-2016). Mr. Johnson previously served as Vice Chairman (2015-2018) of the Independent Trustees of certain Fidelity® funds. Mr. Arthur E. Johnson is not related to Ms. Abigail P. Johnson.

Michael E. Kenneally (1954)

Year of Election or Appointment: 2009 Trustee Vice Chairman of the Independent Trustees

Mr. Kenneally also serves as Trustee of other Fidelity® funds. Prior to his retirement, Mr. Kenneally served as Chairman and Global Chief Executive Officer of Credit Suisse Asset Management and Executive Vice President and Chief Investment Officer of Bank of America Corporation. Earlier roles at Bank of America included Director of Research, Senior Portfolio Manager for various institutional equity accounts and mutual funds and Portfolio Manager for a number of institutional fixed-income clients. Mr. Kenneally began his career as a Research Analyst in 1983 and was awarded the Chartered Financial Analyst (CFA) designation in 1991.

Marie L. Knowles (1946)


Ms. Knowles also serves as Trustee of other Fidelity® funds. Prior to her retirement, Ms. Knowles held several positions at Atlantic Richfield Company (diversified energy), including Executive Vice President and Chief Financial Officer (1996-2000), Senior Vice President (1993-1996) and President of ARCO Transportation Company (pipeline and tanker operations, 1993-1996). Ms. Knowles currently serves as a member of the Board of McKesson Corporation (healthcare service, since 2002), a member of the Board of the Santa Catalina Island Company (real estate, 2009-present), a member of the Investment Company Institute Board of Governors and a member of the Governing Council of the Independent Directors Council (2014-present). Ms. Knowles also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California. Ms. Knowles previously served as Chairman (2015-2018) and Vice Chairman (2012-2015) of the Independent Trustees of certain Fidelity® funds.

Mark A. Murray (1954)


Mr. Murray also serves as Trustee of other Fidelity® funds. Previously, Mr. Murray served as Co-Chief Executive Officer (2013-2016), President (2006-2013) and Vice Chairman (2013-2020) of Meijer, Inc. Mr. Murray serves as a member of the Board and Nuclear Review and Public Policy and Responsibility Committees of DTE Energy Company (diversified energy company, 2009-present) and a member of the Board and Audit Committee and Chairman of the Nominating and Corporate Governance Committee of Universal Forest Products, Inc. (manufacturer and distributor of wood and wood-alternative products, 2004-2016). Mr. Murray previously served as a member of the Board of Spectrum Health (not-for-profit health system, 2015-2019). Mr. Murray also serves as a member of the Board of many community and professional organizations. Mr. Murray previously served as a member of the Advisory Board of certain Fidelity® funds (2016).

+ The information includes the Trustee’s principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee’s qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for each fund.

Advisory Board Members and Officers:

Correspondence intended for an officer may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.

72Annual Report

Trustees and Officers – continued

Name, Year of Birth; Principal Occupation

Craig S. Brown (1977)

Year of Election or Appointment: 2019 Assistant Treasurer

Mr. Brown also serves as Assistant Treasurer of other funds. Mr. Brown is an employee of Fidelity Investments (2013-present).

John J. Burke III (1964)

Year of Election or Appointment: 2018 Chief Financial Officer

Mr. Burke also serves as Chief Financial Officer of other funds. Mr. Burke serves as Head of Investment Operations for Fidelity Fund and Investment Operations (2018-present) and is an employee of Fidelity Investments (1998-present). Previously Mr. Burke served as head of Asset Management Investment Operations (2012-2018).

David J. Carter (1973)

Year of Election or Appointment: 2020 Assistant Secretary

Mr. Carter also serves as Assistant Secretary of other funds. Mr. Carter serves as Vice President, Associate General Counsel (2010-present) and is an employee of Fidelity Investments (2005-present).

Jonathan Davis (1968)


Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).

Laura M. Del Prato (1964)

Year of Election or Appointment: 2018 President and Treasurer

Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato is an employee of Fidelity Investments (2017-present). Previously, Ms. Del Prato served as President and Treasurer of The North Carolina Capital Management Trust: Cash Portfolio and Term Portfolio (2018-2020). Prior to joining Fidelity Investments, Ms. Del Prato served as a Managing Director and Treasurer of the JPMorgan Mutual Funds (2014-2017). Prior to JPMorgan, Ms. Del Prato served as a partner at Cohen Fund Audit Services (accounting firm, 2012-2013) and KPMG LLP (accounting firm, 2004-2012).

Colm A. Hogan (1973)


Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Previously, Mr. Hogan served as Deputy Treasurer of certain Fidelity® funds (2016-2020) and Assistant Treasurer of certain Fidelity® funds (2016-2018).

Cynthia Lo Bessette (1969)

Year of Election or Appointment: 2019 Secretary and Chief Legal Officer (CLO)

Ms. Lo Bessette also serves as an officer of other funds. Ms. Lo Bessette serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company LLC (investment adviser firm, 2019-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2019-present). She is a Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2019-present), and is an employee of Fidelity Investments. Previously, Ms. Lo Bessette served as CLO, Secretary, and Senior Vice President of FMR Co., Inc. (investment adviser firm, 2019); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2019). Prior to joining Fidelity Investments, Ms. Lo Bessette was Executive Vice President, General Counsel (2016-2019) and Senior Vice President, Deputy General Counsel (2015-2016) of OppenheimerFunds (investment management company) and Deputy Chief Legal Officer (2013-2015) of Jennison Associates LLC (investment adviser firm).

Chris Maher (1972)


Mr. Maher also serves as an officer of other funds. Mr. Maher serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Maher served as Assistant Treasurer of certain funds (2013-2020); Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).

73 Annual Report

Kenneth B. Robins (1969)

Year of Election or Appointment: 2020 Chief Compliance Officer

Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company LLC (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Compliance Officer of FMR Co., Inc. (investment adviser firm, 2016-2019), as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.

Brett Segaloff (1972)

Year of Election or Appointment: 2021 Anti-Money Laundering (AML) Officer

Mr. Segaloff also serves as an AML Officer of other funds and other related entities. He is Director, Anti-Money Laundering (2007-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments (1996-present).

Stacie M. Smith (1974)


Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Assistant Treasurer (2013-2019) and Deputy Treasurer (2013-2016) of certain Fidelity® funds.

Marc L. Spector (1972)

Year of Election or Appointment: 2016 Deputy Treasurer

Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche LLP (accounting firm, 2005-2013).

Jim Wegmann (1979)


Mr. Wegmann also serves as Assistant Treasurer of other funds. Mr. Wegmann is an employee of Fidelity Investments (2011-present).

Vadim Zlotnikov (1962)

Year of Election or Appointment: 2019 Vice President

Mr. Zlotnikov also serves as Vice President of other funds. Mr. Zlotnikov serves as President of FIAM (Fidelity Institutional Asset Management) and is an employee of Fidelity Investments (2018-present). Previously, Mr. Zlotnikov served as President and Chief Investment Officer of Global Asset Allocation (2018-2020). Prior to joining Fidelity Investments, Mr. Zlotnikov served as Co-Head of Multi-Asset Solutions, Chief Market Strategist, and CIO of Systematic Strategies with AllianceBernstein (investment adviser firm, 2002-2018).

74Annual Report

Shareholder Expense Example

As a shareholder, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or redemption proceeds, as applicable and (2) ongoing costs, which generally include management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in a fund and to compare these costs with the ongoing costs of investing in other mutual funds.The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (July 1, 2020 to December 31, 2020).Actual ExpensesThe first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class/Fund under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period. If any fund is a shareholder of any underlying mutual funds or exchange-traded funds (ETFs) (the Underlying Funds), such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses incurred presented in the table. These fees and expenses are not included in the annualized expense ratio used to calculate the expense estimate in the table below. The estimate of expenses does not include any fees or other expenses of any variable annuity or variable life insurance product. If they were, the estimate of expenses you paid during the period would be higher, and your ending account value would be lower.Hypothetical Example for Comparison PurposesThe second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. If any fund is a shareholder of any Underlying Funds, such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses as presented in the table. These fees and expenses are not included in the annualized expense ratio used to calculate the expense estimate in the table below. The estimate of expenses does not include any fees or other expenses of any variable annuity or variable life insurance product. If they were, the estimate of expenses you paid during the period would be higher, and your ending account value would be lower.Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in compar-ing ongoing costs only, and will not help you determine the relative total costs of owning different funds.

Annualized Expense Ratio- A

Beginning Account Value July 1, 2020

Ending Account Value

December 31, 2020

Expenses Paid During Period- B

July 1, 2020 to December 31, 2020

VIP FundsManager 20% PortfolioService Class .20%Actual $1,000.00 $1,057.50 $1.03Hypothetical- C $1,000.00 $1,024.13 $1.02Service Class 2 .35%Actual $1,000.00 $1,057.10 $1.81Hypothetical- C $1,000.00 $1,023.38 $1.78Investor Class .20%Actual $1,000.00 $1,057.50 $1.03Hypothetical- C $1,000.00 $1,024.13 $1.02VIP FundsManager 50% PortfolioService Class .20%Actual $1,000.00 $1,132.00 $1.07Hypothetical- C $1,000.00 $1,024.13 $1.02Service Class 2 .35%Actual $1,000.00 $1,131.20 $1.87Hypothetical- C $1,000.00 $1,023.38 $1.78Investor Class .20%Actual $1,000.00 $1,131.20 $1.07Hypothetical- C $1,000.00 $1,024.13 $1.02VIP FundsManager 60% PortfolioService Class .20%Actual $1,000.00 $1,155.50 $1.08Hypothetical- C $1,000.00 $1,024.13 $1.02Service Class 2 .35%Actual $1,000.00 $1,154.60 $1.90Hypothetical- C $1,000.00 $1,023.38 $1.78Investor Class .20%Actual $1,000.00 $1,155.50 $1.08Hypothetical- C $1,000.00 $1,024.13 $1.02VIP FundsManager 70% PortfolioService Class .20%

75 Annual Report

Annualized Expense Ratio- A

Beginning Account Value July 1, 2020

Ending Account Value

December 31, 2020

Expenses Paid During Period- B

July 1, 2020 to December 31, 2020

Actual $1,000.00 $1,178.10 $1.10Hypothetical- C $1,000.00 $1,024.13 $1.02Service Class 2 .35%Actual $1,000.00 $1,176.70 $1.92Hypothetical- C $1,000.00 $1,023.38 $1.78Investor Class .20%Actual $1,000.00 $1,178.10 $1.10Hypothetical- C $1,000.00 $1,024.13 $1.02VIP FundsManager 85% PortfolioService Class .20%Actual $1,000.00 $1,211.70 $1.11Hypothetical- C $1,000.00 $1,024.13 $1.02Service Class 2 .35%Actual $1,000.00 $1,212.50 $1.95Hypothetical- C $1,000.00 $1,023.38 $1.78Investor Class .20%Actual $1,000.00 $1,213.20 $1.11Hypothetical- C $1,000.00 $1,024.13 $1.02

A Annualized expense ratio reflects expenses net of applicable fee waivers.B Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/ 366 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not

included in each annualized expense ratio.C 5% return per year before expenses

76Annual Report

Distributions (Unaudited)

The Board of Trustees of each fund voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities and dividends derived from net investment income:

Pay Date Record Date Dividends Capital GainsVIP FundsManager 20% Service Class 02/05/21 02/05/21 $ 0.018 $ 0.024Service Class 2 02/05/21 02/05/21 $ 0.018 $ 0.024Investor Class 02/05/21 02/05/21 $ 0.018 $ 0.024VIP FundsManager 50% Service Class 02/05/21 02/05/21 $ 0.038 $ 0.216Service Class 2 02/05/21 02/05/21 $ 0.037 $ 0.216Investor Class 02/05/21 02/05/21 $ 0.038 $ 0.216VIP FundsManager 60% Service Class 02/05/21 02/05/21 $ 0.034 $ 0.170Service Class 2 02/05/21 02/05/21 $ 0.033 $ 0.170Investor Class 02/05/21 02/05/21 $ 0.034 $ 0.170VIP FundsManager 70% Service Class 02/05/21 02/05/21 $ 0.047 $ 0.162Service Class 2 02/05/21 02/05/21 $ 0.047 $ 0.162Investor Class 02/05/21 02/05/21 $ 0.047 $ 0.162VIP FundsManager 85% Service Class 02/05/21 02/05/21 $ 0.052 $ 0.251Service Class 2 02/05/21 02/05/21 $ 0.051 $ 0.251Investor Class 02/05/21 02/05/21 $ 0.052 $ 0.251

The funds hereby designate as capital gain dividend the amounts noted below for the taxable year ended December 31, 2020, or, if subsequently determined to be different, the net capital gain of such year.

VIP FundsManager 20% $ 947,497VIP FundsManager 50% $ 79,398,676VIP FundsManager 60% $ 82,555,536VIP FundsManager 70% $ 16,384,164VIP FundsManager 85% $ 9,931,183

A percentage of the dividends distributed during the fiscal year for the following funds were derived from interest on U.S. Government securities which is generally exempt from state income tax

VIP FundsManager 20% Service Class 15.26%Service Class 2 15.26%Investor Class 15.26%VIP FundsManager 50% Service Class 9.23%Service Class 2 9.23%Investor Class 9.23%VIP FundsManager 60% Service Class 7.46%Service Class 2 7.46%Investor Class 7.46%VIP FundsManager 70% Service Class 5.05%Service Class 2 5.05%Investor Class 5.05%VIP FundsManager 85% Service Class 2.85%Service Class 2 2.85%Investor Class 2.85%

A percentage of the dividends distributed during the fiscal year for the following funds qualify for the dividends–received deduction for corporate shareholders:

77 Annual Report

Service Class Service Class 2 Investor ClassVIP FundsManager 20% February, 2020 0% 0% 0%December, 2020 14% 16% 14%VIP FundsManager 50% February, 2020 1% 1% 1%December, 2020 38% 44% 38%VIP FundsManager 60% February, 2020 1% 1% 1%December, 2020 51% 60% 51%VIP FundsManager 70% February, 2020 1% 1% 1%December, 2020 76% 94% 76%VIP FundsManager 85% February, 2020 2% 2% 2%December, 2020 100% 100% 100%

The amounts per share which represent income derived from sources within, and taxes paid to, foreign countries or possessions of the United States are as follows:

Pay Date Income TaxesVIP FundsManager 20% Service Class 12/30/2020 $ 0.0093 $ 0.0013Service Class 2 12/30/2020 $ 0.0081 $ 0.0013Investor Class 12/30/2020 $ 0.0093 $ 0.0013VIP FundsManager 50% Service Class 12/30/2020 $ 0.0228 $ 0.0035Service Class 2 12/30/2020 $ 0.0197 $ 0.0035Investor Class 12/30/2020 $ 0.0228 $ 0.0035VIP FundsManager 60% Service Class 12/30/2020 $ 0.0212 $ 0.0033Service Class 2 12/30/2020 $ 0.0177 $ 0.0033Investor Class 12/30/2020 $ 0.0212 $ 0.0033VIP FundsManager 70% Service Class 12/30/2020 $ 0.0293 $ 0.0045Service Class 2 12/30/2020 $ 0.0237 $ 0.0045Investor Class 12/30/2020 $ 0.0293 $ 0.0045VIP FundsManager 85% Service Class 12/30/2020 $ 0.0331 $ 0.0049Service Class 2 12/30/2020 $ 0.0237 $ 0.0049Investor Class 12/30/2020 $ 0.0331 $ 0.0049

78Annual Report

Board Approval of Investment Advisory Contracts and Management Fees

VIP FundsManager Funds

Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company LLC (FMR) for each fund (the Advisory Contract). The Board, assisted by the advice of fund counsel and Independent Trustees’ counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.

The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of each fund’s Advisory Contract, including the services and support provided to each fund and its shareholders. The Board has established four standing committees (Committees) — Operations, Audit, Fair Valuation, and Governance and Nominating — each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Operations Committee, of which all of the Independent Trustees are members, meets regularly throughout the year and considers, among other matters, information specifically related to the annual consideration of the renewal of each fund’s Advisory Contract. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of each fund’s Advisory Contract. The Board also meets as needed to review matters specifically related to the Board’s annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through joint ad hoc committees to discuss certain matters relevant to all of the Fidelity funds.

At its September 2020 meeting, the Board unanimously determined to renew each fund’s Advisory Contract. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services provided to each fund and its shareholders (including the investment performance of each fund); (ii) the competitiveness of each fund’s management fee and total expense ratio relative to peer funds; (iii) the total costs of the services provided by and the profits realized by Fidelity from its relationships with each fund; and (iv) the extent to which, if any, economies of scale exist and are realized as each fund grows, and whether any economies of scale are appropriately shared with fund shareholders.

In considering whether to renew the Advisory Contract for each fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees’ counsel and through the exercise of its business judgment, that the renewal of the Advisory Contract was in the best interests of each fund and its shareholders and that the compensation payable under the Advisory Contract was fair and reasonable. The Board’s decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of each fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity’s competitors, and that each fund’s shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in that fund, which is part of the Fidelity family of funds.

Nature, Extent, and Quality of Services Provided. The Board considered Fidelity’s staffing as it relates to the funds, including the backgrounds of investment personnel of FMR, and also consid-ered the funds’ investment objectives, strategies, and related investment philosophies. The Independent Trustees also had discussions with senior management of Fidelity’s investment operations and investment groups with responsibility for the underlying Fidelity funds in which each fund invests. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of each fund. Additionally, the Board considered the portfolio managers’ investments, if any, in the funds that they manage.

Resources Dedicated to Investment Management and Support Services. The Board reviewed the general qualifications and capabilities of Fidelity’s investment staff, including its size, education, experience, and resources, as well as Fidelity’s approach to recruiting, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity’s global investment organization. The Board also noted that Fidelity’s analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity’s investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity’s risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process. The Board also considered Fidelity’s investments in business continuity planning, and its success in continuously providing services to the funds notwithstanding the severe disruptions caused by the COVID-19 pandemic.

Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by Fidelity under the Advisory Contract and under separate agreements covering transfer agency, and pricing and bookkeeping services for each fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; and (iii) the resources devoted to, and the record of compliance with, each fund’s compliance policies and procedures.

The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value and convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information over the Internet and through telephone representatives, investor educa-tion materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.

Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to Fidelity’s investment research process, which includes meetings with management of issuers of securities in which the funds invest, and to the support of the senior management team that oversees asset management; (ii) con-tinuing efforts to enhance Fidelity’s global research capabilities; (iii) launching new funds and ETFs with innovative structures, strategies and pricing and making other enhancements to meet client needs; (iv) launching new share classes of existing funds; (v) eliminating purchase minimums and broadening eligibility requirements for certain funds and share classes; (vi) reducing management fees and total expenses for certain target date funds or classes and index funds; (vii) lowering expenses for certain funds and classes by implementing or lowering expense caps; (viii) rational-izing product lines and gaining increased efficiencies from fund mergers, liquidations, and share class consolidations; (ix) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; and (x) continuing to implement enhancements to further strengthen Fidelity’s product line to increase investors’ probability of success in achieving their investment goals, including retirement income goals.

79 Annual Report

Investment Performance. The Board considered whether each fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history.

The Board took into account discussions that occur at Board meetings throughout the year with representatives of the investment adviser about fund investment performance. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for each fund for different time periods, measured against one or more appropriate securities market indices, including a customized blended index that reflects the respective weights of the fund’s asset classes (each a benchmark index) and an appropriate peer group of funds with similar objectives (peer group). In its evaluation of fund investment performance at meetings throughout the year, the Board gave particular attention to information indicating underperformance of certain Fidelity funds for specific time periods and discussed with the investment adviser the reasons for such underperformance.

In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on gross performance (before fees and expenses, including acquired fund fees and expenses, but after transaction costs, if any) compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and on net performance (after fees and expenses, including acquired fund fees and expenses) compared to appropriate peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; the extent to which particular underlying funds affected performance; and fund cash flows and other factors. The Independent Trustees generally give greater weight to fund performance over longer time periods than over shorter time periods. Depending on the circumstances, the Independent Trustees may be satisfied with a fund’s performance notwithstanding that it lags its benchmark index or peer group for certain periods.

The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative calendar year total return information for each fund and an appropriate benchmark index and peer group for the most recent one-, three-, and five-year periods. The Independent Trustees recognize that shareholders who are not investing through a tax-advantaged retirement account also consider tax consequences in evaluating performance.

Based on its review, the Board concluded that the nature, extent, and quality of services provided to each fund under the Advisory Contracts should continue to benefit the shareholders of each fund.

Competitiveness of Management Fee and Total Expense Ratio. The Board considered each fund’s management fee and total expense ratio compared to “mapped groups” of competitive funds and classes created for the purpose of facilitating the Trustees’ competitive analysis of management fees and total expenses, and also considered that each fund bears indirectly the fees and expenses, including the management fees, paid by the underlying Fidelity funds in which it invests. Fidelity creates “mapped groups” by combining similar Lipper investment objective categories that have comparable investment mandates. Combining Lipper investment objective categories aids the Board’s management fee and total expense ratio comparisons by broadening the competi-tive group used for comparison.

Management Fee. The Board considered two proprietary management fee comparisons forthe 12-month periods shown in basis points (BP) in the charts below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the “Total Mapped Group.” The Total Mapped Group comparison focuses on a fund’s standing in terms of gross manage-ment fees before expense reimbursements or caps relative to the total universe of funds with comparable investment mandates, regardless of whether their management fee structures also are comparable. Funds with comparable investment mandates offer exposure to similar types of securities. Funds with comparable management fee structures have similar management fee contractual arrangements (e.g., flat rate charged for advisory services, all-inclusive fee rate, etc.). “TMG %” represents the percentage of funds in the Total Mapped Group that had management fees that were lower than a fund’s. For example, a hypothetical TMG % of 20% would mean that 80% of the funds in the Total Mapped Group had higher, and 20% had lower, management fees than a fund. The funds’ actual TMG %s and the number of funds in the Total Mapped Group are in the charts below. The “Asset-Sized Peer Group” (ASPG) comparison focuses on a fund’s standing relative to a subset of non-Fidelity funds within the Total Mapped Group that are similar in size and management fee structure. For example, if a fund is in the first quartile of the ASPG, the fund’s manage-ment fee ranks in the least expensive or lowest 25% of funds in the ASPG. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee structures, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which a fund’s management fee rate ranked, is also included in the charts and was considered by the Board. Because the vast majority of competitor funds’ management fees do not cover non-management expenses, in prior years, each fund was compared on the basis of a hypothetical “net management fee,” which was derived by subtracting payments made by Fidelity for non-management expenses (including pric-ing and bookkeeping fees and fees paid to non-affiliated custodians) from the fund’s all-inclusive fee. Given the funds’ competitive management fee rates, Fidelity no longer calculates hypothetical net management fees for the funds and, as a result, the charts do not include hypothetical net management fees for periods after 2016.

80Annual Report

Board Approval of Investment Advisory Contracts and Management Fees – continued

VIP FundsManager 20%


81 Annual Report



82Annual Report

Board Approval of Investment Advisory Contracts and Management Fees – continued


The Board noted that each fund’s management fee rate ranked above the median of its Total Mapped Group and above the median of its ASPG for 2019. The Board considered that the funds are more actively managed than most funds in their Total Mapped Group and ASPG and have a larger universe of funds in which to invest.

The Board further considered that FMR has contractually agreed to waive 0.05% of each fund’s management fee through April 30, 2021.

Based on its review, the Board concluded that each fund’s management fee is fair and reasonable in light of the services that the fund receives and the other factors considered.

Total Expense Ratio. In its review of the total expense ratio of each class of each fund, the Board considered the fund’s all-inclusive fee rate. The Board also considered other expenses, such as pric-ing and bookkeeping fees and custodial, legal, and audit fees, paid by FMR under the all-inclusive arrangement. The Board also considered fund-paid 12b-1 fees. The Board also noted that Fidelity may agree to waive fees or reimburse expenses from time to time, and the extent to which, if any, it has done so for each fund. As part of its review, the Board also considered the current and historical total expense ratios of each class of each fund compared to competitive fund median expenses. Each class of each fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.

The Board noted that the total expense ratio of each of Investor Class and Service Class of each fund ranked below the competitive median for 2019 and the total expense ratio of Service Class 2 of each fund ranked above the competitive median for 2019. The Board considered that, in general, various factors can affect total expense ratios. The Board noted that the total expense ratio of Service Class 2 was above the competitive median because of its 12b-1 fees and that excluding 12b-1 fees of both the class and competitor classes, the total expense ratio of Service Class 2 ranked below the median. The Board noted that each fund offers multiple classes, each of which has a different 12b-1 fee structure, and that the multiple structures are intended to offer a range of pricing options for the intermediary market. The Board also noted that the total expense ratios of the classes of each fund vary primarily by the level of their 12b-1 fees.

In considering the total expense ratio of each class of each fund, the Board also considered an alternative competitive analysis that included both top level (i.e., direct) fund fees and acquired fund fees and expenses for the class and the other funds and classes to which it is compared. The Board noted that, under this alternative competitive analysis, the total expense ratio of each class of each fund was below the competitive median for 2019, except that the total expense ratio of Service Class 2 of each of VIP FundsManager 70% and VIP FundsManager 85% was above the competitive median for 2019. These classes were above the median because of their 12b-1 fees and because of their higher all-inclusive management fee due to their specialized strategy.

The Board further considered that FMR contractually agreed to reimburse 0.10% of “class-level” expenses for Service Class and Service Class 2 as long as these classes continue to be sold to unaffiliated insurance companies.

Fees Charged to Other Fidelity Clients. The Board also considered Fidelity fee structures and other information with respect to clients of Fidelity, such as other funds advised or subadvised by Fidelity, pension plan clients, and other institutional clients with similar mandates. The Board noted that a joint ad hoc committee created by it and the boards of other Fidelity funds periodically reviews and compares Fidelity’s institutional investment advisory business with its business of providing services to the Fidelity funds and also noted the most recent findings of the committee. The Board noted that the committee’s review included a consideration of the differences in services provided, fees charged, and costs incurred, as well as competition in the markets serving the different categories of clients.

Based on its review of total expense ratios and fees charged to other Fidelity clients, the Board concluded that the total expense ratio of each class of each fund was reasonable in light of the services that the fund and its shareholders receive and the other factors considered.

Costs of the Services and Profitability. The Board consideredthe revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, manag-ing, administering and servicing each fund and servicing each fund’s shareholders. The Board also considered the level of Fidelity’s profits in respect of all the Fidelity funds, including the Fidelity funds in which the funds invest.

On an annual basis, Fidelity presents to the Board information about the profitability of its relationships with each fund. Fidelity calculates profitability information for each fund, as well as aggregate profitability information for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the books and records

83 Annual Report

of Fidelity on which Fidelity’s audited financial statements are based. The Audit Committee of the Board reviews any significant changes from the prior year’s methodologies and the full Board approves such changes.

A public accounting firm has been engaged annually by the Board as part of the Board’s assessment of Fidelity’s profitability analysis. The engagement includes the review and assessment of the methodologies used by Fidelity in determining the revenues and expenses attributable to Fidelity’s mutual fund business, and completion of agreed-upon procedures in respect of the mathematical accuracy of certain fund profitability information and its conformity to established allocation methodologies. After considering the reports issued under the engagement and information provided by Fidelity, the Board concluded that while other allocation methods may also be reasonable, Fidelity’s profitability methodologies are reasonable in all material respects.

The Board also reviewed Fidelity’s non-fund businesses and potential indirect benefits such businesses may have received as a result of their association with Fidelity’s mutual fund business (i.e., fall-out benefits) as well as cases where Fidelity’s affiliates may benefit from the funds’ business. The Board considered areas where potential indirect benefits to the Fidelity funds from their relationships with Fidelity may exist. The Board also considered that in 2019 a joint ad hoc committee created by it and the boards of other Fidelity funds evaluated potential fall-out benefits (PFOB Committee). The Board noted that it considered the PFOB Committee’s findings in connection with its consideration of the renewal of the Advisory Contracts.

The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of each fund, including the conclusions of the PFOB Committee, and was satisfied that the profitability was not excessive.

Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including each fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which each fund will benefit from economies of scale as assets grow through increased services to the fund, through waivers or reimbursements, or through fee or expense ratio reductions. The Board recognized that, due to each fund’s current contractual arrangements, its expense ratio will not decline if the fund’s operating costs decrease as assets grow, or rise as assets decrease. The Board also noted that a committee (the Economies of Scale Committee) created by it and the boards of other Fidelity funds periodically analyzes whether Fidelity attains economies of scale in respect of the management and servicing of the Fidelity funds, whether the Fidelity funds have appropriately benefited from such economies of scale, and whether there is potential for realization of any further economies of scale.

The Board concluded, taking into account the analysis of the Economies of Scale Committee, that economies of scale, if any, are being appropriately shared between fund shareholders and Fidelity.

Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds’ advisory contracts, the Board requested and received additional information on certain topics, including: (i) Fidelity’s fund profitability methodology, profitability trends for certain funds, the allocation of various costs to different funds, and the impact of certain factors on fund profitability results; (ii) portfolio manager changes that have occurred during the past year and the amount of the investment that each portfolio manager has made in the Fidelity fund(s) that he or she manages; (iii) Fidelity’s compensation structure for portfolio managers, research analysts, and other key personnel, including its effects on fund profitability, the rationale for the compensation structure, and the extent to which current market conditions have affected retention and recruitment; (iv) the arrangements with and compensation paid to certain fund sub-advisers on behalf of the Fidelity funds and the treatment of such compensation within Fidelity’s fund profitability methodology; (v) the terms of the funds’ various management fee structures, including the basic group fee and the terms of Fidelity’s voluntary expense limitation agreements; (vi) Fidelity’s transfer agent fee, expense, and service structures for different funds and classes relative to competitive trends; (vii) the impact on fund profitability of recent industry trends, such as the growth in passively managed funds and outflows from actively managed equity funds; and (viii) explanations regarding the relative total expense ratios of certain funds and classes, total expense competitive trends and methodologies for total expense competitive comparisons, and actions that might be taken by Fidelity to reduce total expense ratios for certain classes. In addition, the Board considered its discussions with Fidelity regarding Fidelity’s efforts to maintain the continuous investment and shareholder services necessary for the funds during the current pandemic and economic circumstances.

Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board concluded that the advisory fee arrangements are fair and reasonable, and that each fund’s Advisory Contract should be renewed.

VIPFM-ANN-0221 1.843208.114

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