Fidelity VIP Investment Grade Bond Portfolio

[Pages:10]PORTFOLIO MANAGER Q&A | AS OF JUNE 30, 2023

Fidelity? VIP Investment Grade Bond Portfolio

Key Takeaways

? For the semiannual reporting period ending June 30, 2023, the fund's

share classes gained roughly 3%, outpacing, net of fees, the 2.09% advance of the benchmark, the Bloomberg U.S. Aggregate Bond Index, as well as the Lipper peer group average.

? Co-Manager Celso Munoz says U.S. investment-grade bonds

produced a solid, cross-market gain the past six months, despite rapidly shifting expectations for the trajectory of inflation and interest rates that created considerable volatility.

? Against this backdrop, Celso and Co-Manager Ford O'Neil say they

maintained their "gradual contrarian" approach to managing the fund.

? Their picks among investment-grade corporate bonds, particularly in

the financials sector, contributed to performance versus the benchmark.

? Non-benchmark exposure to collateralized loan obligations, which

outpaced the benchmark the past six months, also aided the fund's relative return.

? Duration positioning and an underweight in mortgage-backed

securities also boosted relative performance.

? Conversely, modest exposure to real estate investment trust

Brandywine Realty Trust detracted, as the office building owner struggled to increase occupancy in its properties.

? As of midyear, Ford and Celso believed bond valuations were

attractive, although near-term market conditions may be mixed, due to uncertainty about U.S. Federal Reserve monetary policy.

? They believed that fixed income is an attractive asset class for

investors at period end, given that bond yields are higher than they've been in years, but that currently tight spreads may limit the upside for bonds with credit risk.

Not FDIC Insured ? May Lose Value ? No Bank Guarantee

MARKET RECAP

U.S. taxable investment-grade bonds gained 2.09% for the six months ending June 30, 2023, according to the Bloomberg U.S. Aggregate Bond Index. The gain came amid continued month-tomonth volatility, as the backdrop remained clouded by the multitude of risk factors that challenged the economy in 2022, when persistently high inflation prompted the U.S. Federal Reserve to tighten monetary policy and market interest rates eclipsed their highest level in a decade. Since March 2022, the Fed has hiked its benchmark interest rate 10 times, by 5 percentage points, while also shrinking its massive asset portfolio. These actions pushed nominal and real (inflation-adjusted) U.S. bond yields to their highest level in more than a decade, while sending bond prices, which move inversely to yields, sharply downward though the first ten months of 2022. The new year began with optimism, with the Fed stepping down to raising rates in smaller increments and the market anticipating the end of the hiking cycle by mid-2023. Within this environment, the index gained 3.59% in the first four months of the year, only to fall in May (-1.09%) and June (-0.36%), as cooling but still-high inflation suggested the Fed may need to raise rates for longer than anticipated. For the full six months, longterm bonds outperformed shorter-term issues, while lower-quality (i.e., higheryielding) bonds topped higher-quality debt, and higher-risk assets, such as corporate bonds and asset-backed securities, outpaced U.S. Treasuries.

PORTFOLIO MANAGER Q&A | AS OF JUNE 30, 2023

Q&A

Celso Munoz Co-Manager

Fund Facts

Start Date: Size (in millions):

Ford O'Neil Co-Manager

December 05, 1988 $3,920.42

Investment Approach

? Fidelity? VIP Investment Grade Bond Portfolio is a core fixed-income strategy providing investors one-stop access to a diverse group of U.S. high-grade bond sectors.

? Benchmarked against the Bloomberg U.S. Aggregate Bond Index, the fund seeks to deliver competitive riskadjusted performance that is commensurate with investor expectations of a core bond fund.

? Utilizing a team-based investment process, the fund relies on experienced portfolio managers, research analysts and traders. We concentrate on areas where we believe we can repeatedly add value, including asset allocation, sector and security selection, yield-curve positioning and opportunistic trading.

? Robust governance and risk management, consisting of extensive quantitative modeling, formal and informal portfolio reviews, and proprietary tools, support the identification of both opportunities and risks.

An interview with Co-Portfolio Managers Celso Munoz and Ford O'Neil

Q: Celso, how did the fund perform for the six months ending June 30, 2023

C.M. The fund's Initial Class and Investor Class shares gained 2.78% and 2.70%, respectively, outpacing, net of fees, the 2.09% advance of the benchmark, the Bloomberg U.S. Aggregate Bond Index, as well as the Lipper peer group average.

Looking a bit longer term, the returns for the fund's share classes were essentially flat for the past 12 months, outperforming the -0.94% result of the benchmark and the similar result of the Lipper peer group average.

Q: What factors meaningfully influenced investment-grade bonds the past six months

C.M. U.S. investment-grade bonds produced a solid, crossmarket gain, despite rapidly shifting expectations for the trajectory of inflation and interest rates that created considerable volatility.

Market conditions were favorable in January, following the U.S. Federal Reserve's move in December to begin moderating the pace of its interest rate increases in response to slowing inflation, and in March, when stress in the U.S. and European banking systems and cooling economic growth raised hopes that the Fed would further slow, or even stop, its policy rate hikes to avoid a serious economic downturn. Although bond valuations fluctuated considerably in the first quarter, they ended the three months up 2.96%, per the benchmark, while yields, which move inversely to prices, declined.

The spring was rockier. After eking out a modest advance in April (+0.61%), the benchmark returned -1.09% in May, held back by worries about the U.S. debt ceiling and the prospect of a possible U.S. government default. Investors were still hopeful the Fed would be done with rate hikes by midyear, but those hopes were dashed in June (-0.36%), when persistently strong economic data suggested the central bank might need to keep raising rates, and keep them higher, for longer than previously anticipated.

Since March 2022, the Fed has hiked its benchmark interest rate 10 times, by 5 percentage points, while also shrinking its agency mortgage and Treasury portfolio. The latest increase

2 | For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.

PORTFOLIO MANAGER Q&A | AS OF JUNE 30, 2023

came in May, a third consecutive rise of 25 basis points, or 0.25 percentage points, following multiple hikes of 50 or 75 basis points in 2022. Against this backdrop, Ford and I, along with our team of traders and analysts, trusted our gradual contrarian investment approach as we made decisions about sector allocation and security selection.

Q: What notably contributed to the fund's performance versus the benchmark

C.M. Our overweight position in investment-grade corporate bonds, as well as non-benchmark exposure to collateralized loan obligations, each notably boosted the fund's relative result.

Security selection among corporates was particularly helpful. Here, our choices among industrials contributed most, led by picks in the consumer non-cyclical and communications groups. Individual standouts included companies we added prior to this period when we felt their valuations were attractive. Specifically, holdings in AB InBev, Warner Bros. Discovery and Time Warner Cable outpaced the benchmark the past six months.

We also added value with choices in the financial institutions segment, particularly big, "money center" banks, including JPMorgan Chase, Morgan Stanley, Bank of America and Wells Fargo. Among other factors, we liked that these banks had a strong capital position.

As for collateralized loan obligations, which are a type of asset-backed security, they, too, produced a better-thanbenchmark gain. CLOs are backed by floating-rate corporate loans rated below investment-grade and are divided in pieces, known as tranches, that dictate who will be paid out first when the underlying loan payments are made.

We were increasingly drawn to the segment for the past year or so, due in part to its sizable yield (spread) advantage over U.S. Treasuries. We emphasized CLOs that are welldiversified pools of loans with high credit ratings (AAA) that were thus first in line to be repaid in the event of default, and were issued by some of the most recognizable and timetested loan managers. CLOs have rallied strongly so far in 2023, thanks to growing investor demand and anemic newissue supply.

We believe our success with CLOs serves as an example of our distinct strengths, particularly relative to passively managed bond funds. Fidelity's experienced investment teams were able to identify a non-benchmark sector and choose securities within it with similar risk characteristics to certain bonds in the benchmark but with better return characteristics. As of midyear, we felt CLOs still had room to run, so we maintained our holdings there.

To a lesser extent, duration positioning boosted our relative result. We positioned the fund with a moderately shorter duration (less sensitivity to interest rates) than the

benchmark. This gave us a slight performance edge when interest rates and bond yields climbed. Please see the callout box at the end of this interview that describes recent changes to this positioning.

An underweight in mortgage-backed securities, which we generally viewed as expensive, with little upside relative to other segments of the market, also modestly helped.

Q: Ford, how about noteworthy detractors

F.O. Modest exposure to office real estate investment trust Brandywine Realty Trust hurt relative to the benchmark. The bonds struggled as the market grew increasingly concerned about prospects for office buildings. We maintained the holding as of June 30, based on valuation considerations, as well as actions the company has taken to improve its liquidity position.

Q: What's your market outlook as of June 30

C.M. The U.S. bond market likely will face near-term volatility as investors try to sort through the latest economic and inflation data and what they may mean for future Fed policy. Absent convincing data that points to a lasting economic slowdown, we believe the Fed could raise rates at least once more in the second half of 2023 and hold them steady for longer than investors are currently anticipating. In our view, though, the bond market already reflects one or two future hikes, so we think the worst of the rising-rate-related bond market sell-off is behind us.

F.O. Bond yields are higher now than they have been in several years, making fixed income an attractive asset class at the midpoint of 2023. But spreads between lower-risk and higher-risk bond segments have narrowed, and they could remain in a tight range for some time, given that the economy is in pretty good shape and corporations have prudently managed their balance sheets.

From a historical perspective, spreads are tight and don't have much room to narrow further. So, we recently took some risk off the table by reducing our exposure to corporate credit and shored up liquidity in the form of U.S. Treasuries, so we can take advantage of a potential future development that could produce more-compelling values in risk assets.

As always, we're focused on generating strong risk-adjusted performance over a full market cycle through our disciplined, risk-aware approach.

3 | For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.

PORTFOLIO MANAGER Q&A | AS OF JUNE 30, 2023

The co-managers on the fund's duration and yield-curve positioning:

F.O. "As of midyear, we made some notable changes to the fund's duration (interest rate) and yield-curve (how we spread investments across bonds with various durations) positioning. "For much of 2022, we positioned the fund with somewhat lower sensitivity to interest rates (shorter duration) than its benchmark and with an overweight in longer-term U.S. Treasury bonds. Our analysis and decades of experience suggested that it made sense to underweight interest rate risk, based on the assumption that rates and yields were more likely to move higher than lower. "We were correct, and duration positioning modestly boosted our relative result the past six months." C.M. "Recently, our view has shifted. "Eventually, the Fed will start to lower interest rates, either to shore up a weakening U.S. economy or because inflation has fallen to the central bank's 2% target. Our view is that, under this scenario, the yield curve will begin to steepen as yields on shortterm bonds fall along with rate cuts, while yields on long-term bonds stay put or rise. We saw some of that play out in late spring, and we expect it to continue. "Accordingly, we gradually and modestly extended the fund's duration to be more in line with that of the benchmark. We also sold some longer-term Treasuries, replacing them with intermediatematurity Treasuries that we view as attractively valued and with the potential to outperform if the yield curve steepens."

4 | For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.

PORTFOLIO MANAGER Q&A | AS OF JUNE 30, 2023

MARKET-SEGMENT DIVERSIFICATION

Market Segment

Portfolio Weight Index Weight

Relative Weight

Relative Change From Six Months

Ago

U.S. Treasury

34.70%

40.97%

-6.27%

5.55%

U.S. Agency

0.00%

1.15%

-1.15%

0.07%

Other Government Related (U.S. & Non-U.S.)

1.85%

3.96%

-2.11%

-0.48%

Corporate

32.86%

25.20%

7.66%

-3.98%

MBS Pass-Through

19.68%

26.52%

-6.84%

-0.06%

ABS

7.00%

0.46%

6.54%

0.12%

CMBS

6.13%

1.74%

4.39%

-0.30%

CMOs

1.27%

0.00%

1.27%

0.36%

Cash

1.16%

0.00%

1.16%

-3.44%

Net Other Assets

-4.65%

0.00%

-4.65%

2.16%

Futures, Options & Swaps

-1.00%

0.00%

-1.00%

0.00%

Net Other Assets can include fund receivables, fund payables, and offsets to other derivative positions, as well as certain assets that do not fall into any of the portfolio composition categories. Depending on the extent to which the fund invests in derivatives and the number of positions that are held for future settlement, Net Other Assets can be a negative number.

CREDIT-QUALITY DIVERSIFICATION

Credit Quality

Portfolio Weight

Index Weight

Relative Weight

Relative Change From Six Months

Ago

U.S. Government

55.56%

69.78%

-14.22%

6.59%

AAA

9.31%

3.65%

5.66%

1.58%

AA

3.29%

4.56%

-1.27%

-0.44%

A

11.92%

11.27%

0.65%

-0.20%

BBB

20.50%

10.73%

9.77%

-3.51%

BB

1.97%

0.00%

1.97%

-0.42%

B

0.07%

0.00%

0.07%

-0.06%

CCC & Below

0.02%

0.00%

0.02%

-0.01%

Short-Term Rated

0.00%

0.00%

0.00%

0.00%

Not Rated/Not Available

1.13%

0.01%

1.12%

-2.09%

Cash & Net Other Assets

-3.77%

0.00%

-3.77%

-1.44%

Net Other Assets can include fund receivables, fund payables, and offsets to other derivative positions, as well as certain assets that do not fall into any of the portfolio composition categories. Depending on the extent to which the fund invests in derivatives and the number of positions that are held for future settlement, Net Other Assets can be a negative number.

Credit ratings for a rated issuer or security are categorized using the highest credit rating among the following three Nationally Recognized Statistical Rating Organizations ("NRSRO"): Moody's Investors Service (Moody's); Standard & Poor's Rating Services (S&P); or Fitch, Inc. Securities that are not rated by any of these three NRSRO's (e.g. equity securities) are categorized as Not Rated. All U.S. government securities are included in the U.S. Government category. The table information is based on the combined investments of the fund and its pro-rata share of any investments in other Fidelity funds.

WEIGHTED AVERAGE MATURITY

DURATION

Six Months Ago

Years

8.8

8.4

This is a weighted average of all maturities held in the fund.

Years

Six Months Ago

6.3

6.0

5 | For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.

PORTFOLIO MANAGER Q&A | AS OF JUNE 30, 2023

PERFORMANCE SUMMARY

Variable annuity contracts are issued by insurance companies through separate accounts that are part of the insurer. The value of a variable annuity contract depends on the values of units of subaccounts of the separate account. Each subaccount purchases shares of a corresponding mutual fund. Subaccount investment performance is based on the performance of the mutual fund in which it invests, less insurance company charges made against the assets of the separate account. A subaccount is not a mutual fund. The information provided in this Performance Summary contains performance information for the fund, or class, and each variable subaccount, with comparisons over different time periods to the fund's relevant benchmarks ? including an appropriate index as well as a group of similar funds whose average returns are compiled and monitored by an independent mutual fund research company. Figures for more than one year assume a steady compounded rate of return and are not a class' year-by-year results, which fluctuated over the periods shown. Fund performance numbers are net of all underlying fund operating expenses, but do not include any insurance charges imposed by your insurance company's separate account. If fund performance information included the effect of these additional charges, the total returns would have been lower. The performance table also contains performance information for certain insurance company subaccounts that invest in the fund. Each variable subaccount's performance, as shown, is net of all fees and expenses, including those charges imposed by your insurance company. Seeing the returns over different time periods can help you assess the performance against relevant measurements and across multiple market environments. The performance information includes average annual total returns and cumulative total returns and is further explained in this section.* Investing in a variable annuity involves risk of loss ? investment returns, contract value, and, for variable income annuities, payment amounts are not guaranteed and will fluctuate. Withdrawals of taxable amounts from an annuity are subject to ordinary income tax, and, if taken before age 59 1/2, may be subject to a 10% IRS penalty. Current performance may be higher or lower than the performance data quoted below. An investor's shares, when redeemed, may be worth more or less than their original cost. For month-end performance figures, please visit fidelity. com/annuityperformance or call Fidelity. The performance data featured represents past performance, which is no guarantee of future results. Performance and disclosure information continued on next page.

6 | For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.

PORTFOLIO MANAGER Q&A | AS OF JUNE 30, 2023

PERFORMANCE SUMMARY (continued):

Fiscal periods ending June 30, 2023

Cumulative

Annualized

Total Returns for the Fund

6

Month

YTD

1 Year

3 Year

5 Year

10 Year/ LOF1

VIP Investment Grade Bond Portfolio - Initial Class Gross Expense Ratio: 0.40%2

VIP Investment Grade Bond Portfolio - Investor Class Gross Expense Ratio: 0.43%2

Bloomberg US Aggregate Bond Index

2.78% 2.70% 2.09%

2.78% 2.70% 2.09%

0.04% 0.02% -0.94%

-2.85% -2.89% -3.96%

1.48% 1.45% 0.77%

2.07% 2.04% 1.52%

Lipper VIP Core Bond Funds Classification

2.12%

2.12%

-1.05%

-3.81%

0.77%

1.46%

Morningstar Insurance Intermediate Core Bond

2.24%

2.24%

1 Life of Fund (LOF) if performance is less than 10 years. Fund inception date: 12/05/1988.

-1.07%

-3.90%

0.68%

1.40%

2 This expense ratio is from the prospectus in effect as of the date shown above and generally is based on amounts incurred during that fiscal year, or estimated amounts for the current fiscal year in the case of a newly launched fund. It does not include any fee waivers or reimbursements, which would be reflected in the fund's net expense ratio.

Fiscal periods ending June 30, 2023

Total Returns for the Variable Subaccount** Fidelity Retirement Reserves A

Annualized

New York Only: 10 Year/Life

of Subaccount 1.26%

Cumulative

6 Month

2.37%

YTD 2.37%

1 Year

-0.76%

Annualized

3 Year

-3.61%

5 Year

0.69%

10 Year/Life of

Subaccount

1.26%

Fidelity Income Advantage B

1.05%

2.26%

2.26%

-0.96%

-3.80%

0.48%

1.05%

Fidelity Personal Retirement Annuity C (for contracts purchased prior to 1/1/09 and on or after 9/7/10)

1.78%

2.57%

2.57%

-0.23%

-3.11%

1.21%

1.78%

Fidelity Personal Retirement Annuity C (for contracts purchased between 1/1/09 and 9/6/10)

1.78%

2.57%

2.57%

-0.23%

-3.11%

1.21%

1.78%

Fidelity Personal Retirement Annuity C (for contracts purchased on or after 9/7/10 with an initial purchase payment of $1M+)

1.93%

2.65%

2.65%

-0.08%

-2.97%

1.36%

1.93%

Fidelity Retirement Reserves - Subaccount Inception: December 30, 1988; New York Only Inception: June 03, 1992. Fidelity Income Advantage Subaccount Inception: December 30, 1988; New York Only Inception: June 03, 1992. Fidelity Personal Retirement Annuity - Subaccount Inception: August 15, 2005; New York Only Inception: October 28, 2005.

Fidelity Retirement Reserves' underlying fund options are Initial Class fund offerings. Fidelity Income Advantage's underlying fund options are Initial Class fund offerings. Fidelity Personal Retirement Annuity's underlying fund options are Investor Class fund offerings.

A In NY, Retirement Reserves B In NY, Income Advantage C In NY, Personal Retirement Annuity

* Total returns are historical and include changes in share price (for the fund) and unit price (for the variable subaccount) and reinvestment of dividends and capital gains, if any.

** Returns for Fidelity Retirement Reserves include the 0.80% annual annuity charge. For Fidelity Retirement Reserves contracts, returns do not reflect the annual $30 maintenance fee which applies to contracts where purchase payments less any withdrawals are less than $25,000. Returns for Fidelity Income Advantage include the 1.00% annual annuity charge. Returns for Fidelity Personal Retirement Annuity ("FPRA") include the 0.25% annual annuity charge for contracts purchased prior to 1/1/2009, and on or after 9/7/2010. For FPRA contracts purchased between 1/1/2009 and 9/6/2010, returns include a 0.35% annual annuity charge prior to 9/7/2010 and 0.25% thereafter. For FPRA contracts purchased on or after 9/7/2010 with an initial purchase payment of $1,000,000 or more, returns include a 0.10% annual annuity charge. Life of subaccount returns are from the subaccount inception, the date the portfolio was first available in the insurance company's variable product.

Please see the last page(s) of this Q&A document for most-recent calendar-quarter performance.

7 | For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.

PORTFOLIO MANAGER Q&A | AS OF JUNE 30, 2023

Definitions and Important Information

Information provided in, and presentation of, this document are for informational and educational purposes only and are not a recommendation to take any particular action, or any action at all, nor an offer or solicitation to buy or sell any securities or services presented. It is not investment advice. Fidelity does not provide legal or tax advice.

Before making any investment decisions, you should consult with your own professional advisers and take into account all of the particular facts and circumstances of your individual situation. Fidelity and its representatives may have a conflict of interest in the products or services mentioned in these materials because they have a financial interest in them, and receive compensation, directly or indirectly, in connection with the management, distribution, and/or servicing of these products or services, including Fidelity funds, certain third-party funds and products, and certain investment services.

the fund's primary benchmark (index) unless a secondary benchmark is provided to assess performance.

VIP refers to Variable Insurance Products

INDICES It is not possible to invest directly in an index. All indices represented are unmanaged. All indices include reinvestment of dividends and interest income unless otherwise noted.

Bloomberg U.S. Aggregate Bond Index is a broad-based flagship benchmark that measures the investment grade, US dollardenominated, fixed-rate taxable bond market. The index includes Treasuries, government-related and corporate securities, mortgageback securities (agency fixed-rate pass-throughs), asset-backed securities and collateralized mortgage-backed securities (agency and non-agency).

Fidelity Income Advantage (policy form nos. FVIA-92100, et al. and FVIA-99100, et al.), Fidelity Retirement Reserves (policy form no. NRR-96100, et al.), Fidelity Personal Retirement Annuity (policy form no. DVA-2005, et al.), Fidelity Freedom Lifetime Income (policy form nos. FFLI-Q-2005, et al. and FFLI-NQ-2005, et al.), and Fidelity Growth and Guaranteed Income (policy form no. DVA-GWB2007, et al.) are issued by Fidelity Investments Life Insurance Company, 100 Salem Street, Smithfield, RI 02917, and for NY residents, Income Advantage (policy form nos. EFVIA-92100, et al. and EFVIA-99100, et al.), Retirement Reserves (policy form no. EVA-91100, et al.), Personal Retirement Annuity (policy form no. EDVA-2005, et al.), Fidelity Freedom Lifetime Income (policy form nos. EFLI-Q-2005, et al. and EFLI-NQ-2005, et al.), and Growth and Guaranteed Income (policy form no. EDVA-GWB-2007, et al.) are issued by Empire Fidelity Investments Life Insurance Company, New York, NY. Annuities are distributed by Fidelity Brokerage Services (Member NYSE, SIPC) and Fidelity Insurance Agency, Inc.

DURATION Duration is a measure of a security's price sensitivity to changes in interest rates. Duration differs from maturity in that it considers a security's interest payments in addition to the amount of time until the security reaches maturity, and also takes into account certain maturity shortening features (e.g., demand features, interest rate resets, and call options) when applicable. Securities with longer durations generally tend to be more sensitive to interest rate changes than securities with shorter durations. A fund with a longer average duration generally can be expected to be more sensitive to interest rate changes than a fund with a shorter average duration.

FUND RISKS Fixed income investments entail interest rate risk (as interest rates rise bond prices usually fall), the risk of issuer default, issuer credit risk and inflation risk. Foreign securities are subject to interest rate, currency exchange rate, economic, and political risks. Lower-quality bonds can be more volatile and have greater risk of default than higher-quality bonds. Leverage can increase market exposure and magnify investment risk.

LIPPER INFORMATION Lipper Averages are averages of the performance of all mutual funds within their respective investment classification category. The number of funds in each category periodically changes. Lipper, a Refinitiv company, is a nationally recognized organization that ranks the performance of mutual funds.

MARKET-SEGMENT WEIGHTS Market-segment weights illustrate examples of sectors or industries in which the fund may invest, and may not be representative of the fund's current or future investments. They should not be construed or used as a recommendation for any sector or industry.

MORNINGSTAR INFORMATION ? 2023 Morningstar, Inc. All rights reserved. The Morningstar information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or redistributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Fidelity does not review the Morningstar data and, for mutual fund performance, you should check the fund's current prospectus for the most up-to-date information concerning applicable loads, fees and expenses.

WEIGHTED AVERAGE MATURITY Weighted average maturity (WAM) can be used as a measure of sensitivity to interest rate changes and market changes. Generally, the longer the maturity, the greater the sensitivity to such changes. WAM is based on the dollar-weighted average length of time until principal payments must be paid. Depending on the types of securities held in a fund, certain maturity shortening devices (e.g., demand features, interest rate resets, and call options) may be taken into account when calculating the WAM.

IMPORTANT FUND INFORMATION Relative positioning data presented in this commentary is based on

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