Fidelity VIP Balanced Portfolio

[Pages:9]QUARTERLY FUND REVIEW | AS OF MARCH 31, 2023

Fidelity? VIP Balanced Portfolio

Investment Approach

? Fidelity? VIP Balanced Portfolio invests across a mix of stocks and bonds ? with a 60%/40% neutral allocation ? in seeking income and capital growth.

? The fund is managed by multiple portfolio managers, with each member dedicated to a particular asset class or market segment, plus a lead manager responsible for determining the appropriate asset allocation, general team oversight, cash management and risk monitoring.

? The equity subportfolio is largely sector-neutral and run by a team of sector-focused managers who look to add value through active stock selection.

? The investment-grade bond strategy seeks outperformance through sector, security and yieldcurve positioning. The fund also has dedicated high-yield bond exposure (out-of-benchmark).

? Focused sector and asset class expertise, supported by our deep research infrastructure, is combined with disciplined portfolio construction to provide investment-process consistency in seeking to deliver attractive risk-adjusted returns.

PERFORMANCE SUMMARY

VIP Balanced Portfolio - Initial Class Gross Expense Ratio: 0.46%2

Cumulative

3 Month

YTD

1 Year

Annualized

3 Year

5 Year

10 Year/ LOF1

7.51% 7.51% -7.30% 13.89% 8.76% 9.05%

S&P 500 Index

Fidelity Balanced 60/40 Composite Index Morningstar Insurance Allocation--50% to 70% Equity % Rank in Morningstar Category (1% = Best)

# of Funds in Morningstar Category

7.50% 5.67% 4.59%

---

7.50% 5.67% 4.59%

---

-7.73% 18.60% 11.19% 12.24% -6.25% 9.90% 7.34% 8.03%

-6.63% 8.44% 4.70% 6.16%

75%

6%

3%

4%

743

678

651

480

1 Life of Fund (LOF) if performance is less than 10 years. Fund inception date: 01/03/1995. 2 This expense ratio is from the most recent prospectus and generally is based on amounts incurred during the

most recent 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.

Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate; therefore, you may have a gain or loss when you sell your shares. Current performance may be higher or lower than the performance stated. Performance shown is that of the fund's Initial Class shares. You may own another share class of the fund with a different expense structure and, thus, have different returns. To learn more or to obtain the most recent month-end or other share-class performance, visit institutional., or contact Fidelity. Total returns are historical and include changes in share price and the automatic reinvestment of dividends and capital gains, but do not include any charges to the separate account level, such as policy charges and related insurance fees. If total returns had included these charges, returns would have been lower.

For definitions and other important information, please see the Definitions and Important Information section of this Fund Review.

For use with broker-dealer registered representatives only. This material does not discuss charges at the separate account level such as policy charges and related insurance fees, and is not appropriate for distribution to the public as sales material. If total returns had included the effects of these charges, returns would have been lower.

FUND INFORMATION

Manager(s): Team Managed

Start Date: January 03, 1995

Size (in millions): $6,195.69

Morningstar Category: Insurance Allocation--50% to 70% Equity

Stock markets, especially foreign markets, are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments. 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.

This portfolio is available for investment only by the separate accounts of insurance companies. Annuities are long term investments. Access to this VIP portfolio may be limited by tax penalties and surrender charges, and income taxes are due upon withdrawal of funds. Taxable amounts withdrawn from variable insurance contracts prior to age 59 1/2 may be subject to a 10% IRS penalty tax as well as income tax.

Not FDIC Insured ? May Lose Value ? No Bank Guarantee

QUARTERLY FUND REVIEW: Fidelity? VIP Balanced Portfolio | AS OF MARCH 31, 2023

Market Review

U.S. equities gained 7.50% in the first quarter, according to the S&P 500? index, rising even as financial markets digested multiple crosscurrents. These included stress in the U.S. and European banking systems, signs of consistent pressure on core inflation, falling energy prices, and a Federal Reserve intent on pulling off a delicate balancing act of containing inflation and cooling economic growth while also weighing risk to the financial system. The encouraging quarterly upturn followed a year in which the S&P 500? returned -18.11% amid a multitude of risk factors that challenged the global economy. However, asset prices around the world staged a broad rally in the fourth quarter of 2022, as slowing inflation raised hopes at the end of a tumultuous year.

Since March 2022, the Fed has hiked its benchmark interest rate nine times, by 4.75 percentage points, while also shrinking its massive asset portfolio. But following the emergence of a banking crisis, the Fed was forced to weigh risk to the financial system if it continued to hike aggressively. Indeed, by mid-March Treasury yields were plunging, and the Fed backed off with a hike of 25 basis points (0.25%) on March 22, rather than the 50-basis-point move that was all but certain just a few days before. The announcement came along with a signal that banking-related turmoil might end the central bank's rate-hiking campaign sooner than seemed likely.

Against this dynamic backdrop, the S&P 500? rose 6.28% in January, but stocks lost momentum in February (-2.44%) amid higher-thanexpected inflation and strong jobs data. Investors took these as signs that the economy continued to run hot, even after a year of historic policy adjustment by the Fed. The index gained 3.67% in March, boosted by data that pointed to an economy slowing under the weight of higher inflation and higher interest rates, but still supported by plentiful jobs and spending on services.

By sector, three growth-oriented groups stood out: Information technology (+24%), communication services (+21%) and consumer discretionary (+17%). Tech rose as index-level earnings fell, with many investors shunning smaller-caps in favor of the perceived safety of some of the sector's biggest names. In sharp contrast, energy returned roughly -5%. The defensive health care (-4%), utilities (-3%) and consumer staples (+1%) sectors also notably lagged. Financials returned about -3% for the three months, hampered mostly by banks (-12%).

U.S. taxable investment-grade bonds gained 2.96% the past three months, as measured by the Bloomberg U.S. Aggregate Bond Index. The gain followed a year in which the index returned -13.01% ? its worst-ever calendar-year result. In the first quarter, we saw a continuation of the rally in risk assets that started the previous quarter, when slowing inflation raised market hopes for easier monetary policy and the Fed proceeded to communicate its intent to moderate the pace of its rate hikes.

Bond valuations fluctuated considerably but ended up posting a widespread gain for the quarter, as downward pressure on yields helped boost prices. After tightening in January, credit spreads widened in February and March amid heightened volatility. All major segments of the market advanced for the three months, with lower-quality, longer-term bonds receiving the strongest bid.

Yield-advantaged, investment-grade corporate bonds (+3.50%) outpaced U.S. Treasuries (+3.01%). Within corporates, the debt of industrial and utility names outperformed. whereas financial institutions underperformed. Meanwhile, securitized segments ? namely mortgage-backed securities (+2.53%), commercial mortgage-backed securities (+1.81%) and asset-backed securities (+1.86%) such as credit card, auto and home equity debt ? showed the impact of rising interest rates and notably underperformed. Government-related debt (+2.88%), including government-agency issues (+2.09%), posted a more-muted gain.

U.S. TREASURY YIELD CURVE

6

5

4

Percent (%)

3

2

1

0

02

5

10 Years

12/30/2022 Source: Bloomberg

03/31/2023

THREE-MONTH EQUITY SECTOR RETURNS

Sector Information Technology Communication Services Consumer Discretionary Materials Industrials Real Estate Consumer Staples Utilities Health Care Energy Financials Source: Standard & Poor's

Total Return 21.82% 20.50% 16.13% 4.29% 3.47% 1.95% 0.83% -3.24% -4.31% -4.67% -5.56%

30

2 | For definitions and other important information, please see Definitions and Important Information section of this Fund Review.

QUARTERLY FUND REVIEW: Fidelity? VIP Balanced Portfolio | AS OF MARCH 31, 2023

Performance Review

For the three months ending March 31, 2023, the fund's Initial Class shares gained 7.51%, topping the 5.67% advance of the Fidelity Balanced 60/40 Composite IndexSM.

Within the portfolio, equities represented 63% of assets, on average, during the first quarter. This was less than the prior quarter but higher than the 60% average stock allocation in the Composite index. Meanwhile, investment-grade bonds comprised about 37% of the fund's assets, on average, versus the average Composite index weighting of 40% in Q1. The remainder of the portfolio was comprised of a modest cash position. The fund did not have any high-yield bond exposure this period.

Both stocks and investment-grade bonds delivered positive returns in the first three months of 2023, with the former strongly outperforming the latter. As a result, the fund's overweighting in stocks and underweighting in bonds proved modestly beneficial versus the Composite index. However, favorable security selection in the equity subportfolio was the primary driver of the fund's favorable relative result the past three months.

The fund's equity investments gained 10.35% the past three months, outpacing the 7.50% advance of the benchmark S&P 500? index. Security selection in the health care and information technology sectors contributed most during the quarter. In all, active management added value in nine of 11 sectors this period.

Among individual holdings, overweighting Meta Platforms contributed the most to performance versus the benchmark. The stock gained 76% for the quarter, as the parent of Facebook and Instagram in early February reported Q4 revenue and a business outlook that both were better than Wall Street had anticipated, an aggressive plan to buy its own stock, and a new round of cuts to its spending plan. Calling 2023 the "year of efficiency," management noted improved conditions for its various businesses, a welcome relief after a rough 2022 that included a pullback in ad spending, major cost-cutting initiatives, and struggles with the company's transition to focus on virtual reality and the online digital realm it refers to as the metaverse.

An outsized stake in Nvidia also proved beneficial. The shares gained 90% in the first quarter, as the maker of graphics chips used in video games, cloud computing and artificial intelligence reported

better-than-expected financial results for the three months ending January 29. Both revenue and earnings declined, but not as much as consensus estimates. Looking ahead, management forecast a recovery in its video-game business and suggested it is poised to profit from so-called generative artificial intelligence tools, a new kind of AI that can create a range of humanlike content. Nvidia said it plans to launch a new cloud-services business to tap into growing enthusiasm for AI.

On the other hand, a larger-than-index position in Bank of America (-13%) was among the fund's largest relative detractors this past quarter. In mid-January, the bank reported better-than-expected Q4 2022 earnings, helped by increased interest income from notably higher rates. But that support gave way by early February, when the market for mortgages and other consumer loans showed increasing weakness in the rising-rate environment. Bank of America's position as a leading consumer lender meant it stood to be affected more than most. In March, the stock suffered a steeper decline, weighed down by worries about the banking industry following the collapse of Silicon Valley Bank on March 10. However, Bank of America's status as a "GSIB" ? global systemically important bank ? helped ensure that its stock declined less than many other banking names amid the drawdown.

Turning to investment-grade bonds, the central fund rose 3.28%, outpacing the 2.96% increase in the Bloomberg U.S. Aggregate Bond Index. Overall, it was a favorable quarter for high-quality bonds, with U.S. Treasury yields falling sharply in March. However, amid the failure of two U.S. banks and the rescue of Credit Suisse by UBS, there were elevated concerns among investors about regional banks. The Fed lifted its key policy rate twice by 0.25%.

Versus the Bloomberg index, the investment-grade bond central fund's underweight in mortgage-backed securities added value in Q1. However, within corporates, exposure to financial institutions detracted, as regional banks and credit-card issuers underperformed.

Security selection was a positive for the central fund the past three months, as top contributor Credit Suisse benefited from the UBS acquisition. The debt of communications firms Warner Bros Discovery and Charter Communications also provided a lift.

Yield curve positioning was neutral for the quarter. The fund's overall duration was slightly short than that of the benchmark, and bulleted around the intermediate maturities.

LARGEST EQUITY CONTRIBUTORS VS. BENCHMARK

Holding

Market Segment

Average Relative Relative Contribution Weight (basis points)*

Meta Platforms, Inc. Class Communication

A

Services

0.59%

30

NVIDIA Corp.

Information Technology

0.48%

29

Johnson & Johnson

Health Care

-1.27%

28

Pfizer, Inc.

Health Care

-0.73%

25

Charles Schwab Corp. Financials

-0.34%

18

* 1 basis point = 0.01%.

LARGEST EQUITY DETRACTORS VS. BENCHMARK

Holding

Market Segment

Average Relative Relative Contribution Weight (basis points)*

The Travelers Companies, Inc.

Financials

0.84%

-15

Bank of America Corp. Financials

0.74%

-13

Apple, Inc.

Information Technology

-0.65%

-13

UnitedHealth Group, Inc. Health Care

0.56%

-12

Wells Fargo & Co.

Financials

0.76%

-12

* 1 basis point = 0.01%.

3 | For definitions and other important information, please see Definitions and Important Information section of this Fund Review.

QUARTERLY FUND REVIEW: Fidelity? VIP Balanced Portfolio | AS OF MARCH 31, 2023

Outlook and Positioning

With inflation a more persistent threat than the Fed originally anticipated, we believe it is important to invest in companies with the pricing power to offset increases in labor and materials costs, and thus maintain profit margins. Broadly speaking, we anticipate that high-quality companies should perform best in a slowing economic environment, so that's where our focus is.

Over the first three months of 2023, we made minor adjustments to the equity subportfolio's sector weightings but continued to pursue our essentially sector-neutral approach to investing, which allows meaningful overweights and underweights at the industry and individual stock levels.

We remain confident in the equity sub's investment process, in which shareholders are supported by a team of sector-focused comanagers charged with adding value through stock selection, and a group leader who is responsible for general team oversight, asset allocation, cash management and risk monitoring.

The equity subportfolio's three largest individual overweightings as of March 31 were Boston Scientific, AmerisourceBergen and Fortive. Outside of the S&P 500?, the fund's largest equity positions were AstraZeneca, Royalty Pharma and Taiwan Semiconductor Manufacturing.

In contrast, Apple, Microsoft and Berkshire Hathaway accounted for the equity sleeve's three biggest underweights at quarter-end, as we felt there were more attractively valued opportunities elsewhere. Still, Microsoft and Apple were the two largest positions in the equity sleeve on March 31.

Turning to investment-grade bonds, we feel good about the central fund's performance opportunity, especially when it comes to its exposure to U.S. Treasuries, as yields have risen and the Fed has gotten deeper into its rate-hiking cycle. Corporate credit, however, strikes us as less attractive these days, given tight spreads that appear poised to widen. If credit conditions weaken excessively, it could make a hard economic landing more likely and bode poorly for corporate credit while boosting government bonds.

Turning to U.S. Treasuries, the central fund has a large underweight to the shorter maturities as of March 31, with a corresponding focus on intermediate and long maturities.

Additionally, we remained overweight corporate bonds ? in particular, intermediate maturities. Should we encounter further slowing in the economy, we feel there could be some attractive bargains within this segment of the bond market. More specifically, the central fund is overweight financials. We especially favor large money-center banks, given their attractive balance sheets and attractive valuations following the two March bank failures.

Additionally, the central fund maintains its underweight positioning among mortgage-backed securities (MBS) in favor of what we consider better opportunities elsewhere.

Overall, the fund's yield curve is increasingly bulleted around the intermediate maturities.

EQUITY MARKET-SEGMENT DIVERSIFICATION

Market Segment Information Technology Health Care Financials Consumer Discretionary Industrials Communication Services Consumer Staples Energy Utilities Materials Real Estate Multi Sector Other * % of equity assets

Portfolio Weight*

24.49% 14.40% 13.00%

9.61% 8.86%

8.82% 7.53% 4.85% 2.75% 2.73% 2.43% 0.52% 0.01%

Index Weight

Relative Weight

Relative Change From Prior Quarter

26.08% 14.20% 12.91%

-1.59% 0.20% 0.09%

-0.62% 0.32% 0.51%

10.13% 8.66%

-0.52% 0.20%

-0.33% 0.01%

8.11% 7.23% 4.61% 2.86% 2.64% 2.56%

-0.01%

0.71% 0.30% 0.24% -0.11% 0.09% -0.13% 0.52% 0.00%

0.21% 0.19% 0.16% -0.09% 0.02% 0.04% -0.43% 0.01%

FIXED-INCOME MARKET-SEGMENT DIVERSIFICATION

Market Segment U.S. Treasury U.S. Agency Mortgage PassThrough Asset-Backed Securities CMBS CMOs Investment-Grade Credit Municipal Bonds High-Yield Credit Non-U.S. Developed Emerging Markets Other Debt Assets * % of debt assets

Portfolio Weight* 43.11%

0.00%

20.19%

5.19% 3.56% 0.03%

20.07% 0.46% 1.74% 4.57% 1.07% 0.01%

Index Weight

40.92%

1.12%

Relative Weight

Relative Change From Prior Quarter

2.19%

2.64%

-1.12% -0.12%

27.01% -6.82%

1.21%

0.44% 1.77% 0.00%

4.75% 1.79% 0.03%

-0.57% -0.34% -0.01%

20.55% 0.61% 0.38% 5.87% 1.31% 0.02%

-0.48% -0.15% 1.36% -1.30% -0.24% -0.01%

-1.30% -0.16% -0.67% -0.54% -0.15% 0.01%

4 | For definitions and other important information, please see Definitions and Important Information section of this Fund Review.

QUARTERLY FUND REVIEW: Fidelity? VIP Balanced Portfolio | AS OF MARCH 31, 2023

LARGEST EQUITY OVERWEIGHTS

Holding Microsoft Corp. Boston Scientific Corp. Exxon Mobil Corp. AmerisourceBergen Corp. Meta Platforms, Inc. Class A

Market Segment Information Technology Health Care Energy Health Care Communication Services

Relative Weight

1.09% 0.91% 0.83% 0.65% 0.64%

LARGEST EQUITY UNDERWEIGHTS

Holding

Berkshire Hathaway, Inc. Class A Johnson & Johnson Apple, Inc. MasterCard, Inc. Class A Chevron Corp.

Market Segment

Financials

Health Care Information Technology Financials Energy

Relative Weight

-1.27%

-1.18% -1.16% -0.89% -0.85%

10 LARGEST HOLDINGS

Holding Microsoft Corp. Apple, Inc. , Inc. U.S. Treasury Notes 3.875% 11/30/29 NVIDIA Corp. Alphabet, Inc. Class A Exxon Mobil Corp. Meta Platforms, Inc. Class A U.S. Treasury Notes 3.875% 12/31/29 UnitedHealth Group, Inc. 10 Largest Holdings as a % of Net Assets Total Number of Holdings

Market Segment Information Technology Information Technology Consumer Discretionary Bonds Information Technology Communication Services Energy Communication Services Bonds Health Care

19.70%

2121

The 10 largest holdings are as of the end of the reporting period, and may not be representative of the fund's current or future investments. Holdings do not include money market investments.

ASSET ALLOCATION

Asset Class

Portfolio Weight

Strategic Allocation

Relative Weight

Relative Change From Prior Quarter

Domestic Equities

58.53% 60.00% -1.47% -1.29%

International Equities

3.89%

--

3.89% -0.01%

Developed Markets

3.13%

--

--

--

Emerging Markets

0.76%

--

--

--

Tax-Advantaged Domiciles

0.00%

--

--

--

Bonds

37.47% 40.00% -2.53% 2.86%

Cash & Net Other Assets 0.11%

--

0.11% -1.56%

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

"Tax-Advantaged Domiciles" represent countries whose tax policies may be favorable for company incorporation.

3-YEAR RISK/RETURN STATISTICS

Beta Standard Deviation Sharpe Ratio Tracking Error Information Ratio R-Squared

Portfolio 1.13

15.19% 0.85 2.62% 1.52 0.98

Index 1.00 13.30% 0.67

----

5 | For definitions and other important information, please see Definitions and Important Information section of this Fund Review.

QUARTERLY FUND REVIEW: Fidelity? VIP Balanced Portfolio | AS OF MARCH 31, 2023

EQUITY CHARACTERISTICS

Portfolio

Valuation

Price/Earnings Trailing

23.1x

Price/Earnings (IBES 1-Year Forecast)

18.7x

Price/Book

3.8x

Price/Cash Flow

15.1x

Return on Equity (5-Year Trailing)

14.2%

Growth

Sales/Share Growth 1-Year (Trailing)

14.9%

Earnings/Share Growth 1-Year (Trailing)

-4.4%

Earnings/Share Growth 1-Year (IBES Forecast)

11.9%

Earnings/Share Growth 5-Year (Trailing)

17.3%

Size

Weighted Average Market Cap ($ Billions) 528.5

Weighted Median Market Cap ($ Billions) 143.3

Median Market Cap ($ Billions)

36.7

Index

21.5x 18.4x 4.1x 15.1x 17.8%

13.3% -11.7% 4.8% 18.3%

537.8 166.6 30.3

FIXED-INCOME CHARACTERISTICS

Duration 30-Day SEC Yield 30-Day SEC Restated Yield Net Asset Value

Portfolio 5.48 years

--$20.02

Index 6.22 years

----

CREDIT-QUALITY DIVERSIFICATION

Credit Quality

Portfolio Weight

Index Weight

Relative Weight

Relative Change From Prior Quarter

U.S. Government

63.30% 70.04% -6.74%

3.84%

AAA

6.06%

3.63%

2.43%

1.33%

AA

2.96%

4.57%

-1.61%

-0.35%

A

9.95%

11.14% -1.19%

0.18%

BBB

16.87% 10.60%

6.27%

-2.58%

BB

0.61%

0.00%

0.61%

-0.38%

B

0.01%

0.00%

0.01%

-0.01%

CCC & Below

0.02%

0.00%

0.02%

0.00%

Short-Term Rated

0.00%

0.00%

0.00%

0.00%

Not Rated/Not Available

0.22%

0.02%

0.20%

-2.03%

Cash & Net Other Assets

0.00%

0.00%

0.00%

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 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 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 debt investments of the fund and its pro-rata share of any debt investments in other Fidelity funds.

6 | For definitions and other important information, please see Definitions and Important Information section of this Fund Review.

QUARTERLY FUND REVIEW: Fidelity? VIP Balanced Portfolio | AS OF MARCH 31, 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.

EQUITY CHARACTERISTICS Earnings-Per-Share Growth Trailing measures the growth in reported earnings per share over trailing one- and five-year periods.

Earnings-Per-Share Growth (IBES 1-Year Forecast) measures the growth in reported earnings per share as estimated by Wall Street analysts.

Median Market Cap identifies the median market capitalization of the portfolio or benchmark as determined by the underlying security market caps.

Price-to-Book (P/B) Ratio is the ratio of a company's current share price to reported accumulated profits and capital.

Price/Cash Flow is the ratio of a company's current share price to its trailing 12-months cash flow per share.

Price-to-Earnings (P/E) Ratio (IBES 1-Year Forecast) is the ratio of a company's current share price to Wall Street analysts' estimates of earnings.

Price-to-Earnings (P/E) Ratio Trailing is the ratio of a company's current share price to its trailing 12-months earnings per share.

Return on Equity (ROE) 5-Year Trailing is the ratio of a company's last five years historical profitability to its shareholders' equity. Preferred stock is included as part of each company's net worth.

Sales-Per-Share Growth measures the growth in reported sales over the specified past time period.

Weighted Average Market Cap identifies the market capitalization of the average equity holding as determined by the dollars invested in the portfolio or benchmark.

Weighted Median Market Cap identifies the market capitalization of the median equity holding as determined by the dollars invested in the portfolio or benchmark.

FIXED INCOME CHARACTERISTICS 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.

30-day SEC Yield is a standard yield calculation developed by the Securities and Exchange Commission for bond funds. The yield is calculated by dividing the net investment income per share earned during the 30-day period by the maximum offering price per share on the last day of the period. The yield figure reflects the dividends and interest earned during the 30-day period, after the deduction of the fund's expenses. It is sometimes referred to as "SEC 30-Day Yield" or "standardized yield".

30-Day SEC Restated Yield is the fund's 30-day yield without applicable waivers or reimbursements, stated as of month-end.

Net Asset Value is the dollar value of one share of a fund; determined by taking the total assets of a fund, subtracting the total liabilities, and dividing by the total number of shares outstanding.

IMPORTANT FUND INFORMATION Relative positioning data presented in this commentary is based on the fund's primary benchmark (index) unless a secondary benchmark is provided to assess performance.

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.

Fidelity Balanced 60/40 Composite Index is a customized blend of unmanaged indexes, weighted as follows: S&P 500 Index - 60%; and Bloomberg U.S. Aggregate Bond Index - 40%.

S&P 500 Index is a market capitalization-weighted index of 500 common stocks chosen for market size, liquidity, and industry group representation to represent U.S. equity performance.

Bloomberg U.S. Aggregate Bond Index is a broad-based, marketvalue-weighted benchmark that measures the performance of the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market. Sectors in the index include Treasuries, governmentrelated and corporate securities, MBS (agency fixed-rate and hybrid ARM pass-throughs), ABS, and CMBS.

7 |

QUARTERLY FUND REVIEW: Fidelity? VIP Balanced Portfolio | AS OF MARCH 31, 2023

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.

RANKING 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.

% Rank in Morningstar Category is the fund's total-return percentile rank relative to all funds that have the same Morningstar Category. The highest (or most favorable) percentile rank is 1 and the lowest (or least favorable) percentile rank is 100. The topperforming fund in a category will always receive a rank of 1%. % Rank in Morningstar Category is based on total returns which include reinvested dividends and capital gains, if any, and exclude sales charges. Multiple share classes of a fund have a common portfolio but impose different expense structures.

RELATIVE WEIGHTS Relative weights represents the % of fund assets in a particular market segment, asset class or credit quality relative to the benchmark. A positive number represents an overweight, and a negative number is an underweight. The fund's benchmark is listed immediately under the fund name in the Performance Summary.

3-YEAR RISK/RETURN STATISTICS Beta is a measure of the volatility of a fund relative to its benchmark index. A beta greater (less) than 1 is more (less) volatile than the index.

Information Ratio measures a fund's active return (fund's average monthly return minus the benchmark's average monthly return) in relation to the volatility of its active returns.

R-Squared measures how a fund's performance correlates with a benchmark index's performance and shows what portion of it can be explained by the performance of the overall market/index. RSquared ranges from 0, meaning no correlation, to 1, meaning perfect correlation. An R-Squared value of less than 0.5 indicates that annualized alpha and beta are not reliable performance statistics.

Sharpe Ratio is a measure of historical risk-adjusted performance. It is calculated by dividing the fund's excess returns (the fund's average annual return for the period minus the 3-month "risk free" return rate) and dividing it by the standard deviation of the fund's returns. The higher the ratio, the better the fund's return per unit of risk. The three month "risk free" rate used is the 90-day Treasury Bill rate.

Standard Deviation is a statistical measurement of the dispersion of a fund's return over a specified time period. Fidelity calculates standard deviations by comparing a fund's monthly returns to its average monthly return over a 36-month period, and then annualizes the number. Investors may examine historical standard deviation in conjunction with historical returns to decide whether a fund's volatility would have been acceptable given the returns it would have produced. A higher standard deviation indicates a wider dispersion of past returns and thus greater historical volatility. Standard deviation does not indicate how the fund actually performed, but merely indicates the volatility of its returns over time.

Tracking Error is the divergence between the price behavior of a position or a portfolio and the price behavior of a benchmark, creating an unexpected profit or loss.

YIELD CURVE

The relationship at a given point in time between yields on a group of fixed-income securities with varying maturities - commonly, Treasury bills, notes, and bonds. The curve typically slopes upward since longer maturities normally have higher yields, although it can be flat or even inverted.

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