Fidelity VIP Contrafund Portfolio℠

PORTFOLIO MANAGER Q&A | AS OF JUNE 30, 2021

Fidelity? VIP Contrafund Portfolio

Key Takeaways

? For the semiannual reporting period ending June 30, 2021, the fund's

Initial Class shares gained 13.85%, lagging the 15.25% advance of the benchmark S&P 500? index.

? Co-Managers Will Danoff and Jean Park say the sharp economic

recovery the past six months has been driven by increasing COVID-19 vaccination rates, the "reopening of society" and low interest rates in the United States.

? Against this backdrop, Will and Jean are disappointed the fund

modestly lagged the benchmark in the first half of 2021.

? Will and Jean stayed true to their emphasis on earnings growth and

free cash flow, and their belief that stock prices follow the earnings per share of their underlying companies over time.

? (+6%) and Netflix (-2%) were large active overweights

that lagged the benchmark and notably detracted from performance versus the benchmark for the six months.

? In contrast, communication services stocks stood out as a relative

contributor, led by two large "tech" companies, social-media leader Facebook (+27%) and Google parent Alphabet (+41%), that are topfive positions in the fund.

? As of midyear, Will believes the outlook for U.S. corporate earnings is

bright, and he notes that companies cut costs and invested heavily in technology during the pandemic. Now, with society opening up and the government stimulating the economy with unprecedented vigor, demand is very strong, according to Will.

? Looking ahead to the second half of 2021, Will and Jean plan to favor

well-positioned, well-managed companies with solid revenue growth, strong profit margins and excellent free cash flow.

Not FDIC Insured ? May Lose Value ? No Bank Guarantee

MARKET RECAP

The S&P 500? index gained 15.25% for the six months ending June 30, 2021, with U.S. equities rising on the prospect of a surge in economic growth amid widespread COVID-19 vaccinations, fiscal stimulus and fresh spending programs. As 2021 began, investors saw reasons to be hopeful. The rollout of three COVID19 vaccines was underway, the U.S. Federal Reserve pledged to hold interest rates near zero until the economy recovered, and the federal government would deploy trillions of dollars in aid to boost consumers and the economy. Many economists raised their expectations for a powerful recovery, as opposed to a sluggish rebound, bolstering stocks through April. Choppy trading in a flattish May reflected concerns about inflation and jobs, but the uptrend resumed to close the first half of the year. This backdrop fueled a powerful market rotation, with small-cap value stocks usurping long-standing leadership from large growth shares. As part of the "reopening" trade, investors moved out of tech-driven mega-caps that had thrived due to the work-from-home trend in favor of cheap smaller companies they believed stood to benefit from a broad cyclical recovery. Reflecting this shift, the energy sector gained about 46% for the six months, boosted by a sharp rally in the price of oil. Financials (+26%) rode strength among banks (+29%). Conversely, notable "laggards" included the defensive utilities (+2%), consumer staples (+5%) and health care (+12%) sectors. Industrials (+16%) and materials (+15%) roughly matched the index.

PORTFOLIO MANAGER Q&A | AS OF JUNE 30, 2021

Q&A

William Danoff Co-Manager

Fund Facts

Start Date: Size (in millions):

Jean Park Co-Manager

January 03, 1995 $23,208.92

Investment Approach

? Fidelity? VIP Contrafund? Portfolio is an opportunistic, diversified equity strategy with a large-cap growth bias. The flexibility of the fund's investment mandate leads to exposure across the market-cap spectrum.

? Philosophically, we believe stock prices follow companies' earnings, and those companies that can deliver durable multiyear earnings growth provide attractive investment opportunities.

? As a result, our investment approach seeks firms we believe are poised for sustained, above-average earnings growth that is not accurately reflected in the stocks' current valuation.

? In particular, we emphasize companies with "best of breed" qualities, including those with a strong competitive position, high returns on capital, solid free-cash-flow generation and management teams that are stewards of shareholder capital.

? We strive to uncover these investment opportunities through in-depth bottom-up, fundamental analysis, working in concert with Fidelity's global research team.

An interview with Co-Managers William Danoff and Jean Park

Q: Will, how did the fund perform for the six months ending June 30, 2021

W.D. The fund's Initial Class shares gained 13.85%, lagging the 15.25% advance of the benchmark S&P 500? index and topping the peer group average. Jean and I are disappointed that VIP Contrafund fell short of the benchmark in the first half of 2021, but we recognize that the fund is unlikely to outperform the S&P 500? in every six-month period.

For the trailing 12 months, the fund gained 36.01%, lagging both the benchmark and peer group average.

Q: Would you reflect on the developments of the past six months, including the pandemic

W.D. Increasing COVID-19 vaccination rates, the "reopening of society" and low interest rates in the U.S. sparked a sharp economic recovery. Leading economists project the U.S. economy to grow 6% to 7% in real terms this year, the highest growth rate since 1983.

This economic surge has propelled earnings for firms in the S&P 500?. Earnings this year are projected to increase 37% from a depressed level in 2020, and 18% from pre-COVID 2019. Estimates for 2021 rose 15% the past six months, as first-quarter financial results were generally excellent. Jean and I believe that stock prices follow earnings, so we are not surprised that the S&P 500 rose 15% in the first half of 2021.

Q: As the six months unfolded, did you make any notable changes to the fund's positioning

W.D. Let me remind shareholders that VIP Contrafund is managed in two sleeves. I manage a sleeve that represents 60% of assets. Jean runs the other sleeve, representing 40% of the fund.

As the economy strengthened, we assumed interest rates would rise. And the yield on the 10-year U.S. Treasury note did increase, from 0.93% at the end of 2020 to 1.45% at midyear. But the yield is still below the 1.9% level of early 2020, before the outbreak and spread of COVID-19.

We bought shares in banks and other financial companies during the period because rising interest rates and a recovering economy usually benefit bank earnings, and valuations for the group were very reasonable at

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, 2021

approximately 12 times earnings. We funded these purchases in the financials sector by selling select health care stocks, which tend to perform better when the economy is weak, and certain tech stocks that were trading at a very high valuation ? 50 times earnings or more, in some cases.

Q: What detracted from fund performance

W.D. Not having enough exposure to the energy and financials sectors detracted versus the benchmark, as each rallied sharply for the six months. Both tend to perform well when the economy is expected to recover, as has been the case since the COVID-19 vaccines were proven effective and authorized for use, and the newly elected administration signaled it would aggressively stimulate the economy.

Oil prices rose 50% during the period amid firming demand and constrained supply due to capacity shut-ins by OPEC (the Organization of the Petroleum Exporting Countries) and plummeting non-OPEC capital expenditures.

Financials stocks rallied as bond yields rose and credit quality improved, boosting earnings estimates for the group. As I noted, I increased the fund's allocation to financials this period, moving to a slight overweight at midyear.

Q: Jean, which stocks detracted most

J.P. When Will and I took over VIP Contrafund in May 2018, we built sizable non-benchmark positions in software companies Okta and MongoDB. There are aspects of the software-as-a-service model that are very attractive: high margin, fast-growing markets, capital light and big potential to generate lots of free cash flow at scale. Okta and MongoDB are part of this next generation of cloud-native, cloud-first software companies that have benefited from many businesses wanting to migrate away from the data center to the cloud.

Okta focuses on identity management, which is very important to anybody doing business on the cloud. MongoDB develops database software that is geared to work with large amounts of data in a novel way. Both companies have executed well and more than tripled revenues in the past three years. Okta's stock price has gone up almost fivefold since May 2018, while MongoDB's stock price has increased six-fold.

Both are meaningful contributors to the fund's performance versus the benchmark for this roughly three-year stretch. However, as bond yields rose in the first half of 2021, the relative valuations of these faster growers compressed, which led them to be among the biggest relative detractors. For the six months, Okta returned -4% for the fund and MongoDB returned -2%. While we lightened up our position in each, we recognize their potential for outsized growth.

Elsewhere, Amazon (+6%) and Netflix (-3%) were large active overweights that lagged the benchmark and hurt relative

performance. E-commerce giant Amazon and videostreaming service provider Netflix executed well during the stay-at-home conditions of the pandemic. Some investors anticipated tougher growth comparisons as the world opened up this year, and the stocks languished for the six months. Will and I believe the outlook for both companies is bright, so each is a top-10 holding as of midyear.

Lastly, not owning energy giant and benchmark component Exxon Mobil (+58%) detracted from relative performance. We avoided Exxon and virtually all other oil and gas companies because the traditional energy business is capital intensive and cyclical, and we believe it is now in climatechange-driven secular decline.

Q: Will, what notably contributed

W.D. Communication services stocks helped most for the six months. The sector includes two large "tech" companies, social-media leader Facebook (+27%) and Google parent Alphabet (+43%), that are top-five positions in the fund. Facebook and Alphabet increased revenue 40% and 28%, respectively, and improved profit margins during the period.

Facebook is the fund's fourth-largest holding, representing 5.43% of assets at midyear, and our largest overweight. The company has three primary platforms ? Facebook, Instagram and WhatsApp ? and a daily active user base of more than 2.5 billion people. Facebook continues to innovate at a rapid pace, as seen by the success of its video product, Reels, and its virtual reality headset, Oculus Quest 2. Facebook's earnings per share are expected to increase 30% this year and 20%-plus next year and in 2023, so as of June 30 the stock remains attractive to me at 22 times next year's estimate.

Shares of Alphabet have been driven by strong financial results that were fueled by a surge in digital ad spending.

Nvidia (+53%) is another large fund holding that contributed to relative performance the past six months. Nvidia makes graphics chips for cloud computing, artificial intelligence and video games.

This period, underweighting Apple (+4%) and essentially avoiding Tesla (-5%), both sizable benchmark components, helped our relative result. We are glad the fund owns Apple shares, as management has executed much better than we expected, but we believe that other technology companies should be able to grow faster than Apple. Tesla makes wonderful electric cars and CEO Elon Musk is an extraordinary entrepreneur, but the stock is too expensive for us at 140 times earnings.

Q: Will, what is your outlook as of June 30

W.D. The outlook for U.S. corporate earnings is bright. Companies cut costs and invested heavily in technology during the pandemic. Now, with society opening up and the

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, 2021

government stimulating the economy with unprecedented vigor, demand is very strong. Earnings estimates have risen to $192 for companies in the S&P 500? index for 2021 and $216 for 2022, compared with pandemic-disrupted earnings of $140 last year and $163 in 2019. For 2021, corporate earnings could increase about 9% per year from non-COVID-affected 2019, which would exceed the 7% long-term earnings growth rate of the S&P 500. At 20 times next year's estimates, the S&P 500 remains attractive relative to government bonds yielding only 1.5%. Investors are concerned about recent signs of burgeoning inflation. Prices for used cars and homes have popped 42% and 24%, respectively, in the past year. The ballooning balance sheet at the U.S. Federal Reserve and the skyrocketing U.S. budget deficit will most likely produce inflation. In managing the fund, Jean and I are favoring wellpositioned, well-managed companies with solid revenue growth, strong profit margins and excellent free cash flow. As an example, the leading U.S. tech companies have free-cashflow yields averaging 14%, which compares favorably with the 6% free-cash-flow yield of the rest of the stock market and the 1.5% yield on government bonds.

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, 2021

Will Danoff on Amazon's Jeff Bezos:

"Jeff Bezos, founder and CEO of internet behemoth , recently retired to executive chairman of the company. Bezos's stewardship at Amazon for the past 25 years has been extraordinary ? from 1995, when it started selling books online, to its current dominant position in e-commerce and cloud computing, with annual revenue of $400 billion.

"I highly recommend that VIP Contrafund shareholders read all of Jeff's letters to Amazon's stockholders. My personal favorite is in the 2016 Amazon annual report, in which Bezos describes a 'starter pack of essentials' underlying the company's mindset that 'every day is Day 1.' He emphasizes the importance of 'customer obsession, a skeptical view of proxies, the eager adoption of external trends, and high-velocity decision making.'

"Amazon's culture is one of relentlessness, resilience and inventiveness. Amazon has not been afraid to fail, and it strives to learn from its failures and successes.

"Its managers have always kept the long term in mind, and never lost track of the power of 'broad selection, low prices and outstanding convenience' when building its e-commerce business.

"Amazon has been a top-10 position in VIP Contrafund since Jean and I took over in May 2018. In the roughly three years since, VIP Contrafund has appreciated 20.7% annually, topping the 18.7% gain of the benchmark S&P 500.

"Amazon shares appreciated 28.2% annually during this time, and the stock has been the fund's No. 6 contributor to relative performance. It is the fund's third-largest holding as of midyear, at 5.9% of assets.

"Thank you, Jeff Bezos, for your incredible stewardship of and for setting the standard for every CEO in the world. Amazon has meaningfully helped VIP Contrafund's performance since May 2018, and you have made me a better investor."

LARGEST CONTRIBUTORS VS. BENCHMARK

Holding

Market Segment

Alphabet, Inc. Class A

Communication Services

Facebook, Inc. Class A

Communication Services

NVIDIA Corp.

Information Technology

Tesla, Inc.

Consumer Discretionary

Apple, Inc.

Information Technology

* 1 basis point = 0.01%.

Average Relative Relative Contribution Weight (basis points)*

1.86%

47

2.81%

37

0.80%

36

-1.58%

33

-1.01%

16

LARGEST DETRACTORS VS. BENCHMARK

Holding

Market Segment

Okta, Inc.

Information Technology

Netflix, Inc.

Communication Services

Exxon Mobil Corp. Energy

, Inc.

Consumer Discretionary

MongoDB, Inc. Class A

Information Technology

* 1 basis point = 0.01%.

Average Relative Relative Contribution Weight (basis points)*

1.19%

-39

1.56%

-35

-0.69%

-23

2.01%

-21

0.39%

-18

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, 2021

ASSET ALLOCATION

Asset Class

Portfolio Weight Index Weight

Relative Weight

Relative Change From Six Months

Ago

Domestic Equities

94.01%

100.00%

-5.99%

1.69%

International Equities

4.74%

0.00%

4.74%

-0.72%

Developed Markets

4.02%

0.00%

4.02%

0.14%

Emerging Markets

0.72%

0.00%

0.72%

-0.86%

Tax-Advantaged Domiciles

0.00%

0.00%

0.00%

0.00%

Bonds

0.02%

0.00%

0.02%

0.02%

Cash & Net Other Assets

1.23%

0.00%

1.23%

-0.99%

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.

MARKET-SEGMENT DIVERSIFICATION

Market Segment Information Technology Communication Services Financials Consumer Discretionary Health Care Industrials Consumer Staples Materials Utilities Energy Other

Portfolio Weight 33.77% 15.90% 12.48% 12.44% 12.25% 5.53% 3.19% 2.00% 0.49% 0.45% 0.26%

Index Weight 27.42% 11.14% 11.28% 12.28% 12.99% 8.54% 5.86% 2.60% 2.45% 2.85% 2.58%

Relative Weight 6.35% 4.76% 1.20% 0.16% -0.74% -3.01% -2.67% -0.60% -1.96% -2.40% -2.32%

Relative Change From Six Months

Ago -2.43% 1.12% 4.24% 0.13% -1.48% 0.87% -0.77% 0.31% 0.02% -0.38% -0.63%

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

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