UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-03329
Variable Insurance Products Fund
(Exact name of registrant as specified in charter)
245 Summer St., Boston, Massachusetts 02210
(Address of principal executive offices) (Zip code)
Cynthia Lo Bessette, Secretary
245 Summer St.
Boston, Massachusetts 02210
(Name and address of agent for service)
Registrant's telephone number, including area code:
617-563-7000
| |
Date of fiscal year end: | December 31 |
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Date of reporting period: | December 31, 2022 |
Item 1.
Reports to Stockholders
Fidelity® Variable Insurance Products:
Equity-Income Portfolio
Annual Report
December 31, 2022
Contents
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. © 2023 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund 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 GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Average 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 |
| | | | |
Periods ended December 31, 2022 | Past 1 year | Past 5 years | Past 10 years |
| Initial Class | -4.96% | 8.16% | 10.19% |
| Service Class | -5.09% | 8.04% | 10.08% |
| Service Class 2 | -5.25% | 7.88% | 9.91% |
| Investor Class | -5.02% | 8.07% | 10.10% |
| $10,000 Over 10 Years |
| |
Let's say hypothetically that $10,000 was invested in VIP Equity-Income Portfolio - Initial Class, a class of the fund, on December 31, 2012. The chart shows how the value of your investment would have changed, and also shows how the Russell 3000® Value Index performed over the same period. |
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Market Recap:
U.S. equities returned -18.11% in 2022, according to the S&P 500 ® index, as a multitude of risk factors challenged the global economy. It was the index's lowest calendar-year return since 2008 and first retreat since 2018. High inflation prompted the Federal Reserve to aggressively tighten monetary policy, and market interest rates eclipsed their highest level in a decade, stoking recession fears and sending stocks into bear market territory. Since March, the Fed hiked its benchmark rate seven times, by 4.25 percentage points - the fastest-ever pace of monetary tightening - while also shrinking its massive portfolio. Against this backdrop, the S&P 500 ® posted its worst year-to-date result (-23.87%) in 20 years through September, a seasonally weak month that stayed true to form, with volatility spiking due to growing certainty the Fed would persist in its effort to cool inflation, even at the expense of economic growth. Three of the index's worst monthly returns ever were recorded in 2022, as it shed 8% to 9% in April, June and September. Gains of similar proportion were made in July and October, amid optimism on inflation and policy easing. November (+6%) began with a rate hike of 0.75% and ended on a high note when the Fed signaled its intent to slow its pace of rate rises. For the year, value stocks handily outpaced growth. This headwind was pronounced in the growthier communication services (-40%), consumer discretionary (-37%) and information technology (-28%) sectors. In sharp contrast, energy (+66%) shined.
Comments from Portfolio Manager Ramona Persaud:
For the year, the fund's share classes returned roughly -5%, outperforming the -7.98% result of the benchmark Russell 3000 ® Value Index. The top contributor to performance versus the benchmark were stock picks in health care. Also boosting performance was an underweighting in real estate and an overweighting in energy. The fund's biggest individual relative contributor was an overweighting in Exxon Mobil, which gained about 87% the past year. The company was among our biggest holdings. Also bolstering performance was our outsized stake in Eli Lilly, which gained 34%. Avoiding Meta Platforms, a benchmark component that returned roughly -29%, also helped relative performance. Conversely, the largest detractor from performance versus the benchmark was stock selection in the consumer staples sector, primarily within the food, beverage & tobacco industry. An overweighting in information technology also hindered relative performance. Also hampering the fund's relative performance were stock picks in the financials sector, especially within the diversified financials industry. Not owning Chevron, a benchmark component that gained about 58%, was the largest individual relative detractor. Another notable relative detractor was an out-of-benchmark stake in Taiwan Semiconductor (-37%). Another key detractor was our out-of-benchmark position in Microsoft (-28%). The fund's foreign holdings also detracted overall, in part due to a broadly strong U.S. dollar. Notable changes in positioning include increased exposure to the energy sector and a lower allocation to consumer discretionary.
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.
Top Holdings (% of Fund's net assets) |
| |
| Exxon Mobil Corp. | 3.6 | |
| JPMorgan Chase & Co. | 3.2 | |
| Bank of America Corp. | 2.4 | |
| Johnson & Johnson | 2.3 | |
| Walmart, Inc. | 2.1 | |
| Danaher Corp. | 2.1 | |
| Linde PLC | 1.9 | |
| Bristol-Myers Squibb Co. | 1.8 | |
| Cigna Corp. | 1.7 | |
| Wells Fargo & Co. | 1.6 | |
| | 22.7 | |
| |
| Market Sectors (% of Fund's net assets) |
| |
| Health Care | 18.5 | |
| Financials | 15.3 | |
| Consumer Staples | 10.2 | |
| Energy | 10.0 | |
| Information Technology | 8.8 | |
| Communication Services | 8.6 | |
| Industrials | 8.5 | |
| Utilities | 6.2 | |
| Materials | 4.7 | |
| Consumer Discretionary | 3.6 | |
| Real Estate | 1.8 | |
| |
Asset Allocation (% of Fund's net assets) |
|
Foreign investments - 16.6% |
|
Geographic Diversification (% of Fund's net assets) |
|
* Includes Short-Term investments and Net Other Assets (Liabilities). Percentages are based on country or territory of incorporation and are adjusted for the effect of futures contracts, if applicable. |
| |
Showing Percentage of Net Assets
| Common Stocks - 96.2% |
| | | Shares | Value ($) |
| COMMUNICATION SERVICES - 8.6% | | | |
| Diversified Telecommunication Services - 1.8% | | | |
| AT&T, Inc. | | 2,463,570 | 45,354,324 |
| Verizon Communications, Inc. | | 1,357,860 | 53,499,684 |
| | | | 98,854,008 |
| Entertainment - 1.7% | | | |
| Activision Blizzard, Inc. | | 579,300 | 44,345,415 |
| The Walt Disney Co. (a) | | 612,997 | 53,257,179 |
| | | | 97,602,594 |
| Interactive Media & Services - 0.9% | | | |
| Alphabet, Inc. Class A (a) | | 545,760 | 48,152,405 |
| Media - 2.3% | | | |
| Comcast Corp. Class A | | 2,176,833 | 76,123,850 |
| Interpublic Group of Companies, Inc. | | 623,773 | 20,777,879 |
| Shaw Communications, Inc. Class B | | 1,155,700 | 33,296,792 |
| | | | 130,198,521 |
| Wireless Telecommunication Services - 1.9% | | | |
| Rogers Communications, Inc. Class B (non-vtg.) | | 395,300 | 18,500,857 |
| T-Mobile U.S., Inc. (a) | | 641,318 | 89,784,520 |
| | | | 108,285,377 |
TOTAL COMMUNICATION SERVICES | | | 483,092,905 |
| CONSUMER DISCRETIONARY - 3.6% | | | |
| Diversified Consumer Services - 0.2% | | | |
| H&R Block, Inc. | | 377,000 | 13,764,270 |
| Hotels, Restaurants & Leisure - 1.3% | | | |
| McDonald's Corp. | | 284,780 | 75,048,073 |
| Multiline Retail - 0.7% | | | |
| Dollar Tree, Inc. (a) | | 121,900 | 17,241,536 |
| Target Corp. | | 127,908 | 19,063,408 |
| | | | 36,304,944 |
| Specialty Retail - 1.3% | | | |
| Best Buy Co., Inc. | | 139,600 | 11,197,316 |
| Burlington Stores, Inc. (a) | | 69,478 | 14,087,359 |
| Dick's Sporting Goods, Inc. | | 21,600 | 2,598,264 |
| Lowe's Companies, Inc. | | 11,400 | 2,271,336 |
| TJX Companies, Inc. | | 526,174 | 41,883,450 |
| | | | 72,037,725 |
| Textiles, Apparel & Luxury Goods - 0.1% | | | |
| Columbia Sportswear Co. | | 47,100 | 4,125,018 |
| Tapestry, Inc. | | 82,500 | 3,141,600 |
| | | | 7,266,618 |
TOTAL CONSUMER DISCRETIONARY | | | 204,421,630 |
| CONSUMER STAPLES - 10.2% | | | |
| Beverages - 2.9% | | | |
| Diageo PLC | | 439,200 | 19,224,607 |
| Keurig Dr. Pepper, Inc. | | 1,702,700 | 60,718,282 |
| The Coca-Cola Co. | | 1,339,946 | 85,233,965 |
| | | | 165,176,854 |
| Food & Staples Retailing - 3.3% | | | |
| Albertsons Companies, Inc. | | 631,700 | 13,101,458 |
| Alimentation Couche-Tard, Inc. Class A (multi-vtg.) | | 196,200 | 8,621,787 |
| BJ's Wholesale Club Holdings, Inc. (a) | | 270,205 | 17,876,763 |
| Costco Wholesale Corp. | | 56,600 | 25,837,900 |
| Walmart, Inc. | | 834,445 | 118,315,957 |
| | | | 183,753,865 |
| Food Products - 1.4% | | | |
| Bunge Ltd. | | 168,500 | 16,811,245 |
| Mondelez International, Inc. | | 719,971 | 47,986,067 |
| Nestle SA (Reg. S) | | 92,157 | 10,645,003 |
| | | | 75,442,315 |
| Household Products - 1.5% | | | |
| Procter & Gamble Co. | | 562,844 | 85,304,637 |
| Personal Products - 0.2% | | | |
| Unilever PLC | | 247,400 | 12,490,692 |
| Tobacco - 0.9% | | | |
| Philip Morris International, Inc. | | 488,400 | 49,430,964 |
TOTAL CONSUMER STAPLES | | | 571,599,327 |
| ENERGY - 10.0% | | | |
| Oil, Gas & Consumable Fuels - 10.0% | | | |
| Canadian Natural Resources Ltd. | | 662,100 | 36,767,577 |
| ConocoPhillips Co. | | 629,104 | 74,234,272 |
| Enterprise Products Partners LP | | 1,344,244 | 32,423,165 |
| Exxon Mobil Corp. | | 1,834,766 | 202,374,693 |
| Hess Corp. | | 285,900 | 40,546,338 |
| Imperial Oil Ltd. | | 754,735 | 36,761,280 |
| Phillips 66 Co. | | 465,600 | 48,459,648 |
| Suncor Energy, Inc. | | 1,070,900 | 33,969,834 |
| Valero Energy Corp. | | 432,834 | 54,909,321 |
| | | | 560,446,128 |
| FINANCIALS - 15.3% | | | |
| Banks - 9.8% | | | |
| Bank of America Corp. | | 3,996,209 | 132,354,442 |
| Huntington Bancshares, Inc. | | 2,646,170 | 37,310,997 |
| JPMorgan Chase & Co. | | 1,345,475 | 180,428,198 |
| M&T Bank Corp. | | 356,967 | 51,781,633 |
| PNC Financial Services Group, Inc. | | 353,900 | 55,894,966 |
| Wells Fargo & Co. | | 2,249,901 | 92,898,412 |
| | | | 550,668,648 |
| Capital Markets - 0.8% | | | |
| BlackRock, Inc. Class A | | 61,054 | 43,264,696 |
| Consumer Finance - 0.9% | | | |
| Capital One Financial Corp. | | 540,416 | 50,237,071 |
| Insurance - 3.8% | | | |
| American Financial Group, Inc. | | 256,100 | 35,157,408 |
| Chubb Ltd. | | 311,282 | 68,668,809 |
| Hartford Financial Services Group, Inc. | | 532,600 | 40,387,058 |
| Marsh & McLennan Companies, Inc. | | 105,100 | 17,391,948 |
| The Travelers Companies, Inc. | | 296,540 | 55,598,285 |
| | | | 217,203,508 |
TOTAL FINANCIALS | | | 861,373,923 |
| HEALTH CARE - 18.5% | | | |
| Biotechnology - 2.5% | | | |
| AbbVie, Inc. | | 368,339 | 59,527,266 |
| Amgen, Inc. | | 295,975 | 77,734,874 |
| | | | 137,262,140 |
| Health Care Providers & Services - 3.2% | | | |
| Cigna Corp. | | 284,209 | 94,169,810 |
| UnitedHealth Group, Inc. | | 165,912 | 87,963,224 |
| | | | 182,133,034 |
| Life Sciences Tools & Services - 2.1% | | | |
| Danaher Corp. | | 445,568 | 118,262,659 |
| Pharmaceuticals - 10.7% | | | |
| AstraZeneca PLC (United Kingdom) | | 482,136 | 65,242,345 |
| Bristol-Myers Squibb Co. | | 1,415,237 | 101,826,302 |
| Eli Lilly & Co. | | 250,358 | 91,590,971 |
| Johnson & Johnson | | 725,296 | 128,123,538 |
| Merck & Co., Inc. | | 468,200 | 51,946,790 |
| Roche Holding AG (participation certificate) | | 231,551 | 72,762,020 |
| Royalty Pharma PLC | | 754,100 | 29,802,032 |
| Sanofi SA | | 654,455 | 63,106,861 |
| | | | 604,400,859 |
TOTAL HEALTH CARE | | | 1,042,058,692 |
| INDUSTRIALS - 8.5% | | | |
| Aerospace & Defense - 3.2% | | | |
| Huntington Ingalls Industries, Inc. | | 102,800 | 23,713,904 |
| Lockheed Martin Corp. | | 64,400 | 31,329,956 |
| Northrop Grumman Corp. | | 98,901 | 53,961,375 |
| The Boeing Co. (a) | | 358,800 | 68,347,812 |
| | | | 177,353,047 |
| Air Freight & Logistics - 0.5% | | | |
| United Parcel Service, Inc. Class B | | 172,414 | 29,972,450 |
| Building Products - 0.5% | | | |
| Johnson Controls International PLC | | 472,200 | 30,220,800 |
| Electrical Equipment - 0.8% | | | |
| AMETEK, Inc. | | 305,552 | 42,691,725 |
| Industrial Conglomerates - 1.7% | | | |
| General Electric Co. | | 785,220 | 65,793,584 |
| Hitachi Ltd. | | 269,900 | 13,580,364 |
| Siemens AG | | 122,329 | 16,863,215 |
| | | | 96,237,163 |
| Machinery - 1.3% | | | |
| Crane Holdings Co. | | 186,400 | 18,723,880 |
| Fortive Corp. | | 359,116 | 23,073,203 |
| ITT, Inc. | | 372,852 | 30,238,297 |
| | | | 72,035,380 |
| Professional Services - 0.2% | | | |
| KBR, Inc. | | 234,000 | 12,355,200 |
| Trading Companies & Distributors - 0.3% | | | |
| Watsco, Inc. (b) | | 66,758 | 16,649,445 |
TOTAL INDUSTRIALS | | | 477,515,210 |
| INFORMATION TECHNOLOGY - 8.8% | | | |
| Communications Equipment - 1.4% | | | |
| Cisco Systems, Inc. | | 1,662,054 | 79,180,253 |
| IT Services - 1.5% | | | |
| Accenture PLC Class A | | 94,800 | 25,296,432 |
| Amdocs Ltd. | | 454,733 | 41,335,230 |
| Paychex, Inc. | | 45,400 | 5,246,424 |
| Visa, Inc. Class A | | 64,242 | 13,346,918 |
| | | | 85,225,004 |
| Semiconductors & Semiconductor Equipment - 1.8% | | | |
| NXP Semiconductors NV | | 329,500 | 52,070,885 |
| Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | | 633,291 | 47,173,847 |
| | | | 99,244,732 |
| Software - 3.0% | | | |
| Gen Digital, Inc. | | 661,800 | 14,182,374 |
| Microsoft Corp. | | 273,250 | 65,530,815 |
| Open Text Corp. | | 1,026,600 | 30,418,901 |
| Roper Technologies, Inc. | | 134,894 | 58,286,348 |
| | | | 168,418,438 |
| Technology Hardware, Storage & Peripherals - 1.1% | | | |
| Apple, Inc. | | 87,429 | 11,359,650 |
| Samsung Electronics Co. Ltd. | | 1,082,546 | 47,545,891 |
| Seagate Technology Holdings PLC | | 96,000 | 5,050,560 |
| | | | 63,956,101 |
TOTAL INFORMATION TECHNOLOGY | | | 496,024,528 |
| MATERIALS - 4.7% | | | |
| Chemicals - 2.1% | | | |
| Linde PLC | | 321,489 | 104,863,282 |
| Nutrien Ltd. | | 174,600 | 12,746,832 |
| | | | 117,610,114 |
| Containers & Packaging - 1.3% | | | |
| Ball Corp. | | 476,900 | 24,388,666 |
| Crown Holdings, Inc. | | 576,259 | 47,374,252 |
| | | | 71,762,918 |
| Metals & Mining - 1.3% | | | |
| Anglo American PLC (United Kingdom) | | 486,300 | 19,043,454 |
| Freeport-McMoRan, Inc. | | 1,477,100 | 56,129,800 |
| | | | 75,173,254 |
TOTAL MATERIALS | | | 264,546,286 |
| REAL ESTATE - 1.8% | | | |
| Equity Real Estate Investment Trusts (REITs) - 1.8% | | | |
| American Tower Corp. | | 175,973 | 37,281,640 |
| Lamar Advertising Co. Class A | | 372,108 | 35,126,995 |
| Public Storage | | 111,096 | 31,127,988 |
| | | | 103,536,623 |
| UTILITIES - 6.2% | | | |
| Electric Utilities - 3.6% | | | |
| Constellation Energy Corp. | | 201,349 | 17,358,297 |
| Exelon Corp. | | 758,549 | 32,792,073 |
| FirstEnergy Corp. | | 487,100 | 20,428,974 |
| NextEra Energy, Inc. | | 1,012,616 | 84,654,698 |
| PG&E Corp. (a) | | 1,081,900 | 17,591,694 |
| Southern Co. | | 443,200 | 31,648,912 |
| | | | 204,474,648 |
| Independent Power and Renewable Electricity Producers - 0.3% | | | |
| Vistra Corp. | | 765,701 | 17,764,263 |
| Multi-Utilities - 2.3% | | | |
| Ameren Corp. | | 325,858 | 28,975,293 |
| CenterPoint Energy, Inc. | | 1,024,168 | 30,714,798 |
| Dominion Energy, Inc. | | 617,900 | 37,889,628 |
| WEC Energy Group, Inc. | | 316,025 | 29,630,504 |
| | | | 127,210,223 |
TOTAL UTILITIES | | | 349,449,134 |
| TOTAL COMMON STOCKS (Cost $3,736,381,206) | | | 5,414,064,386 |
| | | | |
| Money Market Funds - 3.8% |
| | | Shares | Value ($) |
| Fidelity Cash Central Fund 4.37% (c) | | 210,245,495 | 210,287,544 |
| Fidelity Securities Lending Cash Central Fund 4.37% (c)(d) | | 5,257,574 | 5,258,100 |
| TOTAL MONEY MARKET FUNDS (Cost $215,545,644) | | | 215,545,644 |
| | | | |
| TOTAL INVESTMENT IN SECURITIES - 100.0% (Cost $3,951,926,850) | 5,629,610,030 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | (1,032,427) |
| NET ASSETS - 100.0% | 5,628,577,603 |
| | |
Legend
| (b) | Security or a portion of the security is on loan at period end. |
| (c) | Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request. |
| (d) | Investment made with cash collateral received from securities on loan. |
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
| Affiliate | Value, beginning of period ($) | Purchases ($) | Sales Proceeds ($) | Dividend Income ($) | Realized Gain (loss) ($) | Change in Unrealized appreciation (depreciation) ($) | Value, end of period ($) | % ownership, end of period |
| Fidelity Cash Central Fund 4.37% | 37,073,593 | 815,254,441 | 642,040,490 | 4,246,783 | 1,002 | (1,002) | 210,287,544 | 0.5% |
| Fidelity Securities Lending Cash Central Fund 4.37% | 28,726,908 | 732,465,197 | 755,934,005 | 111,655 | - | - | 5,258,100 | 0.0% |
| Total | 65,800,501 | 1,547,719,638 | 1,397,974,495 | 4,358,438 | 1,002 | (1,002) | 215,545,644 | |
| | | | | | | | | |
Amounts in the dividend 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.
Amount for Fidelity Securities Lending Cash Central Fund represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities.
Amounts included in the purchases and sales proceeds columns may include in-kind transactions, if applicable.
Investment Valuation
The following is a summary of the inputs used, as of December 31, 2022, 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 ($) | Level 3 ($) |
Investments in Securities: | | | | |
|
| Equities: | | | | |
Communication Services | 483,092,905 | 483,092,905 | - | - |
Consumer Discretionary | 204,421,630 | 204,421,630 | - | - |
Consumer Staples | 571,599,327 | 529,239,025 | 42,360,302 | - |
Energy | 560,446,128 | 560,446,128 | - | - |
Financials | 861,373,923 | 861,373,923 | - | - |
Health Care | 1,042,058,692 | 840,947,466 | 201,111,226 | - |
Industrials | 477,515,210 | 447,071,631 | 30,443,579 | - |
Information Technology | 496,024,528 | 496,024,528 | - | - |
Materials | 264,546,286 | 245,502,832 | 19,043,454 | - |
Real Estate | 103,536,623 | 103,536,623 | - | - |
Utilities | 349,449,134 | 349,449,134 | - | - |
|
| Money Market Funds | 215,545,644 | 215,545,644 | - | - |
| Total Investments in Securities: | 5,629,610,030 | 5,336,651,469 | 292,958,561 | - |
| Statement of Assets and Liabilities |
| | | | December 31, 2022 |
| | | | | |
| Assets | | | | |
| Investment in securities, at value (including securities loaned of $5,087,760) - See accompanying schedule: | | | | |
Unaffiliated issuers (cost $3,736,381,206) | | $5,414,064,386 | | |
Fidelity Central Funds (cost $215,545,644) | | 215,545,644 | | |
| | | | | |
| Total Investment in Securities (cost $3,951,926,850) | | | $ | 5,629,610,030 |
| Foreign currency held at value (cost $9) | | | | 10 |
| Receivable for fund shares sold | | | | 1,390,675 |
| Dividends receivable | | | | 11,647,122 |
| Distributions receivable from Fidelity Central Funds | | | | 772,433 |
| Prepaid expenses | | | | 6,435 |
| Other receivables | | | | 20,088 |
Total assets | | | | 5,643,446,793 |
| Liabilities | | | | |
| Payable for fund shares redeemed | | $6,721,373 | | |
| Accrued management fee | | 2,016,393 | | |
| Distribution and service plan fees payable | | 340,468 | | |
| Other affiliated payables | | 417,273 | | |
| Other payables and accrued expenses | | 115,583 | | |
| Collateral on securities loaned | | 5,258,100 | | |
| Total Liabilities | | | | 14,869,190 |
| Net Assets | | | $ | 5,628,577,603 |
| Net Assets consist of: | | | | |
| Paid in capital | | | $ | 3,967,344,534 |
| Total accumulated earnings (loss) | | | | 1,661,233,069 |
| Net Assets | | | $ | 5,628,577,603 |
| | | | | |
| Net Asset Value and Maximum Offering Price | | | | |
| Initial Class : | | | | |
Net Asset Value , offering price and redemption price per share ($3,235,039,729 ÷ 137,324,073 shares) | | | $ | 23.56 |
| Service Class : | | | | |
Net Asset Value , offering price and redemption price per share ($286,804,858 ÷ 12,266,298 shares) | | | $ | 23.38 |
| Service Class 2 : | | | | |
Net Asset Value , offering price and redemption price per share ($1,509,526,521 ÷ 66,456,236 shares) | | | $ | 22.71 |
| Investor Class : | | | | |
Net Asset Value , offering price and redemption price per share ($597,206,495 ÷ 25,547,912 shares) | | | $ | 23.38 |
| Statement of Operations |
| | | | Year ended December 31, 2022 |
| Investment Income | | | | |
| Dividends | | | $ | 137,337,905 |
| Income from Fidelity Central Funds (including $111,655 from security lending) | | | | 4,358,438 |
| Total Income | | | | 141,696,343 |
| Expenses | | | | |
| Management fee | $ | 24,750,498 | | |
| Transfer agent fees | | 4,077,080 | | |
| Distribution and service plan fees | | 4,120,061 | | |
| Accounting fees | | 1,042,495 | | |
| Custodian fees and expenses | | 78,723 | | |
| Independent trustees' fees and expenses | | 20,027 | | |
| Audit | | 86,802 | | |
| Legal | | 7,480 | | |
| Interest | | 692 | | |
| Miscellaneous | | 26,171 | | |
| Total expenses before reductions | | 34,210,029 | | |
| Expense reductions | | (192,841) | | |
| Total expenses after reductions | | | | 34,017,188 |
| Net Investment income (loss) | | | | 107,679,155 |
| Realized and Unrealized Gain (Loss) | | | | |
| Net realized gain (loss) on: | | | | |
| Investment Securities: | | | | |
| Unaffiliated issuers | | 189,457,656 | | |
| Fidelity Central Funds | | 1,002 | | |
| Foreign currency transactions | | (333,956) | | |
| Total net realized gain (loss) | | | | 189,124,702 |
| Change in net unrealized appreciation (depreciation) on: | | | | |
| Investment Securities: | | | | |
| Unaffiliated issuers | | (623,187,236) | | |
| Fidelity Central Funds | | (1,002) | | |
| Assets and liabilities in foreign currencies | | (68,834) | | |
| Total change in net unrealized appreciation (depreciation) | | | | (623,257,072) |
| Net gain (loss) | | | | (434,132,370) |
| Net increase (decrease) in net assets resulting from operations | | | $ | (326,453,215) |
| Statement of Changes in Net Assets |
| |
| | Year ended December 31, 2022 | | Year ended December 31, 2021 |
| Increase (Decrease) in Net Assets | | | | |
| Operations | | | | |
| Net investment income (loss) | $ | 107,679,155 | $ | 94,277,467 |
| Net realized gain (loss) | | 189,124,702 | | 547,074,338 |
| Change in net unrealized appreciation (depreciation) | | (623,257,072) | | 685,924,155 |
| Net increase (decrease) in net assets resulting from operations | | (326,453,215) | | 1,327,275,960 |
| Distributions to shareholders | | (298,100,306) | | (789,899,370) |
| Share transactions - net increase (decrease) | | (127,565,741) | | 345,216,711 |
| Total increase (decrease) in net assets | | (752,119,262) | | 882,593,301 |
| | | | | |
| Net Assets | | | | |
| Beginning of period | | 6,380,696,865 | | 5,498,103,564 |
| End of period | $ | 5,628,577,603 | $ | 6,380,696,865 |
| | | | | |
| | | | | |
Financial Highlights
| VIP Equity-Income Portfolio Initial Class |
| |
| Years ended December 31, | | 2022 | | 2021 | | 2020 | | 2019 | | 2018 |
Selected Per-Share Data | | | | | | | | | | |
| Net asset value, beginning of period | $ | 26.15 | $ | 23.90 | $ | 23.77 | $ | 20.37 | $ | 23.89 |
| Income from Investment Operations | | | | | | | | | | |
Net investment income (loss) A,B | | .48 | | .43 | | .39 | | .46 | | .58 |
| Net realized and unrealized gain (loss) | | (1.76) | | 5.29 | | 1.12 | | 4.84 | | (2.50) |
| Total from investment operations | | (1.28) | | 5.72 | | 1.51 | | 5.30 | | (1.92) |
| Distributions from net investment income | | (.47) C | | (.51) | | (.39) | | (.45) | | (.52) |
| Distributions from net realized gain | | (.84) C | | (2.95) | | (.99) | | (1.45) | | (1.07) |
| Total distributions | | (1.31) | | (3.47) D | | (1.38) | | (1.90) | | (1.60) D |
| Net asset value, end of period | $ | 23.56 | $ | 26.15 | $ | 23.90 | $ | 23.77 | $ | 20.37 |
Total Return E,F | | (4.96)% | | 24.89% | | 6.69% | | 27.44% | | (8.29)% |
Ratios to Average Net Assets B,G,H | | | | | | | | | | |
| Expenses before reductions | | .51% | | .51% | | .53% | | .53% | | .53% |
| Expenses net of fee waivers, if any | | .51% | | .51% | | .53% | | .53% | | .53% |
| Expenses net of all reductions | | .51% | | .51% | | .52% | | .52% | | .52% |
| Net investment income (loss) | | 1.94% | | 1.63% | | 1.87% | | 2.11% | | 2.53% |
| Supplemental Data | | | | | | | | | | |
| Net assets, end of period (000 omitted) | $ | 3,235,040 | $ | 3,766,480 | $ | 3,185,391 | $ | 3,202,982 | $ | 2,804,988 |
Portfolio turnover rate I | | 20% | | 27% | | 57% | | 32% | | 39% |
A Calculated based on average shares outstanding during the period.
B Net investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any mutual funds or ETFs is not included in the Fund's net investment income (loss) ratio.
C The amount shown reflects reclassifications related to book to tax differences that were made in the year shown.
D Total distributions per share do not sum due to rounding.
E Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G 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.
H 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.
I Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
| VIP Equity-Income Portfolio Service Class |
| |
| Years ended December 31, | | 2022 | | 2021 | | 2020 | | 2019 | | 2018 |
Selected Per-Share Data | | | | | | | | | | |
| Net asset value, beginning of period | $ | 25.97 | $ | 23.74 | $ | 23.63 | $ | 20.26 | $ | 23.77 |
| Income from Investment Operations | | | | | | | | | | |
Net investment income (loss) A,B | | .45 | | .40 | | .37 | | .44 | | .55 |
| Net realized and unrealized gain (loss) | | (1.75) | | 5.26 | | 1.10 | | 4.81 | | (2.49) |
| Total from investment operations | | (1.30) | | 5.66 | | 1.47 | | 5.25 | | (1.94) |
| Distributions from net investment income | | (.45) C | | (.48) | | (.37) | | (.43) | | (.50) |
| Distributions from net realized gain | | (.84) C | | (2.95) | | (.99) | | (1.45) | | (1.07) |
| Total distributions | | (1.29) | | (3.43) | | (1.36) | | (1.88) | | (1.57) |
| Net asset value, end of period | $ | 23.38 | $ | 25.97 | $ | 23.74 | $ | 23.63 | $ | 20.26 |
Total Return D,E | | (5.09)% | | 24.83% | | 6.55% | | 27.32% | | (8.40)% |
Ratios to Average Net Assets B,F,G | | | | | | | | | | |
| Expenses before reductions | | .61% | | .61% | | .63% | | .63% | | .63% |
| Expenses net of fee waivers, if any | | .61% | | .61% | | .63% | | .63% | | .63% |
| Expenses net of all reductions | | .61% | | .61% | | .62% | | .62% | | .62% |
| Net investment income (loss) | | 1.84% | | 1.53% | | 1.77% | | 2.01% | | 2.43% |
| Supplemental Data | | | | | | | | | | |
| Net assets, end of period (000 omitted) | $ | 286,805 | $ | 326,787 | $ | 284,767 | $ | 299,079 | $ | 264,055 |
Portfolio turnover rate H | | 20% | | 27% | | 57% | | 32% | | 39% |
A Calculated based on average shares outstanding during the period.
B Net investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any mutual funds or ETFs is not included in the Fund's net investment income (loss) ratio.
C The amount shown reflects reclassifications related to book to tax differences that were made in the year shown.
D Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F 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.
G 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.
H Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
| VIP Equity-Income Portfolio Service Class 2 |
| |
| Years ended December 31, | | 2022 | | 2021 | | 2020 | | 2019 | | 2018 |
Selected Per-Share Data | | | | | | | | | | |
| Net asset value, beginning of period | $ | 25.27 | $ | 23.18 | $ | 23.10 | $ | 19.85 | $ | 23.32 |
| Income from Investment Operations | | | | | | | | | | |
Net investment income (loss) A,B | | .40 | | .35 | | .33 | | .40 | | .51 |
| Net realized and unrealized gain (loss) | | (1.71) | | 5.13 | | 1.09 | | 4.70 | | (2.44) |
| Total from investment operations | | (1.31) | | 5.48 | | 1.42 | | 5.10 | | (1.93) |
| Distributions from net investment income | | (.41) C | | (.44) | | (.34) | | (.40) | | (.47) |
| Distributions from net realized gain | | (.84) C | | (2.95) | | (.99) | | (1.45) | | (1.07) |
| Total distributions | | (1.25) | | (3.39) | | (1.34) D | | (1.85) | | (1.54) |
| Net asset value, end of period | $ | 22.71 | $ | 25.27 | $ | 23.18 | $ | 23.10 | $ | 19.85 |
Total Return E,F | | (5.25)% | | 24.60% | | 6.44% | | 27.11% | | (8.54)% |
Ratios to Average Net Assets B,G,H | | | | | | | | | | |
| Expenses before reductions | | .76% | | .76% | | .78% | | .78% | | .78% |
| Expenses net of fee waivers, if any | | .76% | | .76% | | .78% | | .78% | | .78% |
| Expenses net of all reductions | | .76% | | .76% | | .77% | | .77% | | .77% |
| Net investment income (loss) | | 1.69% | | 1.38% | | 1.62% | | 1.86% | | 2.28% |
| Supplemental Data | | | | | | | | | | |
| Net assets, end of period (000 omitted) | $ | 1,509,527 | $ | 1,659,719 | $ | 1,563,662 | $ | 1,431,212 | $ | 1,200,026 |
Portfolio turnover rate I | | 20% | | 27% | | 57% | | 32% | | 39% |
A Calculated based on average shares outstanding during the period.
B Net investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any mutual funds or ETFs is not included in the Fund's net investment income (loss) ratio.
C The amount shown reflects reclassifications related to book to tax differences that were made in the year shown.
D Total distributions per share do not sum due to rounding.
E Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G 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.
H 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.
I Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
| VIP Equity-Income Portfolio Investor Class |
| |
| Years ended December 31, | | 2022 | | 2021 | | 2020 | | 2019 | | 2018 |
Selected Per-Share Data | | | | | | | | | | |
| Net asset value, beginning of period | $ | 25.96 | $ | 23.74 | $ | 23.63 | $ | 20.26 | $ | 23.77 |
| Income from Investment Operations | | | | | | | | | | |
Net investment income (loss) A,B | | .45 | | .41 | | .38 | | .44 | | .55 |
| Net realized and unrealized gain (loss) | | (1.74) | | 5.26 | | 1.10 | | 4.81 | | (2.48) |
| Total from investment operations | | (1.29) | | 5.67 | | 1.48 | | 5.25 | | (1.93) |
| Distributions from net investment income | | (.45) C | | (.49) | | (.38) | | (.44) | | (.51) |
| Distributions from net realized gain | | (.84) C | | (2.95) | | (.99) | | (1.45) | | (1.07) |
| Total distributions | | (1.29) | | (3.45) D | | (1.37) | | (1.88) D | | (1.58) |
| Net asset value, end of period | $ | 23.38 | $ | 25.96 | $ | 23.74 | $ | 23.63 | $ | 20.26 |
Total Return E,F | | (5.02)% | | 24.83% | | 6.57% | | 27.35% | | (8.37)% |
Ratios to Average Net Assets B,G,H | | | | | | | | | | |
| Expenses before reductions | | .59% | | .59% | | .60% | | .61% | | .61% |
| Expenses net of fee waivers, if any | | .58% | | .58% | | .60% | | .61% | | .61% |
| Expenses net of all reductions | | .58% | | .58% | | .60% | | .60% | | .60% |
| Net investment income (loss) | | 1.86% | | 1.55% | | 1.80% | | 2.03% | | 2.45% |
| Supplemental Data | | | | | | | | | | |
| Net assets, end of period (000 omitted) | $ | 597,206 | $ | 627,711 | $ | 464,283 | $ | 449,909 | $ | 382,041 |
Portfolio turnover rate I | | 20% | | 27% | | 57% | | 32% | | 39% |
A Calculated based on average shares outstanding during the period.
B Net investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any mutual funds or ETFs is not included in the Fund's net investment income (loss) ratio.
C The amount shown reflects reclassifications related to book to tax differences that were made in the year shown.
D Total distributions per share do not sum due to rounding.
E Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G 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.
H 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.
I Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
For the period ended December 31, 2022
1. Organization.
VIP Equity-Income Portfolio (the Fund) is a fund of Variable Insurance Products Fund (the Trust) and is authorized to issue an unlimited number of shares. 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. Shares of the Fund may only be purchased by insurance companies for the purpose of funding variable annuity or variable life insurance contracts. The Fund offers the following classes of shares: Initial Class 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.
2. Investments in Fidelity Central Funds.
Funds may 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 Schedule of Investments lists any Fidelity Central Funds held as an investment as of period end, but does not include the underlying holdings of each Fidelity Central Fund. An investing fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
Based on its investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the investing fund. These strategies are consistent with the investment objectives of the investing fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the investing fund.
| Fidelity Central Fund | Investment Manager | Investment Objective | Investment Practices | Expense Ratio A |
| Fidelity Money Market Central Funds | Fidelity Management & Research Company LLC (FMR) | Each fund seeks to obtain a high level of current income consistent with the preservation of capital and liquidity. | Short-term Investments | Less than .005% |
A Expenses expressed as a percentage of average net assets and are as of each underlying Central Fund's most recent annual or semi-annual shareholder report.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including investment valuation policies) of those funds, and are not covered by the Report of Independent Registered Public Accounting Firm, are available on the Securities and Exchange Commission website or upon request.
3. Significant Accounting Policies.
The 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 Fund's Schedule of Investments lists any underlying mutual funds or exchange-traded funds (ETFs) but does not include the underlying holdings of these funds. The following summarizes the significant accounting policies of the Fund:
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 designated the Fund's investment adviser as the valuation designee responsible for the fair valuation function and performing fair value determinations as needed. The investment adviser has established a Fair Value Committee (the Committee) to carry out the day-to-day fair valuation responsibilities and has adopted policies and procedures to govern the fair valuation process and the activities of the Committee. In accordance with these fair valuation policies and procedures, which have been approved by the Board, the Fund attempts to obtain prices from one or more third party pricing services 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 the policies and procedures. Factors used in determining fair value vary by investment type and may include market or investment specific events, transaction data, estimated cash flows, and market observations of comparable investments. The frequency that the fair valuation procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee manages the Fund's fair valuation practices and maintains the fair valuation policies and procedures. The Fund's investment adviser reports to the Board information regarding the fair valuation process and related material matters.
The 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 - unadjusted 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 the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of ADRs, futures contracts, ETFs and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of December 31, 2022 is included at the end of the Fund's Schedule of Investments.
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.
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 realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's 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 and include proceeds received from litigation. Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of a fund include an amount in addition to trade execution, which may be rebated back to a fund. Any such rebates are included in net realized gain (loss) on investments in the Statement of Operations. 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 Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines 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. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. Funds may file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. Any withholding tax reclaims income is included in the Statement of Operations in dividends. Any receivables for withholding tax reclaims are included in the Statement of Assets and Liabilities in dividends receivable.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of a 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 a fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred, as applicable. Certain expense reductions may also differ by class, if applicable. 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 that fund and do not include any expenses associated with any underlying mutual funds or exchange-traded funds. Although not included in a fund's expenses, a fund indirectly bears its proportionate share of these expenses through the net asset value of each underlying mutual fund or exchange-traded fund. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan) for certain Funds, certain independent Trustees have elected to defer receipt of a portion of their annual compensation. Deferred amounts are invested in affiliated mutual funds, are marked-to-market and remain in a fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees presented below are included in the accompanying Statement of Assets and Liabilities in other receivables and other payables and accrued expenses, as applicable.
| VIP Equity-Income Portfolio | $20,088 |
Income Tax Information and Distributions to Shareholders. Each year, the 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, 2022, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the 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. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The 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 the 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. These differences resulted in distribution reclassifications.
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 foreign currency transactions, partnerships 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:
| Gross unrealized appreciation | $1,823,145,114 |
| Gross unrealized depreciation | (150,243,975) |
| Net unrealized appreciation (depreciation) | $1,672,901,139 |
| Tax Cost | $3,956,708,891 |
The tax-based components of distributable earnings as of period end were as follows:
| Net unrealized appreciation (depreciation) on securities and other investments | $1,661,664,297 |
The tax character of distributions paid was as follows:
| | December 31, 2022 | December 31, 2021 |
| Ordinary Income | $107,347,297 | $257,289,641 |
| Long-term Capital Gains | 190,753,009 | 532,609,729 |
| Total | $298,100,306 | $789,899,370 |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, as applicable, are noted in the table below.
| | Purchases ($) | Sales ($) |
| VIP Equity-Income Portfolio | 1,124,313,523 | 1,623,457,709 |
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company LLC (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .20% of the Fund's average net assets and an annualized group fee rate that averaged .23% during the period. The group fee rate is based upon the monthly average net assets of a group of registered investment companies with which the investment adviser has management contracts. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annual management fee rate was .43% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has 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 re-allowed to insurance companies for the distribution of shares and providing shareholder support services, were as follows:
| Service Class | $296,999 |
| Service Class 2 | 3,823,062 |
| | $4,120,061 |
Transfer Agent Fees. Fidelity Investments Institutional Operations Company LLC (FIIOC), an affiliate of the investment adviser, is the Fund's transfer, dividend disbursing, and shareholder servicing agent. FIIOC receives an asset-based fee with respect to each class. Each class pays a fee for transfer agent services, typesetting and printing and mailing of shareholder reports, excluding mailing of proxy statements. For the period, transfer agent fees for each class were as follows:
| | Amount | % of Class-Level Average Net Assets |
| Initial Class | $2,108,166 | .06 |
| Service Class | 185,478 | .06 |
| Service Class 2 | 955,130 | .06 |
| Investor Class | 828,306 | .14 |
| | $4,077,080 | |
Accounting Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. For the period, the fees were equivalent to the following annual rates:
| | % of Average Net Assets |
| VIP Equity-Income Portfolio | .02 |
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:
| | Amount |
| VIP Equity-Income Portfolio | $23,274 |
Interfund Lending Program. Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (the SEC), the 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 the 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 Rate | Interest Expense |
| VIP Equity-Income Portfolio | Borrower | $7,908,800 | .32% | $692 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Any interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note. Interfund trades during the period are noted in the table below.
| | Purchases ($) | Sales ($) | Realized Gain (Loss) ($) |
| VIP Equity-Income Portfolio | 48,272,569 | 241,235,515 | 19,101,086 |
6. Committed Line of Credit.
Certain Funds participate with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which are reflected in Miscellaneous expenses on the Statement of Operations, and are listed below. During the period, there were no borrowings on this line of credit.
| | Amount |
| VIP Equity-Income Portfolio | $10,138 |
7. Security Lending.
Funds lend portfolio securities from time to time in order to earn additional income. Lending agents are used, including National Financial Services (NFS), an affiliate of the investment adviser. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of a fund's daily lending revenue, for its services as lending agent. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, a fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of a fund and any additional required collateral is delivered to a fund on the next business day. A fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund may apply collateral received from the borrower against the obligation. A fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Affiliated security lending activity, if any, was as follows:
| | Total Security Lending Fees Paid to NFS | Security Lending Income From Securities Loaned to NFS | Value of Securities Loaned to NFS at Period End |
| VIP Equity-Income Portfolio | $11,866 | $- | $- |
8. Expense Reductions.
Through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, custodian credits reduced the Fund's expenses by $1,232.
In addition, during the period the investment adviser or an affiliate reimbursed and/or waived a portion of fund-level operating expenses in the amount of $191,609.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| | Year ended December 31, 2022 | Year ended December 31, 2021 |
| VIP Equity-Income Portfolio | | |
| Distributions to shareholders | | |
| Initial Class | $172,087,787 | $463,404,060 |
| Service Class | 15,094,456 | 40,340,660 |
| Service Class 2 | 79,440,158 | 210,857,612 |
| Investor Class | 31,477,905 | 75,297,038 |
Total | $298,100,306 | $789,899,370 |
10. Share Transactions.
Transactions for each class of shares were as follows and may contain in-kind transactions:
| | Shares | Shares | Dollars | Dollars |
| | Year ended December 31, 2022 | Year ended December 31, 2021 | Year ended December 31, 2022 | Year ended December 31, 2021 |
| VIP Equity-Income Portfolio | | | | |
| Initial Class | | | | |
| Shares sold | 8,687,731 | 8,955,693 | $215,605,540 | $237,708,161 |
| Reinvestment of distributions | 7,190,967 | 18,115,164 | 172,087,787 | 463,404,059 |
| Shares redeemed | (22,577,302) | (16,345,548) | (556,735,404) | (432,790,636) |
| Net increase (decrease) | (6,698,604) | 10,725,309 | $(169,042,077) | $268,321,584 |
| Service Class | | | | |
| Shares sold | 874,027 | 461,352 | $21,820,943 | $12,148,893 |
| Reinvestment of distributions | 635,539 | 1,588,165 | 15,094,456 | 40,340,660 |
| Shares redeemed | (1,828,012) | (1,458,054) | (44,876,939) | (38,445,404) |
| Net increase (decrease) | (318,446) | 591,463 | $(7,961,540) | $14,044,149 |
| Service Class 2 | | | | |
| Shares sold | 8,220,770 | 5,231,653 | $194,576,846 | $134,560,733 |
| Reinvestment of distributions | 3,441,999 | 8,533,721 | 79,440,158 | 210,857,612 |
| Shares redeemed | (10,894,425) | (15,544,137) | (259,133,632) | (400,531,327) |
| Net increase (decrease) | 768,344 | (1,778,763) | $14,883,372 | $(55,112,982) |
| Investor Class | | | | |
| Shares sold | 3,283,706 | 3,641,902 | $81,421,149 | $94,416,901 |
| Reinvestment of distributions | 1,325,531 | 2,958,477 | 31,477,905 | 75,297,038 |
| Shares redeemed | (3,240,005) | (1,975,712) | (78,344,550) | (51,749,979) |
| Net increase (decrease) | 1,369,232 | 4,624,667 | $34,554,504 | $117,963,960 |
11. Other.
A fund's 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 fund. In the normal course of business, a fund may also enter into contracts that provide general indemnifications. A fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against a fund. The risk of material loss from such claims is considered remote.
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% of the outstanding shares as follows:
| Fund | Affiliated % | Number of Unaffiliated Shareholders | Unaffiliated Shareholders % |
| VIP Equity-Income Portfolio | 17% | 2 | 29% |
12. Risk and Uncertainties.
Many factors affect a fund's performance. Developments that disrupt global economies and financial markets, such as pandemics, epidemics, outbreaks of infectious diseases, war, terrorism, and environmental disasters, may significantly affect a fund's investment performance. The effects of these developments to a fund will be impacted by the types of securities in which a fund invests, the financial condition, industry, economic sector, and geographic location of an issuer, and a fund's level of investment in the securities of that issuer.
To the Board of Trustees of Variable Insurance Products Fund and Shareholders of VIP Equity-Income Portfolio
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of VIP Equity-Income Portfolio (one of the funds constituting Variable Insurance Products Fund, referred to hereafter as the "Fund") as of December 31, 2022, the related statement of operations for the year ended December 31, 2022, the statement of changes in net assets for each of the two years in the period ended December 31, 2022, including the related notes, and the financial highlights for each of the five years in the period ended December 31, 2022 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of December 31, 2022, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended December 31, 2022 and the financial highlights for each of the five years in the period ended December 31, 2022 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's 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 Fund 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, 2022 by correspondence with the custodian and brokers. We believe that our audits provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
Boston, Massachusetts
February 10, 2023
We have served as the auditor of one or more investment companies in the Fidelity group of funds since 1932.
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Jonathan Chiel, each of the Trustees oversees 318 funds. Mr. Chiel oversees 186 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 fund 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.
The 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 the 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 fund, is provided below.
Board Structure and Oversight Function. Robert A. Lawrence is an interested person and currently serves as Chair. The Trustees have determined that an interested Chair is appropriate and benefits shareholders because an interested Chair has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chair, 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 Chair 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. David M. Thomas serves as Lead Independent Trustee 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 fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and other equity funds. The asset allocation funds may invest in Fidelity ® funds overseen by the fund's Board. 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, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's 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 fund's 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 fund are carried out by or through FMR, its affiliates, and other service providers, the fund's 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 fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's 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.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Jonathan Chiel (1957)
Year of Election or Appointment: 2016
Trustee
Mr. Chiel also serves as Trustee of other Fidelity ® funds. Mr. Chiel is Executive Vice President and General Counsel for FMR LLC (diversified financial services company, 2012-present). Previously, Mr. Chiel served as general counsel (2004-2012) and senior vice president and deputy general counsel (2000-2004) for John Hancock Financial Services; a partner with Choate, Hall & Stewart (1996-2000) (law firm); and an Assistant United States Attorney for the United States Attorney's Office of the District of Massachusetts (1986-95), including Chief of the Criminal Division (1993-1995). Mr. Chiel is a director on the boards of the Boston Bar Foundation and the Maimonides School.
Bettina Doulton (1964)
Year of Election or Appointment: 2021
Trustee
Ms. Doulton also serves as Trustee of other Fidelity ® funds. Prior to her retirement, Ms. Doulton served in a variety of positions at Fidelity Investments, including as a managing director of research (2006-2007), portfolio manager to certain Fidelity ® funds (1993-2005), equity analyst and portfolio assistant (1990-1993), and research assistant (1987-1990). Ms. Doulton currently owns and operates Phi Builders + Architects and Cellardoor Winery. Previously, Ms. Doulton served as a member of the Board of Brown Capital Management, LLC (2014-2018).
Robert A. Lawrence (1952)
Year of Election or Appointment: 2020
Trustee
Chair of the Board of Trustees
Mr. Lawrence also serves as Trustee of other funds. Previously, Mr. Lawrence served as a Trustee and Member of the Advisory Board of certain funds. Prior to his retirement in 2008, Mr. Lawrence served as Vice President of certain Fidelity ® funds (2006-2008), Senior Vice President, Head of High Income Division of Fidelity Management & Research Company (investment adviser firm, 2006-2008), and President of Fidelity Strategic Investments (investment adviser firm, 2002-2005).
* 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 the 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+
Thomas P. Bostick (1956)
Year of Election or Appointment: 2021
Trustee
Lieutenant General Bostick also serves as Trustee of other Fidelity ® funds. Prior to his retirement, General Bostick (United States Army, Retired) held a variety of positions within the U.S. Army, including Commanding General and Chief of Engineers, U.S. Army Corps of Engineers (2012-2016) and Deputy Chief of Staff and Director of Human Resources, U.S. Army (2009-2012). General Bostick currently serves as a member of the Board and Finance and Governance Committees of CSX Corporation (transportation, 2020-present) and a member of the Board and Corporate Governance and Nominating Committee of Perma-Fix Environmental Services, Inc. (nuclear waste management, 2020-present). General Bostick serves as Chief Executive Officer of Bostick Global Strategies, LLC (consulting, 2016-present) and as a member of the Board of HireVue, Inc. (video interview and assessment, 2020-present). Previously, General Bostick served as a Member of the Advisory Board of certain Fidelity® funds (2021), President, Intrexon Bioengineering (2018-2020) and Chief Operating Officer (2017-2020) and Senior Vice President of the Environment Sector (2016-2017) of Intrexon Corporation (biopharmaceutical company).
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity ® funds. Prior to his retirement in May 2003, Mr. Dirks served as Chief Operating Officer and as a member of the Board of The Depository Trust & Clearing Corporation (financial markets infrastructure), President, Chief Operating Officer and a member of the Board of The Depository Trust Company (DTC), President and a member of the Board of the National Securities Clearing Corporation (NSCC), Chief Executive Officer and a member of the Board of the Government Securities Clearing Corporation and Chief Executive Officer and a member of the Board of the Mortgage-Backed Securities Clearing Corporation. Mr. Dirks currently serves as a member of the Finance Committee (2016-present) and Board (2017-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as Trustee of other Fidelity ® funds. Mr. Donahue serves as President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006) and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue currently serves as a member (2007-present) and Co-Chairman (2016-present) of the Board of United Way of New York and a member of the Board of The Leadership Academy (previously NYC Leadership Academy) (2012-present). Mr. Donahue previously served as a member of the Advisory Board of certain Fidelity® funds (2015-2018).
Vicki L. Fuller (1957)
Year of Election or Appointment: 2020
Trustee
Ms. Fuller also serves as Trustee of other Fidelity ® funds. Previously, Ms. Fuller served as a member of the Advisory Board of certain Fidelity ® funds (2018-2020), Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006). Ms. Fuller currently serves as a member of the Board, Audit Committee and Nominating and Governance Committee of two Blackstone business development companies (2020-present), as a member of the Board of Treliant, LLC (consulting, 2019-present), as a member of the Advisory Board of Ariel Alternatives, LLC (private equity, 2021-present) and as a member of the Board and Chair of the Audit Committee of Gusto, Inc. (software, 2021-present). In addition, Ms. Fuller currently serves as a member of the Board of Roosevelt University (2019-present) and as a member of the Executive Board of New York University's Stern School of Business. Ms. Fuller previously served as a member of the Board, Audit Committee and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-2021).
Patricia L. Kampling (1959)
Year of Election or Appointment: 2020
Trustee
Ms. Kampling also serves as Trustee of other Fidelity ® funds. Prior to her retirement, Ms. Kampling served as Chairman of the Board and Chief Executive Officer (2012-2019), President and Chief Operating Officer (2011-2012) and Executive Vice President and Chief Financial Officer (2010-2011) of Alliant Energy Corporation. Ms. Kampling currently serves as a member of the Board, Finance Committee and Governance, Compensation and Nominating Committee of Xcel Energy Inc. (utilities company, 2020-present) and as a member of the Board, Audit, Finance and Risk Committee and Safety, Environmental, Technology and Operations Committee and Chair of the Executive Development and Compensation Committee of American Water Works Company, Inc. (utilities company, 2019-present). In addition, Ms. Kampling currently serves as a member of the Board of the Nature Conservancy, Wisconsin Chapter (2019-present). Previously, Ms. Kampling served as a Member of the Advisory Board of certain Fidelity® funds (2020), a member of the Board, Compensation Committee and Executive Committee and Chair of the Audit Committee of Briggs & Stratton Corporation (manufacturing, 2011-2021), a member of the Board of Interstate Power and Light Company (2012-2019) and Wisconsin Power and Light Company (2012-2019) (each a subsidiary of Alliant Energy Corporation) and as a member of the Board and Workforce Development Committee of the Business Roundtable (2018-2019).
Thomas A. Kennedy (1955)
Year of Election or Appointment: 2021
Trustee
Mr. Kennedy also serves as Trustee of other Fidelity ® funds. Previously, Mr. Kennedy served as a Member of the Advisory Board of certain Fidelity ® funds (2020) and held a variety of positions at Raytheon Company (aerospace and defense, 1983-2020), including Chairman and Chief Executive Officer (2014-2020) and Executive Vice President and Chief Operating Officer (2013-2014). Mr. Kennedy currently serves as Executive Chairman of the Board of Directors of Raytheon Technologies Corporation (aerospace and defense, 2020-present). He is also a member of the Rutgers School of Engineering Industry Advisory Board (2011-present) and a member of the UCLA Engineering Dean's Executive Board (2016-present).
Oscar Munoz (1959)
Year of Election or Appointment: 2021
Trustee
Mr. Munoz also serves as Trustee of other Fidelity ® funds. Prior to his retirement, Mr. Munoz served as Executive Chairman (2020-2021), Chief Executive Officer (2015-2020), President (2015-2016) and a member of the Board (2010-2021) of United Airlines Holdings, Inc. Mr. Munoz currently serves as a member of the Board of CBRE Group, Inc. (commercial real estate, 2020-present), a member of the Board of Univision Communications, Inc. (Hispanic media, 2020-present) and a member of the Advisory Board of Salesforce.com, Inc. (cloud-based software, 2020-present). Previously, Mr. Munoz served as a Member of the Advisory Board of certain Fidelity ® funds (2021).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Lead Independent Trustee
Mr. Thomas also serves as Trustee of other Fidelity ® funds. Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions). Mr. Thomas currently serves as a member of the Board of Fortune Brands Home and Security (home and security products, 2004-present) and as Director (2013-present) and Non-Executive Chairman of the Board (2022-present) of Interpublic Group of Companies, Inc. (marketing communication).
Susan Tomasky (1953)
Year of Election or Appointment: 2020
Trustee
Ms. Tomasky also serves as Trustee of other Fidelity ® funds. Prior to her retirement, Ms. Tomasky served in various executive officer positions at American Electric Power Company, Inc. (1998-2011), including most recently as President of AEP Transmission (2007-2011). Ms. Tomasky currently serves as a member of the Board and Sustainability Committee and as Chair of the Audit Committee of Marathon Petroleum Corporation (2018-present) and as a member of the Board, Executive Committee, Corporate Governance Committee and Organization and Compensation Committee and as Chair of the Audit Committee of Public Service Enterprise Group, Inc. (utilities company, 2012-present) and as a member of the Board of its subsidiary company, Public Service Electric and Gas Co. (2021-present). In addition, Ms. Tomasky currently serves as a member (2009-present) and President (2020-present) of the Board of the Royal Shakespeare Company - America (2009-present), as a member of the Board of the Columbus Association for the Performing Arts (2011-present) and as a member of the Board and Kenyon in the World Committee of Kenyon College (2016-present). Previously, Ms. Tomasky served as a Member of the Advisory Board of certain Fidelity ® funds (2020), as a member of the Board of the Columbus Regional Airport Authority (2007-2020), as a member of the Board (2011-2018) and Lead Independent Director (2015-2018) of Andeavor Corporation (previously Tesoro Corporation) (independent oil refiner and marketer) and as a member of the Board of Summit Midstream Partners LP (energy, 2012-2018).
Michael E. Wiley (1950)
Year of Election or Appointment: 2020
Trustee
Mr. Wiley also serves as Trustee of other Fidelity ® funds. Previously, Mr. Wiley served as a member of the Advisory Board of certain Fidelity ® funds (2018-2020), Chairman, President and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004). Mr. Wiley also previously served as a member of the Board of Andeavor Corporation (independent oil refiner and marketer, 2005-2018), a member of the Board of Andeavor Logistics LP (natural resources logistics, 2015-2018) and a member of the Board of High Point Resources (exploration and production, 2005-2020).
+ 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 the fund.
Advisory Board Members and Officers:
Correspondence intended for a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as a Member of the Advisory Board of other Fidelity ® funds. Mr. Lynch is Vice Chairman and a Director of Fidelity Management & Research Company LLC (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served as Vice Chairman and a Director of FMR Co., Inc. (investment adviser firm) and on the Special Olympics International Board of Directors (1997-2006).
Craig S. Brown (1977)
Year of Election or Appointment: 2022
Deputy Treasurer
Mr. Brown also serves as an officer of other funds. Mr. Brown serves as Assistant Treasurer of FIMM, LLC (2021-present) and is an employee of Fidelity Investments (2013-present). Previously, Mr. Brown served as Assistant Treasurer of certain Fidelity ® funds (2019-2022).
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).
William C. Coffey (1969)
Year of Election or Appointment: 2019
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Secretary and CLO of certain funds (2018-2019); CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-2019); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-2019); CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-2019); and Assistant Secretary of certain funds (2009-2018).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2018
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Co-Head of Equity (2018-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Executive Vice President of Fidelity SelectCo, LLC (2019), Head of Global Equity Research (2016-2018), Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as an officer of other funds. Mr. Davis serves as Assistant Treasurer of FIMM, LLC (2021-present), FMR Capital, Inc. (2017-present), FD Funds GP LLC (2021-present), FD Funds Holding LLC (2021-present), and FD Funds Management LLC (2021-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
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato serves as Assistant Treasurer of FIMM, LLC (2021-present) and 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)
Year of Election or Appointment: 2020
Assistant Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FIMM, LLC (2021-present) and 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).
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as Vice President of other funds. Ms. Holding serves as Co-Head of Equity (2018-present) and is an employee of Fidelity Investments (2013-present). Previously, Ms. Holding served as Executive Vice President of Fidelity SelectCo, LLC (2019) and as Chief Investment Officer of Fidelity Institutional Asset Management (2013-2018).
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); CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2019-present); Secretary of FD Funds GP LLC (2021-present), FD Funds Holding LLC (2021-present), FD Funds Management LLC (2021-present), and Fidelity Diversifying Solutions LLC (investment adviser firm, 2022-present); and Assistant Secretary of FIMM, LLC (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)
Year of Election or Appointment: 2020
Deputy Treasurer
Mr. Maher also serves as an officer of other funds. Mr. Maher serves as Assistant Treasurer of FIMM, LLC (2021-present) and 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).
Jason P. Pogorelec (1975)
Year of Election or Appointment: 2020
Chief Compliance Officer
Mr. Pogorelec also serves as Chief Compliance Officer of other funds. Mr. Pogorelec is a senior Vice President of Asset Management Compliance for Fidelity Investments and is an employee of Fidelity Investments (2006-present). Previously, Mr. Pogorelec served as Vice President, Associate General Counsel for Fidelity Investments (2010-2020) and Assistant Secretary of certain Fidelity ® funds (2015-2020).
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)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FIMM, LLC (2021-present) and 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.
Jim Wegmann (1979)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Wegmann also serves as an officer of other funds. Mr. Wegmann serves as Assistant Treasurer of FIMM, LLC (2021-present) and is an employee of Fidelity Investments (2011-present). Previously, Mr. Wegmann served as Assistant Treasurer of certain Fidelity ® funds (2019-2021).
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, 2022 to December 31, 2022). |
Actual Expenses
The 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 Purposes
The 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 comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| | | | | Annualized Expense Ratio- A | | Beginning Account Value July 1, 2022 | | Ending Account Value December 31, 2022 | | Expenses Paid During Period- C July 1, 2022 to December 31, 2022 |
| VIP Equity-Income Portfolio℠ | | | | | | | | | | |
| Initial Class | | | | .51% | | | | | | |
| Actual | | | | | | $ 1,000 | | $ 1,063.90 | | $ 2.65 |
Hypothetical- B | | | | | | $ 1,000 | | $ 1,022.63 | | $ 2.60 |
| Service Class | | | | .61% | | | | | | |
| Actual | | | | | | $ 1,000 | | $ 1,063.40 | | $ 3.17 |
Hypothetical- B | | | | | | $ 1,000 | | $ 1,022.13 | | $ 3.11 |
| Service Class 2 | | | | .76% | | | | | | |
| Actual | | | | | | $ 1,000 | | $ 1,062.30 | | $ 3.95 |
Hypothetical- B | | | | | | $ 1,000 | | $ 1,021.37 | | $ 3.87 |
| Investor Class | | | | .58% | | | | | | |
| Actual | | | | | | $ 1,000 | | $ 1,063.70 | | $ 3.02 |
Hypothetical- B | | | | | | $ 1,000 | | $ 1,022.28 | | $ 2.96 |
| |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B 5% return per year before expenses
C Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/ 365 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
The dividend and capital gains distributions for the fund(s) are available on Fidelity.com or Institutional.Fidelity.com.
The fund hereby designates as a capital gain dividend with respect to the taxable year ended December 31, 2022, $183,096,411, or, if subsequently determined to be different, the net capital gain of such year.
Initial Class designates 95% and 92%; Service Class designates 95% and 97%; Service Class 2 designates 95% and 100%; and Investor Class designates 95% and 96%; of the dividends distributed in February and December, respectively during the fiscal year as qualifying for the dividends-received deduction for corporate shareholders.
1.540027.125
VIPEI-ANN-0323
Fidelity® Variable Insurance Products:
Growth Portfolio
Annual Report
December 31, 2022
Contents
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. © 2023 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund 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 GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Average 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 |
| | | | |
Periods ended December 31, 2022 | Past 1 year | Past 5 years | Past 10 years |
| Initial Class | -24.46% | 12.42% | 14.81% |
| Service Class | -24.52% | 12.31% | 14.69% |
| Service Class 2 | -24.64% | 12.14% | 14.52% |
| Investor Class | -24.50% | 12.34% | 14.72% |
| $10,000 Over 10 Years |
| |
Let's say hypothetically that $10,000 was invested in VIP Growth Portfolio - Initial Class, a class of the fund, on December 31, 2012. The chart shows how the value of your investment would have changed, and also shows how the Russell 3000® Growth Index performed over the same period. |
|
|
Market Recap:
U.S. equities returned -18.11% in 2022, according to the S&P 500 ® index, as a multitude of risk factors challenged the global economy. It was the index's lowest calendar-year return since 2008 and first retreat since 2018. High inflation prompted the Federal Reserve to aggressively tighten monetary policy, and market interest rates eclipsed their highest level in a decade, stoking recession fears and sending stocks into bear market territory. Since March, the Fed hiked its benchmark rate seven times, by 4.25 percentage points - the fastest-ever pace of monetary tightening - while also shrinking its massive portfolio. Against this backdrop, the S&P 500® posted its worst year-to-date result (-23.87%) in 20 years through September, a seasonally weak month that stayed true to form, with volatility spiking due to growing certainty the Fed would persist in its effort to cool inflation, even at the expense of economic growth. Three of the index's worst monthly returns ever were recorded in 2022, as it shed 8% to 9% in April, June and September. Gains of similar proportion were made in July and October, amid optimism on inflation and policy easing. November (+6%) began with a rate hike of 0.75% and ended on a high note when the Fed signaled its intent to slow its pace of rate rises. For the year, value stocks handily outpaced growth. This headwind was pronounced in the growthier communication services (-40%), consumer discretionary (-37%) and information technology (-28%) sectors. In sharp contrast, energy (+66%) shined.
Comments from Co-Managers Asher Anolic and Jason Weiner:
For the fiscal year ending December 31, 2022, the fund's share classes returned about -25% to -24%, outperforming the -28.97% result of the benchmark Russell 3000 ® Growth Index. The top contributor to performance versus the benchmark were stock picks in the communication services sector, primarily driven by the media & entertainment industry. Security selection and an overweighting in health care, along with outsized exposure to the market-leading energy sector, also bolstered the fund's relative result. Not owning Tesla, a benchmark component that returned approximately -65%, was the top individual relative contributor. Also lifting performance was a larger-than-benchmark position in UnitedHealth Group, which rose 7% and was among the portfolio's biggest holdings. Another notable relative contributor was an outsized stake in Vertex Pharmaceuticals (+32%), another of our largest holdings. The fund's foreign holdings also contributed overall despite the headwind of broad U.S.-dollar strength. In contrast, the primary detractor from performance versus the benchmark was an overweighting in the communication services sector, particularly among media & entertainment firms. Investment choices in energy and industrials also weighed on the fund's relative return. Not owning AbbVie, a benchmark component that gained roughly 24%, hurt most. Further hindering performance was an overweighting in Meta Platforms, which returned about -63% and was one of the fund's largest holdings in 2022. Avoiding Visa, a benchmark component that returned approximately -3%, pressured relative performance as well. Notable changes in positioning the past year include increased exposure to the industrials sector and a lower allocation to communication services companies.
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.
Top Holdings (% of Fund's net assets) |
| |
| Microsoft Corp. | 9.9 | |
| UnitedHealth Group, Inc. | 5.5 | |
| Alphabet, Inc. Class A | 4.7 | |
| Apple, Inc. | 3.7 | |
| Amazon.com, Inc. | 3.1 | |
| Vertex Pharmaceuticals, Inc. | 2.8 | |
| Universal Music Group NV | 2.4 | |
| Warner Music Group Corp. Class A | 2.0 | |
| The Coca-Cola Co. | 1.9 | |
| Eli Lilly & Co. | 1.9 | |
| | 37.9 | |
| |
| Market Sectors (% of Fund's net assets) |
| |
| Information Technology | 25.9 | |
| Health Care | 20.2 | |
| Communication Services | 12.1 | |
| Consumer Discretionary | 10.5 | |
| Industrials | 9.9 | |
| Financials | 6.2 | |
| Energy | 5.4 | |
| Consumer Staples | 4.5 | |
| Materials | 3.7 | |
| Real Estate | 0.1 | |
| Utilities | 0.0 | |
| |
Asset Allocation (% of Fund's net assets) |
|
Foreign investments - 10.5% |
|
Geographic Diversification (% of Fund's net assets) |
|
* Includes Short-Term investments and Net Other Assets (Liabilities). Percentages are based on country or territory of incorporation and are adjusted for the effect of derivatives, if applicable. |
| |
Showing Percentage of Net Assets
| Common Stocks - 98.1% |
| | | Shares | Value ($) |
| COMMUNICATION SERVICES - 12.1% | | | |
| Entertainment - 4.8% | | | |
| Liberty Media Corp. Liberty Formula One Series C (a) | | 256,168 | 15,313,723 |
| Netflix, Inc. (a) | | 39,800 | 11,736,224 |
| Universal Music Group NV (b) | | 6,456,571 | 156,137,255 |
| Warner Music Group Corp. Class A | | 3,879,875 | 135,873,223 |
| | | | 319,060,425 |
| Interactive Media & Services - 6.5% | | | |
| Alphabet, Inc. Class A (a) | | 3,547,700 | 313,013,571 |
| Bumble, Inc. (a) | | 583,990 | 12,292,990 |
| Epic Games, Inc. (a)(c)(d) | | 5,869 | 4,786,287 |
| Meta Platforms, Inc. Class A (a) | | 780,518 | 93,927,536 |
| Zoominfo Technologies, Inc. (a) | | 355,701 | 10,710,157 |
| | | | 434,730,541 |
| Media - 0.8% | | | |
| Charter Communications, Inc. Class A (a) | | 153,100 | 51,916,210 |
| Innovid Corp. (a)(c) | | 432,557 | 739,672 |
| | | | 52,655,882 |
TOTAL COMMUNICATION SERVICES | | | 806,446,848 |
| CONSUMER DISCRETIONARY - 10.5% | | | |
| Auto Components - 0.0% | | | |
| Mobileye Global, Inc. | | 61,800 | 2,166,708 |
| Automobiles - 0.6% | | | |
| Ferrari NV | | 201,189 | 43,098,708 |
| XPeng, Inc. ADR (a)(b) | | 34,600 | 343,924 |
| | | | 43,442,632 |
| Diversified Consumer Services - 0.2% | | | |
| Laureate Education, Inc. Class A | | 1,579,719 | 15,196,897 |
| Hotels, Restaurants & Leisure - 1.3% | | | |
| Airbnb, Inc. Class A (a) | | 417,800 | 35,721,900 |
| Chipotle Mexican Grill, Inc. (a) | | 10,841 | 15,041,779 |
| Flutter Entertainment PLC (a) | | 281,200 | 38,381,116 |
| | | | 89,144,795 |
| Household Durables - 0.0% | | | |
| Blu Investments LLC (a)(c)(d) | | 14,533,890 | 4,506 |
| Internet & Direct Marketing Retail - 4.9% | | | |
| Amazon.com, Inc. (a) | | 2,465,622 | 207,112,248 |
| Uber Technologies, Inc. (a) | | 4,782,905 | 118,281,241 |
| | | | 325,393,489 |
| Multiline Retail - 0.1% | | | |
| Dollarama, Inc. | | 69,800 | 4,082,321 |
| Specialty Retail - 2.2% | | | |
| Aritzia, Inc. (a) | | 119,894 | 4,192,748 |
| Five Below, Inc. (a) | | 305,500 | 54,033,785 |
| TJX Companies, Inc. | | 694,800 | 55,306,080 |
| Victoria's Secret & Co. (a) | | 882,400 | 31,572,272 |
| | | | 145,104,885 |
| Textiles, Apparel & Luxury Goods - 1.2% | | | |
| LVMH Moet Hennessy Louis Vuitton SE | | 56,358 | 41,011,338 |
| On Holding AG (a) | | 20,300 | 348,348 |
| Samsonite International SA (a)(e) | | 13,712,700 | 36,005,530 |
| | | | 77,365,216 |
TOTAL CONSUMER DISCRETIONARY | | | 701,901,449 |
| CONSUMER STAPLES - 4.5% | | | |
| Beverages - 4.5% | | | |
| Boston Beer Co., Inc. Class A (a) | | 73,900 | 24,351,528 |
| Constellation Brands, Inc. Class A (sub. vtg.) | | 165,600 | 38,377,800 |
| Keurig Dr. Pepper, Inc. | | 1,061,000 | 37,835,260 |
| Monster Beverage Corp. (a) | | 655,647 | 66,567,840 |
| The Coca-Cola Co. | | 2,040,824 | 129,816,815 |
| | | | 296,949,243 |
| Household Products - 0.0% | | | |
| Energizer Holdings, Inc. | | 40,100 | 1,345,355 |
TOTAL CONSUMER STAPLES | | | 298,294,598 |
| ENERGY - 5.4% | | | |
| Energy Equipment & Services - 1.2% | | | |
| Baker Hughes Co. Class A | | 1,209,800 | 35,725,394 |
| Cactus, Inc. | | 192,600 | 9,680,076 |
| Championx Corp. | | 718,100 | 20,817,719 |
| Helmerich & Payne, Inc. | | 192,300 | 9,532,311 |
| TechnipFMC PLC (a) | | 114,122 | 1,391,147 |
| | | | 77,146,647 |
| Oil, Gas & Consumable Fuels - 4.2% | | | |
| Canadian Natural Resources Ltd. | | 474,300 | 26,337,879 |
| Cheniere Energy, Inc. | | 594,826 | 89,200,107 |
| Denbury, Inc. (a) | | 158,900 | 13,827,478 |
| New Fortress Energy, Inc. | | 415,400 | 17,621,268 |
| Ovintiv, Inc. | | 124,700 | 6,323,537 |
| Range Resources Corp. | | 885,100 | 22,145,202 |
| Reliance Industries Ltd. | | 3,437,252 | 105,507,254 |
| | | | 280,962,725 |
TOTAL ENERGY | | | 358,109,372 |
| FINANCIALS - 6.2% | | | |
| Banks - 1.1% | | | |
| Bank of America Corp. | | 1,814,000 | 60,079,680 |
| HDFC Bank Ltd. (a) | | 196,906 | 3,861,350 |
| Signature Bank | | 65,000 | 7,489,300 |
| | | | 71,430,330 |
| Capital Markets - 2.4% | | | |
| CME Group, Inc. | | 748,922 | 125,938,724 |
| MSCI, Inc. | | 66,900 | 31,119,873 |
| | | | 157,058,597 |
| Insurance - 2.7% | | | |
| American Financial Group, Inc. | | 276,568 | 37,967,255 |
| Arthur J. Gallagher & Co. | | 424,730 | 80,078,594 |
| BRP Group, Inc. (a) | | 438,068 | 11,013,030 |
| Marsh & McLennan Companies, Inc. | | 311,300 | 51,513,924 |
| | | | 180,572,803 |
| Thrifts & Mortgage Finance - 0.0% | | | |
| Rocket Companies, Inc. (b) | | 540,254 | 3,781,778 |
TOTAL FINANCIALS | | | 412,843,508 |
| HEALTH CARE - 20.2% | | | |
| Biotechnology - 6.7% | | | |
| 2seventy bio, Inc. (a) | | 87,100 | 816,127 |
| Adamas Pharmaceuticals, Inc.: | | | |
| rights (a)(d) | | 1,781,700 | 481,059 |
| rights (a)(d) | | 1,781,700 | 160,353 |
| Affimed NV (a) | | 594,887 | 737,660 |
| Alnylam Pharmaceuticals, Inc. (a) | | 188,600 | 44,820,790 |
| Applied Therapeutics, Inc. (a) | | 92,711 | 70,460 |
| Arcellx, Inc. | | 64,200 | 1,988,916 |
| Beam Therapeutics, Inc. (a)(b) | | 60,870 | 2,380,626 |
| Cytokinetics, Inc. (a) | | 176,031 | 8,065,740 |
| EQRx, Inc. (a) | | 433,699 | 1,066,900 |
| Erasca, Inc. (a) | | 165,900 | 715,029 |
| Evelo Biosciences, Inc. (a) | | 466,900 | 751,709 |
| Galapagos NV sponsored ADR (a) | | 453,500 | 20,126,330 |
| Gamida Cell Ltd. (a)(b) | | 2,327,317 | 3,002,239 |
| Genmab A/S (a) | | 17,800 | 7,525,747 |
| Hookipa Pharma, Inc. (a) | | 1,185,700 | 960,417 |
| Immunocore Holdings PLC ADR (a) | | 171,800 | 9,804,626 |
| Innovent Biologics, Inc. (a)(e) | | 870,500 | 3,704,940 |
| Insmed, Inc. (a)(b) | | 743,216 | 14,849,456 |
| Legend Biotech Corp. ADR (a) | | 139,400 | 6,958,848 |
| Prelude Therapeutics, Inc. (a) | | 30,200 | 182,408 |
| Regeneron Pharmaceuticals, Inc. (a) | | 111,731 | 80,612,799 |
| Rubius Therapeutics, Inc. (a) | | 134,856 | 23,209 |
| Seagen, Inc. (a) | | 301,300 | 38,720,063 |
| Seres Therapeutics, Inc. (a) | | 405,600 | 2,271,360 |
| Synlogic, Inc. (a) | | 1,192,500 | 906,300 |
| Vertex Pharmaceuticals, Inc. (a) | | 640,150 | 184,862,517 |
| Vor Biopharma, Inc. (a) | | 618,395 | 4,112,327 |
| XOMA Corp. (a)(b) | | 384,500 | 7,074,800 |
| | | | 447,753,755 |
| Health Care Equipment & Supplies - 1.0% | | | |
| Boston Scientific Corp. (a) | | 1,027,000 | 47,519,290 |
| Insulet Corp. (a) | | 7,900 | 2,325,681 |
| Nevro Corp. (a) | | 50,891 | 2,015,284 |
| Penumbra, Inc. (a) | | 65,500 | 14,571,130 |
| | | | 66,431,385 |
| Health Care Providers & Services - 6.8% | | | |
| Guardant Health, Inc. (a) | | 452,000 | 12,294,400 |
| HealthEquity, Inc. (a) | | 1,152,896 | 71,064,509 |
| Option Care Health, Inc. (a) | | 58,800 | 1,769,292 |
| UnitedHealth Group, Inc. | | 698,559 | 370,362,011 |
| | | | 455,490,212 |
| Health Care Technology - 0.3% | | | |
| Certara, Inc. (a) | | 628,210 | 10,095,335 |
| Doximity, Inc. (a) | | 100,011 | 3,356,369 |
| Simulations Plus, Inc. (b) | | 111,870 | 4,091,086 |
| | | | 17,542,790 |
| Life Sciences Tools & Services - 2.6% | | | |
| Bio-Techne Corp. | | 224,400 | 18,598,272 |
| Bruker Corp. | | 507,020 | 34,654,817 |
| Charles River Laboratories International, Inc. (a) | | 34,765 | 7,575,294 |
| Codexis, Inc. (a) | | 525,700 | 2,449,762 |
| Danaher Corp. | | 283,135 | 75,149,692 |
| Nanostring Technologies, Inc. (a) | | 111,500 | 888,655 |
| Thermo Fisher Scientific, Inc. | | 57,800 | 31,829,882 |
| | | | 171,146,374 |
| Pharmaceuticals - 2.8% | | | |
| Aclaris Therapeutics, Inc. (a) | | 236,500 | 3,724,875 |
| AstraZeneca PLC sponsored ADR | | 642,000 | 43,527,600 |
| Eli Lilly & Co. | | 346,646 | 126,816,973 |
| Nuvation Bio, Inc. (a) | | 326,843 | 627,539 |
| Revance Therapeutics, Inc. (a)(b) | | 608,681 | 11,236,251 |
| | | | 185,933,238 |
TOTAL HEALTH CARE | | | 1,344,297,754 |
| INDUSTRIALS - 9.9% | | | |
| Aerospace & Defense - 3.2% | | | |
| Axon Enterprise, Inc. (a) | | 103,600 | 17,190,348 |
| Northrop Grumman Corp. | | 116,000 | 63,290,760 |
| Spirit AeroSystems Holdings, Inc. Class A | | 1,173,000 | 34,720,800 |
| The Boeing Co. (a) | | 503,900 | 95,987,911 |
| | | | 211,189,819 |
| Electrical Equipment - 1.5% | | | |
| AMETEK, Inc. | | 167,100 | 23,347,212 |
| Bloom Energy Corp. Class A (a)(b) | | 119,000 | 2,275,280 |
| Eaton Corp. PLC | | 53,206 | 8,350,682 |
| Hubbell, Inc. Class B | | 63,599 | 14,925,413 |
| Rockwell Automation, Inc. | | 185,000 | 47,650,450 |
| | | | 96,549,037 |
| Industrial Conglomerates - 0.8% | | | |
| General Electric Co. | | 623,400 | 52,234,686 |
| Machinery - 1.8% | | | |
| Chart Industries, Inc. (a)(b) | | 69,579 | 8,017,588 |
| Ingersoll Rand, Inc. | | 1,232,275 | 64,386,369 |
| Parker Hannifin Corp. | | 96,700 | 28,139,700 |
| Westinghouse Air Brake Tech Co. | | 191,400 | 19,103,634 |
| | | | 119,647,291 |
| Professional Services - 1.5% | | | |
| ASGN, Inc. (a) | | 156,250 | 12,731,250 |
| KBR, Inc. | | 1,464,955 | 77,349,624 |
| Kforce, Inc. | | 62,700 | 3,437,841 |
| Upwork, Inc. (a) | | 476,231 | 4,971,852 |
| | | | 98,490,567 |
| Road & Rail - 0.3% | | | |
| Old Dominion Freight Lines, Inc. | | 75,900 | 21,538,902 |
| Trading Companies & Distributors - 0.8% | | | |
| Ferguson PLC | | 441,849 | 55,767,697 |
TOTAL INDUSTRIALS | | | 655,417,999 |
| INFORMATION TECHNOLOGY - 25.8% | | | |
| IT Services - 1.6% | | | |
| Cloudflare, Inc. (a) | | 344,500 | 15,574,845 |
| MasterCard, Inc. Class A | | 148,432 | 51,614,259 |
| MongoDB, Inc. Class A (a) | | 180,818 | 35,592,215 |
| Snowflake, Inc. (a) | | 8,080 | 1,159,803 |
| | | | 103,941,122 |
| Semiconductors & Semiconductor Equipment - 4.8% | | | |
| Aixtron AG | | 764,100 | 22,059,595 |
| Allegro MicroSystems LLC (a) | | 184,876 | 5,549,978 |
| ASML Holding NV | | 60,238 | 32,914,043 |
| eMemory Technology, Inc. | | 45,000 | 1,943,588 |
| Enphase Energy, Inc. (a) | | 220,941 | 58,540,527 |
| Monolithic Power Systems, Inc. | | 11,600 | 4,101,876 |
| NVIDIA Corp. | | 561,986 | 82,128,634 |
| NXP Semiconductors NV | | 79,724 | 12,598,784 |
| Qualcomm, Inc. | | 482,149 | 53,007,461 |
| Silicon Laboratories, Inc. (a) | | 13,000 | 1,763,710 |
| SiTime Corp. (a) | | 197,600 | 20,080,112 |
| Universal Display Corp. | | 259,900 | 28,079,596 |
| | | | 322,767,904 |
| Software - 15.7% | | | |
| Adobe, Inc. (a) | | 375,004 | 126,200,096 |
| Confluent, Inc. (a)(b) | | 346,214 | 7,699,799 |
| Elastic NV (a) | | 5,300 | 272,950 |
| HashiCorp, Inc. (b) | | 261,604 | 7,152,253 |
| HubSpot, Inc. (a) | | 36,500 | 10,553,245 |
| Intuit, Inc. | | 145,820 | 56,756,060 |
| Manhattan Associates, Inc. (a) | | 271,700 | 32,984,380 |
| Microsoft Corp. | | 2,737,607 | 656,532,906 |
| Oracle Corp. | | 911,591 | 74,513,448 |
| Palo Alto Networks, Inc. (a) | | 471,500 | 65,793,110 |
| Volue A/S (a) | | 1,565,800 | 4,499,150 |
| | | | 1,042,957,397 |
| Technology Hardware, Storage & Peripherals - 3.7% | | | |
| Apple, Inc. | | 1,920,806 | 249,570,324 |
TOTAL INFORMATION TECHNOLOGY | | | 1,719,236,747 |
| MATERIALS - 3.4% | | | |
| Chemicals - 3.0% | | | |
| Albemarle Corp. | | 259,080 | 56,184,089 |
| Aspen Aerogels, Inc. (a) | | 680,200 | 8,019,558 |
| CF Industries Holdings, Inc. | | 589,114 | 50,192,513 |
| Sherwin-Williams Co. | | 360,858 | 85,642,429 |
| | | | 200,038,589 |
| Metals & Mining - 0.4% | | | |
| Lynas Rare Earths Ltd. (a) | | 2,707,873 | 14,274,595 |
| MP Materials Corp. (a)(b) | | 477,850 | 11,602,198 |
| | | | 25,876,793 |
TOTAL MATERIALS | | | 225,915,382 |
| REAL ESTATE - 0.1% | | | |
| Real Estate Management & Development - 0.1% | | | |
| Doma Holdings, Inc. (a)(c) | | 869,482 | 393,788 |
| WeWork, Inc. (a)(b) | | 3,692,325 | 5,280,025 |
| | | | 5,673,813 |
| UTILITIES - 0.0% | | | |
| Independent Power and Renewable Electricity Producers - 0.0% | | | |
| Brookfield Renewable Partners LP | | 124,400 | 3,152,296 |
| TOTAL COMMON STOCKS (Cost $4,695,153,773) | | | 6,531,289,766 |
| | | | |
| Convertible Preferred Stocks - 0.4% |
| | | Shares | Value ($) |
| HEALTH CARE - 0.0% | | | |
| Biotechnology - 0.0% | | | |
| ElevateBio LLC Series C (a)(c)(d) | | 198,400 | 726,144 |
| INFORMATION TECHNOLOGY - 0.1% | | | |
| IT Services - 0.0% | | | |
| AppNexus, Inc. Series E (Escrow) (a)(c)(d) | | 181,657 | 5,690 |
| Software - 0.1% | | | |
| ASAPP, Inc. Series C (a)(c)(d) | | 654,971 | 2,750,878 |
TOTAL INFORMATION TECHNOLOGY | | | 2,756,568 |
| MATERIALS - 0.3% | | | |
| Metals & Mining - 0.3% | | | |
| Illuminated Holdings, Inc.: | | | |
| Series C2 (a)(c)(d) | | 137,249 | 6,501,485 |
| Series C3 (a)(c)(d) | | 171,560 | 8,126,797 |
| Series C4 (a)(c)(d) | | 48,240 | 2,285,129 |
| Series C5 (a)(c)(d) | | 96,064 | 4,550,552 |
| | | | 21,463,963 |
| TOTAL CONVERTIBLE PREFERRED STOCKS (Cost $19,617,827) | | | 24,946,675 |
| | | | |
| Money Market Funds - 1.8% |
| | | Shares | Value ($) |
| Fidelity Cash Central Fund 4.37% (f) | | 78,566,936 | 78,582,650 |
| Fidelity Securities Lending Cash Central Fund 4.37% (f)(g) | | 39,138,307 | 39,142,221 |
| TOTAL MONEY MARKET FUNDS (Cost $117,724,871) | | | 117,724,871 |
| | | | |
| TOTAL INVESTMENT IN SECURITIES - 100.3% (Cost $4,832,496,471) | 6,673,961,312 |
NET OTHER ASSETS (LIABILITIES) - (0.3)% | (19,361,772) |
| NET ASSETS - 100.0% | 6,654,599,540 |
| | |
Legend
| (b) | Security or a portion of the security is on loan at period end. |
| (c) | Restricted securities (including private placements) - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $30,870,928 or 0.5% of net assets. |
| (e) | Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $39,710,470 or 0.6% of net assets. |
| (f) | Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request. |
| (g) | Investment made with cash collateral received from securities on loan. |
| Additional information on each restricted holding is as follows: |
| Security | Acquisition Date | Acquisition Cost ($) |
| AppNexus, Inc. Series E (Escrow) | 8/01/14 | 0 |
| | | |
| ASAPP, Inc. Series C | 4/30/21 | 4,320,909 |
| | | |
| Blu Investments LLC | 5/21/20 | 25,138 |
| | | |
| Doma Holdings, Inc. | 3/02/21 | 8,694,820 |
| | | |
| ElevateBio LLC Series C | 3/09/21 | 832,288 |
| | | |
| Epic Games, Inc. | 3/29/21 | 5,194,065 |
| | | |
| Illuminated Holdings, Inc. Series C2 | 7/07/20 | 3,431,225 |
| | | |
| Illuminated Holdings, Inc. Series C3 | 7/07/20 | 5,146,800 |
| | | |
| Illuminated Holdings, Inc. Series C4 | 1/08/21 | 1,736,640 |
| | | |
| Illuminated Holdings, Inc. Series C5 | 6/16/21 | 4,149,965 |
| | | |
| Innovid Corp. | 6/24/21 | 4,325,570 |
| | | |
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
| Affiliate | Value, beginning of period ($) | Purchases ($) | Sales Proceeds ($) | Dividend Income ($) | Realized Gain (loss) ($) | Change in Unrealized appreciation (depreciation) ($) | Value, end of period ($) | % ownership, end of period |
| Fidelity Cash Central Fund 4.37% | 8,407,342 | 1,339,443,990 | 1,269,268,682 | 1,051,730 | - | - | 78,582,650 | 0.2% |
| Fidelity Securities Lending Cash Central Fund 4.37% | 18,613,591 | 458,276,795 | 437,748,165 | 429,701 | - | - | 39,142,221 | 0.1% |
| Total | 27,020,933 | 1,797,720,785 | 1,707,016,847 | 1,481,431 | - | - | 117,724,871 | |
| | | | | | | | | |
Amounts in the dividend income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line item in the Statement of Operations, if applicable.
Amount for Fidelity Securities Lending Cash Central Fund represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities.
Amounts included in the purchases and sales proceeds columns may include in-kind transactions, if applicable.
Investment Valuation
The following is a summary of the inputs used, as of December 31, 2022, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: |
| Description | Total ($) | Level 1 ($) | Level 2 ($) | Level 3 ($) |
Investments in Securities: | | | | |
|
| Equities: | | | | |
Communication Services | 806,446,848 | 645,523,306 | 156,137,255 | 4,786,287 |
Consumer Discretionary | 701,901,449 | 624,880,075 | 77,016,868 | 4,506 |
Consumer Staples | 298,294,598 | 298,294,598 | - | - |
Energy | 358,109,372 | 252,602,118 | 105,507,254 | - |
Financials | 412,843,508 | 408,982,158 | 3,861,350 | - |
Health Care | 1,345,023,898 | 1,332,425,655 | 11,230,687 | 1,367,556 |
Industrials | 655,417,999 | 655,417,999 | - | - |
Information Technology | 1,721,993,315 | 1,717,293,159 | 1,943,588 | 2,756,568 |
Materials | 247,379,345 | 211,640,787 | 14,274,595 | 21,463,963 |
Real Estate | 5,673,813 | 5,673,813 | - | - |
Utilities | 3,152,296 | 3,152,296 | - | - |
|
| Money Market Funds | 117,724,871 | 117,724,871 | - | - |
| Total Investments in Securities: | 6,673,961,312 | 6,273,610,835 | 369,971,597 | 30,378,880 |
| Statement of Assets and Liabilities |
| | | | December 31, 2022 |
| | | | | |
| Assets | | | | |
| Investment in securities, at value (including securities loaned of $38,790,979) - See accompanying schedule: | $ | | | |
Unaffiliated issuers (cost $4,714,771,600) | | 6,556,236,441 | | |
Fidelity Central Funds (cost $117,724,871) | | 117,724,871 | | |
| | | | | |
| | | | | |
| Total Investment in Securities (cost $4,832,496,471) | | | $ | 6,673,961,312 |
| Foreign currency held at value (cost $1,074) | | | | 1,091 |
| Receivable for investments sold | | | | 6,639,329 |
| Receivable for fund shares sold | | | | 27,292,524 |
| Dividends receivable | | | | 4,803,245 |
| Distributions receivable from Fidelity Central Funds | | | | 401,303 |
| Prepaid expenses | | | | 8,233 |
| Other receivables | | | | 46,821 |
Total assets | | | | 6,713,153,858 |
| Liabilities | | | | |
| Payable to custodian bank | | $98,941 | | |
| Payable for investments purchased | | 7,305,591 | | |
| Payable for fund shares redeemed | | 2,005,318 | | |
| Accrued management fee | | 2,991,946 | | |
| Distribution and service plan fees payable | | 376,335 | | |
| Other affiliated payables | | 492,152 | | |
| Deferred taxes | | 6,053,870 | | |
| Other payables and accrued expenses | | 108,685 | | |
| Collateral on securities loaned | | 39,121,480 | | |
| Total Liabilities | | | | 58,554,318 |
| Net Assets | | | $ | 6,654,599,540 |
| Net Assets consist of: | | | | |
| Paid in capital | | | $ | 4,781,878,514 |
| Total accumulated earnings (loss) | | | | 1,872,721,026 |
| Net Assets | | | $ | 6,654,599,540 |
| | | | | |
| Net Asset Value and Maximum Offering Price | | | | |
| Initial Class : | | | | |
Net Asset Value , offering price and redemption price per share ($3,612,471,637 ÷ 50,514,659 shares) | | | $ | 71.51 |
| Service Class : | | | | |
Net Asset Value , offering price and redemption price per share ($878,030,564 ÷ 12,370,090 shares) | | | $ | 70.98 |
| Service Class 2 : | | | | |
Net Asset Value , offering price and redemption price per share ($1,410,220,220 ÷ 20,357,559 shares) | | | $ | 69.27 |
| Investor Class : | | | | |
Net Asset Value , offering price and redemption price per share ($753,877,119 ÷ 10,627,464 shares) | | | $ | 70.94 |
| Statement of Operations |
| | | | Year ended December 31, 2022 |
| Investment Income | | | | |
| Dividends | | | $ | 61,506,636 |
| Income from Fidelity Central Funds (including $429,701 from security lending) | | | | 1,481,431 |
| Total Income | | | | 62,988,067 |
| Expenses | | | | |
| Management fee | $ | 38,897,241 | | |
| Transfer agent fees | | 5,227,929 | | |
| Distribution and service plan fees | | 4,843,825 | | |
| Accounting fees | | 1,107,489 | | |
| Custodian fees and expenses | | 52,028 | | |
| Independent trustees' fees and expenses | | 26,033 | | |
| Audit | | 80,199 | | |
| Legal | | 10,078 | | |
| Interest | | 25,004 | | |
| Miscellaneous | | 35,042 | | |
| Total expenses before reductions | | 50,304,868 | | |
| Expense reductions | | (256,526) | | |
| Total expenses after reductions | | | | 50,048,342 |
| Net Investment income (loss) | | | | 12,939,725 |
| Realized and Unrealized Gain (Loss) | | | | |
| Net realized gain (loss) on: | | | | |
| Investment Securities: | | | | |
| Unaffiliated issuers (net of foreign taxes of $824,073) | | 290,200,516 | | |
| Foreign currency transactions | | (4,647) | | |
| Total net realized gain (loss) | | | | 290,195,869 |
| Change in net unrealized appreciation (depreciation) on: | | | | |
| Investment Securities: | | | | |
| Unaffiliated issuers (net of decrease in deferred foreign taxes of $591,466) | | (2,524,840,562) | | |
| Assets and liabilities in foreign currencies | | (9,353) | | |
| Total change in net unrealized appreciation (depreciation) | | | | (2,524,849,915) |
| Net gain (loss) | | | | (2,234,654,046) |
| Net increase (decrease) in net assets resulting from operations | | | $ | (2,221,714,321) |
| Statement of Changes in Net Assets |
| |
| | Year ended December 31, 2022 | | Year ended December 31, 2021 |
| Increase (Decrease) in Net Assets | | | | |
| Operations | | | | |
| Net investment income (loss) | $ | 12,939,725 | $ | 24,765,172 |
| Net realized gain (loss) | | 290,195,869 | | 1,145,778,049 |
| Change in net unrealized appreciation (depreciation) | | (2,524,849,915) | | 612,872,621 |
| Net increase (decrease) in net assets resulting from operations | | (2,221,714,321) | | 1,783,415,842 |
| Distributions to shareholders | | (593,948,127) | | (1,793,757,552) |
| Share transactions - net increase (decrease) | | 238,529,974 | | 1,310,351,053 |
| Total increase (decrease) in net assets | | (2,577,132,474) | | 1,300,009,343 |
| | | | | |
| Net Assets | | | | |
| Beginning of period | | 9,231,732,014 | | 7,931,722,671 |
| End of period | $ | 6,654,599,540 | $ | 9,231,732,014 |
| | | | | |
| | | | | |
Financial Highlights
| VIP Growth Portfolio Initial Class |
| |
| Years ended December 31, | | 2022 | | 2021 | | 2020 | | 2019 | | 2018 |
Selected Per-Share Data | | | | | | | | | | |
| Net asset value, beginning of period | $ | 102.43 | $ | 103.00 | $ | 79.09 | $ | 63.12 | $ | 74.05 |
| Income from Investment Operations | | | | | | | | | | |
Net investment income (loss) A,B | | .20 | | .37 C | | .01 | | .18 | | .21 |
| Net realized and unrealized gain (loss) | | (24.46) | | 21.52 | | 32.21 | | 20.42 | | (.25) D |
| Total from investment operations | | (24.26) | | 21.89 | | 32.22 | | 20.60 | | (.04) |
| Distributions from net investment income | | (.51) | | - | | (.07) | | (.19) | | (.18) |
| Distributions from net realized gain | | (6.15) | | (22.46) | | (8.25) | | (4.44) | | (10.72) |
| Total distributions | | (6.66) | | (22.46) | | (8.31) E | | (4.63) | | (10.89) E |
| Net asset value, end of period | $ | 71.51 | $ | 102.43 | $ | 103.00 | $ | 79.09 | $ | 63.12 |
Total Return F,G | | (24.46)% | | 23.21% | | 43.89% | | 34.31% | | (.17)% D |
Ratios to Average Net Assets B,H,I | | | | | | | | | | |
| Expenses before reductions | | .61% | | .61% | | .62% | | .63% | | .63% |
| Expenses net of fee waivers, if any | | .60% | | .60% | | .62% | | .62% | | .63% |
| Expenses net of all reductions | | .60% | | .60% | | .61% | | .62% | | .62% |
| Net investment income (loss) | | .25% | | .36% C | | .02% | | .25% | | .30% |
| Supplemental Data | | | | | | | | | | |
| Net assets, end of period (000 omitted) | $ | 3,612,472 | $ | 5,103,811 | $ | 4,533,075 | $ | 3,441,605 | $ | 2,869,484 |
Portfolio turnover rate J | | 36% | | 45% | | 53% | | 47% | | 34% |
A Calculated based on average shares outstanding during the period.
B Net investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any mutual funds or ETFs is not included in the Fund's net investment income (loss) ratio.
C Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.30 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been .07%.
D Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.02 per share. Excluding these litigation proceeds, the total return would have been (.20)%.
E Total distributions per share do not sum due to rounding.
F Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H 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.
I 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.
J Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
| VIP Growth Portfolio Service Class |
| |
| Years ended December 31, | | 2022 | | 2021 | | 2020 | | 2019 | | 2018 |
Selected Per-Share Data | | | | | | | | | | |
| Net asset value, beginning of period | $ | 101.70 | $ | 102.42 | $ | 78.69 | $ | 62.83 | $ | 73.76 |
| Income from Investment Operations | | | | | | | | | | |
Net investment income (loss) A,B | | .12 | | .27 C | | (.07) | | .11 | | .14 |
| Net realized and unrealized gain (loss) | | (24.28) | | 21.37 | | 32.03 | | 20.31 | | (.25) D |
| Total from investment operations | | (24.16) | | 21.64 | | 31.96 | | 20.42 | | (.11) |
| Distributions from net investment income | | (.42) | | - | | (.05) | | (.12) | | (.11) |
| Distributions from net realized gain | | (6.15) | | (22.36) | | (8.18) | | (4.44) | | (10.72) |
| Total distributions | | (6.56) E | | (22.36) | | (8.23) | | (4.56) | | (10.82) E |
| Net asset value, end of period | $ | 70.98 | $ | 101.70 | $ | 102.42 | $ | 78.69 | $ | 62.83 |
Total Return F,G | | (24.52)% | | 23.08% | | 43.77% | | 34.17% | | (.27)% D |
Ratios to Average Net Assets B,H,I | | | | | | | | | | |
| Expenses before reductions | | .71% | | .71% | | .72% | | .73% | | .73% |
| Expenses net of fee waivers, if any | | .70% | | .70% | | .72% | | .72% | | .73% |
| Expenses net of all reductions | | .70% | | .70% | | .71% | | .72% | | .72% |
| Net investment income (loss) | | .15% | | .26% C | | (.08)% | | .15% | | .20% |
| Supplemental Data | | | | | | | | | | |
| Net assets, end of period (000 omitted) | $ | 878,031 | $ | 1,176,735 | $ | 1,018,192 | $ | 745,767 | $ | 600,590 |
Portfolio turnover rate J | | 36% | | 45% | | 53% | | 47% | | 34% |
A Calculated based on average shares outstanding during the period.
B Net investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any mutual funds or ETFs is not included in the Fund's net investment income (loss) ratio.
C Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.30 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been (.03)%.
D Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.02 per share. Excluding these litigation proceeds, the total return would have been (.30)%.
E Total distributions per share do not sum due to rounding.
F Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H 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.
I 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.
J Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
| VIP Growth Portfolio Service Class 2 |
| |
| Years ended December 31, | | 2022 | | 2021 | | 2020 | | 2019 | | 2018 |
Selected Per-Share Data | | | | | | | | | | |
| Net asset value, beginning of period | $ | 99.42 | $ | 100.58 | $ | 77.43 | $ | 61.91 | $ | 72.86 |
| Income from Investment Operations | | | | | | | | | | |
Net investment income (loss) A,B | | - C | | .11 D | | (.19) | | - C | | .03 |
| Net realized and unrealized gain (loss) | | (23.72) | | 20.95 | | 31.46 | | 20.00 | | (.23) E |
| Total from investment operations | | (23.72) | | 21.06 | | 31.27 | | 20.00 | | (.20) |
| Distributions from net investment income | | (.28) | | - | | (.04) | | (.04) | | (.03) |
| Distributions from net realized gain | | (6.15) | | (22.22) | | (8.08) | | (4.44) | | (10.72) |
| Total distributions | | (6.43) | | (22.22) | | (8.12) | | (4.48) | | (10.75) |
| Net asset value, end of period | $ | 69.27 | $ | 99.42 | $ | 100.58 | $ | 77.43 | $ | 61.91 |
Total Return F,G | | (24.64)% | | 22.90% | | 43.55% | | 33.98% | | (.43)% E |
Ratios to Average Net Assets B,H,I | | | | | | | | | | |
| Expenses before reductions | | .86% | | .85% | | .87% | | .88% | | .88% |
| Expenses net of fee waivers, if any | | .85% | | .85% | | .87% | | .87% | | .88% |
| Expenses net of all reductions | | .85% | | .85% | | .86% | | .87% | | .87% |
| Net investment income (loss) | | -% J | | .11% D | | (.23)% | | -% J | | .05% |
| Supplemental Data | | | | | | | | | | |
| Net assets, end of period (000 omitted) | $ | 1,410,220 | $ | 1,941,161 | $ | 1,587,581 | $ | 1,182,162 | $ | 971,010 |
Portfolio turnover rate K | | 36% | | 45% | | 53% | | 47% | | 34% |
A Calculated based on average shares outstanding during the period.
B Net investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any mutual funds or ETFs is not included in the Fund's net investment income (loss) ratio.
C Amount represents less than $.005 per share.
D Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.29 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been (.18)%.
E Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.02 per share. Excluding these litigation proceeds, the total return would have been (.46)%.
F Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H 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.
I 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.
J Amount represents less than .005%.
K Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
| VIP Growth Portfolio Investor Class |
| |
| Years ended December 31, | | 2022 | | 2021 | | 2020 | | 2019 | | 2018 |
Selected Per-Share Data | | | | | | | | | | |
| Net asset value, beginning of period | $ | 101.65 | $ | 102.38 | $ | 78.66 | $ | 62.81 | $ | 73.73 |
| Income from Investment Operations | | | | | | | | | | |
Net investment income (loss) A,B | | .14 | | .29 C | | (.05) | | .12 | | .15 |
| Net realized and unrealized gain (loss) | | (24.26) | | 21.37 | | 32.02 | | 20.30 | | (.23) D |
| Total from investment operations | | (24.12) | | 21.66 | | 31.97 | | 20.42 | | (.08) |
| Distributions from net investment income | | (.44) | | - | | (.06) | | (.13) | | (.12) |
| Distributions from net realized gain | | (6.15) | | (22.39) | | (8.20) | | (4.44) | | (10.72) |
| Total distributions | | (6.59) | | (22.39) | | (8.25) E | | (4.57) | | (10.84) |
| Net asset value, end of period | $ | 70.94 | $ | 101.65 | $ | 102.38 | $ | 78.66 | $ | 62.81 |
Total Return F,G | | (24.50)% | | 23.12% | | 43.80% | | 34.18% | | (.24)% D |
Ratios to Average Net Assets B,H,I | | | | | | | | | | |
| Expenses before reductions | | .68% | | .68% | | .70% | | .70% | | .71% |
| Expenses net of fee waivers, if any | | .68% | | .68% | | .70% | | .70% | | .71% |
| Expenses net of all reductions | | .68% | | .68% | | .69% | | .70% | | .70% |
| Net investment income (loss) | | .17% | | .28% C | | (.06)% | | .17% | | .22% |
| Supplemental Data | | | | | | | | | | |
| Net assets, end of period (000 omitted) | $ | 753,877 | $ | 1,010,025 | $ | 792,875 | $ | 547,920 | $ | 457,395 |
Portfolio turnover rate J | | 36% | | 45% | | 53% | | 47% | | 34% |
A Calculated based on average shares outstanding during the period.
B Net investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any mutual funds or ETFs is not included in the Fund's net investment income (loss) ratio.
C Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.30 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been (.01)%.
D Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.02 per share. Excluding these litigation proceeds, the total return would have been (.27)%.
E Total distributions per share do not sum due to rounding.
F Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H 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.
I 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.
J Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
For the period ended December 31, 2022
1. Organization.
VIP Growth Portfolio (the Fund) is a fund of Variable Insurance Products Fund (the Trust) and is authorized to issue an unlimited number of shares. 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. Shares of the Fund may only be purchased by insurance companies for the purpose of funding variable annuity or variable life insurance contracts. The Fund offers the following classes of shares: Initial Class 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.
The Board of Trustees has approved, subject to shareholder approval, a proposal to reclassify the Fund as a non-diversified fund.
2. Investments in Fidelity Central Funds.
Funds may 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 Schedule of Investments lists any Fidelity Central Funds held as an investment as of period end, but does not include the underlying holdings of each Fidelity Central Fund. An investing fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
Based on its investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the investing fund. These strategies are consistent with the investment objectives of the investing fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the investing fund.
| Fidelity Central Fund | Investment Manager | Investment Objective | Investment Practices | Expense Ratio A |
| Fidelity Money Market Central Funds | Fidelity Management & Research Company LLC (FMR) | Each fund seeks to obtain a high level of current income consistent with the preservation of capital and liquidity. | Short-term Investments | Less than .005% |
A Expenses expressed as a percentage of average net assets and are as of each underlying Central Fund's most recent annual or semi-annual shareholder report.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including investment valuation policies) of those funds, and are not covered by the Report of Independent Registered Public Accounting Firm, are available on the Securities and Exchange Commission website or upon request.
3. Significant Accounting Policies.
The 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 Fund's Schedule of Investments lists any underlying mutual funds or exchange-traded funds (ETFs) but does not include the underlying holdings of these funds. The following summarizes the significant accounting policies of the Fund:
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 designated the Fund's investment adviser as the valuation designee responsible for the fair valuation function and performing fair value determinations as needed. The investment adviser has established a Fair Value Committee (the Committee) to carry out the day-to-day fair valuation responsibilities and has adopted policies and procedures to govern the fair valuation process and the activities of the Committee. In accordance with these fair valuation policies and procedures, which have been approved by the Board, the Fund attempts to obtain prices from one or more third party pricing services 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 the policies and procedures. Factors used in determining fair value vary by investment type and may include market or investment specific events, transaction data, estimated cash flows, and market observations of comparable investments. The frequency that the fair valuation procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee manages the Fund's fair valuation practices and maintains the fair valuation policies and procedures. The Fund's investment adviser reports to the Board information regarding the fair valuation process and related material matters.
The 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 - unadjusted 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 the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, ETFs and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of December 31, 2022 is included at the end of the Fund's Schedule of Investments.
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.
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 realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's 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 and include proceeds received from litigation. Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of a fund include an amount in addition to trade execution, which may be rebated back to a fund. Any such rebates are included in net realized gain (loss) on investments in the Statement of Operations. 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 Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines 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. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. Funds may file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. Any withholding tax reclaims income is included in the Statement of Operations in dividends. Any receivables for withholding tax reclaims are included in the Statement of Assets and Liabilities in dividends receivable.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of a 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 a fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred, as applicable. Certain expense reductions may also differ by class, if applicable. 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 that fund and do not include any expenses associated with any underlying mutual funds or exchange-traded funds. Although not included in a fund's expenses, a fund indirectly bears its proportionate share of these expenses through the net asset value of each underlying mutual fund or exchange-traded fund. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan) for certain Funds, certain independent Trustees have elected to defer receipt of a portion of their annual compensation. Deferred amounts are invested in affiliated mutual funds, are marked-to-market and remain in a fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees presented below are included in the accompanying Statement of Assets and Liabilities in other receivables and other payables and accrued expenses, as applicable.
| VIP Growth Portfolio | $29,370 |
Income Tax Information and Distributions to Shareholders. Each year, the 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, 2022, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the 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. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The 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 the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. The Fund is subject to a tax imposed on capital gains by certain countries in which it invests. An estimated deferred tax liability for net unrealized appreciation on the applicable securities is included in Other payables and accrued expenses on the Statement of Assets & Liabilities.
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 foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), partnerships and losses deferred due to wash sales and excise tax regulations.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
| Gross unrealized appreciation | $2,246,236,546 |
| Gross unrealized depreciation | (413,595,309) |
| Net unrealized appreciation (depreciation) | $1,832,641,237 |
| Tax Cost | $4,841,320,075 |
The tax-based components of distributable earnings as of period end were as follows:
| Undistributed ordinary income | $184,695 |
| Undistributed long-term capital gain | $45,959,510 |
| Net unrealized appreciation (depreciation) on securities and other investments | $1,832,630,688 |
The tax character of distributions paid was as follows:
| | December 31, 2022 | December 31, 2021 |
| Ordinary Income | $39,702,434 | $262,948,870 |
| Long-term Capital Gains | 554,245,693 | 1,530,808,682 |
| Total | $593,948,127 | $1,793,757,552 |
Restricted Securities (including Private Placements). Funds may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities held at period end is included at the end of the Schedule of Investments, if applicable.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, as applicable, are noted in the table below.
| | Purchases ($) | Sales ($) |
| VIP Growth Portfolio | 2,693,707,998 | 3,131,639,651 |
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company LLC (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .23% during the period. The group fee rate is based upon the monthly average net assets of a group of registered investment companies with which the investment adviser has management contracts. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annual management fee rate was .53% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has 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 re-allowed to insurance companies for the distribution of shares and providing shareholder support services, were as follows:
| Service Class | $949,546 |
| Service Class 2 | 3,894,279 |
| | $4,843,825 |
Transfer Agent Fees. Fidelity Investments Institutional Operations Company LLC (FIIOC), an affiliate of the investment adviser, is the Fund's transfer, dividend disbursing, and shareholder servicing agent. FIIOC receives an asset-based fee with respect to each class. Each class pays a fee for transfer agent services, typesetting and printing and mailing of shareholder reports, excluding mailing of proxy statements. For the period, transfer agent fees for each class were as follows:
| | Amount | % of Class-Level Average Net Assets |
| Initial Class | $2,532,596 | .06 |
| Service Class | 592,454 | .06 |
| Service Class 2 | 971,884 | .06 |
| Investor Class | 1,130,995 | .14 |
| | $5,227,929 | |
Accounting Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. For the period, the fees were equivalent to the following annual rates:
| | % of Average Net Assets |
| VIP Growth Portfolio | .01 |
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:
| | Amount |
| VIP Growth Portfolio | $50,574 |
Interfund Lending Program. Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (the SEC), the 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 the 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 Rate | Interest Expense |
| VIP Growth Portfolio | Borrower | $10,977,848 | 1.63% | $22,845 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Any interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note. Interfund trades during the period are noted in the table below.
| | Purchases ($) | Sales ($) | Realized Gain (Loss) ($) |
| VIP Growth Portfolio | 153,527,432 | 166,087,775 | 8,368,792 |
6. Committed Line of Credit.
Certain Funds participate with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which are reflected in Miscellaneous expenses on the Statement of Operations, and are listed below. During the period, there were no borrowings on this line of credit.
| | Amount |
| VIP Growth Portfolio | $13,511 |
7. Security Lending.
Funds lend portfolio securities from time to time in order to earn additional income. Lending agents are used, including National Financial Services (NFS), an affiliate of the investment adviser. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of a fund's daily lending revenue, for its services as lending agent. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, a fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of a fund and any additional required collateral is delivered to a fund on the next business day. A fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund may apply collateral received from the borrower against the obligation. A fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Affiliated security lending activity, if any, was as follows:
| | Total Security Lending Fees Paid to NFS | Security Lending Income From Securities Loaned to NFS | Value of Securities Loaned to NFS at Period End |
| VIP Growth Portfolio | $45,009 | $1,180 | $44,160 |
8. Bank Borrowings.
The Fund is permitted to have bank borrowings for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity requirements. The 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 Balance | Weighted Average Interest Rate | Interest Expense |
| VIP Growth Portfolio | $6,328,714 | 1.75% | $2,159 |
9. Expense Reductions.
Through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, custodian credits reduced the Fund's expenses by $417.
In addition, during the period the investment adviser or an affiliate reimbursed and/or waived a portion of fund-level operating expenses in the amount of $256,109.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| | Year ended December 31, 2022 | Year ended December 31, 2021 |
| VIP Growth Portfolio | | |
| Distributions to shareholders | | |
| Initial Class | $327,242,195 | $1,004,167,547 |
| Service Class | 76,304,030 | 229,154,517 |
| Service Class 2 | 124,813,908 | 372,447,117 |
| Investor Class | 65,587,994 | 187,988,371 |
Total | $593,948,127 | $1,793,757,552 |
11. Share Transactions.
Transactions for each class of shares were as follows and may contain in-kind transactions:
| | Shares | Shares | Dollars | Dollars |
| | Year ended December 31, 2022 | Year ended December 31, 2021 | Year ended December 31, 2022 | Year ended December 31, 2021 |
| VIP Growth Portfolio | | | | |
| Initial Class | | | | |
| Shares sold | 3,357,698 | 1,500,845 | $269,447,445 | $154,353,263 |
| Reinvestment of distributions | 3,960,831 | 10,041,255 | 327,242,195 | 1,004,167,547 |
| Shares redeemed | (6,632,085) | (5,724,689) | (539,302,844) | (592,742,913) |
| Net increase (decrease) | 686,444 | 5,817,411 | $57,386,796 | $565,777,897 |
| Service Class | | | | |
| Shares sold | 1,422,893 | 663,784 | $111,903,088 | $68,529,797 |
| Reinvestment of distributions | 931,059 | 2,306,433 | 76,304,030 | 229,154,517 |
| Shares redeemed | (1,554,017) | (1,341,622) | (126,719,809) | (137,215,055) |
| Net increase (decrease) | 799,935 | 1,628,595 | $61,487,309 | $160,469,259 |
| Service Class 2 | | | | |
| Shares sold | 2,016,536 | 2,396,982 | $158,300,940 | $239,091,093 |
| Reinvestment of distributions | 1,556,899 | 3,827,850 | 124,813,908 | 372,447,117 |
| Shares redeemed | (2,741,205) | (2,484,467) | (219,822,709) | (248,399,937) |
| Net increase (decrease) | 832,230 | 3,740,365 | $63,292,139 | $363,138,273 |
| Investor Class | | | | |
| Shares sold | 1,313,073 | 1,085,907 | $104,900,921 | $113,031,177 |
| Reinvestment of distributions | 801,097 | 1,890,418 | 65,587,994 | 187,988,371 |
| Shares redeemed | (1,422,870) | (784,776) | (114,125,185) | (80,053,924) |
| Net increase (decrease) | 691,300 | 2,191,549 | $56,363,730 | $220,965,624 |
12. Other.
A fund's 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 fund. In the normal course of business, a fund may also enter into contracts that provide general indemnifications. A fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against a fund. The risk of material loss from such claims is considered remote.
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% of the outstanding shares as follows:
| Fund | Affiliated % | Number ofUnaffiliated Shareholders | Unaffiliated Shareholders % |
| VIP Growth Portfolio | 19% | 2 | 38% |
13. Risk and Uncertainties.
Many factors affect a fund's performance. Developments that disrupt global economies and financial markets, such as pandemics, epidemics, outbreaks of infectious diseases, war, terrorism, and environmental disasters, may significantly affect a fund's investment performance. The effects of these developments to a fund will be impacted by the types of securities in which a fund invests, the financial condition, industry, economic sector, and geographic location of an issuer, and a fund's level of investment in the securities of that issuer.
To the Board of Trustees of Variable Insurance Products Fund and Shareholders of VIP Growth Portfolio
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of VIP Growth Portfolio (one of the funds constituting Variable Insurance Products Fund, referred to hereafter as the "Fund") as of December 31, 2022, the related statement of operations for the year ended December 31, 2022, the statement of changes in net assets for each of the two years in the period ended December 31, 2022, including the related notes, and the financial highlights for each of the five years in the period ended December 31, 2022 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of December 31, 2022, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended December 31, 2022 and the financial highlights for each of the five years in the period ended December 31, 2022 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's 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 Fund 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, 2022 by correspondence with the custodian, issuers of privately offered securities 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 opinion.
/s/ PricewaterhouseCoopers LLP
Boston, Massachusetts
February 14, 2023
We have served as the auditor of one or more investment companies in the Fidelity group of funds since 1932.
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Jonathan Chiel, each of the Trustees oversees 318 funds. Mr. Chiel oversees 186 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 fund 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.
The 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 the 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 fund, is provided below.
Board Structure and Oversight Function. Robert A. Lawrence is an interested person and currently serves as Chair. The Trustees have determined that an interested Chair is appropriate and benefits shareholders because an interested Chair has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chair, 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 Chair 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. David M. Thomas serves as Lead Independent Trustee 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 fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and other equity funds. The asset allocation funds may invest in Fidelity ® funds overseen by the fund's Board. 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, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's 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 fund's 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 fund are carried out by or through FMR, its affiliates, and other service providers, the fund's 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 fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's 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.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Jonathan Chiel (1957)
Year of Election or Appointment: 2016
Trustee
Mr. Chiel also serves as Trustee of other Fidelity ® funds. Mr. Chiel is Executive Vice President and General Counsel for FMR LLC (diversified financial services company, 2012-present). Previously, Mr. Chiel served as general counsel (2004-2012) and senior vice president and deputy general counsel (2000-2004) for John Hancock Financial Services; a partner with Choate, Hall & Stewart (1996-2000) (law firm); and an Assistant United States Attorney for the United States Attorney's Office of the District of Massachusetts (1986-95), including Chief of the Criminal Division (1993-1995). Mr. Chiel is a director on the boards of the Boston Bar Foundation and the Maimonides School.
Bettina Doulton (1964)
Year of Election or Appointment: 2021
Trustee
Ms. Doulton also serves as Trustee of other Fidelity ® funds. Prior to her retirement, Ms. Doulton served in a variety of positions at Fidelity Investments, including as a managing director of research (2006-2007), portfolio manager to certain Fidelity ® funds (1993-2005), equity analyst and portfolio assistant (1990-1993), and research assistant (1987-1990). Ms. Doulton currently owns and operates Phi Builders + Architects and Cellardoor Winery. Previously, Ms. Doulton served as a member of the Board of Brown Capital Management, LLC (2014-2018).
Robert A. Lawrence (1952)
Year of Election or Appointment: 2020
Trustee
Chair of the Board of Trustees
Mr. Lawrence also serves as Trustee of other funds. Previously, Mr. Lawrence served as a Trustee and Member of the Advisory Board of certain funds. Prior to his retirement in 2008, Mr. Lawrence served as Vice President of certain Fidelity ® funds (2006-2008), Senior Vice President, Head of High Income Division of Fidelity Management & Research Company (investment adviser firm, 2006-2008), and President of Fidelity Strategic Investments (investment adviser firm, 2002-2005).
* 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 the 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+
Thomas P. Bostick (1956)
Year of Election or Appointment: 2021
Trustee
Lieutenant General Bostick also serves as Trustee of other Fidelity ® funds. Prior to his retirement, General Bostick (United States Army, Retired) held a variety of positions within the U.S. Army, including Commanding General and Chief of Engineers, U.S. Army Corps of Engineers (2012-2016) and Deputy Chief of Staff and Director of Human Resources, U.S. Army (2009-2012). General Bostick currently serves as a member of the Board and Finance and Governance Committees of CSX Corporation (transportation, 2020-present) and a member of the Board and Corporate Governance and Nominating Committee of Perma-Fix Environmental Services, Inc. (nuclear waste management, 2020-present). General Bostick serves as Chief Executive Officer of Bostick Global Strategies, LLC (consulting, 2016-present) and as a member of the Board of HireVue, Inc. (video interview and assessment, 2020-present). Previously, General Bostick served as a Member of the Advisory Board of certain Fidelity® funds (2021), President, Intrexon Bioengineering (2018-2020) and Chief Operating Officer (2017-2020) and Senior Vice President of the Environment Sector (2016-2017) of Intrexon Corporation (biopharmaceutical company).
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity ® funds. Prior to his retirement in May 2003, Mr. Dirks served as Chief Operating Officer and as a member of the Board of The Depository Trust & Clearing Corporation (financial markets infrastructure), President, Chief Operating Officer and a member of the Board of The Depository Trust Company (DTC), President and a member of the Board of the National Securities Clearing Corporation (NSCC), Chief Executive Officer and a member of the Board of the Government Securities Clearing Corporation and Chief Executive Officer and a member of the Board of the Mortgage-Backed Securities Clearing Corporation. Mr. Dirks currently serves as a member of the Finance Committee (2016-present) and Board (2017-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as Trustee of other Fidelity ® funds. Mr. Donahue serves as President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006) and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue currently serves as a member (2007-present) and Co-Chairman (2016-present) of the Board of United Way of New York and a member of the Board of The Leadership Academy (previously NYC Leadership Academy) (2012-present). Mr. Donahue previously served as a member of the Advisory Board of certain Fidelity® funds (2015-2018).
Vicki L. Fuller (1957)
Year of Election or Appointment: 2020
Trustee
Ms. Fuller also serves as Trustee of other Fidelity ® funds. Previously, Ms. Fuller served as a member of the Advisory Board of certain Fidelity ® funds (2018-2020), Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006). Ms. Fuller currently serves as a member of the Board, Audit Committee and Nominating and Governance Committee of two Blackstone business development companies (2020-present), as a member of the Board of Treliant, LLC (consulting, 2019-present), as a member of the Advisory Board of Ariel Alternatives, LLC (private equity, 2021-present) and as a member of the Board and Chair of the Audit Committee of Gusto, Inc. (software, 2021-present). In addition, Ms. Fuller currently serves as a member of the Board of Roosevelt University (2019-present) and as a member of the Executive Board of New York University's Stern School of Business. Ms. Fuller previously served as a member of the Board, Audit Committee and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-2021).
Patricia L. Kampling (1959)
Year of Election or Appointment: 2020
Trustee
Ms. Kampling also serves as Trustee of other Fidelity ® funds. Prior to her retirement, Ms. Kampling served as Chairman of the Board and Chief Executive Officer (2012-2019), President and Chief Operating Officer (2011-2012) and Executive Vice President and Chief Financial Officer (2010-2011) of Alliant Energy Corporation. Ms. Kampling currently serves as a member of the Board, Finance Committee and Governance, Compensation and Nominating Committee of Xcel Energy Inc. (utilities company, 2020-present) and as a member of the Board, Audit, Finance and Risk Committee and Safety, Environmental, Technology and Operations Committee and Chair of the Executive Development and Compensation Committee of American Water Works Company, Inc. (utilities company, 2019-present). In addition, Ms. Kampling currently serves as a member of the Board of the Nature Conservancy, Wisconsin Chapter (2019-present). Previously, Ms. Kampling served as a Member of the Advisory Board of certain Fidelity® funds (2020), a member of the Board, Compensation Committee and Executive Committee and Chair of the Audit Committee of Briggs & Stratton Corporation (manufacturing, 2011-2021), a member of the Board of Interstate Power and Light Company (2012-2019) and Wisconsin Power and Light Company (2012-2019) (each a subsidiary of Alliant Energy Corporation) and as a member of the Board and Workforce Development Committee of the Business Roundtable (2018-2019).
Thomas A. Kennedy (1955)
Year of Election or Appointment: 2021
Trustee
Mr. Kennedy also serves as Trustee of other Fidelity ® funds. Previously, Mr. Kennedy served as a Member of the Advisory Board of certain Fidelity ® funds (2020) and held a variety of positions at Raytheon Company (aerospace and defense, 1983-2020), including Chairman and Chief Executive Officer (2014-2020) and Executive Vice President and Chief Operating Officer (2013-2014). Mr. Kennedy currently serves as Executive Chairman of the Board of Directors of Raytheon Technologies Corporation (aerospace and defense, 2020-present). He is also a member of the Rutgers School of Engineering Industry Advisory Board (2011-present) and a member of the UCLA Engineering Dean's Executive Board (2016-present).
Oscar Munoz (1959)
Year of Election or Appointment: 2021
Trustee
Mr. Munoz also serves as Trustee of other Fidelity ® funds. Prior to his retirement, Mr. Munoz served as Executive Chairman (2020-2021), Chief Executive Officer (2015-2020), President (2015-2016) and a member of the Board (2010-2021) of United Airlines Holdings, Inc. Mr. Munoz currently serves as a member of the Board of CBRE Group, Inc. (commercial real estate, 2020-present), a member of the Board of Univision Communications, Inc. (Hispanic media, 2020-present) and a member of the Advisory Board of Salesforce.com, Inc. (cloud-based software, 2020-present). Previously, Mr. Munoz served as a Member of the Advisory Board of certain Fidelity ® funds (2021).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Lead Independent Trustee
Mr. Thomas also serves as Trustee of other Fidelity ® funds. Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions). Mr. Thomas currently serves as a member of the Board of Fortune Brands Home and Security (home and security products, 2004-present) and as Director (2013-present) and Non-Executive Chairman of the Board (2022-present) of Interpublic Group of Companies, Inc. (marketing communication).
Susan Tomasky (1953)
Year of Election or Appointment: 2020
Trustee
Ms. Tomasky also serves as Trustee of other Fidelity ® funds. Prior to her retirement, Ms. Tomasky served in various executive officer positions at American Electric Power Company, Inc. (1998-2011), including most recently as President of AEP Transmission (2007-2011). Ms. Tomasky currently serves as a member of the Board and Sustainability Committee and as Chair of the Audit Committee of Marathon Petroleum Corporation (2018-present) and as a member of the Board, Executive Committee, Corporate Governance Committee and Organization and Compensation Committee and as Chair of the Audit Committee of Public Service Enterprise Group, Inc. (utilities company, 2012-present) and as a member of the Board of its subsidiary company, Public Service Electric and Gas Co. (2021-present). In addition, Ms. Tomasky currently serves as a member (2009-present) and President (2020-present) of the Board of the Royal Shakespeare Company - America (2009-present), as a member of the Board of the Columbus Association for the Performing Arts (2011-present) and as a member of the Board and Kenyon in the World Committee of Kenyon College (2016-present). Previously, Ms. Tomasky served as a Member of the Advisory Board of certain Fidelity ® funds (2020), as a member of the Board of the Columbus Regional Airport Authority (2007-2020), as a member of the Board (2011-2018) and Lead Independent Director (2015-2018) of Andeavor Corporation (previously Tesoro Corporation) (independent oil refiner and marketer) and as a member of the Board of Summit Midstream Partners LP (energy, 2012-2018).
Michael E. Wiley (1950)
Year of Election or Appointment: 2020
Trustee
Mr. Wiley also serves as Trustee of other Fidelity ® funds. Previously, Mr. Wiley served as a member of the Advisory Board of certain Fidelity ® funds (2018-2020), Chairman, President and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004). Mr. Wiley also previously served as a member of the Board of Andeavor Corporation (independent oil refiner and marketer, 2005-2018), a member of the Board of Andeavor Logistics LP (natural resources logistics, 2015-2018) and a member of the Board of High Point Resources (exploration and production, 2005-2020).
+ 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 the fund.
Advisory Board Members and Officers:
Correspondence intended for a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as a Member of the Advisory Board of other Fidelity ® funds. Mr. Lynch is Vice Chairman and a Director of Fidelity Management & Research Company LLC (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served as Vice Chairman and a Director of FMR Co., Inc. (investment adviser firm) and on the Special Olympics International Board of Directors (1997-2006).
Craig S. Brown (1977)
Year of Election or Appointment: 2022
Deputy Treasurer
Mr. Brown also serves as an officer of other funds. Mr. Brown serves as Assistant Treasurer of FIMM, LLC (2021-present) and is an employee of Fidelity Investments (2013-present). Previously, Mr. Brown served as Assistant Treasurer of certain Fidelity ® funds (2019-2022).
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).
William C. Coffey (1969)
Year of Election or Appointment: 2019
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Secretary and CLO of certain funds (2018-2019); CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-2019); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-2019); CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-2019); and Assistant Secretary of certain funds (2009-2018).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2018
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Co-Head of Equity (2018-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Executive Vice President of Fidelity SelectCo, LLC (2019), Head of Global Equity Research (2016-2018), Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as an officer of other funds. Mr. Davis serves as Assistant Treasurer of FIMM, LLC (2021-present), FMR Capital, Inc. (2017-present), FD Funds GP LLC (2021-present), FD Funds Holding LLC (2021-present), and FD Funds Management LLC (2021-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
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato serves as Assistant Treasurer of FIMM, LLC (2021-present) and 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)
Year of Election or Appointment: 2020
Assistant Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FIMM, LLC (2021-present) and 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).
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as Vice President of other funds. Ms. Holding serves as Co-Head of Equity (2018-present) and is an employee of Fidelity Investments (2013-present). Previously, Ms. Holding served as Executive Vice President of Fidelity SelectCo, LLC (2019) and as Chief Investment Officer of Fidelity Institutional Asset Management (2013-2018).
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); CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2019-present); Secretary of FD Funds GP LLC (2021-present), FD Funds Holding LLC (2021-present), FD Funds Management LLC (2021-present), and Fidelity Diversifying Solutions LLC (investment adviser firm, 2022-present); and Assistant Secretary of FIMM, LLC (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)
Year of Election or Appointment: 2020
Deputy Treasurer
Mr. Maher also serves as an officer of other funds. Mr. Maher serves as Assistant Treasurer of FIMM, LLC (2021-present) and 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).
Jason P. Pogorelec (1975)
Year of Election or Appointment: 2020
Chief Compliance Officer
Mr. Pogorelec also serves as Chief Compliance Officer of other funds. Mr. Pogorelec is a senior Vice President of Asset Management Compliance for Fidelity Investments and is an employee of Fidelity Investments (2006-present). Previously, Mr. Pogorelec served as Vice President, Associate General Counsel for Fidelity Investments (2010-2020) and Assistant Secretary of certain Fidelity ® funds (2015-2020).
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)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FIMM, LLC (2021-present) and 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.
Jim Wegmann (1979)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Wegmann also serves as an officer of other funds. Mr. Wegmann serves as Assistant Treasurer of FIMM, LLC (2021-present) and is an employee of Fidelity Investments (2011-present). Previously, Mr. Wegmann served as Assistant Treasurer of certain Fidelity ® funds (2019-2021).
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, 2022 to December 31, 2022). |
Actual Expenses
The 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 Purposes
The 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 comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| | | | | Annualized Expense Ratio- A | | Beginning Account Value July 1, 2022 | | Ending Account Value December 31, 2022 | | Expenses Paid During Period- C July 1, 2022 to December 31, 2022 |
| VIP Growth Portfolio | | | | | | | | | | |
| Initial Class | | | | .60% | | | | | | |
| Actual | | | | | | $ 1,000 | | $ 988.20 | | $ 3.01 |
Hypothetical- B | | | | | | $ 1,000 | | $ 1,022.18 | | $ 3.06 |
| Service Class | | | | .70% | | | | | | |
| Actual | | | | | | $ 1,000 | | $ 987.80 | | $ 3.51 |
Hypothetical- B | | | | | | $ 1,000 | | $ 1,021.68 | | $ 3.57 |
| Service Class 2 | | | | .85% | | | | | | |
| Actual | | | | | | $ 1,000 | | $ 987.00 | | $ 4.26 |
Hypothetical- B | | | | | | $ 1,000 | | $ 1,020.92 | | $ 4.33 |
| Investor Class | | | | .68% | | | | | | |
| Actual | | | | | | $ 1,000 | | $ 987.90 | | $ 3.41 |
Hypothetical- B | | | | | | $ 1,000 | | $ 1,021.78 | | $ 3.47 |
| |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B 5% return per year before expenses
C Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/ 365 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
The dividend and capital gains distributions for the fund(s) are available on Fidelity.com or Institutional.Fidelity.com .
The fund hereby designates as a capital gain dividend with respect to the taxable year ended December 31, 2022, $233,682,063, or, if subsequently determined to be different, the net capital gain of such year.
Initial Class designates 0% and 100%; Service Class designates 0% and 100%; Service Class 2 designates 0% and 0%; and Investor Class designates 0% and 100%; of the dividends distributed in February and December, respectively, during the fiscal year as qualifying for the dividends-received deduction for corporate shareholders.
1.540077.125
VIPGRWT-ANN-0323
Fidelity® Variable Insurance Products:
Value Portfolio
Annual Report
December 31, 2022
Contents
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. © 2023 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund 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 GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Average 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 |
| | | | |
Periods ended December 31, 2022 | Past 1 year | Past 5 years | Past 10 years |
| Initial Class | -4.11% | 8.59% | 11.10% |
| Service Class | -4.17% | 8.48% | 10.99% |
| Service Class 2 | -4.29% | 8.32% | 10.83% |
| Investor Class | -4.13% | 8.51% | 11.02% |
| $10,000 Over 10 Years |
| |
Let's say hypothetically that $10,000 was invested in VIP Value Portfolio - Initial Class, a class of the fund, on December 31, 2012. The chart shows how the value of your investment would have changed, and also shows how the Russell 3000® Value Index performed over the same period. |
|
|
Market Recap:
U.S. equities returned -18.11% in 2022, according to the S&P 500 ® index, as a multitude of risk factors challenged the global economy. It was the index's lowest calendar-year return since 2008 and first retreat since 2018. High inflation prompted the Federal Reserve to aggressively tighten monetary policy, and market interest rates eclipsed their highest level in a decade, stoking recession fears and sending stocks into bear market territory. Since March, the Fed hiked its benchmark rate seven times, by 4.25 percentage points - the fastest-ever pace of monetary tightening - while also shrinking its massive portfolio. Against this backdrop, the S&P 500® posted its worst year-to-date result (-23.87%) in 20 years through September, a seasonally weak month that stayed true to form, with volatility spiking due to growing certainty the Fed would persist in its effort to cool inflation, even at the expense of economic growth. Three of the index's worst monthly returns ever were recorded in 2022, as it shed 8% to 9% in April, June and September. Gains of similar proportion were made in July and October, amid optimism on inflation and policy easing. November (+6%) began with a rate hike of 0.75% and ended on a high note when the Fed signaled its intent to slow its pace of rate rises. For the year, value stocks handily outpaced growth. This headwind was pronounced in the growthier communication services (-40%), consumer discretionary (-37%) and information technology (-28%) sectors. In sharp contrast, energy (+66%) shined.
Comments from Portfolio Manager Matt Friedman:
For the fiscal year ending December 31, 2022, the fund's share classes returned about -4%, outperforming the -7.98% result of the benchmark Russell 3000 ® Value Index. The primary contributor to performance versus the benchmark was an overweighting in the market-leading energy sector. Security selection and an underweighting in financials, along with picks in utilities, helped as well. The biggest individual relative contributor was an overweight position in Cigna (+46%), one of the fund's largest holdings. Also lifting performance was an outsized stake in Hess, which gained approximately 93% and also was among the portfolio's biggest stakes as of December 31. The fund's non-benchmark investment in Canadian National Resources, a top-10 holding, gained about 37% and added value versus the benchmark as well. Conversely, the largest detractors from performance versus the benchmark were security selection and an overweighting in the consumer discretionary sector, especially within the retailing industry. Subpar picks in real estate and materials also hampered the fund's relative result. Not owning Chevron, a benchmark component that advanced roughly 58%, was the biggest individual relative detractor. An outsized position in WeWork (-82%), a stake we established in 2022, also proved detrimental. Another notable relative detractor was an overweighting in Rent-A-Center (-50%). Notable changes in positioning this past year include increased exposure to the energy sector and a lower allocation to industrials firms.
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.
Top Holdings (% of Fund's net assets) |
| |
| Exxon Mobil Corp. | 3.5 | |
| Cigna Corp. | 2.6 | |
| The Travelers Companies, Inc. | 2.4 | |
| AstraZeneca PLC sponsored ADR | 1.9 | |
| M&T Bank Corp. | 1.6 | |
| Hess Corp. | 1.6 | |
| Roche Holding AG (participation certificate) | 1.5 | |
| Canadian Natural Resources Ltd. | 1.5 | |
| PG&E Corp. | 1.5 | |
| Centene Corp. | 1.5 | |
| | 19.6 | |
| |
| Market Sectors (% of Fund's net assets) |
| |
| Financials | 17.9 | |
| Industrials | 13.2 | |
| Health Care | 12.7 | |
| Energy | 11.3 | |
| Consumer Discretionary | 9.1 | |
| Materials | 7.1 | |
| Utilities | 6.5 | |
| Communication Services | 6.4 | |
| Real Estate | 5.3 | |
| Information Technology | 5.1 | |
| Consumer Staples | 3.4 | |
| |
Asset Allocation (% of Fund's net assets) |
|
Foreign investments - 19.6% |
|
Geographic Diversification (% of Fund's net assets) |
|
* Includes Short-Term investments and Net Other Assets (Liabilities). Percentages are based on country or territory of incorporation and are adjusted for the effect of derivatives, if applicable. |
| |
Showing Percentage of Net Assets
| Common Stocks - 98.0% |
| | | Shares | Value ($) |
| COMMUNICATION SERVICES - 6.4% | | | |
| Diversified Telecommunication Services - 0.5% | | | |
| Cellnex Telecom SA (a) | | 74,200 | 2,461,307 |
| Interactive Media & Services - 2.7% | | | |
| Alphabet, Inc. Class A (b) | | 75,107 | 6,626,691 |
| Meta Platforms, Inc. Class A (b) | | 53,800 | 6,474,292 |
| | | | 13,100,983 |
| Media - 1.8% | | | |
| Comcast Corp. Class A | | 82,538 | 2,886,354 |
| Interpublic Group of Companies, Inc. | | 94,921 | 3,161,819 |
| Nexstar Broadcasting Group, Inc. Class A | | 14,400 | 2,520,432 |
| | | | 8,568,605 |
| Wireless Telecommunication Services - 1.4% | | | |
| T-Mobile U.S., Inc. (b) | | 48,755 | 6,825,700 |
TOTAL COMMUNICATION SERVICES | | | 30,956,595 |
| CONSUMER DISCRETIONARY - 9.1% | | | |
| Auto Components - 1.6% | | | |
| Adient PLC (b) | | 113,800 | 3,947,722 |
| Autoliv, Inc. | | 46,924 | 3,593,440 |
| | | | 7,541,162 |
| Diversified Consumer Services - 0.8% | | | |
| Adtalem Global Education, Inc. (b) | | 111,554 | 3,960,167 |
| Hotels, Restaurants & Leisure - 1.1% | | | |
| Bowlero Corp. Class A (b) | | 76,342 | 1,029,090 |
| Caesars Entertainment, Inc. (b) | | 95,461 | 3,971,178 |
| | | | 5,000,268 |
| Household Durables - 1.4% | | | |
| Mohawk Industries, Inc. (b) | | 27,919 | 2,853,880 |
| PulteGroup, Inc. | | 87,028 | 3,962,385 |
| | | | 6,816,265 |
| Internet & Direct Marketing Retail - 0.6% | | | |
| eBay, Inc. | | 72,918 | 3,023,909 |
| Multiline Retail - 0.8% | | | |
| Dollar Tree, Inc. (b) | | 28,329 | 4,006,854 |
| Specialty Retail - 2.8% | | | |
| American Eagle Outfitters, Inc. | | 438,800 | 6,125,648 |
| Rent-A-Center, Inc. | | 114,629 | 2,584,884 |
| Victoria's Secret & Co. (b) | | 134,250 | 4,803,465 |
| | | | 13,513,997 |
TOTAL CONSUMER DISCRETIONARY | | | 43,862,622 |
| CONSUMER STAPLES - 3.4% | | | |
| Beverages - 1.0% | | | |
| Primo Water Corp. | | 292,577 | 4,546,647 |
| Food & Staples Retailing - 1.4% | | | |
| U.S. Foods Holding Corp. (b) | | 202,511 | 6,889,424 |
| Food Products - 1.0% | | | |
| Darling Ingredients, Inc. (b) | | 77,581 | 4,855,795 |
TOTAL CONSUMER STAPLES | | | 16,291,866 |
| ENERGY - 11.3% | | | |
| Energy Equipment & Services - 1.4% | | | |
| Halliburton Co. | | 168,616 | 6,635,040 |
| Oil, Gas & Consumable Fuels - 9.9% | | | |
| Canadian Natural Resources Ltd. | | 131,869 | 7,322,917 |
| Cenovus Energy, Inc. (Canada) | | 273,200 | 5,300,564 |
| Exxon Mobil Corp. | | 152,105 | 16,777,182 |
| Hess Corp. | | 53,437 | 7,578,435 |
| Imperial Oil Ltd. | | 101,881 | 4,962,372 |
| Tourmaline Oil Corp. | | 120,663 | 6,088,402 |
| Woodside Energy Group Ltd. ADR | | 1 | 24 |
| | | | 48,029,896 |
TOTAL ENERGY | | | 54,664,936 |
| FINANCIALS - 17.9% | | | |
| Banks - 4.3% | | | |
| East West Bancorp, Inc. | | 59,700 | 3,934,230 |
| First Citizens Bancshares, Inc. | | 6,343 | 4,810,277 |
| M&T Bank Corp. | | 55,507 | 8,051,845 |
| Signature Bank | | 37,179 | 4,283,764 |
| | | | 21,080,116 |
| Capital Markets - 3.6% | | | |
| Ameriprise Financial, Inc. | | 21,192 | 6,598,553 |
| Lazard Ltd. Class A | | 125,284 | 4,343,596 |
| LPL Financial | | 30,313 | 6,552,761 |
| | | | 17,494,910 |
| Consumer Finance - 1.9% | | | |
| OneMain Holdings, Inc. | | 124,047 | 4,132,006 |
| SLM Corp. | | 293,437 | 4,871,054 |
| | | | 9,003,060 |
| Diversified Financial Services - 2.3% | | | |
| Apollo Global Management, Inc. | | 104,553 | 6,669,436 |
| Berkshire Hathaway, Inc. Class B (b) | | 13,882 | 4,288,150 |
| | | | 10,957,586 |
| Insurance - 4.9% | | | |
| Assurant, Inc. | | 49,280 | 6,162,957 |
| Reinsurance Group of America, Inc. | | 40,000 | 5,683,600 |
| The Travelers Companies, Inc. | | 62,324 | 11,685,127 |
| | | | 23,531,684 |
| Thrifts & Mortgage Finance - 0.9% | | | |
| Walker & Dunlop, Inc. | | 58,345 | 4,578,916 |
TOTAL FINANCIALS | | | 86,646,272 |
| HEALTH CARE - 12.7% | | | |
| Biotechnology - 0.8% | | | |
| United Therapeutics Corp. (b) | | 13,290 | 3,695,816 |
| Health Care Providers & Services - 5.4% | | | |
| AdaptHealth Corp. (b) | | 173,071 | 3,326,425 |
| Centene Corp. (b) | | 86,445 | 7,089,354 |
| Cigna Corp. | | 37,647 | 12,473,957 |
| Tenet Healthcare Corp. (b) | | 61,687 | 3,009,709 |
| | | | 25,899,445 |
| Life Sciences Tools & Services - 0.3% | | | |
| Syneos Health, Inc. (b) | | 44,400 | 1,628,592 |
| Pharmaceuticals - 6.2% | | | |
| AstraZeneca PLC sponsored ADR | | 134,517 | 9,120,253 |
| Jazz Pharmaceuticals PLC (b) | | 42,801 | 6,818,627 |
| Roche Holding AG (participation certificate) | | 24,034 | 7,552,385 |
| Sanofi SA sponsored ADR | | 136,599 | 6,615,490 |
| | | | 30,106,755 |
TOTAL HEALTH CARE | | | 61,330,608 |
| INDUSTRIALS - 13.2% | | | |
| Aerospace & Defense - 1.3% | | | |
| The Boeing Co. (b) | | 32,312 | 6,155,113 |
| Air Freight & Logistics - 1.1% | | | |
| FedEx Corp. | | 30,363 | 5,258,872 |
| Building Products - 0.8% | | | |
| Builders FirstSource, Inc. (b) | | 61,995 | 4,022,236 |
| Commercial Services & Supplies - 0.7% | | | |
| The Brink's Co. | | 64,327 | 3,455,003 |
| Construction & Engineering - 1.2% | | | |
| Willscot Mobile Mini Holdings (b) | | 122,631 | 5,539,242 |
| Electrical Equipment - 0.8% | | | |
| Regal Rexnord Corp. | | 31,798 | 3,815,124 |
| Industrial Conglomerates - 1.1% | | | |
| General Electric Co. | | 66,041 | 5,533,575 |
| Machinery - 3.6% | | | |
| Allison Transmission Holdings, Inc. | | 62,100 | 2,583,360 |
| Crane Holdings Co. | | 40,876 | 4,105,994 |
| Flowserve Corp. | | 123,034 | 3,774,683 |
| Kennametal, Inc. | | 123,852 | 2,979,879 |
| Timken Co. | | 57,693 | 4,077,164 |
| | | | 17,521,080 |
| Professional Services - 0.8% | | | |
| Manpower, Inc. | | 48,803 | 4,060,898 |
| Road & Rail - 1.1% | | | |
| RXO, Inc. (b) | | 78,888 | 1,356,874 |
| U-Haul Holding Co. (non-vtg.) | | 27,100 | 1,489,958 |
| XPO, Inc. (b) | | 78,888 | 2,626,182 |
| | | | 5,473,014 |
| Trading Companies & Distributors - 0.7% | | | |
| Beacon Roofing Supply, Inc. (b) | | 59,817 | 3,157,739 |
TOTAL INDUSTRIALS | | | 63,991,896 |
| INFORMATION TECHNOLOGY - 5.1% | | | |
| Communications Equipment - 0.6% | | | |
| Lumentum Holdings, Inc. (b) | | 58,500 | 3,051,945 |
| Electronic Equipment & Components - 1.4% | | | |
| Flex Ltd. (b) | | 317,357 | 6,810,481 |
| IT Services - 2.4% | | | |
| Concentrix Corp. | | 29,259 | 3,896,128 |
| Fidelity National Information Services, Inc. | | 70,837 | 4,806,290 |
| SS&C Technologies Holdings, Inc. | | 50,345 | 2,620,961 |
| | | | 11,323,379 |
| Software - 0.7% | | | |
| NCR Corp. (b) | | 146,186 | 3,422,214 |
TOTAL INFORMATION TECHNOLOGY | | | 24,608,019 |
| MATERIALS - 7.1% | | | |
| Chemicals - 3.3% | | | |
| Axalta Coating Systems Ltd. (b) | | 190,501 | 4,852,060 |
| Methanex Corp. (c) | | 93,100 | 3,524,766 |
| Olin Corp. | | 86,381 | 4,573,010 |
| Tronox Holdings PLC | | 218,000 | 2,988,780 |
| | | | 15,938,616 |
| Containers & Packaging - 0.8% | | | |
| Crown Holdings, Inc. | | 48,843 | 4,015,383 |
| Metals & Mining - 2.4% | | | |
| Arconic Corp. (b) | | 290,159 | 6,139,764 |
| Glencore PLC | | 815,800 | 5,440,282 |
| | | | 11,580,046 |
| Paper & Forest Products - 0.6% | | | |
| Louisiana-Pacific Corp. | | 50,500 | 2,989,600 |
TOTAL MATERIALS | | | 34,523,645 |
| REAL ESTATE - 5.3% | | | |
| Equity Real Estate Investment Trusts (REITs) - 3.9% | | | |
| CubeSmart | | 106,406 | 4,282,842 |
| Equity Lifestyle Properties, Inc. | | 39,101 | 2,525,925 |
| Prologis (REIT), Inc. | | 43,002 | 4,847,615 |
| Welltower, Inc. | | 105,092 | 6,888,781 |
| | | | 18,545,163 |
| Real Estate Management & Development - 1.4% | | | |
| Cushman & Wakefield PLC (b) | | 240,500 | 2,996,630 |
| Jones Lang LaSalle, Inc. (b) | | 20,011 | 3,189,153 |
| WeWork, Inc. (b)(c) | | 519,300 | 742,599 |
| | | | 6,928,382 |
TOTAL REAL ESTATE | | | 25,473,545 |
| UTILITIES - 6.5% | | | |
| Electric Utilities - 3.8% | | | |
| Constellation Energy Corp. | | 43,644 | 3,762,549 |
| Edison International | | 72,732 | 4,627,210 |
| Entergy Corp. | | 26,517 | 2,983,163 |
| PG&E Corp. (b) | | 440,016 | 7,154,660 |
| | | | 18,527,582 |
| Independent Power and Renewable Electricity Producers - 2.0% | | | |
| The AES Corp. | | 202,951 | 5,836,871 |
| Vistra Corp. | | 154,037 | 3,573,658 |
| | | | 9,410,529 |
| Multi-Utilities - 0.7% | | | |
| Sempra Energy | | 22,079 | 3,412,089 |
TOTAL UTILITIES | | | 31,350,200 |
| TOTAL COMMON STOCKS (Cost $408,281,430) | | | 473,700,204 |
| | | | |
| Money Market Funds - 2.5% |
| | | Shares | Value ($) |
| Fidelity Cash Central Fund 4.37% (d) | | 9,322,854 | 9,324,719 |
| Fidelity Securities Lending Cash Central Fund 4.37% (d)(e) | | 2,787,052 | 2,787,331 |
| TOTAL MONEY MARKET FUNDS (Cost $12,112,050) | | | 12,112,050 |
| | | | |
| TOTAL INVESTMENT IN SECURITIES - 100.5% (Cost $420,393,480) | 485,812,254 |
NET OTHER ASSETS (LIABILITIES) - (0.5)% | (2,540,748) |
| NET ASSETS - 100.0% | 483,271,506 |
| | |
Legend
| (a) | Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $2,461,307 or 0.5% of net assets. |
| (c) | Security or a portion of the security is on loan at period end. |
| (d) | Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request. |
| (e) | Investment made with cash collateral received from securities on loan. |
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
| Affiliate | Value, beginning of period ($) | Purchases ($) | Sales Proceeds ($) | Dividend Income ($) | Realized Gain (loss) ($) | Change in Unrealized appreciation (depreciation) ($) | Value, end of period ($) | % ownership, end of period |
| Fidelity Cash Central Fund 4.37% | 3,889,486 | 152,144,260 | 146,709,027 | 87,558 | - | - | 9,324,719 | 0.0% |
| Fidelity Securities Lending Cash Central Fund 4.37% | 14,027,163 | 148,512,178 | 159,752,010 | 100,058 | - | - | 2,787,331 | 0.0% |
| Total | 17,916,649 | 300,656,438 | 306,461,037 | 187,616 | - | - | 12,112,050 | |
| | | | | | | | | |
Amounts in the dividend 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.
Amount for Fidelity Securities Lending Cash Central Fund represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities.
Amounts included in the purchases and sales proceeds columns may include in-kind transactions, if applicable.
Investment Valuation
The following is a summary of the inputs used, as of December 31, 2022, 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 ($) | Level 3 ($) |
Investments in Securities: | | | | |
|
| Equities: | | | | |
Communication Services | 30,956,595 | 28,495,288 | 2,461,307 | - |
Consumer Discretionary | 43,862,622 | 43,862,622 | - | - |
Consumer Staples | 16,291,866 | 16,291,866 | - | - |
Energy | 54,664,936 | 54,664,936 | - | - |
Financials | 86,646,272 | 86,646,272 | - | - |
Health Care | 61,330,608 | 53,778,223 | 7,552,385 | - |
Industrials | 63,991,896 | 63,991,896 | - | - |
Information Technology | 24,608,019 | 24,608,019 | - | - |
Materials | 34,523,645 | 29,083,363 | 5,440,282 | - |
Real Estate | 25,473,545 | 25,473,545 | - | - |
Utilities | 31,350,200 | 31,350,200 | - | - |
|
| Money Market Funds | 12,112,050 | 12,112,050 | - | - |
| Total Investments in Securities: | 485,812,254 | 470,358,280 | 15,453,974 | - |
| Statement of Assets and Liabilities |
| | | | December 31, 2022 |
| | | | | |
| Assets | | | | |
| Investment in securities, at value (including securities loaned of $2,858,830) - See accompanying schedule: | | | | |
Unaffiliated issuers (cost $408,281,430) | $ | 473,700,204 | | |
Fidelity Central Funds (cost $12,112,050) | | 12,112,050 | | |
| | | | | |
| | | | | |
| Total Investment in Securities (cost $420,393,480) | | | $ | 485,812,254 |
| Foreign currency held at value (cost $18,023) | | | | 18,024 |
| Receivable for fund shares sold | | | | 614,141 |
| Dividends receivable | | | | 528,873 |
| Distributions receivable from Fidelity Central Funds | | | | 31,469 |
| Prepaid expenses | | | | 572 |
| Other receivables | | | | 25 |
Total assets | | | | 487,005,358 |
| Liabilities | | | | |
| Payable for investments purchased | | $271,112 | | |
| Payable for fund shares redeemed | | 341,720 | | |
| Accrued management fee | | 213,690 | | |
| Distribution and service plan fees payable | | 8,998 | | |
| Other affiliated payables | | 60,083 | | |
| Other payables and accrued expenses | | 51,074 | | |
| Collateral on securities loaned | | 2,787,175 | | |
| Total Liabilities | | | | 3,733,852 |
| Net Assets | | | $ | 483,271,506 |
| Net Assets consist of: | | | | |
| Paid in capital | | | $ | 418,879,157 |
| Total accumulated earnings (loss) | | | | 64,392,349 |
| Net Assets | | | $ | 483,271,506 |
| | | | | |
| Net Asset Value and Maximum Offering Price | | | | |
| Initial Class : | | | | |
Net Asset Value , offering price and redemption price per share ($121,880,042 ÷ 7,283,913 shares) | | | $ | 16.73 |
| Service Class : | | | | |
Net Asset Value , offering price and redemption price per share ($240,290 ÷ 14,355 shares) | | | $ | 16.74 |
| Service Class 2 : | | | | |
Net Asset Value , offering price and redemption price per share ($43,667,108 ÷ 2,664,910 shares) | | | $ | 16.39 |
| Investor Class : | | | | |
Net Asset Value , offering price and redemption price per share ($317,484,066 ÷ 19,025,485 shares) | | | $ | 16.69 |
| Statement of Operations |
| | | | Year ended December 31, 2022 |
| Investment Income | | | | |
| Dividends | | | $ | 9,481,282 |
| Income from Fidelity Central Funds (including $100,058 from security lending) | | | | 187,616 |
| Total Income | | | | 9,668,898 |
| Expenses | | | | |
| Management fee | $ | 2,600,376 | | |
| Transfer agent fees | | 549,765 | | |
| Distribution and service plan fees | | 83,244 | | |
| Accounting fees | | 181,596 | | |
| Custodian fees and expenses | | 21,362 | | |
| Independent trustees' fees and expenses | | 1,681 | | |
| Audit | | 58,909 | | |
| Legal | | 2,830 | | |
| Interest | | 1,380 | | |
| Miscellaneous | | 1,962 | | |
| Total expenses before reductions | | 3,503,105 | | |
| Expense reductions | | (15,917) | | |
| Total expenses after reductions | | | | 3,487,188 |
| Net Investment income (loss) | | | | 6,181,710 |
| Realized and Unrealized Gain (Loss) | | | | |
| Net realized gain (loss) on: | | | | |
| Investment Securities: | | | | |
| Unaffiliated issuers | | 10,069,629 | | |
| Foreign currency transactions | | 21,501 | | |
| Total net realized gain (loss) | | | | 10,091,130 |
| Change in net unrealized appreciation (depreciation) on: | | | | |
| Investment Securities: | | | | |
| Unaffiliated issuers | | (41,636,123) | | |
| Assets and liabilities in foreign currencies | | (9,379) | | |
| Total change in net unrealized appreciation (depreciation) | | | | (41,645,502) |
| Net gain (loss) | | | | (31,554,372) |
| Net increase (decrease) in net assets resulting from operations | | | $ | (25,372,662) |
| Statement of Changes in Net Assets |
| |
| | Year ended December 31, 2022 | | Year ended December 31, 2021 |
| Increase (Decrease) in Net Assets | | | | |
| Operations | | | | |
| Net investment income (loss) | $ | 6,181,710 | $ | 6,779,873 |
| Net realized gain (loss) | | 10,091,130 | | 62,491,051 |
| Change in net unrealized appreciation (depreciation) | | (41,645,502) | | 34,951,052 |
| Net increase (decrease) in net assets resulting from operations | | (25,372,662) | | 104,221,976 |
| Distributions to shareholders | | (22,454,265) | | (57,416,733) |
| Share transactions - net increase (decrease) | | 53,932,406 | | 98,615,092 |
| Total increase (decrease) in net assets | | 6,105,479 | | 145,420,335 |
| | | | | |
| Net Assets | | | | |
| Beginning of period | | 477,166,027 | | 331,745,692 |
| End of period | $ | 483,271,506 | $ | 477,166,027 |
| | | | | |
| | | | | |
Financial Highlights
| VIP Value Portfolio Initial Class |
| |
| Years ended December 31, | | 2022 | | 2021 | | 2020 | | 2019 | | 2018 |
Selected Per-Share Data | | | | | | | | | | |
| Net asset value, beginning of period | $ | 18.28 | $ | 15.96 | $ | 15.78 | $ | 13.08 | $ | 16.36 |
| Income from Investment Operations | | | | | | | | | | |
Net investment income (loss) A,B | | .23 | | .31 | | .19 | | .26 | | .21 |
| Net realized and unrealized gain (loss) | | (.96) | | 4.41 | | .75 | | 3.74 | | (2.41) |
| Total from investment operations | | (.73) | | 4.72 | | .94 | | 4.00 | | (2.20) |
| Distributions from net investment income | | (.23) | | (.32) | | (.20) | | (.27) | | (.18) |
| Distributions from net realized gain | | (.59) | | (2.07) | | (.56) | | (1.03) | | (.90) |
| Total distributions | | (.82) | | (2.40) C | | (.76) | | (1.30) | | (1.08) |
| Net asset value, end of period | $ | 16.73 | $ | 18.28 | $ | 15.96 | $ | 15.78 | $ | 13.08 |
Total Return D,E | | (4.11)% | | 30.07% | | 6.33% | | 32.13% | | (13.84)% |
Ratios to Average Net Assets B,F,G | | | | | | | | | | |
| Expenses before reductions | | .64% | | .64% | | .67% | | .67% | | .67% |
| Expenses net of fee waivers, if any | | .64% | | .64% | | .67% | | .67% | | .67% |
| Expenses net of all reductions | | .64% | | .64% | | .65% | | .66% | | .66% |
| Net investment income (loss) | | 1.32% | | 1.62% | | 1.48% | | 1.78% | | 1.36% |
| Supplemental Data | | | | | | | | | | |
| Net assets, end of period (000 omitted) | $ | 121,880 | $ | 159,917 | $ | 131,037 | $ | 116,401 | $ | 110,203 |
Portfolio turnover rate H | | 48% | | 68% | | 81% | | 67% | | 64% |
A Calculated based on average shares outstanding during the period.
B Net investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any mutual funds or ETFs is not included in the Fund's net investment income (loss) ratio.
C Total distributions per share do not sum due to rounding.
D Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F 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.
G 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.
H Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
| VIP Value Portfolio Service Class |
| |
| Years ended December 31, | | 2022 | | 2021 | | 2020 | | 2019 | | 2018 |
Selected Per-Share Data | | | | | | | | | | |
| Net asset value, beginning of period | $ | 18.28 | $ | 15.96 | $ | 15.78 | $ | 13.08 | $ | 16.36 |
| Income from Investment Operations | | | | | | | | | | |
Net investment income (loss) A,B | | .21 | | .29 | | .18 | | .24 | | .20 |
| Net realized and unrealized gain (loss) | | (.95) | | 4.40 | | .75 | | 3.75 | | (2.42) |
| Total from investment operations | | (.74) | | 4.69 | | .93 | | 3.99 | | (2.22) |
| Distributions from net investment income | | (.21) | | (.30) | | (.19) | | (.25) | | (.15) |
| Distributions from net realized gain | | (.59) | | (2.07) | | (.56) | | (1.03) | | (.90) |
| Total distributions | | (.80) | | (2.37) | | (.75) | | (1.29) C | | (1.06) C |
| Net asset value, end of period | $ | 16.74 | $ | 18.28 | $ | 15.96 | $ | 15.78 | $ | 13.08 |
Total Return D,E | | (4.17)% | | 29.92% | | 6.23% | | 32.01% | | (13.97)% |
Ratios to Average Net Assets B,F,G | | | | | | | | | | |
| Expenses before reductions | | .74% | | .74% | | .77% | | .77% | | .77% |
| Expenses net of fee waivers, if any | | .74% | | .74% | | .77% | | .77% | | .77% |
| Expenses net of all reductions | | .74% | | .74% | | .75% | | .76% | | .76% |
| Net investment income (loss) | | 1.22% | | 1.52% | | 1.38% | | 1.68% | | 1.26% |
| Supplemental Data | | | | | | | | | | |
| Net assets, end of period (000 omitted) | $ | 240 | $ | 337 | $ | 275 | $ | 270 | $ | 233 |
Portfolio turnover rate H | | 48% | | 68% | | 81% | | 67% | | 64% |
A Calculated based on average shares outstanding during the period.
B Net investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any mutual funds or ETFs is not included in the Fund's net investment income (loss) ratio.
C Total distributions per share do not sum due to rounding.
D Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F 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.
G 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.
H Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
| VIP Value Portfolio Service Class 2 |
| |
| Years ended December 31, | | 2022 | | 2021 | | 2020 | | 2019 | | 2018 |
Selected Per-Share Data | | | | | | | | | | |
| Net asset value, beginning of period | $ | 17.93 | $ | 15.70 | $ | 15.55 | $ | 12.91 | $ | 16.15 |
| Income from Investment Operations | | | | | | | | | | |
Net investment income (loss) A,B | | .18 | | .26 | | .16 | | .22 | | .17 |
| Net realized and unrealized gain (loss) | | (.93) | | 4.33 | | .72 | | 3.68 | | (2.37) |
| Total from investment operations | | (.75) | | 4.59 | | .88 | | 3.90 | | (2.20) |
| Distributions from net investment income | | (.20) | | (.28) | | (.17) | | (.23) | | (.14) |
| Distributions from net realized gain | | (.59) | | (2.07) | | (.56) | | (1.03) | | (.90) |
| Total distributions | | (.79) | | (2.36) C | | (.73) | | (1.26) | | (1.04) |
| Net asset value, end of period | $ | 16.39 | $ | 17.93 | $ | 15.70 | $ | 15.55 | $ | 12.91 |
Total Return D,E | | (4.29)% | | 29.72% | | 6.02% | | 31.77% | | (14.02)% |
Ratios to Average Net Assets B,F,G | | | | | | | | | | |
| Expenses before reductions | | .89% | | .89% | | .92% | | .92% | | .92% |
| Expenses net of fee waivers, if any | | .89% | | .89% | | .92% | | .92% | | .92% |
| Expenses net of all reductions | | .89% | | .89% | | .91% | | .91% | | .91% |
| Net investment income (loss) | | 1.07% | | 1.37% | | 1.22% | | 1.53% | | 1.11% |
| Supplemental Data | | | | | | | | | | |
| Net assets, end of period (000 omitted) | $ | 43,667 | $ | 26,890 | $ | 10,204 | $ | 9,262 | $ | 7,764 |
Portfolio turnover rate H | | 48% | | 68% | | 81% | | 67% | | 64% |
A Calculated based on average shares outstanding during the period.
B Net investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any mutual funds or ETFs is not included in the Fund's net investment income (loss) ratio.
C Total distributions per share do not sum due to rounding.
D Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F 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.
G 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.
H Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
| VIP Value Portfolio Investor Class |
| |
| Years ended December 31, | | 2022 | | 2021 | | 2020 | | 2019 | | 2018 |
Selected Per-Share Data | | | | | | | | | | |
| Net asset value, beginning of period | $ | 18.23 | $ | 15.92 | $ | 15.75 | $ | 13.06 | $ | 16.33 |
| Income from Investment Operations | | | | | | | | | | |
Net investment income (loss) A,B | | .22 | | .29 | | .18 | | .25 | | .20 |
| Net realized and unrealized gain (loss) | | (.95) | | 4.40 | | .74 | | 3.73 | | (2.40) |
| Total from investment operations | | (.73) | | 4.69 | | .92 | | 3.98 | | (2.20) |
| Distributions from net investment income | | (.22) | | (.31) | | (.19) | | (.26) | | (.16) |
| Distributions from net realized gain | | (.59) | | (2.07) | | (.56) | | (1.03) | | (.90) |
| Total distributions | | (.81) | | (2.38) | | (.75) | | (1.29) | | (1.07) C |
| Net asset value, end of period | $ | 16.69 | $ | 18.23 | $ | 15.92 | $ | 15.75 | $ | 13.06 |
Total Return D,E | | (4.13)% | | 29.98% | | 6.20% | | 32.01% | | (13.88)% |
Ratios to Average Net Assets B,F,G | | | | | | | | | | |
| Expenses before reductions | | .72% | | .72% | | .74% | | .75% | | .75% |
| Expenses net of fee waivers, if any | | .72% | | .72% | | .74% | | .75% | | .75% |
| Expenses net of all reductions | | .72% | | .72% | | .73% | | .74% | | .74% |
| Net investment income (loss) | | 1.24% | | 1.55% | | 1.40% | | 1.70% | | 1.28% |
| Supplemental Data | | | | | | | | | | |
| Net assets, end of period (000 omitted) | $ | 317,484 | $ | 290,021 | $ | 190,229 | $ | 197,903 | $ | 170,228 |
Portfolio turnover rate H | | 48% | | 68% | | 81% | | 67% | | 64% |
A Calculated based on average shares outstanding during the period.
B Net investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any mutual funds or ETFs is not included in the Fund's net investment income (loss) ratio.
C Total distributions per share do not sum due to rounding.
D Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F 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.
G 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.
H Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
For the period ended December 31, 2022
1. Organization.
VIP Value Portfolio (the Fund) is a fund of Variable Insurance Products Fund (the Trust) and is authorized to issue an unlimited number of shares. 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. Shares of the Fund may only be purchased by insurance companies for the purpose of funding variable annuity or variable life insurance contracts. The Fund offers the following classes of shares: Initial Class 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.
2. Investments in Fidelity Central Funds.
Funds may 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 Schedule of Investments lists any Fidelity Central Funds held as an investment as of period end, but does not include the underlying holdings of each Fidelity Central Fund. An investing fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
Based on its investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the investing fund. These strategies are consistent with the investment objectives of the investing fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the investing fund.
| Fidelity Central Fund | Investment Manager | Investment Objective | Investment Practices | Expense Ratio A |
| Fidelity Money Market Central Funds | Fidelity Management & Research Company LLC (FMR) | Each fund seeks to obtain a high level of current income consistent with the preservation of capital and liquidity. | Short-term Investments | Less than .005% |
A Expenses expressed as a percentage of average net assets and are as of each underlying Central Fund's most recent annual or semi-annual shareholder report.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including investment valuation policies) of those funds, and are not covered by the Report of Independent Registered Public Accounting Firm, are available on the Securities and Exchange Commission website or upon request.
3. Significant Accounting Policies.
The 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 Fund's Schedule of Investments lists any underlying mutual funds or exchange-traded funds (ETFs) but does not include the underlying holdings of these funds. The following summarizes the significant accounting policies of the Fund:
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 designated the Fund's investment adviser as the valuation designee responsible for the fair valuation function and performing fair value determinations as needed. The investment adviser has established a Fair Value Committee (the Committee) to carry out the day-to-day fair valuation responsibilities and has adopted policies and procedures to govern the fair valuation process and the activities of the Committee. In accordance with these fair valuation policies and procedures, which have been approved by the Board, the Fund attempts to obtain prices from one or more third party pricing services 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 the policies and procedures. Factors used in determining fair value vary by investment type and may include market or investment specific events, transaction data, estimated cash flows, and market observations of comparable investments. The frequency that the fair valuation procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee manages the Fund's fair valuation practices and maintains the fair valuation policies and procedures. The Fund's investment adviser reports to the Board information regarding the fair valuation process and related material matters.
The 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 - unadjusted 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 the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, ETFs and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of December 31, 2022 is included at the end of the Fund's Schedule of Investments.
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.
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 realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's 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 and include proceeds received from litigation. Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of a fund include an amount in addition to trade execution, which may be rebated back to a fund. Any such rebates are included in net realized gain (loss) on investments in the Statement of Operations. 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 Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines 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. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. Funds may file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. Any withholding tax reclaims income is included in the Statement of Operations in dividends. Any receivables for withholding tax reclaims are included in the Statement of Assets and Liabilities in dividends receivable.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of a 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 a fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred, as applicable. Certain expense reductions may also differ by class, if applicable. 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 that fund and do not include any expenses associated with any underlying mutual funds or exchange-traded funds. Although not included in a fund's expenses, a fund indirectly bears its proportionate share of these expenses through the net asset value of each underlying mutual fund or exchange-traded fund. 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, the 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, 2022, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the 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. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The 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 the 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 foreign currency transactions, partnerships, losses deferred due to wash sales and excise tax regulations.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
| Gross unrealized appreciation | $101,324,934 |
| Gross unrealized depreciation | (36,877,407) |
| Net unrealized appreciation (depreciation) | $64,447,527 |
| Tax Cost | $421,364,727 |
The tax-based components of distributable earnings as of period end were as follows:
| Net unrealized appreciation (depreciation) on securities and other investments | $64,447,513 |
The Fund intends to elect to defer to its next fiscal year $55,166 of capital losses recognized during the period November 1, 2022 to December 31, 2022.
The tax character of distributions paid was as follows:
| | December 31, 2022 | December 31, 2021 |
| Ordinary Income | $6,187,116 | $23,701,657 |
| Long-term Capital Gains | 16,267,149 | 33,715,076 |
| Total | $22,454,265 | $57,416,733 |
Restricted Securities (including Private Placements). Funds may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities held at period end is included at the end of the Schedule of Investments, if applicable.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, as applicable, are noted in the table below.
| | Purchases ($) | Sales ($) |
| VIP Value Portfolio | 260,240,127 | 235,532,055 |
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company LLC (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .23% during the period. The group fee rate is based upon the monthly average net assets of a group of registered investment companies with which the investment adviser has management contracts. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annual management fee rate was .53% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has 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 re-allowed to insurance companies for the distribution of shares and providing shareholder support services, were as follows:
| Service Class | $300 |
| Service Class 2 | 82,944 |
| | $83,244 |
Transfer Agent Fees. Fidelity Investments Institutional Operations Company LLC (FIIOC), an affiliate of the investment adviser, is the Fund's transfer, dividend disbursing, and shareholder servicing agent. FIIOC receives an asset-based fee with respect to each class. Each class pays a fee for transfer agent services, typesetting and printing and mailing of shareholder reports, excluding mailing of proxy statements. For the period, transfer agent fees for each class were as follows:
| | Amount | % of Class-Level Average Net Assets |
| Initial Class | $87,760 | .06 |
| Service Class | 187 | .06 |
| Service Class 2 | 20,768 | .06 |
| Investor Class | 441,050 | .14 |
| | $549,765 | |
Accounting Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. For the period, the fees were equivalent to the following annual rates:
| | % of Average Net Assets |
| VIP Value Portfolio | .04 |
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:
| | Amount |
| VIP Value Portfolio | $6,025 |
Interfund Lending Program. Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (the SEC), the 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 the 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 Rate | Interest Expense |
| VIP Value Portfolio | Borrower | $4,997,000 | 3.32% | $1,380 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Any interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note. Interfund trades during the period are noted in the table below.
| | Purchases ($) | Sales ($) | Realized Gain (Loss) ($) |
| VIP Value Portfolio | 40,559,095 | 30,778,053 | 2,118,426 |
6. Committed Line of Credit.
Certain Funds participate with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which are reflected in Miscellaneous expenses on the Statement of Operations, and are listed below. During the period, there were no borrowings on this line of credit.
| | Amount |
| VIP Value Portfolio | $835 |
7. Security Lending.
Funds lend portfolio securities from time to time in order to earn additional income. Lending agents are used, including National Financial Services (NFS), an affiliate of the investment adviser. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of a fund's daily lending revenue, for its services as lending agent. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, a fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of a fund and any additional required collateral is delivered to a fund on the next business day. A fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund may apply collateral received from the borrower against the obligation. A fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Affiliated security lending activity, if any, was as follows:
| | Total Security Lending Fees Paid to NFS | Security Lending Income From Securities Loaned to NFS | Value of Securities Loaned to NFS at Period End |
| VIP Value Portfolio | $10,766 | $- | $- |
8. Expense Reductions.
During the period the investment adviser or an affiliate reimbursed and/or waived a portion of fund-level operating expenses in the amount of $15,917.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| | Year ended December 31, 2022 | Year ended December 31, 2021 |
| VIP Value Portfolio | | |
| Distributions to shareholders | | |
| Initial Class | $6,194,114 | $19,591,894 |
| Service Class | 12,231 | 40,837 |
| Service Class 2 | 1,749,253 | 3,281,098 |
| Investor Class | 14,498,667 | 34,502,904 |
Total | $22,454,265 | $57,416,733 |
10. Share Transactions.
Transactions for each class of shares were as follows and may contain in-kind transactions:
| | Shares | Shares | Dollars | Dollars |
| | Year ended December 31, 2022 | Year ended December 31, 2021 | Year ended December 31, 2022 | Year ended December 31, 2021 |
| VIP Value Portfolio | | | | |
| Initial Class | | | | |
| Shares sold | 3,686,707 | 2,560,940 | $65,469,302 | $47,739,910 |
| Reinvestment of distributions | 356,830 | 1,074,650 | 6,194,114 | 19,591,894 |
| Shares redeemed | (5,508,430) | (3,099,696) | (96,408,515) | (57,424,040) |
| Net increase (decrease) | (1,464,893) | 535,894 | $(24,745,099) | $9,907,764 |
| Service Class | | | | |
| Shares sold | 13,984 | - | $239,677 | $- |
| Reinvestment of distributions | 493 | 1,642 | 8,569 | 29,932 |
| Shares redeemed | (18,566) | (449) | (321,399) | (8,891) |
| Net increase (decrease) | (4,089) | 1,193 | $(73,153) | $21,041 |
| Service Class 2 | | | | |
| Shares sold | 2,159,822 | 1,266,412 | $36,638,710 | $23,516,757 |
| Reinvestment of distributions | 103,474 | 183,243 | 1,749,253 | 3,281,098 |
| Shares redeemed | (1,097,796) | (600,350) | (18,269,781) | (11,324,848) |
| Net increase (decrease) | 1,165,500 | 849,305 | $20,118,182 | $15,473,007 |
| Investor Class | | | | |
| Shares sold | 6,099,854 | 5,101,753 | $108,956,648 | $96,130,989 |
| Reinvestment of distributions | 839,517 | 1,896,770 | 14,498,665 | 34,502,904 |
| Shares redeemed | (3,819,745) | (3,041,764) | (64,822,837) | (57,420,613) |
| Net increase (decrease) | 3,119,626 | 3,956,759 | $58,632,476 | $73,213,280 |
11. Other.
A fund's 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 fund. In the normal course of business, a fund may also enter into contracts that provide general indemnifications. A fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against a fund. The risk of material loss from such claims is considered remote.
At the end of the period, the investment adviser or its affiliates were owners of record of more than 10% of the outstanding shares as follows:
| Fund | Affiliated % |
| VIP Value Portfolio | 66% |
Mutual funds managed by the investment adviser or its affiliates, in aggregate, were the owners of record of more than 20% of the total outstanding shares.
| Fund | % of shares held |
| VIP Value Portfolio | 23% |
12. Risk and Uncertainties.
Many factors affect a fund's performance. Developments that disrupt global economies and financial markets, such as pandemics, epidemics, outbreaks of infectious diseases, war, terrorism, and environmental disasters, may significantly affect a fund's investment performance. The effects of these developments to a fund will be impacted by the types of securities in which a fund invests, the financial condition, industry, economic sector, and geographic location of an issuer, and a fund's level of investment in the securities of that issuer.
To the Board of Trustees of Variable Insurance Products Fund and the Shareholders of VIP Value Portfolio:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statement of assets and liabilities of VIP Value Portfolio (the "Fund"), a fund of Variable Insurance Products Fund, including the schedule of investments, as of December 31, 2022, the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of December 31, 2022, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements and financial highlights 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 Fund 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 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 and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, 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 and financial highlights. 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 and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2022, 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 opinion.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
February 14, 2023
We have served as the auditor of one or more of the Fidelity investment companies since 1999.
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Jonathan Chiel, each of the Trustees oversees 318 funds. Mr. Chiel oversees 186 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 fund 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.
The 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 the 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 fund, is provided below.
Board Structure and Oversight Function. Robert A. Lawrence is an interested person and currently serves as Chair. The Trustees have determined that an interested Chair is appropriate and benefits shareholders because an interested Chair has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chair, 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 Chair 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. David M. Thomas serves as Lead Independent Trustee 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 fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and other equity funds. The asset allocation funds may invest in Fidelity ® funds overseen by the fund's Board. 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, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's 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 fund's 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 fund are carried out by or through FMR, its affiliates, and other service providers, the fund's 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 fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's 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.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Jonathan Chiel (1957)
Year of Election or Appointment: 2016
Trustee
Mr. Chiel also serves as Trustee of other Fidelity ® funds. Mr. Chiel is Executive Vice President and General Counsel for FMR LLC (diversified financial services company, 2012-present). Previously, Mr. Chiel served as general counsel (2004-2012) and senior vice president and deputy general counsel (2000-2004) for John Hancock Financial Services; a partner with Choate, Hall & Stewart (1996-2000) (law firm); and an Assistant United States Attorney for the United States Attorney's Office of the District of Massachusetts (1986-95), including Chief of the Criminal Division (1993-1995). Mr. Chiel is a director on the boards of the Boston Bar Foundation and the Maimonides School.
Bettina Doulton (1964)
Year of Election or Appointment: 2021
Trustee
Ms. Doulton also serves as Trustee of other Fidelity ® funds. Prior to her retirement, Ms. Doulton served in a variety of positions at Fidelity Investments, including as a managing director of research (2006-2007), portfolio manager to certain Fidelity ® funds (1993-2005), equity analyst and portfolio assistant (1990-1993), and research assistant (1987-1990). Ms. Doulton currently owns and operates Phi Builders + Architects and Cellardoor Winery. Previously, Ms. Doulton served as a member of the Board of Brown Capital Management, LLC (2014-2018).
Robert A. Lawrence (1952)
Year of Election or Appointment: 2020
Trustee
Chair of the Board of Trustees
Mr. Lawrence also serves as Trustee of other funds. Previously, Mr. Lawrence served as a Trustee and Member of the Advisory Board of certain funds. Prior to his retirement in 2008, Mr. Lawrence served as Vice President of certain Fidelity ® funds (2006-2008), Senior Vice President, Head of High Income Division of Fidelity Management & Research Company (investment adviser firm, 2006-2008), and President of Fidelity Strategic Investments (investment adviser firm, 2002-2005).
* 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 the 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+
Thomas P. Bostick (1956)
Year of Election or Appointment: 2021
Trustee
Lieutenant General Bostick also serves as Trustee of other Fidelity ® funds. Prior to his retirement, General Bostick (United States Army, Retired) held a variety of positions within the U.S. Army, including Commanding General and Chief of Engineers, U.S. Army Corps of Engineers (2012-2016) and Deputy Chief of Staff and Director of Human Resources, U.S. Army (2009-2012). General Bostick currently serves as a member of the Board and Finance and Governance Committees of CSX Corporation (transportation, 2020-present) and a member of the Board and Corporate Governance and Nominating Committee of Perma-Fix Environmental Services, Inc. (nuclear waste management, 2020-present). General Bostick serves as Chief Executive Officer of Bostick Global Strategies, LLC (consulting, 2016-present) and as a member of the Board of HireVue, Inc. (video interview and assessment, 2020-present). Previously, General Bostick served as a Member of the Advisory Board of certain Fidelity® funds (2021), President, Intrexon Bioengineering (2018-2020) and Chief Operating Officer (2017-2020) and Senior Vice President of the Environment Sector (2016-2017) of Intrexon Corporation (biopharmaceutical company).
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity ® funds. Prior to his retirement in May 2003, Mr. Dirks served as Chief Operating Officer and as a member of the Board of The Depository Trust & Clearing Corporation (financial markets infrastructure), President, Chief Operating Officer and a member of the Board of The Depository Trust Company (DTC), President and a member of the Board of the National Securities Clearing Corporation (NSCC), Chief Executive Officer and a member of the Board of the Government Securities Clearing Corporation and Chief Executive Officer and a member of the Board of the Mortgage-Backed Securities Clearing Corporation. Mr. Dirks currently serves as a member of the Finance Committee (2016-present) and Board (2017-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as Trustee of other Fidelity ® funds. Mr. Donahue serves as President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006) and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue currently serves as a member (2007-present) and Co-Chairman (2016-present) of the Board of United Way of New York and a member of the Board of The Leadership Academy (previously NYC Leadership Academy) (2012-present). Mr. Donahue previously served as a member of the Advisory Board of certain Fidelity® funds (2015-2018).
Vicki L. Fuller (1957)
Year of Election or Appointment: 2020
Trustee
Ms. Fuller also serves as Trustee of other Fidelity ® funds. Previously, Ms. Fuller served as a member of the Advisory Board of certain Fidelity ® funds (2018-2020), Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006). Ms. Fuller currently serves as a member of the Board, Audit Committee and Nominating and Governance Committee of two Blackstone business development companies (2020-present), as a member of the Board of Treliant, LLC (consulting, 2019-present), as a member of the Advisory Board of Ariel Alternatives, LLC (private equity, 2021-present) and as a member of the Board and Chair of the Audit Committee of Gusto, Inc. (software, 2021-present). In addition, Ms. Fuller currently serves as a member of the Board of Roosevelt University (2019-present) and as a member of the Executive Board of New York University's Stern School of Business. Ms. Fuller previously served as a member of the Board, Audit Committee and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-2021).
Patricia L. Kampling (1959)
Year of Election or Appointment: 2020
Trustee
Ms. Kampling also serves as Trustee of other Fidelity ® funds. Prior to her retirement, Ms. Kampling served as Chairman of the Board and Chief Executive Officer (2012-2019), President and Chief Operating Officer (2011-2012) and Executive Vice President and Chief Financial Officer (2010-2011) of Alliant Energy Corporation. Ms. Kampling currently serves as a member of the Board, Finance Committee and Governance, Compensation and Nominating Committee of Xcel Energy Inc. (utilities company, 2020-present) and as a member of the Board, Audit, Finance and Risk Committee and Safety, Environmental, Technology and Operations Committee and Chair of the Executive Development and Compensation Committee of American Water Works Company, Inc. (utilities company, 2019-present). In addition, Ms. Kampling currently serves as a member of the Board of the Nature Conservancy, Wisconsin Chapter (2019-present). Previously, Ms. Kampling served as a Member of the Advisory Board of certain Fidelity® funds (2020), a member of the Board, Compensation Committee and Executive Committee and Chair of the Audit Committee of Briggs & Stratton Corporation (manufacturing, 2011-2021), a member of the Board of Interstate Power and Light Company (2012-2019) and Wisconsin Power and Light Company (2012-2019) (each a subsidiary of Alliant Energy Corporation) and as a member of the Board and Workforce Development Committee of the Business Roundtable (2018-2019).
Thomas A. Kennedy (1955)
Year of Election or Appointment: 2021
Trustee
Mr. Kennedy also serves as Trustee of other Fidelity ® funds. Previously, Mr. Kennedy served as a Member of the Advisory Board of certain Fidelity ® funds (2020) and held a variety of positions at Raytheon Company (aerospace and defense, 1983-2020), including Chairman and Chief Executive Officer (2014-2020) and Executive Vice President and Chief Operating Officer (2013-2014). Mr. Kennedy currently serves as Executive Chairman of the Board of Directors of Raytheon Technologies Corporation (aerospace and defense, 2020-present). He is also a member of the Rutgers School of Engineering Industry Advisory Board (2011-present) and a member of the UCLA Engineering Dean's Executive Board (2016-present).
Oscar Munoz (1959)
Year of Election or Appointment: 2021
Trustee
Mr. Munoz also serves as Trustee of other Fidelity ® funds. Prior to his retirement, Mr. Munoz served as Executive Chairman (2020-2021), Chief Executive Officer (2015-2020), President (2015-2016) and a member of the Board (2010-2021) of United Airlines Holdings, Inc. Mr. Munoz currently serves as a member of the Board of CBRE Group, Inc. (commercial real estate, 2020-present), a member of the Board of Univision Communications, Inc. (Hispanic media, 2020-present) and a member of the Advisory Board of Salesforce.com, Inc. (cloud-based software, 2020-present). Previously, Mr. Munoz served as a Member of the Advisory Board of certain Fidelity ® funds (2021).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Lead Independent Trustee
Mr. Thomas also serves as Trustee of other Fidelity ® funds. Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions). Mr. Thomas currently serves as a member of the Board of Fortune Brands Home and Security (home and security products, 2004-present) and as Director (2013-present) and Non-Executive Chairman of the Board (2022-present) of Interpublic Group of Companies, Inc. (marketing communication).
Susan Tomasky (1953)
Year of Election or Appointment: 2020
Trustee
Ms. Tomasky also serves as Trustee of other Fidelity ® funds. Prior to her retirement, Ms. Tomasky served in various executive officer positions at American Electric Power Company, Inc. (1998-2011), including most recently as President of AEP Transmission (2007-2011). Ms. Tomasky currently serves as a member of the Board and Sustainability Committee and as Chair of the Audit Committee of Marathon Petroleum Corporation (2018-present) and as a member of the Board, Executive Committee, Corporate Governance Committee and Organization and Compensation Committee and as Chair of the Audit Committee of Public Service Enterprise Group, Inc. (utilities company, 2012-present) and as a member of the Board of its subsidiary company, Public Service Electric and Gas Co. (2021-present). In addition, Ms. Tomasky currently serves as a member (2009-present) and President (2020-present) of the Board of the Royal Shakespeare Company - America (2009-present), as a member of the Board of the Columbus Association for the Performing Arts (2011-present) and as a member of the Board and Kenyon in the World Committee of Kenyon College (2016-present). Previously, Ms. Tomasky served as a Member of the Advisory Board of certain Fidelity ® funds (2020), as a member of the Board of the Columbus Regional Airport Authority (2007-2020), as a member of the Board (2011-2018) and Lead Independent Director (2015-2018) of Andeavor Corporation (previously Tesoro Corporation) (independent oil refiner and marketer) and as a member of the Board of Summit Midstream Partners LP (energy, 2012-2018).
Michael E. Wiley (1950)
Year of Election or Appointment: 2020
Trustee
Mr. Wiley also serves as Trustee of other Fidelity ® funds. Previously, Mr. Wiley served as a member of the Advisory Board of certain Fidelity ® funds (2018-2020), Chairman, President and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004). Mr. Wiley also previously served as a member of the Board of Andeavor Corporation (independent oil refiner and marketer, 2005-2018), a member of the Board of Andeavor Logistics LP (natural resources logistics, 2015-2018) and a member of the Board of High Point Resources (exploration and production, 2005-2020).
+ 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 the fund.
Advisory Board Members and Officers:
Correspondence intended for a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as a Member of the Advisory Board of other Fidelity ® funds. Mr. Lynch is Vice Chairman and a Director of Fidelity Management & Research Company LLC (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served as Vice Chairman and a Director of FMR Co., Inc. (investment adviser firm) and on the Special Olympics International Board of Directors (1997-2006).
Craig S. Brown (1977)
Year of Election or Appointment: 2022
Deputy Treasurer
Mr. Brown also serves as an officer of other funds. Mr. Brown serves as Assistant Treasurer of FIMM, LLC (2021-present) and is an employee of Fidelity Investments (2013-present). Previously, Mr. Brown served as Assistant Treasurer of certain Fidelity ® funds (2019-2022).
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).
William C. Coffey (1969)
Year of Election or Appointment: 2019
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Secretary and CLO of certain funds (2018-2019); CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-2019); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-2019); CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-2019); and Assistant Secretary of certain funds (2009-2018).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2018
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Co-Head of Equity (2018-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Executive Vice President of Fidelity SelectCo, LLC (2019), Head of Global Equity Research (2016-2018), Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as an officer of other funds. Mr. Davis serves as Assistant Treasurer of FIMM, LLC (2021-present), FMR Capital, Inc. (2017-present), FD Funds GP LLC (2021-present), FD Funds Holding LLC (2021-present), and FD Funds Management LLC (2021-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
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato serves as Assistant Treasurer of FIMM, LLC (2021-present) and 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)
Year of Election or Appointment: 2020
Assistant Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FIMM, LLC (2021-present) and 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).
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as Vice President of other funds. Ms. Holding serves as Co-Head of Equity (2018-present) and is an employee of Fidelity Investments (2013-present). Previously, Ms. Holding served as Executive Vice President of Fidelity SelectCo, LLC (2019) and as Chief Investment Officer of Fidelity Institutional Asset Management (2013-2018).
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); CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2019-present); Secretary of FD Funds GP LLC (2021-present), FD Funds Holding LLC (2021-present), FD Funds Management LLC (2021-present), and Fidelity Diversifying Solutions LLC (investment adviser firm, 2022-present); and Assistant Secretary of FIMM, LLC (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)
Year of Election or Appointment: 2020
Deputy Treasurer
Mr. Maher also serves as an officer of other funds. Mr. Maher serves as Assistant Treasurer of FIMM, LLC (2021-present) and 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).
Jason P. Pogorelec (1975)
Year of Election or Appointment: 2020
Chief Compliance Officer
Mr. Pogorelec also serves as Chief Compliance Officer of other funds. Mr. Pogorelec is a senior Vice President of Asset Management Compliance for Fidelity Investments and is an employee of Fidelity Investments (2006-present). Previously, Mr. Pogorelec served as Vice President, Associate General Counsel for Fidelity Investments (2010-2020) and Assistant Secretary of certain Fidelity ® funds (2015-2020).
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)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FIMM, LLC (2021-present) and 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.
Jim Wegmann (1979)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Wegmann also serves as an officer of other funds. Mr. Wegmann serves as Assistant Treasurer of FIMM, LLC (2021-present) and is an employee of Fidelity Investments (2011-present). Previously, Mr. Wegmann served as Assistant Treasurer of certain Fidelity ® funds (2019-2021).
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, 2022 to December 31, 2022). |
Actual Expenses
The 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 Purposes
The 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 comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| | | | | Annualized Expense Ratio- A | | Beginning Account Value July 1, 2022 | | Ending Account Value December 31, 2022 | | Expenses Paid During Period- C July 1, 2022 to December 31, 2022 |
| VIP Value Portfolio | | | | | | | | | | |
| Initial Class | | | | .64% | | | | | | |
| Actual | | | | | | $ 1,000 | | $ 1,052.30 | | $ 3.31 |
Hypothetical- B | | | | | | $ 1,000 | | $ 1,021.98 | | $ 3.26 |
| Service Class | | | | .74% | | | | | | |
| Actual | | | | | | $ 1,000 | | $ 1,051.60 | | $ 3.83 |
Hypothetical- B | | | | | | $ 1,000 | | $ 1,021.48 | | $ 3.77 |
| Service Class 2 | | | | .89% | | | | | | |
| Actual | | | | | | $ 1,000 | | $ 1,051.10 | | $ 4.60 |
Hypothetical- B | | | | | | $ 1,000 | | $ 1,020.72 | | $ 4.53 |
| Investor Class | | | | .72% | | | | | | |
| Actual | | | | | | $ 1,000 | | $ 1,051.80 | | $ 3.72 |
Hypothetical- B | | | | | | $ 1,000 | | $ 1,021.58 | | $ 3.67 |
| |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B 5% return per year before expenses
C Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/ 365 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
The dividend and capital gains distributions for the fund(s) are available on Fidelity.com or Institutional.Fidelity.com.
The fund hereby designates as a capital gain dividend with respect to the taxable year ended December 31, 2022, $ 9,991,084, or, if subsequently determined to be different, the net capital gain of such year.
Initial Class designates 88%; Service Class designates 98%; Service Class 2 designates 100%; and Investor Class designates 93%; of the dividends distributed in December 2022, as qualifying for the dividends-received deduction for corporate shareholders.
1.768949.121
VIPVAL-ANN-0323
Fidelity® Variable Insurance Products:
Stock Selector All Cap Portfolio
Annual Report
December 31, 2022
Contents
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. © 2023 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund 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 GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Average 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 |
| | | | |
Periods ended December 31, 2022 | Past 1 year | Life of Fund A |
| Initial Class | -19.42% | -15.33% |
| Service Class | -19.51% | -15.42% |
| Service Class 2 | -19.63% | -15.55% |
| Investor Class | -19.51% | -15.41% |
A From October 21, 2021
| $10,000 Over Life of Fund |
| |
Let's say hypothetically that $10,000 was invested in VIP Stock Selector All Cap Portfolio - Initial Class, a class of the fund, on October 21, 2021, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the MSCI US Investable Market 2500 Index performed over the same period. |
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|
Market Recap:
U.S. equities returned -18.11% in 2022, according to the S&P 500 ® index, as a multitude of risk factors challenged the global economy. It was the index's lowest calendar-year return since 2008 and first retreat since 2018. High inflation prompted the Federal Reserve to aggressively tighten monetary policy, and market interest rates eclipsed their highest level in a decade, stoking recession fears and sending stocks into bear market territory. Since March, the Fed hiked its benchmark rate seven times, by 4.25 percentage points - the fastest-ever pace of monetary tightening - while also shrinking its massive portfolio. Against this backdrop, the S&P 500 ® posted its worst year-to-date result (-23.87%) in 20 years through September, a seasonally weak month that stayed true to form, with volatility spiking due to growing certainty the Fed would persist in its effort to cool inflation, even at the expense of economic growth. Three of the index's worst monthly returns ever were recorded in 2022, as it shed 8% to 9% in April, June and September. Gains of similar proportion were made in July and October, amid optimism on inflation and policy easing. November (+6%) began with a rate hike of 0.75% and ended on a high note when the Fed signaled its intent to slow its pace of rate rises. For the year, value stocks handily outpaced growth. This headwind was pronounced in the growthier communication services (-40%), consumer discretionary (-37%) and information technology (-28%) sectors. In sharp contrast, energy (+66%) shined.
Comments from Co-Portfolio Manager Christopher Lee:
For the year ending December 31, 2022, the fund's share classes returned roughly -20% to -19%, modestly trailing the -19.24% result of the benchmark MSCI US Investable Market 2500 Index. Versus the benchmark, security selection in the health care sector notably detracted from performance, particularly among pharmaceuticals, biotechnology & life sciences stocks. Investment choices in industrials hurt to a lesser extent. The fund's biggest individual relative detractor was Chevron (+58%), an outperforming benchmark component the fund didn't own. Negligible exposure to Merck (+49%), another strong-performing stock in the benchmark, also detracted. Merck was not held in the portfolio at year-end. The decision to avoid Johnson & Johnson (+6%), another strong performer in the benchmark, also hurt. Conversely, investment choices in financials and information technology provided a modest lift to fund performance this period. The fund's modest cash position helped as well. At the stock level, underweighting Nvidia (-50%) topped the fund's list of relative contributors. We meaningfully added to this position in 2022. Overweighting Traveler's Companies proved timely, given this stock's 22% gain for the year. Exxon Mobil was another overweighting that added value compared with the benchmark, given its 88% gain within the market-leading energy sector. Exxon Mobil and Travelers were both top- 10 holdings at year-end. Noteworthy position changes during the period included greater exposure to energy and health care stocks, and smaller allocations to the communication services, consumer discretionary and information technology sectors.
Notes to shareholders:
On April 1, 2022, Ashley Fernandes assumed co-management responsibilities for the fund's commodity equity sleeve, joining Jody Simes. On July 10, 2022, Katie Shaw came off the fund. On August 1, 2022, Chris Lee assumed co-management responsibilities for the fund. After nearly four decades with Fidelity, Robert Stansky retired from Fidelity on December 31, 2022. On January 1, 2023, Chris Lee assumed Stansky's responsibilities for the fund. On January 1, 2023, Jody Simes retired from the firm and came off the fund and the fund's materials sleeve.
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.
Top Holdings (% of Fund's net assets) |
| |
| Microsoft Corp. | 5.7 | |
| Apple, Inc. | 5.6 | |
| Alphabet, Inc. Class A | 3.1 | |
| Amazon.com, Inc. | 2.3 | |
| Exxon Mobil Corp. | 1.9 | |
| UnitedHealth Group, Inc. | 1.6 | |
| Bank of America Corp. | 1.5 | |
| The Travelers Companies, Inc. | 1.5 | |
| Wells Fargo & Co. | 1.2 | |
| Procter & Gamble Co. | 1.1 | |
| | 25.5 | |
| |
| Market Sectors (% of Fund's net assets) |
| |
| Information Technology | 24.4 | |
| Health Care | 15.1 | |
| Financials | 11.4 | |
| Consumer Discretionary | 9.9 | |
| Industrials | 9.4 | |
| Communication Services | 7.3 | |
| Consumer Staples | 7.0 | |
| Energy | 5.2 | |
| Real Estate | 3.2 | |
| Materials | 3.1 | |
| Utilities | 3.0 | |
| |
Asset Allocation (% of Fund's net assets) |
|
Foreign investments - 8.9% |
Futures - 0.4% |
|
Showing Percentage of Net Assets
| Common Stocks - 98.9% |
| | | Shares | Value ($) |
| COMMUNICATION SERVICES - 7.3% | | | |
| Diversified Telecommunication Services - 0.2% | | | |
| AT&T, Inc. | | 23,400 | 430,794 |
| Liberty Global PLC Class C (a) | | 379,600 | 7,375,628 |
| | | | 7,806,422 |
| Entertainment - 1.8% | | | |
| Activision Blizzard, Inc. | | 125,100 | 9,576,405 |
| Cinemark Holdings, Inc. (a)(b) | | 125,700 | 1,088,562 |
| Electronic Arts, Inc. | | 98,800 | 12,071,384 |
| Endeavor Group Holdings, Inc. (a) | | 71,800 | 1,618,372 |
| Lions Gate Entertainment Corp.: | | | |
| Class A (a) | | 23,700 | 135,327 |
| Class B (a) | | 137,100 | 744,453 |
| Marcus Corp. (b) | | 95,400 | 1,372,806 |
| Netflix, Inc. (a) | | 89,900 | 26,509,712 |
| Take-Two Interactive Software, Inc. (a) | | 37,700 | 3,925,701 |
| The Walt Disney Co. (a) | | 113,000 | 9,817,440 |
| Warner Bros Discovery, Inc. (a) | | 28,505 | 270,227 |
| Warner Music Group Corp. Class A | | 54,700 | 1,915,594 |
| World Wrestling Entertainment, Inc. Class A (b) | | 31,200 | 2,137,824 |
| | | | 71,183,807 |
| Interactive Media & Services - 4.2% | | | |
| Alphabet, Inc. Class A (a) | | 1,379,500 | 121,713,285 |
| Angi, Inc. (a) | | 335,800 | 789,130 |
| IAC, Inc. (a) | | 4,000 | 177,600 |
| Meta Platforms, Inc. Class A (a) | | 327,800 | 39,447,452 |
| Snap, Inc. Class A (a) | | 451,300 | 4,039,135 |
| Zoominfo Technologies, Inc. (a) | | 33,500 | 1,008,685 |
| | | | 167,175,287 |
| Media - 0.7% | | | |
| Advantage Solutions, Inc. Class A (a) | | 454,500 | 945,360 |
| Altice U.S.A., Inc. Class A (a) | | 195,700 | 900,220 |
| Comcast Corp. Class A | | 347,100 | 12,138,087 |
| DISH Network Corp. Class A (a) | | 20,500 | 287,820 |
| Liberty Broadband Corp.: | | | |
| Class A (a) | | 87,000 | 6,598,950 |
| Class C (a) | | 71,600 | 5,460,932 |
| S4 Capital PLC (a) | | 189,600 | 433,678 |
| TechTarget, Inc. (a) | | 6,800 | 299,608 |
| | | | 27,064,655 |
| Wireless Telecommunication Services - 0.4% | | | |
| T-Mobile U.S., Inc. (a) | | 112,700 | 15,778,000 |
TOTAL COMMUNICATION SERVICES | | | 289,008,171 |
| CONSUMER DISCRETIONARY - 9.9% | | | |
| Auto Components - 0.1% | | | |
| Adient PLC (a) | | 71,050 | 2,464,725 |
| Automobiles - 0.7% | | | |
| Ferrari NV | | 11,500 | 2,463,530 |
| Tesla, Inc. (a) | | 217,263 | 26,762,456 |
| | | | 29,225,986 |
| Hotels, Restaurants & Leisure - 2.1% | | | |
| Airbnb, Inc. Class A (a) | | 38,600 | 3,300,300 |
| ARAMARK Holdings Corp. | | 174,800 | 7,226,232 |
| Booking Holdings, Inc. (a) | | 8,262 | 16,650,243 |
| Caesars Entertainment, Inc. (a) | | 116,200 | 4,833,920 |
| Churchill Downs, Inc. | | 42,615 | 9,010,089 |
| Domino's Pizza, Inc. | | 18,454 | 6,392,466 |
| Hilton Worldwide Holdings, Inc. | | 79,978 | 10,106,020 |
| Marriott International, Inc. Class A | | 72,695 | 10,823,559 |
| McDonald's Corp. | | 27,980 | 7,373,569 |
| Penn Entertainment, Inc. (a) | | 75,000 | 2,227,500 |
| Planet Fitness, Inc. (a) | | 49,600 | 3,908,480 |
| | | | 81,852,378 |
| Household Durables - 0.2% | | | |
| D.R. Horton, Inc. | | 36,800 | 3,280,352 |
| Helen of Troy Ltd. (a) | | 4,800 | 532,368 |
| Mohawk Industries, Inc. (a) | | 28,283 | 2,891,088 |
| Tupperware Brands Corp. (a) | | 31,600 | 130,824 |
| | | | 6,834,632 |
| Internet & Direct Marketing Retail - 2.7% | | | |
| Amazon.com, Inc. (a) | | 1,070,936 | 89,958,624 |
| eBay, Inc. | | 228,239 | 9,465,071 |
| Uber Technologies, Inc. (a) | | 284,500 | 7,035,685 |
| | | | 106,459,380 |
| Multiline Retail - 0.6% | | | |
| Dollar General Corp. | | 66,030 | 16,259,888 |
| Ollie's Bargain Outlet Holdings, Inc. (a) | | 59,500 | 2,786,980 |
| Target Corp. | | 41,135 | 6,130,760 |
| | | | 25,177,628 |
| Specialty Retail - 2.3% | | | |
| Burlington Stores, Inc. (a) | | 42,246 | 8,565,799 |
| Five Below, Inc. (a) | | 30,772 | 5,442,644 |
| Industria de Diseno Textil SA | | 177,800 | 4,722,555 |
| Lowe's Companies, Inc. | | 143,589 | 28,608,672 |
| The Home Depot, Inc. | | 46,624 | 14,726,657 |
| TJX Companies, Inc. | | 324,820 | 25,855,672 |
| Warby Parker, Inc. (a) | | 100,000 | 1,349,000 |
| | | | 89,270,999 |
| Textiles, Apparel & Luxury Goods - 1.2% | | | |
| Capri Holdings Ltd. (a) | | 195,368 | 11,198,494 |
| lululemon athletica, Inc. (a) | | 31,900 | 10,220,122 |
| LVMH Moet Hennessy Louis Vuitton SE | | 3,600 | 2,619,696 |
| NIKE, Inc. Class B | | 93,669 | 10,960,210 |
| PVH Corp. | | 98,140 | 6,927,703 |
| Tapestry, Inc. | | 201,697 | 7,680,622 |
| | | | 49,606,847 |
TOTAL CONSUMER DISCRETIONARY | | | 390,892,575 |
| CONSUMER STAPLES - 7.0% | | | |
| Beverages - 2.2% | | | |
| Boston Beer Co., Inc. Class A (a) | | 24,800 | 8,172,096 |
| Brown-Forman Corp. Class B (non-vtg.) | | 400 | 26,272 |
| Constellation Brands, Inc. Class A (sub. vtg.) | | 38,385 | 8,895,724 |
| Diageo PLC | | 45,845 | 2,006,722 |
| Keurig Dr. Pepper, Inc. | | 233,900 | 8,340,874 |
| Molson Coors Beverage Co. Class B | | 13,800 | 710,976 |
| Monster Beverage Corp. (a) | | 104,500 | 10,609,885 |
| PepsiCo, Inc. | | 46,600 | 8,418,756 |
| Primo Water Corp. | | 68,500 | 1,064,490 |
| The Coca-Cola Co. | | 626,400 | 39,845,304 |
| The Vita Coco Co., Inc. (a) | | 1,500 | 20,730 |
| | | | 88,111,829 |
| Food & Staples Retailing - 1.3% | | | |
| Albertsons Companies, Inc. | | 69,800 | 1,447,652 |
| Alimentation Couche-Tard, Inc. Class A (multi-vtg.) | | 86,000 | 3,779,173 |
| Costco Wholesale Corp. | | 7,800 | 3,560,700 |
| Grocery Outlet Holding Corp. (a) | | 1,600 | 46,704 |
| Kroger Co. | | 20,900 | 931,722 |
| Performance Food Group Co. (a) | | 158,346 | 9,245,823 |
| Sysco Corp. | | 35,700 | 2,729,265 |
| U.S. Foods Holding Corp. (a) | | 124,300 | 4,228,686 |
| Walgreens Boots Alliance, Inc. | | 800 | 29,888 |
| Walmart, Inc. | | 181,000 | 25,663,990 |
| | | | 51,663,603 |
| Food Products - 1.0% | | | |
| Archer Daniels Midland Co. | | 8,400 | 779,940 |
| Bunge Ltd. | | 51,350 | 5,123,190 |
| Conagra Brands, Inc. | | 60,400 | 2,337,480 |
| Darling Ingredients, Inc. (a) | | 38,997 | 2,440,822 |
| Freshpet, Inc. (a) | | 60,400 | 3,187,308 |
| Ingredion, Inc. | | 700 | 68,551 |
| Laird Superfood, Inc. (a) | | 35,100 | 29,484 |
| Lamb Weston Holdings, Inc. | | 5,700 | 509,352 |
| McCormick & Co., Inc. (non-vtg.) | | 8,000 | 663,120 |
| Mondelez International, Inc. | | 220,500 | 14,696,325 |
| Nomad Foods Ltd. (a) | | 246,500 | 4,249,660 |
| Sovos Brands, Inc. (a) | | 13,300 | 191,121 |
| The Hain Celestial Group, Inc. (a) | | 18,800 | 304,184 |
| The Kraft Heinz Co. | | 3,000 | 122,130 |
| The Simply Good Foods Co. (a) | | 15,000 | 570,450 |
| TreeHouse Foods, Inc. (a) | | 53,326 | 2,633,238 |
| Tyson Foods, Inc. Class A | | 34,000 | 2,116,500 |
| | | | 40,022,855 |
| Household Products - 1.5% | | | |
| Church & Dwight Co., Inc. | | 5,000 | 403,050 |
| Colgate-Palmolive Co. | | 5,500 | 433,345 |
| Energizer Holdings, Inc. | | 158,200 | 5,307,610 |
| Kimberly-Clark Corp. | | 29,400 | 3,991,050 |
| Procter & Gamble Co. | | 279,500 | 42,361,020 |
| Reckitt Benckiser Group PLC | | 8,600 | 596,121 |
| Reynolds Consumer Products, Inc. | | 47,748 | 1,431,485 |
| Spectrum Brands Holdings, Inc. | | 44,500 | 2,710,940 |
| The Clorox Co. | | 14,600 | 2,048,818 |
| | | | 59,283,439 |
| Personal Products - 0.3% | | | |
| BellRing Brands, Inc. (a) | | 23,600 | 605,104 |
| Estee Lauder Companies, Inc. Class A | | 12,100 | 3,002,131 |
| Haleon PLC (a) | | 61,900 | 244,969 |
| Herbalife Nutrition Ltd. (a) | | 121,300 | 1,804,944 |
| Olaplex Holdings, Inc. (a) | | 355,200 | 1,850,592 |
| Shiseido Co. Ltd. | | 8,800 | 431,321 |
| The Beauty Health Co. (a)(b) | | 170,404 | 1,550,676 |
| | | | 9,489,737 |
| Tobacco - 0.7% | | | |
| Altria Group, Inc. | | 301,500 | 13,781,565 |
| Philip Morris International, Inc. | | 146,300 | 14,807,023 |
| | | | 28,588,588 |
TOTAL CONSUMER STAPLES | | | 277,160,051 |
| ENERGY - 5.2% | | | |
| Energy Equipment & Services - 0.7% | | | |
| Championx Corp. | | 35,400 | 1,026,246 |
| Expro Group Holdings NV (a) | | 304,400 | 5,518,772 |
| Schlumberger Ltd. | | 297,700 | 15,915,042 |
| Valaris Ltd. (a) | | 10,400 | 703,248 |
| Weatherford International PLC (a) | | 110,500 | 5,626,660 |
| | | | 28,789,968 |
| Oil, Gas & Consumable Fuels - 4.5% | | | |
| Antero Resources Corp. (a) | | 115,100 | 3,566,949 |
| Canadian Natural Resources Ltd. | | 305,500 | 16,964,952 |
| CVR Energy, Inc. | | 15,400 | 482,636 |
| Delek U.S. Holdings, Inc. | | 29,500 | 796,500 |
| Exxon Mobil Corp. | | 679,200 | 74,915,760 |
| Hess Corp. | | 177,100 | 25,116,322 |
| Imperial Oil Ltd. | | 167,400 | 8,153,641 |
| Kosmos Energy Ltd. (a) | | 931,377 | 5,923,558 |
| MEG Energy Corp. (a) | | 1,153,200 | 16,054,520 |
| PBF Energy, Inc. Class A | | 13,000 | 530,140 |
| Phillips 66 Co. | | 101,700 | 10,584,936 |
| Talos Energy, Inc. (a) | | 37,200 | 702,336 |
| Tourmaline Oil Corp. | | 98,600 | 4,975,149 |
| Valero Energy Corp. | | 81,700 | 10,364,462 |
| | | | 179,131,861 |
TOTAL ENERGY | | | 207,921,829 |
| FINANCIALS - 11.4% | | | |
| Banks - 5.2% | | | |
| AIB Group PLC | | 347,000 | 1,343,149 |
| Bank of America Corp. | | 1,756,213 | 58,165,775 |
| Bank of Ireland Group PLC | | 818,600 | 7,798,806 |
| BankUnited, Inc. | | 41,569 | 1,412,099 |
| BNP Paribas SA | | 80,446 | 4,580,530 |
| Citizens Financial Group, Inc. | | 80,099 | 3,153,498 |
| Comerica, Inc. | | 79,609 | 5,321,862 |
| DNB Bank ASA | | 55,200 | 1,090,207 |
| JPMorgan Chase & Co. | | 152,714 | 20,478,947 |
| KBC Group NV | | 54,200 | 3,489,685 |
| M&T Bank Corp. | | 49,118 | 7,125,057 |
| NatWest Group PLC | | 478,800 | 1,527,003 |
| Piraeus Financial Holdings SA (a) | | 887,300 | 1,365,827 |
| PNC Financial Services Group, Inc. | | 48,577 | 7,672,251 |
| Signature Bank | | 28,552 | 3,289,761 |
| Societe Generale Series A | | 168,692 | 4,231,413 |
| Sumitomo Mitsui Financial Group, Inc. | | 95,400 | 3,838,175 |
| U.S. Bancorp | | 366,607 | 15,987,731 |
| UniCredit SpA | | 429,786 | 6,098,476 |
| Wells Fargo & Co. | | 1,130,272 | 46,668,931 |
| Wintrust Financial Corp. | | 35,754 | 3,021,928 |
| | | | 207,661,111 |
| Capital Markets - 1.8% | | | |
| Bank of New York Mellon Corp. | | 374,584 | 17,051,064 |
| BlackRock, Inc. Class A | | 17,787 | 12,604,402 |
| Brookfield Asset Management Ltd. Class A | | 23,074 | 661,532 |
| Brookfield Asset Management, Inc. Class A | | 90,696 | 2,853,296 |
| Cboe Global Markets, Inc. | | 35,617 | 4,468,865 |
| Intercontinental Exchange, Inc. | | 77,214 | 7,921,384 |
| Lazard Ltd. Class A | | 58,200 | 2,017,794 |
| Patria Investments Ltd. | | 238,500 | 3,322,305 |
| State Street Corp. | | 191,823 | 14,879,710 |
| StepStone Group, Inc. Class A | | 141,959 | 3,574,528 |
| Virtu Financial, Inc. Class A | | 143,446 | 2,927,733 |
| | | | 72,282,613 |
| Consumer Finance - 0.5% | | | |
| American Express Co. | | 48,582 | 7,177,991 |
| Capital One Financial Corp. | | 66,074 | 6,142,239 |
| NerdWallet, Inc. (a) | | 97,500 | 936,000 |
| OneMain Holdings, Inc. | | 148,756 | 4,955,062 |
| | | | 19,211,292 |
| Diversified Financial Services - 0.1% | | | |
| Apollo Global Management, Inc. | | 76,000 | 4,848,040 |
| Sunrisemezz Ltd. (a) | | 126,757 | 15,373 |
| | | | 4,863,413 |
| Insurance - 3.5% | | | |
| Arch Capital Group Ltd. (a) | | 53,771 | 3,375,743 |
| Arthur J. Gallagher & Co. | | 56,147 | 10,585,955 |
| Assurant, Inc. | | 9,590 | 1,199,325 |
| Beazley PLC | | 600,932 | 4,936,545 |
| Chubb Ltd. | | 28,400 | 6,265,040 |
| Direct Line Insurance Group PLC | | 216,388 | 578,926 |
| Globe Life, Inc. | | 78,881 | 9,509,105 |
| Hartford Financial Services Group, Inc. | | 190,991 | 14,482,848 |
| Marsh & McLennan Companies, Inc. | | 100,382 | 16,611,213 |
| Prudential PLC | | 101,053 | 1,377,887 |
| Reinsurance Group of America, Inc. | | 42,500 | 6,038,825 |
| The Travelers Companies, Inc. | | 310,077 | 58,136,337 |
| Unum Group | | 113,500 | 4,656,905 |
| | | | 137,754,654 |
| Thrifts & Mortgage Finance - 0.3% | | | |
| Essent Group Ltd. | | 164,200 | 6,384,096 |
| MGIC Investment Corp. | | 250,373 | 3,254,849 |
| UWM Holdings Corp. Class A (b) | | 371,300 | 1,229,003 |
| | | | 10,867,948 |
TOTAL FINANCIALS | | | 452,641,031 |
| HEALTH CARE - 15.1% | | | |
| Biotechnology - 3.0% | | | |
| ADC Therapeutics SA (a) | | 75,000 | 288,000 |
| Agios Pharmaceuticals, Inc. (a) | | 28,000 | 786,240 |
| Alnylam Pharmaceuticals, Inc. (a) | | 26,800 | 6,369,020 |
| Ambrx Biopharma, Inc. ADR (a) | | 50,000 | 113,500 |
| Arcutis Biotherapeutics, Inc. (a) | | 75,000 | 1,110,000 |
| Argenx SE ADR (a) | | 37,500 | 14,206,125 |
| Ascendis Pharma A/S sponsored ADR (a) | | 69,000 | 8,426,970 |
| Beam Therapeutics, Inc. (a) | | 30,000 | 1,173,300 |
| Biogen, Inc. (a) | | 3,500 | 969,220 |
| Blueprint Medicines Corp. (a) | | 75,000 | 3,285,750 |
| Celldex Therapeutics, Inc. (a) | | 50,000 | 2,228,500 |
| Century Therapeutics, Inc. (a) | | 65,000 | 333,450 |
| Cerevel Therapeutics Holdings (a) | | 110,000 | 3,469,400 |
| Cytokinetics, Inc. (a) | | 100,000 | 4,582,000 |
| Denali Therapeutics, Inc. (a) | | 37,500 | 1,042,875 |
| Erasca, Inc. (a) | | 150,000 | 646,500 |
| Generation Bio Co. (a) | | 70,000 | 275,100 |
| Instil Bio, Inc. (a) | | 6,100 | 3,843 |
| Janux Therapeutics, Inc. (a) | | 45,000 | 592,650 |
| Karuna Therapeutics, Inc. (a) | | 18,000 | 3,537,000 |
| Keros Therapeutics, Inc. (a) | | 34,000 | 1,632,680 |
| Legend Biotech Corp. ADR (a) | | 120,000 | 5,990,400 |
| Nuvalent, Inc. Class A (a) | | 50,000 | 1,489,000 |
| Poseida Therapeutics, Inc. (a) | | 230,000 | 1,219,000 |
| PTC Therapeutics, Inc. (a) | | 80,000 | 3,053,600 |
| Regeneron Pharmaceuticals, Inc. (a) | | 23,800 | 17,171,462 |
| Relay Therapeutics, Inc. (a) | | 100,000 | 1,494,000 |
| Repligen Corp. (a) | | 14,000 | 2,370,340 |
| Sarepta Therapeutics, Inc. (a) | | 50,000 | 6,479,000 |
| Scholar Rock Holding Corp. (a) | | 15,000 | 135,750 |
| Seagen, Inc. (a) | | 30,000 | 3,855,300 |
| Shattuck Labs, Inc. (a) | | 68,600 | 157,780 |
| Stoke Therapeutics, Inc. (a) | | 42,500 | 392,275 |
| uniQure B.V. (a) | | 50,000 | 1,133,500 |
| Vaxcyte, Inc. (a) | | 65,000 | 3,116,750 |
| Vertex Pharmaceuticals, Inc. (a) | | 26,000 | 7,508,280 |
| Verve Therapeutics, Inc. (a) | | 18,000 | 348,300 |
| Xencor, Inc. (a) | | 110,000 | 2,864,400 |
| Xenon Pharmaceuticals, Inc. (a) | | 44,000 | 1,734,920 |
| Zai Lab Ltd. (a) | | 400,000 | 1,238,102 |
| Zentalis Pharmaceuticals, Inc. (a) | | 90,000 | 1,812,600 |
| | | | 118,636,882 |
| Health Care Equipment & Supplies - 3.2% | | | |
| Boston Scientific Corp. (a) | | 765,000 | 35,396,550 |
| Inspire Medical Systems, Inc. (a) | | 12,800 | 3,224,064 |
| Insulet Corp. (a) | | 70,500 | 20,754,495 |
| Intuitive Surgical, Inc. (a) | | 12,500 | 3,316,875 |
| Masimo Corp. (a) | | 74,000 | 10,948,300 |
| Nevro Corp. (a) | | 67,000 | 2,653,200 |
| Novocure Ltd. (a) | | 38,000 | 2,787,300 |
| Outset Medical, Inc. (a) | | 67,000 | 1,729,940 |
| Penumbra, Inc. (a) | | 100,500 | 22,357,230 |
| PROCEPT BioRobotics Corp. (a) | | 42,500 | 1,765,450 |
| ResMed, Inc. | | 40,800 | 8,491,704 |
| Stryker Corp. | | 29,000 | 7,090,210 |
| Tandem Diabetes Care, Inc. (a) | | 125,000 | 5,618,750 |
| | | | 126,134,068 |
| Health Care Providers & Services - 4.3% | | | |
| agilon health, Inc. (a) | | 660,000 | 10,652,400 |
| Alignment Healthcare, Inc. (a) | | 236,400 | 2,780,064 |
| Centene Corp. (a) | | 184,000 | 15,089,840 |
| Cigna Corp. | | 78,500 | 26,010,190 |
| Guardant Health, Inc. (a) | | 70,000 | 1,904,000 |
| HCA Holdings, Inc. | | 12,800 | 3,071,488 |
| Humana, Inc. | | 38,500 | 19,719,315 |
| LifeStance Health Group, Inc. (a) | | 283,100 | 1,398,514 |
| Molina Healthcare, Inc. (a) | | 22,800 | 7,529,016 |
| Oak Street Health, Inc. (a) | | 460,000 | 9,894,600 |
| Surgery Partners, Inc. (a) | | 280,000 | 7,800,800 |
| UnitedHealth Group, Inc. | | 123,500 | 65,477,230 |
| | | | 171,327,457 |
| Health Care Technology - 0.3% | | | |
| Doximity, Inc. (a)(b) | | 100,000 | 3,356,000 |
| Medlive Technology Co. Ltd. (c) | | 220,000 | 238,643 |
| Phreesia, Inc. (a) | | 86,000 | 2,782,960 |
| Veeva Systems, Inc. Class A (a) | | 30,000 | 4,841,400 |
| | | | 11,219,003 |
| Life Sciences Tools & Services - 2.3% | | | |
| 10X Genomics, Inc. (a) | | 28,000 | 1,020,320 |
| Agilent Technologies, Inc. | | 9,000 | 1,346,850 |
| Bruker Corp. | | 92,000 | 6,288,200 |
| Danaher Corp. | | 117,500 | 31,186,850 |
| IQVIA Holdings, Inc. (a) | | 38,500 | 7,888,265 |
| Lonza Group AG | | 7,400 | 3,632,478 |
| Olink Holding AB ADR (a) | | 65,900 | 1,672,542 |
| Sartorius Stedim Biotech | | 7,545 | 2,443,155 |
| Seer, Inc. (a) | | 12,800 | 74,240 |
| Thermo Fisher Scientific, Inc. | | 60,000 | 33,041,400 |
| West Pharmaceutical Services, Inc. | | 24,500 | 5,766,075 |
| | | | 94,360,375 |
| Pharmaceuticals - 2.0% | | | |
| Arvinas Holding Co. LLC (a) | | 38,000 | 1,299,980 |
| AstraZeneca PLC (United Kingdom) | | 101,500 | 13,734,917 |
| Eli Lilly & Co. | | 100,800 | 36,876,672 |
| Pharvaris BV (a) | | 60,000 | 675,000 |
| Roche Holding AG (participation certificate) | | 19,000 | 5,970,514 |
| Royalty Pharma PLC | | 396,000 | 15,649,920 |
| Theseus Pharmaceuticals, Inc. (a) | | 16,500 | 82,170 |
| UCB SA | | 45,000 | 3,543,404 |
| Verona Pharma PLC ADR (a) | | 30,000 | 783,900 |
| | | | 78,616,477 |
TOTAL HEALTH CARE | | | 600,294,262 |
| INDUSTRIALS - 9.4% | | | |
| Aerospace & Defense - 2.1% | | | |
| Axon Enterprise, Inc. (a) | | 18,000 | 2,986,740 |
| HEICO Corp. Class A | | 25,600 | 3,068,160 |
| Howmet Aerospace, Inc. | | 131,800 | 5,194,238 |
| L3Harris Technologies, Inc. | | 45,800 | 9,536,018 |
| Lockheed Martin Corp. | | 36,500 | 17,756,885 |
| Northrop Grumman Corp. | | 15,800 | 8,620,638 |
| Raytheon Technologies Corp. | | 158,400 | 15,985,728 |
| The Boeing Co. (a) | | 104,900 | 19,982,401 |
| | | | 83,130,808 |
| Air Freight & Logistics - 0.1% | | | |
| Air Transport Services Group, Inc. (a) | | 87,700 | 2,278,446 |
| Airlines - 0.2% | | | |
| Delta Air Lines, Inc. (a) | | 195,300 | 6,417,558 |
| JetBlue Airways Corp. (a) | | 528,100 | 3,422,088 |
| | | | 9,839,646 |
| Building Products - 0.7% | | | |
| Carlisle Companies, Inc. | | 42,900 | 10,109,385 |
| Trane Technologies PLC | | 99,800 | 16,775,382 |
| | | | 26,884,767 |
| Commercial Services & Supplies - 0.9% | | | |
| Cintas Corp. | | 41,100 | 18,561,582 |
| CoreCivic, Inc. (a) | | 92,000 | 1,063,520 |
| Waste Connections, Inc. (United States) | | 128,200 | 16,994,192 |
| | | | 36,619,294 |
| Construction & Engineering - 0.4% | | | |
| Willscot Mobile Mini Holdings (a) | | 396,400 | 17,905,388 |
| Electrical Equipment - 0.6% | | | |
| AMETEK, Inc. | | 181,400 | 25,345,208 |
| Fluence Energy, Inc. (a) | | 11,400 | 195,510 |
| | | | 25,540,718 |
| Industrial Conglomerates - 0.3% | | | |
| Honeywell International, Inc. | | 53,500 | 11,465,050 |
| Machinery - 2.6% | | | |
| AGCO Corp. | | 76,500 | 10,609,785 |
| Caterpillar, Inc. | | 92,200 | 22,087,432 |
| Chart Industries, Inc. (a)(b) | | 27,600 | 3,180,348 |
| Deere & Co. | | 43,500 | 18,651,060 |
| Flowserve Corp. | | 256,900 | 7,881,692 |
| Fortive Corp. | | 345,600 | 22,204,800 |
| IDEX Corp. | | 50,300 | 11,484,999 |
| ITT, Inc. | | 68,700 | 5,571,570 |
| | | | 101,671,686 |
| Marine - 0.1% | | | |
| Eagle Bulk Shipping, Inc. | | 29,800 | 1,488,212 |
| Genco Shipping & Trading Ltd. | | 60,100 | 923,136 |
| | | | 2,411,348 |
| Professional Services - 0.1% | | | |
| TransUnion Holding Co., Inc. | | 84,400 | 4,789,700 |
| Road & Rail - 1.3% | | | |
| CSX Corp. | | 673,200 | 20,855,736 |
| Landstar System, Inc. | | 67,300 | 10,963,170 |
| Old Dominion Freight Lines, Inc. | | 20,100 | 5,703,978 |
| Union Pacific Corp. | | 61,100 | 12,651,977 |
| | | | 50,174,861 |
| Trading Companies & Distributors - 0.0% | | | |
| Air Lease Corp. Class A | | 30,700 | 1,179,494 |
TOTAL INDUSTRIALS | | | 373,891,206 |
| INFORMATION TECHNOLOGY - 24.3% | | | |
| Communications Equipment - 0.2% | | | |
| Cisco Systems, Inc. | | 191,100 | 9,104,004 |
| Electronic Equipment & Components - 0.5% | | | |
| Cognex Corp. | | 51,700 | 2,435,587 |
| Corning, Inc. | | 249,900 | 7,981,806 |
| TE Connectivity Ltd. | | 65,300 | 7,496,440 |
| Trimble, Inc. (a) | | 25,100 | 1,269,056 |
| | | | 19,182,889 |
| IT Services - 4.5% | | | |
| Affirm Holdings, Inc. (a)(b) | | 61,914 | 598,708 |
| Akamai Technologies, Inc. (a) | | 100,100 | 8,438,430 |
| Block, Inc. Class A (a) | | 94,700 | 5,950,948 |
| Capgemini SA | | 100,400 | 16,784,490 |
| Cognizant Technology Solutions Corp. Class A | | 328,600 | 18,792,634 |
| Cyxtera Technologies, Inc. Class A (a) | | 288,418 | 553,763 |
| DXC Technology Co. (a) | | 43,700 | 1,158,050 |
| ExlService Holdings, Inc. (a) | | 8,800 | 1,490,984 |
| Gartner, Inc. (a) | | 7,000 | 2,352,980 |
| Global Payments, Inc. | | 81,700 | 8,114,444 |
| GoDaddy, Inc. (a) | | 136,000 | 10,175,520 |
| MasterCard, Inc. Class A | | 82,100 | 28,548,633 |
| MongoDB, Inc. Class A (a) | | 60,000 | 11,810,400 |
| PayPal Holdings, Inc. (a) | | 143,500 | 10,220,070 |
| Repay Holdings Corp. (a) | | 170,236 | 1,370,400 |
| Shift4 Payments, Inc. (a) | | 38,300 | 2,142,119 |
| Snowflake, Inc. (a) | | 14,500 | 2,081,330 |
| StoneCo Ltd. Class A (a) | | 29,000 | 273,760 |
| Thoughtworks Holding, Inc. (a) | | 19,900 | 202,781 |
| Twilio, Inc. Class A (a) | | 121,800 | 5,963,328 |
| Visa, Inc. Class A | | 163,400 | 33,947,984 |
| Wix.com Ltd. (a) | | 37,200 | 2,858,076 |
| Worldline SA (a)(c) | | 85,319 | 3,341,303 |
| | | | 177,171,135 |
| Semiconductors & Semiconductor Equipment - 2.7% | | | |
| Advanced Micro Devices, Inc. (a) | | 123,410 | 7,993,266 |
| Analog Devices, Inc. | | 232,100 | 38,071,363 |
| Intel Corp. | | 271,700 | 7,181,031 |
| Lam Research Corp. | | 3,900 | 1,639,170 |
| Marvell Technology, Inc. | | 87,200 | 3,229,888 |
| Microchip Technology, Inc. | | 197,300 | 13,860,325 |
| Micron Technology, Inc. | | 394,300 | 19,707,114 |
| NVIDIA Corp. | | 64,200 | 9,382,188 |
| onsemi (a) | | 45,500 | 2,837,835 |
| Skyworks Solutions, Inc. | | 44,600 | 4,064,398 |
| | | | 107,966,578 |
| Software - 10.7% | | | |
| Adobe, Inc. (a) | | 109,100 | 36,715,423 |
| Alteryx, Inc. Class A (a) | | 27,100 | 1,373,157 |
| Aspen Technology, Inc. (a) | | 16,316 | 3,351,306 |
| Autodesk, Inc. (a) | | 88,800 | 16,594,056 |
| Black Knight, Inc. (a) | | 22,900 | 1,414,075 |
| Blackbaud, Inc. (a) | | 59,700 | 3,513,942 |
| Blend Labs, Inc. (a) | | 76,900 | 110,736 |
| Ceridian HCM Holding, Inc. (a) | | 97,300 | 6,241,795 |
| Constellation Software, Inc. | | 3,000 | 4,683,811 |
| Coupa Software, Inc. (a) | | 58,300 | 4,615,611 |
| Elastic NV (a) | | 93,700 | 4,825,550 |
| Five9, Inc. (a) | | 34,900 | 2,368,314 |
| Gen Digital, Inc. | | 384,600 | 8,241,978 |
| HubSpot, Inc. (a) | | 24,400 | 7,054,772 |
| Micro Focus International PLC | | 200,000 | 1,281,191 |
| Microsoft Corp. | | 936,400 | 224,567,446 |
| Momentive Global, Inc. (a) | | 86,800 | 607,600 |
| New Relic, Inc. (a) | | 35,800 | 2,020,910 |
| Palo Alto Networks, Inc. (a) | | 114,100 | 15,921,514 |
| PTC, Inc. (a) | | 77,300 | 9,279,092 |
| Roper Technologies, Inc. | | 26,300 | 11,363,967 |
| Salesforce.com, Inc. (a) | | 246,100 | 32,630,399 |
| Smartsheet, Inc. (a) | | 9,300 | 366,048 |
| Tenable Holdings, Inc. (a) | | 180,200 | 6,874,630 |
| Workday, Inc. Class A (a) | | 77,700 | 13,001,541 |
| Workiva, Inc. (a) | | 17,700 | 1,486,269 |
| Zoom Video Communications, Inc. Class A (a) | | 21,200 | 1,436,088 |
| | | | 421,941,221 |
| Technology Hardware, Storage & Peripherals - 5.7% | | | |
| Apple, Inc. | | 1,718,600 | 223,297,698 |
| Western Digital Corp. (a) | | 84,600 | 2,669,130 |
| | | | 225,966,828 |
TOTAL INFORMATION TECHNOLOGY | | | 961,332,655 |
| MATERIALS - 3.1% | | | |
| Chemicals - 2.1% | | | |
| Air Products & Chemicals, Inc. | | 35,900 | 11,066,534 |
| Albemarle Corp. | | 14,000 | 3,036,040 |
| Ashland, Inc. | | 19,100 | 2,053,823 |
| Cabot Corp. | | 29,200 | 1,951,728 |
| Celanese Corp. Class A | | 28,100 | 2,872,944 |
| CF Industries Holdings, Inc. | | 10,600 | 903,120 |
| Chemtrade Logistics Income Fund | | 100,600 | 666,456 |
| Corteva, Inc. | | 115,500 | 6,789,090 |
| DuPont de Nemours, Inc. | | 61,700 | 4,234,471 |
| Eastman Chemical Co. | | 7,700 | 627,088 |
| Ecolab, Inc. | | 15,400 | 2,241,624 |
| Element Solutions, Inc. | | 42,900 | 780,351 |
| Huntsman Corp. | | 27,800 | 763,944 |
| Linde PLC | | 63,800 | 20,810,284 |
| LyondellBasell Industries NV Class A | | 44,300 | 3,678,229 |
| Olin Corp. | | 57,000 | 3,017,580 |
| PPG Industries, Inc. | | 19,100 | 2,401,634 |
| RPM International, Inc. | | 9,900 | 964,755 |
| Sherwin-Williams Co. | | 1,500 | 355,995 |
| The Chemours Co. LLC | | 73,700 | 2,256,694 |
| Tronox Holdings PLC | | 192,100 | 2,633,691 |
| Valvoline, Inc. | | 154,019 | 5,028,720 |
| Westlake Corp. | | 15,000 | 1,538,100 |
| | | | 80,672,895 |
| Construction Materials - 0.1% | | | |
| Martin Marietta Materials, Inc. | | 6,800 | 2,298,196 |
| Vulcan Materials Co. | | 14,500 | 2,539,095 |
| | | | 4,837,291 |
| Containers & Packaging - 0.3% | | | |
| Aptargroup, Inc. | | 24,700 | 2,716,506 |
| Avery Dennison Corp. | | 11,300 | 2,045,300 |
| Crown Holdings, Inc. | | 20,700 | 1,701,747 |
| Greif, Inc. Class A | | 30,700 | 2,058,742 |
| Sealed Air Corp. | | 43,800 | 2,184,744 |
| | | | 10,707,039 |
| Metals & Mining - 0.6% | | | |
| Alcoa Corp. | | 52,000 | 2,364,440 |
| Commercial Metals Co. | | 35,200 | 1,700,160 |
| First Quantum Minerals Ltd. | | 313,700 | 6,554,338 |
| Freeport-McMoRan, Inc. | | 214,000 | 8,132,000 |
| Glencore PLC | | 397,200 | 2,648,787 |
| Reliance Steel & Aluminum Co. | | 11,600 | 2,348,304 |
| Steel Dynamics, Inc. | | 10,900 | 1,064,930 |
| | | | 24,812,959 |
TOTAL MATERIALS | | | 121,030,184 |
| REAL ESTATE - 3.2% | | | |
| Equity Real Estate Investment Trusts (REITs) - 3.0% | | | |
| Alexandria Real Estate Equities, Inc. | | 26,200 | 3,816,554 |
| American Tower Corp. | | 46,300 | 9,809,118 |
| Crown Castle International Corp. | | 85,600 | 11,610,784 |
| CubeSmart | | 224,500 | 9,036,125 |
| EastGroup Properties, Inc. | | 16,700 | 2,472,602 |
| Equinix, Inc. | | 15,000 | 9,825,450 |
| Equity Lifestyle Properties, Inc. | | 73,500 | 4,748,100 |
| Essex Property Trust, Inc. | | 22,800 | 4,831,776 |
| Four Corners Property Trust, Inc. | | 147,700 | 3,829,861 |
| Host Hotels & Resorts, Inc. | | 87,400 | 1,402,770 |
| Invitation Homes, Inc. | | 137,300 | 4,069,572 |
| Lamar Advertising Co. Class A | | 37,200 | 3,511,680 |
| Mid-America Apartment Communities, Inc. | | 40,300 | 6,326,697 |
| Phillips Edison & Co., Inc. | | 47,300 | 1,506,032 |
| Prologis (REIT), Inc. | | 120,665 | 13,602,565 |
| Public Storage | | 5,800 | 1,625,102 |
| Ryman Hospitality Properties, Inc. | | 38,400 | 3,140,352 |
| SITE Centers Corp. | | 207,800 | 2,838,548 |
| Spirit Realty Capital, Inc. | | 57,900 | 2,311,947 |
| Terreno Realty Corp. | | 32,400 | 1,842,588 |
| UDR, Inc. | | 64,900 | 2,513,577 |
| Urban Edge Properties | | 134,600 | 1,896,514 |
| Ventas, Inc. | | 151,400 | 6,820,570 |
| VICI Properties, Inc. | | 52,200 | 1,691,280 |
| Welltower, Inc. | | 61,200 | 4,011,660 |
| | | | 119,091,824 |
| Real Estate Management & Development - 0.2% | | | |
| CBRE Group, Inc. (a) | | 82,400 | 6,341,504 |
| Doma Holdings, Inc. Class A (a) | | 712,700 | 322,782 |
| WeWork, Inc. (a) | | 348,300 | 498,069 |
| | | | 7,162,355 |
TOTAL REAL ESTATE | | | 126,254,179 |
| UTILITIES - 3.0% | | | |
| Electric Utilities - 2.2% | | | |
| Avangrid, Inc. | | 24,100 | 1,035,818 |
| Constellation Energy Corp. | | 102,273 | 8,816,955 |
| Duke Energy Corp. | | 24,700 | 2,543,853 |
| Edison International | | 85,900 | 5,464,958 |
| Entergy Corp. | | 45,800 | 5,152,500 |
| Eversource Energy | | 15,600 | 1,307,904 |
| Exelon Corp. | | 150,200 | 6,493,146 |
| FirstEnergy Corp. | | 150,100 | 6,295,194 |
| NextEra Energy, Inc. | | 208,965 | 17,469,474 |
| OGE Energy Corp. | | 45,100 | 1,783,705 |
| PG&E Corp. (a) | | 556,357 | 9,046,365 |
| Pinnacle West Capital Corp. | | 28,300 | 2,151,932 |
| PPL Corp. | | 171,300 | 5,005,386 |
| Southern Co. | | 200,500 | 14,317,705 |
| | | | 86,884,895 |
| Independent Power and Renewable Electricity Producers - 0.2% | | | |
| Clearway Energy, Inc. Class A | | 11,800 | 353,056 |
| NextEra Energy Partners LP | | 21,728 | 1,522,916 |
| The AES Corp. | | 150,100 | 4,316,876 |
| Vistra Corp. | | 122,000 | 2,830,400 |
| | | | 9,023,248 |
| Multi-Utilities - 0.6% | | | |
| Consolidated Edison, Inc. | | 21,400 | 2,039,634 |
| Dominion Energy, Inc. | | 96,500 | 5,917,380 |
| NiSource, Inc. | | 147,800 | 4,052,676 |
| Public Service Enterprise Group, Inc. | | 57,400 | 3,516,898 |
| Sempra Energy | | 51,900 | 8,020,626 |
| | | | 23,547,214 |
TOTAL UTILITIES | | | 119,455,357 |
| TOTAL COMMON STOCKS (Cost $4,620,612,359) | | | 3,919,881,500 |
| | | | |
| Convertible Bonds - 0.1% |
| | | Principal Amount (d) | Value ($) |
| INFORMATION TECHNOLOGY - 0.1% | | | |
| IT Services - 0.1% | | | |
Affirm Holdings, Inc. 0% 11/15/26 (Cost $1,793,995) | | 2,835,000 | 1,559,250 |
| | | | |
| U.S. Treasury Obligations - 0.0% |
| | | Principal Amount (d) | Value ($) |
U.S. Treasury Bills, yield at date of purchase 4.35% 3/30/23 (e) (Cost $949,895) | | 960,000 | 950,166 |
| | | | |
| Money Market Funds - 0.9% |
| | | Shares | Value ($) |
| Fidelity Cash Central Fund 4.37% (f) | | 29,671,960 | 29,677,895 |
| Fidelity Securities Lending Cash Central Fund 4.37% (f)(g) | | 6,804,945 | 6,805,625 |
| TOTAL MONEY MARKET FUNDS (Cost $36,483,520) | | | 36,483,520 |
| | | | |
| TOTAL INVESTMENT IN SECURITIES - 99.9% (Cost $4,659,839,769) | 3,958,874,436 |
NET OTHER ASSETS (LIABILITIES) - 0.1% | 3,195,000 |
| NET ASSETS - 100.0% | 3,962,069,436 |
| | |
| Futures Contracts |
| | Number of contracts | Expiration Date | Notional Amount ($) | Value ($) | Unrealized Appreciation/ (Depreciation) ($) |
| Purchased | | | | | |
| | | | | | |
| Equity Index Contracts | | | | | |
| CME Micro E-mini S&P 500 Index Contracts (United States) | 88 | Mar 2023 | 16,988,400 | (33,306) | (33,306) |
| | | | | | |
| The notional amount of futures purchased as a percentage of Net Assets is 0.4% |
Legend
| (b) | Security or a portion of the security is on loan at period end. |
| (c) | Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $3,579,946 or 0.1% of net assets. |
| (d) | Amount is stated in United States dollars unless otherwise noted. |
| (e) | 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 $950,166. |
| (f) | Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request. |
| (g) | Investment made with cash collateral received from securities on loan. |
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
| Affiliate | Value, beginning of period ($) | Purchases ($) | Sales Proceeds ($) | Dividend Income ($) | Realized Gain (loss) ($) | Change in Unrealized appreciation (depreciation) ($) | Value, end of period ($) | % ownership, end of period |
| Fidelity Cash Central Fund 4.37% | 97,237,484 | 1,000,951,310 | 1,068,510,899 | 520,501 | - | - | 29,677,895 | 0.1% |
| Fidelity Securities Lending Cash Central Fund 4.37% | - | 111,590,855 | 104,785,230 | 228,488 | - | - | 6,805,625 | 0.0% |
| Total | 97,237,484 | 1,112,542,165 | 1,173,296,129 | 748,989 | - | - | 36,483,520 | |
| | | | | | | | | |
Amounts in the dividend 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.
Amount for Fidelity Securities Lending Cash Central Fund represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities.
Amounts included in the purchases and sales proceeds columns may include in-kind transactions, if applicable.
Investment Valuation
The following is a summary of the inputs used, as of December 31, 2022, 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 ($) | Level 3 ($) |
Investments in Securities: | | | | |
|
| Equities: | | | | |
Communication Services | 289,008,171 | 289,008,171 | - | - |
Consumer Discretionary | 390,892,575 | 383,550,324 | 7,342,251 | - |
Consumer Staples | 277,160,051 | 274,125,887 | 3,034,164 | - |
Energy | 207,921,829 | 207,921,829 | - | - |
Financials | 452,641,031 | 426,407,655 | 26,233,376 | - |
Health Care | 600,294,262 | 575,479,608 | 24,814,654 | - |
Industrials | 373,891,206 | 373,891,206 | - | - |
Information Technology | 961,332,655 | 939,925,671 | 21,406,984 | - |
Materials | 121,030,184 | 118,381,397 | 2,648,787 | - |
Real Estate | 126,254,179 | 126,254,179 | - | - |
Utilities | 119,455,357 | 119,455,357 | - | - |
|
| Corporate Bonds | 1,559,250 | - | 1,559,250 | - |
|
| U.S. Government and Government Agency Obligations | 950,166 | - | 950,166 | - |
|
| Money Market Funds | 36,483,520 | 36,483,520 | - | - |
| Total Investments in Securities: | 3,958,874,436 | 3,870,884,804 | 87,989,632 | - |
Derivative Instruments: | | | | |
|
| Liabilities | | | | |
Futures Contracts | (33,306) | (33,306) | - | - |
| Total Liabilities | (33,306) | (33,306) | - | - |
| Total Derivative Instruments: | (33,306) | (33,306) | - | - |
Value of Derivative Instruments
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of December 31, 2022. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.
Primary Risk Exposure / Derivative Type | Value |
| Asset ($) | Liability ($) |
| Equity Risk | | |
Futures Contracts (a) | 0 | (33,306) |
| Total Equity Risk | 0 | (33,306) |
| Total Value of Derivatives | 0 | (33,306) |
(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).
| Statement of Assets and Liabilities |
| | | | December 31, 2022 |
| | | | | |
| Assets | | | | |
| Investment in securities, at value (including securities loaned of $6,591,359) - See accompanying schedule: | | | | |
Unaffiliated issuers (cost $4,623,356,249) | | $3,922,390,916 | | |
Fidelity Central Funds (cost $36,483,520) | | 36,483,520 | | |
| | | | | |
| Total Investment in Securities (cost $4,659,839,769) | | | $ | 3,958,874,436 |
| Foreign currency held at value (cost $15,867) | | | | 15,867 |
| Receivable for investments sold | | | | 17,311,111 |
| Receivable for fund shares sold | | | | 135,449 |
| Dividends receivable | | | | 3,258,933 |
| Distributions receivable from Fidelity Central Funds | | | | 112,365 |
| Prepaid expenses | | | | 5,263 |
| Other receivables | | | | 30 |
Total assets | | | | 3,979,713,454 |
| Liabilities | | | | |
| Payable to custodian bank | | $3,440,484 | | |
| Payable for investments purchased | | 4,233,543 | | |
| Payable for fund shares redeemed | | 812,589 | | |
| Accrued management fee | | 1,674,350 | | |
| Distribution and service plan fees payable | | 24 | | |
| Payable for daily variation margin on futures contracts | | 47,300 | | |
| Other affiliated payables | | 546,086 | | |
| Other payables and accrued expenses | | 84,017 | | |
| Collateral on securities loaned | | 6,805,625 | | |
| Total Liabilities | | | | 17,644,018 |
| Net Assets | | | $ | 3,962,069,436 |
| Net Assets consist of: | | | | |
| Paid in capital | | | $ | 5,054,742,878 |
| Total accumulated earnings (loss) | | | | (1,092,673,442) |
| Net Assets | | | $ | 3,962,069,436 |
| | | | | |
| Net Asset Value and Maximum Offering Price | | | | |
| Initial Class : | | | | |
Net Asset Value , offering price and redemption price per share ($81,201 ÷ 10,000 shares) | | | $ | 8.12 |
| Service Class : | | | | |
Net Asset Value , offering price and redemption price per share ($81,206 ÷ 10,000 shares) | | | $ | 8.12 |
| Service Class 2 : | | | | |
Net Asset Value , offering price and redemption price per share ($81,210 ÷ 10,000 shares) | | | $ | 8.12 |
| Investor Class : | | | | |
Net Asset Value , offering price and redemption price per share ($3,961,825,819 ÷ 487,770,064 shares) | | | $ | 8.12 |
| Statement of Operations |
| | | | Year ended December 31, 2022 |
| Investment Income | | | | |
| Dividends | | | $ | 58,909,909 |
| Interest | | | | 154,972 |
| Income from Fidelity Central Funds (including $228,488 from security lending) | | | | 748,989 |
| Total Income | | | | 59,813,870 |
| Expenses | | | | |
| Management fee | | | | |
| Basic fee | $ | 25,476,557 | | |
| Performance adjustment | | (361,048) | | |
| Transfer agent fees | | 6,656,395 | | |
| Distribution and service plan fees | | 304 | | |
| Accounting fees | | 1,002,983 | | |
| Custodian fees and expenses | | 156,950 | | |
| Independent trustees' fees and expenses | | 16,126 | | |
| Audit | | 61,892 | | |
| Legal | | 5,226 | | |
| Interest | | 17,282 | | |
| Miscellaneous | | 10,039 | | |
| Total expenses before reductions | | 33,042,706 | | |
| Expense reductions | | (137,457) | | |
| Total expenses after reductions | | | | 32,905,249 |
| Net Investment income (loss) | | | | 26,908,621 |
| Realized and Unrealized Gain (Loss) | | | | |
| Net realized gain (loss) on: | | | | |
| Investment Securities: | | | | |
| Unaffiliated issuers | | (372,988,045) | | |
| Foreign currency transactions | | (91,413) | | |
| Futures contracts | | 260,642 | | |
| Total net realized gain (loss) | | | | (372,818,816) |
| Change in net unrealized appreciation (depreciation) on: | | | | |
| Investment Securities: | | | | |
| Unaffiliated issuers | | (813,068,343) | | |
| Assets and liabilities in foreign currencies | | 285 | | |
| Futures contracts | | (271,435) | | |
| Total change in net unrealized appreciation (depreciation) | | | | (813,339,493) |
| Net gain (loss) | | | | (1,186,158,309) |
| Net increase (decrease) in net assets resulting from operations | | | $ | (1,159,249,688) |
| Statement of Changes in Net Assets |
| |
| | Year ended December 31, 2022 | | For the period October 21, 2021 (commencement of operations) through December 31, 2021 |
| Increase (Decrease) in Net Assets | | | | |
| Operations | | | | |
| Net investment income (loss) | $ | 26,908,621 | $ | 5,058,246 |
| Net realized gain (loss) | | (372,818,816) | | (16,561,585) |
| Change in net unrealized appreciation (depreciation) | | (813,339,493) | | 112,342,567 |
| Net increase (decrease) in net assets resulting from operations | | (1,159,249,688) | | 100,839,228 |
| Distributions to shareholders | | (29,166,377) | | (7,191,188) |
| Share transactions - net increase (decrease) | | (942,758,718) | | 5,999,596,179 |
| Total increase (decrease) in net assets | | (2,131,174,783) | | 6,093,244,219 |
| | | | | |
| Net Assets | | | | |
| Beginning of period | | 6,093,244,219 | | - |
| End of period | $ | 3,962,069,436 | $ | 6,093,244,219 |
| | | | | |
| | | | | |
Financial Highlights
| VIP Stock Selector All Cap Portfolio Initial Class |
| |
| Years ended December 31, | | 2022 | | 2021 A |
Selected Per-Share Data | | | | |
| Net asset value, beginning of period | $ | 10.16 | $ | 10.00 |
| Income from Investment Operations | | | | |
Net investment income (loss) B,C | | .05 | | .01 |
| Net realized and unrealized gain (loss) | | (2.02) | | .16 |
| Total from investment operations | | (1.97) | | .17 |
| Distributions from net investment income | | (.07) | | (.01) |
| Total distributions | | (.07) | | (.01) |
| Net asset value, end of period | $ | 8.12 | $ | 10.16 |
Total Return D,E,F | | (19.42)% | | 1.73% |
Ratios to Average Net Assets C,G,H | | | | |
| Expenses before reductions | | .61% | | .61% I,J |
| Expenses net of fee waivers, if any | | .61% | | .61% I,J |
| Expenses net of all reductions | | .61% | | .61% I,J |
| Net investment income (loss) | | .63% | | .52% I,J |
| Supplemental Data | | | | |
| Net assets, end of period (000 omitted) | $ | 81 | $ | 102 |
Portfolio turnover rate K | | 29% | | 159% L,M |
A For the period October 21, 2021 (commencement of operations) through December 31, 2021
B Calculated based on average shares outstanding during the period.
C Net investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any mutual funds or ETFs is not included in the Fund's net investment income (loss) ratio.
D Total returns for periods of less than one year are not annualized.
E Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G 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.
H 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.
I Audit fees are not annualized.
J Annualized.
K Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
L Amount not annualized.
M Portfolio turnover rate excludes securities received or delivered in-kind.
| VIP Stock Selector All Cap Portfolio Service Class |
| |
| Years ended December 31, | | 2022 | | 2021 A |
Selected Per-Share Data | | | | |
| Net asset value, beginning of period | $ | 10.16 | $ | 10.00 |
| Income from Investment Operations | | | | |
Net investment income (loss) B,C | | .05 | | .01 |
| Net realized and unrealized gain (loss) | | (2.03) | | .16 |
| Total from investment operations | | (1.98) | | .17 |
| Distributions from net investment income | | (.06) | | (.01) |
| Total distributions | | (.06) | | (.01) |
| Net asset value, end of period | $ | 8.12 | $ | 10.16 |
Total Return D,E,F | | (19.51)% | | 1.71% |
Ratios to Average Net Assets C,G,H | | | | |
| Expenses before reductions | | .71% | | .71% I,J |
| Expenses net of fee waivers, if any | | .71% | | .71% I,J |
| Expenses net of all reductions | | .71% | | .71% I,J |
| Net investment income (loss) | | .53% | | .41% I,J |
| Supplemental Data | | | | |
| Net assets, end of period (000 omitted) | $ | 81 | $ | 102 |
Portfolio turnover rate K | | 29% | | 159% L,M |
A For the period October 21, 2021 (commencement of operations) through December 31, 2021
B Calculated based on average shares outstanding during the period.
C Net investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any mutual funds or ETFs is not included in the Fund's net investment income (loss) ratio.
D Total returns for periods of less than one year are not annualized.
E Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G 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.
H 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.
I Audit fees are not annualized.
J Annualized.
K Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
L Amount not annualized.
M Portfolio turnover rate excludes securities received or delivered in-kind.
| VIP Stock Selector All Cap Portfolio Service Class 2 |
| |
| Years ended December 31, | | 2022 | | 2021 A |
Selected Per-Share Data | | | | |
| Net asset value, beginning of period | $ | 10.16 | $ | 10.00 |
| Income from Investment Operations | | | | |
Net investment income (loss) B,C | | .03 | | .01 |
| Net realized and unrealized gain (loss) | | (2.02) | | .16 |
| Total from investment operations | | (1.99) | | .17 |
| Distributions from net investment income | | (.05) | | (.01) |
| Total distributions | | (.05) | | (.01) |
| Net asset value, end of period | $ | 8.12 | $ | 10.16 |
Total Return D,E,F | | (19.63)% | | 1.68% |
Ratios to Average Net Assets C,G,H | | | | |
| Expenses before reductions | | .86% | | .86% I,J |
| Expenses net of fee waivers, if any | | .86% | | .86% I,J |
| Expenses net of all reductions | | .86% | | .86% I,J |
| Net investment income (loss) | | .38% | | .26% I,J |
| Supplemental Data | | | | |
| Net assets, end of period (000 omitted) | $ | 81 | $ | 102 |
Portfolio turnover rate K | | 29% | | 159% L,M |
A For the period October 21, 2021 (commencement of operations) through December 31, 2021
B Calculated based on average shares outstanding during the period.
C Net investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any mutual funds or ETFs is not included in the Fund's net investment income (loss) ratio.
D Total returns for periods of less than one year are not annualized.
E Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G 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.
H 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.
I Annualized.
J Audit fees are not annualized.
K Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
L Amount not annualized.
M Portfolio turnover rate excludes securities received or delivered in-kind.
| VIP Stock Selector All Cap Portfolio Investor Class |
| |
| Years ended December 31, | | 2022 | | 2021 A |
Selected Per-Share Data | | | | |
| Net asset value, beginning of period | $ | 10.16 | $ | 10.00 |
| Income from Investment Operations | | | | |
Net investment income (loss) B,C | | .05 | | .01 |
| Net realized and unrealized gain (loss) | | (2.03) | | .16 |
| Total from investment operations | | (1.98) | | .17 |
| Distributions from net investment income | | (.06) | | (.01) |
| Total distributions | | (.06) | | (.01) |
| Net asset value, end of period | $ | 8.12 | $ | 10.16 |
Total Return D,E,F | | (19.51)% | | 1.72% |
Ratios to Average Net Assets C,G,H | | | | |
| Expenses before reductions | | .68% | | .68% I,J |
| Expenses net of fee waivers, if any | | .68% | | .68% I,J |
| Expenses net of all reductions | | .68% | | .68% I,J |
| Net investment income (loss) | | .56% | | .44% I,J |
| Supplemental Data | | | | |
| Net assets, end of period (000 omitted) | $ | 3,961,826 | $ | 6,092,940 |
Portfolio turnover rate K | | 29% | | 159% L,M |
A For the period October 21, 2021 (commencement of operations) through December 31, 2021
B Calculated based on average shares outstanding during the period.
C Net investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any mutual funds or ETFs is not included in the Fund's net investment income (loss) ratio.
D Total returns for periods of less than one year are not annualized.
E Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G 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.
H 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.
I Audit fees are not annualized.
J Annualized.
K Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
L Amount not annualized.
M Portfolio turnover rate excludes securities received or delivered in-kind.
For the period ended December 31, 2022
1. Organization.
VIP Stock Selector All Cap Portfolio (the Fund) is a fund of Variable Insurance Products Fund (the Trust) and is authorized to issue an unlimited number of shares. 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. Shares of the Fund may only be purchased by insurance companies for the purpose of funding variable annuity or variable life insurance contracts. The Fund offers the following classes of shares: Initial Class 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.
2. Investments in Fidelity Central Funds.
Funds may 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 Schedule of Investments lists any Fidelity Central Funds held as an investment as of period end, but does not include the underlying holdings of each Fidelity Central Fund. An investing fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
Based on its investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the investing fund. These strategies are consistent with the investment objectives of the investing fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the investing fund.
| Fidelity Central Fund | Investment Manager | Investment Objective | Investment Practices | Expense Ratio A |
| Fidelity Money Market Central Funds | Fidelity Management & Research Company LLC (FMR) | Each fund seeks to obtain a high level of current income consistent with the preservation of capital and liquidity. | Short-term Investments | Less than .005% |
A Expenses expressed as a percentage of average net assets and are as of each underlying Central Fund's most recent annual or semi-annual shareholder report.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including investment valuation policies) of those funds, and are not covered by the Report of Independent Registered Public Accounting Firm, are available on the Securities and Exchange Commission website or upon request.
3. Significant Accounting Policies.
The 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 Fund's Schedule of Investments lists any underlying mutual funds or exchange-traded funds (ETFs) but does not include the underlying holdings of these funds. The following summarizes the significant accounting policies of the Fund:
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 designated the Fund's investment adviser as the valuation designee responsible for the fair valuation function and performing fair value determinations as needed. The investment adviser has established a Fair Value Committee (the Committee) to carry out the day-to-day fair valuation responsibilities and has adopted policies and procedures to govern the fair valuation process and the activities of the Committee. In accordance with these fair valuation policies and procedures, which have been approved by the Board, the Fund attempts to obtain prices from one or more third party pricing services 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 the policies and procedures. Factors used in determining fair value vary by investment type and may include market or investment specific events, transaction data, estimated cash flows, and market observations of comparable investments. The frequency that the fair valuation procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee manages the Fund's fair valuation practices and maintains the fair valuation policies and procedures. The Fund's investment adviser reports to the Board information regarding the fair valuation process and related material matters.
The 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 - unadjusted 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 the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, ETFs and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing services or from brokers who make markets in such securities. Corporate bonds and U.S. government and government agency obligations are valued by pricing services 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 services. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
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. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of December 31, 2022 is included at the end of the Fund's Schedule of Investments.
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.
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 realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's 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. Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of a fund include an amount in addition to trade execution, which may be rebated back to a fund. Any such rebates are included in net realized gain (loss) on investments in the Statement of Operations. 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 Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines 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 and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. Funds may file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. Any withholding tax reclaims income is included in the Statement of Operations in dividends. Any receivables for withholding tax reclaims are included in the Statement of Assets and Liabilities in dividends receivable.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of a 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 a fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred, as applicable. Certain expense reductions may also differ by class, if applicable. 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 that fund and do not include any expenses associated with any underlying mutual funds or exchange-traded funds. Although not included in a fund's expenses, a fund indirectly bears its proportionate share of these expenses through the net asset value of each underlying mutual fund or exchange-traded fund. 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, the 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, 2022, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the 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. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The 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 the 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 futures contracts, foreign currency transactions, passive foreign investment companies (PFIC), partnerships, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
| Gross unrealized appreciation | $245,456,948 |
| Gross unrealized depreciation | (969,984,897) |
| Net unrealized appreciation (depreciation) | $(724,527,949) |
| Tax Cost | $4,683,402,385 |
The tax-based components of distributable earnings as of period end were as follows:
| Capital loss carryforward | $(367,206,699) |
| Net unrealized appreciation (depreciation) on securities and other investments | $(724,526,236) |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of fiscal period end and is subject to adjustment.
Short-term | $(304,970,952) |
Long-term | (62,235,747) |
| Total capital loss carryforward | $(367,206,699) |
The Fund intends to elect to defer to its next fiscal year $551,724 of ordinary losses recognized during the period November 1, 2022 to December 31, 2022.
The tax character of distributions paid was as follows:
| | December 31, 2022 | December 31, 2021 A |
| Ordinary Income | $29,166,377 | $7,191,188 |
A For the period October 21, 2021 (commencement of operations) through December 31, 2021.
Restricted Securities (including Private Placements). Funds may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities held at period end is included at the end of the Schedule of Investments, if applicable.
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund's investment objectives allow for various types of derivative instruments, 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.
Derivatives were used 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 objectives may not be achieved.
Derivatives were used to increase or decrease exposure to the following risk(s):
| | |
| 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. |
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 a fund 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 a fund. Counterparty credit risk related to exchange-traded 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. Futures contracts were used to manage 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 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 unless an average notional amount is presented. Any securities deposited to meet initial margin requirements are identified in the Schedule of Investments. Any cash deposited to meet initial margin requirements is presented as segregated cash with brokers for derivative instruments in the Statement of Assets and Liabilities.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, U.S. government securities and in-kind transactions, as applicable, are noted in the table below.
| | Purchases ($) | Sales ($) |
| VIP Stock Selector All Cap Portfolio | 1,395,088,363 | 2,252,591,299 |
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company LLC (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .23% during the period. The group fee rate is based upon the monthly average net assets of a group of registered investment companies with which the investment adviser has management contracts. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of +/- .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Investor Class as compared to its benchmark index, the MSCI U.S. Investable Market 2500 Index, over the same 36 month performance period. The Fund's performance adjustment took effect in October 21, 2022. Subsequent months will be added until the performance period includes 36 months. For the reporting period, the total annual management fee rate, including the performance adjustment, was .52% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has 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 re-allowed to insurance companies for the distribution of shares and providing shareholder support services, were as follows:
| Service Class | $87 |
| Service Class 2 | 217 |
| | $304 |
Transfer Agent Fees. Fidelity Investments Institutional Operations Company LLC (FIIOC), an affiliate of the investment adviser, is the Fund's transfer, dividend disbursing, and shareholder servicing agent. FIIOC receives an asset-based fee with respect to each class. Each class pays a fee for transfer agent services, typesetting and printing and mailing of shareholder reports, excluding mailing of proxy statements. For the period, transfer agent fees for each class were as follows:
| | Amount | % of Class-Level Average Net Assets |
| Initial Class | $54 | .06 |
| Service Class | 54 | .06 |
| Service Class 2 | 54 | .06 |
| Investor Class | 6,656,233 | .14 |
| | $6,656,395 | |
Accounting Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. For the period, the fees were equivalent to the following annual rates:
| | % of Average Net Assets |
| VIP Stock Selector All Cap Portfolio | .02 |
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:
| | Amount |
| VIP Stock Selector All Cap Portfolio | $35,063 |
Interfund Lending Program. Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (the SEC), the 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 the 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 Rate | Interest Expense |
| VIP Stock Selector All Cap Portfolio | Borrower | $68,839,000 | 2.26% | $17,282 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Any interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note. Interfund trades during the period are noted in the table below.
| | Purchases ($) | Sales ($) | Realized Gain (Loss) ($) |
| VIP Stock Selector All Cap Portfolio | 100,775,903 | 179,720,000 | (19,615,859) |
Prior Year Affiliated Exchanges In-Kind. Shares that were exchanged for investments, including accrued interest and cash, if any, are shown in the table below. The amount of in-kind exchanges is included in share transactions in the accompanying Statement of Changes in Net Assets.
| | Shares | Total Proceeds ($) | Participating Classes |
| VIP Stock Selector All Cap Portfolio | 602,403,398 | 6,024,033,979 | Investor Class |
In addition, the Fund redeemed 42,998,101 shares of Fidelity U.S. Equity Central Fund in exchange for investments, including accrued interest and cash, if any, with a value of $6,008,984,644. The Fund had a net realized loss of $15,049,335 on Fund's redemptions of Fidelity U.S. Equity Central. The Fund recognized a net loss on the exchange for federal income tax purposes.
7. Committed Line of Credit.
Certain Funds participate with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which are reflected in Miscellaneous expenses on the Statement of Operations, and are listed below. During the period, there were no borrowings on this line of credit.
| | Amount |
| VIP Stock Selector All Cap Portfolio | $4,555 |
8. Security Lending.
Funds lend portfolio securities from time to time in order to earn additional income. Lending agents are used, including National Financial Services (NFS), an affiliate of the investment adviser. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of a fund's daily lending revenue, for its services as lending agent. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, a fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of a fund and any additional required collateral is delivered to a fund on the next business day. A fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund may apply collateral received from the borrower against the obligation. A fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Affiliated security lending activity, if any, was as follows:
| | Total Security Lending Fees Paid to NFS | Security Lending Income From Securities Loaned to NFS | Value of Securities Loaned to NFS at Period End |
| VIP Stock Selector All Cap Portfolio | $24,639 | $138,293 | $944,674 |
9. Expense Reductions.
During the period the investment adviser or an affiliate reimbursed and/or waived a portion of fund-level operating expenses in the amount of $137,457.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| | Year ended December 31, 2022 | Year ended December 31, 2021 A |
| VIP Stock Selector All Cap Portfolio | | |
| Distributions to shareholders | | |
| Initial Class | $690 | $130 |
| Service Class | 600 | 110 |
| Service Class 2 | 470 | 80 |
| Investor Class | 29,164,617 | 7,190,868 |
Total | $29,166,377 | $7,191,188 |
A For the period October 21, 2021 (commencement of operations) through December 31, 2021.
11. Share Transactions.
Transactions for each class of shares were as follows and may contain in-kind transactions:
| | Shares | Shares | Dollars | Dollars |
| | Year ended December 31, 2022 | Year ended December 31, 2021 A | Year ended December 31, 2022 | Year ended December 31, 2021 A |
| VIP Stock Selector All Cap Portfolio | | | | |
| Initial Class | | | | |
| Shares sold | - | 10,000 | $- | $100,000 |
| Net increase (decrease) | - | 10,000 | $- | $100,000 |
| Service Class | | | | |
| Shares sold | - | 10,000 | $- | $100,000 |
| Net increase (decrease) | - | 10,000 | $- | $100,000 |
| Service Class 2 | | | | |
| Shares sold | - | 10,000 | $- | $100,000 |
| Net increase (decrease) | - | 10,000 | $- | $100,000 |
| Investor Class | | | | |
| Shares sold | 10,559,446 | 605,228,309 | $94,934,938 | $6,052,366,991 |
| Reinvestment of distributions | 3,467,850 | 706,372 | 29,164,617 | 7,190,868 |
| Shares redeemed | (126,156,690) | (6,035,223) | (1,066,858,273) | (60,261,680) |
| Net increase (decrease) | (112,129,394) | 599,899,458 | $(942,758,718) | $5,999,296,179 |
A For the period October 21, 2021 (commencement of operations) through December 31, 2021.
12. Other.
A fund's 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 fund. In the normal course of business, a fund may also enter into contracts that provide general indemnifications. A fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against a fund. The risk of material loss from such claims is considered remote.
In addition, at the end of the period, the following mutual funds managed by the investment adviser or its affiliates were the owners of record of 10% or more of the total outstanding shares.
| | VIP FundsManager 50% Portfolio | VIP FundsManager 60% Portfolio | VIP FundsManager 70% Portfolio |
| VIP Stock Selector All Cap Portfolio | 32% | 42% | 16% |
Mutual funds managed by the investment adviser or its affiliates, in aggregate, were the owners of record of more than 20% of the total outstanding shares.
| Fund | % of shares held |
| VIP Stock Selector All Cap Portfolio | 100% |
13. Risk and Uncertainties.
Many factors affect a fund's performance. Developments that disrupt global economies and financial markets, such as pandemics, epidemics, outbreaks of infectious diseases, war, terrorism, and environmental disasters, may significantly affect a fund's investment performance. The effects of these developments to a fund will be impacted by the types of securities in which a fund invests, the financial condition, industry, economic sector, and geographic location of an issuer, and a fund's level of investment in the securities of that issuer.
To the Board of Trustees of Variable Insurance Products Fund and Shareholders of VIP Stock Selector All Cap Portfolio
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of VIP Stock Selector All Cap Portfolio (one of the funds constituting Variable Insurance Products Fund, referred to hereafter as the "Fund") as of December 31, 2022, the related statement of operations for the year ended December 31, 2022, and the statement of changes in net assets and the financial highlights for the year ended December 31, 2022 and for the period October 21, 2021 (commencement of operations) through December 31, 2021, including the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of December 31, 2022, the results of its operations for the year then ended, and the changes in its net assets and the financial highlights for the year ended December 31, 2022 and for the period October 21, 2021 (commencement of operations) through December 31, 2021 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's 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 Fund 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, 2022 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 opinion.
/s/ PricewaterhouseCoopers LLP
Boston, Massachusetts
February 10, 2023
We have served as the auditor of one or more investment companies in the Fidelity group of funds since 1932.
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Jonathan Chiel, each of the Trustees oversees 318 funds. Mr. Chiel oversees 186 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 fund 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.
The 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 the 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 fund, is provided below.
Board Structure and Oversight Function. Robert A. Lawrence is an interested person and currently serves as Chair. The Trustees have determined that an interested Chair is appropriate and benefits shareholders because an interested Chair has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chair, 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 Chair 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. David M. Thomas serves as Lead Independent Trustee 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 fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and other equity funds. The asset allocation funds may invest in Fidelity ® funds overseen by the fund's Board. 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, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's 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 fund's 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 fund are carried out by or through FMR, its affiliates, and other service providers, the fund's 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 fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's 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.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Jonathan Chiel (1957)
Year of Election or Appointment: 2016
Trustee
Mr. Chiel also serves as Trustee of other Fidelity ® funds. Mr. Chiel is Executive Vice President and General Counsel for FMR LLC (diversified financial services company, 2012-present). Previously, Mr. Chiel served as general counsel (2004-2012) and senior vice president and deputy general counsel (2000-2004) for John Hancock Financial Services; a partner with Choate, Hall & Stewart (1996-2000) (law firm); and an Assistant United States Attorney for the United States Attorney's Office of the District of Massachusetts (1986-95), including Chief of the Criminal Division (1993-1995). Mr. Chiel is a director on the boards of the Boston Bar Foundation and the Maimonides School.
Bettina Doulton (1964)
Year of Election or Appointment: 2021
Trustee
Ms. Doulton also serves as Trustee of other Fidelity ® funds. Prior to her retirement, Ms. Doulton served in a variety of positions at Fidelity Investments, including as a managing director of research (2006-2007), portfolio manager to certain Fidelity ® funds (1993-2005), equity analyst and portfolio assistant (1990-1993), and research assistant (1987-1990). Ms. Doulton currently owns and operates Phi Builders + Architects and Cellardoor Winery. Previously, Ms. Doulton served as a member of the Board of Brown Capital Management, LLC (2014-2018).
Robert A. Lawrence (1952)
Year of Election or Appointment: 2020
Trustee
Chair of the Board of Trustees
Mr. Lawrence also serves as Trustee of other funds. Previously, Mr. Lawrence served as a Trustee and Member of the Advisory Board of certain funds. Prior to his retirement in 2008, Mr. Lawrence served as Vice President of certain Fidelity ® funds (2006-2008), Senior Vice President, Head of High Income Division of Fidelity Management & Research Company (investment adviser firm, 2006-2008), and President of Fidelity Strategic Investments (investment adviser firm, 2002-2005).
* 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 the 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+
Thomas P. Bostick (1956)
Year of Election or Appointment: 2021
Trustee
Lieutenant General Bostick also serves as Trustee of other Fidelity ® funds. Prior to his retirement, General Bostick (United States Army, Retired) held a variety of positions within the U.S. Army, including Commanding General and Chief of Engineers, U.S. Army Corps of Engineers (2012-2016) and Deputy Chief of Staff and Director of Human Resources, U.S. Army (2009-2012). General Bostick currently serves as a member of the Board and Finance and Governance Committees of CSX Corporation (transportation, 2020-present) and a member of the Board and Corporate Governance and Nominating Committee of Perma-Fix Environmental Services, Inc. (nuclear waste management, 2020-present). General Bostick serves as Chief Executive Officer of Bostick Global Strategies, LLC (consulting, 2016-present) and as a member of the Board of HireVue, Inc. (video interview and assessment, 2020-present). Previously, General Bostick served as a Member of the Advisory Board of certain Fidelity® funds (2021), President, Intrexon Bioengineering (2018-2020) and Chief Operating Officer (2017-2020) and Senior Vice President of the Environment Sector (2016-2017) of Intrexon Corporation (biopharmaceutical company).
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity ® funds. Prior to his retirement in May 2003, Mr. Dirks served as Chief Operating Officer and as a member of the Board of The Depository Trust & Clearing Corporation (financial markets infrastructure), President, Chief Operating Officer and a member of the Board of The Depository Trust Company (DTC), President and a member of the Board of the National Securities Clearing Corporation (NSCC), Chief Executive Officer and a member of the Board of the Government Securities Clearing Corporation and Chief Executive Officer and a member of the Board of the Mortgage-Backed Securities Clearing Corporation. Mr. Dirks currently serves as a member of the Finance Committee (2016-present) and Board (2017-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as Trustee of other Fidelity ® funds. Mr. Donahue serves as President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006) and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue currently serves as a member (2007-present) and Co-Chairman (2016-present) of the Board of United Way of New York and a member of the Board of The Leadership Academy (previously NYC Leadership Academy) (2012-present). Mr. Donahue previously served as a member of the Advisory Board of certain Fidelity® funds (2015-2018).
Vicki L. Fuller (1957)
Year of Election or Appointment: 2020
Trustee
Ms. Fuller also serves as Trustee of other Fidelity ® funds. Previously, Ms. Fuller served as a member of the Advisory Board of certain Fidelity ® funds (2018-2020), Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006). Ms. Fuller currently serves as a member of the Board, Audit Committee and Nominating and Governance Committee of two Blackstone business development companies (2020-present), as a member of the Board of Treliant, LLC (consulting, 2019-present), as a member of the Advisory Board of Ariel Alternatives, LLC (private equity, 2021-present) and as a member of the Board and Chair of the Audit Committee of Gusto, Inc. (software, 2021-present). In addition, Ms. Fuller currently serves as a member of the Board of Roosevelt University (2019-present) and as a member of the Executive Board of New York University's Stern School of Business. Ms. Fuller previously served as a member of the Board, Audit Committee and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-2021).
Patricia L. Kampling (1959)
Year of Election or Appointment: 2020
Trustee
Ms. Kampling also serves as Trustee of other Fidelity ® funds. Prior to her retirement, Ms. Kampling served as Chairman of the Board and Chief Executive Officer (2012-2019), President and Chief Operating Officer (2011-2012) and Executive Vice President and Chief Financial Officer (2010-2011) of Alliant Energy Corporation. Ms. Kampling currently serves as a member of the Board, Finance Committee and Governance, Compensation and Nominating Committee of Xcel Energy Inc. (utilities company, 2020-present) and as a member of the Board, Audit, Finance and Risk Committee and Safety, Environmental, Technology and Operations Committee and Chair of the Executive Development and Compensation Committee of American Water Works Company, Inc. (utilities company, 2019-present). In addition, Ms. Kampling currently serves as a member of the Board of the Nature Conservancy, Wisconsin Chapter (2019-present). Previously, Ms. Kampling served as a Member of the Advisory Board of certain Fidelity® funds (2020), a member of the Board, Compensation Committee and Executive Committee and Chair of the Audit Committee of Briggs & Stratton Corporation (manufacturing, 2011-2021), a member of the Board of Interstate Power and Light Company (2012-2019) and Wisconsin Power and Light Company (2012-2019) (each a subsidiary of Alliant Energy Corporation) and as a member of the Board and Workforce Development Committee of the Business Roundtable (2018-2019).
Thomas A. Kennedy (1955)
Year of Election or Appointment: 2021
Trustee
Mr. Kennedy also serves as Trustee of other Fidelity ® funds. Previously, Mr. Kennedy served as a Member of the Advisory Board of certain Fidelity ® funds (2020) and held a variety of positions at Raytheon Company (aerospace and defense, 1983-2020), including Chairman and Chief Executive Officer (2014-2020) and Executive Vice President and Chief Operating Officer (2013-2014). Mr. Kennedy currently serves as Executive Chairman of the Board of Directors of Raytheon Technologies Corporation (aerospace and defense, 2020-present). He is also a member of the Rutgers School of Engineering Industry Advisory Board (2011-present) and a member of the UCLA Engineering Dean's Executive Board (2016-present).
Oscar Munoz (1959)
Year of Election or Appointment: 2021
Trustee
Mr. Munoz also serves as Trustee of other Fidelity ® funds. Prior to his retirement, Mr. Munoz served as Executive Chairman (2020-2021), Chief Executive Officer (2015-2020), President (2015-2016) and a member of the Board (2010-2021) of United Airlines Holdings, Inc. Mr. Munoz currently serves as a member of the Board of CBRE Group, Inc. (commercial real estate, 2020-present), a member of the Board of Univision Communications, Inc. (Hispanic media, 2020-present) and a member of the Advisory Board of Salesforce.com, Inc. (cloud-based software, 2020-present). Previously, Mr. Munoz served as a Member of the Advisory Board of certain Fidelity ® funds (2021).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Lead Independent Trustee
Mr. Thomas also serves as Trustee of other Fidelity ® funds. Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions). Mr. Thomas currently serves as a member of the Board of Fortune Brands Home and Security (home and security products, 2004-present) and as Director (2013-present) and Non-Executive Chairman of the Board (2022-present) of Interpublic Group of Companies, Inc. (marketing communication).
Susan Tomasky (1953)
Year of Election or Appointment: 2020
Trustee
Ms. Tomasky also serves as Trustee of other Fidelity ® funds. Prior to her retirement, Ms. Tomasky served in various executive officer positions at American Electric Power Company, Inc. (1998-2011), including most recently as President of AEP Transmission (2007-2011). Ms. Tomasky currently serves as a member of the Board and Sustainability Committee and as Chair of the Audit Committee of Marathon Petroleum Corporation (2018-present) and as a member of the Board, Executive Committee, Corporate Governance Committee and Organization and Compensation Committee and as Chair of the Audit Committee of Public Service Enterprise Group, Inc. (utilities company, 2012-present) and as a member of the Board of its subsidiary company, Public Service Electric and Gas Co. (2021-present). In addition, Ms. Tomasky currently serves as a member (2009-present) and President (2020-present) of the Board of the Royal Shakespeare Company - America (2009-present), as a member of the Board of the Columbus Association for the Performing Arts (2011-present) and as a member of the Board and Kenyon in the World Committee of Kenyon College (2016-present). Previously, Ms. Tomasky served as a Member of the Advisory Board of certain Fidelity ® funds (2020), as a member of the Board of the Columbus Regional Airport Authority (2007-2020), as a member of the Board (2011-2018) and Lead Independent Director (2015-2018) of Andeavor Corporation (previously Tesoro Corporation) (independent oil refiner and marketer) and as a member of the Board of Summit Midstream Partners LP (energy, 2012-2018).
Michael E. Wiley (1950)
Year of Election or Appointment: 2020
Trustee
Mr. Wiley also serves as Trustee of other Fidelity ® funds. Previously, Mr. Wiley served as a member of the Advisory Board of certain Fidelity ® funds (2018-2020), Chairman, President and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004). Mr. Wiley also previously served as a member of the Board of Andeavor Corporation (independent oil refiner and marketer, 2005-2018), a member of the Board of Andeavor Logistics LP (natural resources logistics, 2015-2018) and a member of the Board of High Point Resources (exploration and production, 2005-2020).
+ 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 the fund.
Advisory Board Members and Officers:
Correspondence intended for a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as a Member of the Advisory Board of other Fidelity ® funds. Mr. Lynch is Vice Chairman and a Director of Fidelity Management & Research Company LLC (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served as Vice Chairman and a Director of FMR Co., Inc. (investment adviser firm) and on the Special Olympics International Board of Directors (1997-2006).
Craig S. Brown (1977)
Year of Election or Appointment: 2022
Deputy Treasurer
Mr. Brown also serves as an officer of other funds. Mr. Brown serves as Assistant Treasurer of FIMM, LLC (2021-present) and is an employee of Fidelity Investments (2013-present). Previously, Mr. Brown served as Assistant Treasurer of certain Fidelity ® funds (2019-2022).
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).
William C. Coffey (1969)
Year of Election or Appointment: 2019
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Secretary and CLO of certain funds (2018-2019); CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-2019); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-2019); CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-2019); and Assistant Secretary of certain funds (2009-2018).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2018
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Co-Head of Equity (2018-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Executive Vice President of Fidelity SelectCo, LLC (2019), Head of Global Equity Research (2016-2018), Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as an officer of other funds. Mr. Davis serves as Assistant Treasurer of FIMM, LLC (2021-present), FMR Capital, Inc. (2017-present), FD Funds GP LLC (2021-present), FD Funds Holding LLC (2021-present), and FD Funds Management LLC (2021-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
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato serves as Assistant Treasurer of FIMM, LLC (2021-present) and 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)
Year of Election or Appointment: 2020
Assistant Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FIMM, LLC (2021-present) and 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).
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as Vice President of other funds. Ms. Holding serves as Co-Head of Equity (2018-present) and is an employee of Fidelity Investments (2013-present). Previously, Ms. Holding served as Executive Vice President of Fidelity SelectCo, LLC (2019) and as Chief Investment Officer of Fidelity Institutional Asset Management (2013-2018).
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); CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2019-present); Secretary of FD Funds GP LLC (2021-present), FD Funds Holding LLC (2021-present), FD Funds Management LLC (2021-present), and Fidelity Diversifying Solutions LLC (investment adviser firm, 2022-present); and Assistant Secretary of FIMM, LLC (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)
Year of Election or Appointment: 2020
Deputy Treasurer
Mr. Maher also serves as an officer of other funds. Mr. Maher serves as Assistant Treasurer of FIMM, LLC (2021-present) and 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).
Jason P. Pogorelec (1975)
Year of Election or Appointment: 2020
Chief Compliance Officer
Mr. Pogorelec also serves as Chief Compliance Officer of other funds. Mr. Pogorelec is a senior Vice President of Asset Management Compliance for Fidelity Investments and is an employee of Fidelity Investments (2006-present). Previously, Mr. Pogorelec served as Vice President, Associate General Counsel for Fidelity Investments (2010-2020) and Assistant Secretary of certain Fidelity ® funds (2015-2020).
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)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FIMM, LLC (2021-present) and 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.
Jim Wegmann (1979)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Wegmann also serves as an officer of other funds. Mr. Wegmann serves as Assistant Treasurer of FIMM, LLC (2021-present) and is an employee of Fidelity Investments (2011-present). Previously, Mr. Wegmann served as Assistant Treasurer of certain Fidelity ® funds (2019-2021).
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, 2022 to December 31, 2022). |
Actual Expenses
The 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 Purposes
The 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 comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| | | | | Annualized Expense Ratio- A | | Beginning Account Value July 1, 2022 | | Ending Account Value December 31, 2022 | | Expenses Paid During Period- C July 1, 2022 to December 31, 2022 |
| VIP Stock Selector All Cap Portfolio | | | | | | | | | | |
| Initial Class | | | | .60% | | | | | | |
| Actual | | | | | | $ 1,000 | | $ 1,033.70 | | $ 3.08 |
Hypothetical- B | | | | | | $ 1,000 | | $ 1,022.18 | | $ 3.06 |
| Service Class | | | | .70% | | | | | | |
| Actual | | | | | | $ 1,000 | | $ 1,032.60 | | $ 3.59 |
Hypothetical- B | | | | | | $ 1,000 | | $ 1,021.68 | | $ 3.57 |
| Service Class 2 | | | | .85% | | | | | | |
| Actual | | | | | | $ 1,000 | | $ 1,032.30 | | $ 4.35 |
Hypothetical- B | | | | | | $ 1,000 | | $ 1,020.92 | | $ 4.33 |
| Investor Class | | | | .67% | | | | | | |
| Actual | | | | | | $ 1,000 | | $ 1,032.60 | | $ 3.43 |
Hypothetical- B | | | | | | $ 1,000 | | $ 1,021.83 | | $ 3.41 |
| |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B 5% return per year before expenses
C Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/ 365 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
The dividend and capital gains distributions for the fund(s) are available on Fidelity.com or Institutional.Fidelity.com.
Initial Class, Service Class, Service Class 2 and Investor Class designate 100% of the dividends distributed during the fiscal year as qualifying for the dividends-received deduction for corporate shareholders.
The fund will notify shareholders in January 2023 of amounts for use in preparing 2022 income tax returns.
1.9904320.101
VSACI-ANN-0323
Fidelity® Variable Insurance Products:
Overseas Portfolio
Annual Report
December 31, 2022
Contents
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. © 2023 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund 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 GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Average 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 |
| | | | |
Periods ended December 31, 2022 | Past 1 year | Past 5 years | Past 10 years |
| Initial Class | -24.48% | 2.61% | 5.74% |
| Service Class | -24.58% | 2.51% | 5.64% |
| Service Class 2 | -24.68% | 2.35% | 5.48% |
| Investor Class | -24.54% | 2.53% | 5.67% |
| $10,000 Over 10 Years |
| |
Let's say hypothetically that $10,000 was invested in VIP Overseas Portfolio - Initial Class, a class of the fund, on December 31, 2012. The chart shows how the value of your investment would have changed, and also shows how the MSCI EAFE Index performed over the same period. |
|
|
Market Recap:
International equities returned -15.86% in 2022, according to the MSCI ACWI (All Country World Index) ex USA Index, as a multitude of risk factors challenged the global economy and financial markets. It was the index's lowest calendar-year return since 2008 and first retreat since 2018. Early on, non-U.S. stocks retreated to begin 2022 and returned -26.40% through September. Persistently high inflation in some markets, exacerbated by energy price shocks from the Russia-Ukraine conflict, spurred the U.S. Federal Reserve and other central banks to aggressively tighten monetary policy. Market interest rates eclipsed their highest level in roughly a decade, stoking recession fears and sending stocks into bear market territory. Other factors influencing equities abroad included surging global commodity prices, rising sovereign bond yields in some markets, ongoing global supply-chain disruption, a broadly strong U.S. dollar and the potential for variants of the coronavirus to upend global economic growth. The index reversed course in the fourth quarter, gaining 14.31% amid optimism on inflation and policy easing. For the full 12 months, emerging markets (-20%) and Europe ex U.K. (-17%) notably lagged. Conversely, the U.K. (-4%) held up best, followed by Asia Pacific ex Japan (-8%). By sector, information technology (-34%) fared worst. Communication services and consumer discretionary (-21% each) also trailed the broader market. In sharp contrast, energy gained 9% amid elevated prices for oil and natural gas. The financials (-7%) sector also outperformed, as did utilities (-10%) and consumer staples (-12%).
Comments from Portfolio Manager Vincent Montemaggiore:
For the year ending December 31, 2022, the fund's share classes returned about -25% to -24%, notably trailing the -14.27% result of the benchmark MSCI EAFE (Net MA) Index. By region, an overweighting and security selection in Europe ex U.K., along with picks among Japanese stocks, detracted most from the fund's relative result. Among sectors, investment choices within health care - the pharmaceuticals, biotechnology & life sciences industry in particular - hurt considerably. Stock selection in industrials and an overweighting in information technology also proved detrimental. A non-benchmark position in AddLife was the fund's largest individual relative detractor, due to its -75% result. Also holding back performance was an outsized stake in Teleperformance, which returned -46%. Avoiding Shell, a benchmark component that gained 32%, pressured the portfolio's relative result in 2022 as well. In contrast, investment choices in Asia Pacific ex Japan, primarily Hong Kong, were a relative bright spot. By sector, the top contributors to performance versus the benchmark were an underweighting and picks among consumer discretionary firms. Also, the fund's position in cash was a notable contributor. The top individual relative contributor was an outsized stake in TotalEnergies, which gained 31% the past year and was among our biggest holdings. Also adding value was our overweighting in Edenred (+20%). Another notable relative contributor was a larger-than-benchmark position in AIA Group (+12%), one of our more sizable holdings. Notable changes in positioning the past year include smaller allocations to companies in Japan and Sweden. By sector, meaningful shifts include decreased exposure to information technology stocks and a higher allocation to financials.
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.
Top Holdings (% of Fund's net assets) |
| |
| Nestle SA (Reg. S) (Switzerland, Food Products) | 3.5 | |
| LVMH Moet Hennessy Louis Vuitton SE (France, Textiles, Apparel & Luxury Goods) | 3.1 | |
| ASML Holding NV (Netherlands) (Netherlands, Semiconductors & Semiconductor Equipment) | 2.8 | |
| TotalEnergies SE (France, Oil, Gas & Consumable Fuels) | 2.7 | |
| AIA Group Ltd. (Hong Kong, Insurance) | 2.2 | |
| Diageo PLC (United Kingdom, Beverages) | 2.2 | |
| Roche Holding AG (participation certificate) (Switzerland, Pharmaceuticals) | 1.9 | |
| Compass Group PLC (United Kingdom, Hotels, Restaurants & Leisure) | 1.8 | |
| Wolters Kluwer NV (Netherlands, Professional Services) | 1.7 | |
| Compagnie Financiere Richemont SA Series A (Switzerland, Textiles, Apparel & Luxury Goods) | 1.8 | |
| | 23.7 | |
| |
| Market Sectors (% of Fund's net assets) |
| |
| Financials | 21.2 | |
| Industrials | 20.8 | |
| Health Care | 15.1 | |
| Information Technology | 14.7 | |
| Consumer Discretionary | 9.6 | |
| Consumer Staples | 7.8 | |
| Materials | 4.7 | |
| Energy | 2.7 | |
| Real Estate | 1.2 | |
| Communication Services | 0.6 | |
| |
Asset Allocation (% of Fund's net assets) |
|
Foreign investments - 91.8% |
|
Geographic Diversification (% of Fund's net assets) |
|
* Includes Short-Term investments and Net Other Assets (Liabilities). Percentages are based on country or territory of incorporation and are adjusted for the effect of futures contracts, if applicable. |
| |
Showing Percentage of Net Assets
| Common Stocks - 98.3% |
| | | Shares | Value ($) |
| Bailiwick of Jersey - 2.5% | | | |
| Experian PLC | | 455,000 | 15,410,092 |
| Ferguson PLC | | 157,500 | 19,878,765 |
| JTC PLC (a) | | 514,500 | 4,652,596 |
TOTAL BAILIWICK OF JERSEY | | | 39,941,453 |
| Belgium - 1.0% | | | |
| Azelis Group NV | | 129,500 | 3,676,289 |
| KBC Group NV | | 195,571 | 12,591,903 |
TOTAL BELGIUM | | | 16,268,192 |
| Bermuda - 0.5% | | | |
| Hiscox Ltd. | | 600,245 | 7,906,133 |
| Canada - 1.5% | | | |
| Constellation Software, Inc. | | 14,895 | 23,255,121 |
| Topicus.Com, Inc. (b) | | 23,814 | 1,250,323 |
TOTAL CANADA | | | 24,505,444 |
| Denmark - 3.3% | | | |
| Carlsberg A/S Series B | | 66,300 | 8,794,494 |
| DSV A/S | | 164,772 | 26,008,018 |
| Novo Nordisk A/S Series B | | 135,000 | 18,335,101 |
TOTAL DENMARK | | | 53,137,613 |
| Finland - 1.1% | | | |
| Nordea Bank ABP | | 1,601,803 | 17,143,453 |
| France - 17.8% | | | |
| Air Liquide SA | | 147,620 | 20,952,509 |
| ALTEN | | 112,681 | 14,088,343 |
| Antin Infrastructure Partners SA | | 40,800 | 886,590 |
| BNP Paribas SA | | 308,800 | 17,582,823 |
| Capgemini SA | | 137,065 | 22,914,006 |
| Edenred SA | | 442,242 | 24,086,488 |
| EssilorLuxottica SA (c) | | 136,505 | 24,723,805 |
| LVMH Moet Hennessy Louis Vuitton SE | | 67,930 | 49,432,204 |
| Pernod Ricard SA | | 120,642 | 23,729,701 |
| Safran SA | | 178,800 | 22,395,415 |
| Teleperformance | | 91,524 | 21,818,334 |
| TotalEnergies SE (c) | | 685,112 | 43,012,628 |
TOTAL FRANCE | | | 285,622,846 |
| Germany - 7.5% | | | |
| Allianz SE | | 97,786 | 20,882,965 |
| Deutsche Borse AG | | 122,539 | 21,100,014 |
| Hannover Reuck SE | | 106,025 | 21,053,223 |
| Infineon Technologies AG | | 486,200 | 14,776,555 |
| Merck KGaA | | 135,100 | 26,066,247 |
| Siemens Healthineers AG (a) | | 336,800 | 16,800,140 |
TOTAL GERMANY | | | 120,679,144 |
| Hong Kong - 2.3% | | | |
| AIA Group Ltd. | | 3,218,600 | 35,544,260 |
| Chervon Holdings Ltd. | | 137,100 | 752,697 |
TOTAL HONG KONG | | | 36,296,957 |
| India - 1.6% | | | |
| HCL Technologies Ltd. | | 306,700 | 3,845,617 |
| HDFC Bank Ltd. (b) | | 1,116,791 | 21,900,406 |
TOTAL INDIA | | | 25,746,023 |
| Ireland - 3.9% | | | |
| Flutter Entertainment PLC (b) | | 67,790 | 9,252,688 |
| ICON PLC (b) | | 71,000 | 13,791,750 |
| Kingspan Group PLC (Ireland) | | 251,200 | 13,600,812 |
| Linde PLC | | 77,668 | 25,333,748 |
TOTAL IRELAND | | | 61,978,998 |
| Italy - 2.1% | | | |
| FinecoBank SpA | | 1,045,599 | 17,370,938 |
| GVS SpA (a)(b)(c) | | 109,736 | 475,741 |
| Recordati SpA | | 389,719 | 16,165,520 |
TOTAL ITALY | | | 34,012,199 |
| Japan - 10.9% | | | |
| BayCurrent Consulting, Inc. | | 133,000 | 4,140,290 |
| Capcom Co. Ltd. | | 212,400 | 6,779,913 |
| FUJIFILM Holdings Corp. | | 243,100 | 12,155,351 |
| Hoya Corp. | | 229,111 | 21,943,927 |
| Iriso Electronics Co. Ltd. | | 97,729 | 3,130,690 |
| Misumi Group, Inc. | | 339,360 | 7,375,757 |
| NOF Corp. | | 183,411 | 7,311,437 |
| Olympus Corp. | | 899,888 | 15,871,855 |
| Persol Holdings Co. Ltd. | | 498,803 | 10,609,410 |
| Relo Group, Inc. | | 390,574 | 6,278,537 |
| SMC Corp. | | 31,585 | 13,188,437 |
| Sony Group Corp. | | 324,033 | 24,698,320 |
| Suzuki Motor Corp. | | 323,076 | 10,347,268 |
| TIS, Inc. | | 283,574 | 7,452,827 |
| Tokio Marine Holdings, Inc. | | 817,000 | 17,453,076 |
| Tokyo Electron Ltd. | | 22,332 | 6,561,783 |
TOTAL JAPAN | | | 175,298,878 |
| Kenya - 0.2% | | | |
| Safaricom Ltd. | | 19,349,700 | 3,786,834 |
| Luxembourg - 1.0% | | | |
| Eurofins Scientific SA | | 215,200 | 15,447,998 |
| Netherlands - 7.2% | | | |
| ASM International NV (Netherlands) | | 49,800 | 12,562,127 |
| ASML Holding NV (Netherlands) | | 83,339 | 45,440,765 |
| Euronext NV (a) | | 140,889 | 10,430,340 |
| IMCD NV | | 136,526 | 19,459,108 |
| Wolters Kluwer NV | | 268,117 | 28,057,691 |
TOTAL NETHERLANDS | | | 115,950,031 |
| Spain - 1.1% | | | |
| Amadeus IT Holding SA Class A (b) | | 342,407 | 17,763,312 |
| Sweden - 4.7% | | | |
| Addlife AB | | 541,224 | 5,632,752 |
| AddTech AB (B Shares) | | 752,251 | 10,719,821 |
| Atlas Copco AB (A Shares) | | 1,602,876 | 18,991,514 |
| Hexagon AB (B Shares) | | 1,795,494 | 18,825,920 |
| Indutrade AB | | 878,756 | 17,777,485 |
| Kry International AB (b)(d)(e) | | 587 | 104,087 |
| Nordnet AB | | 233,500 | 3,377,799 |
TOTAL SWEDEN | | | 75,429,378 |
| Switzerland - 11.0% | | | |
| Compagnie Financiere Richemont SA Series A | | 215,730 | 27,971,544 |
| Julius Baer Group Ltd. | | 276,225 | 16,076,605 |
| Nestle SA (Reg. S) | | 487,235 | 56,280,238 |
| Partners Group Holding AG | | 15,220 | 13,444,759 |
| Roche Holding AG (participation certificate) | | 97,891 | 30,761,029 |
| Sika AG | | 95,924 | 23,060,438 |
| Sonova Holding AG | | 34,124 | 8,093,217 |
TOTAL SWITZERLAND | | | 175,687,830 |
| Taiwan - 0.5% | | | |
| Taiwan Semiconductor Manufacturing Co. Ltd. | | 489,600 | 7,111,729 |
| United Kingdom - 10.0% | | | |
| AstraZeneca PLC (United Kingdom) | | 68,013 | 9,203,477 |
| BAE Systems PLC | | 1,382,100 | 14,274,886 |
| Beazley PLC | | 1,051,601 | 8,638,708 |
| Compass Group PLC | | 1,218,839 | 28,145,471 |
| Dechra Pharmaceuticals PLC | | 215,388 | 6,817,097 |
| Diageo PLC | | 798,722 | 34,961,559 |
| Diploma PLC | | 305,335 | 10,247,181 |
| RELX PLC (London Stock Exchange) | | 916,448 | 25,337,984 |
| Rentokil Initial PLC | | 2,753,589 | 16,917,413 |
| Volution Group PLC | | 1,405,597 | 6,202,432 |
TOTAL UNITED KINGDOM | | | 160,746,208 |
| United States of America - 6.6% | | | |
| CBRE Group, Inc. (b) | | 175,500 | 13,506,480 |
| Equifax, Inc. | | 36,900 | 7,171,884 |
| Intercontinental Exchange, Inc. | | 135,051 | 13,854,882 |
| Marsh & McLennan Companies, Inc. | | 147,676 | 24,437,424 |
| Moody's Corp. | | 46,800 | 13,039,416 |
| Pool Corp. | | 5,900 | 1,783,747 |
| S&P Global, Inc. | | 56,121 | 18,797,168 |
| Thermo Fisher Scientific, Inc. | | 24,300 | 13,381,767 |
TOTAL UNITED STATES OF AMERICA | | | 105,972,768 |
| TOTAL COMMON STOCKS (Cost $1,269,266,372) | | | 1,576,433,421 |
| | | | |
| Nonconvertible Preferred Stocks - 0.1% |
| | | Shares | Value ($) |
| Sweden - 0.1% | | | |
Kry International AB Series E (b)(d)(e) (Cost $1,550,731) | | 3,392 | 601,470 |
| | | | |
| Money Market Funds - 2.1% |
| | | Shares | Value ($) |
| Fidelity Cash Central Fund 4.37% (f) | | 20,309,018 | 20,313,080 |
| Fidelity Securities Lending Cash Central Fund 4.37% (f)(g) | | 13,288,383 | 13,289,712 |
| TOTAL MONEY MARKET FUNDS (Cost $33,602,792) | | | 33,602,792 |
| | | | |
| TOTAL INVESTMENT IN SECURITIES - 100.5% (Cost $1,304,419,895) | 1,610,637,683 |
NET OTHER ASSETS (LIABILITIES) - (0.5)% | (7,424,574) |
| NET ASSETS - 100.0% | 1,603,213,109 |
| | |
Categorizations in the Schedule of Investments are based on country or territory of incorporation.
Legend
| (a) | Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $32,358,817 or 2.0% of net assets. |
| (c) | Security or a portion of the security is on loan at period end. |
| (d) | Restricted securities (including private placements) - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $705,557 or 0.0% of net assets. |
| (f) | Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request. |
| (g) | Investment made with cash collateral received from securities on loan. |
| Additional information on each restricted holding is as follows: |
| Security | Acquisition Date | Acquisition Cost ($) |
| Kry International AB | 5/14/21 | 254,938 |
| | | |
| Kry International AB Series E | 5/14/21 | 1,550,731 |
| | | |
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
| Affiliate | Value, beginning of period ($) | Purchases ($) | Sales Proceeds ($) | Dividend Income ($) | Realized Gain (loss) ($) | Change in Unrealized appreciation (depreciation) ($) | Value, end of period ($) | % ownership, end of period |
| Fidelity Cash Central Fund 4.37% | 36,218,372 | 455,390,304 | 471,295,596 | 620,072 | - | - | 20,313,080 | 0.0% |
| Fidelity Securities Lending Cash Central Fund 4.37% | - | 216,081,254 | 202,791,542 | 186,014 | - | - | 13,289,712 | 0.0% |
| Total | 36,218,372 | 671,471,558 | 674,087,138 | 806,086 | - | - | 33,602,792 | |
| | | | | | | | | |
Amounts in the dividend income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line item in the Statement of Operations, if applicable.
Amount for Fidelity Securities Lending Cash Central Fund represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities.
Amounts included in the purchases and sales proceeds columns may include in-kind transactions, if applicable.
Investment Valuation
The following is a summary of the inputs used, as of December 31, 2022, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: |
| Description | Total ($) | Level 1 ($) | Level 2 ($) | Level 3 ($) |
Investments in Securities: | | | | |
|
| Equities: | | | | |
Communication Services | 10,566,747 | 3,786,834 | 6,779,913 | - |
Consumer Discretionary | 152,383,939 | 11,036,435 | 141,347,504 | - |
Consumer Staples | 123,765,992 | 23,729,701 | 100,036,291 | - |
Energy | 43,012,628 | 43,012,628 | - | - |
Financials | 338,165,481 | 175,033,429 | 163,132,052 | - |
Health Care | 243,035,682 | 104,053,906 | 138,981,776 | - |
Industrials | 333,734,759 | 185,093,561 | 148,641,198 | - |
Information Technology | 235,926,514 | 75,242,402 | 159,978,555 | 705,557 |
Materials | 76,658,132 | 25,333,748 | 51,324,384 | - |
Real Estate | 19,785,017 | 13,506,480 | 6,278,537 | - |
|
| Money Market Funds | 33,602,792 | 33,602,792 | - | - |
| Total Investments in Securities: | 1,610,637,683 | 693,431,916 | 916,500,210 | 705,557 |
| Statement of Assets and Liabilities |
| | | | December 31, 2022 |
| | | | | |
| Assets | | | | |
| Investment in securities, at value (including securities loaned of $12,461,770) - See accompanying schedule: | | | | |
Unaffiliated issuers (cost $1,270,817,103) | | $1,577,034,891 | | |
Fidelity Central Funds (cost $33,602,792) | | 33,602,792 | | |
| | | | | |
| Total Investment in Securities (cost $1,304,419,895) | | | $ | 1,610,637,683 |
| Receivable for investments sold | | | | 4,059,711 |
| Receivable for fund shares sold | | | | 14,689,582 |
| Dividends receivable | | | | 268,236 |
| Reclaims receivable | | | | 4,901,837 |
| Distributions receivable from Fidelity Central Funds | | | | 134,376 |
| Prepaid expenses | | | | 1,866 |
| Other receivables | | | | 147,256 |
Total assets | | | | 1,634,840,547 |
| Liabilities | | | | |
| Payable to custodian bank | | $275,431 | | |
| Payable for investments purchased | | 2,581,385 | | |
| Payable for fund shares redeemed | | 13,673,924 | | |
| Accrued management fee | | 884,722 | | |
| Distribution and service plan fees payable | | 72,928 | | |
| Other affiliated payables | | 167,687 | | |
| Other payables and accrued expenses | | 681,649 | | |
| Collateral on securities loaned | | 13,289,712 | | |
| Total Liabilities | | | | 31,627,438 |
| Net Assets | | | $ | 1,603,213,109 |
| Net Assets consist of: | | | | |
| Paid in capital | | | $ | 1,343,536,866 |
| Total accumulated earnings (loss) | | | | 259,676,243 |
| Net Assets | | | $ | 1,603,213,109 |
| | | | | |
| Net Asset Value and Maximum Offering Price | | | | |
| Initial Class : | | | | |
Net Asset Value , offering price and redemption price per share ($798,672,785 ÷ 36,805,491 shares) | | | $ | 21.70 |
| Service Class : | | | | |
Net Asset Value , offering price and redemption price per share ($125,827,371 ÷ 5,829,880 shares) | | | $ | 21.58 |
| Service Class 2 : | | | | |
Net Asset Value , offering price and redemption price per share ($306,314,868 ÷ 14,287,707 shares) | | | $ | 21.44 |
| Investor Class : | | | | |
Net Asset Value , offering price and redemption price per share ($372,398,085 ÷ 17,234,559 shares) | | | $ | 21.61 |
| Statement of Operations |
| | | | Year ended December 31, 2022 |
| Investment Income | | | | |
| Dividends | | | $ | 34,519,048 |
| Foreign Tax Reclaims | | | | 2,815,781 |
| Income from Fidelity Central Funds (including $186,014 from security lending) | | | | 806,086 |
| Income before foreign taxes withheld | | | | 38,140,915 |
| Less foreign taxes withheld | | | | (6,559,508) |
| Total Income | | | | 31,581,407 |
| Expenses | | | | |
| Management fee | $ | 11,036,904 | | |
| Transfer agent fees | | 1,365,035 | | |
| Distribution and service plan fees | | 899,516 | | |
| Accounting fees | | 737,228 | | |
| Custodian fees and expenses | | 95,775 | | |
| Independent trustees' fees and expenses | | 5,951 | | |
| Audit | | 84,038 | | |
| Legal | | 2,323 | | |
| Miscellaneous | | 7,985 | | |
| Total expenses before reductions | | 14,234,755 | | |
| Expense reductions | | (58,261) | | |
| Total expenses after reductions | | | | 14,176,494 |
| Net Investment income (loss) | | | | 17,404,913 |
| Realized and Unrealized Gain (Loss) | | | | |
| Net realized gain (loss) on: | | | | |
| Investment Securities: | | | | |
| Unaffiliated issuers(net of foreign taxes of $583,537) | | (42,858,551) | | |
| Foreign currency transactions | | (208,800) | | |
| Total net realized gain (loss) | | | | (43,067,351) |
| Change in net unrealized appreciation (depreciation) on: | | | | |
| Investment Securities: | | | | |
| Unaffiliated issuers (net of decrease in deferred foreign taxes of $311,573) | | (500,262,745) | | |
| Assets and liabilities in foreign currencies | | (231,199) | | |
| Total change in net unrealized appreciation (depreciation) | | | | (500,493,944) |
| Net gain (loss) | | | | (543,561,295) |
| Net increase (decrease) in net assets resulting from operations | | | $ | (526,156,382) |
| Statement of Changes in Net Assets |
| |
| | Year ended December 31, 2022 | | Year ended December 31, 2021 |
| Increase (Decrease) in Net Assets | | | | |
| Operations | | | | |
| Net investment income (loss) | $ | 17,404,913 | $ | 8,601,327 |
| Net realized gain (loss) | | (43,067,351) | | 111,414,540 |
| Change in net unrealized appreciation (depreciation) | | (500,493,944) | | 230,036,881 |
| Net increase (decrease) in net assets resulting from operations | | (526,156,382) | | 350,052,748 |
| Distributions to shareholders | | (32,358,063) | | (158,054,169) |
| Share transactions - net increase (decrease) | | 49,313,373 | | 124,163,902 |
| Total increase (decrease) in net assets | | (509,201,072) | | 316,162,481 |
| | | | | |
| Net Assets | | | | |
| Beginning of period | | 2,112,414,181 | | 1,796,251,700 |
| End of period | $ | 1,603,213,109 | $ | 2,112,414,181 |
| | | | | |
| | | | | |
Financial Highlights
| VIP Overseas Portfolio Initial Class |
| |
| Years ended December 31, | | 2022 | | 2021 | | 2020 | | 2019 | | 2018 |
Selected Per-Share Data | | | | | | | | | | |
| Net asset value, beginning of period | $ | 29.28 | $ | 26.52 | $ | 23.13 | $ | 19.13 | $ | 22.87 |
| Income from Investment Operations | | | | | | | | | | |
Net investment income (loss) A,B | | .25 | | .15 | | .13 | | .40 | | .36 |
| Net realized and unrealized gain (loss) | | (7.37) | | 4.91 | | 3.46 | | 4.74 | | (3.75) |
| Total from investment operations | | (7.12) | | 5.06 | | 3.59 | | 5.14 | | (3.39) |
| Distributions from net investment income | | (.25) | | (.14) C | | (.10) | | (.38) | | (.35) |
| Distributions from net realized gain | | (.21) | | (2.16) C | | (.10) | | (.77) | | - |
| Total distributions | | (.46) | | (2.30) | | (.20) | | (1.14) D | | (.35) |
| Net asset value, end of period | $ | 21.70 | $ | 29.28 | $ | 26.52 | $ | 23.13 | $ | 19.13 |
Total Return E,F | | (24.48)% | | 19.70% | | 15.61% | | 27.77% | | (14.81)% |
Ratios to Average Net Assets B,G,H | | | | | | | | | | |
| Expenses before reductions | | .77% | | .77% | | .79% | | .79% | | .79% |
| Expenses net of fee waivers, if any | | .77% | | .77% | | .79% | | .79% | | .79% |
| Expenses net of all reductions | | .77% | | .77% | | .77% | | .78% | | .78% |
| Net investment income (loss) | | 1.10% | | .51% | | .59% | | 1.87% | | 1.59% |
| Supplemental Data | | | | | | | | | | |
| Net assets, end of period (000 omitted) | $ | 798,673 | $ | 1,034,416 | $ | 872,019 | $ | 826,554 | $ | 662,011 |
Portfolio turnover rate I | | 33% | | 26% | | 47% | | 38% | | 40% |
A Calculated based on average shares outstanding during the period.
B Net investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any mutual funds or ETFs is not included in the Fund's net investment income (loss) ratio.
C The amount shown reflects reclassifications related to book to tax differences that were made in the year shown.
D Total distributions per share do not sum due to rounding.
E Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G 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.
H 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.
I Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
| VIP Overseas Portfolio Service Class |
| |
| Years ended December 31, | | 2022 | | 2021 | | 2020 | | 2019 | | 2018 |
Selected Per-Share Data | | | | | | | | | | |
| Net asset value, beginning of period | $ | 29.13 | $ | 26.40 | $ | 23.03 | $ | 19.05 | $ | 22.77 |
| Income from Investment Operations | | | | | | | | | | |
Net investment income (loss) A,B | | .23 | | .12 | | .11 | | .37 | | .33 |
| Net realized and unrealized gain (loss) | | (7.35) | | 4.88 | | 3.44 | | 4.73 | | (3.72) |
| Total from investment operations | | (7.12) | | 5.00 | | 3.55 | | 5.10 | | (3.39) |
| Distributions from net investment income | | (.23) | | (.11) C | | (.08) | | (.36) | | (.33) |
| Distributions from net realized gain | | (.21) | | (2.16) C | | (.10) | | (.77) | | - |
| Total distributions | | (.43) D | | (2.27) | | (.18) | | (1.12) D | | (.33) |
| Net asset value, end of period | $ | 21.58 | $ | 29.13 | $ | 26.40 | $ | 23.03 | $ | 19.05 |
Total Return E,F | | (24.58)% | | 19.57% | | 15.49% | | 27.67% | | (14.88)% |
Ratios to Average Net Assets B,G,H | | | | | | | | | | |
| Expenses before reductions | | .87% | | .87% | | .89% | | .89% | | .89% |
| Expenses net of fee waivers, if any | | .87% | | .87% | | .89% | | .89% | | .89% |
| Expenses net of all reductions | | .87% | | .87% | | .87% | | .88% | | .88% |
| Net investment income (loss) | | 1.00% | | .41% | | .49% | | 1.77% | | 1.49% |
| Supplemental Data | | | | | | | | | | |
| Net assets, end of period (000 omitted) | $ | 125,827 | $ | 168,369 | $ | 151,886 | $ | 134,648 | $ | 114,094 |
Portfolio turnover rate I | | 33% | | 26% | | 47% | | 38% | | 40% |
A Calculated based on average shares outstanding during the period.
B Net investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any mutual funds or ETFs is not included in the Fund's net investment income (loss) ratio.
C The amount shown reflects reclassifications related to book to tax differences that were made in the year shown.
D Total distributions per share do not sum due to rounding.
E Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G 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.
H 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.
I Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
| VIP Overseas Portfolio Service Class 2 |
| |
| Years ended December 31, | | 2022 | | 2021 | | 2020 | | 2019 | | 2018 |
Selected Per-Share Data | | | | | | | | | | |
| Net asset value, beginning of period | $ | 28.94 | $ | 26.25 | $ | 22.90 | $ | 18.95 | $ | 22.66 |
| Income from Investment Operations | | | | | | | | | | |
Net investment income (loss) A,B | | .19 | | .07 | | .08 | | .34 | | .30 |
| Net realized and unrealized gain (loss) | | (7.29) | | 4.86 | | 3.42 | | 4.71 | | (3.71) |
| Total from investment operations | | (7.10) | | 4.93 | | 3.50 | | 5.05 | | (3.41) |
| Distributions from net investment income | | (.19) | | (.08) C | | (.05) | | (.33) | | (.30) |
| Distributions from net realized gain | | (.21) | | (2.16) C | | (.10) | | (.77) | | - |
| Total distributions | | (.40) | | (2.24) | | (.15) | | (1.10) | | (.30) |
| Net asset value, end of period | $ | 21.44 | $ | 28.94 | $ | 26.25 | $ | 22.90 | $ | 18.95 |
Total Return D,E | | (24.68)% | | 19.39% | | 15.33% | | 27.50% | | (15.06)% |
Ratios to Average Net Assets B,F,G | | | | | | | | | | |
| Expenses before reductions | | 1.02% | | 1.02% | | 1.04% | | 1.04% | | 1.04% |
| Expenses net of fee waivers, if any | | 1.02% | | 1.02% | | 1.04% | | 1.04% | | 1.04% |
| Expenses net of all reductions | | 1.02% | | 1.02% | | 1.02% | | 1.03% | | 1.03% |
| Net investment income (loss) | | .85% | | .26% | | .34% | | 1.62% | | 1.34% |
| Supplemental Data | | | | | | | | | | |
| Net assets, end of period (000 omitted) | $ | 306,315 | $ | 398,271 | $ | 352,459 | $ | 331,113 | $ | 291,392 |
Portfolio turnover rate H | | 33% | | 26% | | 47% | | 38% | | 40% |
A Calculated based on average shares outstanding during the period.
B Net investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any mutual funds or ETFs is not included in the Fund's net investment income (loss) ratio.
C The amount shown reflects reclassifications related to book to tax differences that were made in the year shown.
D Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F 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.
G 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.
H Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
| VIP Overseas Portfolio Investor Class |
| |
| Years ended December 31, | | 2022 | | 2021 | | 2020 | | 2019 | | 2018 |
Selected Per-Share Data | | | | | | | | | | |
| Net asset value, beginning of period | $ | 29.16 | $ | 26.42 | $ | 23.05 | $ | 19.06 | $ | 22.79 |
| Income from Investment Operations | | | | | | | | | | |
Net investment income (loss) A,B | | .23 | | .12 | | .11 | | .38 | | .34 |
| Net realized and unrealized gain (loss) | | (7.34) | | 4.90 | | 3.44 | | 4.74 | | (3.74) |
| Total from investment operations | | (7.11) | | 5.02 | | 3.55 | | 5.12 | | (3.40) |
| Distributions from net investment income | | (.23) | | (.12) C | | (.08) | | (.36) | | (.33) |
| Distributions from net realized gain | | (.21) | | (2.16) C | | (.10) | | (.77) | | - |
| Total distributions | | (.44) | | (2.28) | | (.18) | | (1.13) | | (.33) |
| Net asset value, end of period | $ | 21.61 | $ | 29.16 | $ | 26.42 | $ | 23.05 | $ | 19.06 |
Total Return D,E | | (24.54)% | | 19.63% | | 15.49% | | 27.74% | | (14.90)% |
Ratios to Average Net Assets B,F,G | | | | | | | | | | |
| Expenses before reductions | | .84% | | .85% | | .87% | | .87% | | .87% |
| Expenses net of fee waivers, if any | | .84% | | .84% | | .86% | | .87% | | .87% |
| Expenses net of all reductions | | .84% | | .84% | | .85% | | .86% | | .86% |
| Net investment income (loss) | | 1.02% | | .43% | | .51% | | 1.79% | | 1.51% |
| Supplemental Data | | | | | | | | | | |
| Net assets, end of period (000 omitted) | $ | 372,398 | $ | 511,358 | $ | 419,888 | $ | 421,140 | $ | 340,705 |
Portfolio turnover rate H | | 33% | | 26% | | 47% | | 38% | | 40% |
A Calculated based on average shares outstanding during the period.
B Net investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any mutual funds or ETFs is not included in the Fund's net investment income (loss) ratio.
C The amount shown reflects reclassifications related to book to tax differences that were made in the year shown.
D Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F 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.
G 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.
H Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
For the period ended December 31, 2022
1. Organization.
VIP Overseas Portfolio (the Fund) is a fund of Variable Insurance Products Fund (the Trust) and is authorized to issue an unlimited number of shares. 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. Shares of the Fund may only be purchased by insurance companies for the purpose of funding variable annuity or variable life insurance contracts. The Fund offers the following classes of shares: Initial Class 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.
2. Investments in Fidelity Central Funds.
Funds may 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 Schedule of Investments lists any Fidelity Central Funds held as an investment as of period end, but does not include the underlying holdings of each Fidelity Central Fund. An investing fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
Based on its investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the investing fund. These strategies are consistent with the investment objectives of the investing fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the investing fund.
| Fidelity Central Fund | Investment Manager | Investment Objective | Investment Practices | Expense Ratio A |
| Fidelity Money Market Central Funds | Fidelity Management & Research Company LLC (FMR) | Each fund seeks to obtain a high level of current income consistent with the preservation of capital and liquidity. | Short-term Investments | Less than .005% |
A Expenses expressed as a percentage of average net assets and are as of each underlying Central Fund's most recent annual or semi-annual shareholder report.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including investment valuation policies) of those funds, and are not covered by the Report of Independent Registered Public Accounting Firm, are available on the Securities and Exchange Commission website or upon request.
3. Significant Accounting Policies.
The 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 Fund's Schedule of Investments lists any underlying mutual funds or exchange-traded funds (ETFs) but does not include the underlying holdings of these funds. The following summarizes the significant accounting policies of the Fund:
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 designated the Fund's investment adviser as the valuation designee responsible for the fair valuation function and performing fair value determinations as needed. The investment adviser has established a Fair Value Committee (the Committee) to carry out the day-to-day fair valuation responsibilities and has adopted policies and procedures to govern the fair valuation process and the activities of the Committee. In accordance with these fair valuation policies and procedures, which have been approved by the Board, the Fund attempts to obtain prices from one or more third party pricing services 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 the policies and procedures. Factors used in determining fair value vary by investment type and may include market or investment specific events, transaction data, estimated cash flows, and market observations of comparable investments. The frequency that the fair valuation procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee manages the Fund's fair valuation practices and maintains the fair valuation policies and procedures. The Fund's investment adviser reports to the Board information regarding the fair valuation process and related material matters.
The 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 - unadjusted 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 the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, ETFs and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of December 31, 2022 is included at the end of the Fund's Schedule of Investments.
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.
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 realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's 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 and include proceeds received from litigation. Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of a fund include an amount in addition to trade execution, which may be rebated back to a fund. Any such rebates are included in net realized gain (loss) on investments in the Statement of Operations. 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 Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines 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. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. Funds may file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. Any withholding tax reclaims income is included in the Statement of Operations in foreign tax reclaims. Any receivables for withholding tax reclaims are included in the Statement of Assets and Liabilities in reclaims receivable.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of a 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 a fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred, as applicable. Certain expense reductions may also differ by class, if applicable. 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 that fund and do not include any expenses associated with any underlying mutual funds or exchange-traded funds. Although not included in a fund's expenses, a fund indirectly bears its proportionate share of these expenses through the net asset value of each underlying mutual fund or exchange-traded fund. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan) for certain Funds, certain independent Trustees have elected to defer receipt of a portion of their annual compensation. Deferred amounts are invested in affiliated mutual funds, are marked-to-market and remain in a fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees presented below are included in the accompanying Statement of Assets and Liabilities in other receivables and other payables and accrued expenses, as applicable.
| VIP Overseas Portfolio | $11,081 |
Income Tax Information and Distributions to Shareholders. Each year, the 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, 2022, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the 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. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The 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 the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. The Fund is subject to a tax imposed on capital gains by certain countries in which it invests. An estimated deferred tax liability for net unrealized appreciation on the applicable securities is included in Other payables and accrued expenses on the Statement of Assets & Liabilities.
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 foreign currency transactions, certain foreign taxes, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
| Gross unrealized appreciation | $371,394,213 |
| Gross unrealized depreciation | (73,956,208) |
| Net unrealized appreciation (depreciation) | $297,438,005 |
| Tax Cost | $1,313,199,678 |
The tax-based components of distributable earnings as of period end were as follows:
| Capital loss carryforward | $(36,980,524) |
| Net unrealized appreciation (depreciation) on securities and other investments | $297,182,247 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of fiscal period end and is subject to adjustment.
Short-term | $(36,980,524) |
Long-term | - |
| Total capital loss carryforward | $(36,980,524 ) |
The tax character of distributions paid was as follows:
| | December 31, 2022 | December 31, 2021 |
| Ordinary Income | $ 16,968,384 | $ 24,742,551 |
| Long-term Capital Gains | 15,389,679 | 133,311,618 |
| Total | $32,358,063 | $158,054,169 |
Restricted Securities (including Private Placements). Funds may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities held at period end is included at the end of the Schedule of Investments, if applicable.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, as applicable, are noted in the table below.
| | Purchases ($) | Sales ($) |
| VIP Overseas Portfolio | 584,024,905 | 551,967,364 |
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company LLC (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .424% of the Fund's average net assets and an annualized group fee rate that averaged .23% during the period. The group fee rate is based upon the monthly average net assets of a group of registered investment companies with which the investment adviser has management contracts. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annual management fee rate was .65% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has 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 re-allowed to insurance companies for the distribution of shares and providing shareholder support services, were as follows:
| Service Class | $131,801 |
| Service Class 2 | 767,715 |
| | $899,516 |
Transfer Agent Fees. Fidelity Investments Institutional Operations Company LLC (FIIOC), an affiliate of the investment adviser, is the Fund's transfer, dividend disbursing, and shareholder servicing agent. FIIOC receives an asset-based fee with respect to each class. Each class pays a fee for transfer agent services, typesetting and printing and mailing of shareholder reports, excluding mailing of proxy statements. For the period, transfer agent fees for each class were as follows:
| | Amount | % of Class-Level Average Net Assets |
| Initial Class | $530,687 | .06 |
| Service Class | 82,216 | .06 |
| Service Class 2 | 191,530 | .06 |
| Investor Class | 560,602 | .14 |
| | $1,365,035 | |
Accounting Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. For the period, the fees were equivalent to the following annual rates:
| | % of Average Net Assets |
| VIP Overseas Portfolio | .04 |
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:
| | Amount |
| VIP Overseas Portfolio | $ 470 |
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. Any interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note. Interfund trades during the period are noted in the table below.
| | Purchases ($) | Sales ($) | Realized Gain (Loss) ($) |
| VIP Overseas Portfolio | 48,712,493 | 16,149,421 | 14,688 |
6. Committed Line of Credit.
Certain Funds participate with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which are reflected in Miscellaneous expenses on the Statement of Operations, and are listed below. During the period, there were no borrowings on this line of credit.
| | Amount |
| VIP Overseas Portfolio | $ 3,087 |
7. Security Lending.
Funds lend portfolio securities from time to time in order to earn additional income. Lending agents are used, including National Financial Services (NFS), an affiliate of the investment adviser. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of a fund's daily lending revenue, for its services as lending agent. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, a fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of a fund and any additional required collateral is delivered to a fund on the next business day. A fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund may apply collateral received from the borrower against the obligation. A fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Affiliated security lending activity, if any, was as follows:
| | Total Security Lending Fees Paid to NFS | Security Lending Income From Securities Loaned to NFS | Value of Securities Loaned to NFS at Period End |
| VIP Overseas Portfolio | $19,616 | $- | $- |
8. Expense Reductions.
Through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, custodian credits reduced the Fund's expenses by $257.
In addition, during the period the investment adviser or an affiliate reimbursed and/or waived a portion of fund-level operating expenses in the amount of $58,004.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| | Year ended December 31, 2022 | Year ended December 31, 2021 |
| VIP Overseas Portfolio | | |
| Distributions to shareholders | | |
| Initial Class | $16,648,031 | $77,624,654 |
| Service Class | 2,512,372 | 12,782,530 |
| Service Class 2 | 5,481,619 | 29,640,102 |
| Investor Class | 7,716,041 | 38,006,883 |
Total | $32,358,063 | $158,054,169 |
10. Share Transactions.
Transactions for each class of shares were as follows and may contain in-kind transactions:
| | Shares | Shares | Dollars | Dollars |
| | Year ended December 31, 2022 | Year ended December 31, 2021 | Year ended December 31, 2022 | Year ended December 31, 2021 |
| VIP Overseas Portfolio | | | | |
| Initial Class | | | | |
| Shares sold | 15,978,609 | 7,306,732 | $ 369,361,688 | $ 206,775,528 |
| Reinvestment of distributions | 687,470 | 2,766,494 | 16,648,031 | 77,624,654 |
| Shares redeemed | (15,186,615) | (7,626,572) | (345,432,431) | (216,138,658) |
| Net increase (decrease) | 1,479,464 | 2,446,654 | $40,577,288 | $68,261,524 |
| Service Class | | | | |
| Shares sold | 646,505 | 376,377 | $ 14,653,527 | $ 10,474,364 |
| Reinvestment of distributions | 103,833 | 459,099 | 2,512,372 | 12,782,530 |
| Shares redeemed | (700,870) | (809,211) | (15,950,114) | (22,845,537) |
| Net increase (decrease) | 49,468 | 26,265 | $1,215,785 | $411,357 |
| Service Class 2 | | | | |
| Shares sold | 2,262,090 | 882,761 | $ 50,339,427 | $ 24,684,454 |
| Reinvestment of distributions | 226,690 | 1,070,686 | 5,481,619 | 29,640,102 |
| Shares redeemed | (1,964,135) | (1,619,652) | (45,187,038) | (45,173,824) |
| Net increase (decrease) | 524,645 | 333,795 | $10,634,008 | $9,150,732 |
| Investor Class | | | | |
| Shares sold | 3,140,368 | 3,219,623 | $ 72,621,907 | $ 91,456,154 |
| Reinvestment of distributions | 318,283 | 1,359,649 | 7,716,041 | 38,006,883 |
| Shares redeemed | (3,761,171) | (2,932,892) | (83,451,656) | (83,122,748) |
| Net increase (decrease) | (302,520) | 1,646,380 | $(3,113,708) | $46,340,289 |
11. Other.
A fund's 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 fund. In the normal course of business, a fund may also enter into contracts that provide general indemnifications. A fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against a fund. The risk of material loss from such claims is considered remote.
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 were owners of record of more than 10% of the outstanding shares as follows:
| Fund | Affiliated % | Number ofUnaffiliated Shareholders | Unaffiliated Shareholders % |
| VIP Overseas Portfolio | 17% | 1 | 15% |
Mutual funds managed by the investment adviser or its affiliates, in aggregate, were the owners of record of more than 20% of the total outstanding shares.
| Fund | % of shares held |
| VIP Overseas Portfolio | 38% |
12. Risk and Uncertainties.
Many factors affect a fund's performance. Developments that disrupt global economies and financial markets, such as pandemics, epidemics, outbreaks of infectious diseases, war, terrorism, and environmental disasters, may significantly affect a fund's investment performance. The effects of these developments to a fund will be impacted by the types of securities in which a fund invests, the financial condition, industry, economic sector, and geographic location of an issuer, and a fund's level of investment in the securities of that issuer.
To the Board of Trustees of Variable Insurance Products Fund and Shareholders of VIP Overseas Portfolio
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of VIP Overseas Portfolio (one of the funds constituting Variable Insurance Products Fund, referred to hereafter as the "Fund") as of December 31, 2022, the related statement of operations for the year ended December 31, 2022, the statement of changes in net assets for each of the two years in the period ended December 31, 2022, including the related notes, and the financial highlights for each of the five years in the period ended December 31, 2022 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of December 31, 2022, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended December 31, 2022 and the financial highlights for each of the five years in the period ended December 31, 2022 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's 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 Fund 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, 2022 by correspondence with the custodian, issuers of privately offered securities 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 opinion .
/s/ PricewaterhouseCoopers LLP
Boston, Massachusetts
February 10, 2023
We have served as the auditor of one or more investment companies in the Fidelity group of funds since 1932.
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Jonathan Chiel, each of the Trustees oversees 318 funds. Mr. Chiel oversees 186 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 fund 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.
The 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 the 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 fund, is provided below.
Board Structure and Oversight Function. Robert A. Lawrence is an interested person and currently serves as Chair. The Trustees have determined that an interested Chair is appropriate and benefits shareholders because an interested Chair has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chair, 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 Chair 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. David M. Thomas serves as Lead Independent Trustee 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 fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and other equity funds. The asset allocation funds may invest in Fidelity ® funds overseen by the fund's Board. 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, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's 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 fund's 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 fund are carried out by or through FMR, its affiliates, and other service providers, the fund's 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 fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's 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.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Jonathan Chiel (1957)
Year of Election or Appointment: 2016
Trustee
Mr. Chiel also serves as Trustee of other Fidelity ® funds. Mr. Chiel is Executive Vice President and General Counsel for FMR LLC (diversified financial services company, 2012-present). Previously, Mr. Chiel served as general counsel (2004-2012) and senior vice president and deputy general counsel (2000-2004) for John Hancock Financial Services; a partner with Choate, Hall & Stewart (1996-2000) (law firm); and an Assistant United States Attorney for the United States Attorney's Office of the District of Massachusetts (1986-95), including Chief of the Criminal Division (1993-1995). Mr. Chiel is a director on the boards of the Boston Bar Foundation and the Maimonides School.
Bettina Doulton (1964)
Year of Election or Appointment: 2021
Trustee
Ms. Doulton also serves as Trustee of other Fidelity ® funds. Prior to her retirement, Ms. Doulton served in a variety of positions at Fidelity Investments, including as a managing director of research (2006-2007), portfolio manager to certain Fidelity ® funds (1993-2005), equity analyst and portfolio assistant (1990-1993), and research assistant (1987-1990). Ms. Doulton currently owns and operates Phi Builders + Architects and Cellardoor Winery. Previously, Ms. Doulton served as a member of the Board of Brown Capital Management, LLC (2014-2018).
Robert A. Lawrence (1952)
Year of Election or Appointment: 2020
Trustee
Chair of the Board of Trustees
Mr. Lawrence also serves as Trustee of other funds. Previously, Mr. Lawrence served as a Trustee and Member of the Advisory Board of certain funds. Prior to his retirement in 2008, Mr. Lawrence served as Vice President of certain Fidelity ® funds (2006-2008), Senior Vice President, Head of High Income Division of Fidelity Management & Research Company (investment adviser firm, 2006-2008), and President of Fidelity Strategic Investments (investment adviser firm, 2002-2005).
* 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 the 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+
Thomas P. Bostick (1956)
Year of Election or Appointment: 2021
Trustee
Lieutenant General Bostick also serves as Trustee of other Fidelity ® funds. Prior to his retirement, General Bostick (United States Army, Retired) held a variety of positions within the U.S. Army, including Commanding General and Chief of Engineers, U.S. Army Corps of Engineers (2012-2016) and Deputy Chief of Staff and Director of Human Resources, U.S. Army (2009-2012). General Bostick currently serves as a member of the Board and Finance and Governance Committees of CSX Corporation (transportation, 2020-present) and a member of the Board and Corporate Governance and Nominating Committee of Perma-Fix Environmental Services, Inc. (nuclear waste management, 2020-present). General Bostick serves as Chief Executive Officer of Bostick Global Strategies, LLC (consulting, 2016-present) and as a member of the Board of HireVue, Inc. (video interview and assessment, 2020-present). Previously, General Bostick served as a Member of the Advisory Board of certain Fidelity® funds (2021), President, Intrexon Bioengineering (2018-2020) and Chief Operating Officer (2017-2020) and Senior Vice President of the Environment Sector (2016-2017) of Intrexon Corporation (biopharmaceutical company).
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity ® funds. Prior to his retirement in May 2003, Mr. Dirks served as Chief Operating Officer and as a member of the Board of The Depository Trust & Clearing Corporation (financial markets infrastructure), President, Chief Operating Officer and a member of the Board of The Depository Trust Company (DTC), President and a member of the Board of the National Securities Clearing Corporation (NSCC), Chief Executive Officer and a member of the Board of the Government Securities Clearing Corporation and Chief Executive Officer and a member of the Board of the Mortgage-Backed Securities Clearing Corporation. Mr. Dirks currently serves as a member of the Finance Committee (2016-present) and Board (2017-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as Trustee of other Fidelity ® funds. Mr. Donahue serves as President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006) and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue currently serves as a member (2007-present) and Co-Chairman (2016-present) of the Board of United Way of New York and a member of the Board of The Leadership Academy (previously NYC Leadership Academy) (2012-present). Mr. Donahue previously served as a member of the Advisory Board of certain Fidelity® funds (2015-2018).
Vicki L. Fuller (1957)
Year of Election or Appointment: 2020
Trustee
Ms. Fuller also serves as Trustee of other Fidelity ® funds. Previously, Ms. Fuller served as a member of the Advisory Board of certain Fidelity ® funds (2018-2020), Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006). Ms. Fuller currently serves as a member of the Board, Audit Committee and Nominating and Governance Committee of two Blackstone business development companies (2020-present), as a member of the Board of Treliant, LLC (consulting, 2019-present), as a member of the Advisory Board of Ariel Alternatives, LLC (private equity, 2021-present) and as a member of the Board and Chair of the Audit Committee of Gusto, Inc. (software, 2021-present). In addition, Ms. Fuller currently serves as a member of the Board of Roosevelt University (2019-present) and as a member of the Executive Board of New York University's Stern School of Business. Ms. Fuller previously served as a member of the Board, Audit Committee and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-2021).
Patricia L. Kampling (1959)
Year of Election or Appointment: 2020
Trustee
Ms. Kampling also serves as Trustee of other Fidelity ® funds. Prior to her retirement, Ms. Kampling served as Chairman of the Board and Chief Executive Officer (2012-2019), President and Chief Operating Officer (2011-2012) and Executive Vice President and Chief Financial Officer (2010-2011) of Alliant Energy Corporation. Ms. Kampling currently serves as a member of the Board, Finance Committee and Governance, Compensation and Nominating Committee of Xcel Energy Inc. (utilities company, 2020-present) and as a member of the Board, Audit, Finance and Risk Committee and Safety, Environmental, Technology and Operations Committee and Chair of the Executive Development and Compensation Committee of American Water Works Company, Inc. (utilities company, 2019-present). In addition, Ms. Kampling currently serves as a member of the Board of the Nature Conservancy, Wisconsin Chapter (2019-present). Previously, Ms. Kampling served as a Member of the Advisory Board of certain Fidelity® funds (2020), a member of the Board, Compensation Committee and Executive Committee and Chair of the Audit Committee of Briggs & Stratton Corporation (manufacturing, 2011-2021), a member of the Board of Interstate Power and Light Company (2012-2019) and Wisconsin Power and Light Company (2012-2019) (each a subsidiary of Alliant Energy Corporation) and as a member of the Board and Workforce Development Committee of the Business Roundtable (2018-2019).
Thomas A. Kennedy (1955)
Year of Election or Appointment: 2021
Trustee
Mr. Kennedy also serves as Trustee of other Fidelity ® funds. Previously, Mr. Kennedy served as a Member of the Advisory Board of certain Fidelity ® funds (2020) and held a variety of positions at Raytheon Company (aerospace and defense, 1983-2020), including Chairman and Chief Executive Officer (2014-2020) and Executive Vice President and Chief Operating Officer (2013-2014). Mr. Kennedy currently serves as Executive Chairman of the Board of Directors of Raytheon Technologies Corporation (aerospace and defense, 2020-present). He is also a member of the Rutgers School of Engineering Industry Advisory Board (2011-present) and a member of the UCLA Engineering Dean's Executive Board (2016-present).
Oscar Munoz (1959)
Year of Election or Appointment: 2021
Trustee
Mr. Munoz also serves as Trustee of other Fidelity ® funds. Prior to his retirement, Mr. Munoz served as Executive Chairman (2020-2021), Chief Executive Officer (2015-2020), President (2015-2016) and a member of the Board (2010-2021) of United Airlines Holdings, Inc. Mr. Munoz currently serves as a member of the Board of CBRE Group, Inc. (commercial real estate, 2020-present), a member of the Board of Univision Communications, Inc. (Hispanic media, 2020-present) and a member of the Advisory Board of Salesforce.com, Inc. (cloud-based software, 2020-present). Previously, Mr. Munoz served as a Member of the Advisory Board of certain Fidelity ® funds (2021).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Lead Independent Trustee
Mr. Thomas also serves as Trustee of other Fidelity ® funds. Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions). Mr. Thomas currently serves as a member of the Board of Fortune Brands Home and Security (home and security products, 2004-present) and as Director (2013-present) and Non-Executive Chairman of the Board (2022-present) of Interpublic Group of Companies, Inc. (marketing communication).
Susan Tomasky (1953)
Year of Election or Appointment: 2020
Trustee
Ms. Tomasky also serves as Trustee of other Fidelity ® funds. Prior to her retirement, Ms. Tomasky served in various executive officer positions at American Electric Power Company, Inc. (1998-2011), including most recently as President of AEP Transmission (2007-2011). Ms. Tomasky currently serves as a member of the Board and Sustainability Committee and as Chair of the Audit Committee of Marathon Petroleum Corporation (2018-present) and as a member of the Board, Executive Committee, Corporate Governance Committee and Organization and Compensation Committee and as Chair of the Audit Committee of Public Service Enterprise Group, Inc. (utilities company, 2012-present) and as a member of the Board of its subsidiary company, Public Service Electric and Gas Co. (2021-present). In addition, Ms. Tomasky currently serves as a member (2009-present) and President (2020-present) of the Board of the Royal Shakespeare Company - America (2009-present), as a member of the Board of the Columbus Association for the Performing Arts (2011-present) and as a member of the Board and Kenyon in the World Committee of Kenyon College (2016-present). Previously, Ms. Tomasky served as a Member of the Advisory Board of certain Fidelity ® funds (2020), as a member of the Board of the Columbus Regional Airport Authority (2007-2020), as a member of the Board (2011-2018) and Lead Independent Director (2015-2018) of Andeavor Corporation (previously Tesoro Corporation) (independent oil refiner and marketer) and as a member of the Board of Summit Midstream Partners LP (energy, 2012-2018).
Michael E. Wiley (1950)
Year of Election or Appointment: 2020
Trustee
Mr. Wiley also serves as Trustee of other Fidelity ® funds. Previously, Mr. Wiley served as a member of the Advisory Board of certain Fidelity ® funds (2018-2020), Chairman, President and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004). Mr. Wiley also previously served as a member of the Board of Andeavor Corporation (independent oil refiner and marketer, 2005-2018), a member of the Board of Andeavor Logistics LP (natural resources logistics, 2015-2018) and a member of the Board of High Point Resources (exploration and production, 2005-2020).
+ 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 the fund.
Advisory Board Members and Officers:
Correspondence intended for a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as a Member of the Advisory Board of other Fidelity ® funds. Mr. Lynch is Vice Chairman and a Director of Fidelity Management & Research Company LLC (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served as Vice Chairman and a Director of FMR Co., Inc. (investment adviser firm) and on the Special Olympics International Board of Directors (1997-2006).
Craig S. Brown (1977)
Year of Election or Appointment: 2022
Deputy Treasurer
Mr. Brown also serves as an officer of other funds. Mr. Brown serves as Assistant Treasurer of FIMM, LLC (2021-present) and is an employee of Fidelity Investments (2013-present). Previously, Mr. Brown served as Assistant Treasurer of certain Fidelity ® funds (2019-2022).
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).
William C. Coffey (1969)
Year of Election or Appointment: 2019
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Secretary and CLO of certain funds (2018-2019); CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-2019); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-2019); CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-2019); and Assistant Secretary of certain funds (2009-2018).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2018
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Co-Head of Equity (2018-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Executive Vice President of Fidelity SelectCo, LLC (2019), Head of Global Equity Research (2016-2018), Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as an officer of other funds. Mr. Davis serves as Assistant Treasurer of FIMM, LLC (2021-present), FMR Capital, Inc. (2017-present), FD Funds GP LLC (2021-present), FD Funds Holding LLC (2021-present), and FD Funds Management LLC (2021-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
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato serves as Assistant Treasurer of FIMM, LLC (2021-present) and 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)
Year of Election or Appointment: 2020
Assistant Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FIMM, LLC (2021-present) and 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).
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as Vice President of other funds. Ms. Holding serves as Co-Head of Equity (2018-present) and is an employee of Fidelity Investments (2013-present). Previously, Ms. Holding served as Executive Vice President of Fidelity SelectCo, LLC (2019) and as Chief Investment Officer of Fidelity Institutional Asset Management (2013-2018).
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); CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2019-present); Secretary of FD Funds GP LLC (2021-present), FD Funds Holding LLC (2021-present), FD Funds Management LLC (2021-present), and Fidelity Diversifying Solutions LLC (investment adviser firm, 2022-present); and Assistant Secretary of FIMM, LLC (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)
Year of Election or Appointment: 2020
Deputy Treasurer
Mr. Maher also serves as an officer of other funds. Mr. Maher serves as Assistant Treasurer of FIMM, LLC (2021-present) and 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).
Jason P. Pogorelec (1975)
Year of Election or Appointment: 2020
Chief Compliance Officer
Mr. Pogorelec also serves as Chief Compliance Officer of other funds. Mr. Pogorelec is a senior Vice President of Asset Management Compliance for Fidelity Investments and is an employee of Fidelity Investments (2006-present). Previously, Mr. Pogorelec served as Vice President, Associate General Counsel for Fidelity Investments (2010-2020) and Assistant Secretary of certain Fidelity ® funds (2015-2020).
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)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FIMM, LLC (2021-present) and 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.
Jim Wegmann (1979)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Wegmann also serves as an officer of other funds. Mr. Wegmann serves as Assistant Treasurer of FIMM, LLC (2021-present) and is an employee of Fidelity Investments (2011-present). Previously, Mr. Wegmann served as Assistant Treasurer of certain Fidelity ® funds (2019-2021).
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, 2022 to December 31, 2022). |
Actual Expenses
The 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 Purposes
The 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 comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| | | | | Annualized Expense Ratio- A | | Beginning Account Value July 1, 2022 | | Ending Account Value December 31, 2022 | | Expenses Paid During Period- C July 1, 2022 to December 31, 2022 |
| VIP Overseas Portfolio | | | | | | | | | | |
| Initial Class | | | | .77% | | | | | | |
| Actual | | | | | | $ 1,000 | | $ 1,052.60 | | $ 3.98 |
Hypothetical- B | | | | | | $ 1,000 | | $ 1,021.32 | | $ 3.92 |
| Service Class | | | | .87% | | | | | | |
| Actual | | | | | | $ 1,000 | | $ 1,051.90 | | $ 4.50 |
Hypothetical- B | | | | | | $ 1,000 | | $ 1,020.82 | | $ 4.43 |
| Service Class 2 | | | | 1.02% | | | | | | |
| Actual | | | | | | $ 1,000 | | $ 1,051.20 | | $ 5.27 |
Hypothetical- B | | | | | | $ 1,000 | | $ 1,020.06 | | $ 5.19 |
| Investor Class | | | | .84% | | | | | | |
| Actual | | | | | | $ 1,000 | | $ 1,052.50 | | $ 4.35 |
Hypothetical- B | | | | | | $ 1,000 | | $ 1,020.97 | | $ 4.28 |
| |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B 5% return per year before expenses
C Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/ 365 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
The dividend and capital gains distributions for the fund(s) are available on Fidelity.com or Institutional.Fidelity.com.
Initial Class designates 5%; Service Class designates 5%; Service Class 2 designates 6%; and Investor Class designates 5%; of the dividend distributed in December 2022 during the fiscal year as qualifying for the dividends-received deduction for corporate shareholders.
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 | Taxes |
| VIP Overseas Portfolio | | | |
| Initial Class | 12/14/2022 | $0.2995 | $0.0515 |
| Service Class | 12/14/2022 | $0.2765 | $0.0515 |
| Service Class 2 | 12/14/2022 | $0.2435 | $0.0515 |
| Investor Class | 12/14/2022 | $0.2815 | $0.0515 |
1.540205.125
VIPOVRS-ANN-0323
Fidelity® Variable Insurance Products:
High Income Portfolio
Annual Report
December 31, 2022
Contents
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NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Average 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 |
| | | | |
Periods ended December 31, 2022 | Past 1 year | Past 5 years | Past 10 years |
| Initial Class | -11.37% | 1.10% | 2.97% |
| Service Class | -11.56% | 1.00% | 2.86% |
| Service Class 2 | -11.67% | 0.86% | 2.71% |
| Investor Class | -11.46% | 1.09% | 2.94% |
| $10,000 Over 10 Years |
| |
Let's say hypothetically that $10,000 was invested in VIP High Income Portfolio - Initial Class, a class of the fund, on December 31, 2012. The chart shows how the value of your investment would have changed, and also shows how the ICE® BofA® US High Yield Constrained Index performed over the same period. |
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Market Recap:
High-yield bonds returned -11.21% in 2022, according to the ICE BofA ® US High Yield Constrained Index, as a multitude of risk factors challenged the global economy. It was the index's lowest calendar-year return since 2008 and first retreat since 2018. High inflation prompted the Federal Reserve to aggressively tighten monetary policy, and market interest rates eclipsed their highest level in a decade, stoking recession fears and sending stocks into bear market territory. Since March, the Fed hiked its benchmark rate seven times, by 4.25 percentage points - the fastest-ever pace of monetary tightening - while also shrinking its massive portfolio. Against this backdrop, the index posted its worst year-to-date result (-14.61%) in 14 years through September, a historically weak month for capital markets that stayed true to form, with volatility spiking due to growing certainty the Fed would persist in its effort to cool inflation, even at the expense of economic growth. Three of the index's worst monthly returns ever were recorded in 2022, as it shed 4% to 7% in April, June and September. Gains of a roughly similar proportion were made in July and October, amid optimism on inflation and policy easing. November (+2%) began with a rate hike of 0.75% and ended on a high note when the Fed signaled its intent to slow its pace of rate rises. For the full year, the retail (-17%), health care and media (-16% each) industries struggled most. Conversely, energy (-5%) showed relative strength, as did capital goods and transportation (-6% each).
Comments from Co-Managers Benjamin Harrison, Alexandre Karam, and Michael Weaver:
For the year, the fund's share classes returned about -12% to -11%, roughly in line with the -11.21% result of the benchmark ICE BofA US High Yield/US High Yield Constrained Blend Index. The fund's core investment in high-yield bonds returned -12.45% and detracted from performance versus the benchmark. By industry, market selection was the primary contributor, especially an overweighting in energy. Positioning in consumer goods and security picks in services also bolstered the fund's relative result. Lastly, the fund's position in cash was a notable contributor. Our out-of-benchmark stake in Mesquite Energy (+92%) was the fund's biggest individual relative contributor. This was among the largest holdings in the fund. Also lifting performance was our outsized stake in New Fortress Energy (+5%). New Fortress Energy was among our biggest holdings. Conversely, the primary detractor from performance versus the benchmark was security selection in media. Security selection in technology & electronics and leisure also hurt the fund's relative result. The fund's largest individual relative detractor was an overweighting in Rackspace Hosting (-48%). Also hampering performance was our outsized stake in Communications Sales & Leasing (Uniti Group), which returned -24%. It was one of the biggest holdings in the fund. Also hurting performance was our overweighting in Altice USA (-31%). By quality, security selection in unrated bonds added the most value versus the benchmark, while security choices among CCC-rated bonds hurt the most. Notable changes in positioning include reduced exposure to the telecommunications industry and a higher allocation to media.
Note to shareholders:
On January 3, 2022, Benjamin Harrison assumed co-management responsibilities for the fund.
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.
| Top Bond Issuers (% of Fund's net assets) |
(with maturities greater than one year) |
| CCO Holdings LLC/CCO Holdings Capital Corp. | 2.7 | |
| Mesquite Energy, Inc. | 2.2 | |
| New Fortress Energy, Inc. | 2.1 | |
| TransDigm, Inc. | 2.0 | |
| Tenet Healthcare Corp. | 2.0 | |
| Uniti Group LP / Uniti Group Finance, Inc. | 1.8 | |
| Tallgrass Energy Partners LP / Tallgrass Energy Finance Corp. | 1.7 | |
| Icahn Enterprises LP/Icahn Enterprises Finance Corp. | 1.7 | |
| Occidental Petroleum Corp. | 1.7 | |
| Community Health Systems, Inc. | 1.6 | |
| | 19.5 | |
| |
| Market Sectors (% of Fund's net assets) |
| |
| Energy | 15.0 | |
| Healthcare | 8.5 | |
| Telecommunications | 7.4 | |
| Services | 6.7 | |
| Technology | 6.6 | |
| |
Quality Diversification (% of Fund's net assets) |
|
| |
| We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes. |
Asset Allocation (% of Fund's net assets) |
|
Foreign investments - 16.9% |
|
Geographic Diversification (% of Fund's net assets) |
|
* Includes Short-Term investments and Net Other Assets (Liabilities). Percentages are based on country or territory of incorporation and are adjusted for the effect of derivatives, if applicable. |
| |
Showing Percentage of Net Assets
| Corporate Bonds - 84.7% |
| | | Principal Amount (a) | Value ($) |
| Convertible Bonds - 2.6% | | | |
| Broadcasting - 1.1% | | | |
| DISH Network Corp.: | | | |
| 2.375% 3/15/24 | | 4,009,000 | 3,612,109 |
| 3.375% 8/15/26 | | 7,190,000 | 4,504,535 |
| | | | 8,116,644 |
| Energy - 1.5% | | | |
| Mesquite Energy, Inc. 15% 7/15/23 (b)(c) | | 649,253 | 4,137,430 |
| Mesquite Energy, Inc. 15% 7/15/23 (b)(c) | | 1,120,884 | 7,142,945 |
| | | | 11,280,375 |
TOTAL CONVERTIBLE BONDS | | | 19,397,019 |
| Nonconvertible Bonds - 82.1% | | | |
| Aerospace - 3.1% | | | |
| ATI, Inc.: | | | |
| 4.875% 10/1/29 | | 250,000 | 220,933 |
| 5.875% 12/1/27 | | 1,770,000 | 1,692,625 |
| Bombardier, Inc. 7.875% 4/15/27 (d) | | 2,425,000 | 2,352,238 |
| BWX Technologies, Inc. 4.125% 6/30/28 (d) | | 2,565,000 | 2,305,294 |
| Kaiser Aluminum Corp.: | | | |
| 4.5% 6/1/31 (d) | | 485,000 | 389,819 |
| 4.625% 3/1/28 (d) | | 1,980,000 | 1,727,799 |
| TransDigm, Inc.: | | | |
| 4.625% 1/15/29 | | 855,000 | 751,776 |
| 5.5% 11/15/27 | | 9,310,000 | 8,658,300 |
| 6.25% 3/15/26 (d) | | 3,050,000 | 3,007,880 |
| 7.5% 3/15/27 | | 425,000 | 420,498 |
| 8% 12/15/25 (d) | | 1,425,000 | 1,446,076 |
| | | | 22,973,238 |
| Air Transportation - 0.1% | | | |
| American Airlines, Inc. / AAdvantage Loyalty IP Ltd. 5.5% 4/20/26 (d) | | 740,000 | 711,618 |
| Automotive - 0.4% | | | |
| Ford Motor Co. 6.1% 8/19/32 | | 2,190,000 | 2,026,022 |
| Ford Motor Credit Co. LLC 3.625% 6/17/31 | | 980,000 | 770,561 |
| | | | 2,796,583 |
| Automotive & Auto Parts - 0.6% | | | |
| Ford Motor Credit Co. LLC: | | | |
| 2.9% 2/10/29 | | 2,030,000 | 1,621,483 |
| 3.815% 11/2/27 | | 925,000 | 812,973 |
| 4% 11/13/30 | | 350,000 | 287,294 |
| 4.125% 8/17/27 | | 790,000 | 707,050 |
| 4.95% 5/28/27 | | 1,410,000 | 1,315,389 |
| | | | 4,744,189 |
| Banks & Thrifts - 0.1% | | | |
| Jane Street Group LLC/JSG Finance, Inc. 4.5% 11/15/29 (d) | | 560,000 | 481,600 |
| Broadcasting - 1.5% | | | |
| Diamond Sports Group LLC/Diamond Sports Finance Co. 5.375% 8/15/26 (d) | | 5,215,000 | 612,763 |
| DISH Network Corp. 11.75% 11/15/27 (d) | | 1,770,000 | 1,822,923 |
| Sinclair Television Group, Inc. 5.5% 3/1/30 (d) | | 990,000 | 692,238 |
| Sirius XM Radio, Inc.: | | | |
| 4% 7/15/28 (d) | | 2,920,000 | 2,541,276 |
| 4.125% 7/1/30 (d) | | 2,345,000 | 1,935,117 |
| TEGNA, Inc.: | | | |
| 4.625% 3/15/28 | | 1,100,000 | 1,044,670 |
| 5% 9/15/29 | | 425,000 | 403,240 |
| Univision Communications, Inc.: | | | |
| 4.5% 5/1/29 (d) | | 1,265,000 | 1,057,869 |
| 6.625% 6/1/27 (d) | | 890,000 | 858,681 |
| | | | 10,968,777 |
| Building Materials - 0.4% | | | |
| Advanced Drain Systems, Inc. 5% 9/30/27 (d) | | 1,040,000 | 969,800 |
| Builders FirstSource, Inc. 4.25% 2/1/32 (d) | | 1,270,000 | 1,029,624 |
| SRS Distribution, Inc.: | | | |
| 4.625% 7/1/28 (d) | | 780,000 | 691,447 |
| 6% 12/1/29 (d) | | 715,000 | 569,035 |
| | | | 3,259,906 |
| Cable/Satellite TV - 5.3% | | | |
| CCO Holdings LLC/CCO Holdings Capital Corp.: | | | |
| 4.25% 2/1/31 (d) | | 2,925,000 | 2,346,186 |
| 4.25% 1/15/34 (d) | | 1,370,000 | 1,011,122 |
| 4.5% 8/15/30 (d) | | 1,750,000 | 1,445,771 |
| 4.5% 5/1/32 | | 2,885,000 | 2,296,460 |
| 4.5% 6/1/33 (d) | | 4,645,000 | 3,563,783 |
| 4.75% 2/1/32 (d) | | 1,975,000 | 1,601,133 |
| 5% 2/1/28 (d) | | 905,000 | 821,731 |
| 5.125% 5/1/27 (d) | | 4,000,000 | 3,728,280 |
| 5.375% 6/1/29 (d) | | 4,040,000 | 3,653,251 |
| CSC Holdings LLC: | | | |
| 3.375% 2/15/31 (d) | | 2,500,000 | 1,630,338 |
| 4.125% 12/1/30 (d) | | 795,000 | 561,135 |
| 4.5% 11/15/31 (d) | | 345,000 | 239,366 |
| 4.625% 12/1/30 (d) | | 4,050,000 | 2,238,168 |
| 5.25% 6/1/24 | | 1,630,000 | 1,517,554 |
| 5.375% 2/1/28 (d) | | 2,720,000 | 2,193,000 |
| 5.75% 1/15/30 (d) | | 1,940,000 | 1,094,141 |
| 7.5% 4/1/28 (d) | | 1,270,000 | 863,600 |
| DISH DBS Corp. 5.75% 12/1/28 (d) | | 1,760,000 | 1,404,700 |
| Dolya Holdco 18 DAC 5% 7/15/28 (d) | | 950,000 | 830,903 |
| Radiate Holdco LLC/Radiate Financial Service Ltd.: | | | |
| 4.5% 9/15/26 (d) | | 815,000 | 598,781 |
| 6.5% 9/15/28 (d) | | 4,380,000 | 1,835,286 |
| Telenet Finance Luxembourg Notes SARL 5.5% 3/1/28 (d) | | 3,000,000 | 2,700,000 |
| Ziggo Bond Co. BV 5.125% 2/28/30 (d) | | 185,000 | 149,388 |
| Ziggo BV 4.875% 1/15/30 (d) | | 990,000 | 828,402 |
| | | | 39,152,479 |
| Capital Goods - 0.9% | | | |
| Mueller Water Products, Inc. 4% 6/15/29 (d) | | 1,110,000 | 975,413 |
| Vertical Holdco GmbH 7.625% 7/15/28 (d) | | 1,315,000 | 1,073,715 |
| Vertical U.S. Newco, Inc. 5.25% 7/15/27 (d) | | 4,830,000 | 4,286,818 |
| | | | 6,335,946 |
| Chemicals - 3.9% | | | |
| CVR Partners LP 6.125% 6/15/28 (d) | | 1,179,000 | 1,057,696 |
| Element Solutions, Inc. 3.875% 9/1/28 (d) | | 1,465,000 | 1,245,250 |
| Kronos Acquisition Holdings, Inc. / KIK Custom Products, Inc.: | | | |
| 5% 12/31/26 (d) | | 1,420,000 | 1,228,300 |
| 7% 12/31/27 (d) | | 260,000 | 213,850 |
| LSB Industries, Inc. 6.25% 10/15/28 (d) | | 2,345,000 | 2,145,558 |
| Methanex Corp.: | | | |
| 5.125% 10/15/27 | | 2,855,000 | 2,648,013 |
| 5.65% 12/1/44 | | 1,612,000 | 1,221,090 |
| NOVA Chemicals Corp.: | | | |
| 4.25% 5/15/29 (d) | | 1,135,000 | 927,863 |
| 4.875% 6/1/24 (d) | | 2,000,000 | 1,934,992 |
| 5% 5/1/25 (d) | | 530,000 | 498,990 |
| 5.25% 6/1/27 (d) | | 3,100,000 | 2,784,491 |
| Nufarm Australia Ltd. 5% 1/27/30 (d) | | 1,480,000 | 1,276,500 |
| Olympus Water U.S. Holding Corp.: | | | |
| 4.25% 10/1/28 (d) | | 1,180,000 | 957,987 |
| 6.25% 10/1/29 (d) | | 1,250,000 | 949,008 |
| SCIL IV LLC / SCIL U.S.A. Holdings LLC 5.375% 11/1/26 (d) | | 905,000 | 766,988 |
| The Chemours Co. LLC: | | | |
| 4.625% 11/15/29 (d) | | 1,075,000 | 878,813 |
| 5.375% 5/15/27 | | 2,147,000 | 1,982,626 |
| 5.75% 11/15/28 (d) | | 4,510,000 | 4,051,017 |
| W.R. Grace Holding LLC 5.625% 8/15/29 (d) | | 2,490,000 | 2,010,102 |
| | | | 28,779,134 |
| Consumer Products - 0.5% | | | |
| Mattel, Inc.: | | | |
| 3.375% 4/1/26 (d) | | 1,865,000 | 1,714,690 |
| 3.75% 4/1/29 (d) | | 2,010,000 | 1,765,433 |
| | | | 3,480,123 |
| Containers - 0.7% | | | |
| Graphic Packaging International, Inc. 3.75% 2/1/30 (d) | | 500,000 | 425,337 |
| Sealed Air Corp. 5% 4/15/29 (d) | | 1,265,000 | 1,189,100 |
| Trivium Packaging Finance BV: | | | |
| 5.5% 8/15/26 (d) | | 2,845,000 | 2,607,408 |
| 8.5% 8/15/27 (d) | | 785,000 | 720,256 |
| | | | 4,942,101 |
| Diversified Financial Services - 3.5% | | | |
| Coinbase Global, Inc.: | | | |
| 3.375% 10/1/28 (d) | | 2,595,000 | 1,371,717 |
| 3.625% 10/1/31 (d) | | 2,875,000 | 1,384,634 |
| Hightower Holding LLC 6.75% 4/15/29 (d) | | 1,250,000 | 1,043,886 |
| Icahn Enterprises LP/Icahn Enterprises Finance Corp.: | | | |
| 4.375% 2/1/29 | | 2,755,000 | 2,329,766 |
| 5.25% 5/15/27 | | 7,205,000 | 6,601,581 |
| 6.25% 5/15/26 | | 4,405,000 | 4,232,747 |
| Ladder Capital Finance Holdings LLLP/Ladder Capital Finance Corp. 4.75% 6/15/29 (d) | | 820,000 | 662,035 |
| MSCI, Inc.: | | | |
| 3.25% 8/15/33 (d) | | 705,000 | 544,442 |
| 3.625% 9/1/30 (d) | | 1,405,000 | 1,167,906 |
| OneMain Finance Corp.: | | | |
| 3.5% 1/15/27 | | 1,905,000 | 1,577,283 |
| 3.875% 9/15/28 | | 3,375,000 | 2,683,868 |
| 7.125% 3/15/26 | | 2,750,000 | 2,614,920 |
| | | | 26,214,785 |
| Diversified Media - 0.5% | | | |
| Advantage Sales & Marketing, Inc. 6.5% 11/15/28 (d) | | 4,725,000 | 3,602,104 |
| Terrier Media Buyer, Inc. 8.875% 12/15/27 (d) | | 570,000 | 429,039 |
| | | | 4,031,143 |
| Energy - 12.1% | | | |
| Altus Midstream LP 5.875% 6/15/30 (d) | | 890,000 | 834,627 |
| Apache Corp. 4.25% 1/15/30 | | 445,000 | 393,784 |
| Atlantica Sustainable Infrastructure PLC 4.125% 6/15/28 (d) | | 1,480,000 | 1,311,997 |
| Cheniere Energy Partners LP 3.25% 1/31/32 | | 1,410,000 | 1,120,537 |
| Citgo Petroleum Corp. 6.375% 6/15/26 (d) | | 1,535,000 | 1,479,549 |
| CNX Resources Corp.: | | | |
| 7.25% 3/14/27 (d) | | 101,000 | 100,243 |
| 7.375% 1/15/31 (d) | | 385,000 | 369,019 |
| Colgate Energy Partners III LLC: | | | |
| 5.875% 7/1/29 (d) | | 1,800,000 | 1,543,500 |
| 7.75% 2/15/26 (d) | | 540,000 | 523,821 |
| Comstock Resources, Inc.: | | | |
| 5.875% 1/15/30 (d) | | 2,015,000 | 1,732,296 |
| 6.75% 3/1/29 (d) | | 2,390,000 | 2,156,975 |
| Crestwood Midstream Partners LP/Crestwood Midstream Finance Corp.: | | | |
| 5.625% 5/1/27 (d) | | 5,198,000 | 4,834,140 |
| 5.75% 4/1/25 | | 1,767,000 | 1,718,938 |
| 6% 2/1/29 (d) | | 2,560,000 | 2,348,827 |
| CrownRock LP/CrownRock Finance, Inc.: | | | |
| 5% 5/1/29 (d) | | 575,000 | 516,647 |
| 5.625% 10/15/25 (d) | | 130,000 | 125,450 |
| CVR Energy, Inc.: | | | |
| 5.25% 2/15/25 (d) | | 2,321,000 | 2,135,320 |
| 5.75% 2/15/28 (d) | | 1,464,000 | 1,274,412 |
| Delek Logistics Partners LP 7.125% 6/1/28 (d) | | 2,780,000 | 2,507,560 |
| DT Midstream, Inc. 4.125% 6/15/29 (d) | | 935,000 | 803,268 |
| Endeavor Energy Resources LP/EER Finance, Inc. 5.75% 1/30/28 (d) | | 285,000 | 272,893 |
| EnLink Midstream LLC 5.625% 1/15/28 (d) | | 395,000 | 376,237 |
| EQM Midstream Partners LP: | | | |
| 6% 7/1/25 (d) | | 85,000 | 82,025 |
| 6.5% 7/1/27 (d) | | 1,870,000 | 1,787,253 |
| 7.5% 6/1/27 (d) | | 410,000 | 401,497 |
| 7.5% 6/1/30 (d) | | 410,000 | 395,043 |
| Global Partners LP/GLP Finance Corp. 6.875% 1/15/29 | | 1,285,000 | 1,177,150 |
| Harvest Midstream I LP 7.5% 9/1/28 (d) | | 645,000 | 615,614 |
| Hess Midstream Partners LP: | | | |
| 4.25% 2/15/30 (d) | | 635,000 | 542,875 |
| 5.125% 6/15/28 (d) | | 2,465,000 | 2,279,377 |
| Hilcorp Energy I LP/Hilcorp Finance Co.: | | | |
| 5.75% 2/1/29 (d) | | 445,000 | 396,080 |
| 6.25% 11/1/28 (d) | | 445,000 | 402,725 |
| Holly Energy Partners LP/Holly Energy Finance Corp. 5% 2/1/28 (d) | | 1,350,000 | 1,229,184 |
| Mesquite Energy, Inc. 7.25% 2/15/23 (c)(d)(e) | | 5,722,000 | 1 |
| New Fortress Energy, Inc.: | | | |
| 6.5% 9/30/26 (d) | | 7,755,000 | 7,202,069 |
| 6.75% 9/15/25 (d) | | 8,585,000 | 8,119,693 |
| NGL Energy Operating LLC/NGL Energy Finance Corp. 7.5% 2/1/26 (d) | | 1,030,000 | 917,103 |
| Occidental Petroleum Corp.: | | | |
| 5.5% 12/1/25 | | 1,100,000 | 1,096,271 |
| 5.875% 9/1/25 | | 2,745,000 | 2,734,706 |
| 6.125% 1/1/31 | | 790,000 | 797,260 |
| 6.625% 9/1/30 | | 2,950,000 | 3,048,471 |
| 7.5% 5/1/31 | | 1,440,000 | 1,538,597 |
| 7.875% 9/15/31 | | 375,000 | 414,000 |
| 8.5% 7/15/27 | | 1,100,000 | 1,184,486 |
| 8.875% 7/15/30 | | 1,270,000 | 1,433,836 |
| Rockies Express Pipeline LLC: | | | |
| 4.8% 5/15/30 (d) | | 250,000 | 219,989 |
| 4.95% 7/15/29 (d) | | 1,010,000 | 906,324 |
| 6.875% 4/15/40 (d) | | 385,000 | 323,241 |
| SM Energy Co. 5.625% 6/1/25 | | 1,165,000 | 1,118,389 |
| Southwestern Energy Co. 4.75% 2/1/32 | | 925,000 | 790,496 |
| Sunoco LP/Sunoco Finance Corp.: | | | |
| 4.5% 5/15/29 | | 620,000 | 542,314 |
| 5.875% 3/15/28 | | 500,000 | 473,521 |
| Superior Plus LP / Superior General Partner, Inc. 4.5% 3/15/29 (d) | | 670,000 | 572,850 |
| Tallgrass Energy Partners LP / Tallgrass Energy Finance Corp.: | | | |
| 5.5% 1/15/28 (d) | | 2,252,000 | 1,997,164 |
| 6% 3/1/27 (d) | | 4,365,000 | 4,075,243 |
| 6% 12/31/30 (d) | | 5,430,000 | 4,695,484 |
| 6% 9/1/31 (d) | | 2,100,000 | 1,805,545 |
| 7.5% 10/1/25 (d) | | 770,000 | 776,930 |
| Transocean Guardian Ltd. 5.875% 1/15/24 (d) | | 645,925 | 630,749 |
| Transocean Phoenix 2 Ltd. 7.75% 10/15/24 (d) | | 120,000 | 118,800 |
| Transocean Pontus Ltd. 6.125% 8/1/25 (d) | | 333,200 | 326,457 |
| Transocean Poseidon Ltd. 6.875% 2/1/27 (d) | | 520,625 | 506,631 |
| Transocean Proteus Ltd. 6.25% 12/1/24 (d) | | 132,000 | 130,030 |
| Transocean Sentry Ltd. 5.375% 5/15/23 (d) | | 724,378 | 715,323 |
| Venture Global Calcasieu Pass LLC: | | | |
| 3.875% 8/15/29 (d) | | 2,305,000 | 2,016,875 |
| 4.125% 8/15/31 (d) | | 1,205,000 | 1,026,654 |
| | | | 90,044,365 |
| Environmental - 1.2% | | | |
| Covanta Holding Corp. 4.875% 12/1/29 (d) | | 985,000 | 806,981 |
| Darling Ingredients, Inc. 6% 6/15/30 (d) | | 510,000 | 498,525 |
| Madison IAQ LLC: | | | |
| 4.125% 6/30/28 (d) | | 2,380,000 | 1,990,227 |
| 5.875% 6/30/29 (d) | | 5,735,000 | 3,930,762 |
| Stericycle, Inc.: | | | |
| 3.875% 1/15/29 (d) | | 1,625,000 | 1,417,813 |
| 5.375% 7/15/24 (d) | | 325,000 | 320,154 |
| | | | 8,964,462 |
| Food & Drug Retail - 1.0% | | | |
| Albertsons Companies LLC/Safeway, Inc./New Albertson's, Inc./Albertson's LLC: | | | |
| 3.5% 3/15/29 (d) | | 4,942,000 | 4,146,289 |
| 4.875% 2/15/30 (d) | | 1,430,000 | 1,276,218 |
| Emergent BioSolutions, Inc. 3.875% 8/15/28 (d) | | 2,715,000 | 1,349,545 |
| Murphy Oil U.S.A., Inc. 3.75% 2/15/31 (d) | | 395,000 | 325,290 |
| | | | 7,097,342 |
| Food/Beverage/Tobacco - 2.0% | | | |
| C&S Group Enterprises LLC 5% 12/15/28 (d) | | 3,700,000 | 2,793,500 |
| Lamb Weston Holdings, Inc. 4.125% 1/31/30 (d) | | 2,730,000 | 2,411,136 |
| Performance Food Group, Inc. 5.5% 10/15/27 (d) | | 125,000 | 117,896 |
| Post Holdings, Inc. 4.625% 4/15/30 (d) | | 1,125,000 | 970,583 |
| Primo Water Holdings, Inc. 4.375% 4/30/29 (d) | | 2,945,000 | 2,543,277 |
| TreeHouse Foods, Inc. 4% 9/1/28 | | 480,000 | 408,000 |
| Triton Water Holdings, Inc. 6.25% 4/1/29 (d) | | 4,605,000 | 3,693,855 |
| U.S. Foods, Inc.: | | | |
| 4.625% 6/1/30 (d) | | 475,000 | 418,292 |
| 4.75% 2/15/29 (d) | | 1,285,000 | 1,140,977 |
| | | | 14,497,516 |
| Gaming - 1.4% | | | |
| Affinity Gaming LLC 6.875% 12/15/27 (d) | | 2,425,000 | 2,056,010 |
| Caesars Entertainment, Inc. 8.125% 7/1/27 (d) | | 2,810,000 | 2,760,966 |
| Fertitta Entertainment LLC / Fertitta Entertainment Finance Co., Inc. 6.75% 1/15/30 (d) | | 2,555,000 | 2,060,863 |
| Golden Entertainment, Inc. 7.625% 4/15/26 (d) | | 945,000 | 931,407 |
| Jacobs Entertainment, Inc. 6.75% 2/15/29 (d) | | 555,000 | 500,960 |
| Station Casinos LLC 4.5% 2/15/28 (d) | | 750,000 | 652,036 |
| Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp. 5.25% 5/15/27 (d) | | 1,935,000 | 1,746,281 |
| | | | 10,708,523 |
| Healthcare - 8.3% | | | |
| 1375209 BC Ltd. 9% 1/30/28 (d) | | 755,000 | 735,181 |
| 180 Medical, Inc. 3.875% 10/15/29 (d) | | 1,305,000 | 1,121,909 |
| AMN Healthcare 4% 4/15/29 (d) | | 1,880,000 | 1,608,791 |
| Avantor Funding, Inc.: | | | |
| 3.875% 11/1/29 (d) | | 1,930,000 | 1,620,718 |
| 4.625% 7/15/28 (d) | | 998,000 | 906,823 |
| Bausch Health Companies, Inc.: | | | |
| 11% 9/30/28 (d) | | 1,340,000 | 1,044,992 |
| 14% 10/15/30 (d) | | 266,000 | 157,910 |
| Cano Health, Inc. 6.25% 10/1/28 (d) | | 1,100,000 | 665,500 |
| Catalent Pharma Solutions 3.5% 4/1/30 (d) | | 2,470,000 | 1,950,287 |
| Charles River Laboratories International, Inc.: | | | |
| 3.75% 3/15/29 (d) | | 660,000 | 583,704 |
| 4.25% 5/1/28 (d) | | 290,000 | 267,081 |
| Community Health Systems, Inc.: | | | |
| 4.75% 2/15/31 (d) | | 2,405,000 | 1,746,078 |
| 5.25% 5/15/30 (d) | | 4,605,000 | 3,472,341 |
| 5.625% 3/15/27 (d) | | 3,150,000 | 2,700,999 |
| 6% 1/15/29 (d) | | 1,430,000 | 1,196,166 |
| 6.125% 4/1/30 (d) | | 1,680,000 | 831,899 |
| 6.875% 4/15/29 (d) | | 2,095,000 | 1,076,752 |
| 8% 3/15/26 (d) | | 745,000 | 678,259 |
| CTR Partnership LP/CareTrust Capital Corp. 3.875% 6/30/28 (d) | | 1,200,000 | 1,014,032 |
| DaVita HealthCare Partners, Inc.: | | | |
| 3.75% 2/15/31 (d) | | 510,000 | 380,639 |
| 4.625% 6/1/30 (d) | | 4,695,000 | 3,776,783 |
| Embecta Corp. 5% 2/15/30 (d) | | 620,000 | 524,675 |
| Grifols Escrow Issuer SA 4.75% 10/15/28 (d) | | 1,780,000 | 1,536,977 |
| HealthEquity, Inc. 4.5% 10/1/29 (d) | | 3,090,000 | 2,700,351 |
| Hologic, Inc.: | | | |
| 3.25% 2/15/29 (d) | | 2,030,000 | 1,743,154 |
| 4.625% 2/1/28 (d) | | 395,000 | 372,207 |
| Jazz Securities DAC 4.375% 1/15/29 (d) | | 2,625,000 | 2,339,269 |
| ModivCare Escrow Issuer, Inc. 5% 10/1/29 (d) | | 450,000 | 379,485 |
| Molina Healthcare, Inc. 3.875% 11/15/30 (d) | | 855,000 | 724,561 |
| Option Care Health, Inc. 4.375% 10/31/29 (d) | | 1,910,000 | 1,670,696 |
| Organon & Co. / Organon Foreign Debt Co-Issuer BV: | | | |
| 4.125% 4/30/28 (d) | | 4,265,000 | 3,776,231 |
| 5.125% 4/30/31 (d) | | 730,000 | 632,093 |
| Owens & Minor, Inc. 4.5% 3/31/29 (d) | | 585,000 | 466,421 |
| Pediatrix Medical Group, Inc. 5.375% 2/15/30 (d) | | 1,290,000 | 1,120,970 |
| RP Escrow Issuer LLC 5.25% 12/15/25 (d) | | 2,395,000 | 1,828,943 |
| Teleflex, Inc. 4.25% 6/1/28 (d) | | 535,000 | 488,380 |
| Tenet Healthcare Corp.: | | | |
| 4.25% 6/1/29 (d) | | 2,345,000 | 2,031,474 |
| 4.375% 1/15/30 (d) | | 2,160,000 | 1,869,620 |
| 4.625% 6/15/28 (d) | | 1,750,000 | 1,565,797 |
| 6.125% 10/1/28 (d) | | 6,535,000 | 5,850,916 |
| 6.125% 6/15/30 (d) | | 1,640,000 | 1,562,592 |
| 6.25% 2/1/27 (d) | | 1,195,000 | 1,147,809 |
| | | | 61,869,465 |
| Homebuilders/Real Estate - 4.0% | | | |
| Ashton Woods U.S.A. LLC/Ashton Woods Finance Co. 4.625% 8/1/29 (d) | | 565,000 | 452,413 |
| Howard Hughes Corp.: | | | |
| 4.125% 2/1/29 (d) | | 775,000 | 649,063 |
| 4.375% 2/1/31 (d) | | 775,000 | 627,028 |
| Kennedy-Wilson, Inc. 4.75% 2/1/30 | | 2,880,000 | 2,196,000 |
| MPT Operating Partnership LP/MPT Finance Corp.: | | | |
| 3.5% 3/15/31 | | 2,600,000 | 1,782,257 |
| 4.625% 8/1/29 | | 1,780,000 | 1,357,401 |
| 5% 10/15/27 | | 6,800,000 | 5,715,604 |
| Railworks Holdings LP 8.25% 11/15/28 (d) | | 1,660,000 | 1,535,500 |
| TopBuild Corp. 4.125% 2/15/32 (d) | | 2,135,000 | 1,734,922 |
| Uniti Group LP / Uniti Group Finance, Inc.: | | | |
| 4.75% 4/15/28 (d) | | 5,020,000 | 4,016,000 |
| 6.5% 2/15/29 (d) | | 14,955,000 | 9,907,665 |
| | | | 29,973,853 |
| Hotels - 0.6% | | | |
| Hilton Domestic Operating Co., Inc.: | | | |
| 3.625% 2/15/32 (d) | | 2,820,000 | 2,258,256 |
| 3.75% 5/1/29 (d) | | 295,000 | 255,175 |
| 4% 5/1/31 (d) | | 1,615,000 | 1,351,157 |
| Wyndham Hotels & Resorts, Inc. 4.375% 8/15/28 (d) | | 1,060,000 | 951,032 |
| | | | 4,815,620 |
| Insurance - 0.7% | | | |
| Alliant Holdings Intermediate LLC 4.25% 10/15/27 (d) | | 2,775,000 | 2,485,367 |
| AmWINS Group, Inc. 4.875% 6/30/29 (d) | | 2,535,000 | 2,150,052 |
| AssuredPartners, Inc. 5.625% 1/15/29 (d) | | 795,000 | 654,312 |
| | | | 5,289,731 |
| Leisure - 2.5% | | | |
| Carnival Corp.: | | | |
| 5.75% 3/1/27 (d) | | 3,850,000 | 2,749,054 |
| 6% 5/1/29 (d) | | 3,190,000 | 2,125,758 |
| 6.65% 1/15/28 | | 175,000 | 116,156 |
| 7.625% 3/1/26 (d) | | 4,445,000 | 3,523,084 |
| MajorDrive Holdings IV LLC 6.375% 6/1/29 (d) | | 825,000 | 615,608 |
| NCL Corp. Ltd.: | | | |
| 5.875% 3/15/26 (d) | | 525,000 | 412,372 |
| 7.75% 2/15/29 (d) | | 1,120,000 | 842,845 |
| NCL Finance Ltd. 6.125% 3/15/28 (d) | | 370,000 | 273,142 |
| Royal Caribbean Cruises Ltd.: | | | |
| 4.25% 7/1/26 (d) | | 2,390,000 | 1,931,951 |
| 5.375% 7/15/27 (d) | | 875,000 | 708,488 |
| 5.5% 8/31/26 (d) | | 2,375,000 | 1,997,969 |
| 5.5% 4/1/28 (d) | | 2,785,000 | 2,222,555 |
| Viking Ocean Cruises Ship VII Ltd. 5.625% 2/15/29 (d) | | 370,000 | 297,850 |
| Voc Escrow Ltd. 5% 2/15/28 (d) | | 850,000 | 731,085 |
| | | | 18,547,917 |
| Metals/Mining - 0.9% | | | |
| Eldorado Gold Corp. 6.25% 9/1/29 (d) | | 350,000 | 307,234 |
| ERO Copper Corp. 6.5% 2/15/30 (d) | | 2,755,000 | 2,219,497 |
| First Quantum Minerals Ltd. 6.875% 10/15/27 (d) | | 2,238,000 | 2,087,355 |
| HudBay Minerals, Inc. 4.5% 4/1/26 (d) | | 500,000 | 454,170 |
| Mineral Resources Ltd. 8.5% 5/1/30 (d) | | 790,000 | 800,689 |
| PMHC II, Inc. 9% 2/15/30 (d) | | 1,185,000 | 894,273 |
| | | | 6,763,218 |
| Paper - 0.7% | | | |
| Ardagh Metal Packaging Finance U.S.A. LLC/Ardagh Metal Packaging Finance PLC: | | | |
| 4% 9/1/29 (d) | | 680,000 | 538,934 |
| 6% 6/15/27 (d) | | 1,155,000 | 1,130,871 |
| Clydesdale Acquisition Holdings, Inc. 6.625% 4/15/29 (d) | | 455,000 | 432,591 |
| Enviva Partners LP / Enviva Partners Finance Corp. 6.5% 1/15/26 (d) | | 240,000 | 226,042 |
| Glatfelter Corp. 4.75% 11/15/29 (d) | | 810,000 | 487,053 |
| SPA Holdings 3 OY 4.875% 2/4/28 (d) | | 2,600,000 | 2,091,547 |
| | | | 4,907,038 |
| Publishing/Printing - 0.1% | | | |
| News Corp. 5.125% 2/15/32 (d) | | 940,000 | 855,400 |
| Railroad - 0.3% | | | |
| First Student Bidco, Inc./First Transit Parent, Inc. 4% 7/31/29 (d) | | 3,050,000 | 2,522,739 |
| Restaurants - 0.4% | | | |
| 1011778 BC Unlimited Liability Co./New Red Finance, Inc. 4% 10/15/30 (d) | | 1,425,000 | 1,153,979 |
| Garden SpinCo Corp. 8.625% 7/20/30 (d) | | 335,000 | 355,100 |
| Yum! Brands, Inc. 4.625% 1/31/32 | | 1,985,000 | 1,754,595 |
| | | | 3,263,674 |
| Services - 5.6% | | | |
| ADT Corp. 4.125% 8/1/29 (d) | | 895,000 | 761,158 |
| Adtalem Global Education, Inc. 5.5% 3/1/28 (d) | | 2,241,000 | 2,033,708 |
| APX Group, Inc. 6.75% 2/15/27 (d) | | 837,000 | 805,654 |
| ASGN, Inc. 4.625% 5/15/28 (d) | | 1,310,000 | 1,185,812 |
| Booz Allen Hamilton, Inc. 3.875% 9/1/28 (d) | | 2,713,000 | 2,403,617 |
| Brand Energy & Infrastructure Services, Inc. 8.5% 7/15/25 (d) | | 5,130,000 | 4,098,788 |
| CoreCivic, Inc.: | | | |
| 4.75% 10/15/27 | | 2,950,000 | 2,556,230 |
| 8.25% 4/15/26 | | 5,160,000 | 5,291,580 |
| Fair Isaac Corp. 4% 6/15/28 (d) | | 1,155,000 | 1,048,169 |
| Gartner, Inc.: | | | |
| 3.625% 6/15/29 (d) | | 575,000 | 505,264 |
| 3.75% 10/1/30 (d) | | 205,000 | 176,703 |
| GEMS MENASA Cayman Ltd. 7.125% 7/31/26 (d) | | 3,535,000 | 3,378,797 |
| Legends Hospitality Holding Co. LLC/Legends Hospitality Co-Issuer, Inc. 5% 2/1/26 (d) | | 3,680,000 | 3,275,200 |
| Neptune BidCo U.S., Inc. 9.29% 4/15/29 (d) | | 1,410,000 | 1,328,925 |
| PowerTeam Services LLC 9.033% 12/4/25 (d) | | 490,000 | 408,214 |
| Service Corp. International: | | | |
| 4% 5/15/31 | | 960,000 | 808,980 |
| 5.125% 6/1/29 | | 1,420,000 | 1,331,285 |
| Sotheby's 7.375% 10/15/27 (d) | | 4,315,000 | 4,045,871 |
| The GEO Group, Inc. 9.5% 12/31/28 (d) | | 1,315,000 | 1,251,800 |
| TriNet Group, Inc. 3.5% 3/1/29 (d) | | 1,930,000 | 1,586,846 |
| Uber Technologies, Inc. 4.5% 8/15/29 (d) | | 1,085,000 | 945,312 |
| WASH Multifamily Acquisition, Inc. 5.75% 4/15/26 (d) | | 2,893,000 | 2,726,653 |
| | | | 41,954,566 |
| Steel - 0.3% | | | |
| Commercial Metals Co. 4.125% 1/15/30 | | 940,000 | 831,765 |
| Roller Bearing Co. of America, Inc. 4.375% 10/15/29 (d) | | 1,715,000 | 1,482,961 |
| | | | 2,314,726 |
| Super Retail - 1.7% | | | |
| Bath & Body Works, Inc. 6.694% 1/15/27 | | 375,000 | 372,304 |
| Carvana Co.: | | | |
| 4.875% 9/1/29 (d) | | 880,000 | 339,030 |
| 5.5% 4/15/27 (d) | | 1,245,000 | 493,248 |
| 5.875% 10/1/28 (d) | | 610,000 | 238,073 |
| 10.25% 5/1/30 (d) | | 170,000 | 79,880 |
| EG Global Finance PLC: | | | |
| 6.75% 2/7/25 (d) | | 2,170,000 | 1,894,475 |
| 8.5% 10/30/25 (d) | | 3,690,000 | 3,437,690 |
| LBM Acquisition LLC 6.25% 1/15/29 (d) | | 1,295,000 | 824,075 |
| Levi Strauss & Co. 3.5% 3/1/31 (d) | | 1,310,000 | 1,039,734 |
| Michaels Companies, Inc.: | | | |
| 5.25% 5/1/28 (d) | | 810,000 | 651,670 |
| 7.875% 5/1/29 (d) | | 620,000 | 414,264 |
| Nordstrom, Inc.: | | | |
| 4.25% 8/1/31 | | 950,000 | 679,345 |
| 4.375% 4/1/30 | | 635,000 | 477,380 |
| Wolverine World Wide, Inc. 4% 8/15/29 (d) | | 1,855,000 | 1,405,274 |
| | | | 12,346,442 |
| Technology - 6.0% | | | |
| Acuris Finance U.S. 5% 5/1/28 (d) | | 3,360,000 | 2,679,600 |
| Athenahealth Group, Inc. 6.5% 2/15/30 (d) | | 450,000 | 331,619 |
| Black Knight InfoServ LLC 3.625% 9/1/28 (d) | | 2,525,000 | 2,190,438 |
| Broadcom, Inc.: | | | |
| 2.45% 2/15/31 (d) | | 960,000 | 756,114 |
| 2.6% 2/15/33 (d) | | 1,015,000 | 761,856 |
| Clarivate Science Holdings Corp.: | | | |
| 3.875% 7/1/28 (d) | | 455,000 | 394,210 |
| 4.875% 7/1/29 (d) | | 460,000 | 391,161 |
| Coherent Corp. 5% 12/15/29 (d) | | 1,990,000 | 1,716,236 |
| CommScope, Inc.: | | | |
| 4.75% 9/1/29 (d) | | 825,000 | 665,115 |
| 6% 3/1/26 (d) | | 1,015,000 | 936,733 |
| Elastic NV 4.125% 7/15/29 (d) | | 2,310,000 | 1,865,787 |
| Entegris Escrow Corp.: | | | |
| 4.75% 4/15/29 (d) | | 2,705,000 | 2,466,790 |
| 5.95% 6/15/30 (d) | | 2,980,000 | 2,748,156 |
| Entegris, Inc. 3.625% 5/1/29 (d) | | 630,000 | 512,978 |
| Gartner, Inc. 4.5% 7/1/28 (d) | | 1,470,000 | 1,370,525 |
| Go Daddy Operating Co. LLC / GD Finance Co., Inc. 3.5% 3/1/29 (d) | | 895,000 | 749,287 |
| ION Trading Technologies Ltd. 5.75% 5/15/28 (d) | | 3,323,000 | 2,770,551 |
| Match Group Holdings II LLC 4.125% 8/1/30 (d) | | 680,000 | 555,130 |
| MicroStrategy, Inc. 6.125% 6/15/28 (d) | | 2,735,000 | 1,955,662 |
| onsemi 3.875% 9/1/28 (d) | | 1,115,000 | 972,939 |
| Open Text Corp. 3.875% 12/1/29 (d) | | 2,540,000 | 2,042,638 |
| Open Text Holdings, Inc.: | | | |
| 4.125% 2/15/30 (d) | | 850,000 | 681,840 |
| 4.125% 12/1/31 (d) | | 560,000 | 435,285 |
| Rackspace Hosting, Inc.: | | | |
| 3.5% 2/15/28 (d) | | 1,695,000 | 984,998 |
| 5.375% 12/1/28 (d) | | 11,522,000 | 5,021,997 |
| Roblox Corp. 3.875% 5/1/30 (d) | | 1,955,000 | 1,540,931 |
| Sensata Technologies BV 4% 4/15/29 (d) | | 760,000 | 655,500 |
| TTM Technologies, Inc. 4% 3/1/29 (d) | | 4,145,000 | 3,554,524 |
| Twilio, Inc. 3.875% 3/15/31 | | 730,000 | 579,149 |
| Uber Technologies, Inc. 8% 11/1/26 (d) | | 2,220,000 | 2,227,641 |
| | | | 44,515,390 |
| Telecommunications - 7.2% | | | |
| Altice Financing SA: | | | |
| 5% 1/15/28 (d) | | 1,420,000 | 1,143,100 |
| 5.75% 8/15/29 (d) | | 6,895,000 | 5,423,351 |
| Altice France Holding SA 6% 2/15/28 (d) | | 4,095,000 | 2,416,050 |
| Altice France SA: | | | |
| 5.125% 1/15/29 (d) | | 5,090,000 | 3,827,227 |
| 5.125% 7/15/29 (d) | | 2,015,000 | 1,510,733 |
| 5.5% 1/15/28 (d) | | 1,615,000 | 1,264,739 |
| 5.5% 10/15/29 (d) | | 15,000 | 11,438 |
| C&W Senior Financing Designated Activity Co. 6.875% 9/15/27 (d) | | 9,905,000 | 9,173,268 |
| Cablevision Lightpath LLC: | | | |
| 3.875% 9/15/27 (d) | | 455,000 | 374,985 |
| 5.625% 9/15/28 (d) | | 360,000 | 267,454 |
| Consolidated Communications, Inc. 5% 10/1/28 (d) | | 535,000 | 394,545 |
| Frontier Communications Holdings LLC: | | | |
| 5% 5/1/28 (d) | | 2,360,000 | 2,057,967 |
| 5.875% 10/15/27 (d) | | 940,000 | 872,856 |
| 5.875% 11/1/29 | | 1,430,000 | 1,106,356 |
| 8.75% 5/15/30 (d) | | 955,000 | 970,996 |
| Intelsat Jackson Holdings SA 6.5% 3/15/30 (d) | | 1,895,000 | 1,694,111 |
| Level 3 Financing, Inc.: | | | |
| 3.625% 1/15/29 (d) | | 340,000 | 248,962 |
| 4.25% 7/1/28 (d) | | 3,590,000 | 2,827,843 |
| Lumen Technologies, Inc. 4.5% 1/15/29 (d) | | 4,700,000 | 3,243,996 |
| Millicom International Cellular SA: | | | |
| 4.5% 4/27/31 (d) | | 2,275,000 | 1,910,005 |
| 5.125% 1/15/28 (d) | | 261,000 | 242,208 |
| Sable International Finance Ltd. 5.75% 9/7/27 (d) | | 464,000 | 428,620 |
| SBA Communications Corp. 3.125% 2/1/29 | | 935,000 | 777,443 |
| Telecom Italia Capital SA: | | | |
| 6% 9/30/34 | | 1,185,000 | 895,505 |
| 7.2% 7/18/36 | | 845,000 | 686,056 |
| 7.721% 6/4/38 | | 235,000 | 195,050 |
| Uniti Group, Inc. 6% 1/15/30 (d) | | 4,060,000 | 2,569,084 |
| Virgin Media Secured Finance PLC 4.5% 8/15/30 (d) | | 690,000 | 576,443 |
| VMED O2 UK Financing I PLC 4.25% 1/31/31 (d) | | 415,000 | 335,949 |
| Windstream Escrow LLC 7.75% 8/15/28 (d) | | 5,460,000 | 4,448,946 |
| Zayo Group Holdings, Inc.: | | | |
| 4% 3/1/27 (d) | | 1,600,000 | 1,181,712 |
| 6.125% 3/1/28 (d) | | 1,020,000 | 578,420 |
| | | | 53,655,418 |
| Textiles/Apparel - 0.3% | | | |
| Foot Locker, Inc. 4% 10/1/29 (d) | | 2,065,000 | 1,608,695 |
| Kontoor Brands, Inc. 4.125% 11/15/29 (d) | | 335,000 | 273,397 |
| | | | 1,882,092 |
| Transportation Ex Air/Rail - 0.5% | | | |
| Golar LNG Ltd. 7% 10/20/25 (d) | | 1,025,000 | 1,013,020 |
| Great Lakes Dredge & Dock Corp. 5.25% 6/1/29 (d) | | 595,000 | 462,553 |
| Seaspan Corp. 5.5% 8/1/29 (d) | | 3,290,000 | 2,493,162 |
| | | | 3,968,735 |
| Utilities - 2.8% | | | |
| Clearway Energy Operating LLC: | | | |
| 3.75% 2/15/31 (d) | | 1,005,000 | 834,400 |
| 4.75% 3/15/28 (d) | | 585,000 | 539,923 |
| Global Partners LP/GLP Finance Corp. 7% 8/1/27 | | 1,282,000 | 1,217,422 |
| InterGen NV 7% 6/30/23 (d) | | 4,960,000 | 4,811,368 |
| NRG Energy, Inc.: | | | |
| 3.375% 2/15/29 (d) | | 1,535,000 | 1,238,162 |
| 5.25% 6/15/29 (d) | | 1,405,000 | 1,240,250 |
| PG&E Corp.: | | | |
| 5% 7/1/28 | | 2,715,000 | 2,478,368 |
| 5.25% 7/1/30 | | 4,455,000 | 4,054,050 |
| Pike Corp. 5.5% 9/1/28 (d) | | 3,485,000 | 3,046,726 |
| Vistra Operations Co. LLC 5.625% 2/15/27 (d) | | 1,455,000 | 1,380,304 |
| | | | 20,840,973 |
TOTAL NONCONVERTIBLE BONDS | | | 610,470,827 |
| TOTAL CORPORATE BONDS (Cost $741,091,195) | | | 629,867,846 |
| | | | |
| Common Stocks - 1.7% |
| | | Shares | Value ($) |
| Automotive & Auto Parts - 0.1% | | | |
| Aptiv PLC (f) | | 7,500 | 698,475 |
| Cable/Satellite TV - 0.1% | | | |
| Altice U.S.A., Inc. Class A (f) | | 59,900 | 275,540 |
| Charter Communications, Inc. Class A (f) | | 2,200 | 746,020 |
TOTAL CABLE/SATELLITE TV | | | 1,021,560 |
| Energy - 1.1% | | | |
| California Resources Corp. warrants 10/27/24 (f) | | 1,768 | 22,277 |
| Jonah Energy Parent LLC (c)(f) | | 58,499 | 3,295,249 |
| Mesquite Energy, Inc. (c)(f) | | 82,533 | 4,917,303 |
TOTAL ENERGY | | | 8,234,829 |
| Gaming - 0.2% | | | |
| Caesars Entertainment, Inc. (f) | | 32,100 | 1,335,360 |
| Telecommunications - 0.0% | | | |
| CUI Acquisition Corp. Class E (c)(f) | | 1 | 0 |
| GTT Communications, Inc. (c)(f) | | 23,507 | 290,321 |
TOTAL TELECOMMUNICATIONS | | | 290,321 |
| Utilities - 0.2% | | | |
| EQT Corp. | | 39,000 | 1,319,370 |
| TOTAL COMMON STOCKS (Cost $9,944,321) | | | 12,899,915 |
| | | | |
| Bank Loan Obligations - 4.9% |
| | | Principal Amount (a) | Value ($) |
| Broadcasting - 0.2% | | | |
| Diamond Sports Group LLC: | | | |
| 1LN, term loan CME Term SOFR 1 Month Index + 8.000% 12.3171% 5/25/26 (g)(h)(i) | | 1,131,410 | 1,068,243 |
| 2LN, term loan CME Term SOFR 1 Month Index + 3.250% 7.5671% 8/24/26 (g)(h)(i) | | 2,551,051 | 306,126 |
TOTAL BROADCASTING | | | 1,374,369 |
| Building Materials - 0.1% | | | |
| Acproducts Holdings, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 4.250% 8.9799% 5/17/28 (g)(h)(i) | | 1,254,085 | 933,579 |
| Chemicals - 0.3% | | | |
| Consolidated Energy Finance SA Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.500% 7.7214% 5/7/25 (c)(g)(h)(i) | | 1,492,394 | 1,421,505 |
| Discovery Purchaser Corp. 1LN, term loan CME Term SOFR 1 Month Index + 4.370% 7.9683% 10/4/29 (g)(h)(i) | | 1,230,000 | 1,118,378 |
TOTAL CHEMICALS | | | 2,539,883 |
| Energy - 0.3% | | | |
| EG America LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.000% 8.7299% 2/6/25 (g)(h)(i) | | 1,384,577 | 1,304,106 |
| EG Finco Ltd. Tranche B, term loan 3 month U.S. LIBOR + 4.000% 9.1511% 2/6/25 (g)(h)(i) | | 932,861 | 878,643 |
| Mesquite Energy, Inc.: | | | |
| 1LN, term loan 3 month U.S. LIBOR + 8.000% 0% (c)(e)(h)(i) | | 1,525,908 | 0 |
| term loan 3 month U.S. LIBOR + 0.000% 0% (c)(e)(h)(i) | | 658,000 | 0 |
TOTAL ENERGY | | | 2,182,749 |
| Healthcare - 0.2% | | | |
| Cano Health, Inc. Tranche B 1LN, term loan CME Term SOFR 1 Month Index + 4.000% 8.423% 11/23/27 (g)(h)(i) | | 1,411,436 | 1,113,623 |
| Da Vinci Purchaser Corp. Tranche B 1LN, term loan 1 month U.S. LIBOR + 4.000% 8.3836% 12/13/26 (g)(h)(i) | | 74,051 | 67,016 |
TOTAL HEALTHCARE | | | 1,180,639 |
| Insurance - 0.2% | | | |
| HUB International Ltd. Tranche B, term loan 3 month U.S. LIBOR + 3.000% 7.3269% 4/25/25 (g)(h)(i) | | 1,154,481 | 1,140,535 |
| Leisure - 0.4% | | | |
| City Football Group Ltd. Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.000% 7.3613% 7/21/28 (g)(h)(i) | | 3,391,742 | 3,162,800 |
| Paper - 0.2% | | | |
| Clydesdale Acquisition Holdings, Inc. 1LN, term loan CME Term SOFR 1 Month Index + 4.170% 8.598% 4/13/29 (g)(h)(i) | | 1,223,850 | 1,163,172 |
| Services - 1.1% | | | |
| ABG Intermediate Holdings 2 LLC: | | | |
| Tranche B 2LN, term loan CME Term SOFR 1 Month Index + 6.000% 10.423% 12/20/29 (g)(h)(i) | | 75,000 | 68,250 |
| Tranche B1 LN, term loan CME Term SOFR 1 Month Index + 3.500% 7.923% 12/21/28 (g)(h)(i) | | 343,275 | 331,689 |
| Ascend Learning LLC: | | | |
| 2LN, term loan 1 month U.S. LIBOR + 5.750% 10.1336% 12/10/29 (g)(h)(i) | | 130,000 | 110,988 |
| Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.500% 7.8836% 12/10/28 (g)(h)(i) | | 1,291,950 | 1,219,278 |
| Brand Energy & Infrastructure Services, Inc. Tranche B, term loan 3 month U.S. LIBOR + 4.250% 8.4945% 6/21/24 (g)(h)(i) | | 3,372,883 | 3,010,298 |
| Neptune BidCo U.S., Inc. Tranche B 1LN, term loan CME Term SOFR 1 Month Index + 5.000% 8.8219% 4/11/29 (g)(h)(i) | | 2,320,000 | 2,066,262 |
| Spin Holdco, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 4.000% 8.765% 3/4/28 (g)(h)(i) | | 2,046,089 | 1,718,203 |
TOTAL SERVICES | | | 8,524,968 |
| Super Retail - 0.6% | | | |
| Bass Pro Group LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.750% 8.1336% 3/5/28 (g)(h)(i) | | 1,553,204 | 1,489,134 |
| LBM Acquisition LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.750% 7.1207% 12/18/27 (g)(h)(i) | | 3,187,712 | 2,756,383 |
TOTAL SUPER RETAIL | | | 4,245,517 |
| Technology - 0.6% | | | |
| Athenahealth Group, Inc.: | | | |
| Tranche B 1LN, term loan CME Term SOFR 1 Month Index + 3.500% 7.8211% 2/15/29 (g)(h)(i) | | 3,335,125 | 3,002,813 |
| Tranche DD 1LN, term loan CME Term SOFR 1 Month Index + 3.500% 3.5% 2/15/29 (g)(h)(i)(j) | | 568,116 | 511,509 |
| Central Parent, Inc. 1LN, term loan CME Term SOFR 1 Month Index + 4.500% 9.0802% 7/6/29 (g)(h)(i) | | 345,000 | 341,471 |
| Verscend Holding Corp. Tranche B 1LN, term loan 1 month U.S. LIBOR + 4.000% 8.3836% 8/27/25 (g)(h)(i) | | 462,407 | 458,528 |
TOTAL TECHNOLOGY | | | 4,314,321 |
| Telecommunications - 0.2% | | | |
| GTT Communications BV 1LN, term loan: | | | |
| 11.423% 1/3/28 (c)(i) | | 1,113,085 | 879,337 |
| 13.6802% 6/3/28 (c)(i) | | 891,413 | 311,995 |
TOTAL TELECOMMUNICATIONS | | | 1,191,332 |
| Utilities - 0.5% | | | |
| PG&E Corp. Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.000% 7.4375% 6/23/25 (g)(h)(i) | | 4,149,584 | 4,111,989 |
| TOTAL BANK LOAN OBLIGATIONS (Cost $41,950,330) | | | 36,065,853 |
| | | | |
| Other - 0.9% |
| | | Shares | Value ($) |
| Other - 0.9% | | | |
Fidelity Direct Lending Fund, LP (b)(k) (Cost $7,062,215) | | | 7,033,396 |
| | | | |
| Money Market Funds - 6.3% |
| | | Shares | Value ($) |
Fidelity Cash Central Fund 4.37% (l) (Cost $46,606,159) | | 46,596,840 | 46,606,159 |
| | | | |
| TOTAL INVESTMENT IN SECURITIES - 98.5% (Cost $846,654,220) | 732,473,169 |
NET OTHER ASSETS (LIABILITIES) - 1.5% | 11,067,505 |
| NET ASSETS - 100.0% | 743,540,674 |
| | |
Legend
| (a) | Amount is stated in United States dollars unless otherwise noted. |
| (b) | Restricted securities (including private placements) - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $18,313,771 or 2.5% of net assets. |
| (d) | Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $502,781,068 or 67.6% of net assets. |
| (e) | Non-income producing - Security is in default. |
| (g) | Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
| (h) | Coupon is indexed to a floating interest rate which may be multiplied by a specified factor and/or subject to caps or floors. |
| (i) | Remaining maturities of bank loan obligations may be less than the stated maturities shown as a result of contractual or optional prepayments by the borrower. Such prepayments cannot be predicted with certainty. |
| (j) | Position or a portion of the position represents an unfunded loan commitment. At period end, the total principal amount and market value of unfunded commitments totaled $426,087 and $383,632, respectively. |
| (l) | Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request. |
| Additional information on each restricted holding is as follows: |
| Security | Acquisition Date | Acquisition Cost ($) |
| Fidelity Direct Lending Fund, LP | 12/09/21 - 12/30/22 | 7,062,215 |
| | | |
| Mesquite Energy, Inc. 15% 7/15/23 | 7/10/20 - 1/18/22 | 649,253 |
| | | |
| Mesquite Energy, Inc. 15% 7/15/23 | 11/05/20 - 1/18/22 | 1,120,884 |
| | | |
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
| Affiliate | Value, beginning of period ($) | Purchases ($) | Sales Proceeds ($) | Dividend Income ($) | Realized Gain (loss) ($) | Change in Unrealized appreciation (depreciation) ($) | Value, end of period ($) | % ownership, end of period |
| Fidelity Cash Central Fund 4.37% | 19,357,047 | 352,155,041 | 324,905,929 | 712,661 | - | - | 46,606,159 | 0.1% |
| Fidelity Securities Lending Cash Central Fund 4.37% | - | 39,774,296 | 39,774,296 | 30,226 | - | - | - | 0.0% |
| Total | 19,357,047 | 391,929,337 | 364,680,225 | 742,887 | - | - | 46,606,159 | |
| | | | | | | | | |
Amounts in the dividend income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line item in the Statement of Operations, if applicable.
Amount for Fidelity Securities Lending Cash Central Fund represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities.
Amounts included in the purchases and sales proceeds columns may include in-kind transactions, if applicable.
Affiliated Underlying Funds
Fiscal year to date information regarding the Fund's investments in affiliated Underlying Funds is presented below. Exchanges between classes of the same affiliated Underlying Funds may occur. If an Underlying Funds changes its name, the name presented below is the name in effect at period end.
| Affiliate | Value, beginning of period ($) | Purchases ($) | Sales Proceeds ($) | Dividend Income ($) | Realized Gain (loss) ($) | Change in Unrealized appreciation (depreciation) ($) | Value, end of period ($) |
| Fidelity Direct Lending Fund, LP | 1,504,067 | 6,505,470 | 935,004 | 336,577 | (12,318) | (28,819) | 7,033,396 |
| | 1,504,067 | 6,505,470 | 935,004 | 336,577 | (12,318) | (28,819) | 7,033,396 |
Amounts in the dividend 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.
Amounts included in the purchases and sales proceeds columns may include in-kind transactions, if applicable.
Investment Valuation
The following is a summary of the inputs used, as of December 31, 2022, 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.
Amounts in this Investment Valuation section exclude the value of Fidelity Direct Lending Fund, LP as presented in the Schedule of Investments. Fidelity Direct Lending Fund, LP is valued using NAV as a practical expedient.
| Valuation Inputs at Reporting Date: |
| Description | Total ($) | Level 1 ($) | Level 2 ($) | Level 3 ($) |
Investments in Securities: | | | | |
|
| Equities: | | | | |
Communication Services | 1,021,560 | 1,021,560 | - | - |
Consumer Discretionary | 2,033,835 | 2,033,835 | - | - |
Energy | 9,554,199 | 1,341,647 | - | 8,212,552 |
Information Technology | 290,321 | - | - | 290,321 |
|
| Corporate Bonds | 629,867,846 | - | 618,587,470 | 11,280,376 |
|
| Bank Loan Obligations | 36,065,853 | - | 33,453,016 | 2,612,837 |
|
| Money Market Funds | 46,606,159 | 46,606,159 | - | - |
| Total Investments in Securities: | 725,439,773 | 51,003,201 | 652,040,486 | 22,396,086 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value:
| |
| Investments in Securities: | |
| Energy | | | |
| Beginning Balance | $ | 6,728,090 | |
| Net Realized Gain (Loss) on Investment Securities | | - | |
| Net Unrealized Gain (Loss) on Investment Securities | | 1,484,462 | |
| Cost of Purchases | | - | |
| Proceeds of Sales | | - | |
| Amortization/Accretion | | - | |
| Transfers into Level 3 | | - | |
| Transfers out of Level 3 | | - | |
| Ending Balance | $ | 8,212,552 | |
| The change in unrealized gain (loss) for the period attributable to Level 3 securities held at December 31, 2022 | $ | 1,484,462 | |
| Corporate Bonds | | | |
| Beginning Balance | $ | 5,561,322 | |
| Net Realized Gain (Loss) on Investment Securities | | - | |
| Net Unrealized Gain (Loss) on Investment Securities | | 5,654,301 | |
| Cost of Purchases | | 64,753 | |
| Proceeds of Sales | | - | |
| Amortization/Accretion | | - | |
| Transfers into Level 3 | | - | |
| Transfers out of Level 3 | | - | |
| Ending Balance | $ | 11,280,376 | |
| The change in unrealized gain (loss) for the period attributable to Level 3 securities held at December 31, 2022 | $ | 5,654,301 | |
| Other Investments in Securities | | | |
| Beginning Balance | $ | 3,954,735 | |
| Net Realized Gain (Loss) on Investment Securities | | (62,875) | |
| Net Unrealized Gain (Loss) on Investment Securities | | (1,629,948) | |
| Cost of Purchases | | 3,036,353 | |
| Proceeds of Sales | | (901,223) | |
| Amortization/Accretion | | 10,183 | |
| Transfers into Level 3 | | - | |
| Transfers out of Level 3 | | (1,504,067) | |
| Ending Balance | $ | 2,903,158 | |
| The change in unrealized gain (loss) for the period attributable to Level 3 securities held at December 31, 2022 | $ | (1,629,948) | |
| The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Cost of purchases and proceeds of sales may include securities received and/or delivered through in-kind transactions. Transfers into Level 3 were attributable to a lack of observable market data resulting from decreases in market activity, decreases in liquidity, security restructurings or corporate actions. Transfers out of Level 3 were attributable to observable market data becoming available for those securities. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. | |
| Statement of Assets and Liabilities |
| | | | December 31, 2022 |
| | | | | |
| Assets | | | | |
| Investment in securities, at value - See accompanying schedule: | $ | | | |
Unaffiliated issuers (cost $792,985,846) | | 678,833,614 | | |
Fidelity Central Funds (cost $46,606,159) | | 46,606,159 | | |
Other affiliated issuers (cost $7,062,215) | | 7,033,396 | | |
| | | | | |
| | | | | |
| Total Investment in Securities (cost $846,654,220) | | | $ | 732,473,169 |
| Cash | | | | 228,388 |
| Receivable for investments sold | | | | 2,754,755 |
| Receivable for fund shares sold | | | | 370,604 |
| Dividends receivable | | | | 76,052 |
| Interest receivable | | | | 11,666,934 |
| Distributions receivable from Fidelity Central Funds | | | | 177,684 |
| Prepaid expenses | | | | 878 |
Total assets | | | | 747,748,464 |
| Liabilities | | | | |
| Payable for investments purchased | | $3,063,350 | | |
| Payable for fund shares redeemed | | 617,065 | | |
| Accrued management fee | | 339,942 | | |
| Distribution and service plan fees payable | | 30,165 | | |
| Other affiliated payables | | 75,117 | | |
| Other payables and accrued expenses | | 82,151 | | |
| Total Liabilities | | | | 4,207,790 |
| Net Assets | | | $ | 743,540,674 |
| Net Assets consist of: | | | | |
| Paid in capital | | | $ | 963,369,462 |
| Total accumulated earnings (loss) | | | | (219,828,788) |
| Net Assets | | | $ | 743,540,674 |
| | | | | |
| Net Asset Value and Maximum Offering Price | | | | |
| Initial Class : | | | | |
Net Asset Value , offering price and redemption price per share ($235,521,879 ÷ 53,412,306 shares) | | | $ | 4.41 |
| Service Class : | | | | |
Net Asset Value , offering price and redemption price per share ($43,706,566 ÷ 9,996,595 shares) | | | $ | 4.37 |
| Service Class 2 : | | | | |
Net Asset Value , offering price and redemption price per share ($127,405,884 ÷ 30,263,226 shares) | | | $ | 4.21 |
| Investor Class : | | | | |
Net Asset Value , offering price and redemption price per share ($336,906,345 ÷ 76,946,926 shares) | | | $ | 4.38 |
| Statement of Operations |
| | | | Year ended December 31, 2022 |
| Investment Income | | | | |
| Dividends (including $336,577 earned from affiliated issuers) | | | $ | 2,201,484 |
| Interest | | | | 45,250,996 |
| Income from Fidelity Central Funds (including $30,226 from security lending) | | | | 742,887 |
| Total Income | | | | 48,195,367 |
| Expenses | | | | |
| Management fee | $ | 4,445,598 | | |
| Transfer agent fees | | 675,932 | | |
| Distribution and service plan fees | | 389,853 | | |
| Accounting fees | | 301,247 | | |
| Custodian fees and expenses | | 10,505 | | |
| Independent trustees' fees and expenses | | 2,849 | | |
| Audit | | 88,476 | | |
| Legal | | 403,750 | | |
| Interest | | 344 | | |
| Miscellaneous | | 4,042 | | |
| Total expenses before reductions | | 6,322,596 | | |
| Expense reductions | | (15,302) | | |
| Total expenses after reductions | | | | 6,307,294 |
| Net Investment income (loss) | | | | 41,888,073 |
| Realized and Unrealized Gain (Loss) | | | | |
| Net realized gain (loss) on: | | | | |
| Investment Securities: | | | | |
| Unaffiliated issuers | | (25,089,359) | | |
| Affiliated issuers | | (12,318) | | |
| Total net realized gain (loss) | | | | (25,101,677) |
| Change in net unrealized appreciation (depreciation) on: | | | | |
| Investment Securities: | | | | |
| Unaffiliated issuers | | (124,975,058) | | |
| Affiliated issuers | | (28,819) | | |
| Total change in net unrealized appreciation (depreciation) | | | | (125,003,877) |
| Net gain (loss) | | | | (150,105,554) |
| Net increase (decrease) in net assets resulting from operations | | | $ | (108,217,481) |
| Statement of Changes in Net Assets |
| |
| | Year ended December 31, 2022 | | Year ended December 31, 2021 |
| Increase (Decrease) in Net Assets | | | | |
| Operations | | | | |
| Net investment income (loss) | $ | 41,888,073 | $ | 44,147,271 |
| Net realized gain (loss) | | (25,101,677) | | 21,951,238 |
| Change in net unrealized appreciation (depreciation) | | (125,003,877) | | (23,268,129) |
| Net increase (decrease) in net assets resulting from operations | | (108,217,481) | | 42,830,380 |
| Distributions to shareholders | | (40,140,205) | | (51,264,851) |
| Share transactions - net increase (decrease) | | (83,467,685) | | 14,687,529 |
| Total increase (decrease) in net assets | | (231,825,371) | | 6,253,058 |
| | | | | |
| Net Assets | | | | |
| Beginning of period | | 975,366,045 | | 969,112,987 |
| End of period | $ | 743,540,674 | $ | 975,366,045 |
| | | | | |
| | | | | |
Financial Highlights
| VIP High Income Portfolio Initial Class |
| |
| Years ended December 31, | | 2022 | | 2021 | | 2020 | | 2019 | | 2018 |
Selected Per-Share Data | | | | | | | | | | |
| Net asset value, beginning of period | $ | 5.25 | $ | 5.31 | $ | 5.43 | $ | 4.97 | $ | 5.46 |
| Income from Investment Operations | | | | | | | | | | |
Net investment income (loss) A,B | | .251 | | .245 | | .266 | | .286 | | .288 |
| Net realized and unrealized gain (loss) | | (.842) | | (.016) | | (.121) | | .457 | | (.473) |
| Total from investment operations | | (.591) | | .229 | | .145 | | .743 | | (.185) |
| Distributions from net investment income | | (.249) | | (.289) | | (.265) | | (.283) | | (.305) |
| Total distributions | | (.249) | | (.289) | | (.265) | | (.283) | | (.305) |
| Net asset value, end of period | $ | 4.41 | $ | 5.25 | $ | 5.31 | $ | 5.43 | $ | 4.97 |
Total Return C,D | | (11.37)% | | 4.41% | | 2.75% | | 15.11% | | (3.46)% |
Ratios to Average Net Assets B,E,F | | | | | | | | | | |
| Expenses before reductions | | .72% | | .67% | | .67% | | .67% | | .67% |
| Expenses net of fee waivers, if any | | .71% | | .66% | | .67% | | .67% | | .67% |
| Expenses net of all reductions | | .71% | | .66% | | .67% | | .67% | | .67% |
| Net investment income (loss) | | 5.22% | | 4.57% | | 5.14% | | 5.31% | | 5.33% |
| Supplemental Data | | | | | | | | | | |
| Net assets, end of period (000 omitted) | $ | 235,522 | $ | 312,771 | $ | 313,973 | $ | 327,442 | $ | 299,239 |
Portfolio turnover rate G | | 32% | | 66% | | 72% | | 30% | | 69% |
A Calculated based on average shares outstanding during the period.
B Net investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any mutual funds or ETFs is not included in the Fund's net investment income (loss) ratio.
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. For additional expense information related to investments in Fidelity Direct Lending Fund, LP, please refer to the Investment in Fidelity Direct Lending Fund, LP 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).
| VIP High Income Portfolio Service Class |
| |
| Years ended December 31, | | 2022 | | 2021 | | 2020 | | 2019 | | 2018 |
Selected Per-Share Data | | | | | | | | | | |
| Net asset value, beginning of period | $ | 5.21 | $ | 5.26 | $ | 5.38 | $ | 4.93 | $ | 5.42 |
| Income from Investment Operations | | | | | | | | | | |
Net investment income (loss) A,B | | .244 | | .238 | | .259 | | .279 | | .280 |
| Net realized and unrealized gain (loss) | | (.840) | | (.007) | | (.120) | | .449 | | (.471) |
| Total from investment operations | | (.596) | | .231 | | .139 | | .728 | | (.191) |
| Distributions from net investment income | | (.244) | | (.281) | | (.259) | | (.278) | | (.299) |
| Total distributions | | (.244) | | (.281) | | (.259) | | (.278) | | (.299) |
| Net asset value, end of period | $ | 4.37 | $ | 5.21 | $ | 5.26 | $ | 5.38 | $ | 4.93 |
Total Return C,D | | (11.56)% | | 4.50% | | 2.65% | | 14.92% | | (3.60)% |
Ratios to Average Net Assets B,E,F | | | | | | | | | | |
| Expenses before reductions | | .81% | | .77% | | .77% | | .77% | | .77% |
| Expenses net of fee waivers, if any | | .81% | | .76% | | .77% | | .77% | | .77% |
| Expenses net of all reductions | | .81% | | .76% | | .77% | | .77% | | .77% |
| Net investment income (loss) | | 5.12% | | 4.47% | | 5.04% | | 5.21% | | 5.23% |
| Supplemental Data | | | | | | | | | | |
| Net assets, end of period (000 omitted) | $ | 43,707 | $ | 53,927 | $ | 53,326 | $ | 66,123 | $ | 58,231 |
Portfolio turnover rate G | | 32% | | 66% | | 72% | | 30% | | 69% |
A Calculated based on average shares outstanding during the period.
B Net investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any mutual funds or ETFs is not included in the Fund's net investment income (loss) ratio.
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. For additional expense information related to investments in Fidelity Direct Lending Fund, LP, please refer to the Investment in Fidelity Direct Lending Fund, LP 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).
| VIP High Income Portfolio Service Class 2 |
| |
| Years ended December 31, | | 2022 | | 2021 | | 2020 | | 2019 | | 2018 |
Selected Per-Share Data | | | | | | | | | | |
| Net asset value, beginning of period | $ | 5.03 | $ | 5.09 | $ | 5.22 | $ | 4.79 | $ | 5.27 |
| Income from Investment Operations | | | | | | | | | | |
Net investment income (loss) A,B | | .228 | | .222 | | .244 | | .262 | | .264 |
| Net realized and unrealized gain (loss) | | (.809) | | (.009) | | (.121) | | .438 | | (.451) |
| Total from investment operations | | (.581) | | .213 | | .123 | | .700 | | (.187) |
| Distributions from net investment income | | (.239) | | (.273) | | (.253) | | (.270) | | (.293) |
| Total distributions | | (.239) | | (.273) | | (.253) | | (.270) | | (.293) |
| Net asset value, end of period | $ | 4.21 | $ | 5.03 | $ | 5.09 | $ | 5.22 | $ | 4.79 |
Total Return C,D | | (11.67)% | | 4.29% | | 2.42% | | 14.77% | | (3.63)% |
Ratios to Average Net Assets B,E,F | | | | | | | | | | |
| Expenses before reductions | | .96% | | .92% | | .92% | | .92% | | .92% |
| Expenses net of fee waivers, if any | | .96% | | .91% | | .92% | | .92% | | .92% |
| Expenses net of all reductions | | .96% | | .91% | | .92% | | .92% | | .92% |
| Net investment income (loss) | | 4.97% | | 4.32% | | 4.89% | | 5.06% | | 5.08% |
| Supplemental Data | | | | | | | | | | |
| Net assets, end of period (000 omitted) | $ | 127,406 | $ | 166,773 | $ | 170,257 | $ | 187,747 | $ | 139,564 |
Portfolio turnover rate G | | 32% | | 66% | | 72% | | 30% | | 69% |
A Calculated based on average shares outstanding during the period.
B Net investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any mutual funds or ETFs is not included in the Fund's net investment income (loss) ratio.
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. For additional expense information related to investments in Fidelity Direct Lending Fund, LP, please refer to the Investment in Fidelity Direct Lending Fund, LP 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).
| VIP High Income Portfolio Investor Class |
| |
| Years ended December 31, | | 2022 | | 2021 | | 2020 | | 2019 | | 2018 |
Selected Per-Share Data | | | | | | | | | | |
| Net asset value, beginning of period | $ | 5.22 | $ | 5.27 | $ | 5.39 | $ | 4.94 | $ | 5.43 |
| Income from Investment Operations | | | | | | | | | | |
Net investment income (loss) A,B | | .248 | | .242 | | .263 | | .283 | | .284 |
| Net realized and unrealized gain (loss) | | (.840) | | (.004) | | (.119) | | .448 | | (.470) |
| Total from investment operations | | (.592) | | .238 | | .144 | | .731 | | (.186) |
| Distributions from net investment income | | (.248) | | (.288) | | (.264) | | (.281) | | (.304) |
| Total distributions | | (.248) | | (.288) | | (.264) | | (.281) | | (.304) |
| Net asset value, end of period | $ | 4.38 | $ | 5.22 | $ | 5.27 | $ | 5.39 | $ | 4.94 |
Total Return C,D | | (11.46)% | | 4.63% | | 2.74% | | 14.94% | | (3.50)% |
Ratios to Average Net Assets B,E,F | | | | | | | | | | |
| Expenses before reductions | | .75% | | .70% | | .71% | | .70% | | .71% |
| Expenses net of fee waivers, if any | | .75% | | .70% | | .71% | | .70% | | .71% |
| Expenses net of all reductions | | .75% | | .70% | | .71% | | .70% | | .71% |
| Net investment income (loss) | | 5.19% | | 4.53% | | 5.11% | | 5.28% | | 5.30% |
| Supplemental Data | | | | | | | | | | |
| Net assets, end of period (000 omitted) | $ | 336,906 | $ | 441,896 | $ | 431,557 | $ | 462,593 | $ | 391,173 |
Portfolio turnover rate G | | 32% | | 66% | | 72% | | 30% | | 69% |
A Calculated based on average shares outstanding during the period.
B Net investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any mutual funds or ETFs is not included in the Fund's net investment income (loss) ratio.
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. For additional expense information related to investments in Fidelity Direct Lending Fund, LP, please refer to the Investment in Fidelity Direct Lending Fund, LP 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).
For the period ended December 31, 2022
1. Organization.
VIP High Income Portfolio (the Fund) is a fund of Variable Insurance Products Fund (the Trust) and is authorized to issue an unlimited number of shares. 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. Shares of the Fund may only be purchased by insurance companies for the purpose of funding variable annuity or variable life insurance contracts. The Fund offers the following classes of shares: Initial Class 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.
2. Investments in Fidelity Central Funds.
Funds may 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 Schedule of Investments lists any Fidelity Central Funds held as an investment as of period end, but does not include the underlying holdings of each Fidelity Central Fund. An investing fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
Based on its investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the investing fund. These strategies are consistent with the investment objectives of the investing fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the investing fund.
| Fidelity Central Fund | Investment Manager | Investment Objective | Investment Practices | Expense Ratio A |
| Fidelity Money Market Central Funds | Fidelity Management & Research Company LLC (FMR) | Each fund seeks to obtain a high level of current income consistent with the preservation of capital and liquidity. | Short-term Investments | Less than .005% |
A Expenses expressed as a percentage of average net assets and are as of each underlying Central Fund's most recent annual or semi-annual shareholder report.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including investment valuation policies) of those funds, and are not covered by the Report of Independent Registered Public Accounting Firm, are available on the Securities and Exchange Commission website or upon request.
3. Investment in Fidelity Direct Lending Fund, LP.
The Fund invests in Fidelity Direct Lending Fund, LP, which is a limited partnership available only to certain investment companies managed by the investment adviser and its affiliates. The Fund's limited partnership interest is not registered under the Securities Act of 1933, and is subject to substantial restrictions on transfer. The Fund has no redemption rights under the partnership agreement. There will be no trading market for the partnership interest, and the Fund most likely will hold its interest until Fidelity Direct Lending Fund, LP converts by operation of law to a Delaware corporation, trust, or other limited liability entity and (i) registers as a closed-end management investment company under the 1940 Act or (ii) elects to be treated as a business development company under the 1940 Act.
Based on its investment objective, Fidelity Direct Lending Fund, LP may invest or participate in various investments or strategies that are similar to those in which the Fund may invest or participate. These strategies are consistent with the investment objectives of the Fund and may involve certain economic risks which may cause a decline in value of Fidelity Direct Lending Fund, LP and thus a decline in the value of the Fund. The Fidelity Direct Lending Fund, LP intends to invest primarily in direct loans made to private U.S. companies, specifically small- and middle-market companies.
The Schedule of Investments lists Fidelity Direct Lending Fund, LP as an investment as of period end, but does not include the underlying holdings of Fidelity Direct Lending Fund, LP. Fidelity Direct Lending Fund, LP represented less than 5% of the Fund's net assets at period end. The Fund indirectly bears its proportionate share of the expenses of Fidelity Direct Lending Fund, LP, which commenced operations on December 9, 2021. The annualized expense ratio for Fidelity Direct Lending Fund, LP for the period ended April 30, 2022 was .07%.
4. Significant Accounting Policies.
The 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 Fund's Schedule of Investments lists any underlying mutual funds or exchange-traded funds (ETFs) but does not include the underlying holdings of these funds. The following summarizes the significant accounting policies of the Fund:
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 designated the Fund's investment adviser as the valuation designee responsible for the fair valuation function and performing fair value determinations as needed. The investment adviser has established a Fair Value Committee (the Committee) to carry out the day-to-day fair valuation responsibilities and has adopted policies and procedures to govern the fair valuation process and the activities of the Committee. In accordance with these fair valuation policies and procedures, which have been approved by the Board, the Fund attempts to obtain prices from one or more third party pricing services 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 the policies and procedures. Factors used in determining fair value vary by investment type and may include market or investment specific events, transaction data, estimated cash flows, and market observations of comparable investments. The frequency that the fair valuation procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee manages the Fund's fair valuation practices and maintains the fair valuation policies and procedures. The Fund's investment adviser reports to the Board information regarding the fair valuation process and related material matters.
The 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 - unadjusted 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 the Fund's investments by major category are as follows:
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing services or from brokers who make markets in such securities. Corporate bonds and bank loan obligations are valued by pricing services 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 services. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances. The Fund invests a significant portion of its assets in below investment grade securities. The value of these securities can be more volatile due to changes in the credit quality of the issuer and is sensitive to changes in economic, market and regulatory conditions.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy. Securities, including private placements or other restricted securities, for which observable inputs are not available are valued using alternate valuation approaches, including the market approach, the income approach and cost approach, and are categorized as Level 3 in the hierarchy. The market approach considers factors including the price of recent investments in the same or a similar security or financial metrics of comparable securities. The income approach considers factors including expected future cash flows, security specific risks and corresponding discount rates. The cost approach considers factors including the value of the security's underlying assets and liabilities.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Fidelity Direct Lending Fund, LP is valued using NAV as a practical expedient in accordance with the specialized accounting guidance for investment companies.
The following provides information on Level 3 securities held by the Fund that were valued at period end based on unobservable inputs. These amounts exclude valuations provided by a broker and valuations using NAV as a practical expedient.
| Asset Type | Fair Value | Valuation Technique(s) | Unobservable Input | Amount or Range/Weighted Average | Impact to Valuation from an Increase in Input A |
| Equities | $8,502,873 | Market comparable | Enterprise value/EBITDA multiple (EV/EBITDA) | 2.5 - 3.0/2.7 | Increase |
| | | | Daily production multiple ($/Barrels of oil equivilent per day) | $21,500.00 | Increase |
| | | | Enterprise value/PV-10 multiple (EV/PV-10) | 0.7 | Increase |
| | | | Enterprise value/Proved reserves multiple (EV/PR) | 5.1 | Increase |
| | | Market approach | Parity price | $12.35 | Increase |
| | | Discounted cash flow | Discount rate | 10.0% | Decrease |
| | | | Reserve risk rate | 50.0%-95.0%/72.5% | Increase |
| Corporate Bonds | $11,280,376 | Market comparable | Enterprise value/EBITDA multiple (EV/EBITDA) | 2.5 | Increase |
| | | | Daily production multiple ($/Barrels of oil equivilent per day) | $21,500.00 | Increase |
| | | | Enterprise value/PV-10 multiple (EV/PV-10) | 0.7 | Increase |
| | | | Enterprise value/Proved reserves multiple (EV/PR) | 5.1 | Increase |
| | | Recovery value | Recovery value | $0.00 | Increase |
| | | Discounted cash flow | Discount rate | 10.0% | Decrease |
| | | | Reserve risk rate | 50.0%-95.0%/72.5% | Increase |
| Bank Loan Obligations | $2,612,837 | Recovery value | Recovery value | $0.00 | Increase |
| | | Indicative market price | Evaluated bid | $35.00-$95.25/$82.59 | Increase |
| | | | | | |
A Represents the directional change in the fair value of the Level 3 investments that could have resulted from an increase in the corresponding input as of period end. A decrease to the unobservable input would have had the opposite effect. Significant changes in these inputs may have resulted in a significantly higher or lower fair value measurement at period end.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of December 31, 2022, as well as a roll forward of Level 3 investments, is included at the end of the Fund's Schedule of Investments.
Investment Transactions and Income. For financial reporting purposes, the Fund's 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 and include proceeds received from litigation. Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of a fund include an amount in addition to trade execution, which may be rebated back to a fund. Any such rebates are included in net realized gain (loss) on investments in the Statement of Operations. 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 Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of a 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 a fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred, as applicable. Certain expense reductions may also differ by class, if applicable. 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 that fund and do not include any expenses associated with any underlying mutual funds or exchange-traded funds. Although not included in a fund's expenses, a fund indirectly bears its proportionate share of these expenses through the net asset value of each underlying mutual fund or exchange-traded fund. 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, the 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, 2022, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the 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. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The 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.
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 market discount, partnerships, capital loss carryforwards 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:
| Gross unrealized appreciation | $19,245,686 |
| Gross unrealized depreciation | (129,554,966) |
| Net unrealized appreciation (depreciation) | $(110,309,280) |
| Tax Cost | $842,782,449 |
The tax-based components of distributable earnings as of period end were as follows:
| Undistributed ordinary income | $114,240 |
| Capital loss carryforward | $(109,633,748) |
| Net unrealized appreciation (depreciation) on securities and other investments | $(110,309,280) |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of fiscal period end and is subject to adjustment.
Short-term | $(48,034,496) |
Long-term | (61,599,252) |
| Total capital loss carryforward | $(109,633,748) |
The tax character of distributions paid was as follows:
| | December 31, 2022 | December 31, 2021 |
| Ordinary Income | $40,140,205 | $51,264,851 |
Restricted Securities (including Private Placements). Funds may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities held at period end is included at the end of the Schedule of Investments, if applicable.
Loans and Other Direct Debt Instruments. Direct debt instruments are interests in amounts owed to lenders by corporate or other borrowers. These instruments may be in the form of loans, trade claims or other receivables and may include standby financing commitments such as revolving credit facilities that obligate a fund to supply additional cash to the borrower on demand. Loans may be acquired through assignment, participation, or may be made directly to a borrower. Such instruments are presented in the Bank Loan Obligations section in the Schedule of Investments. Certain funds may also invest in unfunded loan commitments, which are contractual obligations for future funding. Information regarding unfunded commitments is included at the end of the Schedule of Investments, if applicable.
Commitments. A commitment is an agreement to acquire an investment at a future date (subject to conditions) in connection with a potential public or non-public offering. The amount of commitments outstanding at period end are presented in the table below. These commitments are not included in the net assets of the Fund at period end.
| | Investment to be Acquired | Commitment Amount |
| VIP High Income Portfolio | Fidelity Direct Lending Fund, LP | $4,274,332 |
New Accounting Pronouncement. In June 2022, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2022-03 Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions . The amendments in this ASU clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. They also clarify that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. They also require additional disclosures for equity securities subject to contractual sale restrictions. ASU 2022-03 will be effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2023. Management is currently evaluating the potential impact of ASU 2022-03 to the financial statements.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, as applicable, are noted in the table below.
| | Purchases ($) | Sales ($) |
| VIP High Income Portfolio | 244,274,641 | 350,217,254 |
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company LLC (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and an annualized group fee rate that averaged .10% during the period. The group fee rate is based upon the monthly average net assets of a group of registered investment companies with which the investment adviser has management contracts. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annual management fee rate was .55% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has 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 re-allowed to insurance companies for the distribution of shares and providing shareholder support services, were as follows:
| Service Class | $49,533 |
| Service Class 2 | 340,320 |
| | $389,853 |
Transfer Agent Fees. Fidelity Investments Institutional Operations Company LLC (FIIOC), an affiliate of the investment adviser, is the Fund's transfer, dividend disbursing, and shareholder servicing agent. FIIOC receives an asset-based fee with respect to each class. Each class pays a fee for transfer agent services, typesetting and printing and mailing of shareholder reports, excluding mailing of proxy statements. For the period, transfer agent fees for each class were as follows:
| | Amount | % of Class-Level Average Net Assets |
| Initial Class | $177,252 | .07 |
| Service Class | 33,683 | .07 |
| Service Class 2 | 92,567 | .07 |
| Investor Class | 372,430 | .10 |
| | $675,932 | |
Accounting Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. For the period, the fees were equivalent to the following annual rates:
| | % of Average Net Assets |
| VIP High Income Portfolio | .04 |
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:
| | Amount |
| VIP High Income Portfolio | $49 |
Interfund Lending Program. Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (the SEC), the 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 the 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 Rate | Interest Expense |
| VIP High Income Portfolio | Borrower | $ 7,865,000 | .32% | $344 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Any interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note. Interfund trades during the period are noted in the table below.
| | Purchases ($) | Sales ($) | Realized Gain (Loss) ($) |
| VIP High Income Portfolio | 716,247 | 730,431 | 15,663 |
6. Committed Line of Credit.
Certain Funds participate with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which are reflected in Miscellaneous expenses on the Statement of Operations, and are listed below. During the period, there were no borrowings on this line of credit.
| | Amount |
| VIP High Income Portfolio | $1,482 |
7. Security Lending.
Funds lend portfolio securities from time to time in order to earn additional income. Lending agents are used, including National Financial Services (NFS), an affiliate of the investment adviser. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of a fund's daily lending revenue, for its services as lending agent. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, a fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of a fund and any additional required collateral is delivered to a fund on the next business day. A fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund may apply collateral received from the borrower against the obligation. A fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Affiliated security lending activity, if any, was as follows:
| | Total Security Lending Fees Paid to NFS | Security Lending Income From Securities Loaned to NFS | Value of Securities Loaned to NFS at Period End |
| VIP High Income Portfolio | $3,220 | $3 | $- |
8. Expense Reductions.
Through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, custodian credits reduced the Fund's expenses by $541.
In addition, during the period the investment adviser or an affiliate reimbursed and/or waived a portion of fund-level operating expenses in the amount of $14,761.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| | Year ended December 31, 2022 | Year ended December 31, 2021 |
| VIP High Income Portfolio | | |
| Distributions to shareholders | | |
| Initial Class | $12,725,157 | $16,578,946 |
| Service Class | 2,297,407 | 2,827,038 |
| Service Class 2 | 6,951,637 | 8,286,498 |
| Investor Class | 18,166,004 | 23,572,369 |
Total | $40,140,205 | $51,264,851 |
10. Share Transactions.
Transactions for each class of shares were as follows and may contain in-kind transactions:
| | Shares | Shares | Dollars | Dollars |
| | Year ended December 31, 2022 | Year ended December 31, 2021 | Year ended December 31, 2022 | Year ended December 31, 2021 |
| VIP High Income Portfolio | | | | |
| Initial Class | | | | |
| Shares sold | 8,972,527 | 6,582,111 | $ 43,454,864 | $35,316,676 |
| Reinvestment of distributions | 2,812,389 | 3,175,763 | 12,725,094 | 16,578,946 |
| Shares redeemed | (17,891,419) | (9,420,357) | (86,649,158) | (50,485,840) |
| Net increase (decrease) | (6,106,503) | 337,517 | $(30,469,200) | $1,409,782 |
| Service Class | | | | |
| Shares sold | 9,351,371 | 5,935,782 | $44,866,682 | $31,370,807 |
| Reinvestment of distributions | 512,294 | 546,572 | 2,297,407 | 2,827,038 |
| Shares redeemed | (10,213,228) | (6,270,913) | (47,686,210) | (33,538,593) |
| Net increase (decrease) | (349,563) | 211,441 | $(522,121) | $659,252 |
| Service Class 2 | | | | |
| Shares sold | 14,698,776 | 12,586,111 | $67,799,017 | $64,381,008 |
| Reinvestment of distributions | 1,607,586 | 1,658,903 | 6,951,637 | 8,286,498 |
| Shares redeemed | (19,191,491) | (14,557,956) | (88,751,788) | (74,483,522) |
| Net increase (decrease) | (2,885,129) | (312,942) | $(14,001,134 | $(1,816,016) |
| Investor Class | | | | |
| Shares sold | 15,127,519 | 11,138,508 | $ 72,075,364 | $ 59,901,440 |
| Reinvestment of distributions | 4,041,803 | 4,549,245 | 18,165,818 | 23,572,369 |
| Shares redeemed | (26,866,685) | (12,883,556) | (128,716,412) | (69,039,298) |
| Net increase (decrease) | (7,697,363) | 2,804,197 | $(38,475,230) | $14,434,511 |
11. Other.
A fund's 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 fund. In the normal course of business, a fund may also enter into contracts that provide general indemnifications. A fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against a fund. The risk of material loss from such claims is considered remote.
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 were owners of record of more than 10% of the outstanding shares as follows:
| Fund | Affiliated % | Number ofUnaffiliated Shareholders | Unaffiliated Shareholders % |
| VIP High Income Portfolio | 51% | 1 | 12% |
12. Risk and Uncertainties.
Many factors affect a fund's performance. Developments that disrupt global economies and financial markets, such as pandemics, epidemics, outbreaks of infectious diseases, war, terrorism, and environmental disasters, may significantly affect a fund's investment performance. The effects of these developments to a fund will be impacted by the types of securities in which a fund invests, the financial condition, industry, economic sector, and geographic location of an issuer, and a fund's level of investment in the securities of that issuer.
To the Board of Trustees of Variable Insurance Products Fund and Shareholders of VIP High Income Portfolio
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of VIP High Income Portfolio (one of the funds constituting Variable Insurance Products Fund, referred to hereafter as the "Fund") as of December 31, 2022, the related statement of operations for the year ended December 31, 2022, the statement of changes in net assets for each of the two years in the period ended December 31, 2022, including the related notes, and the financial highlights for each of the five years in the period ended December 31, 2022 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of December 31, 2022, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended December 31, 2022 and the financial highlights for each of the five years in the period ended December 31, 2022 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's 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 Fund 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, 2022 by correspondence with the custodian, issuers of privately offered securities, agent banks 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 opinion.
/s/ PricewaterhouseCoopers LLP
Boston, Massachusetts
February 17, 2023
We have served as the auditor of one or more investment companies in the Fidelity group of funds since 1932.
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Jonathan Chiel, each of the Trustees oversees 318 funds. Mr. Chiel oversees 186 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 fund 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.
The 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 the 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 fund, is provided below.
Board Structure and Oversight Function. Robert A. Lawrence is an interested person and currently serves as Chair. The Trustees have determined that an interested Chair is appropriate and benefits shareholders because an interested Chair has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chair, 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 Chair 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. David M. Thomas serves as Lead Independent Trustee 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 fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and other equity funds. The asset allocation funds may invest in Fidelity ® funds overseen by the fund's Board. 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, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's 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 fund's 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 fund are carried out by or through FMR, its affiliates, and other service providers, the fund's 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 fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's 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.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Jonathan Chiel (1957)
Year of Election or Appointment: 2016
Trustee
Mr. Chiel also serves as Trustee of other Fidelity ® funds. Mr. Chiel is Executive Vice President and General Counsel for FMR LLC (diversified financial services company, 2012-present). Previously, Mr. Chiel served as general counsel (2004-2012) and senior vice president and deputy general counsel (2000-2004) for John Hancock Financial Services; a partner with Choate, Hall & Stewart (1996-2000) (law firm); and an Assistant United States Attorney for the United States Attorney's Office of the District of Massachusetts (1986-95), including Chief of the Criminal Division (1993-1995). Mr. Chiel is a director on the boards of the Boston Bar Foundation and the Maimonides School.
Bettina Doulton (1964)
Year of Election or Appointment: 2021
Trustee
Ms. Doulton also serves as Trustee of other Fidelity ® funds. Prior to her retirement, Ms. Doulton served in a variety of positions at Fidelity Investments, including as a managing director of research (2006-2007), portfolio manager to certain Fidelity ® funds (1993-2005), equity analyst and portfolio assistant (1990-1993), and research assistant (1987-1990). Ms. Doulton currently owns and operates Phi Builders + Architects and Cellardoor Winery. Previously, Ms. Doulton served as a member of the Board of Brown Capital Management, LLC (2014-2018).
Robert A. Lawrence (1952)
Year of Election or Appointment: 2020
Trustee
Chair of the Board of Trustees
Mr. Lawrence also serves as Trustee of other funds. Previously, Mr. Lawrence served as a Trustee and Member of the Advisory Board of certain funds. Prior to his retirement in 2008, Mr. Lawrence served as Vice President of certain Fidelity ® funds (2006-2008), Senior Vice President, Head of High Income Division of Fidelity Management & Research Company (investment adviser firm, 2006-2008), and President of Fidelity Strategic Investments (investment adviser firm, 2002-2005).
* 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 the 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+
Thomas P. Bostick (1956)
Year of Election or Appointment: 2021
Trustee
Lieutenant General Bostick also serves as Trustee of other Fidelity ® funds. Prior to his retirement, General Bostick (United States Army, Retired) held a variety of positions within the U.S. Army, including Commanding General and Chief of Engineers, U.S. Army Corps of Engineers (2012-2016) and Deputy Chief of Staff and Director of Human Resources, U.S. Army (2009-2012). General Bostick currently serves as a member of the Board and Finance and Governance Committees of CSX Corporation (transportation, 2020-present) and a member of the Board and Corporate Governance and Nominating Committee of Perma-Fix Environmental Services, Inc. (nuclear waste management, 2020-present). General Bostick serves as Chief Executive Officer of Bostick Global Strategies, LLC (consulting, 2016-present) and as a member of the Board of HireVue, Inc. (video interview and assessment, 2020-present). Previously, General Bostick served as a Member of the Advisory Board of certain Fidelity® funds (2021), President, Intrexon Bioengineering (2018-2020) and Chief Operating Officer (2017-2020) and Senior Vice President of the Environment Sector (2016-2017) of Intrexon Corporation (biopharmaceutical company).
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity ® funds. Prior to his retirement in May 2003, Mr. Dirks served as Chief Operating Officer and as a member of the Board of The Depository Trust & Clearing Corporation (financial markets infrastructure), President, Chief Operating Officer and a member of the Board of The Depository Trust Company (DTC), President and a member of the Board of the National Securities Clearing Corporation (NSCC), Chief Executive Officer and a member of the Board of the Government Securities Clearing Corporation and Chief Executive Officer and a member of the Board of the Mortgage-Backed Securities Clearing Corporation. Mr. Dirks currently serves as a member of the Finance Committee (2016-present) and Board (2017-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as Trustee of other Fidelity ® funds. Mr. Donahue serves as President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006) and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue currently serves as a member (2007-present) and Co-Chairman (2016-present) of the Board of United Way of New York and a member of the Board of The Leadership Academy (previously NYC Leadership Academy) (2012-present). Mr. Donahue previously served as a member of the Advisory Board of certain Fidelity® funds (2015-2018).
Vicki L. Fuller (1957)
Year of Election or Appointment: 2020
Trustee
Ms. Fuller also serves as Trustee of other Fidelity ® funds. Previously, Ms. Fuller served as a member of the Advisory Board of certain Fidelity ® funds (2018-2020), Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006). Ms. Fuller currently serves as a member of the Board, Audit Committee and Nominating and Governance Committee of two Blackstone business development companies (2020-present), as a member of the Board of Treliant, LLC (consulting, 2019-present), as a member of the Advisory Board of Ariel Alternatives, LLC (private equity, 2021-present) and as a member of the Board and Chair of the Audit Committee of Gusto, Inc. (software, 2021-present). In addition, Ms. Fuller currently serves as a member of the Board of Roosevelt University (2019-present) and as a member of the Executive Board of New York University's Stern School of Business. Ms. Fuller previously served as a member of the Board, Audit Committee and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-2021).
Patricia L. Kampling (1959)
Year of Election or Appointment: 2020
Trustee
Ms. Kampling also serves as Trustee of other Fidelity ® funds. Prior to her retirement, Ms. Kampling served as Chairman of the Board and Chief Executive Officer (2012-2019), President and Chief Operating Officer (2011-2012) and Executive Vice President and Chief Financial Officer (2010-2011) of Alliant Energy Corporation. Ms. Kampling currently serves as a member of the Board, Finance Committee and Governance, Compensation and Nominating Committee of Xcel Energy Inc. (utilities company, 2020-present) and as a member of the Board, Audit, Finance and Risk Committee and Safety, Environmental, Technology and Operations Committee and Chair of the Executive Development and Compensation Committee of American Water Works Company, Inc. (utilities company, 2019-present). In addition, Ms. Kampling currently serves as a member of the Board of the Nature Conservancy, Wisconsin Chapter (2019-present). Previously, Ms. Kampling served as a Member of the Advisory Board of certain Fidelity® funds (2020), a member of the Board, Compensation Committee and Executive Committee and Chair of the Audit Committee of Briggs & Stratton Corporation (manufacturing, 2011-2021), a member of the Board of Interstate Power and Light Company (2012-2019) and Wisconsin Power and Light Company (2012-2019) (each a subsidiary of Alliant Energy Corporation) and as a member of the Board and Workforce Development Committee of the Business Roundtable (2018-2019).
Thomas A. Kennedy (1955)
Year of Election or Appointment: 2021
Trustee
Mr. Kennedy also serves as Trustee of other Fidelity ® funds. Previously, Mr. Kennedy served as a Member of the Advisory Board of certain Fidelity ® funds (2020) and held a variety of positions at Raytheon Company (aerospace and defense, 1983-2020), including Chairman and Chief Executive Officer (2014-2020) and Executive Vice President and Chief Operating Officer (2013-2014). Mr. Kennedy currently serves as Executive Chairman of the Board of Directors of Raytheon Technologies Corporation (aerospace and defense, 2020-present). He is also a member of the Rutgers School of Engineering Industry Advisory Board (2011-present) and a member of the UCLA Engineering Dean's Executive Board (2016-present).
Oscar Munoz (1959)
Year of Election or Appointment: 2021
Trustee
Mr. Munoz also serves as Trustee of other Fidelity ® funds. Prior to his retirement, Mr. Munoz served as Executive Chairman (2020-2021), Chief Executive Officer (2015-2020), President (2015-2016) and a member of the Board (2010-2021) of United Airlines Holdings, Inc. Mr. Munoz currently serves as a member of the Board of CBRE Group, Inc. (commercial real estate, 2020-present), a member of the Board of Univision Communications, Inc. (Hispanic media, 2020-present) and a member of the Advisory Board of Salesforce.com, Inc. (cloud-based software, 2020-present). Previously, Mr. Munoz served as a Member of the Advisory Board of certain Fidelity ® funds (2021).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Lead Independent Trustee
Mr. Thomas also serves as Trustee of other Fidelity ® funds. Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions). Mr. Thomas currently serves as a member of the Board of Fortune Brands Home and Security (home and security products, 2004-present) and as Director (2013-present) and Non-Executive Chairman of the Board (2022-present) of Interpublic Group of Companies, Inc. (marketing communication).
Susan Tomasky (1953)
Year of Election or Appointment: 2020
Trustee
Ms. Tomasky also serves as Trustee of other Fidelity ® funds. Prior to her retirement, Ms. Tomasky served in various executive officer positions at American Electric Power Company, Inc. (1998-2011), including most recently as President of AEP Transmission (2007-2011). Ms. Tomasky currently serves as a member of the Board and Sustainability Committee and as Chair of the Audit Committee of Marathon Petroleum Corporation (2018-present) and as a member of the Board, Executive Committee, Corporate Governance Committee and Organization and Compensation Committee and as Chair of the Audit Committee of Public Service Enterprise Group, Inc. (utilities company, 2012-present) and as a member of the Board of its subsidiary company, Public Service Electric and Gas Co. (2021-present). In addition, Ms. Tomasky currently serves as a member (2009-present) and President (2020-present) of the Board of the Royal Shakespeare Company - America (2009-present), as a member of the Board of the Columbus Association for the Performing Arts (2011-present) and as a member of the Board and Kenyon in the World Committee of Kenyon College (2016-present). Previously, Ms. Tomasky served as a Member of the Advisory Board of certain Fidelity ® funds (2020), as a member of the Board of the Columbus Regional Airport Authority (2007-2020), as a member of the Board (2011-2018) and Lead Independent Director (2015-2018) of Andeavor Corporation (previously Tesoro Corporation) (independent oil refiner and marketer) and as a member of the Board of Summit Midstream Partners LP (energy, 2012-2018).
Michael E. Wiley (1950)
Year of Election or Appointment: 2020
Trustee
Mr. Wiley also serves as Trustee of other Fidelity ® funds. Previously, Mr. Wiley served as a member of the Advisory Board of certain Fidelity ® funds (2018-2020), Chairman, President and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004). Mr. Wiley also previously served as a member of the Board of Andeavor Corporation (independent oil refiner and marketer, 2005-2018), a member of the Board of Andeavor Logistics LP (natural resources logistics, 2015-2018) and a member of the Board of High Point Resources (exploration and production, 2005-2020).
+ 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 the fund.
Advisory Board Members and Officers:
Correspondence intended for a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as a Member of the Advisory Board of other Fidelity ® funds. Mr. Lynch is Vice Chairman and a Director of Fidelity Management & Research Company LLC (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served as Vice Chairman and a Director of FMR Co., Inc. (investment adviser firm) and on the Special Olympics International Board of Directors (1997-2006).
Craig S. Brown (1977)
Year of Election or Appointment: 2022
Deputy Treasurer
Mr. Brown also serves as an officer of other funds. Mr. Brown serves as Assistant Treasurer of FIMM, LLC (2021-present) and is an employee of Fidelity Investments (2013-present). Previously, Mr. Brown served as Assistant Treasurer of certain Fidelity ® funds (2019-2022).
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).
William C. Coffey (1969)
Year of Election or Appointment: 2019
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Secretary and CLO of certain funds (2018-2019); CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-2019); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-2019); CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-2019); and Assistant Secretary of certain funds (2009-2018).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2018
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Co-Head of Equity (2018-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Executive Vice President of Fidelity SelectCo, LLC (2019), Head of Global Equity Research (2016-2018), Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as an officer of other funds. Mr. Davis serves as Assistant Treasurer of FIMM, LLC (2021-present), FMR Capital, Inc. (2017-present), FD Funds GP LLC (2021-present), FD Funds Holding LLC (2021-present), and FD Funds Management LLC (2021-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
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato serves as Assistant Treasurer of FIMM, LLC (2021-present) and 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)
Year of Election or Appointment: 2020
Assistant Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FIMM, LLC (2021-present) and 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).
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as Vice President of other funds. Ms. Holding serves as Co-Head of Equity (2018-present) and is an employee of Fidelity Investments (2013-present). Previously, Ms. Holding served as Executive Vice President of Fidelity SelectCo, LLC (2019) and as Chief Investment Officer of Fidelity Institutional Asset Management (2013-2018).
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); CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2019-present); Secretary of FD Funds GP LLC (2021-present), FD Funds Holding LLC (2021-present), FD Funds Management LLC (2021-present), and Fidelity Diversifying Solutions LLC (investment adviser firm, 2022-present); and Assistant Secretary of FIMM, LLC (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)
Year of Election or Appointment: 2020
Deputy Treasurer
Mr. Maher also serves as an officer of other funds. Mr. Maher serves as Assistant Treasurer of FIMM, LLC (2021-present) and 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).
Jason P. Pogorelec (1975)
Year of Election or Appointment: 2020
Chief Compliance Officer
Mr. Pogorelec also serves as Chief Compliance Officer of other funds. Mr. Pogorelec is a senior Vice President of Asset Management Compliance for Fidelity Investments and is an employee of Fidelity Investments (2006-present). Previously, Mr. Pogorelec served as Vice President, Associate General Counsel for Fidelity Investments (2010-2020) and Assistant Secretary of certain Fidelity ® funds (2015-2020).
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)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FIMM, LLC (2021-present) and 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.
Jim Wegmann (1979)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Wegmann also serves as an officer of other funds. Mr. Wegmann serves as Assistant Treasurer of FIMM, LLC (2021-present) and is an employee of Fidelity Investments (2011-present). Previously, Mr. Wegmann served as Assistant Treasurer of certain Fidelity ® funds (2019-2021).
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, 2022 to December 31, 2022). |
Actual Expenses
The 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 Purposes
The 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 comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| | | | | Annualized Expense Ratio- A | | Beginning Account Value July 1, 2022 | | Ending Account Value December 31, 2022 | | Expenses Paid During Period- C July 1, 2022 to December 31, 2022 |
| VIP High Income Portfolio | | | | | | | | | | |
| Initial Class | | | | .72% | | | | | | |
| Actual | | | | | | $ 1,000 | | $ 1,033.60 | | $ 3.69 |
Hypothetical- B | | | | | | $ 1,000 | | $ 1,021.58 | | $ 3.67 |
| Service Class | | | | .82% | | | | | | |
| Actual | | | | | | $ 1,000 | | $ 1,030.40 | | $ 4.20 |
Hypothetical- B | | | | | | $ 1,000 | | $ 1,021.07 | | $ 4.18 |
| Service Class 2 | | | | .97% | | | | | | |
| Actual | | | | | | $ 1,000 | | $ 1,030.40 | | $ 4.96 |
Hypothetical- B | | | | | | $ 1,000 | | $ 1,020.32 | | $ 4.94 |
| Investor Class | | | | .75% | | | | | | |
| Actual | | | | | | $ 1,000 | | $ 1,033.60 | | $ 3.84 |
Hypothetical- B | | | | | | $ 1,000 | | $ 1,021.42 | | $ 3.82 |
| |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B 5% return per year before expenses
C Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/ 365 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
The dividend and capital gains distributions for the fund(s) are available on Fidelity.com or Institutional.Fidelity.com.
The fund designates $43,564,361 of distributions paid in the calendar year 2021 as qualifying to be taxed as section 163(j) interest dividends.
1.540029.125
VIPHI-ANN-0323
Fidelity® Variable Insurance Products:
Floating Rate High Income Portfolio
Annual Report
December 31, 2022
Contents
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. © 2023 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund 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 GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Average 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 |
| | | | |
Periods ended December 31, 2022 | Past 1 year | Past 5 years | Life of Fund A |
| Initial Class | -0.52% | 3.17% | 3.17% |
| Investor Class | -0.46% | 3.14% | 3.14% |
A From April 09, 2014
| $10,000 Over Life of Fund |
| |
Let's say hypothetically that $10,000 was invested in VIP Floating Rate High Income Portfolio - Initial Class, a class of the fund, on April 09, 2014, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Morningstar® LSTA® US Performing Loans performed over the same period. |
|
|
Effective August, 29, 2022, the S&P ® /LSTA Leveraged Performing Loan Index was re-branded as Morningstar ® LSTA ® US Performing Loans.
Market Recap:
Floating-rate bank loans returned -0.61% for the 12 months ending December 31, 2022, as measured by the Morningstar LSTA ® US Performing Loans. Despite the negative performance, loans outpaced nearly all other fixed-income categories in a turbulent period of rising interest rates and widening credit spreads. After starting the year on a positive note, loan prices turned lower in February, reflecting a retreat from risk assets amid Russia's invasion of Ukraine. Following marginal upswings in March and April, the market context changed markedly in May. Loans declined sharply amid mounting concerns about rising inflation, higher interest rates and tighter monetary policy. The asset class fell further in June, as investors shifted their focus to risks of slowing economic growth. Loans rebounded robustly in July and August on expectations for a shallower tightening cycle from the U.S. Federal Reserve, better-than-expected corporate earnings growth and low supply. The strong run stalled in September, however, as investors concluded that tightening monetary conditions could push the U.S. economy into a recession. Loans rallied during the fourth quarter of 2022, boosted by easing inflation concerns and a continuation of generally favorable corporate earnings. About half the groups in the fund's benchmark posted gains. Oil & gas (+7%), utilities (+6%) and air transport (+3%) notably outperformed, while home furnishings (-11%), all telecom (-5%) and health care (-4%) were the biggest laggards. Lower-quality loans trailed the index, reflecting investor risk aversion in 2022.
Comments from Co-Managers Eric Mollenhauer, Kevin Nielsen, and Chandler Perine:
For the fiscal year ending December 31, 2022, the fund's share classes returned roughly -1%, performing roughly in line with the -0.61% result of the benchmark Morningstar LSTA ® US Performing Loans Index. The fund's core allocation to floating-rate leveraged loans returned -0.18% and contributed to performance versus the benchmark. By industry, the primary relative contributors were security selection and an underweighting in the electronics/electrical group. Also lifting the fund's relative result were favorable picks and an overweighting in the oil & gas segment, along with an underweighting and investment choices in health care. Lastly, the fund's position in cash was a notable contributor. Our top individual relative contributor was a non-benchmark stake in Chesapeake Energy (+63%), followed by our decision to avoid Envision Healthcare, a benchmark component that returned -57%. Further aiding the portfolio's relative result was a non-benchmark stake in Murray Energy (+89%). Conversely, the fund's largest relative detractor was security selection in the leisure goods/activities/movies category. An overweighting in home furnishings and subpar picks in insurance also hurt relative performance. The biggest individual relative detractor was an overweight position in Asurion (-9%), which was among the largest holdings in the fund at year-end. Also weighing on performance was an outsized stake in Diamond Sports, which returned roughly -51%. Further hampering the portfolio's relative return was an overweighting in Securus Technologies, which returned -20%. By quality, security selection among non-rated bonds added the most value versus the benchmark, while investment choices among BB-rated bonds hurt the most.
Note to shareholders:
On October 1, 2022, Chandler Perine assumed co-management responsibilities for the fund.
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.
| Top Bond Issuers (% of Fund's net assets) |
(with maturities greater than one year) |
| Bass Pro Group LLC | 2.7 | |
| Asurion LLC | 1.6 | |
| Intelsat Jackson Holdings SA | 1.3 | |
| Caesars Resort Collection LLC | 1.2 | |
| HUB International Ltd. | 1.1 | |
| Fertitta Entertainment LLC NV | 1.1 | |
| Athenahealth Group, Inc. | 0.9 | |
| TransDigm, Inc. | 0.9 | |
| Peraton Corp. | 0.9 | |
| Acrisure LLC | 0.9 | |
| | 12.6 | |
| |
| Market Sectors (% of Fund's net assets) |
| |
| Technology | 17.3 | |
| Services | 9.1 | |
| Healthcare | 5.2 | |
| Gaming | 4.9 | |
| Insurance | 4.8 | |
| |
Quality Diversification (% of Fund's net assets) |
|
Percentages shown as 0.0% may reflect amounts less than 0.05%. |
| |
| We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes. |
Asset Allocation (% of Fund's net assets) |
|
Foreign investments - 9.3% |
|
Showing Percentage of Net Assets
| Bank Loan Obligations - 88.8% |
| | | Principal Amount (a) | Value ($) |
| Aerospace - 0.9% | | | |
| ADS Tactical, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 5.750% 10.1387% 3/19/26 (b)(c)(d) | | 319,375 | 285,042 |
| Gemini HDPE LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.000% 7.42% 12/31/27 (b)(c)(d) | | 148,218 | 145,718 |
| TransDigm, Inc.: | | | |
| Tranche E 1LN, term loan 1 month U.S. LIBOR + 2.250% 6.9799% 5/30/25 (b)(c)(d) | | 578,797 | 571,973 |
| Tranche F 1LN, term loan 1 month U.S. LIBOR + 2.250% 6.9799% 12/9/25 (b)(c)(d) | | 1,134,691 | 1,119,463 |
| Tranche H 1LN, term loan CME Term SOFR 1 Month Index + 3.250% 7.8302% 2/14/27 (b)(c)(d) | | 125,000 | 124,391 |
TOTAL AEROSPACE | | | 2,246,587 |
| Air Transportation - 1.6% | | | |
| AAdvantage Loyalty IP Ltd. Tranche B 1LN, term loan 1 month U.S. LIBOR + 4.750% 8.9926% 4/20/28 (b)(c)(d) | | 770,000 | 765,788 |
| Air Canada Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.500% 8.13% 8/11/28 (b)(c)(d) | | 279,300 | 275,460 |
| Dynasty Acquisition Co., Inc.: | | | |
| Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.500% 7.923% 4/8/26 (b)(c)(d) | | 252,060 | 239,798 |
| Tranche B2 1LN, term loan 1 month U.S. LIBOR + 3.500% 7.923% 4/4/26 (b)(c)(d) | | 135,516 | 128,924 |
| Echo Global Logistics, Inc. 1LN, term loan 3 month U.S. LIBOR + 4.750% 9.1336% 11/23/28 (b)(c)(d)(e) | | 403,988 | 389,121 |
| Mileage Plus Holdings LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 5.250% 9.9959% 7/2/27 (b)(c)(d) | | 513,000 | 526,979 |
| SkyMiles IP Ltd. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.750% 7.9926% 10/20/27 (b)(c)(d) | | 495,000 | 503,910 |
| STG Logistics, Inc. 1LN, term loan CME Term SOFR 1 Month Index + 6.000% 10.4283% 3/24/28 (b)(c)(d) | | 253,725 | 243,576 |
| United Airlines, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.750% 8.1084% 4/21/28 (b)(c)(d) | | 948,113 | 934,422 |
TOTAL AIR TRANSPORTATION | | | 4,007,978 |
| Automotive & Auto Parts - 1.7% | | | |
| American Trailer World Corp. Tranche B 1LN, term loan CME Term SOFR 1 Month Index + 3.750% 8.173% 3/5/28 (b)(c)(d) | | 312,705 | 268,667 |
| Avis Budget Car Rental LLC 1LN, term loan CME Term SOFR 1 Month Index + 3.500% 7.923% 3/16/29 (b)(c)(d) | | 203,463 | 199,776 |
| Clarios Global LP Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.250% 7.6336% 4/30/26 (b)(c)(d) | | 386,501 | 377,967 |
| CWGS Group LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 2.500% 6.8% 6/3/28 (b)(c)(d) | | 755,646 | 697,084 |
| Driven Holdings LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.000% 7.7377% 11/17/28 (b)(c)(d) | | 104,213 | 98,481 |
| Les Schwab Tire Centers Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.250% 6.5799% 11/2/27 (b)(c)(d) | | 461,788 | 454,284 |
| PECF USS Intermediate Holding III Corp. Tranche B 1LN, term loan 1 month U.S. LIBOR + 4.250% 8.6336% 12/17/28 (b)(c)(d) | | 341,550 | 283,818 |
| Power Stop LLC 1LN, term loan 1 month U.S. LIBOR + 4.750% 9.4849% 1/26/29 (b)(c)(d) | | 416,567 | 285,348 |
| Rough Country LLC: | | | |
| 2LN, term loan 1 month U.S. LIBOR + 6.500% 11.2299% 7/28/29 (b)(c)(d) | | 100,000 | 89,667 |
| Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.500% 8.2299% 7/28/28 (b)(c)(d) | | 448,500 | 417,948 |
| RVR Dealership Holdings LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 4.000% 8.1711% 2/8/28 (b)(c)(d) | | 313,793 | 288,166 |
| Thor Industries, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.000% 7.4375% 2/1/26 (b)(c)(d) | | 252,400 | 250,507 |
| Truck Hero, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.750% 8.1336% 1/29/28 (b)(c)(d) | | 506,158 | 432,132 |
TOTAL AUTOMOTIVE & AUTO PARTS | | | 4,143,845 |
| Banks & Thrifts - 0.9% | | | |
| Citadel Securities LP Tranche B 1LN, term loan 1 month U.S. LIBOR + 2.500% 6.9375% 2/27/28 (b)(c)(d) | | 766,907 | 750,994 |
| Deerfield Dakota Holding LLC Tranche B 1LN, term loan CME Term SOFR 1 Month Index + 3.750% 8.073% 4/9/27 (b)(c)(d) | | 418,025 | 389,679 |
| LHS Borrower LLC Tranche B 1LN, term loan CME Term SOFR 1 Month Index + 4.750% 9.173% 2/18/29 (b)(c)(d) | | 526,025 | 428,053 |
| Novae LLC 1LN, term loan CME Term SOFR 1 Month Index + 5.000% 9.6963% 12/22/28 (b)(c)(d) | | 392,038 | 317,550 |
| Superannuation & Investments U.S. LLC 1LN, term loan 1 month U.S. LIBOR + 3.750% 8.1336% 12/1/28 (b)(c)(d) | | 143,550 | 140,828 |
| Walker & Dunlop, Inc.: | | | |
| Tranche B 1LN, term loan CME Term SOFR 1 Month Index + 2.250% 6.673% 12/16/28 (b)(c)(d)(e) | | 148,500 | 145,159 |
| Tranche B2 1LN, term loan CME Term SOFR 1 Month Index + 3.000% 12/14/28 (c)(d)(f) | | 105,000 | 103,425 |
TOTAL BANKS & THRIFTS | | | 2,275,688 |
| Broadcasting - 1.5% | | | |
| AppLovin Corp.: | | | |
| Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.000% 9.5% 10/25/28 (b)(c)(d) | | 148,301 | 140,516 |
| Tranche B, term loan 1 month U.S. LIBOR + 3.250% 9.5% 8/15/25 (b)(c)(d) | | 583,764 | 560,536 |
| Diamond Sports Group LLC: | | | |
| 1LN, term loan CME Term SOFR 1 Month Index + 8.000% 12.3171% 5/25/26 (b)(c)(d) | | 198,680 | 187,588 |
| 2LN, term loan CME Term SOFR 1 Month Index + 3.250% 7.5671% 8/24/26 (b)(c)(d) | | 1,616,944 | 194,033 |
| Dotdash Meredith, Inc. Tranche B 1LN, term loan CME Term SOFR 1 Month Index + 4.000% 8.224% 12/1/28 (b)(c)(d) | | 772,870 | 664,668 |
| Gray Television, Inc. Tranche D 1LN, term loan 1 month U.S. LIBOR + 3.000% 7.1201% 12/1/28 (b)(c)(d) | | 287,100 | 278,188 |
| Nexstar Broadcasting, Inc. Tranche B, term loan 1 month U.S. LIBOR + 2.500% 6.8836% 9/19/26 (b)(c)(d) | | 351,322 | 348,072 |
| Sinclair Television Group, Inc. Tranche B4 1LN, term loan CME Term SOFR 1 Month Index + 2.750% 8.173% 4/21/29 (b)(c)(d) | | 402,975 | 382,121 |
| Univision Communications, Inc.: | | | |
| Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.250% 7.6336% 1/31/29 (b)(c)(d) | | 957,763 | 927,037 |
| Tranche C 5LN, term loan 3 month U.S. LIBOR + 2.750% 7.1336% 3/15/24 (b)(c)(d) | | 71,418 | 71,254 |
TOTAL BROADCASTING | | | 3,754,013 |
| Building Materials - 2.9% | | | |
| Acproducts Holdings, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 4.250% 8.9799% 5/17/28 (b)(c)(d) | | 685,635 | 510,407 |
| APi Group DE, Inc. Tranche B 1LN, term loan: | | | |
| 1 month U.S. LIBOR + 2.500% 6.8836% 10/1/26 (b)(c)(d) | | 436,218 | 432,947 |
| 1 month U.S. LIBOR + 2.750% 7.1336% 1/3/29 (b)(c)(d) | | 324,953 | 321,866 |
| Beacon Roofing Supply, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 2.250% 6.6336% 5/19/28 (b)(c)(d) | | 246,250 | 243,748 |
| DiversiTech Holdings, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.500% 8.2299% 12/22/28 (b)(c)(d) | | 198,671 | 182,778 |
| Foley Products Co. LLC 1LN, term loan CME TERM SOFR 3 MONTH INDEX + 4.750% 9.4802% 12/29/28 (b)(c)(d) | | 243,119 | 234,408 |
| Hunter Douglas, Inc. Tranche B 1LN, term loan CME Term SOFR 1 Month Index + 3.500% 7.8588% 2/25/29 (b)(c)(d) | | 1,890,500 | 1,655,870 |
| Ingersoll-Rand Services Co. Tranche B 1LN, term loan 1 month U.S. LIBOR + 1.750% 6.173% 2/28/27 (b)(c)(d) | | 345,238 | 342,003 |
| Installed Building Products, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 2.250% 6.6336% 12/14/28 (b)(c)(d) | | 168,300 | 165,355 |
| Oscar AcquisitionCo LLC 1LN, term loan CME Term SOFR 1 Month Index + 4.500% 9.1802% 4/29/29 (b)(c)(d) | | 708,225 | 668,834 |
| Smyrna Ready Mix LLC Tranche B 1lN, term loan CME Term SOFR 1 Month Index + 4.250% 8.673% 4/1/29 (b)(c)(d) | | 144,275 | 141,029 |
| Specialty Building Products Holdings LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.250% 7.6387% 10/15/28 (b)(c)(d) | | 198,500 | 178,031 |
| SRS Distribution, Inc. Tranche B 1LN, term loan: | | | |
| 1 month U.S. LIBOR + 3.500% 7.8836% 6/4/28 (b)(c)(d) | | 834,438 | 796,145 |
| CME Term SOFR 1 Month Index + 3.500% 7.923% 6/2/28 (b)(c)(d) | | 238,200 | 227,183 |
| Standard Industries, Inc./New Jersey Tranche B 1LN, term loan 6 month U.S. LIBOR + 2.250% 6.4251% 9/22/28 (b)(c)(d) | | 223,739 | 220,783 |
| Traverse Midstream Partners Ll Tranche B, term loan CME Term SOFR 1 Month Index + 4.250% 8.7997% 9/27/24 (b)(c)(d) | | 273,685 | 272,743 |
| USIC Holdings, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.500% 7.8836% 5/7/28 (b)(c)(d) | | 256,750 | 244,601 |
| White Capital Buyer LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 4.000% 8.073% 10/19/27 (b)(c)(d) | | 245,023 | 236,536 |
TOTAL BUILDING MATERIALS | | | 7,075,267 |
| Cable/Satellite TV - 2.5% | | | |
| Charter Communication Operating LLC Tranche B2 1LN, term loan 1 month U.S. LIBOR + 1.750% 6.14% 2/1/27 (b)(c)(d) | | 1,105,882 | 1,078,434 |
| Coral-U.S. Co.-Borrower LLC Tranche B, term loan 1 month U.S. LIBOR + 2.250% 6.5679% 1/31/28 (b)(c)(d) | | 985,000 | 951,264 |
| CSC Holdings LLC Tranche B6 LN, term loan CME Term SOFR 1 Month Index + 4.500% 8.8224% 1/14/28 (c)(d) | | 1,393,266 | 1,304,446 |
| DIRECTV Financing LLC 1LN, term loan 1 month U.S. LIBOR + 5.000% 9.3836% 8/2/27 (b)(c)(d) | | 475,983 | 462,398 |
| LCPR Loan Financing LLC 1LN, term loan 1 month U.S. LIBOR + 3.750% 8.0679% 9/25/28 (b)(c)(d) | | 195,000 | 192,929 |
| Numericable LLC: | | | |
| Tranche B 11LN, term loan 3 month U.S. LIBOR + 2.750% 7.1647% 7/31/25 (b)(c)(d) | | 557,384 | 527,424 |
| Tranche B 12LN, term loan 3 month U.S. LIBOR + 3.680% 7.7666% 1/31/26 (b)(c)(d) | | 477,387 | 441,187 |
| Tranche B 13LN, term loan 3 month U.S. LIBOR + 4.000% 8.6497% 8/14/26 (b)(c)(d) | | 672,124 | 623,678 |
| Virgin Media Bristol LLC Tranche N, term loan 1 month U.S. LIBOR + 2.500% 6.8179% 1/31/28 (b)(c)(d) | | 480,000 | 471,259 |
TOTAL CABLE/SATELLITE TV | | | 6,053,019 |
| Capital Goods - 0.8% | | | |
| Ali Group North America Corp. Tranche B 1LN, term loan CME Term SOFR 1 Month Index + 2.000% 6.4375% 7/23/29 (b)(c)(d) | | 398,000 | 394,092 |
| Chart Industries, Inc. 1LN, term loan CME Term SOFR 1 Month Index + 3.750% 12/8/29 (c)(d)(f) | | 375,000 | 370,549 |
| CPM Holdings, Inc.: | | | |
| 2LN, term loan 3 month U.S. LIBOR + 8.250% 12.3701% 11/15/26 (b)(c)(d) | | 67,828 | 65,907 |
| Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.500% 7.6201% 11/15/25 (b)(c)(d) | | 278,398 | 272,830 |
| Griffon Corp. Tranche B 1LN, term loan CME Term SOFR 1 Month Index + 2.750% 7.0088% 1/24/29 (b)(c)(d) | | 376,675 | 369,379 |
| MHI Holdings LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 5.000% 9.3836% 9/20/26 (b)(c)(d) | | 251,017 | 248,193 |
| TNT Crane & Rigging LLC 2LN, term loan 3 month U.S. LIBOR + 8.750% 12.4929% 4/16/25 (b)(c)(d)(e) | | 38,367 | 35,923 |
| Vertical U.S. Newco, Inc. Tranche B 1LN, term loan 6 month U.S. LIBOR + 3.500% 6.8707% 7/31/27 (b)(c)(d) | | 220,246 | 211,575 |
TOTAL CAPITAL GOODS | | | 1,968,448 |
| Chemicals - 2.6% | | | |
| ARC Falcon I, Inc.: | | | |
| Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.750% 8.1336% 9/30/28 (b)(c)(d) | | 457,859 | 400,856 |
| Tranche DD 1LN, term loan 1 month U.S. LIBOR + 3.750% 9/30/28 (b)(c)(d)(g) | | 67,516 | 59,110 |
| Aruba Investment Holdings LLC: | | | |
| 2LN, term loan 1 month U.S. LIBOR + 7.750% 12.1387% 11/24/28 (b)(c)(d) | | 410,000 | 371,050 |
| Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.750% 8.1387% 11/24/27 (b)(c)(d) | | 334,787 | 324,466 |
| Avient Corp. Tranche B 1LN, term loan CME Term SOFR 1 Month Index + 3.250% 7.3442% 8/29/29 (b)(c)(d) | | 119,644 | 119,435 |
| Bakelite U.S. Holding Ltd. 1LN, term loan CME TERM SOFR 3 MONTH INDEX + 4.000% 8.7302% 5/27/29 (b)(c)(d) | | 338,300 | 313,773 |
| Consolidated Energy Finance SA: | | | |
| Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.500% 7.7214% 5/7/25 (b)(c)(d)(e) | | 261,025 | 248,626 |
| Tranche B, term loan 3 month U.S. LIBOR + 2.500% 6.8836% 5/7/25 (b)(c)(d) | | 340,742 | 332,649 |
| Discovery Purchaser Corp. 1LN, term loan CME Term SOFR 1 Month Index + 4.370% 7.9683% 10/4/29 (b)(c)(d) | | 505,000 | 459,171 |
| Groupe Solmax, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 4.750% 9.4799% 5/27/28 (b)(c)(d) | | 335,421 | 276,722 |
| Herens U.S. Holdco Corp. Tranche B 1LN, term loan 1 month U.S. LIBOR + 4.000% 8.7299% 7/3/28 (b)(c)(d) | | 216,719 | 198,027 |
| Hexion Holdings Corp. 1LN, term loan CME Term SOFR 1 Month Index + 4.500% 8.9345% 3/15/29 (b)(c)(d) | | 651,725 | 557,877 |
| Hexion, Inc. 2LN, term loan CME Term SOFR 1 Month Index + 7.000% 11.8586% 2/9/30 (b)(c)(d)(e) | | 170,000 | 132,600 |
| ICP Group Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.750% 8.4799% 12/29/27 (b)(c)(d) | | 167,025 | 120,091 |
| INEOS U.S. Petrochem LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 2.750% 7.1336% 1/20/26 (b)(c)(d) | | 540,606 | 530,199 |
| LSF11 Skyscraper HoldCo SARL Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.500% 8.2299% 9/30/27 (b)(c)(d) | | 702 | 684 |
| Manchester Acquisition Sub LLC Tranche B 1LN, term loan CME Term SOFR 1 Month Index + 5.750% 10.3044% 12/1/26 (b)(c)(d) | | 326,824 | 263,093 |
| Messer Industries U.S.A., Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.500% 7.2299% 3/1/26 (b)(c)(d) | | 124,504 | 123,259 |
| Olympus Water U.S. Holding Corp. Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.750% 8.5% 11/9/28 (b)(c)(d) | | 514,800 | 493,065 |
| Oxea Corp. Tranche B2, term loan 3 month U.S. LIBOR + 3.250% 7% 10/11/24 (b)(c)(d) | | 203,790 | 191,946 |
| Starfruit U.S. Holdco LLC Tranche B, term loan 1 month U.S. LIBOR + 2.750% 7.1647% 10/1/25 (b)(c)(d) | | 474,394 | 467,041 |
| The Chemours Co. LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 1.750% 6.14% 4/3/25 (b)(c)(d) | | 463,513 | 454,169 |
TOTAL CHEMICALS | | | 6,437,909 |
| Consumer Products - 2.4% | | | |
| 19Th Holdings Golf LLC Tranche B 1LN, term loan CME Term SOFR 1 Month Index + 3.250% 7.2812% 2/7/29 (b)(c)(d)(e) | | 651,725 | 596,328 |
| Aip Rd Buyer Corp. 1LN, term loan CME Term SOFR 1 Month Index + 4.250% 8.573% 12/22/28 (b)(c)(d) | | 387,075 | 374,495 |
| BCPE Empire Holdings, Inc.: | | | |
| 1LN, term loan CME Term SOFR 1 Month Index + 4.000% 8.3836% 6/11/26 (b)(c)(d) | | 411,591 | 398,407 |
| Tranche B 1LN, term loan 1 month U.S. LIBOR + 4.000% 8.3836% 6/11/26 (b)(c)(d) | | 237,600 | 230,769 |
| Bombardier Recreational Products, Inc. Tranche B 1LN, term loan: | | | |
| 1 month U.S. LIBOR + 2.000% 6.3836% 5/23/27 (b)(c)(d) | | 122,790 | 118,646 |
| CME Term SOFR 1 Month Index + 3.500% 12/8/29 (c)(d)(f) | | 445,000 | 435,544 |
| CNT Holdings I Corp. Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.500% 7.239% 11/8/27 (b)(c)(d) | | 510,900 | 493,657 |
| Diamond BC BV Tranche B 1LN, term loan 1 month U.S. LIBOR + 2.750% 7.1647% 9/29/28 (b)(c)(d) | | 321,750 | 310,489 |
| Gloves Buyer, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 4.000% 8.3836% 1/6/28 (b)(c)(d) | | 118,200 | 107,562 |
| Knowlton Development Corp., Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.750% 8.1336% 12/21/25 (b)(c)(d) | | 314,941 | 303,197 |
| Kronos Acquisition Holdings, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.750% 8.4849% 12/22/26 (b)(c)(d) | | 679,125 | 644,320 |
| Mattress Firm, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 4.250% 8.44% 9/24/28 (b)(c)(d) | | 514,059 | 436,308 |
| Petco Health & Wellness Co., Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.250% 7.8347% 3/4/28 (b)(c)(d) | | 201,413 | 195,265 |
| Runner Buyer, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 5.500% 10.2349% 10/20/28 (b)(c)(d)(e) | | 337,450 | 236,215 |
| Sweetwater Borrower LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 4.250% 8.6875% 8/5/28 (b)(c)(d) | | 299,321 | 276,872 |
| TGP Holdings III LLC: | | | |
| Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.250% 7.6336% 6/29/28 (b)(c)(d) | | 290,042 | 230,583 |
| Tranche DD 1LN, term loan 1 month U.S. LIBOR + 3.250% 5.365% 6/29/28 (b)(c)(d) | | 38,148 | 30,328 |
| TKC Holdings, Inc. 1LN, term loan 1 month U.S. LIBOR + 5.500% 9.89% 5/14/28 (b)(c)(d) | | 203,886 | 169,480 |
| Woof Holdings LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.750% 8.1039% 12/21/27 (b)(c)(d) | | 294,750 | 276,573 |
TOTAL CONSUMER PRODUCTS | | | 5,865,038 |
| Containers - 1.9% | | | |
| AOT Packaging Products AcquisitionCo LLC 1LN, term loan 1 month U.S. LIBOR + 3.250% 7.6336% 3/3/28 (b)(c)(d) | | 468,392 | 445,900 |
| Berlin Packaging, LLC Tranche B 1LN, term loan: | | | |
| 1 month U.S. LIBOR + 3.250% 7.43% 3/11/28 (b)(c)(d) | | 196,500 | 186,605 |
| 1 month U.S. LIBOR + 3.750% 7.91% 3/11/28 (b)(c)(d) | | 666,563 | 640,007 |
| Berry Global, Inc. Tranche Z 1LN, term loan 1 month U.S. LIBOR + 1.750% 6.0243% 7/1/26 (b)(c)(d) | | 592,459 | 587,074 |
| Canister International Group, Inc. 1LN, term loan 1 month U.S. LIBOR + 4.750% 9.1336% 12/21/26 (b)(c)(d) | | 121,563 | 120,575 |
| Charter NEX U.S., Inc. 1LN, term loan 1 month U.S. LIBOR + 3.750% 8.1336% 12/1/27 (b)(c)(d) | | 334,161 | 324,032 |
| Graham Packaging Co., Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.000% 7.3836% 8/4/27 (b)(c)(d) | | 433,133 | 424,829 |
| Kloeckner Pentaplast of America, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 4.750% 8.2592% 2/9/26 (b)(c)(d) | | 191,588 | 169,375 |
| Pregis TopCo Corp. 1LN, term loan: | | | |
| 1 month U.S. LIBOR + 4.000% 8.1336% 8/1/26 (b)(c)(d) | | 98,750 | 95,541 |
| 1 month U.S. LIBOR + 4.000% 8.1875% 7/31/26 (b)(c)(d) | | 242,500 | 235,286 |
| Reynolds Consumer Products LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 1.750% 6.1336% 1/30/27 (b)(c)(d) | | 591,645 | 586,190 |
| Reynolds Group Holdings, Inc. Tranche B 1LN, term loan: | | | |
| 1 month U.S. LIBOR + 3.250% 7.6336% 2/5/26 (b)(c)(d) | | 205,800 | 203,034 |
| 1 month U.S. LIBOR + 3.250% 7.6336% 9/24/28 (b)(c)(d) | | 320,938 | 316,168 |
| Ring Container Technologies Group LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.500% 7.8836% 8/12/28 (b)(c)(d) | | 267,300 | 263,459 |
TOTAL CONTAINERS | | | 4,598,075 |
| Diversified Financial Services - 1.7% | | | |
| ACNR Holdings, Inc. term loan 20.3269% 9/16/25 (b)(d)(e) | | 19,373 | 19,518 |
| AlixPartners LLP Tranche B 1LN, term loan 1 month U.S. LIBOR + 2.750% 7.1336% 2/4/28 (b)(c)(d) | | 245,625 | 243,257 |
| AVSC Holding Corp. Tranche B2 1LN, term loan 3 month U.S. LIBOR + 5.500% 9.6849% 10/15/26 (b)(c)(d) | | 371,368 | 341,737 |
| BCP Renaissance Parent LLC Tranche B3 1LN, term loan CME Term SOFR 1 Month Index + 3.500% 7.823% 10/31/26 (b)(c)(d) | | 89,479 | 88,456 |
| Broadstreet Partners, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.250% 7.6336% 1/27/27 (b)(c)(d) | | 222,188 | 215,522 |
| Eagle 4 Ltd. Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.250% 7.9799% 7/12/28 (b)(c)(d) | | 143,519 | 142,533 |
| Finco I LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 2.500% 6.8836% 6/27/25 (b)(c)(d) | | 92,105 | 91,731 |
| Focus Financial Partners LLC: | | | |
| Tranche B 1LN, term loan 1 month U.S. LIBOR + 2.500% 6.823% 6/24/28 (b)(c)(d) | | 394,185 | 385,880 |
| Tranche B5 1LN, term loan CME Term SOFR 1 Month Index + 3.250% 7.573% 6/30/28 (b)(c)(d) | | 229,425 | 226,367 |
| GT Polaris, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.750% 8.1647% 9/24/27 (b)(c)(d) | | 122,505 | 111,327 |
| HarbourVest Partners LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.250% 6.5891% 3/1/25 (b)(c)(d) | | 415,045 | 411,828 |
| Hightower Holding LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 4.000% 8.2776% 4/21/28 (b)(c)(d) | | 202,438 | 184,892 |
| KREF Holdings X LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.500% 7.8125% 9/1/27 (b)(c)(d)(e) | | 221,672 | 215,576 |
| Nexus Buyer LLC: | | | |
| 2LN, term loan 1 month U.S. LIBOR + 6.250% 10.6336% 11/5/29 (b)(c)(d) | | 335,000 | 309,178 |
| Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.750% 8.1336% 11/8/26 (b)(c)(d) | | 262,296 | 250,773 |
| TransUnion LLC Tranche B5 1LN, term loan 1 month U.S. LIBOR + 1.750% 6.1336% 11/16/26 (b)(c)(d) | | 167,011 | 164,476 |
| UFC Holdings LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 2.750% 7.11% 4/29/26 (b)(c)(d) | | 267,798 | 263,931 |
| WH Borrower LLC Tranche B 1LN, term loan CME Term SOFR 1 Month Index + 5.500% 9.3636% 2/9/27 (b)(c)(d) | | 477,600 | 453,720 |
TOTAL DIVERSIFIED FINANCIAL SERVICES | | | 4,120,702 |
| Diversified Media - 1.2% | | | |
| Advantage Sales & Marketing, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 4.500% 8.284% 10/28/27 (b)(c)(d) | | 509,600 | 419,528 |
| Allen Media LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 5.500% 10.2302% 2/10/27 (b)(c)(d) | | 972,342 | 793,072 |
| Terrier Media Buyer, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.500% 8.2299% 12/17/26 (b)(c)(d) | | 1,765,571 | 1,649,237 |
TOTAL DIVERSIFIED MEDIA | | | 2,861,837 |
| Energy - 2.8% | | | |
| Apro LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.750% 7.9223% 11/14/26 (b)(c)(d) | | 291,228 | 282,005 |
| Array Technologies, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.250% 7.9419% 10/14/27 (b)(c)(d) | | 619,259 | 591,008 |
| Brazos Delaware II LLC Tranche B, term loan 3 month U.S. LIBOR + 4.000% 8.3539% 5/21/25 (b)(c)(d) | | 115,195 | 114,548 |
| BW Gas & Convenience Holdings LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.500% 7.8836% 3/17/28 (b)(c)(d)(e) | | 177,300 | 170,208 |
| CQP Holdco LP / BIP-V Chinook Holdco LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.750% 8.4799% 6/4/28 (b)(c)(d) | | 1,499,881 | 1,490,926 |
| Delek U.S. Holdings, Inc. Tranche B 1LN, term loan CME Term SOFR 1 Month Index + 3.500% 7.923% 11/19/29 (b)(c)(d) | | 610,000 | 585,753 |
| EG America LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.000% 8.7299% 2/6/25 (b)(c)(d) | | 404,965 | 381,428 |
| EG Finco Ltd. Tranche B, term loan 3 month U.S. LIBOR + 4.000% 9.1511% 2/6/25 (b)(c)(d) | | 372,520 | 350,870 |
| Esdec Solar Group BV Tranche B 1LN, term loan 1 month U.S. LIBOR + 4.750% 8.9199% 8/27/28 (b)(c)(d)(e) | | 389,063 | 375,445 |
| GIP II Blue Holding LP Tranche B 1LN, term loan 1 month U.S. LIBOR + 4.500% 9.2299% 9/29/28 (b)(c)(d) | | 1,145,609 | 1,133,913 |
| GIP III Stetson I LP Tranche B, term loan 3 month U.S. LIBOR + 4.250% 8.6336% 7/18/25 (b)(c)(d) | | 497,266 | 485,769 |
| Granite Acquisition, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 2.750% 7.4799% 3/25/28 (b)(c)(d) | | 265,950 | 253,317 |
| Natgasoline LLC Tranche B, term loan 3 month U.S. LIBOR + 3.500% 7.9375% 11/14/25 (b)(c)(d) | | 308,272 | 299,024 |
| Rockwood Service Corp. Tranche B 1LN, term loan 1 month U.S. LIBOR + 4.250% 8.6336% 1/23/27 (b)(c)(d) | | 296,115 | 291,489 |
| WaterBridge Operating LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 5.750% 9.1274% 6/21/26 (b)(c)(d) | | 230,936 | 221,481 |
TOTAL ENERGY | | | 7,027,184 |
| Entertainment/Film - 0.2% | | | |
| AP Core Holdings II LLC: | | | |
| Tranche B1 1LN, term loan 1 month U.S. LIBOR + 5.500% 9.8836% 9/1/27 (b)(c)(d) | | 343,612 | 309,852 |
| Tranche B2 1LN, term loan 1 month U.S. LIBOR + 5.500% 9.8836% 9/1/27 (b)(c)(d) | | 195,000 | 174,952 |
TOTAL ENTERTAINMENT/FILM | | | 484,804 |
| Environmental - 0.7% | | | |
| Clean Harbors, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 2.000% 6.3836% 10/8/28 (b)(c)(d) | | 346,500 | 344,383 |
| Covanta Holding Corp.: | | | |
| Tranche B 1LN, term loan 1 month U.S. LIBOR + 2.500% 6.823% 11/30/28 (b)(c)(d) | | 327,784 | 325,034 |
| Tranche C 1LN, term loan 1 month U.S. LIBOR + 2.500% 6.823% 11/30/28 (b)(c)(d) | | 24,739 | 24,531 |
| Madison IAQ LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.250% 7.9883% 6/21/28 (b)(c)(d) | | 635,325 | 589,664 |
| The Brickman Group, Ltd. Tranche B 1LN, term loan CME Term SOFR 1 Month Index + 3.250% 7.573% 4/14/29 (b)(c)(d) | | 422,875 | 406,489 |
| WTG Holdings III Corp. Tranche B 1LN, term loan 1 month U.S. LIBOR + 2.250% 6.6875% 4/1/28 (b)(c)(d) | | 113,275 | 111,682 |
TOTAL ENVIRONMENTAL | | | 1,801,783 |
| Food & Drug Retail - 0.5% | | | |
| Cardenas Merger Sub, LLC 1LN, term loan CME Term SOFR 1 Month Index + 6.750% 11.4302% 8/1/29 (b)(c)(d) | | 204,488 | 200,398 |
| Froneri U.S., Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 2.250% 6.6336% 1/29/27 (b)(c)(d) | | 388,209 | 377,157 |
| JP Intermediate B LLC Tranche B, term loan 3 month U.S. LIBOR + 5.500% 9.9147% 11/20/25 (b)(c)(d) | | 327,225 | 235,602 |
| PetIQ, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 4.250% 8.5679% 4/13/28 (b)(c)(d) | | 275,675 | 248,108 |
| Primary Products Finance LLC 1LN, term loan 1 month U.S. LIBOR + 4.000% 7.7089% 4/1/29 (b)(c)(d) | | 248,750 | 243,909 |
TOTAL FOOD & DRUG RETAIL | | | 1,305,174 |
| Food/Beverage/Tobacco - 1.3% | | | |
| 8th Avenue Food & Provisions, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.750% 8.1336% 10/1/25 (b)(c)(d) | | 119,131 | 98,730 |
| Bengal Debt Merger Sub LLC: | | | |
| 1LN, term loan CME TERM SOFR 3 MONTH INDEX + 3.250% 7.9302% 1/24/29 (b)(c)(d) | | 671,625 | 599,049 |
| 2LN, term loan CME Term SOFR 1 Month Index + 6.000% 10.6802% 1/24/30 (b)(c)(d) | | 170,000 | 133,715 |
| Chobani LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.500% 7.8836% 10/23/27 (b)(c)(d) | | 405,663 | 396,872 |
| Del Monte Foods, Inc. Tranche B 1LN, term loan CME Term SOFR 1 Month Index + 4.250% 8.6711% 5/16/29 (b)(c)(d) | | 665,000 | 644,425 |
| Shearer's Foods, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.500% 7.8836% 9/23/27 (b)(c)(d) | | 448,742 | 426,803 |
| Triton Water Holdings, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.500% 8.2299% 3/31/28 (b)(c)(d) | | 891,426 | 825,906 |
| U.S. Foods, Inc. 1LN, term loan 3 month U.S. LIBOR + 2.000% 6.3836% 9/13/26 (b)(c)(d) | | 103,225 | 102,052 |
TOTAL FOOD/BEVERAGE/TOBACCO | | | 3,227,552 |
| Gaming - 4.5% | | | |
| Bally's Corp. Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.250% 7.5421% 10/1/28 (b)(c)(d) | | 915,077 | 844,387 |
| Caesars Resort Collection LLC: | | | |
| Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.500% 7.8836% 7/20/25 (b)(c)(d) | | 1,426,572 | 1,421,708 |
| Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.750% 7.1336% 12/22/24 (b)(c)(d) | | 1,376,195 | 1,371,832 |
| Churchill Downs, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 2.000% 6.39% 3/17/28 (b)(c)(d) | | 294,750 | 291,558 |
| Fertitta Entertainment LLC NV Tranche B 1LN, term loan CME Term SOFR 1 Month Index + 4.000% 8.323% 1/27/29 (b)(c)(d) | | 2,795,108 | 2,652,222 |
| Flutter Financing B.V. Tranche B 1LN, term loan CME Term SOFR 1 Month Index + 3.250% 8.0918% 7/4/28 (b)(c)(d) | | 274,313 | 272,752 |
| Golden Entertainment, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.000% 7.39% 10/20/24 (b)(c)(d) | | 660,572 | 658,094 |
| GVC Holdings Gibraltar Ltd.: | | | |
| Tranche B2 1LN, term loan CME Term SOFR 1 Month Index + 3.500% 8.1802% 10/31/29 (b)(c)(d) | | 90,000 | 89,475 |
| Tranche B4 1LN, term loan 1 month U.S. LIBOR + 2.250% 7.2299% 3/16/27 (b)(c)(d) | | 197,000 | 195,461 |
| J&J Ventures Gaming LLC 1LN, term loan 1 month U.S. LIBOR + 4.000% 8.7299% 4/26/28 (b)(c)(d) | | 325,875 | 311,211 |
| PCI Gaming Authority 1LN, term loan 1 month U.S. LIBOR + 2.500% 6.8836% 5/29/26 (b)(c)(d) | | 303,389 | 301,114 |
| Playtika Holding Corp. Tranche B 1LN, term loan 1 month U.S. LIBOR + 2.750% 7.1336% 3/11/28 (b)(c)(d) | | 202 | 192 |
| Scientific Games Corp. 1LN, term loan CME Term SOFR 1 Month Index + 3.000% 7.4171% 4/7/29 (b)(c)(d) | | 646,750 | 636,357 |
| Scientific Games Holdings LP term loan CME Term SOFR 1 Month Index + 3.500% 7.0974% 4/4/29 (b)(c)(d) | | 638,400 | 607,776 |
| Stars Group Holdings BV Tranche B 1LN, term loan 1 month U.S. LIBOR + 2.250% 6.9799% 7/16/26 (b)(c)(d) | | 468,685 | 461,458 |
| Station Casinos LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 2.250% 6.64% 2/7/27 (b)(c)(d) | | 972,278 | 947,466 |
TOTAL GAMING | | | 11,063,063 |
| Healthcare - 5.1% | | | |
| Accelerated Health Systems LLC Tranche B1 LN, term loan CME Term SOFR 1 Month Index + 4.250% 8.9802% 2/2/29 (b)(c)(d) | | 338,300 | 273,600 |
| AHP Health Partners, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.500% 7.8836% 8/23/28 (b)(c)(d) | | 252,559 | 247,667 |
| Avantor Funding, Inc. Tranche B5 1LN, term loan 1 month U.S. LIBOR + 2.250% 6.6336% 11/6/27 (b)(c)(d) | | 408,959 | 406,461 |
| Charlotte Buyer, Inc. Tranche B 1LN, term loan CME Term SOFR 1 Month Index + 5.250% 9.5329% 2/12/28 (b)(c)(d) | | 185,000 | 174,903 |
| Da Vinci Purchaser Corp. Tranche B 1LN, term loan 1 month U.S. LIBOR + 4.000% 8.3836% 12/13/26 (b)(c)(d) | | 610,508 | 552,509 |
| Elanco Animal Health, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 1.750% 5.8701% 8/1/27 (b)(c)(d) | | 879,363 | 842,949 |
| Electron BidCo, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.000% 7.3836% 11/1/28 (b)(c)(d) | | 263,013 | 255,714 |
| Embecta Corp. Tranche B 1LN, term loan CME Term SOFR 1 Month Index + 3.000% 7.7914% 3/31/29 (b)(c)(d) | | 221,371 | 210,579 |
| Gainwell Acquisition Corp. Tranche B 1LN, term loan 1 month U.S. LIBOR + 4.000% 8.7299% 10/1/27 (b)(c)(d) | | 1,428,717 | 1,337,637 |
| Horizon Pharma U.S.A., Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 1.750% 6.1875% 3/15/28 (b)(c)(d) | | 423,069 | 422,540 |
| ICU Medical, Inc. Tranche B 1LN, term loan CME Term SOFR 1 Month Index + 2.500% 7.19% 1/6/29 (b)(c)(d) | | 282,863 | 273,228 |
| Insulet Corp. Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.250% 7.6875% 5/4/28 (b)(c)(d) | | 753,712 | 741,939 |
| Jazz Financing Lux SARL Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.500% 7.8836% 5/5/28 (b)(c)(d) | | 1,017,567 | 1,007,228 |
| Maravai Intermediate Holdings LLC Tranche B 1LN, term loan CME Term SOFR 1 Month Index + 3.000% 6.955% 10/19/27 (b)(c)(d) | | 361,488 | 354,258 |
| MED ParentCo LP: | | | |
| 1LN, term loan 1 month U.S. LIBOR + 4.250% 8.6336% 8/31/26 (b)(c)(d) | | 275,973 | 234,447 |
| 2LN, term loan 1 month U.S. LIBOR + 8.250% 12.6336% 8/30/27 (b)(c)(d) | | 180,000 | 132,601 |
| Mozart Borrower LP Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.250% 7.6336% 10/23/28 (b)(c)(d) | | 694,514 | 659,080 |
| Organon & Co. Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.000% 7.75% 6/2/28 (b)(c)(d) | | 815,458 | 806,284 |
| Packaging Coordinators Midco, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.500% 8.2299% 11/30/27 (b)(c)(d) | | 225,975 | 213,829 |
| Pathway Vet Alliance LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.750% 8.1336% 3/31/27 (b)(c)(d) | | 715,500 | 591,776 |
| Perrigo Investments LLC Tranche B 1LN, term loan CME Term SOFR 1 Month Index + 2.500% 6.923% 4/20/29 (b)(c)(d) | | 253,725 | 251,822 |
| Phoenix Newco, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.250% 7.6336% 11/15/28 (b)(c)(d) | | 962,725 | 925,554 |
| Pluto Acquisition I, Inc. term loan 1 month U.S. LIBOR + 4.000% 8.7349% 6/20/26 (b)(c)(d) | | 344,898 | 231,082 |
| PRA Health Sciences, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 2.250% 7% 7/3/28 (b)(c)(d) | | 341,162 | 339,842 |
| Surgery Center Holdings, Inc. 1LN, term loan 1 month U.S. LIBOR + 3.750% 8.05% 8/31/26 (b)(c)(d) | | 257,621 | 254,050 |
| U.S. Anesthesia Partners, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 4.250% 8.3701% 10/1/28 (b)(c)(d) | | 488,813 | 464,704 |
| U.S. Radiology Specialists, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 5.250% 9.6875% 12/15/27 (b)(c)(d) | | 340,251 | 306,491 |
| Upstream Newco, Inc. 1LN, term loan 1 month U.S. LIBOR + 4.250% 9.0918% 11/20/26 (b)(c)(d) | | 201,925 | 173,488 |
TOTAL HEALTHCARE | | | 12,686,262 |
| Homebuilders/Real Estate - 0.8% | | | |
| DTZ U.S. Borrower LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 2.750% 7.1336% 8/21/25 (b)(c)(d) | | 811,858 | 791,854 |
| Fluidra Finco SL Tranche B 1LN, term loan CME Term SOFR 1 Month Index + 2.000% 6.423% 1/27/29 (b)(c)(d) | | 405,900 | 384,692 |
| Lightstone Holdco LLC: | | | |
| Tranche B 1LN, term loan CME Term SOFR 1 Month Index + 5.750% 10.073% 1/30/27 (b)(c)(d) | | 408,913 | 373,338 |
| Tranche C 1LN, term loan CME Term SOFR 1 Month Index + 5.750% 10.073% 1/30/27 (b)(c)(d) | | 23,128 | 21,116 |
| Ryan Specialty Group LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.000% 7.423% 9/1/27 (b)(c)(d) | | 444,909 | 441,203 |
TOTAL HOMEBUILDERS/REAL ESTATE | | | 2,012,203 |
| Hotels - 2.3% | | | |
| ASP LS Acquisition Corp. Tranche B 1LN, term loan 1 month U.S. LIBOR + 4.500% 9.2299% 4/30/28 (b)(c)(d) | | 395,000 | 281,272 |
| Carnival Finance LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.250% 7.6336% 10/18/28 (b)(c)(d) | | 1,118,700 | 1,044,306 |
| Four Seasons Hotels Ltd. Tranche B 1LN, term loan CME Term SOFR 1 Month Index + 3.250% 7.673% 11/30/29 (b)(c)(d) | | 626,977 | 626,752 |
| Hilton Grand Vacations Borrower LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.000% 7.3836% 8/2/28 (b)(c)(d) | | 1,468,497 | 1,457,483 |
| Marriott Ownership Resorts, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 1.750% 6.1336% 8/31/25 (b)(c)(d) | | 635,145 | 626,888 |
| Oravel Stays Singapore Pte Ltd. Tranche B 1LN, term loan 1 month U.S. LIBOR + 8.250% 12.98% 6/23/26 (b)(c)(d) | | 177,300 | 153,068 |
| Playa Resorts Holding BV Tranche B 1LN, term loan CME Term SOFR 1 Month Index + 4.250% 8.5757% 12/15/28 (b)(c)(d) | | 280,000 | 272,476 |
| Travelport Finance Luxembourg SARL 1LN, term loan: | | | |
| 1 month U.S. LIBOR + 5.170% 13.4799% 2/28/25 (b)(c)(d) | | 443,073 | 443,024 |
| 3 month U.S. LIBOR + 6.750% 11.4799% 5/30/26 (b)(c)(d) | | 530,692 | 358,658 |
| Wyndham Hotels & Resorts, Inc. Tranche B, term loan 3 month U.S. LIBOR + 1.750% 6.1336% 5/30/25 (b)(c)(d) | | 317,668 | 317,032 |
TOTAL HOTELS | | | 5,580,959 |
| Insurance - 4.8% | | | |
| Acrisure LLC Tranche B 1LN, term loan: | | | |
| 1 month U.S. LIBOR + 3.500% 7.8836% 2/13/27 (b)(c)(d) | | 1,609,907 | 1,507,275 |
| 1 month U.S. LIBOR + 4.250% 8.6336% 2/15/27 (b)(c)(d) | | 212,850 | 205,577 |
| CME Term SOFR 1 Month Index + 5.750% 9.9157% 2/15/27 (b)(c)(d) | | 480,000 | 475,200 |
| Alliant Holdings Intermediate LLC: | | | |
| Tranche B, term loan 1 month U.S. LIBOR + 3.250% 7.6336% 5/10/25 (b)(c)(d) | | 200,409 | 197,553 |
| Tranche B-2 1LN, term loan 1 month U.S. LIBOR + 3.250% 7.6336% 5/9/25 (b)(c)(d) | | 482,500 | 475,692 |
| Tranche B3 1LN, term loan 1 month U.S. LIBOR + 3.500% 7.8539% 11/12/27 (b)(c)(d) | | 493,750 | 481,935 |
| AmWINS Group, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 2.250% 6.6336% 2/19/28 (b)(c)(d) | | 540,211 | 529,915 |
| Amynta Agency Borrower, Inc. Tranche B 1LN, term loan CME Term SOFR 1 Month Index + 5.000% 9.399% 2/28/25 (b)(c)(d)(e) | | 165,000 | 157,575 |
| AssuredPartners, Inc.: | | | |
| 1 LN, term loan CME Term SOFR 1 Month Index + 3.500% 7.823% 2/13/27 (b)(c)(d) | | 258,050 | 250,115 |
| Tranche B 1LN, term loan: | | | |
1 month U.S. LIBOR + 3.500% 7.8836% 2/13/27 (b)(c)(d) | | 363,750 | 352,612 |
1 month U.S. LIBOR + 3.500% 7.8836% 2/13/27 (b)(c)(d) | | 14,775 | 14,287 |
| Asurion LLC: | | | |
| Tranche B3 2LN, term loan 1 month U.S. LIBOR + 5.250% 9.6336% 1/31/28 (b)(c)(d) | | 835,000 | 647,818 |
| Tranche B4 2LN, term loan 1 month U.S. LIBOR + 5.250% 9.6336% 1/20/29 (b)(c)(d) | | 1,390,000 | 1,074,275 |
| Tranche B8 1LN, term loan 1 month U.S. LIBOR + 3.250% 7.6336% 12/23/26 (b)(c)(d) | | 1,202,071 | 1,069,098 |
| Tranche B9 1LN, term loan 1 month U.S. LIBOR + 3.250% 7.6336% 7/31/27 (b)(c)(d) | | 565,430 | 493,694 |
| HUB International Ltd.: | | | |
| Tranche B 1LN, term loan: | | | |
1 month U.S. LIBOR + 3.250% 7.5276% 4/25/25 (b)(c)(d) | | 382,076 | 378,167 |
CME Term SOFR 1 Month Index + 4.000% 8.2202% 11/10/29 (b)(c)(d) | | 210,000 | 207,493 |
| Tranche B, term loan 3 month U.S. LIBOR + 3.000% 7.3269% 4/25/25 (b)(c)(d) | | 2,122,590 | 2,096,949 |
| USI, Inc. 1LN, term loan: | | | |
| 1 month U.S. LIBOR + 3.250% 7.9799% 12/2/26 (b)(c)(d) | | 461,872 | 457,831 |
| CME Term SOFR 1 Month Index + 3.750% 8.3302% 11/22/29 (b)(c)(d) | | 906,004 | 896,301 |
TOTAL INSURANCE | | | 11,969,362 |
| Leisure - 1.9% | | | |
| Alterra Mountain Co. Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.500% 7.8836% 8/17/28 (b)(c)(d) | | 126,770 | 124,949 |
| City Football Group Ltd. Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.000% 7.3613% 7/21/28 (b)(c)(d) | | 797,657 | 743,815 |
| Crown Finance U.S., Inc.: | | | |
| 1LN, term loan CME Term SOFR 1 Month Index + 10.000% 14.4065% 9/9/23 (b)(c)(d) | | 285,657 | 279,856 |
| Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.500% 3.9997% 2/28/25 (b)(c)(d) | | 514,179 | 91,611 |
| Delta 2 SARL Tranche B 1LN, term loan CME Term SOFR 1 Month Index + 3.250% 7.573% 1/15/30 (b)(c)(d) | | 765,000 | 764,044 |
| Equinox Holdings, Inc.: | | | |
| Tranche 2LN, term loan 3 month U.S. LIBOR + 7.000% 11.7299% 9/8/24 (b)(c)(d) | | 115,000 | 74,750 |
| Tranche B-1, term loan 3 month U.S. LIBOR + 3.000% 7.7299% 3/8/24 (b)(c)(d) | | 597,755 | 447,569 |
| Herschend Entertainment Co. LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.750% 8.19% 8/27/28 (b)(c)(d) | | 143,188 | 141,577 |
| Lids Holdings, Inc. 1LN, term loan CME Term SOFR 1 Month Index + 5.500% 10.1058% 12/14/26 (b)(c)(d)(e) | | 319,375 | 295,422 |
| MajorDrive Holdings IV LLC 1LN, term loan 1 month U.S. LIBOR + 4.000% 8.8125% 5/12/28 (b)(c)(d) | | 226,550 | 212,391 |
| PlayPower, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 5.500% 12% 5/10/26 (b)(c)(d) | | 223,389 | 168,938 |
| SeaWorld Parks & Entertainment, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.000% 7.4375% 8/25/28 (b)(c)(d) | | 222,188 | 217,902 |
| SP PF Buyer LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.500% 8.8836% 12/21/25 (b)(c)(d) | | 221,883 | 144,987 |
| Topgolf Callaway Brands Corp. Tranche B, term loan 3 month U.S. LIBOR + 4.500% 8.8836% 1/4/26 (b)(c)(d) | | 171,429 | 170,786 |
| United PF Holdings LLC: | | | |
| 1LN, term loan 1 month U.S. LIBOR + 4.000% 8.7299% 12/30/26 (b)(c)(d) | | 824,305 | 663,565 |
| 2LN, term loan 3 month U.S. LIBOR + 8.500% 13.2299% 12/30/27 (b)(c)(d) | | 100,000 | 81,000 |
| Tranche B 1LN, term loan 1 month U.S. LIBOR + 8.500% 13.2299% 12/30/26 (b)(c)(d)(e) | | 83,088 | 73,117 |
TOTAL LEISURE | | | 4,696,279 |
| Paper - 0.8% | | | |
| Ahlstrom-Munksjo OYJ 1LN, term loan 1 month U.S. LIBOR + 3.750% 8.4799% 2/4/28 (b)(c)(d) | | 265,310 | 252,708 |
| Clydesdale Acquisition Holdings, Inc. 1LN, term loan CME Term SOFR 1 Month Index + 4.170% 8.598% 4/13/29 (b)(c)(d) | | 1,631,800 | 1,550,895 |
| Journey Personal Care Corp. Tranche B 1LN, term loan 1 month U.S. LIBOR + 4.250% 8.9799% 3/1/28 (b)(c)(d) | | 138,246 | 100,297 |
TOTAL PAPER | | | 1,903,900 |
| Publishing/Printing - 0.8% | | | |
| Harland Clarke Holdings Corp.: | | | |
| 1LN, term loan CME Term SOFR 1 Month Index + 7.750% 12.3302% 6/16/26 (b)(c)(d) | | 346,276 | 267,065 |
| Tranche B 7LN, term loan 3 month U.S. LIBOR + 4.750% 9.4799% 11/3/23 (b)(c)(d) | | 40,950 | 31,470 |
| Learning Care Group (U.S.) No 2, Inc. Tranche B 1LN, term loan: | | | |
| 1 month U.S. LIBOR + 8.500% 12.9878% 3/13/25 (b)(c)(d)(e) | | 204,750 | 198,608 |
| 3 month U.S. LIBOR + 3.250% 7.64% 3/13/25 (b)(c)(d) | | 258,781 | 239,373 |
| MJH Healthcare Holdings LLC Tranche B 1LN, term loan CME Term SOFR 1 Month Index + 3.500% 7.923% 1/28/29 (b)(c)(d) | | 387,075 | 371,352 |
| Recorded Books, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 4.000% 8.3234% 8/29/25 (b)(c)(d) | | 325,000 | 317,223 |
| RLG Holdings LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 4.000% 8.3836% 7/8/28 (b)(c)(d) | | 202,950 | 190,605 |
| Scripps (E.W.) Co.: | | | |
| Tranche B 1LN, term loan 1 month U.S. LIBOR + 2.750% 7.1336% 1/7/28 (b)(c)(d) | | 188,663 | 183,105 |
| Tranche B, term loan 1 month U.S. LIBOR + 2.000% 6.3836% 10/2/24 (b)(c)(d) | | 236,875 | 231,545 |
TOTAL PUBLISHING/PRINTING | | | 2,030,346 |
| Railroad - 0.8% | | | |
| AIT Worldwide Logistics Holdings, Inc. 1LN, term loan 1 month U.S. LIBOR + 4.750% 8.4907% 4/6/28 (b)(c)(d) | | 350,563 | 320,765 |
| Echo Global Logistics, Inc. 1LN, term loan 1 month U.S. LIBOR + 3.500% 7.8836% 11/23/28 (b)(c)(d) | | 208,425 | 195,225 |
| Einstein Merger Sub, Inc. 2LN, term loan 3 month U.S. LIBOR + 7.000% 11.6015% 11/23/29 (b)(c)(d)(e) | | 175,000 | 174,125 |
| First Student Bidco, Inc.: | | | |
| Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.000% 7.7264% 7/21/28 (b)(c)(d) | | 308,089 | 277,600 |
| Tranche C 1LN, term loan 1 month U.S. LIBOR + 3.000% 7.7264% 7/21/28 (b)(c)(d) | | 114,583 | 103,244 |
| Genesee & Wyoming, Inc. 1LN, term loan 3 month U.S. LIBOR + 2.000% 6.7299% 12/30/26 (b)(c)(d) | | 464,449 | 461,430 |
| Worldwide Express, Inc. 1LN, term loan 1 month U.S. LIBOR + 4.000% 8.7299% 7/22/28 (b)(c)(d) | | 401,161 | 365,670 |
TOTAL RAILROAD | | | 1,898,059 |
| Restaurants - 1.2% | | | |
| Burger King Worldwide, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 1.750% 6.1407% 11/19/26 (b)(c)(d) | | 485,000 | 475,906 |
| Dave & Buster's, Inc. Tranche B 1LN, term loan CME Term SOFR 1 Month Index + 5.000% 9.4375% 6/29/29 (b)(c)(d) | | 249,375 | 247,974 |
| Flynn Restaurant Group LP Tranche B 1LN, term loan 1 month U.S. LIBOR + 4.250% 8.6336% 11/22/28 (b)(c)(d) | | 128,700 | 120,280 |
| Pacific Bells LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 4.500% 9.3418% 10/20/28 (b)(c)(d) | | 451,185 | 422,611 |
| PFC Acquisition Corp. Tranche B 1LN, term loan 3 month U.S. LIBOR + 6.500% 11.2349% 3/1/26 (b)(c)(d) | | 360,938 | 309,504 |
| Restaurant Technologies, Inc. Tranche B 1LN, term loan CME Term SOFR 1 Month Index + 4.250% 8.8302% 4/1/29 (b)(c)(d) | | 508,828 | 498,651 |
| Whatabrands LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.250% 7.6336% 7/21/28 (b)(c)(d) | | 810,332 | 782,141 |
TOTAL RESTAURANTS | | | 2,857,067 |
| Services - 8.9% | | | |
| ABG Intermediate Holdings 2 LLC: | | | |
| Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.250% 7.6336% 9/27/24 (b)(c)(d) | | 361,618 | 358,906 |
| Tranche B 2LN, term loan CME Term SOFR 1 Month Index + 6.000% 10.423% 12/20/29 (b)(c)(d) | | 180,000 | 163,800 |
| Tranche B1 LN, term loan CME Term SOFR 1 Month Index + 3.500% 7.923% 12/21/28 (b)(c)(d) | | 1,064,650 | 1,028,718 |
| Adtalem Global Education, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 4.000% 8.3887% 8/12/28 (b)(c)(d) | | 157,395 | 155,933 |
| AEA International Holdings Luxembourg SARL Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.750% 8.5% 9/7/28 (b)(c)(d) | | 158,400 | 156,420 |
| All-Star Bidco AB: | | | |
| Tranche B 1LN, term loan 1 month U.S. LIBOR + 4.000% 8.7349% 11/16/28 (b)(c)(d) | | 133,988 | 129,633 |
| Tranche B1 1LN, term loan 1 month U.S. LIBOR + 3.500% 8.2349% 11/16/28 (b)(c)(d) | | 228,275 | 219,715 |
| Allied Universal Holdco LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.750% 8.173% 5/14/28 (b)(c)(d) | | 737,333 | 699,088 |
| APX Group, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.250% 6.73% 7/9/28 (b)(c)(d) | | 389,566 | 383,843 |
| Aramark Services, Inc.: | | | |
| Tranche B 1LN, term loan 1 month U.S. LIBOR + 2.500% 6.8836% 4/6/28 (b)(c)(d) | | 90,000 | 88,560 |
| Tranche B 3LN, term loan 1 month U.S. LIBOR + 1.750% 6.1336% 3/11/25 (b)(c)(d) | | 184,497 | 183,056 |
| Tranche B-4 1LN, term loan 1 month U.S. LIBOR + 1.750% 6.1336% 1/15/27 (b)(c)(d) | | 116,563 | 114,319 |
| Ascend Learning LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.500% 7.8836% 12/10/28 (b)(c)(d) | | 1,006,870 | 950,233 |
| Asurion LLC 1LN, term loan CME TERM SOFR 3 MONTH INDEX + 4.000% 8.6802% 8/17/28 (b)(c)(d) | | 807,015 | 718,445 |
| Brand Energy & Infrastructure Services, Inc. Tranche B, term loan 3 month U.S. LIBOR + 4.250% 8.4945% 6/21/24 (b)(c)(d) | | 1,263,368 | 1,127,556 |
| Cast & Crew Payroll LLC Tranche B 1LN, term loan: | | | |
| 1 month U.S. LIBOR + 3.500% 7.8836% 2/7/26 (b)(c)(d) | | 683,638 | 672,898 |
| CME Term SOFR 1 Month Index + 3.750% 8.073% 12/30/28 (b)(c)(d) | | 331,650 | 326,509 |
| CHG Healthcare Services, Inc. 1LN, term loan 1 month U.S. LIBOR + 3.250% 7.6336% 9/30/28 (b)(c)(d) | | 157,727 | 154,047 |
| Congruex Group LLC Tranche B 1LN, term loan CME Term SOFR 1 Month Index + 5.750% 9.9942% 5/3/29 (b)(c)(d) | | 373,125 | 361,931 |
| CoreLogic, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.500% 7.9375% 6/2/28 (b)(c)(d) | | 899,707 | 747,881 |
| EAB Global, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.500% 7.8836% 8/16/28 (b)(c)(d) | | 207,900 | 199,584 |
| Element Materials Technology Group: | | | |
| Tranche B 1LN, term loan CME Term SOFR 1 Month Index + 4.250% 8.9302% 6/24/29 (b)(c)(d) | | 153,947 | 150,099 |
| Tranche DD 1LN, term loan CME TERM SOFR 3 MONTH INDEX + 4.250% 8.9302% 6/24/29 (b)(c)(d) | | 71,053 | 69,276 |
| EmployBridge LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 4.750% 9.49% 7/19/28 (b)(c)(d) | | 543,125 | 440,159 |
| Ensemble RCM LLC 1LN, term loan 3 month U.S. LIBOR + 3.750% 7.9442% 8/1/26 (b)(c)(d) | | 362,813 | 358,096 |
| Filtration Group Corp.: | | | |
| Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.500% 7.8836% 10/21/28 (b)(c)(d) | | 261,688 | 256,454 |
| Tranche B, term loan 3 month U.S. LIBOR + 3.000% 7.3836% 3/29/25 (b)(c)(d) | | 323,846 | 319,934 |
| Finastra U.S.A., Inc.: | | | |
| Tranche 2LN, term loan 3 month U.S. LIBOR + 7.250% 10.6207% 6/13/25 (b)(c)(d) | | 235,000 | 173,985 |
| Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.500% 6.8707% 6/13/24 (b)(c)(d) | | 518,572 | 457,422 |
| Flexera Software LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.750% 8.14% 3/3/28 (b)(c)(d) | | 169,646 | 162,384 |
| Franchise Group, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.750% 8.6875% 3/10/26 (b)(c)(d) | | 526,338 | 505,284 |
| Galaxy U.S. Opco, Inc. 1LN, term loan CME Term SOFR 1 Month Index + 4.750% 9.073% 4/29/29 (b)(c)(d) | | 410,000 | 370,025 |
| Gateway Merger Sub 2021, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 5.250% 9.65% 6/30/28 (b)(c)(d) | | 158,000 | 148,784 |
| GEMS MENASA Cayman Ltd. Tranche B 1LN, term loan 1 month U.S. LIBOR + 5.000% 8.5664% 7/30/26 (b)(c)(d) | | 264,197 | 261,423 |
| Greeneden U.S. Holdings II LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 4.000% 8.3836% 12/1/27 (b)(c)(d) | | 404,413 | 387,480 |
| Indy U.S. Bidco LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.750% 8.1336% 3/5/28 (b)(c)(d) | | 201,425 | 173,562 |
| Ion Trading Finance Ltd. Tranche B 1LN, term loan 1 month U.S. LIBOR + 4.750% 9.4799% 3/26/28 (b)(c)(d) | | 788,000 | 745,219 |
| KNS Acquisitions, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 6.250% 10.4199% 4/21/27 (b)(c)(d) | | 169,531 | 152,790 |
| KUEHG Corp. Tranche B, term loan 3 month U.S. LIBOR + 3.750% 8.4799% 2/21/25 (b)(c)(d) | | 708,301 | 678,595 |
| Lakeshore Intermediate LLC 1LN, term loan 1 month U.S. LIBOR + 3.500% 8.2299% 10/1/28 (b)(c)(d) | | 143,550 | 139,961 |
| Maverick Purchaser Sub LLC: | | | |
| Tranche B 1LN, term loan: | | | |
1 month U.S. LIBOR + 4.000% 8.33% 1/23/27 (b)(c)(d) | | 458,250 | 447,174 |
CME Term SOFR 1 Month Index + 4.000% 8.12% 2/16/29 (b)(c)(d) | | 641,775 | 623,927 |
| Tranche B 2LN, term loan 1 month U.S. LIBOR + 8.750% 12.9199% 1/31/28 (b)(c)(d) | | 290,000 | 264,988 |
| Mckissock Investment Holdings Tranche B 1LN, term loan CME Term SOFR 1 Month Index + 5.000% 8.74% 3/10/29 (b)(c)(d) | | 158,800 | 147,189 |
| Neptune BidCo U.S., Inc. Tranche B 1LN, term loan CME Term SOFR 1 Month Index + 5.000% 8.8219% 4/11/29 (b)(c)(d) | | 1,330,000 | 1,184,538 |
| Pilot Travel Centers LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 2.000% 6.423% 8/4/28 (b)(c)(d) | | 641,875 | 633,691 |
| PowerTeam Services LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.500% 8.2299% 3/6/25 (b)(c)(d) | | 349,959 | 285,874 |
| Sabert Corp. Tranche B 1LN, term loan 1 month U.S. LIBOR + 4.500% 8.9375% 12/10/26 (b)(c)(d)(e) | | 402,339 | 398,315 |
| Sabre GLBL, Inc.: | | | |
| Tranche B-1 1LN, term loan 1 month U.S. LIBOR + 3.500% 7.8836% 12/17/27 (b)(c)(d) | | 34,006 | 30,860 |
| Tranche B-2 1LN, term loan 1 month U.S. LIBOR + 3.500% 7.8836% 12/17/27 (b)(c)(d) | | 54,208 | 49,193 |
| Signal Parent, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.500% 7.8869% 4/3/28 (b)(c)(d) | | 492,500 | 293,446 |
| Spin Holdco, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 4.000% 8.765% 3/4/28 (b)(c)(d) | | 1,488,901 | 1,250,305 |
| SuperMoose Borrower LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.750% 8.4799% 8/29/25 (b)(c)(d) | | 280,283 | 239,993 |
| Uber Technologies, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.500% 8.2349% 4/4/25 (b)(c)(d) | | 715,026 | 714,132 |
| Vaco Holdings LLC 1LN, term loan CME Term SOFR 1 Month Index + 5.000% 9.7302% 1/21/29 (b)(c)(d) | | 262,350 | 252,074 |
| WMB Holdings, Inc. Tranche B 1LN, term loan CME Term SOFR 1 Month Index + 3.250% 7.673% 11/3/29 (b)(c)(d) | | 230,000 | 227,125 |
TOTAL SERVICES | | | 21,934,831 |
| Specialty Retailing - 0.1% | | | |
| New SK Holdco Sub LLC 1LN, term loan CME Term SOFR 1 Month Index + 8.350% 12.6746% 6/30/27 (b)(c)(d) | | 311,356 | 268,078 |
| Steel - 0.1% | | | |
| JMC Steel Group, Inc. 1LN, term loan 1 month U.S. LIBOR + 2.000% 6.729% 1/24/27 (b)(c)(d) | | 384,589 | 374,835 |
| Super Retail - 4.4% | | | |
| Academy Ltd. Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.750% 7.8701% 11/6/27 (b)(c)(d) | | 353,071 | 350,275 |
| At Home Group, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 4.250% 7.9929% 7/24/28 (b)(c)(d) | | 431,371 | 337,872 |
| Bass Pro Group LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.750% 8.1336% 3/5/28 (b)(c)(d) | | 6,997,437 | 6,708,791 |
| BJ's Wholesale Club, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.000% 6.2703% 2/3/24 (b)(c)(d) | | 245,000 | 244,909 |
| Empire Today LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 5.000% 9.2921% 4/1/28 (b)(c)(d) | | 538,170 | 399,425 |
| Harbor Freight Tools U.S.A., Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 2.750% 7.1336% 10/19/27 (b)(c)(d) | | 525,800 | 499,867 |
| LBM Acquisition LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.750% 7.1207% 12/18/27 (b)(c)(d) | | 304,722 | 263,490 |
| Michaels Companies, Inc. 1LN, term loan 1 month U.S. LIBOR + 4.250% 8.9799% 4/15/28 (b)(c)(d) | | 832,325 | 716,266 |
| Red Ventures LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 2.500% 6.8836% 11/8/24 (b)(c)(d) | | 251,071 | 249,070 |
| RH: | | | |
| Tranche B 1LN, term loan 1 month U.S. LIBOR + 2.500% 6.8836% 10/20/28 (b)(c)(d) | | 671,500 | 616,269 |
| Tranche B2 1LN, term loan CME Term SOFR 1 Month Index + 3.250% 7.673% 10/20/28 (b)(c)(d) | | 498,750 | 465,239 |
TOTAL SUPER RETAIL | | | 10,851,473 |
| Technology - 17.2% | | | |
| A&V Holdings Midco LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 5.370% 9.5449% 3/10/27 (b)(c)(d) | | 220,333 | 213,723 |
| Acuris Finance U.S., Inc. 1LN, term loan CME Term SOFR 1 Month Index + 4.000% 8.7302% 2/16/28 (b)(c)(d) | | 270,573 | 265,500 |
| Alliance Laundry Systems LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.500% 7.4087% 10/8/27 (b)(c)(d) | | 201,007 | 196,836 |
| Anastasia Parent LLC Tranche B, term loan 3 month U.S. LIBOR + 3.750% 8.4799% 8/10/25 (b)(c)(d) | | 957,500 | 706,424 |
| Applied Systems, Inc. Tranche B 1LN, term loan CME Term SOFR 1 Month Index + 4.500% 9.0802% 9/19/26 (b)(c)(d) | | 325,000 | 323,131 |
| Aptean, Inc. 1LN, term loan 1 month U.S. LIBOR + 4.250% 8.9849% 4/23/26 (b)(c)(d) | | 275,175 | 262,333 |
| Arches Buyer, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.250% 7.6336% 12/4/27 (b)(c)(d) | | 378,175 | 349,025 |
| Athenahealth Group, Inc.: | | | |
| Tranche B 1LN, term loan CME Term SOFR 1 Month Index + 3.500% 7.8211% 2/15/29 (b)(c)(d) | | 2,254,612 | 2,029,963 |
| Tranche DD 1LN, term loan CME Term SOFR 1 Month Index + 3.500% 3.5% 2/15/29 (b)(c)(d)(g) | | 384,058 | 345,790 |
| AZZ, Inc. Tranche B 1LN, term loan CME Term SOFR 1 Month Index + 4.250% 8.673% 5/13/29 (b)(c)(d) | | 373,650 | 373,183 |
| Byju's Alpha, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 6.000% 10.6987% 11/24/26 (b)(c)(d) | | 440,028 | 347,934 |
| Camelot Finance SA: | | | |
| Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.000% 7.3836% 10/31/26 (b)(c)(d) | | 657,844 | 647,154 |
| Tranche B, term loan 1 month U.S. LIBOR + 3.000% 7.3836% 10/31/26 (b)(c)(d) | | 780,415 | 766,953 |
| Central Parent, Inc. 1LN, term loan CME Term SOFR 1 Month Index + 4.500% 9.0802% 7/6/29 (b)(c)(d) | | 1,245,000 | 1,232,264 |
| Ceridian HCM Holding, Inc. Tranche B, term loan 1 month U.S. LIBOR + 2.500% 6.8836% 4/30/25 (b)(c)(d) | | 415,026 | 407,244 |
| Coherent Corp. Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.750% 7.1336% 7/1/29 (b)(c)(d) | | 1,067,811 | 1,054,196 |
| CommScope, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 7.6336% 4/4/26 (b)(c)(d) | | 976,335 | 917,999 |
| ConnectWise LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.500% 7.8836% 9/30/28 (b)(c)(d) | | 683,100 | 647,449 |
| Constant Contact, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 4.000% 7.9087% 2/10/28 (b)(c)(d) | | 306,335 | 268,426 |
| DCert Buyer, Inc.: | | | |
| 1LN, term loan 3 month U.S. LIBOR + 4.000% 8.6956% 10/16/26 (b)(c)(d) | | 943,484 | 910,122 |
| Tranche B 2LN, term loan 1 month U.S. LIBOR + 7.000% 11.6956% 2/19/29 (b)(c)(d) | | 595,000 | 540,855 |
| DG Investment Intermediate Holdings, Inc.: | | | |
| 2LN, term loan 1 month U.S. LIBOR + 6.750% 11.073% 3/31/29 (b)(c)(d) | | 60,000 | 52,700 |
| Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.750% 8.1336% 3/31/28 (b)(c)(d) | | 261,034 | 249,287 |
| ECL Entertainment LLC 1LN, term loan 1 month U.S. LIBOR + 7.500% 11.8836% 4/30/28 (b)(c)(d) | | 197,000 | 196,344 |
| Entegris, Inc. Tranche B 1LN, term loan CME Term SOFR 1 Month Index + 3.000% 7.52% 7/6/29 (b)(c)(d) | | 820,000 | 816,925 |
| Eos U.S. Finco LLC 1LN, term loan CME Term SOFR 1 Month Index + 6.000% 9.6123% 10/6/29 (b)(c)(d) | | 250,000 | 241,875 |
| Epicor Software Corp. Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.250% 7.6336% 7/31/27 (b)(c)(d) | | 583,672 | 559,263 |
| Gen Digital, Inc. Tranche B 1LN, term loan CME Term SOFR 1 Month Index + 2.000% 6.423% 9/12/29 (b)(c)(d) | | 1,955,000 | 1,918,754 |
| Global IID Parent LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 4.500% 9.2299% 12/16/28 (b)(c)(d) | | 158,400 | 149,292 |
| Go Daddy Operating Co. LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 2.000% 6.3836% 8/10/27 (b)(c)(d) | | 121,875 | 120,581 |
| GoDaddy, Inc. Tranche B 1LN, term loan CME Term SOFR 1 Month Index + 3.250% 7.573% 10/21/29 (b)(c)(d) | | 466,952 | 465,719 |
| Hunter U.S. Bidco, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 4.250% 8.9799% 8/19/28 (b)(c)(d) | | 486,156 | 475,825 |
| Hyland Software, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.500% 7.8836% 7/1/24 (b)(c)(d) | | 391,420 | 385,647 |
| Icon Luxembourg Sarl Tranche B 1LN, term loan 1 month U.S. LIBOR + 2.250% 7% 7/3/28 (b)(c)(d) | | 1,369,301 | 1,364,002 |
| Imprivata, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.750% 8.1336% 12/1/27 (b)(c)(d) | | 284,925 | 273,528 |
| MA FinanceCo. LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 4.250% 8.9734% 6/5/25 (b)(c)(d) | | 102,018 | 101,572 |
| Maxar Technologies, Inc. Tranche B 1LN, term loan CME Term SOFR 1 Month Index + 4.250% 8.673% 6/9/29 (b)(c)(d) | | 104,475 | 104,363 |
| McAfee Corp. Tranche B 1LN, term loan CME Term SOFR 1 Month Index + 3.750% 7.974% 3/1/29 (b)(c)(d) | | 682,822 | 633,925 |
| MH Sub I LLC: | | | |
| 1LN, term loan 1 month U.S. LIBOR + 3.750% 8.1336% 9/15/24 (b)(c)(d) | | 1,047,431 | 1,016,385 |
| Tranche B 2LN, term loan 1 month U.S. LIBOR + 6.250% 10.649% 2/23/29 (b)(c)(d) | | 225,000 | 200,531 |
| Tranche B, term loan 3 month U.S. LIBOR + 3.750% 8.1336% 9/15/24 (b)(c)(d) | | 558,577 | 541,898 |
| MKS Instruments, Inc. Tranche B 1LN, term loan CME Term SOFR 1 Month Index + 2.750% 7.1711% 8/17/29 (b)(c)(d) | | 703,238 | 693,568 |
| Motus Group LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.750% 8.1336% 12/10/28 (b)(c)(d) | | 133,988 | 124,441 |
| NAVEX TopCo, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 7.64% 9/5/25 (b)(c)(d) | | 156,212 | 154,227 |
| Open Text Corp. Tranche B 1LN, term loan CME Term SOFR 1 Month Index + 3.500% 11/16/29 (c)(d)(f) | | 925,000 | 902,569 |
| Osmosis Debt Merger Sub, Inc. Tranche B 1LN, term loan CME Term SOFR 1 Month Index + 4.000% 7.9671% 7/30/28 (b)(c)(d) | | 213,925 | 201,179 |
| Park Place Technologies LLC 1LN, term loan 1 month U.S. LIBOR + 5.000% 9.423% 11/10/27 (b)(c)(d) | | 660,088 | 620,205 |
| Peraton Corp. Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.750% 8.1336% 2/1/28 (b)(c)(d) | | 2,317,040 | 2,258,628 |
| PointClickCare Technologies, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.000% 7.75% 12/29/27 (b)(c)(d) | | 102,564 | 99,487 |
| Polaris Newco LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 4.000% 8.7299% 6/2/28 (b)(c)(d) | | 1,230,316 | 1,120,031 |
| Project Boost Purchaser LLC 1LN, term loan 3 month U.S. LIBOR + 3.500% 7.8836% 5/30/26 (b)(c)(d) | | 419,493 | 403,565 |
| Proofpoint, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.250% 7.9849% 8/31/28 (b)(c)(d) | | 850,315 | 815,826 |
| Rackspace Technology Global, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 2.750% 7.38% 2/15/28 (b)(c)(d) | | 769,306 | 478,016 |
| RealPage, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.000% 7.3836% 4/22/28 (b)(c)(d) | | 725,813 | 688,796 |
| Red Planet Borrower LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.750% 8.1336% 9/30/28 (b)(c)(d) | | 286,102 | 174,808 |
| Renaissance Holdings Corp.: | | | |
| Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 7.6336% 5/31/25 (b)(c)(d) | | 487,580 | 463,932 |
| Tranche B 2LN, term loan 3 month U.S. LIBOR + 7.000% 11.3836% 5/31/26 (b)(c)(d) | | 115,000 | 106,327 |
| Seattle Spinco, Inc.: | | | |
| Tranche B 1LN, term loan CME Term SOFR 1 Month Index + 4.000% 8.4211% 3/1/27 (b)(c)(d) | | 1,503,513 | 1,499,754 |
| Tranche B 3LN, term loan 3 month U.S. LIBOR + 2.750% 7.1336% 6/21/24 (b)(c)(d) | | 580,757 | 579,305 |
| Sophia LP Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.500% 8.2299% 10/7/27 (b)(c)(d) | | 568,454 | 547,495 |
| SS&C Technologies, Inc.: | | | |
| Tranche B 3LN, term loan 1 month U.S. LIBOR + 1.750% 6.1336% 4/16/25 (b)(c)(d) | | 234,151 | 229,827 |
| Tranche B 4LN, term loan 1 month U.S. LIBOR + 1.750% 6.1336% 4/16/25 (b)(c)(d) | | 190,359 | 186,843 |
| Tranche B 5LN, term loan 1 month U.S. LIBOR + 1.750% 6.1336% 4/16/25 (b)(c)(d) | | 818,332 | 802,989 |
| STG-Fairway Holdings LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 2.750% 7.1336% 1/31/27 (b)(c)(d) | | 180,416 | 176,770 |
| Tempo Acquisition LLC: | | | |
| 1LN, term loan U.S. Secured Overnight Fin. Rate (SOFR) Index + 3.000% 7.323% 8/31/28 (b)(c)(d) | | 892,786 | 889,215 |
| Tranche B, term loan 1 month U.S. LIBOR + 2.750% 7.1336% 5/1/24 (b)(c)(d) | | 36,497 | 36,260 |
| TTM Technologies, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.500% 6.6201% 9/28/24 (b)(c)(d) | | 318,685 | 318,153 |
| UKG, Inc. 1LN, term loan 3 month U.S. LIBOR + 3.750% 8.1336% 5/4/26 (b)(c)(d) | | 793,350 | 763,599 |
| Ultimate Software Group, Inc.: | | | |
| 1LN, term loan 1 month U.S. LIBOR + 3.250% 6.9983% 5/3/26 (b)(c)(d) | | 1,406,214 | 1,335,903 |
| 2LN, term loan 1 month U.S. LIBOR + 5.250% 8.9983% 5/3/27 (b)(c)(d) | | 600,000 | 549,300 |
| Ust Global, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.750% 8.1369% 11/19/28 (b)(c)(d) | | 227,700 | 221,627 |
| Verscend Holding Corp. Tranche B 1LN, term loan 1 month U.S. LIBOR + 4.000% 8.3836% 8/27/25 (b)(c)(d) | | 123,114 | 122,082 |
| VFH Parent LLC Tranche B 1LN, term loan CME Term SOFR 1 Month Index + 3.000% 7.4211% 1/13/29 (b)(c)(d) | | 365,000 | 354,598 |
| Virgin Pulse, Inc.: | | | |
| 2LN, term loan 1 month U.S. LIBOR + 7.250% 11.6336% 4/6/29 (b)(c)(d) | | 115,000 | 88,550 |
| Tranche B 1LN, term loan 1 month U.S. LIBOR + 4.000% 8.3836% 4/6/28 (b)(c)(d) | | 274,829 | 231,681 |
| VM Consolidated, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.250% 7.6336% 3/27/28 (b)(c)(d) | | 486,528 | 482,879 |
| VS Buyer LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.000% 7.3836% 2/28/27 (b)(c)(d) | | 252,850 | 244,948 |
| Weber-Stephen Products LLC Tranche B 1LN, term loan: | | | |
| 1 month U.S. LIBOR + 3.250% 7.6336% 10/30/27 (b)(c)(d) | | 205,000 | 172,200 |
| CME Term SOFR 1 Month Index + 4.250% 8.673% 10/30/27 (b)(c)(d) | | 119,100 | 101,235 |
| Zelis Payments Buyer, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.500% 7.8836% 9/30/26 (b)(c)(d) | | 538,563 | 531,777 |
TOTAL TECHNOLOGY | | | 42,447,515 |
| Telecommunications - 4.0% | | | |
| Altice Financing SA Tranche B 1LN, term loan CME Term SOFR 1 Month Index + 5.000% 9.5656% 10/31/27 (b)(c)(d) | | 472,796 | 451,520 |
| Cablevision Lightpath LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.250% 7.5679% 11/30/27 (b)(c)(d) | | 126,821 | 121,035 |
| Connect U.S. Finco LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.500% 7.89% 12/12/26 (b)(c)(d) | | 243,125 | 239,984 |
| Consolidated Communications, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.500% 7.875% 10/2/27 (b)(c)(d) | | 318,651 | 280,346 |
| Crown Subsea Communications Holding, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 4.750% 8.8701% 4/27/27 (b)(c)(d) | | 140,240 | 136,500 |
| Frontier Communications Holdings LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.750% 8.5% 5/1/28 (b)(c)(d) | | 889,359 | 846,483 |
| GTT Communications BV 1LN, term loan: | | | |
| 11.423% 1/3/28 (d)(e) | | 114,463 | 90,425 |
| 13.6802% 6/3/28 (d)(e) | | 91,667 | 32,084 |
| Intelsat Jackson Holdings SA 1LN, term loan CME Term SOFR 1 Month Index + 4.250% 7.4449% 2/1/29 (b)(c)(d) | | 2,733,476 | 2,633,895 |
| Level 3 Financing, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 1.750% 6.1336% 3/1/27 (b)(c)(d) | | 246,166 | 235,396 |
| Northwest Fiber LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.750% 7.9766% 4/30/27 (b)(c)(d) | | 634,642 | 614,968 |
| Patagonia Holdco LLC Tranche B 1LN, term loan CME Term SOFR 1 Month Index + 5.750% 9.9603% 8/1/29 (b)(c)(d) | | 455,000 | 360,019 |
| Radiate Holdco LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.250% 7.6336% 9/25/26 (b)(c)(d) | | 929,159 | 751,364 |
| SBA Senior Finance II, LLC Tranche B, term loan 1 month U.S. LIBOR + 1.750% 6.14% 4/11/25 (b)(c)(d) | | 452,501 | 450,492 |
| Securus Technologies Holdings Tranche B, term loan: | | | |
| 3 month U.S. LIBOR + 4.500% 9.2299% 11/1/24 (b)(c)(d) | | 478,223 | 355,903 |
| 3 month U.S. LIBOR + 8.250% 12.6647% 11/1/25 (b)(c)(d) | | 685,000 | 444,736 |
| Windstream Services LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 6.250% 10.673% 9/21/27 (b)(c)(d) | | 490,139 | 442,351 |
| Zayo Group Holdings, Inc. 1LN, term loan: | | | |
| 1 month U.S. LIBOR + 3.000% 7.3836% 3/9/27 (b)(c)(d) | | 1,183,133 | 955,037 |
| CME Term SOFR 1 Month Index + 4.250% 8.573% 3/9/27 (b)(c)(d) | | 585,575 | 483,556 |
TOTAL TELECOMMUNICATIONS | | | 9,926,094 |
| Textiles/Apparel - 0.9% | | | |
| Crocs, Inc. Tranche B1 LN, term loan CME Term SOFR 1 Month Index + 3.500% 7.7313% 2/17/29 (b)(c)(d) | | 1,423,750 | 1,393,495 |
| Jo-Ann Stores LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 4.750% 9.0769% 7/7/28 (b)(c)(d) | | 232,211 | 155,969 |
| Tory Burch LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.250% 7.8836% 4/14/28 (b)(c)(d) | | 404,780 | 372,568 |
| Victoria's Secret & Co. Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.250% 7.9826% 8/2/28 (b)(c)(d) | | 197,300 | 191,381 |
TOTAL TEXTILES/APPAREL | | | 2,113,413 |
| Transportation Ex Air/Rail - 0.1% | | | |
| ASP LS Acquisition Corp. 2LN, term loan 1 month U.S. LIBOR + 7.500% 12.2299% 5/7/29 (b)(c)(d)(e) | | 230,000 | 135,700 |
| Utilities - 2.0% | | | |
| Brookfield WEC Holdings, Inc.: | | | |
| 1LN, term loan CME Term SOFR 1 Month Index + 3.750% 8.073% 8/1/25 (b)(c)(d) | | 164,588 | 163,714 |
| Tranche B 1LN, term loan 1 month U.S. LIBOR + 2.750% 7.1336% 8/1/25 (b)(c)(d) | | 1,220,102 | 1,201,166 |
| ExGen Renewables IV, LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.500% 7.24% 12/15/27 (b)(c)(d) | | 170,658 | 168,810 |
| Granite Generation LLC 1LN, term loan 1 month U.S. LIBOR + 3.750% 8.1336% 11/1/26 (b)(c)(d) | | 322,768 | 312,833 |
| Limetree Bay Terminals LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.000% 9.8418% 2/15/24 (b)(c)(d) | | 216,120 | 149,617 |
| Luxembourg Investment Co. 428 SARL Tranche B 1LN, term loan CME Term SOFR 1 Month Index + 5.000% 9.7302% 1/3/29 (b)(c)(d) | | 329,136 | 258,921 |
| Osmose Utilities Services, Inc. Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.250% 7.6336% 6/17/28 (b)(c)(d) | | 325,875 | 308,825 |
| PG&E Corp. Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.000% 7.4375% 6/23/25 (b)(c)(d) | | 609,375 | 603,854 |
| Pike Corp. Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.000% 7.39% 1/21/28 (b)(c)(d) | | 239,726 | 236,092 |
| Vertiv Group Corp. Tranche B 1LN, term loan 1 month U.S. LIBOR + 2.750% 6.892% 3/2/27 (b)(c)(d) | | 841,779 | 810,566 |
| Vistra Operations Co. LLC Tranche B 3LN, term loan 1 month U.S. LIBOR + 1.750% 6.12% 12/31/25 (b)(c)(d) | | 641,332 | 635,066 |
TOTAL UTILITIES | | | 4,849,464 |
| TOTAL BANK LOAN OBLIGATIONS (Cost $233,375,398) | | | 218,853,806 |
| | | | |
| Nonconvertible Bonds - 3.3% |
| | | Principal Amount (a) | Value ($) |
| Aerospace - 0.2% | | | |
| TransDigm, Inc.: | | | |
| 6.25% 3/15/26 (h) | | 500,000 | 493,095 |
| 8% 12/15/25 (h) | | 40,000 | 40,592 |
TOTAL AEROSPACE | | | 533,687 |
| Air Transportation - 0.1% | | | |
| American Airlines, Inc. / AAdvantage Loyalty IP Ltd. 5.5% 4/20/26 (h) | | 105,000 | 100,973 |
| Delta Air Lines, Inc. / SkyMiles IP Ltd. 4.5% 10/20/25 (h) | | 70,000 | 68,291 |
TOTAL AIR TRANSPORTATION | | | 169,264 |
| Automotive & Auto Parts - 0.6% | | | |
| Rivian Holdco & Rivian LLC & Rivian Automotive LLC 6 month U.S. LIBOR + 5.620% 10.1636% 10/15/26 (b)(c)(h) | | 1,535,000 | 1,481,275 |
| Broadcasting - 0.2% | | | |
| DISH Network Corp. 11.75% 11/15/27 (h) | | 285,000 | 293,522 |
| Univision Communications, Inc. 6.625% 6/1/27 (h) | | 105,000 | 101,305 |
TOTAL BROADCASTING | | | 394,827 |
| Cable/Satellite TV - 0.4% | | | |
| CCO Holdings LLC/CCO Holdings Capital Corp.: | | | |
| 5% 2/1/28 (h) | | 170,000 | 154,358 |
| 5.375% 6/1/29 (h) | | 330,000 | 298,409 |
| Charter Communications Operating LLC/Charter Communications Operating Capital Corp. 3 month U.S. LIBOR + 1.650% 6.0896% 2/1/24 (b)(c) | | 250,000 | 251,151 |
| Radiate Holdco LLC/Radiate Financial Service Ltd. 4.5% 9/15/26 (h) | | 189,000 | 138,858 |
TOTAL CABLE/SATELLITE TV | | | 842,776 |
| Capital Goods - 0.0% | | | |
| Chart Industries, Inc. 7.5% 1/1/30 (h) | | 35,000 | 35,185 |
| Chemicals - 0.0% | | | |
| Kronos Acquisition Holdings, Inc. / KIK Custom Products, Inc. 5% 12/31/26 (h) | | 5,000 | 4,325 |
| Containers - 0.2% | | | |
| Ardagh Packaging Finance PLC/Ardagh MP Holdings U.S.A., Inc. 4.125% 8/15/26 (h) | | 260,000 | 225,218 |
| Trivium Packaging Finance BV 5.5% 8/15/26 (h) | | 150,000 | 137,473 |
TOTAL CONTAINERS | | | 362,691 |
| Energy - 0.1% | | | |
| Citgo Petroleum Corp.: | | | |
| 6.375% 6/15/26 (h) | | 15,000 | 14,458 |
| 7% 6/15/25 (h) | | 95,000 | 92,659 |
| New Fortress Energy, Inc.: | | | |
| 6.5% 9/30/26 (h) | | 10,000 | 9,287 |
| 6.75% 9/15/25 (h) | | 45,000 | 42,561 |
TOTAL ENERGY | | | 158,965 |
| Gaming - 0.4% | | | |
| Affinity Gaming LLC 6.875% 12/15/27 (h) | | 150,000 | 127,176 |
| Fertitta Entertainment LLC / Fertitta Entertainment Finance Co., Inc. 4.625% 1/15/29 (h) | | 795,000 | 672,757 |
| Golden Entertainment, Inc. 7.625% 4/15/26 (h) | | 145,000 | 142,914 |
| VICI Properties LP / VICI Note Co.: | | | |
| 3.5% 2/15/25 (h) | | 30,000 | 28,285 |
| 4.25% 12/1/26 (h) | | 45,000 | 41,982 |
| 4.625% 12/1/29 (h) | | 25,000 | 22,750 |
TOTAL GAMING | | | 1,035,864 |
| Healthcare - 0.1% | | | |
| Tenet Healthcare Corp. 4.625% 7/15/24 | | 155,000 | 151,165 |
| Hotels - 0.0% | | | |
| Marriott Ownership Resorts, Inc. 6.125% 9/15/25 (h) | | 86,000 | 88,634 |
| Leisure - 0.1% | | | |
| Royal Caribbean Cruises Ltd.: | | | |
| 8.25% 1/15/29 (h) | | 160,000 | 160,780 |
| 11.625% 8/15/27 (h) | | 105,000 | 105,263 |
TOTAL LEISURE | | | 266,043 |
| Paper - 0.0% | | | |
| Ardagh Metal Packaging Finance U.S.A. LLC/Ardagh Metal Packaging Finance PLC 3.25% 9/1/28 (h) | | 80,000 | 67,986 |
| Restaurants - 0.0% | | | |
| CEC Entertainment LLC 6.75% 5/1/26 (h) | | 95,000 | 88,350 |
| Services - 0.2% | | | |
| Adtalem Global Education, Inc. 5.5% 3/1/28 (h) | | 97,000 | 88,028 |
| Aramark Services, Inc. 6.375% 5/1/25 (h) | | 60,000 | 59,263 |
| GEMS MENASA Cayman Ltd. 7.125% 7/31/26 (h) | | 115,000 | 109,918 |
| PowerTeam Services LLC 9.033% 12/4/25 (h) | | 390,000 | 324,905 |
TOTAL SERVICES | | | 582,114 |
| Super Retail - 0.1% | | | |
| EG Global Finance PLC: | | | |
| 6.75% 2/7/25 (h) | | 125,000 | 109,129 |
| 8.5% 10/30/25 (h) | | 250,000 | 232,906 |
TOTAL SUPER RETAIL | | | 342,035 |
| Technology - 0.1% | | | |
| CommScope, Inc. 6% 3/1/26 (h) | | 125,000 | 115,361 |
| Maxar Technologies, Inc. 7.75% 6/15/27 (h) | | 155,000 | 160,926 |
TOTAL TECHNOLOGY | | | 276,287 |
| Telecommunications - 0.5% | | | |
| Altice Financing SA 5.75% 8/15/29 (h) | | 225,000 | 176,977 |
| Altice France SA: | | | |
| 5.125% 1/15/29 (h) | | 170,000 | 127,825 |
| 5.125% 7/15/29 (h) | | 155,000 | 116,210 |
| 5.5% 1/15/28 (h) | | 95,000 | 74,396 |
| Frontier Communications Holdings LLC 5% 5/1/28 (h) | | 100,000 | 87,202 |
| Intelsat Jackson Holdings SA 6.5% 3/15/30 (h) | | 465,000 | 415,705 |
| Northwest Fiber LLC/Northwest Fiber Finance Sub, Inc. 4.75% 4/30/27 (h) | | 15,000 | 13,198 |
| Windstream Escrow LLC 7.75% 8/15/28 (h) | | 250,000 | 203,706 |
TOTAL TELECOMMUNICATIONS | | | 1,215,219 |
| Textiles/Apparel - 0.0% | | | |
| Victoria's Secret & Co. 4.625% 7/15/29 (h) | | 80,000 | 62,808 |
| TOTAL NONCONVERTIBLE BONDS (Cost $8,768,925) | | | 8,159,500 |
| | | | |
| Common Stocks - 1.2% |
| | | Shares | Value ($) |
| Capital Goods - 0.0% | | | |
| TNT Crane & Rigging LLC (e)(i) | | 5,338 | 28,879 |
| TNT Crane & Rigging LLC warrants 10/31/25 (e)(i) | | 1,797 | 162 |
TOTAL CAPITAL GOODS | | | 29,041 |
| Diversified Financial Services - 0.1% | | | |
| ACNR Holdings, Inc. (e)(i) | | 1,374 | 138,266 |
| Lime Tree Bay Ltd. (e) | | 38 | 1,520 |
TOTAL DIVERSIFIED FINANCIAL SERVICES | | | 139,786 |
| Energy - 1.0% | | | |
| California Resources Corp. | | 19,196 | 835,218 |
| California Resources Corp. warrants 10/27/24 (i) | | 885 | 11,151 |
| Chesapeake Energy Corp. | | 11,625 | 1,097,051 |
| Chesapeake Energy Corp. (i)(j) | | 103 | 9,720 |
| Denbury, Inc. (i) | | 5,885 | 512,113 |
TOTAL ENERGY | | | 2,465,253 |
| Entertainment/Film - 0.0% | | | |
| Cineworld Group PLC warrants 11/23/25 (e)(i) | | 22,063 | 0 |
| Restaurants - 0.1% | | | |
| CEC Entertainment, Inc. (e)(i) | | 15,069 | 277,673 |
| Super Retail - 0.0% | | | |
| David's Bridal, Inc. rights (e)(i) | | 347 | 0 |
| Telecommunications - 0.0% | | | |
| GTT Communications, Inc. (e)(i) | | 2,417 | 29,851 |
| TOTAL COMMON STOCKS (Cost $1,211,782) | | | 2,941,604 |
| | | | |
| Nonconvertible Preferred Stocks - 0.2% |
| | | Shares | Value ($) |
| Diversified Financial Services - 0.2% | | | |
ACNR Holdings, Inc. (e)(i) (Cost $98,250) | | 786 | 474,555 |
| | | | |
| Preferred Securities - 0.0% |
| | | Principal Amount (a) | Value ($) |
| Banks & Thrifts - 0.0% | | | |
Bank of America Corp. 5.2% (b)(k) (Cost $43,075) | | 45,000 | 43,804 |
| | | | |
| Other - 0.6% |
| | | Shares | Value ($) |
| Other - 0.6% | | | |
Fidelity Direct Lending Fund, LP (j)(l) (Cost $1,349,911) | | | 1,344,405 |
| | | | |
| Money Market Funds - 5.5% |
| | | Shares | Value ($) |
Fidelity Cash Central Fund 4.37% (m) (Cost $13,650,593) | | 13,647,864 | 13,650,593 |
| | | | |
| TOTAL INVESTMENT IN SECURITIES - 99.6% (Cost $258,497,934) | 245,468,267 |
NET OTHER ASSETS (LIABILITIES) - 0.4% | 1,097,184 |
| NET ASSETS - 100.0% | 246,565,451 |
| | |
Legend
| (a) | Amount is stated in United States dollars unless otherwise noted. |
| (b) | Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. |
| (c) | Coupon is indexed to a floating interest rate which may be multiplied by a specified factor and/or subject to caps or floors. |
| (d) | Remaining maturities of bank loan obligations may be less than the stated maturities shown as a result of contractual or optional prepayments by the borrower. Such prepayments cannot be predicted with certainty. |
| (f) | The coupon rate will be determined upon settlement of the loan after period end. |
| (g) | Position or a portion of the position represents an unfunded loan commitment. At period end, the total principal amount and market value of unfunded commitments totaled $355,559 and $318,453, respectively. |
| (h) | Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $7,757,184 or 3.1% of net assets. |
| (j) | Restricted securities (including private placements) - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $1,354,125 or 0.5% of net assets. |
| (k) | Security is perpetual in nature with no stated maturity date. |
| (m) | Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request. |
| Additional information on each restricted holding is as follows: |
| Security | Acquisition Date | Acquisition Cost ($) |
| Chesapeake Energy Corp. | 2/10/21 | 975 |
| | | |
| Fidelity Direct Lending Fund, LP | 12/09/21 - 12/30/22 | 1,349,911 |
| | | |
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
| Affiliate | Value, beginning of period ($) | Purchases ($) | Sales Proceeds ($) | Dividend Income ($) | Realized Gain (loss) ($) | Change in Unrealized appreciation (depreciation) ($) | Value, end of period ($) | % ownership, end of period |
| Fidelity Cash Central Fund 4.37% | 25,933,391 | 78,355,876 | 90,638,674 | 304,585 | - | - | 13,650,593 | 0.0% |
| Fidelity Securities Lending Cash Central Fund 4.37% | - | 6,821,005 | 6,821,005 | 549 | - | - | - | 0.0% |
| Total | 25,933,391 | 85,176,881 | 97,459,679 | 305,134 | - | - | 13,650,593 | |
| | | | | | | | | |
Amounts in the dividend income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line item in the Statement of Operations, if applicable.
Amount for Fidelity Securities Lending Cash Central Fund represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities.
Amounts included in the purchases and sales proceeds columns may include in-kind transactions, if applicable.
Affiliated Underlying Funds
Fiscal year to date information regarding the Fund's investments in affiliated Underlying Funds is presented below. Exchanges between classes of the same affiliated Underlying Funds may occur. If an Underlying Funds changes its name, the name presented below is the name in effect at period end.
| Affiliate | Value, beginning of period ($) | Purchases ($) | Sales Proceeds ($) | Dividend Income ($) | Realized Gain (loss) ($) | Change in Unrealized appreciation (depreciation) ($) | Value, end of period ($) |
| Fidelity Direct Lending Fund, LP | 286,775 | 1,243,479 | 177,998 | 64,251 | (2,345) | (5,506) | 1,344,405 |
| | 286,775 | 1,243,479 | 177,998 | 64,251 | (2,345) | (5,506) | 1,344,405 |
Amounts in the dividend 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.
Amounts included in the purchases and sales proceeds columns may include in-kind transactions, if applicable.
Investment Valuation
The following is a summary of the inputs used, as of December 31, 2022, 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.
Amounts in this Investment Valuation section exclude the value of Fidelity Direct Lending Fund, LP as presented in the Schedule of Investments. Fidelity Direct Lending Fund, LP is valued using NAV as a practical expedient.
| Valuation Inputs at Reporting Date: |
| Description | Total ($) | Level 1 ($) | Level 2 ($) | Level 3 ($) |
Investments in Securities: | | | | |
|
| Equities: | | | | |
Communication Services | - | - | - | - |
Consumer Discretionary | 277,673 | - | - | 277,673 |
Energy | 2,465,253 | 2,465,253 | - | - |
Financials | 614,341 | - | - | 614,341 |
Industrials | 29,041 | - | - | 29,041 |
Information Technology | 29,851 | - | - | 29,851 |
|
| Bank Loan Obligations | 218,853,806 | - | 214,733,716 | 4,120,090 |
|
| Corporate Bonds | 8,159,500 | - | 8,159,500 | - |
|
| Preferred Securities | 43,804 | - | 43,804 | - |
|
| Money Market Funds | 13,650,593 | 13,650,593 | - | - |
| Total Investments in Securities: | 244,123,862 | 16,115,846 | 222,937,020 | 5,070,996 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value:
| |
| Investments in Securities: | |
| Bank Loan Obligations | | | |
| Beginning Balance | $ | 2,658,642 | |
| Net Realized Gain (Loss) on Investment Securities | | (4,459) | |
| Net Unrealized Gain (Loss) on Investment Securities | | (536,906) | |
| Cost of Purchases | | 1,667,847 | |
| Proceeds of Sales | | (930,414) | |
| Amortization/Accretion | | 6,490 | |
| Transfers into Level 3 | | 1,746,104 | |
| Transfers out of Level 3 | | (487,214) | |
| Ending Balance | $ | 4,120,090 | |
| The change in unrealized gain (loss) for the period attributable to Level 3 securities held at December 31, 2022 | $ | (531,596) | |
| Other Investments in Securities | | | |
| Beginning Balance | $ | 2,378,786 | |
| Net Realized Gain (Loss) on Investment Securities | | (5,809) | |
| Net Unrealized Gain (Loss) on Investment Securities | | 264,920 | |
| Cost of Purchases | | 66,427 | |
| Proceeds of Sales | | (3,174) | |
| Amortization/Accretion | | - | |
| Transfers into Level 3 | | 1,244 | |
| Transfers out of Level 3 | | (1,751,488) | |
| Ending Balance | $ | 950,906 | |
| The change in unrealized gain (loss) for the period attributable to Level 3 securities held at December 31, 2022 | $ | 264,920 | |
| The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Cost of purchases and proceeds of sales may include securities received and/or delivered through in-kind transactions. Transfers into Level 3 were attributable to a lack of observable market data resulting from decreases in market activity, decreases in liquidity, security restructurings or corporate actions. Transfers out of Level 3 were attributable to observable market data becoming available for those securities. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations. | |
| Statement of Assets and Liabilities |
| | | | December 31, 2022 |
| | | | | |
| Assets | | | | |
| Investment in securities, at value - See accompanying schedule: | $ | | | |
Unaffiliated issuers (cost $243,497,430) | | 230,473,269 | | |
Fidelity Central Funds (cost $13,650,593) | | 13,650,593 | | |
Other affiliated issuers (cost $1,349,911) | | 1,344,405 | | |
| | | | | |
| | | | | |
| Total Investment in Securities (cost $258,497,934) | | | $ | 245,468,267 |
| Cash | | | | 528,954 |
| Receivable for investments sold | | | | 2,556,905 |
| Receivable for fund shares sold | | | | 2,812 |
| Dividends receivable | | | | 38,234 |
| Interest receivable | | | | 1,915,820 |
| Distributions receivable from Fidelity Central Funds | | | | 52,026 |
| Prepaid expenses | | | | 292 |
Total assets | | | | 250,563,310 |
| Liabilities | | | | |
| Payable for investments purchased | | $3,696,431 | | |
| Payable for fund shares redeemed | | 74,878 | | |
| Accrued management fee | | 112,677 | | |
| Other affiliated payables | | 30,302 | | |
| Other payables and accrued expenses | | 83,571 | | |
| Total Liabilities | | | | 3,997,859 |
| Net Assets | | | $ | 246,565,451 |
| Net Assets consist of: | | | | |
| Paid in capital | | | $ | 274,060,257 |
| Total accumulated earnings (loss) | | | | (27,494,806) |
| Net Assets | | | $ | 246,565,451 |
| | | | | |
| Net Asset Value and Maximum Offering Price | | | | |
| Initial Class : | | | | |
Net Asset Value , offering price and redemption price per share ($12,479,601 ÷ 1,322,786 shares) | | | $ | 9.43 |
| Investor Class : | | | | |
Net Asset Value , offering price and redemption price per share ($234,085,850 ÷ 24,828,747 shares) | | | $ | 9.43 |
| Statement of Operations |
| | | | Year ended December 31, 2022 |
| Investment Income | | | | |
| Dividends (including $64,251 earned from affiliated issuers) | | | $ | 243,591 |
| Interest | | | | 13,961,130 |
| Income from Fidelity Central Funds (including $549 from security lending) | | | | 305,134 |
| Total Income | | | | 14,509,855 |
| Expenses | | | | |
| Management fee | $ | 1,408,134 | | |
| Transfer agent fees | | 257,853 | | |
| Accounting fees | | 123,506 | | |
| Custodian fees and expenses | | 64,797 | | |
| Independent trustees' fees and expenses | | 871 | | |
| Audit | | 72,244 | | |
| Legal | | 2,346 | | |
| Miscellaneous | | 1,012 | | |
| Total expenses before reductions | | 1,930,763 | | |
| Expense reductions | | (5,471) | | |
| Total expenses after reductions | | | | 1,925,292 |
| Net Investment income (loss) | | | | 12,584,563 |
| Realized and Unrealized Gain (Loss) | | | | |
| Net realized gain (loss) on: | | | | |
| Investment Securities: | | | | |
| Unaffiliated issuers | | (1,094,202) | | |
| Affiliated issuers | | (2,345) | | |
| Total net realized gain (loss) | | | | (1,096,547) |
| Change in net unrealized appreciation (depreciation) on: | | | | |
| Investment Securities: | | | | |
| Unaffiliated issuers | | (13,692,286) | | |
| Affiliated issuers | | (5,506) | | |
| Total change in net unrealized appreciation (depreciation) | | | | (13,697,792) |
| Net gain (loss) | | | | (14,794,339) |
| Net increase (decrease) in net assets resulting from operations | | | $ | (2,209,776) |
| Statement of Changes in Net Assets |
| |
| | Year ended December 31, 2022 | | Year ended December 31, 2021 |
| Increase (Decrease) in Net Assets | | | | |
| Operations | | | | |
| Net investment income (loss) | $ | 12,584,563 | $ | 6,536,833 |
| Net realized gain (loss) | | (1,096,547) | | (2,585,167) |
| Change in net unrealized appreciation (depreciation) | | (13,697,792) | | 5,759,221 |
| Net increase (decrease) in net assets resulting from operations | | (2,209,776) | | 9,710,887 |
| Distributions to shareholders | | (10,589,026) | | (5,835,875) |
| Share transactions - net increase (decrease) | | 15,559,097 | | 71,311,989 |
| Total increase (decrease) in net assets | | 2,760,295 | | 75,187,001 |
| | | | | |
| Net Assets | | | | |
| Beginning of period | | 243,805,156 | | 168,618,155 |
| End of period | $ | 246,565,451 | $ | 243,805,156 |
| | | | | |
| | | | | |
Financial Highlights
| VIP Floating Rate High Income Portfolio Initial Class |
| |
| Years ended December 31, | | 2022 | | 2021 | | 2020 | | 2019 | | 2018 |
Selected Per-Share Data | | | | | | | | | | |
| Net asset value, beginning of period | $ | 9.90 | $ | 9.66 | $ | 9.85 | $ | 9.55 | $ | 9.93 |
| Income from Investment Operations | | | | | | | | | | |
Net investment income (loss) A,B | | .477 | | .323 | | .376 | | .505 | | .438 |
| Net realized and unrealized gain (loss) | | (.529) | | .177 | | (.104) | | .325 | | (.452) |
| Total from investment operations | | (.052) | | .500 | | .272 | | .830 | | (.014) |
| Distributions from net investment income | | (.418) | | (.260) | | (.462) | | (.530) | | (.366) |
| Total distributions | | (.418) | | (.260) | | (.462) | | (.530) | | (.366) |
| Net asset value, end of period | $ | 9.43 | $ | 9.90 | $ | 9.66 | $ | 9.85 | $ | 9.55 |
Total Return C,D | | (.52)% | | 5.21% | | 2.82% | | 8.79% | | (.16)% |
Ratios to Average Net Assets B,E,F | | | | | | | | | | |
| Expenses before reductions | | .72% | | .72% | | .73% | | .71% | | .71% |
| Expenses net of fee waivers, if any | | .72% | | .72% | | .73% | | .71% | | .71% |
| Expenses net of all reductions | | .72% | | .72% | | .73% | | .70% | | .71% |
| Net investment income (loss) | | 4.93% | | 3.26% | | 3.95% | | 5.06% | | 4.37% |
| Supplemental Data | | | | | | | | | | |
| Net assets, end of period (000 omitted) | $ | 12,480 | $ | 9,840 | $ | 7,689 | $ | 12,292 | $ | 12,905 |
Portfolio turnover rate G | | 26% | | 37% | | 40% | | 29% | | 45% |
A Calculated based on average shares outstanding during the period.
B Net investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any mutual funds or ETFs is not included in the Fund's net investment income (loss) ratio.
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. For additional expense information related to investments in Fidelity Direct Lending Fund, LP, please refer to the Investment in Fidelity Direct Lending Fund, LP 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).
| VIP Floating Rate High Income Portfolio Investor Class |
| |
| Years ended December 31, | | 2022 | | 2021 | | 2020 | | 2019 | | 2018 |
Selected Per-Share Data | | | | | | | | | | |
| Net asset value, beginning of period | $ | 9.89 | $ | 9.66 | $ | 9.85 | $ | 9.54 | $ | 9.93 |
| Income from Investment Operations | | | | | | | | | | |
Net investment income (loss) A,B | | .474 | | .319 | | .373 | | .502 | | .434 |
| Net realized and unrealized gain (loss) | | (.520) | | .169 | | (.105) | | .335 | | (.461) |
| Total from investment operations | | (.046) | | .488 | | .268 | | .837 | | (.027) |
| Distributions from net investment income | | (.414) | | (.258) | | (.458) | | (.527) | | (.363) |
| Total distributions | | (.414) | | (.258) | | (.458) | | (.527) | | (.363) |
| Net asset value, end of period | $ | 9.43 | $ | 9.89 | $ | 9.66 | $ | 9.85 | $ | 9.54 |
Total Return C,D | | (.46)% | | 5.08% | | 2.78% | | 8.88% | | (.30)% |
Ratios to Average Net Assets B,E,F | | | | | | | | | | |
| Expenses before reductions | | .75% | | .76% | | .76% | | .74% | | .74% |
| Expenses net of fee waivers, if any | | .75% | | .76% | | .76% | | .74% | | .74% |
| Expenses net of all reductions | | .75% | | .76% | | .76% | | .74% | | .74% |
| Net investment income (loss) | | 4.90% | | 3.23% | | 3.91% | | 5.03% | | 4.33% |
| Supplemental Data | | | | | | | | | | |
| Net assets, end of period (000 omitted) | $ | 234,086 | $ | 233,965 | $ | 160,929 | $ | 253,710 | $ | 253,242 |
Portfolio turnover rate G | | 26% | | 37% | | 40% | | 29% | | 45% |
A Calculated based on average shares outstanding during the period.
B Net investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any mutual funds or ETFs is not included in the Fund's net investment income (loss) ratio.
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. For additional expense information related to investments in Fidelity Direct Lending Fund, LP, please refer to the Investment in Fidelity Direct Lending Fund, LP 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).
For the period ended December 31, 2022
1. Organization.
VIP Floating Rate High Income Portfolio (the Fund) is a fund of Variable Insurance Products Fund (the Trust) and is authorized to issue an unlimited number of shares. 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. Shares of the Fund may only be purchased by insurance companies for the purpose of funding variable annuity or variable life insurance contracts. The Fund offers the following classes of shares: Initial Class shares and Investor Class shares. All classes have equal rights and voting privileges, except for matters affecting a single class.
2. Investments in Fidelity Central Funds.
Funds may 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 Schedule of Investments lists any Fidelity Central Funds held as an investment as of period end, but does not include the underlying holdings of each Fidelity Central Fund. An investing fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
Based on its investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the investing fund. These strategies are consistent with the investment objectives of the investing fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the investing fund.
| Fidelity Central Fund | Investment Manager | Investment Objective | Investment Practices | Expense Ratio A |
| Fidelity Money Market Central Funds | Fidelity Management & Research Company LLC (FMR) | Each fund seeks to obtain a high level of current income consistent with the preservation of capital and liquidity. | Short-term Investments | Less than .005% |
A Expenses expressed as a percentage of average net assets and are as of each underlying Central Fund's most recent annual or semi-annual shareholder report.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including investment valuation policies) of those funds, and are not covered by the Report of Independent Registered Public Accounting Firm, are available on the Securities and Exchange Commission website or upon request.
3. Investment in Fidelity Direct Lending Fund, LP.
The Fund invests in Fidelity Direct Lending Fund, LP, which is a limited partnership available only to certain investment companies managed by the investment adviser and its affiliates. The Fund's limited partnership interest is not registered under the Securities Act of 1933, and is subject to substantial restrictions on transfer. The Fund has no redemption rights under the partnership agreement. There will be no trading market for the partnership interest, and the Fund most likely will hold its interest until Fidelity Direct Lending Fund, LP converts by operation of law to a Delaware corporation, trust, or other limited liability entity and (i) registers as a closed-end management investment company under the 1940 Act or (ii) elects to be treated as a business development company under the 1940 Act.
Based on its investment objective, Fidelity Direct Lending Fund, LP may invest or participate in various investments or strategies that are similar to those in which the Fund may invest or participate. These strategies are consistent with the investment objectives of the Fund and may involve certain economic risks which may cause a decline in value of Fidelity Direct Lending Fund, LP and thus a decline in the value of the Fund. The Fidelity Direct Lending Fund, LP intends to invest primarily in direct loans made to private U.S. companies, specifically small- and middle-market companies.
The Schedule of Investments lists Fidelity Direct Lending Fund, LP as an investment as of period end, but does not include the underlying holdings of Fidelity Direct Lending Fund, LP. Fidelity Direct Lending Fund, LP represented less than 5% of the Fund's net assets at period end. The Fund indirectly bears its proportionate share of the expenses of Fidelity Direct Lending Fund, LP, which commenced operations on December 9, 2021. The annualized expense ratio for Fidelity Direct Lending Fund, LP for the period ended April 30, 2022 was .07%.
4. Significant Accounting Policies.
The 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 Fund's Schedule of Investments lists any underlying mutual funds or exchange-traded funds (ETFs) but does not include the underlying holdings of these funds. The following summarizes the significant accounting policies of the Fund:
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 designated the Fund's investment adviser as the valuation designee responsible for the fair valuation function and performing fair value determinations as needed. The investment adviser has established a Fair Value Committee (the Committee) to carry out the day-to-day fair valuation responsibilities and has adopted policies and procedures to govern the fair valuation process and the activities of the Committee. In accordance with these fair valuation policies and procedures, which have been approved by the Board, the Fund attempts to obtain prices from one or more third party pricing services 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 the policies and procedures. Factors used in determining fair value vary by investment type and may include market or investment specific events, transaction data, estimated cash flows, and market observations of comparable investments. The frequency that the fair valuation procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee manages the Fund's fair valuation practices and maintains the fair valuation policies and procedures. The Fund's investment adviser reports to the Board information regarding the fair valuation process and related material matters.
The 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 - unadjusted 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 the Fund's investments by major category are as follows:
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing services or from brokers who make markets in such securities. Corporate bonds, bank loan obligations and preferred securities are valued by pricing services 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 services. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances. The Fund invests a significant portion of its assets in below investment grade securities. The value of these securities can be more volatile due to changes in the credit quality of the issuer and is sensitive to changes in economic, market and regulatory conditions.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Fidelity Direct Lending Fund, LP is valued using NAV as a practical expedient in accordance with the specialized accounting guidance for investment companies.
The following provides information on Level 3 securities held by the Fund that were valued at period end based on unobservable inputs. These amounts exclude valuations provided by a broker and valuations using NAV as a practical expedient.
| Asset Type | Fair Value | Valuation Technique(s) | Unobservable Input | Amount or Range/Weighted Average | Impact to Valuation from an Increase in Input A |
| Equities | $950,906 | Market comparable | Enterprise value/EBITDA multiple (EV/EBITDA) | 2.3 - 8.0 / 2.5 | Increase |
| | | | Probability rate | 50.0% | Increase |
| | | | Discount for lack of marketability | 20.0% | Decrease |
| | | Recovery value | Recovery value | $0.00 | Increase |
| | | Market approach | Parity price | $12.35 | Increase |
| | | Indicative market price | Mid price | $20.00 | Increase |
| | | Black scholes | Discount rate | 4.1% | Increase |
| | | | Volatility | 50.0% | Increase |
| | | | Term | 2.8 | Increase |
| Bank Loan Obligations | $4,120,090 | Market approach | Transaction price | $99.50 | Increase |
| | | Discounted cash flow | Probability rate | 50.0% | Increase |
| | | | Yield | 14.4% - 20.3% / 34.7% | Decrease |
| | | | Discount rate | 9.7% | Decrease |
| | | Indicative market price | Evaluated bid | $35.00 - $99.00 / $90.43 | Increase |
A Represents the directional change in the fair value of the Level 3 investments that could have resulted from an increase in the corresponding input as of period end. A decrease to the unobservable input would have had the opposite effect. Significant changes in these inputs may have resulted in a significantly higher or lower fair value measurement at period end.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of December 31, 2022, as well as a roll forward of Level 3 investments, is included at the end of the Fund's Schedule of Investments.
Investment Transactions and Income. For financial reporting purposes, the Fund's 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. Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of a fund include an amount in addition to trade execution, which may be rebated back to a fund. Any such rebates are included in net realized gain (loss) on investments in the Statement of Operations. 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 Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured. The Fund earns certain fees in connection with its floating rate loan purchasing activities. These fees are in addition to interest payments earned and may include amendment fees, consent fees and prepayment fees. These fees are recorded as Interest in the accompanying financial statements.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of a 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 a fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred, as applicable. Certain expense reductions may also differ by class, if applicable. 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 that fund and do not include any expenses associated with any underlying mutual funds or exchange-traded funds. Although not included in a fund's expenses, a fund indirectly bears its proportionate share of these expenses through the net asset value of each underlying mutual fund or exchange-traded fund. 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, the 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, 2022, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the 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. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The 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.
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 market discount, partnerships, capital loss carryforwards 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:
| Gross unrealized appreciation | $3,250,952 |
| Gross unrealized depreciation | (15,725,910) |
| Net unrealized appreciation (depreciation) | $(12,474,958) |
| Tax Cost | $257,943,225 |
The tax-based components of distributable earnings as of period end were as follows:
| Undistributed ordinary income | $2,865,372 |
| Capital loss carryforward | $(17,885,221) |
| Net unrealized appreciation (depreciation) on securities and other investments | $(12,474,958) |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of fiscal period end and is subject to adjustment.
| Short-term | $(3,589,397) |
| Long-term | (14,295,824) |
| Total capital loss carryforward | $(17,885,221) |
The tax character of distributions paid was as follows:
| | December 31, 2022 | December 31, 2021 |
| Ordinary Income | $10,589,026 | $5,835,875 |
Restricted Securities (including Private Placements). Funds may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities held at period end is included at the end of the Schedule of Investments, if applicable.
Loans and Other Direct Debt Instruments. Direct debt instruments are interests in amounts owed to lenders by corporate or other borrowers. These instruments may be in the form of loans, trade claims or other receivables and may include standby financing commitments such as revolving credit facilities that obligate a fund to supply additional cash to the borrower on demand. Loans may be acquired through assignment, participation, or may be made directly to a borrower. Such instruments are presented in the Bank Loan Obligations section in the Schedule of Investments. Certain funds may also invest in unfunded loan commitments, which are contractual obligations for future funding. Information regarding unfunded commitments is included at the end of the Schedule of Investments, if applicable.
Commitments. A commitment is an agreement to acquire an investment at a future date (subject to conditions) in connection with a potential public or non-public offering. The amount of commitments outstanding at period end are presented in the table below. These commitments are not included in the net assets of the Fund at period end.
| | Investment to be Acquired | Commitment Amount |
| VIP Floating Rate High Income Portfolio | Fidelity Direct Lending Fund, LP | $814,339 |
LIBOR Accounting Pronouncement. In March 2020, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU), ASU 2020-04, which provides optional, temporary relief with respect to the financial reporting of contracts subject to certain types of modifications due to the planned discontinuation of the London Interbank Offered Rate (LIBOR) and other IBOR-based reference rates. The temporary relief provided by ASU 2020-04 is effective for certain reference rate-related contract modifications that occur during the period March 12, 2020 through December 31, 2024. Management does not expect the adoption of ASU 2020-04 to have a material impact on the Fund's financial statements.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, as applicable, are noted in the table below.
| | Purchases ($) | Sales ($) |
| VIP Floating Rate High Income Portfolio | 84,750,271 | 61,774,210 |
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company LLC (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and an annualized group fee rate that averaged .10% during the period. The group fee rate is based upon the monthly average net assets of a group of registered investment companies with which the investment adviser has management contracts. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annual management fee rate was .55% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company LLC (FIIOC), an affiliate of the investment adviser, is the Fund's transfer, dividend disbursing, and shareholder servicing agent. FIIOC receives an asset-based fee with respect to each class. Each class pays a fee for transfer agent services, typesetting and printing and mailing of shareholder reports, excluding mailing of proxy statements. For the period, transfer agent fees for each class were as follows:
| | Amount | % of Class-Level Average Net Assets |
| Initial Class | $8,581 | .07 |
| Investor Class | 249,272 | .10 |
| | $257,853 | |
Accounting Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. For the period, the fees were equivalent to the following annual rates:
| | % of Average Net Assets |
| VIP Floating Rate High Income Portfolio | .05 |
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:
| | Amount |
| VIP Floating Rate High Income Portfolio | $1 |
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. Any interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note. During the period, there were no interfund trades.
7. Committed Line of Credit.
Certain Funds participate with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which are reflected in Miscellaneous expenses on the Statement of Operations, and are listed below. During the period, there were no borrowings on this line of credit.
| | Amount |
| VIP Floating Rate High Income Portfolio | $429 |
8. Security Lending.
Funds lend portfolio securities from time to time in order to earn additional income. Lending agents are used, including National Financial Services (NFS), an affiliate of the investment adviser. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of a fund's daily lending revenue, for its services as lending agent. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, a fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of a fund and any additional required collateral is delivered to a fund on the next business day. A fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund may apply collateral received from the borrower against the obligation. A fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Affiliated security lending activity, if any, was as follows:
| | Total Security Lending Fees Paid to NFS | Security Lending Income From Securities Loaned to NFS | Value of Securities Loaned to NFS at Period End |
| VIP Floating Rate High Income Portfolio | $52 | $- | $- |
9. Expense Reductions.
Through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, custodian credits reduced the Fund's expenses by $1,059.
In addition, during the period the investment adviser or an affiliate reimbursed and/or waived a portion of fund-level operating expenses in the amount of $4,412.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| | Year ended December 31, 2022 | Year ended December 31, 2021 |
| VIP Floating Rate High Income Portfolio | | |
| Distributions to shareholders | | |
| Initial Class | $532,009 | $234,771 |
| Investor Class | 10,057,017 | 5,601,104 |
Total | $10,589,026 | $5,835,875 |
11. Share Transactions.
Transactions for each class of shares were as follows and may contain in-kind transactions:
| | Shares | Shares | Dollars | Dollars |
| | Year ended December 31, 2022 | Year ended December 31, 2021 | Year ended December 31, 2022 | Year ended December 31, 2021 |
| VIP Floating Rate High Income Portfolio | | | | |
| Initial Class | | | | |
| Shares sold | 919,892 | 580,666 | $8,982,533 | $5,724,796 |
| Reinvestment of distributions | 56,333 | 23,903 | 532,009 | 234,771 |
| Shares redeemed | (647,612) | (406,209) | (6,279,623) | (3,998,861) |
| Net increase (decrease) | 328,613 | 198,360 | $3,234,919 | $1,960,706 |
| Investor Class | | | | |
| Shares sold | 6,591,415 | 8,388,256 | $64,685,388 | $83,272,934 |
| Reinvestment of distributions | 1,064,107 | 570,003 | 10,053,763 | 5,599,077 |
| Shares redeemed | (6,482,331) | (1,968,012) | (62,414,973) | (19,520,728) |
| Net increase (decrease) | 1,173,191 | 6,990,247 | $12,324,178 | $69,351,283 |
12. Other.
A fund's 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 fund. In the normal course of business, a fund may also enter into contracts that provide general indemnifications. A fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against a fund. The risk of material loss from such claims is considered remote.
At the end of the period, the investment adviser or its affiliates were owners of record of more than 10% of the outstanding shares as follows:
| Fund | | | Affiliated % |
| VIP Floating Rate High Income Portfolio | | | 99% |
13. Risk and Uncertainties.
Many factors affect a fund's performance. Developments that disrupt global economies and financial markets, such as pandemics, epidemics, outbreaks of infectious diseases, war, terrorism, and environmental disasters, may significantly affect a fund's investment performance. The effects of these developments to a fund will be impacted by the types of securities in which a fund invests, the financial condition, industry, economic sector, and geographic location of an issuer, and a fund's level of investment in the securities of that issuer.
To the Board of Trustees of Variable Insurance Products Fund and Shareholders of VIP Floating Rate High Income Portfolio
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of VIP Floating Rate High Income Portfolio (one of the funds constituting Variable Insurance Products Fund, referred to hereafter as the "Fund") as of December 31, 2022, the related statement of operations for the year ended December 31, 2022, the statement of changes in net assets for each of the two years in the period ended December 31, 2022, including the related notes, and the financial highlights for each of the five years in the period ended December 31, 2022 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of December 31, 2022, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended December 31, 2022 and the financial highlights for each of the five years in the period ended December 31, 2022 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's 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 Fund 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, 2022 by correspondence with the custodian, issuers of privately offered securities, agent banks 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 opinion.
/s/ PricewaterhouseCoopers LLP
Boston, Massachusetts
February 17, 2023
We have served as the auditor of one or more investment companies in the Fidelity group of funds since 1932.
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Jonathan Chiel, each of the Trustees oversees 318 funds. Mr. Chiel oversees 186 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 fund 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.
The 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 the 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 fund, is provided below.
Board Structure and Oversight Function. Robert A. Lawrence is an interested person and currently serves as Chair. The Trustees have determined that an interested Chair is appropriate and benefits shareholders because an interested Chair has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chair, 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 Chair 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. David M. Thomas serves as Lead Independent Trustee 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 fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and other equity funds. The asset allocation funds may invest in Fidelity ® funds overseen by the fund's Board. 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, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's 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 fund's 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 fund are carried out by or through FMR, its affiliates, and other service providers, the fund's 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 fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's 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.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Jonathan Chiel (1957)
Year of Election or Appointment: 2016
Trustee
Mr. Chiel also serves as Trustee of other Fidelity ® funds. Mr. Chiel is Executive Vice President and General Counsel for FMR LLC (diversified financial services company, 2012-present). Previously, Mr. Chiel served as general counsel (2004-2012) and senior vice president and deputy general counsel (2000-2004) for John Hancock Financial Services; a partner with Choate, Hall & Stewart (1996-2000) (law firm); and an Assistant United States Attorney for the United States Attorney's Office of the District of Massachusetts (1986-95), including Chief of the Criminal Division (1993-1995). Mr. Chiel is a director on the boards of the Boston Bar Foundation and the Maimonides School.
Bettina Doulton (1964)
Year of Election or Appointment: 2021
Trustee
Ms. Doulton also serves as Trustee of other Fidelity ® funds. Prior to her retirement, Ms. Doulton served in a variety of positions at Fidelity Investments, including as a managing director of research (2006-2007), portfolio manager to certain Fidelity ® funds (1993-2005), equity analyst and portfolio assistant (1990-1993), and research assistant (1987-1990). Ms. Doulton currently owns and operates Phi Builders + Architects and Cellardoor Winery. Previously, Ms. Doulton served as a member of the Board of Brown Capital Management, LLC (2014-2018).
Robert A. Lawrence (1952)
Year of Election or Appointment: 2020
Trustee
Chair of the Board of Trustees
Mr. Lawrence also serves as Trustee of other funds. Previously, Mr. Lawrence served as a Trustee and Member of the Advisory Board of certain funds. Prior to his retirement in 2008, Mr. Lawrence served as Vice President of certain Fidelity ® funds (2006-2008), Senior Vice President, Head of High Income Division of Fidelity Management & Research Company (investment adviser firm, 2006-2008), and President of Fidelity Strategic Investments (investment adviser firm, 2002-2005).
* 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 the 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+
Thomas P. Bostick (1956)
Year of Election or Appointment: 2021
Trustee
Lieutenant General Bostick also serves as Trustee of other Fidelity ® funds. Prior to his retirement, General Bostick (United States Army, Retired) held a variety of positions within the U.S. Army, including Commanding General and Chief of Engineers, U.S. Army Corps of Engineers (2012-2016) and Deputy Chief of Staff and Director of Human Resources, U.S. Army (2009-2012). General Bostick currently serves as a member of the Board and Finance and Governance Committees of CSX Corporation (transportation, 2020-present) and a member of the Board and Corporate Governance and Nominating Committee of Perma-Fix Environmental Services, Inc. (nuclear waste management, 2020-present). General Bostick serves as Chief Executive Officer of Bostick Global Strategies, LLC (consulting, 2016-present) and as a member of the Board of HireVue, Inc. (video interview and assessment, 2020-present). Previously, General Bostick served as a Member of the Advisory Board of certain Fidelity® funds (2021), President, Intrexon Bioengineering (2018-2020) and Chief Operating Officer (2017-2020) and Senior Vice President of the Environment Sector (2016-2017) of Intrexon Corporation (biopharmaceutical company).
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity ® funds. Prior to his retirement in May 2003, Mr. Dirks served as Chief Operating Officer and as a member of the Board of The Depository Trust & Clearing Corporation (financial markets infrastructure), President, Chief Operating Officer and a member of the Board of The Depository Trust Company (DTC), President and a member of the Board of the National Securities Clearing Corporation (NSCC), Chief Executive Officer and a member of the Board of the Government Securities Clearing Corporation and Chief Executive Officer and a member of the Board of the Mortgage-Backed Securities Clearing Corporation. Mr. Dirks currently serves as a member of the Finance Committee (2016-present) and Board (2017-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as Trustee of other Fidelity ® funds. Mr. Donahue serves as President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006) and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue currently serves as a member (2007-present) and Co-Chairman (2016-present) of the Board of United Way of New York and a member of the Board of The Leadership Academy (previously NYC Leadership Academy) (2012-present). Mr. Donahue previously served as a member of the Advisory Board of certain Fidelity® funds (2015-2018).
Vicki L. Fuller (1957)
Year of Election or Appointment: 2020
Trustee
Ms. Fuller also serves as Trustee of other Fidelity ® funds. Previously, Ms. Fuller served as a member of the Advisory Board of certain Fidelity ® funds (2018-2020), Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006). Ms. Fuller currently serves as a member of the Board, Audit Committee and Nominating and Governance Committee of two Blackstone business development companies (2020-present), as a member of the Board of Treliant, LLC (consulting, 2019-present), as a member of the Advisory Board of Ariel Alternatives, LLC (private equity, 2021-present) and as a member of the Board and Chair of the Audit Committee of Gusto, Inc. (software, 2021-present). In addition, Ms. Fuller currently serves as a member of the Board of Roosevelt University (2019-present) and as a member of the Executive Board of New York University's Stern School of Business. Ms. Fuller previously served as a member of the Board, Audit Committee and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-2021).
Patricia L. Kampling (1959)
Year of Election or Appointment: 2020
Trustee
Ms. Kampling also serves as Trustee of other Fidelity ® funds. Prior to her retirement, Ms. Kampling served as Chairman of the Board and Chief Executive Officer (2012-2019), President and Chief Operating Officer (2011-2012) and Executive Vice President and Chief Financial Officer (2010-2011) of Alliant Energy Corporation. Ms. Kampling currently serves as a member of the Board, Finance Committee and Governance, Compensation and Nominating Committee of Xcel Energy Inc. (utilities company, 2020-present) and as a member of the Board, Audit, Finance and Risk Committee and Safety, Environmental, Technology and Operations Committee and Chair of the Executive Development and Compensation Committee of American Water Works Company, Inc. (utilities company, 2019-present). In addition, Ms. Kampling currently serves as a member of the Board of the Nature Conservancy, Wisconsin Chapter (2019-present). Previously, Ms. Kampling served as a Member of the Advisory Board of certain Fidelity® funds (2020), a member of the Board, Compensation Committee and Executive Committee and Chair of the Audit Committee of Briggs & Stratton Corporation (manufacturing, 2011-2021), a member of the Board of Interstate Power and Light Company (2012-2019) and Wisconsin Power and Light Company (2012-2019) (each a subsidiary of Alliant Energy Corporation) and as a member of the Board and Workforce Development Committee of the Business Roundtable (2018-2019).
Thomas A. Kennedy (1955)
Year of Election or Appointment: 2021
Trustee
Mr. Kennedy also serves as Trustee of other Fidelity ® funds. Previously, Mr. Kennedy served as a Member of the Advisory Board of certain Fidelity ® funds (2020) and held a variety of positions at Raytheon Company (aerospace and defense, 1983-2020), including Chairman and Chief Executive Officer (2014-2020) and Executive Vice President and Chief Operating Officer (2013-2014). Mr. Kennedy currently serves as Executive Chairman of the Board of Directors of Raytheon Technologies Corporation (aerospace and defense, 2020-present). He is also a member of the Rutgers School of Engineering Industry Advisory Board (2011-present) and a member of the UCLA Engineering Dean's Executive Board (2016-present).
Oscar Munoz (1959)
Year of Election or Appointment: 2021
Trustee
Mr. Munoz also serves as Trustee of other Fidelity ® funds. Prior to his retirement, Mr. Munoz served as Executive Chairman (2020-2021), Chief Executive Officer (2015-2020), President (2015-2016) and a member of the Board (2010-2021) of United Airlines Holdings, Inc. Mr. Munoz currently serves as a member of the Board of CBRE Group, Inc. (commercial real estate, 2020-present), a member of the Board of Univision Communications, Inc. (Hispanic media, 2020-present) and a member of the Advisory Board of Salesforce.com, Inc. (cloud-based software, 2020-present). Previously, Mr. Munoz served as a Member of the Advisory Board of certain Fidelity ® funds (2021).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Lead Independent Trustee
Mr. Thomas also serves as Trustee of other Fidelity ® funds. Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions). Mr. Thomas currently serves as a member of the Board of Fortune Brands Home and Security (home and security products, 2004-present) and as Director (2013-present) and Non-Executive Chairman of the Board (2022-present) of Interpublic Group of Companies, Inc. (marketing communication).
Susan Tomasky (1953)
Year of Election or Appointment: 2020
Trustee
Ms. Tomasky also serves as Trustee of other Fidelity ® funds. Prior to her retirement, Ms. Tomasky served in various executive officer positions at American Electric Power Company, Inc. (1998-2011), including most recently as President of AEP Transmission (2007-2011). Ms. Tomasky currently serves as a member of the Board and Sustainability Committee and as Chair of the Audit Committee of Marathon Petroleum Corporation (2018-present) and as a member of the Board, Executive Committee, Corporate Governance Committee and Organization and Compensation Committee and as Chair of the Audit Committee of Public Service Enterprise Group, Inc. (utilities company, 2012-present) and as a member of the Board of its subsidiary company, Public Service Electric and Gas Co. (2021-present). In addition, Ms. Tomasky currently serves as a member (2009-present) and President (2020-present) of the Board of the Royal Shakespeare Company - America (2009-present), as a member of the Board of the Columbus Association for the Performing Arts (2011-present) and as a member of the Board and Kenyon in the World Committee of Kenyon College (2016-present). Previously, Ms. Tomasky served as a Member of the Advisory Board of certain Fidelity ® funds (2020), as a member of the Board of the Columbus Regional Airport Authority (2007-2020), as a member of the Board (2011-2018) and Lead Independent Director (2015-2018) of Andeavor Corporation (previously Tesoro Corporation) (independent oil refiner and marketer) and as a member of the Board of Summit Midstream Partners LP (energy, 2012-2018).
Michael E. Wiley (1950)
Year of Election or Appointment: 2020
Trustee
Mr. Wiley also serves as Trustee of other Fidelity ® funds. Previously, Mr. Wiley served as a member of the Advisory Board of certain Fidelity ® funds (2018-2020), Chairman, President and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004). Mr. Wiley also previously served as a member of the Board of Andeavor Corporation (independent oil refiner and marketer, 2005-2018), a member of the Board of Andeavor Logistics LP (natural resources logistics, 2015-2018) and a member of the Board of High Point Resources (exploration and production, 2005-2020).
+ 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 the fund.
Advisory Board Members and Officers:
Correspondence intended for a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as a Member of the Advisory Board of other Fidelity ® funds. Mr. Lynch is Vice Chairman and a Director of Fidelity Management & Research Company LLC (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served as Vice Chairman and a Director of FMR Co., Inc. (investment adviser firm) and on the Special Olympics International Board of Directors (1997-2006).
Craig S. Brown (1977)
Year of Election or Appointment: 2022
Deputy Treasurer
Mr. Brown also serves as an officer of other funds. Mr. Brown serves as Assistant Treasurer of FIMM, LLC (2021-present) and is an employee of Fidelity Investments (2013-present). Previously, Mr. Brown served as Assistant Treasurer of certain Fidelity ® funds (2019-2022).
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).
William C. Coffey (1969)
Year of Election or Appointment: 2019
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Secretary and CLO of certain funds (2018-2019); CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-2019); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-2019); CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-2019); and Assistant Secretary of certain funds (2009-2018).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2018
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Co-Head of Equity (2018-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Executive Vice President of Fidelity SelectCo, LLC (2019), Head of Global Equity Research (2016-2018), Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as an officer of other funds. Mr. Davis serves as Assistant Treasurer of FIMM, LLC (2021-present), FMR Capital, Inc. (2017-present), FD Funds GP LLC (2021-present), FD Funds Holding LLC (2021-present), and FD Funds Management LLC (2021-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
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato serves as Assistant Treasurer of FIMM, LLC (2021-present) and 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)
Year of Election or Appointment: 2020
Assistant Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FIMM, LLC (2021-present) and 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).
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as Vice President of other funds. Ms. Holding serves as Co-Head of Equity (2018-present) and is an employee of Fidelity Investments (2013-present). Previously, Ms. Holding served as Executive Vice President of Fidelity SelectCo, LLC (2019) and as Chief Investment Officer of Fidelity Institutional Asset Management (2013-2018).
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); CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2019-present); Secretary of FD Funds GP LLC (2021-present), FD Funds Holding LLC (2021-present), FD Funds Management LLC (2021-present), and Fidelity Diversifying Solutions LLC (investment adviser firm, 2022-present); and Assistant Secretary of FIMM, LLC (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)
Year of Election or Appointment: 2020
Deputy Treasurer
Mr. Maher also serves as an officer of other funds. Mr. Maher serves as Assistant Treasurer of FIMM, LLC (2021-present) and 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).
Jason P. Pogorelec (1975)
Year of Election or Appointment: 2020
Chief Compliance Officer
Mr. Pogorelec also serves as Chief Compliance Officer of other funds. Mr. Pogorelec is a senior Vice President of Asset Management Compliance for Fidelity Investments and is an employee of Fidelity Investments (2006-present). Previously, Mr. Pogorelec served as Vice President, Associate General Counsel for Fidelity Investments (2010-2020) and Assistant Secretary of certain Fidelity ® funds (2015-2020).
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)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FIMM, LLC (2021-present) and 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.
Jim Wegmann (1979)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Wegmann also serves as an officer of other funds. Mr. Wegmann serves as Assistant Treasurer of FIMM, LLC (2021-present) and is an employee of Fidelity Investments (2011-present). Previously, Mr. Wegmann served as Assistant Treasurer of certain Fidelity ® funds (2019-2021).
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, 2022 to December 31, 2022). |
Actual Expenses
The 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 Purposes
The 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 comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| | | | | Annualized Expense Ratio- A | | Beginning Account Value July 1, 2022 | | Ending Account Value December 31, 2022 | | Expenses Paid During Period- C July 1, 2022 to December 31, 2022 |
| VIP Floating Rate High Income Portfolio | | | | | | | | | | |
| Initial Class | | | | .71% | | | | | | |
| Actual | | | | | | $ 1,000 | | $ 1,046.40 | | $ 3.66 |
Hypothetical- B | | | | | | $ 1,000 | | $ 1,021.63 | | $ 3.62 |
| Investor Class | | | | .74% | | | | | | |
| Actual | | | | | | $ 1,000 | | $ 1,046.10 | | $ 3.82 |
Hypothetical- B | | | | | | $ 1,000 | | $ 1,021.48 | | $ 3.77 |
| |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B 5% return per year before expenses
C Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/ 365 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
The dividend and capital gains distributions for the fund(s) are available on Fidelity.com or Institutional.Fidelity.com.
The fund designates $5,277,040 of distributions paid in the calendar year 2021 as qualifying to be taxed as section 163(j) interest dividends.
1.9859331.108
VIPFHI-ANN-0323
Item 2.
Code of Ethics
As of the end of the period, December 31, 2022, Variable Insurance Products Fund (the trust) has adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies to its President and Treasurer and its Chief Financial Officer. A copy of the code of ethics is filed as an exhibit to this Form N-CSR.
Item 3.
Audit Committee Financial Expert
The Board of Trustees of the trust has determined that Donald F. Donahue is an audit committee financial expert, as defined in Item 3 of Form N-CSR. Mr. Donahue is independent for purposes of Item 3 of Form N-CSR.
Item 4.
Principal Accountant Fees and Services
Fees and Services
The following table presents fees billed by Deloitte & Touche LLP, the member firms of Deloitte Touche Tohmatsu, and their respective affiliates (collectively, “Deloitte Entities”) in each of the last two fiscal years for services rendered to VIP Value Portfolio (the “Fund”):
Services Billed by Deloitte Entities
December 31, 2022 FeesA
| | | | |
| Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
VIP Value Portfolio | $41,000 | $- | $11,600 | $1,100 |
| | | | |
| Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
VIP Value Portfolio | $40,000 | $- | $12,000 | $1,100 |
A Amounts may reflect rounding.
The following table presents fees billed by PricewaterhouseCoopers LLP (“PwC”) in each of the last two fiscal years for services rendered to VIP Equity-Income Portfolio, VIP Floating Rate High Income Portfolio, VIP Growth Portfolio, VIP High Income Portfolio, VIP Overseas Portfolio and VIP Stock Selector All Cap Portfolio (the “Funds”):
Services Billed by PwC
December 31, 2022 FeesA
| | | | |
| Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
VIP Equity-Income Portfolio | $59,400 | $5,200 | $10,600 | $1,800 |
VIP Floating Rate High Income Portfolio | $60,300 | $5,200 | $10,100 | $1,800 |
VIP Growth Portfolio | $53,000 | $4,500 | $7,700 | $1,500 |
VIP High Income Portfolio | $70,000 | $5,900 | $9,000 | $2,000 |
VIP Overseas Portfolio | $55,000 | $4,900 | $11,200 | $1,700 |
VIP Stock Selector All Cap Portfolio | $39,700 | $3,100 | $22,100 | $1,100 |
December 31, 2021 FeesA,B
| | | | |
| Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
VIP Equity-Income Portfolio | $57,800 | $5,600 | $10,100 | $1,800 |
VIP Floating Rate High Income Portfolio | $58,700 | $5,600 | $9,800 | $1,800 |
VIP Growth Portfolio | $51,500 | $4,800 | $7,100 | $1,600 |
VIP High Income Portfolio | $68,100 | $6,300 | $8,700 | $2,000 |
VIP Overseas Portfolio | $53,600 | $5,300 | $10,900 | $1,700 |
VIP Stock Selector All Cap Portfolio | $- | $500 | $- | $200 |
A Amounts may reflect rounding.
B VIP: Stock Selector All Cap Portfolio commenced operations on October 21, 2021.
The following table(s) present(s) fees billed by Deloitte Entities and PwC that were required to be approved by the Audit Committee for services that relate directly to the operations and financial reporting of the Fund(s) and that are rendered on behalf of Fidelity Management & Research Company LLC ("FMR") and entities controlling, controlled by, or under common control with FMR (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) that provide ongoing services to the Fund(s) (“Fund Service Providers”):
Services Billed by Deloitte Entities
| | |
| December 31, 2022A | December 31, 2021A |
Audit-Related Fees | $- | $- |
Tax Fees | $- | $- |
All Other Fees | $- | $- |
A Amounts may reflect rounding.
Services Billed by PwC
| | |
| December 31, 2022A | December 31, 2021 A,B |
Audit-Related Fees | $7,914,600 | $8,522,600 |
Tax Fees | $1,000 | $354,200 |
All Other Fees | $- | $- |
A Amounts may reflect rounding.
B May include amounts billed prior to the VIP Stock Selector All Cap Portfolio’s commencement of operations
“Audit-Related Fees” represent fees billed for assurance and related services that are reasonably related to the performance of the fund audit or the review of the fund's financial statements and that are not reported under Audit Fees.
“Tax Fees” represent fees billed for tax compliance, tax advice or tax planning that relate directly to the operations and financial reporting of the fund.
“All Other Fees” represent fees billed for services provided to the fund or Fund Service Provider, a significant portion of which are assurance related, that relate directly to the operations and financial reporting of the fund, excluding those services that are reported under Audit Fees, Audit-Related Fees or Tax Fees.
Assurance services must be performed by an independent public accountant.
* * *
The aggregate non-audit fees billed by Deloitte Entities and PwC for services rendered to the Fund(s), FMR (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any Fund Service Provider for each of the last two fiscal years of the Fund(s) are as follows:
| | |
Billed By | December 31, 2022A | December 31, 2021A,B |
Deloitte Entities | $470,300 | $534,700 |
PwC | $12,992,400 | $14,203,300 |
A Amounts may reflect rounding.
B May include amounts billed prior to the VIP Stock Selector All Cap Portfolio’s commencement of operations.
The trust's Audit Committee has considered non-audit services that were not pre-approved that were provided by Deloitte Entities and PwC to Fund Service Providers to be compatible with maintaining the independence of Deloitte Entities and PwC in its(their) audit of the Fund(s), taking into account representations from Deloitte Entities and PwC, in accordance with Public Company Accounting Oversight Board rules, regarding its independence from the Fund(s) and its(their) related entities and FMR’s review of the appropriateness and permissibility under applicable law of such non-audit services prior to their provision to the Fund(s) Service Providers.
Audit Committee Pre-Approval Policies and Procedures
The trust’s Audit Committee must pre-approve all audit and non-audit services provided by a fund’s independent registered public accounting firm relating to the operations or financial reporting of the fund. Prior to the commencement of any audit or non-audit services to a fund, the Audit Committee reviews the services to determine whether they are appropriate and permissible under applicable law.
The Audit Committee has adopted policies and procedures to, among other purposes, provide a framework for the Committee’s consideration of non-audit services by the audit firms that audit the Fidelity funds. The policies and procedures require that any non-audit service provided by a fund audit firm to a Fidelity fund and any non-audit service provided by a fund auditor to a Fund Service Provider that relates directly to the operations and financial reporting of a Fidelity fund (“Covered Service”) are subject to approval by the Audit Committee before such service is provided.
All Covered Services must be approved in advance of provision of the service either: (i) by formal resolution of the Audit Committee, or (ii) by oral or written approval of the service by the Chair of the Audit Committee (or if the Chair is unavailable, such other member of the Audit Committee as may be designated by the Chair to act in the Chair’s absence). The approval contemplated by (ii) above is permitted where the Treasurer determines that action on such an engagement is necessary before the next meeting of the Audit Committee.
Non-audit services provided by a fund audit firm to a Fund Service Provider that do not relate directly to the operations and financial reporting of a Fidelity fund are reported to the Audit Committee periodically.
Non-Audit Services Approved Pursuant to Rule 2-01(c)(7)(i)(C) and (ii) of Regulation S-X (“De Minimis Exception”)
There were no non-audit services approved or required to be approved by the Audit Committee pursuant to the De Minimis Exception during the Fund’s(s’) last two fiscal years relating to services provided to (i) the Fund(s) or (ii) any Fund Service Provider that relate directly to the operations and financial reporting of the Fund(s).
Item 5.
Audit Committee of Listed Registrants
Not applicable.
Item 6.
Investments
(a)
Not applicable.
(b)
Not applicable.
Item 7.
Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8.
Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9.
Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 10.
Submission of Matters to a Vote of Security Holders
There were no material changes to the procedures by which shareholders may recommend nominees to the trust’s Board of Trustees.
Item 11.
Controls and Procedures
(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the trust’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) provide reasonable assurances that material information relating to the trust is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.
(a)(ii) There was no change in the trust’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the trust’s internal control over financial reporting.
Item 12.
Disclosure of Securities Lending Activities for Closed-End Management
Investment Companies
Not applicable.
Item 13.
Exhibits
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Variable Insurance Products Fund
| |
By: | /s/Stacie M. Smith |
| Stacie M. Smith |
| President and Treasurer |
|
|
Date: | February 21, 2023 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| |
By: | /s/Stacie M. Smith |
| Stacie M. Smith |
| President and Treasurer |
|
|
Date: | February 21, 2023 |
| |
By: | /s/John J. Burke III |
| John J. Burke III |
| Chief Financial Officer |
|
|
Date: | February 21, 2023 |
